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CURRENT  PERIODICAL  SERIES 


PUBLICATION  NO:       2569 


TITLE: 


CONGRESSIONAL    RECORD.. 
93rd.    CONGRESS.    1st   SESSION 


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VOLUME 


119 


ISSUES 


DATE 


DECEMBER 
REEL  582 


19-22,1973 


PART  33 

PAGES  42369-4363 


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Notice:  This  periodical  may  be  coHynuhted,  in  which  case  the  contents  remain  the 
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PROCEEDINGS  AND  DEBATES   OF  THE 

FIRST  SESSION 


93 


CONGRESS 


VOLUME  119— PART  33 

DECEMBER  19,  1973  TO  DECEMBER  22,  1973 
(PAGES  42369  TO  43638) 


UNITED  STATES  GOVERNMENT  PRINTING  OFFICE,  WASHINGTON,  1973 


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n^resBional  record 


United  States 
0/ America         PROCEEDINGS    AND   DEBATES    OF    THE  0  2^  CONGRESS,  FIRST  SESSION 


SENATE— Wed#ie«daif,  December  19, 1973 


The  Senate  met  at  10  a.m.  and  was 
called  to  order  by  Hon.  Jakks  B.  Allen. 
a  Senator  from  the  State  of  Alabama. 


PRAYER 

The  Chaplain,  the  Reverend  Edward 
L.  R.  Elson,  D.D.,  offered  the  following 
prayer : 

Our  Father  Cjtod,  who  amidst  the  traf- 
fic of  our  busy  ways  points  us  to  the  love 
and  wisdom  and  faith  of  the  Bethlehem 
event;  grant  us  such  love  that  evei-y  bar- 
rier to  brotherhood  and  equality  may  be 
beaten  down;  such  wisdom  that  every 
boundary  of  geography,  language,  and 
cultiu*  may  be  solved;  such  faith  that 
when  the  way  is  long  and  hard  we  may 
yet  persevere,  in  the  knowledge  that  Thy 
sovereign  will  reigneth.  Guide  us  here  by 
the  spirit  of  incarnate  Deity  revealed  for 
all  time  to  all  men  at  the  first  Christmas. 

We  pray  in  the  name  of  the  Word 
which  became  flesh  and  dwelt  Eimong  us. 
Amen. 


APPOINTMENT  OP  ACTING  PRESI- 
DENT PRO  TEMPORE 

The  PRESIDING  OFFICER.  The  clerk 
will  please  read  a  communication  to  the 
Senate  from  the  President  pro  tempore 

(Mr.  EiiSTLAND). 

The  second  assistant  legislative  clerk 
read  the  following  letter: 

U.S.  Senate, 

PBXSIDKNT  FKO  TXMPOSX, 

-      Washtngton,  DC,  December  19  1973. 
To  the  Senate: 

Being  temporarily  absent  from  the  S©n*te 
on  official  duties.  I  appoint  Hon.  James  B. 
Allen,  a  Senator  from  the  State  of  Alabama, 
to  perform  the  dutlfls  of  the  Chair  during 
my  absence. 

JAlfXS  O.  Sastlams, 
President  pro  tempore. 

Mr.  ALLEN  thereupon  took  the  chair 
as  Acting  President  pro  tempore. 


THE  JOURNAL 


Mr.  MANSFIELD.  Mr.  President,  I  ask, 
unanimous  consent  that  the  reading  of 
the  Journal  of  the  proceedings  of  Tues- 
day,  December   18,    1973,  be   dispensed 
with. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  so  ordered. 


COMMITTEE  MEETINGS  DURING 
^_  SENATE  SESSION 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  all  committees 
may  be  authorized  to  meet  during  the 
session  of  the  Senate  today. 
CXrX a«88— Part  88 


The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  so  ordered. 


SENATE  JOINT  RESOLUTION  182— 
EXTENDING  THE  TIME  FOR  THE 
TRANSMISSION  OP  1974  ECO- 
NOMIC REPORT  AND  REPORT 
OF  JOINT  ECONOMIC  COMMIT- 
TEE 

Mr.  MANSFIELD.  Mr.  President.  I 
send  to  the  desk  a  Senate  joint  resolu- 
tion and  ask  for  its  immediate  consider- 
ation. 

The  ACTING  PRESIDENT  pro  tem- 
pore laid  before  the  Senate,  S«iate  Reso- 
lution 182,  which  was  read  the  first  time 
by  title  and  the  second  time  at  length, 
as  follows: 

Resolved  by  the  Senate  and  House  of  Rep- 
resentatives of  the  United  States  of  America 
in  Congress  assembled.  That  (a)  notwith- 
standing the  provisions  of  section  3 (a)  of 
the  Employment  Act  of  1949  (16  VS.C.  1022 
(a)),  the  President  shall  transmit  the  1974 
Kconomlc  Report  to  the  Congress  not  later 
than  February  1, 1974,  and  (b)  notwithstand- 
ing the  provlslona  of  clause  (3)  of  section 
5(b)  of  such  Act  (16  VB.C.  1034(b)),  the 
Joint  Economic  Committee  shall  file  Its  re- 
port on  the  President's  1974  Economic  Re- 
port with  the  Senate  and  the  House  of  Rep- 
resentatives not  later  than  March  13.  1974. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Is  there  objectlcHi  to  the  present 
consideration  of  the  joint  resolution? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  joint  resolu- 
tion, which  was  ordered  to  be  engrossed 
for  a  third  reading,  was  read  the  third 
time,  and  passed. 


PROGRAM  FOR  THE  2D  SESSION 
OF  THE  93D  CONGRESS 

Mr.  MANSFIELD.  Mr.  President,  for 
the  information  of  the  Senate,  and  so 
that  sufficient  notice  will  be  given,  when 
the  Senate  returns  for  the  opening  of  the 
second  session  of  the  93d  Congress  on 
Monday,  January  21,  1974.  It  Is  the  In- 
tention of  the  leadership  to  lay  before 
the  Senate  at  that  time  S.  2798,  a  bill 
authorizing  the  construction,  repair,  and 
preservation  of  certain  public  works  <hi 
rivers  and  harbors  for  na^'lgation.  flood 
control,  smd  for  other  purposes. 

Mr.  BUCKLEY.  I  have  no  objection. 

Mr.  MANSFIELD.  Following  that  it  is 
anticipated  that  around  the  hour  of  3 
o'clock  on4Jxat  date  the  Senate  will  vote 
on  Executive  P.  93d  Congress.  1st  ses- 
sion, the  Customs  Convention  on  the  In- 
ternational Transit  of  Goods.  , 

TTNANIMOTTS-CONSXNT  AOBEXICXNT  FOR  VOTE  ON 
EXECtmVE  P.   SSD  CONCaiSS,   18T  SESSipN 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  the  vote  on  Ex- 


ecutive P,  93d  Congress,  1st  session,  the 
Customs  Convention  on  the  Interna- 
tional Transit  of  Goods,  occur  at  3 
o'clock  in  the  afternoon  on  Monday, 
January  21,  1974. 

The  ACTING  PRESIDENT  pro  ton- 
pore.  Without  objection.  It  is  so  ordered. 

Mr.  MANSFIELD.  Mr.  Presldeit,  fol- 
lowing the  disposition  of  S.  2798  it  is  an- 
ticipated that  the  Senate  will  then  turn 
to  the  consideration  of  Calendar  No.  582, 
HJl.  8547,  an  act  to  amend  the  Export 
Administration  Act  of  1969. 

For  the  further  Information  of  the 
Senate  it  is  anticipated  that  on  Wednes- 
day or  Thursday— and  that  would  be  the 
23d  or  24th  of  January— the  leadership 
intends  to  call  up  Executive  O,  81st  Con- 
gress, 1st  session,  the  International  Con- 
ventlcwi  on  the  Prevention  and  Punish- 
ment of  the  Crime  of  Genocide. 

So  the  Senate  is  on  notice  as  to  its 
prospect  during  the  first  week  of  Its  re- 
turn. 

Mr.  ROBERT  C.  BYRD.  Mr.  President, 
will  the  Senator  yield? 

Mr.  MANSFIELD.  I  yield 

Mr.  ROBERT  C.  BYRD.  In  otiier 
words,  what  the  distinguished  majority 
leader  Is  saying  is  that  the  Senate  is  go- 
ing to  get  moving  immediately  upon  Its 
retum^ollowing  the  Christmas  and  New 
Years  \|oliday,  with  plenty  of  business 
pending  and  yea-an^-nay  votes  oc- 
curring. 

Mr.  MANSFIELD.  The  Senator  Is  cor- 
rcct. 

Mr.  ROBERT  C.  BYRD.  And  the  dis- 
tinguished majority  leader  also  Is  Indi- 
cating that  we  have  not  only  those  jneas- 
ures  which  he  has  specified  but  also  the 
legaj^servlces  bill  which  wiU  be  coming 
alofig  that  week. 

^K**^.^'^^^'™^  T»iat  would  be  on 
tae  28th,  under  the  agreement  reached 
That  legislation  will  be  the  pending  busi- 
ness on  that  day. 

Mr.  ROBERT  C.  BYRD.  And  the 
budget  control  bill  will  be  coming  alona 
on  about  what  date? 

Mr.  MANSFIELD.  I  would  have  to  bow 
to  the  judgment  of  the  distinguished  as- 
sistant majority  leader  because  It  ^ 
nave  to  come  out  of  his  committee  It 
already  has  been  reported  by  the  Com- 
mittee on  Government  Operations  So 
what  date  would  the  distinguished  Sena- 
tor think  possible? 

Mr.  ROBERT  C.  BYRD.  I  think  per- 
haps in  the  early  part  of  February  or 
mid-February. 

Mr.  MANSFIELD.  I  thank  the  Sena- 
tor. 

Mr.  ROBERT  C.  BYRD.  I  thank  the 
distinguished  majority  leader. 

42369 


42370 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


EXECUTIVE  SESSION 


Mr.  MANSFIELD.  Mr.  Pregldent.  I  aak 
unanimous  consent  that  the  Senate  go 
Into  executive  session  to  coaslder  noml- 
natlons  on  the  executive  calendar,  begln- 
nlag  with  new  reports. 

There  -telng  no  objection,  the  Senate 
proceeded  to  the  consideration  of  execu- 
tive business. 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  Dominattons  on  the  executive 
calendar,  beginning  with  new  reports, 
will  be  stated. 


DEPARTMENT  OP  TRANSPORTA- 
TION 

The  second  assistant  legislative  clerk 
read  the  nomination  of  Rodney  Eugene 
Eyster.  of  Illinois,  to  be  General  Counsel 
of  the  Department  of  Transportation. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  the  nomina- 
tion i^ considered  and  confirmed. 

THE  JUDICIARY 

The  second  assistant  legislative  clerk 
read  the  nomination  of  Hebert  J.  Stem, 
of  New  York,  to  be  US  district  judge  for 
the  district  of  New  Jersey. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Withoui  objection,  the  nomination 
Is  considered  and  confirmed.  , 


DEPARTMENT  OP  JUSTICE 

The  second  assistant  legislative  clerk 
read  th?  nominations  in  the  Department 
of  Jui;tice.  as  follows: 

Donald  E.  Walter,  of  LouislAn*.  to  be  VS. 
attorney  :or  :h^y»stern  district  of  Loutelana. 

Denny  L.  Sampson,  of  Nevada,  to  be  VS. 
marshal  for  the  district  of  Nevada. 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  the  nomina- 
tions be  considered  en  bloc. 

The  ACTING  PRESIDENT  pro  tem- 
por*.  Without  objection,  tiie  nominations 
are  considered  and  cc  .firmed  en  bloc. 


U.S.  .\RME  CONTROL  AND  DIS- 
ARMAMENT AGENCY 

The  .second  a  sistant  legislative  clerk 
read  the  nomination  of  Thomas  B. 
Davies.  of  Ohio,  to  be  an  Assistant  Di- 
rector of  the  U.fe.  Arms  Control  antf  Dis- 
armament Ageno;.-. 

The  .ACTING  PRESIDENT  pro  tem- 
port  Without  objection,  the  nomination 
Is  considered  and  confirmed. 


DEPARTMENT  OP  STATE 

The  second  assistant  legislative  clerk 

read  the  nominauons  In  the  Department 
of  State,  as  follows: 

Walter  J  Stoaael.  Jr  .  of  California,  a  Por- 
eign  Service  oQcer  of  the  cIasb  of  Career 
Mlnlsrer  ro  be.  an  Ambaaaador  Fxtra^rdt- 
nary  an-t  Plenipotentiary  of  the  United 
Stafes  of  flmert'ra  to  th«  tJnton  of  Soviet 
SocialUt  Rvnubllca 

-''^e.niu:  S/nnenfeldt.  of  Maryland,  a  Por- 
ema  Service  ylflcer  of  '.:aas  1.  to  be  Cou.'iselor 
of  the  Department  of  State. 

Ro  ■►.-t  J.  Mccioftjiey.  of  Maryland,  a  Por- 


elgn  Service  officer  of  ciaaa  1.  to  be  an  Am- 
bassador at  large. 

Arthur  A.  Hartman.  of  New  Jersey,  a  For- 
eign Service  offlc«r  of  claaa  i.  to  M  an  As- 
sistant Secretary  of  State. 

Robert  C.  HIU.  of  New  Hampshire,  to  be  an 
Ambaasador  Kxtraordlnary  and  Plenipoten- 
tiary of  the  United  States  of  America  to 
Argentina. 

Lloyd  I.  MUler.  of  Ohio,  to  be  an  Ambaaaa- 
dor  Bxtraordlnary  and  Plenipotentiary  of  the 
United  States  of  America  to  Trinidad  and 
Tobago. 

Mr  FULBRIGHT  Mr  President,  on 
behah"  of  the  Committee  on  Foreign 
Relations  I  wish  to  make  a  few  brief 
remarks  on  the  nomination  of  Helmut 
Sonnenfcldt  :o  be  Counselor  of  the 
Dep.irtment  of  State. 

The  committee  on  December  18.  or- 
dered Mr.  Sonnenfeldts  nomination  to 
be  reported  favorably  to  the  Senate  with- 
out any  objection.  It  did  so  after  having 
heard  the  nominee  In  open  session  on". 
DecembeV  17.  and  after  having  reviewed 
testimony  given  over  a  period  of  3  days 
before  the  Senate  Finance  Committee  In 
connection   with   another  appointment. 

The  Foreign  Relations  Committee  de- 
cided not  to  duplicate  the  thorough  work 
of  the  Finance  Committee  and  not  to 
hear  witnesses  rvho  had  already  made  a 
record  before  that  committee. 

The  committee's  examination  of  that 
r^ord,  together  with  a  staff  report  on 
the  contents  of  the  security  files  on  Mr. 
Sonnenfeldt  le<>  it  to  the  conclusion  that 
there  was  either  lack  of  substantiation 
of  the  charges  made  before  the  Finance 
Committee  or  the  charges  themselves 
were  of  little  substance.  Hopefully,  the 
committee's  favorable  action  will  lay  to 
rest,  once  and  for  all.  all  questions  con- 
cerning the  nommee. 

The  nominee's  Ixickgrround.  training, 
and  experience,  eminently  qualifies  him 
for  the  position  to  which  he  has  been 
appointed.  Mr.  President,  I  ask  imani- 
mous  consent  that  liis  biographic  sketch 
be  printed  in  th?  Record  at  this  point. 

There    being   no   objection,    the   bio- 
graphical   sketch    was    ordered    to    be 
printed  In  the  Rkcord.  as  follows: 
Hn.Mtrr  SoNiTBtrtun 

Position  for  which  considered:  Counselor 
of  the  Department  of  State        ^ 

Present  Position:  National  Security  Coun- 
cU  ( on  deUll ) . 

Offlce  Address:  The  White  House,  Waah- 
ln?ton.  D  C 

Born:  September  13.  1936.  Berlin.  Ger- 
many   I  naturalised   1046). 

Le^al  Residence:   Chevy  Chase.  Maryland. 

Marital  Status:  Married. 

Pamlly:   Wife:   Marjorle  Hecht.  Children: 
Babette,  Walter,  and  Stewart. 
.     Home    Addreis:    4105   Thomapple    Street, 
Chevy  Chase.  Maryland. 

Education:  1943-44.  atudent  ManclrtSister 
Unlveratty  iBngland):  BA.  IMO:  M/A^195l, 
Johns  Hopkins  University. 

Language  AbUlty:  German  and  French. 

Experience  ■ 

Von-Govamment,  1944-45,  Photographer. 
Commercial  company. 

1952.  Translator,  language  services 

MUltary,  1945-45,  United  States  Army. 
Sergeant. 

Government.  1847.  Cleric  (CAP-3).  Depart- 
ment of  State 

1953-68.  Analyst,  then  later  Specialist.  Di- 
vision of  Research  for  USSR  and  Baatem 
Europe.  Soviet  Foreign  Branch. 


1068-60.  SpecUilA,  Bloo  Internal  PoUUoul 
Relations  Branob.  Bureau  at  Intalllganoe  and 
Research  (GS-IS). 

1960-81,  Poreli^  Affairs  Offloer,  United 
Statea  Arais  Oontrol  and  Disarmament 
Agency  (06-13  i 

1981-89,  Chief  Bloc  International  Polltleal 
Activities  Division:  Deputy  Direotoir.  than 
Director  ( 1968),  Offlce  of  Raaearoh  for  Sovlst 
Bloo,  Bureau  of  Intalllgence  and  Reaearch 
(OS-14/15;  F8R-a) 

1967.  Appointed  PSR-1. 
1080  %»  preeaot.  Natkmal  Security  Oounett 
(on  detail! 

1970,  Appointed  P30-I. 
*«'*''»•:  Superior  Honor  Award.  1968. 
Mr.  FULBRIGHT   Mr.  President,  thla 
date  speaks  for  iteelf  and  there  Is  no 
point  In  rept  .ting  It. 

There  art  two  aspects  of  this  matter 
that  I  wish  to  stress  before  closing.  One 
Is  that  Mr.  Sonnenfeldt's  loyalty  to  the 
United  States  has  never  been  success- 
fully challenged  at  any  time  or  by  any- 
one. The  other  point  is  that  there  Is  little 
if  any  doubt  about  his  ability  to  perform 
the  duties  of  the  offlce  to  which  he  Is 
now  nominated. 

On  behalf  of  .the  Committee  on  For- 
eign Relations.  I  recommend  that  the 
Senate  confirm  Mr.  Sonnenfeldt  to  be 
the  Counselor  of  the  Department  of 
State. 

Mr.  MANSFIELD.  Mr.  President.  I 
ask  unanimous  consent  that  the  nom- 
inations be  considered  en  bloc. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  obJecUon.  the  nominations 
are  considered  and  confirmed  en  bloc 
Mr.  MANSFIELD.  Mr.  President.  I 
ask  unanimous  consent  that  the  Presi- 
dent be  notified  of  the  confirmation  of 

these  nominations.  

The  ACTING  PRESIDENT  pro  Mn- 
pore.  Without  objection.  It  Is  soloi^ered. 


LEGISLATIVE  SESSION 

Mr.  MANSFIELD.  Mr.  President.  I 
move  that  the  Senate  resimae  the  con- 
sideration of  legislative  business. 

The  motion  was  agreed  to,  and  the 
Senate  resumed  the  consideration  of 
legislative  buslnp— 


ORDER  FOR-ADJOURNMENT  UNTIL 
10  A.M. 

Mr.  ROBERT  C.  BYRD.  Mr  President. 
I  a^k  unanimous  consent  that  when  the 
Senate  completes  its  business  today,  it 
stand  In  adjournment  until  10  am.  to- 
morrow morning 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  so  ordered. 


FEDERAL  ENERGY  EMERGENCY 
ADMLVISTRATION  ACT— UNANI- 
MOUS-CONSENT AGREEMENT 

Mr  ROBERT  C  BYRD  Mr  President. 
I  understand  the  following  request  has 
been  cleared  with  the  authors  of  the 
amendments.  I  ask  unani.Tious  consent 
that  on  the  amendment  by  Mr  Buck- 
ley—the  .so-called  deregulation  amend- 
ment to  the  FEEA  bill- there  be  a  time 
limitation  of  2  hours  to  be  equally  di- 
vided between  Mr.  Buckley  and  Mr 
Ribicoit;  and  that  time  on  any  amend- 
ment to  that  amendment  be  limited  to 


December  19,  1973 


CGNGRESSION.^L  RlCORD  —  SENATE 


42371 


1  hour,  to  be  equally  divided  and  con- 
trolled in  accordance  with  the  usual  form. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Is  there  objection? 

Mr.  BUCKLEY.  Mr.  President,  reserv- 
ing the  right  to  object,  and  I  shall  not 
object.  I  also  ask  if  the  distinguished  as- 
sistant leader  would  add  to  that  request, 
the  request  that  that  amendment  be 
made  the  next  order  of  business  after 
the  Mondale  amendment. 

Mr.  ROBERT  C.  BYRD.  Yes.  I  add  that 
to  my  request. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  to  ordered. 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 
I  ask  imaniraous  consent  that  on  an 
amendment  to  be  offered  by  the  Senator 
from  New  York  (Mr.  Buckley)  to  the 
amendment  of  the  distinguished  Sen- 
ator from  Minnesota  (Mr.  Mondale) 
there  be  a  time  limitation  thereon  of  30 
minutes,  to  be  equally  divided  and  con- 
trolled in  accordance  with  the  usual  form. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection.  It  Is  so  ordered. 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 
I  ask  mianimous  consent  that  on  an 
amendment  to  be  offered  by  Mr.  Jackson 
to  the  FEEA  bill  there  be  a  time  limita- 
tion thereon  of  30  mhiutes,  to  be  equally 
divided  and  controlled  in  accordance  with 
the  usual  form. 

The  ACTING  PRESrOEhTT  pro  tem- 
pore. Without  objection,  it  Is  so  ordered. 


CONGRESS  GREATEST  CHRISTMAS 
GIFT— ADJOURNMENT 

Mr.  HUGH  SCOTT.  Mr.  President, 
Confess  Is  about  to  present  Its  greatest 
Christmas  gift  to  the  American  people — 
adjournment. 


ORDER  OP  BUSINESS 

The  ACTING  PRESIDENT  pro  tem- 
pore. Under  the  previous  order,  the  Chair 
recognizes  the  distinguished  Senator 
from  Texas  (Mr.  Bentsen)  for  not  to  ex- 
ceed 15  minutes. 


ENERGY  .\ND  ECONOMICS 

Mr.  BENTSEN.  Mr.  President,  the  size 
and  scope  of  the  energy  crisis  Is  slowly 
but  surely  making  Itself  felt  on  the  gen- 
eral economy  of  the  United  States. 

Recent  statements  by  respected  econo- 
mists have  noted  that  the  energy  crisis 
means  shortages  In  consumer  products, 
higher  prices,  critical  dislocations  for  en- 
ergy intensive  and  energy  based  Indus- 
tries such  as  transportation,  petrochem- 
icals, automobile  manufacturing,  tour- 
ism, aind  In  some  cases,  basic  manufac- 
turing. 

The  effects  of  the  energy  crisis  on  un- 
employment are  already  being  felt.  Even 
the  more  optimistic  forecast  predicts 
close  to  6  percent  unemployment  by  the 
end  of  next  year.  The  fact  Is  that  un- 
employment for  some  Americans  means 
lost  production,  slower  national  growth, 
and  higher  unemployment  compensation 
cost  for  all  Americans.  And,  imemploy- 
ment  means  lost  opportunity  for  working 
person*,  their  families,  and  their  chil- 
dren. 


Already,  for  example,  layoffs  have  be- 
come wldeqsread  In  the  airline  Industry. 
Eastern  Airlines,  according  to  latest  re- 
ports, plans  to  furlough  4.000  employees. 
TWA  has  laid  off  100  pilots.  In  addition, 
about  10,000  gas  stations  have  closed  this 
year,  further  aggravating  the  employ- 
ment situation. 

Mr.  President,  even  without  the  energy 
crisis,  our  coimtry  Is  still  in  the  midst  of 
an  Inflation  spiral — most  of  which  can 
be  traced  back  to  the  declslcai  of  the 
Nixon  administration  to  remove  phase  n 
controls  In  January  1973.  That  decision, 
and  the  resulting  uncertainty  flowing 
from  it,  help  unleash  a  price  explosion 
that  has  been  plaguing  our  economy  ever 
since.  The  recent  food-price  spiral,  the 
zigzai?  nature  of  the  stock  market,  the 
Increased  interest  rates  and  credit 
crunch— <ai  meant  nothing  but  111  will 
for  the  consumer's  pocketbook. 

The  latest  Consumer  Price  Index— Is- 
sued on  November  24 — showed'*ie  cost 
of  living  accelerating  at  a  9.6  percent 
seasonally  adjusted  annual  rateO  These 
October  fig^ures  were  7.9  percent  higher 
than  1  year  earlier,  and  were  the  largest 
year-to-year  jump  In  consumer  prices 
since  1950. 

And,  the  price  Inflation  could  become 
worse  than  It  is.  Herbert  Stein,  Chair- 
man of  the  President's  Coimcll  of  Eco- 
nomic Advisers,  on  December  11,  said 
that  fuel  prices  might  rise  as  much  as 
50  percent — boosting  the  cost  of  living 
by  3  percent  or  about  $27  billion  next 
year. 

Not  only  are  prices  and  imemployment 
Increasing,  but  real  buying  power  has  de- 
creased—placing a  further'burden  on  the 
working  families  of  this  country.  Ameri- 
can workers  are  on  a  treadmill,  making 
more  money  that  wUl  buy  less  food,  less 
In  services,  less  in  consumer  goods. 

Mr.  President,  the  oU  shortage  will 
only  aggravate  those  problems— and 
make  solutions  more  difficult.  The  solu- 
tions are  not  just  a  matter  of  incon- 
veniences such  as  lower  thermostats  or 
slower  driving.  The  soluUrais  have  be- 
come a  matter  of  bsUanclng  and  adjust- 
ing our  economy  to  dampen  higher  prices 
and  protest  Jobs  in  the  face  of  a  hatlonal 
economy  that  Ls  complex,  interrelated, 
and  runs  on  a  high  con.'=umptlon  of  in- 
creasingly scarce  petroleimi  and  petro- 
leum products. 

In  short,  Mr.  President,  we  must  take 
effective  action  Immediately  to  provide 
the  assistance  necessary  to  our  business 
and  their  employees  so  that  the  economic 
effects  of  the  energy  crisis  do  not  result  In 
millions  of  employees  losing  positions  and 
eameBl4)eneflts,  the  closing  of  businesses, 
and  further  increased  prices. 

As  a  first  step.  Mr.  President,  we  must 
conduct  a  review  and  reexamination  of 
the  price  and  wage  control  system,  to 
evaluate  Its  impact  in  view  of  new  eco- 
nomic demands  and  make  the  changes 
required  to  minimize  future  economic 
dislocations.  As  a  member  of  the  Joint 
Economic  Committee,  I  intend  to  par- 
ticipate fully  in  the  upcoming  review  of 
our  economy  conducted  by  the  commit- 
tee. I  want  the  committee  to  explore  In 
detail  the  various  poUcy  alternatives  and 
make  recommendations  based  on  the  cri- 
teria of  protecting  jobs,  lessening  eco- 


nomic dlslocatlcms,  and  slowing  the  in- 
flaticm  spiral. 

As  a  second  st^,  Mr.  President,  I 
firmly  believe  that  the  Government  of 
the  United  States  bears  a  special  respon- 
sibility to  work  with  Industries  and  em- 
ployees affected  by  the  energy  crisis  to 
reduce  the  curtailments  of  production 
and  to  keep  factories  operating  and  our 
workers  on  the  Job. 

In  other  words,  we  need  to  assist  the 
economy  as  it  moves  from  petroleum 
abundance  to  petroleum  scarcity. 

To  aid  in  tbat  transition,  last  week,  I 
Introduced  legislation  that  would  estab- 
lish within  the  Department  of  Treasury 
axx  agency  for  energy  adjustment  to  ad- 
minister 81^ guaranteed  government  loan 
program  for  adjustments  necessary  to 
convert  to  a  petroleum-scarce  eccmomy. 

Under  this  legislation  the  Federal  Gov- 
ernment would  guarantee  the  princi- 
pal and  Interest  of  loans  made  for  three 
purposes: 

One,  installation  of  energy-saving 
production  equipment: 

Two,  conversion  from  Industrial  usage 
of  petroleimi  and  natural  gas  to  more 
abundant  forms  of  energy,  such  as  coal; 

Three,  conversion  to  other  lines  <rf 
products  and  services  less  dependent  on 
high  energy  usage. 

The  bill  also  grants  borrowers  a  prior- 
ity under  the  Federal  energy  allocation 
programs  to  Insiu^  that  plants  are  able 
to  continue  production  during  the  con- 
versions. 

The  bill  provides  for  loan  guaran^Cees  of 
up  to  $1'2  billion  over  the  next  18 
months. 

Since  the  demsmd  for  loans  such  as 
these  are  unknown,  this  figure  musi,  be 
the  subject  of  hearings.  But  whatever 
the  amoimt  eventually  agreed  upon  I  be- 
lieve the  cost  of  unemploj-ment  and  plant 
closings  is  greater.  A  1 -percent  increase 
in  unemployment  reduces  revenue  to  the 
Federal  Treasury  by  over  $10  billion — ^In 
addition  to  the  human  loss. 

I  believe  that  such  a  program_a»- out- 
lined In  my  legislation  would  help  keep 
factories  and  plants  open,  production 
lines  moving,  and  American  workers  on 
payrolls  instead  of  In  the  imemplojrment 
compensation  or  welfare  roUs. 

The  proposal  will  help  move  this  Na- 
tion toward  energy  self-sufficiency  and 
economic  security. 

Mr.  President,"  I  hope  that  the  Senate 
will  consider  the  legislation  I  have  Intro- 
duced as  expeditiously  as  possible. 


THE  ECONO^r?:  NEW  PROBLEMS  IN 
SEARCH  OF  NEW  SOLUTIONS 

Mr.  McGOVERN.  Mr.  President,  first. 
I  commend  the  Senator  from  Texas,  who 
has  just  made  some  remarks  with  ref- 
erence to  the  economic  problems  facing 
the  Nation.  I  want  to  follow  up  on  his 
comments  with  some  observations  on 
other  aspects  of  the  economic  situation 
which  confront  our  countrj"  today. 

Mr.  Prejident,  this  morning  a  number 
of  us  on  this  side  of  the  aisle  will  be 
discussing  legislation  which  the  Congress 
has  adopted  this  year  and  could  adopt 
next  year  to  help  solve  the  problems 
which  plague  the  economy. 


42372 


CONGRESSIONAL  RECORD  —  SENATE 


Each  of  us  has  chosen  a  topic  on  which 
he  places  a  high  priority.  In  my  case  It  Is 
tax  reform.  But  before  offering  some 
«>ecific  suggestions.  I  want  to  underscore 
the  nature  of  our  economic  plight  today. 
For  the  first  Ume  since  the  1930s. 
American  jobs  and  American  prosperity 
are  seriously  threatened.  The  increasing 
Inflation,  unemployment  and  shortage  we 
have  today  are  symptoms  of  serious 
economic  Illness.  And  the  fault  lies  not 
with  the  free  enterprise  system,  but  In 
how  that  system  has  been  perverted  for 
the  special  interest  of  a  few  at  the  ex- 
pense of  the  worker,  the  farmer,  and  the 
small  businessman. 

The  problems  we  have  today  are  not 
simply  the  result  of  incompetent  ad- 
mlnlstraUon.  They  are  rooted  In  funda- 
mental choices  the  Government  has  made 
over  the  past  few  years— In  the  budget 
and  t^x  policies  developed  to  counter 
inflationary  pressures  spawned  by  the 
Indochlnf  war  and  its  $100  billion 
deficits.  ' 

Despit^  frequent  talk  cf  returning  to  a 
free  economy"  and  getting  Government 
ou'  of  the\peoples  pockets,  the  Nixon  ad- 
ministration has  Intervened  extensively 
in  economic  matters— trying  and  aban- 
doning several  different  policies. 

DuringJJie  first  2  years  of  his  Presl- 
dency.  Mr  Nixon  practiced  the  economics 
of  Herbert  Hoover,  seeking  to  restrain 
prices  by  raising  unemployment  I^e 
result  was  a  major  recession  and  an 
actual  increase  in  Inflation. 

To  combat  this  new  crisis  the  Presi- 
dent sharply  altered  his  economic  policy 
Relying  on  an  unprecedented  array  of 
economic  tools,  he  sought  to  pull  the 
country  out  of  recession  bv  raising  (jov- 
emment  spending  and  budget  deficits 
more  than  at  any  other  time  of  peace 
And  to  combat  the  inflation  in  1970-71 
the  President  Imposed  the  first  peacetime 
wage-price  dbntrols  hi  our  history  At  the 
same  Ume  he  radically  altered  the  tax 
structure. 

But  the  emphasis  of  his  program  was 
to  benefit  the  corporate  sector.  He  hoped 
that  higher  profits  would  lead  to  greater 
Investment  and  expansion  and  thus  to 
more  jobs. 

Wages  have  been  kept  under  strict 
control,  while  profits  have  been  per- 
mitted to  soar  to  record  highs,  fattened 
by  multimlllion  dollar  tax  wTiteoffs 

The  President  is  foUowing  the  same 
strategy  in  dealing  with  the  energy  crisis 
today— permitting  oil  prices  ar.d  profits 
to  soar,  and  recruiting  250  oU  executives 
to  run  the  emergency  eneri?>'  program 

A  decade  earlier.  President  Kennedy 
also  Inten-ened,  using  fiscal  tools  to  help 
the  Nation  recover  from  the  last  Eisen- 
hower recession.  His  program  Involved 
fiscal  stimulation  through  increased  Gov- 
ernment spending  and  tax  reduction 
freer  trade  with  foreign  nations,  and 
wage-price  guldellnw. 

But  while  President  Nixon  has  relied 
on  wealth  to  trickle  down  from  big  busl- 
nes.-  to  the  rest  of  us.  President  Kennedy 
sought  to  benefit  workers  and  "on.suir.e'-^ 
directly.  Thus,  his  program  for  tax  re- 
lief, impemented  by  President  Johnson. 
was  basically  a  lowering  of  individual  in- 
come  tax   rates   to   Increase   consump- 


c 


December  19,  197  S 


Uon  and  therefore  production.  And  his 
attempts  to  restrain  inflation  concen- 
trated on  prices  rather  than  wages. 

The  policies  I  advocated  last  year 

tax  reform,  decreased  military  spending, 
selective  price  controls  and  tougher  anti- 
trust enforcement  in  the  case  of  highly 
concentrated  Indastrles,  and  Income  re- 
dLstribution— basically  followed  In  the 
Kennedi'  mold.  Their  purpose  was  to 
stimulate  consumption  and  thereby  in- 
crease investment  and  jobs,  while  moving 
to  balance  the  budget  by  closing  tax  loop- 
holes and  reducing  unnecessary  and  un- 
productive mihtary  commitments. 

I  think  that  approach  would  have  been 
more  effective  as  well  as  more  equitable. 
Although  the  abuses  of  the  past  would 
still  have  taken  their  toll,  an  earUer  re- 
turn to  sound  policy  would  have  lessened 
the  cost. 

But  now  we  have  a  new  dimension 
which  pushes  even  this  debate  into  a 
secondary  role.  It  virtually  guarantees 
that  the  1970's  will  mark  a  major  turning 

point  in  American  economic  thinking 

a  period  no  less  profound,  and  perhaps  no 
less  traumatic,  than  the  1930's. 

Today  the  question  la  no  longer  one 
of  choosing  between  alternative  strate- 
gies, either  of  which  will  produce  some 
measure  of  prosperity.  It  is  one  of  coping 
with  shortages  of  essential  commodities 
which  cannot  be  replaced. 

Inefficient  uses  of  industrial  commod- 
ities in  short  supply  will  insure  that  in- 
dustry will  not  soon  catch  up  with  the 
demand  for  many  essential  products. 
And  a  shortage  economy  will  insure  that 
Inflation  will  continue  at  the  high  rates 
we  have  seen  this  year. 

No  economic  forecast  I  hav«  seen 
paints  a  hopeful  picture.  Even  the  usu- 
ally optimistic  administration  projec- 
tions herald  hard  years  ahead,  regard- 
less of  what  happens  with  the  Arab  oil 
boycott.  Just  last  week  the  Chairman  of 
the  President's  Council  of  Economic  Ad- 
visers projected  a  33-percent  increase  in 
the  unemployment  rate,  coupled  with  6- 
percent  inflation.  The  Department  of 
Agricultiu-e  has  forecast  a  17-percent  de- 
cline In  farm  Income.  Housing  starts  are 
.ah^ady  down  by  25  percent,  paced  by 
the  highest  interest  rates  shice  the  Civil 
War. 

And  on  top  of  this,  no  expert  is  sure 
what  effect  the  energy  crisis  will  have  on 
unemployment  or  Inflation.  In  terms  of 
jobs,  estimates  range  from  6-  to  10-per- 
cent unemployment,  depending  on  how 
serious  the  shortage  is. 

As  far  as  prices  are  concerned,  the 
energy  shortage  may  add  as  much  as  3 
percent  to  the  earlier  projections. 

But  for  the  American  people,  the  ques- 
tion is  not  who  is  to  blame,  but  what 
can  be  done. 

To  some  extent,  past  errors  in  gov- 
ernment policy  should  humble  us  in  our 
future  efforts.  But  because  b!*d  policy 
has  been  a  m^Jor  source  of  the  present 
disorder,  only  better  poUcy  will  enable 
us  to  restore  order. 

I  personally  believe  that  the  tax  code 
furnishes  us  with  one  of  the  most  eff^- 
tlve  means  of  restoring  strength  to  the 
economy  For  by  making  certain  changes, 
we  can  overcwne  the  effects  of  hiflatlon. 


put  our  wealth  to  more  productive  use, 
and  begin  to  end  the  energy  crisis. 

I  was  heartened  by  a  statement  the 
President  made  at  his  September  5  news 
conference.  He  said; 

A  number  of  my  economic  advlaors,  in- 
cluding. Incidentally,  Arthur  Buma,  have 
strongly  recommended  that  the  whole  an- 
swer to  this  problem  of  inflation  la  in  the 
tax  structure. 

He  went  on  to  endorse  the  concept  of 
a  variable  investment  credit. 

Tax  reform  is  essential,  and  I  was  dis- 
appointed when  the  President  did  not 
follow  up  his  trial  balloon  with  specific 
proposals.  But  Chairman  Mills  has 
pledged  to  report  out  a  comprehensive 
tax  bill  next  year. 

Among  the  highest  priorities  for  tax 
reform  should  be  an  attempt  to  dis- 
tribute the  tax  burden  more  equitably 
among  all  our  citizens  A  recent  poll  re- 
flected that  76  percoit  of  the  people 
now  believe  that  -the  "rich  get  richer 
while  the  poor  get  poorer."  And  the 
President  himself  has  had  an  opportu- 
nity to  personally  experience  the  ire  of 
taxpayers  who  see  someone  earning  an 
Income  of  a  quarter  of  a  million  dollars 
pajrlng  the  "same  amount  of  tax  as  a 
working  family  of  four  with  an  Income 
of  only  $8,000. 

Yet  one  consequence  of  inflation  has 
been  to  redistribute  Income  upwards  In 
the  form  of  higher  profits  for  big  busi- 
ness. For  example,  the  profits  of  the  larg- 
est corporations  have  Increased  at  a  rate 
of  30  percent  this  yeau-.  And  compensa- 
tion for  executives  has  gone  up  a  com- 
fortable 13.5  percent.  But  wages  for 
working  people  have  not  even  kept  pace 
with  Inflation.  Their  purchasing  power 
has  actually  gone  down. 

For  the  rich  and  superrich,  tax  shel- 
ters have  proUferated.  The  overall  effect 
is  that  the  highest  income  taxpayers 
have  been  able  to  escape  the  tax  the  law 
appears  to  require  them  to  pay  while 
inflation  forces  the  average  citizen's 
wages  into  higher  income  brackets:  a 
greater  tax  on  a  lesser  income  which 
they  cannot  escape. 

Last  Spring  Secretary  Shultz  endorsed 
the  concept  of  "minimum  taxable  in- 
come" originally  put  forth  by  Professor 
Surrey  of  Harvard.  Under  this  concept, 
wealthy  taxpayers  would  be  taxed  at  nor- 
mal rates  on  at  least  half  of  their  real 
Income  But  whatever  formula  is 
adopted,  an  effective  minimum  tax 
should  be  the  first  priority. 

A  second  area  which  should  bespx- 
plored  is  the  concept  of  a  variable  invest- 
ment tax  credit.  Many  Industries  today 
are  experiencing  serious  capital  short- 
ages. They  will  be  unable  to  readjust  to 
changed  times  imless  they  are  granted 
incentives  to  modernize.  The  problem 
with  the  current  investment  incentives  is 
that  they  reflect  basically  a  shotgun  ap- 
proach, rewarding  unproductive  invest- 
ments equally  with  useful  ones.  So  any^>^ 
program  of  reform  in  this  area  should 
incl"de  p.  repenl  of  the  accelerated  de- 
preciati-'n  provisions.  We  should  also  re- 
turn to  the  form  of  the  investment  tax 
credit  whi.h  worked  successfully  during 
the  Kennedy  years,  limiting  the  credit  to 
actual  increases  in  investment. 


December  19,  19  73 


CONGRESSIONAX  RECORD  —  SENATE 


42373 


\ 


This  revision  of  accelerated  deprecia- 
tion and  the  investment  tax  credit  would 
permit  a  reallocation  of  between  $7  and 
$8  billion  Into  more  pruductive  uses. 
/•  A  third  area  Involves  channeling  the 

\  Increased  profits  of  energy  companies 
to  uses  which  will  help  .solve  the  energy 
crisis.  Chairman  Mills  has  alreadj'  en- 
cior.<;ed  the  concept  of  an  excess  profits 
tax,  as  have  many  segments  of  organized 
labor,  including  the  AFL-CIO.  Last 
Wednesday,  Representative  Les  Aspm 
and  I  Introduced  legislation  t.o  impose  a 
nominally  high  rate  of  tax  on  Increased 
energy  profits,  coupled  with  an  invest- 
ment credit.  Under  our  bill,  energy  com- 
panies would  be  able  to  avoid  paying 
that  tax  If  they  used  tiielr  increased 
profits  for  certain  designated  types  of 
Investments  which  would  increase  the 
domestic  supplj-  of  energy.  In  other 
words,  the  excess  profits  tax  would  only 
apply  to  increa<;pd  profits  which  were 
used  for  higher  dividends,  retained  earn- 
ings, or  improductive  investments  Cer- 
tainly no  group  should  reap  windfall 
profits  from  a  crisis  which  wUl  force  all 
Americans  to  sacrifice. 

Fourth,  we  should  close  the  loophole 
for  unrealized  capital  gains  at  death. 
with  an  exception  for  estates  of  moderate 
size,  a  deferral  of  taxes  on  property  left 
to  a  spouse  and  extended  averaging  pro- 
visions. The  inevitabUlty  of  death  .should 
not  assure  the  avoldabllity  of  taxes.  We 
should  no  longer  permit  the  pa.s,sage  from 
generation  to  generation  of  vast  sums 
of  unearned  and  untaxed  wealth.  And  if 
wealthy  estates  paid  taxes  on  the  real 
value  of  property,  we  would  have  $2.5 
billion  more  in  revenues  each  year. 

Fifth,  we  should  grant  a  itiore  equi- 
table $160  tax  credit  In  place  of  the  re- 
gressive personal  exemption.  Under  the 
present  system,  a  per.sonal  exemption  re- 
duces taxes  by  $525  for  taxpayers  in  the 
highest  bracket,  but  only  $107  for  those 
in  the  lowest  bracket  By  changing  from 
an  exemption  to  a  tax  credit,  we  would 
reduce  taxes  for  more  than  85  percent 
of  American  families  and  at  the  same 
time  raise  nearly  $1.5  billion  in  addi- 
tional revenue. 

Sixth,  we  .should  remove  the  $100  divi- 
dend exclLLslon  P'or  86  percent  of  the 
benefits  of  this  lo<jphole  go  to  the  richest 
5  percent  of  our  taxpayers,  while  only  4 
percent  goes  to  the  average  citizen.  Its 
elimination  would  .vield  $400  million. 

Seventh,  we  should  subject  those  who 
earn  income  from  investments  to  the 
same  withholding  and  reporting  require- 
ments as  wage  earners  Because  the 
banks  and  Wall  Street  brokerage  houses 
did  not  want  the  annoyance  of  extra 
bookkeephig,  withholding  for  the  rich 
was  repealed  during  the  Elsenhower  ad- 
ministraticjn.  But  the  question  in  this  age 
of  computers  is  which  problem  is  the 
more  serious — bookkeeping  for  banks 
and  brokers,  or  the  revenues  lost  in  un- 
reported dividend  and  interest  Income. 
One  commentator  has  estimated  such 
unreported  Income  at  $6  billion  a  year, 
with  a  $1  bilUon  revenue  loss. 

Eighth,  we  should  repeal  DISC  and 
other  tax  breaks  for  foreign  earned  in- 
come. In  a  period  of  high  unemployment, 
corporations  should  be  encouraged  to  ex- 
port their  products,  but  not  the  jobs  of 


American  workers.  And  by  enacting  that 
prlncipla  mto  tiie  tax  code,  we  can  raise 
$1,3  bllUon  more. 

In  addition  to  these  eight  steps,  we 
should  carefully  review  the  tax  code  as 
It  relates  to  agriculture.  The  $4  billion 
p.-xjjected  drop  In  farm  income  next  year 
st^nously  threatens  the  goals  the  Con- 
gress and  the  President  have  set  for  in- 
creased farm  production  We  m'ost  make 
sure  that  there  is  sufficient  supply  of 
capital  to  plant  new  acreage  and  avoid 
the  kind  of  chaos  which  price  controls 
cau-sed  this  year. 

If  we  take  these  steps  in  the  tax  area 
alone  we  wUl  have  gone  a  long  way  to- 
ward solving  manj'  of  the  problems 
which  face  us.  By  readjusUng  rate  struc- 
tures to  off.set  the  regressive  effects  of 
inflation,  we  can  restore  equity  to  the 
tax  code.  By  reordering  investment  in- 
centives, we  can  insure  that  our  capital 
is  used  productivelj'  in  both  industr>-  and 
agriculture.  And  by  providing  a  sUck  as 
weD  as  a  carrot  to  the  major  oU  com- 
panies, we  can  assure  that  their  record 
profit^s  w;ll  be  the  solution  rather  than 
the  spoils  of  the  energy  crisis. 

In  conclusion.  Mr.  President  let  me 
again  stress  that  the  problems  which  we 
face  are  new. 

If  we  treat  shortages.  Inflation,  and 
unemployment  as  temporary  aberra- 
tions, and  continue  special  interest  poli- 
cies, our  wealth  and  prosperity  wiU  ebb. 

But  if  instead  we  come  home  to  the 
democratic  principles  from  which  our 
strength  once  grew,  our  wealth  and 
strength  will  be  renewed 


RETURN  TO  A  FREE  ECONOMY 

Mr.  BUCKLEY.  Mr  President,  a  few 
weeks  ago  I  said  that  I  thought  we  were 
approaching  a  wai^rshed  between  a  re- 
turn to  economic  freedom  and  the  wide- 
spread material  benefits  that  historical- 
ly have  been  associated  with  that  free- 
dom, and  the  adoption  of  a  control  men- 
tality that  can  only  remove  the  elasticity 
of  our  economy  and  create  greater  short- 
ages and  higher  prices  for  the  American 
people. 

That  was  In  mid -November.  It  seems 
now.  however,  that  the  approaching 
watershed  I  spoke  of  has  given  way  un- 
der the, ascending  wave  of  bureaucratic 
Inertia  and  congressional  rhetoric  to 
tighten  further  the  Crovemment's  ill- 
advised  inter\-ention  In  the  market. 

In  the  face  of  the  resounding  failure 
of  every  facet  of  the  wage-price  control 
program,  and  with  the  advent  of  a 
largely  regulation -Induced  energy  crisis, 
one  could  reasonably  expect  a  congres- 
sional clamor  to  dispatch  this  unwel- 
come intrusion  into  a  free  economy. 
Incredibly,  the  manifest  failure  of  con- 
sols is  being  met  by  suggestions  in  some 
quarters  for  additional  controls.  Mr. 
President,  there  is  no  alternative  to 
abandoning  controls  if  we  are  ever  to 
regain  a  free  and  prosperous  economy. 

We  often  lose  perspective  in  this 
Chamber  and  in  this  city.  We  tend  to 
think  that  what  Ls  before  our  nose  is 
what  is  important.  But  I  say  todav  that 
history  will  Judge  this  Congress  and  this 
administration  not  on  the  matters  of 
peripheral  importance,  even  if  they  do 
dominate  the  front  pages,  but  on  how  we 


stand  on  the  question  of  a  free  economy. 
For  the  first  time  in  American  peace- 
time history,  we  are  Uving  under  an  au- 
thontarian  economy.  In  1970,  the  Con- 
gress gave  the  President  of  the  United 
States  the  most  broad  and  svreeping 
standby  powers  over  the  economy  that  he 
did  not  want.  Nevertheless,  bowiiig  to 
political  pressures,  the  President  in- 
voked more  powers  1  year  later  with 
r&sults  that  can  only  be  described  els 
disastrous  for  the  people,  for  the  econ- 
omy, and  for  the  cause  of  freedom.  To 
whose  benefit '' 

Since  the  Nixon  administration  took 
oSce  m  1969  we  have  had  an  opportunity 
to  test  the  efficacy  of  controls.  Between 
December  1970  and  ..^u.irust  1971  when 
controls  took  effect  the  Consumer  Price 
Index  grew  at  a  3.8  percent  annual  rate. 
Since  controls  were  first  Imposed  in  Au- 
g'ost  1971.  the  index  has  reflected  an 
acceleration  in  consumer  prices  that 
demonstrates  the  futility  of  wage  and 
price  controls. 

In  August  1971,  the  index  stood  at 
122.1.  By  October  of  this  year.  It  had 
reached  136.6  and  during  the  most  re- 
cent 12-month  period  for  which  figures 
are  available,  It  was  rising  at  a  rate  of 
7.4   percent   per  year. 

Thu,<:  we  have  suffered  the  trauma  of 
dislocauons  resulting  from  the  imposi- 
tion of  controls  only  to  discover  that  the 
problem  they  are  supposed  to  solve  la 
stUi  with  us  and  growing  worse. 

If  there  are  any  lingering  doubts  that 
the  whole  fabric  of  controls  is  harmftu 
to  our  economy,  they  will  soon  be  dis- 
pelled by  the  results  of  a  forthcoming 
study  commissioned  by  the  National  As- 
sociation of  Manufacturers.  In  a  survey 
of  hundreds  of  manufacturing  firms,  pre- 
l:minar-'  results  reveal  the  cascading 
series  of  shortages  which  have  t>een  pro- 
duced by  controls.  83  percent  of  those 
.^urveved  Indicate  that  the  continuation 
of  wage  and  price  controls  will  further 
worsen  an  already  critical  supply  situa- 
tion. At  the  present  time  over  150  critical 
industrial  commodities  are  In  short  sup- 
ply. Because  these  IndiLstrial  commodi- 
ties are  Intermediate  products  in  the  pro- 
duction process  the  shortages  will  sooner 
or  later  affect  every  comer  of  -American 
economic  life,  Thlrtv--one  percent  said 
that  they  were  forced  to  cancel  or  post- 
pone expansion  plans  because  of  wage 
and  price  controls  while  over  two- 
thirds  stated  that  controls  had  imposed 
financial  damage  to  their  Industry — 
35  percent  of  the  firms  were  forced  to 
reduce  output  as  a  result  of  price  con- 
trols. To  add  insult  to  Injury-.  It  cost 
responding  firms  an  average  of  $100  000 
to  comply  with  a  set  of  regialations 
which  have  been  an  tmmitigated  dis- 
aster for  the  American  economy 

Government  controls  are  the  primac? 
cau.se  of  our  current  economic  difficulties. 
Orgamzed  labor  called  for  their  aboli- 
tion in  October,  Ninety-six  percent  of  the 
firms  surveyed  by  the  NAM  want  them 
abolished. 

Wage-price  controls  have  not  worked. 
The  evidence  is  everywhere.  Or  rather 
I  should  say  that  the  lack  of  materials 
and  food  and  energy  sources  are  an  elo- 
quent, if  silent,  testimony  to  the  damage 
done  by  wage  and  price  controls. 


42374 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  197S 


Yet  In  spite  of  this  overwhelming  evi- 
dence of  dpep  economic  dislocations,  de- 
spite the  growing  list  of  shortages,  the 
regulators  and  Influential  voices  In  the 
Congress  say  that  the  moment  Is  not 
right  to  lift  these  shacldes  from  the 
American  economy.  The  fact  is  that  the 
time  Is  never  right  to  abolish  controls, 
and  the  longer  they  remain  In  place,  the 
greater  will  be  the  temporary  shock  as 
the  economy  readjusts  to  the  stimuli  of 
the  marketplace. 

Happily,  it  does  net  require  an  act  of 
Congrs^  to  return  to  conditions  of  a 
free  ^wnomy.  The  President  invoked 
controls  under  the  authority  of  the  Eco- 
nomic Stabilization  Act  of  1970.  He  can, 
by  Executive  decree,  abolish  them.  The 
time  for  him  to  bite  ths  bullet  Is  now. 
The  excuse  of  political  pressures  will  no 
longer  suffice  to  justify  retention  of  con- 
trols. I  urge  the  President  to  begin  th? 
new  year  by  returning  freedom  to  the 
American  economy.  If  he  fails  to  do  so  In 
the  face  of  the  overwhelming  evidence 
we  now  have  of  their  disastrous  effect,  he 
alone  must  bear  the  heav-y  responsibility 
for  the  damage  being  inflicted  by  thep. 


INFLATION  AND  SMALL  BUSINESS — 
THE  SORRY  \L\NAGEMENT  REC- 
ORD OF  THE  NIXON  ADMINISTRA- 
TION 

Mr.  BIBLE.  Mr.  Pre^dent,  this  coun- 
try- is  in  the  grip  of  rampant  inflation. 

By  October  1973,  the  Consumer  Price 
Index  reached  136.6  percent  of  its  1967 
average.  This  mesms  that  more  than  one- 
third  of  the  purchasing  power  of  the  dol- 
lar has  been  lost  to  inflation  since  1967. 

We  know  that  the  average  American 
familj-  has  less  purchasing  power  today 
than  in  1966,  and  the  average  small  busi- 
nessman is  probably  in  the  same  diffi- 
culty.' The  cost  of  evcrithing  needed  In 
business  has  soared. 

At  the  beginnine  of  October  this  year. 
things  were  bad  enough.  Wholesale  prices 
were  16.6  percent  higher  than  a  year  be- 
fore. Now,  at  the  beginning  of  December 
\  1973,  the  Wholes.xl;  Price  Ind?x  stinds  at 
141.8,  17.5  percent  higher  than  in  No- 
vember 1972.  Food  and  farm  prices  were 
42.9  percent  higher  than  12  montlu  ago. 
and  fuel  prices  had  escalated  47.7  per- 
cent above  the  levels  of  a  year  ago.' 

In  historical  perspective,  these  In- 
creases have  been  astronomical. 

I  believe  it  necessary-  to  understand  the 
reasons  for  this  sad  state  of  affairs  if  we 
are  going  to  do  anything  about  It.  .Al- 
though worldwide  .shortages  of  grains, 
fuels  and  other  ccmmoditlCG  are  part  of 
the  problem,  many  commentators  seem 
to  agree  that  our  Government  has  not 
properly  planned  to  meet  these  condi- 
tions and  that  the  inept  performance  of 
the  administration  in  the  face  of  these 
shortages  is  a  larger  part  of  the  problem. 

During  1973,  so  far,  prices  to  the  con- 
sumer havH,>e€n  increasing  Mr  a  rate  of 
more  than  T^rcent.' 

•    WHAT     IMFUkTIoA     Win,     MEAN     TO     BVHITDAT 
PKICZS 

What  does  this  mean  to  the  average 
American  family  and  small  business- 
man? Financial  commentator  Sylvia 
Porter  has  illustrated  the  drastic  conse- 


Pootnotes  at  end  or  hi)Mie. 


guences  to  our  people  of  even  a  5 -percent 
inflation  rate.  By  the  year  1985 : 
Steak  would  sell  for  $3.23  a  pound; 
An    average    man's    suit,    instead    of 
1125.00,  would  cost  $224.48: 

A  new  car  price  would  rise  from  $3,500 
to  $6,285: 

Gasoline  would  be  72  cents  a  gallon; 
and  , 

Milk  wdOld  be  57  cents  a  quart. 
With  wages  rising  to  chase  this  kind 
of  escalation,  the  cost  of  every  necessity 
and  convenience  would  also  rise.  For  In- 
stance, at  even  a  5-i>ercent  inflation  rate, 
the  Items  below  would  cost  about  two- 
thirds  more  than  they  do  now; 
Rent: 
Bus  fare; 
Sand^viches: 

Sales,, property,  and  income  taxes; 
Shoes^ 

Admission  to  weekend  movie  would  rise 
from  $2.50  to  S4.49;  and 

The  New  York  subway  that  once  upon 
a  time  you  could  ride  for  a  nickel  would 
cost  $.63. 

Mr.  President.  I  ask  unanimous  con- 
sent that  three  articles  by  Miss  Porter 
Itemizing  these  price  increases  and  illus- 
trating the  decline  in  purchasing  power 
of  wages  be  printed  in  the  Record  fol- 
lowing ny  remarks. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  bbjectlon,  it  is  so  ordered. 
(See  exhibit  1.) 

Mr.  BIBLE.  Mr.  President,  as  prices 
Increase  monthly,  or  even  weekly,  some 
American  families  can  just  tighten  their 
belts  and  give  up  steaks  or  movies  or  an 
extra  piece  of  clothing.  But.  there  are 
also  many  Americans  who  will  simply 
not  be  able  to  pay  some  of  these  price 
increa':es  for  necessities.*  Small  enter- 
prises are  also  buyers  of  these  items. 
Many  of  them  can  also  tighten  their 
belts  and  pay  less  to  their  owners  smd 
their  employees.  But  many  others  may 
be  forced  out  of  business,  and  some  al- 
ready have  been. 

If  inflation  is  not  brought  imder  con- 
trol, many  of  our  citizens  face  grim  al- 
ternatives. For  over  20  million  elderly 
and  other  persons  on  fixed  Incomes,  their 
daily  lives  can  become  desperate.  Small 
business  provides  over  50  percent  of  the 
jobs  in  our  economj-.  and  close  to  40  per- 
cent of  the  gross  national  product,  in- 
cluding many  goods  and  services  which 
are  essential.  Disruption  of  small  busi- 
ness can  severely  dislocate  the  entire 
economy.  This  makes  inflation  a  quiet 
but  pervasive  national  crisis. 

Mr.  President,  as  1973  draws  to  a  close, 
small  businesvsmen  needing  to  borrow 
capital  nr^  facing  interest  rates  close  to 
or  in  double  figures.  Some  lending  rates 
have  reached  as  high  as  14  to  15  percent 
when  money  is  available.'  For  the  home- 
building  Industry  fpr  the  coming  year, 
economists  predict  a  30  percent  drop  in 
production  and  a  much  larger  drop  In 
profits."  With  building  hit  this  hard,  there 
are  sure  to  be  ripple  effects  to  home  furn- 
ishings, appliances,  furniture,  hardware, 
and  general  retailing,  in  all  of  which 
small  business  firms  have  a  very  large 
stake. 

These  conditions  constitute  a  radical 
change  from  a  United  States  of  the 
1960*s.  which  enjoyed  one  of  the  most 
stable  economies  and  money  systems  In 


the  world  until  the  buildup  of  the  Viet- 
nam war.' 

VKEDICT    or    THE    ECONOMl^    CXPE3T8 

However,  the  Vietnam  Inflation  came 
to  an  end  In  the  recession  of  1970.  The 
responsibility  for  the  inflation  we  are  in 
now  is  very  clear.  It  was  described  by  two 
economic  authorities  as  follows: 

Eminent  financial  editor  Hobsut 
Rowen  has  said — "The  Nixon  adminis- 
tration has  itself  to  blame  for  the  present 
mess." 

Financial  columnist  Sylvia  Porter 
stated — 

An  objecuve  study  of  those  several  ex- 
planations (failure  to  correctly  assess  th« 
worldwide  boom,  underestimation  of  the  Im- 
pact of  food  sales  overseas  on  the  U.  S. 
economy  and  parilcularly  U.  S.  consumers, 
and  failure  to  plan  fcr  fuel  and  transport 
shortages.  faUure  to  propo.-^e  a  tax  lacrease  or 
other  antl-lnflatlonary  Oscal  poUcy.  tardluees 
of  the  Federal  Reserve  In  fighting  Inflation, 
,iad  Uck  of  poll-y  to  deal  with  the  er.ergy 
crisis)  must  lead  you  to  conclude  that  on 
fighting  Inflation — the  No.  1  economic  prob- 
lem to  the  American  public — this  adminis- 
tration has  been  a  disaster.' 

Ill  support  Of  these  findings,  Mr.  Rowen 
itemlze.s  the  follov»ing  examples  of  mis- 
management by  the  Nixon  administra- 
tion: 

Mr.  Nixon's  spending  budgetary  poli- 
cies resulted  in  deficits  of  over  $63 ',2 
billion  during  the  first  3  fiscal  years 
of  his  administration.  Furthermore,  be- 
cause of  high  interest  rates  prevailing 
during  most  of  that  time,  there  was  a 
rimup  of  over  25  percent  in  the  national 
debt  between  June  30.  1969.  and  June  30. 
1973.  with  Interest  on  the  debt  now  ac- 
counting for  9.8  percent  of  Federal  ex- 
lendltures.  compared  to  6.0  percent  In 
fiscal  year  1969.* 

Mr.  Nixon's  tax  policy  of  benefits  for 
big  business  as  indicated  by  his  proposals 
in  1969  and  1971.  I  have  previously  esti- 
mated that  after  Congress  succeeded  in 
reducing  or  elimtftatlng  taxes  for  many 
citizens  under  the  poverty  line  in  1969. 
Mr.  Nixon's  administration  succeeded  in 
legislating  approximately  S5  billion  worth 
of  tax  cuts  for  about  400  of  the  country 's 
largest  corporations  in   1971." 

Another  aspect  of  Mr.  Nixon's  fiscal 
policy  referred  to  by  Ms.  Porter  and 
others  has  been  the  series  of  announce- 
ments during  1972  and  1973  that  ruled 
out  any  tax  proposals  In  the  effort  to 
fight  Inflation."  This  policy  threw  a  dis- 
proportionate burden  on  monetary  pol- 
icy, and  made  the  tasks  of  others  seeking 
price  stability — and  making  the  control 
of  Inflation — much  more  difficult. 

The  Chairman  of  the  Federal  Reserve 
Board.  Arth^ir  F.  Bums,  has  repeatedly 
suggested  a  variety  of  possible  tax  In- 
creases and  has  stated  that  "the  loose- 
ness of  our  Federal  flsca!  policies  (are) 
the  most  Important  underlying  cause  of 
Inflation.'  " 

Most  Americans  could  tell  Mr.  Nixon 
from  experience  that  "Inflation  Ls  the 
crudest  tax." 

POLICIES      AIMED      AT      LXMITINO      StTTTLIXS 

Mr.  Nixon's  agricultural  and  fuel  pol- 
icies In  the  first  4  years  of  his  admin- 
istration were  aimed  at  assuring  scarcity 
and  higher  prices.  These  objectives  were 
not  reversed  until  well  Into  1973. 

It  Is  apparent  that  some  of  the  short- 


December  19,  1973 


CONGR£SSIONAL  RECORD  —  SENATE 


4^375 


ages  causing  infiation  m  the  United 
States  are  worldwide  in  scope.  However, 
the  Nixon  administration  was  caught 
flatfooted  in  the  face  of  international 
shortages  of  grains  and  petroleum.  Just 
how  ill-prepajed  is  illustrated  by  the 
fact  that  it  sold  a  quarter  of  our  1972 
feed  grain  crops  to  the  U5.S.R.  at  $1.50 
to  $1.60  a  bushel,  when  a  year  later  the 
price  would  be  $4.80  a  bushel." 

Mr.  Nixon's  price  control  poUcies 
which  resulted  in  a  year  and  a  half  wait 
after  Congress  had  authorized  him  to 
first  impose  controls  before  the  President 
would  act.  Then.  In  a  staggering  miscal- 
culation last  January  he  ended  controls 
just  when  they  seemed  to  be  working. 
,  Later,  he  was  required  to  reverse  himself 
again  and  impose  another  freeze  and 
another  set  of  controls. 

Mr.  Rowen  might  also  have  cited  Mr. 
Nixon's  statement  in  January  1969 — 
while  a  war  v.  as  still  In  progress — that 
companies  and  unions  under  our  system 
of  government  should  raise  prices  at 
will.  This  declaration  terminated  a  poUcy 
of  voluntary  price  cooperation  by  basic 
Industries  which  had  limited  their  price 
Increases  to  1'^  percent>per  year  for  the 
previous  3  years.  Following  President 
Nixon's  statement,  there  was  %  6-percent 
Increase  in  the  cost  of  basic  industrial 
materials  in  a  single  year." 

SHIFTS    IN    POUCT    AHX    ALSO   A    FACTOR 

These  actions  have  been  cited  as  "sud- 
den violent  swings  In  public  policy 
which  have  created  an  atmosphere  of 
uncertainty  that  encourages  speculation 
and  therefore  inflation.'"* 

A  recent  editorial  spells  this  out; 

The  succession  of  phases,  and  the  chang- 
ing of  basic  rules  every  few  months,  creates 
a  hostile  climate  for  orderly  investment.  It 
Jeopardizes  the  calculations  of  businessmen 
and  Induces  them  to  grab  for  the  nearest 
profit  rather  than  building  for  a  longer  pros- 
perity. The  extraordinary  rises  In  Industrial 
prices  last  spring  were  obviously  owed,  In 
some  considerable  part,  to  companies'  Jit- 
tery anticipation  of  another  price  freeze.  By 
auitlclpatlng  It.  they  made  It  necessary.'* 

Of  course,  the  Federal  Reserve  and 
the  Congress  are  participants  in  the 
process  of  economic  policymaking,  and 
we  are  not  blameless. 

The  Federal  Reserve  is  generally  con- 
sidered to  have  expanded  the  money 
supply  much  too  rapidly  in  1972 — an 
election  year — In  the  face  of  several  clear 
signals  to  the  contrary." 

Congress  has  consistently  cut  the 
President's  budget  proposals.  However, 
its  own  efforts  to  formulate  adequate 
procedures  for  taking  an  overall  stand 
on  budget  levels  and  priorities  are  just 
beginning  to  meet  the  test  of  adequacy. 
Conpress  should  also  be  doing  better  in 
formulating  action  on  overall  economic 
policy. 

TH»    LEADEESHIP    POSITION    OF    THE    PBESIDENCT 

However,  the  major  responsibility  for 
economic  policy  and  for  coping  with  in- 
flation belongs  to  the  executive  branch 
of  Government,  and  specifically  to  the 
Piesldent.  The  Treasury  and  the  Com- 
merce Department  and  the  Council  of 
Economic  Advisers,  among  others,  are 
staffed  with  full-time  experts  who  have, 
as  their  only  jobs,  analyzing  and  making 
recommendations  to  the  President  on  the 


economy.  The  Small  Business  Adminis- 
tration is  in  a  position  to  maintain  close 
contact  with  8^4  milUon  small  business 
firms  and  their  representatives.  The 
President  has  continuing  access  to  the 
Federal  Reserve  organization.  Beyond 
this,  the  President  is  free  to  draw  upon 
advice  of  our  private  financial  institu- 
tions, our  great  universities,  foundations, 
"think  tanks"  and  indeed  almost  any  ex- 
pert in  our  society. 

Added  to  these  manifold  resources  of 
the  Presidency,  Congress  in  March  1970, 
gave  President  Nixon  extraordinary  au- 
thority to  Impose  controls  on  wages  and 
prices  in  order  to  bring  inflation  under 
control.  President  Nixon  pointedly  de- 
clined to  exercise  this  authority  at  all, 
which,  as  it  turned  out.  made  their  ulti- 
mate imposition  necessary  on  August  15, 
1971. 

President  Nixon  has.  up  to  the  present, 
gone  through  several  game  plans  and 
four  phases.  In  my  opinion  they  add  up 
to  a  record  of  consistent  mismanagement 
of  the  American  economy.  Economist 
William  Fellner  described  a  recent  part 
of  this  performance  as  follows: 

Under  pressure  from  their  opponents  In 
1972.  government  policy  makers  ejtpanded  the 
economy  too  fast  and  only  belatedly  did 
they  shift  to  restraint." 

In  an  essay  published  in  i  September. 
Mr.  FeUner  said  further:       \ 

In  1972  the  economic  policies  that  de- 
termine subsequent  aggregate  demand  were 
much  to  expansionary,  and  a  number  of  spe- 
cial supply-limiting  factors  became  signifi- 
cant. If  the  basic'  demand-supply  dis- 
crepancy Is  allowed  to  continue,  then  price- 
control  measures  purporting  to  be  "antl-ln- 
flatlonary"  can  do  no  more  than  to  suppress 
symptoms:  and  to  do  even  this  effectively, 
such  measures  would  have  to  be  enforced 
ruthlessly  and  supplemented  by  a  system  of 
allocations  and  rationing  for  which  both 
public  opinion  and  the  administrative  ap- 
paratus are  wholly  unprepared." 

Perhaps  it  is  a  somewhat  hopeful  sign 
that  a  man  of  Mr.  Fellner's  independent 
views  was  nominated  for  the  Coimcil  of 
Economic  Adnsers. 

However,  it  is  a  mystery  to  me  how 
President  Nixon,  with  the  whole  Re- 
publican corporate  and  financial  estab- 
lishments to  choose  from,  would  not  for 
the  last  4  years  assemble  an  executive 
team  capable  of  doing  a  better  job  of 
managing  the  economy. 

It  is  not  difficult  to  see  what  needs  to 
be  done.  The  Federsd  Government  as  well 
as  State  and  local  governments  must  ad- 
dress the  fundamental  structural  prob- 
lems of  the  economy.  Thli^  a  task  for 
all  parts  of  the  U.S.  Government — the 
executive  and  legislative  branches  and 
also  independent  regulatory  agencies.  We 
are  in  a  new  era  of  worldwide  scarcity  of 
basic  commodities  which  calls  for  multi- 
national consultation  and  cooperation." 
We  need  to  maximize  efficient  produc- 
tion and  conservation  of  food  and  fiber; 
fuels  and  energy:  housing;  health  care; 
and  basic  public  facilities. 

To  do  this  we  need  the  very  best  talent 
in  both  the  Government  and  the  private 
sector  who«Tan  cooperate  to  guide  our 
economy  irf  the  direction  ->f  production 
and  equitable  distribution  o*'  the  goods 
that  the  world  has  to  offer. 

The  Nixon  administration  has  given  us 


a  surplus  of  iaflilMl  Itetoric,  rosy  state- 
ments, and  deierthined  but  often  wrong- 
headed  action.  The  Washington  Star- 
News  has  described  our  current  economic 
position  "an  Inflationary  debacle  that 
our  leaders  liave  been  partly  unable  and 
partly  unwilling  to  avoid.  .  .  ."  " 

Infiation  is  raging  in  our  country,  and 
many  of  our  small  businesses  and  ordi- 
nary citizens  are  in  trouble.  We  sorely 
need  leadership  of  a  wise,  constructive 
and  patient  nature,  and  solid  profes- 
sional competence  in  solving  the  Nation's 
economic  problems.  In  the  Nixon  admin- 
istration, those  commodities  are  In  short 
supply. 

rOOTNOTES 

'"Families  Losing  to  Inflation,"  Washing- 
ton Post,  Aug.  13,  19T3  page  DH  1  BasM 
upon  a  study  by  the  Tax  Foundation  Inc..  a 
family  of  four  earning  $; 0,000  m  ;966  earned 
raises  of  $3500,  but  currently  hat  J466  Ifcs^  m 
purchasing  power 

'  "Parrr^.  Pood  Prices  Drop  at  Wholesale," 
by  Peter  MUlus,  The  Washi-ngton  Post,  Oct.  5. 
1973,  p.  Al:  left  lead.  "Fuel  Leads  Wholesale 
Price  Rise"  by  James  L.  Rowe.  Jr  .  Washing- 
ton Post,  Dec.  7.  1973.  page  Al 

•  Economic  Indicators,  prepared  by  the 
CouncU  of  Economic  Advisors.  Oct.  19'ra. 
Prices,  p.  26.  The  consumer  price  index  for  all 
Items  rose  from  127.3  In  Dec.  1973  to  136.6  In 
Oct.  1973,  (1967-100)  for  an  Increase  of  73 
percent. 

<  A  recent  study  suggests  that  more  than 
half  of  our  citizens  have  a  net  worth  of  less 
than  W.OOO,  See  "4.4  Pet.  Form  Affluent  Kllte" 
by  William  Chapman.  The  Washington  Pott, 
Sept.  24,  1973.  p.  Al:a:  also  see  "'Middle 
Class'  Is  a  Myth"  by  William  Raspberry,  The 
Washington  Post,  Oct.  5,  1973.  p.  A29:4. 

'  Federal  Reserve  Statistical  Release  of 
Oct.  19  Indicates  that  for  Sept,  1973.  the  In- 
terest rate  for  loans  of  $10,000  to  $25,000 
payable  within  a  year  or  less  was  9.4%,  with 
the  "prime  rate"  for  smaU  businesses  at 
8,17%  compared  to  9.75?^  for  large  businesses 
Somewhat  less  than  10%  of  customers  aire 
believed  to  receive  the  "prime  rate."  See  also 
"Financing  Crises  Won't  Ease  UntU  Karly  In 
1974,"  Economic  News  Notes,  the  National 
Assn.  of  Home  Builders  Journal,  Oct.  1,  1073, 
p.  52. 

"See  "Hotislng,  Back  in  the  Cycle." 
Monthly  Economic  Letter.  First  National  City 
Bank.  September  1973.  p.  4. 

■  Between  1962  and  1967,  the  rate  of  de- 
preciation of  the  dollar  In  the  US,  was  ap- 
proximately 2.0  percent  per  year. 

» "Economic  Policy-makers  Prepare  to 
"Tough  It  out'  "  by  Hobart  Rowen.  the  Wash- 
ington Post,  Aug.  10.  1973.  p  Fl!  1. 

•Economic  iTidicators.  Oct.  1973.  loc.  clt.. 
p.  36.  Also  see  "High  Money  Market  Rates 
Spur  Increase  in  U-S.  Goverrmient  Interest 
Payments."  Comments  on  Credit.  Salomon 
Brothers.  Dec.  7.  1973,  p.  4. 

«•  "Questions  About  the  President's  Phase 
n  Tax  Bin."  Congressional  Record,  Nov.  8, 
1971.  vol.  117.  pt.  30.  p.  30759. 

"  See,  for  instance,  "President  Repeats  Tax 
"Vow"  by  Peter  Mlllus.  The  Washington  Post, 
Oct.  8,  1972.  In  which  he  repwrted  the  Presi- 
dent's Oct.  7  three-network  radio  speech 
which  dealt  w'.th  taxes  to  considerable  de- 
tail, and  stated  his  goal  as  "no  tax  Increase 
In  the  next  four  years,"  p.  Al.  The  President 
also  told  Garnett  Horner  of  The  Washington 
Star-News    (See  Nov,  9.   1972  edit.)  : 

"You  must  start  with  an  honest  awareness 
of  the  ,  .  .  problems  .  ,  .  (But)  let  uie  be- 
gin with  some  of  the  restraints  we  have. 
First,  there  will  be  no  solutions  of  problems 
that  require  a  tax  mcrease  ,  .  ," 

See  "Can  Nixon  Avoid  a  Tax  Hike?"  by 
Hobart  Rowen.  T^e  Washington  Post,  Nov. 
12,  1972,  p.  El:l.  About  this  Ume.  the  White 
House  Press  Secretary,  Ronald  L.  Zlegler.  was 
quoted  as  saying:  The  Nixon  Administration 


cxrx- 


-2669— Part  33 


42376 


"ooctemplatM  and  pUoa  no  tax  '- — rnoi  in 
ttt*  Moond  term  ...  we  don't  contempUto 
oontwaplAtlng  (a)  tax  IncwMe."  "NUon 
PJMUilng  No  Tax  Boort  for  2nd  Term."  The 
WatftinfftOH  Star-Neica.  Sept  7.  1973  "Shulta 
Call*  Tax  Blse  UnUkely  for  Phaae  IV  "  The 
Washitiffton  Post.  July  14.  1973.  p  A3 

"•■Federal  Reaerre  Chief  Warna  erf  Higher 
Prlcee."  by  Hobart  Rowen.  The  WashtTujton 
Post.  Sept.  9,  1973,  p.  A2: 7. 

"*  See  "Commodltlee.  Cash  Prlcee."  Ttie  WaU 
Street  Journal.  Oct.  9.  1973.  p.  40.  Number  2 
ordinary  hard  Kanaa*  City  wheat  waa  quoted 
at  M82'-j   per  bushel. 

"  Prealdent  Nixon's  Jan.  27,  1969.  statement 
waa  as  follows;  "I  do  not  go  along  with  the 
■uggestlon  that  Inflation  can  be  controUed 
by  exhorting  ...  the  leaders  of  management 
and  labor  to  foUow  certain  guidelines 
(These  leaders)  much  aa  they  might  want  to 
do  what  Is  In  the  best  interesta  of  the  Na- 
Uon.  have  to  be  guided  by  the  mtereeta  of 
the  organ izatlona  they  represent." 

"■'The  Economy :  What  Went  Wrong"  edl- 
tonal.   Tfie  Washinffton  Post.  July  28,  1973, 
p.  A  14:1. 
"UHd. 

"See.  for  Inatance,  Commenta  on.  Credit 
Salomon  Broe..  July  :i  and  Oct.  13.  1972 

''  'Nl.xon  Nominee  Blames  OoTemment  for 
In^tlon,"    T-he    Wtuhir^gton   Post.   Sept.   28. 

"/t  New  Look  at  Inflation.  Cagan    Estey 
Iner,  Haberler  and  McLure.  American  En- 
irlse  Institute,  Sept.  1973. 
''A  Producers  World."  Joseph  Kraft    77i« 
Waahtn^on   Poaf.    Sept.    16.    1973     p     C7  1 
-Controlling  Runaway  Inflation  Worldwide  '• 
by    Hobart    Rovren.    The    Washington    Post 
June  14.  1973.  p.  A31:5. 

°  "Inflationary  Shock"  editorial.  The  Waah- 
tngton  Star.Nev;s.  Sept.  10.  1973,  p.  A12:l. 


CONGRESSIONAL  RECORD-SENATE  December  19,   vj7S 

m    In        „-. . -  ♦ 


prlM  increaaes  3  percent— but  that  la  not 
«e«t  «jough.  For  that  3  percent  meana  that 
from  time  to  time,  the  rate  of  annual  t\ai, 
must  swell  to  4  and  5  peroent  and  eyen  if  it 
were  to  hold.  It  would  be  3  percent  a  year 
compounded.  It  would  be  3  peroent  year  liter 
year  on  top  of  a  price  level  Incieaaed  by  3 
percent  year  after  year. 

in^  ^  ^:*J"  '  "^*"  concept  of  what  price 

to  a  list  of  goods  and  services  famuiar  in  your 
everyday  life  by  1985,  a  mei*  12  years  tr^ 
now?  Here  U  what  It  would  mean 


"^■'^*^"°* 3p.rc«-,t    5  percent 

Sirtoin  jfe.k.  Jl  JO  lb «  57  „  „ 

Bun»f.  85cib...         ♦?  1;  mi 

V,li,.32c(jt             '■?J  '53 

O'Jnjtn.  $1.05  dial: tJS  ,  |Z 

CoffM.1l.00  lb  .  -JS  S 

PDttto«s.ti.35/ioib.:;::": ^  '?? 

Hamburger.  95e  lb \V^  f "  *f 

Ico  crejm.  45e  ql — ," '  i!  '' 

Bw.  $1.25  a,  pKl, ::;  ,"  -81 

Vitamin,.  J3.75..:.::  If.  JS 

Hair  cut.  CM : i-g  S.73 

Ne«  ca^  $3,500 a  w  S     t  »^S 

Sub**,  far».  N.Y,  35e.      S  •?, 

Ga^.  40enllon.              "  •« 

Movie  aclmiss..  $2  50    -Cii  .  \i 

Hcspital  room.  $100  (1«»                i  .5  «  ;i^?S 


— TIarly. 


ExHiBrr  1 

What  3  Pxhcdtt  Itm^non  Mkans 

(By  Sylvia  Porter) 

If  the  price  of  food  you  eat  at  home  con- 

tinned  to  rlae  at  the  14,5  percent  rate  of  the 

past  12  months,  the  food  market  basket  you 

buy  for  «100  today  would  cost  you  $268  bv 

1980.    »508    by    1985    an    Incre^jble   «&99    by 

If  the  price  of  meat  alone  continued  to  soar 
at  Its  current  24  7  percent  annual  rate  your 
meat  bUl  would  spiral  from  today's  $100  to 
nearly  $470  in  Just  seven  years! 

If  the  rate  of  rlae  in  prices  of  frulta  and 
▼jejtables  persisted,  your  $100  fruit  and  veg- 
•tible  bill  would  be  up  to  $295  by  1980  Slm- 
Usj^y.  your  $100  home  fuel  oU  biU  would  be 
$182.  And  the  used  car  you  could  buy  todav 
for  $1,000  would  coet  $1,900.  ^^ 

We  could  not  expect  our  wages,  salaries 
and  other  forma  of  income  to  climb  at  an- 
nual rates  matching— much  less  exceeding— 
these  annual  Increases.  Even  if  this  were  pos- 
sible, the  leapfrog  of  prices  over  wages  aiTd 
wages  over  prices  and  over-and-over  would 
lead  only  to  utter  destruction. 

There  would  be  no  way  for  older  people 
forced  to  live  on  flxed  incomes  to  survive  at 
au.  Inflation  would  wipe  them  out  even  more 
suwly  than  a  worldwide  pestilence.  Cash  sav- 
mgs  would  become  worthless  in  a  short  time 
security  and  dignity  for  the  Lndlvldual  would 
become  unattainable 

We  simply  cannot  afford  to  risk  It 

We  must  And  ways  to  bring  the  worldwide 
inflations  of  the  1970s  mWer  control  lust  as 
an  earlier  generation  fofend  ways  to  bring 
the  worldwide  depreesloM  of  the  1930s  under 
oori  trol  ' 

.yl^  «»°onilc-flnan'?Ial-polltlcal  leaders  of 
-he  world  are  Uckllng  the  problem  of  mone- 
tary reform  together  and  they  wiU  rebuUd 
L  ,T,^J'  "  monetary  system.  Inflation  U  a 
Tnl  .»  .  Pbenomenon.  a  worldwide  threat 
^o  li^  '°'"'°f"'^  '  worldwide  approach! 
Who  will  seize  the  role  of  Initiator'' 

In  the  United  States,  the  NUon  adminis- 
tration has  now  made  our  target  for  yearly 


ExHiBTr  2 

P.^TCHXCK   VAl.t7XS   DECUWX 

(By  SylvU  Porter) 
.  Ji  1°^  earned  a  salary  of  $10,000  in  1968 
m1)L  ^n^-xl"^"  received  raises  adding  up  to 
W,500,  or  35  percent,  since  then,  how  much 
of  your  extra  pay  do  you  have  left  in  terms 
of  buying  power? 

™t  f  ""h"*  ^"^  ^'^^-  ^"^  °«*  purchasing 
P^r  U  down.  Your  $13,600  Is  worth  $468 
less  to  the  open  market  than  your  $10  000 
was  worth  in  buving  power  seven  years  ago 

If  you  are  the  sole  breadwinner  In  a  fam-  f 
lly  of  four  and  you  have  been  able  to  hike  -- 
your  salary   from  $20,000   to  $27,000   In  the 

™*'J;v.'!"°  ^**"'  ^****'"  yo^  ««tra  $7,000 
worth  to  you? 

•^^K*"*^"**^^  ^°^^  app^utJnt  gain  of 
$7,000  has  been  more  than  wiped  out  by  the 
increased  taxes  you  pay  and  the  loss  Is  your 
after-Ux  Income  due  to  inflation  Tour  hlish- 
er  pay  Is  actually  worth  $889  less  in  the  i^- 
ketplace  than  your  smaUer  pay  in  1968 
And  what  about  you.  the  man  with  a  wife 

000  In  1966  and  earns  $67,600  today— equal 
to  pay  increases  of  35  percent  Whathave 
taxes  on  your  Increased  income  and  infla- 
tion done  to  your  addlUonal  $17,600  In  this 
short  span?  ^^ 

They  have  translated  your  $17,600  of  raises 
into  a  net  loss  in  purchasing  power  of  a 
whopping  $3J86! 

This  Is  the  dreadful  story  of  Inflation  In 
our  era  and  it  is  a  tale  against  which  all 
others  place  Into  slgnlflcance.  The  OaUup 
Poll  is  touching  the  most  sensitive  spot  on 
the  US  body  politic— the  pocketbook  nerve 
when  It  reports  that  by  an  overwhelming 
percentage,  you  consider  "inflation"  our  No 
I  problem  today. 


If  you've  been  luck-/  enough  to  win  cumu- 
lative raises  of  i6  percent  in  onlv  seven 
years,  you  are  behind  ,\nd  t.hat  suggests  that 
ail  of  ue  are  behind  Respite  our  seeming 
prosperity  and  despite  oxxi  supposedly  st.phls- 
tlcated  economic  leadership 

Thla  la  the  ftmdame:,ta;  nif(is.^e  •  -heaa 
Mtlmates  put  together  for  me  bv  tr.e  lAi 
Foundation    m    New    York    City 

The  Watergate  scandal  and  the  ♦«.tlug  o«f 
the  historic  doctrine  of  the  «eparatl,.n  of 
powers—no  one  denies;  the  imp-rtance  of 
these  events.  The  emergence  of  an  era  of 
peaceful  co-existence,  the  new  giob^  p.  wer 
Woes,  the  creation  of  a  modern  moneuu-y 
system,  the  downgrading  of  the  U.S.  dollars 
role— all  of  these  are  developments  of  monu- 
mental slgnlflcance. 

But  "hiflatlon"  is  your  everyday  lUe  It  la 
food  on  your  table,  a  roof  over  your  head   a 

TuTf^"^"'"^  ''°^  ^'^  ^  ">•  ^"»"-  i-' 

And  inflation  Is  the  enemy  we  must  now 

tackle  on   a   worldwide   basis,   for   this   is  a 

Worldwide  enemy.  All  of  us  are  Infecting  each 

^'f,,'^^  H'^  '*'^*»*'  "Parting  it  and  Im- 
porting  It.  How  rar  down  must  we  dig  for 
the  OBusea  in  International  trade  lealoualea 
quotaa  and  waUs?  In  currency  relatlonahm. 
and  money  flows?  In  sovereignty?  Must  we 

us?  Must  we  strive  for  new  heights  of  co- 
operation? I  ask  '.he  questions,  certain  t^ 
in  them  we  wUl  find  some  of  the  answers 

The  accompanying  table  shows  the  awful 
aguree.  The  Tax  Foundation  aaaumes  a  fam- 
Uy  of  four  with  one  member  working    It  es- 

Soclflj  Security  axes  based  on  official  sutls- 
ttcs^  It  assumes  cumulative  ralsee  of  3S  per- 
cent  and  a  cumulating  rate  of  Inflation  of 
36.6  percent  for  1966-73 

And.  of  course,  if  you  haven't  received  pay 
ncreases  equal    to   35   percent^whlch   mn- 

n^'^A^Tft^^  ^"^"^  not^you-re  even  worse 
off.  And  U  you  ^ave  been  Uvlng  on  a  flxed 
income  In  this  period,  your  position  Is  be- 
coming  or  already  is  desperate 


Ssbry  1966-73 


IncrcSMd 
taies 


Ion 

from 

inflation 


»5,000  to  $6.750. .  S2M 

JIO,000  to  $13,500  9S0 

JI5.000  to  $20.250...;:.::;:  ij^j 

CO.OOO  to  $27.000 213? 

gOJOO  to  »«.500 JoM 

150.000  to  $67,500 itn 


11.602 
3  016 
4.416 
5.757 
«.  144 

12.116 


Buyinf 
lou 


$140 
4«£ 
S«7 
189 

1.644 
3.286 


ExHiBrr  3 

RXASONS  ro«  »M  8-Pebcxnt  Iktlation 

(By  Sylvia  Porter) 

The  upsurge  in  our  coet  of  living  in  1973 

rin^S'"»H'"'?*''"^   *"    oppressive    8   percent. 

Nlxnn  »t  tK  ^^^"^    projected    by    P,«ident 

Nixon  at  the  start  of  the  year. 

The  great  business  boom  of  1973  is  to  «> 
down  in  the  record  books  as  the  most  queaiy 
and  despondent  of  modern  times. 
What  went  wrong?  Why? 

r^'r^a"  "by:'  ''"'"^'-  "  '^"*  "*"'>  »>«'« 

Hon«.7»'?IL*^*  '*''^  beginning,  the  White 
5  7«-rof**'*^  ^  ^^'P  *^«  awesome  power 
of  I973's  worldwide  economic  boom  super- 
imposed  on  our  own  boom— and  the  sub- 
sequent explosive  deSfends  for  our  food- 
stuffs, goods  and  services. 

We  have  been  in  a  global  boom  without 
precedent.  All  over  the  world,  people  have 
been  eating  more  and  better  food.  Hundred* 
of  millions  of  customers  have  been  clamor- 
ing for  our  production  everywhere 

Nixon  encouraged  thu  boom  and  perhaps 
he  has  fully  apprecUted  It  But  by  no 
stretch  of  the  Imagination  have  the  eco- 
nomic policies  he  has  proposed  for  the  VS. 
matched  the  challenge. 

(2)  The  administration  shockingly  under- 
estimated the  impact  of  Its  foreign  sales  of 
foodstuffs— particularly  of  wheat  to  the  So- 
viet Union— on  food  prices  here.  As  a  result. 
Nixon  did  not  simultaneously  flght  for  an 
early  overhaul  of  our  agricultural  policies  to 
bolster  our  production  of  foodstuffs 

Not  until  August  10  did  the  President  sign 
into  Uw  a  .new  farm  program  designed  to 
stimulate  full  production.  The  White  House's 
failure    to   concentrate   on    Immediately    In- 


Decemher  19,  197S 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42377 


creasing  food  supplies   i  Inherent  In  Shultz'e 
overconfident   forerast  \    was  a   crucial  error. 

(3)  Bad  weather,  droughts  and  crop  fall- 
urea.  Interfered  with  food  production  all  over 
the  world.  Throvighout  the  year — and  long 
before  the  Arab  oil  embargo-  shortages  of 
fuel  and  transportation  faciuiies  also  ad- 
versely affected  farm  and  food  prices  as  well 
as  many  other  vital  prices  across  '^.he  board 

(4)  The  Buco<»8.i!ve  devaluations  of  the  dol- 
lar to  tile  point  where  oiir  dollar  has  be- 
come among  the  m  «t  ui.Llervalued  currencies 
in  the  wcn'ld  has  vastly  btlmulated  our  ex- 
ports, a  trend  devoutly  !«  be  wished.  But 
the  Ironic  fact  Ls  that  Increase*  In  agricul- 
tural prcKlucts  have  led  the  list 

I'hf  dollar  devaliiatlfins  niay  have  been 
ei6»pntl,ii  shock  medicine  to  the  world,  but 
t,hey  Jxave  8f,Ar<--ely  helpr-d  the  U.S    consumer. 

(5)  Despite  ea.-ne6t  H.;.d  well  publicized 
goals  of  llmltUii^  in:i.<itlunary  sr^ending,  the 
White  House  and  Cv,;.Kress  have  contmued 
to  follow  pro-lnflatlc  :.a.-:.  f.   al  jxiUcles. 

There  has  been  u^  aiiii-inflatlonary  tax 
rate  hike,  no  antl-lnflatlonary  Ud  on  govern- 
ment spending  no  curbs  on  excessive  Instal- 
ment buyln*'    \e^:  8  not  Kid  ourselves  on  this. 

(0)  Only  the  Pederal  ResM-ve  has  been 
fighting  the  splr^ii  with  a  tight  monetary 
policy,  and  that  p^-'licy  was  not  adopted  until 
spring  of  1973 — when  Inflation  already  was 
at  a  galloplne  pace. 

What's  more  historically  high  Interest 
rates  have  added  to  the  cost  of  living  and  do- 
ing business. 

(7)  Finally,  when  signs  began  to  appear 
that  the  worst  might  be  behind  us,  the  energy 
crisis  broke  wide  oipen.  Prices  of  all  typec  of 
fuels  have  been  skyrocketing  and  will  go 
higher.  Once  again,  the  White  House  was 
caught  utterly  unprepared.  When  asked  what 
energy  cutbacks  would  mean,  for  Instance, 
the  Prealdentis  chief  economic  adviser,  Her- 
bert Stetn,  replied:  "I'm  ashamed  to  aay  I 
can't  answer  the  question."  And  now  we 
face  another  upward  spiral  In  living  costs 
In  1974  In  the  midst  of  what  will  be  at  best, 
a  major  business  slowdown. 

An  objective  study  of  these  seven  explana- 
tions must  lead  you  to  conclude  that  on 
fighting  Inflation — the  No.  1  economic  prob- 
lem to  the  American  public — this  adminis- 
tration has  been  a  disaster 


INFLATION   AND   THE    ECONOMIC 
OUTLOOK 

Mr.  PRO^CMIRE  Mr.  President,  this 
country  has  suffered  one  of  the  worst 
periods  of  inflation  in  Its  history  during 
1973.  Consumer  p^flces  have  risen  8  per- 
cent during  the  Isfst  12  months— October 
1972  to  October/1973,  the  highest  since 
the  Korean  wai/ inflation  of  1951.  In  the 
early  part  of  thp  year,  the  price  Increases 
were  concentrai«l  in  the  food  area,  and 
by  October,  the  price  of  food  at  home 
was  more  than  20  percent  above  a  year 
ago.  What  Is  dl-sturblng  to  me,  however, 
Is  that  as  food  price  increa.'^es  have  be- 
gun to  slow  down,  the  prlce.'^  of  Indus- 
trial commodities  have  surged.  In  No- 
vember alone,  the  price  of  mdu.'=tr}al 
commodities  as  measured  by  the  Whole- 
sale Price  Index  went  up  3,2  percent.  In 
the  last  3  months  these  commodities 
have  gone  up  at  a  compound  annual  rate 
of  21  percent  While  a  significant  part  of 
this  increase  can  be  attributed  to  petro- 
leum and  related  Increases,  the  prices  of 
other  manufacturing  commodities  have 
Jumped  sharply  In  the  past  year,  and 
esr>ecially  in  the  last  month.  Among  basic 
materials  cotton,  wool,  manmade  fibers, 
paint,    agricultural   chemicals,    lumber. 

43 


paper,  and  metals  have  shown  the  sharp- 
est rises  This  list  demonstrates  how 
pen-asive  the  Infiatlon  ha-^  become.  In 
many  cases  these  basic  comniodlty  price 
Increases  will  be  translated  mto  higher 
consumer  prices  within  2  ^  r  3  month.^;. 

Even  though  wages  continued  \c  nse 
in  1973.  the  rise  in  consumer  prices  was 
more  than  enough  to  offset  the.^e  wage 
gains,  and  the  average  worker  wa5  worse 
off  at  the  end  of  1973  than  he  wa,<:  a  year 
ago.  Rea]  earnings  in  October — that  is, 
earnings  adjusted  f-.r  infiatlon— were  2 
percent  below  October  1972  The  effect 
on  the  poor  of  the  1973  inflation  was 
even  greater.  In  the  average  family's 
budget,  about  20  percent  goes  for  food. 
In  a  low-income  family  a.^  much  as  40  or 
50  percent  of  the  budget  is  used  to  pur- 
chase food.  This  means  that  if  the  poor 
family  spend?  40  percent  of  Its  disposable 
Income  on  fcKxi.  and  food  prices  have 
gone  up  more  than  20  percent,  then  this 
family's  real  Income  has  been  cut  by  10 
percent.  Energy,  especially  for  home 
heating,  constitutes  a  larger  proportion 
of  the  low-income  family's  budget  than 
other  Income  groups.  Recent  price  in- 
creases for  ga.'^oline  and  oil  may  cut  the 
poor  family's  real  income  by  another  2  or 
3  percent.  When  more  detailed  statistics 
become  available,  they  will  likely  show 
that  the  1973  Inflation  was  a  regressive 
one.  and  that  the  distribution  of  Income 
shifted,  leaving  the  poor  and  those  of 
modest  income  with  a  smaller  share  of 
total  Income. 

AND    RECESSION    TOO 

Unfortunately,  the  prospects  for  an 
abatement  of  inflationary  pressures  in 
1974  are  not  good.  Most  economic  fore- 
casters are  predicting  ver%-  little  or  no 
economic  growth  in  1974,  w-ith  declines 
in  real  output  during  the  first  half  of 
the  year  and  a  gradual  recovery-  In  the 
second  half.  Walter  Heller.  "  former 
Chairman  of  the  Council  of  Economic 
Advisers  under  the  Kennedy  and  John- 
son administrations,  told  the  Joint  Eco- 
nomic Committee  last  week: 

The  first  half  of  1974  will  look  like— and 
perhaps  by  traditional  standards  will  be — a 
recession.  We  can  expect  a  drop  in  real  QKT> 
at  an  annual  rate  of  about  1^  percent  in 
the  first  quarter  and  1  percent  ha  the  second, 
followed  by  a  moderate  rise  In  the  third 
quarter  and  a  more  rapid  recovery  in  the 
fourth. 

These  negative  growth  rates  will  be 
accompanied  by  continued  sharp  in- 
creases in  price  according  to  most  fore- 
casts. Data  Resources.  Inc..  a  highly 
respected  economic  model,  predicts  an 
Increase  of  more  than  7  percent  in  the 
Consumer  Price  Index  in  1974.  Walter 
Heller  suggested  to  the  Joint  Economic 
Committee  that  consumer  prices  will  rise 
between  7  and  8  percent  in  the  first  half 
of  the  year,  slowing  down  to  a  6  percent 
Increase  In  the  last  6  months  of  1974. 
The  ONP  deflator,  the  most  comprehen- 
sive measure  of  price  Increases  through- 
out the  economy,  will  rise  by  anywhere 
from  5>2  to  7»'2  percent  according  to  the 
private  forecasts.  Many  of  these  forecasts 
were  made  before  the  administration  be- 
gan to  consider  actively  the  possibility 
of  letting  gasoline  prices  rise  sharply  to 


limit  demand,  Dr  Herbert  Slehn.  Chair- 
man of  the  President  s  Councii  of  Eco- 
noml,:  Advisers,  told  the  Joir.t  Economic 
Committee  last  week  thai  u  energy  ;:.rices 
'.vere  allowed  to  rise  to  a  level  where 
supply  wo'dld  equal  demand,  that  con- 
sumer prices  wooid  rise  by  3  per- 
centage pomts  more  than  they  would 
have  otherwise. 

WHAT  TO  DO  ABOUT  n 

The  course  of  the  economy  in  the  com- 
ing year  will  be  an  uncertam  one,  Infla- 
tion coupled  with  tlie  threat  of  recession 
necessitatas  a  carefully  oalanced  policy. 
It  would  be  a  erave  error  for  the  admin- 
istratlcoi  or  Congress  to  consider  aban- 
donment of  wage  and  price  controls  at 
this  point.  As  I  have  Indicated,  inflation- 
ary pressures  will  continue  very  strong 
in  the  coming  year,  and  this  is  especially 
true  for  fuel  prices.  Retaining  controls, 
at  the  very  least  through  the  first  quar- 
ter of  1974,  should  have  a  significant 
impact  on  the  rate  of  inflation.  Witnesses 
who  appeared  before  the  Joint  Economic 
Committee  In  October  suggested  that 
continuation  of  controls  into  1974  coijld 
lower  the  Inflation  rate  by  1  to  2  percent. 
With  respect  to  energy  sources,  in  partic- 
ular, removal  of  controls  would  do  noth- 
ing to  increase  supplies  In  the  short  run 
but  would  provide  windfall  profits  to  oil 
companies  whose  earnings  have  already 
jumped  dramatically  in  the  second  and 
third  quarters  of  1973.  Even  after  wage 
and  price  controls  are  removed,  this 
coimtry  will  need  some  form  of  Incomes 
policy  on  a  permanent  basis,  A  continua- 
tion of  controls  into  next  year  \^-ill  pro- 
vide the  time  necessary  to  either  decon- 
trol industries  selectively  or  to  develop 
a  workable  voluntary  incomes  policy. 

Wage  and  price  controls  will  also  take 
some  of  the  burden  of  flghtlng  inflation 
from  monetary  and  fiscal  policy.  The 
passlbllity  of  recession  is  great  enough 
that  we  cannot  afford  restrictive  mone- 
tary policy.  As  Walter  Heller  told  our 
committee:  r'^ 

The  extra  price  Jolt  from  the  oi:  shortage 
In  1974  should  not  be  take:,  as  a  slrr.a! — any 
more  than  the  25  percent  Jump  !•.  food  prices 
In  1973 — for  monetary  tUthtenlng  These 
shortages,  to  use  the  words  of  Arthur  Bums 
In  his  recent  defen.se  of  morjetary  policy, 
"hardly  represe;.t  either  the  basic  trend  In 
prices  or  the  response  of  prl-es  tc  prevlotis 
monetary  or  fiscal  policies."  To  attempt  to 
hammer  down  price  increases  in  fc^xi  and 
inelastic  demands — by  restrictive  nnonetary 
policy  would  wreak  havoc  on  the  rest  of  ths 
economy. 

Fiscal  policy  likewise  cannot  be  a^  re- 
strictive as  the  administration  had  in- 
tended In  the  light  of  forecasts  that  the 
unemployment  rate  will  rise  to  6  per- 
cent in  1974.  We  should  consider  a  va- 
riety of  progrsuns,  including  public  serv- 
ice employment  and  extended  unemploy- 
ment benefits,  as  countercycUcal  meas- 
ures to  lessen  the  impact  of  possible  neg- 
ative growth  rates  in  earlj-  1974. 

Mr.  President,  this  adininistration  has 
bungled  economic  policy  for  the  last  5 
years.  But  using  monetar>-  and  fiscal  pol- 
icies alone  imder  current  economic  con- 
ditions to  fight  Inflation  would  msJce 
their  previous  mistakes  seem  minor  in 
comparison. 


42378 


CONGRESSIONAL  RtCORD  — SENATF 


AMERICAN  WORKERS -ARE  LOSERS 
UNDER   NIXON    ECONOMIC   GAME 

PLAN 

Mr.  HUMPHREY.  Mr  President,  the 
economists  now  confirm  what  every 
American  worker  has  known  for  months, 
that  the  buying  power  of  his  paycheck  Is 
less  this  year  than  It  was  last  year. 

The  Joint  Economic  Committee  will 
soon  release  a  study  which  clearly  shows 
this  to  be  the  case.  Their  analysis  con- 
cAides— «  « 

The  besvmeastire  of  reaJ  per  household  in- 
come or  per  family  income  shewed  a  decline 
to  a  negative  1.4  percent  during  1973.  [And],/ 
In  conjunction  with  the  negative  rates  of* 
change  we  found  among  other  measures  of 
purchasing  power,  explains  accurately  why 
consumers  do  not  believe  they  are  better  off 
economically  in  1973.  They  are  in  fact  not 
better  off. 

More  specificaLy.  the  JEC  ana'ysis 
shows  that  there  has  been  a  net  fall  in 
real  adjusted  hourly  earnings  of  about 
4  percent  from  1972  to  1973.  This  clearly 
hidicates  that  wage  rates  not  only  have 
not  kept  pace  with  Inflation.  Out  also 
have  undergone  a  significant  setback  in 
terms  of  purchasing  power.  Even  when 
fringe  benefits  and  overtime  are  added 
into  the  calculation,  the  American  work- 
V,er  is  currently  unabie  to  keep  up  with 
inflation.  Not  surprisingly,  real  weekly 
earnings  have  declined  bv  about  4  per- 
cent from  1972  to  1973.  paralleling  the 
decline  in  real  hourly  earnings. 

Perhaps  the  American  worker  was 
aware  long  before  the  economists  that 
he  was  lasing  economic  ground,  because 
his  main  Income  measure  is  take-hoAe 
pay.  The  economists  call  it  "real  spend- 
able weekly  earnings"  and  these  figiires, 
more  than  any  others,  show  Just  how  bad 
a  beating  our  workers  have  been  taking. 
The  data  show  that,  during  the  last  21 
months,  the  average  rAmerican  worker 
has  experienced  a  net  decline  in  the  buy- 
ing power  of  his  take-home  pay  of  6.7 
percent. 

Additional  figures  simply  reinforce  the 
conclusion  that  regardless  of  how  you 
look  at  it.  the  American  worker  has  suf- 
fered this  year  both  as  a  wage  earner 
and  as  a  consumer. 

And.  unfortunately,  the  worst  may  be 
yet  to  come.  According  to  .manv  experts. 
Infiation  next  year  will  be  even  worse 
than  in  1973.  A  rate  ct  infiation  of  over 
7  percent  is  expected  during  the  first 
half  of  1974.  Une-nploymein  is  also  ex- 
pected to  be  sienificantly  hieher.  perhaps 
around  7  percent  during  parts  of  the 
year. 

Economic  growth  and  Income  growth 
are  expected  to  be  ver.-  modest  next  year. 
if  there  is  finy  growth  at  all.  In  fact,  it 
Is  possible  that  we  will  actuplly  experi- 
ence a  real  decline  in  ONP  during  the 
first  tr.o  quarters  of  1974. 

If  these  projections  are  correct,  the 
American  worker  will  most  likr^lv  see  his 
real  buying  power  be  reduced  even  fur- 
ther in  1974. 

The  economic  policy  of  the  Nixon  ad- 
ministration has  proven  to  be  disastrous 
for  the  American  worker  and  his  family. 
While  'Nixonomics"  have  been  ver>'  ef- 
fective in  holding  down  wages,  they  have 


December  19,  1973 


been  a  total  failure  in  every  other  re- 
spect. 

Prices  on  nearly  everything  we  buy 
have  gone  up  at  record  rates— food  costs 
rose  19  percent  in  the  last  year,  fuel  oU 
and  coal  prices  are  up  about  20  percent 
over  last  year  and  rising,  and  homing 
costs  went  up  by  6  percent  In  1973. 
,  Interest  rates  have  soared  to  new 
heights  with  the  prime  Interest  rate  now 
at  10  percent  in  many  banks  and  home 
loans  carrying  a  stiff  interest  charge  of  9 
percent  or  more  in  some  parts  of  the 
country. 

At  the  same  time.  Industry  has  reaped 
a  profits  bonanza  at  the  expense  of  the 
American  worker. 

Nevertheless,  despite  all  of  the  evi- 
dence, the  administration's  economic  ex- 
perts have  testified  before  the  Consumer 
Economics  Subcommittee,  which  I  chair, 
and  elsewhere,  that  the  average  Ameri- 
can family  never  had  it  so  good.  It  Is  no 
wonder  that  "NLxonomlcs"  have  failed  to 
respond  to  the  economic  needs  of  our 
people.  They  do  not  even  recognize  the 
problem. 

Mr.  President.  I  Intend  to  continue  my 
effort  to  bring  home  to  the  admiriistra- 
tion  the  serious  economic  condition  of 
the  American  worker  and  his  family. 
Hopefully',  we  will  have  more  success  in 
making  them  see  what  the  facts  are  than 
we  have  had  in  the  past.  I  urge  all  of  my 
colleagues  to  join  me  in  this  effort 


THE  ECONOMY 

Mr.  KENNEDY.  Mr.  President,  I 
welcome  the  opportunity  to  join  other 
distinguished  Senators  this  morning  as 
we  register  our  common  deep  concern 
over  the  downward  plunge  of  the  Amer- 
ican economy  In  recent  weeks  and  the 
poUyanna  posture  of  the  administration 
as  we  seek  to  cope  with  the  very  real 
difHcultles  the  Nation  must  overcome  if 
we  are  to  bring  the  economy  back  to 
health  in  1974. 

The  energy  crisis  has  made  all  our 
economic  problems  worse.  But  long 
before  the  embargo  by  the  Arab  States 
America  was  running  out  of  oil.  yet  the 
White  House  refused  to  listen.  Now  the 
crisis  Is  full  upon  us.  and  still  the  policies 
are  out  of  date. 

We  in  Congress  have  a  tragic  sense  of 
having  seen  it  all  before.  The  same 
dismal  record  of  incompetence  and  in- 
action we  see  on  energy  has  been 
duplicated  on  virtually  everv  other 
economic  Issue,  and  the  citizens  of  all 
our  States  have  had  to  suffer. 

The  problems  we  face  today  are  the 
culmination  of  years  of  economic  neglect 
Think  what  we've  gone  through  in  the 
recent  past— the  highest  unemployment 
m  a  decade,  the  worst  inflation  since  the 
Korean  war.  the  highest  interest  rates 
since  the  Civil  War.  the  worst  trade  defi- 
cits, and  the  fastest,  steepest  plunge  of 
the  Dow-Jones  average  in  our  historv  a 
r-onstant  international  money  crisis,  a 
hat  trick  of  three  succes^sive  devaluations 
of  th?  doUar,  a  recession  in  1970.  and  a 
severe  new  recession,  or  even  a  depres- 
sion, on  the  horizon  for  1974  if  we  do 
not  mend  our  ways  today. 
It   has    not   always    been    that   way. 


Think  back  to  the  early  1960s,  when  the 
economy  began  to  move  again.  In  those 
days,  we  had  an  administration  that 
understood  the  modem  American  eccm- 
omy  and  could  keep  it  on  an  even  keel. 
The  Nation  had  Its  problems  in  the  early 
1960's,  but  inflation  and  rising  unem- 
ployment were  not  among  them.  Thanks 
to  the  policies  of  the  early  1960s.  Amer- 
ica enjoyed  the  longest  period  of  sus- 
tained economic  growth,  prosperity,  and 
price  stability  in  our  history.  We  could 
do  the  same  today.  If  only  we  had  the 
vision,  will,  and  leadership  in  the  admin- 
istration to  gTilde  the  NaUon  forward. 
Amid  the  wreckage  of  current  policy, 
there  are  two  extremely  important 
areas — one  long  run  and  the  other  short 
run — that  require  Immediate  and 
thoughtful  action  now,  if  we  are  to  avoid 
future  serious  and  harmful  consequences 
to  the  economy. 

First,  in  the  short  run,  we  have  to 
move  promptly  into  an  effective  program 
for  allocating  scarce  supplies  of  oil  and 
for  rationing  gasoline,  and  to  put  a  firm 
celling  on  the  exorbitant  price  increases 
that  are  already  taking  place  for  gaso- 
line and  other  petroleum  products. 

There  are  some  in  the  administration 
who  favor  the  relaxation  of  all  controls 
on  oU  as  the  way  to  meet  the  current 
crisis.  Let  the  oil  companies  chsu-ge  what 
the  traflQc  will  bear.  No  rationing.  No  tax 
Increase.  Let  the  free  market  ration  the 
fuel.  Let  the  price  of  gasoline  rise  by  50 
cents  a  gallon,  they  say. 

What  these  experts  are  really  talking 
about,  however,  is  an  approach  that 
could  well  become  the  biggest  redistri- 
bution in  reverse,  a  massive  welfare  plan 
for  the  Nation's  richest  companies,  a 
program  that  means  excess  profits  for 
the  rich  and  excess  poverty  for  the  poor. 
Tliose  who  advocate  this  action  want 
nothing  more  nor  less  than  to  take  $50 
billion  out  of  the  pockets  of  the  ordinary- 
working  man  and  woman  in  this  coun- 
try- and  transfer  it  ..-directly  into  the 
pockets  and  profits  of  the  oil  producers. 
That  wor'rrs  out  to  the  forced  extraction 
of  something  Uke  $20  a  week  from  every 
family  in  the  Nation  over  the  period  of 
the  next  12  months 

What  is  the  admhiistratlon  waiting 
for?  Fuel  riots  at  schools  or  housing  de- 
velopments or  at  neighborhood  filling 
stations?  Ai-e  not  the  recent  actions  of 
the  truck  dnvers  enough  to  signal  the 
seriousness  of  the  situation,  the  enor- 
mous potential  for  social  unrest  that  ex- 
ists if  the  situation  continues  to  fall 
apart? 

Why  wait  until  March  for  rationing, 
when  the  probl?m  will  be  worse  and  the 
quota  may  be  down  to  6  gallons  a  week 
per  person,  when  rationhig  today  ^ould 
mean  10  gallons  a  week?  The  bureauc- 
racy of  rationing,  the  coupons,  the  black 
market  prevention  measures— all  mav 
seem  unpalatable  today,  but  they  are  far 
le.ss  unrttractive  than  the  lavoff.?.  the 
cold  home::  and  schools  and  offices  and 
hospitals  that  wiU  be  the  hallmark  of 
early  1974  if  we  fa'l  to  act  today. 

What  we  need  is  an  equitable  svstem 
that  assures  every  crowner  a  basic  al- 
lotment of  gasrlire  to  get  to  work  and 
meet  the  other  important  needs  of  his 


December  19,  1973 


CONGRESSIONAL  RECOR  D  —  SENATE 


42379 


family,  and  a  firm  clamp  on  the  price 
of  gasoline  to  keep  it  from  rising  higher 
than  about  50  cents  a  gsdlon. 
^^  That  is  the  best  and  fairest  prescrip- 

tion I  know  to  ^Ive  the  current  crisis, 
a  far  wiser  solution  than  the  ostrich- 
like "pray  for  peace  and  oil,"  "prosperity 
Is  just  around  the  comer"  policy  and 
philosophy  we  have  today.  That  Is  the 
sort  of  thing  they  tried  in  1929  and  it 
will  not  work  any  better  for  President 
Nixon  today  than  It  worked  for  President 
Hoover  in  tho  Depression  years. 

Second,  for  tlie  long  run,  we  carmot 
afford  the  wholesale  abandonment  of 
phase  IV  that  we  have  already  begun  to 
witness.  With  phase  IV,  we  have  the  sort 
of  wage  and  price  control  machinery  in 
place  that  can  be  our  best  defense  against 
serious  infiation  in  1974,  as  shortage?  and 
dislocations  brought  on  by  the  energy 
crisis  take  hold  next  year  and  send  prices 
into  orbit. 

Yet,  developments  In  recent  days  and 
weeks  suggest  that  the  administration  is 
moving  in  Just  the  opposite  direction. 
Pliase  IV  expires  on  April  30.  1974.  and 
Director  Dunlop  is  acting  as  though  his 
Cost  of  Living  Council  is  going  out  of 
business  on  that  date.  But  that  may  be  a 
date  when  controls  will  be  needed  more 
tiian  ever.  Today,  however,  phase  IV  is 
t)eing  relaxed  and  many  controls  are  be- 
ing taken  off  entirely,  first  on  one  sector 
of  the  economy,  then  on  more  and  more 
areas  where  controls  may  be  needed  in 
the  future. 

What  we  are  witnessing  now  Is  the 
birth  of  a  phase  m.  Junior,  with  all  the 
dangers  reminiscent  of  the  disastrous, 
discredited  old  phase  III  oi  early  1973, 
which  let  infiation  loose  again  after 
phase  n  had  it  nearly  under  control. 

Obviously,  some  price  increases  are 
necessary  to  meet  the  fallout  from  the 
energy  crisis.  But  the  prices  of  petroleum 
products  have  already  begun  to  soar.  In 
November  alone,  fuel  prices  led  the  rise 
'  in  the  wholesale  and  consumer  price  in- 

dexes, with  increases  for  some  compo- 
nents reaching  the  level  of  20  percent  for 
a  single  month.  And  the  figures  for  De- 
cember and  JanuaiT  may  be  even  worse. 

Was  it  really  necessary  to  abandon 
phase  rv  and  essentially  decontrol  the 
auto  industry  altogether.  In  order  to 
achieve  the  result  desired?  How  can  we 
maintain  the  surprisingly  tranquil  at- 
mosphere In  which  wage  agreements  in 
major  industries  have  been  successfully 
negotiated  In  recent  months,  if  it  is  open 
season  on  price  Increases  In  1974.  and  the 
cost  of  living  is  free  to  rise  at  will  ? 

And  the  timing  of  the  auto  decontrols 
was  suspicious  In^elf.  Was  it  just  coin- 
cidence that  these  dramatic  decontrols 
were  not  announced  by  the  Cost  of  Liv- 
hig  Council  until  last  week,  after  all  the 
major  labor  contracts  in  the  auto  indus- 
try had  finally  been  approved? 

The  danger  is  that  Secaretary  Shultz 
and  Chairman  Stein  are  using  the  energy 
crisis  as  a  covfer  and  excuse  to  Impose 
their  abhorrence  of  controls  and  their 
well-known  free  market  views  on  the 
economy,  at  a  time  when  the  country 
carmot  afford  it.  Almost  by  default,  the 
administration  Is  currently  making  de- 
cisions with  major  longrun  implications 
for  the  economy. 


Yet,  if  we  phase  out  phase  IV  now,  it 
will  be  far  more  difficult  to  bring  back 
controls  1^4^74.  Have  we  not  learned 
anything  from  the  experience  of  the  re- 
cession of  1970-71?  Here  we  are,  head- 
ing back  toward  6-percent  inflation  and 
6-percent  unemployment  or  worse  for 
1974.  and  all  they  tell  us  Is,  have  faith 
in  market  forces,  that  is  the  only  protec- 
tion we  really  need. 

But  that  protection  failed  in  1971,  and 
it  will  fail  again  In  1974.  The  only  thing 
that  rescued  us  from  the  consequences 
of  this  do-nothing  philosophy  hi  1971 
was  the  phase  I  freeze  and  then  phase 
n.  And  those  steps  were  drastic  meas- 
ures, forced  on  an  unwilling  administra- 
tion by  the  pressure  of  public  opinion, 
fed  up  with  months  of  the  worsening 
siege  of  simultaneous  ir.flation  and  re- 
cession. 

That  Is  the  epitaph  of  the  administra- 
tion's economic  policies — "Too  much,  too 
late."  We  needed  extraordinarj^  remedies 
in  1971— the  freezes,  the  devaluations  of 
the  dollar,  th?  massive  expansionary'  pro- 
grams— to  hold  inflation  down  in  1971 
and  get  the  economy  moving,  because  we 
had  failed  to  take  the  stitch  in  time  that 
could  have  avoided  resort  to  these  far 
more  drastic  measures. 

Let  us  learn  from  1971  today.  Now  is 
the  time  for  preventive  steps,  before 
things  begin  to  come  apart  in  earnest, 
before  more  drastic  steps  even  than  ra- 
tioning are  needed  in  the  future.  Clearly, 
the  economic  picture  is  already  worse  to- 
day than  It  was  in  1971,  and  I  would  hope 
a  sufficient  concern  on  the  part  of  the 
administration  exists  to  insure  positive 
decisions  today,  and  prevent  the  lem- 
ming-like abandonment  of  phase  IV  be- 
fore it  is  too  late. 

In  simi,  what  we  need,  as  in  so  many 
other  areas,  Is  a  healthy  dose  of  fore- 
sight and  economic  leadership.  A  sound 
economy  Is  the  greatest  social  progiam 
America  ever  had.  As  the  pending  energy 
bills  make  clear,  Congress  is  readj'  to  act 
ftoickly  and  effectively.  But  Congress 
/cannot  do  the  job  alone,  and  so  the  Pres- 
ident will  find  us  ready  and  v.illing  to 
work  together  to  do  what  must  be  done 
to  make  our  economy  strong. 


ON  THE  ECONOMY  AND  THE 
ENERGY   CRISIS 

Mr.  JACKSON.  Mr.  President,  there  is 
a  pessimistic  maxim  known  as  Murphy's 
law  which  postulates  that  if  anj-thing 
can  possibly  go  wTong  it  will.  The  corol- 
lary to  this  law  is  that  things  inevitably 
go  from  bad  to  worse.  Regrettably,  this 
law  must  seem  an  Immovable  polestar 
to  the  casual  observer  of  economic  con- 
ditions in  America  over  the  past  5  years. 
During  this  period,  we  have  experienced 
every  possible  conventional  economic 
malady  plus  a  few  new  ones  that  do  not 
even  occur  in  traditional  theor>-.  For  ex- 
ample, the  "stagflation"— economic  stag- 
nation plus  inflation— which  occurred 
during  the  1969-70  recession  was  an  hi- 
ventlon  of  the  present  administration. 
Previously,  it  was  believed  that  recessions 
have  a  natural  restraining  effect  on  in- 
flation. Well,  we  have  never  gotten  rid  of 
the  inflation  which  began  In  1969  and 
unfortunately,  it  now  appears  that  we 


^-^ 


are  headed  for  another  boUt'bf  recession 
and  "stagflation."  All  of  this  would  warm 
the  heart  of  Mr!  Murphy  though  it  has 
quite  the  reverse  effect  on  the  patient 
and  long  suffering  American  people. 

I  have  been  a  careful  observer  of  eco- 
nomic conditioris  over  the  past  5  years. 
These  have  not  been  particularly  easy 
times  in  which  to  chart  an  economic 
course.  However,  I  cannot  accept  Mur- 
phy's fatalistically  gloomy  explanation 
of  our  persistent  economic  troubles.  A 
faltering  economy  is  not  Inevitable. 
Rather,  simple  human  errors  of  Judg- 
ment on  fundamental  questions  have  in 
large  part  brought  about  or  worsened  our 
economic  problems.  I  have  been  greatly 
saddened  to  witness  these  unnecessary 
mistakes  which  have  cost  the  average 
American  working  man  and  woman  so 
dearly  and  which  impose  unconscionable 
hardships  on  the  millions  of  retired 
Americans  on  fixed  incomes. 

We  Uve  hi  times  that  require  adroit 
economic  leadership  from  the  President 
and  his  administration.  Instead,  the  rec- 
ord has  been  one  of  ad  hoc  economic 
poUcy,  pUant  to  special  interests  and 
crippled  by  ideological  hangups.  There 
has  also  been  a  good  share  of  downright 
economic  foolishness  in  administration 
policy  over  the  past  few  years. 

And  now,  the  economic  crisis  brought 
on  by  the  energy  shortage  is  fast  ap- 
proaching. In  the  absence  of  strong 
measures  to  deal  with  the  crisis,  this 
will  be  the  greatest  challenge  to  our 
economic  well-being  shice  the  Great  De- 
pression of  the  1930's.  There  has  not 
been  such  need  for  a  sure  hand  in  the 
direction  of  our  economic  policy  for  dec- 
ades. And  yet,  administration  econo- 
mists only  very  recently  realized  that  the 
energy  crisis  Is  much  more  than  a  mere 
inconvenience  to  motorists  and  a  threat 
to  the  comfort  of  householders  in  the 
event  of  a  cold  winter.  The  energy  crisis 
means  the  possibility  of  massive  imem- 
ployment.  continued  high  Inflation,  and 
a  loss  of  economic  productivity.  It  means 
the  possibility  of  great  hardship  for  the 
American  people  if  our  policymakers  are 
not  wise. 

I  do  not  wisL  to  sound  a  pessimistic 
chord.  I  believe  that  the  economic  crisis 
brought  en  by  the  energy  shortage  is 
manageable.  But,  it  requires  decisive 
lerdershlp  and  Government  action  to 
shape  and  moderate  the  crisis.  But.  we 
can  successfully  manage  this  problem  if 
we  put  our  minds  to  it. 

I  am,  however,  concerned  about  the 
track  record  of  the  administration  on 
economic  matters,  and  I  would  issue 
these  warnings.  There  is  not  a  great  deal 
of  mar?rin  for  error  In  this  situation,  and 
we  carmot  afford  to  repeat  errors  of  the 
past.  In  particular.  I  would  make  two 
relatively  simple  but  Important  recom- 
mendations. First,  do  not  permit  Ideo- 
logical biases  to  prevent  or  weaken  neces- 
sary Government  action.  Second,  use 
simple  prudence  and  caution. 

For  example,  I  believe  that  the  admin- 
istration's bias  for  simple  marketplace 
economic  theory  has  greatly  hampered 
the  effort  to  faring  inflation  under  con- 
trol .'ince  the  Initial  imposition  of  wage- 
price  controls  in  August  1971,  We  never 
did  have  a  vigorous  across-the-board  In- 


42380 


CONGRESSIONAL  RECORD  — SENATE 


December  19,  1973 


flatlon  control  program.  We  had  a  pro- 
gram of  ad  hoc  and  partial  freezes,  and 
phases  oi  poor  effectiveness  and  failing 
equity.  The  prematiire  lifting  of  controls 
during  phase  m  with  the  resultant  dis- 
astrous Inflation  ultimately  forced  re- 
Imposition  of  controls  In  freeze  n  and 
phase  rv. 

There  is  an  even  more  recent  example 
of  the  administration's  Ideological  hang- 
ups in  the  early  position  taken  on  man- 
datory fuel  allocations  and  on  gi^s  ration- 
ing. You  will  recall  that  my  mandatory 
allocations  bill  did  not  have  the  support 
of  the  administration  when  It  passed  the 
Senate  last  June.  Not  only  did  they 
shrink  from  such  action  in  theory,  they 
also  refused  to  believe  that  the  short  sup- 
ply problem  was  really  serious.  As  the 
reports  of  shortages  In  key  industries 
poured  in.  the  need  for  this  kind  of  hard 
decisionmaking  became  obvious,  and  the 
administration  horse  which  had  been  led 
to  the  water  by  the  Congress  was  Anally 
forced  to  drink. 

Another  example  Is  In  the  area  of  gas 
rationmg  where  the  administration  has 
shunned  such  controls  but  tinkered  with 
proposals  for  price  increases  to  dampen 
demand.  And  yet.  "price  rationing"  of 
gas  will  not  work  unless  the  price— te 
driven  through  the  roof  simply  because 
demand  to  meet  the  necessities  of  eveiy- 
day  hving  such  as  commuting  to  work,  is 
so  inelastic  and  will  continue  no  matter 
what  price  is  charged. 

I  am  concerned  that  the  bias  which 
prevented  effective  price  controls  and 
mandatory  allocatirais  and  still  prevents 
emergency\gas  rationing  will  cotitinue  to 
cripple  effort*^  to  minimize  the  adverse 
economic  impaiet  of  the  energy  shortage. 
I  simply  urge  prudence  and  common - 
sense  on  this  score.  The  sooner  we  face 
the  fact  that  direct  controls  are  neces- 
sary under  emergency  circumstances  the 
greater  will  be  our  chance  of  effectively 
shaping  the  solutions  to  our  economic 
problems  and  making  them  less  disrup- 
Uve. 

I  am  also  concerned  about  the  tend- 
ency of  economic  planners  in  this  ad- 
ministration to  make  fundamental  errors 
of  judgment.  Unfortunately,  misguided 
and  poorly  planned  policies  have 
plagued  and  continue  to  plague  us.  Per- 
haps the  most  glaring  example  of  this 
was  the  great  Russian  grain  robbery  of 
1972.  You  will  recall  that  In  the  grain 
deal,  we  awakened  one  day  to  And  that 
the  Soviet  Union  had  purchased  one- 
fourih  of  our  entire  wheat  crop.  No  one 
In  Government  seemed  to  know  ahead  of 
time  how  large  the  Soviet  need  was  or 
how  large  their  purchases  would  be. 

No  one  had  calculated  the  domestic 
needs  for  grain  and  the  inflationary'  Im- 
pact that  would  follow  from  seriously 
depleting  our  own  supplies  And  no  one 
stopped  to  think  that  there  was  no  longer 
a  need  for  export  subsidies  by  the  Amer- 
ican people  in  order  to  make  grain  prices 
lower  for  the  Soviets.  All  of  this  set  off 
a  continuing  lnflationar>-  spiral  In  food 
prices  costing  Americans  at  least  a  bil- 
lion dollars  directly  and  Indirectly. 

Another  particularly  unfortunate  mis- 
take directly  related  to  our  energy  short- 
age was  the  retention  of  outmoded  pro- 
tectionist oil  import  quotas  which  did 


little  If  anything  to  encourage  self-sufll- 
ciency  In  th^lr  latter  years — years  in 
which  U.S.  oil  companies  were  making 
huge  Investments  in  production  overseas. 
And  this  occurred  at  a  time  when  pru- 
dent planners  should  have  been  acting 
to  amass  a  strategic  stockpile  of  petro- 
leum reserves  to  withstand  precisely  the 
kind  of  economic  and  political  blackmail 
that  has  now  occiured. 

If  it  was  not  obvious  that  some  na- 
tions are  politlcallj'  unreliable  suppllei-s 
of  petroleum  it  should  have  been  obvious 
that  this  Nation  faced  a  shortage' of  re- 
finery capacity  that  was  bound  to  cause 
shortages  even  if  supplies  of  crude 
petroleum  were  ample.  Beyond  that,  it 
should  have  been  obvious  that  It  just 
made  economic  sense  for  producers  like 
Saudi  Arabia  to  cut  back  on  production 
OI  their  oU  resource  in  order  to  draw  a 
higher  price  and  earn  more  money  with 
less  resource  depletion. 

But  regrettably,  none  of  this  was 
grasped  by  the  economic  planners  and 
policymakers  of  this  administration.  It 
is  this  kind  of  fundamental  error  which 
must  be  avoided  at  all  cost  in  the  present 
economic  crisis.  We  cannot  afford  anoth- 
er major  blunder  at  this  time  and  under 
these  circumstances.  Oureconomlc  prob- 
lems are  severe  enougffHfcithout  them 
being  made  worse  by  foolish  or  short- 
sighted policymaking. 

If  there  was  ever  a  time  to  disprove 
Murphy's  law  It  is  now.  The  economic 
future  and  weU- being  of  our  Nation 
hangs  in  a  delicate  balance.  Adroit  lead- 
ership Is  essential  and  I  hope  forthcom- 
ing. Mr.  Simon,  who  has  become  the  new 
energy  czar.  Is  a  very  competent  and 
hardworking  individual  %ith  an  exten- 
sive background  in  economics.  I  hope  aad 
trust  that  he  will  be  able  to  forge  a  sea^- 
ble  overall  administration  strategy  to 
deal  with  the  present  crisis. 

I  believe  that  the  biases  and  mistakes 
of  the  past  can  be  set  aside  and  that  we 
can  deal  with  this  crisis  successfully.  I 
renew  my  pledge  to  work  for  that  goal 
In  the  months  and  years  ahead. 


ECONOMIC  DECISIONS  FOR  1974 

Mr.  MUSKIE.  Mr.  President,  I  am 
pleased  to  Join  with  my  distinguished 
colleagues  in  this  discussion  of  the 
economy.  For  despite  the  recent  public 
preoccupation  with  the  energy  crisis,  the 
crisis  of  consumer  economics  of  1973  Is 
still  with  us — and  demands  the  contin- 
ued attention  of  Congress.  I  commend 
Senator  Bintsxn  for  bringing  us  to- 
gether this  morning  for  that  purpose. 

This  discussion  is  important  now  be- 
cause In  the  coming  weeks  the  Nixon  ad- 
ministration will  be  making  decisions 
critical  for  our  economic  health  In  the 
coming  year.  Those  decisions  may  create 
a  new  structoire  of  wage  and  price  con- 
trols: Phase  V.  Or  they  could  follow  the 
pattern  of  past  administration  errors  by 
abandoning  any  effective  effort  to  keep  a 
lid  on  inflation. 

There  is  little  doubt  that  controls 
should  be  relaxed,  since  retaining  them 
In  their  current  fonn  will  cause  more 
harm  to  the  economy — In  the  form  of 
unnatural  shortages  of  key  materials, 
and  other  dislocations  and  inequities — 


than  any  salutory  effect  they  can  have 
on  inflation.  But  some  kind  of  controls 
policy  must  be  maintained.  To  be  effec- 
tive, the  policy  must  allow  Increased 
freedom  for  economic  decisionmaking  in 
the  private  sector  while  maintaining  the 
potential  for  firm  administrative  action 
to  roll  back  inflationary  price  and  wage 
increases. 

This  optimum  policy  will  require  great 
sophistication.  Judgment,  and  leader- 
ship— none  of  whicli  this  administration 
has  yet  demonstrated  on  economic 
matters. 

The  year  we  are  just  finishing,  of 
coUrse,  has  Itself  been  one  of  dramatic 
c4sis  In  the  American  economy.  The 
figures  available  for  the  latest  12-month 
period  show  Inflation  in  consumer  priced 
of  9.6  percent.  Inflation  in  food  prices 
was  19  percent  over  the  same  period.  Un- 
employment averaged  4.9  percent.  And 
the  real  value  of  average  weekly  earnings 
actually  declined  by  more  than  1  percent. 
Throughout  this  crisis,  the  erroneous 
predictions  of  the  administration,  and  its 
failure  to  take  decisive  action,  eroded  the 
confidence  of  the  American  people  In 
economic  actions  of  the  Federal  Gov- 
ernment. 

In  the  months  ahead  the  American 
people  will  feel  the  effects  of  the  energy 
crisis — caused  In  part  by  the  Middle  East 
oil  embargo,  but  also  caused  In  part  by 
the  administration's  failure  to  foresee  the 
possibilities  of  the  shortages  which  are 
now  all  too  evident.  Finally,  the  execu- 
tive branch  may  be  ready  to  take  firm 
action  on  energy  matters,  and  Congress 
Is  this  week  providing  the  necessary  au- 
thority for  that  action.  We  all  have  hope 
that  the  forthcoming  administration  ac- 
tion on  energy  will  minimize  the  overall 
effects  and  Inequities  of  the  shortages 
of  petroleum  products.  But  there  has 
been  no  evidence  that  dramatic  recent 
price  increases  in  such  petroleum  prod- 
ucts as  gasoline,  dlesel  fuel,  and  heating 
oil  have  been  justified.  The  first  priority 
of  the  new  Federal  Emergency  EInergy 
Administration  must  be  to  mitigate  the 
petroleum  price  squeeze,  and  insure  that 
the  consumer's  pocketbook  does  not  bear 
the  brunt  of  the  energy  crisis. 

Even  assuming,  however,  that  decisions 
on  energy  in  the  next  few  months  will 
be  wise  and  effective,  the  energy  crisis 
will  certainly  cause  major  disruptions  in 
our  economy.  Some  economists  now  esti- 
mate that  there  may  be  no  real  growth 
of  the  American  gross  national  product 
In  1974.  Estimates  of  the  inflation  rate 
next  year  range  from  8  to  10  percent.  And 
the  estimates  for  unemployment  next 
year  are  in  excess  of  5  percent — again, 
assuming  effective  energ>-  action. 

These  estimates  about  our  economic 
condition  next  year— which  many  would 
call  optimistic— will  translate  Into  real 
hardship  for  the  American  people.  Not 
only  will  there  be  shortages  of  gasoline 
for  our  automobiles,  and  fuel  to  heat, 
light,  and  power  our  homes  and  factor- 
ies, but  also  more  families  will  be  out  of 
work  sind  without  paj'checks.  For  them, 
the  Inevitable  price  rises  In  food,  petro- 
leum-related products,  and  many  other 
Items  will  be  especially  cruel. 

But  even  before  the  worst  economic 
effects  of  the  energy  crlsL^  are  felt,  the 


December  19,  1973 


CONGRESSIONAL  RECORD -SENATE 


42381 


administration  Is  now  considering  relax- 
ing or  abandoning  the  wage  and  price 
control  slruclure.  Serious  iriequllies  and 
dLslooations  have  appeared  m  the  econ- 
omy duniiK  the  current  pha'ip  IV,  Some 
products  are  not  available  beoau.se  con- 
u-uLs  have  made  them  unprofllable  to 
sell.  Shortages  on  some  .supplies,  caused 
by  controls  ur  petroleum  scarcity,  threat- 
en to  bring  some  businesses  and  indus- 
tries to  a  standstill.  And  some  consumer 
and  busljuess  purchasers  are  unfairly  pre- 
vented irom  recovering,  through  their 
own  wage  or  price  increases,  the  rising 
costs  they  are  forced  ^  pay.  But  when 
controls  are  lifted,  pent  up  inflationary 
pressure  could  be  turned  loose  with  dis- 
astrous consequences. 

So  although  a  relaxation  of  controls 
Is  needed,  abandoning  them  would  be  a 
mistake.  A  year  ago  the  administration 
was  faced  with  a  similar  problem — and 
decided  to  relax  controls  too  swiftly  in 
phase  HI,  bringing  us  the  rampant  in- 
flation of  last  spring.  When  they  admit- 
ted their  mistake,  inflation  was  so  bad 
that  a  freeze  and  a  tightened  control 
sj'stem  was  needed. 

If  President  Nixon  and  his  advisers 
chose  to  heed  recent  history  and  retain 
controls  while  relaxing  them  in  a  new 
phase  V,  they  will  stUl  be  faced  with  a 
great  challenge.  They  must  develop  a 
policy  which  will  allow  the  economy  to 
make  adjustments  In  wages  and  prices 
to  correct  shortages  and  inequities,  but 
at  the  same  time  protect  the  public  from 
a  new  roimd  of  uncontrolled  Inflation. 

The  essential  condition  of  that  policy 
must  he  a  convincing  mix  of  fairness  and 
firmness.  Phase  V  must  give  the  public 
confidence  that  unjustified  Infiationary 
wage  and  price  increases  will  not  be  per- 
mitted, that  those  who  seek  to  take  ad- 
vantage of  relaxed  controls  to  increase 
disproportionately  high  profit  margins  or 
wage  levels  wUl  be  required  to  justify 
their  actions  in  detail,  and  that  adminis- 
trative wage  and  price  decisions  will  be 
tempered  by  miderstanding. 

That  ix)llcy  must  include,  for  Instance, 
"rollback  authority"- the  ability  of  the 
Government  to  force  a  retraction  of  an 
imjustlfled  increase.  I  hope  that  pha.se  V 
will  Include.,  such  a  provision,  and  other 
tools  to  allow  Government  action  to  be 
effective. 

But  more  Important  even  than  the  de- 
tailed procedures  and  authorities  includ- 
ed In  phase  V  will  be  Its  credibihty— in 
other  words,  whether  the  American  peo- 
ple believe  It  will  be  administered  with 
fairness  and  flrmne.ss  And  the  credibil- 
ity of  the  poUcy  wUl  be  determined  by 
the  way  It  is  formulated,  announced,  and 
administered. 

If  the  administration's  forthcomong 
economic  decisions  are  weak,  arbltrarj". 
or  Confusing.  1974  could  be  a  disa-ster  for 
the  American  economy  I  hope  instead 
that  1974  will  begin  with  the  economic 
leadership  we  .so  de.'^pt^rately  need. 


EFFECT  OF  INFLATION  ON  THE 
HOUSINO  rNDUSITlY 

Mr.  SPARKMAN,  Mr.  President,  infla- 
tion Is  having  a  serious  effect  on  the  Na- 
tion's housing  Industry.  In  turn,  a  sink- 
ing housing  Industry  could  send  the  Na- 
tion into  a  serious  recession  In  1974. 


Yesterday,  the  Department  of  Com- 
merce released  the  November  figures  for 
private  housing  starts,  and  they  showed 
an  aimual  construction  rate  of  1.69  mil- 
lion units.  This  is  substantially  below  the 
rate  of  November  1972,  of  2.39  million 
units.  The  Department's  figrures  also 
showed  that  building  permits  continued 
to  decline.  These  figures  tend  to  confirm 
the  September  1973,  prediction  of  the 
First  National  City  Bank  of  New  York 
that  there  could  be  a  decline  of  30  per- 
cent in  production  by  the  first  quarter  of 
1974.  "and  a  much  larger  drop  in  profits." 

The  construction  industry  is  the  larg- 
est single  industry  in  this  coimtr>-.  Resi- 
dential housing  is  a  significant  portion  of 
this  activity  and  also  has  great  social  im- 
plications. As  the  Senator  from  Nevada 
•  Mr.  Bible)  pointed  out  in  his  statement 
today,  a  curtailment  of  housing  starts 
immediately  sends  shock  waves  to  other 
industries  such  as  carpeting  and  other 
furnishings,  appliances,  furniture,  hard- 
ware, and  general  retailing.  Small  bus- 
inesses across  the  country  thus  have  very 
large  stakes  in  the  number  of  houses 
buUt  each  year,  as  d^  the  more  than 
50,000  homebuilding  firms  in  every  State 
in  our  Nation. 

Thus,  If  homebuilding  falters,  our 
economy  could  be  sent>,lnto  a  recession. 

A  few  statistics^ll  Ihdicate  the  drastic 
effect  which  infiation  Has'Tiad  on  the 
financial  ability  ofAmertcans  to  afford 
housing  and  the  ability  of  the  Industry  to 
supply  it. 

The  Department  of  Commerce  home- 
ownership  expense  index  during  the 
period  from  1969  to  the  third  quarter  of 
1973  rose  almost  28 '/a  percent.  This  Is 
even  faster  than  the  Consumer  Price  In- 
dex which  rose  at  24*^  percent  during 
this  period. 

Between  1969  and  the  third  quarter  of 
1973.  the  median  price  of  a  new  house  In- 
creased from  $25,600  to  $32,900  or  28.5 
percent.  During  this  period,  the  price  of 
the  average  used  house  jumped  from 
$21,790  to  $29,830  or  36.9  percent. 

The  average  size  of  a  mortgage  loan 
to  finance  a  purchase  of  one  of  these  resi- 
dences climbed  from  $25,000  in  1969  to 
$28,800  in  November  of  1973,  At  today's 
prevailing  Interest  rates  of  between  8V2 
to  9 ',4  percent  on  home  mortgages,  this 
means  that  the  homebuyer  must  be  pre- 
pared for  much  higher  monthly  pay- 
ments than  4  years  ago. 

As  a  result  of  this  escalation.  It  has 
been  estimated  that  40  percent  of  our 
population  cannot  now  afford  to  buy 
newly  constructed  housmg.  What  Ls  even 
more  di.sturbing.  the  affordabillty  gap" 
may  be  widening.  The  Senator  from  Ten- 
nas,see  'Mr  Brock  1  who  is  a  member  of 
the  Senate  Housing  Subcommittee,  which 
I  chair,  has  summed  the  situation  up  by 
saying : 

The  a-,  crape  Amer;  an  can  no  longer  afford 
the  average  ,"imerlcan  home. 

We  have  a]wa.vs  prided  ourselves  as 
a  nation  and  on  the  high  portion  of  home 
ownership.  I  believe  that  about  63  per- 
cent of  our  rltizens  currently  own  their 
own  homes  This  has  been  a  source  of 
great  community  and  national  stability 

If  more  than  one-fifth  of  our  popula- 
tion, which  could  previously  expect  to 


own  homes  now  cannot  afford  them,  thla 
will  be  a  source  of  discontent  and  insta- 
bility in  the  years  aheaa. 

We  know  that  ir^ation  lias  driven  up 
the  cost  of  building  materials  to  con- 
struction firms,  There  has  been  a  whole- 
sale price  change  of  10,9  percent  in  Uae 
past  year  overall  m  these  materials  How- 
ever, the  major  factor  in  the  declme  in 
housing  ha^  been  the  drying  up  of  mort- 
gage crecut. 

The  housing  industry  is  as  dependent 
on  credit  for  forward  movement  as  an 
automobile  is  upon  gasolme.  The  Federal 
Reserve  estimates  that  about  75  percent 
of  the  average  home  purchase  must  be 
financed  through  a  mortgage.  The  hous- 
ing mdustrj-  mort-gages  account  for  about 
44  percent  of  all  the  funds  raised  in  pri- 
vate credit  markets  in  tlie  course  of  a 
year. 

I  regret  that  Infiation  has  restricted 
the  fiow  of  credit,  it  has  not  only  de- 
creased the  supply  but  made  It  more 
expensive. 

I  am  sorry  that  the  administration  has 
faUed  to  use  his  best  efforts  In  resolving 
the  Nation's  infiation  problems.  I  strong- 
ly disagree  with  the  thought  that  the  way 
to  fight  infiation  Is  to  increase  Interest 
rates.  In  my  view,  raishig  interest  rates 
raises  the  costs  that  this  consumer  must 
pay. 

The  economic  policies  of  this  admin- 
istration appear  to  presage  a  downturn 
in  housing  similar  to  those  in  1966  and 
1969.  Furthermore,  permitting  cvcles  of 
such  magnitude  to  sweep  through  an 
mdustr>'  periodically  is  profoundly  de- 
structive of  orderly  planning  and  invest- 
ment. *■  f 

It  Is  my  feeling  that  by  the  combined 
used  of  fiscal  policy,  as  well  as  the  use  of 
monetary  efforts  by  the  Federal  Resen-e 
Infiation  could  be  controUed,  Unfortu- 
nately, inflation  has  such  a  grip  in  1973 
that  It  will  take  concerted  and  deter- 
mined action  by  all  branches  of  Govern- 
ment to  do  something  about  It, 

For  the  sake  of  the  millions  of  fam- 
ilies which  are  coming  Into  the  housing 
market  everj-  year,  I  certainly  hope  that 
this  action  will  be  taken,  I  will  continue 
to  do  all  I  can  to  promote  antl-inflatlon- 
ary  policies  which  wiL  :nsare  a  steady 
supply  of  new  homes  and  apanment 
residences  at  prices  oin-  citizens  can  af- 
ford. 


TRANSACTION   OF   ROUTINE 
MORNING  BUSINESS 

The  ACTING  PRESIDENT  pro  tem- 
pore. At  this  tim.e  there  wUl  be  a  period 

for  the  transaction  of  rouiLne  morning 
business  for  not  to  exceed  15  mJr.utes. 
with  speeches  by  Senators  limited  to  3 
minutes  each. 

Is  there  morning  business  60  be  trans- 
acted at  this  time? 

Mr  ROBERT  C  BYRD  Mr  President. 
I  suggest  the  absence  of  a  quorum 

The  ACTING  PRESIDENT  pro  tem- 
pore The  cierk  will  call  the  roll. 

The  second  a.s.si5tant  legislative  clerk 
proceeded  to  call  the  roll 

Mr  M.\NSFIELD  Mr  President,  I  ask 
unanimous  consent  that  the  order  for 
the  quorum  call  b«K«sclnded. 


^ 


I 


/ 


42382  CONGRESSIONAL  RiLURD 

The  ACnNQ  PRESIDENT  pro  tem- 
pore. Without  objection.  It  is  so  ordered. 


■SEN  Alt 


December  19,  1973 


REPORTS  OF  COMMITTEES 

The  following  reports  of  committees 
were  submitted: 

By  Mr.  EAQLETON.  from  the  Committee 
on  tlie  District  of  Columbia,  without  ammd- 
ment  : 

H  R.  6758.  An  act  to  amend  chapter  33  of 
title  38  of  the  District  of  Columbia  Code 
relating  to  usury,  and  for  other  purpoees 
(Rept.  No.  93-649); 

B.B..  10606.  An  act  to  amend  the  District 
of  Coli^mtsia  Minimum  Wage  Act  so  as  to 
enaSIe  airline  employees  to  exchange  days 
at  regular  rates  of  compensation,  and  for 
other  purpoees  (Rept.  No.  93-660);   and 

HJ%.  11238.  An  act  to  amend  the  Act  of 
March  16.  1936  (reUtlng  to  the  Board  of 
Public  Welfare  In  the  District  of  Columbia), 
to  provide  for  an  improved  system  of  adop- 
tion of  children  lu  the  District  of  CoHimbla. 
and  for  other  piArposes  (Rept.  No.  93-651). 
By  Mr.  HUDDLESTON.  from  the  Commit- 
tee on  Agriculture  and  Forestry,  without 
amendment: 

HJl.  2303.  A  bill  to  continue  mandatory 
price  support  fcr  tung  nuts  only  through 
the  1976  crop   (Rept.  No.  93-652) 

By  Mr.  KENNEDY,  from  the  Committee  on 
Labor  and  Public  Welfare.  without, 
amendment: 

S.  2830.  A  bUl  to  amend  the  Public  Health 
Service  Act  to  provide  for  greater  and  more 
eTectlve  efforts  In  research  and  public  edu- 
cation with  regard  to  diabetes  mellltus  (Rept. 
No   93-653).  ^^ 

By  Mr.  RANDOLPH,  from  the  Committee 
on  Public  Worts,  with  amer.dments; 

H.R.  11565.  An  act  to  insure  that  certain 
buUdlngs  financed  with  Federal  funds 
utUlze  the  best  practicable  technology  for 
the  conservation  and  use  of  energy  (Rept. 
No.  93-654) 

By  Mr.  HArHAWAY.  from  the  Committee 
on  Banking.  Housing  and  Urban  ASalrs, 
without  amendment: 

HJl.  4738  An  act  to  provide  for  the  strlltlng 
of  medals  in  commemoration  of  the  one- 
hundredth  anniversary  of  the  Statehood  of 
Colorado  fRept.  No.  93-655):  and 

HJl.  5760  An  act  to  provide  for  the  strik- 
ing of  medals  commemocatu.g  the  Interna- 
tional Exposition  on  Environment  at 
Spokane.  Wash.,  in  1974  (Rept.  No.  93-656). 
Under  authority  of  the  order  of  the  Seiiaie 
of  December  18,  1973,  Mr.  Pvlbkight,  from 
the  Committee  on  Foreign  Relations,  sub- 
mitted a  report  on  the  bill  iHJl.  11088)  to 
provide  emergency  security  assistance  au- 
thorizations for  Israel  and  Cambodia,  which 
was  ordered  to  be  printed  fRept.  No.  93-667) . 
By  Mr  STENNIS.  from  the  Committee  on 
Armed  Services,  with  amendments: 

S.  2770.  A  bill  to  amend  chapter  5  of  title 
37.  United  States  Code,  to  revise  the  special 
pay  structure  relating  to  medical  officers  of 
the  imlformed  services  (Rept.  No.  93-658); 
and 

8.  2771  A  bUl  to  amend  chapter  5  of  title 
37.  United  States  Code,  to  revise  the  special 
pay  bonus  structure  relating  to  members  of 
the  armed  forces,  and  for  other  purposes 
(Rept.  No.  93-659) 


REFERRAL  OF  S.  2804— SINO-AMERI- 
CAN  SOYBE.\N  RESEARCH  INSTI- 
TUTE 

Mr.  HUMPHREY.  Mr.  President,  on 
December  12.  1973.  I  Introduced  S.  2804. 
calling  for  the  establishment  of  a  Slno- 
Amerlcaxi  Soybean  Research  Institute 
and  the  bill  was  referred  to  the  Com- 


mittee on  Foreign  Relations.  In  view  of 
the  importance  of  this  legislation  to  ag- 
ricultural matters,  I  request  unanimous 
consent  that  upon  being  reported  by  the 
Committee  on  Foreign  Relations,  it  be 
subsequently-  referred  to  the  Committee 
on  Agriculture  and  Forestry. 

The  PRESIDING  OFFICER.  Without 
objection.  It  is  so  ordered. 

Mr.  HUMPHREY.  Mr.  President,  I  also 
ask  unanimous  consent  that  S.  2804  be 
printed  In  the  Record  at  this  pomt. 

There  being  no  objection,  the  bill  was 
ordered  to  be  printed  in  the  Record,  as 
follows: 

S     2804 

Be  tt  enacted  by  the  Senate  and  House  of 
Repretentatwes    of    the    United    State*    of      j,°-  ^«»»*    a   oiu 
A-merica   m    Congrets   assembled.    That    t^ /"Columbia   Police 
President  shall  Initiate  immediate  action  to     o'   1858  to  more 
Imprjve   agricultural  yields  In   the   produc- 
tion of  soybeans  through  the  establishment 
of  a  Soybean  Re:earch  Institute  Jointly  sup- 
ported by  the  United  States  and  the  Peo- 
ple's Republic  of  China,  and   Is  authorized 
to  bring  together  representatives  from   the 
two  countries  for  the  purpose  of  planning 
for  and  esUbUshlng  a  Slno-Amerlcan  Soy- 
bean   Research     Institute     (hereinafter    re- 
ferred to  as  the  "Institute") . 

StcTtoN  1.  The  Institute  should  have  as 
its  major  objectives  the  following: 

(a)  To  Immediately  devote  its  facilities 
and  expertise  to  the  specific  need  for  In- 
creased soybean  yields  and  soybean  adapt- 
ability to  new  producing  regions: 

(b)  The  development  of  additional  uses 
for  soybeans  and  soybean  products  as  sources 
of  human  and  ajiimal  prptein.  including  the 
development  of  new  foods  and  food  substi- 
tutes ar.d  extender?;    a:id 

fc)  To  serve  as  a  basis  for  full  cooperation 
and  coordination  between  the  People's  Re- 
pubhc  of  China  and  the  United  States  In  the 
field  of  soybean  research  and  technology. 

Sic.  2.  (a)  The  location  o-  locations  of  the 
Institute  and  Its  form  of  administration  shall 
be  mutuaUy  agreed  upon  by  the  Peoples 
Republic  of  China  and  the  United  State* 
The  United  States  and  the  People's  Republic 
of  China  will  equally  share  staffing  and 
administrative  expenses. 

(b)  For  the  Immediate  establishment  and 
the  initial  operation  of  the  Insutute.  the 
President  is  authorized  to  use  an  amount 
not  to  exceed  »2.000.000  annually  out  of  any 
fu.'-.ds  avaUable  for  the  activities  of  the 
Agrlcultiu'al  Research  Service  of  the  United 
States  Department  of  Agriculture,  or  from 
fund.s  available  to  any  other  appropriate 
Federal  Agency. 

(C)  The  President  shall  slso  request  the 
Co.Tsultatlve  Group  on  International  Agri- 
cultural Research  of  the  World  Bank  to  con- 
sider funding  for  the  Institute  after  11- 
establlshment. 

Sec.  3.  In  working  toward  the  establish- 
ment of  the  Institute,  the  President  should 
fully  utlllre  the  expertise  and  experience  of 
organizations  active  m  soybean  research. 
parUcularly  the  Agency  for  IntemaUonal 
Development  and  the  Pood  and  Agriculture 
Organization  of   -he  r  .;-*>d   Nations. 


INTRODUCTION  OF  BILLS  AND 
JOINT  RESOLUTIONS 

The  following  bills  and  Joint  resolu- 
tions were  Introduced,  read  the  first  time 
and,  by  unanimous  consent,  the  second 
time,  and  referred  as  indicated: 

By  Mr.   DOBCNICK   (for  himself.  Mr. 

JAvrrs,    Mr.    ScBwxiKza     and    Mr. 

Tarr)  : 

S.  2825.  A  bill  to  amend  the  Federal  Pood. 

Drug,  and  Cosmetic  Act  to  establish  a  code 


system  for  the  Identification  of  prescription 

drugs,   and  for  other  purposes.   Referred   to 

the  Committee  on  Labor  and  PubUc  Welfare. 

By  Mr.  MATHIAS  (for  himself  and  Mr. 

EUOLXTON)  : 

S.  382t3.  A  bUl  to  amend  the  District  of 
Columbia  Code  to  revise  and  modernize  pro- 
cedure relating  to  the  administration  and 
distribution  of  decedents'  estates  and  for  the 
proof  of  wills.  Referred  to  the  Committee  on 
the  District  of  Columbia. 

By  Mr    HUGH  SCOTT: 
8.   2827.   A   bUl   for   the   relief  of  Qulntln 
Yuyltung;  and 

8.  2828.  A  blU  for  the  relief  of  Rlzal  Yuyl- 
tung. Referred  to  the  Committee  on  the 
Judiciary. 

By  Mr.  BEALL   (for  himself  and  Mr. 

Mathias)  : 

8.  2829    A  blU  to  amend  the  District  of 

and  Firemen's  Salary   Act 

mcrease   salaries,   and   for  other 

purpoees.  Referred  to  the  Committee  on  the 

District  of  Columbia. 

By  Mr.  8CHWEIKER  (for  himself.  Mr. 
McOn.  Mr.  WnxiAMs,  Mr.  KxmncDT, 
Mr.  Javtts,  Mr  Beali,,  Mr.  CaAKsrrow, 
Mr.  HroH«s,  and  Mr.  Pkll)  : 
8.  2830.  A  bUl  to  amend  the  Ptiblic  Health 
Service  Act  to  provide  for  greater  and  more 
effective  efforts  m  research  and  public  edu- 
cation with  regard  to  diabetes  meUltua.  Re- 
ferred to  the  Committee  on  Labor  and  Public 
Welfare. 

By  Mr.  (H^ARK: 
S    2831.  A  bin  to  authorize  the  establish- 
ment  and   maintenance  of   national   reserve 
supplies  of  corn,  grain  sorghum,  barley,  oats, 
wheat  and  soybeans  to  Insure  an  adequate 
supply  of  such  commodities  to  protect  the 
American  consumer  against  an  inadequate 
supply  of  foodstuffs  in  case  cf  natural  disas- 
ter; to  stabilize  farm  and  market  prices;  to 
maintain  and  promote  foreign  trsuie;  to  pro- 
tect produceirs  of  such  commodities  against 
an  unfair  loss  of  income  resulting  from  the 
establishment   of   these   reserve   supplies;    to 
assUt   in   marketing  such   commodities  and 
rotating  stocks  to  Insure  desirable  quality;  to 
assure   avallablUty   of  commodities   for  hu- 
mane purposes  In  the  promotion  of  world 
peace,  and  fo^other  purposee.  Referred  to 
the  Committee  on  Agriculture  and  Forestry. 
By   Mr.    TAPT    (for   himself   and    Mr. 
Pwu.) : 
3.  2832.  A  bill  to  provide  persons  who  un- 
lawfuUy  failed  to  register  for  the  draft,  or 
who  unlawfully  avoided  military  service,  with 
an  opportunity  to  earn  Immunity  from  pro- 
secution and  punishment  for  such  offenses 
and  for  other  purposes.  Referred  to  the  Com- 
mittee on  the  Judiciary,  by  unanimous  con- 
sent. 

By  Mr.  SYMINGTON: 
S.  2833.  A  blU  for  the  relief -of  Opal  Oarnet 
Branch.  Referred  to  the  Conunlttee  An  For- 
eign Relations. 

By  Mr.  THURMOND : 
S.   2834.   A   bill   to  amend   title   10  of  the 
United  States  Code  to  provide  that  certain 
additional  amounts  received  by  retired  serv- 
icemen employed  in  the  Junior  Reserve  Of- 
ficers' Training  Corps  shaU  be  treated  as  sub- 
sistence or  uniform  allov.ances  or  as  amounts 
received   as   commutation   of- quarters.   Re- 
ferred to  the  Committee  on  Armed  Services 
By  Mr.  HUMPHREY: 
S.  2835.  A  bill  to  rename  the  first  Civilian 
Conservation     Corps     Center     located     near 
Franklin.  N C.   and  the  Cross  TlmberB  Na- 
tional Grasslands  In  Texas  In  honor  of  former 
President   Lyndon   B    Johnson.   Referred    to 
the  Committee  on  Agriculture  and  Forestry. 
By  Mr.  MANSPIELX)   (for  himself  and 
Mr.  Hugh  Scott)  : 
SJ.  Res.  182.  A  Joint  resolution  extending 
the  dates  for  the  transmission  of  the   1974 
Economic  Report  and  the  report  of  the  Jmnt 
Economic  Committee.  Considered  and  passed. 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


12383 


^ 


STATEMENTS       ON       INTRODUCED 
BILLS  AUT^  JOINT  RESOLUTIONS 

By  Mr.  EX)MIN1CK  <for  himself. 
Mr.  Javxts,  Mr.  Schwedcer,  and 
Mr.  Taft)  : 

S.  2825.  A  bill  to  amend  the  Federal 
Food.  Drug,  and  Cosmetic  Act  to  establish 
a  code  system  for  the  identification  of 
prescription  drugs,  and  for  other  pur- 
poses. Referred  to  the  Committee  on  La- 
bor and  Public  Welfare. 

Mr.  DOMINICK.  Mr.  President.  I  am 
pleased  to  introduce,  on  behalf  of  myself, 
Mr.  Javits,  Mr.  Schweiker.  and  Mr.  Taft, 
a  bill  to  amend  the  Federal  Food,  Drug, 
and  Cosmetic  Act  to  establish  a  code  sys- 
tem for  the  identification  of  prescription 
drugs  and  which  may  be  cited  as  the 
"Drug  Identification  Act  of  1973."  I  in- 
troduced this  bill  during  the  92d  Con- 
gress, but  no  action  was  taken. 

The  present  labeling  provisions  of  the 
Federal  Food.  Drug,  and  Cosmetic  Act  re- 
lating to  the  identification  of  drug  prod- 
ucts and  their  production  or  distribution 
origin  do  not  require  that  this  informa- 
tion be  shown  directly  on  the  tablets  or 
capsules  of  drugs  marketed  in  these 
forms.  Thus,  in  cases  of  personal  emer- 
gency, such  as  overdosages  or  accidental 
Ingestion  of  a  drug,  identification  may  be 
seriously  delayed  and  may  require  elabo- 
rate and  time-consuming  laboratory 
analysis.  A  quick  identification  of  the 
drug  in  such  emergencies,  by  labeling  and 
direct  product  coding,  could  facilitate 
prompt  and  appropriate  medical  treat- 
ment. A  uniform  drug  coding  system  to 
Identify  drug  manufacturers  and  dis- 
tributors would  also  be  of  great  value  to 
the  E>epartment  of  Health,  Education. 
&nd  Welfare  and  other  Federal  agen- 
cies and  to  State  agencies  in  the  admin- 
istration of  drug  purchase  and  reim- 
bursement programs. 

The  bill  would  amend  the  Federal 
Food.  Drug,  and  Cosmetic  Act  to  author- 
ize the  Secretary  to  establish  a  uniform 
code  or  system  of  coding  for  prescrip- 
tion drugs  representing,  first,  the  identity 
of  the  manufacturer;  second,  the  iden- 
tity of  the  drug:  third,  the  identity  of 
the  final  packager  if  different  from  the 
manufacturer;  fourth,  the  dosage  form 
and  strength  of  the  drug;  and  fifth,  the 
number  of  drug  units  in  the  package. 
The  applicable  code  information  would 
have  to  appear  on  the  label  of  the  trade 
package  of  each  prescription  drug.  In  ad- 
dition, if  the  drug  is  in  tablet  or  capsule 
form,  each  tablet  or  capsule  would  have 
to  be  marked  with  the  code  symbol  rep- 
resenting the  identity  of  the  manufac-'' 
turer  and  the  Identity  and  strength  of 
the  drug.  The  coding  requirements  would 
apply  to  drugs  in  intrastate  as  well  as 
interstate  commerce. 

Where  compliance  would  be  Impracti- 
cable because  of  the  size  or  other  rele- 
vant aspects  of  the  container  or  the  tab- 
let or  capsule,  exemptions  from  these 
requirements  could  be  granted  Lf  the  ex- 
emption would  not  be  Inconsistent  with 
protection  of  the  public  health. 

The  label  of  the  trade  package  of  a 
prescription  drug  would  also  have  to  bear 
the  ntune  and  place  of  business  of  the 


manufacturer  or,  if  different,  the  final 
packager;  such  a  drug  could  no  longer 
be  marketed  carrying  only  the  name  of 
the  distributor  who  is  not  the  final  pack-^, 
ager.  It  is  the  purpose  of  this  feature 
to  assist  the  Pood  and  Drug  Administra- 
tion in  effecting  recalls  of  subpotent  or 
other  dangerous  drugs  dowTi  to  the  con- 
sumer level  when  necessary  for  protec- 
tion of  the  public  health  and  safety. 

The  name  of  a  prescription  drug — 
whether  brand  or  generic — as  written  by 
the  prescriber.  and  its  strength,  would 
be  required  to  appear  on  the  label  of  the 
drug  container  which  is  dispensed  to  the 
consumer,  unless  specifically  indicated 
otherwise  by  the  physician.  In  this  event 
the  code  symbols  identifying  the  manu- 
facturer and  the  drug  and  its  strength 
would  have  to  be  on  that  label.  In  addi- 
tion, the  bill  would  make  applicable  to 
the  container  of  the  dispensed  prescrip- 
tion drug  the  requirement  of  the  act, 
now  applicable  only  to  the  trade  pack- 
age, that  the  label  state  the  quantity  of 
the  contents.  I  might  add  parenthetically 
that  the  Secretary  would,  however,  re- 
tain his  present  authority  to  exempt  from 
this  requirement  packages  so  small  that 
compliance  would  not  be  practicable. 

The  preparation  of  the  drug  code  di- 
rectorj'  and  its  distribution,  without 
charge,  to  hospitals,  to  poison  ccmtrol 
centers,  and  to  such  other  persons  as  is 
deemed  necessary  to  cany  out  the  pur- 
poses of  the  bill  would  be  the  responsi- 
bility of  the  Department  of  Health.  Edu- 
cation, and  Welfare.  Others  could,  of 
course,  purchase  the  drug  code  directory 
from  the  Ckivemment  Printing  Office. 

The  coding  requirements  for  prescrip- 
tion drugs  imposed  by  this  bill  would 
take  effect  2  years  after  the  month  in 
which  regulations  establishing  the  code 
system  are  promulgated  Euid  would  be 
applicable  to  products  manufactured 
thereafter.  This  leadtime  would  permit 
drug  manufacturers  who  do  not  now 
code  their  products  to  phase  in  such  pro- 
cedures in  their  manufacturing  and  dis- 
tribution operations.  Earlier  effective 
dates  are  specified  In  the  bill  for  other 
labeling  requirements  contained  therein. 

In  closing,  I  would  like  to  bring  to  the 
attention  of  my  colleagues  that  this  bill 
is  designed  to  carry  out  the  recommenda- 
tion on  this  subject  in  the  President's 
consumer  message  of  October  30,  1969, 
and  would  carry  out  the  recommenda- 
tions by  the  President  in  his  message  on 
legislation  not  enacted  during  the  91st 
Congress. 


By  Mr.  BEALL  (for  himself  and 
Mr.  MA'raiAS) : 

S.  2829.  A  bill  to  amend  the  District 
of  Columbia  Police  and  Rremen's  Safety 
Act  of  1958  to  increase  salaries,  and  for 
other  purposes.  Referred  to  the  Commit- 
tee on  the  District  of  Columbia. 

Mr.  BEALL.  Mr.  President,  for  myself 
and  my  colleague.  Senator  Mathias.  I  aim 
sending  to  the  desk  legislation  designed 
to  provide  for  an  increase  in  salary  for 
the  members  of  the  District  of  Colum- 
bia Police  Force,  the  Executive  Protec- 
tive Service,  the  U.S.  Park  Pc^ice,  and 
the  PlrekDei>artment  of  the  District  of 


Columbia.    A    similar    measure     (HJl. 
9922)    is  pending  before  the  Hquse  of 
■  Representatives.  ^ 

Law  enforcement  officers  and  firemen 
play  an  absolutely  essential  role  in  the 
well-being  of  any  commimity.  Their  pro- 
fessions are  increasingly  complex,  fre- 
quently thankless,  ^nd  on  far  too  many 
occasions  extremely  dangerous.  Like  fire 
insurance,  we  never  think  about  the  im- 
portance of  our  law  enforcement  and  fire 
prevention  agencies  until  we  need  them. 

Most  Americans,  the  overwhelming 
majority  of  whom  are  law-abiding  citi- 
zens, never  come  in  direct  contact  with 
the  law  enforcement  establishment 
When  we  do  come  in  contact  with  a  po- 
liceman, frequently  for  motor  vehicle 
violations,  we  are  far  more  likely  to 
blame  the  officer  for  catching  us  viola- 
lating  the  law  rather  than  blaming  our- 
selves for  the  original  vlolatitKi.  Thus,  the 
law  enforcement  officer  is  frequently  in 
a  "no- win"  situation;  largely  invisible  to 
the  majority  of  our  population  and 
vigorously  resented  when  he  fulfills  the 
requirements  of  his  job.  I  believe,  how- 
ever, that  all  of  us  realize  that  the  "thin 
blue  line"  stands  between  a  law-abiding 
society  and  anarchy.  One  need  only  refer^ 
to  the  serious  breakdown  of  clvU  author- 
ity which  took  place  in  the  city  of  Mon- 
treal during  a  policemen's  strike  several 
years  ago.  The  absence  of  law  enforce- 
ment officers  brought  out  the  worst  in- 
stincts in  far  too  many  people  end  an 
extremely  dangerous  and  destructive 
situation  developed. 

I  would  also  note  that  our  Nation's  fire- 
fighters ere  engaged  in  a  most  hazardous 
profession.  Their  death  rate  is  at  least 
15  percent  greater  than  that  of  the  next 
most  hazardous  occupation,  mining  and 
quarrying.  Fire  fighting  is  probably  al- 
ways going  to  be  an  especially  hazardous 
profession,  and  like  policemen,  tliey  are 
generally  out  of  sight  and  out  of  mind. 

Now,  the  Nation's  Capitol  finds  itself 
confronted  by  a  serious  problem  in  the 
field  of  law  enforcement.  The  District  of 
Columbia  has  a  fine  police  force  which  Is, 
for  the  most  part,  well  trained  and  highly 
professional.  However,  the  surrounding 
counties,  which  have  grown  dramatically 
in  recent  years,  are  both  in  need  of  well 
trained  policemen  and  prepared  to  pay  a 
higher  salary  than  is  currently  being 
paid  In  the  District  of  Columbia.  Just 
'^as^  there  was  an  International  "brain 
drain"  during  the  1950s  and  1960"s.  The 
District  police  force  could  be  subject  to  a 
serious  depletion  of  its  talented  man- 
power if  this  condition  is  not  corrected. 
Mr.  President,  I  have  prepared  several 
tables  which  compare  minimum  and 
maximum  salaries  paid  to  police  privates 
in  cities  over  500,000  population  and  in 
the  other  jurisdictions  in  the  Washing- 
ton metropolitan  area.  In  addition,  I  have 
prepared  statistics  relative'^to  the  turn- 
over in  manpower  on  the  District  police 
force,  and  I  ask  unanimous  consent  that 
these  charts  be  printed  in  the  Record  at 
the  conclusion  of  my  remarks. 

Mr.  President,  almost  all  of  the  eift- 
ployees  of  the  District  of  Columbia  re- 
ceived the  4.7-percent  cost  of  living  In- 
crease which  was  granted  Federal  em- 


123^ 


CONGRESSIONAL  RECORD  —  SENATE 


ployees  last  October.  The  District's  flre- 
men  aod  policemen  were  not  covered  by 
the  provisions  of  this  psky  Increase. 

In  fact,  the  Districts  policemen  last 
received  a  pay  increase  in  May  of  1972. 
Since  that  time,  the  Consumer  Price 
Index  has  risen  9.6  percent.  My  legisla- 
tion would  provide  for  a  15-percent  pay 
Incre^e  effective  January  1.  1974.  This 
measa^is  designed  to  allow  the  law  en- 
f orcemCTif  Uid  fire  protection  agencies 
to  hold  their  own  during  a  period  of 
rapid  inflation.  The  District  government 
has  recently  offered  a  10-percent  in- 
crease effective  July  1.  1974.  I  believe 
that  this  is  an  inadequate  offer  in  light 
of  the  fact  that  it  will  b-^ome  effective 
26  months  after  the  last  pay  increase  and 
It  is  not  adequate  compensation  In  light 
of  the  recent  Increases  In  the  cost  >f 
living. 

S.  2829  will  also  provide  compensation 
for  inservice  training  leading  to  a  degree 
In  fire  or  police  science  or  administra- 
tion. I  believe  it  is  essential  for  us  to 
steadilv  upgrade  the  quahty  of  our  police 
and  fir^personnel.  Improving  the  quality 
of  our  policemen  and  firemen  will  better 
enable  them  to  res]?ond  to  the  needs  of 
their  community. 

There  being  no  objection,  the  tables 
were  ordered  to  be  printed  in  the  Rxcord, 
as  follows: 


December  19,  19  73 


modltles  to  protect  the  American  con- 
sumer against  an  Inadequate  supply  of 
foodstuffs  In  case  of  natural  disaster:  to 
stabilize  farm  and  market  prices;  to 
maintain  and  promote  foreign  trade:  to 
protect  producers  of  such  commodities 
against  an  unfair  loss  of  Income  resiilting 
from  the  establishment  of  these  reserve 
supplies:  to  assist  In  marketing  such 
commodities  and  rotating  stocks  to  In- 
sure desirable  quahty;  to  assure  avail- 
ability of  commodities  for  humane  pur- 
poses in  the  promotion  of  world  peace, 
and  for  other  purposes.  Referred  to  the 
Committee  on  Agrlcultiire  and  Forestry. 


THB    FOOD    BANK    ACT 


MINIMUM     AND     MAXIMUM     SALAKIES     PAID     POLICE 
PRIVATES  BY  CITIES  OVER  500.000  POPULATION 

CitiM 

Minimum      Maximum  Stspi     Yaan 


Chicago       

CineinnaO 

CTawland   

DataMf 

Houiton      

Lot  AngelM  _ 

W«w  Yofk 

Pkiladalphia  _ 
Sm  DiafB  ._ 
San  Ffaacitea 

S«ttla      

Wuti.,  O.C.  _.. 


$10,  524 

10.  183 

11.  387 

10.  300 
.  11.  140 

11.  2S« 

12.  849 
11.  447 
11.  244 
13.680 
10.  512 
10.  000 


$14.  824 
11.415 

12,  387 

13.  SOO 

12.  096 

13.  992 

14.  300 

12.  022 

13.  672 
14.280 

13,  032 

14,  400 


3 
4 

3 

1V4 

3 

2 

3 

4 

16 


Local  juriidictioos 


Alexandria 

Arilniton 

Fairfu       

MoatceflMfT    Couptr. 
Prinea  Gaorgas 
County      . ,7i;^5._ 

wteh.,  6.C ._ _z: 


110.  081 

10,  605 

9,  989 

10,  104 

10.  275 
10,  000 


$12,  254 

13,  536 

14,  759 
13.  509 

13.  749 

14,  400 


5 
6 
8 
6 

6 
8 


5 

6 

16 

6 

6 

16 


Fiacal  yeai 
1972 
1973 

CalMda   , 

1972 
1973 


NUMBER  Of  POLICEMEX  APPOINTED 


riacal 


NUMBER  OF  POLICEMEN  RES1G{IED 


il  «*tr: 
1972 

1973        . 
Calandar  Man 
1972 
1973 

AMrac*  numbM^  of  ymn  Ciparianca  it  Um  Uom  of 
rawination— 3  yaare.  (Sal»nr  of  •  poJicwnan  with  3  Man 
axpartanea  II  J11.300  ) 

»  T>aM  Rfura*  do  not  raflad  inwlantarr  taoaration. 


771 
331 

520 

47C 


482 
338 

400 
320 


By  Mr  CLARK: 
S  2831.  A  bin  to  authorize  the  estab- 
lishment and  maintenance  of  national 
reserve  supplies  of  com,  grain  sorghum, 
barley,  oats,  wheat,  and  soybeans  to  In- 
siire  an  adequate  supply  of  such  com- 


Mr.  CLARK.  Mr.  President,  the  legisla- 
tion I  am  Introducing  today,  the  Pood 
Bank  Act.  would  establish  a  domestic 
reserve  of  six  basic  grains  and  feed 
grains  and  also  authorize  and  encourage 
this  Nation's  particlpaUon  In  the  crea- 
tion of  similar  reserves  worldwide. 

Neither  kind  of  reserve  is  a  new  con- 
cept. 

Just  a  few  months  ago.  Senator  Hum- 
ph ret  offered  a  sophisticated  domesUc 
reserve  propasal  as  an  amendment  to 
the  1973  farm  bill.  He  has  subsequently 
offered  a  similar  proposal  as  a  separate 
bUl.  S.  2005,  and  the  Agriculture  Sub- 
committees headed  by  Senators  Htm- 
PHREY  and/|HtjDDLESTON  are  currently 
conducting  joint  hearings  on  this  and 
other  proposals.  In  the  House  of  Repre- 
sentatives. Congressmen  Smith  and 
Bergland  have  Introduced  reserve  legis- 
lation of  their  own. 

This  country's  participation  in  an  In- 
ternational reserve  has  been  brought  up 
before  the  Senate  In  a  resolution  offered 
by  Senator  McGovirn.  and  the  begin- 
nings of  an  initial  reserve  plan  have 
been  approved  by  the  Pood  and  Agrlcul- 
tiu^  Organization  of  the  United  Nations. 
The  major  new  contribution  of  this 
proposal  then  Is  that  It  represents  the 
first  attempt  to  draw  the  concepts  of  do- 
mestic reserve  and  international  reserve 
participation  Into  a  single  piece  of  leg- 
islation. 

We  must  recognize  the  fact  that  the 
United  States  does  not  exist  In  a  vacuum 
and  that — because  of  our  unprecedented 
capacity  for  food  production— our  food 
poUcles  have  a  significant  effect  on  the 
rest  of  the  world  community.  Oin:  obli- 
gations to  that  community  must  be  con- 
sidered In  our  formulation  of  those 
poUcles. 

The  domestic  section  of  my  proposal, 
similar  in  approach  to  the  domestic  re- 
serve legislation  being  considered  in  the 
House,  also  contains  a  variety  of  new 
provlslOTis  designed  to  give  greater  rec- 
ognition to  the  role  the  Individual  family 
farm  plays  In  our  agricultural  economy 
and  to  assure  that  the  reserve  program 
will  not  be  abused  by  either  government 
or  corporate  Interests. 

I  offer  this  measure  as  an  alternative 
to  the  proposals  already  before  us  In  the 
hope  that  It  will  contribute  some  new  di- 
rections and  emphasis  in  the  final  re- 
serve bill  which  results  from  our  deliber- 
ations on  the  subject. 

The  need  for  reserves  of  basic  human 
staples  and  Uvestock  feeds  Is  overwhelm- 
ing— both  at  home  and  abroad. 


A  domestic  reserve,  which  would  use 
the  surpluses  of  good  years  to  create 
stockpiles  for  years  of  underproduction, 
would  help  protect  American  consumers 
from  shortages  and  help  stabilize  the 
price  of  meat  and  other  commodities  for 
farmers  and  consumer  alike.  It  would 
help  promote  foreign  trade  by  increasing 
the  confidence  of  buyers  overseas  in  our 
abUity  to  supply,  and  It  would  guarantee 
a  ready  source  of  meeting  emergency 
food  needs  at  home  and  abroad. 

An  International  reserve  could  ac- 
complish the  same  purposes  worldwide. 
Since  world  food  supplies  are  increasing- 
ly precarious,  this  would  not  only  help 
achieve  broad  humanitarian  goals,  but 
it  also  would  greatly  enhance  the  possi- 
bility for  a  permanent  structure  of 
peace. 

My  domestic  reserve  proposal  would 
create  government  reserves  of  com,  grain 
sorghum,  barley,  oats,  wheat,  and  soy- 
beans. 

The  reser\e  program  wotna"bradmln- 
Istered  by  the  Secretary  of  Agriculture 
through  existing  UJ3.  Department  of  Ag- 
riculture agencies,  such  as  the  Com- 
modity Credit  Corporation  and  the  Agri- 
cultural StabUlzatlon  and  Conservation 
Service,  so  that  a  new  Pederal  bureauc- 
racy would  not  be  necessary. 

The  Government  would  purchase  regu- 
lated quantities  of  these  commodities 
whenever  overproduction  resulted  hi  sur- 
plus, until  maximum  reserve  levels  were 
met. 

The  maximum  reserve  levels  are  set  at 
300  milUon  bushels  for  wheat.  25  million 
tons  for  feed  graln.s.  and  100  million 
bushels  for  soybeans.  At  least  80  percent 
of  the  feedgrain  reserve  would  have  to  be 
com— in  recognition  of  the  importance 
of  this  crop  for  livestock  feeding. 

These  reserve  stocks  could  be  released 
by  the  Secretary  of  Agriculture  only 
under  definitely  prescribed  conditions— 
to  make  up  the  difference  between  the 
estimated  demand  and  supply  in  years  of 
anticipated  imderproductlon  or  for  dis- 
aster reUef  and  simUar  purposes,  such 
as  maintenance  of  foundaUon  Uvestock 
heards. 

Procedures  for  purchase  and  sale  are 
designed  to  help  safeguard  the  Interests 
of  both  consumers  and  the  farmers,  who 
have  labored  to  produce  the  corps,  rather 
than  provide  exaggerated  profits  to  mid- 
dlemen 

Purchase  orders  would  go  to  individual 
farmers  first,  through  county  A6CS  o£B- 
ces.  Purchase  prices  would  be  100  percent 
of  the  average  farm  price  for  the  com- 
modity for  the  previous  5  years,  or  the 
target  price,  whichever  is  greater. 

In  the  case  of  sales,  no  one  buyer  would 
be  allowed  to  purchase  more  than  10  per- 
cent of  the  stocks  of  any  reserve  com- 
modity. Sales  price  could  be  no  lower 
than  120  percent  of  either  the  average  5- 
year  farm  price,  the  target  price,  or  the 
highest  price  the  open  market  would 
pay,  whichever  Is  higher. 

Provision  Is  made  for  rotating  resprve 
stocks  to  insure  maintenance  of  qiiailty, 
and  at  least  30  percent  of  the  r^.serve 
stocks  of  each  commodity  miist  be  stored 
In  or  near  the  areas  of  production  to  aid 
fast  interior  distribution  when  the  need 
for  this  arises. 


/ 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


42385 


The  Secretary  of  Agriculture  would  be 
required  to  submit  to  Congress  a  detailed 
report  each  year  on  the  amoimts  and 
locations  of  each  commodity  stored  and 
the  transactions  in  each  commodity  in 
the  preceding  year,  so  that  Congress  can 
exercise  adequate  oversight  of  the  pro- 
gram. 

My  proposal  for  international  reserve 
participation  Is  necessarily  less  specific 
and  comprehensive,  since  such  an  under- 
taking is  far  more  complex,  and  much 
more  study  and  other  groundwork  re- 
mains to  be  done. 

The  legislation  would  authorize  and 
encourage  the  participation  of  the 
United  States  in  this  effort  in  three 
ways. 

Ph-st,  it  would  direct  the  Secretaries 
of  Agriculture  and  State  to  coordinate 
with  the  Pood  and  Agriculture  Organiza- 
tion's efforts  to  establish  a  basic  informa- 
tion system  and  target  reserve  levels  for 
each  nation. 

Second,  it  would  allow  examination 
of  the  possibility  of  coordination  with 
the  World  Bank  in  providing  capital  to 
underdeveloped  nations  for  construction 
of  reserve  storage  faculties  in  those  na- 
tions. 

Finally,  it  would  permit  study  of  the 
possibility  of  pursuing  CCC  type  poUcy 
at  an  international  level,  to  provide  fur- 
ther funds  and  technical  assistance  for 
food  management  in  underdeveloped 
nations. 

Mr.  President,  these  matters  are  of 
prime  Importance  to  us  at  this  time,  and 
I  urge  the  serious  consideration  of  these 
proposals  by  this  body. 

I  ask  unanimous  consent  that  the  bill 
be  printed  In  the  Ricord  at  the  conclu- 
sion of  my  remarks. 

There  being  no  objection,  the  bill  was 
ordered  to  be  printed  In  the  Record,  as 
follows : 

8.  2831 

Be  U  enacted  by  the  Senate  and  Houae 
of  Repreaentativea  of  the  United  States  of 
America  in  Congress  assembled.  That  this 
Act  may   be  clt*cl   as  tl.e     Pood   Banlt  Act". 

8sc.  a.  I  a)  Notwithfltar.dlng  any  other 
provision  of  law.  the  Secretary  of  Agriculture 
(hereinafter  referred  tr,  as  the  "Secretarv") 
shall  eatabllBh.  malntali..  dlspf>se  of.  and 
replenish  under  tl.e  provisions  of  this  Act  ^ 
a  separate  reserve  of  Inventories  of  oom. 
grain  sorghums,  barley,  and  oats  (herein- 
after referred  to  as  feed  grains),  wheat,  and 
soybeans. 

(b)  Such  reserve  Inventories  shall  Include 
not  more  than  the  foUowlng  quantities:  (1) 
three  hundred  million  bushels  of  wheat. 
(3)  twenty-five  million  tons  of  feed  grains, 
of  which  not  less  than  80  per  centum  In 
reserve  at  any  time  shall  be  in  com,  and 
(3)  one  hundred  million  bushels  of  soy- 
beans. 

Sic.  3.  The  maTlmtim  price  the  Secre- 
tary shaU  pay  for  any  commodity  purchased 
luider  authority  of  this  .^ct  shall  be  (1)  the 
average  price  farmers  received  for  such  com- 
modity during  the  five  marketing  years  Im- 
mediately preceding  the  year  I:,  which  the 
commodity  Is  purchased,  adju.st^-d  to  reflect 
the  customary  location  and  grade  price  dlf- 
ferentlals.  or  (2)  except  In  the  case  of  soy- 
beans, the  target  price  established  pxirsuant 
to  Public   Law   93-86.   whichever   Is   greater 

8«c.  4.  The  net  additional  quantity  of  any 
commodity  procured  under  this  Act  In  any 
marketing  year  shall  be  the  lesser  of  the 
foUowlng : 


(1)  60  per  centiun  of  the  net  additional 
estimated  total  carryover  for  the  nuirketlng 
year;  or 

(2)  the  amount  the  maximum  reserve  In- 
ventory specified  In  section  2(b)  exceeds  the 
total  stocks  of  such  commodity  owned  by 
the  Commodity  Credit  Corporation  at  the 
beginning  of  the  marketing  year. 

Sec.  5.  The  maxlmiun  price  to  t>e  paid  for 
any  commodity,  the  quantity  of  any  com- 
modity to  be  procured  durUig  the  marketing 
year,  and  the  estimates  used  In  arriving  at 
such  price  and  quantity  ihall  be  announced 
during  such  marketing  year  on  the  last  Fri- 
day of  July  lu  the  case  of  wheat,  on  the  last 
Friday  of  October  In  the  case  of  feed  grains, 
and  on  the  last  Friday  of  September  in  the 
case  of  soybeans. 

Sic.  6.  In  pxirchaslng  any  commodity 
under  this  Act,  the  Secretary  Is  authorized 
to  allocate  purchases  of  such  commodity 
among  the  various  varieties  and  grades 
thereof  to  corre8p>ond  to  the  usual  demands 
for  such  commodity. 

Szc.  7.  (a)  Acquisitions  made  to  Increase 
the  reserve  of  stocks  of  any  commodity  or  to 
rotate  the  stocks  of  any  commodity  in  order 
to  Insure  quality  of  the  stocks  of  such  com- 
modity shall  be  made  according  to  the  fol- 
lowing priorities : 

(1)  By  transfer  from  Commodity  Credit 
Corporation  owned  stocks. 

(2)  By  offer  to  purchase  from  the  pro- 
ducers of  such  commodity  through  the  offices 
of  the  local  committees,  established  under 
section  8(b)  of  the  Soil  Conservation  and 
Domestic  Allotment  Act.  located  In  the  area 
of  production  of  such   commodity, 

(3)  By  offer  to  purchase  on  the  open  mar- 
ket through  the  offices  of  the  State  com- 
mittees, established  under  section  8(b)  of  the 
Soil  Conservation  and  Domestic  Allotment 
Act. 

The  method  authorized  by  clause  (2)  may  be 
used  only  In  the  event  that  the  method 
prescribed  by  clause  (1)  falls  to  provide  the 
desired  quantities,  and  the  method  author- 
ized by  clause  (3)  may  be  used  only  In  the 
event  that  the  rqipthod  (M-escrlbed  by  clauses 
(1)  and  (2)  fall  to  provide  sufficient  quan- 
tities. 

(b)  Not  less  than  thirty  per  centum  of 
the  total  Inventory  of  «»ch  commodity  ac- 
quired and  stored  pursuant  to  this  Act  shall 
be  stored  In  the  a««a  of  production,  and  not 
less  than  eighty  per  centum  of  that  thirty 
per  centum  shall  be  stored  in  United  States 
Government  owned  facilities. 

Sec.  8.  Except  when  a  state  of  emergency 
has  been  proclaimed  by  the  President  or  by 
a  concurrent  resolution  of  Congress  declar- 
ing that  commodity  reserves  held  by  the 
United  States  under  this  Act  should  not  be 
sold,  the  Secretary  shall  offer  each  commodity 
In  the  reserve  for  sale  at  the  foUowlng  price: 
(1)  one  hundred  and  twenty  per  centum  of 
the  average  price  farmers  received  in  the 
United  States  for  such  commodity  dxulng 
the  preceding  five  marketing  years,  (2) 
except  In  the  case  of  soybeans,  120 
per  centum  of  the  target  price  estab- 
lished pursuant  to  Public  Law  93-86,  or 
(3)  the  mtirket  price,  whichever  is  greater 
The  price  of  the  conxmodlty  concerned  sha:: 
be  ewljusted  to  reflect  the  cusx-cmnry  location 
grade  price  differentials,  and  reasonable  car- 
rying charges  computed  from  the  first  day  of 
the  current  marketing  year  Sales  during  anv 
marketing  year  shall  be  limited  to  the  net 
quantities  by  which  estimated  domestic  con- 
sumption and  exports  exceed  estimated  do- 
mestic production  and  imports:  no  one  buy- 
er or  single  trade  entltv  sha:i  be  permitted  to 
purchase  more  than  ten  per  centum  of  the 
urrent  stocks  of  any  commodity  held  In  re- 
serve under  this  Act. 

(c)  The  Secretary  is  also  authcM-Ued  to  dis- 
pose of  commodities  In  such  reserve  for  the 
following  purposes :  > 


(1)  For  use  In  relieving  distress  (A)  in  any 
State,  the  District  of  Coliunbia,  Puerto  Rloo, 
Ouam.  the  Virgin  Islands,  American  Samoa, 
or  the  Pacific  Trust  Territory,  declared  by 
the  President  to  be  an  acute  distress  area 
because  of  unemployment  or  other  economic 
cause  If  the  President  finds  that  such  use  wUl 
not  displace  or  Interfere  with  normal  mar- 
keting of  agricultural  commodities,  and  (B) 
In  connection  with  any  major  disaster  deter- 
mined by  the  President  to  warrant  assistance 
by  the  Pederal  Govenunent  under  the  Dis- 
aster Relief  Act  of  1970. 

(2)  For  use  In  connection  with  a  state  of 
civil  defense  emergency  proclaimed  by  the 
President  or  the  Congress  \n  accordance  with 
the  provisions  of  the  Federal  ClvU  Defense 
Act  of  1950,  as  amended  (50  U3.C  App.  2251- 
2297). 

(3)  For  use  in  the  preservation  and  main- 
tenance of  foundation  herds  of  cattle  (In- 
cluding producing  dairy  cattle),  sheep,  and 
goats  and  their  offspring,  under  section  407 
of  the  Agricultural  Act  of  1949,  as  amended 

'{7  XJJB.C.  1427),  and  to  provide  feed  for 
livestock  in  any  emergency  area  under  the 
Act  of  September  21,  19^,  as  amended  (7 
U.S.C.  1427,  note). 

(4)  For  use  by  the  President  to  meet 
famine  or  other  urgent  or  extraordinary 
relief  requirements  In  friendly  foreign 
countries. 

Skc.  9.  The  Secretary  may  buy  and  sell 
commodities  at  an  equivalent  price,  allowing 
for  the  customary  location  and  grade  price 
differentials,  substanUally  equivalent  quan- 
tities In  different  locations  or  warehouses  to 
the  extent  necessary  to  properly  handle,  ro- 
tate, distribute,  and  locate  the  commodity 
reserve  authorized  by  this  Act.  The  Secre- 
tary shall  announce  his  intention  to  pur- 
chase to  offset  any  sale  within  two  market 
days  of  the  date  of  such  sale,  and  purchases 
shall  be  made  within  20  market  days  after 
the  announcement. 

Sec.  10.  (a)  The  Secretary  may  accept 
warehouse  receipts  In  lieu  of  takiJjg  physical 
possession  of  any  commodity,  but  In  such 
cases  the  obligor  under  the  warehouse  re- 
ceipt shall  be  requU^d  at  all  times  to  have 
the  grade  stated  on  the  warehouse  receipt 
or  a   better  grade  available  for  delivery. 

(b)  The  Secretary  shall  make  a  daJJv  list 
available  showing  the  price,  location,'  and 
quantity  of  the  transactions  made  under 
this  section. 

Sec.  11.  The  Secretary  shall  use  the  Com- 
modltff  Credit  Corporation  to  the  extent 
feasible  to  fulfill  the  purposes  of  this  Act. 
and  shall,  to  the  maximum  extent  practical 
consistent  with  the  fulfillment  of  the  p-or- 
poees  of  this  Act  and  the  effective  and  effi- 
cient administration  of  this  Act,  utilize  the 
loca;  and  State  committees,  established  un- 
der section  8'b,  of  the  Soil  Conse.'vaUon 
and  I>:.,mest!c  .'iliotment  .^ct.  and  the  usual 
and  custonia-T  channels,  facilities,  and  ar- 
rangements of  trade  and  commerce 

Sec.  12  The  Secretary  sha::  mate  a  r»^ 
port  to  Congress  prior  to  Februar-.  :5  .if  each 
year  which  shai;  l:;c:ude  therein  the  quan- 
tlty  of  each  commodity  owned  and  stored 
pursuant  to  the  provisions  of  this  Act,  the 
location  of  the  sto.-ed  con;moditles.  inciud- 
mg  the  quantity  at  each  location,  an  Item- 
ized :istlng  of  purchase?  and  sa:es  made 
during  the  prior  rear.  Including  the  co.m- 
modlty,  buyer  or  seller,  quantity,  price  and 
such  other  data  as  may  be  neceasa.'^-  to  de- 
termine the  effectiveness  of  the  program 
provided  for  under  this  Act 

Sec.  13  ai  The  Se.:retaj->  and  the  Secre- 
tary of  State  sha::  per; icipat*  to  the  fullest 
extent  practlcab:e  with  appropriate  Inter- 
nationa; orgsnlzations.  including  the  Pood 
and  Agriculture  Organization  of  the  United 
Nations,  In  an  effort  to  establish  and  mafn- 
taln  world  resen-e«  of  basic  food  com- 
modities. 

(b)    In  connection  with  any  action  tater. 


42386 


under  subaeAlon  (a),  the  Secretary  and  the 
Secretary  of  State  shall  conduct  a  study  to 
determine  the  feasibility  of  the  United  States 
providing  fluanclal  assistance  and  of  the 
World  Bank  providing  financial  assistance 
to  carry  out  a  program  to  establish  and 
maintain  world  reserves  of  basic  food  com- 
modities. Including  Increased  storage  facili- 
ties in  othor  countries  for  the  storage  of 
such  commodtU^s. 

(C)  The  S«eretary  and  the  Sccretarj-  of 
State  shail^ubmit  a  Joint  report  to  the 
Congress  wfthin  one  year  after  the  date  of 
enactment  of  thU  Act  setting  forth  the  re- 
sults of  actions  taken  under  subsection  (a) 
and  the  results  of  the  study  conducted  pur- 
suant to  subsection  (b'.  Thereafter  they 
shall  submit  a  Joint  report  to  the  Congress 
each  year  describing  any  actions  taken  un- 
der subsection  (a)  together  with  any  rec- 
ommendations  they   deem   approprU>te 

Sec.  14.  There  is  hereby  authorized  to  be 
appropriated  such  sums  as  may  be  necessary 
to  carry  out  the  provisions  of  this  Act. 


CONGRESSIONAL  RECORD  —  SENATE 


By  Mr.  TAFT   (for  himself  and 

Mr.  Pell^  : 
S.  2832.  A  bill  to  provide  persons  who 
unlawfully  failed  to  register  for  the  draft, 
or  who  unlawfully  avmded  mili*ar>  serv- 
ice, with  an  opportunity  to  earn  immu- 
nity from  prosecution  and  punishment 
for  such  offenses,  and  for  other  purposes. 
Referred  to  the  Committee  on  the  Judi- 
ciary, by  mianimous  twnsent. 

THE    E.UiNEO    iiMMCNITY    ACT    O?     1974 

Mr.  TAFT.  Mr.  President.  I  a-^k  unain- 
mous  coment,  out  of  order,  to  introduce 
a  bill  dealing  with  the  Selective  Service 
Act  and  that  the  bill  be  referred  to  the 
Committee  on  the  Judiciary. 

Mr.  President,  it  is  understood  that  if 
and  when  this  bill  is  reported  from  the 
Judiciary  Committee,  the  Armed  Serv- 
ices Committee,  under  whose  jurisdiction 
it  would  normally  fall,  may  want  to  take 
a  look  at  it.  Should  that  be  the  case,  nec- 
essary steps  will  be  taken  to  aUow  the 
Armed  Services  Committee  to  take  a  look 
at  it. 

The  PRESIDING  OFFICER  (Mr  Cur- 
tis) .  Without  objection,  it  Is  so  ordered. 
Mr.  TAPT.  Mr.  President,  on  Decem- 
ber 14.   1971.  I  introduced  S.  3011.  the 
Amnesty  Act  of  1972.  That  bill  offered  a 
procedure  of  resolving  the  very  diflQcult 
and   very    practical   problem   of   many 
young  Americans  who  are  in  prison,  over- 
seas, or  living  undergroimd  In  the  United 
States  because  of  their  resistance  to  the 
Vietnam   draft.   As   I  indicated   before, 
many  of  these  draft  resisters  have  been 
victims  of  bad  judgment  and  poor  advice. 
Others,  however,  have  acted  out  of  deep 
personal  objection  to  the  cause  which 
our  country  followed  as  the  United  States 
became  involved   in   the   Vietnam  war. 
Unfortimately,  S.  3011  was  not  acted 
upon  in  the  92d  Congress  as  it  was  not 
considered    by    the    Subcommittee    on 
Criminal  Laws  and  Procedures  of  the 
Judiciary  Committee.  However,  the  same 
questions  remain  before  the  country  to- 
day. Will  we  offer  these  young  men  an 
opportunity  to  become  productive  citi- 
zens in  their  country?  Is  it  more  in  the 
Interest  of  the  country  to  have  them 
spend  time  in  jail  and  In  exile  or  to  have 
them  serve  their  country  through  some 
type    of    alternative    service,    such    as 
VISTA? 
Senator  Pzll  and  I  believe  these  yoimg 


men  should  be  provided  w*fh  an  altema- 
KUve  other  than  prison  or  exile  and  there- 
fore, are  Introducing  today  the  Earned 
Immunity  Act  of  1974.  This  legislation, 
while  patterned  after  our  proposal  in  the 
92d  Congress,  does  contain  some  signifi- 
cant changes  In  that  it  would  require  2 
years  of  alternative  service,  as  compared 
to  3  in'S.  3011.  Further,  it  would  create 
an  Immunity  Review  Bjard.  pattemad 
after  tlie  procedure  implemented  by 
President  Truman  in  194S  after  World 
War  n.  This  board  would  be  composed 
of  five  members  appointed  by  the  Presi- 
dent with  the  advice  and  consent  of  the 
Senate.  Of  tlie  five  mcm>:ers.  four  would 
be  nominated  by  the  President  from  indi- 
viduals recommended  by  the  majority 
..nd  minority  leaders  of  the  Senate  and 
the  Speaker  and  minority  leader  of  the 
House  The  duration  of  the  Board  wculd 
be  foi»'4  years  with  the  President  ap- 
pointing the  chairman. 

It  is  important  to  note  that  ♦h?  Board 
could  only  review  violations  of  the  Mill- 
tar\-  Selective  Ser\ice  .\ct  froin  August  4. 
1964 — the  date  of  approval  or"  th?  Gulf 
of  Tcrkin  resolution— to  Januars'  27. 
1973 — the  date  of  the  Paiis  Peace 
Agreement.  Any  indi\idual  falling  into 
this  category  would  have  1  year  from  the 
effecUve  dc»t3  of  the  act  to  present  him- 
self to  the  Beard. 

Our  proposal  do: ..  not  Involve  unquali- 
fied amnesty  for  draft  dodgei-s  and  de- 
serter.5.  Quite  frankly,  we  would  serious- 
ly question  surh  an  approach.  We  be- 
lieve th-^t  deserters  should  not  be  en- 
compassed within  such  legislation  for 
several  reasons. 

First,  those  who  are  In  the  m-litary  are 
under  the  Code  of  Military  Justice  which 
involves  an  entirely  different  system  of 
law  and  procedure  than  those  who  are 
merely  draft  resisters. 

Second,  thot^e  who  leave  the  military 
and  particularly  those  who  leave  combat 
units,  have  a  far  more  disruptive  impact 
on  our  Nations  defense  posture  than 
those  who  merely  fail  to  show  up  at 
the  induction  center. 

Finally,  and  most  critically,  the  mili- 
tary estimates  that  less  than  5  percent 
of  those  who  desert  do  so  for  ideological 
reasons.  Some  young  men  desert  because 
they  get  Into  trouble  with  an  officer,  com- 
mit a  crime  on  the  military  base,  or  get 
into  difficulty  with  civilian  authority 
near  a  military  base.  A  blanket  amnesty 
that  would  include  all  deserters  v,ould  be 
unfair.  ai:d  very  dL^ruptlve  of  military 
discipline. 

Prom  July  1.  1966.  through  Jime  30. 
1971.  for  example,  there  were  354,429 
deserters.  Desertion  is  defined  adminis- 
tratively as  being  absent  without  leave 
for  30  consecutive  days  or  more.  Of  this 
number.  319.168  were  returned  to  mili- 
tary control  as  of  September  1971.  Those 
who  would  advocate  amnesty  for  desert- 
ers, in  my  judgment,  fall  to  appreciate 
the  extensive  number  of  deserters  In- 
volved, the  reasons  for  their  desertion, 
and  the  fact  that  very  few  are  related  to 
an  ideological  opposition  to  the  war. 

I  believe  that  it  would  be  a  great  mis- 
take to  grant  unqualified  amnesty  with- 
out any  service  requirement.  I  recognize 
that  there  are  some  Americans  who  be- 
lieve that  draft  resisters  should  be  wel- 


December  19,  1973 


corned  back  to  our  country  as  heroes  with 
a  tickertape  parade.  Certainly  there  are 
others  who  believe  that  they  should  be 
shot  on  sight  In  my  judgment,  the  sensi- 
ble approach  is  to  OiTer  tliese  young  men 
an  opportunity  to  earn  their  readmisslon 
to  American  society.  Such  a  service  obli- 
gation recognizes  the  ii.debtedness  which 
they  have  to  their  country.  In  addition,  a 
service  requirement  recognizes  that  many 
who  served  in  Vietnam  aud  died  in  Viet- 
nam were  just  as  opposed  to  the  war  as 
those  who  went  to  Canada.  Since  we  im- 
pose a  service  requirement  on  our  con- 
scientious objectors,  I  see  no  reason  why 
thosp  who  fled  the  country  should  be 
permitted  to  cope  back  without  under- 
taking the  same  lype  of  service  which  cur 
conscientious  objectors  have  performed. 
The  case  for  qualified  service  becomes 
compelling  when  one  conslde/s  the  ef- 
fect of  the  change  in  our  Selective  Serv- 
ice Law  in  1970.  Until  the  U.S.  Supreme 
Court  decided  Wel..h  against  United 
States,  on  June  15  of  that  year.  Individ- 
uals seeking  conscientious  objector  status 
had  to  raise  their  objection  in  reflation 
to  their  belief  in  a  Supreme  Being.  When 
tne  Supreme  Couit  ruled  that  a  belief  in 
a  Supreme  Being  was  no  longer  required, 
and  that  other  deep-felt  personal  views 
could  suffice,  obvious  inequities  became 
evident. 

In  one  family,  two  brothers  might  have 
held  the  same  deep  felt  opposition  to  war. 
The  elder  son.  who  became  draft  eligible 
before  the  Welsh  decision,  could  not  have 
Deen  classified  as  a  conscientious  ob- 
jector and  might  have  gone  to  prison  or 
into  exile.  His  younger  brother,  holding 
exactly  the  same  views  on  war.  could 
have  become  a  conscientious  objector.  He 
would  not  be  a  criminal,  and  could  be 
lawfully  serving  his  country  in  alterna- 
tive service. 

Is  it  really  fair  for  us  to  treat  the 
elder  brother  as  a  criminal  and  the  other 
brother  as  a  lawful  citizen?  I  think  not. 
Because  over  55.000  young  Americans 
have  lost  their  lives  and  many  more 
were  wounded  serving  their  country  in 
Southeast  Asia,  we  should  not  grant  am- 
nesty to  draft  resisters  without  requiring 
them  to  perform  alternate  service  for 
America.  But  it  would  also  be  a  great 
mistake  for  us  to  forever  foreclose  those 
who  seek  to  change  their  status  from 
participating  in  American  life. 

Those  who  are  In  the  military  are 
under  the  Code  of  Military  Justice  which 
involves  an  entirely  different  system  of 
law  and  procedure  than  those  who  are 
merely  draft  resisters. 

A  Gallup  poll  commissioned  for  News- 
week Indicates  that  while  only  7  percent 
of  AmrriTans  favor  unqualified  amnesty, 
and  while  only  22  percent  of  Americans 
oppose  amnesty  In  any  form,  63  percent 
of  Amer^ans  favor  a  qualified  amnesty 
with  a  service  requirement  such  as  I  have 
proposed. 

The  Earned  Immunity  Act  of  1974 
would  permit  draft  registers  to  be  re- 
leased from  prison  or  returned  to  the 
United  States  if  they  agreed  to  serve 
their  country  for  a  period  of  2  years. 
They  could  serve  America  as  members  of 
our  Armed  Forces  or  they  could  elect 
to  serve  in  alternative  service.  The  alter- 
native service  could  be  in  the  public  or 


^ 


December  19,  1978 


CONGRESSIOxN AL  RECORD  —  SENATE 


42387 


"^ 


private  sector  as  long  sis  such  service 
was  approved  by  the  Board.  Because  of 
the  strength  of  our  country,  I  believe 
America  should  give  these  young  men 
an  opportunity  to  return  home  and  make 
positive  contributions  to  our  country. 

I  realize  there  will  be  those  in  the 
country  that  may  abuse  us  for  even  of- 
fering such  a  proposal  and  question 
whether  we  have  lost  all  sen.se  of  patriot- 
ism. I  feel  this  is  unfortunate  and  would 
ask  such  Individuals  to  focus  closely 
upon  what  we  have  proposed.  Further, 
I  would  ask  such  individuals  to  consider 
the  virtue  of  forgriveness,  especially  at 
this  time  of  year. 

I  ask  unanimous  consent  that  the 
Earned  Immunity  Act  of  1974  be  printed 
in  its  entirety,  and  that  a  memorandum 
that  my  staff  has  prepared  stating  the 
general  objectives  that  Senator  Pei.l  and 
I  have  with  regard  to  this  legislation 
also  be  printed  in  the  Record. 

There  being  no  objection,  the  bill  and 
memorandum  were  ordered  to  be  printed 
in  the  Record,  as  follows: 
8.  2832 

Be  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  United  States  of 
America  in  Congress  assemhled.  That  this 
Act  may  be  cited  as  "The  Earned  Immunity 
Act  of  1974". 

Sec.  2.  (a)  Notwithstanding  any  other 
provision  of  law.  any  person  who,  subse- 
quent to  August  4.  1964.  and  prior  to  Janu- 
ary 27.  1973.  unlawfully  faUed  to  register  un- 
der the  Military  Selective  Service  Act  or 
failed  to  comply  with  a  lawful  Induction 
order  fcr  service  in  the  Armed  Forces  of  the 
United  States  may  secure  immunity  from 
prosecution  and  punishment  for  offenses 
described  in  section  12  of  the  Military  Selec- 
tive Service  Act  and  other  related  offenses 
If  such  person  completes  the  period  of  pub- 
lic service  hereinafter  prescribed.  To  be  eligi- 
ble for  Immunity  under  this  Act,  an  appli- 
cant shall — 

(1)  present  himself  by  individual  appear- 
ance, or  that  of  an  attorney  at  law  or  famUy 
member  to  the  Immunity  Review  Board 
(established  pursuant  to  section  4(a)  of  this 
Act)  no  later  than  one  year  after  the  effec- 
tive date  of  this  Act  at  such  place  and  In 
such  manner  as  may  be  required  In  regula- 
tions Issued  pursuant  to  section  4(a)  of  this 
Act; 

(2)  enter  into  a  written  agreement  with 
the  Immunity  Review  Board  under  which  the 
applicaMt  agrees,  in  Return  for  Immunity 
upon  completion  of  the  full  performance  of 
the  agreement,  to  enlist  and  agree  to  serve 
two  years  In  the  Armed  Forces  of  the  United 
States,  or  up  to  two  years  in  such  alterna- 
tive service,  public  or  private,  contributing 
to  the  national  health,  safety,  or  welfare  as 
may  be  appro-,  ed  by  the  Immunity  Review 
Board,  Including,  but  not  limited  to,  service 
In  Public  Health  Service  hospitals,  VISTA, 
and  the  Peace  Corps,  except  as  such  term 
may  be  othervlss  decreased  by  the  Board 
pursuant  to  section  4:  and 

(3)  agree  to  compensation  for  such  period 
adequate  to  provide  a  standard  of  living 
reasonably  comparable  to  that  which  the 
same  man  would  have  enjoyed  If  he  entered 
the  Armed  Forces  of  the  United  States  at 
the  lowest  pay  grade  without  promotion  and 
otherwise  comply  with  such  regulations  as 
to  compensation  as  are  promulgated  by  the 
Immunity  Review  Board  established  pur- 
suant to  section  4(e)    of  this  Act. 

(b)  During  the  term  of  any  agreement  en- 
tered Into  by  any  person  pursuant  to  sub- 
section (a)  (2),  the  United  States  shall  with- 
hold any  administrative  or  judicial  action 
to  pis>6ecute  such  person  for  any  violation  o^ 


auy  law  referred  to  in  such  agreement,  and 
any  applicable  statute  of  limitations  shall 
be  tolled  dviring  the  period  such  agreement 
is  In  effect. 

(c)  The  willful  faUure  of  any  person  to 
complv  with  any  term  of  an  agreement  en- 
tered Into  under  this  Act  shall  constitute 
grounds  for  termination  of  such  agreement 
by  the  United  States.  Such  termination  cf 
the  agreement  shall  void  any  conditional 
grant  of  Immunity  made  under  this  Act.  but 
any  evidence  accumulated  by  or  submitted 
to  said  Immunity  Review  Board  shall  not  be 
released  to  any  governmental  agency. 

Sec.  3.  Any  person  otherwise  eligible  for 
Immunity  under  this  Act  who  Is  under  In- 
dictment, who  has  been  convicted,  or  who 
is  serving  a  prison  sentence  arising  out  of 
conduct  described  In  section  2  of  this  Act 
shall  be  eligible  to  earn  Immunity  hereunder. 
Including  the  revocation  of  any  Judgment  of 
conviction,  termination,  or  suspension  of  any 
action  upon  any  Indictment  heretofore  en- 
tered; but  any  person  subject  to  the  Uniform 
Code  of  Military  Justice  (chapter  47  of  title 
10.  United  States  Code)  shall  not  be  entitled 
to  earn  Immunity  from  the  sentence  or  other 
punishment  Imposed  by  any  military  court 
under  such  Code. 

Sec.  4.  (a)  There  is  hereby  established  a 
board  which  shall  be  known  as  the  Im- 
munity Review  Board  (hereinafter  referred 
to  Mtthe  "Boerd").  The  Board  shall  be  em- 
po^wred  to  execute  such  agreements  neces- 
sary to  effectuate  the  p\.UT>oses  of  this  Act 
and  to  determine  the  length  of  service,  if 
any.  required  hereunder  to  earn  immunity 
m  accord«ince  with  Individual  circumstances. 
The  Board  shall  be  empowered  to  issue  rules 
and  regulations  to  effectuate  the  Congres- 
sional Intent  manifested  herein  and  such 
rules  and  regtUatlons  shall  be  promulgated 
in  accordance  with  chapter  5  of  title  5, 
United  States  Code. 

(b)  The  Board  shall  be  composed  of  five 
members  appointed  by  the  President,  with 
the  advice  and  consent  of  the  Senate,  four 
of  whom  shall  be  appointed  as  follows — 

(1)  One  member  shaU  be  appointed  from 
among  individuals  reoomn^nded  by  the  ma- 
jority leader  of  the  Senate.  ' 

(2)  One  member  shall  be  appointed  from 
among  individuals  recommended  by  the 
Speaker  of  the  House  of  Representatives. 

(3)  One  member  shall  be  appointed  from 
among  Individuals  recommended  by  the 
Minority  Leader  (>f  the  Senate. 

(4)  One  member  shall  be  appointed  from 
among  individuals  recommended  by  the 
Minority  Leader  of  the  House  of  Representa- 
tives. 

A  vacancy  on  the  Board  shall  be  filled  in  the 
manner  In  which  the  original  recommenda- 
tion was  made.  Members  shall  be  appointed 
for  the  life  of  the  Board. 

(c)  Members  of  the  Board  shall  each  be 
entitled  to  receive  an  annual  salary  and  re- 
imbursement for  expenses  equal  to  the  an- 
nual salary  and  expenses  payable  to  a  United 
States  district  court  Judge. 

(d)  Three  members  of  the  Board  shaU  con- 
stitute a  quorum.  The  Chairman  of  the  Board 
shall  be  selected  by  the  President  from  among 
members  of  the  Board. 

(e)  The  Board  shall  have  power  to  appoint 
and  fix  the  compensation  of  such  personnel 
as  It  deems  advisable,  without  regard  to  the 
provisions  of  title  5,  United  States  Code,  gov- 
erning appointments  In  the  competitive  serv- 
ice, and  without  regard  to  the  provisions  of 
chapter  51  and  subchapter  HI  of  chapter  53 
of  such  title  relating  to  classification  and 
General  Schedule  pay  rates,  but  at  rates  not 
In  excess  of  the  maximum  rate  for  OS-18  of 
the  General  Schedule  under  section  5332  of 
such  title. 

(f  r  ^ach  department,  agency,  and  instru- 
mentality of  the  executive  branch  of  the 
government,  including  independent  agen- 
cies, is  authorized  and  directed  to  furnish 


to  tlie  Board,  upon  request  made  by  the 
Chairman,  such  Information  as  the  Board 
deems  necessary  to  carry  out  its  functions 
under  this  Act. 

Sec.  5.  (a)  The  Board  shall  designate  one 
or  more  of  Its  members  to  study  each  ap- 
plication filed  with  it  under  this  Act  and 
such  member  or  members  shall  make  a  rec- 
ommendation to  the  full  Board.  Prior  to  the 
•  final  decision  by  such  Board,  the  applicants 
T  must  be  timely  furnished  with  a  written  copy 
of  such  recommendations  and  shall  have  the 
opportunity  to  submit.  In  accordance  with 
regulations  and  procedures  established  by  the 
Board,  any  additional  statements  he  deems 
appropriate  The  decision  of  a  majority  of 
the  Board  determining  the  period  needed  to 
earn  immunity  shall  be  a  final  determination 
not  subject  to  Judicial  review  In  any  form, 
notwithstanding  any  other  provision  of  law. 

(b)  The  Board  shall  determine  the  length 
of  alternative  service  to  be  Included  In  any 
agreement  consummated  In  accordance  with 
section  2  of  this  Act  when  the  applicant 
demonstrates  to  the  satisfaction  of  the 
Board  that : 

(1)  At  the  time  the  applicant  performed 
the  acts  for  which  he  now  seeks  immunity 
he  WEis  erroneously  convinced  by  himself 
or  others  that  he  was  not  then  or  would 
not  be  In  violation  of  the  Military  Selective 
Service  Act  by  his  action; 

(2i  The  applicant  could  have  qualified  for 
classification  as  a  conscientious  objector 
under  the  decisions  of  the  United  States  Su- 
preme Coiut  prevailing  at  the  end  of  the 
time  period  set  forth  In  section  2(a); 

(3)  A  member  of  the  applicant's  Ifiimedl- 
ate  family  is  now  In  desperate  need  of  his 
personal  presence  for  which  no  other  sub- 
stitute could  be  found,  and  such  need  was 
not  of  his  own  creation; 

(4)  The  applicant  demonstrates  a  l£w:k  of 
mental  capacity  which  might  have  rendered 
his  acts  less  than  willful;  ^ 

(5)  The  applicant  has  been  In  the  M&st,  or 
Is  currently,  subject  to  Judicial  sanctldi^for 
committing  offenses  for  which  he  seeksN^- 
munlty;  or  ^^i 

(6)  Sueh  other  circumstances  as  ejce  con^ 
slstent  with  the  principles  expfessed  herein. 

(c)  Nothing  in  subsection  (b)  of  this  sec- 
tion shall  authorize  the  decrease  In  a  term  of 
service  solely  because  of  selective  opposition 
to  United  States  military  actions  in  South- 
east Asia,  It  being  the  sense  of  Congress  that 
the  full  terms  of  service  required  by  section 

2    (a)    shall   be   required   to  earn   ImmunJfC^^ 
from  prosecution  or  punishment  under  such 
circumstances. 

(d)  Any  assignment  of  alternative  service 
pursuant  to  this  Act  shall  not  Interfere  with 
the  competitive  Job  market  by  assigning  a 
person  In  a  capacity  for  which  there  are 
Gfther  qualified  apUcants  not  subject  to  this 
Act.  nor  shall  assignments  of  alternative 
service  pursuant  to  this  Act  be  permitted  to 
prejudice  in  any  manner  the  employment  op- 
portunities for  Individuals  who  have  served 
in  the  Armed  Forces  of  the  United  States. 

Sec.  6.  This  Act  shall  not  apply  in  the  case 
of  any  person  otherwise  eligible  for  Immunity 
If  such  person  (1)  Is  serving  a  prison  sen- 
tence for  an  offense  not  described  In  section 
2  of  this  Act  or  is  scheduled  to  serve.  Im- 
mediately after  completion  of  his  sentence 
fcr  an  offense  described  In  section  2  of  this 
Act.  a  prl-son  term  for  any  other  offense  for 
which  he  has  been  convicted,  or  (2)  Is  under 
Indictment  tor  any  offense  for  which  Im- 
munity may  not  be  granted  under  this  Act. 

Sec.  7.  All  r^erences  in  this  Act  to  the 
Military  Selective  Service  Act  shall  be 
deemed  to  Include  reference  to  prior  corre- 
■5T5ondlnp  Acts  and  other  statutes  of  the 
United  States  whose  applicability  depend 
upon  the  activities  forjphlch  the  applicant 
seeks  Immunity  under  t^ls  Act  from  prose- 
cution or  punishment  under  an  aereement 
by  and  between  applicant  and  the  Board. 


42388 


CONGRESSION.\L  RECORD  — SENATE 


Sk.  8.  The  Botutl  ahaJl  ceaM  to  exist  four 
yean  after  the  effective  date  of  thl«  Act. 

3sc.  9.  The  provlalona  of  thta  Act  aliaU  not 
be  construed  as  an  attempt  to  affecMn  any 
way  the  power  of  the  President  under  section 
a  of  Article  U  of  the  Constitution  to  grant 
reprieves  and  pardons  for  any  offense  re- 
ferred to  in  section  2  of  this  Act. 

Smc.  10.  (a)  There  are  authorized  to  be  ap- 
propriated such  sums  as  may  be  necessary 
to  carry  out  the  provisions  of  this  Act. 

(b)  The  Board  shall  reimburse  any  de- 
partment or  agency  of  the  Oovemment  for 
the  salary  and  other  Incidental  expenses  In- 
CTirred  by  such  department  or  agency  in 
utUlzlng  the  services  of  persons  assigned  to 
perform  alternative  service  under  this  Act. 

3«c.  11.  If  any  provision  of  this  Act.  or  the 
application  of  such  provUlon  to  any  person 
or  circumstances,  shaU  be  held  Invalid,  the 
remainder  of  this  Act.  or  the  application-  of 
such  provisions  to  persons  or  circumstances 
other  than  those  as  to  which  it  is  held  In- 
valid, shall  not  be  affected  therebv 

8bc  12.  This  Act  shall  become  effective  60 
days  after  date  of  enactment. 

"Thx  Easvtd  IMMT7^^TT  Act  or  1974":  S«c- 

TT0N-BT-Srcn0I»       AlTAI.ysi8       BT       S»K4T01 

RoBHW  Taft,  Jr.     '^ — ^ 

I-  Ftrapoers  op  the  act 
A.  Introduction 

On  January  37,  1973.  the  United  States  of 
America  entered  upon  a  new  era  in  Its  rela- 
Uonshlp  to  the  hostlliues^in  Indochina.  At 
that  time,  as  a  res\Ut  of  estenslve  negotla- 
Uons.  a  series  of  agreements  was  entered 
Into  which  has  enabled  the  United  States 
to  repatriate  its  prisoners  of  war  in  that 
area  ar.d  fulflU  its  pledge  to  bring  about  a 
cease-flre  and  peace.  Because  of  these  con- 
ditions. It  is  now  appropriate  to  reconsider 
the  sltuaOpn  of  those  persons  who  have 
failed  to  register  for  selective  service,  failed 
to  comply  with  a  lawful  Induction  order,  or 
otherwise  disregarded  the  duties  placed  upon 
them  with  respjsct  to  repcrtln*  for  miUtarr 
service' 

B.    Those   persons   who   have   evaded    prose- 
cution    /or     selective     service     violations 
should    be    granted    immunity    upon    the 
completion  of  a  contractual  obligation  for 
compensatory   personal  service 
In  the  92nd  Congress.  I  introduced  Sen- 
ate BUI  3011,  which  addressed  itself  to  this 
problem  in  a  preliminary  manner.  As  I  had 
hoped.    It   provoked    considerable    discussion 
and  I  hope  the  country  has  benefited  from 
the    many    comments,    both    pro    and    con 
which  have  been  made  about  my  original  bUl' 
I  am  particularly  gratefxU  for  the  thought- 
ful and  serious  commer.ts  which  have  been 
made  in  a  series  of  I^iw  review  articles  « 

As  a  result  of  the  discussions  which  Sen- 
ator Pell  and  myself,  together  with  our  sUffs 
have  held,  we  now  feel  that  we  are  Ln  a 
position  to  suggest  to  the  Senate  the  "Earned 
Immunity  Act  of  1974"  which  embodies,  w« 
believe,  a  responsible  resolution  of  the  in- 
herent conHlct  between  the  demand  for 
total  amnesty  and  the  demand  for  total 
punlshmenC^We  subscribe  to  neither  end 
and  believe  \fejir  blU  reflects  that  commit- 
ment » 

The  purpoee  of  the  leglaUtlon.  aa  stated 
in  the  purpoee  clause.  U  to  offer  the  oppor- 
tunity to  men  faUlng  within  the  claM  to 
earn  Immunity  from  prosecution  and  punish- 
ment under  the  MUltary  Selective  Service 
Act.  As  la  set  forth  In  Section  3(a)  of  our 
bill,  only  thoee  person*  who  took  unUwful 
actions  under  that  Act  between  August  4, 
19«4.  and  January  27.  1973,  are  eligible  to 
seek  Immunity  from  proeecutlon  and  pxinlah- 
ment.  Furthermore,  such  immunity  arises 
only  upon  the  completion  by  such  Individual 
of  the-  term*  of  a  written  agreement  which 

Footnote*  at  end  of  article 


December  19,  1978 


such  applicant  undertakes  with  the  United 
States.  Under  that  written  agreement,  the 
applicant  would,  in  return  for  immunity 
upon  completion  of  full  performance,  agree 
to  enlist  and  serve  for  up  to  3  yean  in  the 
Armed  Faroes  or  up  to  two  years  in  alterna- 
tive aervloe.  public  or  private,  contributing 
to  the  national  health,  safety  or  welfare. 

n.    A)fAX.TSIS 

A.  The  Immunity  Review  Board 
1.  The  Immunity  Review  Board  ahaU  deter- 
mine the  conditions  by  which  each  appli- 
cant shall  obtain  Immunity 

This  Act  contemplates  the  creation  of  an 
"Immunity  Review  Board,"  which  we  have 
deliberately  modeled  as  an  analogy  to  a  board 
utilised  by  President  Trxmmn.'  Sections  3(a) 
and  3  of  the  Act  set  forth  the  general  class 
of  persons  ell^ble  for  Immunity,  and  the 
general  conditions  prerequisite  to  obtaining 
said  grant.  Section  4(a)  establishes  the 
Board,  and  delegates  to  It  the  authority  to 
determine,  on  a  case  by  case  basis,  the  con- 
ditions which  each  applicant  must  fulfill  In 
order  to  gain  Immunity.  Section  3  permits  In- 
dividuals currently  subject  to  Judicial  sanc- 
tions for  violations  of  the  Selective  Service 
Act  to  similarly  obtain  Immunity  through 
the  Board  from  the  further  imposition  of 
sanctions. 

3.  Congress  is  empowered  to  create  the  Im- 
munity Review  Board  and  delegate  to  It  the 
authority  to  grant  immunity 
There  can  be  no  question  that  Congress  has 
the  Constitutional  authority  to  enact  legis- 
lation permitting  certain  classes  of  Individ- 
uals to  obtain  immunity  from  criminal 
prosecution.  It  is  clear  that,  Just  as  the  Presi- 
dent may  grant  reprieves  and  pardons  to  par- 
ticular Individuals,'  Congress  may  immunize 
a  general  class  of  individuals  from  proeecu- 
tlon.»  For  example.  In  1866.  Congress  directed 
the  President  to  Issue  a  proclamation  an- 
nouncing a  pardon  for  all  deserten  who  re- 
turned to  their  posts  within  suty  days.' 

This  legislative  power  of  immunity  has 
also  been  exerelsed  numerous  times  where 
It  has  been  considered  necessvy  to  obtain 
testimony  Ln  connection  with  criminal  in- 
vestigations.' The  responslbUlty  to  determine 
which  persons  should  be  granted  this  Im- 
munity has  variously  been  placed  in  federal 
agencies,  prosecuton.  and  Congressional 
committees.* 

Congress  also  has  the  undisputed  power  to 
modify  the  terms  and  condiuons  of  Judicial 
sanction!  Imposed  on  those  convicted  of 
crimes.  This  authority  has  been  delegated 
to  the  Pedenl  Board  of  Parole,  granting  that 
Board  broad  discretion  in  determining 
whether  It  !»hould  mitigate  or  alter  the  form 
of  punishment  Impoaed.*  The  authority  ex- 
ercised by  the  Board  of  Parole  Is  probably  the 
most  common  use  of  our  legislative  power  of 
immunity. 

The  duties  and  powera  of  the  Immunity 
Review  Board  partake  of  all  three  of  the 
foregoing  examples  This  Board  U  empowered 
to  deal  with  all  membere  of  the  specified 
class  of  persons  to  whom  Congress  has  ex- 
tended this  conditional  offer  of  immunity. 
The  Board  shall  promulgate  rules  and  regu- 
lations, and  pursuant  to  them  consider  the 
merits  of  each  individual  case.  The  Board 
shall  then  offer  appropriate  conditions  of 
service  to  each  applicant,  the  fulfillment  of 
which  aball  entlile  that  Individual  to 
Immunity. 

B.  The  Board  shall  utilize   the  grounds  net 
forth  in  the  Act  in  determining  the  appro- 
priate length  of  senxce 
Section  5  of  the  Act  sets  forth  the  grourds 
which  we  believe  the  Immunity  Review  Board 
should  consider  In  determining  ;  he   appro- 
priate   length    of    service    required    for    an 
applicant  to  gain  immunity.  One  example  of 
the  grounds  that  the  Imanunity  Review  Board 
might  consider   in   mitigation   is  that   of  a 
pervon   who   thought   he   would   have   been 


required  to  perform  military  service  but.  In 
faot.  he  would  not  have.  The  usefulness  at 
the  Immunity  Review  Board  In  thu  context 
would  be  that  each  person  would  have  the 
opportunity  to  present  his  individual  case 
before  the  terms  of  the  agreement  would  be 
axed. 

The  second  ground  for  consideration  by  the 
Immunity  Review  Board  deals  with  the  pos- 
sibility   that   the   applicant   could   hav«   se- 
cured  classification   as   a   conscientious   ob- 
jector.   The    United    States   Supreme    Court, 
throughout  the  Indochina  period,  gradually 
broadened  Its  definition  of  conscientious  ob- 
jector. As  a  result,  one  who  applied  in  1973 
could  have  sec\ired  that  ciasslflcatlon.  where- 
as  the   same    individual,    applying    in    1964, 
could  not  have."*  We  have  no  Ulu.tion*  about 
the   dlfflcultlaa   involved   In  adhiinL-iterlng  a 
procedure  which  takes  Into  account  chang- 
ing   Judicial    standards.    Nevertheless,    it    Is 
our  feeling  that  any  person  who  could  have 
qualified  as  a  conscientious  objector  on  Jan- 
uary 27,   1973  should  be  permitted  to  have 
that  fact  considered  In  Judging  the  length 
of  time  he  would  be  required  to  serve  under 
his  agreement  in  order  to  secure  Immunity 
from  violation  of  law.  It  may  be  appropriate 
at   this  point  to   mention   that  we  do  not 
believe    that   it    Is    possible    to   Instruct   the 
Immunity  Review  Byu-d  on  how  much  weight 
to  give  to  any  one  particular  factor.  This  does 
not  result  from  any  desire  on  our  part  to 
delegate    our    legislative    function,    but.    In- 
stead,   It   demonstrates  our   belief   that   the 
confusion  a.-;d  controveny  surrounding  this 
matter   requires  a   qualified   and   thorough 
analysis.    To    that    end.    the    legislation    In- 
structs the  Immunity  Review  Board,  In  Sec- 
tion 4(a).  to  issue  rules  and  regulations  In 
accordance   with   the   Administrative   Proce- 
dure Act  to  effectuate  these  purposes."  We 
would  anticipate  that  the  Immunity  Review 
Board  would  give  serious  consideration  to  the 
Congressional    criteria   and   would   establish 
rules  based  upon   their  experience  and  re- 
view. 

The  third  ground  set  up  by  our  legislation 
Is  the  existence  of  an  overwhelming  need  for 
the  personal  pre.ence  of  the  applicant  with 
his  family  We  can  conceive  of  situations 
where  such  need  results  from  illness  In  the 
famUy  where  the  person  should  be  released 
Immediately  from  any  further  obligation  to 
earn  the  Immunity  However,  It  la  not  In- 
conceivable that  the  Immunity  Review  Board 
could  accept  a  deferred  contractual  obliga- 
tion In  appropriate  cases 

The  fourth  Congressional  crlterlum  set 
forth  In  our  legislation  deals  with  the  prob- 
lem of  lack  of  mental  capacity  at  the  time  of 
the  alleged  unlawful  activity  It  Is  entirely 
poeslble  that  there  are  groups  of  men  of  low 
mental  capacity  who.  through  peer  pressure 
or  otherwise,  took  action  which,  upon  full 
examination,  provides  a  basts  for  mitigation 
of  the  length  of  service. 

The  flfth  ground  provides  for  those  persons 
who  are  preaenOy  being  punished  for  Selec- 
tive Service  Act  offenses.  Such  persons  who 
have  already  served  time  in  prisons  or  periods 
of  probation  and  'or  parole  may  apply  to  the 
Board  f'JT  Immunity  from  further  such  treat- 
ment The  Board  should  take  this  past  pun- 
ishment into  account  when  fashioning  the 
terms  of  agreements  in  these  cases. 

Also.  It  Is  deliberately  left  open  to  the 
Immunity  Review  Board  to  develop  other 
grounds  for  consideration  as  are  consistent 
with  the  principles  embodied  In  the  Act. 

Finally,  we  believe  it  is  amroprlate  to 
Include  a  crlterlum  which,  when  applicable, 
conclusively  forbids  reduction  of  the  maxi- 
mum term  of  service  Those'  Individuals 
whose  sole  motivating  factor  was  selective 
opposition  to  the  Vietnam  War.  while  not 
disqualified  from  securing  Immunity,  can- 
not use  that  factor  as  the  basis  for  any  re- 
duction In  the  term,  since  that  has  never 
been  a  basis  for  a  slmUar  acUon  by  any  of  the 
draft  regulations." 


December  19,  1973 


CONGRJESSIONAL  RECORD  —  SENATE 


42389 


O.  The  actions  of  the  immunity  Ket-tfw  Board 
shall  not  be  judicia.iy  reiiewable 
The  Act  explicitly  provides  that  the  deci- 
sions of  the  Immui.lty  Review  B. lej-cl  as  to 
term  of  service  proposed  K>"t:i  lh;  ^.;.aj  and 
not  subject  to  JudlciiU  review.  Th.s  investi- 
ture of  unreviewable  power,  under  aLiaiyals, 
is  neither  arbitrary  nor  unwarranted. 

The  Board  Is  a  Congressional  mechanism  to 
Insure  that  a  person  entitled   to  immunity 
can  gain  it  through  conditions  appropriate 
to   hU   Individual   case.   The   Act  sets   forth 
relevant  criteria  for  this  determination,  and 
confides  total  discretion  to  the  Board  In  ap- 
plying those  criteria  to  the  myriad  of  rele- 
vant  facts.   This   exercise   of   discretion,    as 
delegated  to  the  Board  by  Congress,  should 
not  be  the  svibject  at  Judicial   Inquiry.  It 
is  analogous  to  the  power  of  the  Executive 
Department,  which  Is  charged  with  the  faith- 
ful execution  of  the  law,  to  determine  wheth- 
er or  not  to  Institute  proeecutlon  In  a  par- 
ticular case.  The  leading  opinion  Is  that  writ- 
ten by  now  Chief  Justice  Berger  In  the  case 
of  Newman  v.   United  States,  382  F.2d  479 
(C.A.   DC.   1967).  In   the  Newman  case  the 
United  States  Attorney  determined  not  to  ac- 
cept a  plea  from  one  of  two  co-defendants. 
The  argument  was  made  that  this  conduct 
dep.led  due  proces.s  and  equal  protection   Mr. 
Justice  Berger  held  that  this  was  a  matter 
of  first  impression  and  that  it  had  to  be  re- 
solved   on    the    basis   of    the    constitutional 
division  of  power.   As  Chief  Justice  Berger 
stated, 

"Pew  subjects  are  leas  adapted  to  Judicial 
review  than  the  exercise  .  .  .  of  .  .  .  discre- 
tion In  deciding  when  and  whether  to  insti- 
tute criminal  proceedings,  or  what  precise 
charge  should  be  made,  or  whether  to  dismiss 
a  proceeding  once  brought."  (382  P.2d  at 
p.  480), 

The  Chief  Justice,  speaking  for  a  unani- 
mous panel,  concluded  that  "no  court  has 
any  Jurisdiction  to  Inquire  Into  or  review 
his  decision."  Id.  at  482.  In  an  earlier  deci- 
sion, the  Court  of  Appeals  for  the  Fifth  Cir- 
cuit, speaking  en  banc,  held  that: 

"The  courts  are  not  to  Interfere  with  the 
free  exercise  of  the  discretionary  powen  of 
the  Attorneys  of  the  United  States  In  their 
control  over  criminal  proaecuUons."  United 
States  I  Coz.  342  FJJd  167,  171  (6th  Clr  ) 
cert,  den.,  86  S.Ct..  J7e7  (1966). 

The  powen  to  be  exercised  by  the  Board 
are  dramatically  slmUar  to  that  of  federal 
prosecuton.  The  facton  to  be  considered  In 
•ach  case  are  so  numerous  and  subtle  as  not 
to  be  susceptible  of  Judicial  evaluation  and 
weighing.  The  analogy  shown  here  leads  in- 
escapably to  the  conclusion  that  Judicial  re- 
view of  these  decisions  be  precluded. 

A  second  example  of  unreviewable  discre- 
tion also  warrants  attention.  The  Federal 
Board  of  Parole  provides  a  striking  model 
of  the  future  tAsks  of  the  Immunity  Review 
Board.  SlmUar  facton  must  be  weighed  by 
each  board  In  reaching  a  decision.  The  courts 
have  long  since  recognlwd  Congress  granted 
the  Board  of  Parole  "absolute  discretion"  in 
the  grant  or  denial  of  parole."  In  the  face  of 
this  discretion.  Judicial  review  U  necessarUv 
prechjded  •' 

In  the  absence  of  evidence  of  flagrant  un- 
warranted, or  unauthorized  action  by  the 
Board.  It  U  not  the  function  of  the  courts  to 
review  such  proceedings  Scarpa''  v  VJS 
Board  of  Parole,  477  F.2d   at  283. 

The  Scarpa  court  enunciated  the  prtnclple 
behind  this  viewpoint:  the  government  may 
In  Its  unreviewable  discretion,  confer  a  bene- 
fit on  an  individual  or  refuse  to  change  an 
Individual's  sUtus  to  the  better:  on  the 
other  hand,  where  a  cognizable  beneflt  Is 
withdrawn,  the  courts  wlU  examine  that 
action  to  insure  the  presence  of  due  proc- 
•es"  The  Immimlty  Board  of  Review  will 
confer  a  beneflt.  a  reduction  In  service,  when 
It  flnds  It  approprUte.  Th^  Board  need  not 
be  reviewed  as  to  the  merits  of  its  decisions. 


D.  Limitations  of  the  Scope  of  the  Act 
First  of  all.  It  does  not  apply  to  anvoce 
serving  a  prison  sentence  for  crln:ies  unre- 
lated to  selective  service  violations  Further- 
more, It  Is  not  applicable  to  iJ.i.jee  pers^.os 
who  have  deserted  fnjm  the  Unlied  States 
Armed  Forces.  We  l>eileve  iha-.  the  problems 
of  these  latter  Individials  are  so  Inextricably 
Intertwined  with  the  considerations  of  mili- 
tary discipline  that  a  comprehensive  solu- 
tion for  that  cat^^ry  cf  persons  Is  beyond 
the  proper  scope  of  this  legislation. 

m     CONCLUSION 

The  legislative  power  of  Immunity  has 
been  little  exercised  in  the  context  of  mili- 
tary service.  The  reasons  for  this  prior  dor- 
mancy are  varied,  but  sometimes  readily  ap- 
parent— as  where  action  had  been  taken  by 
the  Kxecutive  branch,  in  each  of  the  coun- 
try's previous  conflicts  so  as  to  make  Con- 
gressional action  unnecessary. 

Moreover,  there  Is  some  evidence  that  an 
Informal  type  of  "amneety"  has  been  admin- 
istered on  a  haphazard  basis  throughout  the 
United  States  by  the  various  United  States 
Attorneys  It  Is  widely  believed  that  a  lesser 
sentence  may  be  secured  by  prosecution  In 
one  part  of  the  country:  •"  and  it  is  well 
known  that  the  Justice  Department  has  been 
less  than  dUlgent  in  punning  the  violations 
of  the  various  acts  Invo'.ved.  An  important- 
advantage  to  having  an  Immunity  Review 
Board  would  be  that  or  tinlformlty;  the  same 
considerations  would  be  applicable  to  all 
persons  who  sought  immunity  from  proee- 
cutlon and,  although  no  one  would  be  com- 
peUed  to  seek  Immunity,  it  Is  anticipated  by 
us  that  the  existence  of  an  alternative  uni- 
form procedure  would  cut  down  or  elimi- 
nate the  apparently  discriminatory  practices 
which  are  now  in  existence  throughout  the 
country. 

We  fully  recognize  the  llmiutlons  in- 
herent in  our  legislation,  and  we  hope  to 
provoke  a  further  discussion  of  this  matter 
with  the  goal  Uiat  this  acrimonious  problem 
may  be  resolved  in  a  manner  which  would 
beneflt  not  only  the  individuals  involved  but 
the  country  as  a  whole.  We  believe  that  the 
time  Is  ripe  to  move  on  this  Issue  and  that 
the  Congress  of  the  United  States  should 
not  deny  Itself  the  opportunity  to  consider 
fully  the  very  serious  questions  raised  by 
this  matter. 

FOOTNOTES 

'  The  exact  number  of  such  persons  is  In 
dispute.  Our  staff  analysis,  as  of  the  summer 
of  1973.  estimated  that  at  least  18,500  In- 
dividuals were  abroad  because  of  resistance 
to  the  draft.  As  of  July  23.  1973,  the  Depart- 
ment of  Justice  reported  that  another  l,35i 
persons  were  Indicted  and  awaiting  trial  and 
300  men  were  Imprisoned.  The  number  of 
persons  living  "underground"  In  the  United 
States  is  very  difficult  to  ascertain,  but  the 
most  conservative  estimate*  place  that  figure 
at  several  thousand.  In  sum.  the  number  of 
persons  within  the  scope  of  thU  legislation 
quite  probably  exceeds  30.000. 

'  The  flret  bill  I  Introduced  on  December  14 
1971,  was  8.  3011.  It  was  referred  to  the  Com- 
mittee on  the  Judlclarv.  The  Sub-committee 
on  Admlnlstretlve  Practice  and  Procedure 
held  hearings  on  "Selective  Service  Svstem 
Procedures  and  Adminlstntlve  Posslb'uities 
for  Amnesty"  on  February  28.  29.  and  March 
1.  1972  (hereinafter  refer.->.>d  to  as  'Hear- 
ings"). The  Hearings  have  been  printed  by 
the  United  Stetes  Government  Printing  Office 
and  comprise  671  pages  with  considerable 
amount  of  source  materials  Incorporated 
therein.  In  addition,  S.  3011  has  been  the 
subject  of  discussion  In  a  number  of  law 
review  articles  written  on  the  topic.  They 
Include  the  following:  Jones  and  Ralsh. 
"American  Deserters  and  Dreft  Kraden:  Ex- 
ile, Punishment  or  Amnesty?",  13  Harvard 
International  Law  Journal  88  (Winter  1973) 
(printed  verbatim  in  the  Hearln?s  at  pages 
460-478);  Roth  and  Rothman,  "The  Author- 


ity of  a  Congress  to  Orent  Amnesty,"  Yale 
Lei;lslative  Se.'-rlces  (1972)  (printed  at  pages 
490-601  of  the  Hearings) ;  Comment.  "A  His- 
tory and  Discussion  of  Amnesty,"  4  Columbia 
Human  Rights  Law  Review  639  (Fall  1972); 
Comment,  "Draft  Reslsten  In  Exile:  Pros- 
pects and  Risks  of  Return,"  7  Columbia  Jour- 
nal of  Law  and  Social  Problems  1  (Winter 
1971);  Lusky.  "Congressional  Amnesty  for 
War  Flesisters:  Policy  Considerations'  and 
Constitutional  Problems,"  25  Vanderbllt  Law 
Review  535  (April  1972)  :  Mlgllore,  "Amnesty: 
An  Historical  Justification  for  Its  Continuing 
ViabUlty,"  12  Journal  of  FamUy  Law  63 
(1972-73). 

•Under  Article  U.  Section  3,  Clatise  1,  the 
President  has  the  power  to  ".  ,  ,  grant  re- 
prieves and  pardons  for  offenses  against  the 
United  States.  .  .  ."  There  have  been  nu- 
merous examples  of  the  use  of  this  power 
over  the  yean  and  they  are  dlscxissed  thor- 
oughly In  the  various  law  review  articles. 
President  Truman,  before  exercising  that 
power,  created  pji  "Amnesty  Board"  com- 
posed of  three  membere  who  examined  and 
considered  the  cases  of  persons  who  had  al- 
ready been  convicted  of  violations  of  the 
Selective  Service  Law  during  World  War  n. 
Executive  Order  9814.  11  Federal  Register 
14645  (December  23,  1946),  The  Amnesty 
_  Board  was  composed  of  Owen  Roberts.  Willis 
Smith,  and  James  F.  O'Nell,  and  tl^py  sub- 
mitted their  report  to  the  President  exactly 
one  year  later,  December  23,  1947.  That  report 
is  printed  verbatim  at  pages  485-489  of  the 
Hearings.  As  is  stated  therein,  after  reviewing 
15.805  convictions,  the  Botird  reconmiended 
that  1,523  persons  be  granted  executive 
clemency. 

♦  VS.  Const.  Art.  n,  {  2;  Ex  parte  Oarland. 
71  U.S.  (4  WaU)  333,  380  (1866),  Also  see 
Humpert,  The  Pardoning  JPower  of  the  Presi- 
dent W  {19A1). 

'In  Brown  v.  Walker,  the  United  States 
Supreme  Court  acknowledged  that  the  power 
of  reprieve  and  pardon  expressly  granted  the 
President  In  no  way  affected  the  genenl  au- 
thority residing  In  the  legislative  branch  161 
VB.  591.  40  L  Jkl.  819.  822  (1896) .  See  also  the 
Laurg.  114  U.S.  411  (1884). 

•Act  of  Mareh  3.  1865.  13  Stat.  19O-01. 
For  a  similar  exercise  of  legislative  pardon, 
see  Act  of  July  17.  1862.  12  Stat.  592 

'E.g..  27  Stot.  443  (1893),  49  U.S.CA.  {46 
(1969),  constltutlonalltv  tipheld  Broum  v 
Walker,  supra;  32  Stat.  904  (1903)  15  U-S  CJl 
5  32,  49  U.SC_A.  i  47  (1969) ,  consUtutlonallty 
upheld.  Hale  v.  Henkel,  201  U.S.  43  (1906). 
Such  statutes  have  'become  part  of  our  con- 
stitutional fabric."  UUman  v.  United  States, 
350  V^.  422.  438  (1956).  See  also  Comment, 
The  Federal  Witness  Immunity  Acts  in  The- 
ory and  Practice:  Treading  The  Constitu- 
tional  Tightrope,  Ti  Yale  LJ.,  1668  (1963) 

'  See,  for  example,  the  "use"  Immunltv  pro- 
visions  of  the  Organized  Crime  Control  Act 
of  1970.  18  -CS.CJi.  16001-06  (Supp  1973). 
See  also.  Kastigar  v.  United  StaUs  406  U  S 
441  (1972).  upholding  these  provlslcAi 

•  18  VSCJi.  5  4301  et  seq  (1969) .  "By  the 
language  of  [this  statute),  the  BoaW  of 
Parole  Is  given  absolute  discretion  in  nTatterm 
of  parole."  Scarpa  v.  US.  Board  of  Carole 
477  F.2d  378.  380  (5th  Clr.  1973):  oeconl! 
Hyser  V.  Reed.  318  F2d  225  (DC  Clr  1968) 
(per  Berger.  J). 

'"Compare,  George  v.  United  States  196 
F.2d  445  (9th  Clr.).  cert,  den.,  344  U  s'  843 
(1952).  with  United  States  v.  Seegar.  880  VS 
163  (1966)  and  Welsh  v.  United  States  398 
U.S.  333  (1970). 

"In  Issuing  rules,  the  Board  Is  directs! 
to  utuize  the  procedures  set  -forth  in  5 
U.S.C.A  J  551  et  seq :  however,  the  Board 
Is  In  no  way  subject  to  the  other  provisions 
of  the  AdmlnlstraOve  Procedure  Act. 

"This  conclusion  Is  In  accord  with  the 
Supreme  Court's  IntwpretaUon  of  the  con- 
scientious objector  clause  In  Gillette  v. 
l/f»ited  State*,  401  U.S.  437  (1971). 


42390 


CONGRESSIONAL  RECORD  — Si  NATE 


"  Scarpa  u.  VS.  Board  o/  Parole.  477  F.  ad 
278,  280  (5th  Clr.  Id73);  accord,  Hyaer  v. 
Reed.  318  F.  3d  225  (DC.  Clr.  1963) . 

»  Accord,  Menectito  v  Oiurald.  430  P.  2d  403. 
40»-09  (2d  Cir.  1970).  cert.  den...  400  a.S. 
1023  (1971);  Dorado  v.  Kerr.  454  F.  2d  882 
(9th  Clr   1972). 

'^  477  F  2d  278.  282.  Compare.  MorrUs^v. 
Brevier,  408  U^.  471  (1972)  (revocation  of 
parole ) . 

••  In  fiscal  year  1972.  certain  district  courts 
reported  widely  disparate  result*. 

Minnesota — 94  convicted;  47  subsequently 
Imprisoned  (50  0%), 

Washington — 66  convicted;  31  subsequent- 
ly Imprisoned  ( 47.7  ~  ) ; 

California  (Cent.  Dlst.) — 168  convicted;  51 
subsequently  Imprisoned  (304%); 

California  (Nor.  DUt  )— 305  convicted;  55 
subsequently  imprisoned  (18.09^); 

Michigan — 90  convicted;  5  subsequently 
imprisoned  (5.6%). 

Source  of  data:  1973  Seml-aniiuai  Report 
of  the  Director  of  the  Administrative  Office 
of  the  United  States  Courts.  Pig.  24. 

It  has  often  been  rumored  among  draft 
resistor  groups  that  Northern  California  was 
the  most  lenient  district.  The  above  flgiues 
appear  to  dispute  this.  However,  the  dispar- 
ity between  beUef  and  actual  statistics  aim- 
ply  underscores  the  need  for  a  uniform  coor- 
dinated approach. 

.Mso  see  Newsweek,  Oct.  1,  1973,  "A  Kind 
of  Amnesty",  p.  34. 


December  19,  197J 


[  been  successful  with  the  Internal  Rev- 
enue Service,  or  in  the  courts,  due  to  the 
lack  of  clarity  in  the  current  law 

There  are  about  3.000  retired  military 
members  who  are  dedicating  ttiemselves 
to  this  important  citizenship  program. 
These  extra  allowances  sjc  rel.itlvely  a 
small  part  of  their  pay  f ro  n  the  Institu- 
tion and  the  Government.  The  larger 
portion  of  their  salary  is  taxable.  Con- 
stquently.  I  am  introducing  an  amend- 
ment to  Public  Law  83-647  to  clarify  the 
language  in  the  Vitallzation  Act.  It  will 
allow  the  exemption  as  an  Incentive 
mejisure  and  a  more  livable  wage.  This 
amendment  will  help  to  insure  that  this 
vital  program  will  continue  to  flourish 
by  helping  to  train  young  people  to  be- 
come productive  citizens  in  our  society. 
Mr.  President,  I  urge  my  distinguished 
colleagues  to  jom  me  in  approving  this 
important  measure.  ^ 


By  Mr.  THTJRMOND: 
S.  2834.  A  bill  to  amend  title  10  of  the 
United  States  Code  to  provide  that  cer- 
tain additional  amounts  received  by  re- 
tired servicemen  employed  In  the  Junior 
Reserve  Officers'  Training  Corps  shall  be 
treated  as  subsistence  or  uniform  allow- 
ances or  as  amoimts  received  as  commu- 
tation of  quarters.  Referred  to  the  Com- 
mittee on  Armed  Services. 

JTTNTOl     RESraVT     omCHl     TRXIKING      PBOGRAM 

Mr.  THURMOND.  Mr.  President,  one 
of  the  m(5st  beneficial  and  successful  edu- 
cational and  training  programs  In  our 
country  for  preparing  yoimg  men  and 
women  to  be  responsible  citizens  Is  the 
Junior  Reserve  Officers  Training  Corps — 
JROTC — program  in  high  schools  across 
,  ,,^^  the  Nation. 

^  The  Congress  fully  recognized  the  vital 

Importance  of  this  program  when  It  en- 
acted Public  Law  83-647  entitled.  "Fie- 
serve  Officers'  Training  Corps  Vitallza- 
tion Act  of  1964."  One  of  the  provisions 
of  the  law  provided  for  an  agreement  be- 
tween the  Military  Departments  and  the 
participating  educational  institutions  to 
use  retired  mllitar.-  personnel  as  instnic- 
tor.s  and  administrators. 

Since  retired  military  pay  is  not  suffi- 
cient to  live  on  in  most  cases,  an  added 
financial  incentive  to  attract  highly  qual- 
ified retired  personnel  was  incorporated 
in  the  law.  It  provided  for  the  Govern- 
ment and  the  educational  institution  to 
share  equrlly  an  additional  amount  equal 
to  the  quarters  allowance  and  subsistence 
pav  which  the  retired  member  would  re- 
ceive if  on  active  duty.  These  allowances 
have  always  been  tax  exempt  for  active 
duty  personnel,  bu^  such  exemption  is 
not  granted  those  retired  personnel  who 
are  highly  motivated  to  teach  in  the 
JROTC  program.  , 

Mr.  President.  I  am  confident  that  it 
wa.5  not  the  intent  of  the  Congress  that 
the  Vitalizatlon  Act  be  interpreted  to 
disallow  this  exemption.  However,  an  ef- 
fort to  obtain  this  exemption  has  not 


By  Mr.  HUMPHREY: 
S.  2835.  A  bill  to  rename  the  first  Ci- 
vilian Conservation  Corps  Center  located 
near  FYanldln.  N.C..  and  the  Cross  Tim- 
bers National  Grasslands  in  Texas  in 
honor  of  former  President  Lyndon  B. 
Johnson.  Referred  to  the  Committee  on 
Agriculture  and  Forestry. 

LTNDOW     B.      JOHNSON:      TEACHEB, 
CONSEEVATTONTST.     PRKSIDCNT 

Mr.  HUMPHREY.  Mr.  President.  I  am 
introducing  a  bill  today  which  would  re- 
name the  first  Civilian  Conservation 
Corps  Center,  located  near  Franklin. 
N.C.,  and  the  Cross  Timbers  National 
Grasslands  in  Texas,  in  honor  of  former 
President  Lyndon  B.  Johnson. 

Ml".  President,  I  ask  unanimous  con- 
sent that  this  bill  be  referred  to  the  Com- 
mittee on  Agricultiire  and  Forestry. 

The  bill  pays  tribute  to  a  man  who  had 
a  constant  interest  in  the  enhancement 
and  development  of  people  as  our  Na- 
tion's basic  resource  and  in  the  conser- 
vation of  our  natural  resources  as  basic 
to  our  people  reaching  their  aspirations. 
This  Nation's  quest  for  major  improve- 
ment in  the  quality  of  our  national  en- 
vironment will  be  fostered  by  recogniz- 
ing Lyndon  B.  Johnson's  dedication  to 
this  important  goal. 

I  pfopose  that  we  name  two  areas  for 
Lyndon  Johnson  which  appropriatelj' 
honor  his  efforts  over  the  years  to  ad- 
vance both  the  cause  of  conservation  and 
the  opportunity  for  personal  develop- 
ment. In  1959.  when  the  first  post-war 
effort  to  reactivate  the  Civilian  Conser- 
vation Corps  concept  was  before  the  Sen- 
ate, it  was  Lyndon  Johnson  as  majority 
leader  of  the  Senate  who  gave  this  pro- 
gram the  impetus  it  deserved.  He  Icnew. 
from  his  experience  as  a  hl?h  school 
teacher  and  from  his  experience  as  Di- 
rector of  the  National  Youth  Administra- 
tion in  Texas  in  the  depth  en  the  depres- 
sion, how  vital  it  was  that  we  give  everv' 
young  person  an  opportunity  to  secure 
an  education  that  would  enable  that  per- 
son to  utilize  fully  his  or  her  capabilities. 

Lvndon  Johnson  knew  and  loved  the 
land.  He  knew  that  people  had  to  have  a 
tie  to  the  land  and  that  this  was  the 
bedrock  of  national  unity.  The  Civilian 
Conservation  Corps  of  the  1930's  was  a 
program  about  which  he  had  a  great 
deal  of  knowledge.  He  knew  from  expe- 


rience v^hat  It  had  done  for  youth  and  for 
conservation. 

In  the  late  19505,  when  I  urged  that 
we  reestablish  the  Youth  Conservation 
Corps,  the  first  person  I  turned  to  for  ad- 
vice and  counsel  as  a  young  Senator  was 
Lyndon  B.  Johnson.  As  majority  leader, 
the  program  had  his  full  support  and  he 
made  a  significant  effort  to  get  a  bill 
adopted  by  the  Senate  in  1959.  Tliat  was 
as  far  as  we  got — and  we  did  not  get  the 
program  adopted  in  the  early  1960's.  de- 
spite the  support  that  President  John  F. 
Kennedy  gave  the  program. 

However,  shortly  sJter  Lj-ndon  John- 
son became  President,  he  told  me  of  his 
plans  to  do  something  for  youth  and 
conservation  by  getting  a  youth  conser- 
vation program  into  actldn.  He  intended 
to  do  more  than  the  program  of  the 
1930's.  And  he  did. 

The  1964  Economic  Opportunity  Act 
was  a  broad  assault  on  poverty  and  Ig- 
norance and  a  key  part  of  that  program 
were  the  Youth  Conservation  Camps  es- 
tablished &s  part  of  the  Job  Corps. 

The  first  camp  was  set  up  near  Frank- 
lin. N.C.  I  propose  that  this  camp  be  re- 
named the  Lyndon  B.  Johnson  Youth 
Conservation  Corps  Center. 

For  Lyndon  Johnson  the  love  of  the 
land  was  one  of  the  strengths  of  his 
character  and  the  land  Itself  a  restorer 
of  his  faith  in  America.  For  him  looking 
out  over  the  grasslands  of  his  native 
Texas  kindled  his  energy  and  lit  his  re- 
solve. Lyndon  Johnson  knew  Insti  .ctlvely 
that  man  had  to  v.ork  with  nature — 
not  fight  with  nature — if  he  was  going 
to  survive  and  prosper  on  this  earth. 
Lyndon  Johnson  had  an  intuitive  under- 
standing of  ecological  relationships  even 
though  I  do  not  think  he  ever  used  those 
exact  words.  To  him  it  was  the  'need  to 
work  with  nature."  He  saw  that  we  were 
mining  our  resources  "rather  than  mind- 
ing our  resources."  He  set  about  to  re- 
kindle a  national  resolve  to  reven-e  the 
desecration  of  the  land. 

In  1964  President  Johnson  signed  into 
law  the  National  Wilderness  Act  and  the 
Land  and  Water  Conservation  Fund  Act. 
He  spurred  action  on  devising  a  national 
awareness  of  the  vital  importance  of  our 
resources.  Tn  1967  he  embarked  on  a  pro- 
gram to  establish  natural  benuty  and 
conservation  as  national  goals.  Euid  he 
convened  a  Citizens  Advisory  Committee 
on  Recreation  and  Natural  Beauty. 

A  National  Grassland  is  located  in 
Wise  and  Montague  Counties.  Tex.  These 
are  lands  that  were  worn  out  and  run 
down  until  under  national  programs 
they  were  purchased  and  the  process  of 
their  rehabilitation  began.  This  area 
shows  not  only  what  can  be  done,  but  it 
also  demonstrates  the  opportunity  that 
exists  to  do  more  in  the  way  of  conserva- 
tion of  our  natural  resources.  But  most 
of  all  this  .'sea  of  restored  and  renewed 
grassland  represents  the  faith  that  Lyn- 
don John.'on  had  in  the  land.  I.  there- 
fore, propose  that  this  area  be  named  the 
Lyndon  B.  Johnson  National  Grasslands. 
I  have  dLscussed  this  matter  with  Mrs. 
Johnson  and  she  has  expre.^sed  a  warm 
Interest  In  and  support  of  this  proposal 
as  one  which  would  mark  Interests  that 
were  held  dearly  and  closely  by  her  late 
husbcuid.  I  hope  that  we  can  move  ex- 
peditiously to  enact  this  legislation. 


December  19,  197  S 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42391 


ADDITIONAL  COSPONSORS  OP  BILLS 
AND  JOINT  RESOLUTIONS 

S.    2718 

At  the  request  of  Mr.  Pell,  the  Sena- 
tor, from  South  Dakota  (Mr.  ABOtrKKZK), 
the  Senator  from  Massachusetts  (Mr. 
Brooke  I,  the  Senator  Irom  Maryland 
(Mr.  BfALL).  and  the  Senator  from 
Mlruiesota  (Mr.  Humphrey)  were  added 
as  cosponsors  of  S.  2718.  the  Federal 
Election  Financing  Act. 

8.    8774 

At  the  request  of  Mr.  Hatfield,  the 
Senator  from  Maryland  'Mr.  Beall)  was 
added  as  a  cosjwnsor  of  S.  2774,  to  pro- 
vide au^istance  in  improving  zoos  and 
aquartums  by  creating  a  National  Zoo- 
logical and  Aquarium  Board.  t 

8.    27*'2 

At  the  request  of  Mr.  Nelson,  the 
Senator  from  Missouri  (Mr.  Eagleton) 
was  added  as  a  cospon^or  of  S.  2782,  a 
bill  to  establish  a  National  Energy  In- 
formation System,  to  authorize  the  De- 
partment of  the  Interior  to  undertake  an 
Inventory  of  United  States  energy  re- 
sources on  public  lands  and  elsewhere, 
and  for  other  purposes. 

S.  2786 

At  the  request  of  Mr.  Percy,  the  Sen- 
ator from  Iowa  (Mr.  Clark)  and  the 
Senator  from  Pennsylvania  (Mr.  Scitwki- 
KER )  were  added  as  cosponsors  of  S.  2786. 
a  bill  to  amend  chapter  34  of  title  38 
United  States  Code,  to  increase  from 
36  to  48  months  the  maximum  period 
of  educational  assistance  to  which  an 
eligible  veteran  may  become  entitled  un- 
der such  chapter,  and  to  extend  from  8 
to  15  years  the  period  within  which  an 
eligible  veteran  must  complete  his  pro- 
gram of  education  under  such  chapter 
after  his  discharge  from  military  service. 


SENATE  RESOLUTION  222— SUBMIS- 
SION OF  A  RESOLUTION  TO  AU- 
THORIZE A  NATIONAL  OCEAN 
POLICY  STUDY 

(Referred  to  the  Committee  on  Com- 
merce.) 

Mr.  MAGNUSON  (for  himself.  Mr. 
Hollincs,  Mr.  Eastland,  Mr.  McClellan, 
Mr.  FtTLBRiGHT,  Mr.  Sparkkan,  Mr.  Sten- 
Nis,  Mr.  Long,  Mr.  Pastore,  Mr.  Jackson, 
Mr.  Mansfield,  Mr.  Ervin.  Mr.  Cotton, 
Mr.  Hugh  Scott,  Mr.  Bible,  Mr.  Tal- 
madge,  Mr.  Randolph.  Mr.  Cannon,  Mr. 
Hartke,  Mr.  McGee,  Mr.  Moss,  Mr.  Wil- 
liams. Mr.  Bentsen.  Mr.  Eagleton.  Mr. 
RiBicoFF,  Mr.  Robert  C.  Byrd,  Mr.  Hum- 
phrey, Mr.  Stevens,  Mr.  Kennedy,  Mr. 
Metcalf,  Mr.  Stevenson,  Mr.  McGovern, 
Mr.  MclNTYRE,  Mr.  Nunn,  Mr.  Allen,  Mr. 
GuRNEY.  Mr  Hart,  Mr.  Buckley,  Mr. 
Gravel,  Mr.  Abourezk,  Mr  Domenici,  Mr. 
Dominick,  Mr.  Pell,  Mr.  Chiles.  Mr. 
BuRDiCK,  Mr.  Weicker,  Mr.  Biden, 
Mr.  TUNNEY,  Mr.  Dole.  Mr.  Hatfield. 
Mr.  Johnston,  Mr.  Cranston,  Mr.  Ma- 
thias,  Mr.  MusKiE,  and  Mr.  Beall)  sub- 
mitted the  following  resolution: 

S.   Rxs.  222 

Resolution   to  authorize   a   National   Ocean 

Policy   Study 

Wherea's  the  oceans  offer  the  potential  for 

major  contribution  to  world  peace  and  to 

the  quality  of  life,  and  the  future  of  man- 


Mnd,  at  least  In  part,  may  well  be  depend- 
ent upon  his  knowledge  and  wise  use  of 
the  sea:  and 

Whereas  the  oceans  are  of  enormovis  pres- 
ent and  potential  benefit  to  all  cltlzenB  of 
the  United  States  owing  to  their  extensive 
supply  of  living  and  nonliving  resources  and 
because  of  their  utilization  as  a  pathway 
for  maritime  commerce  and  as  a  continuing 
source  of  Impact  upon  the  national  security, 
balanced  growth,  technology,  scientific  un- 
uerstandlng,  and  the  quality  of  the  world 
environment;  and 

Whereas  the  depletable  living  and  non- 
living resources  of  the  oceans  will  neces- 
sarily be  utilized  increasingly  In  future  years 
Bs  a  principal  source  of  protein,  raw  mate- 
rials, and  energy:  and 

Whereas  the  coastal  margin  of  the  United 
States,  as  one  of  the  Nation's  prime  resources. 
Is  under  ever -expanding  pressure  due  to  Its 
deslrabUuy  for  siting  of  commerce,  indus- 
try, and  habitation,  and  due  to  Increasing 
needs  for  recreation,  transport-itlon,  urban- 
ization, and  biological  reproduction:  and 

Whereas  serloiia  national  and  global  prob- 
lems exist  and  are  growing  In  ocean  con- 
tamination as  a  result  of  land-,  and  vessel- 
source  poUution;  and 

Whereas  the  Marine  Resources  and  Engi- 
.  neerlng  Development  Act  of  1966  (33  UB.C. 
2  et  seq.)  was  enacted  to  develop  a  com- 
prehensive, long-range  national  oceans  pol- 
icy, but  such  Act  has  been  neither  fully 
Implemented  nor  completely  successful  In 
achisvlng  that  goal;  and 

Whereas  the  utilization  of  ocean  resources 
and  solving  ocean-related  problems  depend 
directly  upwn  developing  oceanic  Icnowledge 
and  technolcjgy.  resolving  conflicts  of  na- 
tional Rnd  International  Jurisdiction  over 
the  ocean,  protecting  the  quality  of  the 
marine  environment,  and,  foremost,  upKDn 
establishing  a  clear  and  comprehensive  na- 
tional  oceans  policy:   Now,   therefore,  be  It 

Resolved.  That  the  Committee  on  Com- 
merce is  authorized  under  sections  134(a) 
and  136fa)  of  the  Legislative  Reorganiza- 
tion Act  of  1946,  as  amended,  and  in  accord- 
ance with  its  Jurisdiction  under  rule  XXV 
of  the  Standing  Rules  of  the  Senate,  as 
amended,  to  maite  a  full  and  complete  In- 
vestigation and  study  of  national  oceans 
policy  for  the  purpose  of — 

(1)  determining  current  and  prospective 
national  capabilities  In  the  oceans,  including 
marine  sciences  and  their  application,  oceanic 
research,  advancement  of  oceanic  enterprise 
and  marine  technology.  Interdisciplinary 
education,  policy  planning,  professional 
career  and  employment  needs,  and  orerall  re- 
quirements of  the  United  States  consistent 
with  the  attainment  of  long-range  national 
goals; 

(2)  determining  the  adequacy  of  current 
Federal  programs  relating  to  the  oceans  and 
recnmmendlng  Improvements  In  agency 
structure  and  effectiveness  to  meet  national 
needs  and  achieve  oceans  capabilities,  and 
assessing  existing  policies  and  laws  affecting 
the  oceans  for  the  purpose  of  determining 
what  changes  might  be  necessary  to  assure  a 
strong  and  Internationally  competitive  oceans 
policy  and   program  for  the  United  States; 

(3)  establishing  policies  to  achieve  the 
goal  of  full  utllizaticn  and  conservation  of 
living  resources  of  the  oceans  and  recom- 
mending solutions  to  problems  In  marine 
flaherles  and  their  management,  rehabilita- 
tion of  United  States  flaherles,  current  and 
future  International  negotiations  on  fish- 
eries, as  well  as  aquaculture  and  the  extrac- 
tion of  drugs  from  the  sea; 

(4)  assessing  the  needs  for  new  policies 
for  the  development  and  utilization  of  the 
nonliving  resources  of  the  oceans,  including 
the  mineral  resources  of  the  Outer  Contin- 
ental Shelf  and  the  deep  seabed  so  that  the 
national  mineral  needs  can  be  met  in  an 
economically  and  environmentally  sound 
man  n  AT; 

(5)  enoouragfhg  Implementation  of  coastal 


eone  m^magemeut  through  the  Coastal  Zon* 
ManagMoant  Act  of  1972  by  aaseeslng  regional 
and  Intertaate  problems.  State  f  unotlons  and 
powers  In  coastal  zone  management.  Infor- 
mation sources,  recreation  i.eeds,  pollution 
problems,  population  treads,  and  future 
pressures  In  the  coastal  zone; 

(6)  establishing  comprehensive  national 
policy  few  t^e  purpoee  of  understanding  and 
protecting  the  global  ocean  environment 
through  education,  exploration,  research,  and 
international  cooperation;  and 

(7)  making  au  assessment  of  proposals  for. 
and  ctuTent  negotiations  with  respect  to, 
achieving  adequate  national  and  interna- 
tional Jurisdiction  over  the  oceans,  develop- 
ing and  understanding  of  the  relationship 
of  the  oceans  to  world  order,  and  examining 
United  States  policy  with  respect  thereto. 

S£c.  2.  In  order  that  other  standing  com- 
mittees of  the  Seriate  l:iavli.g  Juri^lctlcn 
under  Rule  XXV  of  the  Standing  Rules  of 
the  Senate,  as  amended,  over  specific  ele- 
ments of  the  study  authorized  In  section  1. 
may  participate  in  that  study,  the  chairman 
and  ranking  minority  member  of  each  of  the 
Committees  on  Appropriations.  Interior  and 
Insular  Affairs.  sPublic  Works.  Foreign  Rela- 
tlo:ii^  Government  Operations,  and  Labor 
and  Public  Welfare,  Armed  Services,  or  a 
member  of  such  committees  designated  by 
each  such  chairman  ai;d  ranking  minority 
member  to  serve  In  his  place,  shall  partici- 
pate in  the  study  authorized  by  this  resolu- 
tion as  an  ex  officio  members  cf  the  Commit- 
tee on  Commerce.  In  addition,  the  President 
pro  tempore  of  the  Senate  shall  name  thre* 
majority  and  three  minority  Members  of  tha 
Senate  who  represent  coastal  States,  without 
regard  to  committee  membership,  to  serve  as 
additional  ex  officio  members  of  the  Com- 
mittee on  Commerce  for  ptuposes  of  this 
resolution. 

Sec.  3.  The  committee  shall  report  its  find- 
ings, together  with  its  recommendations  for 
such  legislation  as  it  deems  advisable,  to  th* 
Senate. 

Ssc.  4.  For  the  purpose  of  this  resolution, 
the  Committee  on  Commerce  Is  authorized  to 
expend,  through  February  28,  1975,  from  the 
contingent  fund  of  the  Senate,  a  sum  not  to 
exceed  $200,000. 

Mr.  IMAGNUSON.  Mr.  President.  I  rise 
on  behalf  of  55  colleagues  as  well  as  my- 
self to  introduce  Senate  Resolution  No. 
222,  to  reaffirm  the  intent  of  the  U.S. 
Senate  that  our  Nation  rededicate  its 
purpose  and  intensify  its  commitment  to 
turn  the  oceans  and  the  Great  Lakes  to 
the  service  of  man.  I  am  proud  and 
pleased  to  be  joined  in  this  initiative  by 
distinguished  Senators  of  both  parties, 
many  of  whom  are  chairmen  of  sister 
committees,  to  demonstrate  the  depth 
and  breadth  of  our  concern.  But  I  am 
also  saddened  by  the  melancholy  fact 
that  historic  cycles  of  national  interest  in 
the  seas  are  once  more  overtaken  by  an 
interval  of  neglect.  This  will  be  the  third 
occasion  in  15  years  that  the  Congress  of 
the  United  States  has  had  to  remind  the 
people  and  their  President  of  this  Na- 
tion's stake  in  the  sea,  and  of  our  im- 
steady  response  to  that  challenge. 

It  was  f\rst  in  1959,  with  a  new  aware- 
ness of  the  importance  of  the  ocean  to 
our  national  interests,  «md  of  the  serious 
discrepancy  between  need  and  prospects, 
that  tlie  Senate  passed  Senate  Resolu- 
tion 136  to  focus  attention  on  the  oceans. 
The  Congre.s.s  continued  to  hammer 
away,  finally  gaining  gratifying  expres- 
sion of  interest  by  President  Kennedy 
and  his  staff  in  the  early  1960's.  But  that 
fruitful  spasm  of  increased  support  was 
not  reinforced  with  plans  or  durable 
funding. 


12392 


CONGRESSIONAL  RECOrA  —  SEN  ATE 


By  l96o,  it  was  again  the  legislative 
branch  that  raised  questions  about  na- 
tional requirements  for  a  more  compel- 
ling policy  to  unify  fragmented  programs 
and  uneven  commitment.  Measures  that 
28  Senators  and  I  had  the  privilege  to  co- 
sponsor  in  1965  were  passed  by  the  Sen- 
ate, and  with  complementary  steps  in  the 
House  of  Representatives,  the  Congress 
passed  the  Marine  Resources  and  Engi- 
neering Development  Act  of  1966. 

That  second  uiitlalive  proved  to  be  a 
major  turning  pomt  in  our  Nation's 
maritime  history.  The  act  focused  high 
level  attention  on  the  peaceful  uses  of  the 
sea  as  a  highway  for  world  trade,  as  a 
source  of  protein,  mmerals  and  energy, 
on  its  contribution  to  recreation  and 
esthetic  enjoyment  for  a  busy  people, 
and  on  Its  potential  for  international  co- 
operation as  a  further  step  to  world 
order. 

Accordingly,  the  Congress  mandated 
a  policy  "to  develop,  encourage,  and 
maintain  a  coordinated,  comprehensive, 
and  long-range  national  program  in  ma- 
rine science  for  the  benefit  of  mankind." 
Then,  in  recognition  of  the  breadth  of 
Involvement  by  so  many  Federal  agencies 
and  the  need  to  direct  their  missions  to 
satisfy  these  objectives,  the  President 
was  called  upon  as  the  only  individual 
having  fuii  cognizance  over  their  activi- 
ties to  assimie  responsibility  for  high  • 
level  leadership  and  implementation. 
Finally,  we  provided  him  with  powerful 
interim  machinery  to  advise  and  assist  a 
statutory  National  Council  on  Marine 
Resources  and  Engineering  Development, 
chaired  by  the  Vice  President.  President 
Johnson  activated  the  Council  promptly, 
and  Vice  President  Humphrzy  devoted 
resolute  efforts  to  harmonize  disparate 
goals,  orchestrate  the  bureaucracy,  and 
to  raise  marine  priorities.  In  addition,  a 
statutory  commission  under  Dr.  Juliua 
Stratton  brought  In  persuasive  recom- 
mendations for  a  still  more  influential 
and  permanent  organization,  not  only  to 
centi'alize  fragmented  bureaus,  but  to  as- 
sume responsibility  for  realizing  the 
promise  of  the  sea. 

During  that  Interval,  the  Government 
successfully  navigated  a  transition  from 
scientific  oceanography  to  a  broadened 
program  of  activities  blending  engineer- 
ing, legal,  economic  and  political  con- 
siderations. And  the  hierarchy  of  inter- 
ested participants  was  elevated  to  the 
level  of  the  President  of  the  United 
States. 

In  1970,  a  new  National  Oceanic  and 
Atmospheric  AdmirvLstratlon  was  cre- 
ated within  the  Department  of  Com- 
merce. But  our  expectaUon  that  it  would 
symboUze  and  reinforce  higher  marine 
priorities  established  by  the  National 
Marine  Science  Council  has  failed  to  be 
realized.  Instead,  we  are  mothballing  re- 
*  search  vessels,  constricting  research  and 
exploration,  and  abandoning  needs  to  re- 
direct our  Nations  Innovative  technical 
skills  to  marine  technology 

It  is  not  as  though  the  earlier  state- 
ment's as  to  the  Importance  of  the  ocean 
were  wrong.  If  anything,  they  were  too 
modest. 

Maritime  transport  remains  indispens- 
able to  modem  society.  Tonnage  of  ocean 
transport  will  rise  dramatically  in  the 


Det  ember  19,  197S 


next  two  decades,  especially  In  fuel  and 
mmerals  required  by  Industrialized  na- 
tions, and  of  manufactured  goods  ex- 
changed across  ocean  boundaries.  In  con- 
trast, the  fraction  hauled  in'TJ.S.  bottoms 
continues  to  decline.  Only  5  percent  of 
U.S.  foreign  trade  moves  in  U.S.  flag 
vessels.  Furthermore,  the  strategic  im- 
portance of  a  healthy  Merchant  Marine 
is  obvious;  the  Soviet  Uni<Mi  is  presently 
building  a  merchant  fleet  at  an  unprece- 
dented rate.  y 

The  worldwide  demand  for  protein 
from  the  sea  is  growing  even  more  sharp- 
ly than  world  population.  Indeed,  the 
green  revolution  does  not  show  prospects 
of  meetmg  protem  demand  of  the  6  bil- 
lion people  projected  for  the  year  2000. 
only  about  25  years  off.  NutriUonal  de- 
mand wUl  be  met  in  part  by  growing 
exploitation  of  fisheries,  with  correspond- 
ing threats  of  overfishing  and  need  for 
wise  management.  Since  1955.  the  world 
catch  has  tripled  while  our  domestic 
catch  has  remained  almost  constant.  Our 
domestic  demand  meanwhile  has  more 
than  tripled  so  we  must  meet  the  deficit 
with  imports  of  foreign  products  while 
our  own  fishing  fleet  falls  further  behind. 
Offshore  oil  and  gas.  already  supplying 
17  percent  of  worldwide  demand  will  In- 
crease in  20  years  to  at  least  30  percent: 
In  overaU  volume,  open^Uons  could  quad- 
'  niple.  for  along  with  requirements  for 
increased  volume  will  be  needs  for  di- 
versification of  sources  to  assure  conti- 
nuity of  supply. 

Our  domestic  requirements  for  miner- 
als such  as  copper,  nickel  and  manganese 
are  projected  to  grow  significantly.  These 
are  now  satisfied  only  by  Imports  that 
contribute  to  our  deficit  balance  of  pay- 
ments; these  could  be  offset  by  seabed 
mining. 

The  most  intensively  used  and  access- 
ible part  of  the  ocean  environment  is  the 
margin  where  the  land  meets  the  sea. 
This  Is  where  people  meet  the  sea 
Sevraity-flve  percent  of  our  population 
reside  in  coastal  States,  moet  near  the 
shoreline.  Uttle  wonder  it  is  subject  to 
ever  more  pressure  for  private  develop- 
ment and  proposals  to  site  inshore  plat- 
forms for  nuclear  power  generation  and 
metropoUtan  jetporte.  Slmultaneouslv 
the  need  expands  for  public  recreational 
access  and  for  a  steward.-^hip  of  a  public 
trust  for  conservation.  Such  conflicts  ur- 
gently require  ever  more  sensitive  and 
visionary  coastal  management  at  State 
as  well  as  Federal  levels  to  prevent  an 
anarchy  of  utUlzatlon.  And  we  need  con- 
tinued vlgUance  over  ocean  disposal  of 
waste. 

Finally,  we  must  not  overtook  the  crit- 
ical role  of  the  sea  both  In  contributing 
to  our  defense  and  in  furnishing  the  op- 
portunity for  a  bold  new  thrust  to  meet 
nationalistic  territorialism  with  a  sense 
of  shared  responsibilities— to  employ  the 
oceans  for  peaceful  purposes. 

Many  of  the  problems  and  opportuni- 
ties were  copiously  documented  and  sta- 
tistics quantified  at  the  Conference  on 
the  Oceans  and  National  Economic  De- 
velopment, convened  in  Seattle  July  17- 
19  of  this  year. 

Meeting  these  challenges  was  never 
easy  Many  different  Interests,  numerous 
Institutions  and  Federal  agencies  are  in- 


volved; rational  analysis  draws  on  a  vari- 
ety of  disciplines,  including  social  as  well 
as  natural  sciences  and  engineering. 
Many  poUtical  subdivisions  have  juria- 
diction.  Many  ocean-based  activities  can- 
not be  arbitrarily  isolated  from  corres- 
ponding activities  on  land.  And  a  part- 
nership is  required  between  a  full  array 
of  public  and  private  enterprises  If  the 
strengths  of  each  are  to  be  mobllizediand 
blended  to  deal  with  ocean  affairs  If  many " 
opportunities  In  the  public  Interest. are 
not  to  be  wasted  Indeed,  the  entire  so- 
cial, economic,  and  political  fabric  of  thei 
Nation  is  Involved. 

Given  this  complexity,  diversity,  and 
fragmentation,  mixed  and  competing 
motivation,  the  Federal  Government  will 
have  to  play  a  major  role  In  policy  lead- 
ership. This  responsibility  stems  from 
expectation  of  our  citizens  that  the  Gov- 
ernment is  the  primary  focus  to  deal 
with  issues  of  world  order,  economic  vi- 
tality, health,  safety,  adequacy  of  energy 
resources,  humane  Uvlng  conditions,  and 
stewardship  of  our  environment  for  fu- 
ture generations.  We  have  had  to  look 
to  the  Gtovemment  to  meet  random  in- 
terests and  motivation  with  a  coherent 
sense  of  purpose,  with  a  careful  assess- 
ment of  our  multltudlnal  needs  and 
wants,  and  with  a  statement  of  goals, 
priorities,  and  strategies.  This  Is  what 
the  Congress  had  in  mind  in  Its  two 
earlier  Initiatives.  This  Is  what  sparks 
our  initiative  again. 

This  Is  not  to  say  we  have  not  made 
progress.  Too  often  we  take  our  accom- 
plishments focgranted.  measure  status 
only  by  yearly  increases  In  budgets. 
Given  the  primitive  and  feeble  status  of 
oceanography  described  by  the  National 
Academy  of  Sciences  In  1959.  we  have 
come  a  long  way. 

Prom  1959  to  1966,  we  first  reinforced 
our  research  capabilities  with  support 
for  ocean  science,  for  training  of  scien- 
tists, for  new  ships  and  shore-based  fa- 
cilities. The  size  and  quality  of  our  scien- 
tific cadre  and  our  research  fleet  has 
improved  manifold.  That  flrst  stage  was 
followed  by  a  second  era  from  1956  to 
1970  when  we  endeavored  to  draw  a 
sharper  bead  on  uses  of  the  sea  to  meet 
old  problems,  to  identify  goals  and  to 
marshal  strateeles  We  succeeded  rather 
well.  For  example,  attention  was  focused 
on  the  need  for  prudent  coastal  manage- 
ment, conflict  resolution.  Increased  pub- 
lic access,  pollution  control,  and  rehabili- 
tation of  urban  waterfronts.  We  opened 
an  International  Decade  of  Ocetin  Ex- 
ploration to  foster  international  coopera- 
tion and  Increase  mankinds  knowledge 
about  the  largest  surface  feature  on  the 
planet  Principles  were  established  for 
dealing  with  a  new  legal  regime  for  the 
seabeds  with  emphasis  on  avoiding  a 
race  to  grab  marine  territory. 

We  concluded  that  era  with  creation 
of  new  governmental  apparatu.«;  and  we 
have  subsequently  passed  significant  new 
legislation  to  deal  with  coastal  manage- 
ment by  pTant-"!  in  aid  to  States,  and  with 
regulatory  measures  for  ocean  dumping 
and  maritime  safety. 

But  the  momentum  of  a  long-range 
coordinated  national  program  that  the 
Congress  Intended  has  been  retarded; 
the  goals  are  no  longer  defined ,  the  nec- 


•  i 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42393 


es&ar>-  coordination  is  no  longer  shep- 
herded Crt'atlon  of  just  another  agency 
clearly  did  not  meet  the  emerging  .stress- 
es In  modem  goveniment  to  .solve  trans- 
departmental  problems  and  the  inter- 
action of  science  and  technology  with  our 
society  and  its  irftdiii onal  institutions. 

We  no  longer  need  to  grope  for  identi- 
fication of  benefits  from  the  .sea  But  it 
is  clear  tliat  we  have  lost  their  articula- 
tion within  the  higher  counrlLs  of  our 
Government  \  maritime  presence  at  pol- 
icy levels  during  the  late  1960  s  has  van- 
ished. The  marine  component  ol  public 
policy  has  failed  to  meet  tests  of  viability 
and  of  political  energy-  in  the  familiar 
battleground  among  competitors  for  at- 
tention. Notwithstanding  the  historical 
Importance  of  the  oceans  to  this  Nation's 
destiny,  the  clear  manifestation  of  our 
Nation's  stake  in  benevolent  development 
of  the  seas  makes  the  present  cycle  of 
governmental  indifference  all  the  more 
a  paradox. 

Diagnosis  of  such  malaise  comes  from 
the  statutorj-  National  .Advisory  Commit- 
tee on  Oceans  and  Atmosphere.  In  its 
second  annual  report  released  3  months 
ago,  NACOA  found : 

The  import  of  buciget  cutbacks  .  .  .  dls- 
torta  national  priorities  .  .  .  because  of  or- 
ganizational fragmentation  and  the  lack  of 
a  strong  management  focus  at  a  sufficiently 
high  level  In  government 

The  penalty  for  delay  In  funding  the  Coast- 
al Zone  Management  Legislation  enacted  last 
fall  has  been  lack  of  action  In  some  states 
and  uncoordtnated  action  In  others. 

National  objectives  for  VS.  domestic  and 
International  flsherteo  are  in  dlsaurray. 

These  are  strong  words,  and  they  come 
from  a  distinguished  committee  NACOA 
went  on  to  .say: 

The  theme  which  runs  through  moet  sec- 
tions of  this  Report  is  about  organization 
for  the  management  of  marine  and  atmos- 
pheric affairs,  and  what  the  lack  of  orga- 
nization does  In  certain  critical  areas. 

Th«  old  backing  is  weakening,  for  oceanic 
affairs  especially  .  .  .  nothing  is  taking  its 
place  even  though  the  national  need  in  ocean 
affairs  grows  larger. 

What  lies  behind  these  assertions? 
Here  are  a  few  symptoms  of  the  loss  In 
national  leadership  and  retreat: 

During  the  past  3  years,  virtually 
no  policy  Initiatives  dealing  with  the 
oceans  have  been  taken  by  ofiQcers  of  the 
executive  branch.  Neither  has  there  been 
a  clear  restatement  of  goals  or  determi- 
nation to  nurture  prior  ones. 

Government-wide  funding  has  leveled 
off  for  3  years  in  a  row,  and  support  for 
the  presldentlally  initiated  International 
Decade  of  Ocean  Exploration  has  failed 
to  mature.  Sea  grant  has  hit  a  premature 
plateau. 

Our  voice  at  international  conference 
tables  has  too  often  become  a  flaccid 
reaction  to  ploys  and  stratagems  of  other 
participants. 

The  annual  report  of  the  President  on 
ocean  affairs,  required  by  the  Marine  Re- 
sources and  Englneerln."  Development 
Act  of  1966,  was  7  months  late  In  1972.  8 
months  late  in  1973.  And  It  is  only  a  pale 
shadow  of  earlier  editions  that  set  forth 
bold  policy  initiatives  adopted  by  the 
Chief  Executive  and  a  candid  recital  of 
shortfall  In  accomplishments. 

The  Marine  Council  which  provided  a 
significant  Federal  focus  In  1966  was  dis- 


established in  1971.  The  Office  of  Science 
and  Technology  which  Inherited  the 
Coimcil's  role  of  advising  and  assisting 
the  President  was  disestablished  on  July 
1,  1973.  Its  responsibilities  were  assigned 
to  the  already  busy  Director  of  the  Na- 
tional Science  Foundation.  He  has  set  up 
a  Science  and  Technology  Policy  Office  in 
.N'SF  to  assist  him.  We  need  only  compare 
the  present  situation  .ith  that  4  years 
ago.  Then  the  President  had  help  from  a 
creative  policy  planning  capability  iri 
marine  affairs.  It  was  led  by  the  Vice 
President,  especially  in  keeping  the  11 
Federal  agencies  involved  from  running 
off  in  22  directions.  It  was  energized  by 
a  presldentlally  appointed  staff  director 
and  20  professionals  dealing  with  Gov- 
ernment-wide issue.":  from  an  independ- 
ent perspective.  Today  the  same  Gov- 
ernment-wide activity  is  led  at  a  sub- 
stantially lower  policy  level,  with  at  most 
two  to  three  full-time  stafT  assistants. 

In  the  meanwhile,  the  requirement  for 
stronger  internal  managemeiTVi»»«p«ases. 
For  despite  the  creation  of  NO.\.\  lo  con- 
solidate some  activities,  more,  not  fewer, 
agencies  are  Involved.  Bureaucratic  in- 
fighting has  again  become  Infiamed  In 
the  absence  of  high-level  steering,  there 
Is  grave  hazard  that  familiar  administra- 
tive diseases  of  delay,  duplication,  and 
timidity  will  further  weaken  the  pro- 
gram. 

The  consequences  of  such  abdication 
in  management  can  only  be  estimated. 
First,  domestically: 

QQr  fishing  fieet  declines — and  ap- 
parently is  unable  to  provide  our  national 
demtind  for  fish  products  at  competitive 
prices ; 

Our  balance-of-payments  deficit  in 
marine-related  resources  Increases 
yearly; 

Shoreline  areas  which  cannot  indefi- 
nitely absorb  insults  of  man-induced 
change  are  increasingly  vulnerable  to 
depredation  because  marketplace  eco- 
nomics put  emphasis  cai  short  term  bene- 
fits to  private  investors  and  seduction  of 
local  jurisdictions; 

Baseline  data  needed  to  facilitate  vrise 
decisions  in  coastal  management  are  not 
available ;  ^ 

Superport  development  ls*'TJiished  to 
lower  costs  of  oil  transportation,  with 
little  evaluation  of  the  total  costs  in  port 
construction,  disruption  of  shoreside  pe- 
troleum transportation,  and  secondary 
social  and  economic  Impacts  of  siting; 

U.S.  Industry  Increasingly  faces  for- 
eign competition  where  the  national  gov- 
ernments of  other  countries  share  costs 
and  risks  with  their  maritime  Industries. 

This  abstract  of  domestic  consequences 
portrays  only  a  portion  of  the  problem. 
We  should  never  forget  that  112  nations 
front  on  the  sea,  and  although  the  ocean 
has  served  as  a  shield  and  a  buffer 
sigainst  aggres.sion.  it  also  has  a  potential 
for  rekindUng  conflict;  all  nations  9se 
seeking  to  identify  their  dividends  from 
the  sea.  Mounting  U.S.  interest  is  thus 
matched  by  that  of  other  countries,  and 
old  rivalries  and  conflicts  could  well  be 
projected  to  the  ocean  arena.  When  cta- 
slderlng  these  prospects.  In  a  world  again 
recently  torn  by  war.  there  are  oppor- 
tunities for  collective  and  harmonious  re- 


lationships, CMiduclve  to  world  order. 
The  United  States  has  a  clear  opportu- 
nity for  leadership.  Indeed,  for  a  few 
short  years  in  the  late  1960's.  it  dis- 
played that  leadership. 

Prestige  is  still  an  Important  diplo- 
matic tool  in  a  world  jarred  by  militant 
nationalism.  The  drawing  of  artificial 
national  boundaries  which  is  a  standard 
practice  m  world  politics  is  simply  in  con- 

fct  with  laws  of  nature  governing  the 
sea.  We  could  collaborate  with  other 
countnes  having  less  technological  ma- 
tuniy,  to  share  our  maritime  capabilities 
to  extract  offshore  oil  and  gas  to  meet 
worldwide  needs:  we  could  renew  efforts 
to  produce  fish  protem  concentrate  and 
other  innovative  products  to  help  meet 
worldwide  hunger;  we  could  share  ocean- 
ographic  data  promptly  and  effectively 
with  nations  lacking  research  capabiU- 
lies.  These  can  be  responsible  and  re- 
spected steps  toward  world  leadership. 

The  resolution  introduced  w^th  this 
message  is  an  effort  to  arrest  our  mari- 
time retreat,  to  erase  present  corJuslon 
as  to  priorities  at  home  and  abroad,  to 
facilitate  intramural  communicauons 
within  Government  and  those  between 
Government  and  industry,  to  again 
match  resources  to  goals,  to  mount  a 
vigorous  program  of  technological  initia- 
tives aimed  at  transferring  the  potenual 
of  the  sea  to  meet  goals  of  a  stable  eco- 
nomic well-being,  wholesome  environ- 
ment and  human  satisfaction  at  home. 
to  recognize  the  responsibility  of  the 
Government  for  world  order  sought  by 
all  peoples,  and  for  stewardship  of  the 
global  environment.  In  accordance  wnth 
its  jurisdiction  under  rxil^  XX\'  of  the 
standing  rules,  and  under  secnon  134(a) 
and  136  of  the  Legislative  Reorganiza- 
tion Act  of  1946,  the  Commerce  Com- 
mittee and  its  ex  officio  members  would 
serve  as  an  Eigent  of  the  Senate  to  im- 
dertake  a  full  and  complete  investiga- 
tion of  the  evidence  of  marine  neglect, 
thoroughly  probe  its  causes,  report  its 
findings  and  make  recommendations  for 
legislative  remedy  in  a  timely  fashion. 

The  Federal  Government  has  a  key 
role  to  play,  partly  because  so  many  re- 
sources are  common  property  and  must 
be  treated  as  a  public  trust,  because  CMily 
the  Grovernment  can  sen-e  as  steward  for 
the  environment  to  preserve  it  for  future 
generations  and  because  only  the  Gov- 
ernment can  reconcile  the  disparate  sec- 
tors having  interest  in  the  ocean  and  es- 
tablish a  rational  basis  for  imdevel- 
oped  partnerships  with  the  private  sec- 
tor, rehabilitate  fisheries  and  accelerate 
balanced  development  of  offshore  energy 
and  mineral  reserves.  All  interests  look 
to  the  Government  to  support  the  neces- 
sary research  and  surveys,  to  understand 
the  vast  marine  world  we..wlsh  to  turn 
to  the  service  of  man.  Only  the  Govern- 
ment can  establish  rules  for  safe  naviga- 
tion and  only  the  Government  can  pro- 
ject the  moral  principles  in  the  interna- 
tional community  to  head  off  anarchy. 

The  present  policy  vacuum  in  marine 
activity  brings  to  mind  a  btn  mot  by 
Oliver  Wendell  Holmes  Speaking  of  our 
ship  of  state,  he  said: 

We  must  sail,  sometimes  with  the  wind. 
and  sometlmrts  against  it — but  we  must  sail 
and  not  drift  nor  lie  at  anchor. 


12:^94 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  197$ 


Indeed,  we  cannot  again  permit  a  stag- 
nation of  our  marine  interests. 

The  challenge  is  at  least  as  great  as 
It  was  15  years  ago  when,  by  dedication 
of  the  Congress,  the  Nation  was  awak- 
ened to  the  stake  our  Nation  and  all 
mankind  have  in  the  sea. 

We  deal  today  with  a  constant  trip- 
hammer A  crises.  And  issues  usually  find 
support  bv  a  vocal  constituency  pressing 
for  attention.  The  oceans  present'  no 
commandin!?  crises.  And  has  been  so 
.  often  remarked,  it  lacks  a  resident  con- 
stituency: the  fish  Indet^d  do  Oft  vote. 
Nonetheless,  real  crises  mey  Wevelap 
without  sufTicient  attention  paid  to  them 
and  an  iniierenCTJiiderrepresentation  of 
the  opportumties  and  coligatlons  orTered 
by  the  sea  and  its  resources  to  help  solve 
pressing  nation?!  problems  remiires  that 
the  Go\-errjnent  itself  act  as  a  sort  of 
ccn.«:tltuency  or  advccrte  for  options  not 
forwarded  by  parochial  Interests.  In- 
deed, this  is  the  fundamental  embodi- 
men:  of  the  concept  of  stewardship  for 
the  public  trust.  Under  these  constraints, 
progress  requires  a  deliberp.te  act  of  po- 
litical will.  We  cannot  afTord  to  default 
a  third  time 

I*t  us  set  about  mcbllizlng  our  techfil- 
cal  skills  an.i  our  Imagination  with  the 
political  will  to  deal  with  public  man- 
agement, to  meet  the  premise  of  the  sea. 
Mr.  President.  I  ask  unanimous  con- 
sent that  an  additional  400  copies  of  the 
resolution  be  printed  for  the  use  of  the 
Senate. 

The  PRESIDING  OFFICER  Without 
objection.  It  Is  fo  ordered 

Mr.  MAONUSON.  Mr.  President,  in 
addition,  I  ask  imanlmous  consent  at 
this  point  to  have  printed  in  the  Record, 
in  its  entirety,  a  statement  bv  my  dis- 
tlngul<'hed  colleague.  Senator  Hollincs. 
who  cannot  be  here  today  becnu«;e  of  hi.? 
present  hospitalization.  Senator  Hol- 
Lracs  serves  on  our  Committee  on  Com- 
merce as  chairman  of  the  Oceans  and 
Atmosphere  Subcommittee.  Senator 
HoLLiNGS  has  worked  long  anj  tirelessly 
on  behalf  of  our  Nation's  oceans  pro- 
grams and  has  brought  to  the  attention 
of  this  Senate  on  many  occasions  the 
need  to  improve  our  Federal  oceans  pro- 
grams. Upon  approval  of  this  iiesoluMan, 
Senator  HotLnJcs  will  be  named  to  chair 
this  special  oceans  policy  study  within 
our  Conmierce  Committee. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered 

OCILA.N  Pos-rcT  Resolction 
(Statement  by  S«nator  Hollinqs* 
Mr.  President,  the  Senate  P.esolutlon 
which  we  are  submitting  todiy  authorises 
a  National  Ocean  Policy  Study  by  the  Com- 
merce Committee,  working  with  other  In- 
terested committees,  which  wui  contribute 
Immensely  to  the  welfare  and  well-being  of 
the  people  ot  the  United  States. 

There  la  no  State  In  the  Union  that  does 
not  depend  on  the  oceaai.  directly  or  Lndl- 
rectly.  particularly  at  this  time  of  crisis. 
The  energy  crisis  has  descended  upon  us  like 
a  tornado,  threatening  to  disrupt  In  Its  wake 
ail  sectors  of  our  economic,  social,  and  po- 
litical life.  But  through  the  rising  dust  we 
see  a  bright  light  of  hope  emanating  from 
our  ocean  domaUi. 

There  is  no  need  to  reiterate  and  enumer- 
ate the  long  list  of  potential  ocean  resources. 
Instead.  I  believe  that  a  major  portion  of 
America's  hope  lies  in  its  seapower   By  sea- 


power  I  do  not  mean  only  the  mUltary,  but 
also  the  wide  spectrum  of  economic  sea 
power — a  Large,  modem  merchant  marine; 
a  healthy,  growing  fishing  industry;  a  dy- 
namic ocean  research  program;  leadership  In 
ocean  technology:  ocean  policy  posUlona 
that  represent  national  self-interest  In  In- 
ternational negotiations:  progressive.  Intel- 
ligent coastal  zone  management;  and  an 
ocean  business  climate  that  encourages  In- 
dustry to  tap  all  of  the  potential  resources 
of  the  sea. 

There  is  also  no  need  to  reiterate  and 
enumerate  the  long  list  of  potential  '^^an 
resources.  Instead,  I  would  like  to  point  out 
that  the  decline  In  .American  sea  power  has 
had  a  direct  impact  on : 

The  present,  energy  crisis  which  threatens 
to  get  worse. 

The  embarrassing  and  frightening  plunge 
of  the  US.  dollar  on  world  money  markets; 
Inflation  here  at  home; 
Signs  of  pending  raw  materials  shortage*; 
Lower  demand  and  prices  for  U.S.  eirporta; 
Rising  prices  for  goods  we  buy  overseas: 
The  flood  of  foreign  goods  undercutting 
American  products  and  American  jobs  here 
at  home; 

Our  declining  prestige  and  Influence 
around  the  world;  and 

'hie  rise  In  the  economic  and  political 
strength  of  our  competltoiB  abroed. 

These  are  the  problems  that  broad-spec- 
trum seapower  must  help  solve  if  the  oceans 
are  to  enjoy  the  priority  attention  we  know 
they  deserve.  And  we  must  sharpen  the 
focus  of  America's  stake  Ln  the  oceans  into 
critical  national  perspective.  Although  the 
oceans  contain  considerable  reserves  of  oU 
and  gas.  we  find  ourselves  on  the  brink  of 
disaster  In  our  energy  supply.  Although  the 
oceans  contain  hard  mineiil  depoelts  essen- 
tial to  our  Industrial  demand,  we  find  our- 
selves Ir-'.portlng  more  and  more  of  these 
raw  materials  from  abroad.  Although  our  wa- 
ters are  replete  with  marine  life,  we  And 
ourselves  Importing  a  huge  portion  of  our 
fl5h  consumption  from  abroad. 

For  the  year  1072,  Mr  President,  the  total 
U.S.  balance  of  pajinents  deficit  was  more 
than  $10  bUllon.  With  an  ever-Increasing 
dependence  on  foreign  sources  of  raw  ma- 
terials and  fuels,  as  well  as  manufactured 
products,  it  must  be  a  matter  of  urgent  na- 
tional policy  to  reduce  this  drain  on  our 
economic  well-being.  The  United  SUtes  had 
an  "ocean  balance  of  payments"  deficit  In 
1973  amounting  tj  irore  than  $8  billion' 
That  is  $8  billion  worth  of  ocean-related 
goods,  services,  and  mlsceUaneous  items  we 
are  being  forced  to  buy  abroad  because  we 
have  not  been  wUllng  to  provide  them  for 
ourselves. 

In  fisheries  alone  our  adverse  balance  of 
payments  last  year  was  $1.3  billion.  In  metals 
such  as  copper,  nickel,  manganese,  cobalt, 
and  iron  ore.  our  adverse  balance  of  pay- 
ments was  close  to  $1.S  billion:  yet  the  ocean 
floor  Is  literally  blanketed  with  manganese 
nodules  that  contain  all  these  metals.  We 
possess  the  knowledge  and  the  technology  to 
exploit  them,  yet  we  have  beeu  u.naSle  and 
dowtu-lght  negligent  In  providing  the  proper 
Incentive  to  encourage  their  orderly  ex- 
ploitation. 

This.  Mr.  President,  is  certainly  not  the 
fault  of  the  Congress. 

The  Congress.  Mr.  President,  has  always 
taken  the  lead  In  formulating  policy  for 
marine-related  activities  In  the  United 
States.  For  many  years  we  have  taken  the 
Initiative,  sometimes  facing  outright  opposi- 
tion from  the  Executive  Branch.  Our  eSorts 
finally  culminated  in  the  passage  of  the  Na- 
tional Marine  Resources  and  Engineering 
Development  Act  of  196fl.  We  hoped  then 
that  we  had  handed  the  ball  to  the  Adminis- 
tration and  provided  It  with  the  statutory 
wherewithal  for  a  concerted  national  effort 
for  developing  ocean  resources. 

Unfortunately,  we  are  now  back  where  we 


started  some  ten  years  ago.  To  be  sure,  we 
have  had  some  sort  of  progress.  We  have,  for 
example,  a  National  OoeanJc  and  .Mmoepheiio 
Administration  (NOAA)  and  a  Natloual  Ad- 
visory Committee  on  Oceans  and  Atmosphere. 
We  also  have  passed  the  National  Coastal 
Zone  Management  Act  In  1873.  But  our  poe- 
ture  as  a  seapower,  and  our  economic  posi- 
tion In  the  world  do  not  reflect  the  concerted 
effort  and  the  national  impetus  we  had 
hoped  for.  nationally  or  Internationally. 

Here  again,  the  Congre&s  had  to  do  battle 
with  the  White  House  In  order  to  keep  some 
national  programs  from  being  put  ou  the 
shelf.  The  details  of  some  of  these  fights 
would  fill  a  book,  but  sufllce  It  to  say  that 
certain  high-level  bureaucrats  were  deter- 
mined to  sabotage  these  programs.  They 
wanted  to  kill  the  Coastal  Zone  Management 
program  for  fear  that  it  would  help  NOAA 
achieve  a  power  base.  These  enemies  of 
NOAA  were  afraid  that  Implementation  of 
this  program  might  be  a  major  step  toward 
the  kind  of  strong.  Independent  oceans  agen- 
cy orlglnaUy  sought  by  the  Stratton  Com- 
mission and  still  desired  by  the  Congress. 

Then  we  have  had  the  constant  chipping 
away  at  NOAA  by  other  Departments  that 
jealously  eyed  the  coastal  eone  and  the  ocean 
ever  since  NOAA  was  created.  They  have  seen 
that  the  future  of  the  United  States  will  be 
closely  tied  to  the  ocean — as  a  soiu'ce  of 
minerals  toid  fuels,  for  living  resources,  for 
direct  energy  production,  for  recreation,  for 
transi>ortatlon,  and,  of  course,  as  a  major  fac- 
tor In  land  use  management. 

Although  the  Office  of  Management  and 
Budget  finally  reversed  Its  opposition  and 
funded  the  Coastal  Zone  Management  Act. 
there  Is  very  little  evidence  to  IndicaCe  aa 
end  to  the  kind  of  Inter-ageury  Jealousy 
which  has  stood  In  the  way  of  legitimate 
NOAA  programs. 

The  President's  formerly  proptosed  Depart- 
ment of  Energy  and  Natural  Resoiu'ces  wtis 
certain  to  promote  further  friction  and 
smother  our  beleaguered  oce-^n  program.  Mr. 
President.  I  favor  an  independent  agency  to 
administer  our  national  ocean  programs.  I 
believe  that  we  are  not  going  to  be  able  to 
(,=t  the  job  done  If  our  oceans  agency  is 
scattered  among  a  handful  of  agencies  or 
submerged  lato  a  new  monster  department. 
And  because  of  the  meager  attention  to 
ocean  matters  that  the  President  has  shown, 
the  proposed  organization  Is  not  the  direc- 
tion we  must  take 

We  need  a  strong  ocean-related  Federal 
agency.  And  I  have  every  hope  that  Congress 
wUl  use  the  occasion  of  debate  on  this  matter 
to  raise  some  serious  questions  about  our 
present  Peder.J  oceans  programs.  I  also  hope 
that  the  study  authorized  In  this  Senate 
Resolution  will  sl:ow  the  need  for  a  cen- 
tralized oceans  agency,  not  just  another 
bureaucratic  reshuffling. 

I  believe  the  United  States  must  have  an 
oceans  goal  on  the  national  level.  I  believe 
It  is  vital  that  we  let  certain  major  priorities, 
and  then  go  after  them  with  all  of  our  talent 
and  Imagination.  But  In  order  to  set  national 
goals,  the  government  needs  the  help  of  the 
brightest  minds  la  private  Industry  and  in 
colleges  and  unUersltles.  There  ought  to  be 
a  central  focal  point  In  Washlngto.:  which 
Congress  cm  reach  for  information  and  sup- 
port 1:1  policymaking 

We  have  all  got  to  start  taking  a  little 
different  tack  If  we  are  going  to  get  a  sound 
oceans  program.  Too  few  Americans  are  alive 
to  the  great  promise  of  the  oceans.  Too  few 
understand  how  closely  matched  .ire  the 
fate  of  the  human  species  and  the  fate  of 
the  oceans 

After  all  my  years  in  politics  and  my  cloee 
friendship  with  many  political  figures,  1 
know  why  some  programs  succeed  and  others 
fall  Thoee  which  succeed  not  only  make  Im- 
portant contributions  to  national  needs,  but 
they  have  popular  support.  The  best  plans 


'N 


Dece^nber  19,  197  S 


CONGRESSIONAL  RECORD  —  SENATE 


42395 


V 


and  the  finest  technology  all  are  wasted 
without  the  support  of  Mr.  and  Mrs.  Avertge 
American.  There  simply  will  be  no  sound 
ooeanfi  program  unless  thoee  Ln  science  and 
business  join  forces  with  us  in  the  political 
arena.  Together,  we  can  make  sure  that  leg- 
islation affecting  ocean  affairs  doesn't  get  lost 
for  lack  of  a  constituency. 

We  are  hoping  that  this  study  will  help 
us  develop  a  national  constituency.  We  can 
do  It  by  relating  national  ocean  needs  ad 
CHaportunltles  to  the  critical  national  prob- 
lems that  face  our  country.  We  can  do  it  by 
demonstrating  the  dependence  between 
Americans  and  the  oceans.  We  can  prove 
that  a  comprehensive  and  well-funded  pro- 
gram Is  an  urgent  necoaslty. 

In  a  time  of  unemployment,  it  can  offer 
jobs.  In  a  time  of  rapldly-dlsappearlng  tech- 
nological superiority  for  the  United  States, 
It  offers  the  project  of  innovation  and  re- 
newal. In  a^time  of  national  drift.  It  holds  out 
challenge  and  opp>ortunlty.  And  In  a  time 
when  the  future  of  mankind  Is  by  no  means 
guaranteed.  It  offers  the  hope  of  human 
survival.  And  I'm  talking  about  vi'U  Issues: 
food,  Jobs,  Industrial  growth,  balance  of  pay- 
ments, .transportation,  recreation,  environ- 
mental protection,  and  ultimately,  even  our 
own  siu  ivalj,. 

The  UiiltW  States  must  make  a  commit- 
ment. That  commitment  must  be  to  fulfill 
the  goal  of  scientific  and  Industrial  research 
and  development  of  the  oceans  for  the  benefit 
of  aU  Americans  and  for  future  generations. 

First,  we  must  be  able  to  explore  and  ex- 
ploit the  resources  of  the  ocean  and  ocean 
floor  for  protein,  minerals,  chemicals,  and 
other  benefits  to  the  limits  of  our  national 
capabilities. 

Secondly,  we  must  guarantee  the  protec- 
tion and  preservation  of  coastal  lands  and 
waters  and  the  deep  ocean  from  the  degrada- 
tion of  manmade  pollution.  In  this  way,  the 
living  bounty  of  the  sea  can  be  managed  and 
utilized  wisely. 

The  United  States  must  seize  the  Initiative 
In  the  ocean.  We  can  lead  the  way  in  attack- 
^  Ing   marine   pollution  which   threatens   life 
In  the  ocean. 

We  can  lead  the  way  in  managing  land 
use  In  the  coastal  zone  for  the  80  percent  of 
our  population  which  will  Inhabit  this  area 
by  the  year  1990. 

We  can  lead  the  way  in  developing  the 
skills  necessary  to  safely  utilize  the  minerals 
on  and  below  the  ocean  floor. 

We  can  create  thousands  of  new  jobs  for 
unemployed  or  i;nder-employed  wrrker.s  who 
may  become  displaced  by  changes  of  job  pat- 
terns. And  by  so  doing,  we  can  capture  the 
Imagination  and  dedication  of  our  young 
people.  By  setting  such  a  goal,  we  will  be  able 
to   help   re-klndle   the   American   spirit. 

The  oceans  present  th.^last  frontier  on 
earth.  TTev  offer  the  challenge  of  knowledge 
and  motivation  of  the  human  spirit.  But,  Mr. 
President,  we  seem  to  lack  the  adequate 
knowledge  and  the  necessary  motivation. 

It  is  for  this  reason  that  this  Resolution 
Is  being  Introduced.  We  hope  to  bring  up 
to  date  the  national  and  International  de- 
velopments In  ocean  technology:  we  hope  to 
focus  national  attention  on  the  promise  of 
ocean  space;  and  we  hope  that  Congress  end 
the  Executive  would  finally  lock  to  the  ma- 
rine environment  as  a  national  goal  that  de- 
serves much  more  attention  and  a  greater 
long-range  commitment  than  the  space  pro- 
gram. 

Mr.  MAGNUSON,  Mr.  President,  the 
distinguished  Senator  from  Mississippi 
was  called  back  to  his  State  late  yester- 
day. He  has  been  In  the  front  rank  of  our 
leadership  in  ocean-related  activities 
with  special  emphasis  on  matters  Involv- 
ing our  country's  fishing  Interests. 

I  ask  unanimous  consent  that  his 
statement  in  support  of  the  Oceans'  Pol- 


icy Resolution  be  printed  In  the  Record 
at  this  point. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Statement  bt  Sbnatob  Kastlakd 

I  am  pleased  to  be  a  sponsor  of  the  Senate 
Oceans  Policy  Resolution  which  wUl  provide 
the  Congress  and  the  people  of  the  United 
States  with  an  assessment  of  the  potential 
of  ocean  resources  for  meeting  both  present 
and  prospective  national  needs. 

This  resolution  authorizes  a  series  of 
studies  to  Identify  and  describe  the  living 
and  non-living  resouroes  of  the  ocean  In 
terms  that  will  be  meanlngfiU  In  our  efforts 
to  chart  America's  future.  They  will  examine 
the  technological  and  legal  capabUltles  nec- 
essary to  the  development  of  an  effective  na- 
tional ocean  comi)etence. 

Present  p>oUcles  and  Institutional  struc- 
tures having  to  do  with  tlTe  sea  will  be  In- 
vestigated and  evaluated,  and  recommenda- 
tions will  be  made  for  more  ptirposeful  ac- 
tions and  directions  of  national  effort.  The 
extent  of  the  national  dependence  on  the 
ocean  and  Its  resources  will  be  detailed  in 
both  a  qualitative  and  a  quantitative  sense. 
Finally,  the  impacts  of  prospective  activities 
on,  in  and  under  the  ocean  wlU  be  deter- 
mined, and  careful  consideration  vrtli  be 
given  to  the  means  of  mtniTntying  adverse 
environmental  effects  on  the  ocean  and  its 
resources. 

Both  the  Senate  and  the  House  of  Rep- 
resentatives can  be  proud  of  the  many  ocean 
initiatives  launched  by  the  Congress  during 
the  last  decade.  There  was  resounding  evi- 
dence of  this  awareness  Just  last  week  when 
the  Hou.se  overwhelmingly  approved — by  405 
to  :  othlng — Senate  Concurrent  Resolution 
1 1  Introduced  by  myself  and  43  other  of  our 
colleagues  earlier  this  year.  The  Senate  had 
unanimously  approved  this  Resolution 
earlier.  Thus,  the  Congress  has  made  Its  feel- 
ing known  on  this  matter  in  a  manner  that 
must  be  loud  andjclear  to  all. 

S.  Con.  Res.  11  will  enable  us  for  the  first 
time  to  assess  the  problems  and  needs  of 
our  commercial  fishermen.  We,  the  Congress, 
will  make  this  determination  by  going  to  the 
fishermen  themselves,  llBtenliig  to  their  story, 
their  complaints  and  their  suggestions.  For 
too  long,  now,  national  fisheries  policies — If 
Indeed  there  have  even  been  fisheries  pol- 
icies— ha\e  been  dictated  by  bureaucrats — 
men  who,  for  the  most  part,  don't  know  a 
gill  net  from  a  shrimp  trawl,  a  trotllne  from 
8  dredg?,  a  purse  seine  from  an  eel  pot.  My 
fishermen  friends  In  MlssLsslppl  would  have 
put  that  much  more  colorfully! 

For  over  a  decade — Washington  based 
"specialists'"  have  watched  the  decline  and 
fall  of  the  American  commercial  fishing  in- 
dustry, while  at  the  same  time  obpervlng, 
reporting  and  doing  nothing  effective  about 
the  catastrophic  rise  of  foreign  fishing  ef- 
forts often  within  sight  of  our  coasts.  In 
that  period  the  Federal  Government  has 
spent  literally  hundreds  of  millions  of  dol- 
lars, Mr.  President,  with  seemingly  little  more 
result  thsm  to  increase  our  dependence  on 
foreign  supplies  of  fish. 

The  coastal  waters  of  the  Atlantic  and 
Pacific  Ocea'is  and  the  Gulf  of  Mexico  pro- 
vide !iome  of  the  most  productive  fisheries  In 
the  world.  Within  12  mUes  of  the  coast  the 
rights  of  U.S.  fishermen  are  more  or  less  pro- 
tected to  the  extent  that  foreign  fieets  are 
not  permitted  within  this  contiguous  zone. 
The  quantity  of  fish  avaUable  for  the  catch- 
ing within  this  zone,  however,  is  directly  af- 
fected by  the  degree  of  flshtag  efTort  Immedi- 
ately beyond  the  13  mile  limit,  and  It  Is  to 
this  region  beyond  the  13-mUe  limit  that  I 
would  like  briefly  to  address  myself. 

Just  outside  the  United  States  12  mile 
limit  almost  four  million  metric  tons  of  fish 
are  taken  each  year.  Of  that  total  American 
fishermen  take  only  about  300,000  tons. 
Giant  Industrial  fishing  fiotlllas  from  Russia 


take  over  one  mUUon  tons,  while  the  Japa- 
nese take  over  two  million.  Much  of  this 
catch  we  buy  back  after  It  has  been  processed 
by  foreign  labor.  Why  Mr.  President,  in  one 
month  of  this  year,  June  1973,  nine-hundred 
and  twenty-seven  foreign  fl,shirg  vessels 
were  counted  In  waters  beyond  the  12  mUe 
limit  of  the  contiguous  48  states  and  Alaska. 

Of  these,  683  were  Japanese,  and  377  were 
Russian.  And,  even  these  numbers  are 
leading.  These  are  not  the  small 
trawlers  so  typical  of  the  American  ffa^ing 
fieet.  These  are  factory  stern  trawlers  of 
3,000  deadweight  tons  or  more,  mother  fac- 
tory ships  of  up  to  15,000  tons  and  countless 
catcher  vessels,  every  one  cA  which  Is  larger 
than  most  ot  the  American  boats  that  must 
compete  with  them.  In  1973  alone  the  Rus- 
sian Investment  In  Its  fishUig  fieet  was  over 
one  blUlon  dollars.  The  annual  Soviet  fish- 
ing harvest  has  Increased  from  a  little  less 
than  three  million  tons  In  1958  to  over  eight 
million  tons  today. 

As  a  result  of  the  sad  plight  of  American 
commercial  fishing,  over  sixty-five  percent 
of  this  nation's  annual  consumption  of  fi&h 
and  fish  products  Is  Imported.  That's  up  from 
40%  In  1960,  only  13  years  ago.  In  1960  the 
United  States  suffered  an  adverse  balance 
of  payments  In  its  trade  of  fish  and  flah 
products  of  $319iCmllllon.  Last  year  It  was 
one  and  a  third  billion — a  four  hundred  per 
cent  Increase!  Our  total  adverse  balance  of 
payments  for  trade  In  all  goods  and  serv- 
ices In  1972  was  $4.6  bUllon.  Fish,  Mr.  Preel- 
dent,  accounted  for  almost  a  third  of  that 
deficit,  fiah  we  could  have  and  should  have 
caught  within  a  few  mUes  of  our  own  shore. 

The  National  Oceanic  and  Atmospheric  Ad- 
ministration and  its  National  Marine  Fish- 
eries Service,  I  understand  are  trying  to  de- 
velop "new  and  meaningful  national  fish- 
eries policies,"  and  have  been  trying  to  do 
so  for  some  time.  It  seems  that  the  Office  of 
Management  and  Budget  wants  to  know  Just 
why  It  is  that  budget  requests  for  fl,sherles 
support  and  reseaxch  keep  going  up  while 
the  proportion  of  American  needs  filled  by 
our  fishermen  keeps  going  down.  It  is  a  fair 
question,  and  one  which  we,  too,  have  been 
asking.  It  Is  one  we  Intend  to  answer,  and  we 
wHl  do  so  not  by  pontificating  from  Wash- 
ington but  by  going  cut  to  the  fishermen 
themselves.  The  men  who  wear  the  boots 
and  go  out  on  the  boats  have  been  the 
last — It  seems — to  be  asked.  We  are  about 
to  move  them  up  to  first. 

But.  Mr.  President,  fisheries  Is  not  the  only 
dependence  America  has  on  the  ocean  and 
its  resources.  As  coastal  s^tes  go,  Missis- 
sippi has  only  a  comparatively  short  coast- 
line, but  that  belles  our  status  as  a  mari- 
time state.  Mississippi  is  fifth  In  the  nation 
In  tonnage  of  landed  fisheries  catch.  Includ- 
ing* shrimp,  oysters,  me.ihaden  and  a  great 
variety  of  others.  Her  great  shipyards  at  Pas- 
cagoula  construct  both  warships — including 
nuclear  submarines — and  the  most  modem 
merchant  ships.  Pascagoula  and  Oulfport 
are  both  ocean  ports.  International  trading- 
ports.  Mississippi  has  some  6.000  acres  In  fish 
farms.  We  have  some  of  the  finest  sport  fish- 
ing In  the  world.  Mississippi.  Mr.  President, 
Is  not  only  a  coastal  state.  It  Is  an  ocean  state. 
As  a  coastal  state  it  has  all  the  direct  In- 
terests in  coastal  resources  and  activities  that 
all  coastal  states  have. 

But,  it  also  has  the  Indirect  mterests — 
Just  as  critical,  just  as  vital — In  the  ocean 
and  ocean  resources  that  all  of  our  60  United 
States  have. 

The  oceans  are  America's  first  line  of  mUl- 
tary defense.  Our  Ballistic  Missile  submarine 
fieet  Is  a  nuclear  deterrent  that  the  enemy 
cannot  find  and  cannot  counter.  It  Is  also  a 
deterrent  that  removes  the  threat  of  a  pre- 
emptive strike  far  from  our  shores  and  our 
people.  Our  naval  surface  forces,  which  we 
have  allowed  to  decline  to  a  dangerously  low 
level,  help  assure  the  freedom  of  the  hl^ 
seas  trade  routes  and  show  the  flag  In  many 


42396 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  19,  1973 


p&rta  of  tbe  wcrld  wher«  Amerlcaa  prestJce 
lA  Important.  Tbey  are  also  available  for 
timely  responsea  when  some  local  urgency 
requires  a  show  of  force  or  the  protection  of 
American  life  and  property.  Unfortunately. 
Ruasia  now  flelda  tbe  world's  most  powerful 
Navy. 

Tbe  oceans  also  constitute  America's  first 
line  of  economic  defense.  The  United  States 
is  still  the  world's  greatest  trading  nation, 
and  ships — sadly — mostly  foreign  ships,  but 
■hips  nevertheless — carry  the  vast  majority 
of  our  •150-bUlton-plus  of  annual  interna- 
ttonal  trade  Serious  Interruption  of  this 
trade  would  have  a  far  more  dlsasterous 
effect  on  the  American  economy  than  we  now 
suCer  from  the  energy  crisis — for  not  only 
wovld  It  cut  off  Imports  of  petroleum  and 
other  fuels— but  also  It  would  sever  our  sup- 
plies of  critical  raw  materials — ores  and  con- 
centrates, for  example,  of  copper,  iron,  alumi- 
num, cobalt,  manganese  .  .  sixty-nine  In 
all  of  Che  seventy-two  Industrial  raw  ma- 
terials considered  critical  to  the  functioning 
of  the  American  economy  and  of  which  we 
must  Import  all  or  part.  Further,  it  would 
block  us  tfom  erportlng — blunting  the 
economy  with  a  sudden  annual  cutback  of 
sales  in  goods  and  services  worth  over  *70 
bUllon  a  year.  Such  an  eventuality  Is  simply 
Inconceivable.  And — It  would  be  unaccept- 
able 

I  would  like  to  mention,  too.  that  because 
so  little  American  trade  moves  in  American 
flag  vessels,  the  United  States  annually 
suffers  an  adverse  balance  of  payments  in 
fees  for  handling  this  freight  of  between 
•750  million  and  11  bUlton  Fisheries  and  the 
haulage  of  ocean  freight,  then,  account  for 
roughly  half  the  nation's  adverse  trade  bal- 
ance Considering  that  this  adverse  balance 
of  payments,  more  than  anything  else.  Is  re- 
sponsible for  the  sharp  and  repetitive  de- 
valuations of  the  American  dollar  In  world 
money  markets — and.  recognizing  that  this 
devaluation  is  a  major  driving  force  of  In- 
flation here  at  home,  the  reasons  for  suppcn^- 
ing  the  Senate  Oceans  Policy  Resolution 
are — In  my  Judgment — crystal  clear. 

There  are  more  reasons,  however,  equally 
as  persuasive.  A  major  contributing  factor 
In  the  present  energy  situation  has  been  our 
failure  to  develop  our  own  offshore  oil  and 
gas  deposits  with  sufficient  speed  and  deter- 
mination. 

Even  as  the  failure  to  take  advantage  of 
the  ocean  opportunities  provided  right  at  our 
doorstep  have  helped  to  bring  on  the  energy 
crt.sis.  so  now  will  the  exploitation  of  these 
resources  help  to  restore  our  energy  Inde- 
pendence from  others.  Failure  to  develop 
these  resources  in  time  is  not  entirely  in- 
dustry's fault.  Oovemment  policies  must 
share  the  blame  Since  Cc.igress  must  ulti- 
mately enact  legislation  In  the  Implemeuta- 
tlon  of  new  energy  policies,  the  Congress 
must  know  itself  v;hat  the  energy  situation 
really  is — what  U  will  be  In  the  future — 
what  resources  are  available  to  the  United 
States  and  what  policies  and  actions  are 
n«c0ssar>-  to  their  Intelligent  exploitation  .  . 
and  how  that  exploitation  can  be  best 
achieved  with  a  minimum  of  environmental 
damage.  It  is  one  purpose  of  the  Senate 
Oceans  Policy  Reaolutlon  to  exanilne  the 
roles  of  ocean  resources  In  casing  the  energy 
crisis  la  the  years  Immediately  ahead  and  In 
aas'orlng  that  in  the  future  we  will  never 
again  permit  ourselves  to  be  at  the  mercy 
^  foreign  powers,  a^;  «e  are  no-A- 

8ome/of  cur  colieag'.es  in  speaking  in 
support  of  this  Resolution,  Mr  Pre?=.ldent. 
have  warned  that  we  may  soon  be  in  a  raw 
materials  crisis  no  leas  critical  to  oi:r  well- 
being  thari  the  energy  problem  Kxtenslve 
reserves  of  mineral  ores  exist  oa  and  under 
the  United  States  continental  ahelves  and 
Blop>ea.  Even  vaster  deposits  are  presently  tje- 
ing  discovered  and  proved  as  covering  great 
expanses  of  the  deep  oceanic  basins  beyond 
any  present  limits  of  national  sovereignty. 


As  weU  as  energy,  America  runs  on  raw  mate- 
rials. It  Is  the  greatest  consumer  of  raw  ma- 
terials on  earth,  and  there  are  tbo^  who 
would  like  to  see  our  supplies  cut  off,  includ- 
ing some  countries  on  whom  we  presently 
depend  for  our  supplies.  Mr  Preslde.it.  we 
cannot  afford  that  risk!  The  studies  author- 
ized in  the  Senate  Oceans  Policy  Resolution 
will  exaOiine  the  nation's  present  and  future 
stake  in  ocean  mineral  reeources,  from  the 
point  of  view  of  the  need  for  political  as  titil 
as  econcmic  Independence 

Mr  President,  the  ocejins  offer  us  o'or  best 
hope  of  Independence  from  foreign  sources 
of  supply  of  all  kinds  of  vital  fuels  and  raw 
materials.  However — tbe  clock  U  running.  It 
Is  up  to  the  Congress  to  see  to  it  that  it  does 
not  run  out — and  that  America  will — in- 
deed— achieve  her  true  dsstlny  The  Senate 
Oceans  Policy  Resolution  is  an  Important 
step  m  enabling  Congress  to  fulflll  its  re- 
sponsibilities to  that  destiny  I  urge  early 
and  favorable  consideration  of  this  Resolu- 
Uon 

Mr.  BENTSEN.  Mr  President,  In  the 
months  and  years  ahead  the  Congress 
and  the  American  people  are  going  to 
be  asked  to  take  definitive  action  on 
several  ocMin-related  issues  which  will 
prof  oimdlraffect  the  economic  and  social 
^ell-being  of  this  country  as  well  as  Its 
National  defense.  Even  now  we  are  fac- 
ing the  challenge  not  only  of  defining 
the  parameters  of  our  ocean  policy  and 
its  goals  but  also  of  bringing  a  form  of 
orderly,  rational,  and  equitable  admin- 
istration to  the  oceans  and  their 
resources. 

The  facets  of  ocean  policy  are  many 
and  touch  our  daily  lives  more  closely 
than  we  might  imagine.  In  terms  of  food 
resources,  minerals,  energy,  defense, 
transportation,  ecology,  recreation,  and 
perhaps  a  host  of  other  ways  yet  un- 
known. Each  year  the  Congress  considers 
many  Issues  arising  from  the  oceans: 
legislation  relating  to  NatlonaJ  defense, 
fisheries,  sea  grant  college  programs,  the 
merchant  marine,  off-shore  mineral  re- 
sources, coastal  zone  management,  and 
preservation  of  the  marine  ecology  come 
to  mind  Immediately. 

In  particular  the  energy  crisis  on  which 
we  are  being  asked  to  act  with  such  ur- 
gency has  direct  and  potentially  major 
implications  for  the  oceanic  waters  con- 
tinuous to  the  United  States.  Just  1  year 
hence  we  may  be  asked  to  consider  rati- 
fication of  a  wholly  new  International 
legal  regime  laying  out  new  and  untried 
niles  for  governing  the  International  use 
of  the  ocean  and  its  resources.  In  con- 
siderable measure  these  new  rules  will 
determine  the  United  States  future  rights 
on.  imder  and  over  the  high  seas  For  a 
nation  whose  marine  tradition  Is  well- 
known  and  whose  present  economic  and 
political  Integrity  is.  I  am  convinced, 
strongly  ocean  dependent,  this  Is  no 
trivial  matter. 

To  act  intelligently  on  such  Issues  and 
to  protect  and  foster  the  best  interests 
of  this  Nation,  the  Congress,  the  execu- 
tive branch  and  the  people  of  the  United 
States  need  to  be  better  informed.  Oce- 
anic resources,  both  living  and  nonliving, 
both  explicit  and  imc^ied  need  to  be  more 
closely  defined  We  need  to  know  where 
they  are  and  what  they  are  How  acc'tes- 
slble  are  they — physically,  economically, 
and  politically?  What  are  the  technologi- 
cal requirements  of  their  exploitation? 


How  great  will  be  the  national  need  for 
them?  What  share  can  we  reasonably  ex- 
pect of  those  that  are  located  in  or  under 
international  waters?  Can  they  l>e  ex- 
ploited without  materially  degrading  the 
oceanic  envlroiiment.  without  conse- 
quently llmltliig  the  avallabihty  or  use- 
fulness of  other,  perhaps  equally  as  im- 
portant, oceanic  resources? 

In  a  word,  we  need  to  know  the  Na- 
tion's present  and  future  stake  In  the 
ocean.  If  we  are  to  expect  the  Congress — 
not  to  mention  the  executive  branch — to 
approve  the  allocation  of  a  share  of  na- 
tional resources  to  the  development  of  a 
sound  and  competitive  ocean  capability, 
we  must  show  both  clearly  and  directly 
the  Nations  need  for  oceanic  resources. 
Broad  generalities  are  not  going  to  do 
the  trick.  They  have  not  done  it  in  the 
last  15  years,  and  they  will  not  now. 

For  such  reasons  I  count  myself  as  an 
enthitsiastlc  cosponsor  of  Senate  Resolu- 
tion 222  "to  authorize  a  study  of  the 
cceans  and  to  establish  a  national  oceans 
policy"  Some  of  you  may  ask:  What? 
Not  another  ocean  study  Well.  I  cannot 
fault  thnt  question.  Ever  since  the  first 
big  benefit  cost  analysis  of  oceanic  re- 
sources by  the  NaUonal  Academy  of  Sci- 
ences In  1958  there  have  been  so  many 
ocean  studies  and  reports  by  the  Con- 
gress, various  administrations,  more  by 
the  National  Academy  of  Sciences  and 
countless  Independent  organizations  that 
we  are  virtualTy  afloat  on  a  sea  of  oceanic 
paper. 

No.  this  Is  not  to  be  Just  another 
oceanic  study.  The  Intention  this  time  Is 
to  clearly  outline  the  need  for  and  poten- 
tial of  oceanic  resources,  and  the  solution 
of  present  and  the  avoidance  of  future 
critical  national  problems.  The  energy 
crisis  Is  a  case  In  point.  There  Is  no  need 
to  expound  It  here:  It  Is  everywhere  about 
us — not  only  in  America  but  throughout 
much  of  the  rest  of  the  world.  In  large 
measure  energy  today  is  synonymous 
with  petroleum.  And.  virtually  no  matter 
how  you  look  at  it.  oil  and  ocean  are  in- 
extricably entwined.  If  you  axe  talking 
foreign  oil.  you  are  talking  mammoth 
tankers  and  the  deep-water  ports  needed 
to  receive  them,  of  which  the  United 
States  has  neither.  If  you  are  talking 
domestic  oil.  in  large  measure  and  cer- 
tainly in  the  short  term  you  are  talking 
off-shore  oil— for  the  largest  potentlad 
U.S.  reserves  of  conventional  petroleum 
resources — other  than  oil  shale  and  tar 
sands — He  not  on  land  but  beneath  the 
Nation's  Continental  Shelves. 

And.  in  the  last  2  or  3  years  strong 
Indications  have  been  found  of  substan- 
tial petroleum  deposits  well  beyond  pres- 
ently exploitable  depths — In  6.000  feet 
of  water  In  the  Gulf  of  Mexico,  for  ex- 
ample, and  In  some  10.000  feet  of  water 
off  the  mouth  of  the  Congo  River  in  the 
South  Atlantic. 

So,  among  other  things.  It  will  be  a 
function  of  tJ*s  study  to  examine  the 
ocean  In  the  context  of  the  Nation  s  pres- 
ent and  prospective  energy  needs — not 
only  petroleum,  but  also  other  more 
exotic  potential  sources  of  oceanic 
energy,  those  possibly  to  be  derived,  for 
example,  from  hydrogen,  the  sun.  the 
tides,  waves,  and  the  active  geothermal 
sites  so  common  beneath  the  ocean. 


December  19,  197S 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42397 


And  'A  hat  about  fisheries''  Fifteen 
years  of  platitude.s  about  the  ocean  being 
the  world's  larKP.<;t  untapped  re.source  of 
essential  animal  proteins  have  failed  to 
halt  the  decline  of  the  Ametncan  com- 
mercial fl.shlng  Indvi-stry  While  the  Office 
of  Management  and  Budget  toys  with 
the  Idea  of  a  national  policy  of  benign 
neglect  of  American  commerclaJ  fisher- 
men, thus  opening  the  doors  wide  to 
imrestrlcted  Import';.  this  country 
already  has  dropped  from  first  to  seventh 
place  In  world  f^.shenes  catoh  Over  two- 
thirds  of  the  fish  and  fi.sh  product"^  con- 
sumed In  the  United  States  are  Imported. 
resulting  In  an  adverse  balance  of  pay- 
ments In  1972  on  that  accoimt  alone  of 
$1,300  million.  That  Is  nearly  one-third 
of  the  Nation's  total  adverse  balance  of 
payments  In  all  goods  and  services. 

Balance  of  payments  constitutes  a  crit- 
ical National  problem,  and  fish  are  a  big 
part  of  that  problem.  What  can  we  do 
about  It?  This  study  Is  Intended  to 
answer    Just    such    questions 

Looking  to  the  future,  we  have  heard 
a  lot  lately  about  "limits  to  grovrth."  The 
energy  crisis,  which  we  will  solve  one  way 
or  another,  Is  an  early-warning  symptom 
of  those  limits  All  the  nations  of  the 
world  are  drawing  down  raw  materials 
at  an  Increasing  rate  There  Is  no  way 
that  either  known  or  hypothesized  land- 
side  reserves  of  critical  ores  can  fulflll 
future  demands.  As  with  energy  re- 
sources, the  United  States  is  increas- 
ingly dependent  on  foreign  sources  of  raw 
materials  so  necessary  to  the  functioning 
of  our  modem  Industrial  society.  Of  the 
nations  supplying  us  with  our  needs  of 
copper,  manganese,  steel,  nickel,  cobalt. 
and  so  forth,  some  are  friendly,  some  are 
not  so  friendly,  and  many  are  politically 
unstable  Consequently,  unless  we  take 
speciflc  action  to  prevent  It  now.  we  may 
not  be  through  the  energy  crisis  before 
we  are  plunged  into  a  raw  materials  crisis 
with  even  more  severe  damage  to  our 
economy  and  national  security.  We  can- 
not rely  simply  on  depletion  curves  to 
forecast  the  time  when  the  materials 
crunch  will  come.  Political  Interruption 
of  supplies  could  come  at  any  time,  the 
Arabs  have  shown  us  that  with  oil.  And 
the  'Venezuelans  show  indications  of 
using  oil  to  extract  economic  concessions. 

Most  of  us  are  aware  of  the  tremendous 
quantities  of  so-called  manganese  nod- 
ules that  carpet  much  of  the  deep  ocean 
floor.  Besides  being  a  source  of  manga- 
nese, these  nodules  are  important  poten- 
tial sources  of  copper,  nickel,  cobalt,  even 
Iron  and  a  variety  of  other  metals.  Other 
areas  of  the  deep  ocean  floor  constitute 
incredible  reserves  of  aluminum,  ti- 
tanium, Iron,  cobalt,  nickel,  copper,  man- 
ganese, lead,  molybdenum,  and  even 
cement.  They  do.  that  Is.  If  the  United 
States  enjoys  access  to  them  and  If  the 
technology  can  be  developed  to  recover 
thcm.economlcally. 

And.  Just  recently  It  has  been  discov- 
ered by  American  .scientists  working 
under  the  aegis  of  the  deep  ocean  drilling 
project  and  the  U.S.  International  Dec- 
ade of  Ocean  Exploration  that  new  hard 
rock  metallic  ores  are  constantly  being 
renewed  from  deep  within  the  earth 
along  much  of  the  47,000  miles  of  mld- 


oceanlc  ridges  that  occur  in  all  of  the 
world's  oceans.  Because  of  the  mechanics 
of  sea-flpor  spreading,  dcpKjsiUs  thus  gen- 
erated are  believed  to  t>e  present  at  vari- 
ous locations  beneath  the  deep  ocean 
floor  all  the  way  from  the  mldoceanlc 
ridges  to  the  continental  margins.  Again, 
political  accessibility  and  economical 
technology  are  the  only  barriers  to  their 
exploitation. 

The  study  authorized  in  Senate  Res- 
olution 222  will  examine  these  re.sources 
with  specific  consideration  of  their  po- 
tential m  staving  of!  a  raw  materials 
crisis,  in  minlmlzLng  the  political  uncer- 
tainty of  future  sources  of  supply,  and  in 
reducing  our  large  ar.d  growinp  adverse 
balance  of  payments  m  such  materials. 

The  existence  of  vast,  untapped  energy, 
food,  and  raw  materials  resources  in  the 
ocean  does  not  suddenly  remove  the  lim- 
its to  srrowlh  or  or^en  the  closed  ecology 
of  space  ship  Earth,  but  It  does  have  the 
potential  for  greatly  expanding  both 
national  and  global  options  and  for  re- 
moving the  threat  of  forced,  traiunatic 
readjustment.  The  need,  of  course,  Is  to 
as,sure  the  availability  of  a  fair  share  to 
the  Umted  States  and  to  develop  the 
capability  to  exploit  these  resources  both 
intelligently  and  economically  while  pre- 
serving the  ecological  balance. 

Inherent  in  all  man's  ventures  on  and 
beneath  the  oceans  Is  the  absolute  neces- 
sity to  protect  the  oceanic — and,  there- 
fore, the  global — environment.  Clearly 
an  essential  part  of  both  ennronmental 
protection  and  Intelligent  use  of  oceanic 
resources  Is  proper  management  of  the 
national  coastal  zone — a  seeking  and  a 
finding  of  that  middle  ground  certain  to 
exL^t  between  absolute  preservation  of 
the  natural  environment,  on  the  one 
hand,  and  unrestrained  exploitation,  on 
the  other.  Again,  the  study  will  examine 
problems  and  solutions  of  coastal  zone 
conflicts  In  light  of  the  needs,  pressures, 
and  expectatioiLs  of  today. 

In  brief,  then,  the  purpose  of  the  study 
authorized  in  Senate  Resolution  222  Is  to 
examine  ooeajuc  resources  in  the  light 
of  sucii  critical  national  n^^<:  as  energy, 
raw  materials,  food  and.  in  turn,  balance 
of  payments,  inflation,  employment,  en- 
vironmental protection  and  the  general 
quality  of  American  life.  The  resolution 
of  such  critical  issues  increasingly  de- 
pends on  the  proper  utilization  of  the 
ocean  and  its  resources.  This  study  will 
develop  new  approaches  Important  not 
only  to  the  ocestnlc  community  but  also 
to  the  vast  majority  of  Americans,  many 
of  whom  are  critically  ocean-dependent 
without  even  kno^ng  It. 

Mr.  President.  I  urge  that  the  Senate 
join  me  In  supporting  this  resolution. 

THE    NEED    FOR    A    NATIONAI,    OCEAN    POUCT 

Mr.  RIBICOFF.  Mr.  P>resldent.  I  am 
pleased  to  Join  as  a  cosponsor  of  Senate 
Resolution  222  authorizing  a  coordinated 
Senate  overview  of  ocean  policy. 

For  too  many  ye'^rs  this  Nation  has 
taken  its  marine  resources  for  granted. 
It  was  assumed  that  the  oceans  and  seaa 
off  our  shores  were  Immime  from  the  in- 
creasing pollution  In  our  inland  lakes 
and  rivers. 

We  now  know  that  our  oceans — the 
world's  oceans — are  also  in  serious  trour 


ble.  If  we  hope  to  reverse  this  deteriorat- 
ing trend,  we  must  develop  a  national 
ocean  policy.  We  must,  for  the  first  time, 
begin  to  tie  together  and  study  all  those 
factors  that  contnbute  to  ocean  life,  in- 
cluding coastal  zone  management,  fish- 
ing, ocean  mining,  and  shipping. 

In  1970,  the  Subcomnuttee  on  Execu- 
tive Reorg-nization,  which  I  chair,  ■was 
responsible  for  the  creation  of  the  Na- 
tional Oceanic  and  Atmospheric  Admin- 
istration. This  was  an  import.ant  step  in 
the  right  direction,  but  much  more  needs 
to  be  done  before  a  truly  national  policy 
exists.  I  hoj3e  that  the  Senate  quickly 
approves  this  resolution  it  n  utal  that 
the  Congress  and  the  entire  United  States 
begin  to  develop  the  policies  and  take  the 
necessarj-  steps  to  save  our  oceans  and 
sea5.  We  cannot  allow  these  great  re- 
sources to  turn  Into  global  Lake  Eries. 

EXPLOrriNG   THE   SESOrBCES    OE    THE    OCEAN 

Mr.  MOSS.  Mr.  President,  today  I  am 
joining  mj-  colleagues  in  sponsoring  the 
Senate  ocean  policy  resolution. 

Those  unfamiliar  with  my  activities  in 
Congress  may  wonder  wh>-  a  Senator 
from  Utah  would  be  concerned  with 
ocean  affairs.  The  fact  is  that  In  my 
work  on  the  Committee  on  Commerce 
and  the  Committee  on  Interior  and  In- 
sidar  Affairs  I  have  been  very  much  con- 
cerned with  the  development  of  ocean 
resou.'-ces.  particularly  .seabed  minerals 
and  offshore  oil  and  gas.  And  now  as 
chairman  of  the  Aeronautical  ai.c  Space 
Sciences  Committee  I  am  further  in- 
volved In  the  application  of  remote  sens- 
ing technology  to  earth  and  ocean 
re.sources. 

The  foremost  topic  occupying  the  Na- 
tion's attention  today  Is  the  energy  crisis, 
and  my  State  of  Utah,  with  its  oil  shale 
and  tar-sand  resources,  occupies  a  prom- 
inent place  in  the  overall  plans  of  fuel 
suDplies  In  the  course  of  the  national 
fuels  and  energy  study,  which  Is  analo- 
gous to  the  proposed  national  ocean  pol- 
icy study,  I  held  hearings  en  offshore  oil 
and  other  aspects  of  the  Outer  Continen- 
tal Shelf.  The  principal  restilt  was  an 
tu-ute  focus  on  the  need  to  resolve  the 
many  conflicts  over  the  u.'^e  of  the  coastal 
zone.  On  the  one  hand  we  are  threatened 
with  an  energy-  crisis,  while  on  the  other 
hand  we  are  faced  with  an  irreversible 
and  intolerable  degradation  of  the  en- 
vironment Both  of  these  needs  must  be 
met,  but  present  policies,  knowled^,  and 
programs  do  not  permit  truly  wise  resolu- 
tion of  the  problems.  This  Is  one  major 
reason  why  I  am  supporting  this  resolu- 
tion: for  I  believe  that  the  proposed  study 
is  badly  needed. 

We  have  seen  documentation  and 
heard  testimony  concerning  the  various 
aspects  of  oil  production  off  our  coasts. 
There  is  obvious  disagreement  concern- 
ing the  best  uses  of  these  areas  and 
differences  of  opinion  in  regard  to  the 
relative  values  of  oil  producticwi.  recrea- 
tion, and  other  beneflts.  Priorities  of 
each  of  the  many  applications  and  ex- 
ploitable features  of  these  coastal  re- 
sources are  not  weU  Identified,  nor  are 
they  apt  to  be,  based  on  available  data. 
The  two  sides  of  this  issue  are  a  classic 
exsunple  of  the  dilemma  of  natural  re- 
sources management  facing  the  Nation 


42398 


CONGRESSIONAL  RECORD  —  SENATE 


today:  the  need  to  dlfTerentlat*  and 
select  the  best  one  of  several  uses  of  a 
resource  with  minimal  damage  or  fore- 
closure of  other  benefits  inherent  in  the 
resource. 

The  choice  Is  not  simply  one  of  a  good 
and  wise  option  over  a  bad  and  foolish 
one,  but  rather  a  sensitive  and  compli- 
cated selection  amcaig  several  resource 
allocations  each  of  which  Is  extremely 
valuable  or  actually  essential  to  the  Na- 
tion's continued  welfare. 

There  is  need  for  renewed  examina- 
tion of  the  Federal  pohcles  impinging  on 
the  coastal  zone.  Clearly  not  In  dispute 
is  the  Federal  Jurisdiction  over  the  Outer 
Conlinental  Shelf.  The  other  factors  of 
energy,  environment,  and  societal  values 
are  sUll  very   unclear. 

Basic  to  the  formulation  of  offshore 
policy  is  a  thorough  and  meaningful 
assessment  of  the  technology  of  explor- 
ing and  explolUng  seabed  resources  In 
the  search  for  oU.  for  example,  explora- 
tion techniqueo  employ  a  varlctv  of  so- 
phisticated equipment  necessarv  for  geo- 
physical investigaUons.  Most  'of  these 
modem  devices  represent  breakthroughs 
in  exploration  technology,  providing  ac- 
curate data  and  at  the  same  time  caus- 
ing the  environment  no  harm. 

Drilling  techniques  have  also  pro- 
gressed, and  production  practices  and  in- 
strumentation are  developing  in  great 
strides,  spurred  for  the  most  part  by  en- 
vironmental awareness  as  well  as  by  the 
normal  demand  of  a  developing  olTshore 
Industry. 

In  the  ca.se  of  other  minerals  on  the 
Continental  Shelf.  lltUe  information  is 
available  on  the  extent  of  the  resources 
and  the  state  of  the  art  of  mining  tech- 
mques.  Seabed  mineral  deposits  such  as 
manganese    nodules    and    phosphorites 
also  have  to  be  taken  into  consideration. 
Several  companies  are  presently  engaged 
In  research  toward  mining  and  process- 
ing these  deposits,  and  a  major  break- 
through In  dredging  and  processing  of 
-manganese  nodules  has  been  achieved. 
,     The   supply    of    raw    materials    to    the 
Unit€d  States  is  no  le.ss  critical  than  that 
of  oil  For  metals  such  as  copper.  nlckeL 
cobalt,  and  others  th.it  can  be  extracted 
from  the  ocean  floor,  the  U.S.  adverse 
balance  of  payments  for  1972  was  close  to 
one  and  a  half  billion  dollars. 

Prior  to  the  formulation  of  national 
policy,  therefore,  it  becomes  necessary  to 
seek  answers  to  many  questions  Some  of 
the?e  questions  are : 

First.  What  is  the  state  of  the  art  In 
offshore  petroleum  and  other  minerals 
development  technology?  Are  present  ex- 
ploration and  production  techniques 
ha2ardous  to  the  envirorunent  and.  if  so. 
to  what  degree  r'  Are  present  drUling 
practices  siifflcient  to  avoid  adverse  ef- 
fects? What  is  to  be  expected  in  further 
technological  developments? 

Second.  How  much  petroleum  is  esti- 
mated to  underlie  the  shelf  areas  of  the 
United  States?  How  much  need  Is  there 
for  these  offshore  resources''  How  much 
of  this  lies  in  areas  undesirable  for 
drllllni?? 

Third.  Are  there  instances  in  whlrh 
potentially  oU-rlch  OCS  acreage  should 
be  permanently  reserved  from  develop- 


Decemher  19,  1973 


ment  for  recreational,  ecological,  or  es- 
thetic reasons?  What  standards  and  con- 
siderations should  be  applied  to  propos- 
als for  reservation  of  this  type? 

Fourth.  What  should  be  the  extent  of 
a  marine  sanctuary-  along  our  shores,  and 
how  can  such  areas  be  described  and 
managed  In  order  to  be  effective?  What 
exacUy  are  the  components  of  the  en- 
vironment to  be  preserved?  How  Intense 
is  the  need  to  preserve  these  compo- 
nents? How  can  we  compare  the  need  for 
preserving  environmental  components 
with  Uie  need,  nationally  and  interna- 
tionally, for  offshore  resources?  If  both 
needs  are  comparable,  can  we  develop 
the  technology-  to  satisfy  both  needs  si- 
multaneously; that  is,  can  we  utilize 
ocean  resources  and  at  the  same  time 
preserve  the  environment? 

Fifth.  If  all  OCS  operaUons  were  sus- 
pended; From  what  probable  sources 
would  petroleum  needs  be  filled;  To  what 
extent  would  this  reduce  the  risk  of  pol- 
lution of  the  coastline  by  oil;  What  new 
envirenmental  risks  would  be  associated 
with  alternative  soiu-ces  and  methods  of 
energy  supply  to  that  area? 

Sixth.  What  are  the  total  cost/benefit 
considerations  comprising  adequate  bases 
for  decisions  concerning  proposals  for 
explorirg  and  exploiting  our  ocean  do- 
mam?  What  is  the  price,  considering  so- 
cial and  ecological  values,  as  well  as 
economic,  that  the  individuals,  the  SUte. 
and  the  Nation  will  have  to  pay  for  each 
of  the  possible  alternative  uses  of  the 
OCS  lands? 

Seventh.  Should  the  Congress  deter- 
mine, on  a  case-by-case  basis,  the  cir- 
cumstances under  which  tracts  of  OCS 
lands  should  be  used  for  what  particular 
purpose? 

After  all  these  and  other  germane  data 
have  been  assembled  and  assimilated,  it 
will  still  be  necessary  to  determine  the 
proper  course  of  action  in  formulating 
national  policy  concerning  management 
of  Outer  Continental  Shelf  lands.  The 
many  questions  raised  by  these  hearings 
demand  resolution  before  making  defini- 
tive decisions  concerning  -best '  usage  of 
OCS  land  resoiuxes.  It  would  seem  pre- 
mature to  venture  judgments  until  the 
studies  which  will  satisfy  these  questions 
have  been  completed.  Some  of  this  Infor- 
mation will  accrue  from  the  energy  study 
currently  underway  by  the  Committee  on 
Interior  and  Insular  Affairs;  other  infor- 
mation will  have  to  be  developed  by  addi- 
tional studies  yet  to  be  Implemented. 

Mr.  President,  it  is  my  hope  that  the 
study  to  be  authorized  would  result  In 
answers  to  these  policy  questions.  And  I 
would  like  to  urge  all  my  colleagues  to  act 
lavorably  In  support  of  the  Senate  ocean 
policy  resolution. 

Mr.  STEVENS.  Mr.  President,  the  Im- 
mense potential  of  the  oceans  and  seas 
as  repositories  of  needed  foods,  minerals, 
and  energy  ts  a  recent  revelation  in  terms 
of  world  historj'.  As  more  is  learned  of 
the  extent  of  these  resources  and  of  ways 
to  exploit  them,  the  nations  of  the  world 
are  engaging  themselves  in  a  gigantic 
race  to  glean  as  much  as  possible  while 
the  getting  is  good.  One  reason  for  this 
Is  that  there  Is  growing  reaUzation  that 
the  resoiu-ces  of  the  oceans,  vast  as  they 


are.  still  are  depleUble— and  that  there 
Just  might  not  be  enough  to  go  around. 
While  responsible  nations  are  attempting 
to  agree  to  means  of  equitable  utilization 
of  the  seas  and  their  resources,  the  more 
voracious  countries  are  dedicated  to  a 
code  of  first-come  first-sen  ed. 

The  most  flagrant  example  of  the  reck- 
less nature  of  this  uncontrolled  race  for 
resources  is  found  in  the  world's  fisheries 
activities.  Some  nations  have  over-har- 
vested the  fish  from  their  own  adjacent 
waters  and  have  launched  extremely  ef- 
fective onslaughts  agahist  the  remaming 
fish  stocks  of  the  world.  Some  of  the  most 
bountiful   areas,   as  you  know,   are,   or 
were,    off   our   own   New    England   and 
Alaskan  shores.  Our  Government,  mean- 
while, is  dedicated  to  a  concept  which 
calls  for  the  harvest  of  the  mflvimnrT^ 
sustainable  yield  of  fish  by  our  fisher- 
men,  while  attempting  to  cajole  other 
nations     into     following     our    example 
through    treaUes.   Our   fishermen   have 
long  realized  that  this  is  not  going  to 
work,  because  they  are  Just  about  the 
only  ones  being  managed.  It  appears  a 
similar  disenchantment   is  growing  in 
Congress,  and  numerous  biUs  being  con- 
sidered actuaUy  could  alter  our  country's 
international     fisheries     policy.     Such 
changes  of  direction  will  do  the  fish  no 
good   in   international   negotiations,   so 
we  must  find  the  right  poUcy  as  soon  as 
possible  and  stick  by  it. 

I  point  ^ut  the  crisis  which  exists  in 
Just  one  ocean  resource,  fisheries,  sim- 
ply to  Ulustrate  our  need  for  a  total 
CCfcaris  policy  having  the  coordinated, 
full  sanction  of  our  Government.  As  Sen- 
ator from  a  State  bounded  on  three  sides 
by  mostly  undeveloped  waters  and  coast- 
lines, and  on  the  remaining  side  by  a  for- 
eign nation.  I  am  concerned  not  only  by 
our  obvious  lack  of  direction  in  fisheries, 
but  also  by  the  knowledge  that  a  similar 
hiatus  can  and  will  develop  in  other 
manne  concerns,  unless  we  begin  to  act 
accordmg  to  a  defined  plan. 

It  is  with  a  real  sense  of  urgency  that 
I  cosponsor  this  Senate  resolution  to  au- 
thorize a  National  Ocean  PoUcv  Study 
and  ask  for  the  support  of  my  colleagues. 
The  resolution  would  enable  a  stwdy  by 
the  Senate  Commerce  Committee,  with 
the  help  of  Senators  from  other  commit- 
tees concerned  with  ocean  resources  and 
relative  matters,  as  well  as  six  Senators 
from  coastal  States,  regardless  of  their 
committee  affiliation.  It  would  enable 
that  study  to  be  undertaken  almost 
immediately. 

The  study  would  be  directed  toward 
analyses  of  the  status  of  ocean  resources 
and  of  the  Government  programs  affect-     ' 
ing  them.  Moreover,  the  resolution  re- 
quires that  the  analyses  be  fcllowed  by 
legislative  proposals  to  alleviate  the  prob- 
lems In  such  critical  areas  as  fisheries 
merchant  marine,  ocean  pollution,  off- 
shore minerals  development,  ocean  re- 
search and  exploration,  education,  em- 
ployment, and  coastal  zone  management 
In  my  opinion  approval  of  this  resolution 
is  a  necessity. 

Mr.  LONG.  Mr.  President,  the  great 
State  of  Louisiana  lands  more  fish  than 
any  other  State  in  the  Union— over  500  - 
000  tons  a  year.  We  have  a  large  and 
exciting  sport  fishery.  Louisiana  supplies 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42399 


almost  30  percent  of  America's  crude  oil 
pr'jduction.  .second  only  X-o  Texas,  and 
Loul-siana  produces  more  offshore  oii 
than  arij-  other  State. 

Kn  ever -in  creasing  share  of  the  Na- 
tion's international  trade  moves  through 
the  ports  of  Lake  Charles.  Baton  Rouge, 
and  New  Orleans.  We  also  handle  more 
river  and  intracoastal  trade  than  any 
other  port  in  the  Nation.  The  Mis.sLsippl 
River  drains  the  waters— and  inevitably 
much  of  the  wastes — -of  over  half  the 
United  States  and  even  part  of  Canada. 

The  Mississippi  Delta  region  is  one  of 
the  largest  and  in  some  areas  most 
heavily  modified  estuarine  features  in 
the  land.  Louisiana  has  over  2,700  acres 
of  catfish  farms.  It  Ls  conducting  shrimp 
farming  experiments  and  is  exploring 
the  fea.sibility  of  alligator  farming.  The 
great  Mississippi  Delta  in  particular  and 
the  bayou  country  generally  have  a  po- 
tential for  literally  tens  of  thousands  of 
acres  of  fish  farming. 

With  the  right  technology  and  Incen- 
tive, Louisiana  alone  could  produce  more 
shrimp  through  farming  than  is  pres- 
ently Uken  throughout  the  world  by 
himtlng  and  catching.  A  comparable 
potential  exists  for  oysters  and  many 
other  species. 

These  are  just  a  few  of  the  reasons, 
Mr.  President,  why  I  join  my  distin- 
guished colleagues  in  cosponsoring  the 
Senate  oceans  policy  resolution.  Louisi- 
ana's stake  in  the  ocean  Is  already  great, 
and  it  has  the  potential  for  becoming 
even  greater.  There  is  more  oil  and  gas 
to  be  discovered  beneath  Louisiana's  off- 
shore waters.  There  are  more  fish  to  be 
caught  and  a  lot  more  to  be  farmed.  The 
port  of  New  Orleans  is  currently  under- 
going a  period  of  rapid  growth  and  de- 
velopment. • 

Wiien  it  comes  to  ocean  resources  of 
all  kinds,  Louisiana  produces  far  more 
than  its  proportional  share  of  the  Na- 
tion's needs,  and  now  it  Is  being  asked 
to  produce  more — especially  fuels.  This, 
in  many  ways.  Is  at  the  heart  of  the 
problem.  My  constituents  do  not  mind 
pulling  harder  for  the  national  well-be- 
ing, so  long  as  other  States  do  their 
share  and  so  long  as  the  technological 
and  other  means  exist  for  minimizing 
the  adverse  environmental,  economic, 
and  social  impacts  that  may  accompany 
more  Intensive  development  of  coastal 
and  ocean  resources. 

Louisiana  has  not  shirked  from  push- 
ing development  of  the  petroleum  re- 
sources that  He  wtthln  its  jurisdiction, 
and  It  has  not  tried  to  block  develop- 
ment of  the  Outer  Continental  Shelf 
resources  that  reside  within  the  Federal 
jurisdiction.  We  have  welcomed  It.  for 
It  has  been  good  for  Louisiana,  good  for 
all  the  people  of  the  State,  as  well  as  good 
for  the  Nation  as  a  whole. 
»,  Now.  however,  we  are  being  pushed 
to  try  harder,  to  increase  the  rate  of  ex- 
traction of  oil  and  gas  from  fields  imder 
our  control.  Petroleimi  is  a  nonrenewable 
resource.  If  we  pump  it  too  fast  we  will 
exhaust  that  asset  too  soon.  The  State 
will  lose  a  substantial  share  of  its  rev- 
enue, and  thousands  of  our  citizens  will 
have  to  seek  other  employment. 

I  do  not  suggest,  Mr.  President,  that 
Louisiana  would  shirk  Its  duty  to  the  rest 
CXIX 2670— Part  33 


of  the  country  and  not  do  everything 
reasonably  possible  to  help  alleviate  the 
energy  crisis.  What  I  do  say,  however,  is 
that  other  States — those  who  also  have 
offshore  petroleum  resources  t-o  expiOit^ — 
must  do  their  share,  too  They  cannot 
expect  Louisiana  to  permit  a  crash  draw- 
down of  its  vital  resources  while  they 
hoard  theirs. 

I  appreciate  environmental  concerns. 
Louisiana  tias  environmentalists,  too, 
and  each  of  us  has  concern  for  the  en- 
vironment. We  have  had  our  share  of 
oil  spills,  we  worry  about  modification 
of  our  valuable  wetlands,  and  we  worry, 
too,  about  the  potential  of  refineries  for 
air  pollution,  the  potential  of  offshore 
platforms  for  interference  with  shipping, 
and  the  way  these  installations  may  alter 
a  pristine  view.  But,  we  have  met  these 
problems  and  dealt  with  them  rationally 
and  intelligently. 

With  occasional  altercations  the  oil 
men  and  the  commercial  fishermen  are 
now  reasonably  good  neighbors.  Sport 
fishermen  cluster  around  oil  platforms 
because  they  draw,  rather  ttian  drive 
away,  gamefish.  Ocean  freighters  and 
tankers  have  now  been  assigned  fair- 
ways through  the  oil  fields  to  reduce  the 
chances  of  collision.  They  are  not  re- 
quired to  use  them,  but  commonsense 
says  they  should,  and  by  and  large 
they  do. 

Louisiana  has  had  some  oil  spills  as  a 
result  of  offshore  activities,  but  consider- 
ing the  volume  and  Intensity  of  such  £w;- 
tlvlties  they  have  been  few.  and  tliey 
have  done  no  pennanent  damage.  So, 
Louisiana  has  showTi  that  we  can  have 
our  oil  and  our  fish,  too — oil  and  a  clean 
environment. — oil  and  wilderness  lands. 
And,  of  course,  we  have  the  prosperity 
that  oil  production  brings  with  it. 

An  important  function  of  the  Senate 
ocean  policy  resolution  will  be  to  explore 
and  evaluate  the  ways  that  offshore  re- 
sources of  all  kinds  can  be  exploited  with- 
out damage  to  the  environment  and 
without  assaulting  the  esthetic  senses 
of  those  who  live  on  nearby  coasts  and 
without  hindering  their  recreational  ac- 
tivities. 

As  a  concomitant  function,  these  stud- 
ies wiU  also  point  out  the  importance 
and  the  advantages  of  each  and  every 
State  reaping  full  measure  from  the  op- 
portunities that  nature  and  the  accidents 
of  geography  make  available  to  them — 
the  need,  for  example,  for  an  equitable 
sharing  among  all  States  of  the  burden 
of  meeting  the  Nation's  energy  require- 
ments and.  Indeed,  such  other  require- 
ments as  the  future  may  unfold. 

This  Nation's  rising  ocean  dependence 
has  been  documented  by  others  of  our 
colleagues  both  today  and  in  times  past. 
So.  I  shall  not  try  either  to  entmierate 
or  to  discuss  all  of  them  that  come  to 
mind.  I  think  It  is  Important  that  each 
y  of  us  realizes  that  conditions  today  are 
greatly  different  from  what  they  were  a 
year,  or  even  a  few  weeks  ago.  We  are  cut 
off  from  a  major  foreign  source  of  our 
petroleum  supplies  not  i>ecause  those 
supplies  have  nm  out,/tiot  because  wre 
cannot  afford  to  buy  them,  but  simply 
because  those  who  control  those  re- 
soiuxjes  have  decided  to  use  them  for 
political  leverage. 


This  places  the  United  States  in  a  to- 
tally unacceptable  position.  It  also  tells 
us.  or  at  least  it  should  tell  us  that  what 
has  been  done  with  oil  can  be  done  with 
other  materials  where  we  are  !ore:cTi- 
dependent  for  more  than  o'or  marginal 
requirements.  Tnere  is  a  pressing  nation- 
al need,  therefore,  that  we  make  our- 
selves as  independent  as  possible  of  the 
threat  of  such  extortion  attempts  and 
that  we  do  so  as  soon  as  possible.  The 
greatest  r>otential  for  giving  us  that  in- 
dependence lies  in  the  ocean,  for  there  is 
virtually  no  raw  material  that  is  not, 
theoretically  at  :ea;-t,  available  from 
within  or  beneath  the  sea. 

We  mu.-t  elaborate  in  hard,  practical 
terms — not  just  scholarly  theory  and  hy- 
pothesis.— what  those  materials  are  and 
how  available  they  really  are,  or  can  be 
made  to  be,  politically,  economically,  and 
technically. 

We  have  to  chart  specifically  the  ex- 
tent to  which  these  resources  can  relieve 
America's  dependence  on  other  nations 
and  meet  its  own  supply  requirements 
with  its  own  people,  its  own  capital  and 
its  owTi  enterprise. 

We  must  examine  these  resources  with 
the  pragmatic  eye  and  viewpoint  of  the 
exploration  geologist  and  the  miner  or 
oil  man,  or  the  fishery  biologist  and  the 
fisherman,  and  so  forth. 

We  need  to  look^t  the  law  critically — 
international  law,  national  law,  State 
law,  and  local  law.  ^o 

We  must  examine  the  present  state  of 
the  requisite  technologies  and  the  incen- 
tives for  going  to  sea  to  fill  gaps  we  know 
exist  now  and  fear  will  exist  in  the  future. 

We  need  to  plot  the  lowering  costs  of 
ocean  exploitation  against  the  increase 
of  prices  pushed  by  demsind.  When  these 
curves  cross,  ocean  resoim^s  offer  a  via- 
ble alternative. 

To  repeat,  we  need  to  know  what's 
available  in  the  way  of  resources,  where 
they  are,  when  we  will  be  able  to  exploit 
them,  and  how  much  of  our  national 
requirements  we  can  expect  thereby  to 
fill.  The  time  has  passed.  Mr.  President. 
when  broad  generalities,  hypotheses  and 
glowing  rhetoric  extolling  the  boimty  of 
the  sea  will  serve  any  tiseful  piupose. 
Now  is  the  time  to  get  down  to  cases,  to 
develop  an  ocean  prospectus  that  will 
admit  the  hazards  and  pitfalls  as  well  as 
the  promise  and  potential  of  reward  and 
that  will  plot  a  soimd  course  from  the 
recognition  of  need  to  the  fulfillment  of 
that  need.  It  is  the  purpose  of  the  Senate 
ocean  policy  resolution  to  help  us  plot 
that  course. 

The  studies  to  be  undertaken  will  ex- 
tunlne  not  only  future  needs  and  possi- 
bilities, but  also  It  will  take  a  critical  look 
at  the  present — things  we  can  do  quickly 
which  will  produce  a  rapid  return.  Pro- 
tecting fisheries  stocks  off  our  shores 
from  exhaustion  by  foreign  fishing  fleets 
is  one  such  example.  Increasing  the  capa- 
bilities and  safety  of  the  commercial  off- 
shore divers  that  make  our  ocean  oilfields 
work  is  another,  and  one  which  is  close 
to  my  heart .  ^ 

As  our  colleagues  well  know,  the  quest 
for  offshore  oil  and  gas  goes  ever  deeper. 
Wells  are  now  t>eing  drilled  in  over  300 
feet  of  water.  Exploration  permits  in 
some  countries — Canada  to  be  exact — 


\ 


1 


il'iOO 


CONGRESSIONAL  RECORD  — SENATE     \         December  19,  197S 


have  been  let  for  depths  to  excess  of 
10,000  feet  of  water.  Exploration — geo- 
physical surreys  and  the  like — is  taking 
place  in  the  United  States  at  depths  of 
3,000  feet  or  more  While  free  divers  are 
not  likely  to  work  at  such  depths,  they 
are  or  soon  «ill  be  asked  to  work  at 
depths  of  300  to  600  feet.  Right  now  they 
work  routinely  at  all  depths  down  to  300 
feet. 

These  men.  Mr.  President,  every  day 
risk  their  health  and  even  their  lives  be- 
cause sufficient  research  has  not  been 
done,  because  safe  operational  standards 
do  not  exist — or  if  they  do  exist,  the  in- 
formation has  not  been  siifflclently  dis- 
seminated and  enforceable  standards 
have  not  been  promulgated.  These  are 
not  just  scuba  uivers.  Mr.  President; 
they  &n  professionai  commercial  divers 
who  also  know  how  to  use  tools  under- 
water and  what  to  do  to  complete  a  pro- 
ducing well  on  the  seafloor,  how  to  repciir 
a  failure,  and  what  steps  to  take  in  an 
emergency. 

National  standard.i  of  ope'ratlonal 
safety  need  to  be  developed  and  enforced. 
These  men  are  a  valuahle  human  asset, 
and  their  talents  are  goin;;  to  be  needed 
now  more  than  ever  as  the  Nation  is 
asked  to  produce  more  oil  and  gas  from 
deeper  water  farther  oflf  shore.  To  de- 
velop standiirds  that  will  protect  the 
health  and  safety  of  the  commercial  oil- 
field diver  and  at  the  same  time  raise 
America's  oi^  producing  potential  will  re- 
quire a  4-  to  5-year,  and  perhaps  an  on- 
going research  program.  We  c&nnot  sim- 
ply take  Navy  diver  experience  and  apply 
It  to  the  oil  industry  The  cireximstances, 
including  the  volume  of  work,  are  en- 
tirely different. 

Another  area  of  oilfield  ^tivtty  that 
needs  Investigation  is  the  competitive  ad- 
vantage the  United  States  now  has  in 
providing  offshore  oil  services.  This  com- 
petitive advantage  earns  us  dollars — in 
the  North  Sea.  for  example,  where  Am^- 
ican  know-how  is  preferred,  and  in  many 
other  parts  of  the  world.  We  need  to  be 
alert,  Mr.  President,  that  unnecessary 
and  cumbersome  regulation  here  at 
home,  and  unfair  competitive  rules 
abroad,  do  not  erode  this  important 
source  of  dollar  earnings. 

There  is  a  need,  too.  to  substitute  rea- 
son for  emotion  in  the  whole  matter  of 
oil  pollution.  For  example.  Mr  President, 
what  Is  the  real  risk — both  long  and 
short  term — from  an  oil  spill  far  ofT- 
shore?  What  is  the  real  nature  of  the 
damage?  The  answer  is  that  right  now 
we  do  not  know.  There  is  a  lot  of  emo- 
tion on  the  subject  and  a  scattering  of 
miscellaneous,  uncoordinated  fact,  but 
the  real  truth  of  the  matter  still  alludes 
us. 

We  need  to  find  out.  and  we  can  find 
out.  if  we  decide  what  It  is  we  want  to 
know,  why  we  need  to  know,  and  If  we 
then  proceed  to  conduct  a  research  pro- 
gram that  will  give  us  the  real  answers. 
This  is  something  that  can  be  done  and 
done  fairly  quickly.  I  would  hope  that 
the  studies  authorized  under  the  Senate 
ocean  policy  resolution  would  determine 
all  such  present  needs  and  then  recom- 
mend the  policies  and  procedures  for 
fulfilling  those  neet's  in  an  orderly 
fashion. 


This  Is  an  area  of  activity  that  calls 
for  large  investments  of  American  capi- 
tal In  what  at  best  is  a  risky  busineas — 
whether  it  be  distant  waters  commercial 
fisheries,  offshore  oil.  or  deep  ocean  min- 
ing. If  we  exjject  the  American  public  to 
invest  Its  money  and  if  we  expect  .\mer- 
Ican  Industry  to  take  the  plunge,  we  must 
remove  as  many  artificial  constraints  as 
possible.  The  acceptable  risks  of  the 
marketplace,  of  the  anticipated  pace  of 
the  requisite  technological  development 
and  of  that  provided,  simply,  by  competi- 
tion both  at  home  and  abn»d  are  hazar- 
dous enough  without  making  Oovem- 
ment  the  most  dangerous  adversary  of 
all. 

I  am  speaking,  Mr.  President,  of  the 
need  for  consistency  In  Federal  policies 
and  actions.  It  is  the  uncertainty,  the 
unpredictability  factor  that  chases  capi- 
tal away— the  threat,  Mr.  President,  of 
instant  shutdowns  for  environmental  or 
whatever  reasons.  It  costs  $20,000  to 
$30,000  a  day  to  operate  an  offshore  drill- 
ing platform.  That  platform  may  have 
been  transported  halfway  around  the 
world  to  drill  In  a  certain  area.  When  It 
is  shut  down.  It  costs  almost  as  much  as 
when  It  is  operating  And,  it  costs  more 
than  dollars.  There  are  opportunity  costs 
to  be  flgxired,  the  productive  work  that 
it  could  be  doing  elsewhere  while  It  s  sit- 
ting idle  here.  If  a  long  shutdown  seems 
likely,  the  rig  may  be  towed  off  to  the 
North  Sea,  Africa,  Australia,  or  Indone- 
sia and  be  lost  for  domestic  oil  develop- 
ment for  a  year  or  more. 

Knee-jerk  Federal  management  Is  the 
direct  result  of  a  lack  of  knowledge  and 
the  necessity,  therefore,  to  respond  to 
protest  in  ignorance — simply  to  stop 
everything  until  we  find  out  who  is  right, 
who  is  wrong.  Just  what  is  going  on.  This 
is  the  kind  of  management  you  expect 
in  a  nursery  school— not  in  the  biggest 
Government  of  the  biggest  Nation  on 
Earth. 

We  can  avoid  this  kind  of  misman- 
agement smd  preclude  the  uncertainty 
factor  If  we  anticipate  the  problem  in  ad- 
vance and  set  about  to  obtain  the  knowl- 
edge we  will  need  before,  rather  than 
after,  the  fact.  I  am  convinced.  Mr. 
President,  that  the  studies  authorized  in 
this  resolution  will  go  a  long  way  to- 
ward enabling  us  to  put  In  order  our 
ocean  affairs  in  the  critical  years  ahead. 
The  studies  authorized  by  the  Senate 
ocean  study  resolution  should  take  a 
thorough  and  critical  look  at  each  of 
America's  bounding  seas— at  their  re- 
sources and  at  the  competition  we  are 
encountering  in  our  efforts  both  to  ex- 
ploit and  to  conserve  those  resources. 

I  am  talking  about  Artie  and  Pacific 
Oceans  and  the  Benng  Sea  that  bound 
Alaska,  the  Pacific  around  Hawaii  and 
our  west  coast  States,  the  Atlantic  on  the 
ea.st  coast  and  the  Gulf  of  Mexico  that 
stretches  across  more  than  half  our 
southern  border  What  Is  the  real  poten- 
tial of  these  areas?  What  are  the  bar- 
riers, today  and  tomorrow,  to  their  ra- 
tional exploitation  for  the  benefit  of 
America'  What  competition  will  we  have 
in  our  efforts  to  put  them  to  our  own 
use?  We  cannot  sa^  where  we  are  going. 
Mr.  President,  until  we  ft-st  determine 
what  lies  ahead. 


The  National  Petroleum  Coimcll  esti- 
mates that  of  38  6  billion  barrels  of  dis- 
coverable oil  in  the  U  S  off-shore  lands 
of  the  Gulf  of  Mexico  onl.v  1 1  5  billion 
have  been  discovered.  21  1  billion  barrels, 
or  70  percent  of  the  total  inn.^ir.  to  be 
discovered. 

Indeed,  of  all  the  oil  believed  to  lie 
under  America's  continental  shelves,  in- 
cluding the  oil  believed  to  be  offshore  of 
Alaska's  North  Slope,  over  90  percent 
remains  to  be  discovered,  160.2  billion 
barrels  in  aU.  That  is  over  40  percent  of 
all  the  estimated  undiscovered  oil  be- 
lieved to  exist  in  the  United  States  both 
on  and  offshore — not  counting  the  vast 
oil-shale  reserves.  At  present  rates  of 
consumption  that  Is  around  30  to  40 
years'  supply. 

I  might  add,  Mr.  President,  that  off- 
shore oil  also  means  a  lot  m  Federal 
revenues.  Since  operations  first  began 
on  Louisiana's  Outer  Continental  Shelf, 
over  $4  billion  have  been  paid  by  Loui- 
siana alone  into  the  U.S.  Treasury-  from 
bonuses,  royalties,  rentals,  et  cetera.  As 
you  know.  Mr.  President,  several  offshore 
revenue-sharing  bills  have  been  intro- 
duced in  the  Senate  which  would  allocate 
a  portion  of  these  revenues  for  ocean 
resource  research  and  technological  de- 
velopment. 'QoHSldering  our  present  and 
prospective  reliance  on  ocean  resources, 
I  would  hope  that  the  studies  author- 
ized In  the  Senate  ocean  study  resolution 
would  provide  sound  arguments  for  the 
enactment  of  this  legislation. 

I  have  already  alluded  to  Louisiana's 
record  commercial  fisheries  landings. 
Though  these  are  the  largest  in  America, 
they  can  be  made  even  bigger,  not  only 
for  my  State  but  for  others  of  the  Gulf 
of  Mexico  as  well.  As  several  of  our  col- 
leagues have  pointea  out.  the  United 
States  adverse  balance  of  payments  in 
fish  and  fish  products  Is  a  bllllon-and-a- 
third  dollars  a  year  and  rising.  A  sub- 
stantial portion  of  this  is  accounted  for 
by  fish  meal  reduced  from  industrial  and 
trash  fish.  For  every  pound  of  shrimp 
caught  in  the  Gulf  of  Mexico  8 
pounds  of  trash  fish  are  caught  and 
thrown  away.  Is  there  some  way  this 
throw-away  catch  can  be  landed  profit- 
ably? Can  gear  be  developed  that  catches 
only  shrimp?  Only  trash  fish? 

Because,  perhaps,  of  this  tremendous 
overboarding  of  dead  flshi  by  the 
shrimpers,  the  shark  population  of  the  - 
Gulf  of  Mexico  has  become  both  more 
numerous  and  larger  What  is  the  eco- 
nomic potential  of  this  resource?  As 
food?  As  leather?  As  fish  meal? 

Also,  in  the  last  decade  or  so  the 
average  size  of  the  croakers  in  the  Gulf 

of  Mexico  has  incretised  substantially 

again  perhaps  because  of  the  ecological 
Interplay  of  shrimping  operations,  trash 
fish  and  sharks.  As  a  result  a  potentially 
Important  commercial  croaker  fishery 
has  begun  to  develop.  In  view  of  our  bal- 
ance-of -payments  problems,  is  there  any 
way  this  process  can  be  speeded  up? 

Because  of  the  National  Marine  Fliih- 
eries  Service  s  inadequate  budget,  far  too 
few  dollars  su-e  spent  on  fisheries  re- 
search In  Louisiana  and  in  the  Gulf.  We 
need  to  look  Into  the  potential  of  com- 
mercial fisheries,  the  unexploited  poten- 
tial, all  aroimd  the  United  States.  We 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42401 


need  to  do  so  with  an  eye  toward  In- 
creasing the  profitable  catch— reducing 
our  adverse  balance  of  payments  and  im- 
proving the  fishermen's  wages.  The  stud- 
ies authorized  in  the  Senate  the  Oceans 
Policy  Resolution  will  examine  this  prob- 
lem, too. 

But  others  are  fishing  in  the  Gulf  of 
Mexico,  competing  with  the  United 
States  for  these  resources — sometimes 
within  sight  of  our  own  shores.  The 
cirrent  expansion  of  Cuban  fisheries, 
for  example,  is  both  rapid  and  substan- 
tial. In  the  last  couple  of  years  they  have 
ordered  120  fishing  vessels — all  shrimp- 
ers— from  Spain  and  France.  Their  catch 
In  the  Gulf  of  Mexico  has  risen  from  62,- 
000  metric  tons  In  1969  to  an  estimated 
'  80,000  tons  in  1973. 
V  Mexico,  too.  and  others  are  also  in- 

creasing their  fishing  effort.  Though 
Russian  and  Japane.'^e  fishing  fleets  have 
not  yet  invaded  the  Gulf  of  Mexico  in 
any  substantial  numbers,  that  remains 
an  imminent  possibility;  they  are  vir- 
tually everywhere  else  off  our  shores.  We 
need,  therefore,  to  give  careful  attention 
not  only  to  the  protection  of  the  rights 
of  American  fishermen  along  the  Amer- 
ican Gulf  coast,  but  also  we  need  to  ex- 
amine ^he  security  of  the  Gulf  of  Mex- 
^  ico's  basic  stocks  in  light  of  the  inevi- 
table continuing  rise  of  fishing  effort  in 
the  gulf  as  a  whole.  No  fishery  can  sur- 
vive unrestrained  expansion  of  fishing 
effort  indefinitely. 

Finally.  Mr.  President,  it  is  evident  to 
me  that  the  whole  institutional  and  pro- 
grammatical  structure  of  the  Federal 
ocean  program— IT  such  can  be  called— 
needs  to  be  closely  scrutinized.  The  Con- 
gress in  the  last  decade  has  made  many 
efforts  to  bring  order  and  .substance  to 
the  national  ocean  program.  The  admin- 
istration has  not  always  carried  out  the 
intent  of  Congress;  Indeed,  quite  fre- 
quently it  has  been  downright  obstruc- 
tive. 

The  :.ea  grsuit  program,  for  example, 
which  has  a  tremendous  potential  for 
upgrading  the  coastal  zone  management 
potential  of  local.  State  and  Federal  of- 
ficial? has  been  repeatedly  level-funded. 
With  inflation  what  it  has  been  and  con- 
tinues to  be.  level  ftmding  Is  a  cutback 
This  Is  despite  the  fact  that  one  of  the 
fundamental  raison  d'etre's  of  the  Sea 
Grant  Program  Act  was  to  provide 
continuity  of  effort  and  to  enable  the 
creation  of  a  soimd  body  of  knowledge 
on  which  to  base  coastal  zone  manage- 
ment decisions. 

There  is  a  pressing  need  for  the  sea 
grant  program  to  be  closely  analyzed  and 
for  the  oenefits  that  derive  from  it  to  be 
specifically  Identified  and  described.  This 
is  needed,  apparently,  to  convince  the 
Office  of  Management  and  Budget  that 
sea  Trant  Is  not  a  welfare  progrsun  for 
universities  and  that,  in  fact.  It  is  pro- 
ducing tangible  benefits,  not  only  locally 
but  nationally,  worth  many  times  over 
th^  expenditures  of  Federal  funds. 

Pour  years  ago  the  Commission  on 
Marine  Science.  Engineering  and  Re- 
sources produced  'Our  Nation  and  the 
Sea— A  Plan  for  National  Action."  This 
report  and  its  supporting  volumes  was  the 
most  comprehensive,  most  explicit  and 
most  complete  analysis  of  the  potential 


productive  interrelationship  between  the 
United  Stale.s  and  the  ocean  ever  pro- 
duced. Ii  made  a  series  of  specific  recom- 
mendations desiimed  to  optimize  Ameri- 
ca's use  of  the  ocean  of  its  resources  and 
to  assure  an  Amencan  preeminence  in 
the  ability  to  economically  exploit  and  to 
7  wisely  govern  those  resources.  If  this  Na- 
tion had  taken  the  advice  of  the  Com- 
mission 4  years  ago,  the  energy  crisis 
would  not  be  so  severe  as  it  is  today,  our 
adverse  balance  of  payments  in  ocean 
and  ocean-related  goods  and  services 
would  not  equal  some  $8  billion  or  more, 
and  our  pasition  of  power  and  prestige  in 
the  world  would  not  be  so  precarious. 

It  has  been  the  Congress,  Mr.  Presi- 
dent, almost  without  exception  that  has 
taken  the  ocean  Initiative — the  Commis- 
sion, the  National  Council  on  Marine  Re- 
sources and  Engineering  Development, 
Sea  Grant,  most  recently  concurrent 
resolution  11  and  many  others.  Each  time 
we  had  thought  that  the  administration 
would  see  that  America's  maritime  heri- 
tage, its  vital  stake  In  the  ocean  is  no  less 
today  than  it  has  been  throughout  this 
Nation's  great  history,  that  Indeed  today 
with  demand  for  all  kinds  of  raw  mate- 
rials— not  just  fuels — pushing  the  limits 
of  landside  resources,  America's  oceanic 
dependence  is  greater  than  ever. 

But,  these  things  have  not  happ)ened. 
Instead,  either  the  administration  has 
ignored  recommendations  or  at  best  only 
made  a  pretense  of  carrying  them  out. 
Those  few  that  have  been  executed  are 
now  undergoing  a  kind  of  budgetary 
starvation.  Worst  of  all,  the  decisions  be- 
ing taken  of  what  to  support,  what  to 
shelve,  what  to  ignore  do  not  seem  to  be 
based  on  any  kind  of  logic  or  rationale 
relating  benefits  to  cost,  national  need 
to  national  opportunity. 

The  time  has  come  once  again,  Mr. 
President,  for  the  Congress  to  take  the 
ocean  initiative.  Perhaps  in  light  of  the 
energy  crisis,  the  international  payments 
crisis  and  the  frightening  prospect  of  yet 
other  crises  of  shortage,  we  can  make  the 
ocean  story  even  more  pragmatic,  even 
more  convincing.  I  hope  so.  Our  Nation's 
future  depends  on  it.  This  is  why.  Mr. 
President,  I  give  my  unqualified  support 
to  the  Senate  oceans  policy  resolution  and 
hope  that  our  colleagues  will  do  like- 
wise. 

Mr.  PELL.  Mr.  President.  I  am  de- 
lighted to  join  in  support  of  the  prcHXJsal 
submitted  today  to  the  Senate  for  a  com- 
prehensive study  of  UJS.  oceans  pro- 
grams and  policies. 

The  United  States  is  and  has  been 
throughout  its  history  an  oceanic  mari- 
time nation.  In  nearly  every  facet  of  our 
national  life  the  oceans,  their  resources, 
and  the  manner  in  which  we  manage  and 
utilize  them,  are  of  major,  if  not  vital, 
importance. 

Our  oceans  policies  are  an  Important 
part  of  our  relations  with  other  nations, 
and  must  be  an  Integral  part  of  any  real- 
istic national  policies  dealing  with  en- 
ergy sources,  mineral  resources,  food  and 
protein  supplies,  environmental  protec- 
tion and  conservation,  transportation, 
commerce,  and  national  defense. 

As  our  Nation  and  other  nations  of  the 
world  turn  increasingly  to  the  sea  as  a 
source  of  food  and  minerals,  and  oil ;  and 


as  the  oceans  assume  ever  greater  im- 
portance In  national  defense  st.'ategies, 
the  need  for  a  \1goro-as  and  coinpre- 
r.en.sive  national  ocean.?  program  De- 
comes  ir.crea£ingly  apparent 

During  the  decade  of  the  1960's,  sub- 
.■^tantial  progress  was  made  toward  a 
more  vigorous  and  effective  national 
oceans  program,  largely  as  the  result  of 
congressional  leadership  and  initiatives, 
and  with  cooperation  from  an  executive 
branch  that  wa.'^  at  lea-^t  receptive,  con- 
cerned, and  Interested, 

But,  during  the  past  5  years,  whDe  the 
need  for  a  strong  national  oceans  pro- 
gram has  grown  more  urgent  the  cur- 
rent administration  has  given  the  oceans 
program.-  little  prioritv,  and  little  high- 
level  attention  Lacking  essential  budg- 
etary- support  and  backing  from  the 
Office  of  Management  and  Budget  or  the 
White  House  the  very  capable  adminis- 
trators of  Federal  oceans  programs  have 
struggled  simply  to  maintain  their  pro- 
Err  ams. 

Clearly,  It  is  time  again  for  a  reas- 
sertlon  of  traditional  congressional  lead- 
ership to  assure  a  valid  and  vigorous  na- 
tional program,  consistent  with  oiu-  na- 
tional needs. 

That  is  why  I  believe  the  comprehen- 
sive review  of  our  national  oceans  poli- 
cies proposed  by  this  resolution  is  both 
timely  and  necessary 

As  chairman  of  the  Subcommittee  on. 
Oceans  and  International  Environment 
of  the  Committee  on  Foreign  Relations, 
I  have  been  particularly  concerned  with 
the  develop.ment  atni  Implementation  of 
our  international  orc'yns  policy  My  sub- 
committee, and  indeediiie  entire  Foreign 
Relations  Committee,  has  devoted  a 
great  deal  of  time  atJd  effort  to  review 
and  oversight  of  our  foreign  policy  in 
oceanic  and  environmental  affairs.  And 
I  believe  the  committee  s  efforts,  includ- 
ing hearings,  resolutions,  and  legislation. 
have  been  successful  In  providing  guid- 
ance and  stimulus  to  the  executive 
branch.  I  look  forward  to  the  cwitlnua- 
tlon  of  this  effort. 

As  the  coauthor,  with  Representative 
Paitl  Rogers  of  Florida,  of  the  National 
Sea  Grant  College  Program  Act,  I  have 
also  had  a  continuing  interest  in  the  de- 
velopment of  our  domestic  oceans  pro- 
gram. The  sea  grant  college  program, 
I  believe,  has  been  highly  successful  In 
focusing  the  resources  of  Industrv,  and 
educational  and  research  instltutlcns,  on 
the  high  priority  national  needs  in  edu- 
cation, technology,  and  applied  research 
in  the  oceans.  But  this  program,  too  has 
suffered  from  an  attitude  of  Indifference 
in  OMB  and  the  White  House. 

In  conclusion.  I  congratulate  the  sen- 
ior Senator  from  Washington  (Senator 
Magnuson)  ,  and  the  junior  Senator  from 
South  CaroUna  (Mr.  HolukgsK  both 
of  whom  have  contributed  so  greatly 
to  the  advancement  of  our  national 
oceans  program,  on  their  leadership  In 
offering  this  resolution. 

I  hope  the  resolution  will  be  approved 
promptly  by  the  Senate,  and  I  look  for- 
ward to  contributing  to  the  study  my- 
self in  any  way  that  I  can. 

Mr.  WILLIAMS.  Mr.  President.  I  am 
a  cosponscr  of,  and  give  my  strongest 
support   to  the  Senate   Oceans   Policy 


42  ur2 


CONGRESSIONAL  RLCORD  —  SENATE 


December  19,  1973 


Resolution.  I  am  convinced  that  the  well- 
being  of  these  United  States  Is  heavily 
dependent  upon  the  development  of  a 
sound  national  oceans  policy  and  Its 
energetic  implementation.  By  well-being. 
I  mean  a  sturdy  and  growing  economy, 
high  standards  of  living,  an  Independ- 
ence from  others  in  energy  and  raw 
materials,  national  self-confldence  and 
pride  and  a  restoration  of  confidence  In 
the  national  leadership.  Neither  the 
American  system  nor  any  other  system 
of  government,  economics  and  people  is 
a  collection  of  independently  function- 
ing parts.  Rather,  it  is  a  totally  interde- 
pendent system  In  which  a  shock  to  one 
part  produces  a  staccato  of  impacts 
among  all  the  other  parts.  That  Is  pain- 
fully apparent  In  these  times. 

We  did  not  develop  a  timely  energy 
policy  and  we  now  have  an  energy  crisis 
which  shakes  the  very  foundations  of 
our  economy  and  threatens  the  health 
and  welfare  of  our  citizens.  The  fuel 
shortage  is  increasing  prices  not  only  of 
the  fuels  themselves,  but  of  every  other 
product  and  service  that  requires  en- 
ergy in  production  that  has  to  be  moved 
by  truck,  train,  air.  or  rail,  and  that 
traditionally  has  been  a  byproduct  of  the 
energ>-  industry.  This  is  especially  true 
of  petrochemicals  and  all  the  modem 
materials  that  flow  from  them.  Many 
homes  this  winter  may  be  cold.  Few  will 
get  as  much  gasoline  as  they  would  Uke. 
Many  of  us  may  not  get  what  we  need. 
And  already  thousands  of  people  are 
being  laid  off  their  jobs.  Even  now.  I  do 
not  believe  that  the  admlnlstrataon 
imderstands  the  direct  and  repercuslive 
Impacts  that  the  fuel  cri^  will  inflict 
upon  the  American  economy. 

For  over  a  decade,  the  Congress  has 
tried  to  reason,  cajole,  lead,  and  force 
the  administration  toward  a  national 
oceans  policy,  without  any  evidence  of 
success.  I  had  planned  originally  to  warn 
our  colleagues  that  if  we  do  not  develop 
an  oceans  policy  today,  we  will  find  our- 
selves plunged  into  another  crisis  to- 
morrow. But.  we  are  in  an  oceans  crisis 
right  now. 

The  energy  crisis  Is  an  ocean  crisis. 
The  importation  of  overseas  oil  In  quan- 
tities .sufflLJen':  to*ff5eet  our  present  and 
future  needs  requires  .<hips  we  do  not 
have  calling  at  ports  we  do  not  have.  It 
Is  being  suggested  that  the  development 
of  national  energy  independence  may  de- 
pend on  the  development  of  our  national 
offshore  petroleum  resources  and  ulti- 
mately on  Ameri-.a's  having  fair  legal 
access  to,  and  the  capabilities  to  exploit, 
petroleum  resources  in  the  deep  ocean 
beyond  any  limits  of  national  jurisdic- 
tion. 

This  is  in  the  short  term,  between  now 
and  the  niid-198C  s.  In  the  long  term,  the 
heat- receiving  hmltatlons  of  the  whole 
planetarv-  ecosystem  could  force  not  only 
America,  but  the  whole  world  to  abandon 
the  further  use  of  both  fossil  and  nuclear 
fuels,  including  as  yet  unrealized  fusion 
power  production.  This  will  leave  us  only 
solar  and  gravitational  energy.  The 
ocean,  Mr.  President,  makes  it  easy  to 
use  both  The  driving  force  for  aU  the 
motion  in  the  ocean  except  the  tides  is 
the  heat  the  Earth  receives  from  the  Stm. 
Gravitational   attraction   of   the   Moon 


and  the  Sun  drives  the  tides.  Some  of 
these  energy  sources  are  competitive  to- 
day. These  energy  sources  do  not  pollute, 
and  they  do  not  use  top  fixed  resources. 
The  "fuel"  for  them  Is  free  and  will  be 
available  for  as  long  as  the  Sun  and  the 
Moon  hang  in  the  heavens.  The  studies 
authorized  in  the  Senate  Oceans  Policy 
Resolution  will  explore  ocean  energy  po- 
tentials— both  the  short  and  the  long 
term,  both  the  prosaic  and  the  exotic. 

The  national  balance-of-payments 
crisis  Is  also  an  ocean  crisis.  Again,  jobs, 
standard  of  living,  national  confidence, 
and  pride  are  at  stake.  The  adverse  bal- 
ance of  payments  for  trade  in  goods  and 
services  in  1972  could  have  been  entirely 
eliminated  merely  by  cutting  in  half  our 
adverse  balance  of  payments  in  those 
goods  and  services  that  are  being,  or 
could  t)e.  provided  through  the  proper 
use  of  ocean  resources. 

Ocean  opportimlties  are  synonymous 
with  Jobs,  energy,  a  soimd  dollar,  stand- 
ard of  livtog,  individual  health,  and  well- 
being.  They  also  offer  great  promise  of 
providing  enervating  challenges  to  our 
technology,  ilew  demands  for  new  skills, 
new  profit  potentials  for  capital,  and  new 
and  expanding  tax  bases.  They  also  offer 
the  challenge  of  a  new  and  demanding 
frontier — a  challenge  which  has  always 
inspired  the  American  people  to  excel. 

I  wish  to  discuss  two  other  points  The 
importance  of  sound  coastal  zone  man- 
agement and  the  deliberate  administra- 
tion efforts  to  block  America's  ocean 
initiatives. 

NIW    JRSXT     AND    SOUND    COASTAL    ZONX 
MANACEKZNT 

New  Jersey,  Mr.  President,  has  a  popu- 
lation of  about  7'2  million.  That  Is  not 
large,  but  New  Jersey  Is  a  small  State, 
and  it  has  the  highest  population  density 
of  any  State  In  the  Union.  Ten  percent 
of  its  overall  area  represents  water  sur- 
face. It  is  entirely  siurounded  by  water 
except  for  the  48-mlle  boundary  it  has 
with  New  York  State  to  the  north.  New 
Jersey  Li  a  manufacturing  State  with  a 
third  of  all  employment  being  In  that 
category.  New  Jersey  is  a  gateway  State. 
Over  500  New  Jersey  firms  export  goods 
and  materials  abroad  worth  over  a  billion 
dollars  a  year.  Twentj-nine  percent  of 
the  exports  are  chemica'-.  followed  by 
nonelectrical  machinery,  transportation 
equipment,  and  food.  As  an  exporting 
State.  New  Jersey  ranks  eighth  in  the 
Nation.  New  Jerseys  ports  combine  with 
the  ports  of  New  York  and  Philadelphia 
which  handle  over  50  percent  of  the 
North  Atlantic  ports  foreign  commerce 
tonnage. 

New  Jersey  Is  also  an  energy  State. 
Of  the  10  major  refineries  that  serve 
the  east  coast,  five  are  In  Pennsylvania 
and  five  are  In  New  Jersey.  The  refinerj 
throughput  of  the  10  are  approaching 
l^'i-mllllon  barrels  of  crude  oil  a  day. 
By  1985.  east  coast  requirements  will 
'amount  to  some  5  million  barrels  a  day. 

With  its  many  miles  of  Atlantic  Ocean 
barrier  Islands,  New  Jersey  Is  also  a  rec- 
reational State;  Its  l>eaches  are  intensely 
used  by  the  people  of  New  Jersey  and 
adjoining  States.  It  Is  an  agricultural 
State  and  a  fisheries  State,  though  the 
fishing  industry  has  suffered  a  serious 
decline  In  the  last  18  years,  with  the 


annual  catch  having  dropped  from  270.- 
000  tons  hi  1956  to  95,258  tons  in  1972. 

As  a  national  himian  and  material 
resource.  New  Jersey  is  Inteiisely  used  to 
serve  the  national  energy,  as  well  as  oth- 
er needs,  and  Is  being  asked  to  intensify 
that  usage.  Much  of  that  activity  is  coast- 
al zone  oriented,  and  much  of  It  Is  In  ap- 
parent conflict.  Unless  we  have  a  sound 
knowledge  base,  unless  we  are  familiar 
with  all  the  alternatives  and  with  the  ex- 
perience of  others,  and  unless  the  Federal 
and  State  governments  are  acting  togeth- 
er, the  result  can  be  disaster  for  New 
Jersey  and  a  much  reduced  eflQclency  In 
the  State's  service  to  the  rest  of  America. 

For  example,  overuse  of  land,  air.  and 
water  resources  as  well  as  the  rising  en- 
vironmental objections  of  Individuals 
ashore  now  has  resulted  in  plans  to  con- 
sider locating  much  needed  new  electrical 
generating  capacity  offshore  in  the  At- 
lantic Ocean.  At  the  same  time,  the  de- 
sire to  accommodate  supertankers  has  in- 
tensified pressures  for  deepwater  oil  port 
facilities  being  located  offshore  of  the 
entrance  to  Delaware  Bay. 

The  conditions  that  beset  New  Jersey 
and  encourage  plans  to  look  offshore  for 
locating  new  and  necessary  facilities  are 
also  causing  other  States  to  consider 
similar  action.  This  raises  many  ques- 
tions, the  answers  to  which  bear  vitally 
on  the  future  well-being  of  both  the  af- 
fected States  and  the  country  as  a  whole. 
We  need  those  answers  sis  soon  as  pos- 
sible, before  we  make  irreversible  deci- 
sions. 

This  brings  me  to  my  last  point.  The 
Congress  in  the  last  decade  has  taken 
many  initiatives  to  see  to  It  that  America 
became  ocean  wise.  Most  have  been  blunt- 
ed. If  not  blocked,  by  subtle  inaction  If 
not  by  overt  opposition.  For  some  reason, 
the  administration  has  been  strongly 
reluctant  to  build  a  strong  American 
ocean  posture.  The  military  posture  and 
a  belated  attempt  to  rebuild  the  Ameri- 
can merchant  marine  are  almost  the  only 
exceptions,  and  even  those  actions  are 
open  to  question. 

One  of  the  most  innovative  and  most 
promising  efforts  initiated  by  Congress 
was  the  National  Sea  Orant  College  pro- 
gram. It  was  the  purpose  of  the  sea  grant 
program  to  build  a  multidisclpllnary 
broadly  based  body  of  knowledge,  experi- 
ence, and  human  competence  in  the  utili- 
zation and  management  of  the  Nation's 
ocean,  particularly  coastal  resources.  As 
conceived  and  now  so  well  directed  by 
Dr.  Robert  Abel,  this  program  was  sure 
to  accomplish  its  purpose.  F\irthermore. 
given  adequate  support,  particularly  In 
its  building  stages,  it  promised  to  enable 
the  development  of  a  tax  base,  a  new  tax 
base  which  would  produce  tax  revenues 
far  In  excess  of  its  costs.  I  will  not  de- 
tail the  methods  and  accomplishments  of 
the  sea  grant  program  here.  Mr.  Presi- 
dent; I  understand  that  this  will  be 
among  the  things  to  be  looked  into  under 
the  Senate  oceans  policy  re.=;olution. 

I  do  want  to  say.  however,  thnt  there 
appears  to  be  evidence  that  the  Office 
ofJManagement  and  Budget  may  be  mak- 
ing a  conscious  effort  to  destroy  sea 
grant.  With  its  dictatorial  control  of  the 
Nation's  purse  strings,  both  before  and 
after  Congress  acts,  OMB  will  have  no 


December  lu,  I'jJS 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42403 


trouble  doing  this  onJess  Congress  takes 
effective  action  to  the  contrary.  As  part 
of  \ls  planned  orderly  growth  process,  sea 
grant  would  gradually  Increa.ie  Its  sup- 
port of  arademlr  In.stltutlon.'-  In  both 
the  coa.'itai  and  norii  ja&lai  Si.ite^  until 
It  reached  a  plate^au  level  of  support.  For 
the  last  3  years  sea  grant  has  been  vir- 
tually level-funded  I  understand  that  in 
the  fiscal  year  1975  budget  reque:  t  which 
we  are  to  receive  next  month,  sea  grant 
will  be  cut  even  below  ihe  pre.'^ent  level 
of  support.  In  these  late.^^t  Nixon  years, 
Infiatlon  has  been  the  rule  and,  we  are 
told,  the  rate  of  Inflation  is  now  going  to 
Increase.  Under  such  condltlonf.  level 
funding  means  reduction  in  funding 

New  Jersey  has  brought  all  of  its  .State 
tmlversitles  and  colleges  under  a  si::gle 
sea  grant  administrator  so  that  we  would 
be  able  to  coordinate  our  efforts  effective- 
ly. We  have  worked  out  State  linancing 
so  that  New  Jersey  would  meet  its  match- 
ing funds  obligations.  We  have  now  been 
told  by  sea  grant  that  we  did  a  great  job, 
but  that  sea  grant  has  no  money. 

This  is  not  an  Isolated  Instance.  Ala- 
bama and  Mississippi  joined  together  Into 
a  single  coordinated  consortiima.  They 
were  told  the  same  thing.  Maine  and 
New  Hampshire  face  a  similar  prospect. 
New  York,  Maryland,  Virginia,  North 
Carolina,  Georgia,  and  other  States, 
ready  either  to  enter  the  sea  grant  pro- 
gram for  the  first  time  or  to  go  on  to  the 
next  stage  of  development,  are  all  being 
told  that  there  Ls  no  money. 

There  Is  no  better  way  to  destroy  a 
program  than  to  permit  the  several 
States  to  build  up  their  hopes,  .spend 
time  and  effort,  develop  a  wholly  new 
system  for  working  together  and  change 
ingrained  mental  attitudes  and  then  to 
tell  them  that  they  did  it  for  nothing. 

Sea  grant  can  be  a  major  factor  In 
restoring  American  commercial  fisheries, 
in  developing  optimum  .solutions  to  off- 
shore siting  problems,  in  enabling  both 
local  and  Federal  administrators  to  re- 
solve coastal  and  ocean  resource  use  con- 
flicts equitably,  and  for  introducing  wis- 
dom and  foresight  in  Amerlca'.s  use.  con- 
servation, and  management  of  its  ocean 
and  coastal  resources.  In  many  critical 
areas,  sea  grant  is  the  only  centralized, 
coordinated  structure  for  assuring  the 
kind  of  know-how  we  must  have  in  order 
to  realize  our  true  oceanic  potential  at 
all  levels  of  national  effort. 

The  Office  of  Management  and  Budget 
takes  a  shortsighted  view  of  the  Ameri- 
can commercial  fisheries.  It  has  sug- 
gested that,  rather  than  try  to  help  re- 
store the  American  commercial  fishing 
Industry  to  Its  previous  position  of  world 
preeminence,  we  should  simply  give  up 
and  buy  our  fish  from  abroad.  This  raises 
just  one  final  question  in  my  mind.  How 
many  other  OMB  poUcies  so  cavalierly 
Ignore  America's  foreign  trade  status  and 
the  balance  of  payments?  The  OMB  may 
share  a  portion  of  the  blame  fo^-  the 
present  international  payments  crisis. 

I  hope  that  the  studies  authorized  im- 
der  the  Spnat3  oceans  policy  resolution 
will  look  into  OMB's  role  In  bringing  on 
the  ocean  crisis  which  Ues  at  the  bottom 
of  so  many  other  of  the  crises  that  now 
buffet  America. 


New  Jersey  needs  that  Senate  oceans 
;x)llcy  resolution  and  America  needs  It. 
I  support  It.  I  hope  that  all  of  my  col- 
leagues will,  also 

NEED  rOB  A  .NATIONAL  OCEANS  POLICT  STUDT 

Mr.  HUMPHREY.  Mr.  President,  I  am 
pleased  to  Join  with  Senators  Magntjson 
and  Rollings  and  others  in  sponsoring  a 
Senate  resolution  to  authorize  a  study  of 
national  oceans  policy,  by  the  Senate 
Comnilttee  on  Commerce  with  the  par- 
ticipation of  the  chairman  and  ranking 
minority  members  of  six  other  Senate 
committees,  as  well  as  six  Senators  rep- 
resenthig  coa.-^fal  States,  as  ex-offlcio 
.•nembers. 

The  purpose  of  the  study  authorized 
under  the  resolution  which  we  are  in- 
troducing today  wouIg  be  to  conduct  a 
complete  assessment  of  the  Nation's  ca- 
pabilities In  the  oceans ;  consider  changes 
necessary  In  existing  agencies,  policies 
and  laws;  establish  policies  for  the  full 
use  and  best  conservation  of  ocean  re- 
cources;  coordinate  coastal  zone  man- 
agement; establish  a  total  ocean  en- 
vlrorunental  policy;  and  sissess  questions 
of  national  and  international  jurisdic- 
tion. 

Mr.  President,  such  a  study  can  be- 
come the  basis  for  the  kind  of  initiative 
needed  to  revive  the  spirit  of  concern 
and  ^enthusiasm  toward  oceans  policy 
which  existed  during  the  1960'8. 

The  opportunity  and  the  need  that 
present  themselves  are  little  different  in 
scope  and  seriousness  from  those  we 
faced  in  the  late  1950's  and  early  1960s 
in  embarking  on  the  Nation's  space  pro-  ' 
gram. 

With  a  growing  world  population  de- 
manding to  be  fed.  the  oceans  offer  a 
.source  of  food.  With  fuel  and  other  vital 
resources  in  short  supply,  the  oceans 
offer  both  living  and  nonliving  re- 
sources. With  efficient  means  of  trans- 
porting food,  raw  materials,  and  fifiilshed 
products  essential  to  meeting  the  world's 
needs,  the  oceans  are  a  natural  pathway 
of  commerce.  With  the  world  environ- 
ment being  threatened  from  all  sides,  the 
oceans  constitute  a  major  potential  vic- 
tim of  pollution.  And  with  nations  con- 
tinusdly  maneuvering  for  strategic  mili- 
tary superiority,  the  ocearis  represent 
potential  battlegroimds  and  weapons 
launching  bases  that  must  be  kept  under 
international  control. 

More  than  7  years  have  passed  since  a 
Democratic  administration  launched  a 
major  initiative  by  enacting  the  Marine 
Resources  and  Engineering  Development 
Act  of  1966.  That  act  recognized  the 
importance  of  the  oceans,  as  the  domi- 
nant single  element  in  our  global  en- 
vironment, both  physically  and  eco- 
nomically, and  sought  to  provide  metuis 
of  developing  a  sound  national  ocesms 
policy  and  progrsun.  ^^ 

Unfortunately.  Mr.  President,  what  be- 
gan as  a  promising  endeavor  has  been 
largely  sidetracked  by  the  present  ad- 
ministration, which  has  seen  fit  to  down- 
grade continuation  of  activities  begun  in 
1966.  There  have  been  some  laudable 
achievements  under  the  act,  including 
formation  of  the  National  Oceanic  and 
Atmospheric  Agency.  A  companion  law, 
the  National  Sea  Grant  and  College  Pro- 


gram Act,  has  produced  valuable  re- 
search and  other  work  in  the  field  of 
oceanography. 

But  for  the  most  part,  the  Nation  re- 
mains v^ithout  a  comprehensive,  long- 
range  oceans  policy  or  a  mesms  of  carry- 
ing out  such  a  policy  if  one  were  created. 
It  is  not  as  though  there  were  no 
foundation  to  build  upon.  Following 
President  Johnson's  signing  the  Marine 
Resources  and  Engineering  Development 
.^ct  into  law  In  1966,  he  asked  me  &^  Vice 
President  to  activate  and  chair  the  Ma- 
rine Resources  and  Engineering  Devel- 
opment Council,  more  commonly  known 
as  the  Marine  Sciences  CouncU,  I  was 
privileged  to  sqrve  as  the  Coimcil's  chair- 
man from  its  first  meeting  on  August  17, 
1966.  through  the  year  1968. 

Mr,  President,  we  imdertook  a  broad 
and  deep  examination  of  our  subject 
matter.  One  of  our  responsibilities  was 
to  work  with  the  National  Science  Foun- 
dation, setting  policy  guidelines  for  NSC 
administration  of  the  sea  grant  program. 
But  our  major  effort  began  els  an  ex- 
tensive evaluation  of  all  continuing  Fed- 
eral marine  science  activities  of  that 
time,  both  by  purpose  and  by  agency,  to 
identify  gaps  and  imbalance. 

We  selected  nine  programs  for  priority 
attention.  These  Included  international 
cooperation  in  marine  sciences:  food 
from  the  sea;  the  sea  grant  programs; 
an  ocean  data  systems  study ;  a  compre- 
hensive estuary  study;  an  offshore  min- 
eral resources  survey;  ocean  observation 
and  prediction;  deep  ocean  technology; 
and  subpolar  oceanic  research. 

We  reported  our  recommendations  to 
the  President.  a::d  they  were  contained 
in  the  fiscal  1968  agency  budgets  sub- 
mitted to  Congress  in  January  1967  We 
followed  these  recommendations  by  pre- 
senting later  that  year  a  broad  range  of 
poUcy  considerations  aimed  at  relating 
the  potential  of  the  oceans  to  national 
goals,  coupled  with  programs  to  aid  in 
achieving  those  goals.  We  attempted  to 
lay  a  foimdation  for  broadened  Federal 
participation  in  the  field,  and  for  in- 
creased emphasis  on  the  nine  priority 
project  areas  we  had  .selected. 

We  sought  during  1968  to  assure  that 
our  early  initiatives  were  being  carried 
out  and  to  develop  a  soimd  framework 
of  institutions  and  policies  to  support  our 
long-term  program.  We  put  increased 
emphasis  on  rational  development  of  the 
coastal  zone.  Arctic  research,  and  efforts 
to  create  a  new  structure  for  internation- 
al law  and  international  cooperation. 

During  this  period,  a  2-year  study 
was  being  conducted  by  the  Council's 
complementary  body,  the  Commission  on 
Marine  Science,  Engineering  and  Re- 
sources. In  Januarj-  1969,  the  Commission 
Issued  the  results  of  its  work — a  magnifi- 
cent document  containing  122  principal 
findings  and  recommendations.  These 
were  tinned  over  to  the  new  administra- 
tion for  study  and  implementation. 

Since  that  time,  there  has  been  some 
effort  to  translate  these  recommenda- 
tions into  action.  A  major  proposal  by  the 
Commission  was  formation  of  a  separate 
agency  to  mobihze  the' Nation's  new 
ocean  policies  and  objectives.  The  Na- 
tional Oceanic  and  Atmospheric  Agency 
was  established  in  the  Department  of 


4-'toi 


CONGRESSIONAL  RECORD  —  SENATE 


Coirunerce  In  October  1970.  A  companion 
body,  the  National  Advisory  Committee 
on  Oceans  and  Atmosphere,  was  estab- 
lished when  legislation  was  signed  by  the 
President  in  August  1971.  In  October 
1972.  the  Coastal  Zone  Management  Act 
became  law. 

Mr  President,  these  actions  have  led 
to  some  worthwhile  achievements,  but 
they  fall  far  short  of  the  objecUves  we 
had  in  mind  during  my  tenure  on  the 
Council. 

It  has  been  largely  through  the  con- 
tinued interest  of  the  Congress  In  pursu- 
ing these  goals  that  some  of  the  pro- 
grams have  survived  the  budget-cutting 
and  priority  downgrading  of  oceans  and 
atmosphere  programs  by  the  present  ad- 
ministration. 

The  NaUonal  Oceaiite—and  Atmos- 
pheric Administration,  though  formed 
exists  as  a  skeleton  of  what  it  was  origi- 
nally conceived  to  be  and  should  be  The 
adminlstraUon's  fiscal  year  1974  budget 
would  reduce  the  budget  of  NOAA  by  $50 
million,  and  make  reductions  In  ocean- 
related  acUvltles  of  other  agencies. 

Mr.  President,  much  has  been  said 
recently  about  the  Congress  taking 
greater  inltiaUve  in  setting  the  NaUon's 
course  for  the  future.  The  failure  of  this 
administration  tojjhart  an  oceans  policy 
of  its  own  require? A<jB  Congress  to  as- 
sume responsible  leadership  in  thh 
vitally  important  area. 

Mr.  President.  I  urge  the  Senate  to  act 
at  ite  earliest  possible  convenience  to  ap- 
prove this  resolution.  This  is  a  measure 
by  which;  we  may  resxmie  development  of 
strong  naUoR^and  IntemaUonal  policies 
and  programs  tti  assure  both  maximum 
use  and  the  most  effective  conservation 
of  our  planet's  ri  -•  dominant  element 


December  19,  1973 


EMERGENCY  SECURITY  ASSIST- 
ANCE AUTHORIZATIONS  FOR 
ISR.\EL  AND  CAMBODIA— AMEiro- 
MENTS 

**«UDMKMTS    NOS.     B30,    B3  I .    AlTD    932 

•  Ordered  to  be  printed  and  to  Ue  on 
the  table.) 

Mr.  FULBRIGHT.  Mr.  President.  I 
submit  three  amendments  to  H.R.  11085 
and  ask  unanimous  consent  that  the  text 
of  the  amendments  be  printed  in  the 

RXCORO. 

I  proposed  aU  of  these  amendments 
during  the  consideration  of  the  Israel  aid 
bill  by  the  Foreign  Relations  Committee 
All  were  rejected.  I  believe  that  the  is- 
sues mvolved  in  this  bUl  are  of  such  "^ig- 
mficance  that  all  Members  of  the  Senate 
should  have  an  opportunity  to  go  on 
record  on  each  of  these  amendments 

There  being  no  objection,  the  amend- 
ments were  ordered  to  be  printed  in  the 
RicoRD,  as  follows: 

AMi.vDMrifT  No.  930 

At  the  end  of  tb«  btU.  add  th«  roIlowlUK 
n«w  section :  ■ 

Szc^  Not  more  th«n  •1,200.000.000  of  the 
^  funds  made  available  piirsuant  to  section  a 
•hill  be  furnished  to  Urael  until  the  Preal- 
dent  has  found  -hat  Israel  is  taking  aporo- 
^^^  *^*P'  wyomply  with  Resolutions  242 
ne«7)  and  338  (1973)  of  the  United  Nations 
8«:unty  Council.  Any  such  finding  shall  b« 
Imported  promptly  to  the  Committee  on  FVar- 
elgn  Relations  of  the  Senate  and  the  Speaker 
of  the  House  of  R«present«U7e« 


€ 


.^MrNDlfXNT   No.     931 

At  the  end  of  the  bill,  add  the  foU owing 
new  section 

Sec.  7.  Military  and  economic  asalstance 
provided  by  the  Unltad  State*  to  Isr»«l  and 
authorized  or  appropriated  pursuant  to  this 
or  any  other  law  shaU  not  be  construed  as 
a  commitment  by  the  United  SUtea  to  Isra«l 
for  Its  defense. 

AMZNoteNT   No.    BSa 
At  the  end  of  th»  bUl.  add  the  foUowlng 
new  section :  \ 

Stc.  7.  (a)  Exceptys  otherwise  provided 
In  this  section,  none  dt  the  funds  appropri- 
ated to  carry  out  the  provisions  of  this  Act 
shall  be  obligated  or  expended  after  Janu- 
ary 31.  1974,  untU  the  ComptroUer  General  of 
the  United  States  certifies  to  Congrtaa  that 
all  funds  previously  appropriated  ( including 
any  authorization  to  create  obligations  in 
advance  of  appropriations),  and  thereafter 
Impounded  during  Oacal  years  1973  and  1974 
for  activities,  programs,  and  project*  under 
the  Departments  of  Agriculture.  Transporta- 
tion. Housing  and  Urban  Development,  and 
Health.  Education,  and  Welfare,  have  been 
released   for  obligation  and  expenditure 

(b)  The  provisions  of  this  section  siiall  not 
apply  with  respect  to  funds  Impounded  In 
accordance  with  any  provision  of  law  spe- 
cifically authorizing  the  Impoundment  of 
funds  of  any  such  department  U  (1)  such 
provuion  Is  contained  In  any  law  authoriz- 
ing, or  maXlng  appropriations  for.  any  ac- 
tivity, program,  or  project  of  such  depart- 
ment, and  (2)  the  impoundment  Is  made  only 
with  respect  to  and  In  accordance  with  such 
provision  authorizing  the  Impoundment. 

(c)  Kor  purposes  of  this  section,  impound- 
ing Includes — 

(1)  withholding  or  delaying  the  expend- 
Itiire  or  obligation  of  funds  (whether  by 
establUhlng  reserves  or  otherwise)  appropri- 
ated or  otherwise  obligated  for  projects  or 
activities,  and  the  termination  of  author- 
ized projects  or  actlvitlee  for  which  anpro- 
prUtlona  have  been  made;  ; 

(2)  withholding  any  authorization  to 
establish  obligations  in  advance  of  aporo- 
prtatlons;  or 

(3)  any  type  of  executive  action  which 
effectively  precludes  the  obligation  or  ex- 
penditure of  the  appropriated  funds. 


vlous  history.  As  other  countries  seek  the 
benefits  of  industrialization  and  as  the 
worlds  population  continues  to  grow, 
these  experts  argue  that  shortages  will 
spread. 

Whether  or  not  this  view  Is  correct,  r*,^ 
It  Is  clear  that  for  the  immediate  future 
shortages  wUl  continue  to  plague  our 
economy. 

Prof.  Otto  Eckstein,  who  heads  the 
Data  Resources.  Inc..  recently  said: 

The  energy  crisis,  combined  with  the 
shortage  of  primary  procesaJng  industry 
capacity,  will  give  the  entire  economy  a 
condition  of  shortage  In  1974.  E\en  in  many 
of  the  finished  goods  Industries,  where  physi- 
cal capacity  wUl  be  ample,  the  lack  of  suffi- 
cient Input  materials  and  energy  wUl  depress 
production  and  maintain  a  sellers'  market. 


AMENDMENT  OP  EXPORT  ADMINIS- 
TRATION ACT  OP  1969— AMEND- 
MENT 

(Ordered  to  be  printed  and  to  lie  on 
the  table.) 

Mr.  MONDALE.  Mr.  President.  I  am 
submitting  an  amendment  to  the  Export 
Control  Act  designed  to  provide  the  data 
and  the  analysis  needed  to  deal  more 
effectively  with  shortages. 

My  amendment  would  reiuire  that  the 
President  preoare  e->ch  year  a  national 
shortages  report  and  a  national  food 
policy  report.  It  would  establish  a 
National  Shortages  Board  to  collect 
analyze  ijpd  dlssemimte  Information 
about  scarcltlf-;  of  mlnenls.  food,  raw 
materials.  lndu~trtal  produces,  and  vl^al 
services.  The  Board  would  also  make 
recommendations  regardlne  methods  to 
prevent  or  mlnlmbe  fhe  efTert?:  of  short- 
ages, and  It  would  coo-P'-.ite  with  exist- 
ing agencies  in  seeking  to  c^irry  out  these 
objectives. 

Today  a  number  of  exw  r's  are  pr-^Tjlng 
that  we  have  entered  a  new  e;a.  one  that 
will  be  dominated  by  the  economics  of 
scarcity.  The  United  StjtPs  has  in  the 
past  32  years  consumed  more  minerals 
than  all  of  the  human  race  In  all  pre- 


In  1973.  In  addition  to  the  obvious 
cases  of  food  and  energy,  we  have  ex- 
perienced shortages  of  a  wide  variety  of 
other  products,  ranging  from  glass  to 
paints,  from  antifreeze  to  furniture.  In- 
dustries such  as  steel,  petrochemicals, 
rubber,  paper,  and  plastics  cannot  get 
raw  materials  from  tholr  .suppliers;  and 
they  cannot  supply  their  own  customers. 
Often  and  increasingly,  shortages  In 
one  area  of  our  economy  are  creating  or 
aggravating  shortages  in  other  areas. 
Earlier  this  year,  for  example,  consumers 
were  alarmed  by  skyrocketing  food 
prices.  At  the  Government's  urging, 
farmers  responded  with  fence- to- fence 
planting.  Yet.  shortages  of  propane, 
gasoline,  fertilizer,  and  machinery  are 
now  endangering  farm  productlcm  goals. 
Government  so  far  has  failed  to  antici- 
pate shortages  and,  once  they  were  upon 
us,  has  failed  to  act  until  we  were  In  a 
crisis  situation. 

How  was  it  that  we  could  sell  off  a 
quarter  of  our  wheat  stocks  to  the  Rus- 
sians— at  ridiculously  low  prices — and 
then  find  out  that  supplies  for  American 
consumers  were  dangerously  low? 

Why  was  it  that  only  a  year  ago  the 
major  oil  companies  and  the  administra- 
tion were  fighting  to  keep  oil  Imports 
out — when  today  we  desperately  need 
added  supplies? 

The  administration's  economic  policies 
In  response  to  shortages  have  been  a 
disaster.  And  In  large  part  this  failure 
can  be  attributed  to  the  lack  of  any 
systematic  planning.  The  administra- 
tion's failures  cannot  be  excused  because 
the  facts  were  not  available.  The  facts 
are  available;  the  Government  has  hun- 
dreds of  economists  working  on  projec- 
tions of  supply  and  demand  for  food 
products,  raw  materials,  and  energy.  But 
the  administration  has  failed  to  bring 
the  facts  together  and  has  failed  to 
establish  any  systematic  analysis.  The 
administration's  Inability  to  carry  out 
this  analysis  Is  an  example  of  Executive 
mismanagement  on  a  massive  scale. 

As  Senator  Jackson  pointed  out  In  a 
foreword  tj  the  December  4  Interior 
Comniittee  staff  analysis  of  the  energy 
emergency: 

SUice  before  the  outbreak  of  liostllltles  In 
the  Middle  East,  this  Committee  has  made 
persistent  efforts  to  obtain  from  the  several 
department*  and  agencies  of  the  executive 
branch  an  accurate  estimate  of  both  the  na- 
ttire  and  extent  of  Impending  shortages  and 
analy  Is  of  their  potential  Impact  on  the 
social  and  economic  future  of  our  nation. 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


42405 


Responses  to  the  Committee's  Inquiries 
were  typified  by  varying,  uneven  and  some- 
times conflicting  estimates  of  the  shortages. 
Virtually  no  analysis  was  provided  of  exist- 
ing data. 

The  chalrmtm  of  the  Interior  Commit- 
tee further  found: 

Prom  the  study  of  the  material  contained 
tu  this  document,  there  are  three  Inescapable 
oonclualons:  First,  the  Information  required 
to  determine  and  assess  the  extent  ol  Im- 
pending energy  shortages  in  most  ca.«ie9  has 
been  available  In  the  public  domain,  but  no 
agency  of  the  Federal  govemmeat  has  com- 
piled or  made  any  comi>etent  analysis  of  such 
data  Second,  there  has  been  no  adequate 
a:-aiy3lB  of  the  anticipated  social  aiid  eco- 
nomic Impacts  of  projected  fuel  shortage.s 
Third,  the  extent  of  shortages  and  the  threat 
they  poee  to  the  economy  and  to  national 
security  exceed  by  far  any  aavlngs  resulting 
from  measures  taken  to  date  by  the  execu- 
tive branch.  , 

The  Interior  Committee's  findings 
with  respect  to  energy  accurately  por- 
tray the  lack  of  analysis  of  shortages 
among  a  wide  range  of  other  products  as 
weU. 

Obviously,  we  need  iaetter  forecasting, 
as  the  Banking  Committee  rightly  point- 
ed out  in  its  report  on  the  export  control 
amendments. 

The  amendment  I  offer  today  Ls  not  an 
Instant  solution  to  the  problem  of  short- 
ages. I  recognize  that  there  are  limita- 
tions on  our  ability  to  predict  future  eco- 
nomic trends.  And  even  with  better 
analysis  we  cannot  cruarantee  that  bet- 
ter policies  will  result 

But  my  amendment  would  provide  for 
a  centralized  Information  .system  that 
could  make  use  of  advanced  forecasting 
techniques.  It  would  establish  the  kind 
of  systematic  analysts  we  need. 

And  my  amendment  would  force  the 
President,  the  executive  agencies,  and 
the  Congress  to  weigh  evidence  of  im- 
pending shortages  before  they  Ret  out  of 
control  It  would  bring  together  infor- 
mation that  is  now  scattered  throuehout 
the  complex  of  Federal  atjencles.  and 
make  sure  that  the  data  and  analysis  are 
made  available  to  the  Cc^gress  and  the 
public  on  a  regular  ba.sis. 

My  amendment  would  first  require  the 
President  to  prepare  an  annual  .sho-'-tages 
report,  Including 

A  list  of  raw  matertal.s.  minerals,  serv- 
ices, and  nmnufactured  item";  known  or 
expected  to  be  In  scarce  supply: 

Projectloas  of  the  actual  and  projected 
supply  and  demand  for  such  goods  and 
services : 

An  analysis  of  the  impact  of  shortages 
on  the  economic,  .social,  and  other  re- 
quirements of  our  Nation:         '' 

A  review  of  the  impart  of  public  and 
private  programs  and  activities  on  short- 
ages: 

Recommendations  on  methods  to  im- 
prove existing  programs  and  activities  to 
deal  with  shortages. 

Second.  It  would  require  the  President 
to  submit  an  annual  food  ix)llcy  report, 
including. 

A  list  of  agricultural  products  known 
or  expected  to  be  In  short  supply; 

The  estimated  supply  and  demand  of 
such  products,  both  domestic  and  Inter- 
national;   »* 

An  estimate  of  domestic  and  world 
food  reserves; 


A  review  of  the  Impact  of  public  and 

private  programs  on  shortages  of  food 
and  on  the  long-term  ability  of  our  Na- 
tion lo  produce  food : 

An  estimate  of  what  consumers  might 
reasonably  be  expected  to  pay  for  scarce 
food  produ>:  ts : 

Recommendations  on  methods  to  im- 
prove existing  programs  and  activities 
related  to  .shortages. 

Third,  my  amendment  would  create 
a  National  Shortages  Board  to  serve  as 
a  central  ofQce  for  the  coliectlon,  evalua- 
tion, and  dissemination  of  information 
about  shortages 

The  Board  would  be  composed  of  the 
prmclpal  Cabinet  officers  who  now  have 
plarmuig  responsibilities,  Including  the 
Secretaries  of  Agriculture.  Commerce, 
Health,  Education,  and  Welfare.  Housing 
iuid  Urban  Development,  Interior,  Labor, 
Stale.  Transportation,  and  Treasurj-. 
But.  In  place  of  the  present  piecemeal 
planmng  efforts,  tlie  Board  w&uJd  have 
its  owTi  director  and  staff  capable  of  co- 
ordinated analysis  and  planning. 

The  Board  would  advise  the  Presi- 
dent in  the  preparation  of  the  annual 
shortages  and  food  poUcy  reports,  would 
make  projections  regarding  present  and 
future  supply  and  demand  of  scarce 
goods  and  services,  and  would  review 
and  evaluate  the  activities  of  public  and 
private  programs  designed  to  deal  with 
shortages. 

On  the  day-to-day  basis  the  Board 
would  also  coof>erate  with  and  assist 
existing  agencies  in  attempting  to  antici- 
pate, prevent  and/or  minimize  the  effects 
of  shortages. 

The  Board  would  have  specific  respon- 
sibilities m  seekmg  to  help  eliminate  ob- 
stacles to  the  orderly  production,  proc- 
e,ssing.  and  marketmg  of  food,  including 
.shortages  of  fuel,  fertihzer,  feed,  equip- 
ment, tran.sportation.  and  credit 

The  pending  bill  recognizes  the  need  to 
react  quickly  and  effectively  when  short- 
ages threaten  our  domestic  economy.  Ex- 
port controls  are  one  means  to  curb  de- 
mand for  scarce  materials;  and  m  the 
face  of  rapid  inflation  and  worker  lay- 
offs, they  may  be  essential  to  our  do- 
mestic economy. 

However,  the  United  States  is  depend- 
ent upon  other  countries  for  a  large  and 
growing  list  of  vital  raw  materials. 

If  we  were  to  cut  off  exports  of  oil. 
coal,  or  other  energ>-  sources,  would  the 
Canadians,  one  of  our  biggest  petroleum 
suppliers,  be  encouraged  to  cut  off  their 
exports  to  us? 

When  we  impose  export  controls,  we 
must  be  siire  that  they  do  not  end  up 
reducing  our  vital  Imports,  aggravating 
shortages,  pushing  consiimer  prices  high- 
er, and  causing  even  greater  job  losses 
to  workers. 

Therefore,  in  weighing  Government 
actions  designed  to  alleviate  shortages, 
the  Board  would  also  be  responsible  for 
ansdv-zlng  the  Impacts  of  export  controls 
on:  domestic  supplies  and  prices  of  scarce 
commodities,  on  anticipated  imports  of 
products  needed  by  the  United  States,  on 
our  Nation's  trade  goals,  and  on  our  re- 
lationships with  our  trading  partners. 

Shortages  creates  far  greater  problems 
for  our  economy  than  Just  Inconvenience. 
Many  of  the  shortages  that  have  oc- 
curred In  1973  have  not  yet  been  felt  at 


the  retail  level,  but  they  will  be.  And  as 
shortages  spread  through  our  economy, 
they  carrj-  with  them  the  perils  of  im- 
employment  coupled  with  inflation — the 
greatest  threat  to  our  standard  of  living 
In  40  years. 

Bottlenecks  in  manufacturing  are 
spreading,  and  wholesale  prices  are  ris- 
ing rapidly.  In  November  the  wholesale 
price  index  stood  at  17.5  percent  above 
a  year  ago.  Prices  for  ba.'^ic  materials  in 
October  were  23  percent  higher  than  in 
1972  As  shortages  filter  down  to  the  con- 
sumer level  in  1974,  higher  prices  will 
continue  to  erode  the  incomes  of  work- 
ing families 

Thousands  of  auto  workers  and  airline 
employees  have  already  been  thrown  out 
of  work,  A  cutback  of  15  percent  in  the 
petrochemical  industry  alone  could  mean 
a  loss  of  as  many  as  1.6  million  jobs. 

The  brutal  impact  of  plant  closings, 
worker  layoffs,  and  bky rocketing  prices  Is 
u.suallj'  measured  m  economic  terms.  But 
the  himian  costs  to  the  elderly  livmg  on 
fixed  incomes  and  to  unemiployed  parents 
with  children  to  supjxirt  are  even 
greater.  And  at  a  time  when  trust  in 
Government  is  at  an  historic  low,  our 
political  system  cannot  stand  further  loss 
of  public  confidence  because  of  continued 
economic  mismanagement. 

Mr  J  President,  this  is  a  painful  time 
In  our  country's  historj'.  M>-  amendment 
is  by  no  means  a  cure-all  for  the  prob- 
lem of  shortages.  There  are  no  easy  an- 
swers to  the  short  term  crisis  over  energy 
production,  and  there  are  no  easy  an- 
swers to  long  term  questions  of  resource 
availability  and  use.  My  amenciment 
promises  no  easy  answers.  But  it  would 
assure  that  the  admimstration.  the  Con- 
gress, and  the  American  people  will  have 
the  kind  of  information  we  need  to  make 
the  difficult  choices  -Aith  our  eyes  wide 
open  It  would  end  decisionmaking  in 
panic  and  ignorance,  I  believe  it  is  an 
urgently  needed  step  in  the  right  direc- 
tion, and  I  am  hopeful  that  the  Senate 
will  adopt  this  proposal. 

In  the  worcLs  of  the  distinguished  econ- 
omist. Walter  Heller: 

Once  again,  m  today's  energy  crtsla.  the 
U5.  Is  learning  the  costly  lesson  that  w« 
can't  manage  economic  jxjllcy  as  if  ther« 
were  no  tomorrow. 


ADDITIONAL    COSPONSORS    OF    AN 
AMENDMENT 

AKXND»£E>rT    NO,    «20 

At  the  request  of  Mr.  Muskii  the 
Senator  from  Illinois  (Mr.  Stf\-enson^ 
and  the  Senator  from  Minnesota  'Mr. 
HricPHRiy '  were  added  as  cosponsors  of 
amendment  No.  920,  intended  to  be  pro- 
posed to  the  bill  'H.R,  8214'  to  modify 
the  tax  treatment  of  members  of  the 
Armed  Forces  of  the  Umted  States  and 
civilian  employees  who  are  prisoners  of 
war  or  missing  in  action,  and  for  other 
purposes. 


NOTICE    OF    HEARINGS    ON    THE 
ECONOMIC  STABILIZATION  ACT 

Mr    JOHNSTON.   Mr.   President,   the 

Subcommittee  on  Production  and  Sta- 
bilization of  the  Banking  Housing  and 
Urban    .Affairs    plan    to    hold    hearings 


42406 


CONGRESSIONAT   RFCORD  — SENATE 


December  19,  1973 


January  30,  31.  and  February  1.  1974. 
These  hearings  will  be  In  regard  to  the 
Economic  Stabilization  Act  which  ex- 
pires April  30,  1974. 

Anyone  that  wishes  to  testify,  please 
contact  Jack  Weiss,  225-5824.  room  432, 
Old  Senate  Office  Bxillding  or  Gerald 
Allen,  225-7391,  Banking  Committee. 
New  Senate  Office  Building. 


ANNOUNCEMENT  OF  REGIONAL 
FIELD  HEARINGS  ON  S.  2008.  NA- 
TIONAL WORKERS'  COMPENSA- 
TION STANDARDS  ACT 

Mr.  WILLIAMS.  Mr.  President.  I  wish 
to  announce  that  the  Subcommittee  on 
Labor  of  the  Committee  on  Labor  and 
Public  Welfare  will  begin  a  series  of  re- 
gional field  hearings  on  legislation  de- 
signed to  provide  Federal  standards  for 
workers'  compensation. 

The  first  hearings  will  be  on  Thursday, 
January  24,  1974.  In  Portland,  Oreg..  in 
the  auditorium  of  the  BonnesvlUe  Public 
Power  Administration  Building  begin- 
ning at  9  a-m.  The  second  hearing  will 
take  place  the  following  day,  Friday  Jan- 
uary 25,  1974.  in  the  Federal  Courthouse 
in  Sacramento,  Calif.,  also  beginning  at 
9  a.m. 

The  subcommittee  expects  to  hear  wit- 
nesses at  the  Portland  hearing  who  rep- 
resent interested  persons  ou  groups  on 
the  subject  of  workers'  compensation 
from  Oregon.  Washington.  Idsiho.  Mon- 
tana, and  Wyoming  and  in  Sacramento 
from  California,  and  Nevada.  Those  per- 
sons or  groups  wishing  to  present  testi- 
mony at  these  field  hearings  should  con- 
tact the  staff  of  the  Labor  Subcommittee 
room  G-237,  Dirksen  Senate  Office  Build- 
ing or  telephone    202)  225-3674. 


ADDITIONAL  STATEMENTS 

STATEMENT    OF    SENATOR    SAM    J 
ERVIN.  JR.  CONCERNING  1974 

Mr.  ERVIN.  Mr.  President,  my  cur- 
rent term  as  a  US.  Senator  from  North 
Carolina  wiU  expire  at  noon  on  January 
3.  1975.  I  will  not  seek  reelection  to  the 
office  in  1974. 

My  decision  to  this  effect  has  been 
made  with  much  reluctance  after  much 
dehbe  ration. 

September  27.  1973,  was  my  77th 
birthday  anniversary  Despite  this  fact,  I 
still  do  as  much  work  in  the  Senate  as  any 
Senator  of  any  age.  and  stilj  find  the  offi- 
cial tasks  devol\ing  upon  me  challenging 
and  satisfying. 

Experience  is  the  most  efficient  teacher 
of  all  things,  including  legislating.  I  have 
been  pnMleged  to  serve  North  Carolina  In 
the  US  Senate  longer  than  any  other 
North  Carolinians  except  Matt  W.  Ran- 
som, Pumlfold  M.  Simmons,  and  Lee  S. 
Overman.    -^ 

A  case  can  be  made  for  the  proposition 
tiiat  my  long  service  in  the  Senate,  my 
familiarity  with  national  issues,  my 
friendship  with  my  senatorial  colleagues, 
my  chairmanship  of  the  Senate  Com- 
mittee on  Government  Operations,  my 
seniority  on  the  Senate  Committee  on 
the  Judiciary,  and  my  chairmanship  of 
Its  Subcommittees  on  Constitutional 
Rights.  Revision  and  Codification  of  the 


Laws,  and  Separation  of  Powers,  and  my 
seniority  on  the  Senate  Conrunittee  on 
the  Armed  Services  would  enable  me  to 
serve  North  9arolina  and  the  Nation  with 
more  effectiveness  in  the  Immediate  fu- 
ture than  at  any  time  in  the  past. 

Moreover.  North  Carolinians  past 
numbering  assure  me  of  their  approval 
of  my  course  In  the  Senate,  and  urge 
me  to  seek  reelection  In  1974.  To  them, 
I  am  deeply  grateful. 

Notwithstanding  these  considerations, 
intellectual  honesty  compels  me  to  con- 
front this  Inescapable  reality:  If  I 
should  seek  reelection  in  1974.  I  would 
be  asking  North  Carolinians  to  return 
me  to  the  Senate  for  a  term  which  would 
extend  beyond  the  84th  anniversary  of 
my  birth. 

Since  time  takes  a  constantly  ac- 
celerating toll  of  those  of  us  who  live 
many  years.  It  is  simply  not  reasonable 
for  me  to  assure  that  my  eye  will  re- 
main undlmmed  and  my  natural  force 
stay  unabated  for  so  long  a  time. 

As  a  consequence,  I  have  reached  the 
deliberate  conclusion  that  It  would  not 
be  fair  to  the  people  of  North  Carolina, 
who  have  honored  me  so  much  In  times 
past,  for  me  to  ask  them  to  reelect  me 
to  a  new  6-year  term  in  the  Senate, 
which  would  not  expire  imtil  January  3. 
1981. 

It  seems  not  amLss  for  me  to  give  the 
people  of  North  CaroUna  at  this  time 
something  In  the  nature  of  an  account- 
ing of  my  stewardship. 

As  their  Senator.  I  have  endeavored 
to  practice  on  all  occasions  the  concept 
that  a  public  office  is  a  pubUc  trust. 

During  my  ser\ice  In  the  Senate.  I  have 
sought  to  make  life  more  abundant  for 
the  farm  families  of  North  Carolina,  who 
produce  the  food,  fiber,  and  agricultural 
crops  essential  to  our  existence  and  com- 
fort: to  support  the  free  enterprise  sys- 
tem, and  promote  the  economic  Interests 
of  those  who  Invest  and  labor  In  North 
Carolina's  Industries;  to  promote  the  de- 
velopment of  worthwhile  projects  In 
North  Carolina's  river  basins  and  har- 
bors; to  preserve  constitutional  govem- 
-vajent  and  the  blessings  of  liberty  for  all 
Americans;  to  secure  to  those  who  labor 
freedom  to  join  or  to  refrain  from  join- 
ing unions  in  conformity  with  their  own 
desires:  to  compel  the  Federal  Govern- 
ment to  balance  its  budget,  stop  deficit 
financing,  and  terminate  its  wasteful  for- 
eign aid  programs;  to  maintain  Armed 
Forces  sufficient  to  Insure  our  national 
survival  in  a  precarious  world;  to  further 
education,  medical  research,  and  the 
public  health;  to  conserve  our  natural  re- 
sources, reduce  pollution  In  our  atmos- 
phere and  waters,  and  make  our  high- 
ways, parkways,  and  parka  toll-free  to 
all  our  people;  to  ."^ecure  reasonable  bene- 
fits to  disabled  veterans  and  their  de- 
pendents and  to  the  aging  and  handi- 
capped; to  obtain  the  enactment  of  laws 
to  protect  Federal  employees  against 
tyrannical  treatment  by  their  Govern- 
ment, and  to  obtain  the  enactment  of 
laws  establishing  procedures  for  constl- 
tutk)nal  conventions  called  on  the  petl- 
Uon  of  two-thirds  of  the  States. 

At  the  same  time  I  have  fought,  as 
sinful  and  tyrannical,  proposals  that 
Americans  be  taxed  to  support  religious 


Institutions  in  violation  of  the  first 
amendment;  as  incompatible  with  free- 
dom, proposals  that  State  right-io-work 
laws  be  repealed  and  that  compulsory 
unionism  be  forced  upon  those  who  do 
not  wish  to  join  unions;  as  inimical  to 
justice,  proposals  to  enact  "no  knock" 
and  preventive  detention  laws;  as  incon- 
sistent with  our  system  of  government, 
the  use  of  the  military  to  spy  on  civilians 
exercising  their  first  amendment  rights 
of  free  speech,  assembly,  and  petition; 
as  Intolerable,  governmental  efforts  to 
Intimidate  Individuals,  newsmen,  and 
broadcasters  for  exercising  their  rights 
of  free  speech  and  a  free  press  in  a  man- 
ner displeasing  to  government;  as  rank 
tyranny,  unnecessary  govermnental  in- 
vasions of  the  privacy  of  our  people,  and 
governmental  collection  and  computer- 
ization of  data  concerning  their  political 
and  reUgious  thoughts,  beliefs,  and  ac- 
tivities; and  as  unwise,  welfare  proposals 
calculated  to  convert  able-bodied  Ameri- 
cans into  mendicants. 

During  my  years  as  a  Senator,  I  have 
authored  or  sponsored  many  legislative 
proposals  which  have  been  enacted  Into 
law.  Among  them  were  the  act  protecting 
the  constitutional  rights  of  mentally  111 
persons  in  the  District  of  Columbia,  the 
act  securing  constitutional  rights  to 
American  Indians  residing  on  reserva- 
tions, the  Criminal  Justice  Act  of  1964, 
the  Law  Enforcement  Assistance  Act  of 

1965,  the  Bail  Reform  Act  of  1966,  the 
Narcotic    Addict   Rehabilitation   Act   of 

1966.  the  Military  Justice  Act  of  1968.  and 
the  Onuiibus  Crime  Control  and  Safe 
Streets  Act  of  1968. 

During  my  time  in  the  Senate.  I  ac- 
cepted opportunities  to  appear  in  five 
cases  before  the  Supreme  Court  because 
of  the  substantial  constitutional  issues 
involved  In  them. 

These  cases  were:  Textile  Workers  v. 
Darlington.  380  U.S.  263.  where  the 
Court  unanimously  upheld  my  argument 
that  under  the  National  Labor  Relations 
Act  a  private  business  can  cease  operat- 
ing entirely  for  any  reason  satisfactory  to 
Itself  and  repudiated  a  National  Labor 
Relations  Board  decision  to  the  contrary; 
Flast  v.  Cohen.  392  U.S.  83.  where  the 
Court  upheld  my  argument  that  a  Fed- 
eral taxpayer  can  maintain  an  action  In  a 
Federal  court  challenging  on  first 
amendment  grounds  grants  or  loans  of 
Federal  tax  money  to  religloiis  institu- 
tions; United  States  v.  Gravel.  408  U.S. 
606,  where  the  Court  upheld  the  argu- 
ment made  by  Senator  Saxbe  and  me  in 
behalf  of  the  Senate  that  the  protection 
of  the  speech  and  debate  clause  of  the 
Constitution  extends  to  a  Senators  aide 
while  he  is  assisting  the  Senator  in  the 
performance  of  his  official  duties;  Laird 
V.  Tatum.  408  US.  1.  where  the  Court  In 
a  5-to-4  decision  rejected  my  argument 
that  the  complaint  which  was  drafted  by 
others  was  sufficient  to  state  a  cause  of 
action  against  Defense  officials  for  using 
the  Army  to  spy  on  civilians  in  violation 
of  their  first  amendment  rights;  and 
Sicann  v.  Board  of  Education,  402  US.  1. 
the  Charlottee- Mecklenburg  School  bus- 
ing case,  where  I  filed  an  amicus  curae 
brief  for  the  Chariotte-Mecklenburg 
Clas.sroom  Teachers  Association  urging  a 
reversal  of  the  busing  decree. 


December  19,  197  3"^ 


CONGRESSIONAL  RECORD  —  SENATE 


42407 


I  add  additional  observations  concern- 
ing the  Darlington  case,  where  I  a-ppeared 
for  the  limited  purpose  of  arguing  before 
the  Supreme  Court  that  the  National  La- 
bor Relations  Act  did  not  deny  a  pri- 
vate business  the  right  to  go  out  of  busi- 
ness completely  for  any  reason  satisfac- 
tory to  Itself.  I  beUeve  that  the  decision 
of  the  NLRB  t<i  the  contrarj'  ^ffas  repug- 
nant to  freedom.  The  Darlington  case  in- 
volved controversies  sjnong  private  liti- 
gants; the  United  States  has  no  legal  ^or 
financial  interest  whatever  in  the  mat- 
ter; and  the  Supreme  Court  imanimous- 
ly  adjudged  that  my  argument  was  in 
complete  harmony  with  the  Intent  of 
Congress  as  set  out  in  the  National  La- 
bor Relations  Act. 

I  take  this  occasion  to  express  my  pro- 
found gratitude  to  the  thousands  of 
North  Carolinians  who  throughout  the 
years  have  support-ed  me  In  my  effort  to 
secure  good  government  for  the  people  of 
our  land:  to  the  officers.  Members,  and 
employees  of  the  Senate  whose  kindliness 
and  helpfulness  have  made  my  service 
with  them  a  happy  experience;  to  the 
members  of  my  personal  staff  as  a  Sen- 
ator who  have  served  me  and  North  Car- 
^  olina  with  great  abiUty  and  complete  de- 
votion; to  the  members  of  the  staffs  of 
the  Senate  Committees  on  the  Armed 
Services.  Government  Operations,  and 
the  Judiciary,  who  have  assisted  me 
greatly  In  the  performance  of  the  duties 
devolving  upon  me  as  a  member  of  these 
committees; 

To  the  members  of  the  staff  of  the 
Senate  Subcommittee  on  Revision  and 
Codification  of  the  Laws,  who  have  been 
diligent  in  their  efforts  to  revise  and 
codify  the  laws  with  accuracy  and  to  aid 
me  In  countless  other  ways;  to  the  mem- 
bers of  the  staffs  of  the  Senate  Subcom- 
mittees on  Constitutional  Rights  and 
Separation  of  Powers  who  have  joined 
me  with  untiring  dedication  in  many 
fights  to  protect  the  constitutional 
rights  of  all  our  citizens  and  to  preserve 
constitutional  government  for  all  our 
people;  to  the  members  of  the  staff  of 
the  Senate  Select  Committee  on  Presi- 
dential Campaign  Activities  who  have 
sought  with  Intelligence,  courage,  and 
fairness  to  discover  the  truth  in  respect 
to  the  tragedies  known  collectively  as  the 
Watergate  affair  and  to  plan  proposed 
legislation  to  forestall  the  recurrence 
of  such  tnigedies;  and  to  my  wife,  Mar- 
garet Bell  Ervin,  whose  understanding 
heart  has  made  her  companionship  an 
unceasing  inspiration  and  joy. 

My  wife  and  I  expect  to  return  to  our 
home  in  Morganton,  the  county  seat  of 
Burke  County,  N.C.,  upon  the  expiration 
of  my  present  term  In  the  Senate.  Here 
we  hope  to  dwell  for  a  time  among  the 
people  who  have  known  us  best  and  loved 
us  most,  and  to  watch  the  sun  set  In 
indescribable  glory  behind  Table  Rock 
and  Hawk's  BUI  Mountain. 


UNITED     STATES     NOW     FIGHTINO 
FOR  SECOND-RATE  STATUS 

Mr.  THURMOND.  Mr.  President,  every 
American  shotild  read  the  article  by  Paul 
Harvey  entitled  "United  States  Now 
Fighting  for  Second-Rate  Status." 

This  editorial  appeared  In  the  Thurs- 
CXIX 2671— Part  33 


day.  December  6,  1973,  issue  of  the  Aiken 
Standard  newspaper  in  Aiken.  S.C. 

In  it  Mr.  Harvey  points  out  that  the 
good  life  which  most  Americans  enjoy 
ha.';  brought  with  it  some  cJiaracteristlcs 
wliich  do  not  bef^t  a  great  nation. 

While  this  article  .'^j:^ks  mainly  to  our 
Nation's  working  fore?  it  could  as  easily 
be  applied  to  many  other  segments  of 
our  economy  including  those  who  work 
for  various  levels  of  government. 

Mr.  President,  I  ask  unanimous  con- 
sent that  this  article  be  printed  in  the 
Record  at  the  conclusion  of  my  remarks. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record, 
as  follows; 

[Prom   the   Aiken    (S.C.)    Standard,  Dec.   6. 
1973) 

United  States  Now  Phshtino  for  Secokd- 
Rate  Status 

(By  Paul  Harvey) 

The  United  States  Is  In  a  downhUl  race 
for  second  place. 

Its  people  are  letting  It  down. 

The  United  States  used  to  make  76  per 
cent  of  aU  the  world's  automobUes;  now  we 
make  33  per  cent. 

Once  we  produced  47  percent  of  all  the 
world's  steel;  now  19  per  cent. 

In  the  fifties  we  built  mo6t  of  the  mer- 
chant ships  In  the  world;  In  the-  seventies 
we're  buUdlng  only  2  per  cent  of  them. 

And  where  we  were  first  as  a  buUder  of 
machine  tools,  now  we  are  third. 

The  sewing  machine  wsis  "all-American" 
for  generations.  Today,  only  one  company 
makes  them  In  our  country. 

Some  40  per  cent  of  all  Americans  wear 
shoes  made  outside  America. 

Why? 

Why  are  other  nations  now  outdistancing 
ours  In  the  manufacture  of  almost  e:^ery- 
thlng?  Because  their  workers  will  work  longer 
for  less. 

No.  we  can't  blame  Washington  for  this. 
Labor  leader  George  Meany  can't  blame 
Pre-ldent  f'lxon  for  this. 

Our  nation  Is  a  lesser  competitor  In  the 
world  marketplace  because  Anaerlcan  workers 
have  been  running  scared  from  work. 

We  demand  ever-increasing  wages,  but 
we're  content  to  turn  ut  shoddy  merchan- 
dise. Made-ln-Amerlca  stuff  costs  exorbi- 
tant prices  and  falls  apart.  So  disgusted  cus- 
tomers shop  elsewhere. 

And  the  "customer  servloe"  that  Americans 
used  to  be  so  good  at — falters. 

Today  the  second  most  frequent  com- 
plaint received  by  the  Better  Business  Bu- 
reau is  about  "unsatisfactory  service";  fre- 
quently It's  plain  old-feahloned  rudeaeas. 

Detroit's  carmakers  have  had  to  establish 
special  telephone  '.Inos  to  deal  with  the  ava- 
lanche of  customer  complaints. 

Carmakers  struck  less  leist  year  than  any 
year  In  nine,  but  any  given  day  at  Chrysler 
one-ln-ten  workers  Just  "doesn't  bother  to 
show  up." 

And  while  American  labor  leaders  justify 
their  own  Jobs  with  Increasing  demands  for 
higher  wages,  shorter  workweeks,  ea/ller  re- 
tirement, more  fringe  ?  eneflte,  the  harder 
workers  In  Japan  are  about  to  buy  us  out — 
with  our  own  worth-less  dollars. 

Jim  Wlndle,  professor  of  Industrial  super- 
'  :slon  at  Purdue,  says  our  economy  Is  being 
anafued  by  goidbrlckers.  "by  a  24-karat  I- 
dont-glve-a-damn  syndrome  sweeping  the 
nation. 

"New  products  fall  ef>art  like  cheap  junk; 
waiters  a-t  like  they're  doing  you  a  favor  by 
waiting  on  you;  you  wait  hours  In  a  physi- 
cian's office  while  he  plays  golf;  airlines  inls- 
dlrect  your  luggage:  dry  cleaners  send  your 
things  back  still  stained — or  lose  them.  .  ." 

Do  you  realize  that  the  only  liopt  on  the 


horizon  for  America's  economic  survival  Is 
that  the  Japanese  and  Germans,  hurrying, 
as  we  did,  will  get  nob.  as  we  did,  and  get 
lazy — as  we  i.»ld  ^  \_^ 


AID  FOR  LEG-\L  SERVICES 

Mr.  BIDEN.  Mr.  President,  I  am  happy 
to  support  Senate  bill  2686  which  will 
establish  a  National  Legal  Services  Cor- 
poration Act  to  allow  for  the  continued 
operation  of  Legal  Services  programs 
currently  sponsored  by  the  OflSce  of  Eco- 
nomic Opportunity. 

S.  2686  is  a  compromise.  It  does  place 
some  restrictions  on  local  legal  aid  pro- 
grams and  their  staffs  But  the  need  to 
provide  skilled  attorneys  for  the  poor  and 
disadvantaged,  the  need  to  allow  the 
poor  and  disadvantaged  equal  access  to 
our  institutions  of  justice,  without  re- 
gard to  wealth,  the  need  to  work  toward 
making  equal  justice  under  the  law  a 
reaUty,  compels  me  to  strongly  endorse 
this  compromise. 

The  Etelaware  State  Bar  Association 
has  stronglj-  endorsed  the  concept  of  an 
Independent  and  adequately  fimded 
legal  services  program.  A  copy  of  that 
resolution  will  be  made  available  for  the 
Record.  It  was  certainly  not  accidental 
that  the  bar  saw  fit  to  unanimously  en- 
dorse the  need  for  legal  assistance  at  a 
time  last  spring  when  the  program  was 
under  an  imparalleled  attack  by  an  Act- 
ing Director  of  OEO  subsequently  found 
to  be  holding  office  unlawfully,  an  Act- 
ing Director  whose  very  action  was  not 
only  contrarj'  to  the  principles  so  aptly 
summed  up  in  the  words,  equal  Justice 
under  the  law.  but  was  even  contrary  to 
the  expressed  support  for  legal  aid  often 
given  by  the  President.  Fortunately,  with 
the  confirmation  of  Al  Amett  as  Director 
of  OEO  the  legEd  services  program  has 
been  able  to  continue  to  provide  quaUty 
legal  assistance,  promptly  and  effec- 
tively, while  awaiting  a  new  home.  It  is 
time  we  acted. ,  -'  .      - 

In  Delaware  l^al  assistance  to  the 
poor  is  provided  by  the  Community  Legal 
Aid  Society.  It  Is  the  result  of  a  merger 
between  the  Legal  Aid  Society  of  Dela- 
ware. estabUshed  by  the  Delaware  State 
Bar  Association  in  1946 — and,  I  might 
note,  one  of  Its  incorporators  was  my 
predecessor,  the  Honorable  J.  Caleb 
Boggs — and  the  Community  Law  Serv- 
ices, first  funded  by  OEO  in  1966.  Our 
program  is  now  statewide,  serves  some 
4,000  clients  per  year,  at  a  cost  of  less 
than  $70  per  client,  and  has  received 
the  strong  support  of  all  elements  of  the 
organized  bar,  of  count>-  government  in 
each  coimty  in  the  State,  and  the  State 
itself.  In  expressing  his  opinion  about 
the  program.  Governor  Sherman  W. 
Tribbltt  said: 

The  proposed  project  addresses  •Itself  to 
an  urgent  need  to  the  poor  throughout  Dela- 
ware. The  organizations  direct  record  has 
pro\-en  to  a  vital  element  of  the  services  to 
the  poor. 

.Thus,  In  my  State  of  Delaware  It  Is 
clear  that  all  dements  In  public  life 
firmly  suwwrt  the  concept  of  an  Inde- 
pendent Leiral  Services  program,  a  pro- 
gram able  to  provide  the  fiill  range  of 
legal  a.<vsistRnce  usually  avail  able  from 
an  attorney.  I  urge  that  S.  2686  be  en- 
acted without  further  delay. 


42408 


CONGRESSIONAL  RECORD  — SENATE 


Mr.  President,  I  ask  unaoimous  con- 
sent that  the  resolution  of  the  Delaware 
State  Bar  Association  be  printed  In  the 
Recou). 

There  beln«  no  objection,  the  resolu- 
tion was  ordered  to  be  printed  to  the 
R«coRj).  as  follows: 
RxaoLunoN  or  thm  Dxi^warx  Stat«  Bam 
AaaociAnoif 
(Adopted  ujjanlaaouaJy.  April  1978) 
Wbere,a«,the  legal  services  pro^ama  spon- 
^£;3Jred  ty  the  Office  of  Bconomlc  Opportunity 
provide  »  necessary  and  vital  service  in  sup- 
port of  the  concept  of  equal  Justice  under 
the  law.  and 

Whereas,  the  Delaware  State  Bar  Associa- 
tion for  many  years  prior  to  the  creation  of 
the  Office  of  Economic  Opportunity  Legal 
Services  Program  sponsored  the  Legal  Aid 
Society  of  Delaware,  and 

Whereas,  in  1971  the  Legal  Aid  Society  of 
Delaware  and  the  O-E.O  sponsored  Commu- 
nity Law  Service  merged  to  l)ecome  the  Com- 
munity Legal  Aid  Society.  Inc.,  and 

Whereas,  the  Delaware  State  Bar  Associa- 
tion recognizes  that  only  an  Independent 
legal  aid  organization  can  effectively  begin 
to  make  equal  Justice  under  the  law  a  real- 
ity, now  therefore 
Be  It  resolved  that: 

1.  The  Delaware  State  Bar  Association  urges 
the  creation  of  a  National  Legal  Services 
Corporation  that  will  insure  the  continued 
Independence.  Integrity,  and  effectiveness  of 
the  program  free  from  political  Interference 
a.  The  Delaware  SUte  Bar  Association  sup- 
ports the  need  for  adequate  funding  that  wUl 
allow  the  program  to  better  meet  the  needs 
of  the  poor  people  of  Delaware. 

3.  This  resolution  shall  be  sent  to  the  Hon- 
orable Richard  M.  Nixon,  to  Mr.  Howard 
Phillips,  Acting  Director.  Office  of  Economic 
Opportunity,  to  Mr  J  Lawrence  McCarty 
Acting  Director.  Office  of  Legal  Services,  to 
the  Honorable  WUllam  V.  Roth,  Jr.,  to  the 
Honorable  Joseph  Blden,  and  to  the  Honor- 
able Pierre  S.  duPont,  IV. 


December  19.  197S 


either  the  I>re«ldent  or  Vice  President  of  the 
United  States  when  such  becomes  necessary 
*nd  by  its  nature  would  not  be  Invoked  In 
ordinary  times. 

Gerald  R.  Pord.  on  the  other  hand.  U  a 
very  ortlinary  man.  a  decent  human  being 
who  operates  in  a  tradition  of  clvUUy  and 
respect  for  both  Insututlous  and  persons 
When  he  fac*i  the  Senate  Rules  Commltt** 
to  be  examined  for  fltness  by  a  group  domi- 
nated by  political  opponents,  he  was  able  to 
say  with  disarming  candor:  "I  feel  that  I 
am  among  friends." 

And  so  he  was.  Democrate  as  well  as  Re- 
publicans voted  in  overwhelming  numbers 
to  conOrm  htm  for  high  office  Many  could 
decry  his  Midwestern  conservatism  but  none 
could  deny  that  he  was  a  genUeman.  an 
upright  and  forthright  public  servant  a  tr\ie 
representative  of  that  host  of  Americans  who 
had  given  Republican-enunciated  principles 
a  resounding  affirmation  at  the  polls  13 
months  earlier. 

On  learning  of  bis  conflrmatlon.  one  of 
his  close  friends  in  Congrees  told  him  that 
his  only  regret  was  that  he  could  no  longer 
call  him  Jerry.  "Prom  now  on  it  wUl  have  to 
be  Mr.  Vice  President  " 

So  It  wlU.  And  yet.  behind  the  form.ilUtles 
of  protocol  we  believe  there  wlU  always  be  a 
Jerry  Pord.  a  sincere  and  humble  man  irom 
Grand  Rapids  who.  in  the  strange  meander- 
Ings  of  time  and  the  tides,  has  been  swept 
Into  the  second  highest  office  in  the  land. 

Mr.  Vice  President,  your  constitutionally 
deflned  duties  are  few  but  your  real  task  is 
large  Indeed.  In  these  extraordinary  times 
the  nation  wishes  vou  well. 


THE  AGRICULTURE  AND  CONSUMER 
PROTECTION  ACT  OP  1973 


VICE  PRESIDENT  PORD 

Mr.  HUGH  SCOTT.  Mr.  President,  the 
Harrisburg  Patriot,  in  a  thoughtfully 
worded  editorial,  describes  our  new  Vice 
President.  Gerald  R.  Pord.  as  "a  decent 
human  being  who  operates  in  a  tradition 
of  civility  and  respect  for  both  institu- 
tions and  persons."  In  addition,  the 
Patriot  offers  a  wish  to  Vice  President 
Pord  which  I  echo:  "In  these  extraonll- 
nary  times  the  Nation  wishes  you  well." 
I  ask  unanimous  consent  that  this  edi- 
torial be  printed  in  the  Record. 

There  being  no  objection,  the  editorial 
was  ordered  to  be  printed  In  the  Record, 
as  follows; 

Nxw  VsKP:  Poan  Sriu-  Has  Common 
Touch 
0»AND  Rapids.  Mich —Is  a  prldeful  Mid- 
western city  where  they  make  a  lot  of  furni- 
ture and  grow  the  likes  of  Gerald  R.  Pord 
On  Thursday,  with  his  family  and  scores  of 
hometown  folk  in  the  audience,  the  Grand 
Rapids  lawyer  who  went  to  Washington  25 
years  ago  was  sworn  in  as  the  40th  Vice 
President  of  the  United  SUtea  and  the  first 
ever  to  be  chosen  for  that  office  under  terms 
of  the  25th  Amendment  to  the  Constitution 
As  seen  on  television  by  millions  of  Ameri- 
cans, it  was  a  simple  and  unostentatious  cere- 
mony, yet  one  dripping  with  historical  sig- 
nificance. The  asth  Amendment  was  pro- 
poaed  in  ^ongreas  on  July  8,  19«5.  and  de- 
clared effettive  on  Feb.  23,  19fl7.  after  raufl- 
cation  by  the  leglalatxires  of  39  states.  It  af- 
flrms    procedures    for    the    replacement    of 


Mr.  YOUNG.  Mr.  President,  farm 
leaders  in  and  out  of  Congress,  and  most 
farm  publications,  have  rightfully 
claimed.  1  believe,  that  the  Agriculture 
and  Consumer  Protection  Act  of  1973 
passed  earlier  this  year.  Is  the  best  farm 
price  support  bill  ever  enacted  by  Con- 
gress. 

Like  most  legislation.  It  represented  a 
compromise  between  the  bills  passed  by 
the  House  and  Senate.  Even  with  the 
compromises.  It  Is  still  a  good  farm  pro- 
gram. Its  major  feature  is  the  target 
price  concept,  which  I  originated. 

The  bill  passed  by  the  Senate  set  tar- 
get prices  for  wheat  at  $2.28  a  bushel  and 
tor  com  at  $1.53  a  bushel.  The  House  bill 
established  the  target  price  for  wheat  at 
$2.05  a  bushel  and  for  corn  at  $1  38  a 
bushel.  In  order  to  get  a  bill  at  all.  the 
Senate  conferees  had  to  reluctantly  ac- 
cept some  less  favorable  provisions  of  the 
House  bUl.  The  conferees  fixed  the  tar- 
get price  for  wheat  for  the  first  2  years 
at  $2.05  a  bushel,  com  at  $1.38  a  bushel 
and  barley  at  $1.13  a  bushel. 

The  Senate  bill  tied  the  target  price  to 
parity  which  meant  that  the  target  price 
would  tocrease  considerably  for  each  of 
the  next  4  years,  if  costs  of  farm  oper- 
ations continue  to  rise.  The  compromise 
with  the  House  deleted  the  parity  or 
escalator  provision  for  the  first  2  years. 
but  a  new  escalator  provision  will  be  In 
effect  for  the  last  2  years  of  the  act— 
1976  and  1977.  This  will  mean  increases 
to  target  price  levels  the  last  2  years  as 
the  cost  of  farm  operations  Increase. 

The  price  support  for  wheat  In  the 
Senate  bill  was  $1.25  a  bushel  and  $1  49 
to  the  House  bUl.  The  conferees  agreed 


to  $1.37  price  support  for  wheat.  $1.10  for 
com.  and  90  cents  for  barley. 

The  House -Senate  conferees  retataed 
disaster  pa>'ments  to  fanners  who  lose 
their  crop  due  to  hall,  drought,  or  any 
other  reason.  As  an  example,  If  a  farmer 
has  a  total  crop  failure,  he  would  be  paid 
68  cents  a  bushel  for  the  normal  wheat 
producUon  established  for  his  farm. 
Similar  provisions  apply  to  barley  an 
com. 

Mr.  President,  one  of  the  better 
analyses  of  the  new  farm  bill  and  how 
It  will  affect  farmers  was  carried  to  the 
December  6  Issue  of  the  Benson  County 
Farmers  Press  published  at  Mlnne- 
waukan.  N.  Dak.  I  ask  unanimous  con- 
sent that  It  be  printed  to  the  Record  as 
a  part  of  my  remarks. 

There  bemg  no  objection,  the  article 
was  ordered  to  be  prtoted  to  the  Record. 
as  follows: 

PAJtMna    PaOTECTCD    BT    ploor    Paic*    UNDa 

Nrw  Faam  Bnx 
Historically,  American  farmers  have  pro- 
duced more  than  American  consumers  were 
willing  to  buy.  so  farm  prices  were  kept  very 
low  Even  demand  from  foreigners  was  not 
sufficient  to  maintain  U.S.  farm  prices  at 
acceptable  levels.  To  help  keep  the  farmer 
In  business  over  the  last  40  years,  the  federal 
government  has  used  a  series  of  programs  to 
both  restrict  supplies  of  farm  commodlUea 
and  support  farm  prices  in  plentiful  years 

But  all  this  has  changed.  According  to  an 
article  published  by  the  Federal  Reserve 
Bank  of  Minneapolis.  American  farmers  could 
not  produce  enough  In  1973  to  meet  demands 
and  despite  record  farm  output,  commodity 
prloes  climbed  to  unprecedented  levels  The 
index  of  prices  received  by  farmers  reached 
191  by  September,  starting  from  only  129  a 
year  ago  ( 1967  equaled  100) . 

To  deal  with  this  radically  different  situa- 
tion, the  government  has  had  to  change  lu 
farm  policy.  The  1973  Agriculture  and  Con- 
sumer Protection  Act.  signed  into  law  in 
August,  encourages  all-out  production  and 
at  the  same  time,  cushions  farmers  against 
price  declines  by  peggaig  minimum  rates  of 
return  on  certain  commodities. 

The  Act  specifies,  for  example,  that  in  the 
1974  and  1975  crop  years  producers  are  guar- 
anteed $2  05  per  bushel  for  wheat.  »1J8  for 
corn  and  tl  13  for  barley  grown  on  allotted 
acreage.  These  "target  prices"  are  substan- 
:riir  **'°''  September's  market  prices  of 
•4.62  fcff  wheat,  $2.15  for  com  and  $3  87  for 
barley.  When  market  prices  exceed  Urget 
prices,  no  government  payments  will  be 
made,  but  when  market  prices  fall  short  of 
target  prices,  farmers  wUl  receive  the  differ- 
ence as  a  direct  subsidy.  An  "escalator  clause- 
has  been  written  Into  the  Act  to  adjust 
target  prices  upward  to  cover  rUing  produc- 
Uon costs  In  the  1976  and  1977  crop  years 

The  new  farm  program  also  provides  for 
farmland  to  be  s«  aside  for  conservation  or 
nonproductive  usee  if  the  Secretary  of  Agri- 
culture determines  that  farm  output  is  likely 
to  be  excessive.  There  wUl  be  no  set-aside 
requirements  in  1974. 

Total  payments  under  the  new  program  are 
limited  to  $20,000  per  person,  a  change  from 
the  previous  limit  of  $55,000  per  crop  but 
few  farmers  in  the  Ninth  District  will  be 
affected  by  this 

The  Pederal  Reserve  Bank  calculates  that 
If  district  farmers  get  at  least  the  target 
price  in  1974.  total  cash  marketings  from 
crops  should  exceed  $3  bUllon.  The  annual 
average  from  1870  to  1972  was  only  $1.83 
billion,  over  half  a  bUllon  of  thU  came  froco 
direct  federal  payment*.  Anticipated  high 
market  prices  will  probably  eliminate  the 
need  for  federal  payments  In  1974. 


December  19, 


197.' 


CONGRESSIONAL  RECORD  —  SENATE 


42409 


THE  NEW  AMERICAN  REVOLUTION— 
A  DEDICATION  TO  FIRST  PRIN- 
CIPLES 

Mr    PROXMIRE.    Mr    President,   on 

Sunday.  December  16.  tiie  Governor  of 
Wisconsin.  Pat  Lucey  made  a  stirring 
address  at  the  r.lntii  \nnter  commence- 
ment of  the  University  of  WLsconsto.  I 
want  particularly  to  bring  thi.s  .speech 
to  the  attentiun  cf  my  colleague;-  in  tiie 
Senate  because  it  show.s  what  we  can  gain 
from  tilt  er.ergy  crtsii.  !f  we  take  the 
proper  attitude  toward  the  sacrlflces  it 
«urely  will  entail. 

Governor  Lucey  in  that  speech  referred 
to  a  new  revolutionary  spirit  exemplified 
by  the  word  "enough  ' — enough  pollution, 
ga6-gU22ltog  cars,  shabby  development  of 
our  land.  He  talked  about  being  inde- 
pendent from  Arab  oil.  mdependent  from 
an  economi'  built  on  pollution  and  prof- 
ligacy. This  Is  the  sort  of  todependence 
that  we  must  set  as  our  goal  if  we  are 
to  wto  this  new  Americam  revolution. 

So  that  my  colleagues  will  have  a 
chance  to  read  this  Inspiring  address  I 
ask  unanimous  consent  to  have  it  prtoted 
to  the  RzcoRi). 

There  being  no  objection,  the  address 
was  ordered  to  be  printed  to  the  Record, 
as  follows: 

Commekckmxnt  Aooeess  8t  Oov. 

Patbick   J.    LUCET 

It  Is  an  honor  for  me  to  participate  In  this, 
the  ninth  winter  commencement  In  the  long 
and  distinguished  history  of  the  University 
of  Wisconsin-Madison. 

This  Is  a  memorable  occasion  for  all  of  us. 
But  for  each  graduate,  this  day — December 
Ifl.  1973 — wlU  long  have  special  significance. 
In  a  very  real  sense,  today  Is  the  first  day  of 
the  rest  of  your  lives. 

Exactly  200  years  ago.  a  band  of  colonial 
Americans  took  unto  themselves  the  burden 
of  an  action  that  was  to  signify  the  first 
day  of  the  rest  of  our  life  as  a  free  society. 
TTiat  action  was  the  Boston  Tea  Party. 

A  group  of  educated  men.  merchants  and 
tradesmen,  their  faces  blackened  with  coal, 
methodically  dumped  340  chests,  or  over 
90.000  pounds,  of  dutied  tea  Into  the  Boston 
harbor.  "Enough"  was  their  cry,  and  the 
crowd  of  colonists  who  quietly  witnessed  this 
act  of  civil  disobedience  from  the  shoreline, 
assented  with  their  silence. 

We  do  not  celebrate  December  16th  as 
"liberation  day" — but  that  Is  what  it  sig- 
nifies. The  War  of  Independence  was  three 
years  away,  but  the  revolution  haul  begun — 
a  revolution  not  in  the  deed,  but  In  the 
attitude  that  allowed  the  deed  to  take  place. 

John  Adams  wrote  in  his  diary  the  next 
day  that  this  was  "the  most  magnificent 
Movement  of  all  .  .  .  and  It  must  have  so 
important  Consequences  and  so  lasting,  that 
I  cannot  but  consider  It  as  an  l^och  In 
History." 

T^o  centuries  Is  a  long  time.  There  are 
some  who  argue  that  the  American  epoch 
has  now  run  Its  course. 

Looking  around.  It  Is  easy  to  be  pessimistic. 
The  first  revolutionary  ruttlon  in  modem 
history  has  grown  complacent  In  Its  middle 
age.  To  life,  liberty,  and  pursuit  of  hap- 
piness, have  been  added  the  right  to  pollute, 
clutter,  waste  and  despoil. 

Fcr  two  hundred  years  we  have  been  a 
people  of  plenty.  Now  we  are  confronting 
iinprecedented  resource  shortages,  and  we 
are  unprepared. 

What  tea  was  to  colonial  America,  oil  is  to 
the  contemporary  United  States.  Were  King 


Oeorge  HI  and  the  East  India  Tea  Company 
any  less  accountable  to  the  people  iLen 
than  the  giant  oil  companies  are  u-  us  today  ? 

Pollsters  report  that  Americans  are  m.ore 
cynical  about  their  :nsiltutio:.6 — both  pub- 
lic and  private — tha:.  at  any  ether  point  In 
modem  history.  Has  the  American  epoch.  In- 
augurated by  that  brB\-e  band  of  colonial 
marauders  two  centuries  ago,  really  run  Its 
course? 

I  don't  think  so.  There  Is  no  word  that 
Is  more  over-used  In  our  time  than  "revolu- 
tion". But  it  is  uo  exaggeration  to  say  that 
In  your  values  and  attitudes,  and  those  of 
your  peers,  lie  the  seeds  of  a  new  American 
Revolution. 

This  Is  a  revolution  that  will  not  be 
touched  off  by  a  tea  party  (or  a  pot  party, 
for  that  matter) .  It  will  be  fought  on  bicycles 
and  buses,  and  in  compact  cars.  It  wUI  be 
won  not  by  force,  but  by  skill  and  commit- 
ment, and  by  countless  Individuals  saying 
"enough". 

Enough  with  the  pollution  of  otir  streams 
and  lakes  and  air. 

Enough  with  the  shoddy  development  of 
oxir  land,  and  devastation  of  our  precious 
farm  resources. 

Enough  with  gas  gtizzllng,  fume-splttlng 
cars.  "■ 

Enough  with  work  that  Is  without  satis- 
faction or  meaning. 

Enotigh  with  institutions  that  respond  to 
the  special  Interests  but  not  the  needs  of 
the  people. 

Since  the  first  Earth  Day  three  years  ago. 
we  have,  with  your  help,  taken  Important 
steps  towards  making  the  ecological  ethic 
Wisconsin's  ethic 

We  passed  the  landmark  Wisconsin  En- 
vironmental Policy  Act.  to  Insure  that  no 
state  decision  can  come  at  the  expense  of 
the  preservation  of  our  natviral  heritage. 

We  blocked  the  establishment  of  FYoJect 
Sanguine,  and  the  continued  discharge  of 
mercury  into  Wisconsin  waters. 

We  obtained  Wild  River  status  for  the  St. 
Croix,  and  fought  off  the  developers  who 
wanted  to  exploit  the  natural  beauty  of  that 
river's  shoreline. 

We  established  the  first  program  of  state 
support  for  local  mass  transit  systems  In 
Wisconsin  history. 

We  laid  the  groundwork  for  a  model  solid 
waste  recycling  program  for  the  State  of 
Wisconsin. 

But  these  battles  are  only  the  beginning. 
With  the  onset  of  the  energy  crisis,  we  have 
been  forcefully  reminded  how  far  we  as  a 
pec^le  have  departed  from  the  Independence 
for  which  ovir  forefathers  fought.  We  are 
de[>endent  not  just  on  Arab  oil.  but  on  an 
economy  which  has  been  built  on  pollution 
and  profligacy. 

For  years,  dhvlronmentallsts  have  been 
warning  us  th([t  our  resources  are  finite,  and 
that  we  must  begin  to  practice  an  ethic  of 
recycling  and  conservation. 

Now  th:it  the  shortages  are  here,  we  are 
being  asked  to  emulate  the  ancient  Qreelcs, 
who  killed  the  messengers  who  brought  them 
bad  news.  The  first  place  looked  to  for  energy 
cut-backs  by  industry  and  the  federal  gov- 
ernment Is  our  effort  to  control  pollution. 
This  must  not  be  allowed  to  happen. 

If  It  Is  necessary  this  winter  to  make  one 
or  two  strategic  retreats,  we  must  never 
abandon  the  principle:  one  step  backward, 
two  steps  forward.  The  war  against  pollution 
and  environmental  degradation  Is  not  a  war 
we  can  afford  to  lose. 

A  few  weeks  ago.  I  received  a  letter  from 
a  man  who  I  like  to  think  of  as  one  of  your 
contemporaries.  He  WTOte: 

"I  am  older  than  you  and  have  seen  the 
changes  that  have  taken  place  since  1910.  I 
have  worked  on  railroads  and  traveled  all 
over  our  land  by  car.  We  human  beings  have 


m.H.de  an  awful  me,'5s  o!  the  transportation 
system  and   have  sat   by   and   let  :t  happen. 

".  .  .  We  need  someone  who  w;;:  take  a 
good  look  at  the  .situation  ana  make  change*. 
1  was  a  boy  in  St  Paul.  Ml;.nes>:.ta.  a;.d  used 
to  fish  -.n  the  Mlisisjippl  right  next  to  where 
the  raw  sewage  ::ame  into  the  river  That 
was  bad  then  and  it  still  is  Ti-.e  people  Just 
sat  and  let  it  happen  I  guess  we  must  be 
hit  over  the  head  to  wake  us  up.  Now  w* 
are  stuck  In  the  swamp  over  the  energy 
crisis  and  wandering  arou:.d  blind.  That  did 
not  come  over-night  but  hM  been  here  for 
years.  Where  .c-e  the  brains  c!  the  country?" 

The  American  Revolution  at  2Cn3  years,  can. 
like  this  man,  be  thought  r,t  as  either  young 
or  old.  It  Is  you  who  will  determine  whether 
on  December  16.  1973  the  revolution  begins 
anew,  whether  the  best  brains  of  this  coun? 
try  are  equal  to  the  challenge,  whether  today 
marks  the  first  day  of  the  rest  of  otir  life 
as  a  free  and  good  society. 

Congratulations  and  Ood  speed. 


THE  VALUE  pF  THE  INDIVIDUAL 
IN  INDUSTRY 

Mr.  TAFT.  Mr.  President,  I  had  the 
pleasure  last  month  to  participate  to  a 
conference  discussion  to  Canton.  Ohio, 
regarding  the  value  of  the  Individual  to 
industry.  This  subject  area,  which  has 
been  generally  referred  to  as  worker 
alienation,  is  an  extremely  interesting 
one  and  one  that  deserves  the  consider- 
ation of  the  Congress.  I  am  not  certato 
If  this  Is  an  area  where  legislation  per 
se  can  be  extremely  helpful.  I  do  believe, 
however,  the  Congress  should  examtoe 
methods  by  which  solutions  might  be 
found  to  enhance  an  todivlduals  rela- 
tionship to  his  job.  Certainly  economic 
considerations  are  tocluded  as  the  cor- 
relation between  production  quality  and 
job  satisfaction  can  be  quite  high.  These 
factors  can  to  turn  lead  to  greater  indus- 
trial labor  stability  and  improvement 
and  growth  to  our  economy.  Such  con- 
siderations are  abviously  becoming  m- 
creasmgly  ylmportant  as  totematlonal 
competition  becomes  more  of  a  factor  to 
the  conttoued  strength  of  our  Nation. 
Beypnd  these  economic  considerations, 
howevef,  I  believe  it  is  important  to  con- 
sider this  subject  because  of  the  basic 
todividual  humanistic  considerations  to- 
volved — a  man  or  a  woman  not  content 
with  their  job  often  presents  tremendous 
social  problems  to  society  in  the  form  of 
drug  addiction,  alcoholism,  and  crime. 

Senator  Kennedy  has  proposed  legisla- 
tion, the  "Worker  Alienation  Research 
and  Technical  Assistance  Act  of  1973  ' 
S.  736,  which  is  before  the  Labor  and 
Public  Welfare  Committee.  Subcommit- 
tee on  Employment.  Poverty  and  Ml- 
grator>-  Labor.  As  ranktog  minority 
member  of  the  subcommittee,  I  believe 
Senator  Kennedy's  legislation  should  be 
examinined  agato  this  Congress  and  I 
will  make  such  a  request  to  the  chairman 
of  the  subcommmltiee,  Senator  Nelson, 
at  the  beglnntog  of  the  next  session  of 
this  Congress.  My  staff  and  I  are  also 
exploring  a  number  of  options  m  this 
area  and  hopefully  will  be  prepared  to 
offer  them  to  connection  with  S.  738. 
Senator  Schweikir  of  Pennsylvania,  has 
I  know,  been  very  much  tovolved  to 
study  of  this  entire  problem. 


12410 


I 


CONGRESSIONAL  KliCORD  — SENATE 


I  wish  to  thank  the  participants  in  the 
Canton  conference:  Mr.  Waj-ne  Alder- 
son,  vice  president.  Plttron  Steel  Foun- 
dry^ Mr.  Tom  Mueller,  assistant  to  the 
president,  the  Canton  Malleable  Iron  Co.; 
Mr.  Earl  Plemming.  suggestion  and 
training  coordinator.  Armco  Steel  Corp. ; 
Rev.  Christian  F.  Kenneweg.  New  Con- 
cord, Ohio,  and  Mr.  James  Ragazino. 
representative  of  the  Steelworkers  Union 
Local.  Tlmken  Roller  Bearing  Plant, 
Canton.  Ohio. 

Special  thanks  also  should  go  to  the 
Rev.  Dan  E.  Bastln,  director  of  the 
Urban-Industrial  Ministry  in  Aliquippa, 
Pa.,  for  arranging  the  conference  and 
Mr.  Don  L.  Mains,  president  of  Canton 
Malleable  Iron  Co.,  for  providing  the 
facilities  lo  liold  the  conference. 

I  ask  unanimous  consent  that  my  re- 
marks at  the  conference  be  printed  In 
the  Record. 

There  being  no  objection,  the  remarks 
were  ordered  to  be  printed  in  the  Record 
as  follows : 

RsMASKs  or  Sknatob  Robert  Tajt,""  Jb, 

Albert  Caraufi  wrote   Uiat  "wltiiout  work. 


December  19,  197S 


all  lUe  goes  rotten.  But  when  work  la  sotil- 
less.  lUe  stifles  S5a  dies."  Camus.  I  think, 
was  absolutely  correct  as  liidlvlduals  need 
to  supplement  their  existence  with  some  type 
of  work  or  work  related  activity.  Society  has 
been  slow,  however,  through  the  years  to 
learn  that  such  work  activity  cannot  be  pro- 
vided to  an  Individual  based  solely  on  eco- 
nomic considerations. 

The  theme  of  this  conference — "What  Is 
the  value  of  the  person  In  Industry"— cer- 
tainly relates  to  concerns  that  many  of  my 
colleagues  and  I  In  the  Congress  have  and  Is 
especially  relevant  In  considering  such  areas 
as:  productivity  commission  legislation 
strike  prevention  legislation,  manpower 
training  proposals,  trade  legislation,  and  of 
course.  Senator  Kennedy's  "Worker  Aliena- 
tion Research  and  Technical  AssUtance  Act 
of  1973"  which,  at  the  risk  of  sounding  a 
bit  partisan.  I  believe  might  be  more  properly 
titled  "The  Worker  Motivation  Research  and 
Technical  Assistance  Act". 

As  many  of  you  know,  the  employment 
Poverty,  and  Migratory  Labor  Subcommit- 
tee, of  the  jienate  Labor  and  Public  Welfare 
Committee,  held  two  days  of  hearings  last 
year  on  the  Kennedy  legislation.  Identical 
to  the  proposal  he  has  again  Introduced  this 
year  I  am  prlvUeged  to  serve  as  ranking 
minority  member  of  the  subcommittee  and 
for  that  reason  have  a  special  Interest  In 
potential  federal  involvement  In  this  area 
To  be  able  to  assess,  however,  what  the  role 
the  Federal  Government  might  have  In  this 
field.  I  believe  we  must  focus  on  three  ques- 
tions :  ^ 

1 .  What  do  such  terms  as  "Job  enrichment" 
and  "worker  alienation"  reallv  mean— Is  this 
a  subject  area  that  can  be  isolated  and  ex- 
amined with  any  degree  of  accuracy: 

2  Assuming  we  answer  the  first  question 
in  the  affirmative,  what  proposed  solutions 
for  this  problem  area  merit  Implementation- 
and 

3  What  role  should  private  Industry  P-ed- 
eral.  State  and  local  governments  and  orga- 
nizations such  as  the  Urban-Industrial 
Ministry  headed  by  Reverend  Bastln  play  In 
bringing  about  such  solutions. 

Answers  to  the  first  question  were  con- 
sidered very  preliminarily  bv  the  hearings 
chaired  by  Senator  Kennedy  last  year  and 
by  a  number  of  studies  .-supported  bv  the 
Federal  Government  Includlni?  the  study 
Work  In  America",  conducted  by  the  De- 
partment of  HEW  under  Elliot  Richardson— 
perhaps  the  most  comprehensive  research 
work    to   date    on    this    subject.    Organized 


labor,  private  Industry  and  various  universi- 
ties also  have  conducted  extensive  research 
In  this  area  aiid  are  to  be  commended  for 
taking  such  constructive  action.  The  ques- 
tion seems  to  remain  an  open  one.  however, 
as  to  what  extent  there  really  is  a  problem 
area  with  regard  to  Job  enrichment  and  satis- 
faction. 

Elliott  Richardson  presents  the  c«se  for 
greater  research  In  this  area  as  /oUows  in  the 
preamble  of  "work  In  America": 

"While  negotiations  over  wages  and  fringe 
benefits  seem  to  have  received  the  lions 
share  of.-attentlon  In  the  past  few  decades, 
considerable  Interest  has  been  displayed  over 
the  past  ysiwr  In  our  magazines,  newspapers 
and  other  media  In  the  quality  of  working 
life.  This  Is  not.  of  course,  an  entirely  new 
Issue.  One  need  only  recall  the  novels  of 
Dickens  and  the  horrible  lot  he  portrayed 
of  children  at  work.  Steinbeck's  migrants  and 
Caldwells  farmers,  the  sweatshops  in  our  in- 
dustrial cities,  and  more  recently,  the  efforts 
to  Improve  the  working  conditions  of  coal- 
mlners— to  realize  how  profoundly  and 
broadly  people  care  about  the  quality  of 
work. 

"Vet.  after  following  the  searching  exposi- 
tion of  this  report,  one  cannot  help  but  feel 
that  however  deeply  we  have  cared  In  the 
past,  we  never  really  understood  the  Impor- 
tance, the  meaning,  and  the  reach  of  work." 
Numerous  studies  and  startling  statistics 
can  be  cited  to  support  Richardson.  Includ- 
ing reports  of  plant  sabotage,  figures  of 
worker  absenteeism — industry  treek  recently 
reported  that  at  least  five  percent  of  1  4  mU- 
llon  of  the  nation's  37.8  blue  collar  workers 
will  not  be  on  the  Job  on  any  given  dav.  Per- 
haps an  even  more  convincing  argument  to 
the  American  consumer  Is  the  abundance  of 
poor  and  inferior  quality  products  on  the 
market. 

The  seriousness  of  this  problem,  however 
has  been  questioned.  P>rofessor  J.  L.  Wlndle 
of  Purdue  University.  Depart;nent  of  Indus- 
trial Supervision,  believes  It  Is  a  waste  of 
time  and  money  for  the  employer  to  make 
changes  In  the  structure  of  the  Job  in  order 
to  motivate  the  employee.  Essentially,  he 
feels  that  the  employee's  motivational  prob- 
lem does  not  arise  out  of  the  nature  of  the 
work:  instead,  the  moUvatlonal  problem  Is 
more  lUely  to  be  a  personal  one— the  em- 
ployee brought  It  Into  the  plant  the  day  be 
Was  hired. 

Professor  Wlndle  states:  "Mv  contention  Is 
that  If  Its  a  personal  thing,  a  matter  of  In- 
dividual motivation,  the  employer  can't  do 
much  about  It.  The  kinds  of  things  employ- 
ers can  do  include  better  selection  and  place- 
ment of  people.  If  we're  talking  about  rou- 
tine, repetitive  Jobs,  let's  select  p?ople  who 
enjoy  doing  a  routine.  We  have  studies  that 
show  such  people  exist." 

A  recent  study  by  the  University  of  Mich- 
igan supports  Professor  Wlndle's  argument 
and  numerous  union  officials  also  have  ques- 
tioned whether  Job  enrichment  really  is  a 
legitimate  problem,  or  rather  Just  a  problem 
of  society  generally.  For  Insta.ice.  the  effect  of 
pay  levels  and  fringe  benefits  on  the  quality 
of  the  wor'iers'  life  could  overshadow  the 
work  experience  (i.e.,  legal  services  trust 
fund) . 

WUliam  Wlnlslnger.  vice  oresldent  of  the 
International  Association  of  Machinists  re- 
cently stated  Job  enrichment  is  Just  "a  stop 
watch  In  sheep's  clothing"  in  referring  to 
labor's  tradlUonal  disdain  for  managements 
time  and  motion  studies.  Numerous  other 
union  ofllclals.  Including  Leonard  Woodcock 
also  have  raised  questions  about  the  validity 
of  the  problem. 

I  do  not  have  the  definitive  answer  to  this 
question,  but  I  do  not  believe  we  can  afford 
to  Ignore  the  poealblUty  of  a  problem  of 
great  magnitude  in  this  area.  Our  balance 
of  trade  payments  situation,  our  country's 
economic  health   and  potential   for  growth 


through  Increased  productivity  and  Indua- 
triai  peace  would  aeem  to  almost  mandate 
an  exploration  of  this  subject.  Beyond  these 
oollective  national  intereate,  however.  I  be- 
lieve It  is  Imperative  to  at  least  examine- 
this  area  because  of  individual  humanlsUc " 
considerations  potentially  Involved. 

The  one  SHjeclflc  propoeal   that  the  Con- 
greae  has  focused   upon  Is  the  legislation  I 
earlier    referred    to    Introduced    by    Senator 
Kennedy  His  approach  would  establish  a  fed- 
eral commitment  of  $20  mUllon  over  the  next 
two  years  for  research  Into  the  problem  of 
worker  alienation  In  all  occupations.  SpecLfl- 
cally.  the  bill  would  provide  technical  as- 
slaUnce  to  groups  of  workers,  unions,  pri- 
vate industry   and   state   and   local   govern - 
meafs    for    practical    experlmentaUon    and 
pUot   projects   to   alleviate   worker   dlasatls- 
'*<=*loi»  *h<l   fund   development   of  currlcu- 
luma  f5»-  the  training  of  professionals  in  work 
humanlzatlon  methods.  Other  provisions  of 
^•s  Pfopos&l  would  authorize  the  Secretary 
of  HEW  to  Insure  that  federal  agencies  seek 
to  maximize  Job  saUsfactlon  and  permit  the 
Secretary  of  Labor  to  seek  assurances  that 
Job  satisfacUon  Is  oonsldered  by  Federal  con- 
tractors. Both  the  Secretaries  of  Labor  and 
HEW  would   be  directed   periodically  to  re- 
port back  to  the  Congress  and  naake  recom- 
mendations as  to  whether  additional  legisla- 
tion Is  necessary. 

Discussions  have  been  held  at  the  staff 
level  for  conducting  further  hearings  on  the 
Kennedy  proposal  and  other  topics  within 
this  subject  area.  I  am  hopeful  that  the 
Senate  employment  subcommittee  could 
place  priority  on  this  matter  during  the  first 
part  of  next  year  and  proceed  with  compre- 
hensive hearings. 

Areas  and  proposed  solutions  which  I  be- 
lieve the  committee  should  consider  In- 
clude: 

Plans  to  permit  groups  of  workers  to  Join 
together  In  teams  In  performing  tasks. 

Plans  to  permit  workers  to  perform  more 
than  Just  one  part  of  a  mechanized  Job. 

Programs  to  permit  employee  participation 
In  the  design  of  new  plants. 

E-xperlmentatlon  with  supervisor-employee 
discussion  groups  Including  meetings  of  top 
management  and  the  rank  and  file. 

Participation  by  top  management  In  as- 
sembly line  work  to  see  the  Job  from  the 
workers  viewpoint. 

Humanlzatlon  of  work  faculties  and  the 
work  environment. 

VPhlte  collar  workers  and  Job  satisfaction 

Investlcratlon  Into  the  relationship  between 
alcohol  and  drug  abuse  and  worker  dUsatls- 
f  act  ion. 

Experimentation  with  flexible  hour  plans 
to  permit  workers  to  begin  at  different  hours 

Experlmentatlori  with  partial  retirement 
and  part-time  worker  p'ogram.s. 

Implementation  of  employee  quality  ef- 
fectiveness programs  permitting  employees 
greater  opportunities  to  test  and  evaluate  the 
products   that   they   are  producing. 

Experimentation  of  variations  of  profit 
sharing  plans. 

With  regard  to  what  role  private  Industry 
labor  organizations,  private  grouns  and  gov- 
ernment can  play  in  helping  Implement  solu- 
tions I  believe  the  answer  must  be  one  of 
maximum  co-operation  and  co-ordination.  A 
start  at  the  congressional  level  might  be  en- 
actment of  a  proposal  similar  to  that  ad- 
vanced by  Senator  Kennedy.  I  am  not  cer- 
Uln  One  thing  I  believe  Is  certain,  however. 
Is  that  this  subject  must  receive  continuing 
national  attention  and  Congress  must  not 
fall  to  r.t  least  consider  suggestions  from 
organizations  such  as  those  re-re<;ented  here 


GENOCIDE  MISUNDERSTOOD 

Mr   PROXMIRE.  Mr.  President,  some 
people  oppose  American  ratification  of 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42411 


the  Genocide  Convention  because  they 
believe  tlaat  the  convention's  definition 
of  the  word  "genocide"  dangerously  dis- 
torts the  true  meaning  of  the  term.  They 
maintain  that  article  11  of  the  treaty 
would  require  each  signatory  to  prose- 
cute any  person  demonstrating  the  in- 
tent to  destroy  or  harm  a  single  member 
of  a  specified  ethnic,  racial,  or  religious 
grou;-.  This  mindate  they  consider  too 
broad. 

However,  this  concern  is  unwarranted. 
First.,  article  11  of  the  treaty  rather  ex- 
plicitly states  that  only  the  intent  to 
destroy  the  "whole"  or  part  of  such 
groups  would  require  government  action. 
In  1950  Deputy  ^Under  Secretary  of  State 
Dean  Rusk  drew  the  distinction  between 
crimes  of  genocide  and  homicide  by  not- 
ing that  the  former  designated  the  in- 
tent for  large-scale  violence  against 
members  of  a  specific  group  whUe  ac- 
tions against  one  or  two  members  of  a 
racial  or  ethnic  group  wouJd  fall  in  the 
latter  categoi-y. 

Furthermore,  ratification  of  the  Geno- 
cide Convention  would  not  increase  the 
number  of  prosecutions  for  violence 
against  individuals  because  the  U.S.  legal 
system  already  considers  such  violent 
acLijns  to  be  criminal  offenses.  Violence 
r.nd  persecution  in  any  form  has  long 
been  abhorrent  to  those  upholding  the 
principles  of  freedom  and  democracy  for 
all  men.  Ratification  of  this  document 
would  merely  reaffirm  our  commitment 
to  those  principles.  After  more  than  20 
years  of  debate  such  a  reaErmation  is 
more  important  than  ever. 

Finally,  the  convention  allows  for  each 
nation  in  agreement  to  devise  imple- 
menting legislation  consistent  with  the 
constitutions  of  those  nations. 

This  provision  would  allow  the  United 
States  to  make  a  stand  of  moral  opposi- 
tion to  genocide  while  maintaining  crim- 
inal statutes  against  homicide  and  dis- 
crimination. 

Mr.  President.  I  ask  the  Senate  to  rat- 
ify the  Genocide  Convention  as  quickly 
as  pocisible,  and  make  clear  America's 
position  against  mass  violence. 


RECENT  MURDERS  COMMITTED 
BY  PALESTINIAN  TERRORISTS 

Mr.  TAFT.  Mr.  President.  I  am  certain 
that  I  express  the  unanimous  view  of  this 
Chamber  when  I  say  that  I  have  been 
shocked  and  horrified  by  the  recent  mur- 
der of  over  30  innocent  people  by  Pales- 
tinian terrorists.  The  wanton  and  brutal 
slaughter  at  Rome  and  Athens  will  live 
for  a  long  time  in  the  memories  of 
civilized  men,  denoting  a  new  level  in  the 
barbarism  that  increasingly  marks  our 
era. 

The  perpetraters  of  this  terrible  crime 
bear  a  heavy  responsibility  in  the  eyes  of 
the  world,  and  I  hope  that  they  will  bear 
equally  heavy  responsibility  before  a 
court  of  Justice.  But  they  are  not  isolated 
criminals.  Some  Arab  States  condone 
their  actions,  in  fact  If  not  in  official 
communique,  and  these  states  must  also 
be  held  responsible  for  their  criminal 
outrage. 

There  are  two  recent  international 
agreements  designed  to  deter  suits  such 
as  those  at  Rome  and  Athens.  The  first. 


the  Hague  Convention,  is  directed  at  de- 
terring hijacking;  and  a  companion 
agreement,  the  Montreal  Convention,  is 
aimed  specifically  at  airport  incidents 
such  as  the  recent  tragedies.  Both  agree- 
ments provide  for  the  prosecution  or  ex- 
tradition of  air  pirates. 

The  United  States  is  a  party  to  both 
conventions  as.  I  would  point  out.  Is  Is- 
rael. So  are  some  Arab  States,  including 
our  friend  and  ally,  Jordan;  and  Leba- 
non, noted  for  years  as  perhaps  the  most 
sensible  and  moderate  state  in  the  Mid- 
dle East,  has  signed  the  Montreal  Con- 
vention, and  Iraq  has  adhered  to  the 
Hague  agreement.  Neither  Syria  nor  Ku- 
wait have  agreed  to  either  convention. 

But  what  of  the  other  Arab  States? 
Algeria  ha.s  done  nothing,  Libya  has 
done  nothing,  Syria  has  done  nothing. 
Tlipse  states  are  almost  as  guilty  for 
their  lack  of  action,  as  were  the  murder- 
ers of  the  innocent  at  Rome  and  Athens. 
By  not  agreeing  to  prosecute  pirates  and 
terrorists,  these  states — I  single  out  Sy- 
ria in  particular,  which  allowed  the  pi- 
rates to  land  at  Damacus  and  at  Kuwait, 
presumr'bly  under  some  accommoda- 
tion— give  aid  and  encouragement  to 
such  criminals.  I  submit  that  they  are 
thus  criminal  themselves. 

Neither  this  Nation  nor  the  responsible 
nations  of  the  Middle  East  should  tol- 
erate any  longer  their  support  of  crimi- 
nals and  mass  murderers.  Let  those  who 
died  in  Rome  and  Athens  be  the  neces- 
sary impetus  to  bring  all  nations  to  put 
an  end  to  air  piracy. 

The  responsible  nations  of  the  Middle 
East — I  include  especially  Eg>-pt,  which 
is  now  piu'suing  a  reasonable  and  moder- 
ate policy  in  the  pursuit  of  peace — should 
be  the  first  to  realize  that  the  terrorists 
do  great  harm  to  the  Arab  cause.  Some 
have.  They  degrade  the  world's  Image  of 
the  Arab  to  that  of  a  cowardly  assassin 
of  women  and  children.  They  make  it  all 
but  impossible  for  non-Arabs  to  view  this 
situation  in  the  Middle  East  from  an  un- 
prejudiced standpoint. 

I  fiiTnly  believe  that,  despite  their  pro 
forma  denials,  the  Palestinian  guerrilla 
organizations  have  full  foreknowledge  of 
incidents  such  as  the  recent  ones.  And  I 
equally  believe  tliat  the  Arab  govern- 
ments have  it  in  their  power  to  control 
these  organizations,  and  to  force  them  to 
halt  the  terrorism. 

The  Arab  States,  particularly  Egypt. 
are  now  mdicating  a  desire  for  better  re- 
lations with  the  United  States.  We  share 
that  hope.  They  ask  us  to  adopt  an  im- 
partial attitude  toward  the  situation  in 
the  Middle  East,  and  to  give  Arab  claims 
a  fair  hearing.  I  favor  these  positions.  I 
think  it  is  a  matter  of  justice  and  of  good 
policy  that  we  should  work  for  good  rela- 
tions with  all  the  nations  of  this  part  of 
the  world.  And  we  should  be  unprejudiced 
in  our  exanlination  of  the  claims  of  all 
parties. 

But  as  a  precondition  to  this  attitude 
on  our  part,  I  think  we  should  demand  of 
the  Arab  governments  that  they  condemn 
and^act  to  end  the  terrorism,  particu- 
larly the  air  piracy  perpetrated  by  the 
Palestinians.  As  I  said.  I  firmly  believe 
that  these  governments  have  it  in  their 
power  to  do  this.  We  should  formally  de- 
mand that  all  Arab  States  adhere  to  the 


Hague  and  Montreal  Conventions,  and 
carry  out  the  terms  of  those  conventions 
by  prosecuting  or  extraditing  pirates,  and 
ask  for  UN  support  in  that  position.  This 
would  be  a  strong  coercive  measure,  but 
uith  more  than  30  coffins  containing  in- 
nocent victims  of  terrorism  now  await- 
ing burial,  can  we  do  less?  1  do  not  think 
so. 

As  I  mentioned,  some  of  the  Arab 
States,  particularly  Lebanon  and  Jordan, 
have  been  leaders  in  the  worldwide 
fight  against  air  terrorism.  Others,  such 
as  Egj-pt,  have  been  moving  in  the  right 
directon.  Let  Algeria,  Lybia,  Syria. 
Kuwait,  and  the  others  who  have  not 
adhered  to  the  piracy  conventions  fol- 
low the  lead  of  their  neighbors.  And  let 
all  the  nations  of  the  Middle  East  act 
effectively  against  those  within  their 
borders  who  practice,  support,  espouse, 
or  have  foreknowledge  of  these  horrible, 
murderous  activities.  Then  the  Arabs  will 
have  put  the  rest  of  the  world  on  notice 
that  they  are  responsible  people,  deserv- 
ing of  serious  and  respectful  attention. 
And  the  innocent  victims  at  Rome  and 
Athens  will  not  have  died  in  vain. 

Mr.  President.  I  ask  that  an  editorial 
from  the  New  York  Times  of  December 
18  on  this  subject   be   printed  in  the  . 
Record. 

There  being  no  objection,  the  editorial 
was  ordered  to  be  printed  in  the  Record, 
as  follows : 

The  Arab  Terkorists 

The  fanaticism  that  has  perverted  the 
Palestinian  Arab  cause  for  so  long  has 
once  again  taken  a  bloody,  mindless 
toll  In  Innocent  human  lifa^  No  civilized 
person  or  government  can  stand  aloof  from 
the  tragedies  perpetrated  in  Rome  and 
Athens  yesterday:  no  political  cause  can 
Justify  the  murderous  acts. 

Yesterday's  terrorism  follows  an  all-too- 
famlllar  pattern:  whenever  responsible  Arab 
leaders  show  some  sign  of  readiness  to  try 
for  a  political  settlement  with  Israel,  the 
Palestlr.lan  extremists  commit  one  of  their 
outrages.  Their  obvious  motive  Is  so  to 
arouse  passions  that  no  political  compromise 
can  be  carried  through.  Neither  Arabs  nor 
Israelis  must  allow  themselves  to  be  diverted 
from  the  path  of  accommodation  by  the 
action  of  these  gunmen. 

But  the  Arab  governments  cannot  escape 
all  responsibility  for  the  spirit  of  terrorism, 
however  much  they  may  deplore  Individual 
outbursts  or  claim  that  Individual  terrorists 
are  beyond  the  control  of  government  au- 
thority. It  Is  the  Arab  governments  that 
cynically  used  the  Palestinian  grievance  to 
further  their  own  political  ends  over  the 
years;  It  Is  the  Arab  leaders  who  have  short- 
sightedly nurtiired  the  Palestinian  guerrilla 
organizations  Into  a  political  and  military 
force  which  Is  now  acting  against  Arab  In- 
terests as  well  as  against  Israel. 

Even  at  this  moment  the  Government  of 
Syria  Is  carrying  through  an  official  policy  of 
treatl^^  human  beings  as  pawns,  In  Its  re- 
fusal to  exchange  prisoners  of  war  with 
Israel.  This  Inhumane  cynicism  is  J'ost  as 
reprehensible — and  breeds  just  as  much  sus- 
picion and  hostility — as  the  overt  violence  of 
the  terrorists. 

The  terrorists  now  stalking  the  alrlanes 
represent  no  one  but  themaelves.  But  tte 
Arab  world  as  a  whole  and  a  number  of  other 
countries  are  now  on  test:  Will  Japan  and 
the  European  governments,  whoee  obvious 
need  for  oil  has  led  them  to  "tut"  toward 
the  Arabs,  muffle  their  outrage  for  fear  of 
risking  further  economic  sanctions?  Will  the 
oll-rlch  Arab  states  dare  to  Invoke  their  oU 
weapon   against   countries   which    condenan 


12412 


/ 


CONGRESSIONAL  RECORD  — SENATE 


December  19,  197S 


terrorlam?  Uost  Important,  will  8711*  and 
tbe  other  Arab  states  oa  Israal's  frontlera 
recognize  their  obltgatlona  now  to  malca  spe- 
cific geetures  of  p«aoef\U  Intent  toward 
Israel,  in  light  of  the  barbiulc  act*  of 
yesterday? 

Arab  leaders  protest  their  readlnees  for  eo> 
•ilstence  and  aetUemect  These  noble  senti- 
ments require  confirmation  In  deeds  aa  weU 
as  words. 


SOUTHEAST  ASIA 


Mr,  PELL.  Mr  President,  in  a  year 
that  has  seen  lltUe  gcxxl  news,  and  a 
surfeit  of  tragedy,  scandal,  economic 
problems,  and  shortages,  there  is  at  least 
one  development  for  which  all  Ameri- 
cans are  grateful;  American  men  are  no 
longer  engaged  In  combat  or  bombing  In 
Southeast  Asia. 

Theterminatlon  of  direct  US.  military 
Involvement  In  Vietnam  has  brought  to  a 
close  a  turbulent  and  agonizing  era  in 
our  national  life.  Never  before  In  our 
history  had  the  American  people  been 
so  deeply,  and  Indeed  bitterly,  divided 
over  our  participation  in  a  war. 

For  the  United  States  that  war  Is  now 
over,  but  much  remains  to  be  done  to 
repair  the  damage  it  caused  to  our  coun- 
try, and  to  individual  Americans. 

For  that  reason,  the  distinguished 
Junior  Senator  from  Ohio  (Mr.  Taft) 
and  I  are  tcday  introducing  legislation 
that  would  end  the  war  for  thousands  of 
Americans  who  are  in  hiding  in  this 
country,  or  are  living  outside  of  their 
homeland  because  their  consciences 
would  not  permit  them  to  serve  in  the 
military  forces  in  Vietnam. 

Many  Americans  faced  difficult  per- 
sontil  choices  as  a  result  of  the  war  In 
Vietnam.  No  choice  was  more  difficult 
than  the  choice  that  confronted  thou- 
sands of  yoimg  Americans  who  were 
called  to  serve  in  the  Armed  Forces  In  a 
war  whose  wisdom,  morality,  and  legality 
was  being  questioned  and  chaUenged, 
For  those  young  men  who  believed  the 
war  was  right,  there  was  no  Internal  con- 
flict between  conscience  and  duty  to 
country.  They  served^ bravely,  and  they 
have  the  respect  and  admiration  they  so 
richly  deser\-e. 

Other  young  men  served,  but  with 
troubled  consciences,  or  nagging  doubts. 
And  other  young  men  believed  so 
'  stronglir  that  the  war  In  Vietnam  was 
morally  wrong  that  they  decided  service 
to  their  country  in  a  wrong  cause  would 
be  a  dl.««ervice  both  to  their  country  and 
to  themselves.  Some  of  these  young  men 
went  to  jail.  Others  left  their  homes, 
their  parents,  their  jobe.  and  their  coun- 
try. There  are  those  who  charge  that 
those  who  refused  to  serve  were  moti- 
vated by  cowardice  There  may  be  some 
such  cases,  but  I  believe,  in  the  agonizing 
national  atmosphere  generated  by  the 
war.  that  their  actions  were  not  the  re- 
sxilt  of  a  lack  of  courage,  but  of  the  dic- 
tates of  conscience. 

Mr.  President,  the  legislation  Senator 
Tatt  and  I  have  introduced  today  would 
not  grant  a  blanket  pardon  to  all  those 
yoimg  Americans  accused  of  refusing 
military  service  during  the  war,  The  bill 
would,  however,  provide  a  way  for  them 
to  come  out  of  hiding,  and  to  return  to 


their  country,  if  they  agree  to  serve  their 
coimtry  In  a  manner  in  keeping  with 
their  conscientious  convlctloiis. 

Under  this  bill,  persons  accused  of  vio- 
lation of  the  Selective  Service  Act  woxild 
be  granted  Immunity  from  prosecution  If 
they  agreed  to  serve  2  years  in  the  armed 
services  of  the  United  States  or  in  alter- 
nate, conlparable  public  service 

The  act  would  not  apply  to  deserters 
from  military  service.  They  are,  I  be- 
lieve. In  a  different  category,  having 
willingly  accepted  an  obligation  to  serve 
In  the  armed  services  and  sworn  an  oath 
to  do  so. 

Mr.  President,  our  coimtry  has  noth- 
ing to  gain  in  continuing  the  anguish  of 
young  Americans  alienated  from  their 
country  by  the  tragic  war  in  Vietnam 
We  gain  nothing  by  forcing  them,  with 
the  threat  of  Jail,  to  remain  in  hiding 
or  overseas,  separated  from  their  fami- 
lies and  friends.  On  the  other  hand,  our 
country  has  nothing  to  lose  in  permitting 
these  young  Americans  to  return  to  our 
national  life,  with  a  requirement  that 
they  dedicate  2  years  of  their  lives  to 
serving  their  country. 

The  American  people  are  a  generous 
and  forgiving  people.  We  do  not  bear 
grudges,  and  we  do  n^t  seek  retribution 
or  vengeance.  We  do,  however,  seek  equal 
justice  under  the  law. 

Only  a  few  months  ago,  a  Vice  Presi- 
dent of  the  United  States  admitted  that 
he  had  cheated  on  his  income  taxes,  at 
a  time  when  those  tax  dollars  were  need- 
ed to  support  the  war  In  Vietnam.  There 
was  no  contention  that  that  act  of  tax 
evasion  was  an  act  of  con.science,  but  the 
former  Vice  President  remains  today  a 
free  man. 

Are  we  to  apply  a  different  standard 
to  young  men  who.  from  conscience,  re- 
fused to  commit  their  bodies  and  minds 
to  a  war,  while  permitting  a  form  of 
amnesty  to  men  who  evaded  a  commit- 
ment of  their  tax  dollars'  I  would  hope 
not. 

Mr.  President,  this  is  a  humane  bill. 
It  does  not  seek  to  open  the  wounds 
Inflicted  on  our  Nation  by  the  long  and 
divisive  war  In  Vietnam.  It  seeks  rather 
to  heal  those  wounds,  with  tempered 
justice. 

I  hope  therefore  that  the  bill  will  be 
given  early  and  earnest  consideration. 
In  some  way,  at  some  time,  we  must  re- 
solve the  question  of  ou»- policy  toward 
these  young  Americans,  alienated  from 
their  country.  The  Interests  qj  the  coun- 
try, and  of  these  young  men  are  best 
served  by  acting  now 


RHODESIAN  CHROME 

Mr.  BUCKLEY.  Mr.  President,  2  years 
ago,  it  was  my  privilege  to  cast  the  de- 
ciding vote  In  favor  of  the  Byrd  amend- 
ment that  enacted  into  law  the  simple, 
commonsense  proposition  that  the  Pres- 
ident may  not  prohibit  or  regulate  the 
importation  of  any  strategic  or  critical 
material  from  a  non-Communist  nation 
so  long  as  the  importation  of  such  ma- 
terials from  Communist  nations  is  not 
prohibited.  When  that  amendment  was 
enacted  into  law,  the  United  States  was 
freed  of  its  5 -year  dependency  on  the 


Soviet  Union  for  Its  supplies  of  metal- 
lurgical-grade chrome  ore.  as  only  Rho- 
desia and  the  Soviet  Union  are  signif- 
icant exporters  of  this  critical  metal 

Those  who  supported  the  Byrd  amend- 
ment in  1971  did  so  on  two  principal 
grounds:  First  of  all,  the  embargo  on 
Rhodeslan  chrome  provided  the  Rus- 
sians with  a  monopoly  that  they  would 
not  be  timid  about  exploiting  for  com- 
mercial profit.  In  fact  during  the  5-year 
period  of  the  embargo — 1966-71^So- 
vlet  ore  selling  on  the  international 
market  rose  from  $25  per  ton  to  $72  per 
ton.  Secondly,  the  proponents  of  the 
amendment  argued  that  we  could  not 
prudently  be  dependent  on  a  potential 
adversary  for  so  critically  Important  a 
strategic  material. 

What  astonishes  me  is  that  a  majority 
of  this  body  has  repudiated  the  emi- 
nently sensible  and  responsible  action 
taken  just  2  years  ago. 

I  say  astonishing  because  in  the  last 
2  months  we  have  been  forced  to  face 
the  consequences  of  a  monopolistic  con- 
trol of  essential  resources  In  the  hands  of 
foreign  governments,  and  the  dangers 
of  reliance  on  foreign  neyources  that 
can  be  withheld  for  political  reasons. 
Since  the  Arab  oil  embargo  was  an- 
nounced 2  months  ago,  the  price  of  In- 
temationsd  shipments  of  crude  oil  have 
more  than  trebled,  and  we  are  being 
forced  to  make  dramatic  adjustments 
in  every  aspect  of  our  life  to  accommo- 
date a  15-percent  cutback  In  our  total 
supplies  of  oil  and  petroleum  products. 
Two  years  ago  It  was  possible  to  argue 
that  we  had  adequate  stockpiled  chrome 
ore  to  tide  us  over  anj'  temporary  em- 
bargoes by  the  Soviet  Union.  Today,  with 
the  benefit  of  hindsight,  we  have  a  far 
clearer  understanding  of  the  need  for 
continuing  Importations  of  chrome  In 
order  to  expand  our  production  of  basic 
and  specialty  steels.  The  fact  is  that  we 
now  have  on  hand  in  our  stockpile  less 
than  a  1-year  supply  of  chrome  ore. 

Two  years  ago,  critics  of  the  Byrd 
amendment  warned  us  that  America 
would  lose  caste  In  the  chanceries  of 
the  world  If  we  broke  rank  with  a  U.N. 
resolution.  Again  with  the  benefit  of 
hindsight,  it  is  clear  that  the  adoption 
of  the  Byrd  amendment  has  had  no  ad- 
verse impact  on  U.S.  foreign  relations 
save  for  the  beneficial  one  of  persuading 
the  Soviets  that  the  United  States  would 
not  allow  Itself  to  be  made  vulnerable 
to  Soviet  economic  warfare  by  a  U.N. 
resolution. 

Mr  President.  I  Just  hope  that  our 
colleagues  in  the  House  of  Representa- 
tives will  have  the  time  over  the  Christ- 
mas recess  to  reflect  on  current  world 
realities,  to  reflect  on  the  role  of  the 
Soviet  Union  In  encouraging  the  Arab 
oU  embargo,  and  then  come  to  the  con- 
clusion that  the  only  responsible  action 
the  House  can  take  is  to  allow  the  bill 
the  Senate  has  Just  adopted  to  gather 
dust  In  a  congressional  pigeonhole. 

WHO  OWNS  TU'O- THIRDS  OF 
EARTH? 

Mr.  METCALF  Mr  President,  In  the 
Issue  of  Monday,  December  17.  the  Wall 
Street  Journal's  lead  editorial  reviewed 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42413 


progress,  or  lack  of  it,  toward  interna- 
tional agreement  on  the  question:  Who 
owns  two-thirds  of  earth? 

I  ask  unanimous  consent  to  have 
printed  in  the  Record  the  editorial  from 
the  Wall  Street  Journal. 

There  being  no  objection,  it  was  or- 
dered to  be  printed  as  follows: 
(From  the  Wall  Street  Journal.  Dec.  17,  1973] 
Law  or  thi  Ska:  Enouqr's  E:NOTrcH 

The  UN.s  Law  of  the  Sea  Conference  ended 
Friday  with  delegates  from  148  nations  only 
really  able  to  agree  on  one  thing.  They'U 
all  (jet  together  for  10  weeks  In  Caracas  next 
summer.  After  all.  If  they  couldnt  do  that 
much  the  Individual  delegates  would  all  be 
out  of  Jobs.  And  since  that  seems  to  be  the 
only  common  ground,  there's  always  Vienna 
In  1976. 

It's  Just  as  well.  The  U.S.  presented  Its 
clTRft  treaty  three  years  ago,  and  we  would 
have  been  alarmed  IX  at  any  pwlnt  the  de- 
veloping nations  had  rushed  to  sign  It.  U.S. 
policy  on  Law  of  the  Sea  doesn't  really  serve 
VS.  Interests,  and  It  has  always  been  a  oom- 
rort  to  8usp>e«t  that  these  negotiations  have 
been  doomed  to  failure  from  the  start. 

The  conference  grew  out  of  a  couple  of 
concerns.  One.  that  If  more  and  more  coastal 
nations  extended  their  terrltorlaJ  limits  200 
miles  Into  the  sea  the  freedom  of  the  seas 
would  be  threatened.  Second,  that  unless 
there  Is  some  Icind  of  global  accord  to  decU 
with  the  exploitation  of  the  ocean  resources, 
nations  would  be  going  to  war  over  who  gets 
what.  There  may  be  more  than  100  billion 
barrels  of  oil  below  the  outer  continental 
margins  of  the  world's  coaataJ  areas  and  there 
is  almost  an  unlimited  sufjply  of  manganese 
nodules,  rich  in  nickel  and  copper  as  well, 
heaped  on  the  deep  ocean  bed. 

The  draft  treaty  President  Nixon  put  for- 
ward In  1970  In  no  way  attempted  to  maxi- 
mize VS.  Interests.  Rather,  it  evolved  out  of 
struggles  within  the  government,  with  the 
loudest,  best- positioned  voices  at  the  De- 
fense and  State  Departments  winning  out. 
Defense  Is  really  only  concerned  with  secur- 
ing the  right  of  the  Navy  to  go  anywhere  it 
now  can  go.  State's  chief  lntere.st,  as  usual. 
Is  In  securing  that  Uluslve  perfect  treaty, 
a  document  that  will  bring  hi^jplness  and 
peace  to  mankind.  No  one  worried  about 
U.S.  access  to  resources. 

A3  a  result,  the  U.8.  position  emphaslBee 
freedom  of  passage  and  a  global  sharing  of 
ocean  resources.  From  a  depth  of  2CX)  meters 
out  to  the  end  of  the  continental  margin,  the 
coastal  slat*  would  have  supervisory  control 
over  the  ocean  s  resources  but  would  share 
the  revenues  derived  with  the  rest  of  the 
world.  The  deep  ocean  bed  and  all  thc«e 
nodules  would  be  controlled  bv  an  Interna- 
tional regime  that  wouJd  decide  who  Is 
allowed  to  mine  and  where  they  can  mine, 
dividing  the  wealth  through  an  International 
revenue-sharing  mechanU-im 

The  State  Department  may  have  believed 
this  would  look  like  a  bonanza  to  the  de- 
veloping natlon.s,  who  through  sheer  numbers 
have  dominated  the  Iaw  of  the  Sea  parleys. 
But  these  countries  naturally  looked  at  the 
VS.  draft  treaty  as  an  otienlng  pamblt  of 
the  world's  chief  "economic  imperialist  '  .Vs 
might  be  expected,  their  oounte.-prf>p<js&l.'! 
would  make  It  economically  Impossible  tr  ex- 
ploit the  ocean  resources,  which  Is  what  .-nany 
of  them  have  In  mmd 

It  Is  an  e.mpty  exercise  The  VB  Senate 
would  never  ratify  the  U.3.  draft  treaty,  let 
alone  the  bizarre  schemes  kicking  around 
the  Law  of  the  Sea  Conference.  So  far  as  we 
can  tell,  the  governmenu  of  Western  Europe, 
Japan  and  the  Soviet  Union  have  been  going 
along  with  those  negotiations  simply  to 
humor  the  United  States  and  the  T^aaslonately 
serious  developing  nations 
The  only  nation  that  is  paying  any  serious 


penalty  for  dragging  out  the  conference  Is  the 
United  States.  Its  companiep  have  the  capital 
and  technology  to  exploit  the  resources  but 
hesitate  to  do  so  when  in  a  few  year;:  s-ime 
unknown  mtemational  authority  cxmid 
theoretlcaUy  wipe  them  out  with  taxes  and 
regulations.  The  Interior  Department  wont 
issue  oil  and  gas  leases  beyond  200  meters,  for 
example.  wlthoiU  making  them  conditional 
on  terms  of  some  future  agreeiinent.  Nor  wUl 
most  U.S.  companies  go  after  those  ncxiules 
with  the  political  risk,  thfieh  Howard 
Hughes  la  doing  so  on  the  sound  assumption 
that  the  Law  of  the  Sea  Conference  will  either 
break  down  or  go  on  forever,  from  spa  to 
shining  spa. 

Enough  is  enough.  For  the  sake  of  form, 
the  United  States  may  as  well  send  Its  nego- 
tiators to  Venezuela  and  Vienna  though 
there  la  much  to  recommend  a  clean  break. 
But  the  Important  thUie  is  that  the  U.S. 
government  should  free  the  petroleum  and 
mining  Industries  of  any  caveat.s  linked  to 
some  future  treaty,  and  let  them  go  to  work 
adding  to  the  world's  store  of  available 
resources. 

Will  this  mean  the  U.S.  Navy  will  be  boxed 
In?  No.  Any  coastal  state  that  desires  to 
maintain  commerce  with  the  rest  of  the  world 
will  have  to  maintain  reasonable  rules  of 
passage.  Will  it  mean  countries  will  go  to  war 
over  who  gets  those  nodules,  oU  or  ftsh?  No 
mwe  than  they  do  now,  or  lees  than  they 
woiUd  If  some  world  authority  came  Into 
being.  When  was  the  last,  time  the  United 
Nations  settled  such  a  scrap? 

Mr.  METCALF.  Mr.  President.  I  have 
read  Into  the  Congressional  Record  an 
editorial  from  the  Wall  Street  Journal. 

Headlined:  "Law  of  the  Sea:  Enough's 
Enough."  the  editorial  said  that,  while 
the  United  States  may  as  well  send  our 
negotiators  to  the  forthcoming  Law  of 
the  Sea  Conference  our  Government 
shoiUd  also  "free  the  petroleum  and 
mining  industries  of  any  caveats  linked 
to  some  future  treaty  and>  let  them  go 
to  work  adding  to  the  world's  store  of 
available  resources." 

The  edltorta!  prompted  a  response 
from  Amba,s,sador  John  R  Stevenson, 
special  representative  of  the  President 
for  the  Law  of  the  Sea  Conference. 

I  ask  unanimous  consent  that  Ambas- 
.sador  Stevertson's  reply  appear  in  the 
Record  foUowlng  my  remarks — which 
include  my  statement  that  I  am  with 
him  when  he  say.<;: 

VS.  policy  le  predicated  on  completion 
of  the  conference's  work  on  schedule — pre- 
ferably  next   summer  but  In  any  event  by 

1975  at  t,>ie  latest. 

There  being  no  objection,  the  letter  to 
the  editor  was  ordered  to  be  printed  In 
the  Record,  as  follows: 

Lmxas  Ambassador  on  Sea-Law  Talks 
Editor,  The  Wall  Street  Journal : 
Your  editorial  "Law  of  the  Sea:  Enough's 
Enough"  (Dec.  17)  on  the  first  session  of  the 
Law  of  the  Sea  Conference  reveals  a  funda- 
mental misconception  of  present  VS  policy, 
and  misjudges  the  prospects  for  an  interna- 
tional agreement  serving  VS.  Interests.  It 
also.  In  my  opinion,  is  premised  on  a  serious 
miscalculation  of  what  the  oceans  would  be 
like  If  an  agreement  is  not  reached. 

Vou  assert  that  no  one  m  the  US.  govern- 
ment has  worried  about  US  access  to  ocean 
resources.  Tet  the  fact  Ls  that  such  access  Is 
a  fundamental  objective  of  VS.  policy. 

That  policy,  as  articulated  In  draft  treaty 
articles  tabled  last  summer  would  give  coastal 
states  such  as  the  United  States  full  resource 
JurlsdlctloD  over  the  petroleum  and  natural 


gas  of  the  continental  margin.  With  respect 
to  the  precise  outer  limit  of  coastal  state 
Jurisdiction,  there  was  broad  support  among 
the  countries  participating  in  the  prepara- 
tory work  for  300  miles,  or  200  miles  on  the 
ou'er  edge  of  the  continental  margin,  which- 
ever Ls  further  seaward. 

During  the  Interim  period  untU  agreement 
has  been  reached.  It  will  not  be  the  poUcy  of 
the  Department  of  Interior  to  condition  leas- 
ing on  the  outer  continental  shelf  on  the 
•^erms  of  a  future  agreement  In  November 
the  Federal  Register  published  the  depart- 
ment's opinion  that  no  changes  in  current 
lease  forms  would  be  required  to  insure  com- 
phance  by  the  United  SUtes  with  any  treaty 
resulting  from  the  present  negotiations 

U.S.  proposals  also  provide  for  coastal  state 
control  and  preferential  fishing  rights  for 
species  of  fish  inhabiting  coastal  waters  or 
spawning  In  coastal  rivers.  (Foreign  fisher- 
men would  be  given  access  on  reasonable 
terms  to  the  extent  the  coastal  8t*te  does  not 
have  the  capacity  to  catch  up  to  what  am- 
servation  limits  permit.)  Fishing  for  highly 
migratory  ocean  species  such  as  tuna  would 
be  governed  by  agreed  International  agree- 
ment. 

With  regard  to  nickel  and  copper  from 
deep-ocean  manganese  nodules,  VS.  pro- 
posals provide  for  licensing  that  will  be  non- 
dlscretlonary,  or  a  flrst-come,  first  served,  ex- 
clusive-right basis;  among  qualified  ocean 
miners  certified  as  technically  and  financially 
competent  by  a  sponsoring  country,  and  with 
appropriate  measures  to  prevent  staking  out 
vast  areas  without  workuig  them.  This  is  a 
far  cry  from  an  international  organization 
that  would  have  discretionary  authority  to 
decide  who  is  allowed  to  mine  and  where  they 
can  mine.  Moreover,  UJ3.  representatives  have 
consistently  and  stronglv  opposed  giving  an 
international  authority  the  effective  power 
to  restrict  access  through  imposing  price  or 
production  controls. 

These  are  hardly  the  policies  or  proposals 
of  a  government  unconcerned  with  protect- 
ing Its  resource  mterests  in  the  oceans.  How- 
ever, it  Is  UJ3.  policy  to  achieve  Its  resource 
objectives,  not  by  unilateral  action  but 
rather  by  a  generally  accepted  International 
agreement.  Such  an  agreement  would  pro- 
test other  Important  United  States  Interests 
that  might  be  sacrificed  by  a  umiateral  ap- 
proach. Thus,  for  example,  l:  would  also 
provide  for  free  transit  through  ir.tema- 
tlonal  straits  and.  in  the  area  of  coastal 
state  resource  Jurisdiction,  lor  freedom  of 
navigation,  protection  of  the  ocean  environ- 
ment and  the  right  to  conduct  scientific 
research. 

Nor  Is  the  avoidance  of  conflict  through 
building  more  effective  international  law  and 
Institutions  merely  an  international  law- 
yer's Idealism.  Nations  have  gone  to  war 
over  transit  through  International  straits. 
Fisheries  disputes  have  poisoned  normaUy 
friendly  relations  with  our  neighbors  to  the 
South,  and  the  recent  "cod  war"  between 
Iceland  and  the  United  Kingdom  has  been 
a  matter  of  serlotis  concern  not  only  to 
thoee  countries  but  also  to  their  friends  aiKi 
allies 

In  attempting  to  achieve  all  of  theae  ob- 
jectives, the  U.S.  has  sought  a  tre.^ty  giving 
coastal  states  broad  res<  urce  management 
Jurisdiction  In  a  brriad  a.'^a  beyond  the  ter- 
ritorial sea.  but  which  would  alsc'  proviae 
express  protection  for  other  use?  of  the  area 
and  the  marine  environment  Disputes  would 
be  settled  throuch  agreed  ccmp-jlsorv  prcx*- 
dures  Revenue  sharing  with  the  ir.tema- 
tional  commtinlty  ir,  respect  of  non-renew- 
able resources  has  also  been  •uppor-ed  by 
the  United  States,  not  alone  for  reasons  cf 
equitable  sharing  w.th  geographically  dis- 
advantaged areas,  hut  aisc  a?  a  practical 
means  of  achieving  general  agreement 

In  the  deep  seabed,  similarly  the  V S  has 
profxjsed    treaty    articles    providing    :or    re- 


1_'IU 


CONGRESSIONAL  RLL.UKD  — SENATE 


December  19,  197S 


source  development  while  protecting  other 
uaes  and  the  inarlDe  envtroiiment.  with  dla- 
putea  settled  by  compulaory  process  While 
on  the  one  hand  providing  for  sharing  of 
benefits  with  the  international  community, 
these  articles  would  also  give  deep-sea  min- 
ers the  security  of  tenure  and  protection 
ftom  Interference  that  they  could  not 
achieve  In  reliance  on  the  freedom  of  the 
seas  right  to  exploit.  • 

Finally,  a  word  as  to  your  skepticism  re- 
garding the  proapects  of  securing  a  treaty 
that  "will  bring  happiness  and  peace  to 
mankind"  or  settle  a  "scrap"  over  naviga- 
tional rights  or  resources.  No  one  who  has 
been  personally  involved  In  negotiating  with 
some  160  sovereign  nations  to  achieve  a 
comprehensive  multilateral  treaty  affecting 
hard  poUtlcal.  economic,  military  and  other 
national  '  Interests  could  minimise  the  In- 
herent dUBculties.  However,  by  the  same 
token  we  should  not  minimize  the  threat 
that  failure  to  reach  agreement  poses  not 
only  for  our  aonresource  interests  but  for 
certain  reeoArce  interests,  such  as  the  ocean 
transportation  of  petroleum  and  hard 
minerals. 

The  choice  Is  not  between  US.  freedom  to 
exploit  on  the  one  hand  and  a  give-away  on 
the  other,  but  between  an  agreed  Interna- 
tional solution  protecting  our  interests  and 
the  partition  of  a  large  part  of  the  oceans 
by  coastal  states  with  no  agreed  rules  for  the 
area  beyond.  There  Is  at  the  very  least  a 
common  general  Interest  In  minimum  rules 
of  order  which  can,  as  the  International 
Civil  Aviation  Organization  has  done  In  the 
skies,  provide  ground  niles  under  which  com- 
petition can  t>e  carried  on  without  dlsaatrous 
coofilct  from  which  no  one  will  emerge  the 
winner. 

To  be  sure,  a  succeasfui  negotiation  must 
be  a  two-way  street  As  you  quite  properly 
point  out,  the  developing  countrlee  are  by 
their  sheer  weight  of  numbers  in  a  (x>altlon 
to  dominate  the  conference  But  the  object 
of  the  negotiation  is  not  the  adoption  by 
the  conference  of  a  treaty  text  by  the  de- 
veloping countrlee  over  the  opposition  of 
the  cOarltlme  and  developed  countries,  but 
rather  a  generally  accepUble  treaty  that  can 
be  ratified  by  most  states,  including  the  prin- 
cipal maritime  and  developed  countrlee. 

pyjrtunately,  the  responsible  developing 
country  leaders  of  the  conference — including 
the  highly  qualified  repreeentaUves  of  Sri 
Lanka,  the  Cameroons  and  Venezuela,  elected 
by  the  Just-ended  organizational  session  as 
chairman  of  the  conference  and  chairman  of 
two  main  committees — are  well  aware  of  this 
fundamental  UniltaUon  on  majority  rule.  If 
they  will  work  for  reasonable  accommodation 
of  developed  and  maritime  country  Interests 
and  avoid  a  aelf-defeating  tyranny  of  the 
majority,  our  hard  Interests  no  less  than  "a 
decent  respect  for  the  opinions  of  mankind" 
require  that  we,  for  our  part,  make  a  maxi- 
mum effort  to  achieve  a  generally  acceptable 
negotiated  solution 

As  to  the  risk  of  protracted  delay  in  the 
negotiations.  V3  reprssentatlves  have  made 
It  abundantly  clear  that  VA.  policy  Is  predi- 
cated on  completion  of  the  conference's  work 
on  schedule — preferably  next  summer  but  in 
any  event  by  1975  at  the  latest. 

Ambassadob  Joifif  R.  Sttvcnson. 
Special  Representative  of  the  President 
for  the  Law  of  the  Sea  Conference. 


TRANSIT  PLANTING 

Mr.  BAKER.  Mr.  President,  it  U  my 
pnvikge  to  serve  as  a  member  of  the 
board  of  directors  of  the  American  Hor- 
ticultural Society,  the  national  organi- 
zation founded  in  1922  to  promote  and 
expand  interest  In  the  horticultural  sci- 
ences. 

The  society,  through  the  expertise  of 


its  national  membership  of  25,000  horti- 
culturists, gardeners,  gardening  groups 
aad  plant  societies,  and  its  unique  com- 
puterized plant  records  center,  is  making 
a  dedicated  and  outstanding  effort  to 
improve  the  urban  environment. 

Recently,  under  the  guidance  of  Presi- 
dent David  Leach,  the  society  completed 
and  published  a  64-page  manual  Illus- 
trating how  urban  transportation  facili- 
ties can  be  improved — functionally  and 
esthetically— using  plant  materials.  The 
manual.  "Transit  Planting,"  was  pre- 
pared under  a  gi-ant  froir  the  Urban  Mass 
Transportation  Administration  and  rep- 
resents over  a  year  of  preparation  by 
horticultural  experts  in  every  area  of 
the  country  who  selected  plants  that  are 
most  tolerant  of  the  difficult  growing 
conditions  found  in  American  cities. 

Although  the  publication  is  aimed 
primarily  at  transit  ofQcials,  urban  de- 
signers, and  transportation  planners.  It 
will  also  serve  as  a  highly  useful  tool  for 
interested  gardeners  nationwide  who  will 
be  able  to  use  the  listings  of  plant  ma- 
terials to  select  those  that  will  grow 
best  in  their  immediate  area. 

Transit  Planting  suggests  that  "green- 
ing up"  transit  facilities  would  improve 
the  quality  of  life  for  all  city  dwellers. 
Since  not  all  plants  can  survive  the 
tough  conditions  found  In  most  cities, 
however,  the  American  Hbrticultural  So- 
ciety experts  have  carefully  selected  only 
trees,  shrubs  and  ground  covers  with 
proven  durability  in  urban  settings  and 
low-cost  maintenance  qualities.  The 
booklet  lists  200  plant  choices  and  pro- 
vides Information  on  the  size,  coloring, 
growth  and  maintenance  characteristics 
of  each.  In  addition,  the  publication  ad- 
vises which  of  this  broad  selection  is  best 
suited  to  each  of  10  hardiness  or  tem- 
perattu^  zones  In  the  United  States  and 
Canada.  The  manual  also  features  three 
prototype  planting  diagrams  and  plans 
for  a  bus-stop  site,  a  suburban  terminal 
and  a  downtown  station. 

Transit  Planting,  which  is  available 
from  the  American  Horticultural  Society 
at  Mount  Vernon.  Va  ,  will  also  be  help- 
ful to  urban  citizen  groups  aiming  to 
promote  the  horticultural  development 
of  their  public  areas.  Working  with 
transit  planners,  these  groups  can  use 
the  manual  to  set  up  trial  plantings  to 
determine  the  viability  of  the  plant  ma- 
terials under  assorted  urbsui  conditions. 
I  highly  recommend  this  useful  and  in- 
formative txxjklet  to  urban  .specialists, 
transportation  planners,  citizens  groups 
and  gardeners  throughout  the  countr>'. 
and  I  am  convinced  that  this  "one  of  a 
kind"  publication  will  have  a  lasting  im- 
pact on  the  urban  environment  to  the 
benefit  of  millions  of  city-dwellers  in  the 
United  States. 


OWING  YOUR  SOUL  TO  THE 
COMPANY  STORE 

Mr.  METCALF.  Mr.  President,  so  much 
attention  has  understandably  been 
focused  recently  on  how  corporations  In- 
fluence national  pohtics.  but  very  httle 
attention  has  ever  been  paid  to  how  cor- 
porations affect  those  local  communities 
in  which  they  reside.  To  many  a  corpo- 
ration is  just  an  abstraction  without  real 


Impact  on  their  lives,  other  than  perhaps 
the  products  that  they  buy  in  the  market- 
place. But  giant  corporations  can  shape 
and  dominate  the  habits  of  locales,  as 
Ralph  Nader  and  Mark  Green  have 
pointed  out  in  an  enlightening  article 
in  the  November  29  issue  of  the  New 
York  Review  of  Books,  I  ask  imanimous 
consent  to  have  the  article  printed  in  the 
RicoRD.  and  hope  that  economists,  law- 
yers, and  poUtlcal  scientists  follow  up 
their  analysis  with  close  and  scholarly 
examinations  of  the  ways  that  we  are 
"in  the  corporate  pocket." 

There  being  no  objection,  the  article 
wa«  ordered  to  be  printed  in  the  Record, 
as  follows: 

Owing   Your   Soul  to  th»  COMFairr  Stou 
(By  Ralph  Nader  and  Mark  Qreen) 

Economists,  preoccupied  with  theories  of 
the  corporation  and  the  national  economy, 
rarely  a&k  what  happens  when  a  corporation 
monopolizes  not  only  a  product  but  the  local 
work  force,  when  a  town  Is  obliged  to  "con- 
sume" a  company's  pollution,  when  one  busi- 
ness controls  a  city  by  political  Intimidation, 
While  such  queetlons  are  largely  ignored, 
local  families  and  local  owners  Increasingly 
become  appendages  of  the  absentee-owners, 
usually  of  national  and  multinational  con- 
glomerates. "He  who  was  a  leader  in  the  vil- 
lage becomes  dependent  on  outsiders  for  his 
action  and  policy."  Justice  WUllam  O  Doug- 
las said  of  this  condition.  "Clerks  responsible 
to  a  superior  In  a  dlsUnt  place  take  the 
place  of  resident  proprietors  beholden  to  no 
one"  ' 

Large  local  corporations  utterly  dominate 
many  towns  simply  by  using  their  economic 
and  political  power,  as  Anaconda  and  Mon- 
tana Power  control  the  state  of  Montana,  u 
seven  paper  companies  own  more  than  a 
third  of  Maine,  and  as  hundreds  of  smaller 
corporations  continue  to  control  the  com- 
pany towns  created  by  the  expansion  of  new 
industries  at  the  turn  of  the  century.  In 
mining,  lumber,  and  textue  regions,  we  atlll 
find  many  unhealthy,  haz«atlo<ia.  grim  and 
gnmy  company  towns  where  citizens  depend 
on  one  firm  for  their  work,  their  homes,  and 
often  their  dally  shopping.  "Saint  Peter  don't 
you  call  me  cause  I  can't  go,  I  owe  my  soiU 
to  the  company  store." 

POLXnCAL   DOMINATION 

Pullman.  Illinois,  was  built  In  the  18808 
as  a  model  town  by  George  M.  PuUman  of 
the  Pullman  Palace  Car  Company.  He  invest- 
ed (8  mlUlon  In  apartment  buildings,  parks, 
playgrounds,  churches,  theaters,  arcades, 
caalnos;  the  town  won  awards  for  Its  designs 
at  International  expositions.  But  Pullman 
in  fact  was  tense  with  fear  and  suspicion,  as 
company  spies  probed  for  tips  on  "union  In- 
filtration" or  "dangerous  "  and  "disloyal"  em- 
ployees. When  the  1863  depression  came,  the 
company  laid  off  workers,  cut  wages  26  per- 
cent, but  did  not  reduce  rento.  Alter  Investl- 
gaung  Pullman  ui  the  1930.1,  the  economist 
Richard  T.  Ely  concluded  that  "the  Idea  of 
Pullman  is  un-American.  It  Is  a  benevolent, 
weU-wiahlng  feudalism,  which  desires  the 
happiness  of  the  people  but  in  such  a  way 
as  shall  please  the  authorities" 

Economists  today  apparently  assume  that 
towna  like  r>ullman  have  largely  disappear- 
ed. In  faoi  some  five  mlUlon  Americana  now 
live  In  company  towns — paper  pul;j  towns  in 
Maine,  mining  towns  in  the  West,  textUe  and 
papermill  towns  in  the  South,  We  frequently 
hear  how  one  crop  economies  in  poor  coun- 
tries can  lead  to  political  authoritarianism 
and  economic  instability,  but  American  ana- 
lysts often  faU  to  comprehend  that  similar 
things  can  happen  in  parU  of  thalx  own 
country. 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42415 


Footnotes  at  end  of  article. 


Consider  the  town  of  Saint  Marys,  Oeorgla, 
nearly  all  of  whose  1,800  wage  earners  are  em- 
ployed by  the  OUman  Paper  Company  and  Its 
business  allies.  GUman  Interests  control  the 
city  council,  the  town's  only  real  estate  com- 
pany, bank,  and  Insurance  firm,  as  well  as  all 
Its  lawyers.  A  popullat  Insurgent.  Dr.  Carl 
Drury.  recently  challenged  and  defeated  a 
Gllman-backed  candidate  In  a  countywlde 
election  for  state  representative.  An  assl»tAnt 
per.sonnel  manager  at  the  OUman  mJC  re-^ 
ported  that  his  boss  "told  me  to  go  dovWi^B 
the  bag  plant,  spend  all  the  time  and  money 
I  needed,  and  fine  out  who  was  going  to  vote 
for  Drury,  All  of  the  Drury  supporters  would 
be  terminated."  The  i>er9onnel  manager  re- 
fused, and  was  told,  ""Either  you  get  that 
damned  list  or  that's  It."  He  quit.  "It  would 
have  been  suicide  to  stay  after  that."  he 
said.  Another  mill  worker,  however,  wouldn"t 
anger  his  employer.  "'I  have  a  wife,  three 
children,  and  a  mortgage.  I  am  not  going  to 
Jeopardize  them  Just  to  give  the  mill  a  kick 
In  the  ass.  The  mill  knows  It  and  I  know 
it."  After  the  election  some  people  were  fired 
or  suffered  business  losses  because  they  sup- 
ported Drury. 

Corporate  domination,  moreover,  can  oc- 
cur In  entire  states  as  well.  Everyone  knows 
that  DuPont  is  powerful  In  Delaware  but  few 
realize  how  powerful.  The  firm  employs  11 
percent  of  the  state  work  force  and  manu- 
factures 20  p>ercent  of  the  state's  gross  pro- 
duct •  The  DuPont  family  controls  the  Du- 
Pont company  through  the  DuPonts  on  the 
board  of  directors  and  through  the  family's 
holding  company,  the  Christiana  Securities 
corporation,  which  also  owns  the  con-.pany 
that  publishes  the  state's  two  biggest  news- 
papers, the  Morning  News  and  the  Evening 
Journal. 

In  Wilmington  you  find  DuPont  every- 
where, not  Just  In  the  DuPont  Building,  the 
company's  huge  office  complex.  The  Play- 
house. Wilmington's  only  legitimate  theater, 
is  owned  by  DuPont,  and  the  Wilmington 
Trust  Company.  Delaware's  largest  bank.  Is 
controlled  by  It.  The  recent  county  execu- 
tive was  a  former  DuPont  lawyer,  the  father 
of  Wilmington's  past  mayor  was  a  prominent 
DuPont  executive.  The  state's  one  congress- 
man Is  Pierre  S.  du  Pont  IV;  Its  attorney  gen- 
eral is  married  to  a  DuPont  and  is  the  son 
of  a  DuPont  executive;  the  recent  governor, 
Russell  Peterson,  was  a  former  DuPont  re- 
search director.  People  connected  with  the 
firm  or  the  family  comprise  a  fourth  of  the 
8tat«  legislature,  a  third  of  Its  committee 
heads,  the  president  pro  tempore  of  the  Sen- 
ate, and  the  majority  leader  of  the  Delaware 
House, 

One  result  Is  that  the  state  legislature 
has  failed  to  reform  the  tax  system,  which 
favors  the  DuPont  firm  and  family  by  virtue 
of  Us  extremely  low  property  tax  assessments 
and  the  lack  of  any  tax  on  persoiial  property 
owned  either  by  Individuals  or  business.  In 
fact,  a  1970  state  law  abolished  one  of  the 
few  progressive  features  of  the  Delawue  tax 
system — the  treatment  of  capital  gains  as 
ordinary  taxable  Income.  When  Wilmington 
Medical  Center,  controlled  by  the  DuPonts. 
recently  wanted  to  move,  the  family  made 
sure  that  a  new  center  was  built  In  the  rich 
suburbs,  not  In  Wilmington  propter  where 
poor  people  badly  needed  additional  medical 
services.  Five  of  the  seven  members  of  the 
county  council,  who  helped  make  the  site 
available,  were  either  DuPont  employees  or 
members  of  the  family. 

CIVIC    WELFARS 

As  a  result  of  the  wave  of  conglomerate 
mergers  in  the  late  1980b,  many  local  enter- 
prises have  become  branch  offices  of  financial 
centers  In  places  like  New  York  City  and 
Chicago,  The  acquiring  corporation  has  na- 
tional   If    not    International    interests,    pro- 


Footnotes  at  end  of  article, 
V 


duclng  or  selling  goods  In  Birmingham,  Ala- 
bama, or  Providence.  Rhode  Island,  but  not 
wanting  to  become  enmeshed  In  such  places.* 
For  most  of  the  branch  managers  who  run 
the  plants,  the  town  Is  a  temporary  station 
on  the  way  to  success  in  New  York  or  Los 
Angeles.  "IBM  Is  frjnous  for  never  allowing 
anyone  to  take  up  roots  .  .  .  they're  con- 
stantly moving  people  around  the  country," 
says  New  York  Congreaeman  Hamilton  Fish, 
who  has  IBM  faculties  In  his  district. 

The  sociologist  Robert  Bchulze.  In  a  study 
of  the  managers  of  a  big  corporation,  loimd 
that  "their  community  roots  were  the  most 
shallow  if  Indeed  it  could  be  said  that  they 
had  any  community  roots  at  all.  The  data  led 
us  to  suspect  that  perhaps  Cibola  ,  ,  ,  was 
of  no  great  importance  to  their  lives."  ♦  Or 
as  one  corporate  official  told  his  local  man- 
ager In  Worcester.  Massachusetts,  "We 
couldn"t  care  less  what  happens  In  Wor- 
cester." This  Indifference  can  have  an  effect 
on  the  life  of  the  town,  which  often  looks 
to  the  larger  local  firms  to  aid  in  local  devel- 
opment. Their  lack  of  interest  can  amount 
to  a  veto  of  new  schools,  housing,  libraries, 
parks,  hospitals. 

When  absentee-run  firms  do  take  part  In 
civic  affairs,  they  often  mount  rearguard 
actions  to  protect  their  own  economic  In- 
terests, threatening  to  leave  the  town  or  city, 
exercising  a  veto  over  proposals  they  dislike. 
Or  they  support  local  puppets  who  act  In 
their  behalf  to  keep  down  taxes — a  kind  of 
local  Imperialism  which  both  paralyzes  the 
civic  will  and  engenders  a  hostility  not  unlike 
that  which  Chile  must  have  felt  toward  ITT. 

An  early  study  documenting  this  pattern 
was  conducted  for  a  congressional  commit- 
tee m  1946  by  Professor  C.  Wright  Mills.* 
Noting  that  by  1944  3  percent  of  all  manu- 
facturing concerns  had  employed  60  percent 
of  our  Industrial  workers.  Mills  asked,  "How 
does  this  concentration  of  economic  power 
affect  thp  general  welfare  of  our  cities  and 
their  Iniabltants?"  To  find  the  answer  he 
studied  three  pairs  of  cities.  In  each  pair  was 
a  "blg-buslness  city,"  where  a  few  big  ab- 
sentee-owned firms  provided  most  of  the 
Industrial  employment,  and  a  "small-busi- 
ness city,"  where  many  smaller,  locally-owned 
firms  comprised  the  community's  economic 
life.  Here  are  some  of  his  conclusions: 

"Blg-buslness  cities"  witnessed  sudden  and 
explosive  Jump>s  In  population,  leading  to  real 
estate  booms,  speculation  and  unplanned 
suburban  sprawl  radiating  around  center  city 
slums:  the  operating  ccet  of  municipal 
services  was  quite  high.  Growth  In  the 
"small -business  cities"  was  more  evolutionary 
and  planned.  Homes  were  better  built,  the 
city  was  better  laid  out,  and  municipal  costs 
were  lower, 

A  quarter  of  those  employed  in  the  "small- 
business  city''  were  proprietors  or  officials  of 
corporations;  only  3  percent  were  self-em- 
ployed In  the  "blg-buslness  city."  Plant  shut- 
downs In  bad  times  were  obviously  more 
catastrophic  In  a  blg-buslness  city,  since  the 
local  economy  was  so  much  more  dependent 
on  a  few  major  firms. 

Income  was  more  equitably  distributed  In 
"small-business  cities,"  as  an  average  of  more 
than  twice  as  many  people  earned  over 
$10,000,  Thus,  while  the  "independent  middle 
class  thrives"  In  the  small -business  cities.  It 
does  not  in  the  big. 

Prom  this  evidence,  as  well  as  his  study  of 
such  factors  as  death  rates,  the  number  of 
libraries,  museums,  recreational  facilities 
and  parks,  per  capita  expenditures  for 
schools  and  teachers,  and  frequency  of  home- 
ownership.  Mills  concluded  that  "big  busi- 
ness tends  to  depress  while  small  business 
tends  to  raise  the  level  of  civic  welfare." 
Since  Mills'  research  there  has  been  no  com- 
parable study  of  the  relation  between  big 
business  and  urban  life,  while  absentee  own- 
ership   and    the   amount    of   aggregate   eco- 


nomic concentration  have  IncreasedAleng 
with  the  decay  of  American  cltles.^Ki  view 
of  this,  as  well  as  the  vast  sums  spe;(vt  on  the 
study  of  "urban  affairs"  In  the  universities, 
it  is  dismaying  that  Mills'  work  on  the  local 
effects  of  corporate  power  has  not  been  con- 
tinued. 

INDnSTKlAb    POLLtmON 

There  Is  little  Incentive  to  stop  polluting 
when  you  control  the  local  authorities  who 
supposedly  monitor  you.  Savannah,  Oeorgla. 
and  Its  mighty  Savannah  River,  for  example, 
have  become  garbtige  dumps  for  local  Indus- 
try. American  Cyanamld.  vrtilch  produces 
among  other  materials  the  pigment  to  write 
the  m's  on  M&M's,  pours  six  mlUlon  gaUons 
of  waste  water  Into  the  Savannah  every  day. 
Including  over  600.000  pounds  of  sulphuric 
acid.  The  Union  Camp  Corporation,  produc- 
ing pap)er  bags,  dumps  37  mUllon  gallons  of 
waste  water  daUy.  Union  Camp  has  so  fouled 
the  air  with  Its  kraft  pulp  emulsions,  accord- 
ing to  two  scientists  at  a  local  pollution  con- 
ference, that  the  long-range  community  ef- 
fects Include: 

1.  the  town  is  a  much  less  desirable  place 
to  live  In; 

2.  It  offers  less  attraction  to  other  new  In- 
dustries and  commercial  enterprises; 

3,  prop>erty  values  and  rentals  in  summer- 
time areas  have  declined; 

4,  reduced  visibility  causes  hazards  and 
inconvenience  to  travelers. 

Union  Camp's  resp)onse  to  such  criticism 
shows  the  arrogance  of  a  corporation  that 
knows  that  it  Is  in  pxilitlcal  control.  The 
firm  refused  to  divulge  the  extent  of  air  po\- 
lutlon  It  emits  i>er  day.  The  state's  Air  Qual- 
ity Control  Board  Is  resptonslble  for  obtaining 
Just  this  typ)e  of  Information,  but  Is  dis- 
couraged from  doing  so  by  Union  Camp,  In 
fact.  Georgia's  air  pollution  law  Itself  was 
drafted  by  Olen  Kimble,  the  firm's  director 
of  air  and  water  pollution,  who  proposed  it 
on  "behalf  of  all  Oeorgla  Industry," 

When  John  Lientz,  Union  Camp  manager, 
was  asked  about  the  Ukellhood  that  heavy 
Industrial  pumping  might  dry  up  the  Savan- 
nah area's  underground  water  supplies,  he 
answered,  "I  don"t  know.  I  won't  be  here," 
A  study  of  Savannah,  directed  by  James  Pal- 
lows  and  sponsored  by  the  Center  for  Study 
of  Respx>nslve  Law,*  asked  a  Union  Camp 
executive  vice  president  whether  there  were 
any  limitations  on  their  use  of  ground  water. 
"I  had  my  lawyers  in  Vlrg^lnla  research  that," 
he  said,  "and  they  told  us  that  we  could  suck 
the  state  of  Virginia  out  through  a  hole  in 
the  ground,  and  there  was  nothing  anyone 
could  do  about  It." 

Essentially,  the  city  is  hostage  to  the  cor- 
poration. Union  Camp  came  to  Savannah 
during  the  depression  in  1935,  for  which  the 
firm  has  obtained  quid  pro  quos  ever  since 
(e.g..  Savannah  agreed  In  1935  to  pay  part  of 
Union  Camp's  legal  expenses  for  p>oUutlon 
cases).  The  city  is  being  slowly  p>ol8oned  by 
its  corporate  benefactor,  while  new  Industry 
hesitates  to  enter  Union  Camp's  satrapy 
since  the  environment  is  already  poUuted, 
the  water  supply  dwindling,  and  the  local 
labor  market  pre-empted.  Yet  Savannah  Is 
stlU  Intimidated  by  threate  that  Union  Camp 
wUl  move  to  another  city  If  local  restrictions 
become  too  severe.  But  Savannah,  of  course, 
cannot  run  away  from  Union  Camp. 

Another  example  of  the  corporate  "donor" 
poisoning  Its  mtinlclpwd  donee  is  the  Johns- 
ManvUle  plant  in  Manville.  New  Jersey.  The 
plant  employs  40  p»ercent  of  ManvUle's  em- 
ployees; Its  payroll  accounts  for  60  p>ercent  of 
the  town's  total  Income,  It  pays  more  than 
half  the  taxes  and  has  made  gifts  to  hospitals, 
schools,  and  recreational  faculties.  But  as 
Philip  Greer  wrote  In  the  Washington  Post, 
"People  are  dying  in  ManvUW  of  diseases 
virtually  unknown  elsewhere"  and  at  rates 
several  times  the  national  norms.  They  are 
dying,  medical  experts  agree,  because  they 


1-M16 


CONGRESSIONAL  RECORD  — SENATE 


work  In  tbe  biggest  ksbwtos  proccMlug  plant 
tn  tbe  vorld.  Johna-MAnvlUa  clalma  It  u  do- 
ing mil  It  CAD  to  reduce  the  dust  le7eU  wblcti 
le«d  to  dleeaee.  Any  more  coetly  improve- 
ments, the  Orm  warns  crttlce.  could  le«d  to 
plant  shutdowns  Instead. 

There  are  lees  ob»lou«  casee  of  such  Paust- 
lan  fituatlona.  where  a  town  depends  on  a 
firm  to  revive  its  economy  only  to  find  that 
unexpected  side  effect*  are  ruining  It  Or- 
lando, morlda.  was  delighted  a  Tew  years 
back  when  Walt  Dtsney  World  announced  It 
would  build  a  vast  amusement  complex  there. 
But  today  Orlando  Is  glutted  q^tb  people  and 
cars;  It  has  too  few  rooms  for  too  many 
tourists.  Inflated  real  estate,  high  rises  mush- 
rooming everywhere,  schools  that  are  over- 
crowded, and  garbage  and  sewage  servlcea 
that  are  Inadequate.  The  new  World  Trade 
Center  in  New  York  not  only  Invigorates  Wall 
Street,  but  also  Intereferee  with  the  television 
reception  of  thousands  of  New  Yorkers,  cre- 
ates traffic  Jams,  and  pours  tons  of  raw  eew- 
age  Into  the  Hudson  High  rtae  construction 
m  San  Francisco  Is  ruining  the  city's  archi- 
tectural standards  and  costing  eleven  dollars 
In  services  for  every  ten  dollars  the  high  rises 
contribute  In  ta.xea.  Butte.  Montana,  created 
by  Anaconda  Company,  is  now  literally  being 
consumed  by  it  since  Anaconda  Is  shoveling 
away  more  and  more  of  the  city  in  order  to 
get  at  rich  ore  deposits. 

LOCAL  T&XXS 

Throughout  tbe  country  powerful  local 
corporations  evade  their  fair  share  of  local 
taies.  Before  they  settle  In  a  town  they  de- 
mand, and  often  get.  a  subsidy  in  the  form 
of  preferential  tax  rates  As  a  previous  article 
showed,'  higher  tases  for  small  businessmen 
and  home-owners  are  the  result.  The  extent 
of  such  privilege  has  recently  been  docu- 
mented by  Senator  Muskle  and  hi*  committee 
on  Intergovernmental  relations.  Some  of  the 
unsavory  methods  used  to  secure  these  privi- 
leges. Including  corruption  and  bribery,  have 
been  exposed  by  Oeorge  Crlle.  a  reporter  who 
Investigated  the  tax  situation  In  IndlanA,* 
Por  example,  corporate  property  taxes  are 
often  underassessed  or  they  contrive  to  be 
classified  In  special  low  tax  ■zoneo,"  thereby 
Imposing  higher  tax  burdens  on  private  cltl- 
Bens  In  1950.  Union  Camp  slipped  a  law 
through  the  state  legislature  creating  special 
"Industrial  eones" — i.e..  permanent  tax  shel- 
ters which  could  never  be  annexed  to  the  city 
of  Savannah.  As  a  result.  Union  Camp  under- 
pays Chatham  County  »3-4  million  yearly, 
or  a  third  of  the  county's  III  million  budget! 
The  firms  huge  plant  Is  assessed  at  some  190 
million  for  local  property  tax  purposes.  whUe 
local  experts  estimate  It  should  be  assessed 
at  MOO-SOO  million.  It  now  pays  91.4  million 
In  property  Uxes:  assessed  at  MOO  million  It 
would  pay  taxes  of  $5  1  million. 

Similarly.  In  Chicago,  US  Steel  has  Ulegally 
Mcaped  payment  of  millions  of  dollars  of 
property  taxes  every  year  A  study  by  a  re- 
spected citizens  group  there,  Citizens  Against 
PoUuUon  (CAP),  estimated  that  US  Steel 
avoided  •164  million  In  taxes  in  1970:  the 
combined  undertaxatlon  of  three  other  steel 
companies  amounted  to  •ll  million  more. 
Chicago's  share  of  lost  taxes  alone  could  triple 
the  citys  budget  for  environmental  coatrol. 
Largely  because  of  CAP'S  campaigns.  US 
Steels  assessment  of  $45.7  million  In  1970 
roee  to  »84.6  million  In  1971.  stUl  weU  below 
the  estimated  value  of  Jigsa  million. 

COai>0«.*T«    PHTLANTHaoPT 

When  criticized,  corporations  Insist  that 
they  are  charitable,  and  of  course  they  are 
In  196a- 1969  they  gave  $255  million  to  higher 
education,  or  15  percent  voluntary  support 
to  schools  Total  corporate  gifts  In  1968 
totaled  S913  million,  or  some  6  percent  of 
all  philanthropy  in  the  country  Theae  gifts, 
however  amount  to  only  about  1  percent 
of  pretax  profits,  well  below  both  the  In- 
ternal Revenue  Code's  permissible  charita- 
ble deduction  of  5  percent  and  the  average 


Individual  taxpayer's  contribution  of  3.S  per- 
cent of  adjusted  gross  income  Still,  as  the 
basic  text  on  corporation  law  points  out, 
"The  concentration  of  a  large  proportion  of 
the  wealth  of  |  the  ]  community  in  the  hands 
of  business  corporations  has  made  corporate 
gifts  essential  if  charities  are  to  be  privately 
financed"  • 

Por  example.  In  Delaware  the  DuPont  fam- 
ily's thirty-su  foundations  have  assets  of 
more  than  1400  million  and  give  away  over 
•  12  million  a  year.  This  U  almost  as  much 
as  the  city  of  Wilmington  and  the  county  of 
New  Castle  each  spent  for  local  government 
functions.  Clearly,  there  are  benefits  to  the 
donors  as  weU  as  to  the  towns  from  such 
contributions:  gifts  can  reduce  federal,  sUte, 
and  local  estate  taxes,  thereby  limiting  pub- 
lic revenue:  the  donor  may  retain  control 
over  the  spreading  of  their  funds;  the  firm 
reaps  invaluable  publicity  and  can  use  Its 
gifts  to  promote  corporate  policies'" 

In  fact  cornorate  giving  usually  Is  done  at 
a  price,  and  ^  more  dominant  the  firm,  the 
more  dependent  the  community.  "Depend- 
ency on  DuPont  foundations  takes  two  ma- 
jor forms."  macert  James  Phelan  and  Robert 
Poeen,  ai^thors  of  Ttie  Company  State 

Sobs  t)rlvate  group«(  change  their  pro- 
grams to  suit  the  needs  of  a  DuPont  family 
member  and  some  governmental  bodies  come 
to  rely  on  foundation^  to  perform  public 
functions. 

Private  groups  become  supplicants,  trying 
to  get  someone  from  the  DuPonts  on  their 
board  of  directors,  currying  favor  with  foun- 
dations executives,  fearing  that  programs 
will  be  axed  if  they  become  "controversial" 
Donations  are  made  by  small  privileged 
groups  subject  to  no  standards  or  checks. 
Such  philanthropic  monopoly  can  discourage 
cltlsens  from  taking  inltutlves  and  limit 
the  diversion  of  projects  that  might  have 
otherw^lse  existed. 

At  the  same  time  communities  can  suffer 
when  corporate  donaUons  they  have  come 
to  rely  on  suddenly  drj-  up.  as  Is  often  the 
case  when  a  local  operation  Is  acquired  by 
an  outsider.  "Every  time  a  company  changes 
hands,  we  worry.'  says  Robert  P.  CahUl  cam- 
paign director  cf  the  Golden  Rule  Fund  of 
Worcester.  Massachusetts.  'Experience  has 
taught  us  that  It  wouldn't  be  surprising  if  we 
were  to  suffer  a  sharp  cut  In  the  company's 
corporate  gift,  even  if  employee  giving  Is  not 
affected"  A  study  of  Rochester.  New  York, 
showed  a  drop  in  corporate  contributions 
after  mergere  took  place:  "It  was  clear  that 
these  absentee-owned  firms  lagged  behind 
the  locally-owned  firms  In  rMponae  to  rising 
community  needs " "  civic  fund  raisers 
throughout  the  country  have  by  and  large 
learned  to  expect  less  from  chain  supermar- 
kets than  from  local  supermarkets. 

LOCAL    INVXSTMKKT 

Control  of  local  btmks  by  powerful  corpo- 
rate cUquee  can  also  frustrate  community 
development  The  small  Inventor,  the  mav- 
erick entrepreneur,  the  politically  unpopular 
Investor  would  aU  benefit  from  a  greater  di- 
versity of  sources  for  financing.  But  with  cen- 
tralized power  comes  flscAl  conservatism,  for 
domlrumt  banks  would  rather  ta.ke  care  of 
their  big  corporate  clients  than  back  risky 
ventures.  Wilmington  Trust,  a  DuPont-doml- 
nated  bank.  Invests  heavUy  In  corporate  and 
government  bonds  rather  than  In  local  loans. 
The  value  of  theae  securities  amounted  to  60 
percent  of  the  loans  outstanding  for  Wil- 
mington Trust  In  1969.  By  contrast  the  cor- 
responding figure  was  43  percent  for  the  US 
Trust  Company  of  New  York.  23  percent  for 
the  PhiladelphU  National  Bank,  and  3S  per- 
cent for  the  Olrard  Trust  Company  of  Phila- 
delphia. 

Absentee-controlled  firms  have  equally  dis- 
mal effects  on  local  Investment  The  Roches- 
ter study  of  mergera  concluded  that  merged 
companies  no  longer  banked  as  much  lo- 
cally;  big  city  banks  prospered  at  their  ex- 


Decemher  19,  197S 

penae  The  Oulf  *  Western  conglomerate  in- 
sUts  that  all  the  local  firms  It  acquires  trans- 
fer their  banking  business  from  local  banks 
to  the  Chase  Manhattan  Bank  In  New  YM-k 
City  When  Teledyne  acquired  the  Monarch 
Rubber  Company  of  Hartsrllle.  Ohio,  it  in- 
sisted that  the  company's  local  deposits  be 
shifted  to  the  National  City  Bank  of  New 
York.  "Banking  pracUoee.  "  as  David  Lelns- 
dorf  wrote  In  Citibank,  "operate  like  a  re- 
gressive tax  funnellng  the  money  of  com- 
munities with  declining  economies  to  thoae 
with  brighter  economic  prospects" 

So  communlUea  can  be  harmed  either 
when  absentee-owned  oorporetlons  ignore 
community  Interests  or  when  local  corpora- 
tions dominate  community  affairs.  Corporate 
dom.lnatlon  of  a  community  Is  bad  whether  it 
Is  exercised  or  not  If  you  sleep  with  an 
elephant,  every  thrash,  grunt,  or  snore  can 
be  a  disaster. 

To  say  that  giant  corporations  should  not 
have  such  economic  and  social  power  Is  more 
a  plea  than  a  proposal  So  long  as  corpore- 
tlons  have  this  power,  they  must  be  forced 
to  realize  they  also  have  special  obligations 
and  must  not  abuse  It  in  order  to  exploit 
and  to  discourage  self-rule.  Even  within  the 
market  system.  It  should  not  be  Impossible  to 
have  accountable  corporate  citizens;  the  Issu* 
Is  ultimately  one  of  recognizing  moral  obli- 
gation." 

But  towns  need  not  continue  to  act  as 
corporate  supplicants.  First,  if  vicUmlzed, 
they  can  sue.  This  Is  Just  what  El  Paso. 
Texas,  did  In  1973  when  It  Joined  with  the 
Texas  Air  Quality  Board  to  sue  the  American 
Smelting  and  Refining  Company  for  Its  fail- 
ure to  meet  air  quality  standards  and  It* 
consequent  lead  poisoning  of  some  El  Paso 
residents.  In  May,  1973,  ASARCO  agreed  to 
pay  fines  of  •80.600  for  elghty-elght  specific 
polluUon  vlolauons.  to  poet  •30.000  with  the 
court  for  any  future  violations,  to  install 
•760.000  worth  of  additional  emission  con- 
trol equipment,  and— a  remedy  tailored  to 
at  the  offense — it  also  agreed  to  pay  all  the 
medical  expenses  for  at  least  thirty  months 
few  134  chUdren  being  treated  for  lead 
poisoning. 

Second,  If  antitrust  enforcement  were  more 
vigorous  against  conglomerate  mergere  the 
extent  of  absentee-control  over  communities 
would  decline.  The  Nixon  Administration 
settled  Its  antlconglomerete  cases  before  the 
Supreme  Court  could  set  precedenu  on  these 
mergers  Rather  than  wait  for  some  future 
administration  to  take  the  plunge,  new  leg- 
islation should  forbid  any  firm  with  over 
•350  million  in  assets  from  acquiring  any 
other  firm  unless  It  spins  off  an  equal  amount 
of  assets  This  would  arrest  the  trend  toward 
Increasing  absentee-ownership,  while  per- 
mitting mergers  for  reasons  of  cfflelency 
rether  than  for  stock  market  manipulation 
or  managerial  emplre-buUding. 

Finally,  if  corporetlons  are  to  act  more  re- 
sponsibly, the  commuiuty  should  be  made 
more  a  part  of  the  corporation,  either  by  law 
or  (less  likely)  by  voluntary  measures  But 
how?  Citizen  committees  could  be  organized 
that  would  have  a  part  In  making  policy  In 
the  local  plants  of  the  dominant  firm  TTila. 
after  all.  is  where  many  decisions  are  made 
affecting  the  local  labor  market,  zoning  laws, 
pollution  levels,  political  structure,  etc.  Go- 
ing further,  a  mechanism  could  be  created  to 
elect  public  dlrectore  for  the  firms  board  of 
dlrectore  from  among  the  local  citizens" 
groups  that  have  gained  some  power  In  the 
various  plants  of  a  nationwide  conglomerate. 
But  national  pubUc  directors  so  elected  will 
be  Impotent  unless  they  have  their  own 
stair. 

Or  a  two-Uer  system  of  ahareholdera  could 
be  created.  Economic  stock  would  be  held 
from  voting  and  Investment  purposes,  look- 
ing toward  the  traditional  rewards  of  stock 
appreciation  of  dividends;  political  stock 
would  confer  only  voting  rights  and  would 
be  baeed  on  statu*,  not  weaith— the  status 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42417 


of  employees,  community  residents,  and  con- 
sumers who  are  clearly  and  Immediately  af- 
fected by  a  corporation  but  who  lack  any 
say  over  Its  action.  How  might  this  stock  be 
apportioned  among  citizens  and  among  com- 
munities? One  formula  would  be  a  law  re- 
quiring that  whenever  a  firm  accounts  for  x 
percent  of  a  community's  tax  base,  It  must 
allow  y  percent  of  all  Its  stock  to  be  p>olltlcal 
stock,  up  to  some  celling  of  stock,  say  10 
percent. 

These  suggestions  are  merely  starting 
points.  To  carry  them  out  would  require  a 
degree  of  concern  and  local  organization — a 
desire  to  claim  power  and  an  ability  to  get 
nrw  laws  enacted — that  Is  far  from  evident 
^H^,^  But  jLB  such  possibilities  become  real, 
/Oie>-cb'tllH  Suggest  answers  to  one  of  the  great 
quest loas  faring  the  U.S.  today:  how  can  cor- 
porate povrer  be  checked  without  a  parallel 
growth  In  bureaucratic  government? 

Solutions  for  community  problems  should 
best  be  sought  In  the  community.  Por  yean 
corporate  leadera  have  been  saying  that  their 
firms  serve  many  diverse  constituencies — 
shareholders,  consumers,  workers,  dealers, 
and  citizens  generally.  In  1969,  for  example. 
Henry  Pord  II  told  a  Harvard  Business  School 
audience  that — 

"The  terms  of  the  contract  between  In- 
dustry and  society  are  changing.  .  .  .  Now  we 
sre  being  asked  to  serve  a  wider  range  of  hu- 
man values  and  to  accept  an  obligation  to 
membere  of  the  public  with  whom  we  have 
no  commercial  transactions."" 

Por  this  sentiment  to  be  more  than  mere 
rhetoric,  the  political  process  must  convert 
this  "contract""  Into  workable  laws,  so  that 
companies  will  be  obliged  to  attend  to  their 
victims  before  they  reward  their  Investore. 

rOOTNOTXS 

'  Sta-nAard  Oil  Company  of  California  et. 
at  v.  united  States.  337  US  293.  319  (1948). 

'  For  an  elaboration  of  DuPont's  control  In 
Delaware,  see  P.  Phelan  and  R.  Pozen,  The 
Company  State  (Grossman.  1973). 

•  Absentee-ownership  floiu-ishes  in  areas 
with  weak  unions,  low-paying  Jobs,  and  lax 
environmental  standards.  Por  some  states, 
this  condition  Is  becoming  chronic.  In  Ver- 
mont nineteen  of  the  twenty-two  largest 
plants  4^  employees)  are  owned  by  outstd- 
ere;  In  New  Hampshire,  outsldera  own  sixteen 
of  twenty  Pifty-flve  of  the  top  ninety-nine 
firms  In  Maine  are  absentee-owned:  and  In 
seven  southern  West  Virginia  counties, 
twenty-eight  big  landowners  own  about  one 
half  of  the  land,  with  nineteen  of  the  twenty- 
eight  being  out-of-state  corporations.  Nor  Is 
absentee  ownership  limited  to  domestic  firms, 
American  Association,  Ltd.  Is  a  British  multi- 
national firm  which  owns  66,(XX)  acres  of 
land  in  eastern  Tennessee  Insulated  by  dis- 
tance and  Indifferent  to  adverse  national 
publicity.  It  Is  even  leas  accountable  to  the 
region  it  exploits 

♦Schulze.  ""The  Bifurcation  of  Power  In  a 
Satellite  City,"  in  M.  Janowltz,  ed..  Commu- 
nity Political  System*  (Free  Press.  1961) ,  One 
study  asked  community  leaden  in  three  cities 
whether  they  thought  branch  managere  were 
more  or  less  interested  in  the  community 
than  were  local  businessmen:  95  percent.  79 
percent,  and  67  percent,  respectively,  said 
"leas."  Cited  In  K  David  and  R,  L.  Blom- 
strom.  Business,  Society  and  Environment: 
Social  Power  arul  Social  Response  (McGraw- 
Hill.  1971). 

^  Small  Busine,'!s  and  Civic  Welfare.  Report 
of  the  Smaller  War  Plants  Corporation  to  the 
Special  Committee  to  Study  Problems  of 
American  Small  Business  US  Senate,  79tl) 
Congress.  3nd  Seaslcn.  Doc.  No.  136  (1946). 
See  also  a  study  that  same  year  finding  sim- 
ilar correlations  between  large  scale  corpo- 
rate farming  and  farming  comnjunltles. 
Small  Business  and  the  Community — a  Study 
in  Central  Valley  of  California  on  Effects  of 
Scale  of  Farm  Operatufm  Report  of  the  Spe- 
cial Committee  to  Study  Problems  of  Amer- 


ican Small  Business,  US  Senate.  79th  Con- 
gress, 2nd  Session,  Comm.  Print  No.  13 
(1946). 

*  Por  a  moving  account  of  Union  Camp  In 
Savannah,  see  J.  Fallows,  Ttie  Water  Lords 
(Bantam,  1971) . 

^  Ralph  Nader.  "'A  Citizen's  Guide  to  the 
Economy."  New  York  Review,  September  3, 
1971. 

*On  the  Impact  and  Administration  of 
the  Property  Tax.  hearings  before  the  Sen- 
ate Subcommittee  on  Intergovernmental 
Relations  of  the  Committee  on  Government 
Operations,  92nd  Congress,  2nd  Session  (May 
4,  9.  June  26.  August  22.  1972) .  George  Crlle, 
"A  Tax  Assessor  Has  Many  Friends."  Har- 
pars,  November  1972. 

•  R.  Baker  and  W.  Cary.  Cases  and  Materials 
on  Corporations  (3rd.  ed.,  1959). 

"In  1967  the  Michigan  Bell  Telephone 
Company  announced  that  It  would  "adopt" 
a  local  high  school,  "enriching"  It  by  Its  in- 
vestment of  equipment  and  Instructon.  Why 
this  contribution?  William  M.  Day,  the  firms 
president,  said  It  would  "help  prepare  the 
I  potential!  shareholders  for  the  business 
world.  We  think  we  can  make  a  real  difference 
In  pupil  attitudes."  Caveat  receptor. 

"  "Report  of  a  Committee  of  the  Rochester 
Chamber  of  Commerce  on  the  Out  of  Town 
Acquisition  of  Rochester  Companies,'"  1959. 
cited  In  E.  Kefauver  and  I.  Till,  In  a  Feit 
Hands:  Monopoly  in  America  (1966).  Corpo- 
rate contributions  are  not  all  that  Is  lost 
due  to  a  merger.  A  study  of  1963-1967  ac- 
quisitions of  local  Wisconsin  firms  by  out- 
side interests  found  that  the  premerger 
growth  rate  of  the  acquired  firms  was  6.02 
percent  while  the  postmerger  growth  rate 
was  0.48  percent;  employee  payrolls  premerger 
had  Increased  15.6  percent  but  only  2.1  per- 
cent In  a  comparable  period  postmerger.  And 
many  of  the  acquired  firms  shifted  away  from 
local  lawyen  and  accountants  and  toward 
the  services  of  the  parent  firm.  J.  G.  Udell, 
Social  and  Economic  Consequences  of  the 
Merger  Afoi'ement  m  Wisconsin  (Unlvenlty 
of  Wisconsin,  1969). 

"  Even  some  Judicial  decisions  are  com- 
ing to  recognize  that  certain  corporations 
have  obligations  beyond  maximizing  profits. 
In  Herald  Co.  v.  The  Denver  Post,  handed 
down  by  the  Tenth  Circuit  Cotirt  of  Appeals 
on  December  29.  1972,  the  court  permitted 
what  was  in  effect  a  subsidy  to  the  Denver 
Post's  employees  stock  ownershln  plan  be- 
cause the  firm  had  an  obllpatlon  to  Its  em- 
ployees as  well  as  to  Its  shareholders.  Rowen. 
""Court  Ca.se  Says  Corporate  Duties  Go  Beyond 
Profit,"   Washington  Post,  April  8,  1973. 


MOBn.F  HOME  CONSTRUCTION  .^ND 
S.^FETY  STAND.A.RDS  ACT 

Mr.  BROCK  Mr.  President,  I  wish  to 
commend  the  chalrma.^,.  Mr  Sparkman 
and  thp  members  nf  thp  Committee  on 
Banking,  Houslntr  and  Urban  Affairs  for 
taking  favorable  action  last  week  on  the 
Natlon.Tl  Mobile  Home  Const.-uction  and 
Safety  Standard.-^  Act  of  1973. 

The  need  for  national  safety  standards 
for  mobile  homes  wa.<;  again  brought 
home  to  me  la-st  month  when  tornados 
struck  northern  Mi.s.^lsslnp;  and  wept 
Tennes,see  Reports  I  have  received  from 
the  Tennessee  Department  of  Civil  De- 
fense Indicate  that  when  a  tornado 
struck  Fayette  County,  Term  ,  although 
it  remained  approxi.mat^'ly  50  to  75  feet 
above  ground  level,  it  took  with  it  mobile 
homes  that  were  not  secured  with  proper 
tledowns  During  the  same  period  a 
tornado  struck  two  hea\1ly  populat,ed 
mobile  home  parks  in  north  MisslsslppL 
Tlie  National  Weather  Service  ofRce  In 
Memphis   reported    that    mobile    homes 


which  were  projxrly  secured  with  over- 
the-top  tledowns  were  not  damaged  or 
suffered  light  damage,  while  those  rriObiie 
homes  not  properly  secured  were  heavily 
damaged  or  destroyed 

Although  over-the-top  tledowns  will 
not  eliminate  completely  the  danpcr  of 
mobile  homes  being  destroyed  during  a 
tornado,  they  will  certainly  minimize  the 
damage  Incurred  by  straight  winds  and 
fringe  winds  that  exist  during  a  tornado 
or  a  severe  thimderstorm. 

The  conclusion  reached  by  the  west 
Tennessee  Civil  Defense  coordinator  is 
that  unless  mandatory  legislation  la 
passed  and  enforced  to  assure  adequate 
over-the-top  tledowns  of  mobile  homes 
used  as  permanent  dwellings  throughout 
the  country-,  we  are  setting  the  stage  for 
a  major  catastrophe.  Should  a  tornado 
strike  a  densely  populated  mobile  home 
park  In  the  middle  of  the  night  when  the 
majority  of  residents  are  at  home,  the 
chances  of  survival  would  be  slim.  The 
passage  and  fmplementatlon  of  the  Na- 
tional Mobile  Home  Construction  and 
Safety  Standards  Act  could  avert  such 
future  tragedies. 

The  Senate's  consideration  of  mobile 
home  safety  legislation  started  in  the 
92d  Congress  on  May  15,  1972,  when  I 
introduced  S.  3604,  the  National  Mobile 
Home  Safety  Standard  Act  of  1972.  The 
Honorable  Louis  Fret,  Jr..  Representa- 
tive in  Congress  from  the  State  of  Flor- 
ida, had  earlier  Introduced  legislation  on 
the  House  side.  Both  bills  followed  the 
same  pattern  that  would  give  us  uniform 
Federal  standards  with  State  enforce- 
ment. Joining  me  in  the  relntroduction 
of  mobile  home  safety  legislation  (8. 
1348)  in  the  93d  Congress  were  my  dis- 
tinguished colleagues  on  the  Committee 
on  Banking.  Housing  and  Urban  Devel- 
opment. Senators  Bennett.  Hathaway, 
SPfPKM.^N,  Taft  and  Tower. 

The  distinguished  chairman  of  the 
Subcommittee  or  Housing  and  Urban 
Affairs,  Mr.  Spark  man,  promptly  held 
hearings  on  the  bill,  S.  1348.  at  which 
time  both  industry  and  consum.er  groups 
testified  as  to  the  need  for  national  mo- 
bile safety  regulations.  After  the  hear- 
ings, the  Senator  from  Ohio  'Mr.  Tatt), 
a  sponsor  of  the  bill,  introduced  a  major 
amendment  which  would  give  the  pur- 
chaser of  a  mobile  home  additional  pro- 
tection by  requlrir^g  the  manufacturer 
and  dealer  to  give  a  warranty  that  the 
mobile  heme  meets  all  "safety  standards. 
The  Sermtor  from  Wisconsin  'Mr. 
PRoxMrKE'  on  October  4.  197?  intro- 
duced S  2538  which  would  extend  the 
mobile  homes  legislation  to  include  con- 
stmctior.  -^tandard.^  In  addition  S  2538 
contained  additional  consumer  protec- 
tion provL'-ions  called  for  by  consumer 
groups  Representatives  of  Ind'Listry,  con- 
sumers, and  State  code  ofBcials  met  with 
the  profes-sional  staff  of  the  committee 
to  work  out  detaals  of  the  legislauon. 
Those  Issues  which  were  not  resolved 
in  this  cooperative  effort  were  deter- 
mined by  the  full  Committee  or,  Bar.k- 
ing,  Hoa-ring  and  Urban  Affairs  The 
final  legislation  which  was  approved  by 
the  committee  i-'^  a  reasonable  and  tial- 
anced  approach  to  national  standards 
for  mobile  home  safety  and  cc»i£umer 
protect! 


CHL 


42418 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1972 


/ 


V 


The  legislation  would  require  the  Sec- 
retary of  Housing  and  Urban  Develop- 
ment to  establish  Federal  mobile  home 
construction  and  safety  standards.  These 
standards  shaU  meet  the  need  for  mo- 
bile home  safety,  durability,  and  quality, 
and  shall  meet  the  highest  standards 
of  protection,  taking  into  account  exist- 
ing State  and  local  laws. 

Enforcement  of  tha  standards  would 
be  delegated  to  the  States  which  develop 
State  enforcement  programs  that  as- 
sure adequate  enforcement  to  protect 
the  public. 

A  National  Mobile  Home  Advisory 
Council  would  be  established  composed 
of  cjn.<;umer  groups,  together  with  rep- 
resentatives of  industry  and  Govern- 
ment. 

A  public  information  section  would  re- 
quire public  hearings  and  disclosure  of 
information  utilized  in  promulgating  the 
Federal  standards. 

Thi?  Secretary  would  be  authorized  to 
,  conduct  research  and  testing  for  the  pur- 
pose  of   asjuiing   mobile   home   safety. 

Every  manufacturer  would  be  requi:  ed 
to  furnish  the  mobile  home  owner  a  noti- 
fication of  defects  and  make  any  cor- 
rections that  are  necessary. 

Everj'  manufacturer  and  dealer  would 
be  required  to  furnish  the  purchaser  a 
1-year  warrantly  that  each  new  mobile 
home  meets  all  applicable  standards. 

Appropriate  civil  and  criminal  penal- 
ties aie  provided  for  the  enforcement 
of  legislation. 

Therefore,  it  is  imperative  that  the 
Congress  act  quickly  on  this  measure, 
before  injuries,  deaths,  and  damage  that 
can  be  prevented,  occur. 


CRISIS  AVOIDANCE 

Mr.  CLARK.  Mr.  President,  the  energy 
emergency  that  confronts  this  country 
today  is  only  the  latest  example  of  what 
can  happen  when  no  one  takes  the  time 
to  plan  ahead.  AH  the  sigtio  of  a  fuel 
shortage  were  there — 10  or  20  years  ago — 
had  anyone  wanted  to  heed  them.  But 
we  did  not,  and  the  result  has  been  gov- 
ernment by  reaction,  crisis  response  in- 
stead of  crisis  avoidance. 

It  does  not  have  to  be  that  way.  While 
we  never  wUl  be  able  to  predict  the  fu- 
ture or  totally  prepare  for  it.  we  can  and 
should  improve  our  present  performance, 
because  it  is  possible  to  develop  a  clearer 
sense  of  national  purpose  and  an  agenda 
that  will  help  us  meet  those  goals. 

M:-  Representative  In  the  House,  Con- 
gressman John  CrtvEa.  has  given  a  great 
deal  of  time  and  thought  to  the  need  for 
national  planning,  the  need  for  "crisis 
avoidance."  as  he  puts  it.  He  was  the  first 
to  propose  a  Futures  Conference  for 
Iowa,  andhe  has  constantly  spoken  out 
on  the  neelito  give  government  at  every 
level  a  dlredt^on  that  will  enable  us  to 
deal  with  futi*re  problems  before  they 
become  future  catastrophes. 

In  a  recent  speech  to  the  Women's 
National  Democratic  Club,  Congressman 
CrxvzH  spoke  on  the  theme  of~?'crtsls 
avoidance."  I  ask  unanimous  consent  that 
his  speech  be  printed  in  the  Ricord 

There  being  no  objection,  the  speech 
was  ordered  to  be  printed  In  the  Record. 
as  follows: 


Crisis  Avoidance 
We  Americans  would  not  change  our  free 
democratic  system,  with  all  Its  Imperfections, 
for  any  other  brand  of  government  on  the 
market. 

Yet  when  we  get  together  to  blow  off 
steam — in  the  family  Utchen,  a  business- 
men's group  or  a  fence  ro.v  colloquy  with 
the  neighbors,  the  first  object  of  our  wrath 
Is  generally  our  government. 

Part  of  this  Is  a  normal,  healthy  reaction 
of  Independent  people  to  any  kind  of  author- 
ity or  regimentation. 

But  part  of  It  is  a  Justified,  gut  resent- 
ment on  the  part  of  people  that  government 
today  13  so  incredibly  accident  prone.  It  sim- 
ply seems  incapable  o'  operating  In  any  other 
way  except  to  lurch  from  crisis  to  crisis. 

And  the  American  people  are  justifiably 
tired  of  being  subjected  to  crues  that  could 
plainly  have  been  avoided  by  a  modicum  of 
advance  planning  and  foresight.  What  we 
have  today  In  Washington  Is  "crisis  misman- 
agement" In  place  of  proper  government  lead- 
ership,      j'' 

We  had^a  Russian  grain  deal  that  was  hast- 
Uy  put  throug.^  and  hailed  as  the  greatest 
tiling  .since  the  Invention  of  tlie  v/heel  for  Its 
benefit  to  detente  and  world  traae. 

No  one  In  national  leadership  teemed  to 
foresee  what  Its  other  effects  would  be — ruin- 
ous Inflation;  a  chaotic  transportation  glut; 
a  shortage  of  vital  commodities  here  at  home; 
the  breaking  of  solemn  export  contracts  to 
traditional  friendly  foreign  customers;  an 
almost  immediate  mcrease  in  the  price  of 
bread  on  supermarket  shelves. 

Now  we  are  face  to  face  wllh  an  alarming 
nationwide  energy  shortage — another  crisis 
that  might  have  been  avoided  if  there  had 
l)een  adequate  national  planning  over  the 
past  few  years. 

The  poet  said:  "Of  all  sad  words  of  tongue 
or  pen.  the  saddest  are  these;  it  might  have 
been.'  " 

Perhaps  the  saddest  thing  that  can  be  said 
about  chronic  crisis  In  government  is  that 
"It  might  have  been  .  .  .  avoided."  I  believe 
It  Is  fair  to  say  that  thU  Administration 
could  not  see  a  crisis  commg  if  it  was  wearing 
a  "cowbell." 

Today.  I  should  like  to  say  a  few  words 
about  criaia  avoidance,  a  subject  very  much 
on  the  minds  of  all  of  us  even  If  we  do  not 
always  articulate  It  as  such.  I  have  been 
struck  by  the  way  that  many  people  in  Wash- 
ington appear  to  enjoy  deaimg  with  crises. 
It  sharpens  the  political  climate  in  which 
they  operate,  and  gives  them  a  bracing  air 
of  self-importance. 

Certainly  we  have  enough  crisis  headlines 
to  keep  all  of  them  fully  occupied:  an  urban 
crisis,  a  rural  crisis,  a  dollar  crisis,  an  energy 
crisis,  an  environniental  crtals.  and  a  food 
and  fertUlzer  crisis  all  in  the  bargain. 

But  I  can  report  that  our  voters  do  not 
find  these  crises  stimulating.  They  are  gen- 
uinely upset  by  the  many  disruptions  to 
their  way  of  life,  and  puzzled  by  the  bureauc- 
racy of  controls  that  has  sprung  up  to  deal 
with  them.  Indeed  I  believe  this  distress  has 
contributed  Importantly  to  citizen  disaffec- 
tion with  the  whole  political  process,  which 
we  In  public  life  must  recognize  and  deal 
with. 

For  generations  our  people  have  been  ac- 
customed to  an  economy  of  abundance.  In 
which  America's  fertile  resources  produced 
all  the  goods  we  could  U3e  at  lnexpen--!ve 
prices  Now  all  of  a  sudden,  and  wltliout  any 
apparent  warning,  we  have  shortages  at  every 
hand  with  accrmpanylng  hlsh  prices  and  a 
maze  of  bewildering  controls.  Pe.'ple  natural- 
ly wonder  what,  has  happened  to  the  secure 
and  comfortable  world  they  know  and  who  Is 
responsible  for  li.s  abrupt  transf  rmatlon 

There  are  no  quick  or  obvious  answers  at 
hand.  The  economic  problems  we  face  are 
complex  and  closely  Inter-related  They  are 
not  readUy  reducible,  m  that  fine  and  self- 


confident  American  phrase,  to  "manageable 
size."  This  makes  for  pesslmUm  about  the 
future,  which  itself  endangers  our  ability  to 
devise  solutions. 

I  belie. e  our  answerb  must  begin  with  hon- 
est recognition  of  the  genuine  and  quite 
novel  nature  of  some  of  the  problems  pre- 
sented by  a  rapidly  changing  world.  And  we 
must  acknowledge  the  past  faUures  of  re- 
sponsible leadership  to  perceive  these  changes 
and  to  set  the  choices  they  present  before 
the  American  people  honestly  and  coura- 
geously. Once  we  do  that,  we  will  be  a  rbng 
A-ay  towards  correcting  our  past  mistakes  and 
avoiding  Tuiure  crises. 

T''e  Ainerlcan  people  are  pu^xled  but  uot 
deiealed.  In  many  respecta  they  are  as  usual 
way  al-ead  of  i.^e  pcl.ilclr.t's.  Tliey  ren;ala  as 
always,  resourceful  and  e.iergetic.  Told  the 
full  tri:th  about  our  larger  problent,  they 
vill  knew  :  cw  to  tit-al  wit^s  t^em.  As  Thomas 
Jeirerscn  salu:  "Enlighten  vlis  people  gen- 
eraiiy.  and  trrani.y  a.d  oppressions  ci  bcdy 
and  mind  wlU  vanish  like  evU  spirits  at  tiie 
dawn  of  day."  I  belle- e  that  Is  ao  true  now 
as  when  it  was  stated. 

So  we  mu^t  begin  by  recognizing  tht-t  we 
have  entered  Into  a  new  ec-nomlc  era.  which 
mil  he  chara.'-er.zed  b.,  periods  of  relative 
scarcity.  Pood  und  fuel  are  '  o  longer  In  excess 
supply,  a>-.i  It  is  unUkely  t>ey  will  ever  re- 
turn t  .•  exoe'3  suf  ply.  Oi  r  resources  are  finite 
a.id  uot  Infinite  Tl.e  evcr-lncreasln,-;  con- 
suiiiptlon  curves  we  have  seen  in  the  past, 
based  en  cheap  and  apparently  Inexhaustible 
rjsoirces.  will  lave  to  be  moderated  in  the 
future.  Our  own  productive  capacities,  as  we 
should  always  have  known,  are  not  limitless. 
And  the  growing  wealth  of  other  nations, 
which  we  ourselves  have  fostered,  has  allowed 
t!'ein  to  be<in  competing  for  available  world 
supplies  Including  even  those  within  the 
Cnlted  States. 

These  trends  ha.e  been  visible  for  some 
time,  as  I  have  .said.  But  our  policy  planning 
has  not  kept  pace  with  them.  We  have  al- 
lowed ourselves  quite  literally  to  be  over- 
whelmed by  change.  The  resulting  turbulence 
Is  compounded  by  the  accelerating  rate  of 
change  we  are  experiencing  today,  the  Inter- 
conr.ectioa  of  so  many  Issues,  the  unprece- 
dented interdependence  of  t^e  world,  and  the 
absence  of  the  "cushion"  of  tlu  e  or  space 
that  allowed  us  to  adjust  to  change  as  well  as 
error  In  earlier  and  simpler  times. 

What  this  Implies  first  of  all  is  that  we 
must  accustom  ourselves  to  allocation  of  pri- 
orities. Oi'.r  nation  hasn't  had  to  do  that 
In  the  past.  When  not  enough  of  the  eco- 
n  jmlc  pie  was  going  to  any  particular  seotor, 
we  simply  expanded  the  pie.  And  we  must 
l'>.k  forward  to  uncomfortable  Issues  we  now 
see  on  the  horizon,  such  as  the  Iniufflclency 
of  our  water  resources  to  urban  concentra- 
tions and  the  ground  rules  for  Increased 
foreign  Investment  In  the  U.S.  Ui  the  years 
ahead. 

These  are  not  comfortable  or  familiar 
problems.  Change  Is  unsettling,  and  accel- 
erating change  Is  even  more  so.  The  Amer- 
ican people  for  historic  reasons  do  not  like 
government  planning.  We  prefer  to  bump 
along  and  hope  for  the  best,  trusting  In  our 
collective  energies  to  see  us  through.  And  we 
equate  the  word  planning,  when  applied  to 
government,  as  socialism  or  worse. 

But  today  we  do  not  really  have  that  choice. 
The  economy  of  scarcity  is  with  us  and  wUl 
stay  with  us  If  the  people  and  the  govern- 
ment do  not  become  more  responsibly  in- 
volved In  devlsmg  solutions  and  planning  in- 
telllgenUy  for  the  future,  we  are  going  to 
continue  having  crises  and  we  are  going  to 
contlnvie  coping  with  them  unsuccessfully 
through  a  distant  and  technocratic  ellt*. 
This  (s  exactly  what  people  object  to  now 

There  Is  of  course  a  difference  between 
planning  and  management.  Just  as  there  la  a 
difference  between  Incentives  and  controls. 
Government  management  and  controls  are 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42419 


-/ 


Imposed  when  a  crisis  erupts  upon  ua  and  we 
have    no   time   for   anything   else.    Planning 
and  Incentives  are  ways  of  avoiding  crises  be- 
I  fore  they  occur,  and  of  avoiding  the  growth 

In    bureaucracy    and    government    sp>endlng 
that  such  crises  brtag  with  them. 

Crisis  avoidance  must  begin  with  a  lifting 
of  our  sights.  We  must  get  ourselves  into  the 
habit  of  looking  20  or  30  years  ahead  at  the 
Mkely  Impact  of  our  policies,  not  Just  3  to  5 
years  ahead  as  at  present. 

We  In  Oongress  are  now  hopefully  making 
an  effort  to  organize  ourselves  In  a  way  to 
better  permit  such  p>erspectlve8.  Through 
the  Select  Committee,  on  Committees,  on 
which  I  serve,  we  are  "examining  how  to  re- 
vise the  committee  structure  so  as  to  deal  In 
an  integrated  fashion  with  the  major  clusters 
of  problems  anticipated  In  the  last  quarter 
of  the  20th  century.  It  Is  my  view  that  we 
will  need  standing  committees  dealing  with 
such  subjects  as  population  movements,  the 
environment,  economic  conversion,  energy  re- 
sources and  other  major  problem  areas  with 
a  rational  comprehensive  focus.  No  such 
conmalttees  exist  at  the  present  time.  We 
may  want  to  propose  Incorporation  of  a 
"future  Impact  statement"  In  committee  re- 
ports on  legislation,  or  the  creation  of  a 
broad -ranging,  forward-looking  committee 
on  national  goals,  or  both.  'Whatever  we  do, 
I  believe  It  Is  essential  for  Congress  to  take 
lt3  full  share  of  responsibility  for  anticipat- 
ing and  avoiding  crises.  Just  as  we  must 
strengthen  the  Congressional  capacity  to  look 
back  and  review  and  monitor  through  Con- 
gressional oversight  the  programs  of  the  past, 
we  must  equally  develop  the  practice  of  look- 
ing ahead  to  better  anticipate  and  address 
the  problems  of  the  future. 

In  structuring  ourselves  for  crisis  avoid- 
ance, we  must  keep  centrally  In  mind  the 
nature  of  man  as  It  Is  expressed  In  our 
founding  documents.  It  is  vital  that  we  strive 
to  keep  at  a  maximum  the  opportunities  for 
free  choice.  To  do  that  requires  presenting 
hard  choices  early,  while  they  still  exist.  For 
there  Is  no  such  thing  as  "no  choice."  If  the 
people  are  not  given  "an  opportunity  to  de- 
cide in  advance,  then  the  gdvernment  will 
have  to  impose  restrictions  more  or  less  by 
flat.  And  the  result  will  be  to  estrange  g:ov- 
emment  ever  more  from  the  consent  of  the 
governed. 

In  Iowa  we  have  made  an  Important  start. 
The  Iowa  F^iture  Conference  which  I  origi- 
nally proposed  begins  in  January.  This  con- 
ference can  help  us  get  ahead  of  the  onrush 
of  change  and  shape  the  future  to  our  own 
objectives,  and  not  Juat  have  the  worst  fu- 
ture because  we  do  nothing  to  Influence  and 
determine  Its  design. 

I  believe  It  would  be  u.'^ful  to  attempt  to 
have  a  national  Congress'  and  People's  Con- 
ference, perhaps  as  part  of  our  bl-centennlal 
program,  on  our  country's  goals,  priorities 
and  national  purpose. 

Considering  the  primacy  of  the  Issue  of  our 
priorities — what  do  the  people  really  want  for 
our  country  In  the  years  ahead,  and  what  are 
they  willing  to  support  for  our  national 
goals,  and  what  must  we  do  now  to  achieve 
them  tomorrow?  I  think  It  Is  high  time  that 
we  should  devote  a  major  national  effort  to 
determining  such  an  agenda  and  action  pro- 
gram. 
•,  f  Ki  this  time  of  national  Introspection  and 
soul-searching  which  Is  resulting  from  the 
'  'V  political  scandals  that  have  stunned  the  na- 
tion. I  believe  It  Is  especially  Important  to 
get  a  serious  national  dialogue  going  on  this 
basic  subject.  What  Is  our  vision  for 
America's  future? 

In  a  free  society,  no  small  group  within 
that  society,  however  benlgnly-lntentloned. 
should  be  permitted  to  select  and  Implement 
our  national  goals. 

This,  beyonc^  any  doubt.  Is  the  people's 
prerogative.  Otherwise  we  have  forfeited  per- 
haps our  most  basic  right  tts  a  people — the 


right  to  choose  the  kind  of  country  we  want 
America  to  be. 


CHOOSING  A  VICE  PRESIDENT 

Mr.  BROCK.  Mr.  President,  we  have 
just  seen  the  swearing  in  of  a  new  Vice 
President  of  the  United  States,  the  first 
to  be  swpm  in  under  the  25th  amend- 
ment to  the  Constitution.  The  line  of 
succession  Is  again  complete.  When 
tragedy  struck  in  Texas  in  1963,  the 
Congress  acted  wisely,  and  Qulckly  with- 
in bounds  of  necessary  debate  and  ques- 
tion, and  approved  the  constitutional 
amendment,  which,  of  course,  was  later 
approved  by  the  necessary  two-thirds  of 
the  States.  Now,  we  njjust  turn  our 
thoughts  to  the  lessons  we  have  learned 
from  the  events  of  the  past  15  months  in 
regard  to  the  actual  selection  of  Vice 
Presidential  candidates  at  our  conven- 
tions. These  should  be  sobering  decisions, 
ones  which  must  be  made  with  care  and 
much  thought,  but  at  the  same  time, 
they  must  be  made  quickly  to  protect 
all  of  the  people  of  this  Nation.  Marquis 
Chllds,  writing  in  the  Washington  Post, 
made  some  very  interesting  observations 
about  history,  and  the  lesson  that  It  has 
taught  us.  I  ask  unanimous  consent  that 
Mr.  Chllds'  article  be  printed  in  the 
Record. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record. 
as  follows: 
Nation  Neecs  a  Bet'ter  Way  To  Choose  Vice 

PRESIDENTS 

(By  Marouls  Chllds) 

One  good  thing  that  can  come  out  of  tCll 
this  grisly  business  Is  some  hard  thinking 
about  how  we  choose  our  Vice  Presidents. 
This  has  been  a  form  of  political  Russian 
roulette  with  luck  more  often  than  not 
against  the  first  party  nulling  the  trigger. 

"Now  if  you  were  to  become  President.  .  ." 
That  is  the  preamble  to  many  of  the  ques- 
tions asked  of  Rep.  Gerald  R.  Ford  (R-Mlch.) 
durlhg  his  confirmation  hearing  before  the 
Senate  Rules  Committee. 

Yoiu  can't  help  wondering  If  that  type  of 
question  was  \  ut  to  Splro  Agnew  when,  to 
the  surprise  of  practically  everyone,  Richard 
NlxoQ  pulle^  bis  name  out  of  his  hat.  The 
Investigation  into  Agnew's  background,  to 
say  nothing  of  his  quallflca^..ons,  must  surely 
have  been  perfunctory  to  have  missed  so 
much  that  was  developed  during  the  criminal 
Investigation  that  ended  with  his  departure. 

Last  year  was  a  bad  vintage  year  for  vice 
presidential  candidates.  Sen.  George  Mc- 
Govern  began  by  picking  Sen.  Thomas  F. 
Eagleton  of  Missouri  to  run  with  him  on  the 
Etemocratic  ticket.  The  choice  seems  to  have 
been  cinched  In  a  telephone  call  with  Eagle- 
ton  answering  In  the  negative  when  asked 
whether  he  had  any  skeletons  In  his  closet. 
After  first  declaring  he  was  for  him  1000 
percent  when  rumors  circulated  of  Eagleton's 
mental  Illness,  McGovern  dropped  him  from 
the  ticket.  The  second  choice  was  Sargent 
Shrlver,  a  loyal  Democrat  who  happened  to 
be  the  last  man  out  of  the  hall. 

The  selection  of  Harry  Truman  to  run 
with  Franklin  Roosevelt  on  the  fourth  term 
ticket  In  1944  could  not  have  been  more  cas- 
ual or  more  politically  dictated.  Rcxisevelt 
had  made  himself  Into  Mr -Wln-The-War 
and  he  didn't  bother  to  come  to  the  Demo- 
cratic convention  In  Chicago,  although  he 
was  In  touch  with  his  political  lieutenant, 
Robert  E.  Hannegan  of  St.  Louis,  the  Demo- 
cratic chairman,  by  telephone.  Hannegan 
was  the  master  manipulator  on  the  spot. 
Supposedly    the    President    had    given    the 


chairman  a  list  of  three  or  four  potential 
Vice  Presidents.  Included  was  the  name  of 
Supreme  Court  Justice  William  O.  Douglas. 
But  no  one  ever  saw  the  list  and  under  Han- 
negan's  management  the  convention  stam- 
I>eded  for  Truman,  overwhelming  the  third- 
term  Vice  President,  Henry  A.  Wallace, 
whose  followers  had  put  on  a  massive  dem- 
onstration. 

Nine  months  later  Roosevelt  was  dead  and 
Truman  was  President  of  the  tJnlted  States. 
Derided  as  an  accidental  President  and  the 
Kansas  Ctly  haberdasher  who  couldn't  even 
run  a  clothing  store,  Truman's  approval  rat- 
ing sank  to  an  all  time  low  of  23.  But  dog- 
gedly he  stuck  to  the  Job,  trusting  foreign 
policy  to  his  Secretary  of  State,  Dean  Ache- 
son,  and  he  began  to  come  back  with  the 
realization  that  he  was  a  better  President 
than  we  were  entitled  to,  given  the  grab  bag 
of  his  selection.  Against  the  smug  prophecies 
of  all  of  us,  he  won  re-election  in  1948,  de- 
feating Thomas  E.  Dewey  of  New  York. 

The  hope  must  be  that  If  Representative 
Ford  should  become  President  he  will  be  an- 
other Trxxmpn.  That  certainly  wUl  be  the 
buildup — It  strong,  modest  man  from 
Grand  Raplus  ready  to  measure  up  to  the 
terrible  responsibility  of  the  most  demand- 
ing office  In  the  world. 

It  should  be  noted,  however,  that  there  are 
significant  differences.  Truman  had  served 
during  World  'War  n  as  the  strong  chairman 
of  the  Senate  war  Investigating  committee. 
That  committee,  by  pounding  on  govern- 
ment bureaucrats  and  war  contractors,  saved 
hundreds  of  millions  of  dollars.  If  only  be- 
catise  the  Congresses  he  has  served  in  have,. 
■with  one  exception,  been  controlled  by  the 
Democrats,  Ford  has  no  such  achievement 
in  his  record. 

Eight  times  In  our  history  Vice  Presidents 
have  inherited  the  office  of  President.  In  two 
instances,  with  the  assassination  of  Abra- 
ham Lincoln  as  the  Civil  War  was  ending 
and  wrlth  the  death  of  Roosevelt  when  the 
massive  problems  growing  out  of  World 
War  n  called  for  experience  and  wisdom, 
this  came  at  moments  of  grave  crisis. 

Surely  never  again  can  a  weary  political 
convention  allow  the  presidential  candidate 
to  pick  an  unknown,  or  a  comparative  un- 
known, out  of  the  hat.  The  chilling  thought 
that  at  any  point  during  the  past  four-and- 
a-half  years  Splro  Agnew  with  his  corrup- 
tion-stained history  might  have  been  the 
ninth  Vice  President  to  Inherit  the  presi- 
dency must  never  be  forgotten. 


PALO  ALTO   SEEKS  ACCESSIBrLITY 

Mr.  PERCY.  Mr.  President,  it  has  re- 
cently been  brought  to  my  attention  that 
the  city  of  Palo  AJto,  Calif.,  is  taking  ac- 
tion to  allow  greater  mobility  for  handi- 
capped people  in  their  community.  The 
city's  plans  include  removing  existin^r 
architectural  barriers  from  streets  and 
buildings  and  encouraging  local  builders 
and  architects  to  produce  new  facilltleB 
that  are  initially  free  of  such  barriers. 

I  understand  that  S.  1105,  a  bill  that 
I  sponsored,  that  is  cosponsored  by  my 
distinguished  colleague  from  Kansas  <  Mr. 
Dole  t  who  has  demonstrated  his  concern 
on  many  occasions,  to  pro\ide  tax  incen- 
tives for  the  removal  of  architectural  and 
transportatlonal  barriers  to  the  hand- 
icapped and  elderly,  has  helped  stur.u- 
late  the  city  of  Palo  Alto  to  undertake 
its  current  endeavors  for  acces-sibillty.  I 
am  pleased  to  know  that  even  though  8. 
nC5  has  not  yet  received  congressional 
action.  It  hsis  already  helped  make  p>eople 
aware  of  the  many  environmental  bar- 
riers that  dailj-  prevent  our  handicapped 


42420 


CONGRESSIONAL  RECORD  —  SENATE 


and  elderly  citizens  from  enjoying  the 
freedom  of  movement  they  deserve. 

I  wish  to  commend  the  citizens  and 
city  government  of  Palo  Alto.  Calif.,  for 
their  enlightened  attitude.  I  hope  other 
communities  in  every  State  will  embark 
on  similar  programs  to  allow  the  handi- 
capped and  elderly  their  rightful  access 
to  the  mainstream  of  our  society. 

I  ask  unanimous  consent  that  a  recent 
article  In  the  Palo  Alto  Times  describing 
the  city's  new  efforts  to  become  accessible 
be  printed  in  the  Record. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Rzcoro. 
as  follows: 
Whxblchais  Totm  Shows  Pai,o  Ai.to  Om- 

CXALS    NSED     ro«     MODiyTIHO     BtTTLDINGS    TO 

Hkij»  Hanbic.*pp«d 

(By  Dave  Puller) 
Alec  Andrufl,  a  robust  city  staffer  In  bU 
208,  Inched  hl«  wheelchair  up  to  a  four-Inch 
curb  In  front  of  the  Community  Cultural 
Center  In  Palo  Alto  and  strained  to  hla  phys- 
ical limit  to  moTe  the  chair  up  the  curb. 

A  few  seconds  after.  Andrua  and  his  wheel- 
chair were  lying  in  a  heap  In  the  street. 

The  mishap  was  minor  for  Andrus  becauM 
he  was  only  experimenting  with  the  use  of 
the  wheelchair  as  one  of  20  key  city  ofllctals 
,  who  are  involved  Ln  eliminating  architectural 
barriers  which  make  public  buildings  In- 
accessible to  the  handicapped. 

But  for  someone  who  is  confined  to  a 
wheelchair,  as  Andrus  Is  not.  the  accident  at 
the  Cultural  Center  could  have  been  serious. 
Indeed. 

.\ndrus  was  able  to  pick  himself  up.  dust 
off  his  clothes  and  easily  sit  back  down  in  the 
wheelchair.  A  permanently  or  even  tem- 
porarily disabled  person  would  have  had  to 
wait  for  otliers  to  help  him. 

Andrus  believes  his  accident  dramatically 
dramatizes  the  plight  of  many  handicapped 
persons  who  often  are  forgotten  by  architects, 
builders  and  city  officials  who  are  now 
charged  by  law  with  ensuring  accessibility 
by  the  hacdlcapped[to  public  buUdlngs. 

■That  curb  was  like  a  wall  to  me.  I  couldn't 
get  past  It  and  all  my  efforts  to  move  for- 
ward only  ended  up  in  a  repulsion  back- 
ward." Andrus  said. 

But.  like  the  other  officials  taking  part  In 
Saturdays  wheelchair  tour  of  public  build- 
ings, Andrus  is  determined  to  move  ahead 
with  a  four-phase  plan  for  allowing  handi- 
capped persons  greater  mobility  In  Palo  Alto. 
The  flrst  phase  has  been  several  months  of 
study  by  a  clty-appoLnted  group  Including 
membei^of  the  city  staff  and  representatives 
of  orgamzatlons  for  the  handicapped. 

The  study  culminated  Saturday  In  a  tour 
by  wheelchair  of  the  Community  Cultural 
Center  on  Newell  Road  and  City  Hall  in 
downtown  Palo  Alto. 

One  of  those  taking  part  was  Mayor  mrke 
Comstock.  "Tou  never  realize  until  youTe  in 
the  wheelchair  what  planning  and  physical 
exertion  It  takes  to  make  even  tb«  simplest 
trip."  Comstock  commented. 

"It  takes  muscle-power,  timing  and  co- 
ordination to  use  most  buildings."  he  said. 

Comstock  thinks  that  architectural  bar- 
riers have  come  about  because  "a  lot  of  peo- 
ple are  indifferent  to  the  problem  It's  mostly 
because  of  a  lack  ot  Information,  not  mall- 
etousneas."  be  said. 

"Once  people  become  aware  of  theee  bar- 
riers, the  normal  human  sensitivities  take 
over  and  there  Is  no  -eslatance  to  getting  rid 
of  the  problems."  he  said. 

Specifically,  some  of  the  most  serious  prob- 
lems are: 

Curbs  In  the  pathways  of  wheelchairs. 
Doors  too  narrow  for  wheelchairs  or  too 
heavy  for  someone  using  crutches 
Steep  steps  on  long  flights  of  steps. 


December  19,  197S 


Bulldlnss  where  escalaton,  Instaad  of  els- 
vators.  are  the  main  means  of  Unking  stories. 

Bathrooms  where  toUet  stalls  are  too  nar- 
row to  maneuver  a  Wheelchair  or  where  fix- 
tures are  too  high  to  reach  from  the  chair. 

Parking  spaces  too  narrow  for  a  psirapleglc 
driver  to  unfold  his  wheelchair. 

Telephone  booths  which  have  not  been 
buUt  with  the  handicapped  In  mind. 

The  second  phase  of  the  city's  architec- 
tural barrier  program  Is  to  begin  In  two  or 
three  weeks  when  approximately  911.000  in 
contracts  will  be  let  for  giving  at  least  mini- 
mal accessibility  to  the  Cultural  Center.  City 
Hall,  libraries  and  other  city  buUdlngs 

Rampe  will  be  built  to  entrances.  Tels- 
phones  will  be  lowered.  Bathrooms  wlU  be 
modified.  Where  accessibility  to  the  handi- 
capped has  been  provided,  a  sign  with  a  logo 
representing  a  man  in  a  wheelchair  will  be 
placed. 

The  third  phase  of  the  program  wUl  be 
hundreds  of  curb  cuts  at  crosswalks  which 
will  make  it  possible  for  persona  In  wheel- 
chairs to  get  around  the  downtown  area  and 
elsewhere  more  easily 

The  fourth  phase  Is  to  be  an  "outreach" 
In  which  city  officials  will  contact  building 
trades  people,  shopping  center  managers,  res- 
taurant owners  and  others  to  enlist  their 
cooperation  U^  modifying  their  buildings. 

'"Fot  considerably  less  than  Ir  of  con- 
struction cost,  architectural  barriers  can  be 
era-sed  on  the  drafting  board, "■  according  to  a 
National  League  of  Cities  study  quoted  In 
the  city's  new  brochure  "designing  for  the 
physically  disabled." 

The  brochure  will  be  distributed  to  archi- 
tects and  others.  It  outlines  sUte  laws  on 
accessibility  and  offers  suggestions  for  allml- 
natlng  barriers. 

Palo  Alto  planners  believe  nearly  all  build- 
ers will  cooperate,  but  if  they  dont,  the  city 
Is  prepared  to  put  Its  full  efforts  into  a  build- 
ing Inspection  program  aimed  at  forcing 
compliance. 

Mai;y  of  the  officials  In  the  Saturday 
wheelchair  tour  were  the  buUdmg  inspectors 
who  win  be  enforcing  the  barrier  elimination 
laws. 

One  of  them.  Glen  Sund.  said  the  day  had 
been  "a  real  eye  opener.  I  never  realized  that 
a  UtUe  bump  could  make  such  a  big  dif- 
ference. But  one  thUigs  for  sure— I'll  do  a 
lot  more  observing  to  see  that  these  things 
are  taken  care  of  from  now  on." 


THE  ARABL\iV  FANTASY 

Mr.  ABOUREZK.  Mr.  President.  In  an 
article  entlUed  "The  Arabian  Fantasy," 
which  appears  in  the  January  issue  of 
Harpers  magazine,  Christopher  Rand 
presents  an  mclslve  and  scholarly  anal- 
ysis of  the  dealings  of  the  major  oil  com- 
panies In  the  Middle  East. 

Mr.  Rand  points  out  that  there  Is  no 
International  shortage  of  crude  oil.  and 
that  while  the  October  war  in  the  Middle 
East — 

Has  created  a  few  problems  with  the  logis- 
tics of  oU  supply  .  these  have  aggravated  the 
American  public  more  than  they  have  Incon- 
venienced the  American  oil  companies. 

The  article  answers  many  questions 
about  the  real  nature  of  the  present  fuel 
shortage,  and  leaves  no  doubt  that  the 
major  oil  companies  are  not  sharing  the 
burden  of  the  "energy  crisis"  to  any  sub- 
stantial degree. 

I  ask  unanimous  consent  that  "The 
Arabian  Fantasy"  by  Christopher  Rand 
be  printed  in  the  Rkcord. 

There  being  no  objection,  the  article 


was  ordered  to  be  printed  in  the  R«comD. 
as  follows : 

Thx  AaABiAK  PiLicrasT:  A  DnsnmKO  Virw 
OF  THX  OtL  Caisis 
(By  Christopher  T    Rand) 
Chrlsrtopher  T.  Rand  Is  a  Mlddls  East  spe- 
cialist who  has  worked  for  Standard  OU  of 
California  and  Occidental  Petroleum.  He  baa 
translated  Arabic  and  Persian  materials  for 
the   US.   Department   of   Commerce,   and    Is 
now    writing    a   book    entitled    OU    and    the 
Koelem  Elast. 

The  present  calamity  of  the  oil  or  energy 
crisis  has  become  widely  accepted  as  an  arti- 
cle of  the  popular  faith.  Everybody  talks 
about  the  crisis  as  if  it  wars  the  Implacable 
nemesis  from  which  no  man  can  escape,  and 
If  everybody  says  so  (not  only  the  major  oU 
companies,  but  also  the  environmentalists, 
the  VS.  government,  and  the  citizen  unable 
to  heat  his  house),  then  it  must  be  true. 
What  other  misfortune  could  possibly  explain 
the  higher  prices  for  gasoline  and  the  sud- 
den shortage  of  winter  fuel?  Does  not  the 
United  States  possess  vast  natural  resources 
and  an  Incomparable  genius  for  capital  for- 
mation and  technological  Invention?  If  so, 
how  else  could  It  have  been  ensnared  In  the 
present  crisis  unless  through  the  machina- 
tions of  sly  and  resentful  Arabs? 

For  the  past  few  years,  the  major  oU  com- 
panies have  spent  considerable  sums  of 
money  advertising  a  vision  of  the  apocalypse. 
The  October  w>r  between  some  Arabs  and  ail 
Israelis  seemed  to  testify  to  the  truth  of  this 
vUton.  The  embargoes  placed  on  Arab  oil 
shipments  to  the  United  States  and  the  Neth- 
erlands, together  with  unilateral  price  raises 
and  threats  of  reduced  production,  provoked 
a  further  outpouring  of  oU  Industry  bulletins 
announcing  the  approach  of  an  energy  crisis 
akin  to  the  millennial  scourge  of  Huiu  from 
the  Asiatic  steppes.  The  bulletins  have  been 
confirmed  by  the  proper  authorities  in  Wash- 
ington, and  they  have  been  amplified  In  the 
hollow  echo  chamber  of  the  national  press. 
The  official  broadcasts  resolve  Into  varia- 
tions of  what  might  be  called  the  Arabian 
fantasy  The  editorial  writers — unchallenged 
but  not  encouraged  by  company  spokesmen — 
explain  that  the  Arab  states  (principally 
Saudi  Arabia.  Kuwait,  Libya.  Iraq,  and 
Iran)',  control  the  bulk  of  the  world's  proven 
oU  reserves,  and  that  they  have  become  rich 
beyond  all  reason  or  understanding.  The 
demagogues  among  them  entertain  radical 
and  dangerous  political  Ideas  about  the  sanc- 
tity of  Western  economic  Interests,  and  they 
refuse  to  recover  their  oil  in  ways  conve- 
nient to  the  major  tutematlonal  oU  com- 
panies In  their  more  ominous  moments  they 
threaten  to  shut  down  the  fiow  of  oU  unlev 
the  Western  nations  accede  to  their  demands 
against  Israel.  The  Western  nations  must 
prepare  for  the  worst,  and  the  worst  un- 
doubtedly wUl  be  expensive.  Thtis,  the  need 
for  rationing  and  higher  costs  to  the  con- 
sumer. 

WHAT  nnaoT  caisisr 
Although  sufficient  to  Its  melodramatic 
purpose,  the  prevaUlng  rhetoric  faUs  to  an- 
swer a  number  of  awkward  questions,  espe- 
cially now  that  the  October  war  has  come 
and  gone  Few  people  point  out  that  In  the 
past  year  the  major  oU  companies  have  re- 
ported enormous  profits,  or  that  they  have 
enjoyed  a  policy  of  generous  forbearance  on 
the  part  of  the  Nixon  Administration,* or  that 
they  appear  to  get  along  quite  successfully 
with  even  the  most  radical  of  Arab  Rovem- 
menu  Worse,  virtually  nobody  explains  that 
the  energy  crisis  Is  a  crisis  taking  place  In 
time  future  rather  than  time  present. 

Even  October's  war  was  not  the  vengeful 
uprising  agilnjt  the  West  that  the  American 

Footnotes  at  end  of  article. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42421 


Information  media  repres'iit^d  it  to  bo  WTien 
the  war  broke  out,  the  Ara^s  st.>p[>fcl  virt'.jal- 
ly  all  criticism  of  American  action  or  ptoUcy, 
Arab  officials  did  not  claim  that  American 
troops  or  pUots  participated  in  the  war; 
Beirut  newspapers,  even  whUe  publishing 
photographs  of  bombed-out  buUdlngs  In 
Damascus,  quoted  the  Lebanese  premier  to 
the  effect  that  America  had  Informed  him 
that  It  would  make  the  necessary  efforts  to 
ensure  Lebanese  security  against  Israel.  King 
Faisal  of  Saudi  Arabia  had  already  upped 
Aramco's  production  by  a  million  barrels  a 
day  during  the  hot  months  of  July  and  Au- 
gust, thus  allowing  him  to  reduce  production 
when  the  war  began  and  sti;:  retain  normal 
supply  levels  for  the  year  TTie  war  has  creat- 
ed a  few  problems  with  the  logistics  of  oU 
supply,  but  these  have  aggravated  the  Amer- 
ican public  more  than  they  have  Inconven- 
ienced American  oU  companies.  For  the  time 
being,  the  world's  supply  of  oU  far  exceeds 
the  world's  demand,  and  so  the  crisis  must 
be  dlBoemed  In  a  network  of  theoretical  lines 
converging  at  imaginary  points  In  time  fu- 
ture. The  oU  companies  therefore  project  a 
rate  of  Increasing  demand  for  oU,  and  then 
they  project  a  rate  of  declining  supply  When 
these  two  lines  Intersect,  presumably  In  the 
early  igsOs.  the  actual  crisis  (as  opposed  to 
the  abstract  or  hypothetical  crisis)  will  be 
unloosed  upon  an  Innooeij^  and  law-abiding 
world. 

This  is  what  the  oU  companies  tell  the 
public,  not  what  they  themselves  know  to  bo 
the  case.  In  the  Middle  East  they  play  the 
part  of  middlemen  rather  than  princlpsas, 
and  In  their  various  dealings,  both  with  the 
Arabs  and  with  each  other,  they  display  the 
devious  cunning  that  characterizes  the  deal- 
ings of  middlemen  In  any  trade.  The  instabil- 
ity of  Arab  politics  once  frightened  them  (so 
much  money  Invested  In  such  unsafe  places, 
etc.),  but  after  the  Arab-Iaraell  war  of  1967 
and  the  closing  of  the  Suez  Canal  they  be- 
gan to  understand  this  instability  aa  a 
chronic  condition  much  less  harmful  than  It 
seemed.  They  found  that  they  could  bear  the 
cost  of  shipping  oil  around  Africa  Instead  of 
through  the  Suez  Canal;  and  the  construc- 
tion of  supertankers,  as  well  as  the  hurried 
discovery  of  new  reserves  In  the  North  Sea 
and  Prudhoe  Bay,  Alaska,  obliged  them  to 
become  more  Independent  of  the  Arabs.  As 
a  result  of  their  efforts,  the  Inventory  of  the 
world's  available  fuel  has  been  increasing 
rather  than  diminishing,  even  when  meas- 
ured against  the  annual  rise  In  the  rate  of 
the  world's  consumption.  The  Inventory  has 
become  so  extensive  that  It  has  become  a 
luxury,  or  at  t)est  a  waste  of  time,  for  most 
people  to  worry  about  lt.« 

The  oU  companies  obviously  wwry  about 
It,  but  their  worries  have  to  do  not  so  much 
with  the  supply  of  oU  as  with  the  cost  at 
which  they  can  trade  It  It  Is  the  disparity 
between  these  two  concerns  that  gives  rise 
to  the  convenient  mlsperceptlon  of  the  oU 
crisis.  Anybody  who  hopes  to  make  sense  of 
the  present  confusion  must  bear  in  mind 
three  primary  facts: 

( 1 )  There  Is  a  trecnendous  volume  of  oil  in 
the  world.  (The  oU  companies  publish  decep- 
tively conservative  figures  on  this  subject;  as 
an  example.  British  Petroleum  In  1971  esti- 
mated the  proven  world  reserves  at  about  641 
bUUon  barrels;  figuring  on  an  annua)  con- 
sumption rate  of  18  billion  barrels,  this  leaves 
enough  for  at  least  thirty  years  l 

(2)  There  Is  a  tremendous  difference  be- 
tween the  cost  of  producing  oil  and  the  price 
at  which  It  sells. 

(3)  The  InhlblUona  against  vengeful  po- 
litical acts  on  the  part  of  the  suppliers  de- 
pend not  so  much  on  fear  of  mUltary  repris- 
als as  they  do  on  the  Implications  of  facts  1 
and  2 

The  fan  of  volume  Is  the  easiest  to  estab- 
Uah.  The  largest  reservoirs  of  oU  In  the  wortd 


Footnotes  at  end  of  article. 


are  those  In  Saudi  .Arabia  at  least  160  billion 
barrelsi  ar.d  those  m  Iran  at  eaai  100  bU- 
llon  barrels).  Between  them  these  two  na- 
tions possess  the  bulk  of  the  oU  in  the 
Middle  ISast.  and  dominate  the  entire  subject 
of  Middle  Eastern  oU.  They  lie  opposite  one 
another  across  about  half  the  length  of  the 
Persian  Gulf,  but  they  have  llUle  In  common 
except  a  mutual  distrust.  The  majority  of 
people  In  Iran  speak  Persian  or  Turkish,  they 
know  Arabic  only  as  a  sacred  language,  and 
they  have  vlrtuaflly  no  relations  of  any  kind 
with  the  Arab  world.  The  oU  reserves  In  both 
coimtrles  hhve  been  developed  and  exploited 
by  two  combinations  of  Western  oU  cotnpa- 
nles,  the  combination  In  Iran  being  known 
as  "the  Consortium."  and  the  one  In  Saudi 
Arabia  as  "Aramco."  The  seven  major  oil 
companies  (BrltUh  Petroleum.  Royal  Dutch 
Shell,  Texaco,  MobU,  Exxon,  Standard  OU  of 
California,  and  Gulf)  take  part  In  both  com- 
binations, and  it's  because  of  these  partner- 
ships that  they  dominate  the  international 
oil  trade .= 

Although  both  Saudi  Arabia  and  Iran  con- 
tribute a  huge  volxmie  of  oil  to  the  market, 
the  oil  companies  choose  to  give  much  more 
publicity  to  the  reserves  In  Saudi  Arabia. 
They  Imply  that  if  only  they  could  be  assured 
of  access  to  the  Saudi  Arabian  fields,  then 
they  would  feel  far  more  secure  about  the 
reserves  elsewhere  In  the  world.  As  a  meas- 
ure of  the  quantity  of  Saudi  Arabian  oil, 
consider,  for  example,  the  Ghawar  field; 
roughly  155  miles  long  and  In  some  places 
22  mUes  wide,  this  field  still  contains  as 
much  oil  as  has  ever  been  consumed  In  the 
United  States. 

The  Iranian  fields  contain  comparable 
amounts  of  oU.  but  the  oU  companies  prefer 
to  underestimate  their  volume.  The  varlotia 
spokesmen  usually  explain  that  Iranian  pro- 
duction has  been  declining,  that  It  has 
passed  Its  maturity,  that  It  never  wUl  exceed 
8  million  barrels  a  day.  This  may  be  true  of 
the  smaller  fields  that  have  been  onstream 
since  the  19308,  but  there  are  other  fields  yet 
to  achieve  full  production  and  a  number  of 
enormous  fields,  discovered  In  the  past  dec- 
ade or  so,  that  have  yet  to  be  tapped.  The 
largest  mature  fields  are  those  of  Agha  Jarl 
and  Gach  Saran,  which,  although  Immense, 
have  no  more  than  about  forty-five  wells, 
spaced  much  farther  apart  than  wells  In 
American  fields;  many  of  these  wells  have 
the  capacity  to  produce  ICKD.OOO  barrels  a  day. 
Other  enormous  fields  recently  have  been 
brought  onstream  at  Marun,  Ahvaz.  Blnak, 
KaranJ,  and  BIbl  Haklmeh— each  one  of 
them  as  large  as  any  field  In  the  United 
States.  Equally  large  fields  remain  "on  hold" 
at  Mansurl.  KUur  Karlm,  Oolkharl,  Ab  Tey- 
mui,  and  Susangerd. 

The  waters  of  the  Persian  Oulf  also  con- 
ceal at  least  one  Immense  accumulation  of 
oil.  In  what  Is  known  as  the  Pereydoon -Mar- 
Jan  field  The  Iranians  and  the  Saudis  share 
the  field,  but  potential  production  In  only 
the  Iranian  half  of  It.  at  Pereydoon,  has  been 
estimated  at  1  mUUon  barrels  a  day.'  A  num- 
ber of  people  In  the  oU  business  assess  the 
reserves  of  the  entire  field  at  about  30  bUUon 
barrels. 

The  oU  companies  do  not  like  talk  about 
Increasing  production  In  Iran  because  It  Is 
more  expensive  than  Increasing  production 
In  Saudi  Arabia.  Before  the  Tehran  and  Trip- 
oli price  agreements  in  late  1970  and  early 
1971.  the  companies  figured  the  per  barrel 
profit  on  Saudi  Arabian  oU  at  between  50 
and  53  cents  a  barrel;  In  Iran  the  compara- 
ble figure  was  between  43  and  45  cents  a 
barrel  for  crude  oil  of  the  same  specific  grav- 
ity. The  oil  pumped  out  of  the  ground  In 
Saudi  Arabia  Is  the  cheapest  In  the  world  for 
Its  volume  It  costs  4  8  cents  a  barrel,  or  one- 
tenth  of  a  cent  a  gallon,  to  load  Into  a  tanker. 
Although  Iranian  wells  Individually  produce 
twice  as  much  oU  a  day.  It  costs  roughly  13 
cents  a  barrel  to  load  Into  a  tanker.  The  Ira- 
nian wells  are  more  distant  from  water  than 


those  to  Saudi  A'^bla;  IM  JiBelines  cross 
mountain  .-^n^es  rather  tlHBErBM  sand  and 
the  "drive"  provided  by  the  water  latent  un- 
der the  oil  reserv..lr?  ■.£  generally  not  ae  great 
In  Iran  as  it  is  in  Saudi  Arabia. 

Which  probably  explains  why  the  oU  com- 
panies prefer  to  turn  the  conversation  to  the 
wonders  of  Saudi  Arabia.  They  say  that  only 
in  Saudi  Arabia  can  production  be  raised  to 
20  million  barrels  a  day,  and  then  they  go 
or.  to  develop  the  terrible  fantasy  about  King 
Faisal  suddenly  deciding  to  quit  the  busi- 
ness if  he  doesn't  find  his  customers  con- 
genial. 

But  Faisal  continues  to  raise  production 
whenever  he  can  do  so,  and  the  fantasy  omits 
a  simple  calcixlatlon  in  arithmetic.  If,  for 
Instance,  the  oil  companies  hold  their  off- 
take In  Iran  to  8  million  barrels  a  day  and  at 
the  same  time  Increase  their  offtake  In  Saudi 
Arabia  to  20  million  barrels  a  day.  they  will 
save  about  8  cents  a  barrel  on  every  barrel 
produced  In  Saudi  Arabia  Instead  of  In  Iran. 
Divided  by  two  for  tax  purposes,  and  multi- 
plied by  12  mUllon  barrels  a  day  by  365  days 
in  the  year,  the  oU  companies  achieve  an 
annual  saving  of  $166  mlUion.  This  Is  pre- 
cisely what  they  are  In  business  to  do. 
A  QuisTioN  or  PROFrrS 
It  Is  this  kind  of  calculation  that  Illumi- 
nates the  difference  between  the  oU-company 
definition  of  a  crisis  and  ths  connotations 
ordinarily  attributed  to  the  same  word  by 
people  who  buy  gas  or  heating  fuel.  The 
companies  define  crisis  not  In  terms  of  avail- 
able resources  but.  rather.  In  terms  of  when 
those  resources  can  t>e  delivered,  in  what 
quantities,  and  at  what  cost.  The  Uluslon  of 
crisis  helps  them  to  exact  further  con- 
cessions from  alarmed  politicians  in  Wash- 
ington. If  the  crisis  can  be  presented  as  a 
national  emergency,  then  how  can  the  pa- 
triotic Senator  refuse  to  grant  hurried  per- 
mits for  drUllng  off  the  Atlantic  coast,  for 
alleviating  pollution  controls,  for  whatever 
might  hasten  the  delivery  of  energy  to  a  suf- 
fering  electorate? 

By  the  early  1950s,  the  oU  companies  and 
the  oil-producing  nations  had  established  a 
protected  market  that  has  now  begun  to 
collapse.  Twenty-five  years  ago  the  oil  com- 
panies clearly  understood  that  their  dealings 
with  the  volatUe  rulers  of  the  Middle  East 
(or.  Indeed,  with  the  nilers  of  any  oil-pro- 
ducing state,  such  as  Mexico  or  Venezuela) 
could  easUy  deteriorate  into  bitter  disputes. 
They  accepted  the  Middle  East's  traditional 
aversion  to  the  West,  and  they  assumed  with 
whom  to  bargain;  they  further  assumed  that 
Arabs  could  be  extremely  difficult  people  with 
whom  to  bargain;  they  further  assumed  that 
this  unpleasantness  sooner  or  later  was 
bound  to  make  Itself  manifest,  no  matter 
what  the  pretext.  The  pompanles,  therefore, 
hoped  to  limit  all  negotiations  to  matters 
having  nothing  to  do  with  politics.  They 
chose  to  wall  themselves  off  from  the  com- 
munities In  which  they  operated,  and  they 
kept  themselves  aloof  from  the  social  or 
political  concerns  that  threatened  to  provoke 
unseemly  Incidents.  With  this  strategy  in 
mind,  the  oU  companies  confined  their  dis- 
cussions to  relatively  small  fiscal  points 
within  a  narrowly  legalistic  context.  Oil 
negotiation  In  the  Middle  East  over  the  past 
twenty  years  thtis  became  a  continuous  de- 
bate over  such  points  as  royalty  expensing, 
acceleration  of  tax  payments,  gravity  allow- 
ances, rates  of  depreciation,  port  and  cus- 
toms duties,  marketing  allowances,  and  al- 
lowances for  the  devaluation  of  foreign  cur- 
rencies. An  entire  chapter  of  the  recent  his- 
tory could  be  written  on  the  question  as  to 
whether  forty-degree  Zakum  oU  should  be 
taxed  at  the  same  rate  as  thirty-seven-de- 
gree Umm  Shaif  oil.  The.se  questlcns  often 
Involved  millions  of  dollar's,  but  they  rarely 
touched  on  social  or  political  events  taking 
place  beyond  the  compoands  of  the  oU  In- 
stallations. 


42422 


s. 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


In  return  for  this  convenience,  the  Middle 
Eastern  rrovernments  received  munlflcent 
royaltleb,  also  known  as  "economic  rents," 
computed  on  the  txuls  of  the  difference  be- 
tween the  cost  of  producing  oil  and  the  price 
at  which  It  could  be  sold.  The  companies 
could  afford  to  pay  these  rents  because,  by 
paying  large  sums  of  money  to  Middle  East- 
ern governments,  they  could  run  their  opera- 
tions in  Europe  and  the  United  States  at  a 
low  rate  of  profit,  or  even  at  an  apparent  loss. 
They  could  also  avoid  paying  taxes  to  the 
United  States  government.  The  companies 
Insisted  on  only  one  condition:  that  the 
Middle  Eastern  countries  refer  to  these  pay- 
ments as  "tajtes"  rather  than  as  "royalties  ' 
Before  World  War  II.  and  In  most  places 
until  about  1950  or  1951,  the  Middle  Eastern 
governments  earned  a,  royalty  of  from  12  to 
^  18  cents  a  barrel.  The  rulers  were  content 
with  this  arrangement  until  they  discovered 
that  their  oU  sold  for  at  least  sI.y  times  that 
price  on  the  world  maricet.  By  the  middle 
1950s,  various  political  Qg-ures  In  the  Arab 
world  began  to  understand  that  oU-company 
executives  were  easily  frightened,  and  so  they 
began  talking,  or.  preferably,  screaming 
about  the  shabby  terms  of  their  concessions. 
They  raised  public  and  impassioned  com- 
plaints whenever  possible,  and  by  so  doing 
they  threatened  to  wreck  the  Industry  policy 
of  nonengagement.  Their  harangues  gradu- 
ally Induced  the  companies  to  pay  higher 
rates  of  royalty,  and  they  became  the  bene- 
ficiaries of  one  of  the  weirdest  pAictlces  In 
the  annals  of  International  commerce. 

This  practice  accounts  for  the  inffated  and 
fictitious  price  at  which  Middle  Eastern  oil 
sells  on  the  world  market.  The  fictitious 
price  has  been  in  effect  since  before  World 
War  II.  when  the  center  of  gravity  in  the 
petroleum  export  trade  was  to  be  fotind  in 
the  Oulf  of  Mexicia  rather  than  in  the  Per- 
sian Gulf.  The  trade  shifted  eastward  in  the 
late  1940s  with  the  first  development  of 
prolific  fields  in  Kuwait.  Saudi  Arabia,  and 
southern  Iraq.  In  those  days,  the  major  ex- 
porting companies  controlled  even  more  of 
the  trade  than  they  do  now.  and  they  sold 
almost  exclusively  to  themselves  and  to  each 
other,  in  both  Europe  and  the  United  States. 
They  could  set  the  price  largely  as  they 
pleased,  but  for  reasons  of  convenience  they 
agreed  to  set  it  on  the  basis  of  the  old  rates 
that  had  prevailed  in  the  Gulf  of  Mexico. 
This  was  done  even  though  the  new  and 
abundant  oil  In  the  Persian  Gulf  cost  far 
less  than  the  fixed  price  at  which  the  com- 
panies agreed  to  trade  it  to  each  other.  The 
barrel  of  oil  shipped  from  Saudi  Arabia  might 
cost  4  6  cents  to  load  Into  a  tanker  at  Bas 
Tanura.  but  It  would  be  priced  in  Europe  as 
If  it  were  the  most  expensive  barrel  of  the 
same  kind  of  oil  delivered  from  Texas.  Other 
"costs"  (depletion,  depreciation,  and  amorti- 
zation) would  be  added  to  the  company's 
actual  expenses  of  4.6  cents  to  provide  fur- 
ther tax  deductions 

The  posted  price  wa"*  considered  extrava- 
gant m  1950.  but  by  i960  it  had  become  so 
remote  from  market  conditions  that  the  com- 
panies with  Interests  in  the  Persian  Oulf 
tried  to  lower  It.  This  decision  proved  calam- 
itous. By  trying  to  bring  the  price  of  oU  Into 
line  with  what  U  would  bring  from  a  custo- 
mer willing  to  buy  it  (an  American  fuel-oil 
dealer,  for  Instance,  or  the  government  of 
Ceylon,  or  an  Italian  petrochemical  firm), 
the  oil  companies  set  off  the  enraged  out- 
cries of  their  neces'iary  partners  In  the  Mid- 
dle East.  The  Arabs  and  the  Iranians  had 
been  receiving  revenue  calculated  on  the 
basis  of  the  posted  nrlce.  and  they  refused  to 
let  It  drop.  In  their  rage  and  anxiety  they 
formed  the  Organization  of  Petroleum  Ex- 
porting Countries,  and  this  combination  has 
since  become  the  Isane  of  the  oil  companies. 
The  first  agreements  within  OPEC  stopped 
the  downward  trend  in  prices  and  thereby 
Introduced  a  principle  that  has  yet  to  be 
publicly  questioned  by  any  of  the  major  oil 


companies:  the  tax-reference  price  on  Per- 
sian Oulf  oil  (or  on  any  other  oU  produced 
by  the  members  of  OPEC)  can  never  drop. 
The  corollary  to  that  principle  states  that 
revenues  paid  to  the  governments  In  the  Mid- 
dle East  can  only  rise 

It  was  the  weakness  of  the  oU  companies 
that  brought  about  the  organization  of 
OPEC  First  the  companies  tried  to  lower  the 
old  price,  then  they  couldn't  agree  on  a  line 
of  bargaining  with  the  Arabs.  And  yet  It  Is 
precisely  these  people  who  attribute  an  al- 
most godlike  omnipotence  to  OPEC  The  oil 
companies  at  least  share  similar  political  In- 
terests, and  they  have  far  more  In  common 
wKh  one  another  than  do  the  several  fac- 
tions within  OPEC.  The  assignment  of  magi- 
cal force  to  OPEC  also  presents  a  major  con- 
tradiction within  the  structure  of  the 
Arabian  femtasy  so  widely  proclaimed  in  the 
American  press  The  emotional  aspect  of  that 
fantasy  portrays  the  Arabs  as  childish,  petu- 
lant, and  treacherous,  but  the  analytical  as- 
pect of  the  fantasy  shows  them  as  Idealistic, 
fearless,  and  beyond  corruption.  The  histori- 
cal evidence  suggests  that  OPEC  will  collapse 
for  the  same  reason  that  the  oil-company 
front  collapsed. 

The  system  of  fictitious  prices  worked  so 
well  for  tw«;nty  years  that  it  gave  the  Middle 
Eastern  governments  great,  and  constantly 
Increasing,  sums  of  money.  Contrary  to  popu- 
lar misconception,  much  of  this  money  found 
Its  way  Into  the  local  economy,  and  wher- 
ever It  has  been  present  imoet  notably  In 
Saudi  Arabia  and  Iran)  It  has  strengthened 
the  society.  The  e.^corbltant  sums  of  money 
presented  few  difficulties  as  long  as  the  sys- 
tem remained  Intact,  as  long  as  there  re- 
mained an  oligopoly  of  oU  supply. 

It  was  not  just  an  oligopoly  of  companies 
but  also  of  system.  The  companies  had  no 
more  freedom  within  the  system  thsn  did  the 
oil-producing  states.  They  did  not  dare  allow 
a  drop  In  the  posted  price  (or.  to  use  the  pre- 
ferred euphemism,  the  tax  rate)  because  they 
knew  that  If  they  did  so  the  Arab  states  would 
promptly  .lelze  their  holdings.  The  suppos- 
edly dreadful  consequences  of  such  a  doom 
terrified  a  generation  of  oil  executives  But 
now  this  doom  has  come  to  pass,  and,  lo  and 
behold.  It  Isn't  as  dreadful  as  everybody  had 
foretold.  The  companies  have  given  up  larger 
and  larger  shares  of  their  concessions,  but 
these  proved  to  be  nothing  more  than  pieces 
of  paper  assigning  them  the  right  to  produce 
the  oil  that  they  r.ow  can  buy  from  the  same 
producing  states  under  nearly  the  same  con- 
ditions as  before.  The  Middle  Eastern  states 
have  realized  the  old  dream  of  controlling 
their  own  production.  In  Iran  this  Is  called 
"nationalization'":  other  countries  refer  to 
It  as  "participation."  but.  even  though  the 
politicians  have  been  satisfied,  the  oil  still 
must  be  sold  to  somebody.  The  oil  companies 
themselves  don't  much  care  where  the  oil 
comes  from,  or  who  owns  it.  or  at  what  point 
along  the  stream  It  changes  nationality  ' 

The  apostles  of  crisis  predict  that  the  Arabs 
win  Ignore  the  laws  of  free  enterprise  and 
choose  to  sell  their  oil  to  nobody  Presum- 
ably they  win  do  so  t>ecau8e  they  already  have 
all  the  money  they  require,  and  In  the  desert 
countries  (Libya.  Kuwait,  Saudi  Arabia)  the 
small  population  makes  no  loud  demands  for 
social  Improvements  Thus  the  rulers  can 
afford  to  leave  the  oil  In  the  ground,  waiting 
for  a  desperate  Industrialized  world  to  com- 
ply with  their  political  demands  or  to  bid 
the  price  of  oil  to  the  bankrupting  levels  of 
M  a  barrel  The  rulers  then  will  take  advan- 
tage of  the  Inflated  prices,  and  In  a  few  years 
they  will  destroy  the  International  monetary 
system  and  bring  about  the  devaluation  of 
everybody  else's  currency. 

The  trouble  with  this  argument,  as  with 
moot  theoretical  arguments  dependent  on 
Imaginary  llnee  converging  In  abstraction.  Is 
that  It  takes  little  account  of  the  moderate 
behavior  shown  by  the  Arabs  in  the  after- 
math of  war.  It  assumes  that  the  West  will  do 


nothing  to  protect  Its  own  Interests,  that 
everybody  will  stand  around  placidly  watch- 
ing the  projections  become  political  realities. 
Which  Is.  of  course,  nonsense.  Either  the  oil 
companies  will  arrive  at  a  profitable  detente 
with  the  Middle  East  yXvoA  profitable  than  In 
the  old  days,  perhaps,  but  still  satisfactory), 
or  they  will  suddenly  discover  that  alternate 
sources  of  oil  and  energy  were  far  more  ac- 
cessible than  heretofore  had  t)een  imagined. 
The  October  war  reinforces  this  observa- 
tion. It  does  not  seem  as  though  the  war 
violated  legitimate  American  alms  in  the 
Middle  East  at  all;  In  fact.  It  has  probably 
contributed  to  a  detente.  An  American  official 
sympathetic  to  the  Arab  cause  but  aware  of 
the  political  power  of  the  Zionist  cause  in 
the  US  might  shrewdly  have  confided  as  fol- 
lows to  a  friendly  Arab  diplomat:  If  the 
Arabs  threaten  Europ)e  with  an  oU  embargo— 
and  thus  threaten  NATO  and  American  stra- 
teglT"  Interests — the  American  government 
wofild  have  no  choice  but  to  go  before  Its 
public  and  demand  a  more  evenhanded 
American  policy  toward  the  Arabs.  Amer- 
ican strat^lc  Interest  would  of  course  be 
even  more  Jeopardized  by  Soviet  adventur- 
ism In  the  Middle  East.  The  threat  of  em- 
bargo would,  at  the  very  least,  force  the 
American  government  to  aid  In  the  restitu- 
tion of  Arab  lands  occupied  by  the  IsraeUa 
In  1967  Americans  might  also  feel  con- 
strained to  do  something  about  the  Pales- 
tinian diaspora.  All  In  exchange  for  an  Arab- 
Israeli  peace  treaty,  to  be  sure  The  Zionists 
would  not  like  it,  but  they  would  have  little 
choice  but  to  accept  It.  After  all.  they  seem 
to  have  as  few  friends  left  as  Taiwan,  and 
the  Arabs  are  getting  stronger.  The  Arab 
leaders  would  not  like  to  make  peace  with 
Israel,  but  they  could  afford  to  do  so  If  they 
oould  show  that  they  had  forced  America  to 
shift  Its  policy  somewhat  In  their  favor; 
no  Arab  who  might  oppose  them  could  say 
that  they  had  done  more  than  these  moderate 
leaders  had  done  to  restore  lost  Arab  honor. 
And  the  conservative  oU  states  would  bran- 
dish the  oil  weapon  Just  a  bit  to  gain  inunu- 
nlty  from  radical  anti-Western  Arab  opinion. 

NEW  MTTRS  FOB  OLD 

The  careful  wielding  of  the  oil  weapon — 
specifically,  the  process  of  "nationaliza- 
tion"— has  gradually  shUted  the  politics  of 
oil  negotiation  In  the  Middle  East.  If  the 
producing  nations  no  longer  possess  the  great 
threat  of  expropriation  (do  what  we  say,  or 
we  win  seize  your  holdings),  then  they  will 
have  lost  their  most  effective  advantage.  As 
they  become  wholesale  dealers  Instead  of 
privileged  concessionaires,  they  will  find 
themselves  forced  to  comjjete  In  what  wUl 
begin  to  resemble  a  free  market.  The  oU 
companies  still  will  own  75  percent  of  the 
refineries  In  the  non-Communist  markets,  as 
well  as  most  of  the  port  facilities,  and  so  they 
will  continue,  albeit  less  directly,  to  deter- 
mine price  and  regulate  production  In  the 
International  oil  trade. 

The  Middle  Eastern  countries  will  also  find 
themselves  more  concerned  about  the  sta- 
bility of  Western  economies.  Earlier  this 
year,  for  Instance,  Saudi  Arabia  agreed  to 
buy  25  percent  of  Aramco  for  a  price  of  about 
$1  billion.  By  so  doing,  it  becomes  a  major 
partner  In  the  combination  of  Western  oil 
companies,  and  to  some  extent  It  will  come 
to  share  similar  Interests  As  the  Middle 
Eastern  governments  acquire  larger  percent- 
ages In  Western  companies,  they  probably 
win  Invest  their  assets  in  Western  banks  an<i 
multinational  corporations^  not  because 
they  want  to  do  so,  but  because  they  will  lac  Is 
sensible  options. 

All  this  «in  take  time  to  come  to  pass,  but 
as  It  does  the  specter  of  an  oU  crisis  will 
gradually  diminish  and  fade.  The  s{>ecter  will 
then  be  replaced  by  that  of  the  refinery  crisis. 
Suddenly  no  one  will  be  talking  about  the 
lack  of  crude  oU  or  the  vindictive  politics 
of  the  Arabs;  instead,  everybody  will  be  say- 
ing that  oil  IS  plentiful  but  means  nothing 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42423 


unless  It  can  be  refined  into  useful  products, 
and  that  the  environmental  demands  placed 
on  these  products  i  tow  sulphur  content,  etc.) 
require  a  new  (feneration  of  refineries  that 
wlU  be  extremely  expensive  to  construct. 
This,  in  turn,  will  lead  to  the  elaboration 
of  another  myth 

The  major  American  oil  companies  have 
neglected  to  build  refineries  over  the  past 
few  years  becaust'  there  ha-sn't  as  yet  been 
enough  profit  In  the  enterprise.  In  order  to 
Justify  the  expense  of  building  a  refinery, 
the  oil  companies  require  the  long-term  as- 
surance of  crude  oil  supplied  at  low  prlfSes. 
Refinery  construction  Is  expen&lve:  a  faJr- 
alze  plant  might  cost  about  $100  million  The 
big  companies  have  this  kind  of  money.  The 
Standard  OU  of  OallfcMTda,  for  instance,  add- 
ed $120  million  to  Its  cash  reserves  In  1972, 
but  It  allocated  none  of  this  money  to  con- 
structing new  refineries  In  the  United  States. 
Until  the  Nixon  Administration  relaxed  the 
quotas  last  spring,  the  long-term  Importing 
of  crude  oU  was  restricted,  and  so  the  com- 
panies had  Uttle  crude  as  c(^ateral  with 
which  to  secure  new  refinery  construction 
financing.  At  this  moment.  It  costs  weU  over 
$2  a  barrel  to  bring  Saudi  oil  into  an  Amer- 
ican port  (as  opposed  to  a  net  production 
cost  of  75  cents  for  a  barrel  of  American  oU) , 
and  so  the  energy  crisis  continues  to  bo 
thought  of  as  low  crude-oil  supplies  rather 
than  high  oil  cost. 

When  the  tax-paid  cost  of  Middle  Eastern 
crude  drops,  the  rush  to  build  refineries  in 
America  wiU  be  on.  As  soon  as  that  occurs, 
the  last  vestiges  of  popular  lUuslons  about 
the  energy  crisis  will  have  disappeared.  All 
the  participants  In  the  drama  wlU  remain 
as  they  were,  but  In  a  clearer  Ught. 

The  lndep>endent  oil  man.  the  marginal, 
will  be  even  more  threatened  and  Insecure 
than  he  has  always  been  and  may  vanish 
altogether.  The  consumer  will  continue  to 
pay  more  and  more  for  the  services  it  has 
always  been  very  much  worth  the  companies' 
while  to  provide  him  with  anyway.  The  con- 
sumer had  better  get  busy  learning  about 
prices  and  wondering  why  the  oil  companies 
seU  gasoline  wholesale  at  21  cents  a  gallon 
when  It  costs  them  only  4  cents  a  gallon  on 
the  average  to  provide  It.  He  had  better  start 
Investigating  plpeUne  and  production  costs, 
too.  and  had  better  find  out  what  It  costs 
the  companies  to  get  oil  Into  the  top  end 
of  the  trans-Alaska  pipeline  and  how  much 
they  will  sell  It  for  at  the  bottom  end  when 
It  Is  finally  built.  The  latest  gasoline  price 
hikes  are  an  ominous  harbinger  of  things 
to  come. 

The  American  government  will  continue 
to  make  the  ssime  mistake  as  the  consumer: 
our  Congressmen  and  Senators  will  continue 
to  worry  about  supply  and  ignore  cost.  And 
the  companies?  They  are  not  deeply  con- 
cerned about  Saudi  Arabia.  Iran,  or  the  Mid- 
dle East.  They  know  the  limitations  of  the 
Arab  oil  weapKjn,  and  are  profoundly  con- 
cerned about  protecting  their  immense  as- 
sets and  safeguarding  the  accessibility  of 
these  assets  If  money  in  the  Middle  East  no 
longer  comes  easily  to  the  oil  companies, 
they  will  be  happy  to  keep  looking  for  it 
elsewhere  They  recognize  that  It  Is  good 
enough  to  have  ridden  the  Arab  carousel  for 
more  than  a  generation. 

rOOTNOTES 

'  Although  Iran  Is  not  properly  an  Arab 
country,  on  the  reasonable  ground  that  Iran- 
ians don't  understand  Arabic  and  show  little 
interest  In  anything  Arabian,  the  producers 
of  the  Arabian  fantasv  find  It  convenient  to 
refer  to  the  Middle  East  as  a  geographical 
and  political  unity 

•The  NUton  Administration  In  1973  had 
eased  the  restrictions  on  the  Importation  of 
foreign  oil,  consented  to  increases  in  domes- 
tic prices  of  gasoline  and  heating  fuels,  en- 
couraged the  clearing  awfiv  c.f  legal  obstacles 
to  the  building  of  the  Alaska  plpenne.  and 


argued  for  the  de.-ejruiallon  of  natural  gas 
traded  in  interstate  c-ommerce. 

•The  two  most  often  quoted  authorities 
on  either  side  of  the  prophev^y  are  Professor 
M  A  Ade;man  of  MIT  and  Walter  J  Levy,  an 
economist  oJten  employed  by  the  major  oil 
comptinies  Professor  Adelmaii  foresees  a  vast 
surplus,  and  Mr  Levy  ft:  resees  an  equally 
VEkSt  emptiness 

*  The  discoveries  of  new  reserves  had  been 
exceeding  the  rate  of  consumption  even  be- 
fore the  Nixon  .^dmlnlElratlon's  generous 
grants  to  the  oil  and  gas  Industry  last  spring. 
.\slde  from  the  discoveries  In  Alaska  aiid  the 
North  Sea.  M.t  oil  companle.s  al.sfj  bave  found 
satlsfyiiif;  quantities  of  ol!  ■^?.  the  shores  of 
Indonesia,  li.  Ecuador  and  Australia,  in  Ni- 
geria. Brunei.  C'ablnda.  ai^d  Gibon.  Produc- 
tion has  been  expancin^  offshore  Louisiana 
and  offshore  Cali:or:.la,'  onthore  C^lfornla, 
the  6  blUion  barrels  at  Elk  HU'iS  remain  vlr- 
tuaUy  lntd%t. 

>  Each  of  the  flvei  American  companies 
owned  a  7  percent  slitee  In  Iran's  Consor- 
tium. Although  Iran  "nationalized"  its  oU 
production  ln~ta73.  the  same  companies  draw 
the  same  volume^jfoUfrom  the  same  fields. 
With  the  exceptlonoT  Utii*„4he  same  com- 
panies also  own  the  major  shares~Ot  Aramco, 
ciirrently  producing  about  7.5  million  barrels 
of  oil  a  day.  As  a  consolation  of  sorts,  Gulf 
owns  three-eighths  of  the  Kuwait  Oil  Com- 
pany. 

*  The  concession  to  Fereydoon  does  not  be- 
long to  the  Consortium.  It  Is  shared  by  the 
Iranian  government  and  an  "Independent," 
Standard  OU  Company  of  Indiana.  To  wonder 
■why  Standard  of  Indiana  and  Aramco.  on  the 
other  side  of  the  gulf,  have  chosen  not  to 
draw  oU  from  the  field  Is  to  raise  the  possi- 
bility of  a  deal.  It  Is  conceivable  that  the 
Aramco  partners  could  be  supplying  Stand- 
ard of  Indiana  with  crude  oU  at  cut-rate 
prices  In  return  for  Standard's  wUllnguess  to 
forestall  operations  In  Iran. 

"  This  Is  an  Important  aspect  of  the  oU 
trade,  and  It  explains  the  reluctance^^oT^ 
Standard  of  Indiana  to  develop  the  field  at 
Fereydoon.  The  lack  of  owned  crude  oU  may 
not  be  a  serious  llabUlty  for  a  major  oU  com- 
pany. MobU,  for  Instance,  has  been  buying 
maybe  150,000  barrels  a  day  from  Standard 
of  California,  one  of  Ite  partners  In  Aramco, 
at  what  Is  caUed  "elght-vsay  price,"  I.e.,  a 
price  one-eighth  of  the  way  between  the 
tax-paid  cost  of  the  oU  and  its  posted  price. 
This  represents  a  markup  of  perhaps  8  or  9 
cents  a  barrel.  Why  should  Standard  of  In- 
diana go  to  the  trouble  and  expense  of  de- 
veloping a  field  like  Fereydoon  if  It  can  ar- 
range a  comparable  deal  with  a  partner  In 
Aramco  or  the  Consortium? 


THE     SIGNIFICANCE     OF      DECEM- 
BER   3.    1773 

Mr.  THURMOND.  Mr.  President,  dur- 
ing the  first  weekend  of  December  of  this 
year,  the  State  of  South  Carolina  offi- 
cially began  its  celebration  of  our  Na- 
tion's 200th  birthday.  As  part  of  the  of- 
ficial ceremonies,  a  Governor's  banquet 
was  held  in  Charleston,  S.C.  on  Sunday, 
December  2.  The  keynote  speaker  at  this 
banquet  was  a  noted  South  Carolina  his- 
torian. Dr.  George  C.  Rogers.  Jr..  of  the 
Department  of  History  at  the  University 
of  South  Carolina. 

Dr.  Rogers'  addre.&,s.  entitled  "The  Sig- 
nificance of  December  3,  1773,"  was  a 
very  interesting  and  enlightening  ac- 
count of  South  Carolina's  role  in  the 
birth  of  our  great  Nation.  I  believe  this 
account  should  be  shared  with  all  In- 
terested Americans  as  our  country  begins 
its  bicentennial  celebration. 

Accordingly,  Mr.  President,  09  behalf 


of  myself  and  the  Junior  Seriator  from 
South  Carolina  'Mr.  Rollings  1,  I  ask 
unanimous  consent  that  Dr  Roeers' 
speech  be  printed  m  the  Record  at  ihe 
conclusion  of  my  remarks,  and  I  com- 
mend ii  to  the  attention  of  all  my  col- 
leagues in  the  Congress. 

There  t)elng  no  objection,  the  speech 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 

The  Signiftcancx  of  Dbcemeee  3,   1773 
(By  George  C.  Rogers,  Jr.) 

Grouth  and  Tei'olutiun  have  been  the  chief 
characteristics  of  South  Carcilna  society  dur- 
ing the  past  decade  We  have  had  to  adjuat 
our  political  in.'jUtutlons  Kj  that  the  volcM 
of  the  new  generation  coming  oS  the  cajn- 
puses  and  o^t  of  the  streets  can  bf  heard. 
Thus  the  struggles  over  reapportionment. 

Croirth  and  ^eio'i..:ion  were  also  tlie  domi- 
nant characteristics  of  South  Carolina  socie- 
ty in  the  decade  oeicre  the  Axnerlcan  Revo- 
lution. Amidst  a  tarbuient  people  a  search 
was  begun  for  institutions  that  would  be  "an 
accurate  n-.;.-n  r  c!  the  people,  sei^ltlvely  re- 
flecting their  desires  and  feelings."  Consent 
was  discovered  to  be  "a  continuous,  eve^y-v^ 
day  process."  Discarded  was  the  idea,  as  Jc^in 
Locke  would  have  had  It.  that  consent  was 
given  only  once,  at  some  climactic  moment 
whrai  government  was  overthrown  by  the 
people  and  then  frozen  in  written  documents 
forever.  The  new  view  was  "that  the  only  rea- 
son why  a  free  and  Independent  man  was 
bound  by  human  laws  was  this — that  he 
bound  himself."  The  search  to  discover  the 
voice  of  the  p>eople  and  the  channels  through 
which  It  might  be  continuously  heard 
reached  an  Important  milestone — perhaps 
even  a  starting  point — on  Decwnber  3,  1773. 

Between  1746  and  1775  a  man  could  get 
rich  more  quickly  m  South  Cait^lna  than 
at  any  other  time  In  her  history.  Indigo, 
^♦hlch  had  been  granted  a  ParllamentajT 
bounty  In  17*8,  was  a  crop  worth  £260.000 
sterling  by  1775.  When  Parliament  removed 
the  English  lmp>ort  duty  on  rice  in  1767,  the 
price  of  that  staple  almost  doubled  by  the 
summer  of  1772.  These  were  also  the  yea'-s  of 
greatest  importation  of  slaves  from  Africa, 
an  obvious  sign  that  planters  were  prosper- 
ing. During  the  1760's  the  backcountry  was 
filling  up  with  men  who  grew  provisions  for 
the  slave-run  plantations  of  the  lowcountry. 
When  Henry  Laurens,  a  great  merchant  who 
became  an  equaUy  successful  planter,  with- 
drew to  England  In  1771  to  educate  his  sons, 
he  had  an  Income  of  £2,500  sterling  per  an- 
num, an  Income  surpassed  only  by  the  In- 
comes of  the  great  lords  of  England. 

Outward  and  visible  signs  of  this  Carolina 
wealth  were  the  completion  In  1756  of  the 
first  State  House  which  was  erected  on  the 
northwest  oomer  of  Broad  and  Meeting 
Streets  and  the  opening  of  St.  Michael's 
Church  in  1761  on  the  southeast  corner 

On  September  3,  1768,  Peter  Timothy,  the 
printer  of  the  South-Carolina  Gazette,  wrote 
to  Benjamin  Franklin:  "I  do  not  suppose 
there  Is  a  Colony  on  this  Continent  In  so 
flourishing  and  promising  a  Situation  as  So. 
Carolina  at  present.  Private  and  public  Works 
are  every  where  carrying  on  with  Spirit." 
Broad  Street  was  being  transformed  Into  the 
most  elegant  thoroughfare  in  the  Empire.  At 
the  eastern  end,  the  Exchange  was  already 
under  way;  it  would  be  completed  by  the  fall 
of  1771.  It  was  the  formal  entrance  for  those 
arriving  by  sea.  who  upon  passing  through 
the  open  arcade  under  the  Great  HaU  would 
emerge  upon  a  perspective  as  compelling  as 
any  designed  by  Palladlo  A  new  Watch  House 
was  being  built  on  the  southwest  comer  of 
Broad  and  Meeting.  On  the  northeast  comer 
already  stood  the  Beef  Market 

At  the  crossroads  the  statue  of  WllUam 
Pitt,  executed  by  Joseph  Wilton,  was  placed 
In  1770,  a  civic  ornament  dedicated  to  the 


42424 


CONGRESSIONAL  RECORD —  SENATE 


man  nioet  re«pon«lbIe  for  the  rep«»l  of  Uie 
hat«d  Stamp  hgi. 

To  compl^je  the  pro«pect  from  the  Ex- 
change, a  canal  was  ordered  to  be  cut  in 
1788  from  the  upper  end  of  Broad  Street 
through  the  marsh  to  the  Ashley  FUver. 
Among  the  commissioners  named  to  carry 
out  this  Improvement  were  Henry  and  Arthur 
Mlddleton.  William  Henry  Drayton.  Edward 
Pen  wick,  and  Rawlins  Lowndes,  who  thus 
made  this  the  planters'  entrance  to  the  city 
from  their  Ashley  and  Stono  River  planU- 
Uons. 

The  flrst  suburbs — Ansonborough.  Harles- 
ton  Village,  and  White  Point— were  linked 
to  the  town.  In  1767  a  stone  bridge  was  built 
over  the  creek  at  the  north  end  of  Bay 
Street  near  Cravens  Bastion,  while  Meeting 
Street  was  continued  northward  to  George 
Street.  The  northern  limit  of  Ansonborough 
was  axed  In  1769  by  the  laying  out  of  Bound- 
ary Street. 

In  1770  Harleston  vtUage  was  surveyed  on 
Coming's  Point  with  the  north-south  streets 
named  after  the  patriots  Oadsden.  Lynch 
and  Rutledge,  and  the  east-west  streets 
named  for  royal  officials — Bull,  Montagu 
Wentworth.  and  Beaufain. 

The  private  Improvements  were  no  less 
noteworthy  than  the  public.  Peter  Timothy 
described  Christopher  Gadsden's  wharf  as 
the  most  "stupendous  work"  of  aU.  On  May 
23.  1774.  Gadsden  explained  to  Samuel 
Adams,  the  Boston  patriot,  that  he  had  un- 
dertaken to  build  "a  large  Wharf,  or  rather, 
quay,  the  largest  In  America"  in  order  "to  re- 
Ueve  my  Mind  for  the  almost  Insupportable 
Loss  of  my  eldest  Son.  .  .  ••  "l  have  been 
above  seven  Tears  at  hard  Labour  and  the 
utmost  Risk  of  my  Constitution  about  one  of 
the  most  extensive  Quays  In  America  during 
which  'nme  no  negro©  in  any  of  our  swampe 
ha«  been  more  exposed,  at  which  thirty  of 
the  largest  Ships  that  can  come  over  o\ir  Bar 
can  be  UDadlng  at  the  Same  time  and  all 
afloat  at  low  water  with  their  whole  loada 
in.  .  .    ■• 

This  building  where  we  meet  tonight  rests 
on  land  which  Gadsden  developed  as  the 
suburb  of  Middlesex  Just  behind  his  great 
wharf  which  stretched  along  Cooper  River. 
The  streets  of  this  development  he  named  In 
honor  of  John  WUkea.  the  defender  of  Bng- 
llsh  Ubertles.  and  of  PasquaJe  Paoll  the  de- 
fender of  Corslcan  Ubertles. 

Gadsden  has  usually  been  labeled  a  mer- 
chant, but  he  expressly  stated  In  1769  that 
he  was  no  longer  a  merchant,  but  a  factor- 
generally  known  as  a  Country  Factor  The 
d^lnctlon  U  Important  for  understanding 
oidsdens  role  in  the  Revolution.  A  merchant 
was  a  man  with  Bngllsb  connections  who 
drew  his  caplUl  from  London,  who  wanted 
therefore  to  buy  the  country  produce  cheap 
In  order  to  load  the  vessels  consigned  to  him 
by  his  English  friends  to  the  best  advantage 
The  Charleston  factor  was  the  man  who  mar- 
ahalled  the  produce  from  the  country  on  his 
wharf  and  had  the  same  Interest  as  the 
planter— to  sell   at  high  prices 

Peter  Timothy,  who  observed  the  urban 
bustle  from  his  printing  office  on  the  Bay 
near  the  Exchange,  pointed  out  In  1774  that 
Gadsden's  wharf  was  not  the  only  new  one 
John  Oalllard  had  constructed  one  on  the 
north  side  of  the  new  Pish  ^Urket  which 
«ood  at  the  foot  of  Queen  Street:  Samuel 
Prtoleau.  Jr.  a  wharf  on  the  south  side  More 
uoteworthv  were  the  whar-.es  being  built 
for  the  first  time  Into  the  Ashley  River  west- 
ward of  White  Point  Here  the  most -extensive 
construction  was  that  of  the  factor  WlUlam 
Glbbes  -nmothy  boasted:  "All  White-Point 
which  for  many  Tears  was  almost  a  desolat* 
Spot.  Is  lately  almost  covered  with  Houses 
many  of  them  very  elegant"  Among  these 
houses  were  those  of  Miles  Brewton,  William 
Olbbes,  and  Thomas  Savage,  all  of  which 
still  stand  This  incessant  building  created 
»  new  class,  the  artisans,  who  were  ready  to 


chaUenge  the  dominance  of  the  planters  and 
the  merchants. 

It  Is  only  with  a  knowledge  of  these  public 
and  private  Improvements  that  one  can  un- 
derstand both  Governor  Montagu's  attempt 
to  move  the  capital  from  Charleston  to 
Beaufort  in  October  1772.  and  the  deep 
resentment  of  that  move  felt  by  the  prop- 
ertied men  of  Charleston.  Montag:u'B  action 
was  as  great  an  attack  upon  Charleston  prop- 
erty as  L«rd  North's  Boston  Port  BUI  would 
be  upon  Boston  property. 

It  was  the  tax  on  tea,  however,  that  sym- 
bolljsed  the  most  fundamental  threat  to  the 
property  of  these  aspiring  men.  The  Stamp 
Act  had  been  repealed.  All  of  the  Townahend 
duties  had  been  repealed,  except  that  on 
tea.  The  tax  on  tea  had  been  retained  as 
proof  that  Parliament  had  the  right  to  tax 
the  colonists:  the  colonists  must  therefore 
never  consent  to  pay  for  it,  for  to  do  so 
woxild  be  an  admission  that  the  power  of  tax- 
ation rested  In  Parliament,  a  body  in  which 
they  themselves  were  not  represented. 

In  October  1773  seven  ships  with  tea  set 
sail  for  America.  The  ship  London,  Alexander 
Curling,  master,  was  destined  for  Charleston 
with  267  chests  of  tea  on  board  consigned 
to  the  agents  of  the  East  India  Company  In 
Charleston.  The  ship  London  arrived  off 
Charleston  bar  on  December  1:  she  came  to 
anchor  In  the  harbor  on  December  2. 

The  names  of  Carolina  vessels  had  long 
been  a  faithful  Index  to  her  fortunes  As  she 
struggled  to  get  rich,  her  vessels  were  called 
Adventure,  Delight.  Endeavour,  Enterprlze. 
Experiment.  Prt*irashlp,  Good  Intent,  Hope. 
Industry.  Speedwell.  Success.  After  1764. 
however,  nine  vessels  built  In  Carolina  were 
christened  Liberty  Others  were  launched 
as  the  Fair  American  and  Heart  of  Oak.  In 
1770  Henry  Laurens  selected  the  name  of 
Magna  Charta  for  the  ship  he  Intended  to 
sail  up  the  Thames.  The  arrival  of  the  Lon- 
don, therefore,  in  Charleston  harbor  might 
seem  ominous  Indeed. 

How  was  the  landing  of  the  tea  and  the 
collection  of  the  duty  to  be  opposed? 

On  December  2  handbills  were  circulated 
"Inviting  all  the  Inhabitants,  without  excep- 
tion, particularly  the  landholders,  to  assem- 
ble In  the  Great  Hall  over  the  Exchange  at 
3  o'clock  on  Prlday  afternoon." 

On  the  3rd  the  assembled  group  called 
Col.  George  Gabriel  PoweU  to  the  chair,  a 
place  he  occupied  at  each  of  the  General 
Meetings  held  during  the  ensuing  seven 
months. 

Powell  was  selected  to  preside  over  these 
meetings  of  the  people  not  because  he  was  a 
strenuous  votary  to  liberty,  as  Henry  Laurens 
later  depicted  him,  nor  because  he  could 
propagate  his  Ideas  "with  zeal,"  as  Lieuten- 
ant Governor  wmiam  Bull  once  wrote,  but 
because  he  was  one  of  the  most  respected 
leaders  In  the  backcountry.  Of  Welsh  descent, 
his  flefdom  was  the  Welsh  Tract  He  had 
acquired  extensive  lands  along  the  Pee  Dee 
River.  As  a  Justice  of  the  peace  and  a  colonel 
In  the  Craven  County  mllttla,  he  had  upheld 
authority  during  the  Regulation  yet  re- 
tained his  popularity  for  he  was  the  over- 
whelmtng  choice  In  1769  of  the  people  of  St. 
David's  parish  to  represent  them  In  the 
assembly. 

Perhaps  because  he  was  something  of  an 
outsider  he  could  moderate  the  clashing 
Interests  of  the  planters,  merchants,  and 
mechanics.  After  all.  he  hEwl  been  an  assist- 
ant Judge  until  April  23,  1772.  when  he  was 
removed  to  make  way  for  a  placeman. 

At  this  meeting  the  agents  of  the  East 
India  Company— Roger  Smith.  Peter  Leger. 
and  WlUlam  Greenwood — were  caUed  In  and 
by  "threats  and  flatterys"  convinced  that 
they  should  decline  to  receive  the  tea. 

At  the  meeting  it  was  resolved:  "We  the 
underwritten,  do  hereby  agree,  not  to  Import. 
either  directly  or  Indirectly,  any  teas  that 
wiu  pay  the  present  duty,  laid  by  an  act  of 


December  19,  197S 

the  British  Parliament  for  the  purpose  of 
raising  a  revenue  In  Ainerlca."  A  committee 
was  appointed  to  secure  signatures  to  the 
reeolutlon  Some  merchants  who  were  present 
signed.  But  others  according  to  Bull  "were 
cool,  and  differed  In  the  reasonableness 

and  utUlty  thereof." 

The  committee,  although  composed  of 
Capt.  ChrUtopher  Gadsden.  Col.  Charles 
Plnckney,  Thomas  Perguson,  Charles  Cotes- 
worth  Plnckney,  and  Daniel  Cannon,  was  not 
to  have  an  easy  Job  as  the  foUowlng  letter 
wrrltten  by  James  Laiirens  to  his  brother 
Henry  on  December  4  Indicates:  "Our  Liberty 
folks  met  Yesterday  at  the  Exchange  *  came 
to  a  Resolution  to  prevent  the  Tea  sent  out 
by  the  India  Company  from  being  Landed 
here  &  Capt.  Curling  will  be  obliged  to  carry 
every  chest  of  It  back  to  London. 

"This  day  a  Select  Committee.  Mr  Gadsden 
&  CO..  are  going  about  to  demand  a  Subscrip- 
tion from  the  Merchants  to  Import  no  more 
of  that  Article  until  the  Duty  shall  be  taken 
off.  How  that  wlU  Succeed  I  don't  know  but 
I  hear  many  are  offended  at  some  severe  re- 
flections that  Mr.  G  Let  drop  against  that 
Body  in  the  Wrath  of  declamation  yester- 
day." 

The  Ave  men  who  made  up  the  committee 
represented  the  two  principal  groups  attend- 
ing the  meeting — the  planters  and  the  me- 
chanics. 

Charles  Plnckney.  his  first  cousin  Charles 
Cotesworth  Plnckney,  and  TTiomas  Ferguson 
were  planters  who  had  long  been  members 
of  the  Commons  House  of  Assembly.  Charles 
Plnckney.  who  was  colonel  of  the  Charles 
Town  Regiment  of  Foot,  had  sat  in  every  as- 
sembly since  1754.  first  for  Christ  Church 
parish,  then  for  St.  Michaels,  and  finally  for 
St.  Philip's  Charles  Cotesworth  Plnckney. 
the  son  of  the  famous  Eliza  Lucas,  had  only 
recently  retvimed  from  studying  abroad  when 
he  was  elected  in  1769  to  represent  St.  John's 
Colleton. 

Thomas  Perguson  was  described  by  Henry 
Laurens  In  1768  as  "a  knowing  wealthy  Gen- 
tleman Planter."  He  was  master  of  several 
plantations  in  Colleton  County  and  owned 
the  rights  to  Ferguson's  Perry  over  the  Edlsto 
River  where  he  had  established  several  coun- 
try stores.  He  sat  for  St.  Paul's  CoUeton. 

These  three  men  were  accustomed  to  gov- 
ern through  the  assembly. 

Jack  Greene.  In  his  book  The  Quest  for 
Power,  has  described  the  way  In  which  the 
local  elites  In  the  fo\ir  southern  colonies  had 
gained  power  through  Increasing  their  con- 
trol over  the  colonies'  finances.  In  South 
Carolina,  however,  because  of  a  dispute  over 
the  Wilkes  Fund,  a  gift  of  CI. 500  sterling 
made  by  the  assembly  to  John  Wilkes  in 
1769.  the  assembly  had  ceased  to  function, 
for  the  crown  would  approve  of  no  legisla- 
tion untU  the  commons  house  made  amends 
for  this  gift 

This  was  why  they  could  not  act  through 
the  assembly  and  had  to  Join  forces  with 
another  group  which  had  been  working  out 
of  doors — the  Sons  of  Liberty.  Christopher 
Gadsden  and  Daniel  Cannon  represented 
this  other  tradition.  Gadsden,  although  he 
had  been  a  member  of  every  assembly  since 
1757,  was  the  darling  of  the  mechanics.  His 
constituency  was  St.  PhUlp's.  which  was  as 
close  to  a  democratic  one  as  could  be  found 
In  colonial  South  Carolina.  It  was  Gadsden 
who  had  read  the  Association  at  the  Liberty 
Tree  on  July  22,  1769.  which  put  into  opera- 
tion the   non-lmportatlon  agreement 

Daniel  Cannon  had  never  sat  In  the  as- 
sembly. He  was  a  carpenter  by  trade,  but 
we  would  have  to  call  him  a  buUdlng  con- 
tractor, for  he  amassed  a  great  deal  of  prop- 
erty. Including  by  1770  all  that  extent  of 
land  known  as  Cannonsboro.  His  great  pop- 
ularity In  the  community  is  attested  by  the 
fact  that  In  the  spring  of  1774  he  was  elected 
a  vestryman  of  St.  PhUlp's  church,  a  Ore- 
master,  president  of  the  St.  George's  Society, 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42425 


and   senior   warden   of  the  South   Carolina 
Society. 

Pauline  Maler  In  a  very  perceptive  article 
entitled  "The  Charleston  Mob  and  the  Evolu- 
tion of  Popular  Politics  In  Revolutionary 
South  Carolina"  has  found  the  seeds  of  self- 
government  In  these  revolutionary  mobs. 
There  was  a  progression,  she  says,  from  the 
mobs  at  the  tune  of  the  Stamp  Act  crisis  to 
the  more  self-dlsclpUued  meetings  of  the 
Sons  of  Liberty  at  the  Liberty  Tree.  By  the 
time  of  the  crisis  over  tea  these  had  become 
the  General  Meetings  of  the  Inhabitants — a 
kind  of  New  England  town  meeting. 

Thus  on  December  3.  1773,  we  have  a  merg- 
er of  Greene's  traditions  which  had  been 
charted  through  the  duly  constituted  bodies, 
with  Maler's  traditions  which  had  been 
gathering  out  of  doors.  Therein  lies  the 
supreme  importance  of  the  day  we  celebrate. 
__  Missing  were  the  Charleston  merchants. 
The  mercantUe  community  was  the  most 
conservative  group  in  the  city  and  In  the 
light  of  the  events  they  decided  to  organize. 
At  "a  General  Meeting  of  the  Gentlemen  In 
Trade"  held  on  December  9  at  Mrs.  SwaUow's 
Tavern  on  Broad  Street  they  organized  the 
Charles  Town  Chamber  of  Commerce.  In 
order  to  "adjust  Disputes  relative  to  Trade 
and  Navigation."  The  first  president  was 
John  Savage,  a  Jew  from  Bermuda  who  had 
amassed  one  of  the  largest  Charleston  for- 
tunes while  trading  Jointly  with  Gabriel 
Manlgault.  MUes  Brewton,  the  most  success- 
ful Importer  of  slaves,  was  vice  president. 
David  Deas.  a  Lowland  Scotsman,  treasurer, 
and  John  Hopton,  a  former  clerk  of  Heiyy 
Laurens,  secretary. 

Since  the  "great  Stumbling  Block"  was 
that  some  merchants  had  not  desisted  from 
Importing  teas  privately  and  might  stUl  want 
to  seU  what  they  had  on  hand,  a  general 
meeting  was  called  for  the  17th  of  Decem- 
ber. At  that  General  Meeting  held  from  10 
to  3  "under  the  Exchange"  It  was  resolved 
that  the  tea  on  Captain  CurUng's  vessel 
should  not  be  landed. 

Prom  a  letter  that  Lt.  Gov.  WlUlam  Bull 
wrote  on  December  24  to  the  Earl  of  Dart- 
mouth, the  King's  Secretary  of  State  for 
American  Affairs.  \«^  know  what  ensued. 
"The  the  Merchants  of  the  Town  had  gen- 
erally disagreed  to  this  Measure  of  prohibit- 
ing the  Landing  the  Tea.  yet  some  warm 
bold  Spirits  took  the  dangerous  method  of 
sending  anonyrious  Letters  to  Captain  Curl- 
ing and  some  of  his  Friends  &  the  Gentle- 
man who  owned  the  wharf  where  the  ship 
lay."  threatening  dire  consequences  unless 
the  vessel  was  moved  Into  mid-stream. 

Bull  had  thereupon  called  together  the 
royal  councU  on  December  21  to  ask  their 
advice.  Captain  Curling,  who  appeared  before 
the  councU.  said  that  he  feared  no  personal 
violence.  Collector  of  the  Customs  Robert 
Hallday  stated  that  he  would  have  to  seize 
the  tea  If  the  duties  were  not  paid  within  21 
days  after  the  arrival  of  the  vessel.  That  was 
the  law.  Since  some  disturbance  was  likely, 
the  councU  agreed  with  BuU  that  the  sherlir 
and  his  officers  should  provide  protection  for 
the  coUector.  On  the  22nd  the  coUector 
seized,  landed,  and  stored  the  tea  in  the 
ceUar  of  the  Exchange  without,  as  Bull 
wrote,  "one  Person  appearing  to  oppose  him." 
Peter  Timothy's  comment  was  that  "there 
never  was  an  Instance  here,  of  so  great  a 
Number  of  Packages,  being  taken  out  of  any 
Vessel,  and  thus  disposed  of.  in  so  short  a 
Time." 

The  Earl  of  Dartmouth  replied  to  BuU  on 
the  5th  of  February,  to  give  the  King's  re- 
action to  the  Charleston  tea  party.  "What 
passed  at  Charles  Town  In  consequence  of 
the  arrival  of  Capt.  Curling,  Altho'  not 
equal  In  criminality  to  the  Proceedings  In 
other  Colonies,  can  yet  be  considered  In  no 
other  light  than  that  of  a  most  uiiwa.-rant- 
able  Insult  to  the  authority  of  this  King- 
dom. The  steps  you  took  .  .  .  are  very  much 


approved  by  the  King  ...  it  Is  the  King's 
firm  resolution  upon  the  unanimous  advice 
of  his  confidential  servants,  to  pursue  such 
measures  as  shaU  be  effectual  for  securing 
the  Dependence  of  the  Colonies  upon  this 
Kingdom." 

Undoubtedly  Charleston  had  responded  In 
a  less  criminal  manner  than  Boston  where 
the  tea  had  been  destroyed  by  dumping  It 
Into  the  harbor  and  New  York  and  PhUa- 
delphla  where  the  tea  ships  were  simply 
turned  back 

When  the  news  of  these  northern  tea  par- 
ties reached  Charleston  Ln  Januarj*.  the  local 
firebrands  were  chagrined  that  they  had 
been  somewhat  backward  In  the  united 
cause.  When  Peter  'Hmothy's  Gazette,  which 
BuU  described  as  "the  conduit  Pipe  of  Polit- 
ical matters  on  one  side,"  resumed  publica- 
tion on  January  17,  Timothy  noted  that  the 
consignments  of  East  India  tea  had  not  been 
landed  any  where  in  America  but  "here." 
To  Timothy  that  seemed  to  be  to  Charles- 
ton's shame. 

This  point  was  driven  home  by  a  letter 
from  the  New  York  Sons  of  Liberty,  printed 
in  Crouch's  Country  Journal  on  February  1, 
In  which  letter  the  New  Yorkers  stated  that 
they  were  disappointed  to  learn  that  the  Col- 
lector had  seized  and  landed  the  tea  In 
Charleston.  "This  we  are  Informed,  Is  owing 
to  an  unhappy  Difference  between  the 
Planters  and  the  Trade.  It  was  an  EvU  Hour 
for  America."  South  Carolina's  receiving  the 
tea  would  "Delay  the  Repeal  of  the  Revenue 
Act."  This  "Manifests  a  dlstinlon  sunong  the 
Colonies.  ..." 

Goaded  by  the  opposition  of  the  Chamber 
of  Commerce  and  the  criticisms  from  their 
friends  in  the  North,  the  Sons  of  Liberty  re- 
doubled their  efforts.  A  call  went  out  for  a 
General  Meeting  of  "Every  Inhabitant  of  the 
Town  or  Country"  to  be  held  on  March  3 
at  9  a.m.  at  the  Liberty  Tree.  Because  of  con- 
tinuing bad  weather,  this  meeting  had  to  be 
postponed  several  times  untU  the  decision 
was  finally  made  to  meet  on  March  16  at 
Pike's  Long  Room.  A  clash  was  expected  at 
that  time  between  the  merchants  and  the 
mechanics. 

Timothy  wrote  In  his  Gazette  on  February 
28:  "The  late  Institution  of  a  Chamber  of 
Commerce  in  this  town.  It  Is  said,  has  given 
Rise  to  an  Idea  of  forming  a  Chamber  (or 
House)  of  Counterpoise."  A  handbUl  was 
soon  circulating,  caUlng  for  a  meeting  of  the 
mechanics  on  March  15,  the  day  before  the 
General  Meeting:  "The  Mechanicks  In 
Charles-Town,  are  requested  to  meet.  In  the 
Lodge-Room  In  Lodge- Alley,  at  Seven  o'clock 
this  Evening,  Upon  Matters  of  Importance: 
For,  upon  their  present  Conduct  dep>end£, 
whether  they  shaU  In  future  be  taxed  by 
any  other  than  Representatives  of  their  own 
Choice — and  whether  this  hitherto  respect- 
able Province  shall  preserve  Its  Reputation, 
or  sink  Into  Disgrace  and  Contempt  " 

At  the  General  Meeting  on  the  16lh  there 
was  established  a  "standing  General  Com- 
mittee"— to  act  a£  an  Interim  executive,  to 
sound  the  alarm   at  the   next   crisis. 

The  next  contest  was  a  by-election  to  be 
held  on  AprU  5  and  6  to  select  a  replacement 
for  Henry  Laurens,  who  had  declined  his  seat 
In  the  assembly  for  St.  Michael's  parish,  as 
he  had  not  yet  returned  from  England.  At 
this  election  Thomas  Lynch,  Jr.,  was  pitted 
against  David  Deas.  Lynch  was  the  son  of 
Thomas  Lynch  of  Stamp  Act  fame.  Deas  wae 
a  merchant  and  a  member  of  the  Chamber  of 
Commerce.  Deas  was  also  a  Scotsman.  A 
writer  to  the  Gazette  on  AprU  4  warned: 
"Tou  are  soon,  my  Countrymen,  to  have  a 
Scot  Governor:  If  you  have  a  Scot  Assembly, 
with  the  present  hopeful  CouncU,  the  Lord 
have  Mercy  upon  you!"  But  David  Deas  won 
by  six  votes. 

That  which  turned  the  tide  In  the  radical 
direction  was  the  news  of  the  passage  by 
Parliament  of  the  Boston  Port  BUl.  Timothy 


Issued  an  Extra  with  large  black  borders  and 
printed  the  entire  bill.  The  General  Com- 
mittee met  on  June  13  and  sent  out  a  call 
for  "the  Inhabitants  of  this  C^ony"  to 
meet  on  Wednesday.  July  6,  at  the  Ex- 
change so  that  they  can  prove  that  they  are 
In  union  with  the  other  colgifies. 

The  General  Meetlflf>*4MBt  was  held  on 
JtUy  6,  7.  8.  1774.  at  the  Exchange  was  the 
most  Important  of  aU.  It  was  the  first  time 
that  backcountrymen  participated  directly  In 
Charleston  politics.  The  letters  of  Chris- 
topher Gadsden  to  Samuel  Adams  Intimate 
that  the  backcountry  may  have  been  called 
In  to  redress  the  balance  against  the  Cham- 
ber of  Commerce. 

Gadsden  wrote  Samuel  Adams  on  May  23: 
"Tou  must  not  always  Judge  of  the  Senti- 
ments of  the  People  of  Carolina  by  their  Pub- 
lic Meetings  In  Town  where  (I  don't  know 
how  It  Is  with  you,  but  so  It  Is  with  us)  all 
the  Ministerial  men  In  the  Province  almost 
to  a  man  are  coUect'd  and  are  artful  and 
strenuous  In  their  OppKJSltlon.  The  Country 
Gentlemen  are  hearty  and  spirited  but  su- 
pine and  I  am  sorry  to  say  that  few  of  them 
wiU  give  themselves  the  Trouble  purpoeely  to 
come  down  to  attend  the  publlck  Meetings; 
however  I  am  in  hopes  that  this  affair  relat- 
ing to  your  government  wlU  effectually  rouse 
them." 
It  did. 

At  this  July  meeting  there  was  a  contest 
between  two  slates  of  candidates  for  dele- 
gates to  the  First  Continental  Congress. 
Henry  Mlddleton  and  John  Rutledge  were  on 
both  tickets.  But  Gadsden,  Thomas  Lynch. 
and  Edward  Rutledge  defeated  the  nominees 
of  the  Chamber  of  Commerce — Charles 
Plnckney,  Rawlins  Lowndes,  and  MUes  Brew- 
ton. To  appease  the  merchants,  there  was  a 
compromise  on  Instructions. 

This  three-day  meeting  early  In  July  was 
far  more  significant  than  the  one  we  cele- 
brate today.  If  one  pauses  to  think  In  terms 
of  political  philosophy — here  were  the  peo- 
ple of  South  Carolina  In  a  state  of  nature. 

Timothy,  sensing  criticism,  parried  It  by 
asserting  for  Lord  North's  benefit  that  this 
was  not  "the  Meeting  of  a  Rabble,  and  the 
Election  of  a  Mob,"  by  printing  a  list  of 
those  who  were  then  members  of  the  Com- 
mons House  of  Assembly  and  showing  that 
aU  who  had  attended  had  approved. 

To  seal  the  new-found  unity,  a  Committee 
of  99  was  established  to  handle  executive 
matters  between  futtu^e  meetings  of  aU  the 
Inhabitants  Col  Charles  Plnckney.  a  de- 
feated car.didate  fi-r  deievate  to  Congress,  was 
made  chairman  Chosen  as  members  were  13 
merchants.  15  mechanics,  ar.d  69  planters 

This  Committee  in  order  to  place  the 
Revolutionary  movement  on  a  broader  base 
caUed  for  elections  throughout  the  province 
for  representatives  to  attend  a  General  Meet- 
ing to  be  held  in  Charleston  in  January 
1775.  When  this  General  Meeting  convened 
on  January  11,  a  true  representation  was 
present  from  the  backcountry.  The  General 
Meeting  Immediately  transformed  Itself  Into 
the  First  Provlnclai  Congress.  Symbolic  of 
the  change  was  the  fact  that  the  General 
Meeting  adjourned  from  the  Long  Room  la 
Pike's  Tavern  to  the  Assembly's  Room  In  the 
State  House.  As  the  General  Meeting  became 
the  Provlnclai  Congress,  the  General  Com- 
mittee gave  way  to  a  CouncU  of  Safety. 

Thus  when  the  lowcountry  had  to  face  the 
might  of  Britain  on  June  28.  1776,  the  prov- 
ince was  united  behind  the  new  state  govern- 
ment, which  had  been  established  under 
South  Carolina's  first  state  constitution, 
drawn  up  by  the  Second  Provlnclai  Co:igre3s 
and  signed  on  March  26.  1776. 

As  Henry  Laurens  listened  to  the  reading 
of  the  Declaration  of  Independence  In 
Charleston  on  August  5.  1776,  he  realized 
that  the  logic  of  revolution  must  include  the 
slaves.  Although  he  had  been  a  very  reluc- 
tant rebel,  he  was  now  willing  to  stake  his 


42428 


CONGRESSIONAL  RECORD— aNATE 


December  19,  1973 


entire  fortvme  on  the  outcome.  But  be  could 
only  make  the  commitment  to  Revolution  on 
the  highest  level.  He  w»a  ready  to  free  hla 
slaves.  Indeed,  he  even  said  that  he  would 
give  up  his  own  children  to  save  his  coun- 
try. On  August  14  he  wrote  to  his  son  John 
"I  am  now  by  the  WUl  of  Ood  brought  into 
a  new  World  &  Ood  only  Itnowa  what  eort  of 
a  World  It  wUl  be.- 

It  was  Chief  Justice  John  Marshall  who 
carried  the  Idea  of  one  people  a  step  fur- 
ther— from  the  state  to  the  national  sphere — 
In  his  thunderous  decisions  of  McCulloch  v. 
Maryland    and    Cohens    v.    Virginia. 

Ironically  It  was  George  McDuffle  In  Jxily 
1821— at  that  time  like  Calhoun  stUl  a  na- 
tionalist— who  caught  the  spirit  of  Mar- 
shall's decisions  In  letters  to  a  Charleston 
newspaper  which  he  signed  "One  of  the 
People." 

What  Is  the  security  of  our  government? 
^t  Is  the  reeponslbUlty  of  the  general  gov- 
ernment, not  to  the  state  authorities,  but 
to  themselves.  THE  PEOPLE.  This,  and  this 
alone.  Is  the  great  conservative  principle, 
which  lies  at  the  foundation  of  all  our  polit- 
ical Institutions,  and  sustains  the  great  and 
glorious  fabric  of  our  liberty.  This  great 
truth  ought  to  be  kept  In  constant  and  lively 
remembrance  by  every  American.  It  is  the 
very  life  and  soul  of  republican  freedom;  and 
no  statesman  Is  worthy  to  minister  at  her 
sacred  altar,  who  does  not  distinctly  perceive, 
and  deeply  feel  it.  The  state  governments! 
too,  are  the  absolute  creatures  of  the 
people.  .  . 

In  1861  Abraham  Lincoln  appealed  to  the 
"mystic  chords  of  memory"  stretching  from 
the  Revolution,  to  "swell  the  chorus  of  the 
Union." 

Woodrow  Wilson,  in  delivering  an  address 
on  Robert  E.  Lee.  spoke  of  his  own  and  of 
Lee's  love  of  a  particular  plot  of  ground. 
"You  can  love  a  country  If  you  begin  by 
loving  a  community,  but  you  cannot  love  a 
country  If  you  do  not  have  the  true  rootages 
of  Intimate  affection  which  are  the  real 
sources  of  all  that  Is  strongest  In  human 
life."  Upon  a  sense  of  place  one  could  buUd 
a  better  world. 

Cmr  bicentennial  celebrations  should  nur- 
ture what  began  at  the  Exchanire  on  Decem- 
ber 3,  1T73 — a  sense  of  place,  the  mvstlc 
chords  of  union,  the  achievement  of  one 
people 


CARL  MAKCY— ABLE   PUBLIC 
SERVANT 

Mr.  SYMINGTON  Mr.  President,  a 
number  of  my  colleagues  have  spoken 
about  the  aiinounced  retirement  on  Jan- 
uary 1  of  Carl  Marcy  as  chief  of  stafT  of 
the  Senate  Committee  on  Foreign  Rela- 
tions. 

Today  I  would  add  my  voice  to  those 
who  have  alreadj-  noted  the  extraordi- 
nary contributions  Mr.  Marcy  has  made 
to  the  committee,  to  the  Senate  as  a 
whole,  and  to  our  country. 

For  some  years.  I  have  had  the  pleas- 
ure of  being  associated  with  Carl  Marcy 
on  the  Foreign  Relations  Committee  At 
no  time  have  I  been  unaware  that  Carl 
had  17  or  more  bosses  and  that  I  could 
only  ask  for  a  fair  share  of  his  staffs  time 
and  attention.  But  somehow  he  has  al- 
ways made  me  feel  that  my  concerns  and 
my  requests  were  being  treated  in  unique 
fashion. 

I  do  not  know  how  Mr  Marcy  accom- 
plished this  magical  feat:  but  I  do  know 
that  he  accomplished  It  with  remarkable 
ease,  combining  Into  one  activity  the  tal- 
ents of  a  diplomat  and  a  scholar  He  Is  a 
true  expert  on  matters  of  foreign  policy. 


In  1963  Carl  Marcy  was  one  of  the  Ave 
members  of  the  Federal  Government  to 
receive  the  Rockefeller  Public  Service 
Award:  In  Itself  a  remarkable  achieve- 
ment which  tells  us  a  great  deal  about 
this  worthy  recipient.  When  a  man  Is  so 
honored.  It  Is  difficult  to  embroider  on  the 
theme  or  embellish  the  truth. 

As  a  friend,  I  would  assure  Carl  that 
another  service  he  Is  doing  Is  not  to  make 
abrupt  his  break  wnth  his  Senate  duties?. 
He  Is  giving  us  some  6  months  to  accus- 
tom ourselves  to  the  fact  that  we  shall 
not  be  able  to  turn  to  him  for  his  invari- 
ably wise  advice  and  counsel,  as  well  as 
his  unfailing  courtesy. 

His  successor.  Pat  Holt,  has  the  experi- 
ence and  judgment  we  have  come  to  ex- 
pect from  the  chief  of  staff  of  the  Foreign 
Relations  Committee;  and  the  Senate 
owes  each  of  these  outstanding  public 
servants  a  deep  debt  of  gratitude  for 
nearly  a  quarter  of  a  century  of  devoted 
and  selfless  assistance. 

I  am  sure  ail  of  us  wish  this  outatand- 
Ing  public  servant  and  his  gracious  amd 
lovely  wife  the  best  of  everything  in  the 
years  ahead. 


PRESENTATION  OP  WRIGHT 

BROTHERS    MEMORIAL    TROPHY 
TO  SENATOR  B.\RRY  GOLDWATER 

Mr.  THURMOND.  Mr.  President,  on 
Frtd«?  evening.  December  14.  it  was  my 
pleasure  to  attend  the  annual  dinner  of 
the  Aero  Club  of  Washington  at  which 
time  the  coveted  Wright  Brothers  Me- 
morial Trophy  was  presented  to  our  dis- 
tinguished colleague.  Senator  B.arry  M. 
QoLDWATiR  of  Arizona. 

A  large  number  of  aviation  and  Gov- 
ernment leaders  were  present  to  join  In 
honoring  Senator  Goldwatkr  as  the  1973 
recipient  of  this  award.  This  award  Is 
?lven  annually  by  the  National  Aero- 
nautic Association  to  the  Individual  who 
has  contributed  most  to  all  elements  of 
aviation,  military  and  civilian.  No  Mem- 
ber of  Congress  deserved  this  recognition 
more  than  Senator  Golowatir.  He  has 
distinguished  himself  In  many  ways  In 
the  world  of  business,  aviation,  and 
politics. 

His  leadership  In  the  Congress,  and 
especially  as  a  member  of  the  Senate 
Armed  Services  Committee,  has  been  In- 
strumental In  enabling  this  Nation  to 
maintain  a  strong  Air  Force,  as  well  as  a 
strong  defense  establishment. 

A  distinguished  pilot,  whose  experience 
as  an  aviator  dates  t>ack  to  1929.  he  has 
given  of  his  time  unselfishly  in  main- 
taining his  contacts  and  knowledge  of 
military.  Industry,  and  aerospace  devel- 
opments. A  determined  and  outspoken 
advocate  of  all  phases  of  aviation,  his 
contributions  will  influence  this  critical 
area  of  our  national  life  for  many  years 
to  come. 

In  his  extemporaneous  response.  Sen- 
ator GoLDWAiiR  made  remarks  which 
should  hearten  every  American  citizen. 
He  pledged  again  his  determination  to 
assure  our  NaUon  a  national  defense 
second  to  none.  His  words  are  especially 
meaningful  in  this  period  of  detente, 
as  we  must  continue  to  recognize  there 
are  stUi  dictators  who  will  grab   land 


and  power  whenever  given  the  oppor- 
tunity. 

Mr.  President,  In  recognition  of  these 
achievements  by  Senator  OoLDWAm.  I 
ask  unanimous  consent  that,  at  the  con- 
clusion of  my  remarks,  the  following 
Items  be  printed  in  the  Rkcord:  a  copy 
of  the  program  for  the  26th  Annual 
Wright  Memorial  Dinner;  a  copy  of  the 
presentation  remarks  delivered  by  Mr. 
J.  B.  Montgomery,  president  of  the  Na- 
tional Aeronautic  Association :  a  copy  of 
the  remarks  given  by  Vice  President 
Gerald  R.  Ford;  an  article  entitled 
"Aviation's  Man  of  the  Year.  Barky  M. 
GOLDWATER"  whlch  appeared  in  the  De- 
cember issue  of  the  Airline  Pilot's  maga- 
zine, and  an  article  entitled  "Gold- 
watkr—Winged  Maverick"  which  ap- 
peared in  the  January-March  1974  issue 
of  the  National  Aeronautics  magazine. 
There  being  no  objection,  the  mate- 
rial was  ordered  to  be  printed  in  the 
Rkcoro,  as  follows: 

PmOOSAK 

Presiding:  Mr.  J.  C.  Owen.  President.  Aero 

Club  of  Washington. 

Invocation:  Chaplain  Henry  Qulkema. 
United  States  Air  Force. 

PreeenUtion  of  Colors  and  National  An- 
them: Color  Guards  of  the  United  States 
Army,  Navy.  Air  Force,  Marine  Corps  and 
Coast  Guard;  the  Langley  High  School  Wind 
Ensemble,  conducted  by  Mr.  George  J.  Horan. 

Musical  Presentation:  The  United  SUtes 
Air  Force  Singing  SergeanU,  directed  by  Cap- 
tain Robert  KuzmlnakL  USAP. 

Master  of  Ceremonies:  The  Honorable  Secor 
D.  Browne. 

Mr.  Jerome  PancluUl  representing  ths 
United  States  of  America. 

Count  Giovanni  Capronl  dl  Talledo  repre- 
senting Italy. 

Mr.  Charles  Crlstofinl  representing  Prance. 

Professor  WlUy  Messerachmltt  represent- 
ing the  Federal  Republic  of  Germany. 

Sir  Archibald  RusseU  representing  Great 
Britain. 

PresenUtlon  of  Wright  Brothers  Memorial 
Trophy:  Mr.  J  B.  Montgomery,  President,  Na- 
tional Aeronautic  Association. 

Response:  The  Honorable  Baut  Golo- 
WATia.  United  States  Senate. 

Dancing:  Fred  Perry  and  his  Orchestra  and 
the  Dixieland  Stompers. 

WaiOHT  Brothxss  M»f  otiAL  T«opht 
The  Wright  Brothers  Memorial  Trophy,  ad- 
ministered by  the  National  Aeronautic  As- 
sociation, Is  traditionally  presented  at  the 
annual  Wright  Memorial  Dinner  sponsored 
by  the  Aero  Club  of  Washington.  President 
Nixon  recently  described  the  award  as  "avia- 
tion's most  coveted  tribute  to  the  courage, 
ingenuity  and  determination  of  OrvlUe  and 
WUbur  Wright." 

This  handsome  sliver  trophy,  a  scale  model 
of  the  original  Wright  airplane,  is  awarded 
for  "significant  public  service  o*  enduring 
value  to  aviation  In  the  United  States."  Al- 
though the  first  presentation  occurred 
December  17.  1948.  the  trophy's  sponsor. 
Godfrey  Lowell  Cabot  of  Boston,  a  former 
NAA  president,  made  It  possible  by  a  trust 
fund  established  In  1936. 

PAST  KECIFIKNTS WRIGHT  BBOTHERS  MEMOKIAL 

TBOPHT 

1948  Dr  William  P.  Durand. 

1949  Charles  A   Lindbergh. 

1950  Grover  C  Loenlng. 

1951  Dr.  Jerome  Hunsak?r. 

1953     Lt.   Gen    James  H.  OooUttle,   USAF 

(Ret.) 
1953     Hon   Carl  Hlnshaw. 


December  19,  1973 

1964  Dr.  Theodore  Vo:,  Karman. 

1955  Dr.  Hugh  L.  Dr  .  1  ■: 

1956  Dr.  Edward  P.  Warner. 
1967  Sen.  Stuart  Symington. 

1958  Dr.  John  F.  Victory. 

1959  William  P.  MacCracken,  Jr. 

1960  Frederick  C.  Crawford. 

1961  Sen.  A.  8.  Mike  Monroney. 

1962  John  Stack. 

1963  Donald  W.  Douglas,  Sr. 

1964  Harry  F.  Guggenheim. 

1965  Jerome  Lederer. 

1966  Juan  Terry  Trlppe. 

1967  Dr.  Igor  I.  Sikorsky. 

1968  Sen.  Warren  G.  Magnuaon. 

1969  WUllam  M.  Allen. 

1970  Hon.  C.  R.  Smith. 

1971  Sen.  Howard  W  Cannon. 

1972  Hon.  John  H.  ShafTer. 

Senatob  Basbt  M.  Golowater 


CONGRESSIONAL  RECORD  —  SENATE 


4242: 


For  bis  leadership  and  Inspiration  to  all 
elements  of  aviation  in  the  United  States, 
both  military  and  civilian,  and  for  serving 
as  an  articulate  spokesman  for  American 
aviation  and  space  In  the  Congress  and 
throughout  the  world,  Senator  Barry  M. 
Goldwater  Is  the  1973  recipient  of  aviation's 
highest  award — The  Wright  Brothers  Me- 
morial Trophy. 

An  active  pilot  since  1929,  Senator  Gold- 
water  has  logged  over  10,000  flying  hours  In 
more  than  90  different  types  of  civil  and 
military  aircraft.  During  World  War  II  he 
served  as  an  Army  Air  Corps  gunnery  In- 
structor, a  ferry  pilot  who  led  the  first  flight 
of  P-47  fighters  across  the  North  Atlantic, 
and  a  wing  commander  with  the  Air  Trans- 
port Command  In  the  China  and  India 
theater. 

Following  the  war  Barry  Goldwater  orga- 
nized the  Arizona  Air  National  Guard,  serv- 
ing as  Its  chief  of  staff  until  his  election  to 
the  United  8tat«s  Senate  In  1952.  He  retired 
from  the  Air  Force  Reserve  as  a  major  gen- 
eral in  1967  after  37  years  of  distinguished 
service. 

Senator  Goldwater  resigned  his  Senate  seat 
in  1964  to  become  the  Republican  nominee 
for  President.  He  was  again  elected  to  the 
VS.  Senate  in  1968  and  assigned  to  the 
Armed  Services  and  the  Aeronautical  and 
Space  Sciences  committees.  As  a  member  of 
these  two  prestigious  Senate  committees,  he 
has  enthusiastically  sponsored  every  research 
and  development  effort  needed  to  maintain 
this  country's  position  of  leadership  in  aero- 
space. 

Long  a  strong  and  outspoken  advocate  of 
American  predominance  in  all  phases  of  avia- 
tion, Barry  Goldwater  has  frequently  and 
eloquently  warned  the  Congress  that  without 
new  technology,  the  United  States  might 
very  weU  become  a  second  class  military  and 
economic  power. 

Senator  Goldwater's  lifelong  Interest  and 
dedication  to  the  advancement  of  aero- 
nautics and  astronautics  Is  known  the  world 
over.  His  tireless  support  of  the  VS.  aero- 
space Industry  Is  second  to  none  among  the 
members  of  Congress.  Twice  he  served  as  the 
President's  personal  representative  to  the 
biennial  Paris  International  Air  Show. 

Born  m  Phoenix.  Barry  Goldwater  at- 
tended the  Staunton  Military  Academy  in 
Virginia  and  the  University  of  Arizona.  His 
name  becomes  the  26th  Inscribed  as  an 
honored  recipient  of  aviation's  most  coveted 
award.  The  Wright  Brothers  Memorial 
Trophy. 

Head  Table  Qtjxsts 

Mr.  WUllam  M.  .Mien,  Wright  Brothers 
Memorial    lYophy    Recipient    1969. 

General  Elarl  E.  Anderson.  USMC.  Assistant 
Commandant,   United   States  Marine  Corps. 

The  Honorable  John  W.  Bamum,  Under 
Secretary  of  Transportation. 

The  Honorable  Seoor  D.  Browne,  Professor, 
Massachusetts  Institute  of  Technology. 


The  Honorable  Alexander  P  Butterfleld, 
Administrator,  Federal  Aviatlor.  .A.<lmlr.;stra- 
tlon. 

The  Honorable  Howard  W.  Cannon,  Wright 
Brothers  Memorial  Trophy  Recipient  1971. 

Count  Giovanni  Capronl  Dl  Talledo,  Presi- 
dent, Capronl  Vlzzola-Oonstruzlonl  .^eronau- 
tlche  S.p.A. 

l#.  Charles  Crlstofinl,  Director  General, 
Soclete   Natlonale    Industrle:le    Aerospatiale. 

Mr.  Andre  Dtimas.  President,  Federation 
Aeronatlque  Internationale. 

General  Richard  H.  Kills,  USAP,  Vice  Chle< 
of  Staff,  United  States  Air  Force. 

Mr.  Jerome  Panclulll,  Founding  Member, 
Aero  Club  of  Washington. 

The  Honorable  James  C.  Fletcher,  Ad- 
ministrator, National  Aeronautics  and  Space 
Administration. 

The  Honorable  Barry  Goldwater,  United 
States  Senate. 

Chaplain  Henry  Qulkema.  United  States 
Air  Force. 

Mr.  Jerome  P.  Lederer,  Wright  Brothers 
Memorial  Trophy  Recipient  1965. 

Mr.  Grover  C.  Loenlng,  Wright  Brothers 
Memorial  Trophy  Recipient  1950. 

The  Honorable  John  L.  McLucas,  Secretary 
of  the  Air  Force. 

Professor  Dr.  Ing.  Willy  Messerschmltt, 
Chairman,  Board  of  Directors,  Messer- 
schmitt-Boelbow-Blphm  OMBH. 

The    Honorable    A.    S.    Mike    Monroney, 
/•Wright  Brothers  Memorial  Trophy  Recipient 
<v  1961. 
^^Ir.  J.  B.  Montgomery,  President,  National 
.flAxsnautlcs  Association. 

/The    Honorable    Prank    E.    Moss,    United 
States  Senate. 

Mr.  J.  C.  Owen,  President,  Aero  Club  of 
Washington. 

Sir  Archibald  Russell,  C.B.E.,  P.R.S. 

Vice  Admiral  Thomas  R.  Sargent,  m, 
U.SC.G.  Vice  Commandant,  United  States 
Coast  Guard. 

The  Honorable  John  H.  Shaffer,  Wright 
Brothers  Memorial  Trophy  Recipient  1972. 

Mr.  Joe  L.  Shosld,  President.  Air  Force 
Association. 

The  Honorable  C.  R.  Smith,  Wright 
Brothers  Memorial  Trophy  Recipient,  1970. 

The  Honorable  Herman  R.  Staudt,  Under 
Secretary  of  the  Army. 

The  Honorable  Stuart  Symington.  Wright 
Brothers  Memorial  Trophy  Recipient  1957. 

The  Honorable  OUn  E.  Teague.  United 
States  House  of  Representatives. 

The  Honorable  Robert  D.  Tlmm,  Chairman, 
Civil  Aeronautics  Board. 

Mr.  Juan  T.  Trlppe,  Wright  Brothers  Me- 
morial Trophy  Recipient  1966. 

General  Fred  C.  Wevand,  USA,  Vice  Chief 
of  Staff,  United  States  Army. 

C;\ptaln  Alexander  W.  Wuerker,  USCO 
(Ret.),  President,  National  Aviation  Cnub. 


Aero  Club  of  Washincton 

Three  score  and  ten  years  ago  man's  age- 
old  dream  of  flying  became  a  reality.  Wilbur 
and  Orvllle  Wright,  on  December  17,  1903. 
successfully  emulated  the  birds;  they  were 
the  first  men  to  fly  In  a  power-driven  vehicle 
heavier  than  air. 

Today  the  far  corners  of  the  world  are  Just 
hours  away.  We  have  reached  the  moon;  a 
space  station  circles  the  earth.  And  we  are 
poised  on  the  threshold  of  manned  flight  to 
the  planets,  and  eventually  the  stars. 

It  is  especially  fitting  that  the  flags  of 
other  nations  are  so  admirably  represented 
here  tonight  as  we  commemorate  the  70th 
anniversary  of  man's  first  mechaniciilly  con- 
trolled, sustained  flight  In  an  airplane;  for 
the  Wrights'  great  Influence  on  aeronautical 
development  abroad  as  well  as  at  home  Is 
now  recorded  history. 

The  dominant  theme  of  tonight's  prog^ram 
Is  International  progress.  It  salutes  the  dra- 
matic technical  accomplishment  between 
two  memorable  aviation  mUestones — the  suc- 


cess of  the  fragile  W'icht  Flyer  of  \<i03  and 
the  emergence  of  the  ir.a.'^elcusly  adiaaced 
supersonic  Concorde  airliner  which  will  soon 
enter  commercial  servloe. 

One  of  the  oldest  aviation  clubs  In  .Amer- 
ica, the  Aero  Club  of  Washington  has  as  a 
fundamental  purpose  the  promotion  and 
recognition  of  slgnlflcant  aviation  acfcJeve- 
ment.  It  sponsors  numerous  wide-ranging 
programs  and  forums  aimed  at  preserving 
and  projecting  this  country's  heritage  In  the 
air. 

Founder  Jerome  FancltilU,  still  an  active 
member,  flrst  proposed  the  club  at  a  aaeet- 
Ing  attended  by  Orvllle  Wright  and  other 
pioneer  Eilrmen  on  August  22,  1908.  It  subse- 
quently received  its  charter  In  1909,  the  year 
a  number  of  Wright  "aeroplanes"  were  buUt 
under  license  in  Prance,  England  and  Ger- 
many. (WUbur  Wright  also  flew  m  Italy  that 
year.) 

ACW  is  the  Washington  chapter  of  the 
National  Aeronautic  Association,  successor 
to  the  old  Aero  Club  of  America  which  or- 
ganized in  1905.  NAA  is  the  official  UJS.  rep- 
resentative of  the  Federation  Aeronautique 
Internationale,  the  world  body  governing 
aviation  competitions  and  records. 

Among  its  interests,  ACW  supports  Na- 
tional Aerospace  Education  Association  ac- 
tivities in  more  than  ISO.CKX)  elementary  and 
secondary  schools  in  the  United  States.  It 
also  assists  the  Smithsonian  Institution's 
National  Air  and  Space  Museum  and  serves 
as  a  platform  for  the  free  discussion  of  timely 
issues  affecting  all  fields  of  aerospace. 

Indeed,  the  triumphant  events  at  Kitty 
Hawk  transformed  our  lives  and  brought  a 
new  dimension  to  man's  relentless  pursuit 
of  global  mobility.  And  as  long  as  dedicated 
men  of  xmderstandlng  work  together  toward 
common  goals,  the  future  of  the  "flying  ma- 
chine" appears  unlimited. 

Aebo  Club  op  Washington  1973 
orncERs 

President,  Mr.  J.  C.  Owen. 

First  Vice  President,  Mr.  James  P.  Bass. 

Second  Vice  President,  Mr.  J.  Donald  Rellly. 

Third  Vice  President,  Col.  Jack  Relter. 
USAF  (ret.). 

Secretary,  Mr.  George  U.  Cameal. 

Treasurer,  Col.  James  M.  McOarry  Jr . 
USAP  (ret.). 

Historian,  Mr.  E.  W.  Roblschon. 

TRUSTEES 

Mr.  Donald  R.  Jackson. 
Mr.  Edward  M.  Lightfoot. 
Mr.  Robert  C.  Smith. 
Mr.  Brian  S.  Tennant. 
Mr.  Harry  J.  Zlnk. 

COMMTTTEE    CR.UBMEN 

Aviation  Education,  Mr.  Michael  J.  Nlsos. 
Awards,  Mr.  Edward  M.  Lightfoot. 
Membership,  Mr.  R.  Dan  Mahaney. 
Programs,  Mr.  John  R.  Alison. 
Publicity,  Mr.  James  R.  Greenwood. 

WRIGHT    BBOTHERS    >t£MOalAL    TROPHY 
COMMrrTEE 

Mr.  J.  B.  Montgomery,  President,  National 
Aeronautic  Association. 

Dr.  James  C.  Fletcher.  Administrator,  Na- 
tional Aeronautic  and  Space  Administration. 

Mr.  Paul  R.  Ignatius,  President,  Air  Trans- 
port Association  of  America. 

Mr.  Karl  O.  Harr,  Jr.,  President,  Aerospace 
Industries  Aa«oclation  of  America,  Inc. 

Dr.  Holt  Ashley,  President,  American  Insti- 
tute of  Aeronautics  and  Astronautics,  Inc. 

Mr.  J.  C.  Owen,  President.  Aero  Club  of 
Washington. 

Mr.  Robert  I.  Stanfield,  President,  Avla- 
tlon/'Space  Writers  Association. 

WRIGHT    memorial    DINIvTER    COMMTTm 

Mr.  Thomas  Turner.  Chairman. 
Mr.  Norman  J.  Snow,  Vice  Chairman. 
Mr.  James  R.  Greenwood. 
Mr.  Donald  R.  Jackson. 


42428 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  19,  197 S 


Mr  Prank  W.  McAb««.  Jr. 
MlA8  Olaiuie  Sberwood. 


K 


PftOPOSKD  RCMAXXS  FOB  I.  B.   MoNTOoanzsT  IN 

Pexskntimg  thx  Weight  Biothexs  Mxmo- 

UAL  TftOPHT  TO  Sknatob  Barjix  OOLOWATm. 

DecEMass  14.  1973 

Mr  Chairman,  honored  guests,  ladles  and 
gentlemen,  tonight  I  have  the  very  great 
privilege  m  Joining  with  you  In  honoring  an 
Individual  whose  lifelong  dedication  and 
contrlbut:  ns  to  air  progress  as  a  national 
legislative  leader  is  unsurpassed.  No  man  in 
government  today  has  been  more  intimately 
associated  with  the  growth  and  development 
of  aviation  In  bcth  Its  civilian  and  military 
applications  than  Senator  Barry  Goldwater 
Tonight  we  also  commemorate  that  his- 
toric first  flight  of  OrvUIe  and  WUbur  Wright 
at  Kitt ,  Hawk  which  established  without  in- 
terruption for  70  vears  the  preeminence  of 
tne  OS.  In  the  field  of  avutlon.  a  rcle  which 
I  fer/ently  hope  our  country  w^lU  never  re- 
linquish. In  honoring  Barry  Ctoldwater.  we 
continue  a  25-year  tradition  of  awarding  to 
an  American  citizen  the  Wright  Brothers  Me- 
morial Trophy  for  significant  public  service 
of  enduring  value  to  aviation  in  the  United 
States  This  award  is  entrusted  to  the  Na- 
tional Aeronautic  Association  which  com- 
bines within  Itself  and  its  many  divisions 
and  araiiates  practically  the  entire  spectmm 
of  US    aviation. 

Time  does  not  permit  me  to  detail  and  do 
Justice  to  Senator  Ooldwaters  Illustrious, 
unprecedented  and  colorful  career  For  this 
reas..n  we've  provided  you  with  a  copy  of 
Natlccl  Aeronautics  Magazine  which  con- 
tains an  m  depth  profile  of  this  outstand- 
ing archlec:  of  t&e  air  age. 

An  a;tlve  pilot  most  of  his  adult  life, 
logging  more  than  10.000  hours  In  96  different 
t>-pes  of  civilian  and  military  aircraft,  an  Air 
Force  Wing  Commander  in  World  War  II — 
Organizer  of  the  Arizona  National  Guard — 
and  as  a  member  of  the  Senate  Armed  Serv- 
ices and  Aeronautical  and  Space  Science 
Commltteee.  he  has  been  a  strong,  eloquent 
and  outspoken  supporter  of  United  States 
predominance  In  ail  phases  of  aviation 

Especially  cognLzr\nt  of  the  role  which  avi- 
ation has  played  In  the  history  of  America 
since  The  First  Flight.  Barry  has  been  at  the 
forefront  of  Congressional  efforts  to  con- 
struct a  National  Air  and  Space  Museum 
to  appropriately  house  The  Wright's  original 
Flyer  In  a  setting  deserving  of  Its  Importance 
to  our  country's  aviation  heritage. 

Like  the  Wrights.  Barry  has  fought  an 
uphill  battle  against  public,  governmental 
and  press  Indifference  and  ap>athy  to  avia- 
tion and  aerospace  progress. 

When  70  years  ago  The  Wrights  unlocked 
the  secret  which  enabled  man  to  conquer 
time  and  space  and  became  the  first  who  ever 
experienced  the  thrlU  of  powered  flight  they 
Immediately  realized  that  what  they  accom- 
plished on  the  sand  dunes  of  Kitty  Hawk 
cou'd  conceivably  change  the  course  of 
history. 

Excitedly  OrvlUe  sent  the  following  tele- 
gram to  his  Sister  Katherlne  In  Dayton. 
Ohio: 

'Success — Pour  Flights  Thursday  morn- 
ing— all  against  21  mile  wind — started  from 
level  with  engine  F>ower  alone — average  speed 
through  air  31  miles — longest  57  seconds — 
inform   press — home  Christmas." 

Katherlne  raced  with  the  message  to  the 
local  newspaper  and  held  the  telegram  out  to 
<he  editor,  offering  him  the  greatest  scoop  of 
the  century.  The  story  has  It  the  veteran 
newsman  read  the  telegram  and  commented 
pleasantly.  "How  nice.  The  boys  wUl  be  home 
for  Christmas," 

Barry  can  well  attest  to  the  similar  frus- 
trations he  has  experienced  in^  his  fight  to 
keep  America  first  In  air  and  space. 

Aviation  has  been  so  much  a  part  of  Barry 
Ooldwater's  life  that  I  can  not  think  of  an- 


other  man  who  la  more  deserving  of  the  rec- 
ognition he  la  being  accorded  tonight. 

The  Citation  accompanying  the  1973 
Wright  Memorial  Trophy  needs  no  further 
ampiLAcatton. 

"Por  his  leadership  and  inspiration  to  all 
elements  of  aviation  In  the  United  States, 
both  military  and  civilian,  and  for  serving 
as  an  articulate  spokeaman  for  American  avi- 
ation and  space  in  the  Congress  and  through- 
out the  world." 

It  is  my  very  great  honor  on  behalf  of  the 
National  Aeronautic  Association  to  request 
the  Vice  President  of  the  United  States  to 
present  the  1073  Wright  Brothers  Memorial 
Trophy   to  Senator  Barry  M.  Goldwater. 

RxMA«Ks  BT  Vies  Pbk^ident  OrxALo  R.  Fobs 
AT  THE  Weight  Memorial  Din  nek  cp  the 
Aeeo  Club  or  Washington.  Washingion 
Hilton  Hotel.  Washington.  D.C,  Pbidat 
E^TENING.  Decembxb  14.  1973 
President  Owen.  Chairman  Browne,  dis- 
tinguished members  and  guests  of  the  Aero 
Club: 

It  Is  a  pleasure  for  me  to  Join  with  so 
distinguished  a  company  this  evening,  ee- 
peclaUy  to  pay  tribute  to  this  year  s  recipient 
of  the  Wright  Brothers  Memorial  Trophy — 
my  old  friend  Barry  Goldwater 

Looking  over  the  list  of  this  evening's 
speakers  and  the  honor  roll  of  pas',  recipients 
of  this  award  Is  somewhat  like  reading  a  con- 
cise history  of  aviation.  Elach  name  summons 
up  some  great  accomplishment  or  memorable 
moment  In  the  history  of  flight. 

As  we  think  of  these  accompLshments. 
we  think  not  only  of  technological  triumphs, 
but  we  also  think  of  great  triumphs  of  the 
human  spirit. 

All  of  us  here  this  evening  can  remember, 
for  example,  the  great  airlift  that  kept  the 
city  of  West  Berlin  alive  and  free  during 
the  darkest  days  of  the  Cold  War.  And  simi- 
larly. Just  a  few  weeks  ago.  another  record- 
breaking  American  airlift  provided  the  tiny 
state  of  Israel  with  the  means  to  sustain  Its 
independence. 

Hardly  a  week  passes  that  doe?  not  see  an 
aerial  reocue  mission  to  the  victims  of  some 
natural  dlsaaiter— a  flood,  a  drought  or  a 
famine.  It  all  adds  up  to  an  Impressive  rec- 
ord of  courage,  humanity,  and  resourceful- 
ness on  the  part  of  those  who  build  and 
fly  our  aircraft  In  war  and  In  peace.  In  and 
out  of  uniform. 

The  spirit  I  have  Just  described  Is  well  rep- 
resented here  tonight,  among  the  distin- 
guished speakers  from  several  different 
countries,  each  of  which  has  piade  a  distinc- 
tive contribution  to  this  legacy  of  light 

In  twenty-flve  rears  In  the  House  of  Rep- 
resentatives, there  were  times  when  I 
thought  of  myself  as  a  flyer,  too  Sometimes 
walking  back  alone  to  my  office  after  a  par- 
ticularly l>ad  vote.  I  identified  with  the 
famous  World  War  I  fighter  ace.  Snoopy. 
There  were  even  days  when  I  was  convinced 
I  had  been  shot  down  behind  enemy  lines. 

But  most  of  the  time,  it  was  the  flyer's 
sense  of  exhilaration  and  adventure  which 
characterised  my  experiences  In  the  House. 
And  In  addition,  there  was  that  strong  sense 
of  comraJeship.  of  partnership,  that  links 
those  who  share  in  great  undertakings — 
aviators  and  legislators  alike. 

No  one  I  can  think  of  from  my  daya  on  the 
Hill — and  I  look  forward  to  spending  many 
more  of  them  there  executing  my  duties  as 
President  cf  the  Senate — better  reflects  that 
spint  of  honorable  partnership  than  our 
guest  of  honor  this  evenlnjj.  Barry  Gold- 
water. 

As  a  legislator,  as  an  Individual  of  cour- 
age, character  and  Integrity,  and  as  a  darned 
good  pilot  In  war  and  i)«ace.  Barry  Gold- 
water  Is  truly  a  unlaue  man. 

One  of  the  past  recipients  of  this  award, 
that  great  American  Colonel  Charles  A.  Lind- 
bergh, once  remarked  that  flying  started  out 


as  an  art  and  ended  up  as  a  science.  I  be- 
lieve It  Is  both.  Like  politics.  It  represents 
an  Intricate  blend  of  human  feelings  and 
technical  principles. 

O.er  a  long  career,  great  politicians,  like 
great  pilots,  are  bound  to  fly  some  pretty 
rough  missions  under  tough  conditions.  But 
It  is  those  tough  conditions  that  bring  out 
the  oest  in  a  person,  be  he  a  pilot  or  a  politi- 
cian. 

One  thing  13  certain.  As  long  as  aviation 
and  politi'3  can  produce  m<?n  like  the  one 
we  honor  here  th;s  evenl;ig.  both  fields  are 
In  pretty  good  shape  And  difficult  as  the  pre- 
vailing weaiher  may  be  a.  times,  we  can 
count  with  confidence  on  a  safe,  happy  land- 
ing. 

Babry    M.    OoLowA'rEB — Aviation's    Man    or 

THE  Yeab 

(By   Marty   Martlues) 

An  old  adage  says  "cariosity  kUled  the 
cat."  But  In  the  case  of  Se:iator  Barry  M. 
Goldwater  (R-Ajlz.).  curiosity  kicked  off  the 
avlatiou  interest  that  ultimately  led  to  his 
selection  as  the  1973  Wright  Brothers'  Me- 
morial Trophy  recipient  as  aviations  man- 
of-the-year. 

Unlike  most  pilots,  the  Arizona  senator 
dldnt  begin  Cyl..g  because  he  >earncd  to 
""touch  the  face  of  God  "  though  reverence 
of  flight  would  come  later  Rather,  it  was  his 
hobby  of  amateur  radio  and  a  curiosity  about 
tha  lack  of  air-to-ground  communications 
that  111  1939  introduced  him  to  aviation. 

""I  wondered  why  we  didn't  have  air-to- 
ground  radio,  so  I  started  going  out  to  the 
airport,"  he  remembers. 

The  trai:ier  he  flew  then  not  only  did  not 
have  a  rad.o,  "it  dldn"t  have  an  air  speed  In- 
dicator or  even  brakes;  it  Just  had  winds,  that 
was  it.""  he  says  with  a  smile  that  reveals 
more  than  his  word^. 

But  it  was  enough:  It  was  the  beginning 
of  an  aviation  interest  that  took  on  the  look 
of  a  fulltlme  aviation  career,  which  it  almost 
became. 

He  was  19  when  his  curloalty  pushed  him 
onto  his  first  airfield.  A  year  later  he  earned 
his  first  ticket,  number  18352.  by  soloing  In  a 
Great  Lakes  Trainer.  Since  then  he  has  flown 
159  different  aircraft  and  logged  more  t.h^n 
10,000  flight  hours. 

In  his  fledgling  aviator  years,  Goldwater  ^ 
fiew  all  of  the  early  airplanes,  but  "never 
anything  with  an  OX-5.  I've  ne.er  been  able 
to  Join  that  outfit  (the  OX-5  Club)."  he  says 
with  a  tone  of  regret.  He  attempted  to  get 
Into  the  military  aviation  program  In  1932, 
but  was  unable  to  pass  the  eye  examination. 
By  then,  he  held  a  second  lieutenant's  com- 
mission In  the  U.S.  Army  Infantry  Reserve, 
and  was  deeply  Involved  In  the  family  de- 
partment store  buslnees. 

About  that  time  he  nearly  became  involved 
In  an  airline  operation. 

"The  pilot  who  gave  me  my  first  Instruc- 
tion was  interested  In  starting  what  later  be 
came  Arizona  Airways  or  Grand  Canyon  Air- 
ways; he  asked  me  to  Join  him.""  said  the 
senator,  ""I  remember  flying  over  to  look  at 
an  old  wooden  trl-motor  Bach.  "They  wanted 
♦3.500  for  it  and  I  had  about  $500.  1  Just 
couldn't  see  it.  so  I  passed  It  up.  My  friend 
did  go  Into  the  airline  business  and  eventu- 
ally was  bought  out  by  Trans  World." 

In  1941.  when  It  became  obvious  there  was 
going  to  be  a  war.  Goldwater  volunteered  for 
service  as  an  infantry  reserve  officer.  By 
then,  he  also  held  his  commercial  pilot 
license.  Although  he  didn't  have  an  Air 
Corps  pilot  rating,  he  was  assigned  flghter 
gunnery  training  duties  at  Luke  Field,  near 
Phoenix. 

Through  a  bit  of  conniving,  he  got  his 
first  taste  of  military  fiylng. 

"I  made  a  deal  with  pUota  there."  he  re- 
calls. "They  wanted  pictures  of  themaelve* 
with  their  aircraft  and  I  had  the  camera:  so 
I  said,  'Til  take  your  pictures  and  make  them 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


for  you,  but  I  want  a  litUe  time  at  the  stick." 
It  dldnt  take  me  long  to  get  a  couple  hun- 
dred hours  In  the  AT-C." 

When  the  Air  Oorps  originated  the  Service 
Pilot  rating,  Goldwater  l>e<Muiie  one  of  the 
flirst  to  leoelve  the  ""8"  embeijiahed  wings. 
That  began  a  military  aviation  association 
that  oonunudd  until  he  retired  from  the  Air 
Force  Reserve  In  1967  as  a  major  general, 
after  37  yean'  total  military  servloe. 

Following  the  war  he  organized  and  served 
as  chief  of  stafir  of  the  Arizona  Air  National 
Guard,  until  he  was  elected  to  the  United 
States  Senate  in  1952  At  that  point  he  had 
to  relinquish  his  National  Guard  afflll&tlon, 
so  he  switched  to  the  Air  Force  Reserve, 

In  25  years  of  piloting  military  aircraft, 
the  senator  has  flown  everything  from  the 
AT -6  to  the  supersonic  SR-71,  The  super- 
sonic filght  reached  a  speed  of  Mach  3.1  and 
an  altitude  of  83.000  feet. 

"While  in  the  Air  Force  I  tried  to  fly  every- 
thing they  had,  that  I  could  get  my  hands 
on,"  says  the  senator.  And  he  has.  Aviation 
manufacturers  know  of  his  avid  aviation  In- 
terst;  consequently,  he  has  been  Invited  to 
fly  practically  every  new  airplane  built,  either 
at  the  primary  controls  or  with  an  Instructor 
pilot. 

Goldwater,  the  aviator,  has  built  up  an 
Interest  in  all  aspects  of  flying.  He  holds 
ratings  for  Jet.  multlenglne  (land  and  water) , 
helicopter  and  gilder  operations.  He  has  flown 
off  aircraft  carriers  and  engaged  In  mock 
combat. 

When  It  comes  to  flying,  "there  Is  very 
little  I  havent  done,"'  he  says  matter  of 
factly. 

During  World  War  Two  his  duUes  Included 
services  as  chief  pilot  of  Air  Transport  Com- 
mand's Crescent  Airline  and  Fireball  Airline. 
Crescent  Airline's  main  mission  was  resupply 
of  B-29  operations.  Its  C-Ms  flew  across  the 
North  Atlantic  to  India  Fireball  Airline  used 
C-47S  and  flew  from  Miami,  across  the  South 
AUantlc.  thrtnigh  Karachi  and  terminated  at 
Chebwa. 

He  recalls  flying  the  C-548  across  the  lower 
Hump  to  see  If  It  was  a  practical  route,  "but 
It  never  was."  he  says.  "Above  15.000  feet 
that  airplane  Just  dldn"t  fly  too  good." 

Eventually  he  returned  to  the  kind  of  fly- 
ing he  enjoyed  best — flghter  planes.  Lament- 
Ingly.  he  says.  "I  kept  trying  to  get  into 
combat,  but  never  could  do  it  ...  I  was 
too  old,  they  said  Guess  I  was  a  little  bit 
too  early;  they're  flying  them  past  that  age 
now." 

Despite  all  the  modem  aircraft  the  senator 
has  flown,  he  goes  back  to  the  war  years  for 
his  favorite, 

"It's  a  toes  up  between  the  P-40  and  the 
P-61.  The  P-40  because  It  was  the  flrst  In- 
line high-powered  flghter  that  I  flew,  and  the 
P-61  because  It  was  highly  maneuverable  and 
exciting  to  fly:  If  I'm  really  pinned  down. 
I"d  say  the  P-61  has  the  edge" 

Why  did  he  pick  a  fighter  over  a  transport? 
"I've  always  liked  slngle-englned  planes."'  he 
says.  "In  them  you  are  the  boss  and  you  have 
to  do  your  own  work.'" 

That  statement  marks  him  as  his  own 
man.  a  fact  that  Is  obvious  from  the  position 
he  takes  In  his  political  life  on  many  national 
issues.  Long  exi>erlenoe  and  a  deep  belief  In 
aviation  cause  him  to  champion  a  strong 
military  aerospace  force,  against  stiff  politi- 
cal opposition.  Similarly,  he  defends  the 
American  aviation  Industry  against  those 
who.  In  his  words,  wage  "what  amounts  to  a 
senseless  war  on  science  and  technology, 
which  is  threatening  to  reduce  America  to  a 
second-class  military  power  and  a  second-  or 
third-class  economic  power."" 

His  vigorous  support  of  the  SST  was 
spurred  on  by  his  belief  that  the  supersonic 
transport  represented  the  next  step  in  the 
development  of  aviation,  and  that  without 
the  development  program,  this  country  stood 
the  chance  of  losing  its  prewimlnent  position 
In  the  field  of  civil  aviation. 


42429 


The  senator  ha&n"t  changed  his  mind,  as 
Is  evidenced  in  his  report  on  tbe  1973  Parts 
Air  Show,  He  served  as  President  Nixon's 
representative  there,  and  viewed  both  the 
Russian  Tu-144  and  the  British-French  Con- 
corde, both  supersonic  transports. 

In  his  report  to  the  President,  he  once 
again  expressed  his  conviction  that  much 
must  be  done  if  the  United  States  desires 
to  retain  Its  position  of  superiority  in  avia- 
tion. He  wrote :  "We  In  America  have  to  wake 
up  to  the  fact  that  the  Europyeans  Intend, 
not  only  to  catch  up.  but  to  replace  us  as 
the  world  leader  In  aeronautics  and  every- 
thing associated  vrtth  the  field." 

These  examples  of  his  efforts  to  move  avia- 
tion ahead  just  scratch  the  surface  of  the 
many  contrtbutlons  he  has  made  over  his 
lifetime.  The  selection  committee  that  named 
him  Wright  Trophy  recipient  summed  it  all 
up  In  the  citation  that  accompanies  the 
award.  It  reads:  "For  his  leadership  and  in- 
^Iratlon  to  all  elements  of  aviation  In  the 
United  States,  both  military  and  civilian, 
and  for  serving  as  an  articulate  spokeeman 
for  American  aviation  and  ^>ace  In  the  Con- 
gress and  throughout  the  world."' 

Airline  pilots  are  generally  aware  of  Sen- 
ator Goldwaters  support  of  the  Amertcan 
aviation  industry.  Many,  too,  know  he  Is  an 
accomplished  airman.  Pew,  however,  know 
that  he  participated  in  one  of  military  avia- 
tion's "'moments  of  history," 

Air  Line  Riot  has  obtained  a  diary  penned 
by  then  Captain  Goldwater  who  fiew  on  that 
mission.  It  reveals  that  he,  too.  has  been 
touched  by  the  mysterious,  seldom  under- 
stood relationship  that  exists  between  a  pilot, 
his  airplane  and  the  environs  of  space. 

Here  is  his  account,  condensed  for  space 
considerations. 

JtrLT    16,    1843 

Capt.  "Hap"  Croswell,  commanding  officer 
of  the  27th  Ferrying  squadron,  which  makes 
him  my  CO.,  casually  turned  to  me  and  in- 
formed me  that  I  was  one  of  the  first  10 
pUots  selected  to  ferry  the  P-47s  across  the 
North  Atlantic.  I  wa6n"t  a  whole  lot  surprised 
because  pursuit  ships  are  what  I  fly,  and 
those  kinds  of  pilots  are  sort  of  scarce  around 
here.  Well,  If  I  wasn't  surprised,  I  surely 
felt  highly  flattered;  for  this  trip  Is  going 
to  be  the  first  time  In  history  that  a  single- 
engine  military  plane  is  going  to  be  ferried 
across  anybody's  ocean  and  here  I  am  going 
along. 

The  Idea  behind  this  flight  Is  to  eliminate 
a  long  ocean  voyage  via  boat  to  Europe.  Lets 
step  aside  and  suppose  for  a  moment.  Sup- 
pose one  of  those  boats  would  hold  50  air- 
planes— now  suppose  a  submarine  sank 
one — that's  50  airplanes  on  the  bottom  of 
the  drink  and  they  don't  fly  worth  a  damn 
with  sea  weed  flopping  behind  and  a  shark 
for  a  pilot.  Now  suppose  we  start  off  and 
fly  60  across — then  suppose  the  law  of  acci- 
dents gets  real  out  of  line  and  we  lose  say 
6,  which  Is  10%,  which  Is  far  greater  than 
the  ATC  loss  expectancy.  That's  a  hell  of 
a  lot  better  than  losing  the  50  and  those 
46  win  kill  a  lot  more  Germans  than  the  50 
Old  Davey  Jones  has  on  his  field  All  that 
Is  my  Idea  of  why  fly  a  flghter  across.  Any 
similarity  to  the  facts  Is  purely  accidental. 

JtrLT   16 

First  airplane  and  flight  assignments  are 
made — I  have  P-47  8650,  itS  In  the  ist  flight. 
I  am  naming  her  Peggy-G  after  you  know 
who.  She  (Peggyi  has  led  me  through  the 
best  part  of  my  me;  so  I  figured  I  might  as 
well  follow  her  across  the  Atlantic. 

There  are  two  flights  of  five  P-47s  each, 
and  each  one  will  be  led  by  a  B-24.  In  front 
of  the  entire  project  will  be  a  C-87  (cargo 
version  of  the  B-24)  acting  as  flight  leader. 
It  was  decided  to  hold  all  intercom  on  6000 
mgs  and  all  transmitters  have  been  set  for 
this  frequency.  That  is  on  our  #2  band  and 
on  #1  Is  the  Army  4495.  Por  homing  (radio 


compass)  we  are  using  1200  mga  This  is  used 
only  if  a  47  gets  lost  from  the  main  flight. 
This  radio  compass  is  a  wonderful  thing. 

Wing  tanks  double  the  gas  load  of  this  ship 
and  allow  10  hours  cruising  at  186  Indicated 
air  speed.  It  also  adds  1,800  pounds  to  the 
ship,  which  will  then  total  over  15,000 
pounds,  AU  this  weight  and  its  dlstrtbutlon 
presents  problems  In  takeoffs  and  landings 
and  trim  In  actual  flight. 

JULT    17 

About  everything  has  been  hashed  out  now 
and  we  are  getting  eager.  Captain  Turner 
(Pappy)  Is  the  leader  He  is  very  good  and 
extremely  careful  and  I  feel  secure  in  his 
decisions  and  plans.  If  there's  a  mari  who 
can  do  It,  he  can.  Well,  Old  Peggy  Is  still  laid 
up  so  I  didn't  take  her  up  today— Tomorrow 
thol! 

JtTLT   18 

WeU,  the  Old  Gal  flnaUy  got  her  instru- 
ment fixed.  She  and  I  had  an  all  day  session 
In  the  blue,  testing  all  radio  equipment  and 
getting  accustomed  to  the  Bendlx  radio  com- 
pass. That  darned  thing  is  a  honey — points 
right  to  where  you  should  go  and  by  God 
the  first  thing  you  know  you're  there. 

My  parachute  weighs  75  pounds.  The  cock- 
pit seat  Is  a  rubber  boat  all  folded  up  with  a 
bottle  of  carbon  dioxide  to  blow  it  up.  That 
boat  Is  kind  of  hard  and  this  thing  at  the 
end  of  my  spine  Is  kind  of  soft  so  tonlte  the 
tall  end  of  me  is  sore,  like  riding  a  horse  for 
the  first  time. 

Things  are  popping  now-  There's  a  mass 
filght  for  1,000  miles  nonstop  tomorrow  that 
will  take  5  hours. 

JXTLT    19 

This  morning  a  non-stop  cross-country  was 
agreed  on  as  a  fuel  consumption  test.  Peggy 
Q  rose  into  the  air  without  a  murmur  after  a 
run  of  about  3,500  feet,  coaxed  on  by  2,300 
horsepower. 

After  three  hours  my  rear  was  a  mass  of 
dead  beef  and  I  squirmed  first  one  way  then 
another.  One  doesn't  squirm  far  In  a  pursuit 
ship  .  .  .  frankly  a  virgin  horse  ride  offers 
far  more  comfort.  After  six  hours  plus  we 
landed  back  at  NCAAB.  Old  Peggy  went  like 
a  top  all  the  way — lowest  manifold  pres- 
sure— lowest  fuel  consumption  and  cooleet 
engine  of  the  lot.  She's  a  honey,  and  I  mean 
from    the    word    "clear"    to   "switches    off." 

JTTLT   23 

This  afternoon  what  we  have  all  been 
waiting  for  started.  At  4:45  we  took  off  from 
Republic  Field  at  Parmlngdale  and  headed 
North  and  East  .  ,  ,  across  Long  Island  Sound 
to  the  Coast  of  New  England  then  over  New 
Haven  and  the  Yale  Bowl— Harvard  and  Bos- 
ton—then along  the  rocky  coast  of  Maine. 
The  day  was  beautifully  clear  and  every- 
where one  looked  there  were  green  forests 
and  silvery  lakes. 

We  landed  a  few  miles  south  of  the  Ca- 
nadian border.  Peggy  ran  like  a  million — her 
2,CK)0  horses  Just  purred  along  ungrumbllng 
hour  after  hour,  drtnklng  up  her  70  gals  of 
gas  each  60  minutes.  This  field  is  Presque 
Isle.  It  Is  the  Jump-off  place  for  North  At- 
lantic crossings.  Ground  speed  185  MPH. 
average  alt.  3,000  feet — weather  clear — air 
smooth. 

JtTLT    24 

This  morning  we  were  Issued  North  At- 
lantic manuals,  charts  and  marked  maps  . . . 
briefed  for  2\^  hours  on  the  terrain  and  ge- 
ographic features  we  would  encounter  from 
here  clear  across. 

JULY  26 

Left  Presque  Isle  this  morning  at  1000, 
The  carpet  that  stayed  under  us  was  the 
same  lake  studded  one  of  Maine  and  It  ^- 
malned  so  until  we  entered  Quebec  at  the 
head  of  the  Bale  de  Chaleur.  Landed  at  Goose 
Bay  Air  Base  In  Labrador.  Distance  today 
576  miles.  Time  3:30,  speed  185,  altitude  5,- 


42430 


CONGRESSIONAL  RECORD  —  SENATE 


December  19, 


1973 


000    feet,    we*tber — thundershowers — rough 

•XX. 

JXJ1.T   28 

It  looka  like  we  will  be  here  for  a  long 
tline.  Oiir  orders  are  to  make  each  leg  of  thla 
flight  CFR  (Contact  Plight  BvUes)  and  that 
means  at  least  a  1.500-foot  celling  clear 
acroee.  Weather  here  tells  us  there  has  been 
only  one  such  a  day  all  year;  so  Ood  knows 
when  we  will  leave. 

AUGUST    1 

Ye  Oods,  another  month  gone  by — soon  It 
will  be  another  year  We  have  been  here  Just 
a  day  short  of  a  week  and  still  no  weather 
for  us  U3  clear  .  .  .  either  we  go  on  with  lese- 
ened  weather  minlmums  or  we  return  to  the 
States  and  call  It  off.  I  hope  It  isn't  the  lat- 
ter, but  I'm  beginning  to  think  that  is  what 
will  happen. 

There  are  many,  many  combat  crews  In 
here  on  their  way  across  They.  too.  are  held 
by  the  weather,  but  should  be  getting  out 
soon. 

AUGUST    7 

General  Giles  flew  up  and  told  us  that  by 
God  It  didn't  make  any  difference  where  an 
engine  quit.  That  as  far  as  he  was  concerned 
i;  it  had  to  quit  he  wanted  lots  of  air  be- 
tween him  and  the  drink  and  for  us  to  get  on 
our  way.  That  was  like  setting  off  dynamite, 
•cause  all  of  us  had  been  waiting  too  long 
to  hear  It.  There  was  a  lot  to  do — top  off 
tanks,  check  oxygen,  check  oil.  delcer  fluid, 
radios,  air  in  tires,  control  surfaces,  etc. 

Weather  briefing  told  us  we  would  find  Ice 
at  5.000;  so  we  decided  to  fly  at  7,500,  above 
all  clouds  8Lnd  moisture.  At  1445  EST  the 
ships  took  the  air.  I  used  turbo  and  drew 
about  48  Inches  on  takeoff  holding  the  ship 
with  brakes  untU  I  reached  40  inches.  Then, 
with  a  slow  thrust  forward.  Old  Peggy  G 
started  down  the  smoothest  runway  I've 
ever  seen.  She  was  airborne  by  4,000  feet 
and  120  miles  an  hour. 

We  climbed  to  7.600  topping  a  thick  layer 
of  stratus.  For  140  miles  we  were  above  the 
clouds,  which  told  vis  we  were  stUl  over  land. 
Ahead  the  clouds  suddenly  stopped  ar.d 
beyond  that  was  the  deep  rich  blue  of  the 
Davis  Straits  of  the  North  Atlantic. 

I  got  a  might  squeemlsh.  This  was  my  first 
solo  flight  over  an  ocean  and  with  only  one 
enghje.  Well.  I  said  the  Lord's  Prayer  and 
asked  Him  to  do  right  by  all  of  us— then 
looked  at  all  my  instruments — felt  of  my 
saready  tired  rear  and  settled  down  to  my 
Job.  Miles  before  Cape  Harrison  we  could  see 
gigantic  ice  bergs  floating  In  the  sea  Even 
from  7.000  feet  they  were  massive  and  cold 
looking  as  they  floated  lazUy  In  the  current. 

One  hour — two  hours — three  hours  then 
land  sihead — way.  way  ahead,  but  land.  Be- 
lieve me  land  looks  darned  good  to  a  man 
who's  used  to  seeing  it  every  place  he  looks. 

As  we  passed  a  line  roughly  lying  between 
Cape  Desolation  on  the  north  and  Cape 
Egede  on  the  south  the  clouds  suddenly 
stopped,  and  there  below.  I  saw  a  sight  that 
If  I  live  a  hundred  years  I  will  never  forget. 
A  rich  blue  quiet  sea  flashed  by  a  very  rough 
rocky  coastline  and  Jutting  Into  this  coast- 
line for  miles  manv  deep-cut  fjords  These 
fjords  usually  ended  at  the  foot  of  a  glacier 
and  they  would  be  literally  covered  with 
thou.sand3  of  iBirvte  and  small  icebergs  that 
had  broken  from  the  glacier  They  locked  like 
salt  on  a  dark  cloth.  Then  fjords,  void  of 
glaciers,  would  be  a  deep  blue.  The  glaciers 
ran  like  long  rivers  of  lather  to  the  !ce  cap. 
Black  gmnlte  peaks  stick  through  thli  Icy 
topping  like  candles  on  a  cake. 

Landed  at  Bluwle  West  I — Steel  mesh  land- 
ing strip:  Distance  flown — 776  mile* — 4  hours 
15  minutes,  ground  speed  181 — weather 
good — air  smooth.  296  gals. 

AUGUST    8 

Up  early.  After  a  short  weather  briefing 
we  went  to  our  ships  for  takeoff.  Peggy  ran 


like  a  million  and  took  on  the  first  try  In 
spite  of  freeelng  weather  the  nlte  before.  We 
went  to  11.500  feet  and  levelled  off  abce 
Greenland's  Ice  cap.  Now  nothing  I  can  say 
about  this  will  give  you  any  idea  of  the  way 
It  hlta  you.  You  will  have  to  Imaglnt  an  area 
over  400  miles  long  and  some  300  miles  wide 
as  white  or  whiter  than  the  meet  brtlllant 
snow  you  have  ever  seen.  Only  In  a  few  places 
do  black  snow  thatched  peaks  stick  through. 
This  Is  solid  Ice  reaching  measured  thickness 
of  over  8,000  feet.  This  cap  sort  of  leaks  down 
Into  the  fjords.  All  along  It  are  tremendous 
crevices  or  cracks  many  hundreds  of  feet 
deep.  These  glaciers  run  to  the  water  and 
there,  slowly  break  off  Into  icebergs 

Over  the  blue  North  AUantlc  again.  Out- 
side air  temperature  was  right  at  freerlng 
all  the  way.  and  occasionally  I  oould  see  the 
right  outboard  engine  of  Lead  1  clearing  Its 
carburetor  of  Ice  At  the  end  of  3  ^  30  hours 
the  snowcapped  volcanic  mountains  of  Ice- 
land came  Into  view.  We  went  Into  echelon 
10  minutes  out  from  Meeks  Field  and  after 
4+20  hours  Peggy's  wheels  set  down  on 
another  foreign  soil  We  are  but  2'  or  130 
miles  south  of  the  Arctic  Circle  and  the  tem- 
perature doesn't  let  us  forget  that.  Distance 
74fl — alt.  7.000 — weather  good — ground  speed 
191. 

AUGUST    1 1 

Schedule  called  for  a  1045  weather  briefing 
and  a  1300  takeoff.  Our  weather  brief  and 
charts  showed  a  2.000-foot  celling  with 
showers  and  tops  at  13,000,  so  we  decided  on 
the  top. 

Takeoff  at  1230.  Peggy  G  as  usv.al  checked 
perfectly.  I  have  not  had  even  an  Indication 
of  anything  but  perfection  thus  far.  I  love 
to  take  her  off  with  all  her  3,000  horses  nin- 
nlng  so  smoothly  and  the  big  turbo  behind 
me  roaring  out  Its  boost  to  power  She  seems 
to  float  off.  In  spite  of  her  15.300-pound 
weight. 

It  was  bitter  cold  at  altitude — the  ther- 
mometer going  to  10*  below  O'C.  However  the 
cockpits  of  these  ships  are  always  warm,  so 
we  didn't  mind.  We  were  flying  above  the 
clouds— up  there  In  the  beauty  that  some- 
times Is  all  that  holds  a  man  to  flying.  Soft, 
fleecy  clouds  underneath  surrounded  by  tall 
cumuliis  reaching  thousands  of  feet  above 
us — these  clouds  are  the  reward  for  a  hard 
day's  work. 

Today  they  estimated  Stamaway  at  2-1-50 
hours,  and  on  the  dot  I  looked  through  a 
hole  In  the  clouds.  There  on  the  shimmering 
Atlantic  was  the  northern  shore  of  Scotland. 
In  Just  a  short  hour  and  a  few  minutes  we 
were  over  the  field  at  Prestwlck  after  passing 
near  Ben  Lomond  and  Loch  Lomond.  Peggy's 
wheels  touched  Just  4  +  20  after  takeoff  hav- 
ing covered  904  miles  In  that  time. 

I  hate  to  say  goodbye  to  her  as  she  Is  a 
wonder,  but  I  have  admonished  whoever  gets 
her  by  em  entry  In  the  Form  1  to  "Fly  her  like 
an  angel  and  fight  her  like  a  devil." 

Mission  completed:  Aug.  11.  1943.  Miles 
flown,  3.750.  Time,  19:40.  Average  speed.  190 
MPH. 

Reflecting  on  the  flight,  the  senator  says: 
"We  obviously  didn't  prove  what  we  were 
trying  to.  that  we  didn't  have  to  ship  fighter 
planes  aboard  a  !ihlp.  That  one  flight  was  the 
\ttst.  Now  they  fly  Jets  over  both  oceans  with- 
out any  problems." 

Through  the  years,  the  flying  senator  has 
maintained  his  ham  radio  Interest  and  Just 
recently  retired  as  president  of  the  Quarter 
Century  Wireless  Association  He  admits  that 
"the  avionics  part  of  flying  has  always  been 
my  major  Interest.  I  like  Instrument  flying. 
I  think  It's  a  real  challenge.  I  have  watched 
the  development  of  avionics  with  great  In- 
terest and  I  think  we're  Just  beginning  to 
knock  on  the  door." 

The  senator  expects  to  see  the  day  when  he 
can  put  a  computerized  flight  plan  Into  an 
autopilot  and  "as  soon  as  departure  control 
clears  me,  bit  a  button  and  fly  to  anyplace 


I  bought  a  Ucket  for.  Not  only  wUl  It  take 
me  there,  but  It  will  get  me  Into  a  landing 
sequence  and  let  me  land." 

Still  averaging  about  300  flight  hours  per 
year,  he  gets  the  chance  to  "fly  all  the  new 
avionics  that  come  out,"  and  says  that  "each 
Uttle  piece  makes  it  a  little  easier  and  a  little 
safer"  He  agrees,  however,  that  automation 
causes  more  of  a  workload  from  a  fatigue 
standpoint.  He  says  It  "creates  a  mental 
fatigue  which  Lb  worse  than  a  physical  one 
.  .  .  particularly  on  a  long  filght  when  you 
begin  to  have  avionics  problems  that  have  a 
direct  bearing  on  where  you  are  going  or  on 
your  ability  to  get  there." 

He  feels,  however,  there  will  t)e  less  avionics 
failures  in  the  future  because  they  are  "be- 
coming more  and  more  dependable." 

Total  automation  may  be  the  thing  of  the 
future,  and  he  "welcomes  any  improve- 
ments." But.  he  says.  "It's  not  that  simple. 
You  still  have  to  have  a  pilot  up  there  who 
has  to  command  an  airplane  filled  with  up  to 
600  people;  and  he  has  to  be  good,  for  he  Is 
the  ultimate  back-up." 

With  so  many  aviation  accomplishments 
already  recorded  on  his  slate  of  life,  it  Is  dif- 
ficult to  Imagine  there  are  any  others  left 
for  him  to  pursue.  He  sees  It  differently. 

"The  only  rating  I  dont  have  Is  that  of 
an  airline  pilot."  he  says,  "and  I've  made  up 
my  mind  I'm  going  to  get  It  when  I'm  not  so 
tied  down  with  politics.  It  would  mean  going 
back  to  school.  I  don't  worry  about  the  fiy- 
lug.  but  whe.a  you  get  older,  learning  the 
rules  and  taking  a  written  examination 
could  be  a  dog." 

It  is  the  type  of  goal  one  would  exx>ect  of 
aviation's  man  of  the  year. 

GoLDWA'TkB — Winced  Maverick 

An  eight-pound  stone  has  been  hewn  from 
the  memorial  granite  boulder  placed  by  the 
National  Aeronautic  Association  at  Kitty 
Hawk,  North  Carolina,  to  mark  man's  first 
flight  in  heavler-than-alrcraft.  Mounted  on 
the  stone  is  a  silver  scale  replica  of  the  orig- 
inal flying  machine  of  WUbur  and  OrvlUe 
Wright,  builders  of  the  first  successful  air- 
plane. 

That  replica  atop  the  symbolic  granite  Is 
the  Wright  Memorial  Trophy,  aviation's  high- 
est tribute  to  the  courage.  Ingenuity  and  de- 
termination of  the  Wright  brothers.  For  1973, 
NAA's  president  J.  B.  Montgomery  presents 
this  most  coveted  award  to  Senator  Barry 
Morris  Gold  water  on  December  14  at  the 
Annual  Wright  Brothers  Memorial  Dinner  In 
Washington,  D.C. —  hosted  by  The  Aero  Club 
of  Washington,  one  of  the  oldest  aviation 
clubs  in  America. 

The  Wright  Award  Is  made  annually  by  the 
NAA  for  significant  public  service  of  enduring 
value  to  aviation  In  the  United  States.  The 
official  citation  to  Senator  Goldwater  reads: 
"For  his  leadership  and  Inspiration  to  all  ele- 
ments of  aviation  In  the  United  States,  both 
military  and  clvUlan,  and  for  serving  as  an 
articulate  spokesman  for  American  aviation 
and  space  In  the  Congress  and  throughout 
the  world." 

But  the  Senator  from  Arizona  knows  that 
In  the  spirit  of  flight  there  Is  something  more 
than  Just  the  words  of  a  citation.  Like  the 
35  recipients  before  him,  Barry  Goldwater 
has  been  touched  by  the  winds  that  blow 
across  that  open  field  on  Kill  Devils  Hill. 
They  are  the  winds  that  capture  some  men's 
minds  and  vision  In  such  a  manner  that  com- 
pels them  to  dedicate  their  lives  to  further- 
ing man's  conquest  of  air  and  space. 

A  strong  and  outspoken  supporter  of  United 
States  predominance  In  all  phases  of  aviation. 
Goldwater  has  enthusiastically  sponsored 
every  space  and  aviation  research  and  de- 
velopment effort  needed  to  keep  the  nation 
in  a  position  of  leadership.  The  Senator  has 
been  equally  tireless  in  his  support  of  the 
UB.  aerospace  industry,  frequently  and 
eloquently   warning   that    without   congres- 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


siunal  buppon  for  new  lechnolugy.  America 
n.ay  very  well  become  a  secoud-claas  mUltary 
aiid  economic  power. 

Barry    Ou^dwater    could    probably    qualify 
for  the  Wright  Award  solely  on  his  continued 
efforts   in   the  support   of   the   buUdlng  of  a 
ne*  Air  and  Space  Museum  which.  Indirectly 
may    be    responsible    for    the    fact    that    the 
Wrighis  orlKlnai  "Flyer"  is  still  Ui  the  bauds 
or  the  Smuh3t)man  InstUuilon  where  It  re- 
maui.';  a  part  of  the  great  American  heritage 
After   23   years   of   frustration    at    the   lat-k 
of  progress  on  a  new  National  Air  and  Space 
Museum,  the  Wright  Estate  was  on  the  verge 
of   concluding   that    the    r  rigl:.al    agreement 
by  which  the  Flyer  was  returned  from  Eng- 
land to  the  United  States  was  being  violated. 
They  appeared  ready  to  withdraw  the  Flyer 
but  learned  of  Goldwater's  efforts  In  getting 
the  new  museum  constructed    Bv   prodding 
the  Smithsonian,  cajoling  the  President  and 
needling  Congressional  Appropriations  Com- 
mittees, Goldwater  was  successful   and  PX. 
92-369  was  signed  August  10,  1972.  Congress 
appropriated    »40    mlUlon    for    constructing 
the  new  building,  which  wUl  be  opened  July  4 
1976.  ' 

Expressing  the  appreciation  of  the  Wright 
E-state,  Ita  co-executor  Harold  Miller  wrote 
Goldwater,  "The  Wright  plane  was  returned 
from  Its  long  exUe  of  honor  in  England  to 
Its  present  place  In  the  Smithsonian  only  In 
the  confident  expectation  thart  there  would 
be  a  second -to-none  UJ3.  Air  Museum  in 
which  the  plane  would  be  the  premier  exhibit 
displayed  In  a  setting  appropriate  to  Its' 
unique  character  and  merit  like  the  crown 
Jewels. 

"We  hope  you  continue  your  interest  In 
promoting  the  buUdlng  of  the  museum  and 
that  we  win  live  long  enough  to  see  the  Kitty 
Hawk  plane  displayed  In  a  setting  deeervlni? 
of  Its  Importance." 

At  the  same  time,  Goldwater  might  well 
merit  the  award  on  his  flying  achievements 
alone.  As  an  aviator,  he  is  something  of  an 
enigma.  While  a  young  man,  he  tried  twice 
unsuccessfully  to  become  a  "Flying  Cadet"  In 
the  United  States  Army  Air  Corps.  His  prob- 
^m— he  couldn't  pass  the  eve  examination 
Yet.  the  young  man  who  couldn't  make  the 
grade  as  a  Flying  Cadet  was  ultimately  to  be- 
come a  Command  Pilot  in  the  United  States 
Air  Force,  acquire  single-,  twin-  and  four- 
engine  propeller  ratings,  and  qualify  in  the 
Lockheed  P-80,  the  Air  Force's  first  let 
fighter.  •* 

Along  his  flying  career,  Goldwater  has 
amassed  over  10,000  flying  hours  in  159  dif- 
ferent types  of  fixed-wing  aircraft  and  hell- 
copters.  Including  the  British  .French  Con- 
corde (SST),  the  European  A-300  Airbus  and 
the  world's  most  sophisticated  ah-craft  the 
Lockheed  SR^71  of  the  Strategic  Air  Com- 
mand. Earlier  this  year  he  won  his  "Lee 
Badge'  as  a  saUplane  pilot  and  Is  actively 
pursuing  this  new  experience  of  flight  In  the 
silent  skies. 

Barry  Goldwater  Is  also  the  type  of  man 
who  would  give  up  the  rank  of  Lt.  Colonel 
to^^come  a  captain  in  the  Air  National 
Guard  and  then  go  on  to  retire  from  the  Air 
Force  Reser^•e  as  a  Major  General  with  37 
years  of  service. 

«/^'^**  ''^^  following  the  Wrights'  flrst 
filght,  Barry  Morris  Goldwater  was  bom  on 
New  Year's  Day.  1909  at  Phoenix  In  the  then 
Arizona  Terrltorj-.  It  was  there  in  his  high 
desert  country  that  he  deveioped  the  love  for 
avtaUon  which  was  to  influence  hU  think- 
ing throughout  his  life  and  career. 

He  attended  Staunton  MlUtary  Academy 
and  the  University  of  Arizona.  In  1929  he 
was  commissioned  a  Second.  Ueutenant  In 
the  Infantry,  worked  his  wav  into  flight  train- 
ing, and  first  soloed  In  a  Great  Lakes  Trainer 
in  1930.  Also  receiving  his  private  and  com- 
mercial licenses  In  1930.  he  continued  flying 
and  returned  to  his  buslnes,"  enterprl-ws  In 
Arizona  where  he  was  the  flrst  person  to  In- 
CXIX 2672— Part  33 


42431 


troduce  aviation  to  the  Inlans  of  the  Navajo 
Reeervatlon. 

In  August  1941,  with  World  War  II  barely 
over  the  horizon  Goldwater.  for  tl.e  second 
time,  attempted  to  break  Into  the  Flying 
Cadets  only  to  be  again  turned  aaav  on  ever 
blKht.  Fortunately,  a  new  aeronautl'-a]  sta- 
tus had  come  Into  being— that  of  the  "Serv- 
loe  Pilot."  UtilizinK  his  previous  flrtng  ex- 
perience, the  young  flyer  canie  In  'through 
t,he  back  door"  as  a  captain,  ironically,  soon 
taking  command  of  pUot  training  at  Luke 
Army  Air  Field,  Ariz.  • 

He  was  later  assigned  to  the  flight  Test 
and  Evaluation  Center  at  Muroc  where  he 
had  the  Job  of  adapting  rocket  flares  to  the 
P-38  Lighting  By  tlien  a  major,  iie  oversaw 
the  engineering  aiid  flew  the  flight  tests  de- 
veloptng  tactic*  that  were  later  used  ihrouRh- 
out  the  Army  Air  Forces 

In  1943  he  led  the  first  and  unprecedented 
flight  of  P^7  Thunderbolts  cross  the  North 
Atlantic  to  Europe  Moving  on  to  the  Asiatic 
theater  and  India  with  the  Traiisport  Com- 
mand he  se.'-ved  wlt.h  honor  and  was  dis- 
charged m  iy45  as  a  Lt.  Colonel  and  Com- 
mand Pilot. 

1**8— Following  the  death  of  OrvlUe 
Wright  early  that  year  the  flrst  Wright 
Memorial  Dinner  was  held  on  December  17 
1948  and  the  first  recipient  was  Dr.  WU- 
llam  F.  Durand.  professor  emeritus  of 
Standford  University,  a  pioneer  in  propel- 
ler research  and,  in  1916,  the  principal  or- 
ganizer of  the  National  Advlsorv  Commit- 
tee for  Aeronautics  (now  NASA) . 

That  same  year,  the  governor  of  the  State 
of  Arizona  came  to  Barry  Gtjldwater.  solicit- 
ing his  services  Ui  orgamzing  the  Anzona 
Air  National  Guard  Since  at  ihat  tune  the 
highest  rank  authorized  by  t>ie  War  Depart- 
ment for  an  Air  National  Guard  officer  was 
obtain,  Lt.  Colonel  Goldwater  turned  In  his 
sUver  leaves  for  two  silver  bars.  Four  years 
later,  after  having  served  as  Chief  of  Staff 
of  the  Arizona  Air  National  Guard,  he  left 
wearing  the  sliver  eagles  of  a  full  colonel 

1952 — Long-time  flyer  Lt.  General  James 
H.  DooUttle,  foUowlng  such  notables  as 
Charles  A.  Lindbergh.  Qrover  Loenlng  and 
Dr.  Jerome  C  Hun.saker,  accepted  the  fourth 
Memorial  Trophy.  It  was  awarded  f .  r  his 
service  In  a  civUian  capacity  which  contrib- 
uted to  the  progress  of  American  aviaUon 
dating  back  to  1924.  and  for  development  of 
fog-flytng  equipment,  making  the  first  suc- 
cessful filght.  including  take-oS  and  land- 
ing while  m  a  completely  covered  cockpit. 

In  1962  Barry  GoidAater  was  flrst  eiect«l 
to  the  United  States  Senate  where  he  would 
become  a  member  of  :>oth  the  Armed  Services 
Committee  aiid  the  C  -mmittee  en  Aeronau- 
tical and  Space  Sciences.  Throughout  the 
years,  his  contributions  to  the  Air  F  rce  mis- 
sion and  Its  personnel  have  been  without 
parallel.  Certainly,  the  excellence  of  US 
aerospace  forces  can  be  attributed  in  great 
measure  to  his  urglngs  In  the  Senate  and 
to  mUitary  and  civic  groups  that  a  strong  and 
oontinulng  national  defe:ise  develoiment 
program  must  be  supported 

However,  the  Senator's  efforts  have  not 
been  confined  exclusively  to  the  support  of 
mlUtary  aviation.  To  the  contrary,  he  has 
been  equally  fervid  In  his  support  of  the 
American  civil  aviation  Industry.  He  has  con- 
sistently championed  the  cause  of  the  in- 
dustry against  those  who.  In  his  words,  wage 
"what  amounts  to  a  senseless  wafjon  science 
and  technology  which  Is  thre.at6nlng  to  re- 
duce America  to  a  second-class  military 
power  and  a  second-  or  third-class  economic 
power." 

1964 — I^r  almost  half  a  century  of  devo- 
tion to  advancing  the  science  and  practice 
of  flight.  The  Wright  Award  «as  presented 
to  Harry  F.  Guggenheim.  As  administrator 
of  the  Daniel  Ouggenhelm  Fund,  he  had 
sponsored  schools  of  aeronautics  at  New  York 
University,  Massachusetts  Institute  of  Tech- 


nology, California  Institute  of  leohnology 
and  others.  Guggenheim  was  also  tjue  aSi 
flnanclal  supporter  of  Professor  Robert  H 
Ooddard,  father  of  modern  rocketr\ 

In    the   lnter\eniiig    years   since  'l952     the 
trjphy  had   bee:;   won   by  other  outstanding 
individuals:  Rep.  Carl  Hlnshaw  for  his  w«^ 
in  the  growth  of  aviation,  not  as  an  Imple- 
ment of  war  but  as  an  important  carrier  of 
people  and  a  tool  la  the  world  of  commerce 
Dr.    Theodore    Von    Karman    for    providing 
many  of  the  foundation  stones  leadmg  to  the 
development     of     supersonic     aircraft     and 
guided  missiles;  and  Dr    Hugh  L.  Drvden  for 
his  studies  of  turbulence  m  wind  "tunnels 
and  the  mechanics  of  air  flow   within   the 
boundary  layer   In  1956,  Dr   Edward  P.  War- 
ner  was  cited   lor  continuous  achievements 
over  a  broad  range  of  aviaUon,  foUowed  by 
Senator  Stuart  Symington;   NACA  organizer 
Dr.  John  Frederick  Victory;  WUllam  P   Mac- 
Cracken,  Jr.  for  his  legal  vision  In  the  devel- 
opment   of    Civil    and    commercial    aviation- 
Frederick  C    Crawford  and  A.  S.  -Mike  Monl 
roney.  AeroaauUcal  engineer  John  Stack  was 
honored  In   1962  and  aircraft  manufacturer 
Donald  W.  Douglas  Sr.  in  1968. 

It  was  the  Guggenheim  year  of  1964  that 
Barry  Goldwater  resigned  his  seat  as  Sen- 
ator to  accept  the  RepubUcan  nominaUon 
for  President  of  the  United  States.  Defeated 
he  returned  to  private  life  and  later  aas 
again  elected  to  the  U.S.  Senate  Back  in  the 
nation's  capital,  he  continued  his  support  of 
aviation  and  space.  Senator  Goldwater's 
speeches  on  the  fioor  of  the  Senate  In  support 
of  the  supersonic  transport  R&D  program  ^ 
add  up  to  an  unparaDeled  example  of  logical 
and  balanced  thinking  in  terms  of  our  coun- 
try's  real  Interests. 

His  support  for  the  Space  P>rogTam  is  second 
to  none  among  the  members  of  Congress  He 
has  visited  moet  all  of  the  NASA  facUiiiee 
fiown  the  LEM  Munar  module  i  slmul  it.-^r  ajid 
defended  the  US  space  activities  against  the 
toughest  cf  odds  in  committee. 

1971— Another  .senator  Howard  W  Ca-non 
received  the  Wright  Memorial  Trophv  that 
year  for  his  energetic  advoc&cv  and  con- 
tributions to  aviation  as  a  viable  national 
tr&n.sporUtlon  system  and  essential  element 
in  maintaining  a  rtrong  military  poeture 
Other  names  stcod  cut  m  the  vears  followl-g 
the  Guggenheim  award  to  precede  Cannon 
flight  safety  expen  Jerome  Lederer  Pan 
American  Airline?'  Juan  Terrv  Trippe  alr- 
f^aft  designer  Dr.  Igor  I.  Slkorskv;  Senator 
Warren  G  Magnuson;  the  Boeing  Company's 
WLii.^rr.  M.  AUen;  and  American  ALrlines' 
C  R  Smith. 

In  1971.  It  wae  a  flttln*  tribute  to  Senator 
G.-ildwaters  staunch  support  of  aviation  that 
the  President  of  the  United  States  chose  him 
to  be  his  ofSclaJ  representative  at  the  Paris 
Air  Show,  an  honor  again  bestowed  upon  him 
m  1973,  flanking  the  1972  Wright  Trophy 
winner.  Federal  Aviation  Administrate-  John 
Shaffer  On  botli  occasions  of  hi.=  return  and 
report  to  the  President,  he  erpres.sed  his  con- 
viction that  much  must  be  done  ''  the 
United  States  desired  to  retain  the  piiitlon 
of  stiperlorlty  In  aviation  which  has  been  >^  a!<i 
for  the  last  36  to  40  years  He  warr.ed  We 
In  America  must  wake  up  to  the  fact  that 
the  Europeans  intend,  not  to  Just  catch 
up,  but  replace  us  as  the  world  leader  in 
aeronautics  and  everything  associated  with 
the  fleld." 

So  there  Is  Barry  Goldwater,  businessman 
statesman,  aviator. 

On  numerous  occasions  in  recent  ve&rs 
he  was  asked  by  the  Chiefs  of  the  Services 
to  fly  the  latest  aircraft  built  by  the  mil'tarr 
Including  the  F-lli,  P-14.  and  P-15  He  v^a.-^ 
also  flown  the  latest  French  fighter,  the 
Mirage  HI.  No  one  can  question  the  man's 
prowess  in  the  cockpit  of  an  airplane  In 
the  1930's.  after  loelng  the  engine  he 
dropped  a  WACO  biplane  Into  a  golf  course 
and  walked  away. 


42432 


In  1948,  he  flew  the  Air  Poroe's  flrst  opera- 
Uon*I  Jet  fighter,  the  P-«0.  During  1950.  be 
p*rtlclp»ted  In  one  of  the  first  alr-reecue 
mlMlons  Into  the  weetem  Indian  countries 
to  puBh  out  food  and  hay  to  the  anowbound 
Indians  and  their  livestock. 

Over  the  y»ara,  CJoldwater  has  landed  In 
ever  state  of  the  Ualon.  flown  over  both  poles 
^  and  around  the  world  in  both  dlrecUona. 
^on  recently,  as  a  crew  member,  he  haa 
flown  the  advanced  SR-Tl  at  Mach  3  1  over 
83.000  feet  abov«  the  earth. 

But  a  man  does  not  have  to  be  an  avUtor 
to  qualify  for  the  Wright  Memorial  -aophy. 
Uany  hav»  not  been  flyers  at  all.  They  have 
been  aeronautical  engineers,  builders  of  air- 
frames. Some  have  been  specialists  In  pro- 
pellers and  aerodynamic  flight.  There  have 
been  mlasUemen.  wind-tunnel  experts,  alr- 
-  craft  manufacturers,  academicians,  airline 
operators.  Federal  agency  administrators,  and 
legteUtors  such  as  Ooldwatw  himself 

Tet.  all  have  one  thing  in  common  the 
"splrtf  and  'vision"  of  the  two  bicycle  re- 
pairmen from  Dayton.  Ohio— for  that  Is  why 
the  Wright  Memc«-lal  Trophy  la  awarded 

Senator  Goldwater  is  a  product  of  the 
Arizona  southwest,  where  a  mans  stature  Is 
measured  by  the  manner  in  which  he  speaks 
the  courage  of  his  convictions  Goldwater 
does  precisely  that— scnnetlmes  to  his  own 
detriment,  his  friends  say.  All  too  often  he 
couches  his  terms  in  the  vernacular  of  'he 
western  cowboy.  When  this  writer  asked  his 
reacuon  to  his  flrst  caUpult  launch  from 
the  aircraft  carrier  "Enterprise."  he  answered 
man-to-man,  descriptively,  but  not  quite  ap- 
propriately for  print 

Today  he  stUl  speaks  out  most  directly 
but  with  hU  traditional  vision,  concerning 
his  "great  itch"  to  buUd  an  advanced  US 
supersonic  transport  (SST).  He  believes 
strongly  In  the  future  of  the  SST  and  advo- 
cates It  both  In  public  and  in  the  Inner 
sanctums  of  congressional  committee  rooms. 
The  Senator  has  ?rave  concerns  about  the 
United  States  losing  its  technological  leader- 
ship, particularly  as  he  sees  the  nation  belnt- 
overtaken  In  its  capabilities  In  building  alr- 
fnunw  When  the  original  contractor  of  the 
US  SST.  the  Boeing  Company,  estimates  it 
would  cost  four  times  Its  corporate  worth 
to  buUd  such  an  aircraft  and  studies  Indicate 
that  30  percent  of  the  passengers  across  the 
North  Atlantic  would  pay  the  extra  cost  for 
supersonic  transport,  he  Is  conrlnced  that 
the  government  must  help  support  such  a 
project  "Already."  he  says.  "American  and 
other  nations-  airlines  are  taking  a  serious 
look  at  the  U  3  S  R.'s  Tu-144 

"We  should  build  an  SST."  he  says,  "even 
u  It  never  flew  commercially,  just  for  the 
technological  spin-offs  For  Instance  the 
hyper-crltlcal  wing  lt.«if  would  allow  much 
lower-powered  aircraft  to  Increase  their 
speeds  from  50  to  60  knots." 

The  Arizona  desert  has  long  been  noted  for 
the  maverick  •  mustangs,  which  are  Inclined 
to  take  the  bit  and  turn  as  thev  see  fit  re- 
f„  ,r*  °^^'  pressures  of  the  reins  restrain - 
i^.^w^i** '***'■  """^  »«°  *'^'^«1  the  title 

f!^»  ',  <^P*'^  he  was  even  more  strin- 
gently labeled  because  he  called  the  she t^  as 
he  saw  them 

fr^ZlJ,  "  *'*°**  "»  the  world  arena  hare  un- 
folded since  those  davs  he  seems  not  so 
much  a  "radical"  since  all  too  many  of  his 
prwTOstlc   predictions  have   been   validated 

Re-eut;y.  CBS  commentator  Walter  Cron- 
f.v^  ^^/°*'l'-.'«^  -^r  Goldwater  now  vjunds 
like  the  voice  of  moderation  and  reason,  in 
this  ci:rrent  crisis  ifs  because  he  seem- 
to  be  one  of  the  few  outspoken  Individuals 
who  belong  to  no  faction  Whether  or  not 
you  a«ree  with  him  on  speclflca.  he  seems  to 
plead  no  special  ^ause.  rl^ht  r.ow.  except 
.'ranJtnesa  and  honesty  No  wonder  he  seems 
lUe  surh  a  loner  in  Washington  these  days. 

"Once,  his  many  critics  told  us  Goldwater  s 


CONGRESSIONAL  R£CORD  — SENATE 


approach  to  government  was  overly  sim- 
plistic. He  was  ridiculed  as  an  anachronism 
But  now.  without  fundamental  change  he 
seems  to  strike  a  responsive  chord  In  wider 
circles  than  Just  thoee  right-wing  groups 
which    venerated    his    name  " 

As  newsman  Cronklte  summed.  "Is  CJold- 
water catching  up  to  the  changing  times? 
Or.  asked  more  properly,  are  the  times  catch- 
ing up  to  Barry  Ooldwa'ir"'- 


December  19,  1973 


THE  ENERGY  CRISIS: 
FROM   1970 


A  VIEW 


Mr.  ABOUREZK.  Mr.  President,  many 
Americans  are  asking  why  they  were  not 
forewarned  of  the  dimenslcais  of  the  en- 
ergy crisis  which  we  face  today.  With- 
out comment.  I  ask  unanimous  consent 
to  print  In  the  Record  the  text  of  an  ad- 
dress by  my  colleague,  the  Senator  from 
South  Dakota  (Mr.  McGovern).  to  the 
Mid-West  Electric  Consumers  Associa- 
tion In  Denver.  Colo..  3  years  ago  this 
week. 

There  being  no  objection,  the  address 
was  ordered  to  be  printed  In  the  Record. 
as  follows: 

Po».-Ka    AVD    Public    RaspoNstsn-rrT 
Events  of  this  past  summer  should  leave 
no   one    unconvinced    that   this   country    is 
facing   an   energy   crisis    of   drastic   propor- 
tions. *^     *^ 

The  most  obvious  evidence  was  supplied  by 
more  than  50  major  blackouts  in  which  elec- 
tricity was  cut  off  from  consumers,  and  by 
hundreds  of  brownouts  In  which  voltaee 
was  cut  back. 

But  those  troublesome  events  properly  fo- 
cused new  attention  on  the  entire  energy 
industry  and  on  Its  capacity  to  meet  the  ex- 
ploding power  needs  of  the  American  people. 
We  found  that  major  private  electric  utlU- 
tles  have  reserve  generating  capacity  of  10 
percent  and  leas,  instead  of  the  desired  30 
percent. 

We  found  that  there  Is  a  shortage,  either 
genuine  or  manufactured  by  the  industry  In 
deUverles  of   natural  gas   to  customers 

We  found  that  oU  for  fuel  Is  available  In 
sharply  reduced  quantities,  and  at  rldlcu- 
loualy  Increased  prices. 

We  found  that  more  coal  Is  being  consumed 
than  is  being  extracted  from  mines,  and  that 
prices  are  escalating  sharply. 

We  found  that  electric  utUltles  appear  un- 
able to  provide  added  generating  facilities 
to  meet  consumer  demands  without  intol- 
erable additions  to  environmental  pollution 
The  United  States  has  a  trillion  dollar 
economy.  Our  technology  is  unparalleled 
We  have  huge  reser.es  of  coal  and  lignite 
and  enormous  untapped  reservoirs  of  oU  and 
gas.  We  have,  despite  its  imperfections  at- 
tained the  best  energy  distribution  system 
any  place  on  the  globe. 

But  we  have  nevertheless  blundered  Into  a 
power  and  fuel  emergency  which  threatens 
to  damage  each  American  citizen. 

The  consiimer  has  accepted  blackouU  with 
good  humor,  and  bro»-nouU  with  surprising 
good  grace.  He  »-lll  be  less  patient  when  the 
freeze-outs  begin.  Tet  they  and  other  pain- 
ful consequences  are  on  their  way  unless 
government  and  industry  supply  Inspired 
leadership  to  efforts  to  meet  the  power  needs 
of  both  today  and  decades  hence 

The  crisis  Is  recognized  almost  universally 
There  are  apparently  still  some  dimmed  eyes 
^se  how  explain  this  summer's  flfth  straight 

S'o*l!^''°f':f  fK  "^^  ^^'  Dlckey-Llncoln  School 
Pro^  for  the  Northeast,  on  the  same  day 
that  Capitol  corridors  were  darkened  because 
of  power  thorages  aU  along  the  Eastern  sea- 

^K  5.-  '"'^'  responsible  observers  now 
see  the  dlfllculty. 

There  is.  however,  no  unanimity  in  expla- 
nations why  the  crisis  has  developed. 


With  the  physical  comfort  and  weU -being 
of  all  of  Its  citizens  at  stake:  with  the  health 
of  the  entire  economy  dependent  upon  reli- 
able supplies  of  energy  at  reasonable  ooet 
It  la  almost  Impossible  to  believe  that  there 
isn't  a  Federal  agency  that  can  provide  a 
logical  and  credible  explanation  for  the  de- 
velopment of  the  present  emergency.  None- 
theless, that  appears  to  be  the  case. 

You  will  recall  that  this  past  summer  the 
Secretary  of  the  Interior  appointed  an  In- 
dustry Advisory  Committee  to  provide  him 
with  information  on  the  national  energy  sit- 
uation—after  an  expected  18  months  of 
study.  Not  even  the  White  House  saw  that 
as  a  reassuring  answer  to  a  national  emer- 
gency, so  a  Cabinet  level  team  was  appointed 

MeanwhUe.  private  Industry  spokesmen 
have  developed  their  own  rationales  lantelv 
self-serving  ' 

The  electric  utilities  blame  the  conserva- 
tionists, the  manufacturers,  organized  labor 
and  the  various  regulatory  agencies. 

The  coal  companies  place  the  principal 
blame  upon  the  electric  utilities  for  orderly 
nuclear  fuel  generating  plants.  They  fault 
the  railroads  for  shortages  of  hopper- bottom 
cars,  and  they  fault  the  Congress  for  what 
they  regard  as  excessively  restrictive  mine 
health  and  safety  legislation  and  poUutlon 
controls. 

Natural  gas  suppliers,  with  remarkable 
unanimity,  place  the  responsibility  on  the 
Inderal  Power  Commission.  Natural  gas 
would  be  avaUable  for  everyone,  they  sug- 
gest.  If  only  rates  were  higher. 

The  oU  companies  attribute  the  shortage 
of  residual  fuel  oUs  to  political  disturbances 
In  the  Middle  East,  to  tanker  shortages  and 
to  higher  than  anticipated  demand  They 
are  particularly  fond  of  noting  the  Interrup- 
tloo  of  the  Trans- Arabian  pipeline  in  Syria. 
"These  pleadings  may  have  mixed  merit 
It  Is  at  least  as  Instructive  to  look  else- 
where for  more  disinterested  analysis. 

It  Is  Intriguing  to  note,  for  example,  that 
the  acute  energy  emergency  has  developed 
Just  at  the  time  when  oil  and  gas  com- 
panies have  been  acquiring  coal  companies 
thus  depleting  Interfuel  competition  from 
that  source.  Only  two  of  the  ten  Urgest  coal 
companies  are  now  Independently  owned 
and  the  other  eight  produce  42  percent  of 
the  industry's  present  production.  Simulta- 
neously, oU  companies  have  acquired  vast 
uranium  holdings,  producing  U  percent  of 
the  domestic  uranium  In  1969  and  control- 
ling 45  percent  of  the  known  reserves  on 
January  first  of  this  year. 

Where  natural  gas  Is  concerned,  we  have 
evidence  of  seriously  questionable  tactics  by 
producers. 

The  major  oU  companies,  which  control 
moet  of  the  natural  gas  supplies  In  the  U  S 
have  made  it  clear  that  they  are  not  Inter- 
ested In  increasing  gas  production  until  it 
becomes  more  proflable  than  other  Invest- 
ments they  can  make,  but  that  could  mean 
a  60  percent  Increase  In  present  celling 
prices  that  producers  can  charge  for  natural 
K»s. 

In  short,  the  shortage  of  gas  Is  a  holdout 
for  higher  prices. 

CerUlnly  any  analysis  of  the  roots  of 
today's  grim  picture  must  Include  some  at- 
tention to  the  fragmented  and  confused 
voice  of  government,  particularly  as  it  has 
Influenced  the  growth  of  new  energy  sources 

In  1963  Jersey  Central  Power  and  Ught 
re!3aaed  the  economic  analysis  which  led  to 
that  company's  decision  to  go  atomic  at 
Oyster  Creek  Spokesmen  for  the  Atomic 
Energy  Commission  had.  for  years  been  of- 
fering confident  projections  that  coal  would 
loee  the  electric  power  market  to  nuclear 
generation  in  Just  a  few  years.  Without  a 
similar  public  voice  speaking  for  and  pro- 
moting fowll  fuels,  investments  in  new  coal 
names  and  coal  transport  equipment  were 
sharply  curtailed. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


Now,  with  the  breeder-reactor  still  acting 
a-s  the  most  successful  moving  target  in  hu- 
man experience — staying  twenty  years  away 
regardless  of  the  passage  of  tune^we  find 
that  we  have  Ignored  fossil  fuels  at  our 
perU. 

Research  priorities  reflect  a  similar  pat- 
tern. Except  for  the  clvUian  power  reactor 
program  which  is  prlmarUy  Federally 
financed,  the  electric  utUltlea.  the  ma'.ufac- 
turers  and  government  agencies  have  all  been 
niggardly  in  the  financial  support  devoted  to 
d's?overy  of  new  concepts  and  techniques 
Joseph  Swldler,  former  chairman  of  the 
Federal  Power  Commission  and  now  head 
of  New  York's  Public  Service  Commission, 
testified  before  a  Senate  Subcommittee  re- 
cently that. 

The  amounts  that  the  utUltles  spend  on 
research  are  negligible,  and  this  is  under- 
standable because  of  the  nature  of  the  In- 
dustry. It  Is  broken  up  into  3,000,  over  3,000. 
separate  Institutions  or  entitles  In  four  dlf-^ 
ferent  segments.  They  do  not  have  labora- 
tories or  research  faculties  of  their  own. 

The  manufacturers  are  interested  prlmar- 
Uy In  recearch  with  an  early  commercial  pay- 
or", and  the  gover.nment  thus  far  has  stinted 
In  Its  research  In  the  energy  field.  Research, 
aa  you  know.  Is  one  of  the  first  things  to  be 
cut  In  any  budget  crunch. 

Senator  Lee  Metcalf.  who  Is  rightfully  re- 
garded as  the  leading  Congressional  expert 
in  the  utUlty  field,  drew  this  explicit  pic- 
ture last  January:  v 

The  212  major  electric  utUltles  account 
for  one-eighth  of  all  the  Investment  In  thU 
country.  They  took  In  $19.4  bUllon  In  1968. 
They  netted  15.4  cents  on  the  dollar,  after 
paying  all  expenses.  Including  taxes  and  In- 
terest. Yet,  almost  one-fourth — 61  com- 
panies to  be  exact — did  not,  according  to 
their  ow.i  reports,  spend  a  cent  on  research 
and  development  In  1968.  either  within  the 
company  or  through  support  of  research  and 
development  by  others. 

Senator  Metcalf  reported  further  than  on 
the  average.  Investor-owned  utilities  spent 
Just  slightly  more  than  2  mUls  per  revenue 
dollar  on  research  and  development  in  1968. 
"^hey  spent  eight  times  as  much  on  advertls- 
mg  and  other  sales  expenses. 

That   Is   the   private   utUltles.   During   the 
1970  fiscal  year  the  Federal  government  spent 
roughly  »367  mUUon  dollars  on  research  In 
the  energy  field.  But  84  percent  of  the  total 
went  for  atomic  energy,  leaving  Just  a  tiny 
balance  for  research  on  the  fuels  which  wUl 
continue  to  be  the  prime  energy  source  for 
at  leas'c  the  next  two  decades  and  beyond, 
ra 
It  Is  not  my  purpose  here  to  attempt  a 
complete  tabulation  of  the  reasons  for  the 
current  crisis.  I  do  submit,  however,  that  our 
flrst  order  of  business  In  the  short  term  must 
be  to  ascertain  all  the  facts  and  to  make  cer- 
tain the  Inconveniences,  discomforts  and  eco- 
nomic  penalties   suffered   by  the  American 
consumer  are  held  to  a  minimum.  We  must 
oe  especially  determined  to  f=ae  that  the  con- 
sumer li  not  forced  to  pav  the  bUl  for  man- 
^fegemjut's  mistakes,  and   to  assure  that  we 
are  not  fllm-fiammed  Into  changing  the  rules 
of  the  game  by  unjustified  prrxlurer.s'  strikes. 
We  need  to  know  much  more,  for  exam- 
ple,  about   the   maneuverlngs   and    negotia- 
tions  between   the   Administration   and   the 
oU  companies,  which  led  to  the  decision  to 
continue  the  oU  quota  system  during  and  In 
spite  of  this  emergency  and  In  spite  of  the 
recommendations  of  the  Cabinet  level  group. 
That   single   decision,   according   to   Senator 
Phil  Hart.  wlU  cost  the  American  consumer 
some  7  billion  dollars  a  year. 

If  the  President  has  entertained  Uluslons 
that  the  big  energy  companies  are  going  to 
deal  fairly,  equitably  and  responsibly  with 
the  consuming  public  during  the  current  pe- 
riod of  shortages,  he  ought  to  read  the  "In- 


42433 


flatlon  Alerts"  prepared  by  his  own  Council 
of  Economic  Advisors.  Fuel  oil  prices "  in- 
creased at  sn  annual  rate  of  *8  percent  dur- 
ing the  Prst  half  of  1970.  and  bituminous 
coal  prices  went  up  56  percent  during  the 
.same  period.  Now  the  second  repo.n  tells  us 
that  the  price  of  residual  fue:  oil  has  risen  25 
percent  more  In  three  mo::th8  Bituminous 
coal  rose  10  percent  m  a  single  3C!  day  period. 

Normal  market  pre^eures  have  not  been 
allowed  to  prevaU,  says  the  Council,  because 
of  "direct  actions  to  curtail  production. " 
Meanv.hlle  we  read  news  reports  every  day 
about  public  and  private  agencies  that  can- 
not secure  fuels  for  purposes  that  are  vital 
to  the  public  health  and  safely 

Hopefully  It  is  still  possible  for  firm  and 
prompt  Presidential  action  to  minimize  the 
short  term  adverse  effects  of  a  crisis  that 
should  have  received  executive  attention  and 
action  long  before  the  problem  became  ao 
desperate. 

Whl!e  we  deal  with  the  present  crisis  on  an 
emergency  basis,  however,  we  should  devote 
equal  attention  to  programs  that  wUl  safe- 
guard the  nation's  energy  supply  in  the 
longer  term,  and  that  will  do  so  In  vfays 
which  are  consistent  with  our  Interest  In 
keeping  an  attractive  and  wholesome  envi- 
ronment. 

tv 

It  Is  an  enormous  undertaking. 

Since  1965.  overall  energy  consumption  In 
the  United  States  has  grown  at  a  rate  of  five 
percent  each  year.  Electric  power  consump- 
tion Is  up  to  a  9  percent  growth  rate  na- 
tionwide. Output  must  be  doubled  every  ten 
years.  Right  now  w  e  simply  do  not  know  how 
that  goal  can  be  accomplished  In  the  fore- 
seeable future,  at  least  not  without  render- 
ing many  parts  of  this  country  virtually 
uninhabitable. 

The  most  prudent  and  responsible  first  step 
would  be  the  adoption  of  Senator  Jennings 
Randolph's  important  bill,  S.  4092.  to  estab- 
lish a  Commission  on  Fuels  and  Energy.  I 
have  been  Impressed  by  this  organization's 
testimony  on  behalf  of  that  legislation.  I 
agree  with  you  that  the  Commission  repre- 
sents a  splendid  opportuntly  to  Identify,  In 
the  words  of  the  bUl. 

Those  programs  and  policies  which  ere 
most  likely  to  Insure,  through  maximum  use 
of  Indigenous  resources,  that  the  nation's 
rapidly  expanding  requirements  for  low-cost 
energy  wUI  be  met.  and  In  a  manner  con- 
sistent with  the  need  to  safeguard  and  Im- 
prove the  quality  of  our  environment." 

I  would  hope  and  expect  that  such  a  Com- 
mls.'?lou  would  address  Itself  to  the  compli- 
cated and  critical  questions  of  energy  and 
environment  with  a  full  wUllngness  to  ques- 
tion old  institutions  and  to  explore  new  and 
potentially  better  techniques. 

V 

Along  with  the  Commission,  there  are  a 
number  of  specific  poUcy  decisions  which  de- 
serve the  earliest  possible  attention. 

It  Is  a  travesty  that  this  nation  has  no 
national  grid  sj-siem  to  Interlink  power-short 
areas  with  potential  sources  of  surplus  sup- 
ply elsewhere.  The  Issue  was  highlighted 
last  summer  when  Basin  Electric  Power  Co- 
operative In  North  D.ikota  offered  power  to 
Consolidated  Edison,  which  did  not  have 
enough  power  to  meet  consumer  demands 
In  New  York.  Con  Ed  had  to  reject  the  offer 
because  the  interconnections  were  too  small 
lo  handle  the  load.  The  same  thing  happened 
during  the  1966  New  York  blackout,  when  a 
sizeable  block  of  power  offered  bv  the  Ten- 
nessee Valley  Authority  could  not  get 
through. 

References  to  the  national  grid  were 
dropped  in  AdmlrUstratlon  circles  shortly 
after  Secretary  Hlckel  endorsed  It  last  sum- 
mer. With  his  departure,  we  are  left  with  no 
commitment  at  all.  We  need  to  get  moving 
now  on  this  essential  project. 


VI 


As  I  have  suggested  earlier,  we  also  need 
desperately  to  expand  research  on  means  to 
employ  fossU  fuels  more  cleanly  and  effi- 
ciently. At  this  moment,  for  example,  we 
sho'old  be  placing  especially  high  priority  on 
MHD,  or  Magnate-Hydrodynamics.  Tt^wp  can 
use  lower  grade  coals  than  are  feasible  la 
conventional  thermal  plants  It  is  a  means  of 
using  fossil  fuel«  much  more  efficiently.  It 
uses  less  water  and  poUutes  less.  Considering 
Its  prumise,  the  »400,000  requested  by  the 
President  for  JvIKD  rese-Arch  was  grossly  In- 
adequate. So  Is  the  »600.000  supplied  by  the 
Congress.  We  need  to  support  this  work  at 
the  highest  level  at  which  funds  can  be  ef- 
fectively used. 

SlmUarly,  we  should  be  doing  more  about 
fuel  cells,  super  conductors,  imderground 
transmission,  and  the  conversion  of  lignite 
and  coal  to  gas  and  petroleum  products. 

And  we  should  be  both  supporting  else- 
where and  demanding  from  the  industrr 
maximum  research  efforts  to  develop  the  best 
possible  techniques  for  poHution  abatement 
and  control.  If  the  American  people  are  seme- 
day  forced  to  choose  between  adequate  en- 
ergy supplies  and  a  healthy  environment 
It  win  not  be  because  the  two  cannot  co-" 
exist.  They  will  have  been  let  down  by  gov- 
ernment and  held   up  by   Industry. 

I  have  no  way  to  judge  whether  the  dollar 
amounts  we  have  devoted  to  research  on 
atomic  power  generation  are  too  high  or  too 
low.  I  do  know,  however,  that  the  present 
five  to  one  advantage  It  has  over  fossU  fuel 
research  Is  unconscionable.  It  should  be 
remedied  in  short  order. 

vn 

Wbere  the  avallabUlty  and  costs  of  fuels 
are  concerned  we  should  be  movlnp  on  at 
least  three  fronts. 

First,  the  Justice  Department's  Antltnwt 
and  Monopoly  Division  should  have  the  trend 
toward  concentration  of  fuels  ownership  un- 
der constant  and  intensive  scrutiny.  Then 
are  few  arpas  where  monopolv  control  has 
greater  potential  for  damartn?  the  public  in- 
terest. I  welcome  the  current  Invertlgatlons 
by  the  Federal  Trade  Commission. 

Second,  while  the  country  struggles  with  a 
claimed  gas  shortage,  huee  depoelts  on  Fed- 
eral lands  and  submerged  lands  under  Fed- 
eral control  await  exploration  and  develoo- 
ment.  ^ 

Initially,  the  Department  of  Interior's  leas- 
ing policy  should  l)e  reviewed  and  revised 
Certainly  gas  bearing  land  should  be  leased 
on  a  schedule  based  on  the  Nation's  energy 
needs,  and  not  on  the  Treasury's  demands  for 
cash  to  fill  budgetary  objectives.  And  we 
should  make  certain  those  policies  make  par- 
ticipation by  smaller  companies  both  feasi- 
ble and  attractive. 

I  believe  we  have  reached  the  time,  and  we 
surely  have  accumulated  the  reasons,  to  plan 
for  Federal  exploration  of  those  deposits 
both  to  increase  supplies  and  to  test  the 
companies'  contenOon  that  prices  are  too  low. 
The  yardstick  of  public  ownership  and  con- 
trol has  been  Unmenselv  valuable  In  the  elec- 
tric utuity  field.  We  n^  a  yardstick  In  the 
natural  gas  Industry  as  well. 

Third,  any  discussion  of  future  energy  sup- 
plies, particularly  for  the  western  half  "of  the 
country,  must  heed  the  tremendous  concen- 
trations of  Ugnlte  and  sub-bltumlnous  coal 
concentrated  In  the  High  Plains  States. 

Almost  a  tlilrd  of  the  nation's  coal  reeerves 
are  located  In  Montana  and  Wyoming  With 
the  extensive  Ugnlte  reserves  of  the  two  Da- 
kotas.  nearly  two-thirds  of  our  reaervM  of 
low  sulphur  coal  are  found  In  the  western 
states. 

In  January  of  this  year,  former  Interior 
AsslsUnt  Secretary  Ken  Holum.  a  dtlren  of 
my  state,  released  his  study  concluding  that 
electric  power  producrd  at  mine-mouth  gen- 
erating statlMis  on  thoee  oo«l  fltida  oould  be 


42434 


CONGRESSIONAL  RECORD  — M:N ATE 


December  ly,  1973 


economlc^y  kttrftctlve  in  Chicago,  St.  Louis, 
Dallas.  Seattle  and  PortauuL  A  report  re- 
leaaed  more  recently  by  the  UlMourl  Basin 
Systems  Oroup  comes  to  esaentlaUy  the  same 
conclusion. 

While  the;  have  been  acquiring  coal  com- 
panies, the  major  oil  companies  and  their 
coal  subsidiaries  have  begun  an  aggressive 
campaign  of  coal  land  leasing  In  Montana 
and  Wyoming.  It  is  coupled  with  an  equally 
aggressive  effort  to  acquire  water  rights  on 
or  near  the  coal  fields. 

Senator  Metcalf.  after  questloolng  Assist- 
ant Interior  Secretary  James  Smith,  learned 
this  summer  that  all  of  the  available  water 
trom  Big  Horn  reservoir  has  been  placed 
under  contract.  Secretary  Smith  Justified 
that  and  other  commitments  In  the  foUow- 
tng  terms: 

"The  size  of  such  Investment,  which  only  a 
few  large  companies  are  capable  of  under- 
writing, may  precipitate  charges  that  those 
Interests  are  monopolizing  the  water.  How- 
ever, In  view  of  the  several  energy  companies 
already  holding  option  contracts  and  In  the 
light  of  the  potential  water  supplies  that  can 
be  developed  In  the  Upper  Missouri  Basin,  we 
believe  that  this  Is  not  likely  Rather,  the 
problem  Is  more  apt  to  be  one  of  capital  ac- 
cumulation es3ent%al  to  full  utilization  of  the 
latent  coal  resource*  in  your  ttate"  (Empha- 
sis added  ) 

Secretary  Smith  Is  correct  up  to  a  point. 
Development  of  those  resources  will  require 
large  amounts  of  capital. 

But  he  Is  dead  wror.K  In  concluding  so 
quickly  that  this  aV»^^  '.flea  delivery  of 

these  resources  Into  ^tv  '.-i  of  wealthy  and 
powerful  private  energK  companies.  Since 
1902  and  the  creation  oathe  Bureau  of  Rec- 
lamation, this  countrjKhas  operated  under 
the  premise  that  wat«r  is  a  public  resource  to 
be  developed  wlthT>ubllc  funds  for  the  bene- 
fit of  the  consuming  public.  The  worsening 
energy  crisis  should  reinforce  that  phlloeo- 
phy.  not  retard  it.  The  consuming  public  de- 
serves more  from  Federal  executives  than  the 
almost  automatic  commitment  of  public  re- 
sources— coal  and  water  under  public  lands 
under  Federal  control — to  private  companies, 
mainly  because  those  companies  are  already 
so  rich  and  powerful  that  they  can  generate 
large  amounts  of  capital 

If  the  challenge  Is  capital  accumulation,  we 
should  be  considering  the  potential  advan- 
tages of  separating  generation  and  transmis- 
sion from  distribution  and  establishing  gen- 
eration as  a  public  task.  TVA  has  served  Its 
area  well.  Do  we  need  a  similar  organization 
to  develop  these  coal  fields  in  a  manner  that 
win  satisfy  the  national  needs  for  electric 
power,  ga-s  and  liquid  petroleum  products? 
Are  there  alternatives  that  might  serve  the 
public  Interest  as  well''  Secretary  Smith's  let- 
ter suBeests  that  the  Nlxoa  Administration 
hasn't  even  recognized  that  the  oppKjrtunlty 
exists 

vm 

Finally.  It  is  time  we  took  a  hard  look  at 
the  basic  organization  of  our  entire  power 
supply  system. 

Tears  ago.  Leland  Olds,  a  distinguished 
former  Chairman  of  the  Federal  Power  Com- 
mission, advanced  what  he  came  to  call  the 
"giant  power  concept." 

Olds  correctly  Identified  the  rapid  emer- 
gence of  "economies  of  scale."  He  was  com- 
mitted, iLS  well,  to  what  we  call  the  "plural- 
istic electric  system." 

TTie  essence  of  his  proposal  was  that  gen- 
eration and  transmission  should  be  separated 
from  distribution  In  the  electric  power  In- 
dustry Under  his  concept,  separate  gener- 
ation and  transmission  organizations  would 
provide  bulk  electric  power  to  local  utilities 
that  would  continue  to  be  responsible  for 
distribution  and  marketing. 

The  Idea  has  never  received  thorough  and 
objective  evaluation.  Private  electric  utility 
management  has  rejected  It  out  of  hand,  as 
they  seem  to  reject  all  new  Ideaa. 


But  today  It  U  more  attractive  than  ever 
before. 

The  National  Power  Survey  Included  among 
its  findings  a  conclusion  that  we  oan  expect 
great  savings  from  Integrated  planning  oos- 
structlon  and  operatloh  of  gencnt-..  :.  »j-.d 
transmission  facilities  on  a  regi.i.A.  L^aaid 
Subsequent  experience,  however,  ha<<  sug- 
gested that  there  is  lltUe  hope  that  such 
arrangements  can  be  made  under  existing 
patterns  of  ownership  and  control.  It  could 
be  accomplished,  almost  by  definition, 
through  the  giant  power  concept, 

Tbaaa  economies  of  scale  also  apply  to 
pollution  control  techniques.  Again  by  defini- 
tion, a  oumbar  of  small  plants  will  create 
more  total  pollution  than  a  few  large  ones, 
at  any  given  level  of  anti-poUutlon  tach- 
nology.  And  larger  enterprise  can  Incorporata 
the  latest  technology  at  tha  lowest  cost  par 
unit  of  power. 

The  giant  power  coricept  would  be  a  deci- 
sive step  toward  the  national  power  grid 
which  we  need  so  badly.  By  definition  here, 
too.  It  would  establish  regional  grids  covering 
the  entire  country.  Prom  that  point  it  would 
be  a  short  step  to  interconnection  of  regions, 
allowing  transmission  of  surplus  power  to 
any  part  of  the  country  which  might  experi- 
ence temporary  shortages. 

Further,  the  concept  would  facilitate 
meaningful  regulation  and  control  In  the 
public  Interest.  It  would  place  generation  and 
transmission  under  Federal  regulation,  while 
leaving  distribution  largely  under  the  Juris- 
diction of  the  several  states. 

Since  atomic  power  Is  efficient  only  In  large 
plants.  It  would  advance  In  a  practical  way 
our  Interest  In  using  that  alternative  source 
of  energy  as  our  reserves  of  fossil  fuels  go 
down. 

For  all  of  these  reasons.  I  believe  the  pio- 
neering and  farslghted  concept  of  Xjeland 
Olds  should  be  well  on  Its  way  toward  In- 
corporation Into  national  power  policy. 

We  have  some  encouraging  signs  that  It 
l3.  A  recent  report  for  the  New  England  Re- 
gional Commission,  which  Includes  the  gov- 
ernors of  Maine,  New  Elampshlre,  Vermont, 
Massachusetts,  Connecticut  and  Rhode  Is- 
land and  a  Federal  appointee,  the  best  hope 
of  meeting  the  region's  power  needs  for  the 
next  twenty  years  would  be  creation  of  a  sin- 
gle bulk  power  supply  agency  with  full  re- 
sponsibility for  power  development — Includ- 
ing the  sole  authority  to  construct  all  area 
generating  and  transmission  facllltlee  and 
the  right  to  acquire  all  existing  plants  and 
lines.  George  Cabot  Lodge  of  the  Harvard 
School  of  Business,  has  reached  a  similar  con- 
clusion for  the  Northeast,  Identifying  a  new 
regional  power  agency  as  the  potential  answer 
to  that  area's  bulk  power  supply  problems. 
In  the  early  Thirties,  when  existing  In- 
stitutions had  failed,  a  new  application  of 
cooperative  principles.  Initiated  by  an  Imagi- 
native and  concerned  natlotial  administra- 
tion, led  to  the  electrification  of  rural  Amer- 
ica, The  rural  electric  program  Is  one  of  the 
countrv's  great  success  stories.  Sigrnlfloantly, 
where  REA  cooperatives  have  been  permitted 
to  develop  their  own  sources  of  supply,  bulk 
fjoTv-er  supplies  are  adequate. 

Existing  institutions — prtmarUy  the  In- 
vestor-owned utilities  upon  whom  we  must 
depend  for  85  percent  of  this  nation's  power 
-supply — are  falling  again.  They  are  falling 
not  only  to  offer  the  opportunities  that 
abundant.  low-cost  energy  can  bring;  they 
are  fallln?  as  well  to  meet  even  the  minimum 
requirements  that  are  essential  to  public 
health,  sp.fety  and  convenience 

It  Is  time  we  asserted  the  same  kind  of 
leadership  we  saw  In  the  1930s,  this  time 
for  consumers  In  all  parts  of  the  country, 

I  recognize  that  such  proposals  can  be 
expected  to  bring  screams  of  outrage  from 
private  energy  companies  While  they  have 
been  less  than  dependable  In  supplying 
power  they  can  always  be  counted  upon  to 
protest  loudly  against  proposals  which  might 


interfsre    with    their    conception    of     "free 
enterprise  " 

In  response,  let  me  quote  briefly  froni  a 
speech  by  the  late  Dr,  Paul  J  Raver,  the:. 
superintendent  of  Seattle's  Departmeut  ol 
Lighting,  before  the  KMO  conference  of  the 
-Mnerlcan  Public  Power  a— ^.t^tjQp  He 
pointed  out  that  the  electric  business: 

■Is  public  buslnaas — because  the  power  in- 
dustry itaelf  IB  public  businass.  whether  it 
Is  owned  and  operated  by  a  public  agency  or 
a  private  agency." 

Why  is  this  so? 

It  Is  so  because  electricity  is  eoentlal  to 
public  health,  life  and  economic  survival  and 
because  this  commodity  is  sold  under  monop- 
oly condition*.  When  these  two  factors,  ne- 
cessity and  monopoly,  are  predominant,  we 
have  a  •buslneas  affected  with  a  public  inter- 
est'  and  the  business  itself  is  public  and  not 
private. 

At  bottom.  I  suspect  that  a  goodly  portion 
of  energy  predicament  today  has  grown  out 
of  our  Inability  to  recognize  that  basic  fact, 
and  out  of  the  faUure  of  public  policy  to  re- 
flect It. 

Henceforth  we  need  a  new  definition  of 
values  In  the  energy  field. 

We  may  well  determine  that  It  Is  In  the 
public  interest  to  retain  the  Involvement  of 
private  capital,  private  management,  and  the 
profit  motive   in  our  energy  system. 

But  whatever  our  conclusion  on  that  score, 
we  must  never  permit  it  to  overrule  the  pur- 
poses of  this  Immensely  Important  "public 
buslneas"  to  make  energy  available  to  the 
American  people  in  the  amounts  they  need, 
at  the  lowest  possible  cost,  in  the  cleanest 
possible  way,  and  with  the  greatest  possible 
assurances  of  reliable  service. 

From  now  on  we  can  afford  to  let  no  sec- 
ondary Interest  deter  from  those  transcend- 
ent goals. 


FRENCH   NUCLEAR   TESTING 

Mr  HARTKE.  Mr.  President,  the  world 
Is  striving  for  the  elusive  concept  of 
peace  now  more  than  at  any  time  In  the 
history  of  international  relations.  Not 
only  are  countries  coming  together  for 
discussions  of  their  relations  with  each 
other,  but  for  discussions  of  their  rela- 
tions within  blocks  of  countries  possess- 
ing certain  understandings  and  simllari- 
ties. 

An  additional  avenue  leading  toward 
world  order  Is  through  world  justice,  and 
when  countries  relinquish  certain  Juris- 
dictional powers  to  the  IntemaUonal  In- 
stitutions which  will  safeguard  the  In- 
tegrity of  human  rights,  we  will  have 
advanced  the  cause  of  peace  one  giant 
step  for  manJdnd. 

On  August  2.  1973. 1  Introduced  Senate 
Resolution  155,  calling  upon  the  Presi- 
dent to  inform  the  Government  of 
Prance  of  this  country's  strong  disap- 
proval of  Prance's  continued  detonation 
of  nuclear  devices  In  the  Pacific  Ocean 
in  blatant  disregard  of  the  wishes  and 
rights  of  the  countries  and  peoples  of 
that  area. 

Mr.  President,  I  have  received  a  letter 
from  the  Ambassador  of  Indonesia  the 
Honorable  Sjarif  Thajeb,  which  enclosed 
a  copy  of  resolution  2934  (XXVTI)  of  the 
United  Nations  General  Assembly  calling 
for  the  urgent  need  for  suspension  of  nu- 
clear and  thermonuclear  tests  In  the  at- 
mosphere. 

I  ask  unanimous  consent  that  the  let- 
ter and  the  resolution  be  printed  in  the 
Record. 

There  being  no  objection,  the  letter 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


42435 


\ 


ar.d  resolution  were  ordered  to  be  printed 
In  the  RkcoED,  as  follows: 

Embassy    or    Indonesia. 
R  ojnt'ii;:,  Ti    D.C^  November  30. 1973. 
Hon     Van  -I    Hastkk, 
VS    Senate. 
Woihtnffton,  D.C. 

DsAx  ScNAToa  HABtiLK,  lo  respouse  to  your 
letter  of  October  18.  1973, 1  have  the  {Measure 
of  sending  resolution   2934   (XXVII)   of  the 
UJJ.  General  Assembly  on  Urgent  Need  for 
Suspension  of  Nuclear  and  Thermonuclear 
Tests,  which  was  cosponsored  by  Indonesia. 
I  hope  we  can  continue  exchanging  views 
on   this   Important    subject   of   nuclear    test 
ban. 
With  best  wishes,  I  remain 
Tours  sincerely, 

SjiUUF     THAjrB, 

Ambassador. 

2984  (XXVn) ,  UacKNT  Nkzd  Foa  Susi»«»r8ioM 
or  NucLXiUi  ANT)  THxaiiONT7ca.XA«  TrsTS 

A 

The  General  Aanembly, 

Recoffnizing  the  urgent  need  for  the  cessa- 
tion of  nuclear  and  thermonuclear  weapon 
tests. 

Recalling  Its  resolution  2602  E  (X.XIV)  of 
16  December  1969.  by  -jphlch  It  dp.:ia.'<»d  the 
decade  of  the  lS70s  as  a  Disarmament  Decade, 
and  Its  resolution  2734  (XXVi  ol  16  Decem- 
ber 1970,  which  contains  the  Declaration  on 
the  Strengthening  of  International  Security. 

Recalling  also  Its  resolution  914  (X)  of  16 
December  19&6,  1762  (XVII)  of  6  November 
1962.  1910  (XVin)  of  27  November  1963,  2023 
(XX)  of  3  December  1966,  2163  (XXI)  of  6 
December  1966,  2843  (XXII)  of  10  December 
1967,  2465  (XXIII)  of  20  December  1968,  2604 
(XXIV)  of  16  December  1968,  2668  (XXV)  of 
7  December  1970  and  2828  (XXVI)  of  16 
December  1971 

1 

Noting  with  regret  that  all  States  have  not 
yet  adhered  to  the  Treaty  Banning  Nuclear 
Weapon  Tests  In  the  Atmosphere,  in  Outer 
Space  and  under  Water,  signed  In  Moscow  on 
6  August  1963  > 

Erpressing  serious  concern  that  testing  of 
nuclear  weapons  in  the  atmosphere  has  con- 
tinued In  some  parts  of  the  world,  includ- 
ing the  Pacific  SLrea,  In  disregard  of  the  spirit 
of  that  Treaty  and  of  world  opinion. 

Noting  In  this  connexion  the  statements 
made  by  the  Governments  of  various  coun- 
tries In  and  around  the  Pacific  area,  express- 
ing strong  opposition  to  those  tests  and  urg- 
ing that  they  be  halted, 

1.  Stresses  anew  the  urgency  of  bringing  to 
a  halt  all  atmospheric  testing  of  nuclear 
weapons  in  the  Pacific  or  anywhere  else  In 
the  world; 

2.  Urges  all  States  that  have  not  yet  done 
so  to  adhere  without  further  delay  to  the 
Treaty  Banning  Nuclear  Weapon  Tests  In  the 
Atmosphere.  In  Outer  Space  and  under  Water 
and.  meanwhile,  to  refrain  from  testing  In 
the  environments  covered  by  that  Treaty; 

;/ 

Noting  that  no  less  than  nine  years  have 
elapsed  since  the  Treaty  Banning  Nuclear 
Weapon  Tests  In  the  Atmosphere,  In  Outer 
Space  and  under  Water  came  into  force. 

Taking  into  account  the  determination  ex- 
press«l  by  the  parties  to  'hat  TYeaty  'o  con- 
tinue nejfotlatlons  to  cor  elude  a  treaty  re- 
sult!n>;  In  the  permanent  banning  of  aU  nu- 
clear weapon  La-^t  explos!orL,s, 

1  Dec  lares  that  a  trea'y  banning  all  nu- 
clear weapon  teste  Is  an  Important  element 
In  the  consolidation  of  the  prepress  t<:j wards 
disarmament  and  arms  control  made  thus  fax 
and  that  it  wo'>::d  prestly  facUltate  future 
progress  In  these  fields, 

2,  Calls  upon  all  nuclear-weapon  States  to 


suspwnd  nuclear  weapon  tests  m  all  environ- 
ments; 

3  Cai^s  upim  t.t)e  Conference  of  the  Com- 
mittee on  Disarmament  to  give  urgent 
oonsideratlon  to  the  question  of  a  treaty  ban- 
ning all  nuclear  weapon  tests,  taking  Into  ac- 
count the  vtewB  already  expressed  in  the  Gon- 
fw^nce.  the  opinions  stated  at  the  current 
session  of  the  General  Assembly  and,  above 
al.,  the  pressing  need  for  the  eaiiy  conclu- 
sion of  such  a  treaty 

2093rd  plenary  meeting,  29  November  1972. 

» 

The  General  Assembiy, 

Conscious  of  the  dangers  to  n:anklnd  pre- 
sented by  a  continuation  of  the  nuclear  arms 
race. 

Believing  that  a  cessation  of  all  nuclear 
and  thermonuclear  weapon  tests,  including 
those  carried  out  underground,  would  con- 
tribute U)  a  deceleration  of  the  nuclear  arms 
race,  to  '.he  prcmo'lon  of  fur-hpr  Hrms  con- 
trol and  disarmament  measures,  and  to  a 
reduction  in  wr>rid  tension 

Believing  turther  that  a  cessation  of  all  nt;- 
clear  weapon  testing  would  inhibit  the  "Wider 
dissemination  of  nuclear  weapons, 

Sottng  ;;ir\  recrrr:  ihh-  :»o:  all  States  have 
yet  adhered  to  the  Tn-aty  Banning  Nuclear 
WeafKin  Tests  :n  the  Atmosphere,  in  Out«r 
.Space  and  under  Water,  signed  in  Moscow  on 
5  August  1693,> 

Nothing  urith  regret  that  despite  the  de- 
termination expressed  by  parties  to  that 
Treaty  to  achieve  the  discontinuance  of  all 
test  explosions  of  nuclear  weapons  for  all 
time,  parties  to  the  Treaty  continue  to  test 
nuclear  weapons  underground  and  that  no 
specific  proposals  for  an  imderground  test 
ban  agreement  are  under  negotiation. 

Recalling  that  the  General  A«emb:y  h&f 
repeatedly  expressed  its  concern  regarding 
the  continuation  of  nuclear  and  thermonu- 
clear weapon  testing.  In  parucular  in  Its 
resolutions  914  (X)  of  16  Derember  1.^56 
1782  (XVn)  of  6  November  1962.  1910 
(XVITT)  of  27  November  1963.  2032  i  XX  .  of 
3  December  1966,  2lf^3  iXXIi  of  6  December 
1966.  2343  (XXHi  of  19  December  1967.  2455 
(XXm)  of  20  December  1968,  2604  (XXn'i 
of  16  December  iri«9.  2«e3  XXV)  of  7  De- 
cember 1970  and  282fl  iXXVIl  of  16  De<-em- 
ber  1971, 

Having  coruiderecl  the  report  submitted 
on  26  September  1972  by  the  Conference  of 
the  Committee  on  Disarmament,'  and  In 
particular  the  sections  thereof  concerned 
with  achieving  a  comprehensive  test  ban. 

Noting  vith  satif  faction  the  completion  of 
a  first  set  of  bilateral  agreements  on  the  lim- 
itation of  strategic  arms  and  expressing  the 
hope  that  the  progress  so  far  achieved  wll! 
lead  to  further  agreed  limitations  on  nuclear 
arms  and  be  oonduc.ve  to  the  negotiation  of 
a  ban  on  underground  nuclear  weapon  test- 
ing, 

1.  Stresses  again  the  urgency  of  halting  all 
nuclear  weapon  tasting  In  all  environments 
by  all  States; 

2,  Urges  all  States  that  have  not  yat  done 
so  to  adhere  without  further  delay  to  the 
Treaty  Banning  Nuclear  Weapon  Tests  In  the 
Atmosphere,  In  Outer  Space  and  under  Water 
and,  meanwhile,  to  refrain  from  testing  In 
the  environments  covered  by  that  Treaty; 

3.  Calls  upon  all  Governments  conducting 
underground  nuclear  weapon  tests  particv:- 
larly  those  parties  to  the  Treaty  Banning 
Nuclear  Weapon  Tests  In  the  Atmosphere 
In  Outer  Space  and  under  Water,  immedi- 
ately to  undertake  unilateral  or  negotiated 
measures  that  would  suspend  or  reduce  such 
testing,  pending  the  early  entry  Into  force 
of  a  ban  on  all  nuclear  weapon  tests  in  all 
environments;  < 

4,  Urges  Governments  that  have  been  car- 


rying out  nuclear  weapon  tests  to  '.Ake  an 
active  and  constructive  part  In  presenting 
and  developing  In  the  Conference  of  the 
Committee  on  Disarmament,  or  Ln  any  other 
appropriate  body,  specific  proposals  for  a 
rom.prehenslve  test  ban; 

5  Request  the  Conference  of  the  Com- 
nuttee  on  Disarmament  to  give  first  priority 
t^  Its  deliberations  on  a  treaty  banning 
'Underground  nuclear  weapon  teste,  taking 
f'oii  account  of  views  of  experts  and  of  tech- 
nical developments  bearing  on  the  veriflca- 
tiou  of  uuci.  a  treaty,  and  further  requests 
the  Conference  to  submit  a  special  report  to 
the  General  Assembly  at  its  twenty-eighth 
seesion  on  the  results  of  its  deliberations  on 
this  matter, 

6.  Urges  Governments  to  take  all  appro- 
priate measures  further  to  develop  existing 
capabilities  for  detection  and  icentiflcation 
of  underground  nuc.ear  tests  t.i.rougr.  seis- 
mologlcal  and  other  lechnlCAl  meai-s,  and  'xi 
Increase  international  cc-.jpe.-ation  m  the 
elaboration  of  relevant  techniques  and  eval- 
uation of  selsmographlc  data.  In  order  to 
facilitate  an  underground  nuclear  -seap*©:! 
test  ban; 

7.  Calls  upon  Governments  to  seek  bj!  a 
matter  of  urgency  a  bait  i^^  a:i  nucleaj  weat  - 
on  testing,  and  to  endeavotir  'uj  acii;eve  at 
the  earliest  possible  date  a  co.iiprehe.'islve 
test  ban  and  Uj  obtain  universal  adherence 
to  such  a  ban 

2093rd  plenary  meeting,  29  November  1972, 

c 
The  General  Assembly.  Reaprming  tts  deep 
apprehension  concerning  the  harmful  conse- 
quences of  nuclear  weapon  tests  for  the  ac- 
celeration of  the  Bjnna  race  and  for  the  health 
of  present  and  futtire  generation.^  of  man- 
kind. 

Deploring  that  the  General  .Assembly  has 
not  yet  succeeded  In  Its  aim  of  achieving  a 
comprehen.sive  test  ban,  despite  twenty-one 
successive  resolutions  on  the  subject, 

Deploring  further  that  the  determination 
expressed  by  the  original  parties  to  the 
Treaty  Banning  Nuclear  Weapon  Testj=  in  the 
Atmosphere,  in  Outer  Space  and  under 
Water,  signed  In  Moscow  on  5  August  1963,* 
to  pursue  negotiations  to  achieve  the  discon- 
tinuance of  all  test  explosions  of  nuclear 
weapons  for  all  time  has  not  so  far  produced 
the  desired  result.s. 

Recalhng  its  resoluUons  1752  A  !XVII)  of 
6  November  1962  a::d  2828  A  iXXVJ)  of  16 
December  1971,  thereby  all  nuclear  weapon 
tests.  -Aithout  exception,  were  condemned, 

1,  Reiterates  once  again  uHth  the  ufmost 
vigour  Its  condemnation  of  all  nuclaar  weap- 
on tests; 

2  Reaflrms  its  conviction  that,  whatever 
may  be  the  differences  on  the  question  of 
verification,  there  is  no  valid  rea.'wn  for  de- 
laying the  conclusion  of  a  comprehensive  te.«t 
ban  of  the  nature  contemplated  In  the  pre- 
amble to  the  Treaty  Banning  Nuclear  Weap- 
on Tests  m  tlie  Atmosphere,  In  Outer  Space 
and  under  Water; 

3.  Urges  once  more  the  Governments  of 
nuclear-weapon  States  to  bring  to  a  halt  all 
nuclear  weapon  tests  at  the  earliest  possible 
date,  and  in  any  case  not  later  than  5  .^ugtist 
1973,  either  through  a  permanent  agreement 
or  through   unilateral   or  agreed   n.oratorta; 

4.  Requesrs  the  Sec^tary- General  to  trans- 
mit the  pre<;e::t  resolution  to  the  nuclear- 
■*ea;.on  Stat^,s  a:.rt  to  Inform  the  General 
Assembly  at  its  twenty-eighth  session  of  any 
mea-sures  they  have  taken  to  Implement  it. 

2093rd  plenary  meeting,  29  November  1972. 


•United   Nations,   Treaty  Series,  vol,   480 
No,  6964   p    43 


•fWd. 

*  Official  Records  of  the  Disarmament  Com- 
mission, Supplement  for  1972,  document 
DC  236. 


ABA  COM^nSSION  RECOMMENDS 
JUDGES  RETIRE  AT  70 

Mr,  ROTH   Mr   President,  the  Ameri- 
can   Bar    .Association    Commission    on 


♦  United  Nations.  TVeafy  Series,  vol  480.  No. 
6964,  p   43, 


42436 


CONGRESSIONAL  RECORD  —  SENATE 


Standards  of  Judicial  Administration 
chaired  by  US.  Court  of  Appeals  (D.C.) 
Judge  Carl  McGowan,  recently  formu- 
lated and  submitted  for  public  scrutiny 
their  proposed  standards  relating  to 
court  organization.  One  of  these  stand- 
ards suggests  that  all  Federal  judges  be 
subject  to  compulsory  retirement  at  70. 
As  the  Commission  has  noted. 
It  Is  now  generally  recognized  that  there 
should  be  an  age  for  compulaory  retirement 
for  Judges,  as  there  is  for  most  officials  and 
professionals  In  government,  business,  and 
nonprofit  organij»tlons. 

I  concur  with  the  Commission  in  this 
observation  and  I  commend  the  Com- 
mission's members  for  their  recom- 
mendation. 

Together  with  the  junior  Senator  from 
Maine  (Mr.  H.^thaway*.  I  have  Intro- 
duced Senate  Joint  Resolution  100,  pro- 
posing a  constitutional  amendment  to 
establish  a  mandatory  retirement  age 
for  all  Federal  Judges  and  Members  of 
Congress.  This  measure  would  prohibit 
the  appointment  of  anyone  to  the  Fed- 
eral bench  who  is  70  years  of  age.  It 
requires  those  already  on  the  Federal 
bench  to  retire  30  days  after  reaching 
that  age.  Finally,  the  proposal  grants 
immunity  from  its  impact  to  certain 
members  of  the  Federal  judiciary.  Those 
judges  who  have  not  served  the  mini- 
mum number  of  years  required  by  law 
to  become  eligible  for  their  pension 
benefits  will  be  allowed  to  remain  on  the 
bench  until  that  minimum  time  has  been 
serv^ed. 

I  ask  unanimous  consent  that  the 
Commission's  Standard  1.24,  entitled 
"Retirement  of  Judges"  be  printed  in 
the  RicoHD  at  the  conclusion  of  my  re- 
marks. 

There  being  no  objection,  the  standard 
was  ordered  to  be  printed  to  the  Rxcord 
as  follows: 

AitBucAU  Ba«  Association  Standams  Rki-at- 

ING  TO  COtrXT  OaCA^ffiATTON 

1-24  Retirement  of  Judges.  Judges  should 
have  pension  benefits  upon  retirement  as 
recommended  Ln  Section  123  and  should  be 
required  to  retire  at  age  70.  A  judge  who  Is 
retired,  whether  voluntarUy  or  upon  reach- 
ing the  age  of  compulsory  retirement  and  who 
Is  fully  able  to  perform  the  duties  of  an  active 
iudge  should  be  eligible  for  call,  with  his 
consent,  for  active  service  in  such  assign- 
ment as  the  chief  Justice  may  specify.  The 
term  of  such  an  appointment  shall  be  not 
more  than  six  months,  but  may  be  renewed 
whUe  in  active  service,  a  retired  Judge  should 
be  pa;d  the  same  salary  as  regular  Judges  of 
the  court  in  which  he  is  called  to  sit. 

COKKKXTAAT 

It  13  now  generally  recognized  that  there 
should  be  an  age  for  compulsory  retirement 
for  Judges,  as  there  Is  for  most  omcUls  and 
professionals  in  government,  business  and 
non-proQt  private  organizations.  A  ooinpul- 
•ory  retirement  system  makes  potslble  the 
orderly  termination  of  service  of  people  who 
on  the  average,  have  reached  an  ag«  when 
their  physical  and  mental  power*  do  not 
permit  them  to  carry  a  full  workload  Com- 
pulsory retirement  inevitably  works  arbi- 
trarily m  many  cases,  unless  the  age  of  com- 
pulsory retirement  is  fljted  so  high  as  to  de- 
feat lu  purpoae  The  consequene«8  of  not 
having  compulsory  retirement,  however  are 
unfortunate  and  sometimes  unpleasant,  both 
for  the  court  system  and  for  the  Judge  him- 
self No  spectacle  U  more  tragic  than  that  of 
tte  Judge  who  hangs  on  in  office  beyond  the 


December  19,  1973 


point  of  his  disability,  wishing  to  believe  he 
Is  still  doing  hU  Job,  but  suffering  the  doubts 
of  others  and  of  himself  that  he  la. 

A  retired  Judge  should  be  regarded  as  a 
public  official  with  responsibilities  and  mod- 
est prerequisites  as  such.  The  provision  for 
recaUlng  retired  Judges  to  active  service  has 
proved  an  effective  way  of  extending  the 
careers  of  Judges  who  are  stUl  vigorous  at  the 
age  of  mandatory  retirement,  while  mini- 
mizing the  difficult  or  invidious  distinctions 
made  between  people  of  advancing  age.  A 
retired  Judge  recalled  to  active  duty  should 
be  compensated  the  same  as  the  regular 
Judges  of  the  court  In  which  he  serves. 


ON  PEACE  IN  THE  MIDDLE  EAST 

Mr.  WILLIAMS.  Mr.  President  on 
Monday.  December  17.  the  American 
Jewish  Committee  paid  tribute  to  a  great 
American  labor  leader.  Mr.  George 
Meany.  for  his  years  of  outstanding  serv- 
ice to  this  NaUon  and  his  conttouing 
contributions  to  the  cause  of  freedom  and 
Justice  which  have  benefited  not  only 
Americans  but  millions  of  people 
throughout  the  world. 

In  a  major  policy  statement  on  the 
Middle  East  for  the  American  Jewish 
Committee  dinner  In  New  York  honor- 
ing the  president  of  the  AFI^-CIO.  my 
distinguished  colleague,  the  Junior  Sena- 
tor from  Washington,  praised  to  particu- 
lar the  solidarity  of  American  labor,  un- 
der Mr.  Meany's  leadership,  with  the 
Jewish  struggle  for  survival  against  Nazi 
persecution,  Soviet  oppression  and  Arab 
aggression.  I  am  proud  of  the  early  and 
consistent  support  of  the  greatest  free 
labor  movement  to  the  world  for  our  sis- 
ter democracy  In  the  Middle  East— la- 
bor's strong  stand,  which  Mr.  Meany  so 
forcefully  presents.  Is  of  course  especial- 
ly vital  at  this  critical  time. 

Mr.  President,  I  would  like  to  call  the 
attention  of  my  colleagues  to  Senator 
Jackson's  remarks  congratulating  our 
mutual  friend,  George  Meany.  and  to  the 
Senator  from  Washington's  important 
analysis  and  recommendations  with  re- 
spect to  the  current  Middle  East  situa- 
tion. As  a  strong  and  consistent  support- 
er of  American  labor  and  of  the  State 
of  Israel,  his  remarks  are  especially  note- 
worthy. 

I  ask  unanimous  consent  that  this  ad- 
dress be  printed  to  the  Record 

There  betog  no  objection,  the  address 
was  ordered  to  be  printed  to  the  Record 
as  follows: 

On    PiAct   IN    THi   Meddlx   East 
(Address  by  Senator  Hurar  M.  Jackson) 

A     THIBfTX     TO     CBOBCE     MEANT 

What  a  pleasure  tt  Is  to  be  here  tonight 
to  Join  with  you  in  honoring  Oeorge  Meany : 
a  cherished  friend,  a  courageous  leader,  a 
good  and  decent  man  whose  spirit  and  inde- 
pendence and  vision  have  advanced  the 
cause  of  justice  at  home,  and  freedom  abroad, 
for  m.-)re  than  half  a  century. 

No  one  In  this  century  has  fought  as  long 
or  as  hard  or  as  effectively  to  assure  that 
Americas  great  abundance,  the  fruit  cf  our 
working  men  and  women,  is  shared  by  those 
too  poor  or  too  .«lck.  too  old  or  too  power- 
leas,  to  provide  for  themselves  And  no  one 
has  seen  more  clearly  or  consistently,  whether 
hU  allies  were  many  or  few.  that  the  struggle 
for  freedom  and  justice  o&nnot.  and  must 
not.  stop  at  the  water  s  edge. 

One  day  in  1935— Oeorge  would  remember 
the  exact  Ume  and  place — David  Dublnsky 


and  Matthew  WoU  went  to  a  meeting  In  this 
city  called  to  protest  Nazi  persecution.  The 
secretarj'-treasurer  of  the  AFL.  an  Irishman 
who  had  got  his  start  as  an  apprentice 
plixmber.  went  nlong  with  them:  and  on  that 
day  Oeorge  Meany  knew— and  he  has  known 
It  ever  since — that  free  men  cannot  rest 
while  their  fellows  are  oppressed. 

The  rest  belongs  to  history;  and  It  Is  a 
history  worth  repeating  The  conventions  of 
the  APT,  m  the  1930-8  sounded  the  alarm 
again  and  again  as  convention  after  con- 
vention called  for  a  boycott  of  Nazi  Oermany 
Together  with  the  Jewish  Labor  Committee. 
It  -Ktya  the  AFX  that  approached  Roosevelt 
seeking  visas  for  the  victims  of  Nazi  per- 
secution. And.  If  I  mav  depart  from  the 
chronology  for  a  moment,  tt  wa.s  the  AFT> 
CIO,  under  Oeorge  Meany's  leadership,  that 
helped  assure  the  overwhelming  victory  of 
the  Jackson  Amendment  in  the  House  of 
Representatives  last  week 

At  the  end  of  World  War  n.  during  the 
euphoria  that  swept  Europe,  during  the  de- 
tente with  Russia  and  the  demobuizatlon  of 
the  American  army,  at  a  time  when  Ameri- 
cans were  urged  to  turn  Inward  once  again 
men   like   WUllam    Oreen,   David    Dublnsky' 
Matthew  Won   and   Oeorge  Meany  were  de- 
termined  that  Staim  must    not   be   allowed 
to  pick  up  the  pieces  of  Europe  that  had 
been  struck  from  Hitler's  hands.  As  the  tide 
Of    internationalist    concern     was    recedlm? 
around   them,   these   few  men,   to  whom  so 
many    owe    their    freedom,    continued    the 
struggle    for    Individual    liberty    in    Europe 
through   the   Free   Trade   Union   Committee 
that    they   had    organized    in    1944    On   the 
waterfront  at  Marseilles.  In  the  factories  of 
Rome,    among    apprentices    In    Athens,    the 
Free  Trade  Union  Committee,  working  with 
European   Social   Democrats,   frustrated    the 
attempt  of  the  Communist  parties  of  Europe 
to   dominate    the   trade   unions   and   gain   a 
stranglehold  on  the  economies  shattered  by 
World  War  II.  This  brave  and  visionary  ef- 
fort. In  my  Judgment,  laid   the   foundation 
for  the  Marshall  Plan  and  for  the  eventual 
reconstruction  of  democracy  in  Europe. 

At  home,  as  my  friend  Bayard  Rustln  has 
so  often  pointed  out,  none  of  the  great  legis- 
lative victories  m  the  field  of  civil  rtghta 
could  have  been  achieved  without  the  sup- 
port of  the  AFX-Cio.  And  the  AFL-ciO  has 
truly  been  the  leading  edge  of  social  jtistlce 
In  America.  Oo  down  the  list;  education, 
housing,  employment,  poverty,  tax  reform 
minimum  wage,  voting  rights,  the  environ- 
ment, national  health  Insurance — Oeorge 
Meany  and  the  American  labor  movement 
have  fought  and  won  the  crucial  battles  In 
the  war  for  social  Justice  that  they  con- 
tinue to  wage  even  now. 

Following  a  history  of  support  for  and 
alliance  with,  the  Hlstadrut  that  U  as  old 
as  Israel  itself,  the  American  labor  move- 
ment was  the  first  non-Jewish  Institution  in 
the  United  States  that  gave  full  support  to 
Israel  during  the  Tom  Klppur  War— support 
that  contli«ies  In  the  current  political  crisis 
I  am  speaking  of  the  entire  labor  move- 
ment—Industrial and  craft  unions,  maritime 
and  public  employee  unions,  black  and  white 
workers  alike. 

Tonight  we  honor  a  man  who.  In  his  sup- 
port for  Israel.  Is  standmg  with  a  friend  m 
need,  resisting  blackmaU  In  the  name  of 
solidarity,  swimming  Against  the  isolation- 
ist tide  m  the  defense  of  freedom— standing 
strong  as  he  hai  always  stood 

On  the  eve  of  the  Oeneva  negotiations.  I 
Join  with  all  of  you  in  hoping  that  the  tragic 
connict  that  has  four  times  encrulfed  the 
Middle  Bast  In  cat«i8trophlc  war.  will  now 
be  renolved  In  p«»ce  My  hope  U  for  a 
genuine  peace,  a  lasting  peace,  a  peace  not 
only  of  the  fathers  but  of  the  sons  as  well, 
a  stable  peace  that  can  be  defended  by  an 
iKrael  whose  recognized  iKwders  are  defen- 
sible, whose  children  can  grow  up  amongst 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42437 


i 


their  Arab  neighbors  across  open  bridges,  smd 
whose  future  does  not  depend  on  the 
ephemeral  guarantees  or  the  military  forces 
of  outside  powers. 

SXCENT   HISTORY  OF  THE   MIDDLE  EAST  CONFLICT 

Having  followed  closely  the  history  of  the 
Middle  East,  especially  its  recent  history,  I 
can  summon  hope  as  the  parties  assemble  In 
Oeneva,  but  I  cannot  summon  much 
optimism 

The  outbreak  of  the  October  6  war — the 
Arab  war  of  aggression  against  Israel — and 
let  us  call  It  what  It  was  and  Is.  even  If 
the  Secretary  of  State  will  not,  was  the  cul- 
mination of  a  series  of  events  going  back 
at  least  to  August  of  1970.  The  unfolding 
of  those  events  is  so  instructive  that  I 
wish  to  review  some  of  them  with  you  now. 
On  August  7.  1970  the  United  States, 
the  Soviet  Union.  Egypt  and  Israel  entered 
Into  a  standstill  cease-fire  agreement  that 
had  been  hastily  arranged  by  Secretary  of 
State  Rogers.  The  August  cease-fire  provided 
that  neither  side  would  Introduce  or  con- 
struct any  new  military  Installations  In  a 
zone  extending  30  miles  on  either  side  of  the 
Suez  Canal.  No  sooner  did  the  cease-fire 
with  Its  standstill  provision  start  than  the 
first  Soviet -Egypt  Ian  violations  occurred — 
that  very  night  of  August  7.  The  extent  of 
the  Illegal  movement  of  surface-to-air  mis- 
siles In  the  cease-fire  zone  removed  any  doubt 
that  the  violations  might  have  been  un- 
authorized or  spontaneous.  It  was  a  calcu- 
lated effort  to  take  advantage  of  Israeli  com- 
pliance. The  Rus.^lftn8  were  deeply  Involved 
In  the  planning  and  execution  of  the  viola- 
tions. 

At  the  time,  on  August  n.  I  advised  Dr 
Kissinger,  who  was  then  the  President's 
National  Security  Adviser,  as  follows:  "In 
my  Judgment,  we  should  Insist  that  the  il- 
legally emplaced  surface-to-air  missiles  be 
removed  .  .  .  We  cannot  legitimize  these 
violations  by  proceeding — and  asking  the 
Israelis  to  proceed — as  though  they  had  not 
occurred.  Whatever  we  may  choose  to  say 
publicly,  our  private  communications  with 
the  Soviets  must  be  clear  on  this  point." 

I  further  advised  Dr  Kissinger;  ".  .  .  a 
failure  to  stand  firm  now  may  well  Invite 
further  violations.  The  illegal  activity  sub- 
sequent to  August  7  Is  an  early  and  alarm- 
ing Indication  of  what  we  must  expect.  WhUe 
no  single  violation  will,  in  and  of  Itself, 
give  sufflrtent  caiise  for  terminating  the 
cease-fire,  the  accumulated  result  could  do 
Irreparable  harm  to  Israel's  security  " 

Referring  to  the  SAM  missiles  moved  ille- 
gally Into  the  cease-fire  sone.  I  said  this  In 
a  December  1970  report  to  the  Senate  Com- 
mittee on  Armed  Services 

"The  position  of  some  elements  of  this  air 
defen.se  network  Is  such  that  they  are  effec- 
tive against  aircraft  operating  several  miles 
on  the  Israeli  side  of  the  Canal  The  net 
effect  Is  to  Impverll  the  effectiveness  of  the 
Israeli  Air  Force  as  a  means  of  preventing 
both  cross-canal  fire  and  an  actual  crossing 
of  tlie  Canal  lt.«;elf 

"If  the  present  uneasy  cease-fire  deterio- 
rates and  hostilities  resxime,  the  Israeli  Air 
Force  would  pay  a  high  price  In  lives  and 
aircraft  In  attempting  to  destroy  the  SAM 
defense  system. 

".^ny  way  one  looks  at  It  resumption 

of  the  earlier  level  of  hostilities  along  the 
Canal  would  claim  a  higher  number  of  Is- 
raeli casualties,  both  on  the  ground  and  In 
the  air,  than  was  the  case  prior  to  August  7. 
1970" 

This  Is  one  of  those  cases  where  I  wish  I 
had  been  wrong — but  unhappily  I  was  right. 
And  the  tragic  fact  Is  that  young  Israeli 
soldiers  and  airmen  paid  with  their  lives  for 
the  failure  to  Insist  that  Egypt  and  the 
Soviet  Union  adhere  to  the  agreement  that 
we  arranged  and  that  they  joined 

THE  SOVXrr  A&KtNO  OF  ECTPT  AND  STEIA 

In  the  more  than  three  years  that  foUowed. 
the    Soviet    Union    engaged    In    one    of    the 


largest  military  build-ups  in  their  history, 
supplying  guns,  tanks,  aircraft  and  missiles 
to  Egypt  and  Syria  in  huge  quantities  and 
under  the  cover  of  the  cease-fire  We.  for 
o\ii  part,  limited  the  Israelis  to  piecemeal 
supplies  of  aircraft  and  armor — despite  the 
fact  that  the  Congress,  In  1970,  adopted. 
and  the  President  signed,  my  amendment  to 
the  Defense  Procurement  Act  authorizing 
the  President  to  transfer  to  Israel  by  credit 
sale  whatever  was  needed  in  aircraft  and 
other  equlpmei.t  to  offset  equipment  fur- 
nished to  the  Arab  armies 

In  recent  months  the  fiow  of  Soviet  arms 
Into  Syria  reached  fiood-llke  projxjrtlons. 
More  than  half  of  the  Jet  aircraft  In  the 
Syrian  .Mr  Force  and  nearly  all  of  the  sur- 
face-to-air missiles  that  claimed  the  lives  of 
so  many  Israeli  pilots  were  delivered  by  the 
Soviet  Unlori  to  Syria  after  the  beginning  of 
this  year.  We  now  know  that  a  substantial 
fraction  of  the  Syrian  force  of  SA-6  mlssUes 
that  were  used  with  deadly  effect  against 
Israel's  Phantoms  were  delivered  in  the 
weeks  Just  preceding  the  outbreak  of  war 

My  point  Is  simple:  we  stood  by  and 
watched  while  the  Soviet  Union  supplied  the 
means  by  which  this  bloody  war  was  Initiated 
and  fought,  and  we  continued  to  stand  by 
for  a  week  after  October  6  before  deciding 
to  resupply  Israel  with  essential  weapons  in 
adequate  numbers. 

Without  Soviet  support  and  material  en- 
couragement, without  Soviet  training  and 
equipment,  without  Soviet  poUtlcal  and 
diplomatic  backing,  without  the  prospect  of 
unlimited  resupply  of  Arab  forces,  the  Tom 
Klppur  war  would  not  have  been  .started 

Soviet  IrrespKDnslblllty  did  not  stop  on  Oc- 
tober 6  with  the  outbreak  of  war  Secretary 
Brezhnev,  violating  the  letter  as  well  as  the 
spirit  of  agreements  reached  at  the  Washing- 
ton summit,  did  his  best  to  urge  other  Arab 
states  to  Join  the  attack  against  Israel  Then 
the  Soviets  undertook  a  massive  airlift  of 
weap>ons  into  Syria  SLnd  Egypt  which,  com- 
bined with  massive  sea  shipments,  have  now 
restored  the  Arab  a.-mles  to  the  levels  of 
armament  they   possessed  on  October  6. 

■THE    StJMMIT    AGREZMFNT    OF    JTTNE    22 

Just  six  months  ago,  on  June  22  of  this 
year,  Secretarv  Brezhnev  and  F»resldent  Nlzon 
signed  an  'agreement  on  prevention  of  nu- 
c\o6i  war"  In  Article  II  of  this  document  the 
Soviet  Union  agreed  to  "refrain  from  the 
threat  or  use  of  force  against  the  other  Party, 
against  the  allies  of  the  other  Party  and 
against  other  countries  In  circumstances 
which  may  endanger  internationaj  peace  and 
security."  In  explaining  the  agreement  of 
June  22  at  a  press  conference  following  the 
signing,  Dr.  Kissinger  emphasized  that  It  w-as 
jjart  of  an  effort  to  "calm  the  atmosphere 
and  replace  purely  military  measures  by  a 
new  attitude  of  a  cooperative  international 
system."    He   called    It   "  a   miieatone    In 

the  achievement  of  self-resxralnt  by  the 
major  countries,  a  self-restraint  which  Is. 
by  definition,  the  essence  of  peace  and  which 
we  Intend  to  observe,  which  we  exnect  the 
Soviet  Union  to  observe."  He  described  the 
agreement  as  "a  formal  obligation  that  the 
two  nuclear  superpowers  have  taken  towards 
each  other,  and  equally  Importantlv.  towards 
all  other  countries,  to  practice  restraint  In 
their  diplomacy,  to  build  a  peace  that  la 
permanent,  to  pursue  a  policy  whose  dedica- 
tion to  stability  and  peace  will  beoome" — 
and  here  E>r.  Kissinger  quoted  Secretary 
Brezhnev — "Irreversible." 

I  leave  It  to  you  to  decide  whether  the 
alerting  of  seven  fully  mobilized  dlvlrtons  of 
Soviet  airborne  troops  along  with  a  brutal 
and  threatening  no'*  from  Secretary  Bresh- 
nev  that  was  delivered  the  night  of  October 
34  Is  In  keeping  with  the  agreement  as  Dr 
Kissinger  described  It  I  don't  know  whether 
the  agreement  to  purstie  peace  and  stability 
Is  irreversible,  but  on  the  night  of  October 
34  it  became,  like  so  much  else  In  Wash- 
ington these  days,  inoperative. 

The     agreement    of     June     23.     llks     the 


euphoric  description  of  It  by  the  Secretary 
of  State — Indeed,  like  much  of  the  as  yet 
unfuUlUed  promise  of  detente — has  turned 
out  to  be  mere  uxjrds  well  said,  perhaps,  but 
mere  words — nonetheless.  If  you  will  forgive 
me  for  quoting  King  Henry — Henry  tiie  VHI, 
that  is.  from  Shakespeare;  "  Tls  a  kind  of 
good  deed  to  say  well;  and  yet  words  are  n(F 
deeds." 

THE    REQtJIEEMENTS    TOR    PEACE 

If  there  Is  to  be  hope  for  a  peaceful  settle- 
ment at  the  Oeneva  talks,  we  must  have 
deeds  as  well  a£  words,  performanse  as  well 
as  promise,  substance  as  well  as  atmosphere. 

It  Is  all  very  well  for  the  Arabs  to  say  that 
they  are  prepared  to  make  peace  with  Israel. 
Those  words  have  been  a  long  time  coming, 
and  I  welcome  them. 

But  peace  must  be  more  than  a  word,  more\  /^ 
than  a  mere  document  that  can  be  torn  up  ^, 
when  It  suits  the  convenience  of  aggressive 
governments  to  go  to  war  again.  It  must  be 
something  concrete.  It  must  exist  Ui  the 
dally  lives  of  men.  for  only  then  can  it 
eventually  come  to  exist  In  men's  minds  as 
well;  and  only  then — finally — can  it  be  se- 
cure. It  Is  naive  to  Imagine  that  the  enmities 
of  decades  will  vanish  with  the  stroke  of  a 
pen.  But  for  a  peace  treaty  to  be  more  than 
Just  a  scrap  of  paper,  It  must  do  more  than 
simply  move  the  walls  that  separate  Arabs 
from  Israelis  to  a  new  location.  It  must  per- 
mit Arabs  and  Israelis  to  work  together,  to 
trade  with  one  another,  to  talk  with  one 
another,  to  see  for  themselves  the  truth 
about  their  neighbors. 

One  of  the  most  hopeful  developments  of 
the  last  six  years  In  the  Middle  East,  in  my 
opinion,  has  been  the  progress  that  has  been 
made  In  relations  between  Israelis  and  Arabs 
on  the  West  Ba;^  and  in  the  Gaza  Strip. 
Thousands  of  Arabs  work  and  travel  in 
Israel — In  spite  of  the  efforts  of  grenade- 
throwing  terrorists  to  stop  this  by  attacking 
Arab  civilians  waiting  for  buses  t«  take  them 
to  work  In  Israel.  Thousands  of  Israeli  citi- 
zens now  visit  Arab  towns  which  for  almost 
twenty  years  they  were  permitted  to  see  only 
across  barbed  wire  fences  This  progress  has 
been  truly  remarkable  It  has  been  made 
under  the  inevitably  imperfect  conditions  of 
a  state  of  war  It  will  contmue  xmless  w© 
create  artificial  political  entitles  that  deliver 
the  Palestinian  Arabs  mto  the  hands  of  the 
hijackers  who  claim  so  falsely  to  represent 
them.  It  must  continue  If  there  Is  to  be  a 
true  peace 

I  am  afraid  that  the  Russians  know  very 
little — and  want  even  less — of  this  kind  of 
peace  F^ace  for  them  Is  not  an  opportunity 
for  people  to  know  one  another  better  and 
communicate  with  one  another  The  only 
peace  they  are  Interested  In  Is  a  peace  which 
leads  to  more  Russian  Influence  In  the  Mid- 
dle East,  to  more  sales  of  Soviet  arms  for 
Arab  hard  ctirrency  and  to  more  use  of  the 
Arab  oil  weapon  against  countries  of  the 
West  "Hiat  Is  no  ■pc%c*  but  merely  a  stoppliig 
place  on  the  road  to  another  war 

KEEPING    THE    GREAT    POWIXS    OTTT    OF    TUB 
lODDUl    KAST 

I  am  astonished  to  hear  It  said  that  the 
best  way  to  bring  stability  to  the  Middle 
East  is  to  set  up  a  peace-keeping  force  that 
would  Involve  the  sending  of  Russian  and 
American  troops  Into  that  vcrfatUe  region. 
This  seems  to  me  a  formula  that  carries  with 
It  the  very  great  danger  of  dragging  the 
superpowers  into  a  military  confrontation. 
I  do  not  want  to  see  American  troops.  I  do 
not  want  Russian  troops,  stationed  In  the 
Middle  East  The  military  forces  of  the  super- 
pwwers  cannot  and  should  not  substitute  for 
a  secure  peace  based  upon  defensible  borders 
for  I.wael. 

No  peace  that  require*  the  presence  of 
Russian  forces  to  police  tt  will  be  worth 
the  paper  it  is  printed  on  Russian  partic- 
ipation In  any  peace-keeping  force  can  be 
nothing  but  a  oonstrtently  one-sided,  p*r- 
tlaan   affair.   This   is   the   long   and   dlaoMl 


4MS8 


CONGRESSIONAL  RECORD  —  SENATE 


record  Uwit  the  Sortet  Union  knd  its  aat«Ulte 
governments  h*v«  e«t*bUahed  in  every  latcr- 
n*tlon«U  body  in  which  they  hAve  partic- 
ipated in  the  last  35  years,  whether  It  has 
been  the  United  Nations  Seciirlty  Council, 
the  Allied  Oootrol  Oommlsalon  in  Berlin 
\  or  the  several  truc«  auperrlslon  commissions 

^  in  Indochina.  It  is  the  same  record  that  we 

heard  played  in  the  Security  Council  just 
el^t  weeks  a^o.  TtM  Russians  were  inter- 
ested In  a  cease-fire  only  when  their  side 
was  losing. 

A  real  peace  in  the  Ulddle  Bast  abould 
lead,  not  to  more  Russian  involvement,  but 
less.  Design  a  peace  that  does  not  rely  on 
tissue-paper  outside  gxiarantees.  a  peace 
that  goes  beyond  the  word  ItaeU  to  embrace 
a  climate  ot  Arab-Israeli  cooperation,  a  peace 
In  which  Israel  has  borders  that  Israel  can 
defend — that  Is  what  we  should  be  seeking  at 
Oeneva. 


December  19,  1973 


fKACX    A«D    INT¥«J«ArrONAX     OUAaANTTSB 

One  bean  a  great  deal  theae  days,  from 
p)eopla  wboee  vision  Is  shorter  even  than 
their  memories,  about  the  wisdom  of  inter- 
national guar&nteen  as  a  meaiu  of  assuring 
Israel's  security.  I  can't  Imagine  a  more 
misdirected  policy  than  to  ask  Israel,  which 
h««  been  the  model  of  the  self-reliant  ally. 
to  transform  itself  into  an  American  de- 
pendency. There  are  few  situations  In  the 
world  that  axe  more  volatUe  than  the  Mid- 
dle East,  few  places  so  endowed  with  an 
abundance  of  mischievous  elements  and  un- 
bridled passions.  Por  the  United  States  to 
pour  Itself  Into  that  cauldron  of  instabil- 
ity, along  with  the  Russians  and  asaorted 
other  force*,  is  to  invite  a  multitude  of  mis- 
chief makers  to  try  their  hand  at  stirring  the 
pot. 

Much  of  the  history  of  International  guar- 
antees Is  the  history  of  countries  who  have 
lost  their  territory,  their  freedom  and  even 
their  sons  and  daughters.  It  ts  the  history 
of  nations  drawn  into  conflicts  that  would 
have  been  better  contained.  It  is  a  history 
that  the  Israelis,  for  their  reasons,  and  we, 
for  ours,  ought  to  do  everything  possible  to 
avoid. 

Give  the  Israelis  the  tools  they  need  to  pro- 
vide for  their  own  defense  and  I  am  con- 
fident that,  with  defensible  borders,  they 
will  provide  for  their  own  security  Olve 
them  guarantees  instead  and  we  wiu  in- 
evitably end  up  Joining  them  in  a  quagmire 
of  InstabUlty. 

DKFTNSIBL^    BOKOKaS    FOB    ISEAXI. 

If  there  U  to  be  a  stable  and  lasting  peace 
In  the  Middle  East  It  must  be  a  peace  that 
Israel  can  defend  along  borders  that  are 
defensible 

I  hear  a  great  deal  of  talk  these  days 
about  the  '•pre-l9«7  borders  •  Those  borders 
are  nothing  more  than  the  cease-fire  lines 
of  a  preceding  war.  But  let  me  remind  you 
of  some  of  the  Implications  ot  those  borders 
for  Israeli  secxirlty.  Before  the  ie«7  war  vir- 
tually all  of  populated  arael.  with  the  excep- 
tion of  the  city  of  Haifa,  was  within  range 
of  Arab  artillery  Armored  thrusts  of  Just 
ten  or  twenty  miles  could  cut  the  country 
m  two  In  any  of  several  critical  places  The 
Qasa  Strip  provided  a  salient  in  which  the 
Egyptian  Army  was  able  to  deploy  just  30 
miles,  along  a  flat  and  sandy  coast,  away  from 
the  city  of  Tel  Aviv  Prom  the  Golan  HetghU 
the  Syrian  Army  rained  artillery  shells  at 
will,  from  virtually  Impregnable  positions,  on 
Israeli  setuements  la  the  valley  below  And. 
In  some  ways  worst  of  all.  Egyptian  bombers 
could  be  over  Tel  Aviv  after  a  mere  twefve- 
mlnute  flight  from  their  bases  in  the  Slnal 
Desert 

Has  any  of  this  changed  In  the  alz  inter- 
vening years'*  Certainly  geography  has  re- 
mained the  same.  But  now.  in  addition  to 
Arab  artUlery.  the  Israelis  must  worry  also 
about  Buselan- manned  surface-to-surface 
missiles  and  about  Rusaian-buUt  SAM's  ex- 


tending their  deadly  umbrella  across  Israeli 
air  space  over  population  centers.  Now  the 
Arab  tanks  are  new.  Improved  Soviet  models, 
supported  by  a  lethal  array  of  Soviet  anti- 
tank mlsalles  Now.  those  short  flights  from 
the  Slnal  to  Tel  Aviv  may  be  made  not  only 
by  Arab  but  by  North  Korean  or  even  Rus- 
sian pUots.  Very  little  has  changed  in  sU 
years,  except  that  Soviet  equipment  has 
gotten  better  and  their  wlllingneM  to  sup- 
ply It  to  the  Arabs  Is  virtxially  unlimited. 

Three  years  ago  I  made  a  trip  to  the  Middle 
East  where  I  examined  what  some  of  the 
ingredients  of  a  more  stable  settlement  might 
be.  Everything  that  has  happened  since  that 
time  leads  me  to  reafllrm  that  "for  Israel  to 
abandon  the  secujrtty  of  her  present  borders 
m  exchange  for  ephemeral  concesslone  from 
the  other  side  would  endanger  not  only 
Israel's  survival,  but  the  peace  of  the  world 
as  well." 

Now.  as  then.  I  believe  that  a  stable  settle- 
ment cannot  be  achieved  If  It  simply  moves 
the  borders  back  so  that  the^Arab  armies 
with  their  Soviet  weapons  and  advisers  can 
move  cloeer  to  Israeli  population  centers 
Israel  cannot  tolerate  living  In  the  shadow 
cf  Syrian  gxms  or  along  borders  arrayed  with 
Egyptian  armor  and  air  forces,  and  an  agree- 
ment that  attempted  to  force  such  a  result 
would  be  properly  rejected  by  any  Israeli 
government  that  I  can  imagine. 

THE    POLmCAi    POtJNDATION    FOR    PEACS 

Above  all.  however,  a  Middle  East  settle- 
ment must  rest  on  more  than  firm  security 
arrangements.  It  must  have  a  firm  political 
basis  as  well.  A  secure  peace  must  Involve  a 
clear  recognition  by  the  Arabs  that  the 
existence  of  Israel  Is  no  longer  at  Issue  It 
must  not  be  possible  for  a  peace  settlement 
to  be  regarded  as  merely  a  tactical  step  on 
the  roed  to  eventual  Uquldation  of  the  SUte 
of  Israel. 

There  are  twenty-flve  years  of  deeds  In  t.ie 
Middle  East  that  cannot  be  undone  by  a  few 
weeks  of  words.  There  have  been  Israeli 
prisoners  of  war  murdered  and  mutilated  la 
ways  too  horrible  to  describe — and  the  Syrian 
government  which  Is  responsible  for  all  of 
this,  and  which  still  refuses  to  release  even 
the  names  of  the  Israeli  prisoners  it  holds. 
is  so  unreliable  and  unstable  as  to  raise  the 
most  profound  doubts  about  the  wisdom  as 
well  as  the  p>otentlal.  for  any  meaningful 
settlement  There  has  been  the  mindleas 
slaughter  of  innocent  and  wholly  unlnvolved 
civilians  at  Munich  and  at  Lod  Airport  and 
airports  and  cities  too  numerous  to  men- 
tion—and the  Soviet  Union  and  some  Arab 
governments  are  proclaiming  that  the  men 
responsible  for  these  atrocities,  and  not  the 
government  of  Jordan  are  the  sole  represent- 
atives of  the  Palestinian  people  There  were 
almost  twenty  years  in  which  not  a  single 
Israeli  was  able  to  visit  Jewish  holy  places  In 
Jerusalem — and  yet  King  Palaal  and  Sheik 
Tamani  say  that  Jerusalem  must  be  under 
Arab  control 

This  long  history  of  deeds  cannot  be  un- 
done by  mere  words  It  can  only  be  undone 
by  a  gradual  accumulation  of  deeds,  in  the 
course  of  measured  and  deliberate  negotia- 
tions and  a  free  and  open  peace — deeds  like 
the  open  access  to  holy  places  that  has  pr«» 
vailed  under  six  years  of  IsraeM  contnsl  of 
Jerusalem,  deeds  like  the  moderation  with 
which  Israel  has  treated  even  captured  Arab 
terrorists 

TH»   KXANTNC  OF  V  It    arSOLCTION    2*1 

All  Of  the  parties  that  will  be  represented 
at  Oeneva  have  given  public  approval  to  U  N. 
Resolution  343,  a  pronotincement  of  the  Se- 
curity Oounctl  adopted  on  November  23  1M7 
The  Arabs,  encouraged  by  the  Soviet  Union, 
have  deliberately  choeen  to  describe  that 
resolution  in  a  manner  that  Is  flatlj^  Incon- 
sistent with  Its  language  Its  history  and  Its 
purpose  To  claim,  as  they  do.  that  it  re- 
quires   Israeli    withdrawal    from    all   of    tlM 


territory  occupied  as  a  consequence  of  the 
Six  Day  War  Is  a  flat  distortion  of  the  text 
and  a  misrepresentation  of  the  purpoee  of 
the  Security  Council  If  242  called  for  with- 
drawal fron-i  ,j;.'  the  territory  It  would  have 
said  so   It  doea  :.ot 

The  Soviet  Union  and  the  Arab  states 
would  have  preferred  a  8«>curlty  Oouncll  reeo- 
lutlon  caUlng  for  total  withdrawal  of  Israeli 
'orcee;  but  they  tried  and  faUed  u>  (cet  surh 
a  resolution  By  .se*kl.'.(i!  t')  chanKe  the  rules 
after  the  game  .^a.s  b«^r;  played  they  not  o:Jy 
violate  our  sense  of  fair  play,  they  encour- 
age the  deep  suspicions  that  can  only  dimin- 
ish the  chance  for  peace 

I  am  particularly  disappointed  that  the 
Soviet  Union,  even  following  the  meetings  in 
Moscow  at  which  the  present  cease-fire  was 
arranged,  refuses  to  adhere  to  the  actual  text 
of  U.N.  Resolution  242,  But  no  matter  how 
much  they  try  to  obfuscate,  the  Soviet  in- 
terpretation of  242  Is  a  lie,  em  uncomfortable 
lie  that  exploits  the  complexity  of  the  issue, 
but  a  lie  nevertheless 

It  would  clearly  advance  the  cause  of  a 
peaceful  settlement  If  the  Soviets  could  be 
persuaded  to  quit  lying  about  the  meaning 
of  243.  But  the  very  least  that  we  can  do  Is 
to  reject  the  Soviet  version — clearly  and  un- 
ambiguously That  won't  be  easy  for  an  Ad- 
ministration so  accustomed  to  protecting 
Itself  with  amblpultles 

TBK    tCIDDLX    EAST    AND    THE    KNVIGT    CSISIS 

L«t  me  say  a  word  about  the  Middle  East 
and  the  energy  crUls  It  U  time  for  the  Ad- 
ministration to  speak  some  plain  truths  to 
the  American  people:  our  energy  crisis  does 
not  reeult  from  the  Arab-Israeli  dispute  and 
It  did  not  arise  out  of  the  Yom  Klppur  war. 
Without  the  dispute,  without  the  war.  In- 
deed, even  without  the  existence  of  the  State 
of  Israel,  we  would  have  faced  an  energy 
crisis  this  year  and  for  several  years  to  come. 
Saying  this  will  not  solve  the  shortages  we 
face,  but  it  will  help  the  American  people 
to  understand  that  the  oil  weapon  Is  a  pea 
shooter  and  not  a  howitzer. 

The  essential  fact  of  the  energy  crisis 
Is  that  it  arises  out  of  the  economics  of  oU 
production  In  a  world  of  many  consumers 
and  growing  demand  and  few  suppliers  who 
can  control  production  and  prices.  Saudi 
Arabia  for  example.  Is  producing  2  million 
barrels  a  day  less  oil  now  than  In  September 
yet  It  Is  deriving  greater  revenues  and  prof- 
Its  on  the  6  million  barrels  a  day  they  now 
produce  than  they  did  on  the  8  million  bar- 
rels a  day  produced  In  September.  No  oil- 
producing  state.  Arab  or  non-Arab,  is  going 
to  sell  a  lot  of  oil  for  a  little  money  when 
It  can  sell  a  little  oil  for  a  lot  of  money. 
Por  economic  reasons  alone  we  must  look 
forward  to  severe  limits  on  Arab  oil  pro- 
duction: the  oU  they  possess  U  simply  worth 
more  to  them  in  the  ground  than  the  dol- 
lars for  which  they  sell  It  are  worth  In  the 
bank — where  those  dollars  are  eroded  by  In- 
flation and  subject  to  devaluation. 

Nothing  that  we  can  do  in  the  Middle  East 
will  change  this  fundamental  fact  of  eco- 
nomics. In  1972  Saudi  ArabU  earned  ap- 
proximately t3  blUlon  from  the  sale  of  oU 
of  which  It  was  able  to  spend  only  CI  8 
billion  The  capacity  of  the  sparsely  pop'.;- 
lated  oil-rich  Arab  states  to  absorb  capital 
Is  severely  limited  and  no  one  knows  that 
better  than  Sheik  Yamanl's  economic  ad- 
visers The  vast  accumulations  of  capital  that 
would  reexilt  from  greatly  Increased  Arab  oil 
production  would  be  gobbled  up  by  their 
have-not  neighbors,  by  Egypt.  Syria,  and 
the  Palestinians,  and  no  one  knows  thst 
better  than  King  Palsal's  political  advisers 
In  today's  market,  a  prudent  Investor  would 
be  well  advised  to  take  dollars  in  the  bank 
and  Invest  them  In  oU  In  the  ground;  yet  our 
diplomats  nurture  the  baseless  hope  that 
we  will  persuade  Arab  Investors  to  take  oU 
frooi  the  ground  and  invest  it  in  dollars  in 
the  bank  That  is  simply  not  going  to  hap- 
pen  no   cnatter   what   we   do   :n   the   Middle 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42439 


East  The  oil  weapon  is  a  paper  tiger,  and 
tiiere  Ls  no  way  that  you  are  going  to  be 
able   lo  put  that  tiger  In  your  tank. 

We  would  be  wrong  to  yield  to  blackmail 
even  If  doing  sir;  w<)Uld  turn  the  tap  on  a 
pipeline  of  cheap  and  plentiful  oil  from 
the  Middle  East  To  submit  to  blackmail 
In  the  expectation  of  Illusory  benefits  would 
t>e  the  height  of  folly  When  I  say  that  we 
will  not  yield  U,  blackmail  I  am  confident 
that  I  am  speaking  for  the  American  people. 

And  I  k:.ow  equally  that  I  am  speaking 
for  all  Americans  In  urging  that.  In  our 
effort*  to  achieve  a  settlement,  we  seek  a 
genuine  and  lasting  peace — «  peace  nego- 
tiated by  the  parties  to  the  conflict — that 
they  themselves  ran  nurture  and  defend. 


PrenUss  Browii.  Ln  all  of  this  he  was  sup- 
ported by  a  wurm.  wonderful  family.  To 
th«n.  for  all  of  m>-  family,  I  speak  our 
love  and  sympathy 


PRENTISS  M    BROWN 

Mr  H.^RT  Mr  President.  It  !.<;  my  un- 
happy ta&k  to  Inform  the  Senate  of  the 
death  of  PrentLss  Marsh  Brown,  U.S. 
Senator  from  Mlchlean.  m  the  years 
1936  to  1943  Senator  Brown  died  this 
morning  In  St    Ignace,  Mich 

Senator  Brown's  puWlc  service  spanned 
60  years,  a  lengthy  career  Indeed. 
but  his  contributions  to  Michigan  and 
the  Nation  wnli  endure  for  many  more 
decades.  His  career  began  as  prosecuting 
attorney  of  Mackinac  County  In  1914  and 
continued  until  his  death  when  he  waa 
still  an  HTtive  member  of  the  Mackinac 
Bridge  .Authority 

As  a  banker  as  well  as  lawyer,  he 
brought  hl.s  knowledge  >A  banking  to 
bear  In  his  years  of  public  service.  Elected 
to  the  House  of  Represenla'uves  In  1932. 
he  was  named  to  the  Hou-nc  Banking 
and  Currency  Committee  and  was  Instru- 
mental in  drafting  the  legislation  for 
the  Federal  Deposit  Insurance  Corpora- 
tion. 

After  his  service  In  Congress,  Senator 
Brown  was  the  second  administrator  of 
the  Office  of  Price  Admini.'?tralion  by  ap- 
pointment of  President  Franklin  Roose- 
velt He  later  returned  to  State  K-ovem- 
ment  to  serve  on  Gov  G  Mermen  Wil- 
liams' advisory  committee  on  develop- 
ing a  transportation  link  between  Mich- 
igan's upper  and  lower  jxninsulas  The 
committee  determined  that  a  bridge 
would  be  the  most  feasible  link  Prenti.ss 
Brown  then  led  the  drafting  of  legisla- 
tion to  con.st.'-uct  the  bridge  was  influen- 
tial in  Its  pa.ssage  and  was  instrumental 
in  the  sale  of  bonds  to  finance  the 
project 

To  sense  the  impact  of  this  contribu- 
tion alone,  one  must  be  a  Michigan 
resident  or  at  lea';t  have  a  sense  of  the 
gerwraphy  and  climal*  of  the  State 

The  Mackinac  Bridge  is  nearly  5  miles 
long.  It  spans  the  Straits  of  Mackinac. 
Unking  Michigar.''^  twT)  peninsulas  Con- 
struction, begun  in  1954.  «-a<:  completed 
3  years  later,  at  a  cost  of  $99  million  It 
was  a  massive,  historic  public  works  im- 
dertaking  which  provides  the  \1tal  link 
brtween  the  two  separate  parts  of  the 
3«»t.e  The  continued  importance  of  that 
bridge  will  be  a  magnificent  memorial  to 
Prentiss  Brown 

Pew  men  of  anv  f^eneratlon  more 
clenrly  have  shown  bv  selfless  public 
service  their  love  for  their  State  and  de- 
votion to  their  country  And  over  those 
many  years  never  was  there  question  of 
his  integrity  Decency  and  honesty  and 
civility  marked  every  word  and  act  of 
CXIX 2673— Part  33 


PRESIDENTIAL  RESPONSIBILITY 

Mr.  MOSS  Mr.  President,  few  times 
in  our  lilstory  has  the  cry  for  txilitical 
and  moral  leadership  been  greater.  Yet. 
unfortunately,  there  Is  no  indication  that 
this  cry  for  leadership  is  being  heard  a* 
the  White  House.  Rather,  only  frusji^- 
tion.  rhetoric,  and  actions  calcula>^  to 
lAisIead  are  apparent  It  is  little  .wonder 
that  most  Americans  are  jronfused 
angry,  and  just  plaifl_led„.i*p^ith  Gov- 
ernment and  goVeriiment  oflScials 

Mr  President.  I  do  not  believe  that 
Americans  are  so  hardened  that  certain 
mistakes,  honestly  made,  would  go  unfor- 
given  But  Americans  want  to  be  pro- 
vided with  the  truth.  And.  once  given  the 
truth.  Americans  are  mature  enough  to 
handle  mo.st  adversities  which  may  con- 
front them 

However,  the  truth  has  not  been  given, 
except  in  grudging  piecemeal  fashion,  by 
this  administration  on  Watergate  and 
everything  for  which  Watergate  stands. 
Nothing  has  been  done  by  this  admin- 
istration to  prevent  innuendo,  misunder- 
standing, and  mistrust  of  Government. 
-Vs  a  re.sult,  confidence  in  Government 
has  reached  an  unacceptable  low  Ameri- 
cans are  bewildered  over  the  dlsp^ty 
between  the  words  and  actions  of  Presi- 
dent Nixon  The  President  says  he  ac- 
cepts responsibility  for  Watergate,  but 
his  excuses  and  denials  negate  his  words 
In  essence,  he  blame.s  others  for  "mis- 
takes of  judgment"  But  real  responsi- 
bility can  be  placed  on  no  other  individ- 
ual. And  Americans  realize  this. 

On  December  15.  1973.  the  Washington 
Post  carried  an  editorial  by  Alfred 
Friendly  entitled  'Watergate  Rhetoric 
Versus  Responsibility"  Because  of  the 
thought-provoking  nature  of  this  edi- 
torial, I  ask  unanimous  consent  that  it 
be  printed  In  the  Rtcord. 

There  being  no  objection,  the  editorial 
was  ordered  to  be  printed  in  the  Record, 
as  follows  : 

Watkhcate:  Rhstoric  Vn.sr8  Rxsponsibiutt 
(By  Alfred  Friendly) 
President  Nixon  hae  assured  us  In  almost 
every  public  statement  since  the  unhappy 
event  that  although  he  is  blamelesg  for  any 
of  the  Watergate  sins,  he  nevertheless  as- 
sumes responslbUity  for  them  That  Ls  sure- 
ly the  manly  not  to  say  noble,  thing  to  do, 
and  in  the  best  moral  tradlUon  It  touches 
the  fine  feelings  of  all  of  us  who  honor  the 
forthright  acknowledgment  of  the  varsity 
captain  after  a  losing  game  What  is  more 
conducive  to  our  forglveneea  than  the  hum- 
ble bow  of  the  leader  who  has  been  traduced ■> 
But  nagging  questions  remain  Just  how 
doea  Mr  Nuon  discharge  the  responslbUKy 
he  has  so  selflessly  and  sturdily  assumed'' 
Does  he  pay  uhe  fines  of  the  corporations 
which  Ulegally  contributed  to  his  campaign'^ 
Is  he  going  to  serve  the  Jail  sentences  of 
those  'overzealous"  subordinates— for  whom 
he  says  he  is  responsible — who.  in  an  excess 
of  loyalty,  had  momentary  men^,  rv  lapses 
about  what  the  law  was''  Does  the  idea  cross 
his  mmd  that  the  head  of  an  orgai-.laatlon 
the  summary  of  whose  ofTenses  against  the 
law  filled  six  frugally  written  columns  in  The 
Washington  Post  the  other  day  might  shoul- 


der Just  enotigh  responsibility  to  get  the  hell 
out? 

Certainly  not  After  ail  whatever  un- 
fortunate things  were  done  were  in  his 
words,  just  "mistakes  "  As  far  as  I  am  able 
to  research  the  matter,  the  characterization 
of  them  as  crimes  or  felonies  has  never 
crossed  his  lips  And  his  two  first  Ueutenante. 
who  presumably  presided  over  the  orgaxilza- 
tlon  If  he  himself  did  not,  remain  in  his 
mind  the  finest  public  servants  he  has  ever 
known  iBut,  if  so,  was  it  not  sinful  of  him 
y  and  a  disservice  to  the  public,  to  let  them 
resign  ■'> 

No  It  is  sufflclent  for  Mr.  Ntxon  simply  to 
say  he  bears  the  responsibility.  Nothing  much 
else  Is  needed.  It  is  given  to  us  to  have  salva- 
tion by  Incantation,  to  achieve  the  state  of 
grace  by  rhetoric  It  Is  enough  to  utter  the 
routine  words  that  render  deeds  a  superfluity. 
To  be  sure,  the  weight  of  earlier  theological 
thinking  is  to  the  contrary,  but  no  matter: 
We  now  live  In  the  Age  of  BUJy  Graham, 
when  mouthing  substitutes  for  doing 

But  does  anyone  really  believe  that  the 
President,  if  himself  guUtleas  of  any  of  the 
several  dozen  episodes  that  go  under  the 
rubric  of  Watergate,  has  in  fact  accepted  any 
responsibility  whatever  in  any  operative 
sense  of  the  word?  There  has  not  been  one 
word  from  him  of  culpability  for  gathering 
about  him  the  set  of  men  who  made  the 
over-zealous  mistakes  men  whom,  as  some- 
one has  said  before  me.  It  would  l>e  fiattery 
to  term  mediocre 

It  can  be  argued  that  all  Presidents  have 
done  exactly  as  Mr  Nlion.  profeasing  to  ac- 
cept accountability  for  errors  made  by  men 
of  their  administrations  but  themselvee  tm- 
dergoing  no  penalty.  But  that  Is  not  quite 
true.  Many  Presidents  have  pleaded  guilty 
when  they  were,  confessing  their  own  role 
In  ma:-,  mis-  or  non-feasar.ce.  and  bearing 
some  part  of  the  penalty  (Not  FDR  the  only 
mistake  he  ever  admitted  having  made  was 
moving  Thanksgiving  to  the  third  "niureday 
in  November  one  year  at  the  behest  of  retail 
merchants.  But  tran^arent  cynicism  Is  lees 
offensive  than  sanctimoniousness 

The  Bay  of  Pigs  Is  a  case  In  point  Kennedy 
took  the  blame  on  his  own  sl-.ouiders  for  a 
piece  of  tragically  bad  Judgment  by  htm 
and  faced  up  to  the  personal  hum'Jlatlon. 
including  having  to  authorize  ransom  for  the 
captives  The  evide.^ce  Is  overwhelming  that 
when  he  said  the  fault  had  been  his  he 
meant  It  and  felt  It  and  the  people  realized 
that  he  did  In  short,  he  came  clean  Mr. 
Nixon  has  not.  ajid  it  would  acem  that  the 
people  realize  that  too 

One  can  sympathize  with  the  plaint  made 
by  E  Howard  Hunt,  high  school-primitive 
though  It  was  He  thought  he  had  ordere 
from  above  and  was  entitled  to  expect  that 
the  man  who  now  says  he  accepts  reeponsi- 
bUlty  for  Watergate  would  also  be  subject  to 
retribution  But  Mr  Nixon  is  in  the  White 
House  1  when  not  otherwhere  i  and  the  feUow 
in  the  pokey  Is  Mr,  Hunt. 


U.S.     CONTRIBUTIONS     TO     WORLD 
POOD  PROGRAM  REDUCED 

Mr.  HUMPHREY  Mr  President,  one 
one  of  the  most  serious  effects  of  the 
far-reaching  food  and  energy  crisis  is 
on  food  assistance  programs  through- 
out the  world  Increased  world  demand 
for  commodities,  together  with  rapidly 
rising  prices,  has  limited  the  amount  of 
food  avEUJable  for  such  program^ 

The  United  States  has  tradiUonally 
participated  in  food  assistance  programs, 
both  on  a  bilateral  basis  and  miLU- 
lateraily  through  the  World  Ft>od  Pro- 
gram of  the  Uiiited  Nations  Ln  recent 
years,  particularly  during  1973,  the 
availability  of   food   and  fiiianclng  for 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


us.  food  assistance  activities  has 
diminished  greatly.  Successive  reduc- 
tions by  the  administration  of  funding 
for  the  Public  Law  480  Pood  for  Peace 
Program  over  the  past  3  years,  together 
with  a  diminishing  quantity  of  food 
made  available  for  Public  Law  480.  have 
severely  curtailed  these  essential  devel- 
opment and  humanitarian  programs. 

The  effects  of  these  limitations  on  the 
World  Pood  Program — which  the  United 
States  supports  through  Public  Law 
480 — have  been  particularly  severe.  This 
multilateral  food  assistance  activity, 
which  the  United  States  helped  to  orga- 
nize nearly  11  years  ago.  has  experienced 
a  40-percent  reduction  in  its  operations. 
A  recent  edition  of  the  World  Pood  Pro- 
gramme News  describes  this  problem  In 
detail  and  notes  that  the  program  has 
had  to  completely  reevaluate  its  prlor- 
lUes. 

Mr.  President.  I  consider  the  World 
Pood  Program  to  be  one  of  the  better 
multilateral  activities  in  which  the 
United  States  participates.  During  the 
past  10  years  the  program  has  improved 
Its  management  and  developed  new  and 
essentia:  project  activities.  Purther.  its 
success  has  encouraged  a  greater  par- 
ticlp-atlon  by  a  number  of  countries 
other  than  the  United  States.  As  a  re- 
sult, the  percentage  of  US  contribu- 
tions to  the  World  Food  Program  com- 
pared to  total  contributions  from  all 
countries  has  dropped  considerably.  We 
cannot  now  allow  this  program,  which 
we  were  so  Uistrumental  in  estabUshlng. 
and  which  Is  now  meeting  essential  de- 
velopment and  humamtanan  needs 
throughout  the  world,  to  fall  by  the  way- 
side a5  a  result  of  the  complexities  of 
the  world  food  supply  situation. 

I  beUeve  that  the  article  from  the 
World  Pood  Programme  News  clearly 
highlights  this  cnUcal  problem,  and  I 
request  unanimous  consent  that  it  be 
printed  In  the  Record. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record 
as  follows: 

C«»»L8    SHOBTAG*    41CD    InTUATIOI*    RXDt7C» 

PBockAMMX's  Rrsocicrs 
The  World  Pood  Programme  is  undergoing 
tt8  moet  serious  crtels  since  It  became  opera- 
tional nearly  1 1  years  ago. 

A  combination  of  Inflation  and  rocketing 
of  cereal  prices— particularly  wheat— ha«  so 
reduced  the  purchasing  power  of  donors- 
pledges  that  an  anticipated  1.2  mUllon  tons 
of  food  aid  which  the  Programme  expected  to 
distribute  In  the  blennlum  ending  31  Decem- 
ber 1974  have  shrunk  by  more  than  40  per- 
cent. *^ 

Current  eetlmatea  are  that  even  if  all  do- 
nors are  In  a  position  to  fulflU  their  pledges 
and  some  75.000  tons  of  expensive  wheat  are 
substituted  by  maize,  sorghum  and  other  leaa 
cosUy  products,  little  more  than  860.000  tons 
of  commodities  will  be  avaUable 

The  first  steps  to  meet  the  situation  were 
taken  in  the  week  beginning  30  August  when 
Resident  RepresenUtlvee  of  the  United  Na- 
tions  Development  Programme  (UNDP)  were 
advised  by  cable  not  to  sign  any  new  agree- 
ments for  WFP  projects  or  plans  of  opera- 
ttons  At  the  same  time  all  new  shipping  in- 
structions, with  the  exception  of  thoee  for 
emergency  suppiiea.  were  stopped.  These  tem- 
porary measures  allowed  the  executive  Direc- 
tor. Dr.  Pranclaoo  Aquino,  and  his  etaa  time 
to  survey  the  Programme's  needs  and  proba- 


ble emergency  commitments  and  to  rertew 
each  of  Its  projects  throughout  tlM  world. 
"We  have  now  drawn  up  a  number  of  alter- 
native ways  of  rationing  the  Programme's  re- 
sources and  established  prtorltlee  for  the  re- 
mainder of  the  blennlum."  said  Dr.  Aqumo. 
■*Theee  criteria  were  presented  to  the  3fith 
Session  of  the  Intergovernmental  Committee, 
which  approved  them." 

The  reason  for  the  wheat  shortage  and  the 
almost  150  percent  increase  in  prices  Ln  the 
last  year  is  that  world  carryover  stocks,  which 
were  between  60  and  Wmllllon  tons  In  the 
years  of  plenty,  are  now  down  to  27  million 
tons.  The  faUure  of  lu  1971/72  crop  caused 
the  T3SSR.  to  buy  19  million  tons  of  wheat 
from  North  America  last  year  in  addition 
to  9  million  tons  of  coarse  grains.  Other  re- 
cent factors  which  have  reduced  grain  sup- 
plies Include  the  revised  downward  estimates 
of  United  Suies  wheat,  malae  and  soybean 
crops,  and  disastrous  floods  In  Pakistan  which 
Inundated  between  3  and  4  million  hectares 
and  destroyed  some  285,000  hectares  of  crop- 
land. *^ 
Assessments  by  FAO  and  estimates  by  the 
International  Wheat  CouncU  both  forecast 
Import  requirements  of  wheat  for  1973  74  at 
6fl  mUllon  tons  against  export  avallabUltles 
of  only  57  mlUlon  tons — a  shortfall  of  9  mU- 
llon tons. 

In  a  cable  Inviting  major  wheat  exporting 
countries  to  a  meeting  to  discuss  the  world 
cereaU  supply  situation,  the  PAO  Director- 
General,  Dr.  Addeke  H.  Boerma.  has  ap- 
pealed to  them  to  make  every  effort  to  con- 
tinue food  aid  programmes  "at  not  less  than 
last  years  level  In  terms  of  physical  quan- 
Utles." 

Dr.  Aquino.  In  an  explanatory  letter  to 
UNDP  Resident  Representatives  following 
his  cabled  Instructions,  says  that  while  the 
outlook  for  the  next  few  months  Is  bleak,  he 
Is  confident  that  the  current  crisis  wUl  have 
been  largely  overcome  by  the  end  of  1974 

"I  consider  It  of  the  greatest  importance 
that,  meanwhile,  the  Programme  demonstrate 
Its  capacity,  with  the  cooperation  and  assist- 
ance of  donor  and  recipient  countries,  to  suc- 
cessfully negotiate  these  current  dlfflciiltles. 
minimizing  as  far  as  possible  any  human  dis- 
tress and  dislocation  of  government  pro- 
gramming." he  added 


THE  LEGISLATIVE  BUDGET  PROC- 
ESS—THE ROAD  TO  A  BUDGET 
DEFICIT 

Mr  PERCY.  Mr.  President,  the  Federal 
Government  is  now  6  months  into  its 
fiscal  year  with  the  two  largest  appro- 
priation bills,  plus  a  fiscal  1974  supple- 
mental bill,  yet  to  be  enacted  Into  law. 

Without  taking  Into  account  spending 
bills  which  have  passed  one  or  the  other 
House  but  have  yet  to  be  enacted.  Con- 
gress is  now  spending  at  a  rate  $620  mil- 
lion in  excess  of  projected  revenues  for 
this  fiscal  year.  Backdoor  appropriaUons 
and  mandatory  legislative  spending  bills 
now  pending  could  easily  add  another  $2 
to  $3  billion  to  this  overrun  before  the 
end  of  the  fiscal  year.  This  situation 
could  not  present  a  stronger  case  for  the 
vital  need  for  congressional  budget 
reform. 

CTTHBEWT    BtrOGITT    PBOJICTIONS 

Revenues  for  fiscal  1974  are  now  esti- 
mated at  $270  billion  The  increase  in  ex- 
pected revenues  since  January  has  al- 
lowed the  President  to  revise  his  unified 
budget  projection  down  from  a  deficit  of 
$12  7  billion  to  a  deficit  of  $0.9  billion  In 
order  to  fully  balance  its  budget  requests, 
the  administration  ha«  Indicated  that  Jt 
will  see  $0.9  billion  in  Government  a&set« 


Such  a  sale  would  also  balance  Congrejvs' 
current  but  not  projected  spending  rate 
At  this  time,  imenacted  appropriation 
bills  include.  Department  of  Defense, 
with  a  Senate-passed  spending  appro- 
prlaUon  of  $3.27  billion  under  the  budget 
request ;  foreign  assistance,  with  Senate- 
pa.ssed  ouUays  of  over  $130  million  un- 
der the  President's  request;  and  the  first 
fiscal  year  1974  supplemental  with  Sen- 
ate-passed spending  of  approximately 
$100  million  over  the  President's  request. 
Chairman  Mahon  of  the  House  Appro- 
priations Committee  has  estimated  that 
congressional  action  on  appropriations 
bills  will,  in  total,  match  the  President's 
requests.  Based  on  Senate  action  to  date 
I  predict  a  smaller  enacted  outlay  on  re- 
quested appropriations  bills  than  that  re- 
quested by  the  President. 

My  main  concern,  one  which  I  know 
Is  shared  by  many  of  my  colleagues.  Is 
the  uiibudgeted  .spending  which  arises 
through  backdoor  appropriaUons  and 
mandatory  spending  authorizations  To 
date.  Senate  action  on  such  measures 
cails  for  spending  $4  billion  in  excess  of 
the  $270  billion  In  expected  revenues 
Mandatory  spending  authorizations  ac- 
count for  aU  of  the  $620  million  deficit 
already  enacted  and  wlU  lead  to  more 
than  aU  of  the  projected  spending  deficit 
of  $2  to  $3  billion. 

In  my  view,  and  that  of  the  respected 
economists  with  whom  I  have  consulted 
recent  economic  indicators  caU  for  a" 
balanced  spending  policy  for  the  remain- 
der of  this  fiscal  year. 

Obviously  the  effectiveness  of  the  ad- 
"^/"'stration's  fuel  allocation  program 
WUl  have  a  primary  bearing  on  the  un- 
employment rate  and  economic  growth 
m  the  months  ahead.  However,  whatever 
fiscal  policy  proves  to  be  wisest,  Govern- 
ment spending  should  Tcmaln  available 
as  an  employable  economic  tool  If  we 
run  up  a  large  spending  deficit  without 
regard  to  e.xi.sting  and  predicted  eco- 
nomic conditions,  we  lose  fiscal  policy  as 
a  potential  stabilizer. 

coN<axs8  LACK  OF  trrxcnvx  BUBOrr  coirr»oL 
If  Congress  busts  the  budget  It  will 
most  likely,  be  through  the  backdoor  and 
mandatory-  route,  on  measures  over 
which  the  AppropriaUons  Committees 
have  no  control  and  through  a  hap- 
hazard procedure  which  allows  neither 
relating  nor  weighing  the  desirability  or 
the  urgency  of  one  program  against 
others. 

A  look  at  the  previous  fiscal  years  for 
which  figures  are  available  shows  that 
Congress  has  consistently  voted  to  cut 
PresidenUal  appropriaUon  requests  and 
just  as  consistently  has  voted  to  increase 
Federal  spending  through  the  backdoor 
and  mandatory  authorization  route  Al- 
though this  haphazard  budget  process 
has  led  to  spending  surpluses  in  some 
years,  only  in  fiscal  year  1969  was  the 
congressionally  enacted  surplus  sufflclent 
to  bring  PresldentiaUy  requested  spend- 
ing in  line  with  Federal  revenues. 

I  ask  unanimous  consent  that  a  table 
including  these  figures  for  fiscal  years 
1969  through  1973  be  printed  at  this 
point  in  the  Rxcord. 

There  being  no  objecUon.   the  table 
was  ordered  to  be  printed  in  the  Rkcord 
as  follows: 


December  19,  197  S 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42441 


[FiguTM  in  mUHoaJ 


ConfrvsMonal  ictioa  on 

PrnidMt'i  budfet 

oMtliy  reqaettt 


riscal 
yur 


■nd 

ApofO-       manda- 

priatioiu  tory 


Total  I 


Rcsdting 
unifiad  daAcit 
or  turpi  u! 
(Presidwitiai 
raqiMtts  plus 
conirassioiiai 
adioa) 


1969 -4,550 

1970 -2,869 

1971 -657 

1972 -1.059 

1973 -1.626 


+201 
+  1,475 
-M,  164 
+3.  714 
+7,860 


-4. 274 

-6 

+3,287 

-678 

+6,127 


+3.236 

-2.846 

-23.033 

-23,227 

-14,301 


'  Total  lnclud«3  incraased  or  dscrsassd  outlays  due  to  insctioft 
on  Prajidantial  requests. 

Mr.  PERCY.  At  this  time.  Congzees  has 
effective  control  over  only  abotlt  29  per- 
cent of  budget  outlays  estimated  for  fis- 
cal 1974.  Backdoor  spending  authorlza- 
tiorL-  such  as  the  Federal-aid  highway 
program,  and  mandatory  spending  au- 
tlionz^itions,  suih  as  social  security  and 
veterans  assistance  programs,  account 
for  the  other  70  percent. 

Only  the  AppropriaUons  Committees 
make  an  effort  to  maintiiin  an  overview 
of  the  entire  budget,  and  they  effectively 
control  only  29  percent  of  it  Wiiile  other 
congressional  committees  and  .'subcom- 
mittees study  budf^ei  policy  and  trends, 
these  studies  are  not  int^prated  Into  a 
coherent  decislomnaklug  process.  Con- 
gress has  no  means  to  relate  its  spend- 
ing or  revenue  actions  to  national  needs, 
and  it  cedes  the  formulation  of  fiscal  pol- 
icy to  the  President. 

Shortly  after  proposing  congressional 
budget  reform  legislation  early  this  year, 
I  established  mj-  own  "In-House"  budget 
to  guide  my  votes  and  proposals  for 
spending  during  fiscal  year  1974  and 
pledged  to  support  a  balanced  fiscal  year 
1974  budget,  thus  formalizing  a  proce- 
dure that  I  have  informally  adhered  to 
since  coming  to  the  Senate.  The  fiscal 
year  1974  plan  included  both  additions 
to  and  deletions  from  the  President's  ap- 
propriations requests.  It  also  Included 
new  authorizations  I  believed  necessary 
and  intended  to  support  or  propose.  Un- 
expected national  needs,  changing  eco- 
nomic conditions,  and  Increased  revenue 
proJecUcais  have  of  course  called  for  con- 
tinuing revisions  of  those  spending  poli- 
cies originally  budgeted. 

Having  compared  my  owm  spending 
votes  to  date  with  Congress  total,  and 
taking  Into  account  the  inability  to  pre- 
cisely pinpoint  the  outlay  co."^!  of  all  pro- 
posed programs,  I  find  that  I  have  suf>- 
ported  "spending"  at  the  rate  of  approxi- 
mately $270.5  billion  during  fi.scal  1974. 
This  figure  Is  $1.3  bUlion  under  the  rec- 
ord of  the  Senate  as  a  whole,  but  $500 
million  over  expected  revenuee.  As  soon 
as  a  House-passed  tax  bill  Is  made  the 
pending  business  of  the  Senate.  I  will 
offer  a  revenue  raising  amendment  to 
balance  m>'  budget,  an  amendment  that 
Is  cosponsored  by  the  distinguished 
chairman  of  the  Finance  Committee. 
Senator  Long. 

CONORXBS  a»ABIl,ITT  TO  SST  AND  KKOROES 

NATIONAL  paiORrnxs 
Congress  deficit  rate  of  spending  has 
resulted  almost  totally  from  our  Inabil- 
ity to  set  and  reorder  national  prioriUes 
In  a  budget-conscious  manner.  It  Is  the 
fault  of  no  Individual  Member;  we  as  a 


whole  have  failed  to  InsUtute  a  coherent 
.'System. 

Congressional  options  1::  the  face  of 
unexpected  changes  in  the  economy  dur- 
ing tiie  past  year  provide  a  perfect  ex- 
ample of  how  our  nonsystem  fails  us  and 
the  NaUon. 

The  President's  January  budget  esti- 
mates called  for  an  actual  spending 
dt  ficit  of  $12.7  billion.  At  that  time,  the 
administration  asserted  that  a  still  high 
rate  of  unemployment  and  seemingly 
controlled  inflation  justified  this  rate 
of  deficit  spending.  However,  by  August, 
the  cost-of-living  index  had  risen  by  10 
percent  and  the  price  ol  food  has  sky- 
rocketed by  nearly  28  percent. 

Faced  with  this  situation,  the  Congress 
could  not  Ignore  the  pUght  of  those  who 
depend  on  Federal  assistance  for  the 
basic  necessities  of  living. 

The  92d  Congress  had  scheduled  a 
social  security  cost-of-living  benefit  in- 
crease for  January  of  1975,  but  I,  along 
with  most  of  the  Senate,  beUeved  that 
it  would  be  unconscionable  not  to  provide 
an  Interim  benefit  increase  to  this  fixed- 
income  group.  Increases  In  the  cost  of 
food  had  also  made  It  nearly  Impossible 
for  many  school  districts  to  continue 
their  lunch  programs  without  increased 
Federal  support,  and  a  poor  family's 
allotment  of  food  stamps  was  no  longer 
sufficient  to  provide  even  a  minimum  of 
its  nutritional  needs. 

The  total  fiscal  1974  cost  of  Senate 
spending  increases  in  these  three  pro- 
grams was  over  $2.4  billion. 

I  believed  the.se  additional  funds  were 
absolutely  necessary  to  place  a  floor  on 
the  pit  of  human  disaster.  At  the  same 
time,  responsible  fiscal  policy  called  for 
a  balancing  of  Federal  expenditures  and 
revenues.  However,  because  Congress 
does  not  have  a  budget  reordering  sys- 
tem, spending  on  these  unbudgeted 
needs,  without  the  abiUty  to  cut  back 
previously  enacted  spending,  will  trans- 
late directlj-  into  a  budget  deficit. 

CONGRBSSIONAL    BLDGFT    REFORM 

As  I  have  stated  on  countless  occa- 
sions, the  only  answer  to  Congress 
budgetary  dilemma  is  comprehensive  re- 
lorm  of  our  budgetary  system  such  a*  is 
proposed  In  S.  1541.  This  legislation,  on 
which  Senator  E^rvin,  I,  and  other  mem- 
bers of  the  Senate  Government  Opera- 
tions Committee  have  worked  for  manj- 
months,  has  been  referred  to  the  Senate 
Rules  Committee  and  wUl  be  ready  for 
full  Senate  action  by  February-  1.  1974. 

Passage  of  this  legislation  is  one  of 
the  most  Important  contributions  the 
93d  Congress  can  make  to  the  American 
people,  and  will  be  the  roost  significant 
congressional  reform  of  this  century.  It 
will  allow  for  the  first  time  a  coherent 
congressional  approach  to  all  Federal 
spending.  It  will  provide  a  means  to 
meet  unforeseen  needs  without  upsetting 
Federal  fiscal  policy.  It  will  allow  Con- 
gress to  become  an  equal  partner  with 
the  Executive  In  setting  fiscal  policy  and 
spending  priorities. 

If  S.  1541  were  in  effect  at  this  time, 
the  House  and  Senate  appropriations 
committees  would  have  control  over  vir- 
tually all  Federal  spending.  They  would 
be  able  to  recommend  spending  cuts  to 
offset  unforeseen  spending  needs  In  a 


totAi  budget  context.  If  the  full  Senate 
or  H.iuse  ^vere  unable  to  agree  on  their 
recomniendaUons.  the  new  standing 
Committee  on  the  Budget,  backed  by  the 
f  x;3€ruse  of  the  Congressional  Office  of 
t:.e  Budget,  would  be  required  to  recom- 
mend appropriate  revenue  and  debt 
measures  to  maintain  proper  fiscal 
poUcy. 

RECAPTT-RINO    THE   nSCAL    :97*   BtTDGrT 

Congress  has  few  options  for  recaptur- 
ing control  of  the  Federal  oud.cel  t-his 
fiscal  year.  I  do.  however,  belie-.e  we 
should  carefully  exarrJne  those  options 
that  are  a\  aliable  i-o  ■j.';  and  make  the  ef- 
fort. Although  I  have  kept  mj-  o-rti  ple<ibe 
to  sup;x)n  a  balanced  Federal  fiscal  year 
1974  budget,  it  would  be  Irresponsible  for 
me  not  to  take  cog:iizance  of  tiie  iact 
tliat  new  mimediate  spending  needs  may 
arise  within  the  next  6  months. 

First,  I  believe  a  reexamination  by  the 
Appropriation  and  Legislative  Commit- 
tees of  the  Congress  and  -pending  legis- 
lation enacted  to  date  would  reveal  Items 
of  lesser  priority  Liiat  could  be  cut  or  re- 
programed  for  next  year.  Several  rev- 
enue raisin.c:  measures  Diat  have  aiready 
been  recommended  could  be  put  mto  ef- 
fect Ln  calendar  1974. 

Because  no  one  committee  has  juris- 
diction over  all  Federal  spending,  this 
would  be  a  difficult  task.  However,  if  each 
committee  would  act  on  its  own  motirai, 
the  full  Senate  could  attempt  to  Join 
these  several  recommendauons  Lite  a  co- 
herent spending  adj'ostmient  package. 

The  second,  and  in  my  view  least 
desirable,  option  open  to  Congress  this 
year  is  an  across-the-board  spending 
rescission. 

A  4  percent  pro  rata  cut  in  spending 
on  those  items  in  the  fiscal  1974  budget 
over  whJch  Congress  has  effective  con- 
trol would  save  approxLmately  $3  billion. 
A  reduction  in  spendLnc  of  this  magni- 
tude will  be  neces,  ar-.-  If  Congress  con- 
tinues on  Its  present  course. 

This  procedure  lias  me  undesirable  ef- 
fect of  falling  only  on  the  small  control- 
lable portion  of  the  budget  and  m.akes  no 
differentiation  between  m.ar^nnally  and 
fully  funded  programs.  Urider  the  pro- 
visions of  S,  1541,  this  procedure  L^  pre- 
sided for  only  as  a  last  ra-ort  Hovsc/er, 
if  Congress  cannot  balance  tne  oudget  in 
some  other  manner,  pro  rata  cuts  are  our 
only  remaining  recourse. 

If  we  do  not  act.  Coneress  will  once 
again  have  abdicated  budget  control  to 
the  executive  branch  and  will  be  hard- 
pressed  to  decry  subsequent  impound- 
ment of  congressionally  appropriated 
funds. 


THE  ENERGY  CRISIS  AND  FOOD 
PRODUCTTON 

Mr  FI:TBRIGHT  Mr  President,  I 
have  received  a  ver>-  interesting  letter, 
dated  E>ecember  6.  1973,  from  Mr  Roe- 
well  Garst  of  Garst  &  Thomas  Hvbrid 
Corn  Co  .  Coon  Rapids  Iowa  Mr  Garsts 
commenU:  are  very  relevant  to  this  foun- 
tr>''s  mo>t  pre.S'-ing  problem,  and  are 
worthy.  I  believe,  of  the  attention  of  my 
colleagues.  Mr.  President.  I  ask  unani- 
mous consent,  that  Mr  Garsts  letter  be 
printed  In  the  Record 

There  being  no  objection,  the  letter 


42442 


CONGRESSIONAL  RiiCORD  —  SEN  A 1  £ 


was  ordered  to  be  printed  In  the  Ricoro, 
as  follows: 

Oabst  Sc  Tbomas  Hybrid  Corn  Co.. 
Coon  Raptdj,  Iowa,  December  6, 1973. 

S«a»tOr  J.  W.  P17I.BRICHT. 

U^.  Senate, 
Washington.  DC. 

Dkas  Sur&TOR  PT7i,3szcaT:  The  "Enei^y 
Crlals"  worries  me  more  th&n  almost  anyone 
because  I  know  more  about  food  production 
tban  all  but  a  very  few 

All  of  the  publicity  about  the  ener^ry  crlala 
has  been  about  the  ahortage  of  autoinobUe 
and  truck  fuel  or  about  the  fuel  to  keep  both 
houses  or  factories  and  schools  or  hospitals 
warm,  or  our  railroads  running  or  our  oU 
fueled  electric  plants  operating. 

There  has  been  almost  no  mention  of  the 
additional  fuel— the  extra  fuel  needed  to 
farm  the  extra  50  mUllon  acres  that  the  UJ3. 
Department  of  AgrtcvUtiire  Is  putting  back 
into  producuon  because  of  the  world  food 
shortage. 

It  Is  true  that  there  have  been  broad  state- 
ments that  "Of  course,  the  needs  of  agricul- 
ture will  be  taken  care  of."  But.  I  have  seen 
no  figures  on  how  much  additional  tractor 
fuel  It  wUl  take  in  1974  over  1973  to  plow, 
disc,  plant,  cvUUvate.  harvest  and  In  the  case 
of  com  dry  the  extra  production. 

Kor  have  I  seen  any  Ogures  about  bow 
much  more  fertlllaer  will  be  needed  to  main- 
tain our  present  high  yields. 

Neither  the  VS.  Department  of  Agriculture 
nor  the  State  Department  have  spelled  out 
the  fact  that  fertilizers.  Insecticides  and 
herbicides  are  responsible  for  about  40% 
of  our  present  production  of  agricultural 
production. 

A  shortage  of  fertilizer  for  our  1974  agri- 
cultural produc»R>n  Is  now  certain.  In  spite 
of  which  the  V3X).A.  has  set  goals  of  almoet 
maximum  yields  per  acre.  Which  borders  on 
the  ridiculous! 

Because  you  are  Chairman  of  the  Foreign 
Relations  CommUtee  of  the  U.S.  Senate— 
and  because  the  world  has  the  amaUest  re- 
serves of  grain  since  1952— and  because  the 
world  population  is  growing  at  a  rate  of 
about  80  million  people  per  year,  food  Is 
now  the  greatest  problem  of  the  future.  And. 
the  problem  which  seems  to  be  getting  the 
least  attention! 

It  seems  to  me  that  Secretary  of  SUte 
Kissinger  has  need  to  know  that  the  world 
has  almost  no  reserves  of  food — that  bad 
weather  In  any  of  the  principal  grain  pro- 
ducing areas  of  the  world  could  create  wide- 
spread hunger  to  the  point  of  starvation. 
There  are  three  principal  plant  food  in- 
gredients— nitrogen,  phosphonis  and  potash. 
Phosphate  and  potash  are  obtained  from  con- 
centrated deposits  in  various  parts  of  the 
world  and  can  be  produced  in  larger  quan- 
tltlea  rather  rapidly. 

But,  nitrogen  Is  made  from  the  air  and 
water  and  gas.   Air  Is  unlimited,  of  course 

and  water  almost  unlimited.  Oas  Is  scarce 

and  becoming  more  scarce  and  more  expen- 
sive every  day. 

And  the  nitrogen  In  fertilizer  is  the  ingre- 
dient that  gives  the  greatest  increases  In 
yield  The  phosphorus  and  potash  arc  needed 
to  balance  the  nitrogen  but  the  nitrogen  Is 
mea.5urable. 

When  supplemented  with  phosphate  and 
potash,  two  pounds  of  nitrogen  wUl  produce 
a  bushel  of  com  or  wheat  One  pound  of 
nitrogen  will  produce  a  bushel  of  oau  In 
short,  a  pound  of  nitrogen  will  produce  about 
30  pounds  of  grain.  Furthermore,  a  po-ind  of 
nitrogen  will  produce  about  20  pounds  of  dry 
matter  In  the  form  of  pasture  which  will 
produce  a  pound  of  beef 

Present  predictions  are  that  we  will  have 
about  one  mUUon  tons  leas  nitrogen  In  1974 
then  w«  had  avaUabls  In  1972.  (We  ran  short 
In  the  spring  of  1973 — and  because  of  price 
ceilings  we  expor>d  some  in  the  past 
■uouner.) 


December  19,  1973 


The  shortage  wUl  affect  not  only  grain 
crops  but  cotton  and  fruits  and  vegetables — 
and  pastures 

What  can  be  done  about  the  shortage  of 
nitrogen  fertilizers? 

There  are  three  options  on  the  expansion 
of  nitrogen  fertilizers 

First,  the  oU  companies  who  produce  oil 
In  the  Arab  coun  tries  of  the  Mid -Bast  have 
always  "flared"  all  of  the  gas.  They  Just  burn 
It  Into  the  air.  It  is  a  crime  against  humanity. 
I  think  the  OS.  State  Department  might  in- 
duce the  oil  companies  to  make  nitrogen 
fertmzer  out  of  It  and  market  It  around  the 
World— and  pay  the  countries  a  reasonable 
price  for  the  gas.  It  may  well  be  that  the 
.^rab  countries  could  even  contribute  cash 
CO  the  building  of  the  nitrogen  fixation 
units — which  would  make  them  less  inter- 
ested in  seizing  them. 

Second,  nitrogen  can  be  made  out  of  coal. 
Bake  the  coal  and  you  have  gas  and  coke. 
Make  nitrogen  out  of  the  gas— and  electricity 
out  of  the  coke.  We  have  half  of  the  world's 
coal  reserves  and  It  would  let  us  control  our 
own  supplies  of  fertilizer 

Third,  the  Soviet  Union  has  one-seventh  of 
the  world  8  land  area.  They  probably  have 
about  that  proportion  of  petroleum  resM^ea. 
They  have  a  stable  government.  TTiey  hare, 
however,  lesa  land  than  they  need  which  baa 
adequate  rainfall  and  a  long  enough  sea- 
son. So.  they  need  grain.  It  might  be  possible 
to  make  a  trade  with  them.  We  could  trade 
several  million  tons  of  wheat,  com.  grain 
sorghum  or  soybeans  per  vear  for  a  similar 
number  of  tons  of  urea. 

Actually.  If  they  were  to  enjoy  "Most  Fa- 
vored Nation"  trade  such  as  the  United  Statee 
has  granted  to  Yugoslavia  and  I  believe  Ro- 
mania, among  the  communist  nations  I  be- 
lieve no  year  after  year  deal  would  be 
necessary. 
They  need  the  grain!  We  need  the  urea! 
(The  reason  I  have  suggested  urea  Is  that 
U  la  a  dry  fertilizer— so  the  same  boats  that 
carried  our  grain  to  the  Soviet  Union  could 
bring  their  urea  back  and  thereby  save 
freight.) 

A  decision  on  which  of  the  three  options 
should  be  made  not  a  year  from  now— or  two 
years  from  now— but  at  the  earliest  possible 
time,  someone  knowledgeable  should  be  work- 
ing on  this  problem  for  either  the  Senate 
Agricultural  Committee  or  the  Foreign  Reta- 
tlon  Committee— as  well  as  in  the  Stete  De- 
partment and  In  the  US.  Department  of 
Agrlcult\ire  Department 

It  will  probably  take  two  years  after  a 
decision  Is  made  before  the  first  ton  of  nitro- 
gen fertilizer  Is  available  or  even  three  years 
It  seems  to  me  that  it  might  be  beet  to 
use  all  three  methods.  Because  most  of  the 
world's  best  agricultural  lands  are  now  being 
used— and  within  the  next  three  years  world 
population  win  have  grown  by  more  people 
than  now  live  In  the  VBJi.. 

And.  that  takes  a  great  deal  of  food— the 
extra  240  million  people  we  will  have  by  1977 
I  am  sending  you  six  copies  of  this  letter 
honing  you  will  send  Secretary  Kissinger  and 
Secretary  Butz  each  a  copy  and  give  one  to 
Senator  Talmadge  who  Chairs  the  Senate 
Agricultural  Committee 

Your  own  reaction  to  this  letter  will  inter- 
est me 

Most  sincerely. 

RoswxLL  Oarst 


A  Bit  or  Histort 
My  brother.  Jonathan,  was  always  alert 
about  new  things  In  agriculture  He  gradu- 
ated I-.  agriculture  from  the  University  of 
Wisconsin  In  1915  He  farmed  the  farm 
where  Elizabeth  and  I  lived  In  I91fl  and  until 
June  of  1917  when  he  went  off  to  the  anny 
to  World  War  I.  I  graduated  from  high 
school  in  1918— was  at  the  University  of 
Wisconsin  In  1917— and  came  home  to  run 
the  farm  for  him  while  he  was  In  the  army. 


When  the  war  ended  on  November  11. 
1918.  every  soldier  wanted  to  come  home  at 
the  earliest  possible  moment.  In  order  to 
keep  soldiers  content  with  not  getting  home, 
the  United  States  would  let  any  soldier  go 
to  school  In  Europe  for  a  year  or  so  at  army 
expense.  Jonathan  took  advantage  of  that 
offer — and  went  to  the  University  of  Edln- 
burg  In  ScotUnd.  He  enjoyed  It  thoroughly 
He  returned  to  the  US_A.  in  1919— farmed 
In  Canada  for  a  couple  of  years,  spent  a 
couple  of  years  In  CalUomia  In  the  garden 
seed  business — but  returned  to  the  Univer- 
sity of  Edlnburg  where  he  earned  a  PhX). 
in  geography  and  geology  in  1930.  He  spent 
the  next  three  years  as  director  of  the  Mc- 
CauUy  Institute  of  SoU  Science  on  the  Isle 
of  L«wU.  off  the  west  coast  of  ScotUnd  He 
returned  to  the  UB.A.  In  1933  to  "see  the 
depreaslon '.  He  spent  most  of  the  rest  of 
hU  active  career  with  the  U.  8.  Department 
of  Agriculture. 

In  the  winter  of  1940-41.  he  wrote  me 
from  CalUornla  that  the  Consolidated  Min- 
ing and  amelUng  Company  of  TraU.  British 
Columbia  was  producing  both  ammonium 
nitrate  and  ammonium  phosphate — and 
sending  them  into  California.  He  urged  me 
to  get  a  couple  of  carloads  of  each  shipped 
to  Coon  Rapids  which  I  did  in  the  sprUijt  of 
194L  * 

Pearl  Harbor  was  December  7,  1941. 
In  1942  every  bit  of  emphasis  was  on  rais- 
ing   and    equipping    an    armv     The    bombs 
which   we  used  in   1943^44-46  were  made  of 
TNT.  So  all  nitrogen   was  used  for  bombs. 

But.  It  was  ruled  that  nitrogen  from  Trail, 
British  Columbia  cotild  stui  be  Lmport#d  for 
use  on  "essential  crops"— and  the  produc- 
tion of  hybrid  seed  com  was  recognized  as 
an  "eoaentlal"  crop. 

So  in  1941-42-43-44-45,  I  obtained  two 
carloads  of  ammonium  nitrate  and  two  cars 
of  16-20-ammonlum  phosphate. 

In  those  years — and  for  100  rears  befort; 
those  days— every  land  grant  college  had 
taught— and  rightfully  taught— that  rota- 
tions that  Included  legumes  were  the  way 
to  maintain  satisfactory  yields  Corn,  corn, 
oats  and  clover"  was  the  basic  recommenda- 
tion but  three  year  roUtlons  were  even  bet- 
ter— "Com.  oats  and  clover". 

The  "clover"  could  be  red  clover  or  alfalfa 
or  sweet  clover.  The  sou  had  to  have  lime 
to  correct  addlty— and  the  clover  was  far 
more  vigorous  if  acid  phosphate  and  potash 
were  also  used.  The  clover  year  probably 
with  a  4-year  rotation— every  three  vears 
averaged  putting  50  Sf  of  N  every  four  years 
with  a  3-year  rotation.)  Which  would  be 
12  «  of  N  per  year  on  the  four-year  rotation 
and   16 «   on  the  three-year  rotation 

Prior  to  the  end  of  World  War  n  no  agri- 
cultural university  advocated  the  use  of 
nitrogen  fertUlzerl 

Henry  A.  Wallace  was  Secretary  of  Agri- 
culture from  1932  to  1940  Then  he  was  Vice 
President  from  1940  to  1944.  TTien  he  was 
Secretary  of  Commerce  from  1944  until  he 
resigned  In  1947  to  mn  for  president. 

As  Secretary  of  Commerce  one  of  his  aa- 
slgnmenu  was  to  dispose  of  the  mtrogen 
fixation  plants  that  had  been  buut  to  make 
the  bombs  that  were  dropped  on  Germany 
to  win  the  war.  He  flrst  considered  dis- 
mantling them  and  selling  them  abroad 

However,  he  knew  that  I  had  been  using 
nitrogen  fertUlzer  with  great  success  and 
sent  some  people  out  from  Washington  to 
see  the  resulu.  They  were  almost  unbelieva- 
bly good.  So,  he  had  Jonathan  Qarst  Join 
the  Department  of  Commerce  staff  and  the 
factories  were  sold  to  the  companies  who  had 
managed  them  while  the  nitrogen  for  the 
bombs  were  being  made  for  um  as  nitrogen 
fertUlzer  plants. 

In  1963.  my  brother,  Jonathan,  wrote  a 
book.  "No  Need  For  Hunger",  which  basi- 
cally u  a  story  about  how  food  production 
has   been   improved   by  the  use  of  nitrogen 


December  19,  1973                CONGRESSIONAL  RECORD  —  SENATE  42443 

for  fertUtor  for  our  crops  and  by  the  use  of  In  his  book  No  Need  For  Hurxger  vn-ltten  of  7  pounds  per  cultivated  s^^e   In  Holiand 

ur«i  as   the  protein  of  our  mmlnants.  in  1963  Jonathan  quotes  in  full  a  letter  he  the    average    appiicatlon    is   50    pounds    We 

one  of  the  peoommendatlons  for  the  book  wrote   Secretary    Brannan    May    23.    1951.    I  get  the  mtrogen  Irom  fue:  and  au-    We  wiu 

'"'•^  n-t.^*   "*!",  J°"°*^.  ''''°"  '^  ^''^  ^  ^°"°'^^^  ^^'^  ^  ''^^^^^  '^  »-'-^^  phosptau.  ana  pot- 

deJ^  ^^u^L    ,L'^T.     °Z^J  IT*  ■DEPABTMSNTorAcEicui.TBR^  ^.   ^ut   We   have  ti.ese   in   our   mines    For 

th^n  ^,.^^Lfl     "'k     ^^^  ?V^.  ^°"  Washington  25,  DC.  May  23^^1951  s^PUclty   we  will  speak   In   t^rms  of  nitro- 

l™n»  nn  ^o   ,^H    f^       .       ,  What  nitrogen  to  :  The  Secretar^  of  AgrlcuU^                    '  S^'^-  S<^to  get  our  emergency  need  of  7  mll- 

!X^v  H.^t  .nH°H^^"J:«^"^J«^«!!!  ^^-  JonathtmOarsTAsststant  to  the  Sec-  "'>'^  ^^^  "^'-^  f°^  ^^^^-^  we  just  produce 

entirely  right  and  did  a  terrlflc  Job.  No  Need  ^etarv  for  FertUlzer  Faculties  Exd^-  ^'^  ^°^  ^^s  of   nitrogen:    to  keep  up 

For  Hunger  Is  a  splend  d  book  and  Its  essen-  ^j^^  J^^  UoV^Ucn '^*'"'"'*  ^^^^  with   the   population   gains^*e   slmply^add 

tlal  message  is  sound."-Henry  A.  WaUace  ..jjere  is  a  slmp^medrevtew  of  the  need  for  ^00.000  tons  capacity  p^r  vear."            ^  ^ 

ou,^  Ai^'^n'inlVk.'J:^.''^'^'''^'.  °'  fertilizer  in  t?!eTmt3"tIfeIwhchh^Jen  .    ^^^^  °^  ^^  ^-^^hat  Jonathan  could 

ours.  Jake  Bell,  and  I  decided  that  our  wives  checked     throughout     the     Deoartm^t     of  ^^ue    certificates  of  necessity"  which  carried 

T^^n^^'"X''n"'^:t''°'^.^'':  '^:iJ^  Agncuuure      ^                        Department     of  with  them  not  only  a  high  priority  for  the 

w^i^  ^  4^           "^  H  "^  '^°^  ^  Florida.  .^t^^^            ^^  acquisition  of  steel  and  other  necessities  for 

Zri    ,r^^.Tl      ^'T  tT^  ^T  .^^PP'^i  Short  of  cotton.  We  are  not  gol^  "'  pr«3^l  buUdlng  the  nitrogen  .Ixatlon  plant*  but  also 

^d    looking   over    Washington.    Jake   and    I  ^          ^^  ^j^                     with  a  no^  cr^  we  "^^   '^'^  accelerated   depreciation   sched- 

^u,  ~    n>,     ,     %^-^-  ^^'P^'^^'^*  «'  ^^:  WUl  not  hai^esrenoiSh  f^d  ^^  a-dlt  "'^^-^^  *'«  ^^le  to  issue  fixation  units  for 

culture^  Char  es  Brannan   was   Secretary  of  ^^^  ^^^,  ^Jugh  »^ wlll^  luX^o  harv  ^^^  Production  of  more  than  a  mlUlon  tons 

Agriculture   at   the   tln^   and   I  had  known  „^   ^   nornmrcrop    ^rnoVJlatlon   o^  the  °^  ^'trogen  in  the  years  1951  and  1952.  And, 

him  for  several  years.  So.  we  called  on  hlml  nnittn  .5t=V«=  kJ.  «„  ,,      P^P^*^''"^  ^^f   ^^^e  more    certificates   of    necessltv    were    i«iii«d 

Luor "^Tow^^mL'?-^'^  "''"'  ^'""^  "  fa?!^1f  w"?oromy"h^reT bIJiVup  our  T'^   "'f   ^P^^l^^'^'^^^^Uon'^^ 

Tls-'LswrwaTar'^^r follows:  'Terrible!  [TJ^J^.T^  "  k^  ^^^^f  ^^^^^^  "^c^^^: ^ZT^"    "^'^    ^^^^    ^' 

we  are  short  of  grain.  We  ax.  short  of  cat-  X^:,,^nZ  Tj'^nuln^Ze'^T.r  ""  ^^^  '^^'^  -^^^"-  ^«'<^«  ^^^^  "pw-anl 

tie— short  of  hogs.  We  are  at  war  In  Korea—  ..t„   .i,  "hIJ^^     muuon  P^P^e  pw  year.  starting  in  1955— a.-;  more  and  mor».  faVrnpr^ 

and  there  Is  a  posslbUlty  that  we  may  be  at  _^  2o%^u^  ^±\'^^^^  ^^  *""  "^^  discovered  whawre^?Tn^eas^^uld ™ml 

war   with   the  Soviet  Union  or  China.   How  2T^m°nXple^^tt^lW  ^\  T  ^  Jrom  generous  fertUlzer  ap?So^"u^ 

can  we  produce  more  food?"  .viniTrT,, >    „  k<  v  !    J       ^^'•"*"y  ^ent  up  27  f^om  1951   and  1952  unUl  1955  and   ra'M  t.n 

I  told  him  I  knew  the  answer.  The  answer  ^'^^rU^^ilalnT'^e^'nl'tld^r^S:  ^'  '''r  ^'^^^  ^^^  ^Tthe'mt^^en  av'alS! 

I  suggested  was  that  we  do  for  agriculture  u,   i860.  In  ?8M  an   L«^  in  p^ulati^  able.  Just  look  at  the  com  historj-  enclosed, 

what  we  did  for  the  manufacturers  of  air-  gave  no  concern  bt^au^^^ha?  mu?h™  o,^L°''^   ^^^^'   ^°"^  J"'**"^  '^'^'y   *-«^t  ^^^ 

planes,  tanks^  guns  and  every   kind  of   war  Lid  to  bring  ^dfrcmtwLlon    to  195?  we  VA  k""^^^"  ^  ^^^  ^"^^^'^  *  8»^  °^  °^y 

equipment.  We  gave  them  a  "certificate  of  are  not  nnirlhr^^r  fo,^!  i^     ..       f  ^^^  bushels  in  25  years,  a  gain  moeMv  due 

necessity"  which  permitted   them  to  depre-  o^^nt^Vu^^Mon     ^.^  ^f         "°'' '°vf  °^  ^  changing  from  no  use  of  hvbrtraeed  to 

elate  out  their  factories  in  a  short  period  of  IJ            Population,    but    Increases    should  complete  use  of  hybrid  seed         '           ^^  ^ 

say  four  or  five  years-lnsiead  of  over  a  20-  l^l,'^''^^"'  because  we  have,  practicaUy  m    the    18   years    since    fertUlzer    became 

year  period.  P^l-g.  no  more  land  to  bring  under  cultl-  avaUable.  the  yield  has  Inc^^fro^lS^ 

The  United  States  had  what  was  known  as  '*."°°-        ^.       ^_            .,  bushels  per  acre  to  85  bushels  per  acre       % 

a    -War  Production  Board".  The    "War  Pro-  "  ^^  estimated  we  wlU  this  year  exhaust  Every  fanner  who  plants  com  noTknows'^ 

ductlon   Board"    Issued    the    "certificates    of  our  reserves  of  grain   to  the  danger  point,  that  40%  or  thereabout  of  hisTleUis  are  due 

necessity"  which  gave  the  holder  a  priority  We  are  therefore  faced  with  an  emergency  to   generous    applications   of    ba!^c^  7^ 

for  the  purchase -^f  the  steel  or  other  scarce  situation  to  provide  more  grain  In  1952  Just  tlll»r  contalnine  N— P  o    ^nrt^  A^  i 

commodltles-and       a       fast       depreciation  ^.."^P  ^^P  ^^  P^-^^ -^  °^  ~-^Ptlon.  herbicides  and  iLecUcldes  ^nd  S^rt<S 

Bcneauie.  we  can  calculate  our  present  and  future  mana«>ment  nrsrtt™.^  o„.k    »=   .v,               , 

I  pointed  out  that  every  Soils  Department  needs  as  would  have  been  done  In  1860;  that  weU-^a^t^   hSi   LS^  c^r^-in^  ?^   ° 

t^  ^^^^STiv-^s  s„';.nTop'^"-  r.rr.,v:;:  ~~'  ---"- -Sis; 

sr"£;r;5?fpf„sr-„v»',r^°;i  tz^TZ!^z:s^i;z::T^X  -»--—"-"—: 

iTiL^^Tr-^,  *'"^^*^''  Of  corn-that  a  duced  enough  feed  to  equal  the  demlnd^r     "^^  Dillon  people ,830 

mllir  bushels^f"  ™^nrA:d.Thar?rthl  '^^  ^'^  '^  -^^  ^^^0  mUUoiTr^s.  T^o     Sbim''^'^  ^T* "---     '^ 

only  way  I  knew  he  could  do  what  he  IZ^.  "^K^"  ''"^'^  '"  Population,  we  need  to     ^^^f.Z^"^-,  - '^ 

He  said.  "Who  would  you  get  to  manage  *^**  ^ '^   '"'^  °^  ^°^  ^'^'^  P"  P«^^n.  We     ^^^  »'""°«  P«>Ple -     1976 

It?"  would  have  to  add  3  million  acres  per  year  Present  world  population  growth   Is  estl- 

I  told  him  that  Jonathan  had  helped  Henry  "^"^  ^"  ^^  '^^"^^  ''^  «^ould  have  to  find  30  mated  to  be  80  mUllon  per  vlu-  Bv  1977  we 

WaUace  sell  the  nitrogen  plants  buUt  m  the  m^Hon  acres   In  other  words,  U)e  tcould  have  wUl   have   added   240  mlllloii   oeoole  -n  th» 

war  years.  And,  that  he  knew  about  nitrogen,  'o  discorer  another  state  like  lotca.  world  pc^ulaUon— which  Is  moreoeonie  th«n 

And.  that  he  was  retired— In  good  health  and  "^t  Is  a  relief  to  tum   to  the  alternative,  now  Uve  In  the  United  States        *^*"''  "**" 

available.  So.  within  a  week,  Jonathan  was  One  ton  of  nitrogen   In  fertilizer  equals  14  We  must  not  only  have  more  fertlU^r  in 

back    in    Washington    as    "Assistant    to    the  acres  of  good   farmland.   We  are  not  using  the    U  S  A  — but    mLh    mn^ C.               ,v 

Secretary  of  Agriculture  for  Fertilizer  FacUl-  nearly  as  much  nitrogen  as  could  be  ap^  wc^ld                                                         °^'   "*' 

ties  Expansion  for  MobUlzatlon".  to  increase  crop  yields.  We  use  an  average  Rosv^ix    Oarst 

CORN  HISTORY-JAN.  19.  1973 


Ywr 


Acrts 

harvested 

tor  grain 

(in  r.(K» 

acres) 


Per  Kre  Percentage 

yield  Per  acre  lost  due 

S-year  yield  to  poorer 

average  (bushels)  yields 


Total 

bushels 
tor  grain 
(in  1,000 
bushels) 


Total  i 
harvested 
bushels 
&-year 
averages  | 


Year 


Acres 

harvested 

for  grain 

(in  1,000 

aaes) 


Per  acre  Percentage 

yield  Per  acre  lost  doe 

S-year  yield  to  poorer 

average  (bushels)  yields 


Total 

bushels 

for  grain 

(in  1,000 

bushels) 


Tola 

harvested 

bushels 

S-yeer 

averages 


1930 101,465 

1931 106.866 

1932 I10.S77 

1933 105,918 

1934 92,193 

1935 95,974 

1936 93,154 

1937 93,930 

1938 93.160 

1939 88.279 

1940 86,738 

1941 86,186 

1942 89.021 

1943 94,455     .  .. 

1944 94,014 

1945 87,625 

1946 87,585...... 

1947 82,888    i 

1948 84.778...... 

1949 85,602 

1950 81.817 

1951 80,736 


21.9 


25.0 


31.9 


3S.6 


20.5 
24.1  .... 

26.5  .... 

22.6  .... 
15.7 

24.0  .... 
16.0 

28.1  .... 

27.7  .... 

29.2  .... 
28.4  .... 

31.0  .... 
35.2  .... 

32.1  .... 

32.8  . 

32.7  .... 
36.7  ..... 
28.4 

42.5 

37.8 

37.4 

S5.9 


17.7 


28.3 


1, 757. 297 
2,229,903 
2.578.68S 
2, 104. 725 
1, 448, 920 
2.001.367 
1.2S8.673 
2, 349, 425 
2.300,095 
2.341.602 
2,212.367  . 
2,435,307  . 
2.849.340 
2,  724. 530  . 
2,801,612  . 
2.577.449  . 
2.916.089  . 
2.  lot.  320 
3. 307, 038  . 
2.949.293  . 
2.760.374  . 
2, 617. 319  . 


2,023,906 
"2,*d56,"232 

... — .,.. 

■2,"77i,"638 


19S2.. 
1953.. 
1954.. 
1955.. 
19S6.. 
1957.. 
1958.. 
1959.. 
I960.. 
19(1.. 
19C2.. 
1963.. 
1964.. 
1965.. 
1966.. 
1967.. 
1961.. 
1969.. 
1970.. 
1971.. 
1972.. 


81,099 
80.608 
68,668  . 
68,462  . 
64,877  . 
63,065 
63.549  . 
72.091  . 
71.422  . 
57,634  . 
55.726 
59,227  . 
55,369  . 
55,332  . 
56.933  . 
60.557 
55.880  . 
54,598  . 
57, 359  . 
63.819 
57.141  . 


38.5 


48.7 


62.5 


77.4 


8S.3 


40.4 
39.6. 
39.4  . 
4L0  . 
47.4  , 
48.3  . 
52.8. 
53.1  . 
54.7  . 
62.4. 

64.7  . 
67.9  . 
62.9 

73.8  . 

72.3  . 
78.6  . 
78.6  . 
tS.9  . 
71.7 

88.4  . 
95.8  . 


11.2 


17.2 


2.977.243 
2. 876, 394 
2.707,913 
2.872.959 
3,075.336 
3.045,355 
3.356,205 
3.824,598 
3.906.949  . 
3.507.803 
3.606.311 
4,019,238  . 
3, 484. 253  . 
4.084)342  . 
4.117,355  . 
4.760.076 
4,393.273  . 
4.58tSS4  . 
4.109.792  . 
5,641,112 
5.473,727  . 


2.787.849 

3,234.iji 

■S,'72i"9i6 

■4.'w;5i6 
"id74.'877 


-< 


4244t 


CONGRESSIONAL  RECORD  — SENATE 


December  19,  1973 


MAIN  SORGHUM  HISTORY 


YMr 


Aem 

iMfvutad 

(Of  gram 

Cm  1,000 

acrts) 


Acm 

&-y«ar 

avaraf* 


Par  acra 
yiald 


Total 

btniMis 

(ortraiii 

i-imx       0*  T.0O0 

av«nca        bualMts) 


S-ywr 
avaoft 


1930... 
1931.... 
1932.... 
1933.... 
1934.... 
1935... 
1936... 
1937... 
1S38.... 
1939.... 
I9«.... 
1941... 
1942.... 
1943.... 
1944.... 
1945.... 
1946.... 
1947.... 
1948.... 
1949.... 
1950.... 
1951.... 


3.477  

«.«3 

4.  400  3,  814 

4,354 

2,396 

4,597 

2.793 

4, 915  4. 3S3 

4,699 

4  760 

6!  374  ■;;;i!i"iii 

6.015 

5.991  6.931 

6.889 

9  386 

6.324  ;."""""" 

6.669 

5,  480  6.  478 

7.314 

6,602 

10.346  ...;.."r.''. 

8,544 


112 37,561 

16.2 71.914 

110  12.4  66,097 
12.  S 54.386 

10 19.209. 

12.5 57.6ia. 

10.8 30,27*. 

14.2  12.6  69.9a 

14.3 67.210  . 

11.2 53.280. 

13.5 85.824  . 

18.9 113.543. 

1L3  17.3  109.653 

li.9 109,536. 

19.7  184,978  . 

15.2 96,063  . 

15.9 106.025  . 

17.0  17.7  93.217 

110 131.384  . 

22  5 141494  . 

22.6 233.536. 

111  162.863  . 


49,833 


55.664 


120,707 


115,037 


Ywr 


Acns 

harvastad 

hH  tram 

CflSM 

acraa) 


Acras 

5- year 

avaia<a 


Par  acra 


5-yaar 
avarafa 


Total 

bushais 

tor  irun 

On  TOOO 

bushels) 


5-year 
averiia 


19S2.. 
1963.. 
1964.. 
1955.. 
1956.. 
1167.. 
1958.. 
1959.. 
19G0.. 
1961.. 
1962.. 
1963.. 
1964.. 
1965.. 
1966.. 
1967.. 
1968.. 
1969.. 
1970.. 
1971.. 
1972.. 


5.326  1^446 
6k2« 

11.718 

12.891  

9.209 

19,682  14,742 

11524 

15.406 

15,601  

10,985 

11.571  12,645 

13.326 

11.742 

13.029 

12,813 

14.999  13.672 

13.995 

13.525 

13,751  

11601  14,776 

13.975 


7.0  114  90.741  167, 687 

>«■« 115.719 

211  235.575 

Il» 242.638 

22.2 204.881  "■ 

218  212  567,506  430.296 

35.2 581.012 r? 

311  555.  Ul 

39.7  619,954 '  " 

«3.7 480.208 

Ml  42.6  510,284  537,127 

♦ff MS.  394 '„.. 

*1.7  ..„ 489,796 

51.6 672,698 

55.8 714,992  ..  . 

»«  M-2  'MMS  721120 

52.9 739.695 

"•3 747,280 

Sa7 697,050 

53.9  54.6  895,349  806.334 

511  826,604  


PROHTBmON  ON  THE  IMPORTA- 
TION OF  RHODESIAN  CHROME 

Mr.  McGEE.  Mr.  President,  throughout 
the  course  of  debate  on  8.  1868,  op- 
ponents of  the  measure  launched  a  con- 
certed attack  on  the  United  Nations.  It 
was  obvious  to  me  that  the  real  issue 
Involved  in  S.  1868  on  the  part  of  these 
Senators  was  not  sanctions  against  Rho- 
desU,  but  the  United  NaUons  itself. 

As  a  long-time  and  pragmatic  sup- 
porter of  the  UJJ.,  I  was  very  disturbed 
by  this  assault.  I  believe  the  arguments 
to  be  very  shortsighted  and  potentially 
dangerous  to  our  participatlcHi  In  an 
institution  which  Is  vital  to  our  national 
Interests  and  foreign  policy  conduct.  I 
was  deeply  relieved  and  gratified  by  the 
Senate  action  yesterday  which  resulted 
In  passage  of  S.  186S. 

Therefore,  I  would  Uke  to  note  a  col- 
umn written  by  Anthony  Astrachan 
which  appeared  m  the  December  16  edi- 
tion of  the  Washington  Post.  Mr  Astra- 
chan very  effectively  lays  out  the  case 
for  why  there  is  a  need  for  a  United 
Nations. 

As  Mr.  Astrachan  noted: 

The  October  wax  In  the  Middle  Bast  proved 
once  again  that  the  United  Natlona  cannot 
make  peace  on  its  own  but  is  tndlapenaable 
when  Its  members  want  peace. 

He  added : 

Had  there  been  no  United  Nations,  there 
would  be  no  new  talks  In  Geneva. 

However,  the  most  appropriate  obser- 
vation offered  by  Mr.  Astrachan  was  the 
following : 

It  Is  indispensable  because  It  provides  the 
forum  In  which  the  combatants  and  the 
great  powers  can  give  public  form  to  the 
poeltlons  they  work  out  in  private,  and  be- 
cause It  provides  the  machinery  by  which 
they  institutionalize  their  decisions. 

This  cuts  to  the  heart  of  the  Issue.  We 
live  in  a  very  complex  international  com- 
munity in  which  many  complex  prob- 
lems abound.  We  cannot  attempt  to  ra- 
tionalize this  reality  in  simple  terms  and 
simple  solutions,  because  the  Interna- 
tiona] community  is  not  marked  by 
simplicity.  We  have  to  recognize  the 
realities  and  come  to  grips  with  these 


realities  In  the  most  effective  manner 
possible.  It  does  not  mean  retreating 
from  responsibility,  but  exercising 
responsibility. 

In  this  morning's  edition  of  The 
Washington  Post,  Mr.  Astrachan  also 
had  an  analytical  piece  on  the  28th 
General  Assembly: 

This  has  been  a  good  year  for  the  United 
Nations,  diplomats  agree — prlmarUy  because 
the  Security  Council  proved  able  to  play 
what  US.  Secretary  of  State  Henry  A.  Kis- 
singer called  "a  very  useful  role"  In  ending 
the  Middle  East  War. 

Here  again,  Mr.  Astrachan  offers  some 
very  poignant  observations  when  he 
noted: 

The  oouncU's  (Security  CouncU)  actions 
diew  praise  from  Klaelnger  last  month.  He 
called  the  U.N.  an  effective  sounding  board, 
a  rapid  means  of  communication  among  the 
parties  to  the  war.  the  mcwt  effective  way  to 
reach  a  cease-Ore  and  a  buffer  preventing 
confrontation. 

This  is  the  essence  of  wiiy  the  United 
States  must  remain  In  the  United  Nations 
and  why  the  United  Nations  must  con- 
tinue to  exist.  We  solve  nothing  if  at- 
tempts diminish  our  participation  in  the 
institution.  On  the  other  hand,  by  up- 
grading our  participation  in  the  United 
Nations,  we  stand  to  gain  much  from  the 
international  stability  arising  out  of 
such  a  participation. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  two  articles  be  printed  In 
the  Record. 

There  being  no  objection,  the  articles 
were  ordered  to  be  printed  In  the  Ricord, 
as  follows: 

(From  the  Washington  Post.  Dec.   19.   1973) 
A  CJooD  Yka«  roa  UN   Euros  WrrH 

Ul»BXAT    NOTX 

(By  Anthony  Astrachan) 
U»rm»  Nations.  Dec.  18. — This  has  been 
a  good  year  for  the  United  Nations,  diplo- 
mats agree — prlmarUy  because  the  Securttv 
Council  proved  able  to  play  what  U.S  Sec'- 
retauT  of  State  Henry  A.  Kissinger  called  "a 
v«7  useful  roie"  In  ending  the  Middle  East 


The  achievements  at  the  38th  General  As- 
sembly, which  ended  today,  were  much  nx>re 
tenuous,  although  both  the  Soviets  and  the 
Americans  praised  It  for  their  own  purpose*. 

The  council's  actions  drew  praise  from 
Kissinger  last  month.  He  called  the  UJJ. 
an  effective  sounding  board,  a  rapid  mea.Ts 


of  communication  swnong  the  parttee  to  the 
war,  the  most  effective  way  to  reach  a  cease- 
fire and  a  buffer  preventing  confrontation. 
Some  diplomats  here  doubt  that  the  coiin- 
cU  will  be  as  effective  next  year,  when  Bye- 
lorussia, a  Soviet  state,  and  Iraq,  an  Arab 
militant.  tcJce  non-permanent  seats.  They 
will  replace  Yugoslavia  and  IndU,  two  non- 
aligned  states  which  played  Important  roles 
In  the  councU's  peacekeeping  efforts  this 
year. 

The  only  real  reason  for  optimism  is  that 
the  councU  showed  this  year  that  It  can  deal 
with  a  specific  crisis,  when  the  parties  and 
their  great-power  patrons  allow,  even  though 
It  stlU  has  not  reached  the  long-sought 
agreement  on  the  general  philosophy  of 
peace-keeping. 

U.S.  Ambassador  W  Tapley  Bennett  Jr. 
called  the  assembly  "a  constructive  force 
for  international  cooperation  on  the  broadest 
scale." 

The  comment  astonished  UJJ.  observers. 
Bennett  explained,  "The  assembly  wisely 
chose  to  agree  where  agreement  was  possi- 
ble, and.  In  most  Instances,  to  avoid  fruit- 
less confrontation  where  It  was  not." 

That  made  the  assembly's  most  Important 
achievement  Its  decision  to  defer  votes  on 
the  UN.  presence  in  Korea  and  the  question 
of  who  should  represent  Cambodia 

Bennett  also  praised  the  assembly  decision 
to  hold  a  world  food  confererxe  In  Rome 
next  year.  He  attributed  It  to  a  suggestion 
Kissinger  made  here  In  September  and  called 
It  an  example  of  speedy  UJ*.  action,  but  the 
conference  had  actually  been  In  the  works 
of  the  PVxxl  and  Agriculture  Organization 
weU  before  that. 

Soviet  Ambassador  Yakov  Malik  gave  his 
highest  praise  to  the  assembly's  endo«sement 
of  the  Soviet  proposal  to  ask  the  five  perma- 
nent members  of  the  Security  CouncU  to  cut 
their  military  budgets  by  10  per  cent  and  use 
1  per  cent  of  the  total  budget  to  aid  devel- 
oping countries. 

The  vote  was  83  to  3,  with  China  and  Al- 
bania voting  against,  and  38  abstentions, 
among  them  Britain,  Prance  and  the  United 
States.  The  proposal  has  no  chance  of  being 
put  Into  effect. 

[Prom  the  Washington  Poet,  Dec.  18,  1073] 

UJi     CoNTsiBtmow    LntrrxD.    Iitobpinsabls 

(By  Anthony  Astrachan) 

UNrr»D  Nations  —The  October  war  In  the 
Middle  East  proved  once  again  that  the 
United  Nations  cannot  make  peace  on  Its 
own  but  is  IndUpensable  when  Its  members 
want  peace. 

Now  diplomats  here  are  wondering  what 
they  can  do  for  an  encore  Kurt  Waldhelm's 
presence  at  the  new  talks  in  Geneva  Is  mere- 
ly  symboUc — a  reminder   to  the   .\raJ>«.   tfie 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


•42445 


IsrHe.:s  ajid  the  ^reat  powers  that  they  can- 
not Unore  the  world  as  they  try  to  end  the 
perennial  crisis  In  the  regie  i.  The  United 
Nations  Ls  n  more  :ucely  tr  make  a  major 
contribution  to  the  new  efTorts  to  b\illd  a 
"Just  a:.d  duraoie  pjeace"  than  it  did  In  the 
six  years  between  the  last  two  wars,  when 
Qunnar  Jarrlnt?,  the  special  UJs'  represent- 
ative, seemed  always  to  end  by  talking  to 
h'mself. 

Still,  had  there  been  no  United  Nations, 
there  would  be  no  new  talks  In  Geneva. 
That's  considerable  C'^mfort  to  XJH.  diplo- 
mats who  fumed  during  the  first  week  of 
the  war  whUe  the  Security  Council  met  fo\ir 
times  and  did  nothing.  Neither  the  Arabs 
nor  the  Israelis  were  ready  to  stop  fighting, 
and  their  great-power  patrons  were  unable 
or  unwilling  to  pull  them  apart — the  effort 
might  have  reduced  the  Influence  that  Mos- 
cow and  Washington  try  to  exert  in  the 
Middle  East,  or  brought  them  Into  serious 
confrontation  with  each  other  The  limits 
of  va.  "jxjwer"  were  never  clearer. 

But  by  the  third  week  of  fighting,  the 
United  States  and  the  Soviet  Union  shared 
a  fear  that  the  war  effort  would  Injure  their 
detente  more  than  a  peace  effort.  Egypt  and 
the  Soviet  Union  shared  a  desire  to  forestaU 
Israeli  mUltary  gains  and  to  create  an  op- 
portunity for  Arab  diplomatic  gains.  Europ>e 
and  Japan  feared  that  a  longer  war  would 
mean  a  worse  oil  crisis. 

So  Egypt,  the  Soviet  Union  and  the  United 
States  went  to  the  United  Nations  for  a 
cease-fire  that  would  be  politically  accept- 
able to  everyone.  Diplomacy  In  Cairo,  Jeru- 
salem. Moscow  and  Washington  produced 
agreement  to  link  the  cease-fire  to  "Imme- 
diate and  concurrent"  negotiations  for  a 
durable  peace,  but  the  agreement  came  to 
life  only  when  It  was  embodied  In  a  Security 
Council  resolution.  It  was  a  classic  Illus- 
tration of  the  Indlspensablllty  of  the  United 
Nations. 

It  Is  Indispensable  because  It  provides  the 
forum  In  which  the  combatants  and  the 
great  powers  can  give  public  form  to  the 
positions  they  work  out  In  private,  and  be- 
cause It  provides  the  machinery  by  which 
they  Institutionalize  their  decisions. 

The  United  Nations  has  never  forced  a 
sovereign  country  to  stop  fighting,  but  It 
formalized  cease-fires  In  the  Middle  East  In 
1949,  1956.  1967  and  1973. 

The  United  Nations  has  never  constructed 
a  solid  peace,  but  it  made  peace  m  the  Mld- 
die  East  a  posslbUlty  with  two  resolutions 
Security  Council  Resolution  242  of  November, 
1967.  which  Is  stUl  the  basis  at  negotiations, 
and  Resolution  338  of  last  October,  which 
gave  the  negotiations  new  life  In  Geneva 

The  fact  that  the  Geneva  talks  grew  a\iX. 
at  a  U.N.  resolution  reassures  diplomats  who 
are  disturbed  that  the  talks  may  become  a 
way  of  Institutionalizing  diplomacy  outside 
the  United  Nations.  Waldhelm's  presence  Is 
Intended  to  provide  further  reassurances. 

It  may  be  only  symbolic,  but  the  Imfxw- 
tance  of  the  symbolism  was  demonstrated  by 
the  long  consultations  among  Security  Coun- 
cU members  last  week  over  the  way  the  coun- 
cU would  endorse  the  Idea  that  Waldhelm 
should  preside,  at  least  at  the  ceremonial 
opening  sessions  In  Geneva  Even  the  diplo- 
mats who  wish  he  would  play  a  bigger  role 
admit  that  p>eace  never  could  be  constructed 
in  a  council  debate. 

Waldhelm  may  also  remind  the  world  that 
the  United  Nations  does  two  other  Important 
things  that  neither  the  great  powers  nor  the 
combatants  can  do  In  the  Middle  East:  It 
gives  other  nations  a  voice  In  shaping  peace, 
and  It  does  most  of  the  dirty  work  involved 
In  preventing  war  from  breaking  out  by 
accident. 

Those  functions  were  closely  linked  In  the 
Security  Council's  October  8e.>alon  The  eight 
non-aligned  nations  In  the  oouncll,  disturbed 
at  the  threat  of  U.S. -Soviet  "condominium" 
over  Middle  East  diplomacy,  suggested  the  es- 
tablishment of  a  UJ^.  Emergency  'Force  to 


keep  the  cease-fire  alive.  The  United  States, 
anxious  to  keep  Soviet  troops  oul  of  the  area, 
decided  to  support  them  if  permanent  mem- 
bers  of    the   oouncll   were    barred   from  the 

force,  and  the  Soviets  had  tc  foriow  sul:. 

The  forc«  created  by  those  "other  nations" 
Is  now  keeping  the  Egyptian^  and  Israelis  la 
p.iice  suppiy.tit  i.he  civUlaxxs  In  Suez  City, 
and  generally  maintaining  the  cesae-flre.  Its 
cxjmmander,  Oen.  Enslo  SlUas\'uo  of  Finland, 
keeps  trying  to  find  ways  In  which  his  troops 
c&n  make  greater  contributions  to  the  tran- 
sition from  cease-fire  to  peace,  like  oSerlng 
to  place  them  betwee:.  the  Egyptians  and 
Israelis  If  the  two  sides  are  ready  to  try  dis- 
engagement before  Geneva. 

Some  of  the  sjnaJl  nations,  remembering 
the  real  contribution  they  made  by  creating 
UNEP,  demanded  and  got  another  Sectmty 
CoiuicU  meeting  before  Geneva,  so  they  could 
maintain  their  claim  to  a  voice  on  the  Mid- 
dle East  hy  giving  Waldhelm  "Instructions" 
This  was  Intended  to  be  no  more  than  an 
endorsement  of  what  Egypt,  Israel  and  the 
great  powers  had  agreed  on,  but  the  council 
met  before  Henry  Kissinger  achieved  final 
agreement  on  details,  and  Moscow  and  \Va.sh- 
Ington  obstalned  on  the  instructions  to  Wald- 
helm. If  the  road  leads  straight  from  Geneva 
to  a  durable  peace,  the  smaU  nations'  ef- 
forts may  quickly  be  forgotten.  In  the  much 
more  likely  event  that  It  does  not,  their 
emergency  force  will  be  remembered,  and  they 
may  get  yet  another  chance  to  show  that 
the  United  Nations,  despite  Its  Umltatlons, 
Is  Indispensable  to  peace. 


comprehensi\t:  employment 
and  training  act 

Mr.  TAFT.  Mr.  President,  I  urge  my 
colleagues  to  support  the  conference  re- 
port on  the  Comprehensive  Employment 
and  Training  Act  of  1973,  S.  1559.  This 
legislation  is  a  culmination  of  excellent 
Initiatives  from  the  suiministration  and 
extensive  work  by  the  House  Education 
and  Labor  Committee,  and  the  Senate 
Labor  and  Public  Welfare  Committee. 
Special  praise  in  the  Senate  should  go 
to  the  chairman  of  the  Employment, 
Poverty  and  Migratory  Labor  Subcom- 
mittee, Senator  Nelson,  for  his  leader- 
ship on  this  legislation.  My  colleagues. 
Senators  Cranston,  Javfts,  eind 
ScHWEiKER  also  deserve  praise  for  their 
continuing  interest  and  work  on  this 
legislation 

When  hearings  began  earlier  this  year 
In  the  Employment  Subcommittee  there 
was  a  great  deal  of  skepticism  in  the 
minds  of  many  regarding  a  special  rsv- 
enue-sharing  approarh  for  man;x  wer 
training  These  concerrLs  I  believe  have 
been  adequately  resolved  without  de- 
stroying the  merits  of  a  specialized  reve- 
nue-sharing approach,  as  the  legislation 
provides  State  and  local  governments 
with  flexabllity  and  financial  assistance 
to  assume  responsibilities  for  job  train- 
ing and  public  5Pr^•ice  employment.  As 
ranking  minority  member  of  the  sub- 
committee. I  had  an  opportunity  not  only 
to  review  testimony  in  Washington,  but 
also  to  consider  firsthand  in  my  own 
State  of  Ohio  the  views  of  citv  and  coun- 
ty officials,  program  administrators, 
business  community  leaders,  labor  orga- 
nization officials  and  program  partici- 
pants with  respect  to  the  merits  of  Job 
training.  I  firmly  believe  from  my  ex- 
perience In  considering  thL«  legislation 
lat  job  training  Is  an  e.ssentlal  key  to 
alleviating  the  unemployment  problem.s 
which  periodically  surface  In  the  econ- 
omy. This  legislation  is  especially  perti- 


nent today  as  our  economy  faces  the  pos- 
sibility of  substantial  unemployment  re- 
sulting from  the  energy  shortage  in  that 
it  not  only  provides  job  training  oppor- 
tunities, but  also  authorizes  for  public 
service  employment  programs  for  areas 
that  have  imemployment  of  6.5  percent 
or  more. 

The  bill  would  consoUdate  and  decen- 
tralize programs  to  create  jobs  and  trsiin 
the  unemployed.  Any  unit  of  local  gov- 
ernment havmg  a  population  of  100,000 
or  more  would  be  eligible  to  receive  fund- 
ing as  prime  sponsors  for  job  training 
programs.  Additionally,  a  provision  is 
provided  to  permit  units  of  local  govern- 
ment with  populations  between  50.000  to 
100,000  to  apply  as  program  agents  for 
the  implementation  of  public  service  em- 
ployment programs. 

Vietnam  era  veterans  would  be  given  a 
preference  for  public  service  jobs  and, 
hopefully,  the  unemployment  rate  among 
this  most  deserving  group  of  Americans 
can  be  reduced. 

Piotections  are  also  contained  in  the 
legislation  to  provide  strong  considera- 
tions for  the  continuation  of  existing 
manpower  training  programs  of  demon- 
strated effectiveness.  Part  of  these  pro- 
grams could  include  skilled  training  cen- 
ters, which  I  might  add  can  receive  addi- 
tional assistance  tltrough  State  allocated 
money  earmarked  for  vocational  educa- 
tion, SER.  operation  mainstream,  and 
summer  neighborhood  youth  employ- 
ment programs.  Opportunities  indus- 
trialization centers — OIC — also  are  in- 
cluded in  the  legislation  as  a  community 
based  manpower  training  activity  that 
should  be  considered  for  future  funding. 
I  am  especially  pleased  to  see  this  ref- 
erence to  OIC.  as  I  beheve  this  program 
is  one  of  the  best  ways  to  bring  meaning- 
ful jobs  to  Individuals  in  the  inner  city. 

Providing  training  programs  to  indi- 
viduals so  they  can  help  themselves  is 
one  of  the  most  Imporiar.t  ways  by  which 
government  can  help  its  citizens.  The  leg- 
islation before  the  Senate  is  consistent 
with  this  objective.  I  urge  my  colleagues 
to  approve  it. 


RUSSELL  LONG'S   BUNCH  OF 

.ACXmSTS 

Mr.  RIBICOFF.  Mr.  President,  on  De- 
cemt)er  18,  1973,  I  had  the  pleasure  to 
read  an  article  in  the  WaU  Street  Jour- 
nal which  describes  the  work  of  the  Sen- 
ate Finance  Committee  and  Its  distin- 
guished chairman,  Russell  Long  of 
Louisiana 

I  have  been  a  member  of  the  Senate 
Rnance  Committee  for  10  years  and  have 
had  an  opportunity  to  watch  It  evolve 
as  well  as  to  participate  in  Its  delibera- 
tions. 

The  committee  handles  some  of  the 
most  Important  issues  in  America — social 
security,  medicare,  health  insurance, 
taxes,  unemployment  insurance,  and  in- 
ternational trade. 

.•^s  the  article  points  out  the  Finance 
Committee  is  more  and  more  an  activist 
committee — taking  the  lead  m  increasing 
social  security  benefits,  improving  medi- 
care, and  a  host  of  other  programs  Its 
staff  is  made  up  of  top-notch  profes- 
sionals. 

The  members  of  the  committee  reflect 


4244^  CONGRESSIONAL  RKUKD  — SENATE 

dlfferring  philooophles.  But  more  oHen      to  c»lculAtUi«  wb*t  Coogre—  wiu  (k>  in  tbe 
than  not  we  c&n  find  mutually  a^reecible     expwisiT*  ie«iAUtiv»  t«nitory  tbeoe  two  oom- 

zziltt«ea  bold. 

Purther.  the  Pln*nc«  Committee  itaelf  la 
cbwiglng.  It's  Qo  long«r  a  citadel  at  conaerra- 
ttam.  Tbree  or  four  KaaertlTe  and  lnteUlg«ot 
liberal  Democrata  have  been  named  to  the 
panel  and  a  resurgent  Ruaaell  Uxig  now 
aeema  more  attuned  to  the  liberal  tendenckea 


December  lu,  iy76 


path3    to    8w:hleve    beneficial    lerlslatlve 
results. 

A  recent  example  Is  the  Long-Ribicoff 
health  insurance  bill  It  has  the  support 
ot  moderates,  conservatives,  and  liberals 
of  both  parties  and  Is  a  major  step  for- 


ward in  protecting  all  Americans  against     of  the  senate  in  aome  areaa.  The  committee 


large  health  bills. 

As  the  article  correctly  points  out  our 

legislative  achievements  in  the  comnilt- 

»tee   are   due   in   large   part   to  Senator 

Longs  skill  and  patience  in  reconciling 

conflicting  views  on  an  issue 

I  ask  unanimous  coi.Lsent  that  the  Wall 
Street  Journal  article  be  printed  in  the 
Record. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  In  the  Rxcoro. 
as  follows: 

Russnx  LoNos  BtTNCH  or  AmviBis 
(By  Albert  R.  Hunt) 
Washingtok — Ruaeell  Long  Inalata  he  s  a 
strict  conatrucUonlst.  "I  flrmly  believe  Ln 
what  the  Constitution  aaya  about  the  House 
originating  revenue  measxires."  avers  the 
Senator  from  Loutslana. 

Then  comes  the  cilnker.  "But  I  havent 
been  able  to  And  where  the  Conatltutlon  says 
anything  about    germ&neneM.'  " 

With  these  words,  the  chairman  of  the 
Senate  Plnance  Comnxlttee  is  laying  down 
a  direct  ciiallenge  to  the  power  and  the  au- 
thority of  the  once-aUnighty  House  Ways  and 
Metuxs  Committee  For  what  he's  really  say- 
ing la  chat  he  Intends  to  go  right  on  doing 
something  he  and  hla  committee  have  done 
a  lot  of  lately — taking  minor  House-passed 
bills  and  t.arlr1ng  sweeping  pieces  of  unre- 
lated legislation  Into  them 

This  tactic  has  enabled  the  previously  less 
Important  Senate  committee  to  frustrate  Ita 
House  counterpart  and  dominate  one  legis- 
lative Issue  after  another  for  a  whole  year 
now.  While  Ways  and  Means  has  beei.  mired 
In  intenuLl  db^utes  and  the  lengthy  con- 
sideration of  very  few  tasuee,  the  Senate  Fi- 
nance Committee  has  leaped  Into  the  vacuum 
and,  wtVi  much  abandon.  Initiated  far-reach- 
ing legislation  In  such  key  areaa  as  Social  Se- 
ctirlty.  welfare,  health  benefits  and  campaign 
financing. 

Some  of  this  legislation  has  been  flatly 
rejected  by  offended  Housa  members.  But  In 
a  number  of  other  lnstaik:«8.  the  Senate 
committee  has  prevailed.  Clearly  It  has  its 
opposite  numbers  In  the  House  on  the 
defensive. 

"Every  time  we  turn  around  we're  respond- 
ing to  the  latest  whim  of  Ruaaell  Long."  0(.>m- 
plalns  one  House  member  "The  Constitution 
says  the  House  Is  supposed  to  initiate  reve- 
nue legislation,  but  recently  you'd  never 
know  It.'  echoes  Rep.  BUI  Archer  (R  ,  Texas) . 
a  freshman  member  of  Ways  and  Means. 

A  CRANCB  09   ACTION 

In  years  past,  the  Senate  panel  served 
primarily  as  an  appellate  court  for  Ways  and 
Meann  decisions,  usually  only  making  mod- 
est changes.  Even  when  major  alterations 
were  adopted  In  the  Senate,  more  often  than 
not  they  were  topped  out  when  the  two 
groups  went  to  conference  to  resolve  differ- 
ences. 

No  lon^r  This  year  the  Senate  committee 
was  the  driving  force  behind  Social  Security 
benefit  boosts,  a  sweeping  overhaul  of  the 
pr'.ate  pension  system.  Increases  In  federal 
welfare  payments  to  the  aged,  blind  and  dis- 
abled, new  regulations  governing  social  serv- 
ice payments  to  the  states  for  welfare  re- 
cipients and  refinements  in  the  taxpayer 
checkoff  plan  to  finance  future  presiden- 
tial elections 

A!l  Of  which  suggests  that  considerable 
changes  will  now  be  necessary  when  it  comes 


remains  more  conservative  and  small  state- 
oriented  than  the  Senate  as  a  whole,  but  the 
trend  clearly  Is  leftward. 

All  of  which  means,  according  to  some  Sen- 
ate insiders,  that  the  Finance  Committee  will 
continue  to  strike  out  on  its  own  whether 
the  House  likes  It  or  not.  At  the  same  time  U 
wUl  be  more  likely  to  sharply  alter  bills  It  re- 
ceives from  the  House 

Specifically,  this  probably  will  produce 
more  social  welfare  schemes,  including  at- 
teoipts  to  channel  more  funds  and  induce- 
ments to  the  working  poor,  such  as  the  re- 
cent Senate-approved  plan  to  give  a  tax  credit 
to  working  poor  families. 

In  the  crucial  area  of  health  care,  which 
Congress  may  take  up  next  year,  the  commit- 
tee Is  attracted  by  a  middle  ground  already 
advanced  by  Chairman  Long  and  Sen.  Abra- 
ham Rlblcoff  (D..  Conn.),  an  influential  lib- 
eral on  the  panel  This  $9-bUllon-a-year  plan 
would  have  the  federal  government  pick  up 
"catastrophic"  medical  costs  for  all  Income 
levels  and  provide  more  direct  aid  to  low  in- 
come families. 

Regarding  trade,  few  expect  the  Finance 
Committee  to  rubber-stamp  the  House-ap- 
proved blU  It  will  take  up  next  year.  Early  es- 
timates are  that  some  more  restrictive  trade 
provisions  could  be  written  Into  the  legisla- 
tion, with  the  President's  unprecedented  new 
authority  modified  somewhat  and  perhaps 
some  curbs  slapped  on  the  activities  of  mul- 
tinational corporations. 

To  be  sure,  in  the  key  area  of  taxation,  the 
Flnanc«  Committee  may  continue  to  take  a 
back  seat  to  Ways  and  Means.  Few  serious 
new  tax  proposals  are  floated  from  the  Sen- 
ate tax-writers  and  they  retain  an  image  of 
frequent  caterers  to  special  Interests. 

Technically,  the  finance  panel  never  does 
actually  initiate  legislation.  But  what  It  does 
do  Is  tack  key  proposals  onto  minor  measures 
sent  over  from  the  House  The  major  pension 
legislation,  tor  example,  was  added  on  an  un- 
tmportant  bill  making  some  Insignificant 
technical  tax  changes. 

Bouse  members  complain  that  such  addi- 
tions are  often  done  hurriedly  and  carelessly 
Practically  every  member  of  the  Ways  and 
Means  Committee  for  example,  says  the  pen- 
sion bill  Is  full  of  sloppy  legislative  mistakes. 
This  is  why  the  Senate  shouldn't  use  such  a 
"loophole."  they  say.  to  Infringe  on  ths 
House's  constitutional  duties. 

But  Sen.  Long,  a  33-year-Senate  veteran, 
shows  no  signs  of  bowing  to  House  pressures 
here  "I  went  on  the  Finance  Committee  not 
because  I  wanted  to  keep  things  from  hap- 
pening but  because  I  wanted  something  to 
happen."  he  recalls 

Ifs  this  activist  streak,  whether  It  be  for 
liberal  or  conservative  causes,  that  dlstln- 
gulahee  Russell  Long  from  many  earlier  fi- 
nance panel  chairmen.  When  he  took  over  the 
committee  In  196C.  he  Inherited  a  skeleton 
staff  with  no  real  experts  Today,  there  are 
about  a  doeen  first-class  staffers  Including 
specialists  In  taxes,  welfare.  Social  Security, 
health  care  and  trade.  (The  panel  also  usee 
the  staff  of  the  prestigious  Joint  Congres- 
sional Committee  on  Internal  Revenue  Taxa- 
tion ) 

Recently.  Chairman  Long  also  ha<«  become 
more  sensitive  to  spreading  power  around  his 
committee  a  little.  This  year,  for  exampl«>,  he 
bowed  to  pressure  and  set  up  six  subccnnmlt- 
tees.  marking  the  first  time  In  memory  the 
committee  has  had  such  subgroups.  (The 
Ways  and  Means  Committee  still  has  no  sub- 
committees.) 


Further,  Sen  Long  siiiriu  to  have  con- 
cluded reluctantly  that  ttm  oocnmlttse'a  com- 
position will  have  to  continue  to  move  closer 
to  the  liberally-Inclined  Senate  This  year,  he 
raised  no  fuas  when  Utwral  Sen  Walter  Mon- 
dale  ( D  .  Minn. )  was  added  to  tlie  committee, 
although  he  had  fought  the  Idea  previously. 
He  acknowledges  that  more  Northern  UbenOa 
of  the  Mondale  stripe  probably  wUl  fill  any 
upcoming  vacancies 

Sen.  Mondale.  along  with  more  veteran 
maint>er8  Abe  Rlblcoff  and  Sen  Oaylord  Nel- 
son (D  .  Wis.)— and  on  some  Issues,  freshman 
Sen.  Lloyd  Bentaeu  (D.  Texas) —provide  an 
InteUectual  force  that  llhsrals  lacked  before. 
"Russell  knows  that  on  almost  any  Issue  he 
Just  cant  Ignore  these  terribly  bright  liberals 
or  he  may  get  taken  on  the  floor. "  says  an- 
other Senator. 

8«n  Long  has  a  close  personal  and  profes- 
sional reUtlonship  with  Oaylord  Nelson  and 
often  works  with  Sen.  Rlblcoff  "This  com- 
mittee Is  becoming  more  broad -gauged." 
notes  the  Connecticut  Democrat.  "And  the 
fact  Is  that  Russell  himself  U  often  a  very 
broad-gauged  man."" 

Meanwhile,  the  seven  Republicans  on  the 
IS-man  committee  have  their  problems  The 
ranking  minority  member,  Utah's  Wallace 
Bennett,  la  a  highly  respected,  very  knowl- 
edgeable conaervatlve :  Clialrman  Long  tries 
to  work  closely  with  him  on  major  legislation 
even  though  they  sometimes  dlsat^ree  sharply. 

But  Sen.  Bennett  la  retiring  next  year.  The 
next  two  Republicans — Nebraska  s  Carl  Cur- 
tis and  Arizona's  Paul  Fannin — share  his  con- 
servaiLsm.  but,  according  to  insiders,  lack  his 
expertise  and  the  respect  he  generates. 
"These  guys  are  pettifoggers."  says  an  un- 
charitable committee  Democrat.  Some  OOP 
strategists  feel  OOP  leadership  on  some  Is- 
sues may  be  provided  by  two  able  Republi- 
cans with  the  least  seniority  on  the  panel, 
moderate  Bob  Packwood  of  Oregon  and  con- 
servative WUllam  Roth  of  Delaware. 

All  of  which  means  that  Russell  Long  usu- 
ally will  be  able  to  move  the  committee  at 
least  in  the  general  direction  he  desires 
"Rusaell  doesn't  have  much  t-ouble  forming 
either  a  moderate-conservative  or  a  liberal - 
conservauve  coalition. '•  says  one  member. 

NOT   BAST    TO   CATBOOUZX 

And  the  colorful  bayou  battler  is  anything 
but  easy  to  conventionally  categorize.  He's 
the  son  of  the  most  famous  Southern  popu- 
lUt,  the  late  Huey  (Klngflsh)  Long,  and  also 
la  the  darling  of  the  oU  and  gas  lobby  Few 
Senators  are  more  generous  In  vptlne  aid  for 
the  elderly  or  disabled,  yet  none  are  more 
eager  to  crack  down  on  alleged  welfare 
abuses.  He's  equally  efficient  arguing  for 
special  tax  breaks  to  aid  major  Industries  or 
for  public  flnanclng  of  campaigns  to  curb 
the  political  Influence  of  fat  cat  industrial- 
ists. 

Sleeted  to  the  Senate  when  he  was  only  30. 
Sen  Long  became  chairman  of  the  Plnance 
Committee  at  the  relatively  youthful  age  of 
4«.  Back  then,  in  the  mld-19«OB.  he  also  was 
the  Senate  Whip  and  clearly  the  rising  power 
In  the  Senate 

But,  beset  by  p>ersonal  problems,  he  Infuri- 
ated colleagues  by  waging  several  abrasive 
flghts.  began  drinking  heavily  and  gradually 
saw  his  Influence  erode  He  began  receiving 
frequent  setbacks  on  the  floor  on  Finance 
Committee  legislation,  was  dominated  by 
Wilbur  Mills  In  conference  committees  and 
lost  his  Whip's  Job  to  Ted  Kennedy  In  early 
IMS. 

Several  years  ago.  however,  the  downhill 
slide  stopped — somethlnR  close  associates 
date  from  his  remarriage  in  late  l!>e9  He 
curbed  the  drinking  and  renewed  his  atten- 
tion to  legislative  responsibilities  He  changed 
personal  style  as  well,  becoming  less  conten- 
tious and  more  aenatorlally  courteous  to  col- 
leagues (Even  BO.  he  remains  one  of  the 
truly  colorful  performers  left  In  the  Senate. 
Watching  Ruaaell  Long  recently,  arms  flail- 
ing, hla  voice  cracking,  and  his  mind  usually 


December  I'j,  iy7S 


CONGRESSIONAL  RECORD  —  SENATE 


4244 


racing  far  ahead  of  his  speech,  one  colleague 
noted:  "You'd  never  miss  It — that's  Huey 
Long's  son.") 

Whatever  the  case,  Sen.  Long's  Influence 
as  Finance  Committee  chairman  prottably  Is 
at  lUi  zenith  uow  If  the  aUlng  Wilbur  Mills 
retires.  "I  think  Russeli  9e«s  a  chance  to  pro- 
ject himself  as  the  congressional  leader  on 
great  issues  In  the  1970b,  and  I  think  he'll  do 
It,"  ventures  Sen.  Rlblcoff. 

To  achieve  this,  however,  the  Finance 
Committee  chairman  piribably  will  have  to 
shed  his  repuuuiiou  as  an  ardent  Toe  of  any 
tax  revision  and  demonstrate  aome  of  the 
vaunted  flexibility  that  has  marked  Mr 
Mills'  career.  "'Rxissell  Long  has  championed 
special  tax  breaks  for  many  vested  Interests, 
not  Just  the  oU  industry."  complains  Bob 
Brandon,  head  of  Ralph  Nader's  tax  group. 

The  Senator  still  receives  handsome  royal- 
ties from  his  interest  In  oU-produclng  prop- 
erties, but  his  views  probably  owe  more  to 
Loulslana"s  dependence  on  oil.  "The  oil  In- 
dustry employs  74.(XX)  people  in  Louisiana 
and  I"m  going  to  continue  to  look  after  my 
state's  Interest,"  he  proclaims.  (This  Isn't 
the  only  area  where  Sen.  Long  puts  Louisiana 
Interests  first.  Last  year  his  finance  panel 
rewrote  the  House-passed  revenue  sharing 
formula,  which  restilted  In  the  Bayou  State 
getting  about  50%  more  federal  funds.) 

Yet,  even  in  the  tax  area.  Chairman  Long 
Isn't  totally  predictable.  For  example,  he 
favors  a  fairly  stiff  tightening  of  the  mini- 
mum Income  tax.  even  though  this  could  hit 
some  of  the  oil  t>arons. 

A    rORMniABUC    FOftCX 

Whatever  policy  the  Louisiana  Democrat 
pushes,  he's  usually  a  formidable  force,  prac- 
tically everyone  concurs.  "We  don't  always 
agree  with  Russell  Long,  but  when  he's  with 
you  there's  nobody  better  to  have  on  your 
side. "  says  Fred  Werthelmer.  lobbyist  for  the 
citizens  group.  Common  Cause.  Common 
Cause  recently  worked  with  the  Senator  In 
the  unsuccessful  effort  to  get  public  financ- 
ing of  presidential  elections  through 
Congress. 

And  It's  usually  perilous  to  predict  which 
way  Russell  Long  will  turn.  Despite  his  rev- 
erence for  his  late  father,  Sen.  Long  says  he 
doesn't  quite  buy  Huey  Long's  famous  "Share 
the  Wealth"  program.  "I  think  you  can  raise 
poor  people's  income  without  taking  it  all 
from  the  rich,"  he  says.  Then,  with  a  twinkle 
in  his  eye,  Huey  Long's  son  quickly  adds;  "Of 
course,  if  It  took  my  vote  to  pass  It  [share  the 
wealth]  in  the  Senate  Id  probably  vote  for 
It." 


ments  of  those  who  participated  in  the 
celebration,  including  Mr.  Vinson's  re- 
sponse, I  ask  unanimous  consent  for  the 
printing  of  the.>^e  comments  in  lixe  Rec- 
ord, In  the  order  in  wiuch  they  aw^eared 
on  the  program. 

There  being  no  objection,  the  material 
was  ordered  to  be  printed  in  the  Record. 
as  follows : 

Caul  Vinson  Dat 

Whereas:  The  Honorable  CTarl  Vinson  has 
dedicated  his  life  to  serving  bis  country  and 
fellow  citizens  In  an  outstanding  manner; 
and 

Whereas :  Entering  Congress  as  its  youngest 
member  In  1914,  Carl  Vinson  quIclUy  estab- 
lished himself  as  a  great  leader  In  this  body, 
bringing  Unmenae  strength  and  integrity  to 
our  government;  and 

Whereas:  For  thirty  years  Congressman 
Vinson  was  Chairman  of  the  House  Armed 
Services  Committee  and  Its  predecessor,  the 
Naval  Affairs  Committee,  becoming  a  symbol 
of  our  national  defense;   and 

Whereas:  When  he  retired  after  a  half 
century  in  Congress,  Carl  Vinson  had  served 
longer  than  any  other  member  In  the  U.S. 
House  of  Representatives;  and 

Whereas:  Carl  Vinson  has  served  his  coun- 
try vrtth  distinction — his  leadership  In  the 
free  world,  his  country  and  his  state  un- 
precedented and  unequaled;  and 

Whereas:  November  18.  1973,  marks  the 
90th  birthday  anniversary  of  Carl  Vinson,  at 
which  time  many  of  our  citizens  will  pay 
tribute  to  this  great  man  in  Macon,  Georgia; 
now 

Therefore:  I,  Jimmy  Carter,  Governor  of 
the  State  of  Georgia,  do  hereby  proclaim 
the  day  of  Sundav,  November  18,  1973,  as 
"CARL  VINSON  DAY"  In  Georgia,  and  urge 
ail  our  cltlwns  to  Join  together  In  recogni- 
tion and  appreciation  of  the  wisdom  and 
dedication  of  this  great  and  good  man. 

Remarks  of  VS.  Sinator  HinMti.N  E 
Talmadce 
We  honor  a  man  today  of  m^jayttlstlnc- 
tlons — a  man  who  has  becom^-ti  veritable 
legend  In  his  own  time.  CJarl  Vinson  not  only 
is  a  great  statesman.  He  Is  unique.  He  Is  the 
first  p>er8on  in  the  history  of  our  Republic 
to  serve  60  years  In  the  United  States  House 
of  Representatives. 

He  Is  the  only  member  of  the  House  of 
Representatives  In  history  to  be  honored  by 
a  Resolution  of  the  House  for  his,  and  I  quote 
from  that  Resolution:  "incc«nparable  record 
—^^^^^m——^  "\  as  a  legislator,  his  manifold  contributions  to 

^        the  strength  of  our  country,  his  constant 

NINETIETH  BIRTHDAY  OF  FORMER — id  unimpeachable  devoUon  to  the  public 


CONGRESSMAN  CARL  E.  VINSON 

Mr.  NUNN.  Mr.  President,  on  Novem- 
ber 18,  1973,  a  celebration  was  held  in 
Macon,  Ga.  to  honor  the  90th  birthday  of 
former  Congressman  Carl  E.  Vinson,  and 
to  mark  the  100th  anniversary  of  the 
Walter  F.  George  School  of  Law  at  Mer- 
cer University. 

Hundreds  of  Mr.  Vinson's  friends,  from 
virtually  every  comer  of  this  Nation, 
gathered  in  the  small  Willingham 
Chapel  at  Mercer  University  to  honor  the 
man  who  served  longer  In  the  US.  House 
of  Representatives  than  any  other  person 
in  this  Nation's  history  Among  those 
present  to  pay  tribute  were  President 
Richard  M.  Nixon.  Senator  He^^man  E. 
Talmadce,  Congressman  Phil  M.  Lan- 
DRtTM,  and  Georgia  Gov.  Jimmy  Carter. 

I  am  certain  that  there  are  many 
Members  of  the  U.S.  Congress  who  recall 
with  great  affection  and  respect  the  life 
and  career  of  this  great  American.  With 
the  knowledge  that  many  Americans 
would  be  Interested  in  reading  the  com- 


Interest.' 

Carl  Vinson,  more  than  any  other  indi- 
vidual in  lilstory,  Influenced  and  guided  our 
nation's  defense  that  saw  us  victoriously 
•  through  two  World  Wars. 

As  Chairman  of  the  House  Armed  Services 
Committee  for  14  years,  and  as  Chairman  of 
the  old  Naval  Affairs  Committee  for  16  years 
before  that  Carl  Vinson  com^plled  a  record 
of  30  years  as  Chairman  of  a  standing  Com- 
mittee of  Congress  He  played  a  major  part 
In  developing  a  defense  system  that  made 
America  the  world's  supreme  .super  power, 
for  which  generations  of  freedom-loving 
Americans  and  generations  yet  unborn  are 
In  his  debt 

Carl  Vinson  came  to  the  Hotise  of  Repre- 
sentatives In  the  63rd  Congress  In  1914.  30 
Congresses  ago.  Woodrow  Wilson  was  in  the 
Whits  House,  and  after  him.  CTongressman 
Vinson  served  under  8  other  Presidents.  He 
was  confldan*  and  advisor  to  them  all  Dxu-- 
ing  the  time  that  Chairman  Vinson  presided 
over  hla  Committees.  Presidents  of  the  United 
States,  Cabinet  members.  Joint  Chiefs  of 
Staff,  high  ranking  generals  and  admirals 
came  and  went. 

But.  Carl  Vinson  was  always  there,  stead- 
fast In  his  devoUon  to  his  country  and  dedl- 


ca'L#cl  to  the  pru.clple  that  the  r:.!ted 
-■^'oa'-es  should  have  a  dereiiot  es".Abii&liment 
second  to  none  In  the  world  Cax;  Vinso:. 
same  u.  (>j:..gre66  when  the  SprU^field  rlSe 
was  aur  n&ilon's  prmcipa;  weapon  L'nder  r.^ 
.eaders.'-.ip,  v.ie  c<>uniry  s  delei^i*  e^-.ab.isr:- 
ment  evolved  irom  horse  anc  !:u.^'t'>  aa\-B  tt 
the  modern  era  o.'  the  Polarli  suoiiLaj-iiie  and 
interooniuien-.^.  bahisuc  nuBoile. 

Carl  \v.^:so:.  had  never  seen  a  battleship 
until  he  a.  jueved  prominence  tn  the  Con- 
gress. Yet,  he  was  a  founding  parent  of  the 
two-ocean  Navy,  which  became  vital  to  our 
nation's  survival  during  World  War  II. 

He  did  not  like  to  fly  in  airplanes.  Yet.  he 
was  a  forceful  and  persuasive  advcx^ate  of  an 
expanded  Uniied  btaieb  Kii  Furce.  wnen  it 
became  apparent  to  him,  in  his  charactensuc 
wisdom  and  foresight,  that  command  ol  the 
skies  m  the  modern  world  was  Just  as  im- 
portant as  command  of  the  seas  a  generation 
ago. 

Chairman  Vinson  was  an  astute  student  of 
world  affairs  and  mUltary  matters  Yet.  only 
once  in  ills  entire  lifetime  did  he  set  foot  out- 
side of  the  United  States,  and  that  was  when 
he  went  on  an  InspeCoion  trip  of  thit  Panacea 
Canal  Zone  In  the  early  1920's. 

Mr.  Vinson  used  to  say  Uiat  his  responsi- 
bilities In  the  House  of  Representatives  kept 
him  too  busy  to  go  travelling  all  over  the 
world.  And,  when  he  was  not  busy  In  Wash- 
ington, his  next  responsibility  was  to  get 
back  to  Georgia  among  his  friends  and  fami- 
ly, on  the  first  available  train. 

He  was  then  and  is  now  ^4111edgevlIle■s  and 
Baldwin  County's  favorite  son.  For  all  of  his 
Importance  in  Washington — he  talked  with 
Presidents  and  dismissed  admu-als  like  cabin 
boys — ^Mr.  Vinson  never  lost  touch  with  the 
people  of  his  District  of  Georgia  who  sent 
him  to  Congress  25  times.  He  believed  In 
sUylng  close  to  these  people  and  the  beloved 
soli  of  Oe<^la. 

Mr.  Vinson  was  known  by  the  mUitary 
establishment  as  "the  Admiral" — l>ecause  of 
his  early  affection  for  the  United  States 
Navy.  By  his  coUeagues  In  the  House,  some  of 
them  his  adversaries  from  time  to  time,  he 
was  known  as  the  "Swamp  Fox  " — because  of 
his  mas",erful  grasp  of  parliamentary  pro- 
cedure and  virtual  unerring  strategy  in  get- 
ting important  legislation  through  Congress. 

It  is  Interesting  to  note  that  Chairman 
Vinson  lost  very  few  legislative  battles.  One 
time  he  lost  was  when  he  urged  fortliicatlon 
of  the  Island  of  Guam  not  too  long  before 
the  Japanese  attacked  Pearl  Harbor.  As  It 
turned  out,  his  foes  on  that  bill  didn't  relish 
their  victory  very  long. 

Just  as  Chairman  Vinson  was  an  eager  and 
brilliant  student  of  world  affairs  and  mili- 
tary matters,  he  was  a  iULrd-<lrlvlng  head- 
master and  teacher.  They  had  over  on  ths 
House  side  what  was  called  the  "Vinson  Col- 
lege." Students  In  the  college  Included  of 
course  all  the  members  of  the  House  Armed 
Services  Committee — as  well  as  some  other 
very  Important  people  .  .  .  such  as  Lyndon 
Baines  Johnson,  who  served  as  a  fre.shman 
congressman  under  Chairman  Vinson  on  the 
Naval  Affairs  Committee  .  .  .  such  as  Ftank- 
lln  Delano  Roosevelt,  who  "studied"  imder 
Chairman  Vinson  when  he  was  Secretary  of 
the  Navy  ...  as  did  Dwlght  David  Eisen- 
hower, when  he  was  Supreme  Connnander  of 
Allied  Forces  In  Etirope. 

Someone  once  said,  and  very  correctly,  that 
Chairman  Vinson  possessed  more  foresight, 
more  wisdom,  more  understanding  of  mili- 
tary matters  than  one  oould  encounter  from 
wandering  through  the  Pentagon  for  a  year. 

The  people  of  Georgia,  of  course,  and 
especially  In  this  part  of  the  state,  know  Mr. 
Vinson  as  far  more  than  Hist  an  expert  on 
military  matters  and  parliamentary  strat- 
egist. Mr.  Vinson  is  known  and  loved  m 
Georgia  as  "Uncle  Carl." 

He  has  brought  credit  to  our  state — as  a 
Congressional  leader,  an  American  states- 
man, and  as  a  legendary  Institution — XbaX 


1-U^ 


tie  toepan  ot  history  have  not  yet  fuUy 
m««sur«d. 

C»rl  Vlnaon  embarked  upon  hla  career  be- 
fop»  most  of  us  here  were  even  bom.  He  set 
out  wltb  one  primary  goal — to  serve  his  state 
and  nation. 

He  achieved  this  goal  to  a  larger  degree 
than  ha«  any  oUier  omn  In  the  history  of  the 
United  State*. 

Uncle  Carl,  we  salute  you  on  your  OOth 
birthday  today,  and  we  hope  you  will  con- 
tinue to  give  us  the  benent  of  your  wise 
counsel. 


CONGRESSIONAL  RECORD  — SENATE  December  19,  1973 


Ijrr«ooucno»»  or  Cajil  Vinso.n  bt  Conouss- 
MAN  Pho.  M.  Land«um 
Ladles  and  gentlemen.  I  have  the  happy 
privilege  and  ver.-  high  honor  to  present  the 
oompoeer  and  the  conductor  of  a  legislative 
symphony— more  sensitive,  more  beautiful, 
and  more  comprehensive  than  any  in  our 
history — a  simply  magnlflcent  American. 

RxspoNs«  BT  Hon.  Casl  B.  Vinson 

Mr  President — Dr.  Hams — DlsUngulahed 
Quests — Ladles  and  Gentlemen: 

Plve  years  ago.  on  the  18th  day  of  No- 
vember 1968.  when  my  span  of  life  had 
reached  lt^85th  year.  President  and  Mrs. 
Johnson  ftvited  a  group  of  friends  to  the 
White  »™ise. 

Many  6f  my  colleagues  with  whom  I  had 
served  throughout  the  years  in  Congress, 
the  Armed  Services  Committee  and  Its  brU- 
Uant  staff.  mlUtary  personnel,  heads  of  de- 
partments of  government,  my  friends  and 
neighbors  who  lived  on  the  same  block  where 
I  lived  for  40  years,  and  life-long  friends 
from  Georgia  were  there.  It  was  a  most  de- 
lightful affair. 

After  my  namesake.  Carl  Snead.  had  blown 
out  the  candles  and  the  festlvitlee  had  begun 
to  subside.  President  Johnson  said  to  his 
guests.  "I  invite  each  and  every  one  of  you 
to  Join  Mi».  Johnson  and  me  at  the  LBJ 
Ranch  when  Carl  Vinson  reaches  his  90th 
year." 

Time   roUed   by — months   became  yean 

years  piled  upon  each  other,  and  now  and 
then  I  would  receive  a  communication  from 
some  good  friend  saying.  "I  wUl  see  you  at 
the  LBJ  Ranch  on  November  18.   1973  " 

But  fat«  decreed  otherwise — the  unc«r- 
talnty  of  life  broke  the  chain  of  events— for 
on  January  2and  of  thU  year  President  Lyn- 
don Balnea  Johnson,  that  great  and  distin- 
guished man.  Journeyed  to  "that  bourne  from 
which  no  traveler  ere  returns.'  and  passed 
Into  history  as  one  of  the  Nation's  most  out- 
standing Presidents 

A  few  months  thereafter,  unknown  to  me. 
some  of  my  good  friends  in  Washington  and 
here  at  home  picked  up  the  broken  chain  of 
events 

Dr  Hams  appointed  a  group  of  distin- 
guished men  to  formulate  plans  to  hav»  a 
Joint  affair  entwined  with  a  far  more  memor- 
able event— the  100th  anniversary  of  th« 
Mercer  School  of  Law. 

I  am  grateful  to  the  committee  which  has 
devoted  so  much  time  and  effort  In  organiz- 
ing this  celebraUon. 

I  can  think  of  no  more  slnoere  words  to 
express  my  appreciation  than  to  say  to  each 
member  of  the  committee,  "thank  you  from 
the  bottom  of  my  heart." 

It  Lb  impossible  for  me  to  exprsM  in  words 
my  gratitude  for  the  honor  you  pay  me  to- 
day. No  event  m  my  life,  and  no  event  In  my 
future  can  ever  equal  this  day 

When  I  look  upon  the  faces  of  those  who 
*re  here  today,  I  see  some  of  mv  good  friends 
who  were  at  the  White  House  Ave  yean  ago 
I  know  that  some  have  traveled  a  long  dU- 
tancs  and  I  want  to  thank  aU  of  you  for 
bstng  here 

A  man  la  wealthy  beyond  hla  grsatast 
dreams  when  he  has  friends  such  as  you 

I  am  highly  honored  to  have  been  pre- 
«nt«l  to  you  by  my  good  friend,  one  of  the 
Nation  8  leaders  in  Concreas.  The  Honorable 


Phfl  Landrum.  I  thank  him  for  bis  most  kind, 
oompllmantary.  and  laudatory  remarks  with 
reference  to  my  pubUc  service.  anQ  his  best 
wishes  to  nae  f or  many  happy  returns  of  the 
day. 

And  finally,  no  tribute  could  be  mors 
touching  to  me  than  that  whloh  is  paid  by 
the  presence  today  of  our  distinguished  and 
revered  President.  Richard  Nixon.  Since  the 
time  he  and  I  were  colleagues  lu  the  Con- 
gress a  quarter  of  a  century  ago,  I  have  ad- 
mired this  mans  ability,  his  courage  and 
Ma  pamotlsm.  I  have  set  a  high  value  on  his 
mendahlp  ever  since.  So  It  Is  a  special  privi- 
lege fw  me  today  to  be  able  to  say  thank  you 
Btr.  President,  for  redeeming  Lyndon  John- 
son s  promise  made  5  years  ago— that  of  giv- 
ing an  old  mend  a  Presidential  sendoff  into 
the  tffnth  decade  of  hta  life. 

So  here  today  In  the  eventide  of  my  life 
In  this  mellowed  old  chapel  hall  at  Mercer 
University  which  rekindles  old  and  wonderful 
memorlM.  I  greet  you  my  friends  with  deep 

When  one  reaches  his  90th  year  he  can 
mily.  on  bended  knees,  thank  Divine  Provi- 
dence. 

I  was  fortunate  to  have  parents  who  were 
strong  m  mind  and  body,  and  who  enjoyed 
ripe  ages  of  mld-80'8  and  the  thiesh-hold  of 
the  go's. 

Someone  once  said.  "To  know  how  to  grow 
old  is  the  master  work  of  wisdom,  and  one 
of  the  most  dlfflcult  chapters  In  the  great 
art  of  living."  " 

But  I  cannot  give  you  the  secret  of  lon- 
gevity, for  I  do  not  know  what  produces  It 
except  perhaps,  to  suggest  that  maintaining 
a  vigorous  pace  In  all  my  mental  and  physl- 
rt**^*^""'  ****  ^'*''"**  *  '^"^  Important 
However.  If  I  had  to  select  one  factor  that 
may  have  played  a  dominant  role  to  reach 
my  years.  I  would  name  the  chaUenge  of 
Public  Service 

When  one  serves  a  busy,  progressive.  In- 
telligent, and  Ood-fearlng  Georgia  constitu- 
ency such  as  I  did  for  80  consecutive  years 
in  various  State  and  Federal  ofBces.  he  has 
so  many  other  people's  needs  and  problems 
on  his  mind  that  he  does  not  have  the  time 
to  worry  about  his  own  physical  weU-belng 
or  even  to  count  his  own  advancing  years 
A  lifetime  spent  In  such  work  furnishes 
proof  of  the  wise  men's  saying— that  'the 
harvest  of  old  age  is  the  recollection  and 
abundance  of  blessings  previously  secured  " 
Among  these  blessings  which  will  linger 
with  me  through  my  life  is  the  hand  of 
friendship  that  aU  of  you  have  extended  to 
me  throughout  the  years. 

A  memorable  event  brings  us  together 
today  to  celebrate  the  100th  anniversary  of 
the  Law  School  at  Mercer  University  that 
was  established  In  1873.  which  Is  one  of  the 
oldest  and  most  distinguished  law  schools 
In  the  South  and  which  Is  now  so  appropri- 
ately named  the  Walter  P  George  School  of 
Law.  after  that  great  and  outstanding 
Georgia  Senator. 

I  can  recall  that  as  a  young  man  my  one 
great  ambition  was  to  become  a  lawyer,  and 
one  of  the  most  Important  decisions  I  have 
ever  made  In  my  life  was  to  attend  Mercer 
School  of  Law. 

Perhaps  it  was  the  admonition  of  one  of 
the  greatest  patriots  In  the  history  of  our 
Nation.  Benjamin  Franklin,  which  sent  me 
In  that  dlrecaon  of  the  Mercer  School  of  Law 
Franklin's  wise  counsel  to  the  youth  of 
America  was  this:  "If  a  man  empties  hU 
purse  In  his  head  no  man  can  take  It  away 
from  him.  an  investment  of  knowledge 
always  pays  the  best  Interest." 

I  can  truly  say  whatever  success  I  have 
attained  in  life  can  be  attributed  In  large 
measure  to  the  sound  foundation  in  law 
which  I  received  In  this  school  of  law  at 
Mercer  University. 

ThU  school's  beneficial  Influence  upon  the 
Judicial  and  political  life  of  the  South  and 


the  entire  Nation  has  been  profound   and 
far-reaching. 

My  mind's  eye  today  ranges  over  the  pro- 
cession of  the  distinguished  Georgians  who 
have  served  the  Bute  and  Nation  in  the 
legislative  halls  and  Judlclyy  who  have 
passed  through  the  portals  of  this  great 
law  school. 

These  alumni  have  left  their  footprints 
In  every  place  where  they  have  resided.  They 
were,  and  are.  leaders  In  their  communities 
and  their  Judicial  labors  and  legislative  fore- 
sight have  contributed  much  to  the  present 
greatness  of  the  State  and  Nation. 

In  quantity  of  enrollment.  Mercer  Is  by  no 
means  as  large  as  some  other  schools  of  law 
in  the  South;  nevertheless  it  has  become  re- 
nowned as  a  school  whose  quaUty  of  teach- 
ing Is  unsurpassed. 

Here  Is  some  evidence  of  that  quality 

Two  Justices  of  the  Fifth  U3.  Court  of 
Appeals. 

Five  Federal  District  Judges. 

Seven  Georgia  Supreme  Court  JusUoes. 

Five  Georgia  Court  of  Appeals  Justices. 

Twenty-sU  Georgia  Superior  Court  Judges 

Six  Governors  of  Georgia. 

Two  Governors  of  Alabama. 

One  Governor  of  Texas. 

One  Governor  General  of  Puerto  Rico 

Pour  U.S.  Senators. 

Eleven  Congressmen. 

In  all,  there  are  more  than  1.500  alumni. 
Almost  to  a  man.  those  alumni  are  men  of 
vision  who  look  forward— fine  Americans, 
whose  love  of  country  and  whose  patriotism 
run  deep. 

Among  their  ranks  are  distinguished 
lawyers  whose  forensic  oratory  rings  dally 
down  the  corridors  of  the  temples  of  Justice- 
distinguished  Judges  whose  dally  decrees 
temper  Justice  with  mercy;  distinguished 
public  servants  whose  voices  are  heard  in 
the  legislative  halls  of  the  land  and  in  chan. 
cellerles  around  the  world. 

How  weU  do  I  recall  when  there  were  five 
alumni  of  this  school  serving  In  Congress  at 
the  same  time. 

The    Great    Statesman.    Walter   F.    George 

That  incomparable  Eugene  Cox.  my  class- 
mate '  ^^ 

That   learned   lawyer.   Malcolm  Tarver 

That  brUUant  Jurist.  Carton  Mobley  who 
today  is  Chief  Justice  of  the  Georgia  Supreme 
Court. 

and  myself 

Mercer  University  was  established  by  the 
GeorgU  Baptist  Convention  In  1833  It  Is  a 
private  Institution  and  from  its  founding 
has  always   had   a  high   academic   standing 

It  was  moved  from  Psnfleld  to  Maoon  In 
1871  and  became  an  Integral  part  of  the  his- 
tory, tradition,  future  life,  economy,  cultural 
and  moral  sUbUlty,  not  only  of  the  Macon 
area  but  also  of  aU  Jllddle  Georgia. 

Mercer  Is  no  longer  a  local  Institution  It 
has  a  national  reputation  for  educating 
young  men  and  women  in  the  best  of 
Christian  tradition 

There  are  here  today  students  from  37 
different  sUtes  and  several  foreign  countries 

For  the  faU  term  of  1973.  the  Walter  F. 
George  School  of  Law  received  approximately 
1.000  applications  from  new  students,  of 
which  one-half  were  from  out  of  state  Pres- 
ent classroom  faculties  and  competitive 
sUndards  permitted  the  enrollment  of  only 
87  of  this  number  making  a  total  law  school 
enrollment  of  approximately  347 

I  am  pleased  to  note  that  the  law  Sc.^  ool 
Is  number  one  on  the  priority  list  •..  expand 
lu  classroom  facilities  to  admit  more  of  these 
deserving  applicants,  under  the  Unlversltrs 
6-year.  Ma.000,000  fund-rauing  campaign 
aptly  labeled  "an  investment  in  human  re- 
sources." 

Mercer's  dynamic  expansion  in  plant  facill- 
ties  and  enroUznent  is  due  to  the  leadership 
of  Dr  Hufus  Hams  who  U  In  my  opinion 
ooe  of  the  most  dlsUnguiahed  educators  In 

A«Sia^^iA.aM 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42449 


But  all  of  our  advances  In  education,  all 
of  the  learned  niei.  who  have  graduated  from 
this  law  school  and  other  colleges  and  uni- 
versities throughout  the  land,  all  of  the 
other  bieaslngs  we  seek,  will  avail  Americans 
nothing — If  we  allow  ourselves  to  become  a 
second-class  Nation  insofar  as  our  national 
security  Is  concerned. 

Maintaining  a  strong  defense  Is  the  most 
TKal  challenge  that  faces  this  generation. 

We  hear  the  complaints  of  an  increasing 
vocal  minority  which  does  not  like  impending 
defense  dollars.  We  even  hear  ."scme  who  at^ 
foolish  enough  to  think  natlonai  defense  is 
unnecessary.  But  with  &U  due  respect.  I 
believe  that  those  who  feel  this  way  ignore 
history  and  gamble  with  our  Nation's  very 
survival. 

In  two  thousand  three  hundred  years  of 
recorded  history  there  have  been  only  two 
hundred  and  seventy  years  of  peace.  The 
lessen  Is  plain:  We  must  always  be  prepared 
for  war.  for  only  In  this  way  can  we  avoid  war. 

It  has  been  my  good  fortune  in  life  to  play 
a  role  in  developing  the  defense  structure  of 
this  Nation.  I  believe  we  are  today  the 
strongest  nation  In  the  world,  but  I  also 
believe  that  we  are  In  danger  of  losing  that 
superiority.  I  have  lived  a  fuU  life  In  a  free 
nation — and  for  this  I'm  very  grateful. 

Our  President,  who  honors  us  all  with  his 
presence  at  this  ceremony  today,  has  done  as 
much  as  any  man  alive  over  the  past  several 
years  to  educate  all  Americans  in  the  para- 
mount necessity  of  keeping  this  country 
second  to  none  in  our  national  defense. 

He  had  also  provided  strong  leadership  in 
opening  a  new  era  of  negotiation  and  a  new 
hope  for  lasting  peace  among  the  great 
powers. 

He  had  the  vision  It  took  to  visit  Peking 
and  Moscow,  and  the  stature  It  took  to  look 
those  Communist  leaders  square  in  the  eye 
when  he  got  there. 

He  had  the  backbone  It  took  to  lead 
America  out  of  the  Vietnam  war  not  with 
disgrace  but  with  honor,  and  to  bring  our 
prisoners  of  war  safely  home. 

At  the  same  time,  he  Is  a  President  who 
knows  that  peace  does  not  mean  weakness. 

He  has  stood  firm  against  the  pwessuree  to 
cut  our  strategic  weapons  or  our  troop 
strength  overseas  without  mutually  nego- 
tiated cuts  on  the  other  side. 

He  has  Insisted  that  Congress  must  never 
send  any  President  to  the  conference  table 
as  head  of  the  second  strongest  power  In  the 
world. 

So  my  friends,  on  my  90th  blrthdav  and  the 
100th  anniversary  of  this  Law  School.  X  leave 
you  with  a  prayer  in  the  words  of  Shakes- 
peare: "Oh  Lord,  who  lends  me  life,  lend  me 
a  heart  replete  with  thankfulness." 

I  thank  you. 

Remarks  or  thx  Presidint 
Dr.  Harris  and  all  of  the  distingtUshed 
guests  who  are  present  here  today  on  this 
historic  occasion,  I  am  honored  to  be  here 
for  the  two  reasons  that  have  been  men- 
tioned so  well  and  so  eloquently  by  rU  of  the 
speakers  who  have  preceded  me  First  be- 
cause It  Is  the  100th  Annlversarv  of  a  great 
^ucatlonal  Institution,  the  Law  Schfx>l  of 
Mercer  Umverslty.  now  the  Walter  George 
Law  School;  and  second,  because  It  Is  the 
90th  birthday  of  a  man  who  has  served 
longer  In  the  House  of  Repre.sentatlves.  in 
the  Congress,  than  any  man  In  our  history. 
and  one  who  is  a  legendary  figure  for  those 
who  did  know  him.  and  one  who  Is  a  loved 
figure  for  those  like  myself  who  had  the 
privilege  to  know  him 

Now,  In  view  of  the  fact  that  those  two 
events  are  being  celebrated  simultaneously. 
I  expected  that  we  w  ild  probafclv  have  a 
very  good  crowd  today,  and  the  chapel,  of 
course.  Is  fvill  However,  I  al.so  know  that 
this  Is  Atlanta  Palcon  t-errltory.  and  so  when 
I  was  at  the  airport.  I  asked  one  of  the  peo- 


ple there — and  there  w^s  quite  a  big  crowd — 
how  come  t.'.ey  were  o'jt;  why  weren't  they 
watching  the  football  game?  And  t.hev  said. 
"They    are    going    to   play    tomorrow    n'.ght." 

Well,  as  you  know.  I  air.  somewhat  of  a 
football  buff,  probably  because  I  never  mAde 
the  team,  even  at  Whlttler  but  I  followed 
the  Falcons,  and  I  guess  you  would  call  them 
the  comeback  team  of  1972  They  lost  their 
first  three  and  they  have  won  their  last  six. 
I  have  been  thinking,  I  oupht  to  have  a  talk 
with  Norm  Van  Brocklln  and  find  out  how 
they  did  it. 

With  regard  to  this  law  school,  when  I  was 
speaking  to  Dr.  Harris  earlier,  he  said  It  was 
a  small  law  school,  and  I  was  thinking  of  my 
own  law  school  at  Dtike  when  I  wa:^  th.ere 
in  the  middle  of  the  depression,  and  when 
my  roommate  was  a  boy  from  Macon.  Geor- 
gia, Bill  Perdue,  who  was  first  In  our  claas. 
the  highest  record  thai  was  ever  made  by 
anybody  who  went  to  the  Dtike  Law  School. 
and  there  were  only  106  in  the  Duke  Law 
School  total  In  the  years  '34  to  '37.  So  In 
my  view,  the  size  of  the  law  school  Is  not 
what  Is  Important:  It  Is  Its  quality. 

Mr.  Vinson  has,  of  course,  recounted  what 
this  law  school  produced  In  terms  of  four 
Senators  and  11  Congressmen  and  10  Gov- 
ernors, six  of  them  Governors  of  the  State 
of  Georgia,  and  45  Judges  of  various  courts, 
and  that  Is  a  great  record  for  any  law  school, 
large  or  small. 

But  a  law  school  means  more,  simply,  than 
whether  It  produces  public  figures  of  quality. 
A  law  school  means  the  character  of  the 
young  men  and  the  young  women  who  go 
through  those  three  years  and  then  go  out 
Into  public  life  and  what  they  contribute, 
and  I  think  Mercer,  by  the  very  fact  that  It 
has  produced  the  public  figures  of  such 
quality  that  I  have  mentioned,  also  over  Its 
100  years  produces  that  great  character  that 
affects  every  community,  whether  that  law- 
yer Is  a  very  big  man  in  the  community  or — 
and  Just  as  Important — Just  a  lawyer  han- 
dling people's  cases,  rich  or  poor,  each  of 
them  deserves  the  honor  and  any  law  school 
that  produces  them  deserves  honor. 

I  think  It  Is  very  appropriate  It  is  named 
the  Walter  George  School  of  Law.  As  Carl 
Vinson  was  speaking,  I  was  thinking  of  my 
first  days  in  the  House  of  Representatives 
back  In  1947.  and  I  remember  that  usually 
there  wasn't  much  attention  paid  to  sj^eak- 
ers,  and  Phil  Landrum  says  It  Is  the  same 
today;  they  don't  pay  much  attention.  But 
I  always  remembered  there  were  two  men 
who.  when  they  spoke,  the  chamber  filled. 
One  was  Jim  Wadsworth.  They  always  came 
to  hear  him,  from  New  York.  And  the  other 
w£is  Carl  Vinson. 

TTie  reason  they  came  was  not  because 
these  two  men  always  agreed,  although  they 
always  did  agree  on  matters  of  national  de- 
fense, but  because  they  were  the  giants  of 
the  House  in  those  days  There  were  others 
that  were  giants,  but  these  two  seem  to  loom 
above  all  the  rest. 

And  In  the  Senate,  the  law  school  that 
bears  the  name  of  Walter  George  also  has 
that  same  distinction,  because  I  recall  In 
the  days  that  I  served  in  the  United  Stat.rs 
Senate,  and  later  presided  over  It,  that  the 
Senate  rhamber  was  usually  empty,  and  for 
good  reason  The  speeches  really  were:.'t 
worth  listening  to  They  were  worth  reading, 
but  not  worth  listening  to,  Bi:t  there  were 
two  men  who  filled  that  chamber  in  those 
days  almost  Inevitably  One  '.s-as  Robert  Taft 
and  the  other  was  Walter  George,  and  when- 
ever those  men  rose  to  their  feet,  the  word 
wotUd  go  around  In  the  cJoak.'ooms  and 
through  the  ofBces.  and  the  chamber  would 
fill.  They  didn't  always  agree,  and  they  were 
very  different  In  their  approach.  Taft  with 
his  pithy,  terse,  sometimes  people  thought, 
even  rather  brittle  speech,  but  yet  going  to 
the  heart  of  every  question,  and  Walter 
George,  with  that  magnificent  background 
which  comes  from  centuries  of  being  taught 


eloquence  of  the  great  Southern  statesmen 
So  if  I  were  In  the  Mercer  Law  Scho-  1.  or 
on  Its  faculty.  I  would  be  proud  to  be  here 
not  only  because  It  Is  a  fljie  law  school  but 
because  it  bears  the  name  of  such  a  very 
great  man  who  served  the  State  of  Georgia 
and  served  his  Nation  so  well. 

And  now  comes  the  part  of  my  remarks 
that  have  to  do  with  Carl  Vinson.  Actually, 
I  had  a  very — not  very  long,  but  I  thought 
appropriately  long  speech,  and  as  the  various 
speakers  went  along  I  began  to  scratch  it 
out  because  everything  I  wanted  to  say  about 
Mr.  Vinson  had  tJready  been  said  more  elo- 
quently than  I  could  possibly  say  It. 

But  there  is  one  thing  that  was  not  said. 
A  great  deal  of  attention  has  been  paid 
to  the  fact  that  Carl  Vinson  was  a  man  who 
stood  for  strong  national  defense.  He  was 
Mr.  Armed  Sen-Ices,  he  was  Mr.  Navy,  he 
was  Mr.  American,  he  was  Mr.  Congressman. 
He  was  all  of  those  things,  but  the  em- 
phasis on  his  life  was  primarily  that  of 
strength,  military  strength.  He  must  not  be 
Just  remembered  and  thought  of  that  way 
because  Carl  Vinson  was  a  broad-gauged 
man. 

There  are  men  In  the  House  and  the  Sen- 
ate who  think  solely  In  terms  of  strength 
by  Itself  Is  enough:  if  America  Is  strong 
enough,  we  don't  have  to  worry  about  our 
diplomacy  and  we  don't  have  to  worry  about 
what  we  have  In  the  way  of  national  char- 
acter; It  Is  that  military  strength  that  we 
need  that  will  keep  the  peace  and  perhaps 
win  the  wars. 

But  a  young  Congressman  came  to  the 
Hotise  of  Representatives  as  the  youngest 
Member  of  the  Congress  v.'hen  he  came,  30 
years  of  age,  Carl  Vinson  of  Georgia. 

In  his  first  speech,  listen  to  what  he  said: 
"I  devoutly  hope  that  the  casting  of  every 
gun  and  the  building  of  every  ship  will  be 
done  with  a  prayer  for  the  peace  of  America. 
I  have  at  heart  no  sectional  nor  political 
Interest  but  only  the  Republic's  safety." 

In  those  words  we  capture  the  life  of  a 
very  great  man.  "I  have."  he  says,  "at  heart 
no  sectional  nor  political  interest."  He  served 
eight  Presidents,  four  of  them  Republi- 
cans, four  of  them  Democrats.  He  had  the 
confidence  of  every  one  of  them  and  he 
sen-ed  each  one  of  them  as  loyally  whether 
they  were  of  his  party  or  the  other,  and  it 
Is  that  kind  of  ser%-lce  which  puts  America 
above  party  that  he  represents  and  that 
America  can  always  use  today. 

And  then,  "the  building  of  every  ship, 
the  casting  of  every  gun  will  be  done  with 
a  prayer  for  the  peace  of  America."  I  thought 
as  he  was  speaking  that  we  could  be  thank- 
ful for  a  lot  of  things  today;  thankful  for 
the  fact  that  our  young  men.  for  the  first 
time  In  25  years,  are  not  being  drafted  for 
the  .\rmed  Services.  They  can  make  the 
choice,  and  we  hope  many  will,  to  serve  their 
country  In  peacetime  as  volunteers 

We  can  be  thankful  that  for  the  first  time 
In  12  yeaj-s  .Vmerlca  is  at  peace  a-ith  every  na- 
tion la  the  world;  that  for  the  £r.-;t  time  In 
eight  years  all  of  our  prisoners  of  war  are 
home,  and  that  we  are  laeglnnlag  to  maJte 
progress,  we  believe,  toward  building  a  struc- 
ture of  peace  t.hat  is  not  Just  limited  to 
Southeast  .A.sia  and  Vietnam,  an  :m.portant. 
but  not  critical  part  of  the  world  not  ,'M.<;t 
the  Mideast,  which  is  a  very  important  and 
possibly  a  more  critical  p&.-t  of  the  world 
t.han  Vletnftjr.,  and  not  just  E^Jrope  which 
is  important  and  potentially  an  aj-ea  where 
confrontation  would  lead  to  the  dL'ia.ster 
that  all  of  Its  are  trying  t^^  avoid  but  to  biald 
the  kind  of  a  peace  in  the  wou'-ld  which  will 
cover  all  of  the  world, 

I  have  always  felt  that  It  was  wrong  t^ 
be  Asia  first  or  Furr>pe  first.  I  have  always 
thotight  it  wTong  to  think  Just  of  otir  ovm 
nation,  except  as  it  relates  to  our  living  in 
the  whole  world 

The  world  ha^  t>ecome  very  small  In  those 
years  that  Oi^^  Vinson  has  served  In  the 
Congress   of  imi   United    States    The    world 


424o0 


CONGRESSIONAL  RECORD  —  SENATE 


ti«3  become  much  smaller  Ln  the  years  vben 
he  ftrst  advocated  the  two-oceaa  navy.  To- 
day, whether  it  Is  half  way  around  the  world 
to  the  People's  BepoibUc  of  China  In  P»kln«. 
or  a  third  of  the  way  around  the  world  in 
the  Kremlin  In  Moecow,  or  wherever  we  go. 
we  must  realize  that  there  caniiot  oe  real 
peace  in  the  world  unless  there  is  developed  a 
structure  of  peace  which  covers  not  only  the 
small  nations,  but  particularly  the  great  pow- 
ers that  have  the  key  to  peace  or  to  war  In 
their  hands  and  that  is  what  strength  Is  all 
atx>ut.  > 

I  Itnow  that  many  think  that  when  the 
President  of  the  United  States  or  Herman 
Talmadge.  on  this  platform,  or  Eddie  Hebert 
out  there  in  this  audience,  or  Phil  Landrum. 
or  Carl  Vinson,  any  of  us.  talk  about  a 
strong  America,  and  let's  not  be  number  two. 
there  is  the  thought  that  that  ts  Jingoism. 
Who  cares  whether  w*  are  number  one 
In  arms?  I  will  tell  you  who  care :  People 
In  every  small  and  weak  nation  In  the  world, 
because  without  America  and  Its  strength,  no 
small  nation  would  have  a  chance  to  sur- 
vive today.  That  is  what  It  is  aU  ai)out. 
I  am  not  suggesung  that  America  should 
be  the  world's  policeman. 

I  am  not  suggesting  that  whenever  there 
Is  a  problem,  aa  there  was  In  Kcrea  and  then 
m  Vietnam,  that  America  Is  the  nation  that 
must  go  to  the  rescue  of  these  small  nations. 
I  am  only  saying  this:  that  in  a  world  where 
there  Is  nuclear  power,  and  in  a  world  where 
there  are  superpowers,  two  In  existence  and 
one  cona.ng  along  very  fast,  the  People's 
Republic  of  China,  we  must  not  leave  the 
pcaltlon  of  leadership  to  other  nations  with- 
out having  the  balance  that  Is  needed,  so 
that  they  Will  see  that  their  Interest  wUl 
be  served  by  not  using  that  enormous  power 
that  they  have,  either  for  the  purpoee  of 
conquest  without  war.  or  even  with  war 
Itself 

I  am  not  suggesting  here  that  Mr  Brezh- 
nev want*  war.  or  that  Mr.  Mao  Tse-tung 
or  Mr  Chou  En-lal  wants  war  I  am  only 
saylne  this:  that  reading  the  pages  of 
history  when  a  vacuum  is  left  and  when 
there  Is  a  great  power  with  no  other  power 
to  balance  It.  then  a  very  dangerous  situa- 
tion develops  In  terms  of  a  threat  to  the 
peace  cf  the  world. 

And  looking  at  the  United  States  and  all 
of  the  criticism  we  have  taken  for  our  role 
In  Korea  and  then  In  Vietnam,  and  even 
In  other  times,  we  can  be  thankful  for  this: 
Our  your.g  men  have  gone  abroad  In  four 
wars.  They  have  fought  bravely.  They  have 
died.  But  we  have  never  gone  in  terms  of 
conquest  We  have  never  gone  to  seek  ter- 
ritory. We  have  never  gc.-.e  to  break  the 
pea?e  We  have  always  gone  to  keep  the  peace 
We  hive  never  gone  to  destroy  freedom  We 
have  always  gone  to  defend  freedom 

Mistakes,  yea.  w*  have  made:  perhaps  in 
the  conduct  of  the  wars,  perhaps  in  the  con- 
duct of  foret^  policy  before  thev  ever  came 
about.  But  we  can  be  proud  that  the  United 
States  m  this  century  is  a  nation  that  la 
dedicated  to  peace,  and  that  the  world  needs 
as  a  strong,  powerful  nation,  because  we  do 
stand  for  peace  and  wOl  work  for  peace 
whenever  the  case  ever  arises. 

Looking  ahead  to  the  year  2000.  and  It  la 
verj-  dlfllcjlt  to  look  much  beyond  that  but 
I  think  there  la  a  better  chance  than  there 
haa  been  since  World  War  II  that  beoauae 
the  relationships  which  Carl  Vinson  has 
spoken  to  that  we  have  established  with 
countries  with  whom  we  have  nothing  in 
common  as  far  aa  Ideolo^  is  concerned— in 
fact,  we  differ  completely  with,  Chou  En-lal 
Mao  Tae-tung,  Mr.  Breshnev,  Podgorny  and 
their  coUea^es— but  because  of  the  Initia- 
tives we  have  taken,  we  may  be  establishing 
the  pattern  which  wUl  mean  that  the  great 
nowers  will  recognize  that  the  risk  of  war  la 
too  great  for  them  to  engage  in  adventurtem 
In  any  part  of  the  world,  and  that  the  bene- 
flta  of  peace,  on  the  oth«r  side,  are  so  much 


December  19,  19?  J 


greater    that    we    should    use    our    strength 
for  peace  rather  than  for  war 

Let  me  say  Just  one  personal  note.  I  am 
known  as  an  antl-Communlst.  and  I  earned 
that,  and  I  suppose  most  of  the  people  m 
this  audience  would  say.  well.  I  am  against 
the  Communists  But  let  me  say,  I  ki  ow  the 
Russian  people 

They  are  strong.  They  are  vigorous.  They 
are  fine  people.  I  know  the  Chlnefe  people 
and  whether  they  are  on  Mainland  China 
or  Taiwan  or  In  Bangkok,  where  there  are  a 
couple  million  of  them,  or  In  Manila  where 
there  are  a  million.  They  are  sophisticated, 
with  layer  on  layer  of  history  behind  them, 
ar.d  also  with  an  ability  to  give  much  to  the 
world,  and  I  want  a  world — I  want  a  world  for 
these  young  people  that  we  have  heard  out- 
side a  few  moments  ago  In  which  not  oily 
t'ley  wont  have  to  be  drafted,  not  only  they 
wont  have  to  go  to  war,  but  a  world  In  which 
they  can  work  with  their  young  colleagues 
In  Russia,  m  China,  In  LaUn  America,  In 
Africa,  to  And  the  answer  to  such  critical 
questions  as  how  do  we  avoid  cancer;  to 
find  the  answer  to  such  critical  O'lsstlons 
that  we  are  faced  with  In  t^e  ♦'eld  of  energy 
and  a'l  of  thr-t:  the  answer  to  h-^-x  v\e  can 
work  together  to  make  the  world's  environ- 
ment better 

I  am  not  suggesting  that  It  is  going  to  be 
easy  and  I  am  not  sugges-l':g  'hat  because 
we  settled  the  M:dea«!t  conflict,  momeiitarily 
a'  least,  that  we  can  expect  that  pet.ple  who 
have  hated  each  other  for  thousands  of  years 
are  now  going  to  start  to  love  each  other. 
But  I  do  know  this: 

With  the  kind  of  po'»er  that  we  have  with 
the  kind  of  power  that  exists  in  other  nations 
across  this  globe,  and  can  exist  in  others. 
It  Is  es-'-r-tlal.  If  civilization  survives,  that 
America  remain  strong  enough  that  our  voice 
will  be  respe-tei  so  that  we  can  play  a 
peacekeeping  role  because  a  war  is  unthlnk- 
ab!e  in  the  present  context  In  which  we 
presently  live 

And  that  brings  me  now  to  Carl  Vinson 
again  He  was  for  strength  alwavs  in  hts  life, 
and  America  can  be  thankful  that  because 
of  what  he  str^od  for  we  were  strong  enough 
to  have  handled  World  War  I,  World  War  II. 
Korea,  Vietnam,  with  military  strength  that 
was  necessary:  to  have  handled  the  recent 
airlift  which  avoided  what  could  have  been 
<i  very  dlfflctUt  situation  in  the  Mideast  and 
helped  to  avoid  an  American  Involvement  In 
the  Middle  East  All  of  these  things  he  con- 
trlhTjted  to 

«.nr|  a  monument  must  be  built  to  this 
man.  must  be  left  to  him.  We  buDt  part 
of  It  today  with  this  ceremony  when  we 
honor  him  and  the  great  law  school,  the 
Walter  George  Law  School 

He  would  not  want  a  monument  built  for 
himself  to  be  there  In  Washington.  I  dont 
know.  I  have  never  seen  him  on  a  horse.  I 
dont  know  how  he  would  look  on  that  kind 
of  a  monument   (Laughter) 

But  next  to  his  country,  and  next  to  bis 
State  of  GeorgU.  Carl  Vinson  loved  the  Navy 
mo?t.  and  so  I  have  an  announcement  to 
make  today  I  have  discussed  with  Chairman 
John  Sten-.Ja  of  the  Armed  Services  Commit- 
tee of  the  Senate,  and  Congressman  Ed 
Hubert,  the  Congressman  from  Louisiana, 
the  Chairman  of  the  Armed  Services  Com- 
mittee of  the  House,  and  their  counterpart*, 
a  propoaal.  and  they  have  given  me  permis- 
sion, because  we  must  do  this  thing  Jointly, 
to  make  this  announcement  today 

Aa  you  know,  we  have  Just  begun  to  de- 
velop nuclear  carriers  The  first  one  was 
named  the  Et'tenhower.  the  second  one  wma 
named  the  Vimltz.  the  great  rAval  Com- 
mander of  World  War  n.  The  third  Is  Juat 
beginning,  and  it  win  be  named  the  Carl  M 
Vinson. 


THE  .\RAB-ISRAELI  W.^R 
Mr.  MONDALE.  Mr.  Pre«ldent.  I  would 


llJte  to  call  to  the  attention  of  my  col- 
leagues a  moving  and  thouishlful  letter 
written  by  a  25-year-old  Israeli  soldier 
after  he  arrived  home  from  the  most 
recent  Arab-Israeli  W£ir. 

In  poignant,  personal  terms  he  is  able 
to  describe  the  terrible  tragedy  of  vrar. 

He  writes: 

It  Is  difflcult  for  me  to  believe  that  I  have 
passed  through  four  ward  since  my  birth.  24 
years  ago.  Pour  wars  In  25  years — Isn't  It  too 
much  for  a  young  man? 

Pour  wars  is  Indeed  too  much  and  I 
hope  that  the  Geneva  negotiations  will 
result  in  a  lasting  peace  settlement 
achieved  by  the  Israelis  and  Arabs  them- 
selves. 

Mr.  President,  I  ask  unanimous  con- 
sent that  this  letter  be  printed  In  the 
Record.  ^ 

Then'  being  no  objection,  the  letter  was  ' 
ordered  to  be  printed  In  the  Record,  as 
follows : 

NOVEMBES   6,    1973. 

Senator  WALTm  P.  Mowdaxje, 
US.  Senate, 
Washington,  DC. 

Dka*  Sekator  Moitoale:  Shalom!  How  are 
you  and  your  family?  I  was  planning  to  an- 
swer your  letter  a  long  time  ago  But.  aU  of 
a  sudden  a  war  broke  out  In  my  country 
I  was  called  to  the  Army  and  unable  to  write 
during  those  "hard  days".  Today  Is  the  first 
time  I  have  come  home  for  a  few  hours  since 
the  war  started.  Although  I  am  very  tlrwd  I 
feel  like  I  must  write  to  you. 

First  of  aU  I  want  to  thanJc  you  for  the 
warm  letter  you  sent  me  on  the  occasion  of 
my  wedding.  My  wife  and  I  appreciated  It 
very  much  and  we  were  very  sorry  you  left 
Israel  a  few  days  before  our  wedding. 

The  second  and  more  Important  thing 
which  brings  me  to  write  Is  my  desire  to  ex- 
press my  deep  appreciation  and  thanks  to 
your  country.  We  will  never  forget  all  that 
your  people  have  done  for  us  during  one  of 
the  most  dangerous  periods  In  the  history  of 
our  nation!  I  want  you  also  to  know  that 
your  personal  Initiative  and  support  for  help- 
ing Israel  and  for  saving  the  Jews  in  Rus- 
sia, were  widely  reported  and  welcomed  by 
the  Israeli  newspapers — and  especially  by 
my  paper— "Maarlv".  They  added  the  fact 
that  you  were  In  Israel  a  few  weeks  before 
the  war  broke  out. 

I  am  sure  that  now,  after  you  have  visited 
our  country,  met  our  leaders  and  seen  our 
society,  you  understand  us  more  deeply  than 
before.  I  remember  you  telling  me  (on  the 
way  to  your  hotel)  that  you  have  found 
here  a  true  desire  for  peace,  and  a  will  for 
negotUtlons  with  our  neighbours.  Therefore. 
I  am  sure  you  know  we  did  not  want  that 
war,  and  we  did  not  start  it.  The  war  came 
to  US  like  thunder  on  a  clear  day— and  we 
paid  a  very  heavy  price  for  It.  It  la  terrible 
relatives  and  friends  whom  I  knew  for  a 
Jong  time  and  enjoyed  being  with,  were  sud- 
denly gone.  They  wUl  not  be  with  us  any 
more  Mothers  were  bereaved  of  their  only 
sons.  Young  wives  were  left  alone  with  no 
huabandfl  Thousands  of  people  ar«  crippled 
for   the   rest   of   their   lives.  • 

So  sad— 6o  painful 
Why? 

Why— we  are  aU  asking. 

It  la  difflcult  for  me  to  believe  that  I 
have  passed  through  four  wars  since  my 
birth.  26  years  ago  Pour  wars  in  25  year»— 
lan't  It  too  much  for  a  young  man? 

I  was  born  during  the  Independence  War 
so  I  dont  remember  It.  But  I  do  remember 
the  1956  War  and.  of  course,  the  2  wars  I 
took  part  In.  The  SU  Day  War  and  the 
October  1978  War  There  is  no  doubt  and 
I  felt  It.  that  during  this  last  war  we  were 
fighting  for  the  existence  of  our  small  na- 
tion. Por  the  Integrity  of  our  country  We 
aU   want  to  see   this  war  as   the   last  one 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42451 


"Enough",  "No  more".  "We  have  suffered 
so  much" — p>eople  say  everywhere  Ln  Israel 
.  and  on  the  other  hand,  the  Arabs  are 
threatening  a  new  war.  and  you  can  never 
know  .  .  . 

That's  the  way  it  Is!  Maybe  It  is  our 
destiny  to  live  with  a  situation  such  as  this. 
but  I  believe  we  shall  overcome.  I  personally 
hope  that  It  won't  b«  far  away  for  Isaiah's 
prediction  to  come  true — as  he  said  In 
Chapter  II.  4-  "Nation  shall  not  lift  up  sword 
against  nation,  neither  shall  Ihey  learn  war 
any  more," 

I  am  looking  forward  to  seeing  you  soon 
In  Israel  In  more  peaceful  days.  They  wUl 
come.  They  must  come!  It's  time  now! 

Best  wishes  and  peace. 
Sincerely, 

RaZI    OlTERMAl*. 


END.^NGERED   SPECIES  ACT 

Mr.  MOSS.  Mr  President,  as  a  mem- 
ber of  the  conlerence  coinxnittee  on  en- 
dangered species,  I  am  happy  to  support 
S.  1983,  the  Eiidangered  Species  Act  of 
1973.  This  is  a  vital  piece  of  legislation 
that  must  be  accepted  if  addiiionaJ  en- 
dangered or  Uireatened  spe<  les  of  wild- 
life are  not  to  be  destroyed  and  eventu- 
ally become  extinct. 

The  goal  of  tills  legislation  is  to  u.se 
conservation  procedures  as  are  necessary 
to  protect  aixv  endangered  or  threat- 
ened species.  These  procedures  can  in- 
clude scientific  resource  management 
which  means  research,  census  law  en- 
forcement, habitat  acquisition  and  mam- 
tenance.  propagation,  live  trapping,  and 
trai^.<!  plantation  techniques  Regulated 
taking  of  certain  endangered  animals 
is  possible  where  absolutely  riecessar>-. 

Tlie  Secretary-  of  the  Interior  lists 
some  109  species  a-s  endangered  in  the 
United  States  Over  300  .■>[>ecies  are  on 
the  foreign  list.  Because  it  ls  impossible 
to  restore  a  si>ec;es  following  extinction 
it  Is  absolutely  necessar>-  that  proper 
method-s  be  establl.vhed  now  to  prevent 
the  possibility  of  additional  species  be- 
coming extinct. 

This  legislation  provides  a  means  to 
such  prevention.  It  allows  an  adequate 
time  for  each  State  to  implement  neces- 
sary machinerj-  to  carry  out  the  provi- 
sions of  this  act.  However,  where  States 
fall  to  protect  its  endangered  or  threai,- 
ened  species,  the  Federal  Government 
has  the  necessary-  authority  under  this 
act  to  do  so. 

S.  1983  gives  added  impetus  to  the 
authority  which  the  Secretarj'  of  Com- 
merce and  the  Secretary  of  Interior  have 
under  the  Reorganization  Plan  No,  4  of 
1970  to  determine  endangered  species  or 
threatened  species. 

Adequate  penalties  are  levied  by  this 
legislation  against  those  who  knovt-ingly 
or  for  commercial  purposes  destroy  en- 
dangered or  threatened  species.  How- 
ever, an  exemption  is  provided  for  the 
Alaskan  Natives  who  may  utilize  certain 
threatened  species  for  subsistence  rea- 
sons. Such  an  exemption  is  legitimate. 

This  legislation  authorizes  $22  million 
for  the  Department  of  the  Interior  over 
a  3 -year  period  and  $5  5  million  for  the 
Department  of  Commerce  to  carry  out 
the  provisions  of  this  act.  This  is  an  ac- 
ceptable amount  to  implement  the  pro- 
visions of  the  act. 

Mr.  President,  the  conferees  have 
worked  hard  on  this  legislation.  Several 
differences  existed  between  the  House 


and  Senate  versions  of  this  lepislaiion. 
Ajnicable  relations  between  House  and 
Senate  conferees  made  this  legislation 
possible.  I  wish  to  commend  those  who 
have  been  conferees  with  me  for  their 
work. 

I  ask  that  my  colleagues  in  the  Sen- 
ate support  S.  1983  as  it  has  come  from 
the  conference.  Legislation  In  this  area 
Is  long  overdue.  This  legislation  provides 
means  by  which  our  endangered  and 
threatened  species  can  be  given  neces- 
sary protection  for  future  generations  to 
enjoy. 

CONCLUSION  OF  MORNING 
BUSINESS 

The  ACTLNG  PRESIDENT  pro  tem- 
pore. Is  there  further  morning  business? 
If  not,  morning  business  is  closed. 


DISTRICT  OF  COLL^MBIA  SELF- 
GOVERNMENT  ACT — CONFER- 
ENCE REPORT 

The  ACrriNG  PRESIDENT  pro  t«m- 
pore  Under  the  previous  order,  the  Sen- 
ate will  now  proceed  to  the  consideration 
of  the  conference  report  on  S  1435,  which 
the  clerk  wUl  plea.se  state  by  title. 

The  second  assistant  legislative  clerk 
read  as  follows: 

Tnt  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bill 
iS  1435'  to  provide  an  elected  Mayor  and 
City  CouncC  for  the  District  of  Columbia, 
and  for  other  purposes,  having  met,  after 
full  and  free  conference  have  agreed  to  rec- 
ommenc  to  their  respective  Houses  this  re- 
port, signed  by  a  majority  of  the  conferees. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Ls  there  objectlcm  to  the  coasidera- 
tion  of  the  conference  report? 

There  being  no  objection,  the  Senate 
proceeded  tn  consider  the  report. 

fThe  conference  report  is  printed  Ir. 
the  Hou.se  proceedings  of  the  Congres- 
sional Record  of  December  6,  1973.  at 
pp.   39900-39913.) 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  time  for  debate  on  the  report 
Is  limited  to  1  hour,  t-o  be  equally  dl- 
\ided  between  the  manager  of  the  con- 
ference report,  the  distinguished  Sena- 
tor from  Missouri  '  Mr  Eacleton  > ,  and 
the  dlstliigui.'^hed  Senator  from  Maryland 
Mr    Mathias  ' , 

Ulio  yields  time'' 

Mr.  EAGLETON  Mr  President,  I  yield 
myself  such  time  as  I  may  consume. 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  Senator  from  Missouri 

Mr.  EAGLETON.  Mr.  President,  the 
Senate  passed  thf  home  rule  bill  or.  J-^ly 
10,  1973.  by  a  vote  of  69  to  17.  That  bill 
would  have  delegated  to  the  District 
government  power  over  all  legislation  in- 
cluding appropriations  and  over  court 
appointments.  The  home  rule  bill  which 
PEissed  the  House  gave  the  District  con- 
trol over  all  legislation  except  for  appro- 
priations, which  continued  to  be  vested 
In  the  Congress.  In  addition,  the  House 
bill  continued  the  present  system  of  ap- 
pointment for  Judges  and  pro\ided  for 
nonpartisan  elections.  Both  bills  con- 
tsdned  specific  restrictions  on  the  powers 
of  the  Council,  such  as  the  imposition  of 
any  tax  on  the  property  of  the  L^rlt^ 
States,  enactment  of  any  law  which  con- 


cerned the  function  of  property  of  tlie 
United  States,  or  the  imposition  of  a 
commuter  tax. 

The  conference  report  provides  for  an 
elected  Mayor  and  a  13-member  City 
Council,  of  which  5  shall  be  elected  at 
large  and  8  from  wards,  with  guaranteed 
minority  party  representation  of  2  at- 
large  members  of  thai  Council  The 
Mayor  will  possess  all  the  usual  executive 
functions  of  a  mayor;  the  Council  uill 
possess  all  of  the  usual  legislative  func- 
tions except  for  the  power  to  appropriate 
funds.  That  power  as  Ls  presently  true, 
will  rest  m  Congres.s,  and  the  District  of 
Columbia  budget  will  be  submitted  to  the 
Congress  by  the  President  through  the 
Office  of  Management  and  Budget 

Ml  acts  of  the  Council  must  lie  before 
the  Congress  for  30  days  for  review  be- 
fore they  go  into  effect  and  if  both  Houses 
by  concurrent  resolution  agree  that  such 
legislation  shall  not  go  int-o  effect  it  is 
vetoed  Furthermore,  the  home  rule  char- 
ter itself  may  be  amended  only  by  act  of 
Council  followed  by  a  referendum  of  the 
citizens  of  the  Di5trict  of  Columbia  and 
if  they  approve  the  change,  it  then  must 
be  affirmatively  approved  by  both  Houses 
of  Congress  before  it  will  take  effect.  Fi- 
nally, any  changes  enacted  by  the  Coun- 
cil Ln  the  cnmmAl  laws  wo'jld  not  go  mto 
effect  if  either  House  dLsapproves  such 
change. 

Judges  will  be  appointed  in  accordance 
•a-ith  the  Kilssourl  plan  The  President, 
'^1th  the  advice  and  consent  of  the  Sen- 
ate, -will  pick  a  nominee  from  a  list  of 
three  names  submitted  for  each  appoint- 
ment by  a  Judicial  Nominating  Co.nimis- 
sion.  The  15-year  term  of  judges  is  con- 
tinued However,  if  the  Commission  on 
Judicial  Disabilities  and  Tenure  finds  a 
judge  to  be  well  qualified  or  exceptionally 
well  qualified  he  will  receive  automatic 
reappointment  to  a  new  term  subject 
only  to  the  retirement  age  of  70 

I  think  that  this  short  summary  i.^  suf- 
ficient to  give  the  Members  a  fair  idea  of 
what  the  bill  contains  I  a.m  ven-  pleased 
that  we  have  been  able  to  reach  agree- 
ment with  the  House  on  this  step  for- 
ward after  the  Senate  has  tried  so  many 
times  to  obtain  such  legislation,  and  I 
commend  the  Hoase  conferees  ar.d  espe- 
cially Chairman  E>iggs  on  their  effort»s  u~i 
reach  an  accom^m.odatlon  of  views 

This  bill  does  not  give  the  District  of 
Columbia  what  I  would  call  true  home 
rule  TTie  citizen.";  do  not  have  the  power 
of  the  purse.  However.  I  do  view  it  as  an 
important  step  forward:  It  is  one  of  a 
series  of  steps  which  we  have  taken  in 
the  past  few  years  We  began  with  the 
1'26  amendment  which  allowed  the  clt- 
izen.s  of  the  District  for  the  first  time  to 
vote  in  Presidential  elections  Then  we 
passed  legislation  fillowmg  th^  election 
of  a  nonvoting  Delegate  in  the  House  of 
Representatives  from  the  District  And 
now  we  have  before  us  a  bill  which  would 
for  the  first  time  in  over  100  years  allow 
the  citizens  of  the  District  to  elect  a 
Mayor  and  Council  which  would  be  both 
responsible  and  responsive  to  ihem  in  tie 
first  iiLstance. 

I  am  oonfident  that  the  new  powers 
which  Congres^^i  is  delegating  to  the  citi- 
zens of  the  District  will  be  used  wisely 
that  the  review  procedures  which  have 
been  .set  up  will  be  unneces.sary,  and  that 
another  step  will  take  place  m  the  future 


42452 


CONGRESSIONAL  RFC  OKI)  —  SENATE 


December  19,  W7S 


which  will  allow  the  District  to  finally 
achieve  true  home  rule. 

Any  change  usually  generates  a  cec- 
t&in  amount  of  apprehension  that  cer- 
tain adverse  actions  will  result  from  such 
change.  This  bill  conferring  home  nile 
on  the  District  of  Columbia  Is  no  ex- 
ception. 

Some  concern  has  been  expressed  from 
several  sources  to  the  effect  that  the 
sunendments  tn  the  conference  report 
restructuring  the  Redevelopment  Land 
Agency,  in  some  manner,  might  be  con- 
strued as  authority  to  enable  the  Agency 
to  unilaterally  take  8u;Uon  which  would 
nullify  valid  agreements  and  understand- 
ings entered  mto  or  arrived  at  prior  to 
the  effective  date  of  the  conference  re- 
port in  connection  with  certain  redevel- 
opment plans  or  projects. 

I  am  not  aware  of  any  provision  of  this 
conference  report  which  would  give  the 
District  government.  Redevelopment 
Land  Agency — or  any  successor  agency — 
or  any  other  agency  the  power  to  take 
any  unilateral  action,  by  the  adoption 
of  a  law,  regulation,  reorganization  or 
other^yise,  which  would  in  any  way  im- 
pair or  abrogate  such  contractual  ar- 
rangements, safeguards,  and  procedures 
for  modification  of  redevelopment  plans 
or  urban  renewal  plans. 

In  short,  it  is  not  the  intention  of  Con- 
gress to  deprive  any  party,  the  Govern- 
ment or  the  private  investor,  from  any 
legal  right  it  had  at  the  time  it  invested 
its  capitaL 

Mr.  President,  I  am  prepared  at  this 
time  to  yield  such  time  .^  the  Senator 
from  Maryland  may  desire  on  my  time. 
so  that  he  in  turn  may  yield  his  half 
hour  to  Members  of  the  Senate  who  wish 
to  speak  In  opposition  to  the  conference 
report. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection  it  Is  so  ordered. 
The  Senator  from  Maryland. 
Mr.  MATHIAS.  Mr  President.  I  thank 
the  distinguished  chairman  of  the  com- 
mittee for  yielding  me  this  time.  I  have 
spoken  so  often  and  at  such  length  on 
the  subject  of  home  rule  for  the  District 
of  Columbia  over  a  period  of  a  number 
of  years  that  I  do  not  intend  to  repeat 
all  the  arguments  I  have  given  before. 
Nearly  6  months  ago.  when  this  body 
considered  S.  1435  with  more  hope  than 
confidence.  I  observed  we  had  reason  to 
be  optimistic  that  home  nile  would  come 
to  the  District  of  Columbia  this  year. 
Today  we  find  that  this  body,  this  D5. 
Senate,  which  has  gone  on  record  eight 
times  In  eight  separate  Congresses  as 
favoring  home  rule,  will  have  the  privi- 
lege of  taking  the  final  congressional  step 
to  restore  to  the  citizens  of  the  District 
of  Columbia  some  measure  of  self-gov- 
ernment. 

I  feel  that  the  chairman  of  the  com- 
mittee, the  distinguished  Senator  from 
I<ls80iu1  <Mr.  Eaglstoni.  deserves  a 
tremendous  debt  of  gratitude  from  the 
citizens  of  the  District  for  the  leadership 
that  he  has  given;  and  I  would  also  pay 
particular  tribute  to  the  staffs  of  both 
the  majority  and  the  minority  of  the 
District  of  Columbia  Committee.  Mr 
Colby  King,  who  Li  the  head  of  tlie  mi- 
nority staff.  Mr  Robert  Harris,  who  is  the 
head  of  the  majority  staff,  and  Mr  Rob- 


ert Lothian,  of  the  Senate  I>gisiHUve 
Counsel's  OfQce.  who  have  done  an  out- 
standing job  In  providing  the  committee 
with  the  backup  In  the  complex  dlflVcult 
progression  of  events  which  finally  led 
to  the  conference  report  which  I  hope 
the  Senate  wiU  adopt  today. 

In  attempting  to  describe  the  bill 
before  us  today,  I  am  reminded  of  a  line 
from.^'Romeo  and  Juliet"  which  goes  as 
follows : 

No,  'tis  not  ao  deep  as  a  w«U.  nor  ao  wide 
as  a  church  door,  but  tla  enough.  twUl 
servo. 

S.  1435.  as  reported  by  the  confer- 
ence committee,  probably  fits  this  de- 
scription. This  bill  will  create  a  repre- 
sentative local  government  for  the  Dis- 
trict of  Columbia.  It  will  relieve  the 
Congress  of  the  responsibility  for  the 
day-to-day  government  of  this  city.  Yet, 
It  v.ill  retain  the  historic  constitutional 
responsibility  of  the  Congress  to  over- 
see the  government  of  the  Nation's 
Capital. 

Mr.  President,  when  I  came  to  the 
Congress  some  years  ago  as  a  freshman 
Congressman.  I  received  an  assignment 
to  the  House  District  Committee.  While 
my  views  on  home  rule  were  not  as  de- 
veloped then  as  they  are  today.  I  soon 
became  convinced  that  there  had  to  be 
a  better  way  to  conduct  the  affairs  of 
the  District  of  Columbia.  What  I  found 
then  is  what  we  observe  today:  A  situ- 
ation In  which  we  are  trapped — Con- 
gress, the  White  House,  the  city  govern- 
ment, and  most  of  all.  the  people  of  the 
District  As  I  have  observed  before,  we 
are  trapped  In  a  system  which  hardly 
deserves  to  be  called  a  system.  It  Is  an 
oljsolete  and  cumbersome  and  arbitrary 
system  of  arrangements  that  have  been 
made  at  various  times  through  which 
authority  is  diffused  and  power  Is  frag- 
mented and  decLslonmaklng  is  delayed. 
The  Mayor  does  not  have  the  power. 
Congress  does  not  have  the  time,  and 
the  people  of  tlie  District  do  not  have 
the  vote 

As  a  Senator  from  Maryland,  I  have 
found  this  problem  to  be  even  more  acute 
Let  me  repeat  what  I  have  said  before: 
If  there  Is  a  problem  affecting  the  Dis- 
trict of  Columbia  and  another  problem 
which  arises  at  the  same  time  affecting 
the  State  of  Maryland  and  I  am  asked  to 
choose  where  I  wlU  devote  my  time  and 
attention,  I  must  say  that  it  is  going  to  be 
on  the  affairs  of  the  State  of  Maryland 
and  not  on  the  affairs  of  the  District  of 
Columbia.  But  that  has  been  the  problem 
for  the  District  all  along.  The  membeiB 
of  both  committees  of  both  Houses  have 
had  their  own  National  and  State  or  dis- 
trict responsibilities  to  look  after  and  ao 
the  District  of  Columbia  has  always  had 
to  get  by  on  what  Ume  is  left  over  And 
that  time  has  never  been  enough.  Home 
nile  for  the  District  of  Columbia  Is  sim- 
ply an  Idea  whose  time  has  come. 

Mr  President,  as  the  Senate  knows,  the 
home  rule  blU  passed  by  the  Senate  in 
July  differed  conceptually  from  the 
House-passed  version.  When  the  distin- 
guished chairman  and  I  got  together  3 
years  ago  and  drafted  our  bUi.  we  Inten- 
tionally produced  a  bill  which  would  pro- 
vide a  substantial  delegation  of  adminis- 
trative and  legislative  authority  to  the 


elected  Mayor  aiid  Councli,  including,  I 
might  add.  flacai  autniiomy.  while  nt  the 
same  Ume  reserving  a  .substar.UaJ  dcKree 
of  veto  power  to  the  Cor.Kr^««s.  The  un- 
derlying assumption  in  ou.-  bU;  wa.s  that 
the  local  oCCdals  would  act  respori-^lhly 
with  the  substantial  powers  we  were  dele- 
gating to  them  and  that  the  Con^rt-ss 
would  not  act  Irresponsibly  with  Its  veto 
powers. 

We  assumed,  therefore,  that  a  spirit  of 
good  will  would  continue  to  exist  between 
the  Congress  and  the  elected  Mayor  and 
City  Council.  It  was  our  view  in  the  Sen- 
ate that  the  heart  of  the  entire  home  rule 
proposal  was  the  Federal-District  fiscal 
relationship  which  envisioned  the  Mayor 
and  the  Council  as  the  focal  point  for  de- 
termining the  general  allocation  of  re- 
sources to  meet  the  various  needs  of  the 
IXstrict.  The  House  conferees  made  It 
quite  clear,  however,  that  their  body 
wanted  fiscal  control  to  remain  in  the 
Congress.  And  so,  having  reached  this 
unprecedented  stage  In  the  quest  for 
home  rule,  it  was  the  Judgment  of  your 
Senate  conferees  that  we  should  not  place 
In  jeopardy  a  bill  which  had  finally  man- 
aged to  clear  the  House.  In  this  respect, 
every  supporter  of  self-government  for 
the  District  of  Columbia  should  t)ay  trib- 
ute to  the  chairman  and  ranking  minor- 
ity member  of  the  House  Committee  on 
the  District  of  Columbia  and  the  mem- 
bers of  his  committee  who  supported  this 
bin  on  final  passage  yesterday  in  the 
House. 

It  Is  noteworthy,  in  my  judgment,  to 
point  out  that  the  conference  report  re- 
ceived the  support  of  Chairman  Dices 
and  ranking  minority  member  of  the 
Hou.se  Committee.  Representative  Am- 
CHER  Nelsen  of  Minnesota.  This.  I  be- 
lieve. Is  ample  evidence  that  the  home 
rule  measure  before  us  today  is  a  prod- 
uct which  can  be  supported  by  all  sides. 
For  those  who  might  be  concerned  that 
the  constitutional  power  of  the  Congreas 
over  the  affairs  of  the  District  is  lessened, 
let  me  point  out  that  under  the  terms  of 
this  bill,  the  Congress  retains  full  resid- 
ual, ultimate,  and  exclusive  jurisdiction 
of  the  District.  The  Congress  still  has  the 
power  to  repeal,  amend.  Initiate  local 
legislation,  and  to  nullify  individual  acta 
of  the  Council.  Moreover,  among  other 
limitations  on  the  Council,  it  does  not 
have  the  power  to  Impose  a  so-called 
commuter  or  reciprocal  Income  tax;  and 
the  Council  cannot  enact  any  legislation 
which  concerns  the  functions  or  property 
of  the  United  States  or  which  Is  not  re- 
stricted in  Its  application  exclusively  In 
or  to  the  District. 

But  on  the  positive  side,  the  feature 
about  thL<!  bill  which  most  strongly  com- 
mends Its  support  Is  that  it  makes  possi- 
ble a  progression  from  the  total  denial 
of  the  rights  of  citizenship  to  the  oppor- 
tunity to  choose  municipal  government, 
not  one  appointed  by  the  President  and 
confirmed  by  the  Senate,  but  one  selected 
by  the  people  and  responsible  to  the 
people. 

r  had  hoped  that  the  final  product 
would  go  further  toward  relieving  the 
Congress  of  some  of  the  burdens  of  hav- 
ing to  pass  on  every  detill  of  the  Dis- 
trict's affairs  with  the  retention  of 
control  over  the  city's  budget.  I  now  find 


/ 


December  19  y  1973 


CONGRESSIONAL  RECORD  — SENATE 


that  I  shall  continue  to  have  responsl- 
bihly  for  reviewing  and  passing  judg- 
ment on  just  about  every  penny  which 
the  local  government  may  wish  to  spend. 
This,  of  course,  is  due  to  my  position 
as  the  ranking  Republican  on  the  Senate 
District  of  Columbia  Committee  which 
authorizes  local  proRram.'^,  and  my  posi- 
tion as  the  ranking  Iin^)ubllcan  on  the 
District  of  Columbia  Subcommittee  of 
the  Senate  Appropriations  Committee.  It 
Is  my  fervent  wish  and  expectation  that 
future  congressional-city  relationships 
will  be  as  harmonious  and  fruitful  sis 
those  we  have  enjoyed  up  to  now. 

The  legislation  we  shall  adopt  today 
has  been  needed  for  exactly  99  years. 
There  Is  no  better  way  for  the  Congress 
to  meet  its  own  obligations  to  provide 
for  the  govermnent  of  the  Nation's  Cap- 
ital, and  no  better  way  to  show  the  Na- 
tion and  the  world  that  the  Declaration 
of  Independence  does  not  stop  at  the 
District  line,  than  to  adopt  this  confer- 
ence report  on  home  rule  today 

Mr.  EAOLETON  Mr  President.  I 
thank  the  .Senator  from  Mar>-land  for  his 
customary  eloquent  rpmark5  And  I  echo 
his  fine  remarks  for  the  excellent  work 
done  by  the  staff  at  all  levels. 

I  pay  tribute  to  the  Senator  from 
Maryland  for  his  active  role  In  this  bill. 

No  piece  of  legislation  that  comes  to 
the  floor  is  ever  the  product  of  just  one 
Senator.  This  bill  was  truly  a  bipartisan 
effort,  participated  in  by  all  seven  mem- 
bers of  the  District  of  Columbia  Commit- 
tee. 

Mr.  President.  I  suggest  the  absence 
of  a  quorum  and  ask  imanlmous  consent 
that  the  time  be  charged  against  my 
time. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection.  It  is  so  ordered. 
The  clerk  will  call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanlmoiLs  consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  Is  so  ordered. 


42453 


ORDER  OF  BUSINESS 

Mr.  MANSFIELD.  Mr.  President,  vmi 
the  Senator  yield  me  5  minutes? 

Mr  EAOLETON  Mr.  President,  I  yield 
5  minutes  to  the  Senator  from  Montana. 


CALL  OP  THE  CALENDAR 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  the  Senate  turn 
to  the  consideration  of  Calendar  No.s  610 
611.and612 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection.  It  Is  so  ordered. 


GRATUITY  TO  ANNE  M.  HUSTED 

The  resolution  fS   Res   218 »   to  pay  a 

gratuity  to  Anne  M   Hu.sted  was  consid- 
ered and  aifreed  to  as  follows 

Rrnth-fd  That  Uie  S«s:retary  of  the  Senat« 
horeb>  Is  auihorlted  a.id  41r«y~t«Kl  to  pay  from 
the  contingent  fund  of  the  8*nate  to  Anne 
M  H'ojted.  widow  of  Arthur  W  Husted,  an 
employee  of  the  Senate  at  the  time  of  his 
de»th.  a  lum  efjual  t^  su  month.s'  compenaa- 


tlon  at  the  rate  he  was  receiving  by  law  at 
the  time  of  his  death,  said  aiim  to  be  con- 
sidered inclusive  of  f'onera:  expense*  and  al! 
other  ailowancee 


GRATUTPi'  TO  MARCELLE  8 
MOUNTPORD 

The  resolution  (8.  Res.  219)  to  pay  a 
gratuity  to  Marcelle  S  Mountford  was 
considered  and  a^-reed  to.  as  follows: 

ResoU  Pd.  That  the  Secretarj-  of  Uie  Senate 
hereby  u  authorized  and  directed  to  pay, 
from  the  contingent  fund  of  the  Senate,  to 
MarL-*i:f  .'i  M'jvmtford.  wid  ,w  of  Jo'i.n  A. 
Mountford,  an  employee  of  the  Senate  at 
the  tLTie  of  his  death  a  s^.m  equal  to  s:x  and 
one-haU  months  cl  :r.pe:isatlon  at  the  rate 
he  was  recelvlnK  :  ;.  ...w  at  -he  time  ol  his 
death,  said  exim  to  be  c  nsidered  inclusive 
of  funeral  expenses  a.ud  al.  other  a.iowance6. 


GRATLTTY  TO  GEORGE  E  ARTHEN 

Tlie  resolution  <  S.  Res.  220  '  to  pay  a 
gratuity  to  George  E.  .\rthen  was  con- 
sidered and  agreed  to.  as  foDows: 

Rf-soUed.  That  the  Secretary  of  the  Senate 
hereby  u  authorized  and  directed  to  pay, 
from  the  contingent  fund  of  the  Senate,  to 
George  E.  Arthen,  father  of  Gordon  E  Arthen, 
an  employee  of  the  8«nate  at  the  time  c  f  hla 
death,  a  sum  equal  to  two  months'  compen- 
sation at  the  rate  he  was  receiving  by  law 
at  the  time  of  his  death,  said  sum  to  be  con- 
sidered inclusive  of  fimeral  expenses  and  aU 
other  allowances. 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  the  rest  of  the 
calendar,  beginning  with  Calendar  Order 
No.  616.  House  Concurrent  Resolution 
278,  be  considered  at  this  time. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  so  ordered. 


SOVIET  ECONOMIC  PROSPECTS  FOR 

THE  SEv^arriEs 

The  concurrent  resolution  (H.  Con. 
*Res.  278  >  authorizing  the  printing  of  ad- 
ditional copies  of  the  joint  committee 
print  "Soviet  Economic  Prospects  for  the 
Seventies"  was  considered  and  agreed  to. 


NATIONAL    WORKERS'    COMPENSA- 
TION STANDARDS  ACT  OF  1973 

The  resolution  (S.  Res.  212)  authoriz- 
ing the  printing  of  additional  copies  of 
the  committee  print  entitled  "National 
Workers'  Compensation  Standards  Act 
of  1973"  was  considered  and  agreed  to.  as 
follows : 

Resolved,  That  there  be  printed  for  the  use 
of  the  Committee  on  Labor  and  Public  Wel- 
fare two  thousand  five  hundred  additional 
copies  of  its  committer  print  of  the  current 
Congress  entitled  "National  Workers'  Com- 
pensation Standards  Act  of  1973   (S.  2008)". 


DISCLOSURE  OF  CORPORATE 
OWNERSHIP 

The  concurrent  resolution  'S  Con. 
Res.  59>  authorizing  the  prlntinff  of  com- 
pilation entitled  ' Dl.'^cla'^ure  of  Corporate 
Ownership"  a.s  a  Senate  document  w-as 
considered  and  agreed  to,  as  follows 

Resolved  by  tfve  Senate  i  the  House  o,' 
RepTeaentat\v«t  concurrxng  i .  That  the  com- 
pilation entitled  ■DiscKvsure  of  Corporate 
Ownership",  prepared  by  the  Subcommittees 


on  Intergovernmental  Relations  and  Budget- 
i.--g.  Management  and  Expenditures,  of  the 
Scr.ite  Committee  o::  Government  Opera- 
tions, he  p.-i.-ited  with  ill'ustratlons  as  a  Sen- 
ate document  and  that  the.-e  t.e  p"- ted 
five  thousand  additional  copies  of  such  docu- 
ment for  the  use  of  Uiat  oocimittee 


CHILD  .\BUSE  PREVENTION  ACT 

The  concurrent  resolution  <S.  Con,  Res. 
o6)  authorizing  the  printing  of  addiUona] 
copies  of  Senate  h^Tiruigs  on  the  Chiid 
Abuse  E>revention  Act,  1973.  was  con- 
.-:de.-ed  and  agreed  to,  as  follows: 
S.  Con.  Res.  56 

Resolved  by  the  Senate  {the  Hou*e  of 
Representatives  concurring  \,  Ttiat  there  be 
printed  for  the  tise  of  the  Senate  Committee 
on  Labor  and  Public  Welfare  one  thousand 
additional  copies  of  the  hearings  before  its 
Subcommittee  on  ChUdren  and  Youth  dur- 
ing the  present  session  on  the  ChUd  Abuse 
Prevention  Act,  1973. 


MEASURES  PASSED  OVER 
The  bill  (S.  Res.  214),  a  resolution 
authorizhig  supplemental  expendltu-Ts 
by  the  Committee  on  .^glng  for  inqulnes 
and  Investigations  was  announced  as 
next  In  order. 

Mr.  MANSFIELD.  Mr.  President   over 
The  ACTING  PRESIDENT  pro  ten^.- 
pore.  The  blU  will  be  passed  over 

The  biU  (H.R.  11088).  an  act  to  pro- 
vide emergency  security  assistance 
authorizations  for  Israel  and  Cambodia 
was  annoimced  as  next  in  order, 
Mr.  MANSFIELD.  Mr  President  over 
The  ACTING  FRESIDE.VT  pro'  tem- 
pore. The  bill  win  be  pa.'wed  over. 


"IRIPEACHMENT.  SELECTED 
MATERIALS" 

The  Senate  proceeded  'o  corL-^ider  the 
concurrent  resolution  iH  Con.  Res.  369) 
to  print  as  a  House  doc'omer.t  comniittee 
print  on  "Impeachment.  Selected  Mate- 
rials" which  had  been  reported  from  the 
Committee  on  Ruies  and  .A.dmini5t ra- 
tion with  an  amendment  on  pape  1.  be- 
ginning with  hne  9,  insert 

Sic.  a.  There  shall  be  prUited  two  thou- 
sand thirty  additional  copies  of  the  docu- 
ment authortzed  by  aecUon  1  of  this  concur- 
rent resolution,  of  which  one  thousand  ooplaa 
shall  be  for  the  use  of  the  Senate  Document 
Room  and  one  thousand  thirty  copies  shall 
be  for  the  use  of  the  Senate. 

The  amendment  was  agreed  to. 
The  concurrent  resolution,  as  amended, 
was  agreed  to. 


THE  SUPRE.ME  COURT  OF  THE 
UNITED  STATES 

The  Senate  proceeded  to  consider  the 
conciu-rent  resolution  *H.  Con.  Res,  375) 
pro\idlng  for  the  printing  as  a  House 
document  of  the  booklet  entitled  "The 
Supreme  Court  of  the  Unlt«l  StAtes" 
which  had  been  reported  from  the  Com- 
n.utee  on  Rules  and  Administration  with 
an  amendment  on  page  1.  beginrJng  with 
line  9.  msert: 

S«c.  a.  There  ahall  be  printed  for  t:.e  i.:ae 
of  the  Senate  ten  thousand   three  hundred 


42454 


CONGRESSIONAL  RECORD  — SENATE 


•ddltlonal  copies  of  th«  document  kutboiiMd 
by  section   1   of  UiU  concurrent   reaolution. 

The  amendment  was  agreed  to. 
The  concurrent  resolution,  as  amended 
*as  agreed  to 


December  19,  1973 


AUTHORIZATION  FOR  CERTAIN 
PRINTINO  FOR  COMMITTEE  ON 
VETERANS'  AFFAIRS 

The  Senate  proceeded  to  consider  the 
concurrent  resolution  (H.  Con.  Res.  88  > 
authorizing  cerUin  printing  for  the 
Committee  on  Veterans'  Affairs  which 
had  been  reported  from  the  Committee 
on  Rules  and  Administration  with  an 
amendment  on  page  1.  beginning  with 
line  10.  insert: 

Sec  a  After  the  conclusion  of  the  first 
session  of  the  Ninety-third  Congress  there 
shaU  be  printed  for  the  use  of  the  Commit- 
tee on  Veterans'  Affairs  of  the  United  States 
Senate  twenty  thousand  copies  of  a  publi- 
cation slnuiar  to  that  authorised  by  the  first 
section  of  this  concurrent  resolution,  but 
with  emphasis  upon  matters  relaUng  to  vet- 
erans' affairs  considered  by  the  Senate  or  by 
the  Committee  on  Veterans'  Affairs  of  the 
Senate. 

The  amendment  was  agreed  to. 
The  concurrent  resolution,  as  amended, 
was  ag^-eed  to. 
The  title  was  amended  so  as  to  read : 

Concurrent  resolution  authorlzl.Tg  the 
printing  of  summaries  of  veterans  legisla- 
tion reported  in  the  House  and  Senate  dur- 
ing the  Ninety -third  Congress,  first  session. 


CONTINUATION  OF  GI  BENEFITS 
DURING   THE    ENERGY   CRISIS 

The  Senate  proceeded  to  consider  the 
bill  (S.  2794)  to  amend  chapter  36  of 
title  38.  United  States  Code,  to  authorize 
the  Administrator  of  Veterans'  Affairs  to 
continue  making  educational  assistance 
and  subsistence  allowance  pav-ments  to 
eligible  veterans  and  eligible  persons 
during  periods  that  the  educational  in- 
stitutions In  which  they  are  enrolled  are 
temporarily  closed  pursuant  to  a  policy 
proclaimed  by  the  President  or  because 
of  emergency  conditions  'Rept.  No.  93- 
648 1 ,  which  had  been  reported  from  the 
Committee  on  Veterans'  Affairs  with  an 
amendment  to  strike  out  all  after  the 
enacting  clause  and  Insert: 

That  section  1780(a)  of  title  38.  United 
States  Code,  is  amended  by  adding  at  the  end 
thereof  the  following  new  sentence:  "Not- 
withstanding the  foregoing,  the  Admllilstra- 
tor  may.  subject  to  such  regulations  as  he 
shall  prescribe,  continue  to  pay  allowance* 
to  eligible  veterans  and  eligible  persons  en- 
rolled In  courses  set  forth  in  clause  (1)  or 
(2)  of  this  subsection  during  periods  when 
the  schools  are  temporarily  closed  under  an 
established  policy  based  upon  an  Executive 
order  of  the  President  or  due  to  an  eiaer- 
gency  situation,  and  such  periods  shall  not 
be  counted  as  absences  for  th»  purposes  of 
clause  (2).". 

Mr.  HARTKE.  Mr.  President,  I  rise  to 
urge  my  colleagues  to  support  and 
promptly  pass  an  emergency  measure  to 
protect  thousands  of  veterans  from  the 
hardships  occasioned  by  the  energy 
crisis.  This  bill  will  Insure  that  GI  Bin 
benefits  will  continue  to  be  paid  to  eligi- 
ble veterans,  wives,  widows,  and  chil- 
dren during  periods  when  educational 
institutions  are  temporarily  closed  to 
conserve  energy   or  are  closed  due  to 


emergency  conditions.  As  many  of  you 
are  aware  it  has  become  evident  In  recent 
weeks  that  the  fuel  shortage  and  the 
resultant  energy  crisis  Is  having  serious 
consequences  for  many  educational  In- 
stitutions. Many  residential  colleges  and 
other  schools,  particularly  those  in  New 
England  and  the  North  Central  States 
have  announced  or  have  under  active 
consideration,  plans  to  extend  normal 
Christmas  vacations  or  to  delay  the  start 
of  the  spring  semester  or  quarter.  Recent 
articles  in  the  Washington  Post  and  the 
U.a.  News  L  World  Report  Illustrate 
some  of  the  problems  which  are  facing 
these  schools  and  I  ask  unanimous  con- 
sent that  the  articles  be  Inserted  in  the 
Record  at  this  point 

There  being  no  objection,  the  articles 
were  ordered  printed  as  follows: 
[From  the  Washington  Port,  Dec  8,  1973) 
On.  Shobtagx  Poacmo  Cou-kx  RESCHXDtn.n«o 
(By  Bart  Barnes) 
Thousands  of  college  students  In  the  na- 
tion's northern  states  are  facing  extended 
Christmas  leaves  this  year  as  a  shortage  of 
heating  fuel  forces  prolonged  shutdowns  of 
many   Institutions  of  higher  learning. 

Scores  of  institutions  have  already  an- 
nounced winter  closings  ranging  from  three 
days  to  six  weeks  in  an  effort  to  conserve 
heating  fuel.  Hundreds  of  others  in  the 
northern  states.  partlcxUarly  New  England, 
are  developing  contingency  plans  to  close 
down  In  the  event  heating  fuel  runs  out. 
according  to  college  spokesmen. 

At  Maine  s  Bowdoln  College,  for  example, 
a  scheduled  Dec.  14  to  Jan.  7  winter  break  has 
been  changed  to  run  from  Dec  22  through 
Jan.  30,  Provoet  Olln  Roblson  said.  Semester 
examinations,  ortgmally  set  to  follow  a  two- 
week  period  of  reading  and  term  paper  writ- 
ing m  January,  have  been  rescheduled  for 
this  month. 

The  January  assignments  for  reading  and 
term  papers  still  stand.  Roblson  said,  but 
students  will  be  expected  to  do  the  work  at 
home  and  naaU  term  papers  to  their  pro- 
feasors. 

Princeton  students,  many  of  them  begin- 
ning their  Christmas  holiday  this  weekend, 
leave  with  no  date  set  for  the  resumption  of 
claseee  after  New  Year's.  They  were  originally 
set  to  resume  Jan.  7.  but  since  then  Prince- 
ton has  announced  It  la  not  sure  It  can  meet 
that  schedule.  Toll-free  numbers  have  been 
set  up  for  students  to  call  after  the  holidays 
to  find  out  when  classes  are  to  begin  again 
Vermont's  four  state  colleges  will  begin 
their  Christmas  recess  Dec  30  and  students 
will  be  away  from  school  until  Feb  11,  when 
classes  begin  for  the  next  semester — a  three- 
week  extension  of  the  winter  break.  Provost 
Robert  8  Babcock  said.  Lost  time,  he  said. 
wUl  be  made  up  by  eliminating  most  of  the 
Easter  vacation  and  extending  the  academic 
year  further  into  June. 

For  the  most  part,  the  pending  shutdowns 
are  concentrated  In  the  New  England  states. 
particularly  among  the  large  number  of 
private  colleges  In  that  region.  New  England 
Is  expected  to  be  especially  hard  hit  by  the 
fuel  shortage  this  winter. 

But  colleges  planning  shutdowns  extend 
Into  the  Midwest,  and  the  Institutions  range 
from  Harvard  to  the  University  of  Maine  to 
Orlnnel  College  in  Iowa. 

"There  \.s  absolutely  no  way  to  generalize 
about  what  Institutions  might  or  might  not 
do."  said  John  P.  Morse,  director  of  govern- 
mental relations  for  the  American  Council  on 
Bducatlon,  "Some  have  a  backup  of  coal  and 
they're  In  good  shape  " 

Among  the  dlfHcultles,  Morse  said.  Is  that 
under  current  monthly  quotas  of  fuel  alloca- 
tion, colleges  have  no  assurance  that  they 
oould  get  In  February  any  of  the  fuel  they 
would  save  by  oloelng  in  January.  He  said 


the  oouncU   has  asked  that  thia  regulation 
be  changed. 

In  the  meantime,  HSW  Secretary  C«sper  W. 
Weinberger  Is  weighing  whether  or  not  to 
recommend  special  priority  for  fuel  allocation 
for  the  nation's  elementary  and  secondary 
schools. 

Weinberger  yesterday  recommended  to  the 
White  House  energy  office  that  elementary 
and  hlgii  schools  be  required  to  lower  tem- 
peratures six  degrees  from  last  year's  heating 
levels  Instead  of  the  previously  proposed  10 
degrees. 

Weinberger's  energy  adviser.  Don  Wortman. 
said  the  recommendation  would  put  schools 
on  the  same  basis  as  reeldentlal  dwellings 
But  It  would  not  make  schools  a  high  priority 
fuel  customer  as  roqueeted  by  the  National 
Education  .Vasooiatlon 

Colleges  were  not  covered  In  Weinberger's 
recommendation 

Weinberger  also  recommended  that  school 
busea  using  dleeel  fuel— about  10  per  cent 
of  the  fuel  used  for  all  transportation — be 
allowed  to  remain  on  last  year's  fuel  con- 
sumption levels.  Wortman  noted  that  any 
reduction  in  school  busing  would  create  an 
Increased  demand  for  family  gasoline. 

At  Harvard,  where  the  Christmas  break  has 
already  been  extended  by  one  week  untU 
Jan.  13.  students  have  been  warned  that 
the  situation  will  have  to  be  reevaluated  at 
the  beginning  of  the  spring  semeeter  Feb  6 

"This  plan  goee  only  to  Feb  6."  said  the 
dean  of  the  faculty  or  arts  and  sclencee,  Henry 
Rosovsky  "I  think  it  is  really  frulUeee  to 
speculate  about  the  future  because  we  Just 
don't  know  We'll  try  and  stay  open  We'll  try 
and  have  as  little  disruption  as  possible  We'll 
try  and  meet  out  educational  re«ix>nalbllltles 
But  we're  Just  llhe  the  rest  of  the  American 
people,  wondering  what  the  hell  is  going  to 
happen  to  us." 

Like  many  of  the  nation's  older  untversltlaa. 
Harvard  is  plagued  by  a  number  of  buildings 
with  antiquated  heating  systems  that  have 
no  thermostats  and  are  not  subject  to  tem- 
p«rat\u^  controls  as  a  means  of  saving  fuel. 
"All  you  can  do."  a  university  »p)okeflman 
said.  "Is  turn  them  on  or  turn  them  off" 

Spots  checks  of  the  major  state  university 
systems  of  the  Midwest  and  Far  West  Indi- 
cated that  most  have  enough  fuel  reserves  to 
remain  open  on  their  regular  schedules  But 
a  number  of  smaller  private  colleges.  St. 
Olaf 's.  Macalester  and  Augsburg  In  Minnesota, 
for  example,  are  shutting  down  for  periods  up 
to  two  weeks. 

[From  the  VS.  News  ft  World  Report.  Dec. 

17.  19731 

Srmr-THar«  Mn,LiON  m  thx  Schoou  Bracx 

FOa  THX  Ptna,  PnrcH 

Winter  and  the  energy  crisis  are  aiming  a 
one-two  punch  at  UJ3  classrooms.  Result: 
Educators  everywhere  are  putting  emer- 
gency measures  Into  effect. 

Nowhere  is  the  foreboding  over  fuel  short- 
ages sharper  than  among  the  people  who 
run  America's  schools  and  colleges. 

Already  It  Is  becoming  clear  that  for  most 
of  the  country's  60  million  students  and  3 
mmion  teachers,  winter  wUl  be  a  season  of 
disrupted  education,  discomforts  and  dis- 
content. 

Worries  are  most  acute  In  Northern 
States,  where  curtailment  of  classroom 
schedules  already  has  been  ordered  In  some 
Instances 

Keeping  classrooms  warm,  however.  Is  only 
part  of  the  problem  foreseen  by  school  and 
college  officials.  Even  In  Southern  States, 
the  gasoline  shortage  is  thought  likely  to  re- 
duce busing  and  student  driving  drastically. 
crroKTS  TO  btat  opkn 

Staff  members  of  "VS.  News  ft  World  Re- 
port." checking  with  educators  at  all  levels, 
put  together  this  picture  of  their  concern, 
and  how  they  are  trying  to  stay  in  opera- 
tion: 
Many  pubUc  and  private  colleges  in  New 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42455 


\ 


Sngland  are  extending  winter  vacation  pe- 
riods by  anywhere  from  one  week  to  a 
month  or  more. 

Class  davs  are  being  shortened  by  schools 
In  some  places.  Nighttime  and  week-end  ac- 
tivities are  being  cut  back  or  abandoned. 

Busing  is  being  curtailed  and  In  a  few 
cases  eliminated  Nobody  seems  to  know 
whether  there  will  be  enough  gasoline  avail- 
able to  continue  massive  busing  programs 
ordered  by  the  courts  to  achieve  racial  In- 
tegration 

Using  computers,  some  colleges  are  orga- 
nizing hundreds  of  car  pools  for  the  large 
number  of  students  who  use  automobiles  to 
get  to  and  from  campuses 

Maryland  and  some  other  States  have 
asked  hlg!. -school  students  to  leave  their 
cars  at  home  and  use  buses.  If  they  dont 
do  so  voluntarily,  they  may  be  required  to  by 
law. 

Many  athletic  contests  and  cultural  events 
that  take  students  out  of  town  are  being 
canceled.  So  are  field  trips. 

Lighting  Is  being  reduced  and  tempera- 
tures lowered  Use  of  electrical  appliances  Is 
being  limited,  while  outdoor  lighting  dis- 
plays have  been  banned  almost  universally. 

WORBt   OVER  RISING  COSTS 

School  officials  everywhere  are  worrying 
not  only  about  how  to  get  fuel  but  how  to 
pay  for  It.  Rising  costs  of  oU,  natural  gas 
and  gasoline  are  straining  operating  budg- 
ets already  cut  to  the  bone. 

"NormaUy.  heating  Is  our  fifth-largest 
budget  Item."  said  Prank  Oraham,  superin- 
tendent of  the  Viola  public  schools  In 
Arkansas.  "Now  It  Is  third,  only  behind 
transportation  and  teacher  salaries." 

In  Georgia,  some  schools  have  been  forced 
to  buy  gasoline  at  service  stations.  Com- 
mented one  official:  "This  Is  murder  for 
school  systems  that  have  been  getting  gas  at 
wholesale  prices." 

Education  Is  a  major  consumer  of  fuel 
The  Columbus  campus  of  Ohio  State  Uni- 
versity, for  example,  used  1.38  billion  kilo- 
watt hours  of  energy  last  year.  Purdue  Uni- 
versity's vehicle  fleet  burned  310.000  gallons 
of  gasoline  In  the  same  period  In  recent 
years,  the  electric  bUI  at  American  University 
In  Washington,  D.C..  has  topped  1  million 
dollars. 

Now,  there  are  widespread  complaints  that 
the  Government  in  Washington  is  keeping 
schools  In  the  dark  about  what  they  can 
expe<^  In  the  way  of  fuel  supplies  this  winter. 

"What  we  need  Is  some  direction  from 
Washington."  said  Stanley  Raub.  associate 
commissioner  of  education  In  New  York 
State    "We're  Just  spinning  our  wheels  " 

HIGHXR    PRIORITTES    BOUGHT 

Proposed  federal  regulations  for  fuel  oU 
would  classify  classrooms,  libraries  and  other 
nonresidential  facilities  as  "commercial,"  en- 
titled to  78  per  cent  of  last  year's  fuel  allo- 
cations. 

School  authorities  want  a  higher  priority 
than  that.  Declared  Robert  R  Splllane, 
superintendent  of  schools  In  New  Rochelle, 
NY  : 

"Schools  have  taken  on  a  lot  of  social  prob- 
lems and  Issuefi  In  the  past,  and  I  don't  think 
they  should  bear  the  brunt  of  the  energy 
crisis.  I  strongly  object  to  the  school  leading 
the  way  In  the  crisis  by  shutting  down." 

To  avoid  long  shutdowns,  legislatures  In 
minoL-?.  Indiana  Wisconsin  and  Georgia, 
among  other  States  are  considering  relaxa- 
tion of  rules  that  require  a  specific  number 
of  school  days  each  vear  This  would  permit 
school  districts  to  shorten  their  calendar*  as 
weather  and  fuel  conditions  warrant  Mary- 
land has  declared  three  extra  days  of  Christ- 
mas vacation  for  public  schools  as  a  con- 
servation measure 

In  Nebraska,  however,  schools  have  been 
told  they  will  have  to  make  up  all  lost  days 
by  extending  classes  Into  June  or  holding 
Saturdav  sessions. 


Many  schools  in  South  Dakota  already  are 
drawing  on  contingency  supplies  of  heating 
oil  and  propane  gas.  with  no  sure  replace- 
ments In  sight.  Some  have  put  antifreeze 
solutions  into  their  pipes  In  antlclpatkin  of 
closing. 

"HAND-TO-MOTTTH" 

The   situation   In   Oeorgl*   was  described 

as  "almost  haud-to-mouth."  An  official  re- 
ported that  some  schools  have  enough  fual 
to  carry  them  to  March  but  others  are  ap- 
prehensive about  January. 

In  an  effort  to  reduce  energy  consumption 
by  15  per  cent,  Governor  Dolph  Briscoe  of 
Texas  has  a&ked  schools  tu  end  all  classes 
by  2:30  pjTL  durixig  January,  February  and 
March. 

Houston  is  thinking  about  a  four-day 
school  week  and  elimination  of  summer 
school   to  save  on  air -conditioning. 

Suggestions  for  a  long  December  recesa 
have  been  turned  down  in  Michigan,  Cali- 
fornia and  Oregon.  In  the  latter  State,  the 
Idea  was  strongly  opposed  by  working 
mothers. 

John  W.  Porter,  Mlthlgan  s  euperu.lendent 
of  public  Instruction,  reported  that  136  or 
the  States  536  school  districts  are  having 
difficulty  getting  fuel,  and  "it  b  poselb.e  that 
these  distrlc'i.s  wUi  have  to  curtail  school 
hours,  extra-cumcuiar  activities,  or  both." 
He  added 

'My  biggest  concern  is  that  we  dont  know 
what  to  expect.  Every  day  out  of  Washington 
we  get  a  dlSerent  set  o:  guideiu^ee." 

The  fuel  squeeze  wab  especiajiy  feit  by 
private  elementary  and  secoi.dary  schools, 
many  of  which  have  boarders  and  extensive 
busing  servlcei.  Officiais  of  these  Independ- 
ent Insututioas  agreed  il-jey  would  probably 
have  to  fend  for  themselves,  since  the  Gov- 
ernment's chief  concern  will  probably  be  the 
public  schools. 

"We  are  getting  ready  to  roU  with  the 
punches."  said  William  Cohen,  headmaster 
of  Town  &  Country  School  In  Silver  Spring, 
Md. 

BtrSING  PaOBLXM 

Some  authori'i-iee  suggested  gasoline  ought 
turn  out  to  be  a  bigger  problem  than  fuel 
oU  in  the  lean  day;>  ahead.  Noting  'uhat  most 
school  districts  rely  on  bus  transportation 
of  students,  Harry  Benedetto,  head  or  the 
energy  task  force  Jor  the  Peuiiiylvania  de- 
partment of  education,  said ; 

"II  you  cant  get  them  there,  heating  fuels 
wont  help." 

At  Spring,  a  Houston  suburb,  busing  serv- 
ice has  been  eliminated  for  1,300  students 
who  live  close  enoiigh  to  schools  to  walk. 

WHERE   SCAaciTT   IS  ACUT« 

Hardest  hit  by  the  energy  crisis  i^jpears  to 
be  the  Northeastern  U-S..  where  there  is  a 
com.binaiion  of  cold  weather  and  tight  fuel 
supplies.  In  this  area — 

Ail  eight  branches  of  the  University  of 
Maine  have  been  advised  to  add  a  week  to 
winter  vacations.  Longer  mid-term  shut- 
downs are  scheduled  for  State  coliegee  in 
Vermont  and  for  the  University  of  New 
Hampshire.  The  latter  wUl  be  closed  for  six 
weeks. 

Tufts  University  in  Medford.  Mass.,  Bow- 
doln In  Brunswick,  Me.,  and  other  private 
schools  in  New  England  are  making  similar 
plans.  Lost  time  Is  to  be  made  up  by  ahort- 
eulng  examination  periods,  eluninaung 
spring  vacations  and  wc«-klng  into  the  sum- 
mer. 

At  some  of  these  institutions,  fears  are  be- 
ing expressed  that,  unless  conditions  ixn- 
prove,  they  wUl  begin  losing  students  to  col- 
leges and  universities  In  warmer  cUmatee. 

Even  closing  down  doesn't  always  solve 
fuel  problems 

Connecticut  school  authortties  have  been 
told  that.  If  they  shut  down  to  oonserve  fuel. 
their  allocations  for  the  shutdown  period  win 
be  given  to  other  customers  An  oil  official 
eald  the  only  way  colleges  and  other  large 
Institutions  oould  accumulate  fuel  saved  by 


shutdowns  would  be  to  put  their  reeervee  In 
storage  tanks — as  Lawrence  College,  in 
Appleton,  Wis  .  already  is  doing  to  augmeiit 
its  gas  heating  system.  However,  few  of  these 
institutions  have  blp  reserve  cap>acit1e8 

On  the  Pacific  Coast.  Oregon  State  Univer- 
sity has  ordered  major  reductions  In  heat- 
ing. Moet  buildings  will  be  heated  for  only 
'o'or  hours  in  the  momlng  and  two  i;.  the 
evening.  In  some  others,  all  heat  will  be 
turned  off.  At  the  beginning  of  December. 
Oregon  State  had  lees  than  a  week's  supply 
of  fuel  oil — and  no  idea  where  It  oould  get 
more. 

COMEBACK    rOB    COAI. 

Whenever  po«lble,  Institutions  of  higher 
education  are  going  back  to  ooal  for  heat- 
ing Ohio  University  in  Athens  has  always 
used  coal,  and  anticipates  no  problems  this 
year,  since  it  liee  Ir.  the  noddle  of  a  coal  belt. 

Lignite  or  brown  coal,  is  reported  to  be 
the  most  plentiful  fuel  In  North  Dakota — ao 
that  Is  what  the  University  of  North  Dakota 
will  use  for  heat. 

For  most  other  schools  and  colleges,  the 
onset  of  winter  offers  a  far  less  wanning 
prospect. 

Mr.  HARTKE.  Mr  President,  these  ex- 
tended vacations  or  delayed  openings 
could  mean  reductions  or  termlr.atlons  in 
the  educational  assistance  payments  to 
some  of  the  1.2  million  veterans,  widows, 
wives,  and  children  currently  receiving 
GI  bill  benefits  unles;  we  pass  the  meas- 
ure before  >ou  today  Recent  regulations 
issued  by  the  Administrator  of  Veterans' 
Affairs  have  taken  care  of  part  but  not 
all  of  the  problem  In  order  to  pro\'1de 
equitable  treatment  of  those  attending 
schools  not  leading  to  a  standard  coDege 
degree  as  well  as  to  clearly  establish  the 
authority  of  the  Administrator  to  con- 
tinue payments  In  situations  where  ed- 
ucational institutions  may  be  temporar- 
ily closed  due  to  the  energy  crisis  or  other 
emergency  conditions,  I  Introduced  8. 
2794  on  December  11  Yesterday,  the 
Committee  on  Veterans'  Affairs,  which  I 
am  pnvilPRPd  to  chair,  met  in  executive 
session  and  unanimously  ordered  8.  27&4 
with  technical  perfecting  language  fa- 
vorably reported.  The  problem  of  school 
closings  due  to  the  energy-  crisis  has  been 
far  reaching  and  is  of  considerable  di- 
mension. The  Veterans'  AdminLstratlon 
has  conducted  a  preliminary  f5eld  survey 
and  found  the  school  locat^l  In  Con- 
necticut, New  Hampshire.  Maine.  Ver- 
mont, Iowa,  Kentucky.  Texas,  and  Wash- 
ington will  be  affected  by  the  energy 
crisis  and  wUl  have  or  are  actively"  con- 
sidering extended  leave  policies.  Other 
States  may  be  affected  a■^  well 

Mr.  President,  my  good  friend,  the  dlf- 
ttnguLshed  Senator  from  Minnesota  'Mr. 
HuTCPHRET>  recently  wrot^  me  expre.ssing 
his  concern  for  veterans  attending  trade 
and  technical  schools  in  his  Stat.e  who 
would  be  affected  if  remedial  action  were 
not  taken.  In  his  letter  to  me.  Senator 
Humphrey  noted: 

Due  to  the  fuel  shortage  such  schools  may 
find  It  neceesary  to  shorten  Instructional 
weeks  or  close  for  short  pwrlods  Due  to  re- 
strictions under  current  law  authorized  ab- 
sences for  veterans  attending  these  schoola 
these  veterans  could  face  a  reduction  of  full 
pay  benefits  due  to  school  closings 

Mr  President.  I  have  also  received  a 
letter  of  support  for  this  measure  frwn 
James  M  Mayer,  presideit  of  the  N&- 
tionaJ  Aseoctation  of  Concerned  Veter- 
ans, an  organization  representing  over 
300,000  Vietnam  era  veterans  which  has 


4:^456 


CONGRESSIONAL  RECORD  — SENATE 


over  200  aflOllated  campuses  and  voca- 
tional technical  school  veterans'  clubs 
I  ask  unanimous  consent  that  his  letter 
be  included  In  the  Recorj)  at  tills  point. 

There  being  no  objection,  the  letter 
was  ordered  printed  as  follows: 
National  Association  or 

CONCHLNEB    VCTEIMNS. 

December  15, 1973 
Hon.    VANCE   Haktxx, 

Chairman.  Committee  on   Veterans'  Affairs 
ir^.  Senate  WoiMngton.  DC. 

Db.i«  Mb  Chaihman:  I  appreciate  very 
much  your  liitroduc;ng  S.  2794.  which  con- 
cerna  Itself  with  -The  Energy  Crisis  And  Ql 
am  PaymentB  For  Veterans." 

America's  energy  shortage  has  already  nec- 
essitated many  changes  m  our  citizens'  plan- 
ning and  hablto.  For  example.  m*ny  schools 
and  universities  are  considering  extended 
Chrlstmaa  vacations  to  conserve  energy  us- 
age. These  extended  vacations  would  save 
precious  fuel  but  could  also  spell  decreaaea 
or  terminations  for  veterans'  OI  BUi  aUow- 
ances.  under  current  Veterans'  Administra- 
tion regulations. 

It  enacted,  8.  2794  would  protect  OI  BUJ 
students  from  such  losses  In  their  allowances 
Therefore,  the  National  Association  of  Con- 
cerned Veterans  (NACV).  with  200  affiliated 
campus  and  vocational-technical  school  vet- 
erans clubs,  fully  supports  3.  2794  NACV 
hopes  that  3  2794  receives  expeditious  Com- 
mittee approval  and  unanimous  Senate  d*«- 
sage.  '^ 

■Thank  you,  Mr.  Chairman,  for  authorlzlnit 
S"^n?  '^™*'y  ^"^  effective  measure  suchas 
Respectfully  yours, 

Jamu  M.  Matb.  President. 

Mr.  HARTKE  I  also  ask  unanimous 
consent  that  appropriate  excerpts  from 
the  committee's  report  to  8.  2794  be  in- 
serted in  the  RicoRD  at  this  point. 

There  being  no  objecUon,  the  material 
was  ordered  printed  as  follows: 

Introduction   and   StrMitAaT   or  S    2794.   u 
RxpoaiTD 

1Q?;  i*^"*  '^  introduced  on  December  n, 
;?.?  'n  response  to  Increasing  reports  of  an- 
tn«^f^  «^nded  closings  of  educaUonal 
Institutions  due  to  the  energy  crlsU  Follow- 
ing receipt  of  the  report  of  the  Veterans'  Ad- 
ministration to  S.  2794,  the  full  committee 
S.t  ,S^w'**"i"'*  '*'^°°  °°  Tueaday.  Decem- 
^M.  ,  *  *'^''  •<^oP«on  of  a  perfecting 
technical  amendment  it  unanimously  ordered 
the  bill,  as  amended,  favorably  reported.  The 
,-^,*f  ""P^"***-  "ouJd  *mend  subsection 
^'^  °'  ""•  38'  ^""^^  States  Code  to 
T^Z"^  ,?*  Administrator  to  continue  U> 

II-^'  ^'''^-  »"<!  chUdren  durUig  periods 
r^,^  ^^'°''^  institutions  are  Wmpo- 
rsj^y  Closed  pursuant  to  an  established 
policy  proclaimed  by  the  President,  such  as 
^^^fL!°  conserve  energy,  cr  are  cJoeed  due 
to  emergency  condltlon.s.  ^^ 

aACxcaocwD  anb  dibcttssiok 
During  the  past  4  weeks,  it  has  become 
11^:^"-  '"?*.'  '"•'  ^t^ortages  and  the  result 
energy  crisis  could  have  serious  conaequen- 
o«  for  educational  Institutions.  MTnTschool 
heating  pianu  are  older  and  Inefflclent  units 
Which  use  larger  amounts  of  fuel  and  are 
not  readily  adaptable  to  fuel  consei^at^ 
measures  Consequently,  many  resident^ 
educational  Institutions,  particularly  thoee  in 
New   England  and   the  North  Centrals^tiS 

«deration.  plans  to  extend  normal  Christmas 
vmcations  or  to  delay  the  .t«^  of  the  spring 
semester  or  quarter. 

-The  Veterans'  AdmlnlsttraUon.  in  a  ore- 
»minA^fl«ldjmrvey  conducted  by  telephone 
rrom  various  regional  ofllc<»9  on  November  37 
and  3S.  1973.  found  that  a  sub«*ntu:  num- 


ber of  schools  are  going  to  close  or  are  ac- 
tively considering  closing  in  January.  These 
schools  are  located  in  Connecticut.  New 
Hampshire,  Maine.  Vermont,  Iowa.  Minne- 
sota. Kentucky.  Texas,  and  Washington.  Ad- 
ditional, more  detaUed  information  U  needed 
and  the  committee  strongly  believes  It  ap- 
propriate that  a  more  thorough  sxirvey  be 
conducted  prompUy  by  the  Veterans'  Ad- 
ministration which  would  cover  all  educa- 
tional Institutions  (Including  those  not  lead- 
ing to  a  sUndard  college  degree).  ThU  sur- 
vey should  reveal  In  greater  deUU  the  exact 
dimensions  of  the  problem  which  the  com- 
mittee suspects  may  be  even  larger  than 
that  indicated  by  current  avaUable  estimates. 

The  extended  vacation  or  delayed  opening 
of  new  schools  terms  is  of  particular  concern 
to  the  committee  because  such  closings  could 
mean  reductions  or  terminations  In  educa- 
tional assistance  payments  to  some  of  the 
1.2  million  veterans,  widows,  wives,  and 
children  currently  receiving  OI  blU  bene- 
flts.  Under  cxirrent  law  in  section  1780  of 
chapter  36.  title  38.  United  States  Code,  and 
regulations  issued  thereunder,  veterans  and 
eligible  persona  attending  Institutions  of 
higher  learning  receive  monthly  assistance 
payments  only  dvirJng  an  "ordinary  school 
year"  which  is  generally  9  months.  Regula- 
tions further  provide  that  college  enrolled 
veterans  will  not  have  their  monthly  assist- 
ance payments  reduced  during  the  school 
year  for  school  holidays  and  short  Intermis- 
sloiu  between  semesters  cr  periods  of  in- 
struction. More  extended  closings,  which  are 
a  result  of  the  energy  crisis,  presented  prob- 
lems that  were  no:  covered  by  existing  reg- 
ulations, however  Consequently,  the  com- 
mittee was  quite  concerned  that  many  veter- 
ans or  other  eligible  persons  would  have  their 
monthly  benefit  payments  reduced  or  even 
terminated  In  response  to  these  concerns  the 
Administrator  of  the  VeterazW  Administra- 
tion Issued  new  regulations  on  December  4. 
1973  effective  Immediately,  which  state  In 
part  that: 

"At  the  discretion  of  the  Administrator, 
payment  niay  be  made  for  breaks  including 
Intervals  between  terms,  within  a  certified 
period  of  enrollment  during  which  the  school 
Is  closed  under  an  established  policy  upon 
an  order  of  the  President  or  due  to  an  emer- 
gency situation  Leave  wUl  not  be  charged  for 
such  breaks." 

While  such  regulations  presumably  resolve 
problems  for  veterans  or  eligible  wives, 
widows,  and  children  attending  colleges.  It 
does  not  so  provide  for  those  attending  voca- 
tional, technical  or  trade  schools  not  leading 
to  a  standard  college  degree  Clause  2  of  sub- 
section 1780  (a)  restricts  students  enrolled 
In  courses  not  leading  to  a  standard  college 
degree  to  no  naore  than  30  days  of  absence  In 
a  12-month  period  (not  counting  as  abaences 
weekends  or  legal  holidays  established  by 
Federal  or  State  lawl . 

Thus.  In  order  to  provide  equitable  treat- 
ment for  thoee  attending  schools  not  leading 
to  a  standard  college  degree  as  well  as  to 
clearly  esUbllsh  the  authority  of  the  Admin- 
istrator to  continue  payments  In  all  situa- 
tions where  educational  Institutions  may  be 
closed  by  reason  of  the  energy  crisis  or  for 
other  emergency  reasons,  8.  2794  was  intro- 
duced on  December  11.  1973  The  Veterans' 
Administration  reported  favorably  as  to  the 
Intent  of  8  2794  tn  Its  report  of  December 
IS.  1973  with  suggestions  for  technical  per- 
fecUng  language  which  have  been  generallv 
incofporated  into  the  bill  as  reported. 

8  2794.  as  reported,  would  allow  con- 
tinued educational  assistance  pavmenta  for 
veterans  under  chapter  34.  and  eligible  wives, 
widow*,  and  children  under  chapter  3*  (and 
continued  rubalstence  allowance  payments 
to  veterans  enrolled  In  chapter  81  vocaOonal 
rahabuiution  programs)  where  an  educa- 
tional Inatltutlon  U  temporarily  cloaed  under 
•sUbllabed  policy   based  upon  an  faecutlre 


December  19,  1973 


order  of  the  President  or  due  to  ai.  en.er- 
gency  situation.  Schools  which  close  due  to 
the  current  energy  crisis  would  obviously 
present  a  sltuaUon  where  the  Administrator 
would  permit  conUnued  educaUonal  assist- 
ance payments.  It  Is  also  the  committee's 
Intention  In  permitting  payments  in  an 
"emergency  situation"  to  expand  the  Admin- 
istrators  authority  to  continue  payments  to 
other  situations  where  schools  cloae  dua  to 
certain  natural  calamities  such  as  (1)  earth- 
quakes, floods,  hurricanes,  and  severe  snow 
storms;  (2)  breakdowns  of  facillUes  such  as 
boilers  and  heaUng  systems;  and  (3)  other 
emergency  situations  where  there  is  an  ex- 
pectation that  the  closing  will  be  for  a  tem- 
porary period  of  Ume.  It  Is  not  contemplated 
by  the  committee  that  thU  authority  would 
be  extended  to  Include  situations  such  as 
the  closing  of  Individual  schools  due  to  fin- 
ancial problems. 

In  order  to  effecUvely  monitor  the  oper- 
ation of  this  discretionary  authority.  It  Is 
expected  that  the  House  and  Senate  Com- 
mittees on  Veterans'  Affairs  will  be  notified 
by  the  Administrator  of  the  exercise  of  such 
authority  in  any  case  within  30  days  of  Its 
Implementation. 

The  committee  believes  that  enactment  of 
this  bm  la  thoroughly  and  immediately  war- 
ranted. Veterans,  particularly  thoee  with  de- 
pendents must  rely  upon  their  educational 
assistance  checks  not  only  for  educational 
costs  but  for  subsistence  expenses  as  well 
School  closings  occasioned  by  the  energy 
crisis  generaUy  wlU  not  present  realistic  op- 
portunities for  veterans  to  find  new  em- 
ployment during  these  periods,  and  they  will 
depend  on  their  OI  assistance  for  continued 
living  expenses.  At  the  same  time,  the  com- 
mltteo  wishes  to  emphasize  that  veterans  and 
eligible  persons  may  conserve  their  entitle- 
ment m  these  cases  by  electing  not  to  re- 
ceive payment  for  the  period  In  which  the 
school  Is  closed.  The  committee  expects  the 
Veterans'  Administration  to  notify  veterans 
in  an  appropriate  manner  of  their  option 
either  to  continue  receiving  payments  or  to 
conserve  their  entlUement. 

COST    XSTtMATTB 

In  accordance  with  section  272(a),  of  the 
Legislative  Reorganization  Act  of  1970  (Pub- 
lic Law  92^10).  the  committee  requested  the 
Veterans'  Administration  to  estimate  any 
oosts  occasioned  by  this  bUl  for  the  first  5 
flscal  years  In  its  report  to  S.  2794  The  report 
of  the  Veterans'  Administration  to  S  2794 
(cleared  with  the  Office  of  Management  and 
Budget)  does  not  provide  any  estimate  of 
cost  and  the  committee  understands  from 
staff  conferences  that  the  Veterans'  Admin- 
Istratlon  is  of  the  opinion  that  enactment  of 
this  bUl  would  have  "no  significant  cost  Im- 
pact." 

Accordingly,  the  committee  baaed  upon 
such  Information  as  is  available  from  the  Vet- 
erans' Administration,  estimates  that  enact- 
ment of  this  bUl  might  have  some  .slight  but 
no  significant  cost  Impact  on  the  educational 
assistance  program.  Should  additional  cr«t« 
In  fact  be  Incurred  in  the  future  the  com- 
mittee expecu  to  be  pr-n.^-:-.  :■  '.r,r".:c<i  hv 
the  Veterans'  Administration  as  s-io.i  as  such 
information  become.^  avajiabie 

TABTTLATION    OF    VrrTT»    CA-rr    Hf    COMICTTTX 

Pursuant  to  section  133(b)  of  the  I^pLsla- 
tlve  Reorganhsatlon  Act  of  194«.  as  amended 
the  foUowing  is  a  tabulation  of  votea  cast  In 
person  or  by  proxy  of  the  Mwnbere  of  the 
Committee  on  Veterans'  Affairs  on  a  motion 
to  report  8  3794  with  an  amendment  fav- 
orably to  the  Senate : 


Vance  Hartke  Clifford  P.  Hansen 

Herman  E  Talmadge  8trom  Thurmond 
JenningB  Randolph  Robert  T  Stafford 
Harold  B   Hughes  James  A   McClure 

Alan  Cranston 

Nays — 0 


December  ly,  1973 


CONGRESSIONAL  R ECORD  —  SENATE 


424^ 


;>i 


Mr.  HARTKE.  Mr.  President,  finallj-.  I 
want  my  colleagues  to  know  that  I  have 
been  in  contact  with  the  distinguished 
chairman  of  the  House  Committee  on 
Veterans'  Affairs.  Mr.  Dorn,  who  is 
equally  concerned  about  thi.s  problem 
and  who  introduced  similar  legislation 
this  past  week.  It  i.-;  my  understanding 
that  the  House  is  prepared  to  act  expe- 
ditiously on  this  measure  should  we  pass 
it  today  so  that  it  could  bo  .sent  on  to 
the  P^e.'^idcnt  prior  to  our  ad.;oumment 

I  would  like  to  ixpress  my  apprecia- 
tion to  all  members  ot  the  Committee 
on  Veterans'  Affairs,  for  their  coopera- 
tion and  efforts  to  get  tiiis  bill  promptly 
reported.  In  particular,  I  would  like  to 
express  my  appreciation  to  the  dis- 
tinguished ranking  minority  member  of 
the  committee,  Mr  Hansen,  and  to  the 
distlngiii-hed  ranking  minority  member 
of  the  Sulx'ommittce  on  Readiustment, 
Education  and  Emp;o>:nent,  Mr  Staj- 
roRD,  for  their  support  and  assistance  in 
speeding  committee  consideration  of  this 
measure  I  urge  my  collea.;ues  to  support 
S.  2794  and  en.'ure  that,  the  veterans  on 
the  GI  bill  will  not  have  their  assistance 
payments  cut  needlessly  because  of  the 
energy  crisis. 

The  amendment  was  agreed  to. 

The  bill  was  ordered  to  be  engrossed 
for  a  third  reading,  read  the  third  time, 
and  passed. 

Mr.  MANSFIELD.  Mr.  President,  that 
completes  the  call  of  the  calendar 


UNANIMOUS-CONSENT  AGREEMENT 

Mr.  M.'VNSFIELD.  Mr.  President,  it  Is 
anticipated  that  sometime  this  after- 
noon, the  Senate  will  seek  to  proceed  to 
the  consideration  of  Calendar  No.  609, 
Senate  Joint  Resolution  176,  a  joint  reso- 
lution to  authorize  the  production  of 
petroleum  from  Naval  Petroleum  Reserve 
No.  1. 

I  ask  unanimous  consent  that  when 
that  bill  is  called  up.  there  t)e  a  time 
limitation  of  20  minutes  att.ached  there- 
to, with  the  time  to  be  equally  divided 
between  the  dlstintruLshed  Senator  from 
Nevada  (Mr.  Cannon >  and  the  distin- 
guished Republican  leader,  the  Senator 
from  Pennsylvania  (Mr.  Hugh  Scott)  , 
under  the  usual  rule. 

The  ACTTNO  PRESroENT  pro  tem- 
pore. Is  there  objection?  Without  objec- 
tion. It  Is  so  ordered 

Mr.  MANSFIELD  I  thank  the  distin- 
guished chairman  of  the  committee. 


DISTRICT  OF  COLUMBIA  8ELP-OOV- 
ERNNTKVr  ACT— CONFERENCE  RE- 
PORT 

The  Senate  continued  with  thp  con- 
sideration of  the  conference  report  on  S. 
1435,  a  bill  to  provide  an  electied  Mayor 
and  City  Council  for  the  District  of  Co- 
lumbia, and  for  other  purposes. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Who  yields  time? 


ORDER  OF  BUSINESS 

Mr.  EAGLETON  Mr  President,  I  sug- 
gest the  absence  of  a  quonim,  the  time 


for  the  quorum  call  to  be  charged  to  the 
Senator  from  Maryland 

The  ACTHiQ  PRESIDENT  pro  tem- 
pore. Is  there  objection?  Without  objec- 
tion, it  is  so  ordered.  The  clerk  will  call 
the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  the  order  for 
the  quorum  cali  be  rescinded. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection  it  is  so  ordered. 

Mr.  EAGLETON.  Mr.  President,  I  ask 
for  the  yeas  and  nays  on  the  pending 
business. 

The  yeas  and  nays  were  ordered. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Who  yields  time? 

Mr.  EAGLETON.  Mr.  President,  I  sug- 
gest the  absence  of  a  quorum,  with  the 
time  to  be  charged  to  the  Senator  from 
Missouri. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  is  so  ordered. 
The  clerk  will  call  the  roll. 

The  legislative  clerk  proceeded  to  call 
the  roll. 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 
I  ask  unanimous  consent  that  the  order 
for  the  quorum  call  be  rescinded. 

The  PRESIDING  OFFICER  (Mr. 
Clark).  Without  objection,  it  is  so  or- 
dered. 


ORDER  FOR  YEAS  A1\T)  NAYS  ON  A 
CUSTOMS  CO.NTVENTION 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 

I  ask  unanimous  consent,  as  in  executive 
session,  that  it  be  in  order  at  any  time  to 
order  the  yeas  and  nays  on  order  No.  24, 
Executive  P.  93d  Congress,  first  session, 
the  Customs  Convention  on  the  Inter- 
national Transit  of  Goods. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  ROBERT  C.  BYRD.  Mr.  President, 
I  ask  for  the  yeas  and  nays,  as  in  execu- 
tive session,  on  order  No  24,  Executive  P. 
93d  Congress,  first  session,  the  Customs 
Convention  on  the  International  Transit 
of  Goods. 

The  yeas  and  nays  were  ordered. 


DISTRICT  OF  COLUMBIA  SELF-GOV- 
ERNMENT ACT— CONFERENCE  RE- 
PORT 

The  Senate  continued  with  the  con- 
sideration of  the  report  of  the  committee 
of  conference  on  the  disagreeing  votes 
of  the  two  Houses  on  the  amendments 
of  the  House  to  the  bill  'S  143,5 '  to  pro- 
vide an  elected  Mayor  and  City  Council 
for  th"  I>i=:trict  of  Columbia,  and  for 
other  purposes. 

Mr.  MATHIAS.  Mr  President,  it  has 
been  brought  to  my  attention  that  there 
may  be  some  uncertainty  as  to  whether 
the  va-it  number  of  Government  em- 
ployees residing  In  the  District  of  Colum- 
bia will  be  able  to  participate  in  the 
local  elections  established  in  th"  home 
rule  bill 

Mr  E.^.OLFTON  Do  I  ur-'erstand 
that  the  rcnrern  is  whether  the  Hatch 
Act  might  prohibit  Government  em- 
ployees from  imdertaklng  political  activ- 
ity in  local  partisan  elections? 


Mr  MATHIAS  Yes  As  you  know  the 
Hatch  Act  prohibits  political  activity 
by  employees  of  the  executive  branch 
and  the  District  of  Colum.bla  govern- 
ment in  partisan  political  activities  E>oes 
this  bill  alter  that'' 

Mr.  EAGLETON.  Section  740  provides 
that  the  fact  that  someone  is  employed 
in  the  competitive  or  except.ed  service 
of  the  United  States  shall  not  disqualify 
him  from  being  a  candidate  in  the 
partisan  campaigns  for  the  position  of 
mayor  or  council  member. 

Mr.  MATHIAS  The  home  rule  bill 
refers  to  candidacy  for  offices  and  says 
nothing  about  whether  Government  em- 
ployees may  actively  campaign  for  can- 
didates or  otherwise  actively  participate 
In  the  partisan  local  flections 

Mr  E.AGLETON  That  Is  correct. 

Mr.  MATHIAS  Dr^es  that  mean,  then, 
that  all  the  Dsitnct  of  Columb;a  resi- 
dents who  are  Government  employees 
are  covered  by  the  Hatch  Act  and  will 
be  prohibited  from  participating  in  the 
partisan  elections  we  are  authorizing  In 
this  home  rule  bill? 

Mr.  EAGLETON.  The  Hatch  Act  does 
cover  Government  employees  residing  in 
the  District,  and  as  a  rule  the  Hatch  Act 
prohibits  Gcvernment  employees  fromi 
participatmg  m  partisan  campaigns  and 
elections.  However,  the  Hatch  Act  also 
contains  an  exemption  provision.  Ac- 
cording to  this  provision.  Maryland  and 
Virginia  communities  in  the  immediate 
vicinity  of  the  District  of  Columbia,  or 
communities  in  which  a  majority  of  the 
voters  are  employed  by  the  Government 
of  the  United  States,  may  apply  to  the 
U.S.  Civil  Service  Commission  for  an 
exemption  from  restrictions  of  the 
Hatch  Act. 

If  a  community  applies  for  and  is 
gTant.ed  an  exemption  from  the  Hatch 
Act,  the  Grovemment  employees  residing 
in  that  community  may  participate 
actively  in  local  partisan  political  cam- 
paigns and  elections  as  an  independent 
candidate,  or  on  behalf  of,  or  tn  opposi- 
tion to,  an  independent  candidate. 

Mr.  MATHIAS.  But  the  District  of 
Columbia  has  not  obtained  such  an 
exemption. 

Mr.  EAGLETON.  No.  Until  now,  there 
have  been  few  elections — partisan  or 
nonpartisan — in  the  District.  Thus,  there 
has  not  been  the  pressing  need  to  free 
Individuals  for  political  activity  that  ex- 
ists now  that  liie  mayor  and  council 
members  are  to  be  elected  in  partisan 
races? 

Mr.  MATHIAS.  Can  the  District  of 
Columbia  qualify  for  an  exemption? 

Mr  EAGLETON  As  I  read  Uhe  Hatch 
Act,  the  District  of  Columbia  could  ap- 
ply and  qualify  for  an  exemption  since 
it  meets  ihe  statutorj'  cri'ierlon  of  bemg 
a  mur.icipaliiy  m  which  the  majority  of 
voters  .ire  employed  b>  the  Goverimient 
of  the  United  Stales  Clearlv.  with  liie 
passage  of  the  home  rule  bill  the  other 
criterion  set  forth  m  the  sia'uu'te  wiU  ex- 
ist; namely,  the  existence  of  "si^eclal  or 
imusual  circtimstances"  so  that  'it  is  in 
th.e  domestic  Interest  of  the  employees 
and  individuals  to  pe.-mtt  that  political 
participation 

Mr  MATHIAS  Is  there  ar^vthmg  in 
the  Hatch  Act  which  precludes  the  Dis- 


\ 


42458 


trtct  or  Columbia  from  eligibility  for  an 
exem^ption? 

Mr  EAOLETON.  No.  The  exemption  is 
available  to  permit  poliUcal  acUvlty  and 
management  by  employees  and  indi- 
viduals  to  whom  the  Hatch  Act  provi- 
alons  apply,  and  the  Hatch  Act  appUes 
to  an  employe*  in  an  executive  agency 
or  an  individual  employed  by  the  gov- 
ernment of  the  District  of  Columbia" 
Thus  the  District  of  Columbia  Is  eligtbie 
to  apply  for  exemption 

Mr.  MATHIAS.  I  take  It  that  the  Dis- 
trict must  demonstrate  to  the  Civil  Serv- 
ice Commission  that  a  majority  of  Its 
l^^^^l  employed  by  the  Ctovemment 
of  the  United  States,  ""cuu 

Mr,  EAOLETON.  That  Is  corrtsct 

Mr.  MATHIAS.  We  should  understand 
who  Is  included  in  the  count  of  em- 
ployees of  the  Government  of  the  United 

»r*'rf^  military  personnel  included? 

Mr.  EAOLETON.   Uniformed  miliiSy 
personnel  are  not  counted,  avilian  mili- 
tary personnel   are   counted  and    if  it 
would  make  a  diflerence  to  the  outcome 
uielr  family  members  are  counted 

hi*^v,*^T^^^    ^^  employees  of  all 
branches  of  Government  included? 
th^    EAGL£7rON.   Yes.   Employees  of 
the   executive.   legislative,   and   judicial 
branches,  and  of  Independent  regiUatory 
agencies,  commissions,  et  cetera 
«f  ^^  MATHIAS.  The  status  of  District 
lufdlTde^ed'.^^^"^^"^     ^'^'"^^^^ 
Mr.  E.^OLETON.  District  of  Columbia 
government  employees  should  be  counted 
nJr^^ilT  °'  ^^^  Government  of  the 
^^^"^  ^'1^*'  ^^°  *^^  ^^i^  Act  pre- 
dion relating  to  the  District  of  Columbia 

rZ,^^"^  ^  ^^  ""^  ^  ^9*0-  District  oJ 
SfS  f.  ^°''^"^^°*  employees  were 
considered  part  of  the  executive  branch 
of  the  Federal  Government.  Speclttc 
rererence  was  made  to  employees  of  the 
D^stnct  of   Columbia.  In   the   word."? 

J^'J^  ^^^  ^^  employees  of  the 
Federal  Government."  in  fact,  the  lan- 

^MO^re^""*  ^^^'^  ^'  '^  tended  In 


CONGR£^IONAL  RECORD  —  SExNATE 


Counsel.  U.S.  Civil  Servlc*-  Com.-nis.siun. 
containing  the  following  Info.-mAiiim: 
(•)  The  DAine  of  the  are*  with  date  and 
authority  erf  lu  lncon>oratlon  and  deakma- 
tton;  ^^ 

(b)  The  number  of  reglatered  voters  and 
number  of  government  employeee  registered 
as  Totere  (eetlmatea  from  the  local  registra- 
tion clerk  or  other  knowledgeable  Bourr»  wUl 
sullloe  if  era<rt  flg\irea  nn  not  available  i 

(c)  A  uat  of  local  municipal  offloea  in- 
volved: 

(d)  A  statement  showing  how  nominations 
are  made  and  the  manner  in  which  elections 
are  conducted, 

(e)  The  name  of  the  principal  government 
agenclea  in  which  the  government  employeee 
to  be  affected  are  employed;  and 

(f)  A  concise  statement  showing  in  what 
way  the  employeee  and  the  local  municipal- 
ity will  be  benefited  If  the  request  Is  granted 
and  in  what  way  there  would  be  a  detri- 
ment to  their  domestic  Interests  if  it  is 
denied. 


December  19,  197S 


8k:.  14.  Poc  the  purpo««  of  this  act  ner- 
jons  employed  In  the  government  of  tti  SL. 
met  of  ColumbU  Shall  be  deemed  to^  em- 
pJoyed  in  the  executive  branch  of  ^^0^1 
ernment  of  the  United  SUtea  .  .  .■ 

This  section  was  never  amended  but 
the  prectee  language  disappeared  when 
the  Hatch  Act  and  related  laws  were  re- 
vised and  reenacted  into  title  5  of  the 
United  states  Code  The  revisions  In  19«5 
Se  law  ^        *"''  ^'^'«""^«  changes  In 

tK**,'' J^^P^-^"^  -^  '  understand  then 
S  .  ?^i""''^  ^^^  ^  ""^^^  on  the  fact 
that  District  of  Columbia  government 
employees  should  be  considered  U  S  Gov- 
ernment employee?  for  purpose.-;  of  the 
Hatch  Act  and  thus  for  purposes  of 
qualifying  for  the  exemption  t^m  the 
Match  Act. 

Mr  EAOLETON  Yes 

fn^H  ^"^^S  How  is  the  appUcatlon 
for  the  exemption  made'' 

Mr  ^EAOLETON.  A  letter  must  be  sub- 
mitted to  the  Civil  Service  CommlMton 
by  residents  of  the  community.  A  gromj 
or  individual  makes  the  request  by  send- 
ing a  letter  to  the  Office  of  the  General 


Mr.  MATHIAS  Assume  for  a  minute 
that  the  District  of  Columbia  appUes  for 
and  Is  granted  an  exemption.  The  affect- 
ed employees  will  now  be  able  to  par- 
ticipate in  the  partisan  elections  as  Inde- 
pendent candidates,  on  behalf  of.  or  in 
opposition  to,  independent  candidates 

Mr    EAOLETON.  Yes. 

Mr  MATHIAS.  And  employees  of  the 
District  of  Columbia  Department  of  Mo- 
tor Vehicles  will  be  able  to  parUclpate 
to  the  same  degree  as  employees  of  the 
U.S.  Department  of  Labor?  That  Is 
correct? 

Mr.  EAOLETON.  That  Is  correct 

Mr.  MATHIAS.  Mr.  President,  I  vleld 
2  minutes  to  the  Senator  from  New 
Mexico  fMr   DoMxincit. 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  New  Mexico  is  recognized  for 
2  minutes. 

Mr.  DOMENICI.  Mr.  President.  I  thank 
the  distinguished  Senator  from  Mary- 
land. 

First,  I  want  to  compliment  both  the 
ranking  member  and  the  chairman  of 
the  committee,  and  the  staff,  for  the  dili- 
gence they  have  exhibited  in  getting  us 
to  this  historic  day.  I  am  sure  that  we 
are  going  to  pass  the  home  rule  bill  I 
am  equally  certain  that,  over  the  years 
there  will  be  improvements  on  It  I  am 
proud  and  pleased  to  be  a  small  part  of 
seeing  the  desires  of  so  manv  people  in- 
cluding leading  legislators  and  citizens  of 
this  area,  finally  reaciilng  fruition  today 

I  have  only  one  concern,  which  is  not 
sufficient  to  cause  me  to  vote  against  the 
bill,  but  it  Is  sort  of  a  red  flag  in  that  I 
predict  we  will  have  some  problems  be- 
cause we  decided  to  have  partisan  elec- 
tions. 

As  some  Senators  know.  I  was  a  mayor 
before  I  came  to  the  Senate.  I  served  a 
community  that  did  not  have  partl-^an 
elections.  It  was  a  communltv  that  had 
many  Federal  employees  in  Its  environs 
perhaps  as  many  as  12  to  15  perc«it  We 
went  through  a  ciiarter  revision    As  we 
looked  at  all  the  facts,  we  determined 
that  if  we  turned  our  elecUons  into  par- 
tisan elections,  there  were  certain  ad- 
vantages. Indeed,  the  advantages  inher- 
ent in  the  two-party  system,  but  there 
would  be  disadvantages,  too,  because  we 
would  be  saying  to  manv  leading  clUzens 
and  acUvist*  who  wanted  to  participate 
"You  carmot  participate  because  of  the 
Hatch  Act." 


In  this  Instance,  the  alternative  u-;us 
to  have  nonpartisan  eiecUcn^  ai.d  ail 
resldenta  of  the  communltv  whr.  other- 
wise qualified  could  ;,aj-u>  .pate  t>ecuu.e 
the  Hatch  Act  would  not  preclude  their 
activity. 

By  going  partisan  here  In  the  District 
of  Columbia,   we  run  into  very  serious 
problems  with  the  Hatch  Act.  I  voice  this 
concern,  because  in  the  District  of  Co- 
lumbia,    of     the    approximate    305.000 
registered  voters.   135.141  or  40  percent 
would  be  subject  to  the  Hatch  Act  and 
thus  unable  to  actively  parti.  lj)ale  in  the 
election  process.  Chairman  Eacletoh  has 
attempted  to  remedy  this  situation  In  a 
separate  amendment  by  excluding  the 
present  Mayor  and   all   bona  fide  City 
CouncU  candidate*  from  Hatch  Act  pro- 
visions. It  would  seem,  however,  that  this 
will  only  reach  a  small  percentaRe  of  this 
40  percent  and  thus  will  eliminate  by 
law   the   active   participation  of   many 
others  in  the  election  process  of  this  new 
form  of  government. 

I  sincerely  believe  that  by  adopting 
a  partisan  election  process  you  will  in- 
herently exclude  many  from  the  right 
or  self-government.  I  voice  this  objection 
because  this  bill  comes  very  close  to  offer- 
ing the  needed  provisions  for  self- 
government,  but  tills  one  provision  will 
deny  such  a  large  percentage  of  their 
right  to  participate  In  a  complete  home 
rule. 

I  think  we  should  have  faced  up  to  the 
issue  and  asked  whether  Congress 
wanted  people  participating  in  partisan 
elections  removed  from  the  Hatch  Act: 
and  if  not.  we  should  have  decided  to 
make  this  a  nonpartisan  city  election. 
ParUclpatlon  would  not  have  been  mini- 
mized. I  can  cite  numerous  clUes  In  this 
country  that  have  nonpartisan  elections, 
with  tremendous  participation  and  no 
problem  with  the  Hatch  Act,  among  them 
Houston.  Dallas,  and  Albuquerque.  N 
Mex.  Most  California  communities  have 
nonpartisan  elections. 

So  we  would  have  had  activity  and 
partlclpaaon.  and  we  would  not  have  had 
the  problem  of  basically  eliminating  in 
this  instance,  about  40  percent  of  the 
electorate  of  the  District  which  cannot 
participate  activelj-  because  they  are 
hatched,"  so  to  speak. 

I  do  not  want  to  change  the  Hatch  Act 
to  let  them   participate,   unless  we  are 

Tv,^^*  ^.^'^  ^^  '°'"  *"  ^l^i^ens  across 
this  land,  in  all  cities,  and  I  do  not  favor 
that. 

So  I  hidlcate  my  concern  and  predict  a 
rather  serious  problem,  when  the  citizens 
And  out  that  they  are  Indeed  given  par- 
tJclpation  with  the  left  hand  and  that 
it  is  taken  away  with  the  right  hand  of 
the  Hatch  Act  I  hope  It  does  not  prove 
to  be  too  onerous  a  burden.  I  hope  that 
participation  Is  maximum  and  that  all 
citizens  who  are  Interested  wUl  work  to- 
ward making  home  rule  actually  function 
on  a  day-to-day  basis  in  this  commu- 
nity I  hope  that  what  I  have  predicted 
will  not  come  true 

I  th^nk  the  distinguished  ranking 
member  of  the  committee  for  yleldine 
to  me 

Mr  KENNEDY  Mr  President  I  am 
Pleased  to  have  this  opportunity  to  offer 
my  support  for  approval  of  the  confer- 


December  19,  1973 


COxNGRESSIONAL  RECORD  —  SIN  ATE 


42459 


ence  report  on  legislation  to  provide 
elected  city  officials  li-.  Wa<;huigtou.  D.C., 
the  right  to  self-goveriirr.ent  Is  enjoyed 
by  Americans  in  ever>  city  m  every  State 
of  this  Union.  But  here  in  the  Capital 
City  of  the  Nalio:;,  self-determination 
and  local  control  have  been  denied  the 
city  s  residents  for  over  a  century.  Every 
reasonable  Member  of  this  Senate  will 
surely  agree  that  Washlngtonla  ns,  like 
other  Americans,  deserve  to  select  those 
who  administer  their  local  government. 
None  of  us  will  den.v  that  the  uniqueness 
of  this  city,  due  to  the  presence  of  the 
Federal  Government  and  the  national 
legislature,  grants  certain  perquisites  to 
the  Federal  Establlsliment.  Yet,  I  have 
been  dismayed  over  the  continuing  ob- 
stinacy that  has  prevented  Washington's 
citizens  from  exercising  the  right  to  self- 
government. 

Throughout  the  time  I  have  served  In 
the  Senate,  my  efforts  have  been  devoted 
to  the  enactment  of  legislation  that 
would  assure  the  fundamental  rights  of 
self-determination  to  the  taxpayers  of 
the  Capital  City.  Election  of  city  govern- 
ment officials  Is  an  important  step  in  that 
direction.  And,  after  this  bill,  S.  1435,  Is 
enacted,  it  will  be  fitting  to  approve  other 
pending  legislation  to  pro\ide  full  con- 
gressional representation  for  the  District 
of  Columbia.  For.  the  people  of  this  city 
need  parity  of  representation  in  the  Con- 
gress, as  well  as  in  city  hall. 

Many  of  the  dedicated,  hardworking 
citizens  who  have  been  stniggling 
throughout  the  years  for  suffrage  In  this 
town  are  said  to  be  skeptical  and  appre- 
hensive over  the  pending  legislation.  Ttie 
distinguished  chairman  of  the  Senate 
District  of  Columbia  Committee,  who  is 
largely  responsible  for  the  success  of 
this  bill,  succinctly  established  the  facts 
of  life  in  this  regard,  when  he  noted, 
"That  the  Lord  giveth.  and  the  Lord  can 
taketh  away,"  and  so  it  Is  \^lth  the  home 
rule  bill.  Congress  authorized  home  rule 
for  the  District  of  Columbia,  and  Con- 
gress can  take  It  away  Writing  In  the 
editorial  page  of  the  Washington  Post 
on  December  17,  R<^bert  .^.sher  asserts 
that  the  proposed  turnover  of  authority 
to  local  control  has  one  big  catch  to  It: 

If  some  act  of  the  elected  city  council  dis- 
pleased Congress,  It  could  be  repealed  on 
Capitol  HUl:  slmUarly,  if  Congress  wished 
to  enact  certain  restrictions  of  Its  own  on 
the  city  government.  It  would  always  be 
free  to  do  so.  Above  all.  If  this  whole  experi- 
ment In  modified  self-government  doesn't 
work  out  to  the  satisfaction  of  Congreea,  the 
entire  charter  could  be  pulled  out  from 
under  the  community. 

Washlngtonlans  feel  apprehensive 
about  this  measure,  because  they  know 
that  no  other  jurisdiction  within  these 
United  States  Is  subject  to  such  caprt- 
clousness  regarding  the  right  to  vote. 

I  fully  understand  the  concern  of  these 
citizens  and  I  believe  I  can  appreciate 
their  reasons  for  being  doubtful. 

But.  I  also  believe  this  is  an  oppor- 
tunity to  continue  pressing  for  the  full 
guarantees  of  self-determination  in  every 
respect.  Such  guarantees  rightfully  be- 
long to  Washlngtonlans  as  they  do  for 
Bostonlans.  Chlcagoans.  New  Yorkers, 
Arllngtonlans,  and  to  every  citizen  of 
this  great  Republic.  It  Is  not  necessary 
for  Washlngtonlans  to  prove  they  de- 


serve the  right  to  representative  govern- 
ment. Tliat  right  Ls  g.'-unted  by  the  Con- 
stitution. 

It  Is  not  necessar>-  for  Washlngtonlans 
to  forswear  allegiance  to  any  Member  of 
Congress,  hoping  for  a  innu.-r.un;  of  mec- 
dllng  hi  local  affairs.  Authority  over  local 
affairs  will  be  extended  upon  enactment 
of  this  measure. 

It  is  only  necessary,  that  we  in  the 
Congress,  and  the  American  people  out- 
side of  Washington,  commit  our  energies 
and  attention  to  the  passage  of  legisla- 
tion, Constliutional  amendments,  and 
other  lawluj  procedures  that  can  deliver 
the  exercise  of  this  basic  nght  tx>  our  fel- 
low Americans  in  our  Capital  city. 

I  see  the  passage  l1  S  1435  as  simply 
another  episode  in  the  campaign  for  citi- 
zens' rights.  Passage  of  this  bill  Is  one 
more  clear  demonstration  tliat  the  bar- 
riers to  self-determination  for  the  Dis- 
trict of  Columbia  are  crumbling. 

In  1960,  Washlngtonlans  voted  for  the 
first  time  In  a  national  Presidential  elec- 
tion. The  first  elected  school  board  mem- 
bers were  chosen  in  1968.  Washington 
sent  Its  first  Delegate  to  the  Congress  in 
1971. 

Next  year,  1974,  will  bring  the  city  its 
first  elected  local  government. 

During  these  14  years  we  have  seen 
more  strides  toward  self-determination 
than  in  the  160  years  since  1800  when  the 
city  became  the  seat  of  government. 

Fun  representation  by  the  people  and 
for  the  people  of  the  District  of  Columbia 
is  Inevitable.  And  I  believe  we  shall  reach 
that  goal  before  this  decade  is  ended. 

Let  us,  therefore,  commemorate  what 
we  are  doing  here  today  as  another  ad- 
vance toward  suffrage. 

Senator  Thomas  Eagleton,  the  dis- 
tinguished chairman  of  the  Senate  Dis- 
trict of  Columbia  Committee,  rates  the 
highest  praise  for  his  work  in  focusing 
the  attention  of  the  Senate  on  this  very 
important  legislation.  He  deserves  the 
highest  commendation  for  devoting  so 
much  of  his  time  and  energy  to  the  com- 
pletion of  this  measure. 

At  the  same  time.  Congressman 
Ch.\rles  Dxcgs.  chairman  of  the  House 
District  of  Columbia  Committee,  right- 
fully deserves  the  plaudits  of  us  all  for  his 
skill  in  guiding  a  home  rule  biU  through 
the  House  of  Representatives.  It  is  not 
Incidental  that  Chairman  Dices  is  the 
first  chairman  since  1947  to  successfully 
report  a  home  rule  bill  to  the  full  House 
His  personal  diligence,  his  knowledge,  his 
legislative  skills,  and  his  deep  commit- 
ment to  the  principles  of  citizens'  rights 
have  served  to  make  this  measure  more 
than  a  dream. 

It  is  my  hope  that  this  bill  will  signal 
the  rush  to  finish  the  job  of  ensuring 
suffrage  for  the  District  of  Columbia. 

Washlngtonlans  have  waited  long 
enough.  Self-determination  Is  the  birth- 
right of  every  other  American.  Our 
failure  to  implement  procedures  to  Install 
fully  representative  government  for 
residents  of  the  Capital  City  Is  taexcus- 
able.  And  It  is  imderstandable  that  some 
observers  label  that  hiactlon  as  uncon- 
stitutional. 

This  Is  a  call  for  the  Congress  to  guar- 
antee that  S.  1435  is  Indeed  another  blow 
for  freedom  and  justice. 


Mr.  B.'LRTLETT  .Mr.  President,  al- 
tiiough  I  have  .some  reservations  about 
the  bm  we  will  pass  todaj',  it  is  gcxx:  tiiat 
:;i(-  Congrebs  l^  fi:ially  granting  t>^e  res- 
idents of  the  District  of  CoJmnbla  a  meas- 
ure of  autonomy. 

The  bin  will  accomplish  the  goal  of  al- 
lowing the  citizen.?  of  the  District  to  par- 
ticipate In  their  government  wlxlie  retain- 
ing in  Congress  an  oversight  authority 
through  the  power  of  the  purse. 

I  am  disappointed  that  the  bUl  provides 
for  partisan  .-ather  inan  nonpartisan 
election  of  the  mayor  and  n:embers  of 
the  District  council.  While  there  is  pro- 
vision for  some  minority  party  represent- 
atives on  the  District  council,  it  is  ob- 
vious it  will  be  dommated  and  run  by 
the  majority  party.  I  am  concerned  about 
a  government  which  does  not  have  the 
cleansing  effect  of  the  two-party  svstem. 

Also  the  partisan  elections  will,  in  ef- 
fect, deny  to  Federal  employees  the  op- 
portunity to  run  for  office  in  the  District. 

In  spite  of  these  objections,  I  do  sup- 
port the  bill.  Now  wiU  be  a  time  of  test- 
ing, as  well  as  an  opportunitv  for  the  peo- 
ple of  the  District  of  Columbia.  I  sin- 
cerely hope  It  Is  a  successful  venture,  and 
wish  them  well. 

Mr.  MATHIAS.  Mr.  President,  I  yield 
back  the  remainder  of  my  time 

Mr  E.^GLETON.  I  yield  back  the  re- 
mainder of  my  time. 

The  PRESIDING  OFFICER.  All  time 

has  been  yielded  back. 

The  question  is  on  agreeing  to  the  con- 
ference report.  On  this  question  the  yeas 
and  na^-s  have  been  ordered,  and  the 
clerk  will  call  the  roll. 

The  legllative  clerk  called  the  roll 

Mr.  ROBERT  C  BYRD  I  announce 
that  the  Senator  from  Idaho  'Mr. 
CiruRCH),  the  Senator  from  .AJa.ska  (Mr. 
Qravkl),  the  Senator  South  Carolina 
(Mr,  Hoi-LiNGsi,  the  Senator  from  Mis- 
sissippi (Mr.  EASTLA.vri  ,  the  Senator 
from  North  Carolina  ■  .Mr  ERvns- 1 ,  and 
the  Senator  from  C.-iiifomia  'Mr.  Ttn- 
nky)  are  necessarily  absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  CMr.  Bennett'  and 
the  Senator  from  Massachusetts  (Mr. 
Brooke'  are  necessarily  absent. 

The  Senator  from  New  Ham{»hlre 
(Mr.  Cotton)  is  absent  because  of  illness 
in  his  family. 

The  Senator  from  Virginia  cMr 
WrtMAM  L,  Scott  ^  1?  detained  on  official 
business 

The  result  was  announced — yeas  77 
nays  13,  as  follows: 


Inouye 

Jackson 

Janu 

Johnston 

Kennedy 

Magnuaon 

Mansfield 

McOee 

McOovem 

Mclntyre 

Metcalf 

Mondale 

Montoym 

Moas 

Muakle 

Nelson 

Nunn 

Pack  wood 


[No.  697  Leg.J 

THAR— 77 

Abourezk 

Cranston 

Aiken 

Curtis 

Baker 

Dole 

Bartlett 

Domenld 

Bayh 

Domlnlck 

Beall 

Eagleton 

Bellmon 

Pong 

Bentsen 

Pulbrlpht 

Bible 

QrUBn 

Blden 

Gumey 

Brock 

Kart 

Buckley 

Hartke 

Burdlck 

Haskell 

Byrd.  Robert  C 

.  Hatfield 

Cannon 

Hathaway 

Case 

Hnuka 

Chiles 

Huddleston 

Clark 

Hughes 

Cook 

Humphrey 

424^0 


Pi«tor« 

Pearson 

PeU 

Percy 

Prosmlre 

Randolph 

Rlblcoff 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


Roth  SvmlnTton 

Schwfllcer  Tmtt 

Scott.  Hugh  Talmadse 

Sparkman  Welcker 

Stafford  WUllama 

Stevens  Toung 
Stevenaon 

NATS— 13 

Hanaen  Sazbe 


MESSAGES  PROM  THE  PRESIDENT 

Messages  In  writing  from  the  Presi- 
dent of  the  United  States  were  commu- 
nicated to  the  Senate  by  Mr.  Marks,  one 
of  his  secretaries. 


AUen 

Byrd.  Helms  Stennla 

Harry  P.,  Jr.  tAia^  Thurmond 

Pannin  McCleUan  Tower 

Goldwater  McClure 

NOT  VOTING— 10 
Bennett  Eastland  Scott. 

Brooke  Ervln  Wiillam  L. 

Church  Gravel  Tunney 

Cotton  HoUtngs 

So  the  conference  report  was  agreed  to. 

Mr.  EAGLETON.  Mr.  President.  I  move 
to  reconsider  the  vote  by  which  the 
conference  report  «as  agreed  to. 

Mr.  MATHIAS.  I  move  to  lay  that 
motion  on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 

AUTHORIZATION  FXDR  SECRETARY 
OF  THE  SENATE  TO  MAKE  COR- 
RECTIONS IN  THE  ENROLLMENT 
OFS.  1435 

Mr  EAGLETON  Mr  President.  I  move 
that  the  Senate  proceed  to  the  considera- 
tion of  House  Concurrent  Resolution  402. 
directing  the  Secretary  of  the  Senate  to 
make  corrections  in  the  enrollment  of 
S.  1435. 

The  PRESIDING  OFFICER  (Mr. 
Clabk  I .  The  concurrent  resolution  will 
be  staled. 

The  legislative  clerk  read  as  follows 

A  concurrent  resolution  (H.  Con.  Res.  402) 
directing  the  Secretar)-  of  the  Senate  to  make 
corrections  in  the  enrollment  of  S.  1435. 

The  PRESIDING  OFFICER.  Is  there 
objection  to  the  present  consideration  of 
the  concurrent  resolution? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  concurrent  res- 
olution. 

The  PRESIDING  OFFICER.  The 
Question  is  on  agreeing  to  the  concurrent 
resolution. 

The  concurrent  resolution  iH.  Con. 
Res.  420 1   Aos  agreed  to.  as  follows; 

Resolved  by  the  House  of  Representatives 
(the  Senate  concujTiTig),  That  In  ttxe  enroll- 
ment of  the  bUl  (S.  1436).  to  reorganize  the 
governmental  structure  of  the  District  of 
Columbia,  to  provide  a  charter  for  local  gov- 
ernment la  the  District  of  Columbia,  subject 
to  a.-'-eptance  by  a  majority  of  registered 
qualified  electors  In  the  District  of  Columbia. 
to  deles-ate  certain  legislative  powers  to  the 
local  government,  to  Implement  certain  rec- 
ommendations of  the  Commission  on  the 
Organization  of  the  Government  of  the  Dis- 
trict of  Columbia,  and  for  other  purposes, 
the  Secretary  of  the  Senate  shall  make  the 
following  corrections: 

n )  In  the  parenthetical  phrase  In  section 
602(a)  (5)  of  the  bUl.  strike  out  "the  Act  of 
July  16.  1974"  and  Insert  in  Ueu  thereof 
•  title  I  of  the  District  of  Columbia  Income 
and  Franchise  Tax  Act  of  1947  V 

(2)  .\t  the  end  of  section  738  of  the  bUl. 
insert   tilfe  following  subsection: 

•(h)  The  foregoing  provisions  of  thU  sec- 
tion shall  take  effect  only  If  agreed  to  in 
accordance  with  the  provisions  of  section 
7031.1)  of  this  Act" 

(3)  In  the  first  sentence  of  section  712  of 
the  bUl.  strike  out  711"  and  Insert  In  Ueu 
thereof -404(8)". 


EXECUTIVE    MESSAGES    REFERRED 

As  In  executive  session,  the  Acting 
President  pro  tempore  'Mr.  Allen)  laid 
before  the  Senate  messages  from  the 
President  of  the  United  StTtes  submit- 
ting sundry  nominations  which  were  re- 
ferred to  the  Committee  on  Armed 
Services. 


FEDERAL    ENERGY    EMERGENCY 
ADMINISTRATION  ACT 

The  Senate  resumed  the  considera- 
tion of  the  bill  (S.  2776)  to  provide  for 
the  effective  and  efficient  management  of 
the  Nation's  energy  policies  and  pro- 
gram.s. 

The  PRESIDING  OFFICER.  Under 
the  previous  order,  the  Senate  will  now 
resume  the  consideration  of  S.  2776 
which  will  be  stated  by  tlUe. 

The  legislative  clerk  read  as  follows: 
-^--AbU!  (S.  2776)  to  provide  for  the  effective 
and~"«fflcl«it   m.-nagement   of   the    Nation's 
eiergy  poTltv^es  and  programs. 

The  PRESIDING  OFFICER.  The 
pending  question  is  on  agreeing  to  the 
amendment  of  the  Senator  from  Minne- 
sota I  Mr.  MONDALK)  . 

Mr.  MONDALE.  Mr.  President,  a  par- 
liamentary Inquiry 

The  PRESIDING  OFFICER  The  Sen- 
ator will  state  It. 

Mr.  MONDALE.  Are  we  under  con- 
trolled time  at  this  time? 

The  PRESIDING  OFFICER.  No.  there 
is  no  control  of  time. 

Mr.  MONDALE.  Mr.  President.  I  ask 
unanimous  consent  that  Mr.  Phil  Mc- 
Gance  and  Richard  Grxmdi  be  permitted 
the  privilege  of  the  floor  during  the  con- 
sideration of  the  pending  measure  and 
amendments  thereto. 

The  PRESIDING  OFFICER.  Without 
objection,  it  Is  so  ordered. 

Mr.  MOND.^LE.  Mr.  President.  I  a^k 
unanimous  consent  that  the  Senator 
from  Iowa  (Mr.  Clark)  be  added  as  a 
cospon5or  of  amendment  No.  923,  as 
modified. 

The  PRESmiNO  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  HUGH  SCOTT.  Mr.  President,  I 
yield  myself  1  minute  on  the  pending  bill 

The  PRESIDING  OFFICER.  There  is 
no  time  limit  on  the  bill. 


ANNOUNCEMENT  OP  THE  PRESI- 
DENT'S INTENTION  TO  SIGN  CER- 
TAIN BILLS 

Mr.  HUGH  SCOTT.  Mr.  President.  I 
rise  simply  for  the  purpose  of  str.tlng  that 
I  am  informed  the  President  will  sign  the 
District  of  Columbia  home-rule  bill  when 
It  reaches  his  desk.  I  am  also  informed 
that  he  intends  to  sign,  on  the  assump- 
tion these  bills  are  in  the  same  condition 
they  are  now,  the  manpower  bill  and  the 
health  maintenance  organization  bill 
when  they  reach  his  desk. 


FEDERAL  ENERGY  EMERGENCY 
ADMINISTRATION  ACT 

The  Senate  continued  with  the  con- 
sideration of  the  bill  'S.  2775)  to  provide 
for  the  efTecUve  and  efficient  manage- 
ment of  the  Nation's  energy  policies  and 
programs. 

Mr.  BUCKLEY.  Mr.  President.  I  caU 
up  my  amendment  to  the  Mondale 
amendment.  Identified  i.s,  No   928 

The  PRESIDING  OFFICER.  The  clerk 
>ill  retid  tlie  amendment. 

The  legislative  clerk  read  amendment 
No.  928  as  follows: 

In  subsecUon  (d),  after  the  phrase  "In- 
cludes crude  petroleum  or  any  refined  petro- 
leum derivative  thereof,"  add  the  words  "and 
coal  and  any  derivative  thereof"; 

In  Bubseetlcn  (e)(1).  after  the  words 
"crude  petroleum"  in  the  first  Une  of  said 
subsictlon,  add  the  words    -and  coal'; 

In  subsection  (e)(2),  after  the  words  "re- 
flned  petroleum  products"  in  the  first  line 
of  said  subsection,  add  the  words  "and  deriv- 
atives of  coal"; 

The  PRESIDING  OFFICER.  On  this 
amendment  there  is  a  30-minute  time 
limit,  to  br  equ3lly  divided. 
Who  yields  time? 

Mr  BUCKLEY.  Mr.  President.  I  yield 
myself  such  time  as  I  shall  utilize. 

First  of  all.  I  ask  for  the  yeas  and 
nays. 

The  yeas  and  nays  were  ordered. 
Mr.  BUCKLEY.  Mr.  President,  it  wlU 
not  take  more  th.an  a  minute  or  two  to 
describe  the  purpose  of  this  amendment. 
Whereas  I  fundiimentally  disagree  with 
the  amendment  of  the  distinguished  Sen- 
ator from  Mmnesota,  I  do  believe  that, 
if  it  is  destined  to  be  adopted,  it  ought 
at  least  to  be  as  effective  as  possible  and 
not  counterproductive. 

The  Senator  from  Minnesota  is  con- 
cerned over  the  rise  in  prices  for  crude 
oil  and  petroleum  products  that  we  have 
recently  e.xperienced,  and  would,  there- 
fore, authorize  the  Administrator  of  the 
new  Energ>-  Administration  to  set  prices. 
We  have  learned  from  the  experience 
we  have  had  with  the  efifect  of  price  con- 
trols on  natural  gas  what  effect  that  has 
on  all  other  forms  of  energy  that  can  be 
substituted  for  It.  For  example,  one  effect 
of  having  artificially  low  prices  for  nat- 
ural gas  has  been  to  close  down  some  coal 
mine^.  vhile  industries  and  utilities 
turned  to  the  cheaper  fuel  on  a  British 
thermal  unit  basis. 

I  believe,  therefore,  that  If  we  are  to 
have  vested  In  one  agency  an  overview 
of  pricing  in  this  country,  that  agency, 
that  administrator,  must  necessarily  be 
able  to  have  an  overview  over  all  of  the 
competing  fuels  we  have  in  this  country. 
Otherwise  we  will  see  distortions  In  the 
marketplace. 

Second,  this  Congress  has  mandated 
the  conversion  of  industries  and  utilities 
from  natural  gas  to  ot^er  fuels.  This  will 
create  an  enormous  surge  in  demand  for 
coal — and  this  I  welcome;  I  believe  we 
do  want  to  move  in  that  direction — but  It 
raises  the  specter  of  the  distortion  which 
concerns  the  Senator  from  Minnesota. 
I  would,  frankly,  like  to  see  no  controls 
over  petroleum  products  or  over  coal,  but 
my  amendment  wUl  bring  consistency.  It 
will  make  sure  that  what  is  done  with  re- 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


spect  to  one  fuel  will  not  have  unexpect- 
ed and  counterproductive  effects  with  re- 
spect to  another. 

I  therefore  urge  my  colleagues  to  adopt 
the  amendment. 

I  am  willing  to  .-surrender  the  re- 
mainder of  my  time  if  the  Senator  from 
Minnesota  is  wllllr.t;  to  surrender  his 
time  after  his  preliminary  remarks 

Mr  MO.VDAI.E  Mr  President  I  yield 
my.-^if  2  mmute.'i 

I  would  likp  to  rornment  briefly  on  the 
amendment  which  the  Senator  from  New 
York  (Mr  BurKLEv  >  has  offered  to  my 
amendment.  The  Senator  would  .seek  to 
add  coal  to  the  .scope  of  my  amendment 
ostensibly  as  an  "improvement  "  How- 
ever, those  in  this  body  knc^wiedgeable 
In  the  coal  Industry-  have  uniformly  told 
me  that  thl.";  would  b*»  unwl.-^e.  and  that 
It  would  be  treating  two  ven.  different 
industries  in  an  unfortunat^e  manner. 

Our  first  concern  at  this  time  must  be 
to  protect  the  Ampriran  consumer  from 
rising  prices  and  exorbitant  oil  company 
profits.  Heating  oil  for  homes  and  gaso- 
line for  cars  have  far  more  direct  impact 
on  the  American  consumer  than  does 
coal,  which  Is  primarily  iLsed  as  boiler 
fuel  in  Industrial  ojxrations  True,  the 
Administrator  of  the  Federal  Energy  Ad- 
ministration does  have  power  over  coal. 
But  my  amendment  merely  attempts  to 

set  standards  for  him  to  use  in  one  area 

the  key  area  of  pricing  crude  oU  and  pe- 
troleum products.  He  has  the  authority 
over  coal,  and  the  Congress  should  ex- 
plore whether  we  should  enact  similar 
types  of  standards  to  govern  the  Admin- 
istrator In  his  handling  of  coal  pricing. 
But  we  should  not  attempt  to  do  both 
tasks  in  one  amendment. 

I  am  certainly  willing  to  reduce  the 
amount  of  time  needed  to  act  on  this 
amendment.  Before  I  do  so.  when  the 
distinguished  Senator  from  West  Vir- 
ginia I  Mr.  Randolph)  Is  prepared.  I  will 
be  glad  to  yield  to  him  such  time  as  he 
desires  on  this  amendment. 

Finally.  I  would  simply  refer  my  col- 
leagues to  page  42195  of  yesterday's 
Congressional  Record.  In  which  the  dis- 
tinguished Senator  from  Washington 
(Mr.  Jackson)  makes  It  very  clear  that 
he  opposes  the  pending  amendment  of- 
fered by  the  Senator  from  New  York  for 
the  reasons  stated,  but  partlculariy'  be- 
cause the  oil  and  coal  industries  are  dif- 
ferent and  should  not  be  treated  as  com- 
parable industries  for  the  purpose  of  the 
subject  matter  before  us.  He  said-  "It 
would  seem  to  me  that  it  would  make 
more  sense  to  handle  It  as  a  separate 
matter."  and  that  It  would  be  manifestly 
unfair  to  attempt  to  put  coal  In  the  same 
category  as  oil. 

This  statement  comes  from  the  Sen- 
ator who  has  done  more  than  any  other 
Member  of  this  body  to  study  and  seek 
reforms  and  help  the  public  in  the  midst 
of  this  energy  crisis.  I  think  that  Is  a 
very  strong  statement  that  should  be  per- 
suasive to  the  Senate. 

I  now  yield  to  the  Senator  from  West 
Virginia  10  minutes. 

SENATOR         EANDOLPH         OPPOSES         AMENDMENT 
WHICH    WOULD    HAMPER    COAL    PRODUCTION 

Mr.  RANDOLPH.  Mr.  President  I 
speak  In  opposiUon  to  the  amendment 


offered  by  the  able  Senator  from  New 
York  (Mr.  BtTCKLEY).  His  amendment 
would  include  coal,  so  that  it  would  ap- 
pear In  all  the  sections,  as  I  understand 
It,  of  the  amendment  of  the  diligent  Sen- 
ator from  Minnesota  'Mr  Mondale*. 

I  began  by  saying  to  my  colleagues  in 
the  Senate  that  only  this  morrJng  on  the 
"Today  Show,"  originating  live  from 
New  York  City,  I  heard  Frank  Mc<3ee 
int<.'n-iew  Carl  Bagge.  the  president  of 
the  National  Coal  .^.s.sociation.  I  recall 
that  he  asked  Mr.  Bagge:  "Is  it  not  trje 
that  the  coal  industry  is  owned  by  petro- 
leum companies."  That  was  the  essence 
of  his  question.  I  recall  distinctly  that 
Mr.  Bagge  replied,  "Well,  that  is  not  cor- 
rect. There  are  approximately  4.000  sep- 
arate entities,  coal  co.-npanies.  operating 
In  the  United  States  of  America,  and  less 
than  20  percent  of  the  total  of  produc- 
tion comes  from  an  affiliation  of  a  sub- 
sidiary coal  company  as  a  part  of  a  pe- 
troleum enterprise." 

I  give  this  as  a  beginning  of  mv  re- 
marks because  of  the  discussion  on  a 
television  Interview  which  I  am  sure  has 
wide  distribution  and  a  very  large  listen- 
ing audience. 

The  time  Is  here  when  coal  Is  being 
called  on  to  assume  a  greater  role  in  the 
US  energy  supply  system.  In  fact.  I 
heard  the  Senator  from  New  York  say 
that  in  the  close  of  his  remsu-ks  Just 
a  few  minutes  ago.  And  so  that  need  Is 
recognized. 

I  think  it  Is  important  that  the  Con- 
gress realize  we  cannot  afford  to  take 
actions  In  this  Chamber  that  will  restrict 
the  ability  of  this  vital  form  of  energy— 
a  growing  form  of  energy  that  we  know 
can  and  wUl  be  used— as  It  attempts  to 
raise  the  capital  required  to  open  new 
mines. 

New  mines  do  not  open  in  2  or  3 
months.  New  mines,  both  deep  mines 
and  surface  mines,  require  a  period  of 
approximately  2  years  before  they  can 
be  opened.  The  costs  are  very,  very  large 
in  connection  uith  the  opening  of  these 
mines. 

It  is  essential  that  the  coal  companies 
and  the  miners  of  this  country  be  pro- 
vided with  the  support  necessary  to 
meet  the  challenge  of  Increased  coal  pro- 
duction. 

By  the  suggestion  that  only  actual 
costs  associated  ulth  Increased  coal 
production  can  be  passed  on  to  the 
marketplace,  we  are  also  calling  for  re- 
duced rates  of  return  for  coal. 

Mr.  President,  If  our  objective  In  this 
legislation  is  to  Increase  energy  supplies 
then  we  .-^hould  be  moving  to  "insure  the 
financial  .solvency  of  our  energv-  supply 
hidustries  The  inclusion  of  coal,  as  pro- 
posed in  this  amendment,  would  have  a 
reverse  effect.  The  coal  industry  1?  in  fi- 
nancial difficulty  compared  to  the  other 
energy  industries  and  other  segments  of 
our  economy. 

Standard  &  Poor  has  compared  425 
Industrial  companies  against  the  coal  in- 
dustry. The  rate  of  return  during  1972 
on  the  book  value  for  the  coal  Industry 
Is  2  percent  less  than  for  the  425  In- 
dustries I  have  mentioned  under  the 
Standard  &  Poor  survey. 

Mr.  President,  this  situation,  according 
to  the  First  National  aty  Bank  has  ex- 


42461 

Isted  for  several  years  In  four  out  of  five 
years  between  1967  and  1971,  the  rate  of 
return  for  the  coal  industry  has  been 
below  that  of  all  manufacturers  In  the 
United  States. 

Pointing  to  Individual  companies— a 
medium-sized  coal  company,  and  we 
have  many  of  these  co:-!  companies  in 
our  State  of  West  Virginia— I  mention 
the  Valley  Camp  Coal  Co  This 
company  in  1972— and  I  wish  there  were 
more  Members  on  the  floor  of  the  Cham- 
ber to  hear  these  figures— had  total  as- 
set^s  of  $52,300,000.  However,  the  return 
to  that  company  on  Investments  was  onlv 
$1,661,000. 

That  represents  a  rate  of  return  on 
total  a.ssets  of  between  2  and  3  percent 
And  I  do  not  feel  that  the  Senator  from 
New  York  would  believe  that  to  be  a  fair 
rate  of  return. 

Another  example  is  the  Coal  Dl^-l^lon 
of  the  Eastern  Gas  and  Fuel  which  has 
operations  throughout  Appalachia  Be- 
tween 1971  and  1972.  this  company  had 
an  Increase  in  revenues  from  $149  9  mil- 
lion to  $157.4  million.  However  ti^e  dis- 
turbing fact — and  it  is  a  fact— is  ti.at  the 
pretax  income  of  this  company  actually 
decreased  from  $10,200,000  down  to  $5  - 
300,000  during  this  same  period. 

This  has  resulted  in  less  than  a  5 -per- 
cent rate  of  return  on  total  assets  of  this 
company. 

A  third  example  Is  the  Westmoreland 
Coal  Co.  which  had  a  4  percent  rate  of 
return  on  its  total  asset. 

I  think  the  point  that  we  must  .•seri- 
ously consider,  Mr.  President,  Is  that  our 
domestic  coal  Industry  Is  not  financially 
secure.  Yet  they  are  being  called  on  to 
increase  the  supplies  of  co?.l.  at  the  same 
time  this  amendment  by  the  Senator 
from  New  York  (Mr.  Buckliy)  Ls 
pending. 

I  beUeve  we  must  realize  that  if  It  be- 
comes law.  It  would  have  the  effect  of 
decreasing  the  modest  profit  margins 
that  I  have  mentioned. 

The  PRESIDING  OFFICER.  The  Sen- 
ator's 10  minutes  have  expired. 
Who  yields  time? 

Mr.  MONDALE.  Mr.  President,  I 
promised  that  I  would  at  this  time  yield 
2  minutes  to  the  junior  Senator  from 
Kentucky. 

The  PRESIDING  OFFICER  The 
junior  Senator  from  Kentucky  is  recog- 
nized for  2  minut«s. 

Mr.  HUDDLESTON.  Mr.  President,  I 
thank  the  distinguished  Senator  from 
Minnesota  for  jielding  to  me. 

Mr.  I»resident,  I  have  just  a  very  brief 
comment.  I  oppose  the  amendment  to 
the  amendment  as  offered  by  the  Senator 
from  New  York. 

The  differences  between  the  petroleum 
and  coal  Industries  have  been  detailed 
by  the  distinguished  senior  Senator  from 
West  Virginia  and  the  Senator  from 
Washington. 

I  would  like  to  address  myself  to  an- 
other aspect  of  the  amendment  offered  by 
the  Senator  from  Minnesota. 

This  amendment  is  designed  to  pro- 
hibit the  undue  exportation  of  com- 
modities in  short  supply  which  would  re- 
sult in  undue  price  Increases. 

We  must  consider  the  difference  be- 
tween   coal    products    and    petroleum 


42462 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


pnxiucts.  In  thla  regard,  the  natiire  or 
the  marketing  of  coal  Is  not  such  that 
large  numbers  of  c\istomers  are  waiting 
In  lines  leading  up  to  the  coal  tipples  to 
buy  the  product.  However,  that  is  the 
case  v^ith  gasoline  today. 

Mr.  President,  most  increases  in  coal 
sales  are  to  power  companies— compa- 
nies that  are  already  under  State  and 
Federal  price  control.  So  the  Impact  on 
the  average  consumer  is  already  miti- 
gated to  a  great  degree. 

The  PRESIDINO  OFFICER.  The  2 
minutes  of  the  Senator  has  expired. 

Mr.  HUDDLESTON.  This  simply  does 
not  lend  itself  to  price  gouging  or  undue 
price  increases  of  the  nature  attendant 
In  the  petroleum  situation. 

Coal  and  petroleum  are  vastly  dif- 
ferent at  the  marketing  level,  in  the 
structure  of  the  companies  in  the  respec- 
tive industries,  and  in  their  entire  oper- 
ations, from  production  to  sales. 

I  believe  that  the  amendment  of  the 
Senator  from  Minnesota,  without  the 
addition  of  coal.  Is  the  appropriate  step 
forward  at  this  time. 

Mr.  RANDOLPH.  Mr.  President,  I 
would  like  to  add  this  comment  to  that  of 
my  colleague  from  Kentucky,  an  Import- 
ant coal-producing  State. 

It  is  a  ftict  that  there  is  a  certain 
uniqueness  to  the  coal  production  pro- 
gram which  Is  not  embraced  In  other 
segments  of  the  energy  production  ac- 
tivities. 

The  Senator  from  Kentucky  will  recall 
that  Congress  addressed  itself  in  1969  to 
the  Coal  Mine  Health  and  Safety  Act.  We 
did  that  even  before  coming  to  grips 
with  the  across-the-board  Occupational 
Health  and  Safety  law,  one  year  later. 

The  1969  act  requirements  have  re- 
sulted In  substantial  Investments  of  capi- 
tal to  insure  the  protection  of  our  min- 
ers— and  those  requirements  must  not 
and  will  not  be  relaxed.  The  health  and 
safety  of  our  miners  must  be  the  highest 
priority. 

The  PRESIDING  OFFICER,  All  time 
of  the  Senator  from  Minnesota  has  ex- 
pired. The  Senator  from  New  York  has 
12  minutes  remaining. 

Mr.  BUCKLEY.  Mr.  President.  I  would 
like  to  say  that  I  have  rarely  heard  as 
eloquent  a  speech  upon  why  the  amend- 
ment should  not  be  adopted  as  the  one 
made  by  my  respected  friend  from  the 
State  of  West  Virginia. 

I  think  that  If  we  want  to  get  rid  of 
shortages,  whether  In  the  field  of  coal  or 
in  the  field  of  oil.  we  need  to  assxire  that 
there  Is  the  potential  for  profit  that  will 
stimulate  the  very  large  investments  re- 
quired, huge  investments  in  each  field. 

We  ought  to  understand  that  the  two 
Industries  are  not  comparable,  the  prin- 
cipal difference,  of  course,  being  the  very 
much  higher  risk  associated  with  the  ex- 
ploration for  oil  and  gas. 

I  would  say,  however,  that  whereas  I 
hope  that  the  Senator  from  West  Vir- 
ginia will  join  me  in  voting  against 
adoption  of  the  Mondale  amendment,  if 
we  are  going  to  go  along  the  path  of  that 
philosophy,  we  need  to  have  an  even- 
handed  treatment  of  the  price  In  all  sec- 
tors of  the  energy  market  because  of  the 
way  they  Interact  one  with  the  other. 


Now,  I  very  much  appreciate  the  wis- 
dom and  soundness  of  the  statement  by 
my  friend  from  West  Virginia  to  the 
effect  that  without  the  prospect  of  prof- 
its we  cannot  see  Invesimer.t,  and  that 
when  we  talk  about  profit  we  meaii  as  a 
percentage  return  on  Investment,  and 
that  Is  why  I  am  encouraged  that  the 
Mondale  amendment  speclficially  pro- 
vides that  the  administrator  may  waive 
the  restrictions  on  pass-throughs  of  cost, 
where  that  Is  necessary  to  increase  in- 
vestment in  new  domestic  exploration 
and  production. 

Mr.  RANDOLPH.  Mr.  President.  I  do 
not  want  to  break  the  continuity  of  the 
remarks  of  my  friend  from  New  York, 
and  I  hope  in  perhaps  a  minute's  time 
he  can  yield  to  me. 

Mr.  BUCKLEY.  Mr.  President,  if  the 
Chair  will  alert  me  when  I  have  5  min- 
utes remaining,  then  I  will  be  glad  to 
yield  to  the  Senator  from  West  Virginia. 

Mr.  President,  the  Senator  from  West 
Virginia  cited  the  fact  that  there  are 
4,000  Independent  coal  producers,  and 
that  therefore  the  coal  industry  cannot 
be  placed  under  the  umbrella  of  the  oil 
Industry  merely  because  the  oil  Industry 
controls  some  coal  fields. 

I  thoroughly  agree,  just  as  we  cannot 
attribute  to  pipeline  companies  a  domi- 
nation over  gas  production,  given  the 
fact  that  over  5,700  independent  gas 
producers  are  currently  subject  to  FPC 
regulations. 

The  Senator  from  West  Virginia 
quoted  some  flgiires  from  the  First  Na- 
tional City  Bank  of  New  York  showing 
that  the  rate  of  return  on  coal  mining  is 
significantly  lower  than  that  for  manu- 
facturing corporations  as  a  whole,  just  as 
the  same  source  confirms  that  in  1972  the 
petroleum  Industry's  return  on  net 
worth  was  10.8  percent,  compared  to  an 
all-manufacturing  average  of  12.2  per- 
cent. 

I  suggest.  In  short,  that  the  areas  of 
comparability  far  outweigh  the  areas 
of  difference,  and  that  that  approach  to 
our  energy  needs  that  is  appropriate  to 
one  segment  of  the  energy  Industry  Is 
appropriate  to  other  segments  of  the 
energy  Industry. 

We  have  been  talking  about  the  danger 
or  fear  of  excess  profit.  That  means  profit 
In  excess  of  a  fair  return — profit  in  ex- 
cess of  that  which  will  assure  continuing 
Investment  In  the  enormous  expansion  of 
all  sources  of  energy  which  we  require  if 
we  are  to  satisfy  our  national  needs. 

It  is  for  this  reason  that  I  believe  that 
consistency  and  the  ability  to  make  the 
machinery  envisaged  in  the  Mondale 
amendment  work  requires  that  we  cover 
the  entire  energy  front.  But  better  still, 
I  believe  we  should  not  Invoke  the  meas- 
ure at  all.  * 

Mr.  President,  I  reserve  the  remainder 
of  my  time,  and  I  am  glad  to  yield  2 
minutes  to  my  friend  from  West  Vir- 
ginia, 

Mr.  RANDOLPH.  I  thank  the  Senator 
from  New  York. 

I  return  now  to  my  comments  I  ad- 
dressed earlier  to  the  Senator  from 
Kentucky.  I  spoke  of  the  1969  Coal  Mine 
Health  and  Safety  Act.  We  enacted  the 
Coal  Mine  Health  and  Safety  Act  be- 
cause of  the  unique  danger  involved  In 


the  i  oal  industry  operation,  the  hazards 
and  death  and  injury  to  coal  miners. 
When  %e  placed  iliat  measure  in  law.  we 
added  a  tremendous  sum  to  the  cost  of 
operatioiLs  of  coal  mine.s  In  America  and 

1  know  raL>'  coUeaKue  is  fEimiliar  with 
that  .situation,  will  he  not  agree' 

Mr.  HUDDLESTON  There  is  no  ques- 
tion about  that,  plu.s  the  Imposition  of 
a  severance  tax  on  coal  m  several  States. 
In  my  own  State  oi  Kentucicv.  we  iiave 
a  suttetantial  .severance  tax  And  beyond 
that.  I  think  it  .should  be  ix)inted  out 
that  this  bill  lUsel!  provides  authority 
for  the  Admini.>t rater  to  exercise  con- 
trol over  the  >'<,.al  mdaslry  a.s  well  as  all 
energy -producing  mdiLstrles  with  re- 
gard to  prices,  to  cost  ot  production,  and 
to  stimulating  production. 

Mr.  RANDOLPH  Mr.  President,  we 
know  that  the  conference  on  the  Na- 
tional Energy  Emeri4eiiL>  .Xct  riaa  been 
going  on,  in  fact  all  day  yesterday,  and 
we  participated  until  11  3u  last  night, 
and  now  we  are  m  seA.sion  again. 

I  think  it  Is  very  important  for  u.s  to 
realize  that  we  are  thinking  ui  u^rms  of 
major  energy  shortages  and  how  we  can 
meet  them.  I  suggest  that  to  be  a  symp- 
tom also  of  a  much  deeper  problem  for 
our  American  society.  I  feel  the  only 
solution  for  the  basic  problem  is  m- 
creased  supplies,  and  I  sense  that  the 
Senator  from  New  York  and  I  are  in 
agreement  on  that,  at  least  as  a  basic 
statement. 

This  will  require  vast  new  amounts  of 
capital  for  coal  production  as  well  as 
oil  Eind  gas  production,  as  he  has  indi- 
cated. These  moneys  should  be  raised  in 
the  private  sector,  but  this  will  require 
the  strongest  financial  support. 

The  PRESIDING  OFFICER.  The  Sen- 
ator's 2  minutes  have  expired. 

Mr.  RANDOLPH.  I  reemphaslze  the 
strongest  financial  support  for  all  the 
energy  industries  will  be  necessary  if  we 
are  to  solve  the  energy  shortages. 

We  must  be  careful,  in  any  action  that 
we  take,  to  minimize  Inflation  or  restrict 
profits,  if  these  would  have  the  effect 
of  handicapping  energy  industries  so 
that  our  Nation  would  be  unable  to  raise 
necessary  funds  for  adequate  energy  pro- 
duction In  the  years  ahead 

The  PRESIDING  OFFICER,  The  Sen- 
ator from  New  York  has  3  minutes 
remaining. 

Mr.  BUCKLEY.  Mr.  President,  I  yield 

2  minutes  to  the  Senator  from  nilnols. 
Mr.  PERCY.  I  thank  my  distinguished 

colleague. 

I  would  like  to  Indicate  once  again  my 
support  for  the  Mondale  amendment  as 
modified  by  the  Kennedy  amendment.  I 
think  It  Is  an  excellent  amendment.  But 
I  also  support  the  modification  of  the 
amendment  now  pending  by  our  distin- 
guished colleague  from  New  York. 

It  would  seem  odd  that  coal  fields 
would  run  from  Illinois  right  into  Ken- 
tucky, and  we  all  certainly  have  many 
of  the  same  problems,  as  acknowledged 
by  our  friend  from  West  Virginia,  and 
yet  we  come  up  with  different  conclu- 
sions on  this  problem  I  think  It  is  possi- 
bly due  to  the  Interpretation  the  Senator 
from  Illinois  places  on  the  amendment. 

As  I  read  the  amendment.  It  is  permis- 
sive, and  not  mandatory. 


Dece)  liber  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


Also,  It  extends  the  Economic  Stabili- 
zation Act  s  authority  over  energy  prices 
fjr  the  period  of  this  act,  which  would 
carry  that  authority  under  the  PEAA 
adnunlBiratlon  up  through  June  of  1975, 
so  that  the  consumer  can  feel  somewhat 
comforted.  But  it  also  provides  this  au- 
thority for  the  administrator;  If  he 
feels  that  higher  costs  can  be  justified 
and  will  stimulate  mcreased  supplies 
which  eventually  will  bring  down  costs, 
then  the  administrator  Is  able  to  author- 
ize the  Increases. 

It  is  for  that  reason,  to  give  the  ad- 
ministrator, the  -so-called  energy  'czar," 
that  increased  leeway  to  use  the  pricing 
mechanism  as  a  stimulus  specifically  to 
increase  production  and  eventually 
therefore,  not  only  meet  the  energj-  prob- 
lem but  also  brinK  tlie  cost  down  through 
price  increases  that  would  increase  sup- 
plies, that  I  sup;Kirt  the  amendment  of 
the  Senator  from  N^-w  York 

Tne  PRESIDING  OFFICER.  The  Sen- 
ator from  New  York  has  1  minute  re- 
mainmg. 

Mr.  BUCKLEY.  Mr  President,  I  am 
prepared  to  yield  back  that  1  minute, 
unless  the  Senator  from  Oklahoma 
wl.shes  to  st:)eak  in  which  case  I  reserve 
the  remainder  of  my  time 

Mr,  BARTIJCTT  Mr  President,  If  the 
Senator  from  West  Vniiinia  will  yield.  I 
felt  that  hi.<!  argument  was  very  com- 
pelling about  th<-  plight  of  the  'owners 
of  the  small  coal  companies,  and  I  know 
he  is  veiT  familiar  with  the  independent 
gas  producers  and  oil  producers  In  West 
Virginia.  Are  not  the  arr'jmpnt,s  he  made 
for  coal  substantially  identical  to  the 
argument,s  we  can  make  to  substantiate 
the  fact  that  this  amendment  of  the 
Senator  from  Minnesota  ls  not  in  the 
interest  of  the  oil  and  gas  producers  of 
West  Virginia  as  well  as  the  coal  produc- 
ers? 

Mr  RANDOLPH.  In  response,  I  share 
the  concern  of  the  Senator  from  Okla- 
homa especially  as  it  affects  the  small 
independent  producers  of  natural  gas 
petroleum,  or  coal 

Mr,  BARTI.ETT  I  thank  the  distin- 
guished Senator  from  West  Virginia 

The  PRESIDING  OFFICER  (Mr. 
Clark  ) .  All  time  has  now  expired  on  this 
amendment. 

The  question  is  on  agreeing  to  the 
Buckley  amendment  to  the  Mondale 
amendment. 

On  this  question  the  yeas  and  nays 
have  been  ordered,  and  the  clerk  will 
call  the  roll. 

The  second  assistant  legislative  clerk 
called  the  roll. 

Mr.  ROBERT  C,  BYRD  I  announce 
that  the  Senator  from  Idaho  (Mr. 
Chttrchi,  the  Senator  from  Mississippi 
'Mr.  Eastland)  ,  the  Senator  from  Alaska 
'Mr.  Gravel),  the  Senator  from  South 
Carolina  'Mr  Rollings*  ,  and  the  Sen- 
ator from  Mississippi  (Mr.  Stennis  >  are 
necessarilv  absent. 

Mr.  GRIFFTN.  I  announce  that  the 
Senator  from  Utah  iMr.  Bennett)  and 
the  Senator  from  Massachusetts  'Mr. 
Brooke  1  are  necessarily  ab.sent. 

The  Senator  from  New  Hampshire 
(Mr.  Cotton)  Is  absent  because  of  illness 
in  his  family. 

CXIX 2674— Part  33 


42463 


The    Senator    from    Maryland     iMr 
Mathias'    and   the   Senator  from   Oluo 
^^^.    Saxbe'     a.'-e    detained    on    official 
business. 

The  result  was  announced— veas  30 
'lays  60,  as  follows: 


is  m- 


Alkcn 

Bartlett 

Beall 

Bcllmon 

Bentsen 

Brock 

Buckley 

Buralck 

CurtU 

Dole 


Abourezk 

Ailen 

Baker 

B»yh 

Bible 

Blden 

Byrd, 

Harry  P  .  Jr 
B>Td,  Robert  C. 
Canuon 
Case  ' 

CWles 
Clark 
Cook 
CranBton 
Eagleton 
Errln 
Fulbrtght 
Hart 

Hartke  * 

HaakeU 


(No    598  Leg,] 

YEAS — 30 

Dcmenicl 

Domlnlck 

Pannln 

Pong 

Goldwater 

Orlffln 

Oumey 

Hauaen 

Hruska 

McClure 

NAYS — 60 

Hatfield 

Hathaway 

Helms 

Huddleston 

liughes 

Humphrey 

Inouye 

Jackaon 

Javlts 

Johnston 

Kennedy 

Long 

Maguuson 

Mansfield 

McCleUan 

McGee 

McOovern 

Mclntyre 

Mrtcalf 

Mondale 

Montoya 


Packwood 

Pearson 

Percy 

Roth 

Stafford 

Stevens 

Taft 

Thurmond 

Tower 

Welcker 


Moaa 

Muikle 

Nelson 

Nunn 

Pastore 

PeU 

Proxmire 

Randolph 

Schwelker 
Scott,  Hugh 
Scott, 

WUllamL, 
Sparkman 
Steyenson 
Symington 
Talmadge 
Tuiiney 
vnillams 
Young 


NOT  VOTTNO — 10 
Bennett  Eastland  Saxbe 

Brooke  aravel  Stennls 

Church  Holllnga 

Cotton  Mathlajs 

So  the  Buckley  amendment  to  the 
Mondale  amendment  was  rejected, 

Mr.  RANDOLPH.  Mr.  President,  I  move 
to  reconsider  the  vote  by  which  the 
amendment  was  rejected. 

Mr.  JACKSON.  I  move  to  lay  that 
motion  on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to, 

Mr.  President,  I  ask  unanimous  con- 
sent that  at  this  time,  out  of  order,  I 
may  caU  up  my  amendment  which  is  at 
the  desk. 

The  PRESIDING  OFFICER.  Is  there 

objection? 

Mr.  J.ACKSON  I  will  explain  what  it  is 
about.  It  Is  a  noncontroverslal  amend- 
ment. It  relates  t.o  an  investlRation  we 
have  underway  m  the  Pe.'-manent  Sub- 
committee on  Invf.st,iuatiun.s  We  ran  into 
a  case  in  which  oil  was  exported  out  of 
the  United  States  and  we  have  also  re- 
ceived reports  of  petroleum  products  be- 
ing exported,  laundered  oversea  and 
brought  back  at  a  higher  price. 

It  appears  that  we  are  not  permitted, 
by  reason  of  a  statute  that  was  enacted 
several  years  ago,  t.o  receive  mformation 
on  other  such  instances  from  the  De- 
partment of  Commerce,  nor  can  that  De- 
partment make  public  this  data 

The  floor  leader  of  the  bill  will  ac- 
cept the  amendment,  and  the  rankmg 
minority  member  on  the  Investigations 
Sulx^ommittee  Is  :oinlng  in  the  amend- 
ment All  the  amendment  would  do  would 
be  to  repeal  the  prohibition  on  making 
such  export  information  av.-.ilab'e  to  the 
Congress  and  other  governmental  agen- 
cies, except  where  the  President  makes 


a   finch ng  that  national  security 
volved. 

I  may  say  that  what  has  gone  on  here 
IS  a  real  scandal,  and  we  in  Coiigress  need 
to  know  about  tlie  export  of  all  petroleum 
products  during  this  period  of  shortage. 

It  win  only  take  3  .-ninutes,  if  tiie 
Senator  will  defer 

Mr.  MONDALE.  With  the  understand- 
ing that  we  return  to  the  pending  amend- 
ment. 

Mr.  BUCKLEY.  Mr.  President 

The  PRESIDINO  OFTICER.  The  Sen- 
ator from  New  York. 
Mr  BUCKLEY  I  do  .not  object 
Mr.  J.ACKSON  It  will  t,ake  me  about  3 
minutes. 

The  PRESIDING  OFFICER  Is  there 
objection'  The  Chair  hears  none  and  It 
is  so  ordered. 

The   amendment    wtU    be   stated. 
The  legislative  clerk  read  as  follows: 
At  au  appropriate  point  la  the  bill,  insert 
a  new  section  to  read  as  follows: 

^^^-  — ■  (*)  Notwithstanding  any  other 
provision  of  law,  the  Secretary  of  Commerce 
is  authorized  and  airecu?a  to  estabUsh  and 
maintain  the  fUe  which  shall  contain  Inlor- 
maUon  concerning  e.ery  transaction,  sale 
exchange  or  shipment  involving  the  export 
from  the  United  States  to  a  foreign  nation  of 
coal,  crude  oU,  residual  oil  or  any  refined 
petroleum  product  Information  to  be  In- 
eluded  In  the  file  shall  be  current  and  shall 
include,  but  shall  not  be  Unnied  to.  the  nam* 
of  the  exporter  (including  tlie  name  or 
names  of  the  holders  of  any  beneficial  inter- 
ests),  the  volume  and  t>-pe  of  product  in- 
volved in  the  export  transaction,  the  manner 
of  shipment  and  Identification  of  the  vessel 
or  carrier,  the  destination,  the  name  erf  the 
purchaser  if  a  sale,  exchanee  or  other  trans- 
action is  involved,  and  a  statement  of  rea- 
sons Justifying  the  expert, 

"(b)  Upon  request  of  any  Committee  or 
Subcommittee  of  the  United  States  Senate 
and  Ho:se  of  Representatives  or  the  head  of 
any  Federal  agency,  the  Secretary  ahaU 
promptly  provide  any  Information  main- 
talned  In  the  file  and  a  report  thereon  to 
such  Oommltiee,  Subcommittee,  or  apency 
head,  except  where  the  President  finds  such 
disclosure  to  be  detr!mental  to  national 
sectmty." 

Mr.  JACKSON.  Mr.  President,  the 
amendment  I  offer  is  cosponsored  by  the 
Senator  from  Connecticut  fMr.  RiBt- 
coFFi  and  the  Senator  from  niinois  (Mr 
Percy) . 

This  amendment  would  correct  a  situ- 
ation in  which  the  Department  of  Com- 
merce jealously  guards  Information  re- 
ceived from  exporters,  from  the  public 
other  Government  agencies,  and  from 
the  Congress,  causing  impediments  in 
performing  its  legislaUve  responslbUltles. 

This  rigid  approach  brings  ludicrous 
results. 

Consider  the  current  controversy  sur- 
rounding the  export  of  petroleum  prod- 
ucts while  the  country  faces  an  energy 
crisis. 

To  exercise  Its  monitoring  ra-^ponsibili- 
ties  and  determine  who  is  cxportmg  dis- 
tillate fuel  oils,  the  Department  of  the 
Interior  had  to  request  the  Secretary  of 
Commerce  to  make  a  determination  that 
it  would  be  in  the  "national  interest."  for 
Interior  to  receive  such  figures  So  even 
the  Interior  Department  could  not  pet 
the  Information.  Luckily,  the  Secretary 


424r4 


CONGRESSIONAL  RBC30RD  —  SENATE 


of  Commerc*  saw  fit  to  grant  such  a 
waiver.  But  I  can  see  no  need  for  such  a 
requirement  since  withholding  informa- 
tion from  other  Government  agencies 
which  is  necessary  for  them  to  carry  out 
their  jobs  cannot  serve  the  national  in- 
terest. 

\Vhen  I  directed  the  staff  of  Permanent 
Suiacommittee  on  Investigations,  which  I 
chair,  to  investigate  exports  of  petroleum 
products  during  this  crisis  period,  they 
were  blocked  from  obtaining  the  infor- 
mation necessary  to  examine  this  mat- 
ter We  had  to  go  to  the  ridiculous  ex- 
treme of  serving  a  subpena  on  a  com- 
pany in  Texas,  thought  to  have  made 
such  exports,  when  definite  and  precise 
information  was  available  right  here  in 
Washington. 

Except  for  the  most  critical  national 
security  reasons,  there  should  be  no  re- 
striction on  the  disclosure  of  informa- 
tion pertaining  to  exports  by  individual 
companies.  The  amendment  I  introduce 
today,  however,  only  lifts  those  restric- 
tions— found  in  the  Export  Administra- 
tion Act  of  1969— as  they  relate  to  ex- 
ports of  energy  supplies. 

My  amendment  would  require  Inter- 
governmental disclosiire  of  such  infor- 
mation needed  to  carry  out  governmental 
duties  and  functions. 

Furthermore,  It  would  require  disclo- 
sure of  such  information  to  the  Congress 
so  that  it  might  properly  perform  its 
respoHilbilities. 

Finally,  my  amendment  does  provide 
protection  for  the  national  security 
Interests. 

The  amendment  contains  a  proviso 
which  allows  the  Secretary  of  Commerce 
to  refuse  disclosure  to  the  Federal  agency 
and  the  Congress  upon  a  finding  by  the 
President  that  disclosure  would  be  detri- 
mental to  the  national  security. 

In  summary,  my  amendment  would 
Insure  the  proper  disclosure  of  informa- 
tion critically  important  to  executive 
branch  ofQcials  and  the  Congress  in  deal- 
In?  with  the  energy  crisis. 

Mr  REBICOFF.  Mr.  President,  I  accept 
the  amendment 

Mr.  AIKEN.  Mr.  President,  will  the 
Senator  yield? 

Mr.  JACKSON.  I  yield. 
Mr.  AIKEN.  I  have  one  question.  As- 
suming shipments  of  oil  are  made  from  a 
coimtry  which  embargoed  shipments  to 
the  United  States,  if  these  are  made  to  a 
third  country  vhlch  is  on  supposedly 
friendly  terms,  and  then  if  snipped  to  the 
United  States,  do  we  have  any  record  of 
such  imports? 

Mr  JACKSON.  I  assume  that  the  Cus- 
toms would  have  a  record  of  Imports. 
Mr.  AIKEN   Are  they  available? 
Mr.  JACKSON.  I  know  of  no  statute 
that  prohibits  the  public  disclosure  of 
that  Information  on  importing. 
Mr.  AIKEN  That  prohibits  it. 
Mr.    JACKSON.   They   are   available 
But  what  we  cannot  get 

Mr.  AIKEN.  I  know.  I  am  for  the  Sen- 
ator's amendment  as  far  as  It  goes,  but 
I  was  thinlung  of  a  report. 

Mr.  JACKSON.  I  understand  that  the 
information  relating  to  Customs  records 
are  public  documents  which  can  be 
obtained. 

/ 


December  19,  1973 


Mr   AIKEN.  But  It  Is  difficult  to  sort 
It  out.  I  suppose. 
Mr.  JACKSON.  Yes. 

Mr.  FANNIN.  Mr.  President,  will  the 
Senator  yield? 
Mr.  JACKSON.  I  yield. 
Mr.   FANNIN.   Do  I   understand   this 
would  be  public  information  ?  Is  that  the 
desire  of  the  Senator? 

Mr  JACKSON  Yes.  as  it  relates  only 
to  the  energy  situation  and  if  it  is  deemed 
appropriate  by  the  congressional  com- 
mittee or  subcommittee.  The  exp«cU- 
tion  would  be  Uiat  it  would  not  be  made 
public — since  Congress  could  not  be  able 
to  obtain  such  information— where  the 
President  certifies  It  does  affect  the  na- 
tional security  of  the  country 

Mr.  FANNIN.  Would  the  Senator  think 
It  would  Interfere  uith  shipments  com- 
ing to  this  Nation  at  this  time' 

Mr.  JACKSON.  Shipments  out.  It  has 
nothing  to  do  with  Imports.  It  only  re- 
lates to  exports.  The  public  is  up  in  arms 
We  have  these  rumors  floating  around 
about  the  export  of  oU.  We  cannot  get 
information  necessarj-  to  properly  inves- 
tigate these  cases. 

Not  only  that,  but  the  Department  of 
Commerce  cannot  give  it  to  other  depart- 
ments of  the  Government.  Including  de- 
partments directly  related  to  the  Energy 
Administration. 

Mr.  McCLURE.  Mr.  President,  will  the 
Senator  yield  for  a  question 
Mr.  JACKSON.  I  yield. 
Mr.  McCLURE.  This  amendment  pro- 
vides that  the  Secretary  of  Commerce 
shall  maintain  files  and  provide  informa- 
tion.  Other   statutes   provide   that   the 
Secretray  of  Commerce  has  certain  re- 
sponsibilities with  respect  to  the  Bureau 
of  the  Census  and  to  Census  records 
SUtutes  that  govern  that  Information 
provide  that  that  information  shall  not 
be  made  public. 

Could  this  amendment  be  read  to  In- 
dicate that  the  Secretary  of  Commerce 
Shan  by  implication  find  that  other  laws 
relating  to  confidentiality  shall  not  be 
governed  by  this  language,  so  that  the 
census  records  wUl  no  longer  be  con- 
fidential? 

Mr.  JACKSON.  Let  me  make  It  clear. 
In  order  to  export  It  is  necessary  to  have 
an  export  license.  This  is  handled  by  the 
Deparvment  of  Commerce.  The  Bureau  of 
the  Census  Is  within  the  Department  of 
Commerce  and  has  absolutely  nothing  to 
do  with  this.  Laws  pertaining  uo  the  Bu- 
reau of  the  Census  relate  to  personal  con- 
fidentiality. That  Is  required  by  the  Bu- 
reau of  the  Census  withm  the  United 
States.  My  amendment  runs  only  to  Uie 
export  inf  ormaUon  relating  to  energy  It 
does  not  Include  other  Items  not  related 
to  energy  and  data  within  the  Bureau  of 
the  Census. 

Mr.  McCLURE.  I  appreciate  the  an- 
swer of  the  Senator  from  Washington 
because  I  am  certain  that  it  Is  not  his 
intenUon  to  repeal  earUer  statutes  relat- 
ing to  confidenUallty  of  information  I 
am  not  certain  that  the  language  of  the 
amendment  makes  that  clear.  I  hope  that 
the  language  relating  to  the  proposed  law 
wUl  protect  the  confidentiality  which  Is 
so  essential  to  privacy  and  the  right  to 
privacy  of  all  our  citizens. 


Mr.  JACKSON.  I  a.'v«;ure  the  Senator 
from  Idaho  that  the  amendment  i.';  re- 
stricted to  the  export  area,  and  I  em- 
phasize that  It  appUes  oiU>  u.)  energy 
products.  It  does  not  Include  the  Bureau 
of  the  Census  or  anythiPK  other  ihan 
what  I  have  referred  to  in  my  statement. 
Mr.  McCLURE.  So  anyon-'  Icking  at 
the  language  or  interpreting  It  iaier  :T,ust 
do  so  in  the  light  of  the  Senators,  ex- 
planation. 

Mr.  JACKSON.  When  the  leglslaUve 
record  we  have  made  here  is  read,  the 
Intent  is  made  clear.  The  area  to  be  cov- 
ered Is  a  narrow  one.  It  deals  specifical- 
ly with  such  energy  items  as  coal,  crude 
oil,  residual  oil.  or  any  refined  petro- 
leum product. 

Mr.  McCLURE.  I  thank  the  Senator 
for  his  interpretation,  because  I  think 
it  could  be  terribly  important  in  an 
interpreUUon  of  the  language  at  a  later 
point. 

Mr.  HANSEN.  Mr.  President,  will  the 
distinguished  Senator  from  Washington 
yield  for  a  question? 

Mr.  JACKSON  I  yield. 

Mr.  HANSEN.  I  can  fuUy  appreciate 
the  inflammator>-  nature  of  an  action 
that  would  withhold  information  in  an 
area  as  important  as  this  one.  I  share 
the  Senators  concern  in  trying  to  teke 
all  such  steps  as  will  make  public  what- 
ever InformaUon  can  be  made  public, 
subject,  of  course,  to  the  caveat  of  which 
he  spoke,  that  would  be  involved  by  the 
President  if  national  security  were  an 
issue. 

I  would  hope  that  we  would  not  make 
a  practice  of  bypassing  the  appropriate 
committees  on  the  Senate  side.  It  would 
seem  to  me  that  It  might  be  indicated 
not  to  refer  the  bUl  to  the  Committee 
on  the  Judiciary,  but  I  would  hope  we 
might  get  an  expression  from  the  chair- 
man of  that  committee  as  to  the  Implica- 
tions he  might  see  In  the  amendment 
in  the  hope  we  could  consider  the  mean- 
ing of  the  language. 

Mr  JACKSON.  May  I  sav  the  admln- 
IstraUon  Itself  was  fiabberga^ted  to 
realize  that  other  agencies  wlthm  the  ex- 
ecutive branch  cannot  even  get  the  data 
We  are  to  blame.  Congress  passed  this 
law. 

Mr.    HANSEN     It    Is    an    old    law     I 
imderstand. 

Mr.  JACKSON.  It  Is  in  the  law 

Mr.  HANSEN.  I  say.  It  Is  an  old  law 
Is  that  right? 

Mr.  JACKSON.  Yes;  one  that  has  not 
been   passed    recently,   but   mav    I   say 
this  amendment,  of  course,  is  being  of- 
fered because  of  the  situation  we  ran 
into    to    the    Permanent   InvestlgaUons 
Subcomimttee,  which  it  a  subcommittee 
or  the  Committee  on  Government  Opera- 
tions. I  think  this  is  an  appropriate  place 
for  It.  I  know  of  no  opposlUon  on  the 
part   of   the    administration.    I   cannot 
concehe  of  anyone  here  objecting  to  It 
It  Is  a  case  where  firms  have  sent  petro- 
leum products  out  of  the  United  States 
in  this  period  of  hardship,  when  we  are 
asking  aU  Americans  to  undertake  added 
burdens.  It  seems  to  me  we  have  a  duty 
to  act  immediately  to  coUect  necessary 
information  and  I  know  of  no  owDosltion 
to  this  amendment. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


Mr.  HANSEN.  Mr.  President,  if  the 
ciiairmaii  will  yieid,  I  wiii  just  maiie  this 
one  additional  polut  of  uiJormation  It  ih 
m>-  uiiderstandmg,  and  I  would  deier  to 
my  good  Inend  from  Coimectlcut  for 
veriflcaUan,  that  normal^  legibiation 
deitiiug  witii  mteniationai  Lradt  would 
LK:-  subject  to  purview  by  the  Finance 
Coiiunitlef    .\n\  I  curreciv 

Mr  RIBICOFI''.  I  do  not  believe  it  is 
inter  national  trade.  My  feeJiii^  ;a  uiat 
Li. us  would  be  uJider  tiie  jurisdiction  of 
U.e  Banking.  HouiUifc  and  Urban  Aflairs 
Coiiumttee 

Mr.  HANSEN.  I  see. 
Mr  RLBIC0F>\  But  I  do  believe  that 
Die  point  rai.s«x]  by  the  distinguished 
Senator  Irom  Washington  Is  proper  at 
this  time.  We  are  dealing  with  the  basic 
energy  problem.  The  Permanent  Investi- 
gations Subcommittee  of  tlie  Conunittee 
on  Ooveriuneut  Operations  ls  invesUgat- 
ing  the  quetUou  ol  energy.  At  a  time  of 
shortages,  we  are  u>iiig  to  remedy  a 
situation  of  a  substantial  amcHint  of  ex- 
ports going  out  of  this  country  in  many 
mysterious  ways,  and  of  petrochemicals 
and  oil  going  out  in  order  to  encourage  a 
black  market  to  bring  higher  prices  by 
this  circuitous  trip,  and  depriving  the 
American  people  of  a  necessarj'  supply 
of  petrochemicals  and  petroleum-related 
products. 

Mr.  HANSEN.  Perhaps  I  misimder- 
stood  the  Senator  from  Washington,  but 
I  thought  the  informaUon  he  had 
prompted  him  to  make  the  allegation 
that  an  American  company,  or  at  least 

a  company  based  In  this  country 

Mr.  JACKSON.  Oh.  it  Is  an  American 
company. 

Mr.  HANSEN.  Exported  the  oU  and. 
having  laundered  it  abroad,  brought  it 
back  in,  at  a  profit  So  I  do  not  think  he 
was  making  the  point  of  a  diminution  of 
supply  but,  rather,  that  tlie  American 
public  was  being  gouged  by  this  proce- 
dure. 
Mr.  JACKSON.  That  is  correct. 

Mr.  HANSEN.  I  would  say  this 

Mr.  JACKSON.  We  had  to  send  a  man 
all  the  way  dowTi  to  Texas  to  get  the  in- 
formation In  one  case.  We  can  always  get 
it  But  why  should  we  not  be  able  to  get 
It  right  here?  I  think  it  is  outrageous 
that  this  Information  would  be  treated 
as  confidential  and  withheld. 

Mr.  HANSEN.  I  do  not  disagree  with 
that  at  aU,  but  I  would  hope  we  would 
keep  a  few  things  In  perspective. 

Number  one.  Insofar  as  the  Senator 
from  Washington  is  concerned,  he  has 
not  made  an  allegation  that  by  virtue  of 
this  example  there  has  been  any  diminu- 
Uon  in  supply.  At  least  I  understood  him 
to  say  there  had  not  been. 

Secondly 

Mr.  JACKSON.  Not  in  this  case,  but  I 
want  to  say  to  the  Senator  I  want  to 
look  through  those  files  and  through  the 
staff  papers  and  find  out  who  all  Is  ex- 
porting abroad  because  they  can  get 
higher  prices  then  If  they  send  It  back. 
We  cannot  even  get  those  files. 

What  are  we  coming  to  In  this  coim- 
try if  the  Congress  of  the  United  States 
cannot  get  the  files?  And  may  I  say  the 
other  agencies  of  Government  cannot  get 
the  files  on  exports,  including  Mr. 
Shnon. 


4246^ 


Mr.  HANSEN.  I  do  not  disagree  with 
the  Senator  irorn  Washington 

Mr.  JACKSON.  What  li  the  problem' 

Mr.  HANSEN.  I  am  saying  that  tiiere 
is  some  danger 

Mr.  JACKSON.  What  danger?  What  is 
the  danger? 

Mr.  HANSEN.  I  will  oe  iiappy  to  say 
what  It  i6  1:  the  Senator  wiii  Dear  with 
me  juit  one  moment. 

Mr.  JACKSON.  Ail  right. 

Mr.  HANSEN.  I  think  there  is  some 
danger  m  coming  to  tins  body  with  an 
issue  that  is  as  infiainmatory  as  energy- 
is  and  saying  we  have  to  do"  something 
right  now,  because  it  m<iy  be  that  tomor- 
row we  woLud  have  some  other  proposal 

My  only  concern  l,  that  we  do  not, 
in  OLu:  haste  and  our  enthuhia.sm  lo  see  to 
our  vital  needs,  bypass  tne  normal  tech- 
niques that  time  has  proven  to  be  ex- 
tremely valuable. 

The  PRESIDING  OFFICER.  The  15 
minutes  of  the  Senator  have  expired. 

Mr.  PERCY.  Mr.  President,  may  I  be 
recognized? 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  Illinois. 

Mr.  PERCY.  Mr.  President,  I  should 
like  to  respond  to  our  distinguished  col- 
league from  Wyoming.  I  think  the  con- 
cern that  has  been  expressed  is  a  very 
real  one.  I  think  there  L'-  ba-^^ic  merit  to 
our  regular  procedures,  but  I  am  a  co- 
sponsor  of  thLs  amendment  and  I  share 
the  frustration  of  the  distinguished  Sen- 
ator from  Washington  in  not  being  able 

to  get  the  Information 

Mr.  JACKSON.  Our  staffs  have  been 
working  on  tills. 
Mr.  PERCY.  Yes. 

Mr.  JACKSON.  The  Senator  from  Il- 
linois can  corroborate  what  I  have  said 
Mr.  PERCY.  First  of  all,  we  may  be 
able  to  answer  a  few  questions  by  talk- 
ing about  trade  secrets. 

As  I  understand  It,  this  amendment 
will  in  no  way  void  or  alter  any  exist- 
ing law  that  protects  industry  trade 
secrets.  Is  that  correct? 

Mr.  JACKSON.  That  is  right.  It  ap- 
plies only  to  disclosiu-e  of  the  informa- 
tion regarding  the  exports  of  the  petro- 
leum Items  that  I  have  referred  to — 
basically,  coal,  fuel  oil,  residual  oil,  or  any 
refined  petroleum  product. 

Mr.  PERCY.  Secondly,  because  It  Is  an 
amendment  on  the  FEAA  bill  and  the  au- 
thority of  that  bill  expires  on  Jime  30, 
1975,   this   authority,    therefore,   would 
expire  on  that  date.  So  this  is  a  tem- 
porary extension   of   authority,   during 
which  period  we  can  see  whether  it  hsis 
merit  or  not.  Is  that  correct? 
Mr.  JACKSON.  That  is  correct. 
Mr.  PERCY.  May  I  ask  a  final  question 
of  the  Senator?  The  Senator  from  Illi- 
nois is  not  familiar  with  whether  export 
licenses  are  required  for  coal  today.  Are 
they  necessary  for  coal  and  is  that  In- 
formation readily  determinable  for  coal 
just  as  It  is  for  petroleum  products? 

Mr.  JACKSON.  It  is  my  understanding 
that  export  licenses  are  required  for 
coal. 

Mr.  HANSEN.  Mr.  President,  will  the 
Senator  yield? 
Mr.  JACKSON.  I  yield. 


Mr.  HANSEN.  Did  not  the  Senator 
earlier  make  the  stau'ment  that  m  order 
to  export  anything  one  had  to  have  an 
export  license 'J 

Mr.  JACKSON.  I  think  that  is  true  in 
general. 

Mr.  HANSEN.  Was  that  the  Senators 
statement? 

Mr.  JACKSON.  Yes,  that  v,as  my 
statement.  1  may  liave  to  modify  it,  De- 
cause  there  may  be  some  exceptioris 

Mr.  HANSEN.  I  often  have  to  modify 
my  statements. 

Mr-.  JACKSON.  1  want  to  find  out 
whether  the  Senator  is  for  mv  amend- 
ment. 

Mr.  HANSEN.  Yes,  I  am  for  it. 

Mr.  JACKSON  Mr,  President,  I  yield 
to  tiie  Senator  from.  Mauie. 

Mr.  MUSKIE.  Mr  President,  I  do  not 
want  to  get  mto  detailed  discussion  on 
the  amendment,  because  it  has  been  ade- 
quately done. 

I  support  the  amendment.  I  do  so  in 
the  context  of  our  need  to  get  more  in- 
formation. My  Governor  complains  con- 
stantly that  he  finds  it  is  impossible  to 
get  basic  information  as  to  the  avail- 
ability of  oil,  without  which  he  cannot 
tell  constituents  what  they  must  plan 
on  and  what  programs  they  are  to  sup- 
port. 

I  am  constantly  asked  those  questions, 
and  I  ask  unaiumous  consent  to  include 
them  in  the  Record  at  this  point. 

There  being  no  objection,  the  questions 
were  ordered  to  be  printed  in  the  Record 
as  follows: 

QUESnONS     FOB     THE     ADMIKISTRAnON     FaoM 

Governor   Ctmns   of   IklAUJE 

1.  Wliat  information  does  the  Federal  Qov- 
ernment  now  have  regarding  the  following: 

A.  Product  inventories  held  domestically 
by  all  major  oU  companies. 

B.  Crude  inventories  held  domestically  by 
all  major  oil  companies. 

C.  The  volumes  of  untapped  crude  reserve 
ta  the  United  Slates. 

D.  Foreign  product  holdUigs  of  domestical- 
ly owned  International  oil  companies 

E.  Foreign  crude  holdmgs. 

2.  If  this  information  Is  avaUable,  on  what 
basis  are  companies  now  aUocatmg  producu 
at  certain  percentage  levels?  May  we  assume 
that  each  company  calculated  Its  December 
allocation  so  as  to  leave  enough  In  reserve 
to  malntaUi  that  allocation  fraction  through- 
out the  season?  If  it  is  not,  what  does  the 
Administration  intend  to  do  to  accumulate 
such  data? 

3.  To  what  extent  wUl  import  dependent 
regions  of  the  countrj-  be  more  adversely 
affected  by  shortages  than  those  portions 
wMch  have  been  traditionally  supported 
with  domestic  products?  How  has  this  been 
determined  and  what  steps  are  planned  to 
make  sure  this  burden  U  spread  evenly 
across  the  country?  By  what  criteria  were 
these  measures  priced? 

4.  In  attempting  to  encourage  domestic  oil 
refiners  to  produce  more  middle  distillates 
than  gasoline,  was  any  consideration  given 
to  direct  subsidies  from  the  Federal  Govern- 
ment in  lieu  of  presently  contemplated  com- 
pensation through  price  adjiistments. 

6.  Will  the  procedures  outlined  In  the  pro- 
posed modincatlons  of  the  middle  dlstiuate 
program  be  adopted  as  a  model  for  residual 
oU  and  gasoline  allocations? 

6.  Prior  to  suggesting  the  creation  of  Local 
Boards  for  the  Implementation  of  the  middle 
distillate  program,  did  the  Administration 
make  any  effort  to  determine  the  ability  of 
SUte  and  local  governments   to  undertake 


12466 


CONGRi^ilONAL  R£CORD  — SENATE 


such  aa  effort  In  tenna  of  ftn&nclng  and  per- 
•onael?  II  so  (or  if  not)  on  what  baan  was  it 
(l«t«rmliie<l  that  thla  delegation  of  reapon- 
slblllty  waa  a  reasonable  manner  in  wUcb 
to  effectuate  an  allocation  program? 

Dtd  the  Administration  Intend  that  Ind- 
eral flnanclal  support  would  be  available  In 
thla  effort  aa  Is  suggested  in  the  Energy 
Emergency  Act  now  before  the  House?  If  so, 
has  any  budget  estimate  been  prepared  ? 

7.  Why  haa  the  decision  regarding  gaso- 
line rationing  been  so  long  forestalled?  Is 
It  the  case  that  each  SUte  governor  has  In 
Ms  vault  gasoline  raUonlng  plates  which 
could  be  Immediately  used  to  print  coupons 
on  decentralized  bases? 

8.  In  devising  priorities  for  the  allocation 
of  scarce  fueu.  what  consideration  was 
given  to  peculiar  condlUons  existing  In  vari- 
ous states,  parUcuJarly  those  where  home 
heating  ts  major  consuming  sector  in  vari- 
ous product  lines  tin  Maine,  for  example, 
80"o  of  the  kerosene  Is  used  to  heat  homes 
and  an  allocation  to  priority  users  as  pro- 
posed would  certainly  mean  some  homes 
would  not  receive  enough  oil  to  remain 
habitable.  IncldentaUy.  thoee  homes  using 
kerosene  are  trailer  homes  usually  occupied 
by  the  people  least  equipped  flnanclally  to 
cope  with  this  problem). 

Mr.  MUSKIE  Mr  President,  this  Is  a 
list  of  quesUons  the  Governor  might  And 
helpful  in  getting  answers  to  in  under- 
talcing  to  discharge  his  responsibilities 
not  only  under  the  State  programs  he 
has  Initiated  but  under  the  Federal  pro- 
grams. Without  information,  this  pro- 
gram will  not  work. 

When  I  get  bade  to  my  State  one  ques- 
tion I  get  from  my  constituents  Is:  "Sen- 
ator, is  this  shortage  real  or  la  It  con- 
trived?" I  would  like  to  get  Information 
In  order  to  respond. 

Mr  JACKSON  Mr.  President,  will  the 
Senator  yield? 

Mr.  MUSKIE  I  yield. 
Mr.  JACKSON.  Would  the  Senator 
agree  there  has  really  been  a  tremendous 
controversy  m  this  coimtry  In  the  last 
few  weeks  particularly  brought  about  by 
the  allegation  of  the  export  of  petroleum 
products  at  a  time  when  this  country  Is 
in  short  supply? 

Would  the  Senator  agree  that  It  Is  im- 
portant that  Congress  be  able  to  Investi- 
gate these  exports,  and  that  the  only 
way  In  which  we  can  reaUy  flnd  out  Is 
first  to  check  with  the  Etepartment  of 
Commerce  and  get  a  record  of  all  exports 
In  this  area.  And  we  cannot  get  It  now. 
Mr  MUSKIE.  The  story  that  triggered 
It  all  was  a  story  about  a  month  ago  that 
reported  that  the  exports  had  increased 
this  year  by  240  percent. 

Everywhere  that  I  went.  In  Maine  and 
elsewhere  in  the  country.  I  was  asked. 
"Why  are  we  exporting  so  much  oil  when 
we  need  It  at  home?"  That  may  be  Justi- 
fied, but  we  do  not  know  that. 

Mr.  JACKSON.  But  how  can  we  de- 
termine the  merits  and  demerits  of  It  If 
the  Congress  is  prohibited  from  getting 
the  basic  information  by  an  act  of  Con- 
gress? This  does  not  make  any  sense. 
This  Is  what  I  am  trying  to  do  here 

Mr.  MUSKIE.  Mr.  President,  I  com- 
pliment the  Senator  from  Washington 
on  his  amendment,  and  I  stipport  his 
amendment 

I  hope  that  the  Senate  not  only  passes 
the  legislation  sponsored  by  the  Sena- 
tor from  Washington  and  other  Sena- 


December  19,  1973 


tors,  but  also  secures  an  energy  response 
on  this  appeal  for  information. 

Mr  BARTLETTT.  Mr  President,  will 
the  Senator  yield  me  2  minutes:" 

Mr  RIBICOPF  Mr  President.  I  yield 
2  minutes  to  the  Senator  from  Okla- 
homa. 

Mr.  BARTLETT.  Mr.  President,  I 
thank  the  Senator  from  Connecticut  for 
yielding  to  me  Would  the  distinguished 
Senator  from  Washington  yield  for  a 
question? 

I  am  in  100  percent  agreement  on 
what  the  Senator  is  saying.  I  do  not  see 
that  this  amendment  requires  a  collec- 
tion of  any  information.  It  authorizes  a 
file.  However,  it  does  not  require  those 
exporters  of  petroleum  products,  coal, 
crude  oil.  and  so  forth,  to  provide  the 
Secretary  of  Commerce  with  this  infor- 
mation to  go  in  the  file. 

Mr.  JACKSON.  Mr.  President,  I  point 
out  to  my  good  friend,  the  Senator  from 
Oklahoma,  that  the  law  requires  com- 
panies that  are  exporting  petroleum 
products  to  get  an  export  llcerxse.  and 
they  have  to  submit  all  of  the  basic  In- 
formation in  the  application  and  Ucense. 
That  Is  what  we  want.  We  cannot  get 
any  Information. 

Mr.  BARTLETT.  This  pertains  to  a  file. 
It  does  not  pertain  to  the  file. 

Mr.  JACKSON.  Mr.  President,  let  me 
read  the  amendment.  It  reads  as  follows: 
Notwithstanding  any  other  provision  of 
law,  the  Secretary  of  Conunerce  U  authorized 
and  directed  to  establLsh  and  maintain  a  Ole 
which  shall  contain  information  concerning 
every  transaction,  sale,  exchange  or  ship- 
ment involving  the  export  from  the  0nlted 
States  to  a  foreign  nation  of  coal,  crude  oil. 
residual  oU  or  any  refined  p>etroleum  product. 
Information  to  be  Included  in  the  file  shaU 
be  current  and  stiall  Include,  but  shall  not 
be  limited  to.  the  name  of  the  exporter  (in- 
cluding the  name  or  names  of  the  holders 
of  any  beneficial  interests),  the  volume  and 
tj-pe  of  product  Involved  In  the  export  trans- 
action, the  manner  of  shipment  and  Identifi- 
cation of  the  vesel  or  carrier,  the  destination, 
the  name  of  the  purchaser  If  a  sale,  exchange 
or  other  transaction  Is  Involved,  and  a  state- 
ment  of   reasitins  Justifying   the  export. 

I  think  that  we  have  Included  every- 
thing that  we  need  to  have. 

Mr.  McCLURE.  Mr.  President,  would 
the  Senator  yield  to  me? 

Mr.  PERCY.  Mr  President.  I  would  be 
happy  to  yield  to  the  Senator. 

Mr.  McCLURE.  Mr.  President,  I  thank 
the  Senator  for  yielding. 

I  think  that  there  has  been  some  Im- 
plication here  and  In  the  press  with  the 
published  statements  of  various  people 
that  ought  to  be  put  In  proper  context 
with  respect  to  this  amendment. 

Certainly  everyone  in  our  country  Is  en- 
titled to  know  that  the  laws  and  the  in- 
tent of  the  laws  are  being  compiled  with. 
They  need  to  know  that  everyone  in  this 
country  Ls  Interested  in  this  problem  to- 
day and  that  we  are  all  going  to  work 
together  to  get  around  the  problem. 

It  Is  not  a  matter  of  whether  truckers 
want  preference  or  whether  the  alrUne 
pilots  threaten  to  strike,  because  they 
feel  that  they  have  been  dealt  with  un- 
fairly. 

We  cannot  expect  that  any  business 
should  profiteer  from  this  situation  at 
the  present  time  However,  we  cannot 
fall  victim  to  the  very  easy  charges  that 


have  been  made  that  somehow  wp  are 
toeing  large  amounts  of  enersy  .■■upphf's 
through  PxporT.';  A:iv  kind  of  a  rarefui 
analysis  of  'h^  export*  that  have  taken 
place  will  indirate  a  very  valid  rea.v>n 
for  some  of  \.hf  '•x;->ort.s  Some  of  the  ex- 
ports are  waxes  and  things  whlrh  arp  m 
surplus  in  our  country  and  we  are  findlr.g 
markets  for  them. 

We  have  exchanges  that  take  place 
across  the  border  with  Car..i(;a  aiyi  .M-x- 
ico  that  are  necessary  to  benefit  us  m 
the  net  balances  on  the  exchange  of 
products. 

We  have  light  distillate  o!l.'=  ex;>orted 
so  that  they  can  be  mixed  with  heavier 
surphur  fuek  and  can  be  imported  and 
burned  in  this  country  It  Is  a  net  addi- 
tion to  our  energy  supply  In  our  ardor  to 
adopt  the  amendment.  I  do  not  think 
that  we  should  go  farther  than  the  ne- 
cessity of  the  .situation  dlrtates  and  Im- 
ply that  every  one  of  the,se  exports  that 
have  been  made  are  evil  exjK>rtR 

I  do  not  charge  anyone  with  having 
done  that  However,  some  people  read 
the  statements  or  hear  the  discussions  In 
the  Senate  and  will  assume  that  all  of 
the  charges  are  true.  The  truth  of  the 
matter  Is  that  there  are  some  small 
amounts  of  energy  supplies  perhaps  be- 
ing exported  in  violation  of  the  spirit  of 
the  time  that  we  have  a  right  to  know 
about 

I  support  the  spirit  of  this  amendment 
However,  I  think  it  is  very  looselv  drawn. 
I  think  It  is  dangerous  in  It'!  Implications. 
This  does  not  say  that  the  Secretary  of 
Commerce  will  get  InformaUon.  It  Just 
says  that  he  shall  maintain  a  file. 

I  would  assume  from  that  that  some 
people  might  assume  that  the  Secretary 
of  Commerce  Is  required  by  the  language 
of  this  amendment  to  use  any  informa- 
tion he  has  in  the  Department  of  Com- 
merce, including  the  Bureau  of  the  Cen- 
sus, to  maintain  the  file  In  compliance 
with  this  amendment. 

I  am  grateful  that  the  Senator  from 
Washington  has  Indicated  that  that  Is 
not  the  purpose  of  the  amendment.  I  do 
think  there  is  danger  In  its  language,  the 
danger  of  a  violation  of  the  very  care- 
ful protections  that  have  been  written 
Into  dozens  of  statutes  In  the  past,  but 
which  might  be  swept  away  In  our  en- 
thusiasm to  try  to  plug  a  very  minor, 
but  unacceptable,  loophole. 

Mr.  JACKSON.  Mr.  President.  I  ask 
for  the  yeas  and  nays  on  my  amendment. 
The  yeas  and  nays  were  ordered 
Mr.    GOLDWATER.    Mr     President 
would  the  Senator  yield  to  me' 

Mr.  PERCY.  Mr.  President.  I  yield  to 
the  Senator  from  Arizona. 

Mr.  GOLDWATER.  Mr.  President  I 
see  that  my  good  friend,  the  Senator 
from  Washington,  is  on  the  floor.  I  would 
like  to  ask  a  few  questions  at  this  time 
In  order  to  get  the  record  straight 

I  think  the  intent  of  the  amendment  is 
good.  I  think  that  all  of  us  who  are  faced 
with  the  questions  of  constituents  as  we 
go  home  when  they  ask,  "Is  this  for  real, 
or  is  It  staged  and  put  on  by  the  oil  com- 
panies or  somebody  else,"  would  bene- 
fit greatly  If  we  had  some  places  to  get 
the  information.  For  the  life  of  me  I 
ca.mot  get  two  answers  In  a  row  that 
agree. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42467 


.At  tlii.s  pomt  m  our  legi-siation  uhen 
we  have  spent  quite  a  bit  of  lime  on  the 
energ>-  situation,  it  Is  difScult  for  me  to 
remember  anything  we  have  done  that 
would  produce  more  energy  I  kn.;w  that 
we  have  done  .some  things 

I  would  like  Uj  a-sk  the  Senator  from 
Washington,  uhu  is  a  leader  in  this 
matter  to  enumerate.  If  he  would,  some 
of  the  positive  steps  we  have  taken  that 
mleht  result  m  more  energy,  and  not  m 
just  more  .egidations 

For  exrjnple.  In  my  State  of  Arizona, 
we  produce  52  percent  of  the  copper 
produced  in  this  country  .^d  we  use 
natural  ga.s  for  smelting  purposes.  Have 
we  deregulated  the  price  of  ner,-  natural 
gas,  for  example? 

Mr.  JACKSON.  Mr.  President.  I  must 
say  to  the  dLstinguishea  Senator  from 
Arizona  that  in  the  Committee  on  In- 
terior and  Insular  Affairs  we  are  in  the 
process  of  completing  a  report  in  which 
we  will  make  recommendations  to  the 
Commerce  Committee  on  the  piping  of 
natural  gas. 

I  am  opposed  to  the  existing  regula- 
tion of  natural  gas.  We  are  in  favor  of 
a  system  by  which  we  can  bring  about 
necessary  price  adju^stments  that  will 
more  clearly  reflect  the  market  price  of 
natural  gas.  I  believe,  with  relation  to 
competing  fuel.  That  is  my  position.  Yet. 
we  make  a  mess  of  it.  It  has  resulted  in 
a  situation  In  which  natural  gas  is  being 
improperly  used  today. 

Over  half  of  the  gas  is  being  burned 
under  boUers  to  support  utility  opera- 
tions and  large  industrial  users,  to  the 
exclusion  of  other  areas  of  our  economy. 

Mr.  GOLDWATER.  I  thank  the  Sen- 
ator for  that.  Now,  what  I  am  trying  to 
do  here 

The  PRESIDING  OFFICER.  All  time 
on  the  amendment  has  expired. 

Mr.  GOLDWATER.  Can  the  Senator 
yield  some  time  on  the  bill? 

Mr.  JACKSON.  Mr.  President,  I  ask 
unanimous  consent  that  the  Senator 
from  Arizona  may  proceed  for  1  minute. 

The  PRESIDING  OFFICER.  Is  there 
objection? 

Mr.  GOLDWATER.  One  minute  is  not 
going  to  do  me  any  good. 

Mr.  JACKSON.  I  will  be  glad  to  come 
back  later,  but  I  am  right  in  the  middle 
of  a  conference  on  energy. 

Mr.  HANSEN.  They  stopped  for  lunch. 

Mr.  JACKSON.  They  stopped  for 
lunch?  Why? 

Mr.  HANSEN.  They  are  himgry. 
[Laughter.  1 

Mr.  JACKSON.  Go  ahead.  I  ask 
unanimous  consent  that  the  Senator 
from  Arizona  may  proceed  for  1  minute. 
I  wLsh  the  Senator  from  Wyoming  had 
not  brought  that  up. 

Mr.  GOLDWATER  If  I  can  only  pro- 
ceed for  1  rninuLe 

Mr  JAC'KbON.  Tvo  minutes. 

The  PRESIDING  OFFICER.  Is  there 
objection?  Without  objection.  It  is  so 
ordered. 

Mr  GOLDWATER  For  any  Member 
of  the  Senate  to  spend  2  minutes  on  gas 
is  insufficient. 

Mr.  JACKSON.  Well,  we  will  not  run 
out  of  gas.  Go  ahead. 

Mr.  GOLDWATER.  I  will  just  ask  these 
questions,  and  u   the  Senator  can  sup- 


ply the  arts  we  rs,  he  may  do  so  later,  I 
am  going  home  in  a  few  days,  and  I 
want  t-o  have  some  answers. 

Wiiat  ha\e  we  done  m  this  bod\-  to 
f.nd  new  oil  arid  gai,"^  Have  we  liberalized 
leasing  ix)licies  on  ail  Oovernmeni-con- 
iroiied  lands  including  the  Outer  Con- 
tinental Shelf,  the  .SantA  Barbara  Chan- 
nel, and  the  Gulf  of  Mexico'' 

The  Senator  can  read  the.se  questions 
and  put  tJie  answers  in  the  Record,  in- 
asmuch as  I  only  have  a  few  minutes. 

Mr.  JACKSON  I  Jiope  I  lia.  e  a  good 
stafT  around  here 

Mr.  GOLDWATER.  The  Senator  can 
read  it  in  the  Record. 

How  much  liave  we  modified  environ- 
mental stipulations  that  impede  explora- 
tion, production,  transportation,  and  re- 
fining? 

What  priorities  have  we  established 
favoring  petroleum  producers  and  drill- 
ers in  tlie  allocation  of  equipment  and 
fuel? 

And  my  final  question:  Have  we  ac- 
tually made  It  attractive  for  people  in- 
terested in  drilling  and  exploring  to  go 
out  and  do  it  again' 

Those  are  tlie  questions  I  would  like 
to  have  answered.  I  do  not  want  to  have 
to  go  home  and  say.  "Yes.  we  have  been 
busy  for  a  month  on  energy,  and  we  have 
passed  a  lot  of  rules  and  regiilalions, 
but  I  do  not  see  any  more  gas  and  oil 
coming." 

Mr.  JACKSON.  May  I  say.  Mr.  Presi- 
dent, that  I  will  have  the  information 
supplied  for  the  Record,  and  I  will  give 
the  Senator  personally  additional  infor- 
mation on  what  we  have  done  at  this 
Congress  to  meet  the  energy  crisis. 

I  would  say  to  him  that  the  most  sig- 
nificant development  has  been  the  ap- 
proval of  the  trans-Alaska  pipeline  leg- 
islation. We  are  doing  a  lot  of  other 
things,  but  I  would  make  that  particular 
observation  at  this  time. 

Mr.  GOLDWATER.  That  is  3i/2  years 
away. 

The  PRESIDING  OFFICER.  The  addl- 
'  tional  2  minutes  have  expired. 

Mr.  JACKSON.  Mr.  President,  earlier 
today  the  junior  Senator  from  Arizona 
asked  a  number  of  questions  concerning 
congressional  action  on  a  number  of 
energy  policy  Jssues  related  to  increasing 
energy  supply.  I  would  like  at  this  time 
to  respond  to  the  Senator's  questions. 

First.  The  first  question  relates  to  leas- 
ing policy  on  the  Outer  Contmental 
Shelf. 

In  cormection  with  the  Senate's  adop- 
tion of  S.  2589,  the  National  Energy 
Emergency  Act  of  1973.  the  Senate  did 
adopt  provisions  which  directed  the 
President  to  accelerate  the  leasing  of 
public  lands  for  oil  and  gas  purposes,  in- 
cluding lands  on  the  Outer  Continental 
Shelf. 

Second.  The  second  question  relates  to 
modifications  that  have  been  made  in 
environmental  laws  governing  explora- 
tion, production,  transportation,  and 
refining. 

S.  2589  also  has  provisions  providing 
for  a  variance  procedure  to  the  provi- 
sions of  the  Clean  Air  Act.  These  vari- 
ances may  be  granted  to  permit  the 
burning  of  high  sulphur  oil  during  the 


energy  emergency  and  requiring  the  con- 
version of  stationary  electric  power  plant 
from  oil  to  coal  In  addition,  S.  2589 
;->ermiCs  waivers  pursuant  to  specific 
guidelines  to  the  provisions  of  the  Na- 
tional Environmental  Policy  Act,  which 
require  the  advance  preparation  of  an 
envTronmenta]  impact  statement  These 
waiver  provisions  apply  only  to  emer- 
gency actions. 

Third.  The  third  question  raised  by 
the  Senator  from  .^rl2ona  concerns  what 
priority  has  been  given  under  the  Pelrc- 
leum  .Allocation  Act  to  persor^s  engaged 
in  the  production,  transportation,  and 
dlnribution  of  energy- 

The  Senate  biU,  S.  2589.  granted  both 
a  priority  for  fuel  allocation  and,  subject 
to  certain  guidelines,  a  priority  alloca- 
tion for  other  es&eniiai  material  products 
and  equipment  needed  for  the  produc- 
tion, transportation,  and  distribution  of 
energy. 

Fourth.  The  fourth  quesUon  Is  whether 
the  Congress  has  made  it  attractive  for 
persons  interested  in  oO  and  gas  drilling 
and  exploration  to  accelerate  their 
activities. 

S.  2589  did  not  have  a  specific  provi- 
sion which  could  be  cited  in  response  to 
the  Senator's  question.  The  bill  does, 
however,  mandate  a  number  of  studies  by 
the  Department  of  the  Treasury  and  the 
Cost  of  Livmg  Council  to  determine  how 
adjustments  in  the  Cost  of  Living  Coim- 
cil  guidelines  could  be  designed  to  en- 
courage increased  investment  In  oil  and 
gas  exploration  and,  therefore,  elicit  new 
supplies. 

Mr.  President,  aU  four  of  the  provi- 
sions to  which  I  have  referred  were 
tentatively  agreed  to  yesterday  and 
earlier  today  by  the  members  of  the  con- 
ference committee  meeting  on  S.  2589, 
the  Senate-passed  bill,  and  the  amend- 
ment of  the  House  to  S.  2589.  It  is  my 
hope  that  this  conference  committee  will 
conclude  action  on  the  conference  re- 
port sometime  later  today  and  permit 
final  action  by  both  Houses  of  the  Con- 
gress before  Friday  of  this  week. 

Finally,  Mr.  President,  in  response  to 
the  fourth  question  of  the  Senator  from 
Arizona,  I  should  note  that  the  conferees 
today  adopted  a  provision  to  prohibit 
windfall  profits  in  the  energy  industry. 
One  feature  of  this  provision  Is  to  re- 
quire that  the  energy  industries  plow 
back  or  reinvest  any  excess  profits  in  In- 
creased production  of  oil  and  gas  and 
other  forms  of  energy.  This  provision  will, 
I  am  sure,  at  a  time  of  record -high 
profits,  result  in  increased  investment 
in  and  development  of  new  domestic 
sources  of  energy. 

Mr.  CANNON.  Mr.  President,  will  the 
Senator  yield  me  1  minute  on  the  bill? 

The  PRESIDING  OFFICER.  He  may 
do  so  only  by  unanimous  consent. 

Mr  CANNON.  I  ask  unanimous  con- 
sent tJiat  I  be  permitted  to  prtx;eed. 

The  PRESIDmO  OFFICER.  Is  there 
objection' 

Mr.  CANNON.  I  ask  unanimous  con- 
sent that  the  pending  business  be  put 
aside  for  i  minute,  to  dispose  of  two  ncai- 
controversiai  m.itters. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 


t2468 


MESSAGE  PROM  THE  HOUSE 


CX)NGR£SSIONAt  MCORD-SENATE  December  19,  1973 


A  message  from  the  House  ol  Repre- 
sentaUves  by  Mr.  Bern*,  one  of  Its  read- 
ing clerks,  announced  that  the  House 
had  passed  the  following  bills  and  joint 
resolution  in  which  It  requests  the  con- 
currence of  the  Senate: 

H-R.  2634.  An  act  for  the  relief  of  Kevin 
Patrick  Saimders; 

H.R.  T730.  An  act  to  authorize  the  Secre- 
tary of  the  Interior  to  purchase  property 
located  within  the  San  Carlos  Mineral  Strip: 

HJl.  10044.  An  act  to  Increase  the  amount 
authorized  to  be  expended  to  provide  facu- 
lties along  the  border  for  the  enforcement 
of  the  customa  and  immigration  laws; 

HR.  11763.  An  act  to  amend  the  National 
Visitor  Center  Paciiittes  Act  of  1968  as 
amended,  to  facilitate  the  construction  of 
an  Intercity  bus  terminal,  and  for  other 
purposes; 

HR.  11273.  An  act  to  provide  for  the  regu- 
lation of  the  movement  in  foreign  commerce 
of  uoslous  weeds  and  potential  carriers 
thereof:   and 

H  J  Res.  858  A  Joint  resolution  to  provide 
for  the  establishment  of  the  Lyndon  Balnea 
Johnson  Memorial  Orove  on  the  Potomac. 

The  message  also  announced  that  the 
House  had  passed  the  following  bills, 
each  with  an  amendment  in  which  It 
requests  the  concurrence  of  the  Senate: 

8.  2168.  An  act  to  authorize  the  disposal 
Of  opium  from  the  national  stockpUe:  and 

S.  2316  An  act  to  authorize  the  disposal 
of  copper  from  the  national  stockpile  and 
the  supplemental  stockpile 

The  message  further  announced  that 
the  House  had  passed  the  following  bill 
with  amendments  In  which  it  requests 
the  concurrence  of  the  Senate: 

8.  2812.  An  act  to  authorize  a  formula  for 
the  allocation  of  funds  authorized  for  flacal 
year  1975  for  sewage  treatment  construction 
grants,  and   for  other   purposes 


from  the  House  of  RepresenUtlves  on 
3.  2166. 

The     PRESIDINO     OFFICER      fMr 
Johnston)    laid   before  the  Senate  the 
amendment  of  the  House  of  Represent- 
atives to  the  bill  .8.  2186)   to  authorize 
the  disposal  of  opium  from  the  national 
stockpile,  which  was  on  page  1.  line  5 
strike  out  "one  hundred  and  forty-one 
thousand  six  hundred."  and  insert-  "slx- 
ty-flve  thousand  seven  hundred" 
.J^   CANNON.  Mr    President.  I  move 
that  the  Senate  concur  in  the  House 
amendment. 
The  motion  was  agreed  to. 


^fS?"^    °^    COPPER    FROM    THE 
NATIONAL  STOCKPILE— MES- 

SAGE FROM  THE  HOUSE 

Mr.  CANNON.  Mr  President.  I  ask  the 
Chair  to  lay  before  the  Senate  a  message 

o^,!^®  ^°"*^  °^  Representatives  on 
o.  2316. 

The  PRESIDINO  OFFICER  (Mr 
JoHNSTow)  laid  before  the  Senate  the 
amendment  of  the  House  of  Repre.sent- 
atives  to  the  bUl  (S.  2316'  to  authorize 
the  disposal  of  copper  from  the  national 
stockpile  and  the  supplemental  stockpile 
which  was  on  page  1.  line  5,  strike  out 
nfty.    and  insert:  "fifty-one" 

,y.^^\^^^^   ^"^   President.  I  move 
that   the   Senate   concur  In   the   House 
amendment. 
The  motion  was  agreed  to. 


Buckley  Hatfleld 

Burdlek  Hathaway 

Byrd.  Helms 

Harry  v..  Jr.     Hruska 
Byrd   Robert  C   Huddlreton 

Cannon  Hughea 

Case  Humphrey 

Chiles  Inouye 

Clark  Jackson 

Cook  Javtu 

Craxuton  Johnston 

Curtis  Kennedy 

D^le  Long 

DomenlcJ  Magnuson 

Domlnick  Mansfield 

Ea«leton  McCleilan 

^^J^n  McClure 

''ong  McOee 

Fiilbrlght  McOovem 

Qrlffln  Mclntyre 

Gurney  MetcalX 

Hansen  Mondale 

Hart  Uontoya 

Hartka  Uoss 

Haskell  Muakle 

NATS — 3 

Taft 


Neiaon 
Muan 

Pack  wood 

Paatore 

Pearaon 

PeU 

Percy 

Proxmire 

Randolph 

Rlblooff 

Roth 

Schwelker 

Scott.  Hugh 

Scott. 

WUllamL. 
Sparkman 
Stafford 
Stevenson 
Symln^^ton 
Talma  (Ige 
Thurmond 
Tunney 
Welcker 
Will  lams 
Young 


HOUSE  BILLS  AND  JOINT  RESOLU- 
TION REFERRED 

The  following  bill^  and  joint  resolution 
were  severally  read  twice  bv  their  tlUes 
and  referred  as  indicated: 

H  R  2634.  An  act  for  the  relief  of  Kevin 
Patrick  Saunders:  to  the  Committee  on  the 
Judiciary. 

H  R.  7730.  An  act  to  authorize  the  Secre- 
tary   of    the    Interior    to   purchase    property 
located  within  the  San  Cark«  Mineral  Strip 
to   the  Committee  on   ISv.-         .nd  Insular 
Affairs. 

HJl.  10044  An  act  to  increase  the  amount 
authorized  to  be  expended  to  provide  facil- 
ities along  the  border  for  the  enforcement 
of  the  customs  and  Immigration  laws:  and 
„.  ..  ''"^^^  ^^  **^*  ^  wnend  the  National 
Visitor  Center  Faculties  Act  of  1968  as 
amended,  to  facUlUte  the  construction  of  an 
intercity  bus  termmal.  and  for  other  pur- 
pc^s:    to  the  Committee  on  Public  Works 

as.  11273.  An  act  to  provide  for  the  regu- 
latiou  of  the  movement  in  foreign  commerce 
of  noxious  weeds  and  potential  carriers 
thereof;  to  the  Committee  on  Agriculture 
and  Poreatry. 

H^J^  Res  838  A  Joint  resolution  to  provide 
for  the  establishment  of  the  Lyndon  Balnea 
John:on  Memorial  Orove  on  the  Potomac-  to 
the  Committee  on  Rules  and  Administration 


DISPOSAL  OF  OPIUM  FROM  NATION- 
AL STOCKPILE— MESSAGE  FROM 
THE  HOUSE 

Mr.  CANNON  Mr.  President.  I  ask  the 
Chair  to  lay  before  the  Senate  a  message 


FEDERAL  ENERGY  EMERGENCY 

ADMINISTRATION  ACT 
The  Senate  continued  with  the  con- 
sideration of  the  bm  (S.  2776^  to  pro- 
vide for  the  effective  and  efficient  man- 
agement of  the  Nation's  energy  policies 
and  programs 

The  PRESIDING  OFFICER  (Mr 
Johnston).  The  question  Is  on  agreeing 
to  the  amendment  of  the  Senator  from 
Washington  (Mr.  Jackson).  On  this 
question,  the  yeas  and  navs  have  been 
ordered,  and  the  clerk  wlU  call  the  roll 

The  legislative  clerk  called  the  roU 
♦K*f  .ROBERT  C  BYRD.  I  announce 
that  the  Senator  from  Idaho  fMr 
Church  ).  the  Senator  from  Mississippi 
'Mr.  Eastland  »,  the  Senator  from 
Alaska  .Mr.  Graved,  the  Senator  from 
South  Carolina  (Mr.  Hollings).  and  the 
Senator  from  Mississippi  (Mr.  Stinnis) 
are  necessarily  absent. 

Mr    GRIFFIN.   I   announce   that   the- 
Senator  from  Utah  'Mr.  Bcnnxtt)  and 
the  Senator   from   Massachusetts    'Mr 
Brookh  are  necessarily  absent. 

The  Senator  from  New  Hampshire 
'Mr.  Cotton •  is  absent  because  of  ill- 
ness In  his  family. 

The  Senator  from  Arizona  'Mr.  Fan- 
nin - .  the  Senator  from  Marvland  'Mr 
Mathias>.  the  Senator  from  Ohio  'Mr 
Saxbki.  and  the  Senator  from  Alaska 
'Mr  SrrvENsi  are  detained  on  official 
business. 

The  result  was  announced — yeas  85 
nays  3.  as  follows: 


Abouretk 
Aiken 
Allen 
Baker 


I  No.  599  Leg  I 

TKAS— 88 
Bartlett  Bentsen 

Bayh  Bible 

Beall  Blden 

BellmoQ  Brock 


Oold  water  Taft  Tower 

NOT  VOTINO— 13 
Bennett  EastUnd  Ii4athlas 

Brooke  Pannln  Saxbe 

Church  Gravel  Stennls 

Cotton  HoUlngs  Stevens 

So  Mr.  Jackson's  amendment  was 
agreed  to. 

Mr.  RIBICOFF.  Mr.  President.  I  move 
to  reconsider  the  vote  by  which  the 
amendment  was  agreed  to. 

Mr.  MONDALE.  I  move  to  lay  that  mo- 
tion on  tlie  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 

The  PRESIDING  OFFICER  The 
pending  question  is  the  amendment  by 
the  Senator  from  Minnesota 

Mr.  MANSFIELD.  Mr.  President.  wiU 
the  Senator  yield? 

Mr.  MONDALE.  I  yield. 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  there  be  a  time 
limitation  of  10  minutes,  the  time  to 
be  divided  between  the  ranking  Repub- 
lican member  of  the  committee  the  Sen- 
ator from  nilnois  (Mr.  Pircy).  and  the 
sponsor  of  the  amendment,  the  Senator 
from  Minnesota  (Mr,  Mondale) 
Mr.  LONG  I  object. 

The  PRESIDING  OFFICER.  Objection 
is  heard. 

Mr.  LONG.  I  do  not  want  to  agree  to 
a  time  limitation  on  the  amendment 

Mr.  MANSFIELD.  I  withdraw  my  re- 
quest. 

The  PRESIDING  OFFICER.  The  re- 
quest is  withdrawn. 

Mr    MONDALE.   Mr.   President.   I  do 
not  plan  to  use  much  time— no  more  than 
'  5  minutes. 

May  we  have  order.  Mr.  President' 

The  PRESIDING  OFFICER  The  Sen- 
ate will  be  in  order. 

Mr.  MONDALE.  Mr.  President,  over 
the  next  18  months  no  problem  confront- 
ing this  Nation  will  be  of  more  import- 
ance than  the  fight  against  inflation  No 
problem  hits  more  directly  at  the  aver- 
age working  family,  and  has  more  to  do 
with  determining  the  ability  of  working 
families  to  live  decent,  productive  lives 
And  within  the  InflaUon  problem  no 
area  is  of  more  concern  than  the  astro- 
nomical rises  which  have  already  occur- 
red and  may  soon  accelerate  in  the  prices 
of  oil  and  oil  pre  ucts.  Oil  to  heat  our 
homes  and  gasoline  to  run  our  cars  are 
vital,  essential  commodities.  They  are 
basic  to  our  society.  Now.  we  will  all  have 


Decew.her  19,  1973 


CONGRESSIONAL  RECORD  —  SEN AT£ 


42469 


I J  conserve  these  valuable  resources.  But 
we  .should  not  be  forc»-(J  txD  ccn>erve  sim- 
pl.v  through  "rationaig  by  price.'  a  strat- 
egy which  the  admiiiLsiration  .seems 
eager  to  adopt. 

The  amendrr.ent  which  I  have  offered 
will  lell  this  administration  that  we  do 
iioi  want  .-ationing  by  price  For  I  be- 
lieve that  the  Congress — and  the  Ameri- 
can people — will  not  stand  lor  a  pricing 
sy.slem  which  places  the  entire  burden 
of  sacnfite  on  the  American  consumer. 
at  a  time  when  oil  company  profl's  are 
up  47  percent  so  Jar  this  year. 

Already,  prices  of  fuel  are  rising 
sharply.  In  November,  fuel  prices  rose 
by  19  3  p'^rrent.  for  a.  '232  percent  ad- 
justed annual  rate.  And  many  of  the 
leading  econumic  spclcesmen  lor  this  ad- 
ministration have  told  us  that  we  had 
better  get  used  to  these  types  of  in- 
creases, smce  they  are  the  only  way  to 
limit  demand. 

The  amendment  which  I  have  offered 
rejects  this  thesis  Ii  otTers  Uie  belea- 
guered American  consumer  some  hope 
that  fuel  price  rises  over  the  next  18 
months  will  be  kept  within  moderate 
boimds.  In  some  instances,  prices  may 
have  to  go  up,  and  my  amendment  allows 
exceptions  to  the  general  cost  pass- 
through  rule  for  the  specific  purpose  of 
encouraging  increased  investment  in  do- 
mestic exploration  and  production. 

Its  basic  thrust,  however.  Is  to  set  con- 
gressional standards  for  the  new  Ad- 
ministrator of  the  Federal  Energy  Ad- 
ministration. Mr.  William  Simon.  It  is  a 
flexible  approach,  but  one  which  seeks 
to  restrain  the  Administrator  by  building 
In  a  variety  of  checks  on  his  discretion. 
The  General  Accounting  Office,  under 
my  amendment,  will  undertake  a  con- 
tinuous monitoring  of  the  Acimimstra- 
tor's  fuel  pricing  decLsions.  If  he  departs 
from  the  standards  iri  the  amendment,  a 
public  hearing  with  ii(3t>t)uate  notice  must 
be  held,  and  he  must  publicly  jastify  in 
WTlting  his  reasoning  for  the  exceptions. 
We  are  not  trying  to  tie  the  hands  of 
the  Administrator,  but  rather  to  give  him 
standards  within  which  to  work,  and  to 
force  him  to  justify — to  the  C^O.  to  the 
Congress,  and  to  the  American  public — 
any  departures  from  ihe.se  standards. 

I  beUeve  that  the  amendment  which  I 
have  offered  is  vital  over  the  months 
ahead.  Without  it.  we  may  well  witness 
the  most  blatant  gouging  of  the  Ameri- 
can consumer  in  our  history.  And  at  a 
time  of  record  oil  company  profits  and 
sharply  higher  prices,  we  simply  cannot 
allow  this  to  happen.  The  amendment 
under  consideration  would  go  a  long  way 
toward  moderating  pnrp  mcrea.ses  for  oil 
and  gasoline,  and  would  thereby  aid  tens 
of  millions  of  Ame:;cans  whose  budgets 
are  already  imder  siege. 

Mr.  PERCY.  Is  It  the  Intention  of  the 
Senator  from  Minnesota  to  state  the 
congressional  intent  that,  in  general, 
cost  ixissthroughs  are  permissible  and 
that,  in  general,  price  increases  above 
cost  can  be  justified  if  specifically  neces- 
sary to  increase  supply?  Is  this  the  main 
thrust  and  Intention  of  the  amendment 
of  the  distinguished  Senator  from  Min- 
nesota'' 

Mr.  MONDALE.  That  Is  the  purpose  of 
this  amendment— to  direct  thit  price 


increases  lor  crude  oil  may  not  exceed 
a  passthrough  of  cost  actually  incurred, 
except  where  price  increa.ses  in  excess  of 
that,  in  the  opinion  of  the  Administra- 
tor, would  effectively  encourage  In- 
creased domestic  exploration  and  pro- 
duction of  oil.  In  other  words,  where,  in 
hLs  judgment,  it  is  necessar>-  to  have 
p.'-ice  increases  in  excess  of  cost  pass- 
throughs  tor  the  purpose  of  domestic  ex- 
pansion, he  may  do  so.  provided  that  the 
reasonmg  for  this  is  explained  in  detail. 

Mr  PERCY.  It  would  be  m  his  sole 
discretion,  and  he  could  make  the  decl- 
.-lon  based  on  the  facts. 

I  thank  the  Senator  from  Minnesota. 
On  that  basis.  1  support  the  amend- 
ment. 

Mr.  LONG  Mr  President,  wUl  the 
Senator  yield 

Mr  MOND.ALE  I  yield. 

Mr  l^NG  With  regard  to  wells  that 
are  already  producing  oil— not  new  oil: 
I  am  taiKing  about  the  wells  we  have 
now — would  this  permit  the  price  of  the 
oil  to  go  up.  or  would  it  say  that  it  could 
not  go  up' 

Mr.  MOND.^LE  The  costs  with  respect 
to  an  existing  weU  could  pass  through. 
In  addition,  if  that  well  mrrea.sed  pro- 
duction, prices  could  be  increased  to  In- 
clude cost  increases  plu.^  what  the  .Ad- 
ministrator determined  to  be  necessary 
to  encourage  the  expanded  production 
on  an  exi-ting  well. 

Mr.  LONG  Specifically,  if  a  well  is 
producing  20  barrels  of  oil  a  day  and  the 
well  continues  to  produce  20  barrels  of 
oil  a  day,  is  the  price  to  be  perm.ltted  to 
increase,  or  is  the  price  to  be  frozen 
where  it  Is,  imder  the  Senator's  amend- 
ment? 

Mr.  MONDALE.  If  the  Administrator 
finds  that  price  increases  in  addition  to 
just  cost  pa.ssthroughs  are  necessarj-  in 
this  well  to  increase  Investment  In  do- 
mestic exploration  and  production — in 
this  case,  production  in  that  well — he 
could. 

Mr.  LONG.  In  that  weU 

Mr.  MONDALE.  Yes.  The  trigger 
would  be  the  likelihood  of  increased  in- 
vestment to  increase  production  In  that 
weU. 

Mr.  LONG  Suppose  they  should  And 
It  necessar%-.  as  I  suppose  the  case  to  be 
generally  throughout  this  country,  that 
a  producer  needs  a  price  increase  in  order 
to  find  the  money  to  go  out  and  drill 
more  w-ells    Is  that  in  the  language? 

Mr  MOND.ALE  He  could  increase 
prospe<:tively  the  price  of  the  new  supply 
that  would  be  brought  about  through 
the  increased  investment,  and  could  in- 
crease the  price  on  that  prospective  pro- 
duction more  than  by  mst  a  pass- 
through  of  costs,  including  increased 
profits  he  thought  essential  to  bring 
forth  increa,sed  production 

Mr.  LONG  I  am  talking  about  the 
production  that  can  be  antiripated  from 
the  existing  well  Under  the  Senator's 
amendment  will  the  producer  be  entitled 
to  a  price  increase  on  the  oil  one  could 
expect  to  protfuce  from  that  w*:\\  m  order 
that  he  mJght  have  enough  profits  to 
drill  additional  wells? 

Mr  MONDALE  If  he  has  to  sink  new 
money  in  that  well  in  order  to  increase 
production,    the   Administrator   is   per- 


mitted with  respect  to  that  weD  to  in- 
crease tne  price  on  the  increased  pro- 
duction m  excess  of  cost  in  order  to  en- 
courage increased  production.  And  he  re- 
tains additional  flexibility  under  subsec- 
non  'f' — subject  to  th.e  pro:ed±res  m 
that  section  for  public  input — to  order 
additional  incentives. 

Mr.  LONG.  As  I  understind  the  Sena- 
tor, he  is  saying  if  it  is  necessar>-  to  in- 
crea.se  production  from  well  A,  there 
couid  be  an  increase  in  the  price  of  a 
production  ;n  crder  to  rework  well  A. 
Suppose  !;e  wants  to  drUl  weU  B  Under 
the  Senator's  amendment  wq^ld  be  per- 
mitted to  have  a  pnce  increase  ii\  well 
A  to  go  on  and  drill  oil  wcU  B  ~! 

Mr.  MONDALE  Tlie  am.endment  is 
generallj-  limited  to  mcrea^smg  ihe  price 
of  new-  supply,  sub.:ect  to  the  provisions 
of  subsection  'fi.  In  other  words,  if  a 
well  IS  producmg  20  barreLs  a  day  and 
you  do  not  Intend  to  increase  the  pro- 
duction in  that  weU.  the  pnce  of  the  oil 
produced  in  that  well  could  not  be  in- 
creased by  more  than  actual  cost  pass- 
throughs.  If  you  increase  the  production 
of  that  well  from.  say.  20  to  30  barrels  a 
day,  the  Administrator  co-old  authorize 
a  price  on  that  new  producUon  which 
was  greater  than  simply  a  cost  pass- 
through  for  the  purpose  of  encouraging 
expanded  production. 

If  you  drill  sm  additional  weU.  new 
Well  B,  he  could  authorize  an  increase  In 
the  price  of  the  new  production  out  of 
well  B  which  is  greater  tlian  he  would 
be  permitted  in  theory,  on  well  A,  in 
order  to  encourage  expanded  pro- 
duction. 

Mr.  LONG.  That  is  what  I  wanted  to 
know. 

Mr.  President,  in  my  opinion,  this  Is 
an  amendment  to  continue  the  shortage 
of  oil  that  we  have,  because  anyone  who 
has  studied  this  industry-  from  the  point 
of  view  of  those  who  do  not  want  to 
nationalize  and  those  who  believe  that 
free  enterprise  can  do  the  job  tf  per- 
mitted to  operate,  will  pretty  much  agree 
with  what  the  Chase  Manhattan  Bank 
has  to  say  about  the  subject.  Basically  It 
goes  like  this: 

In  order  to  pro\ide  the  free  world  with 
its  requirements  of  energy  between  now 
and  1985  will  require  about  an  Invest- 
ment of  $1,350  trllhon.  That  Is  a  great 
deal  of  money— $1,350  trillion  of  invest- 
ment. 

Now,  it  is  my  impression  that  the  part 
which  they  believe  would  be  Invested  in 
this  coimtry  to  provide  our  requirements 
would  be  about  $500  billion.  That  is  an 
enormous  amount  of  money.  It  exceeds 
our  national  debt  That  is  the  amotmt 
of  money  that  would  be  needed  between 
now  and  1 985  in  this  country. 

Furthermore,  as  I  understand  it.  and 
from  a  banker's  point  of  view-,  the  banks 
are  willing  to  lend  their  share  of  money 
to  do  that  job.  and  other  lenders,  in- 
surance companies  and  others  are  willing 
to  lend  their  share,  on  the  condition  the 
IndusUy  Is  sufficiently  profitable  that  it 
would  be  a  good  loan.  But  no  banker  or 
lender  worthy  of  the  name  is  going  to 
make  a  bad  loan.  They  are  not  going  to 
loan  money  to  drUl  wells  tf  the  oil  indus- 
try Is  not  making  enough  money  to  pay 
off  the  loan. 


-^ 


42470 


CONGRESSIONAL  RH( ORD  —  SENATE 


I  understand  they  vould  expect  to 
loan  about  one-half  of  the  money,  or 
about  $250  billlcHi  for  wells  tn  this  coun- 
try provided  the  Industry  had  the  pros- 
pect of  earning  the  other  $250  billion  In 
profits. 

Based  on  the  performance  of  this  in- 
dustry up  to  this  point,  it  is  the  estimate 
of  those  who  have  studied  it  that  the 
tndustry  is  only  making  one-half  of  the 
profits  after  taxes  that  this  industry 
would  have  to  make  in  order  to  put  up 
its  $250  billion,  whicii.  in  turn,  would 
Justify  the  lenders  putting  up  the  other 
$250  bllllo*  to  provide  our  requirements 
of  fuel  in  this  country 

Where  is  the  hidustry  going  to  make 
the  money  to  earn  the  profits  to  drill 
the  new  wells,  from  the  point  of  view  of 
the  industry?  That  money  would  have 
to  come  out  of  existing  rroductlMi  of  oil 
and  gas. 

The  Federal  Power  Commission  has  the 
kind  of  power  the  Senator  provides  in 
his  amendment,  and  they  are  now  at  long 
last  advocating  a  deregulation  of  gas 
They  finally  have  come  to  realiise  that 
when  you  hold  gas  far  below  what  it  is 
worth  in  a  competitive  market/  you  are 
not  going  to  get  the  gas  production 
needed.  Po  they  recommend,  if  vou  take 
them  away  from  utUity-tsrpe  pricing  for 
that  gas.  producers  can  compete  with 
petroleum  and  coal  for  the  m.irket  and 
increase  the  supply  of  gas. 

The  Senator  from  Minnesota  wants  to 
put  the  industry  imder  the  same  type 
regulation  thftt  the  people  doing  it  now. 
the  Federal  Power  Commi.^sion.  would 
recommend  we  get  away  from.  You  limit 
the  price  j  ju  get  for  the  oil  and  thereby 
deny  the  industry  the  opportunity  to  earn 
the  profits  lo  drill  new  wells. 

I  have  heard  a  lot  of  talk  about  the 
profits  that  have  been  made  by  the  oil 
and  gas  industr>-.  There  may  be  a  lot  of 
profits  on  oil  produced  in  Saudi  Arabia 
I  am  sure  there  are  The  last  figures  I 
saw  it  cost  them  13  cents  a  barrel  to  pro- 
duce oil  over  there  in  Saudi  Arabia. 
They  will  drill  a  well  over  there  and 
get  a  thousand  barreb  a  diy — and  10.000 
barrels  «  day  is  not  unusual.  If  we 
get  100  barrels,  or  1  percent  of  what 
they  would  get  over  there  we  think  we 
have  a  erreat  well  m  the  United  States  So 
the  big  profits  on  oil  have  been  in  foreign 
oU. 

The  studies  have  mdlcaied  that  for  the 
last  20  years  In  the  production  of  oil 
and  gas  In  this  country,  and  this  Is 
after  taxes,  taking  the  depl°ticn  and 
everything  else,  in  the  profits  of  produc- 
ing oU  domestically  in  this  country  are 
far  below  the  average  of  all  manufactur- 
ing industries.  That  is  the  reason  that 
last  year  only  half  as  many  wells  were 
drilled  as  20  years  ago. 

The  year  before  that,  we  had  about 
half  the  number  of  wells  drilled  as  we 
had  20  years  ago.  So  it  was  the  year 
before  that.  It  just  was  not  sufQciently 
profitable. 

Mr.  President,  if  we  are  going  to  have 
self-sufficiency  here,  we  are  going  to  have 
to  drill  jast  a  great  many  more  oil  and 
gas  welli  It  Is  true  that  additional  pro- 
ducUon  of  fuel  can  be  found  from  coal 
We  can  find  some  m  oil  shale.  We  can 
find  some  in  geothermal  energy,  but  those 


December  19,  1973 


people  who  have  studied  the  industry  suid 
the  problems  as  they  exist  now  in  the 
energy  field  all  seem  to  agree  that  in  the 
short  run,  between  now  and  19«5.  the 
overwhelming  increase  in  the  producUon 
of  fuel  will  necessarily  have  to  be  in  oU 
and  in  gas. 

So  here  is  an  amendment  to  say  that 
they  cannot  make  the  money  that  it 
would  take  to  drill  these  tens  of  thou- 
sands of  new  wells.  This  would  mean  they 
cannot  make  enough  profits  to  justify 
the  lending  of  money  by  bankers  and 
others  who  would  advance  them  the 
money  to  drill. 

It  is  an  amendment.  In  effect,  which 
limits  unreasonably  the  ability  erf" the  In- 
dustry to  meet  the  needs  of  the  people 
and.  In  the  lozig  run.  It  Is  saying  that  the 
industry  should  be  nationalized. 

Although  the  Senator  has  not  sug- 
gested that  m  his  speech,  more  and  more 
Members  of  this  body  are  suggesting.  In 
the  cloakroomi,  and  other  places  around 
the  Senate,  that  we  are  certainly  going 
to  have  to  nationalize  the  oU  and  gas 
industTN-.  Mr.  President,  wherever  that 
has  been  tried,  it  has  been  a  dismal  fiop 
but  when  you  fix  the  industrv  in  such 
shape  that  it  cannot  make  enough  prof- 
its to  Justify  drilling  the  wells  or  make 
enough  profits  to  justify  banks  and  other 
lenders  lending  the  money  m  order  to 
driL.  you  are  setting  the  stage  for  a  na- 
tionalized industn.- 

Here  is  an  industry  thpt  can  compete 
with  anybody  in  the  North  Sea,  in  Saudi 
Arabia,  compete  with  anybodv  on  earth 
and  pay  great  taxes,  which  some  are  sug- 
gesting be  Uquidated  by  unwise  adminis- 
tration and  unwise  laws,  even  though  we 
have  the  agency  administering  the  In- 
dustrj-.  the  Federal  Power  Commission 
sa;.  ing  it  makes  no  sense  and  we  should 
stop  it.  Now  we  have  a  proposal  to  extend 
to  oil.  which  is  in  short  supplv.  the  same 
kind  of  approach,  and  put  them  under 
the  same  kind  of  regulaUon  where  thev 
cinnot  mak»  nroflts  that  are  necessary  in 
order  to  drUl  more  wells  or  to  borrow 
money  to  do  it. 
It  would  be  a  very  foolish  thing  to  do 
The  sponsor  oi  this  amendment  is  not 
on  the  committee  which  recommended 
the  bill,  although  some  of  the  cosponsors 
of  the  amendment  are.  Here  is  a  proposal 
that  was  not  recommended  by  the  com- 
mittee. It  Just  came  out  of  the  blue  and 
I   might   say.   somewhat   like   that   tax 
amendment  that  t-^  not  looked  at  by 
any  committee  that  had  anything  to  do 
with    taxes,    on    which   there    were   no 
hearings 

I  a^.  not  know  how  much  oil  is  pro- 
duced in  Minnesota— I  am  .«ure  it  is  very 
lutie— but  I  am  sure  the  Senator  is  not 
familiar  with  this  problem  except  as  he 
goes  to  the  gas  pump  and  pays  higher 
price"!  for  ?a5oline.  as  we  all  do 

But  the  public  is  going  to  realize  that 
It  IS  better  to  pay  more  for  energy  than 
not  be  able  to  get  it.  It  Is  going  to  realize 
that  it  is  better  to  pay  more  for  fuel  than 
not  be  able  to  get  it. 

In  New  England  they  are  finding  it 
necessary  to  pny  more  to  get  fuel  oil  that 
is  being  derived  from  the  foreign  market 
because  the  prices  of  foreign  oU  being 
imported  into  this  country  are  not  sub- 
ject to  controls,  and  oil  sells  far  above 


prices  that  domestic  producers  are  per- 
mitted to  charge.  They  are  paying  the 
higher  price  because  they  know  it  is  bet- 
ter to  pay  the  higher  prices  than  to  do 
without. 

In  my  judgment,  to  agree  to  this 
amendment  or  anything  of  that  sort 
would  be  folly. 

If  there  are  going  to  be  some  kind  of 
price  controls  on  the  oil  industry— and 
they  are  limited  In  the  price  they  can 
charge  at  the  piunp  as  well  as  in  the 
price  of  crude  oil  to  about  $4.50  per  bar- 
rel— that  limitation  should  be  put  on  by 
someone  who  knows  something  about  the 
oil  and  gas  industry,  somebody  who  has 
studied  its  problems. 

What  credentials  do  these  gentlemen 
have?  Mr.  Mondale.  Mr.  Mtrsiux.  Mr. 
Pastore.  Mr.  Staftord.  Mr.  KjomrDv.  Mr 
MclNTYRE.  Mr.  Hart.  Mr,  Proxjcre.  Mr. 
Javtts.  We  produce  in  64  parishes  in  Lou- 
isiana more  oil  than  the  States  repre- 
sented by  those  Senators  put  together. 
Even  so.  I  would  not  feel  that  I  have  the 
credentials  to  make  such  a  Judgment 
without  the  benefit  of  extensive  studies 
and  hearings  on  the  subject.  No  one  in 
the  entire  Congress  has  that  sort  of 
expertise. 

But  be  sure,  beyond  that,  they  know 
something  about  the  oil  Industiy. 

Just  the  other  day  I  read  that  the 
Senator  from  lUinois  (Mr.  Stevenson) 
was  being  quoted  by  the  Governor  of 
Oeorgla — and  Georgia  does  not  produce 
any  oil  either— about  the  fact  that  there 
are  1.000  wells— Imagine  this:  1.000 
wells— In  the  Gulf  of  Mexico  not  produc- 
ing any  oU.  They  are  shut  down.  How 
horrible  The  oil  producers  are  in  a  con- 
spiracy. That  was  on  the  Today  program. 
They  are  In  a  conspiracy  to  create  a 
shortage,  so  that  they  can  charge  more 
for  oil.  I  am  sure  this  sUtement  was 
made  innocently  and  with  every  good 
intention,  but  it  did  create  a  gross  mis- 
conception of  the  facts. 

Mr.  President,  there  are  11.000  wells  in 
the  Gulf  of  Mexico— 11.000.  of  which 
about  3.000  are  gas  wells.  There  are  all 
kinds  of  problems  in  producing  wells  In 
the  Gulf  of  Mexico.  There  are  storms 
and  almost  any  other  kind  of  difficulty 
in  producing  oil. 

The  wells  sand  up:  and  when  there  Is 
sand  In  the  pipe,  it  is  necessary  to  pull 
the  pipe  up  and  st^rt  over  again.  The 
paraffin  must  be  cleaned  If  they  pidl  on 
the  well,  to  try  to  meet  the  energy  crisis, 
the  structure  below  is  filled  to  the  top 
with  an  Inexhaustible  .supply  of  salt 
water.  So  the  salt  water  Is  sucked  uo  and 
may  even  kUl  the  well  forever.  If  the 
producer  is  lucky  and  lets  the  well  sit  for 
a  year  or  so.  the  oil  may  eventually  dis- 
place the  salt  water. 

So  about  10  percent  of  the  wells  are 
shut  down  because  water  has  displaced 
the  oil.  or  because  it  is  necessary-  to  clean 
out  the  sand,  or  because  paraffin  is  clog- 
ging the  wells,  or  because  storms  have 
damaged  the  platforms,  or  for  a  thou- 
sand other  reasons  that  somebody  in  the 
gas  industry  can  understand.  Unfortu- 
nately, the  statement  was  made  by  the 
Senator  from  Illinois  (Mr.  Stcvensoni. 
who  had  not  been  informed  of  the  varied 
reasons  why  weUs  are  occasionally  closed 
down. 


December  19,  1973                CONGRESSIONAL  RECORD  — SENATE  42471 

The  case  is  similar  to  that  of  a  man  aooui  the  nice  of  ga.>oiu,e  ai  the  jroiiip.  A  weU  wii;  cost  $5  million  perhaps  to 

who  o*  as  a  Uiouii^nd  trucks,  a  hundred  But  I  submit  that  li  Senators  are  wor-  put  down  Uie  platform  and  drill    Then 

of  them  being  in  the  shop  for  repairs.  So  ned  ab^ut  Uie  suppUer,  they  should  not  the  odds  would  be  30  to  1  that  a  man 

It   wa*   suggested    by    the   Senator    that  put  someUung  lijte  this  on  the  back  of  would  not  find  enough  oil  to  iustifv  the 

those    thousand    weUs    are    deliberately  the  gas  and  oU  industry.  cost  of  the  pi^tf orm  aLd  the  inl  u4  Sr 

being  Kept  shut  down,  whhe  we  are  try-         Mr.  BURDILK  Mr.  President,  will  the  the  oil  that  is  produced 

Ing  to  make  progress  In  the  gas  supply  Senator  from  Mijme6ota  yield?  So  by  the  lime  thev  have  out  do»Ti  thP 

situation.  Nothing  could  be  further  from         Mr.  MONDALE.  I  yield.  plaSoiii    Ind    do^e    the    dJuiuiJ     tSl 

xho"rTi;,.»^         f  r^       ^       rr  ^  K,  v.  ^^- BURDICK.  I  was  interested  in  the  amount  may  oe  about  $150  million  on  the 

hi^     m         "^>''.  °^  <^ef«^*-Qf d  bless  hypothetical  que.,iion  that  the  Senator  average  for  a  successful  wUdcat  well.  Of 

^^^'  Zr^F}^^      T^l^  »^^f  °f>,  ^^  {'.'"'^  Louisiana  put  to  the  Senator  from  course,  one  can  drill  offsets  once  he  finds 

Today    program  and  said  that  a  thou-  Mmnesota.  I  would  ake  to  have  the  at-  a   wi'dcat   weil    However    to  find  more 

sand  wells  are  shut  down  m  the  Gulf  of  t^ntlon  of  the  Senator  Irom  Minr..s.ta  oil  now,  one  cannot  find  it 

T  o  t' r,    ,            ,          ,.        K     w  In  that  hypotiietical  question,  the  pro-  Dnllmg  just  from  the  surface  down  to 

I  ask  Uiai  ..n  information  sheet  from  ducer  oi  well  A,  producing  20  barrels  a  5  000  feet  25  years  ago   when  I  came  to 

the  American  Petroleum  Institute  on  the  day,  could  not  increase  the  price  of  that  the  Senate    would  often  produce  oil   At 

question  of  ;^^h  ^t-ui  Production''  in  the  oil.  But  il  he  dnUed  another  weU,  then  this  time  sufficient  oU  is  not  found  in  that 

gulf  be  prlntea  m  the  Record  In  further  he  could  increase  the  price  of  that  oU.  manner 

explanation  of  the  fucts  and  figures  in  Is  that  correct?  n  one  drills  10  000  feet  down   it  r/^cu 

quesUon.  As  I  understand  it,  the  figures         Mr.  MONDALE.  With  respect  to  the  4  or  5  Umes  tie  cos    of  dSng  ??o1 

used  are  primarily  from  a  recent  study  hypothetical   question,   with  respect  to  down    n  one  hones  to  fird  ^he  wUi 

conducted  by  the  U^S.  Geological  Survey  the  20-oarrels-a-day  well,  there  could  be  often  have  to  gSlovS  fs  Soo  or  mayS 

^^■J  ^f  "k""  °''J.^c"o°-  ^^,e  material  an  increase,  limited  to  the  passtlirough  20,000  feet.  That  may  cost  today  10  times 

was  ordered  to  be  printed  m  the  Record,  of  costs.  For  new.  additional  production,  as  much  as   the  Senator's  amendment 

as  follows:  the  Adnumstrator  would  be  authorized  would  pennit  for  a  new  weU  to  make 

SHTJT-iN  p«oDtTCTTOK  to  lucrease  prices  by  greater  than  a  cost  enough  money  to  pay  for  the  well 

1.  AUegationa  iiave  been  made  that  the  Passthrough — provided  that  such  in-  Where  will  we  fond  the  money  to  nay 
petroleum  industry  Is  reetricting  production  creases  can  be  expected  to  Increase  the  for  9  out  of  10  wells  that  are  drv  hnle^ 
of  oU  and  gas  by  shutting-Ui  wells  on  off-  Investment  In  new  production.  So  In  that  We  have  a  simple  answer  We  can  do 
shore  leases,  thereby  contrlvUig  to  create  or  sense,  the  new  production  WOUld  have  a  what  iTs  been^rionP^  ri^iM^Iono  «oif 
lnten.slfy  shortages.  Th^se  assertions  are  un-  different  status  VTv.  i^  Louisiana.  Half 
founded:  they  divert  attention  from  the  true  Mr  RTTOnTr-'w  Tniof  «.  ^>,of  t  ,  a  of  the  producers  in  Louisiana  have  gone 
cau«»  of  the  shortage;  and  they  delay  the  ,,]^-  fJ^^S^f  ^*^  ^  ^^^  ^  "°?er-  out  of  business. 

formulation  and  in-.niementation  of  effec-  Stood  the  Senator  to  say.  Suppose  that  Where  can  people  get  enough  money 

tive  energy  policies.  Here  are  the  facts:  ^'^^  B  is  a  dry  hole.  Who  pays  for  those  to  find  an  oU  well  that  wUl  make  enough 

2.  Some  11.000  wells  In  the  Oulf  of  Mexico  '^°^-  money  to  pay  for  what  it  produces' 

are  producing  ou  and  gas.  Marine  wells.        Mr,  LONG    Of  course,  the  man  who  The  Senator  has  indicated  that  9  out 

most  of  Which  are  located  in  the  Gulf  of  draws  a  dry  hole  Is  Stuck  with  It.  He  Is  of  10  times  there  would  be  a  drv  holt 

Mexico,  are  now  producing  more  than  17  per-  out  his  money.  He  does  not  get  It.  That  and   even  in   that  event  onlv    1   "oi  t   nf 

cent  of  domestic  crude  oU  and  about  15  per-  Is  the  Size  of  it  TVt  ^          ,1        ,      ^^^^^  °^>    ^   O"'  Ol 

ce.-.t  of  the  Nations  natural  gas.                                Mr    RtrnDTPK:    Thprp  ctin  oa„^«t  K^  ^/^'  would  make  a  substantial  amount 

3.  In  a  recent  study,  the  D5.  Geological  .n  inrr^^n  t^p  ^w M  n  ?^°n  ^  °^  °'°°^"  ^^  "^^"^  ^^^  "^^y  w\M  be 
Survey  refuted   charge  thivt  produce.7  are  ^\T''l'^JV'^^  ^l^"^  Z^  °"  ^  ^^^  ^-  marginal  wells. 

withholding  gas  from  production  In  the  Oulf        ^7'  TrA             under  this  amendment.  Mr.  BURDICK.  Where  will  the  money 

of  Mexico.  Acocrding  to  the  USGS  report.  In         '^-  MONDALE.  Mr.  President,  the  an-  come  from  to  pay  for  the  dry  wells? 

August  1973  there  were  2.977  gas  completions  swer  to  that,  if  the  Senator  Will  yield,  is  Mr  LONG  It  will  come  fmm  hot  air 

in  tb«  Ouu.  Of  this  total.  2.034  were  pro-  that  if  the  Administrator  finds  that  In  just  like  in  this  Chamber   It  win  rnrn- 

ductng  gas  and  943  were  shut-in.  Implementing  these  pricing  policies,  it  is  ou^  of  the  atmosDhe^T^^t  i   u hirp  f^ 

4  The  reasons  for  the  shut-in  gas  com-  necessary  to  Permit  inrrea^s  crpnl^r  ^^^1  atmctephere.  That  i:.  where  the 
pietions.  as  listed  by  the  USGS.  are  as  foi-  than  ttp  hnvp  nf-^cLn  iff^f,  greater  money  would  have  to  come  from  to  driU 
lows:  ft  ?;^7^  ^r  'H"^^/.'^'  ^®  f^'^L'P^',^^  ^^  ^^^'  ^ells.  The  Senator's  amendment 
water  proolems 325  LrfJlVS^^ '^l  Z^s^bs^e^c^^n  TTuTo^  11^?"^^^'^' r^J'^^l 

LTd'^rup"!'.*^'^.''.':!!^-:::::::::::::  5^?  S'atioroi^^rd^r'^'^"'",'^ ri"  ^^^^^oToiZ^Z^n^.Z^^^l 

Lowpressiire M      jii  ?,^f"°?  °!k  ^.f  ^*:^^'°^  7^"«  ^  ^^'^^-  So  without  the  money  from  the  wells, 

Mecharicai  dUBcuitiM 55  D""y.  for  "le  Admmistrator.  even  In  in-  i  do  not  know  where  people  will  get  the 

3uspended  operations 46  crc^mg  the  price  on  the  oil  In  weUs  in  money.  The  banks  are  not  going  to  lend 

Awaiting  facilities 36  existing  production,  provided  the  correct  the  money  to  them  because  there  Is  not 

Platform  maintenance  or  repair 33  procedures  are  followed.  enough  production  now  to  provide  an 

— — -        Mr  BURDICK.  But  there  Is  no  pro-  adequate  profit- to  justify  the  loan. 

^''^  — -      ^  ductlon  in  a  dry  well.  Anyone  who  knows  the  oU  and  gas 

5  Some  of  the  completions  have  been  Mr.  MONDALE.  I  do  not  know  \irtiat  to  business  knows  that  a  bank  will  not  lend 
listed  by  the  operators  as  shut-in  since  the  do  with  a  dry  well.  I  suppose  that  one  money  for  a  well  that  one  hones  to  find 
1950-s.  This  la  because  an  operator  is  not  re-  could  charge  it  off.  I  do  not  know  how  one  A  man  has  to  pledge  the  well  that  Ls  nrn  " 
qulre'l  to  remove  a  well  completion  from  the  would  do  it  rii,oiv,r-  ^^  ^,^»t  *7r  *  .u  "i^n^  Pro- 
shut-ln  list  unless  It  is  to  be  abandoned  Mr  BURDICK  Mr  PrPsiHpnf  THpUpvp  on  ^  I  ^°J^^  ^^^  '''°'^^'-''  '°  ^^ 
permanentiv.  tH=f  fK    c       .      ,       President.  I  beheve  a  well  that  one  hopes  to  get  some  oil 

fi.  The  USGS  Is  charged  v.  1th  assuring  that  .h*'  u    ^^P*^^!"''"  Lx)ulsiana  told  me  from.  They  wiU  not  lend  money  on  a  well 

well  completions  capable  of  commercial  pro-  V^*^  "®  believes  the  ratio  Ls  about  eight  that  one  hopes  to  find  oil  in. 

ductlon  are  In  fact  produced  or  requiring  that  ""^  holes  to  one  successful  hole.  If  one  wants  to  justify  a  loan  for  a  new 

the   lea"!e    be   relinquished    From   the   pro-          Mr.  LONG.  It  is  more  than  that.  Actu-  well,  he  will  have  to  give  up  his  oil  well 

ducer-s  standpoint,  the  large  economic  losses  ally,  the  last  figures  I  heard  indicate  that  that  is  In  production    and  that  is   thp 

of  fauing  to  produce  from  commercially  fea-  If  It  is  new  oil  the  Senator  is  talking  one  on  which  the  Senator  would  no*  ^ 

n?of"pr^uc«on"'  *°'  ""'^  ''°'"  '^'^°"'-  ^f^S^  ^^^*  ^^"'  ^^^  ™^°  °'  ^"^  '^^^  ^^  increie  ^  price           ^  """^  ^ 

mg       production.  holes  to  successful  wells  is  more  than  Mr.  BURDICK.  Would  It  be  fair  to  say 

Mr  LONG  T  submit  that  this  amend-  8  to  1.  However,  there  Is  a  difference  be-  that  the  Senator  from  Louisiana  thinks 
ment  ought  to  be  studied  It  ought  to  be  '■^een  finding  an  oil  well  and  finding  a  that  the  Mondale  amendment  would  im- 
the  subject  of  hearings  People  ought  to  ^'^^  ^i^at  will  make  one  a  lot  of  money,  pede  the  discovery  of  oil  and  the  Indus- 
have  a  chance  to  explain  their  point  of  So.  we  have  at  least  eight  dry  holes  for  try? 

view.  I  submit  that  no  one  who  has  the  every  good  one.  When  we  get  to  where  Mr.  LONG.  Yes  It  would  also  nation- 

responsibUlty    of     recommending    this  we  will  have  to  find  a  weU  In  the  future  alize  all  of  the  industrj-.  But  that  matter 

would  risk  it.  on  the  Continental  Shelf  in  the  Atlantic,  would  be  self-serving  too 

This  amendment  Is  the  work  of  a  Sen-  the  figures  that  I  hear  are  that  they  estl-  Mr.  BURDICK.  Mr  President  I  thank 

ator  who  Is,  hi  good  faith,  concerned  mate  the  odds  to  be  about  30  to  1.  both  Senators 

CXIX 2675— Part  33 


12472 


CONGRESSIONAL  RiiCORD  —  SENATE 


December  29,  1973 


Mr  MONDALE  Mr  President.  I  have 
been  utterly  charmed  by  the  argument 
of  my  friend,  the  Senator  from  Louisiana 
<Mr,  Lowe)  who  apparently  describes  an 
oU  company  as  some  kind  of  new  version 
of  the  Salvation  Army,  an  unselfish,  self- 
effacing  Industrj-  which  is  In  an  economic 
posture  of  short  supply  against  a  back- 
drop of  an  Arab  boycott,  which  the  econ- 
omists tell  them  will  permit  them  to 
double  or  more  the  price  of  oil  products 
In  this  country- 

So.  all  American  consumers  may  soon 
be  paying  |I  a  gallon  for  gasoline. 

We  are  told  the  oil  companies  would 
never  raise  prices  to  the  American  con- 
sumers merely  to  increase  their  profits, 
because  we  are  told  they  are  a  different 
kind  of  people  who  do  not  respond  to  the 
predicament  in  which  this  Nation  now 
flr.d5  Itself  and  atxjut  which  virtually 
every  economist  has  been  warning. 

Mr  JOHNSTON  Mr.  President,  will 
the  Senator  yield ^ 

Mr  MONDALE.  In  just  a  moment. 
Let  us  take  a  look  at  this  Industrj'  and 
how  it  has  done  recently. 

In  the  third  quarter  of  1973.  Amerada- 
Hess  limited  Itself  to  only  a  295 -percent 
Increase  In  profits.  That  Is  all  they 
wanted.  They  were  willing  to  live  with 
that. 

Exxon  limited  Itself  to  a  measly  81- 
percent  Increase  In  profits.  In  the  na- 
tional Interest. 

Mr  Oetty.  who  was  having  trouble 
paying  for  his  three  meals  each  day, 
limited  himse'f  to  a  measly  71  percent  in 
profits.  And  on  it  goe<:  down  the  line. 

Mr.  LONO  Mr.  President,  wiU  the 
Senator  yield'' 

Mr.  MONDALE.  I  will  yield  later.  Mr. 
President,  for  the  third  o.uarter  the  prof- 
its of  the  oil  Industry  w  ere  greater  than 
the  combined  profits  of  the  fcUowlng 
ind'istrles.  all  of  them  put  together:  Air- 
lines, autos.  beverages,  containers,  food, 
machine  tool,  steel,  textile,  tire,  rubber. 
and  trucks. 

Mr.  LONG.  Mr  President,  will  the  Sen- 
ator yield? 

Mr  MONDALE  I  will  yield  when  I 
am  through.  We  are  now  told  that  things 
are  dLTerent.  We  are  now  told  that  the 
OTily  reason  that  oil  companies  are  raLs- 
Ing  their  profits,  so  that  the  economists 
are  predicting  $1  a  gallon  for  gasoline, 
is  so  that  they  can  generate  money  for 
production. 

I  think  the  American  people  have  a 
right  to  protect  themselves  in  this  situ- 
ation against  exorbitant  prices  and  un- 
l)elievable,  astronomical,  unpredicted 
proflts. 

That  is  what  my  amendment  does.  I 
would  say  to  my  good  friend,  Lhe  Sena- 
tor from  North  Dakota  O^.  BuanicK', 
that  if  he  reads  the  amendment  vferj- 
closely,  it  calls  upon  the  Administraipr 
to  recognize  the  necessary  and  reasoi 
able  costs  of  exploration  and  develop  , 
ment  and  permits,  a  passtlirough  of 
these  costs. 

We  do  not  fail  to  recognize  that  ex- 
ploration for  oil  is  a  costly  and  expen- 
sive business.  We  t«ll  the  Administrator 
that  those  costs  are  permitted  to  be 
passed  through.  They  will  show  up  in 
higher  prices 
We  say  further  that  in  the  develop- 


ment of  Increased  exploration  and  pro- 
duction, the  Administrator  is  permitted 
to  increase  prices  greater  than  a  pass- 
through  of  costs  In  order  to  encourage 
this  expanded  production. 

The  other  day  one  of  the  Nation's  top 
economists.  Dr.  Arthur  Okun.  told  me 
that  if  we  take  the  advice  of  the  oil 
Industry  and  permit  oil  prices  smd  oil 
product  prices  to  rise  to  the  extent  that 
the  free  market  would  demand  In  this 
short  supply-lx)ycott  situation.  It  could 
well  Increase  the  cost  to  the  American 
consumer  totally  by  $50  billion— let  me 
repeat  that:  $50  billion— and  that  the 
average  family's  cost  of  Uving  could  rtse 
by  $20  to  $25  a  week. 

That  is  what  we  are  talking  about  We 
are  talking  about  the  most  fantastic  in- 
crease In  the  cost  of  Uvlng  that  this 
country  has  ever  seen. 

We  waiit  to  encourage  new  exploration. 
We  are  not  asking  for  a  rollback  In  prof- 
Its.  We  are  permitting  price  Increases 
through  a  cost  passthrough.  We  are  even 
permitting  profit  Increases  where  they 
will  bring  about  new  domestic  explora- 
tion and  production 

In  my  opinion,  this  is  a  verj-  reasonable 
amendment.  It  permits  wide  latitude  to 
'he  Administrator,  but  it  says  that  we  are 
not  going  to  live  with  the  Administra- 
tion s  philosophy  of  "rationing  by  price." 
because  that  is  the  policy  of  this  Admin- 
istration. Mr.  Stein,  the  Chairman  of 
the  Council  of  Economic  Advisers,  the 
other  dny  warned  that  fuel  costs  might 
rise  by  as  much  as  50  percent  In  the 
rr».'ath  -ahead,  and  Mr.  William  Simon, 
who  wUl  be  the  Administrator  of  the 
Federal  Energy  Administration,  has  re- 
cently indicated  his  preference  for 
allowing  fuel  prices  to  rise  to  help  control 
demand 

This  is  the  last  chance  that  Congress 
has  to  act.  We  are  right  on  the  verge  of 
this  astronomical  increase  in  prices,  some 
of  -.rhlc':;  we  have  already-  seen.  It  will  be 
too  late  to  influence  Government  policy 
imless  we  act  on  this  bUl. 

Mr.  JOHNSTON.  Mr.  President,  will 
the  Senator  yield? 

Mr.  MONDALE.  Yes.  in  just  one 
moment.  This  is  a  necessary  measure,  in 
my  opinion,  to  protect  American  con- 
sumers from  the  most  extraordinary 
price  increase^;  we  have  ever  seen  in 
American  history. 

I  am  glad  to  yield  to  the  Senator  from 
Louisiana. 

Mr.  JOHNSTON.  I  am  interested  in 
how  we  would  fix  starting  prices,  because 
this  amendment  speaks  only  in  terms  of 
price  increases  and  passthrough  of  costs. 

How  do  you  fix  the  beglnrung  price? 
Can  you  fix  the  sUrtlng  price  based  on 
the  price  structure  which  the  Senator 
suggests  has  resulted  In  astronomical 
profit  to  the  oil  industry,  or  do  you  lower 
that  price  to  the  point  where  the  oil 
companies  will  not  make  that  astronom- 
ical profit? 

Mr  MONDALE  This  amendment,  as  I 
say.  starts  with  the  existing  price  struc- 
ture, and  that  is  why  It  is  a  very  modest 
emendment.  It  does  not  anticipate  price 
rollbacks  As  a  matter  of  fact.  It  antic- 
ipates some  price  Increases,  where  neces- 
sar>-  to  achieve  certain  objectives 


Mr  JOHNSTON  Is  that  based  on  the 
world  market,  where  we  have  crude  sell- 
ing for  $16  80  In  Iran  and  Nigeria? 

Mr  MONDALE  The  existing  situa- 
tion In  the  United  Stales,  or  wherever 
we  can  buy  oil.  would  be  determinative. 
It  Includes  legitimate  cost  passthroughs 
from  wherever  we  can  get  oil. 

Mr  JOHNSTON  Based  on  what  start- 
ing point,  though?  Is  It  based  on  cost  of 
production,  or  on  whatever  the  price 
structure  Is  noW  If  It  is  based  on  what- 
ever the  price  structure  Is  now.  I  would 
suggest  to  the  Senator  that  there  Ls  a 
wide  divergence  In  price  striictures  right 
now.  and.  indeed,  with  stripper  wells, 
for  example,  we  have  exempted  them 
from  price  controls  under  the  mandatory 
allocation  bill. 

Mr.  MONDALE.  It  may  be  that  the 
stripper  well  Is  a  different  situation  I 
have  had  the  Senator  from  Oklahoma 
•  Mr.  Bartlitt*  talk  to  me  about  that 
We  may  modify  the  amendment  to  deal 
with  that  special  problem. 

Mr.  JOHNSTON.  Do  I  understand, 
then,  that  the  starting  price  is  based 
on  present  U.S.  prices  for  crude,  except 
for  stripper  wells? 

Mr.  MONDALE.  The  U.S.  price,  or 
whatever  other  source  we  have  for"  oil, 
and  whatever  the  parUcular  price  blend 
is. 

In  other  words.  It  Is  very  reasonable. 
It  permits  the  companies  in  this  Industry 
to  passthrough  Increases  In  prices  which 
reHect  actual  increased  costs  of  domestic 
or  foreign  operations. 

Mr.  JOHNSTON.  I  am  not  talking 
about  at  the  distribution  level. 

Mr.  MONDALE  At  the  crude  oil  level 
correct. 

Mr.  JOHNS'iX)N  Because  there  have 
been  prices,  believe  It  or  not.  of  $16.80 
for  crude  in  Nigeria,  and  equal  prices  In 
Iran. 

Mr.  MONDALE.  Yes.  But  what  I  might 
point  out  here  is  that  domestically— I 
think  the  Senator  is  talking  about  the 
latest  bid  price  in  Iran 

Mr.  JOHNSTON.  Right. 

Mr.  MONDALE.  Domestically,  where 
most  of  our  oil  comes  from,  the  price  is 
now  between  $4.50  and  $5. 1  do  not  know 
the  price  today,  but  it  is  substantially 
l>tlow  the  foreign  price  today. 

In  any  event,  let  me  read  the  language 
of  the  amendment,  as  to  what  Increases 
may  be  allowed : 

P-r  crude  porroleum.  ro  more  than  a  pass- 
throigh  cf  cost  Increases  actually  incurred 
tn  domestic  or  foreign  operations,  except  that 
the  Administrator  may  Implement  exceptions 
to  such  rules  for  the  sole  purpose  of  provid- 
ing increases  In  the  price  of  new  supply  to 
encourage  increafed  domestic  expfSfctlon  and 
productlo-i  of  crude  petroleum. 

In  Other  words,  it  anticipates  legiti- 
mate cost  passthroughs  from  both  do- 
mestic and  foreign  operations. 

Mr.  JOHNSTON.  I  understand  that  it 
allows  the  cost  passthroughs  for  In- 
creased costs,  but  I  am  talking  about 
where  is  the  starting  point?  If  the  Sena- 
tor could  suggest,  because  of  the  lan- 
guage  

Mr.  MONDALE.  The  cost  at  the  day  of 
enactment  There  is  no  rollback  intended. 

Mr  JOHNSTON  No  rollback  In- 
tended? 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42473 


Mr.  MONDALE.  No;  It  la  the  cost  at  the 
day  of  enactment 

Mr  JOHNSTON.  All  right.  I  suppose 
that  does  not.  then,  contemplate  a  na- 
tional price  for  crude:  It  Is  whatever  one 
is  charging  on  the  day  the  law  is 
enacted'' 

Mr.  MOND.^LE  That  Is  correct 
Mr.  JOHNSTON.  All  right.  Suppose 
you  are  an  independent,  and  you  want  to 
start  a  new  compan\ ,  and  you  have  never 
discovered  oil  before.  Where  do  you  begin 
your  first  price? 

Mr.  MONDALE.  As  Indicated  on  page  3 
of  my  amendment,  line  7,  the  Adminis- 
trator has  broad  authority  for  pricing 
policies.  That  would  deal  with  the  whole 
range  of  problems  of  the  kind  the  Sen- 
ator refers  to.  Under  subsection  ig;.  he 
would  establish  rules  and  regulations  to 
implement  fuel  pricing  policies,  and  that 
would  be  something  within  the  discretion 
of  the  Administrator. 

Mr.  JOHNSTON.  I  would  suggest  to 
the  Senator  that  there  Is  no  language  In 
the  amendment  relative  to  beginning 
prices.  There  is  only  language  about  In- 
creases in  prices.  If  there  is  language 
relative  to  beginning  prices.  I  would  like 
to  know  what  kind  of  direction  we  are 
giving  to  the  Administrator  to  set  those 
initial  prices. 

Mr.  MONDALE.  He  has  broad  author- 
ity. If  the  Senator  will  read  this  amend- 
ment, he  will  see  that  he  has  very  broad 
authority  to  deal  with  problems  of  that 
kind,  and  in  addition  to  that,  under  thi.s 
underlying  bill  before  us.  there  Is  addi- 
tional authority  that  the  Administrator 
has  to  deal  with  problems  of  that  kind. 
Mr.  JOHNSTON  What  Is  the  direc- 
tion and  the  Intent  of  Congress  as  to 
where  he  should  set  the  Initial  price^ 

Mr.  MONDALE.  It  would  be  at  his  dis- 
cretion. He  would  have  to  hold  hearings 
to  deal  with  classes  of  problems  which 
might  deal  with  new  competitors  of 
that  kind.  It  would  be  well  within  his 
discretion. 

We  are  not  laying  out  rigid   (ground 
rules,    but    rather   broad    stajidards.    It 
would  undoubtedly  be  heavily  influenced 
by  the  nature  of  the  market  at  the  time. 
>  V        Mr.    JOHNSTON.    Ls    his    dlscreUon 
\J  limited,  and  if  so   bv  what' 
Mr.  MOND.ALE   No. 
Mr.   JOHNSTON.   Could   he,   for  ex- 
ample, pick  the  price  of  Nigerian  crude, 
at  $16.80  a  barrel  and  even  higher?  And 
how   much   lower   wouJd   his   discretion 
range? 

Mr.  MONDALE.  Well.  If  he  tried  to 
establish  prices  at  that  level  he  would 
have  to  justify  that  in  the  course  of  hLs 
hearings,  on  the  basis  of  the  market  and 
on  the  basis  of  what  l.s  realistic. 

It  is  impossible,  may  I  .say  to  my  friend 
from  Louisiana  Mr.  Johnston)  to  shape 
an  amendment  which  anticipates  with 
particularity  ever>'  possible  vEigary  of  the 
market.  We  do  not  intend  to  do  that. 
This  is  not  a  straitjacket  amendment, 
but  a  realistic  one  that  tries  to  deal  with 
the  Inrrea-ses  of  prices  that  can  be  passed 
on  to  the  consumer  as  the  result  of  true 
cost  increases,  or  increased  profits  that 
Diay  be  necessary  specifically  in  order  to 
encourage  increased  domestic  produc- 
tion. In  addition  to  that^nder  subsec- 


tion (f  I,  to  wiiic:;  I  fiavf  made  reference 
the  Administrator  has  broad  authority 
to  deal  with  problems  of  the  kind  the 
SeiiHtor  is  di<;rus.sinK 

Mr,  JOHNSTON  I  understand  the 
Senator's  words  but  I  sUll  think  the  key— 
the  crucial  and  the  critical  question 
relative  to  the  price  of  crude  to  someone 
who  wants  to  put  together  a  venture  and 
then  go  out  and  drill — Is  that  there  is 
virtually  no  direction  in  the  bill,  no  lirr.jf 
on  the  discretion  as  to  where  the  starting 
price  will  be.  so  that  a  driller  will  have 
no  idea  what  he  can  get  for  his  crude  il 
he  finds  It.  I  would  suggest  that  there 
are  ways  to  define  what  that  starting 
price  .should  be  and  we  could  start  it 
based  on  cost,  or  the  fair  niartiet 
value 

Mr.  MONDALE,  If  lhe  Senator  would 
defer  in  his  questioas,  we  have  some  sug- 
gested language  that  we  should  like  to 
discuss  with  him 

Mr,  JOHNSTON  If  I  may  ask  a  few 
more  questions  on  another  subject,  one 
Ls  allowed  to  gel  greater  profits  for  new 
production  Would  the  Senator  define 
what  is  "new  production'  or  "new  sup- 
ply"? Would  it  be  a  new  well  In  an  old 
field,  or 

Mr,  MONTDALE  The  Senator  is  try- 
ing—perhaps understandably  so — but 
trjmg  to  spell  out  with  great  particular- 
ity precisely  the  que.«;tions  the  .'Adminis- 
trator will  deal  with  following  the  enact- 
ment of  thl-:  legislation,  following  the 
hearings,  and  following  the  c'^tablish- 
ment  of  the  rules  and  regulations.  This 
IS  a  very  standard  practice  by  Congress, 
to  deal  by  way  of  general  principles,  and 
then  to  anticipate  that  the  Administra- 
tor vvill  implement  them.  It  is  clear  that 
by  tills  legislation  we  mean  by  "new  sup- 
ply," the  results  of  increased  domestic 
exploration  and  production  of  crude  pe- 
troleum. 

I  do  not  think  it  is  an  unwarranted 
delegation  of  authority  to  ask  the  Ad- 
nunl'^trator  to  determine  how  that  line 
should  be  drawn  with  respect  to  existing 
wells,  new  wells,  and  so  forth. 

Mr.  JOHNSTON.  I  share  with  the  Sen- 
ator from  Minnesota  a  certain  mistrust 
of  some  of  the  policies  followed  relative 
to  energy.  I  would  like  to  constrict  and 
confine  the  di£cretion  of  the  Administra- 
tor to  the  greatest  extent  possible. 

I  appreciate  the  answers  of  the  Sen- 
ator from  Mirmesota  and  would  like  to 
follow  this  line  of  questioning  to  a 
greater  extent  later  on.  particularly 
when  ue  get  to  that  language. 

I  thank  the  Senator. 

Mr.  MONDALE.  I  thank  the  Senator 
from  Louisiana  (Mr.  Johnston >  very 
much. 

Mr.  LONG.  Mr.  President.  I  would 
point  out  that  under  the  laws  that  exist 
already,  the  price  of  oil  is  being  con- 
trolled. It  can  be  controlled  more  closely 
if  those  in  charge  of  the  cost  of  hving 
wish  to  control  It  more  closely. 

Today,  any  price  for  oU  is  permitted 
on  the  world  markets.  Some  foreign  oil 
is  being  purchased  at  $17  a  barrel  on 
the  spot  market  and  is  being  brought 
into  this  country.  We  hear  of  $7  a  barrel. 
$10.  $14  a  barrel,  which  is  par  for  the 


course  for  the  foreign  oil  that  is  being 
sold  nowadays  So  the  foreign  oM  is  com- 
manding a  price  twice  what  domestic  oQ 

IS  being  permitted  now. 

.^s  I  say,  in  the  law  now,  without  the 
Mondale  amendment,  there  L<:  the  power 
uo  co:;tro:  the  price  of  aomesiic  oil  if 
those  ui  charge  deem  it  desirable.  In 
exL-iing  iau  there  ls  the  power  to  control 
tJie  price  of  oil. 

The  Senator  from  Mirmes.ota  leaves  all 
scrt.5  of  things  out  of  h;s  calculation.s 
He  ta!k.^  about  the  profiU';  the  oil  com- 
panies are  making.  I  can  understand  thai 
anyone  making  75  percent  or  100  percert 
on  foreign  oil  is  making  b:g  profit^  be- 
cause that  Is  not  controlled  bv  American 
pnce  controls  anyway  If  ihev  can  get  as 
much  as  they  do  for  the  foreign  oil  that 
is  simply  beyond  our  control.  Eveirone 
agrees  it  is  beyond  the  power  of  this  Gov- 
ernment to  control  that  foreign  oil  and 
that  we  cannot  do  the  first  thing  about  it 
All  we  can  do  is  punish  the  guv  who  is 
trying  to  provide  u.-  with  our  needs  by 
tiTr-ing  to  develop  our  domestic  supplies 
That  is  not  what  we  should  be  doing. 

The  Senator  from  Minnesota  said  that 
great  profits  are  being  made,  but  he  did 
not  distinguish  between  the  oil  in  Saudia 
Arabia,  which  is  boycotting  us  and  re- 
fusing to  ship  us  any  oil— along  with 
Nigeria  and  aU  the  other  countries— 
w-here  his  amendment  would  not  apply 
at  all.  where  they  are  permitted  two  or 
thrw  times  the  price  the  American  oU 
producer  is  permitted  to  get 

Another  point  that  is  not  taken  into 
acTOunt  Is  the  distinction  between  money 
which  is  made  by  drilling  for  oil  and  that 
being  made  in  shipping  costs,  transport- 
ing it  around  the  worid.  money  being 
made  setting  it  at  the  pump,  or  money 
made  by  oil  companies  in  office  buildings 
in  real  estate  developments,  and  things 
of  that  sort.  Those  people  have  found  in 
many  instances  that  It  Is  is  more  profit- 
able to  put  their  money  into  real  estate 
than  into  oil. 

For  those  reasons.  I  do  not  believe  the 
amendment  of  the  Senator  from  Mlime- 
sota  should  be  agreed  to.  It  certainly 
should  be  given  more  studv.  in  view  of 
the  fact  that  the  law  permits  the  con- 
trol of  the  price  of  oil  now.  It  should  not 
be  added  to.  certainly  not  by  those  who 
have  had  no  chance  to  conduct  hearing 
to  obtain  specific  technical  InformaUori 
and  to  bring  the  Senate  facts  that  would 
support  our  respecUve  arg'uments  other 
than  what  we  pick  up  out  of  newspapers 
and  magtutines. 

Accordingly.  Mr.  P>resldent.  I  believe 
that  the  amendment  should  be  tabled, 
and  I  move  that  the  Mondale  amendment 
be  laid  on  the  table. 

Mr.  MONDALE.  Mr.  President,  the 
yeas  and  nays. 

The  yeas  and  nays  were  ordered. 

The  PRESIDING  OFFICER  iMr. 
TowiR  1  The  question  is  on  agreeing  to 
the  motion  to  table  the  Mondale  amend- 
ment. 

On  this  question  the  yeas  and  na.vs 
have  been  ordered  and  the  clerk  will  call 
the  roU. 

The  second  assistant  legislative  clerk 
called  the  roll. 


J-M74 


CONGRESSIONAL  RiCORU  — S£NATF 


Mr  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Idaho  (Mr. 
Chukch),  the  Senator  from  Mississippi 
(Mr  Eastland)  .  the  Senator  from  Alaska 
(Mr.  0«Av«L>,  and  the  Senator  from 
South  Carolina  (Mr.  Holungs'  are  nec- 
essarily absent. 

Mr  GRIFFIN  I  announce  that  the 
Senator  from  Utah  'Mr.  BirrN«TT>.  and 
the  Senator  from  Massachusetts  (Mr. 
BROoiut)  are  necessarily  absent. 

The  Senator  from  New  Hampslilre 
(Mr.  Cotton'  Is  absent  because  of  Ill- 
ness In  his  family. 

The  Senator  from  Maryland  (Mr. 
M.MHiAS).  and  the  Senator  from  Ohio 
(Mr.  Saxbe>   are  necessarily  alwent. 

The  result  was  announced — yeas  47. 
nays  44,  as  follows: 


[No    600  Leg  1 

TEAS— 47 

Al!»n 

Dcmlaick 

N\inn 

Baker 

■mn 

Randolph 

B«irtl<!tt 

Fannin 

Roth 

B«all 

Fon« 

Scott.  Hush 

B^llmon 

Fxilbrlght 

Scott, 

B^ntMn 

Oold  water 

WUllam  L. 

Brock 

Orupn 

Sparkman 

Buckler 

Ourh»y 

Stennls 

Biirllck 

Hansen 

Stevena 

Byrd. 

Helms 

Symington 

Harry  P.,  Jr.    Hniaka 

Taft 

Byra.  Robert  C   Johnston 

Talmadite 

ChUea 

L„n« 

Thurmond 

Ccxjk 

Mor-iellan 

Tower 

Curtt* 

McClure 

Tov.nif 

Dole 

MrOf^ 

Domenld 

Montoya 
NAYS— 44 

Abcurezk 

Htiidleston 

Nelson 

Aikea 

Hugliea 

Packwxxl 

Bayh 

Humphrey 

Paatora 

3  ble 

Inouye 

Pearson 

Blden 

Jarkaon 

PeU 

Caonoa 

JaWU 

Percy 

O&se 

Kennedy 

Proxmlre 

Clark 

Magnuaon 

R'.blcofl 

Cra:i3l-'n 

Mananeln 

Scbwe-.ker 

BagieWin 

McOoTem 

Stafford 

Hart 

Mlntvre 

SteTenaon 

Hartke 

Metcalf 

Tunney 

Haake'l 

M^ndale 

We'cker 

Hatfleld 

Moss 

Williams 

y.attiAViy 

Muakle 

NOT  VOTINO— e 

Bfnn^tt 

(3ottcn 

H  .ll!n?8 

Brooke 

Eastland 

Mathlas 

Ch-rch 

Oravel 

8aib« 

So  Mr.  Long's  motion   to   table   Mr. 
McvDALs's  amendment  was  agreed  to. 


MESSAGES  FROM  THE  PRESIDENT 
Messages  in  writing  from  the  Presi- 
dent of  the  United  States  were  com- 
municated to  the  Senate  by  Mr  MarJt.^, 
one  of  his  secretaries,  and  he  announced 
that  on  December  17.  1973.  the  Presi- 
dent had  approved  and  signed  the  en- 
rolled bill  (S.  1443.  to  amend  the  For- 
eign Assistance  Act  of  1961.  and  for 
other  purposes;  and  that  the  bill  (S 
2641-  to  confer  jurisdiction  upon  the 
district  court  of  the  United  SUtes  of 
certain  civil  actions  brought  by  the  Sen- 
ate Select  Committee  on  Presidential 
Campaign  Activities,  ar.d  for  other  pur- 
poses, became  law  without  the  signature 
by  the  President,  the  10th  day  of  con- 
sideration by  the  President  under  the 
Constitution  having  been  December  17 
1973. 


OUTDOOR  RECREATION— A  LEGACY 
FOR  AMERICA— MESSAGE  FROM 
THE  PRESIDENT 

The  VICE  PRESIDENT  laid  before  the 
Senate  the  following  message  from  the 
President  of  the  United  States,  with  an 
accompanying  outdoor  recreation  plan, 
which  was  referred  to  the  Committee 
on  Interior  and  Insular  Affairs.  The 
message  Is  as  follows : 

To  the  Congress  of  the  United  States: 

It  Is  with  pleasure  that  I  transmit  the 
Nationwide  Outdoor  Recreation  Plan. 
Outdoor  Recreation — A  Legacy  For 
America  This  Plan  has  been  developed 
In  response  to  Public  Law  88-29. 

The  Plan  Is  de.signed  to  jet  forth  a 
framework  for  giilding  the  programs  of 
the  Federal  Government.  State  and  local 
governments,  and  the  private  sector  In 
providing  outdoor  recreation  opportu- 
nities in  America. 

Richard  Nixon. 
Thi  Whttk  House,  December  19.  1973. 


ENROLLED  BILL  SIGNED 

The  enrolled  bUl  (  H.R.  10717)  to  repeal 
the  act  terminating  Federal  supervision 
over  the  property  and  members  of  the 
Menominee  Indian  Tribe  of  Wisconsin 
as  a  federally  recognized  sovereign  In- 
dian tribe;  and  to  restore  to  the  Menom- 
inee Tribe  of  Wisconsin  those  Federal 
services  furnished  to  American  Indians 
because  of  their  status  as  American  In- 
dians, and  for  other  purposes,  was  signed 
today  by  the  Vice  F»resldent. 


MESSAGE    FROM    THE    HOUSE— EN- 
ROLLED BILLS  SIGNED 

A  message  from  the  House  of  Repre- 
sentatives by  Mr.  Berry,  one  of  its  read- 
ing clerks,  announced  that  the  Speaker 
had  affixed  his  signature  to  the  following 
enrolled  bills : 

S  2413  An  act  to  authorize  the  disposal  of 
alumlaum  from  the  national  stockpile  and 
the  supplemental  stockpile,  and  for  other 
purposes: 

3.  2498.  An  act  to  authorlae  the  disposal  of 
zinc  from  the  national  stockpile  and  the 
supplemental  stockpile:  and 

S.  2551.  An  act  to  authorize  the  disposal  of 
molybdenum  from  the  national  stockpile  and 
from  the  supplemental  stockpile,  and  for 
other  purposes. 

The  enrolled  bills  were  subsequently 
signed  by  the  Vice  Pr  'sident. 


FEDERAL  ENERGY  EMERGENCY  AD- 
MINISTR.\TION  ACT 

The  Senate  continued  with  the  con- 
sideration of  the  bill  iS.  2776  >  to  provide 
for  the  effective  and  eCBcient  manage- 
ment of  the  Nation's  energy  policies  and 
programs 

The  PRESIDING  OFFICER  i  Mr 
Cttktis*.  The  bill  Is  open  to  further 
amendment 

Mr  BUCKLEY  Mr  President.  I  caU 
up  my  amendment. 

The  PRESIDING  OFFICER.  The  Sen- 
ator will  suspend  May  we  have  order  In 
the  Senate''  Senilors  ^Ul  please  take 
their  seats  or  retire  from  Uje  Chamber. 

The  Senator  may  procee^^ 


December  I'j,  1973 

Mr.  BUCKLEY.  Mr.  President.  I  call 
up  my  amendment  No.  912  and  ask  that 
It  be  stated. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  .second  assistant  legislative  clerk 
read  as  follows : 

At  the  end  of  the  bill  insert  the  following; 
TITLB    hi— AMKNDMBNT8    TO    NATtmAL 
OAS  ACT 
Bmc.  301.   This   title   may   be   cited   as   the 
"Natural  Oas  Act  Amendments  of  1973". 

Sec.  302  Section  1(b)  of  the  Natural  Oas 
Act  U  amended  by  inserting  before  the  pe- 
riod »t  the  end  thereof  the  foUowlng:  "or 
to  the  sale  of  natural  gas  delivered  for  the 
first  time  In  interstate  commerce  or  sold  In 
interstate  commerce  upon  the  expiration  of 
an  existing  contract  on  or  after  the  effective 
date  of  the  Natural  Oas  Act  Amendments  of 
1973,  or  produced  from  wells  commenced  on 
or  after  such  date". 

a»c  303.  Section  2  of  the  Natural  Oas  Act 
Is  amended  by  adding  at  the  end  thereof  the 
following: 

"(10)  aflUlate*  or  another  person  means 
any  person  directly  or  Indirectly  controUlng. 
controlled  by.  or  under  common  control  with 
such  other  person.". 

SBC  304  Section  6  of  the  Natural  Oas  Act 
is  amended  by  Inserting  at  the  end  thereof 
the  following : 

"(c)  In  any  case  where  a  natural  gas  com- 
pany purchases  natural  gas  from  an  affiliate 
fhe  Commission  may  disallow  any  portion  of 
a  rate  or  charge" by  such  company  which  Is 
based  on  the  amoui.t  paid  for  such  purchase 
m  excess  of  current  prices  paid  for  com- 
parable gas  to  nonafflUates. 

"(d)  The  Commission  shall  not  authorize 
any  Uicreased  rate  or  charge  for  natural  gas 
on  the  basU  of  the  renegotiation  of  any  con- 
tract for  the  sale  of  natural  gas,  being  car- 
ried out  before  the  effective  date  of  the  Nat- 
ural Oas  Amendments  of  1973,  prior  to  the 
date  on  which  performance  Is  completed  un- 
der such  contract  in  accordance  with  Its 
terms:  provided  that  the  Commission  may 
approve  such  renegotUtlon  where  adjust- 
ment In  contract  terms  Is  required  to  assure 
optimum  production  from  producing  reser- 
voirs". 

The  PRESIDING  OFFICER.  WIU  the 
Senator  from  New  York  inform  us 
whether  or  not  this  is  the  amendment 
on  which  there  Ls  to  be  a  time  limitation 
of  2  hours  on  debate'' 

Mr.  BUCKLEY,  It  Is. 

Mr.  President.  I  ask  unanimous  con- 
sent that  the  names  of  the  following  Sen- 
ators be  added  as  casponsors  of  the 
amendment:  Senator  Dominick.  Senator 
Thurmond,  and  S  nator  Bentsen 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  BUCKLEY.  Mr  President,  the 
purpose  of  the  amendment  is  simple.  It 
is  to  remove  FPC  controls  over  new  nat- 
ural gas.  by  which  I  mean  gas  not  cur- 
rently flowing  Into  Interstate  pipelines 
under  contract  The  amendment  has  pro- 
visions, which  I  shall  explain  In  due 
course,  to  protect  the  consumer 

Mr.  President,  I  point  out  that  the  bill 
to  which  I  am  offering  the  amendment 
is  described  as  emergency  legislation  of 
short  duration.  It  establishes  the  admin- 
istrative machinery  to  attempt  to  cope 
with  the  energy  crisis  We  deceive  our- 
selves If  we  feel  we  can  achieve  this  ob- 
jective without  at  the  same  time  adopt- 
ing measures  that  will  certainly  result 
In  Increasing  domestic  prices  of  enegry, 
thereby   offering   the   American   people 


December  19,  1973 


CONGRiiSSIO^' AL  RECORD  —  SENATE 


42475 


some  hope  of  working  them-selvef!  out  of 
the  current  shortages. 

The  evidence  pre.sented  in  many 
m()nlh.s  of  testimony  befcre  tJie  Com- 
niUlee  oi:  Interior  and  Insular  Affairs, 
and  other  romrnittees  in  Conpres.s.  leads 
overwht'lmingiy  to  the  conriu.'-ion  that 
the  mcxst  effertive  single  stfp  Congress 
can  take  at  thi.s  time  to  build  up  sup- 
plies is  by  dereguhitmg  the  supply  of 
new  natural  ga.s  in  the  interstate  mar- 
ket; that  is.  to  remove  FPC  juri.sdirtlon 
over  new  ga.'^  The  lmpa<  t  on  supply 
would  be  substantial 

One-third  of  our  total  energy  con- 
sumption is  natural  HAf-.  anci  yet  a  major 
prnportit^n  of  M  of  the  niitural  Ka.s  found 
in  contmentHl  United  States  in  rerent 
years,  haj^  been  sold  within  the  State 
in  which  it  was  produced  The  reason 
for  this  is  .simple  The  F.'deraJ  Power 
Commission  has  required  that  gas  sold 
to  Interstate  pipelines  be  priced  at  arti- 
ficially low  price.s.  On  the  other  hand, 
because  tJie  price  of  natural  gas  is  not 
controlled  on  sales  within  the  state  In 
which  it  is  produced,  there  ha.'^  been  ac- 
tive exploration  where  adequate  intra- 
state markets  exist.  Thus  intrastate  cus- 
tomers in  State.s  like  Loui.^iana  and  Okla- 
homa have  natural  ga^  in  abundance 
wnlle  Interstate  cu.stomers  are  plagued 
with  growing  shortages  a.-^  old  re.servoirs 
are  depleted. 

Deregulation  of  natural  gas  would  Im- 
mediately enable  a  consumer  in  New 
York,  California,  Illinois,  or  Ma.ssachu- 
setts  to  compete  with  a  consumer  In 
Texas,  Louisiana,  and  Oklahoma  for 
imcommitted  supplies:  .something  which 
FPC  regulations  now  make  impossible. 
Thus,  gas  currently  finding  it5  way  into 
Intrastate  sales  could  be  diverted  to  the 
Interstate  m.arket 

Of  equal  Importance,  the  restoration 
of  price  Incentives  would  result  In  a 
significant  Increase  in  exploratory  drill- 
ing and  In  a  significant  exparuslon  of 
proven  gas  reserves.  Ttii<;  conclusion  Is 
fully  supported  by  testimony  presented 
last  week  before  the  Interior  Commit- 
tee by  Prof.  Paul  MacAvoy  of  MIT. 

Finally,  allowing  the  price  of  natural 
gas  to  reach  Its  proper  level  will  assure 
a  better  allocation  of  our  energy  re- 
sources. Utilities  which  have  been  en- 
couraged to  use  natural  gas  rather  than 
coal  because  of  the  artificially  low  price 
on  natural  gas  would  return  to  using 
coal  to  fire  their  boilers,  thus  freeing 
additional  natural  gas  supplies  for  In- 
dividual consumers. 

My  amendment  Is  designed  to  Increase 
deliveries  of  natural  gas  to  interstate 
pipelines  In  the  most  effective  way  pos- 
sible. It  will  do  this  by  restoring  normal 
marketplace  Incentives  for  the  discov- 
ery and  development  of  new  reserves  by 
removing  the  Federal  Power  Commis- 
sion's existing  authority  to  regiUate  the 
wellhead  or  field  price  of  new  gas. 

It  wlU  not  permit  "windfall"  proflts  It 
specifically  prohibits  the  renegotiation  of 
existing  contracts  for  flowing  gas. 

My  amend.Tient  protect.^:  the  consumer 
against  artificially  high  prices  that  could 
result  from  non-arm's-length  sales  be- 
tween a  pipeline  and  an  aflBliated  pro- 
ducer. It  does  80  by  speclficaUy  author- 


izing the  F"PC  tci  >f**i6«  to  allow  a  pipe- 
line to  pa.ss  through  to  consumers  any 
IKjrtion  of  a  price  paid  for  natural  gas 
Ui  an  afBliated  producer  that  cannot  be 
justified  as  reflecting  the  competitive 
market  price  for  that  gas. 

It  should  be  noted  that  the  domestic 
pas  producing  industry  is.  in  fact,  com- 
petiMvp.  The  Interstate  sales  of  more 
than  3.750  producers  are  currently  regu- 
lated by  the  FPC.  Of  these,  only  47  rep- 
resent producers  with  direct  pipeline  and 
distnbutor  affiliates.  At  the  present  time 
there  are  thousand.*;  of  mdcpendent 
producers  .selling  ga.s  at  unregulated 
prices  to  Intrastate  cu.stomers  In  such 
States  as  Oklahom.a,  Louisiana,  and 
Texas.  A  free  and  competitive  market  in 
natural  pa<;  in  fact  exists. 

The  elimination  ojt  price  regulation  on 
iiew  gas  will  not  result  in  a  sharp  in- 
crease in  cost  to  the  ultimate  consumer. 
According  to  a  study  cited  in  a  recent 
Interior  Committee  staff  memoran- 
dum— 

Even  If  wellhead  prices  reached  slxty-flve 
cents  per  Mcf  for  new  gas  [approximately 
three  times  current  regulate  prices),  the 
aveioge  field  price  would  increase  only  grad- 
ually (to  51.45  ceiits  per  Mcf  by  1&80)  Under 
this  assumption.  conBumer  prices  would  rLse 
6.4  percent  the  first  year,  3  8  percent  the 
second  year.  3.0  percent,  2  8  percent  and  3.7 
percent  In  succeeding  years.  At  the  65f  field 
market  price,  the  Initial  effect  would  be  an 
Increase  in  the  yearly  gas  bill  of  $8.30;  the 
total  projected  Increase  by  1980  would  be 
$30.06. 

The  alternative  to  a  rapid  development 
of  new  domestic  reserves  of  natural  gas 
are  far  more  costly  to  the  constimer.  To 
quote  again  from  the  staff  memcran- 
dimi — 

Supplemental  gas  sources  are  already  two 
to  three  times  as  high  as  conventional  nat- 
ural gaa  at  the  city  gate.  Synthetic  natural 
gas  (SNO),  made  from  coal  or  made  from 
imported  liquid  hydrocarbons,  and  Imported 
liquefied  natural  gas  (LNQ)  are  priced  gen- 
erally at  H.OO  to  $1.80  and  up,  per  Mcf. 

To  this  must  be  added  the  cost  of  dis- 
tributing that  ga.s.  a  cost  that  currently 
accounts  for  well  over  half  the  price  to 
the  consumer. 

The  evidence  to  support  the  need  for 
this  amendment  Ls  becoming  Increas- 
ingly visible  as  the  shortfall  in  our  en- 
ergy supply  becomes  more  conspicuous. 
In  their  introduction  to  a  recent  Har- 
vard Law  Review  article  of  April  1973 
entitled  "The  Natural  Gas  Shortage  and 
the  Regulation  of  Natural  G.is  Pro- 
ducers," Stephen  Breyer  and  Paul  W. 
MacAvoy.  econmlsts  at  the  Brookings 
Institution,  .-^tated: 

Natnrn!  ga.s  now  supplies  more  than  a  third 
of  America's  energy  need.-?  and  exists  in  the 
ground  m  su:fflctent  quantities  to  forestall 
any  danger  in  the  foreseeable  future  of  its 
extinction  as  a  natural  resource.  Neverthe- 
less, there  Is  now.  In  the  early  I970's,  no  lack 
of  evidence  that  the  United  States  Is  In  the 
throes  of  a  serious  natural  gas  shortage.  This 
article  w^U  show  that  shortage  is  a  direct 
result  of  FPC  regulation  of  producers'  prices 
and  that  the  shortage  has  been  dispropor- 
tionately borne  by  home  con.su mers.  More- 
over, the  article  will  show  that  the  loves 
arising  from  the  shortage  have  been  so  great 
that  they  cannot  rationally  be  wcM^h  the 
pursuit  of  Whatever  valid  purpoaes  might 
be  served  by  lower  user  prices. 


M.V  amendment  provides  for  adequate 
safeguards  against  price  increase*  that 
do  not  reflect  ordinary  supply  and  de- 
mand conditions  m  the  m.arket  while 
providing  the  Incentive  to  mcrease  the 
supply  to  interstate  consimiers  and  a  dis- 
incentive to  mefflcient  use  by  many  com- 
mercial. Industrial,  and  utility  users  who 
should  be  using  other  forms  of  fuel 

I  firmly  believe  that  adoption  of  thi.'- 
amendment  will  do  more  to  help  a'^  work 
our  way  out  of  our  current  energv  .short- 
age than  any  legislation  thus  fai  adopted 
by  this  Congress 

I  would  like  to  quote  from  a  letter 
dated  December  14.  197.3.  signed  by  the 
Chairman  of  the  Federal  Power  Commis- 
sion. Mr.  John  .\ass;ka.=;.  Among  other 
things.  Mr  Nassikas  says: 

U  i~  the  Cornmlssi&n  s  view  (Commissioner 
Smith  not  parxicipating)  that  the  Buckley 
amendment  detin;tion  of  "new"  gas  Is  en- 
tirely proper,  and  !hat  It  Is  consistent  with 
the  demarcation  between  "new"  and  "old" 
gas  now  utilized  by  the  Commission  in  Its 
regulation  of  producer  rates  Under  Comjxus- 
sion  opinions  and  orders  now  in  force  w* 
recognize  as  "new"  gas  for  rate  purposes 
that  gas  which  Is  (a|  sold  for  the  first  time 
to  interstate  pipelines,  (b)  sold  under  a  new 
contract  which  is  negotiated  alter  the  termi- 
nation of  the  original  contract,  and  (c)  pro- 
duced from  weUs  commenced  after  the  date 
of  inception  of  the  applicaole  ratemaklng 
proceeding  The  Buckley  amendment  ioV.ov% 
the  same  definitional  pattern:  It  Is  clear. 
therefore,  that  the  amendment  would  not 
Interfere  with,  nor  substantially  chanre  pro- 
ducer rate  regulation  of  "old"  gas  as  presenUy 
administered  by  the  Commission. 

The  letter  concludes  with  the  follow- 
ing paragraph: 

The  Buckley  amendment  will  enable  mar- 
ket forces  u.  more  effectively  aUocate  our 
nattiral  rescDrces  and  should  encourage  the 
development  of  additional  domestic  gas  sup- 
plies conatetent  with  the  ob)ecUve  of  opU- 
mum  self-sufficient  to  alleviate  a  deepening 
national  energy  emergency. 

Mr.  President,  contrary  to  what  the 
Senator  from  Washington  (Mr.  Jackson) 
suggested  in  a  colloquy  a  few  weeks  ago, 
my  amendment  wiU  not  open  the  door  to 
windfaU  profits.  It  will  effectively  and 
specifically  prohibit  the  renegotiation  ot 
existing  contrsuits. 

Again  I  would  like  to  quote  from  Chair- 
man Nassikas'  letter: 

The  Buckley  amendment  will  not  trigger 
any  price  escalation  of  "old"  or  "flowing"  gas 
through  operation  of  such  a  "deregulation" 
clause,  nor  will  the  Buckley  amendment  per- 
mit the  use  of  such  a  clause  to  deregulate 
•old"  or  "flowing"  gai  The  deregulaUon 
clause" — despite  its  inclusion  in  many  con- 
tracts—la prohibited  under  Sec.  154.93 "of  the 
Commission's  RegulaUons  because  It  Is  an 
Indefinite  pricing  provision.  As  such  these 
Clauses  are  In  no  way  binding  npon  the  Com- 
mission, nor  may  they  be  used  to  circumvent 
Commlsslcm  regtUatlon  of  gas  sold  undw 
contracts  containing  such  clauses.  The  Oom- 
mlssion's  power  to  prohibit  the  use  of  in- 
definite pricing  clauses,  and  indeed  the  ex- 
press language  of  Sec.  154.93.  were  expr«sslT 
upheld  by  the  Supreme  Court  in  FJ>C  v 
Teiooo.  377  U-S.  33  (1»«4) . 

The  Chairman  goes  on  to  cite  court 
cases  confirming  the  fact  that  these  at- 
tempts to  move  outside  the  PPC's  Jurls- 
dicUoii  have  no  validity. 

My  amendment  protects  the  consumer 
acainst   artificially   high   prices-^harp 


42476 


CONGRESSIONAL  RECORD  — SENATE 


December  19,   iu73 


Increase  In  cost  to  the  ultimate  con- 
sumer. 

The  reason  for  this.  Mr.  President.  Is 
twofold : 

First  of  aHjD.  the  case  of  New  York 
State,  for  example.  85  percent  of  the 
cost  to  the  household  for  natural  gas  Is 
represented  by  pipeline  transportation 
and  distribution  costs.  In  other  words,  no 
part  of  the  price  paid  to  the  producer  of 
natural  ^as  is  reflected  In  83  percent  of 
present  cost. 

Second,  because  only  new  gas  would 
be  deregrulated.  there  is  a  fold-in  of  the 
price  of  the  new  gas  into  the  price  struc- 
ture of  the  great  preponderance  of  the 
gas  that  is  already  committed  under  con- 
tract. 

It  has  been  estimated  that  If  new  gas 
were  sold  at  65  cents  per  thousand  cubic 
feet,  or  about  three  tmies  what  the  FPC 
currently  permits,  the  iniUal  effect  for 
the  consumer  of  this  country  would  be 
an  increase  in  the  yearly  gas  bill  of  S8.30 
and  that  the  total  projected  increase  by 
1980  would  be  $30  86. 

It  is  apparent  that  even  If  the  initial 
price  were  sold  at  significantly  higher 
than  the  65  cents  at  the  wellhead,  there 
would  not  be  an  incresise  to  the  average 
householder  that  would  be  unacceptable, 
especially  if  the  alternative  Is  not  to 
have  any  gas. 

I  would  also  like  to  polnVj)ut  to  this 
Chamber  the  fact  tliat  we  are  beginning 
to  run  out  of  gas.  In  fact,  we  have  short- 
falls that  have  risen  In  Just  1  years 
time — curtailments  of  committed  deliv- 
er>-— that  have  risen  from  821  million 
cubic  feet  for  the  year  ending  March 
1973  to  an  FPC  estimate  of  1.250  billion 
cubic  feet  for  the  year  ending  this  com- 
ing March — in  other  words,  a  50-percent 
increase  in  curtailments  in  the  course  of 
just  1  year — and  that  curve  can  onlv  go 
up  unless  either  we  And  more  domestic 
gas  under  the  stimulus  of  the  price  mech- 
anism or  we  fill  that  cap  by  Importing 
gas  in  the  form  of  LNO — liquid  natural 
gas — or  manufactured  synthetic  gas. 

The  city  of  Boston,  in  order  to  meet 
the  shortfall  of  committed  delivery  of 
gas.  paid  $1.58  per  1.000  clublc  feet  of 
LNO  imported  versus  69  cents  it  Is  cur- 
rentl>-  paying  at  the  city  gates  for  gas 
produced  In  the  United  States 

For  all  these  reasons,  and  others  that 
are  contained  in  my  full  statement— 
which  I  ask  unanimous  consent  to  have 

printed  in  the  Record 

The  PRESIDING  OFFICER.  With- 
out objection,  it  is  so  ordered. 

Mr.  BUCKLEY.  For  all  these  reasons 
I  urge  my  colleagues  to  adopt  my  amend- 
ment The  hours  and  hours  of  testimony 
submitted  before  the  Interior  and  Insular 
Affairs  and  other  committees  of  this  Con- 
gress leave  no  doubt  that  there  is  no 
single  action  that  can  be  taken  by  the 
Congress  in  this  session  that  will  do  more 
to  bring  \is  out  of  the  present  energy 
crisis  and  bring  us  toward  that  day  when 
we  are  no  longer  dependent  cm  foreign 
powers  for  our  source  of  energy. 

Mr  BURDICK.  Mr  President.  wiU  the 
Senator  vield? 

Mr.  BUCKLEY.  I  yield 
Mr.  BURDICK.  Will  the  Senator  out- 
line to  me  the  mechanics  or  the  machin- 
ery embraced  in  his  proposition  to  sepa- 


rate the  new  gas  and  the  old  gas?  Who 
makes  the  determination? 

Mr.  BUCKLEY  The  FPC.  In  the  last 
analysis,  claims  Jurisdiction  of  gas  if 
conceived  of  as  "old"  gas:  and  as  I  in- 
dicated In  the  letter  I  quoted  from  Chair- 
man Nassikas.  It  is  the  position  of  the 
FPC  that  my  definition  and  their  defini- 
tion of  what  constitutes  "new"  and  "old" 
gas  concur,  so  we  would  have  a  continua- 
tion of  the  policy  and  JurtsdlcUon  of 
FPC  over  old  gas  as  the  FPC  defines  it 
Mr  BURDICK.  If  there  is  a  question 
whether  it  Is  old  gas  or  new  gas.  the 
tribunal  to  make  the  decision  would  be 
the  FPC? 

Mr.  BUCKL.Ery.  I  would  accept  that  as 
an  appropriate  Interpretation. 

Mr.  BURDICK.  It  has  been  said 
by  some  that  this  would  permit  a  com- 
pany, perhaps,  to  renegotiate  old  con- 
tracts and  bring  the  old  contracts  within 
the  realm  of  the  new  gas  concept 

Mr.  BUCKLEY  Mr.  President,  my 
amendment  specifically  prohibits  a  rene- 
gotiation of  old  contracts  except  under 
one  set  of  clrcimistances.  and  that  is 
when,  with  the  full  approval  of  the  FPC. 
It  becomes  necessary  to  make  adjust- 
ments In  the  contract  in  order  to  enable 
an  existing  reservoir  to  produce  at  opti- 
mum efficiency. 

As  the  Senator  is  aware,  as  one  starts 
depleting  a  reservoir,  problems  develop. 
They  need  a  repressurlzatlon  or  perhaps 
they  need  sand  fracing  and  other  tech- 
niques which  require  new  capital  invest- 
ment, which  will  unleash  a  new  price  on 
gas  that  would  not  be  produced  under  or- 
dinary conditions.  Quite  obviously,  un- 
less that  cost  can  be  recovered,  that  In- 
vestment will  not  be  made. 

So  except  for  that  very  exception, 
which,  can  only  be  invoked  with  the  full 
approval  of  the  consentin?  FPC.  my 
amendment  does  not  permit  renegotia- 
tion. 

This  was  confirmed  by  Mr.  Nassikas  In 
the  letter  from  which  I  have  already 
quoted.  He  makes  it  clear  that  despite 
the  fact  that  existing  contracts  attempt 
to  anticipate  the  probable  deregulation 
of  gas  and  thereby  provide  a  basis  for 
an  immediate  Jump  to  some  new 
schedule,  the  chairman  points  out  that 
it  would  not  be  applicable  in  the  case  of 
my  amendment  because  old  gas  is  not  de- 
regulated: and  the  attempt  to  do  so  Is 
specifically  unlawful  under  existing  FPC 
regulations,  regulations  which  have  been 
found  in  the  courts  to  be  fully  valid 

Mr.  BURDICK.  Except  for  the  excep- 
tion referred  to,  the  old  contracts  cannot 
be  renegotiated. 

Mr  BUCKLEY.  Exactly. 

Mr  BURDICK.  And  the  FPC  retains 
Jurisdiction  not  only  over  those  areas, 
but  also  over  new  gas. 

Mr.  BUCKLEY.  The  Senator  Is  correct 

Mr.  BENTSEN.  Mr.  President.  I  ask 
the  Senator  from  New  York  If  he  would 
be  agreeable  to  listing  my  name  as  a  co- 
sponsor  of  the  amendment? 

Mr.  BUCKLEY.  Mr.  President.  I  ask 
unanimous  consent  that  the  name  of  the 
Senator  from  Texas  (Mr.  Bewtsim)  be 
listed  as  a  cosponsor. 

The  PRESIDINO  OFFICER  (Mr.  CUH- 
Tis).  Without  objection,  it  is  so  ordered 

Mr.  BENTSEN.  Mr.  President.  I  wish 


to  say  a  :ew  words  In  behalf  of  tiie 
amendment  offered  by  the  Senator  from 
New  York  to  provide  for  a  phiused  d* 
regulation  of  the  price  which  Interstate 
pipelines  are  allowed  to  pay  dome.^tic 
producers  of  natural  gas. 

I  am  In  favor  of  rftiov.nK  Fedfriii 
regulaUon  from  natural  ga.-*  piihIu.c.t 
for  the  same  reasons  that  the  vVa-siiKiK- 
ton  Post  and  Dr  Paul  Ma*  Avuy  of  the 
Maasachusett*  Institute  of  Technology 
have  advocated  such  a  policy— because  It 
would  reduce  the  wastt'fui  use  of  natural 
gas  and  increase  Its  supply. 

Mr  MacAvoy  of  MIT  has  conducted 
an  extensive  study  of  the  natural  gas  In- 
dustr>'  and  has  concluded  that  the  pres- 
ent regulation  of  producer  prices  has  re- 
sulted in  shortages  and  that  consumers 
would  be  far  better  off  If  the  marketplace 
were  allowed  to  price  natural  gas. 

Of  these  particular  resources  and  fuels, 
natural  gas  is  the  only  one  that  Is  reg- 
ulated. We  do  not  see  the  same  type  of 
regulation  of  oil  or  coal. 

As  the  Washington  Post  stated  In  an 
editorial  a  year  ago: 

0*B  U  In  thoct  lupply  b«caua«  we  hold  the 
price  fcrtlflclally  below  the  prloee  of  compet- 
ing fuels. 

The  Post  went  on  to  say: 

It  Ulustnktee  the  crucial  Unportance  of 
pricing  to  the  future  national  energy  pol- 
icy. DeregulaUon  Is  part  of  any  reaaonable 
attempt  to  match  aupply  with  a  soaring  de- 
mand 

It  really  does  not  make  any  sense  to 
say  that  we  will  pay  a  price  of  $1.26  Mcf 
for  Nigerian  gas  that  Is  landed  on  our 
shores  and  say  to  our  own  domestic  pro- 
ducers that  we  will  pay  them  something 
on  the  order  of  25  cents  Mcf  but  that  we 
will  pay  4  or  5  times  as  much  to  a  foreign 
producer.  It  would  make  Just  as  much 
sense  to  say  that  In  this  country  we  would 
limit  our  own  manufacturers  of  shoes 
to  $10  a  pair,  while  pajlng  $40  a  pair  for 
shoes  from  Spain.  Surely  there  Is  no 
equity  in  that:  and  obviously,  in  this  in- 
stance. It  would  be  a  great  waste  of  this 
particular  fuel. 

Congre.ss  has  acted  upon  a  number  of 
energy-related  measures  In  the  last  sev- 
eral months,  but  none  of  these  measures 
is  directed  at  Increasing  the  supply  of 
fuels  within  the  next  several  years. 

I  was  pleased  to  be  a  cosponsor  of  Sen- 
ator Jackson  s  bill  to  Increase  the  fund- 
ing of  energy  research  for  gasification  of 
coal,  fo-  oia.-  energj',  and  for  geothermal 
plants,  vevcr.  we  also  need  to  act  on 
solution  v.  .lioh  will  produce  results  with- 
in the  Tifxt  3  to  5  years.  I  believe  that 
removing  the  artificially  low  price  ceil- 
ings which  interstate  pipelines  are  allow- 
ed to  pay  domestic  natural  gas  producers 
will  have  a  favorable  Impact  within  that 
3-  to  5-year  period  and  beyond.  I  believe 
we  would  be  able  to  get  new  areas  drilled 
and  keep  marginal  wells  producing. 

The  Federal  Power  Commission  has 
experimented  with  the  deregulation  of 
small  producers,  and  the  results  were 
most  favorable. 

In  the  Texas  Panhandle,  the  number 
of  wells  drilled  has  been  declining  from 
a  peak  of  over  1,400  in  1957  to  only  202 
in  1971.  The  year  after  the  small-pro- 
ducer exemption  was  approved  by  the 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42477 


Federal  Power  Conmu.sMun.  there  was 
a  50  percent  Increa.se  in  the  wells  drilled 
in  that  area.  The  iiuinber  of  natural  gas 
wells  completed  ,Uim!)ed  from  68  i.".  1971 
to  114  In  1972.  I  believe  this  was  a  fnirly 
good  test  of  what  deregulation  cooild 
mean. 

The  Texas  Panhandle  is  a  major  gas- 
producing  area  and  is  explored  princi- 
pally by  independents  who  could  take 
advantage  of  the  small  producers  exemp- 
tion. Now.  as  a  result  of  the  court  de- 
cision holding  that  the  Federal  Power 
Commission  exceeded  its  authority  in 
granting  the  small  producer  exemption, 
most  of  tlie  plane  for  new  deep  wells  and 
some  of  the  medium-depth  weLs  have 
had  to  be  cancelled  due  to  the  unavail- 
ability of  outside  djlUlng  funds.  Most 
Independent  produc^  not  onlv  expend 
their  own  funds  on  exploration,  but  they 
also  mu.«t  use  a  great  deal  of  outside 
capital.  Higher  natural  gas  prices  In- 
crease the  availability  of  these  outside 
funds  for  exploration.  The  court  decision 
required  a  return  to  the  lower  regulated 
prices,  and  many  potential  Investors 
found  other  places  to  put  their  money. 

Mr.  President,  this  amendment  is  simi- 
lar to  a  bill  I  Introduced  earlier  this  year. 
The  amendment  would  remove  Federal 
Power  Commission  price  jurisdiction  over 
sales  of  new  gas — natural  gas  not  already 
committed  under  contract.  This  would 
mean  that  gas  presently  flowing  under 
contract  would  be  deregulated  only  at 
the  end  of  its  contract  term.  Since  almost 
all  flowing  gas  Is  under  contract,  the 
price  Impact  to  gas  consumers  would  be 
very  graidual.  The  Commerce  Commit- 
tee has  been  provided  with  a  study  con- 
ducted by  Foster  Associates  which  Indi- 
cates that.  If  the  current  prices  allowed 
by  the  Federal  Power  Commission 
tripled,  the  year-to-year  increase  for  the 
average  homeowner  would  be  less  than 
$9  a  year.  If  those  estimates  are  even 
close  to  correct,  phased  deregulation  is  a 
real  bargain  compared  to  the  Increases 
we  have  .":een  in  the  price  of  energy  from 
foreign  sources. 

Mr.  President,  at  a  time  when  the  un- 
reliability of  foreign  energy  sources  has 
been  clearly  demonstrated,  it  makes  no 
sense  to  cling  to  a  regulatory  system  that 
allows  natural  gas  from  Algeria  to  be 
priced  at  six  times  what  we  allow  domes- 
tic producers. 

If  we  ever  hope  to  8«:hleve  self-sufB- 
ciency,  we  must  adopt  policies  that  con- 
form with  today's  needs.  The  present 
regulatory  system  is  not  only  unfair  to 
domestic  producers,  it  is  contrary  to  our 
national  interest. 

,  I  urge  the  adoption  of  the  pending 
amendment. 

The  PRESIDING  OFFICER.  The  time 
of  the  Senator  from  Texas  has  expired. 

Mr.  BUCKLfiY.  Does  the  Senator 
from  Texas  desire  additional  time? 

Mr.  BENTSEN.  No:  I  thank  the  Sen- 
ator from  New  York  very  much.  I  con- 
gratulate him  upon  the  job  he  Is  doing. 
I  think  he  imderstands  the  need  for 
fimdlng  at  the  marketplace. 

Mr.  BUCKLEY.  I  assure  the  distin- 
guished Senator  from  Texas  that  I  have 
nimierous  constituents  who  are  In  urgent 
need  of  gas.  One  hundred  and  fifty  com- 
panies In  my  State  have  foimd  It  neces- 


sary to  cut  back  the  production  of  their 
products.  People  are  out  of  work. 

Mr.  President.  I  reserve  the  remainder 
of  my  time.  For  the  information  of  the 
Senate,  it  is  my  present  intention  to 
yield  back  the  remainder  of  my  time 
i  know  that  many  Senators  are  anxious 
to  move  to  a  vote. 

Mr.  RIBICOFF.  Mr.  President,  I  have 
received  letters  from  the  chairman  of 
the  Committee  on  Commerce  and  the 
chairman  of  the  Committee  on  Insular 
Affairs,  who  claim  that  this  Is  an  at- 
tempt to  short  circuit  the  orderly  leg- 
islative proces.s.  With  permission  of  the 
Senate,  I  win  re.-d  the  letters  Into  the 
Record.  The  first  Ls  from  the  Senator 
from    Washington    'Mr.    Jackson): 

I  understand  that  an  amendment  wUl  be 
propoeed  to  8.  2776.  the  Federal  Energy 
Emergency  Administration  Act,  which  would 
modify  the  existing  Federal  policies  regard- 
ing the  regulation  of  prices  of  natural  gas. 

TbiB  ts  to  advise  you  that  the  Senate 
Committee  on  Interior  and  Insular  Aflairs 
is  concluding  its  study  of  natviral  gas  pric- 
ing policy  and  will  be  meeting  to  vote  upon 
Its  recommendations  on  December  19th.  I 
strongly  opp&se  any  action  by  the  Senate 
on  this  matter  prior  to  the  completion  of 
the  Interior  Committee's  discussions  and  the 
recommendations  of  the  Senate  Commerce 
Committee  on  legislation  which  Is  presently 
pending  before  the  latter  Committee. 

Mr.  BUCKLEY.  Mr.  President,  will  the 
Senator  yield? 

Mr.  RIBICOFF.  I  am  glad  to  yield. 

Mr.  BUCKLEY.  I  happen  to  be  a  mem- 
ber of  the  Committee  on  Interior  and 
Insular  Affairs,  and  this  happens  to  be 
E>ecember  19.  The  Interior  Committee 
has  not  met  on  this  matter. 

Mr.  RIBICOFF.  I  can  understand  that, 
with  the  Sen:.tor  from  New  York  on  the 
floor  and  the  Senator  from  Washington 
I  Mr.  Jackson*  in  conference.  But  I  as- 
siune  it  Is  the  Intention  of  Senator  Jack- 
son to  convene  the  committee  as  soon  as 
he  can,  to  go  into  this  matter. 

Mr.  BUCKLEY.  Early  in  the  next 
year. 

Mr.  RIBICOFF.  The  other  letter  Is 
from  the  chairman  of  the  Committee  on 
Commerce,  the  Senator  from  Washington 
(Mr.  Macnuson)  .  It  reads: 

Once  again  the  Senate  confronts  an  Ill- 
advised  and  tm Justified  effort  to  short  circuit 
the  orderly  legislative  process.  I  am  referring 
to  Senator  Buckley's  amendment  to  graft  on 
to  the  Knergy  Organization  bill  natural  gas 
deregulation  amendment. 

As  you  already  know  the  Commerce  Com- 
mittee has  already  completed  seven  days  of 
hearings  on  the  complex  and  enormously  sig- 
nificant Issues  Involved  In  the  reform  of  our 
natural  gas  regulation  system. 

I  skip  a  few  paragraphs,  and  continue: 
It  Is  our  Intention  to  proceed  to  execu- 
tive consideration  of  gas  regulation  as  first 
priority  of  the  Commerce  Committee  In  the 
new  session.  My  expectation  Is  that  legisla- 
tion will  be  reported  to  the  floor  early  In  the 
session. 

I  am  assuming  he  means  the  next  ses- 
sion. 

I  am  confident  that  through  the  careful 
refining  process  of  Committee  deliberation 
we  win  be  able  to  report  to  the  Senate  leg- 
lalatlon  which  will  provide  ample  stimula- 
tion for  the  exploration  and  development  of 
untapped  natural  gas  reserves,  without  Im- 
posing reckless  and  unconscionable  economic 
burdens  upon  the  American  people. 


It  has  become  \ ery  appaient  to  n.e.  Mr. 
President,  tliat  on  this  very  complex  mat- 
ter it  behooves  ui  to  have  the  benefit  of 
the  decisions  and  the  wi&dom  of  the  re- 
.^pective  CoinmitttCG  on  Commerce  and 
Interior  and  Ir.sular  AfTairs,  and  cor.se- 
quently  I  am  oppo.'ied  to  the  amendment, 
and  will  move  to  table  the  matter  after 
all  those  who  wisli  to  speak  have  had  an 
opportunity  to  do  so.  within  the  time  lim- 
itation accrrded  to  both  of  iL'^ 

The  PRESIDING  OFFICFIR  Who 
yields  time? 

Mr  STEVENSON.  Mr.  President,  will 
the  Senator  yield? 

Mr.  RIBICOFF.  I  yield  10  minutes  to 
the  distinguished  Senator  from  Illinois. 

Mr.  SI'EVKNSON.  I  thank  the  Senator 
from  Connecticut. 

Mr.  President,  the  Senate  has  now  de- 
feated the  Mondale  amendment,  which 
was  intended  to  maintain  price  controls 
in  the  oil  and  gas  Industry  and  Impose 
some  restraints  on  profits  in  that  indus- 
try. Now  it  Ls  proposed  that  the  profits 
of  the  oil  and  gas  industry  be  Increased 
by  as  much  as  $8  billion — thereby  adding 
that  amount  to  the  prices  which  already 
burdened  consumers  must  pay 

There  have  been  hearings  held  on  this 
subject,  not  in  the  Committee  on  Inte- 
rior and  Insular  Affairs,  but  in  the  Com- 
merce Committee  I  have  chaired  9  days 
of  hearings  on  this  compli<"ated  and  iin- 
portant  matter.  I  have  heard  more  tee- 
tlmony  on  this  subject  than  any  other 
Member  of  this  body. 

The  Senator  from  Texas  mentioned 
Professor  Mav.Avoy  of  MIT  He  hsis  also 
been  referred  to  by  the  Senator  from  New 
York.  He  testified  l)efore  the  Commerce 
Comittee  during  these  hearings,  and  he 
did  not  support  deregulation  of  natural 
gas  prices.  He  supported  reform  of  the 
regulatory  structtire,  which  Is  what  I 
support. 

It  has  been  stated  that  there  is  ample 
gas  in  intrastate  commerce.  That  simply 
is  not  the  fact.  The  fact  Is  that  the  cur- 
tailments of  gfiis  in  intrastate  commerce 
are  running  at  twice  the  rate  of  the 
curtailments  in  Interstate  commerce  even 
though  the  intrastate  prices  are  higher. 
The  prices  of  gas  in  mtrastate  commerce 
are  now  as  high  as  90  cents  per  mcf,  and 
rising. 

This  amendment,  Mr.  President,  would 
not  Increase  the  supply  of  natural  gas  in 
the  coimtry  for  at  least  3  yeurs.  Its  most 
ardent  supporters  in  the  Commerce  Com- 
mittee hearings.  Including  the  Secretary?. 
of  the  Interior,  all  admitted  that  It  wotild  - 
take  at  least  3  to  5  years  before  It  wotild 
have  any  effect  whatsoever  on  the  nat- 
ural gas  supply. 

As  far  as  the  emergency  is  concerned, 
the  Chairman  of  the  F'ederal  Power  Com- 
mission Indicated  that  to  any  extent  to 
which  deregtilatlon  might  increase  cur- 
rent supplies,  the  FPC  already  had  the 
power  to  deregulate  the  price. 

All  we  can  be  certain  of  is  that  de- 
regulation of  the  price  of  natural  gas  at 
the  wellhead  would  increase  the  revenues 
of  the  producers  by  as  much  as  $8  billion, 
and  increase  the  prices  to  overt'Urdened 
consumers  by  a  like  amount  We  cannot 
even  be  assured  that  after  3  or  5  years 
the  supply  of  natural  gas  in  the  country 
would  be  increased.  After  all.  the  ofl 


42478 


segment  of  this  Industry  Is  unregulated 
and  we  face  greater  shortages  of  oU  In 
the  country  than  we  do  of  natural  gas 
It  has  been  suggested  that  the  price  of 
natural  gas  should  be  permitted  to  rise 
to  the  cost  of  altemaUve  sources  of  fuel 
The  Senator  from  Texas  Indicated  that 
it  was  wrong  to  pay  the  producers  more 
in  north  Africa  for  natural  gas  than  we 
pay  American  producers.  There  may  be 
something  right  about  that.  too.  But  If 
the  suggestion  is  sound,  the  prices  should 
and  would  rise  to  the  prices  of  alterna- 
tive fuels,  including  the  prices  of  fuels 
produced    abroad,    as    in    the    case    of 
Algeria,  where  natural  gas  Is  produced 
Then  the  quesUon  becomes  one  of  who 
will  regulate.  Will  It  be  Lie  Government 
of   Algeria  or   the   Government  of   the 
United  States  th^t  will  regulate  the  price 
of  natural  gas   to   the  American  con- 
sumer? The  prices  oi  fuel,  both  oU  and 
gas.  in  the  producing  countries  outside 
the  United  Stated,  are  regulated    They 
are   regulated    by    the   governments   of 
those  countries.  They  are  regulated  also 
by  Craduig  companies. 

Mr.  Presioent,  ii  would  be  very  r9t^  if 
we  couid  rtly  on  a  free  market  to  deter- 
nune  a  reasonable  price  and  to  allocate 
natural  gas  responsibly   But  that  is  not 
one  of  the  opUuns  avaiiable  to  us.  There 
is  no  free  market  in.  the  oil  and  gas  Ln- 
dustry.  The  laige  oU  and  gas  compames 
which  control  most  of  the  NaUons  un- 
committed   natural    gas    reserves,    are 
heavily  concentrated  and  verUcallv  inte- 
grated. Their  operaUons  are  character- 
laed  by  Joint  ventures,  interlocking  direc- 
tories,   exchange    agreements    and     of 
course,  they  operate  in  a  climate  of  short 
suppty.  Ttieir  product  is  vita].  It  is  vital  to 
every  IxMne.  company,  and  firm  in  the 
country   In  these  times  of  short  supply 
that   industry  can   charge   almost   any 
price;  the  desperate  consumer  will  have 
to  pay  it. 

Mr.  President,  the  regulatory  struc- 
ture should  change.  I  have  hltle  doubt 
that  prices  should  rise,  li  may  be  that  the 
independent  producers  who  do  most  of 
the  explonng.  wUdcattmg.  and  discover- 
mg  OI  oil  and  gas  reserves  should  be 
deregulated. 

In  fact,  that  is  wh<*t  I  have  proposed 
They  are  competiUve.  They  do  the  ex- 
ploratory work.  They  d^sene  the  incen- 
uves.  It  is,  a  complex  subject,  it  is  not 
ft  subject  which  should  be  legislated  in 
this  «ay  without  the  benefit  of  careful 
siudj-  and  recommendation  by  one  of  the 
committees  of  the  Senate. 

E\en  If  this  amendment  were  to  be 
approved  now.  it  probably  would  not  and 
could  not  become  law  before  the  Com- 
merte  Committee  has  the  opportunity  to 
report  a  oill  and  tne  Senate  an  spportun- 
l.y  Uj  pais  i..  That  committee,  as  I  have 
mentioned,  has  already  held  9  dUys  of 
he^irings  on  the  subject. 

It  is  our  intention  to  mark  up  and  re- 
port a  biU  come  time  in  February  At 
that  pern:,  the  Senate  could,  with  the 
benefit  of  very  serious  and  careful  studj- 
«nd  the  ad.lce  of  one  of  Its  committ€e<' 
•ct  senslbb-  on  an  extremely  difficult  and 
•xUemely  ur.porUnt  subject 

Senate  to  defeat  the  Mocda'e  amend- 
ment It  would  be  rlsht  fo-  the  Senate  to 


CONGRESSION.AI    Rh(  ORD- SFNAll  December  19,  197S 


defeat  this  amendment  It  should  be 
tabled.  If  it  is  not  Ubled.  I  will  have  some 
further  amendments  to  offer,  Including 
one  to  impose  excess  profits  taxaUon  on 
the  oil  and  gas  Industry 

Mr.  PERCY.  Mr.  President,  I  certainly 
agree  with  the  overall  objective  of  the 
amendment  of  the  Senator  from  New 
York,   in   attempting   to   stimulate   In- 
creased  production.   That  really  Is   the 
best  way.  ultimately,  to  bring  down  prices 
and  provide  an  adequate  supply  But  in 
view  of  the  fact  that  hearings  are  now  be- 
ing held  by  the  Commerce  Committee  in 
view  of  the  study  being  given  this  matter 
intensively  by  the  Committee  on  Interior 
and  Insular  Affairs,  and  In  further  view 
of  the  fact  that  reports  are  not  now  avail- 
able from  the  committees  on  this  matter 
I  would  consider  it  the  better  part  of 
judgment  to  withhold  acUon  on  this  par- 
Ucuiar  amendment  until  such  time  as  the 
Senate  has  available  to  it  the  benefit  of 
those  reports. 

So.  although  I  may  concur  with  the  ob- 
jective. I  do  feel  It  would  be  best  to  wait 
untu  such  time  as  we  have  thLs  Inform- 
aUon.  I.  therefore.  Intend  to  vote  for  the 
motion  to  Uble  the  amendment 

Mr.  BUCKLEY.  Mr  President,  first  I 
ask  unanimous  consent  to  have  printed 
ui  the  RxcoRD  the  letter  written  to  me 
from  the  Chairman  of  the  Federal  Power 
Commission  under  date  of  December  14 
1973,  from  which  I  have  quoted  several 
times. 

There  being  no  objecUoi,  the  letter 
was  ordered  to  be  printed  in  the  Record 
as  follows ; 

FoaAX.  Pown  Oouxission, 
Watmnnton.  DC.  Oeeember  14. 1973 
Hon.  Jakzs  L.  Buckxet, 
US.  Seriate. 
Washington.  DC. 

Dka«  atNATon  BrcKtiT :  You  hare  requeu- 
ed the  views  of  the  PederaJ  Power  Commla- 
slon  on  two  aspects  of  Amendment  No  787 
sponsored  by  you  and  others  to  S  1293 
which  amendment  reads- 

••b«c  301  This  tuie  may  be  cited  as  the 
Natural  Gas  Act  Amendmeuu  or  1973- 

-Stc.  302.  Section  Kb)  of  the  Natural  Oa« 
Act  \a  amended  by  inserting  before  the 
period  at  the  end  thereof  the  following  or 
to  the  sale  of  natural  gaa  delivered  for  the 
ars:  ume  in  mterstate  commerce  or  sold 
in  liiterstate  ctmmerce  upon  the  expiration 
or  an  existing  contract  on  or  after  the  effec- 
Uve  date  of  the  Natural  Oa»  Act  Amend- 
ment, of  1973.  or  produced  from  weUs  com- 
menced  on   or   after  such  date  • 

-Sic.  303.  Section  2  of  the  Natural  Gas  Act 

flliS^g"**  '*''  ***'^"'^  "  "'^  *****  ^^^^  ^* 
-<10,  aauiate-  of  another  perwn  me*ns 
any  person  direcUy  or  IndlrecUy  cootroUlna 
«)utrolled  by.  or  under  common  contxui 
wirh.  such  other  perwn. 

Sec  ao».  Section  5  of  the  Natural  Gaa  Act 

i*>ie'7)J^'?  "^  la*ertlng  it  the  end  thereof 
tne  roi. owing 

••(C)  In  ail/  ca«>  where  a  natunu  gu  com- 
pany purehaaea  natural  gaa  from  an  afflll- 
a.e  the  CommlMion  may  disa)low  any  portion 

u  ^^^  ^u"^  ^'^  ^"^  company  which 
K  "  *^*  *™o^t  paid  tor  such  pur- 

chaae   i.^   exceas   of   current   prices   paid   for 
ownparabiB  gaa  to  nonafllliatea. 
.S'V   '^*  <^«n*n>«««on  ahall  not  authortae 

«iU,e  bojia  of  the  renegotiation  of  any  cJn- 
trart  for  the  sale  of  natural  gas.  betog  car- 
rted  orat  before  the  effective  date  of  thm 
Natural  oa.  Act  AmendmenU  of  1973.  prior 
^•'.rif  '**'*  o«  **»'«*«  P«rtormance  Is  iom- 
P.eted    under   such    contract   in    accordance 


with  Its  terms  Provided,  That  the  Commis- 
sion may  approve  such  renegouauon  where 
adjustment  in  contract  terms  U  required  to 
assure  opUmum  producUon  from  productnB 
reaervolra,"  " 

la  particular  you  have  inquired  a«  to 
whether  the  amendment  reaches  orly  ■new" 
gaa.  or  whether  it  would  also  apply,  to  "old" 
gas,  and  the  effect  of  the  amendment  upon 
existing  oontracu  which  conuin  so-called 
"deregulation  ■  clauses 

1    It  Is  the  Commission  8  view    (Commis- 
sioner Smith   not   paruclpating)    that    the 
Buckley  amendment  deflnlUon  c*    'new"  gas 
U  eiiurely  proper,  and  that  it  Is  consistent 
with   the  demarcation   between   "new-  and 
old  ■  gas  no*  utilized  by  the  Commission  in 
Its  regulation  of  producer  retea.  Under  Com- 
nusaton  opinions  and  orders  now  in  force  we 
wognlze   as   "new   gas.    for   rate   purp<i»s. 
that  gas  Which  Is  (a)  sold  for  the  first  time 
to  interstate  pipelines,  (b)  sold  under  a  new 
contract  which  U  negotiated  after  the  tennl- 
naUon  of  the  original  contract   and  (ci  pro- 
dueed  from  wells  commenced  after  the  date 
or   inception   of   the   applicaWe   rstemaklng 
Pi!^v.'"^     "^^    Buckley    amendment    fol- 
lows   the    same   definitional    patt»m-    it    is 
Clear,  therefore,  that  the  amendment  would 
not  interfere  with,  nor  substantially  change 
producer  rete  reguUtlon  of  ■  old  •  gu  as  pn»- 
enUy  administered  by  the  Commission 

I    will    not    burden    this   response   with    a 
statement  of  the  reasons  why  the  Commis- 
sion moved  to  the  definitional  base  described 
ft..!^  ^  "**•  ^  mattere  of  public  record 
stated   in   our   various   opinions   and   ordere 
dMJfag    with    this   subject.    It   might    be   of 
a-rtfctance.    however,    for   you   to   review   my 
recent    coiigreasioaai    testimony    (Commis- 
Moner  Springer  conciuring) .  and  that  of  Vice 
Chairman  Moody  and  CommlsBloner  Brooke 
,       ^rhlch  touched  upon  these  matters,  and  ac- 
oordlngly  I  enclose  copies  of  such  testimony, 
offered  to  the  Senate  Commerce  Committee 
n  ooimectlon  with  3    2408  and  related  leg- 
isiaUon.  ^ 

.hi,t'^K.  ^-^"•^     -deregulation    clause" 
about  which  you  mqulred  U  found  In  about 

fl.'   P?:^°*    °'   ^^'    ^''^   long-term    con- 
tracts filed  with   the  Commission  m   recent 

"'"?^^''t7^!  ^'^'°'^«8  language  is  typical- 
th  J  .Lii        *"^  "™*  ^'"'■'"S   the   term   of 
^.^  *«™"«"'  the  F«leral  Power  Commls- 
?,^.  '**  *°'  succeMor  agency  having  jurte- 
dlctlon  over  the  rat«i  charged  for  gas  ioTd 

^u.^'^'^tr   ""*"  ^  ^'^^  Jurl-dictlon  ^er 
such  matters  or  ceases  to  exercise  price  a>n 
K     .fL"    ^^^    agreement,    the    price    to    be 

Ihlii  iCTth  '"**  ^*  redetermined  price 
Shall  be  the  average  of  the  three  (3)  highest 

l.^'  «>•  »^e  quality  and  quantity  under 
comparable  term,  and  condition,  product 
and  i«kl  IX,  mtersute  commerce  within  the 
South  Louisiana  and  offah-re  area.  Further- 
ZZt^",  P"*^  t^V'  ^  redetermined  on  the 
^r.fr!l'  ?!^^  '"''^  (4)  yeare  from  and  after 
tht  afr.re«ald  c«watlon  date.  However,  in  no 

7fr^^T\'  '**'  "^^^  ^  '^  '^^^'^^  '«"«nv 
period  be  lower  than  the  higher  of  the  appli- 
cable .tep-scale  price  or  the  price  in  effect 
r^Zd^  '*""  '""•  '*"'  Pr'c*  was  redet^' 
The  Buckley  amendment  wUl  not  trlireor 
^JtS'*"  :!'^=''»«on  of  "Old"  or  ••flowTng" 
ns  through  operetlon  of  such  a  "deregula- 
tion clause  nnr  will  the  Buckley  amend- 
ment  permit  the  u«,  of  .uch  a  clause  to  de- 

r^*!  !m    "°'f   °'  ••«°'^"   ?«    The   "de- 
negulation  clause'-despite  it.  indu.ion  in 

r.,,r..  .  •  CommlMion •.  Regulations  be- 
lu^  K^  *n  indefinite  pricing  provision.  As 
'uch.  these  clause,  are  m  no  way  binding 
upon  the  Commission,  nor  may  they  be  n!»ed 
to  clreumvent  Commission  regulation  of  caa 
so^d  under  contract,  containing  such  clauses 
TTie  Commlwions  power  to  prohibit  the  um 
of  Indefinite  pricing  clauses,  and  Indeed  the 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42479 


/ 


express  language  of  Sec.  154.93,  were  ei- 
preesly  upheld  \>y  the  Supreme  Court  In 
y  P.C  V  rejoco,  377  US  33  (19ft4).  Sec. 
:54w,i  readi!,   m  periuient  part: 

f'Tu:  ided,  Tliat  In  contracts  executed  on 
or  after  AprU  3.  19C1.  for  the  sale  or  trans- 
portation of  natural  gas  subject  to  the  Juris- 
diction of  the  Oommlaslon  any  provision  for 
a  change  of  price  other  than  the  following 
provisions  shall  be  inoperall-.'e  and  of  no 
effect  at  law;  the  perml.'..'(;bie  provlslona  for 
a  change  In  price  are : 

(a)  Provisions  that  change  a  price  In  order 
to  reimburse  the  seller  for  all  or  any  part 
of  the  chemges  in  production,  severance,  or 
gathering  taxes  levied  upon  the  seller; 

(b)  Provisions  that  change  a  price  to  a 
sp>eclfic  amount  at  a  definite  date: 

(b-1)  Provisions  that  permit  a  change  In 
price  to  the  applicable  Just  and  reasonable 
area  celling  rate  which  has  l>een.  or  which 
may  be.  prescribed  by  the  Commission  for 
the  quality  of  the  gas  involved:  and 

(c)  Provisions  that,  once  In  five-year  con- 
tract periods  during  which  there  Is  no  pro- 
vision for  a  change  In  price  to  a  specific 
amount  (parapraph  'b)  of  this  section), 
change  a  price  at  a  dennlte  date  by  a  prlce- 
redetermlnatlon  based  upon  and  not  higher 
than  a  producer  rate  or  producer  rates  which 
are  subject  to  the  Jurisdiction  of  the  Com- 
mission, are  not  In  Issue  In  suspension  or 
certificate  proceedings,  and,  are  In  the  area 
of  the  price  In  question;  Prorided  further. 
That  any  contract  executed  on  or  after  April 
3.  1962,  containing  price-changing  provisions 
other  than  the  permlseible  provisions  set 
forth  in  the  proviso  next  above  shall  be  re- 
jected " 

Entirely  aside  from  the  fact  that  "deregu- 
lation" clauses  are  "Inoperative  and  of  no 
effect  at  law".  It  also  seem,  clear  that  the 
clauK.  by  Its  own  terms.  Is  in  no  manner 
acttiated  by  the  Buckley  amendment.  Tou 
wlU  note  that  the  clause  speaks  to  a  price 
redetermination  "If  .  .  .  the  Federal  Power 
Commlaalon  .  .  .  ceases  to  have  Jurisdiction 
over  ...  or  ceases  to  exerctee  price  control 
over  tht»  agreement".  The  Buckley  amend- 
ment obviously  does  not  oust  Commission 
Jurisdiction  over  flowing  gas  contracts,  and 
accordingly  we  fall  to  perceive  how  the  ex- 
press conditions  precedent  of  the  deregula- 
tion clause  are  ever  fulfilled. 

I  trust  that  your  specific  questions  have 
been  fuUy  answered,  but  if  we  may  be  of 
further  anlstance.  we  stand  ready  to  make 
such  further  response  as  might  be  helpful. 

The  Buckley  amendment  wUl  enable  mar- 
ket force,  to  more  effectively  allocate  our 
natural  resources  and  should  encourage  the 
development  of  additional  domestic  ga.  sup- 
plies consistent  with  the  objective  of  opti- 
mum self-sufficiency  to  alleviate  a  deepen- 
ing national  energy  emergency. 
Sincerely. 

John  N.  Nasstkas, 

Chairman. 

Mr.  BUCKLEY.  Mr.  President,  I  would 
just  like  to  comment  on  some  of  the 
points  raised  by  the  Senator  from  Con- 
necticut .and  the  Senator  from  Illinois. 
I  am  fully  cognizant  of  the  fact  that 
hearings  have  and  are  continuing  to  be 
conducted  before  the  Commerce  Com- 
mittee. But  If  we  arc  to  match  hour  for 
hour,  that  would  be  a  useless  exercise, 
as  I  would  guciis  that  over  a  period  of 
the  past  year  or  more  there  have  been 
more  hours  of  testimony  touching  on  all 
phases  of  what  Is  required  to  stimulate 
the  production  of  more  gas  and  the  dis- 
covery of  more  reserves,  more  testimony 
on  whether  the  industry  U  competitive, 
more  testimony  on  wh.ther  regulation 
Lnpedes  or  helps  the  consumer,  or  Im- 
pedes or  helps  exploration,  that  I  would 


venture  to  guess  there  is  at  lea.'^t  a  ratio 
of  2  to  1  In  favor  of  the  Interior  Com- 
mittee. 

I  really  do  not  beiie-ve  that  ihi.s  Lsfue 
is  so  oomplicated  a  hen  reduced  to  the 
essential  question  of  -whether  the  FPC 
price  regulation  has  impetled  the  dis- 
covery of  natural  ga.s  and  the  devplop- 
ment  of  reserves,  and  whether  the  lilung 
of  that  authority  ovt  r  the  pncing  of  new 
gas  will  stiinul^.te  the  kind  of  vast  ex- 
pansion of  exploration  efforts  required 
to  help  the  country  move  to  a  position 
of  energy  independenre. 

The  Senator  from  Illinois  has  pointed 
out  that  It  us  the  Middle  Eastern  sheiks 
who  are  e.-tabiishin;-'  the  -i;.  orld  pnce  of 
oU.  I  suggest  that  tliis  Ls  not  an  argriment 
in  favor  of  cor.tlnuing  bankrupt  poll  les 
at  home  in  e&tabUsJung  the  pncing  of 
natural  gas  but.  rather,  it  .sliould  be  the 
argument  to  liberate  ourst-lves  from  this 
kind  of  dependence  on  monopolistic  for- 
eign supplies  b.v  developing  ;u-  soon  as 
possible  and  as  eflectively  as  possible  the 
huge  reniaming  re.serves  o!  gas  and  oil 
which  all  competent  geolog:.sLs  agree  re- 
main to  be  luund  in  this  country,  pro- 
vided tile  potential  return  justifies  the 
very  large  investment 

I  know  that  tliere  are  procedures  in 
this  Congress  and  I,  for  one,  have  urged 
they  be  followed  more  meticulously  than 
they  have  been  routinely  in  this  body, 
especially  when  we  are  dealing  with  im- 
written  amendments. 

There  is  no  surprise  about  this  amend- 
ment. It  hJis  been  submitted  in  one  form 
or  another  several  limes  in  recent 
months.  I  dare  say  there  are  more  people 
in  this  body  today  acquainted  with  the 
pros  and  cons  of  my  amendment  than  is 
normally  the  case  in  the  situation  o'  90 
percent  of  the  votes  we  cast  m  this  body. 
I  do  believe  that  we  are  in  an  emer- 
gency, and  we  are  dealing  with  emer- 
gency energy  legislation.  We  have  rushed 
through  all  kinds  of  bills,  and  in  some 
cases,  I  believe,  without  the  necessary 
safefe-Tiards  over  arbitrary  administrative 
regulation  and  intervention.  But  we  have 
done  so  because  we  recognize  that  we 
have  to  start  now,  we  have  to  start  to- 
day, to  build  that  base  of  supply  that 
will  free  us  from  dependence  on  foreign 
supplies. 

So  far  In  this  Congress  we  have  done 
nothing  except  approve  the  Alaska  pipe- 
line, which  will  not  increase  by  one  barrel 
or  1,000  cubic  feet  the  amount  of  energy 
resources  that  will  be  made  available  to 
the  American  public. 

The  Senator  from  Illinois  stated  that 
his  committee  will  be  continuing  hear- 
ings after  we  reconvene  in  the  latter  part 
of  January,  that  la  due  course  there  will 
be  a  report  to  Congress,  and  that  in  due 
course  there  will  be  action.  We  may 
or  may  not  have  &n  equivalent  feel- 
ing of  urgency  on  the  side  of  the 
House,  and  perhaps  in  June.  July,  or 
August,  we  will  have  law.  He  stated  that 
the  bill  now  imder  debate  could  not  pos- 
sibly become  law  prior  to  the  time  that 
the  Committee  o^i  Commerce  issues  Its 
report.  I  respectfully  decline  to  arree. 

I  believe  It  Is  our  objective  here,  in  the 
last  hours  of  this  session,  to  rush  this  bill 
to  completion,  so  that  before  we  return 


home  for  our  Christmas  holidays,  legis- 
lation will  be  on  the  President .«  desk 
which  va'.l  provide  the  machmer>  for  the 
administration  of  o'ur  emergency  eiiergy 
proposals,  and  I  hope  that  that  bili  »lii 
contain  one  ingredient  that  will  do  some- 
thing to  increase  the  supply. 

Mr  President  I  am  willing  to  relin- 
quish the  balance  of  my  time  whenever 
the  oppo.sition  l.s  willing  to  do  so. 

DEEEGVLAnOJ*    OF    NATTTXAL    GAS 

Mr.  DOLE.  Mr.  President,  the  emer- 
gence of  shortages  of  all  forms  of  energy 
in  the  United  States  presents  to  the 
Congress  and  the  American  people  Issues 
of  singular  Importance.  Acknowledg- 
ment of  the  price  of  manageable  controls 
and  effective  incentives  is  essential,  par- 
ticularly as  we  look  to  the  near  future 
to  insure  an  ad.'quate  and  dependable 
supply  of  energy. 

cxPANDm  DOMTsnc  rm-oaATioN 

While  simplistic  solutions  for  an  in- 
stant cure  to  the  energy  crisis  do  not 
exist,  steps  can  be  taken  to  prevent  en- 
ergy shortages  from  critically  affecting 
our  economy  and  our  waj-  of  life.  In  leg- 
islating new  actions  effecting  natural 
gas.  it  is  necessary  to  accept  the  reality 
of  declining  volumes  of  flowing  gas.  Re- 
establishment  of  incentives  to  get  do- 
mestic exploration  moving  has  to  be  done 
by  Congress. 

Deregulation  provides  the  best,  quick- 
est, and  surest  answer  to  the  stimula- 
tion of  exploration  and  development.  If 
we  can  agree  that  exploration  is  a  fimc- 
tion  of  product  price,  tax  incentives,  and 
general  economic  incentives,  then  the 
removal  of  the  Federal  Power  Commis- 
sion's authority  to  regulate  the  wellhead 
or  field  price  of  new  gas  should  be  wel- 
comed. 

•       rACn*0    THE    FUrt'EX 

All  available  indicators  and  projec- 
tions show  the  growing  need  for  natural 
gas.  Shortages  of  natural  gas  affect  not 
onlj-  gas  users,  but  contribute  to  supply 
dislocations  throughout  the  energy  mar- 
ket. Dereg:  ation  will  assure  more  effec- 
tive utilization  of  gas  stqiplles.  Ct  nipet- 
Itive  prices  will  be  an  effective  means 
of  allocating  gas  U  its  most  beneflcia] 
uses,  while  promoting  ccnservation 
through  the  practice  of  efficierit  end  use. 
Increased  supplies  and  eflScieiu  U5€  will 
help  to  reduce  air  pollution  and  should 
diminish  national  dependence  on  less  se- 
cure foreign  supplies  while  lightening 
the  burden  on  the  balance  of  Interna- 
tional pajTnents  caused  by  excessive  im- 
ports of  oil  and  natural  gas. 

T.U-tTX    or    CXEKCT 

Decontrol  of  the  wellhead  gas  price  is 
the  best  solution  to  stimtilating  aggres- 
sive drilling.  Domestic  resources  are 
available  and  their  exploration  is  both 
technologically-  and  environmentally 
^thin  reach.  Given  the  resources  avail- 
able for  production  maximian  efficiency 
of  allocations  is  a  far  better  process  than 
mandatory  allocation  in  increasing  the 
availability  of  heating  fuel  or  propane 
gas.  Ha\1ng  reserves  of  rr&tural  energy 
is  clearly  not  the  same  as  bein^  able  to 
deliver  them  to  market  needs.  Clearly 
we  can  meet  the  challenge  and  accept  the 
scale  justified  by  the  value  of  energy  to 
oar  way  of  life. 


tsn 


COiN  C ,  K  {  > s  K  >N  \  L   K I  CORD  —  SENATE 


CONSUMER    EmcTS    Or    OBSXCOLATIOM 

A  shortage  of  domestically  produced 
natural  gas  now  exxatu  and  decontrol  of 
wellhead  prices  Is  a  compromise  which 
offers  quick  exploration  and  perhaps  a 
return  to  freedom  to  the  producer.  But 
deregulation  of  natural  gas  has  become  a 
difficult  task  for  Congress,  due  to  the 
public  suspicion  of  the  oil  and  gas  indus- 
try. Yet,  it  would  best  serve  the  con- 
sumers Interest  to  end  governmental  reg- 
ulation of  prices  at  the  wellhead. 

Increased  field  prices  for  domestic  gas 
would  not  drastically  affect  costs  to  the 
consumer  as  the  field  price  of  domestic 
gas  represents  less  than  20  percent  of  the 
gas  bUl  paid  by  the  homeowner,  with  the 
remainin:  80  percent  of  the  gas  bill  for 
moving  the  gas  by  pipeline  to  homes  and 
businesses.  Given  present  governmental 
controls,  consumers  are  not  benefited  by 
a  scarcity  at  low  prices.  Consumers  are 
best  served  by  an  adequate  supply  at 
reasonable  prices.  Certainly,  there  will  be 
an  effect  on  the  consumer's  gas  bill  that 
may  be  substantial,  but  It  will  not  be  a 
drastic  one  as  suggested  by  some.  The 
economy  will  readjust  to  an  Increase  In 
real  energy  costs  over  a  period  of  time 
without  massive  disruptions. 

For  some  time  there  will  be  no  room 
for  complacency,  and  appropriate  efforts 
to  ease  the  adjustment  are  welcomed. 
Conservation  will  help  redress  the  Im- 
balance of  demand  and  supply  and  these 
alternatives  are  now  being  given  the 
noteworthy  consideration  they  deserve. 
The  possibilities  of  trimming  the  use  of 
energj-  thrcugh  improved  insulation,  im- 
proved heating  and  cooling  systems,  the 
renovation  of  the  railroads,  mass  trans- 
portation and  efficient  industrial  use  will 
all  offer  substantial  savings  to  our  Na- 
tions energy  consumption. 

N.^TLTR.^L    C'S    IN    KANSAS 

The  energy  Industry  is  vitally  impor- 
tant to  Kansas.  And  Kansas  energy  pro- 
duction has  likewise  been  important  to 
the  rest  of  the  Nation  for  many  years. 
Coal,  crude  oil.  and  natural  gas  have  all 
been  produced  in  abundance  in  Kansas 
and  have  contributed  substantially  to  the 
State's  growth  and  development  and  to 
that  of  the  entire  Nation  as  well. 

Natural  gas  is  currently  an  extremely 
important  element  of  the  Kansas  energy 
picture  as  its  unique  properties  have  be- 
come so  widely  recognized  and  highly 
prized. 

Unfortunately,  the  Increased  demand 
for  this  Kansas  product  has  not  been  met 
by  the  supply -producing  response  which 
could  be  expected  were  natural  gas  sub- 
ject to  the  traditional  free  market  in- 
fluences. While  the  wellhead  price  has 
been  held  at  20  cents  per  thousand  cubic 
feet,  the  price  of  other,  dirtier,  and  less 
secure  sources  of  energy  have  steadily 
risen  to  several  times  that  of  the  thermal 
equivalants  of  natural  gas.  Gas  has  be- 
come a  ridiculous  bargain  In  the  energy 
showcase,  so  it  has  been  put  to  many  uses 
that  simply  make  no  sense  in  our  energy- 
scarce  world.  The  effects  have  been 
disastrous. 

Nearly  8.700  gas  and  condensate-pro- 
ducing wells  are  operating  in  Kansas.  In 
1972  the  wellhead  value  of  this  produc- 
tion was  S127.8  mUllon  with  the  vast  ma- 
jority of  It  moving  In  Interstate  pipelines 


December  19,  1973 


under  regulated  prices,  so  there  was  little 
opportunity  for  the  luiregulated  market 
for  intrastate  gas  to  spur  exploration.  It 
is  not  surprising  that  in  the  same  year 
only  26  wildcat  gas  wells  were  drilled, 
and  the  Stat«  suffered  a  net  loss  of  re- 
serves of  596  million  cubic  feet. 

But  1972  was  not  an  atypical  year.  In 
fact  it  W8«  an  improvement  over  1971 
when  reserves  dechned  by  789  million 
cubic  feet.  The  entire  trend — as  the 
squeeze  of  wellhead  price  regulation  has 
grown  tighter  and  demand  skyrocketed— 
has  been  exactly  opposite  of  what  our 
Nation  required.  Exploration  has  de- 
clined, reserves  have  shnink,  and  the  de- 
mand grows. 

If  this  trend  continues,  within  3  years 
the  State  of  Kansas  will  become  a  net 
importer  of  natural  gas. 

Of  course  It  is  impossible  to  stand  here 
in  the  Senate  and  say  that  if  gas  is  de- 
regulated J  amount  of  new  reserves  wiU 
be  found.  There  is  no  way  to  tell  what 
will  be  discovered  through  the  risk-laden 
exploration  process.  But  this  is  preciselj- 
the  pomt.  At  today's  prices  the  risk  capi- 
tal required  to  undenvTite  expanded  ex- 
ploration is  not  available. 

Thus  the  Impact  of  the  deregulation 
amendment  offered  by  the  Senator  from 
New  York  (Mr.  Buckley)  which  I  am 
pleased  to  join  as  a  cosponsor,  would  have 
a  verv-  strong  effect  in  Kansas  where  al- 
most all  the  gas  that  is  produced  moves 
in  Interstate  commerce  and  Is  under  well- 
head price  regulation 

With  gas  prices  able  to  seek  their  own 
level  in  the  free  market,  exploration  ac- 
tivities—particularly those  of  the  inde- 
pendent operators  who  account  for  the 
majority  of  new  finds  in  Kansas  and 
throughout  the  country — will  be  stimu- 
lated significantly  and  for  .sound  business  ' 
reasons. 

Historically,  in  Kansas  dry  holes  have 
accounted  for  36.6  percent  of  all 
167,000  oil  and  gas  wells  drilled.  But 
these  figures  are  misleading,  for  as  ini- 
tial fields  have  been  developed  and 
charted  the  percentage  of  dry  holes  has 
Increased  enormously  to  the  point  today 
where  the  risk  of  failure  is  so  high  that 
It  is  surprising  that  even  25  rotary  drill- 
ing rigs  were  operating  in  Kansas  in  1972. 
Onlj-  1  out  of  every  9  wells  drilled  in 
America  today  brings  in  any  production ; 
only  1  in  50  is  considered  to  produce  In 
commercial  quantities;  and  only  1  In 
l.OOO  Is  a  major  discovery.  No  wonder 
there  is  little  risk  capital  available. 

It  is  most  unfortunate  that  natural 
gas  has  been  caught  between  short- 
sighted regulators  and  the  rumble  of 
those  who  periodically  .seek  to  inflame 
the  public  over  the  real  and  imagined  sins 
of  the  oil  and  gas  industry.  But  it  is  get- 
ting well  past  the  point  when  we  can  af- 
ford to  tolerate  the  effects  of  these  forces, 
and  we  must  move  to  assure  the  public 
interest  of  having  adequate  quantities  of 
the  proper  fuels  available  when  needed. 
Therefore,  I  am  pleased  to  support  this 
amendment  In  the  belief  that  its  passage 
will  contribute  significantly  to  the  goal 
of  energy  self-sufficiency  for  America. 

Mr.  FANNIN.  Mr.  President,  with  the 
first  snow  of  the  winter  Washingtonians 
are  even  more  aware  of  the  fact  that  we 
do  have  an  energy  shortage,  and  of  Its 


implications.  The  Senate  now  has  the 
final  opportunity  of  this  session  to  take 
forceful  action  to  incrpa-^e  Mippl.e..  ,f  en  - 
ergy  available  ♦©  the  .A  '«T;^:i:;  ':.  i:-.r 
I  cannot  urge  more  strongly  the  adoption 
of  the  amendment  offered  by  my  col- 
league, the  Senator  from  New  York. 

Despite  critics'  charges  to  the  contrary, 
the  energy  shortage  was  not  contrived. 
But  it  could  have  been.  Here,  for  exam- 
ple, is  how  a  recent  article  by  the  Boston 
Consulting  Group,  an  Independent  con- 
sulting organization  specializing  in  cor- 
porate strategy,  suggests  it  could  have 
been  done 

1  Set  a  celling  on  n*tural  g&s  &nd  k»ep 
the  price  down  In  spite  of  InflAtlon.  ThU  will 
dlsoourage  exploration  and  Increase  uae. 

a.  Ban  the  use  of  coal  with  sulfur  content. 
Sharply  restrict  strip  mining  for  envU-on- 
mental  reasons.  Then  suddenly  impose  dras- 
tic safety  rules  which  wUl  substantially  cut 
production  from  eilstlnf  mlnee  Fneem  prices 
so  no  one  can  offset  cost  Increase  from  re- 
duced output  or  Justify  further  Uivestment. 

3.  Delay  initial  nuclear  construction  by 
uncertainty  about  Ucensmg  requurements. 
Delay  operation  at  full  power  after  construc- 
tion. Then  delay  start  of  new  construction 
by  environmental tst  suits. 

4.  With  natural  gas.  coal  and  nuclear  power 
all  severely  reetrlcted.  that  leaves  only  pe- 
troleum. First,  grossly  Uicrease  automotive 
consumption  of  gasoline  by  requiring  drastic 
reductions  In  efficiency  of  already  oversized 
engUies  hecause  of  pollution  related  modifica- 
tions. Then  ban  the  use  of  crude  oil  conUln- 
Ing  suJfur.  Put  into  effect  poUutlon  objec- 
tives that  make  reSneries  far  more  expen- 
sive. At  the  same  time,  introduce  great  un- 
certainty into  the  requirements  that  must 
be  met.  Eliminate  practlcallv  aU  new  refinery 
sites  by  legal  delayUig  tactics.  rther  cur- 
taU  refinery  Investment  by  mak  _g  supplies 
of  crude  oU  very  uncertain.  BIock  the  use  of 
Alaskan  North  Slope  oU  by  arguments  on  en- 
vU-onmental  effects  in  uninhabited  regions. 
Slow  all  offshore  operations  and  delay  de- 
velopment of  oil  shale  reserves  for  envi- 
ronmental reasons. 

As  a  clincher,  make  sure  that  the  public  is 
In  the  dark  about  what  Is  actually  happening 
by  bringing  suit  agaUist  the  major  oU  com- 
panies, charging  them  with  being  non-com- 
petltlve  and  thereby  causing  the  energy 
shortage. 

ActuaUy,  every  action  described  In  this 
scenario  already  has  occurred,  either  through 
legal  suits,  pubUc  demand  or  acta  of  environ- 
mentalists. AU  had  laudable  objectives.  In 
aggregate,  they  promise  to  be  verv  punishing 
to  the  nation  for  years  to  come. 

A  major  contributor  to  the  national 
energy  crisis  has  been  the  dramatic 
shortfall  of  natural  gas  supply.  Oil, 
largely  Imported  oil.  has  been  called 
upon  to  fill  the  gap  cau.sed  by  the  short- 
age of  natural  gas.  The  Arab  cutoff  of  oil 
has  limited  the  possibility  of  oil  con- 
tinuing to  fill  the  gas  gap.  The  question 
then  becomes  one  of  finding  the  best 
means  to  rapidly  increase  the  supply  of 
natural  gas  so  as  to  reduce  or  eliminate 
the  present  gap. 

In  order  to  find  such  a  means  one  must 
ask.  what  caused  the  natural  gas  short- 
age? The  experts— including  academic 
economists,  the  Federal  Power  Com- 
mission, and  the  natural  gas  industry — 
are  in  near  unanimous  agreement  that 
the  principal  cause  of  the  gas  shortage 
has  been  the  wellhead  price  regulation 
of  natural  gas  producers  selling  to  inter- 
state pipelines,  instituted  by  the  FPC 
in  the  early  1960's  pursuant  to  the  U.S. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42481 


Supreme  Court  decision  in  the  Phillips 
case.  Such  regulation  resulted  In  ex- 
panded consumer  demand  for  "bargain 
rate"  natural  gas  while  dramatically 
dampening  producers'  efforts  to  find  new 
gas  supplies. 


The  following  statLsticai  Ir.forir.auon 
Illustrates  the  results  o!  wellhead  price 
regulation  of  natural  gas  produ  er? 

EXPLORATION    ETTOBTS   TO   FIND   KIW    CAS 

The  table  below  shows  the  decline  of 
exploratory    geophysical    crew    months 


worked;  acres  leased;  and  wildcat  wells 
drilled.  As  can  be  seen,  the  8,923  crew 
months  worked  in  1952  dropped  to  2,760 
in  the  succeeding  20  years.  The  16,207 
wildcat — exploratory — wells  drilled  In 
1956  dropped  to  7,587  by  1971. 


EXPLORATION  fGEOPHYSICAL  CREW  ACTIVITY,  ACRfAGE  UNDER  LEASE,  WILDCAT  WELLS  DRILLED) 


Ysar 


Crew     Total  acres 
rr-onttis  leased  Ian.  I  . 
worked  (tliousands) 


Wildcat  wHIs 


Total 


Dry      Percent  dry 


9M 3,923 

953 3.675 

«« 7.969 

1955 8.240 

1956 7,857 

}9" 7,242 

195« 5.751 

19M 5,096 

I960 5,207 

1961 5024 

1962 4,231 


273, 067 

12.  425 

(') 

13.313 

315.568 

13.100 

0) 

14.942 

383,863 

16.  207 

(') 

14,714 

371, 146 

13.199 

382,807 

13. 191 

424,  251 

11,704 

416.871 

10,392 

408,870 

10, 797 

10.090 
10,633 
10,389 
11.832 
13.118 
11,904 
10.632 
10,  577 
9,515 
9,022 
8.815 


81.2 
79.9 


80. 
81. 
82.1 
81.6 


Year 


Crew     Total  acres 
montiis  leased  Jan.  1  - 
worked  (thousands) 


Wildcat  wells 


ToUl 


Dry     Percent  dry 


1963. 
1964. 
1965. 
1966. 
1967. 
1968. 
1969. 
1970. 
1971. 
1972. 


4,174 
4,406 
4,471 
3,835 
3.496 
3,390 
3  259 
2.521 
2,780 
(') 


387,457 
372,468 
375,506 
350,895 
333,858 
325. 106 
332,005 
343,213 
332. 647 
350.  725 


10,664 
10.  747 
3,466 
10.313 
8.878 
8.806 
9,701 
7,833 
6,922 
7,587 


8,686 
8,951 
8,005 
8,705 
7.860 
7.489 
8.001 
6,422 
5.834 
6.293 


81.5 
S3. 3 
84.6 
81.4 
81.9 
81  5 
82.5 
83.5 
84.3 
32.9 


1  Not  available. 


The  result  of  the  declining  search  for         consumption  of  nattjsai,  gas  MLAxivr 


new  gas  is  illustrated  by  the  fact  that  in 
1966  24.3  trilUon  cubic  feet  of  new  aas 
reserves  were  discovered  while  in  1^ 
the  new  discoveries  dropped  to  8.5  trillion 
cubic  feet. 


to  resebves 

Following  the  Phillips  decision  the  re- 
lationstiip  of  reserves  to  production — 
consumption — changed  noticeably  for 
the  worse  and  has  been  getting  worse 
nearly  every  year  since  then.  In  1953  23.1 


times  as  much  gas  reserves  existed  as 
was  produced  and  consumed.  In  1972,  for 
example,  natural  gas  reserves  to  piDduc- 
tion  ratio  had  dropped  to  11.5. 

By  analogy,  we  are  drawing  gas  out 
of  our  bank  account  at  a  much  faster 
rate  than  we  are  adding  to  It. 

The  table  below  illustrates  this  trend. 


PROVED  RESERVES  (LIQUID  HYDROCARBONS  AND  NATURAL  GAS) 


Liquid  hydrocarbons 
(million  barrels) 


Jan.  1 


Crude 
oti 


Gas 

liquids 


Total 
liquids 


Natural 
gas 

(trillion 
cubic 
feet) 


Reserve/productiofl  ratio 


Crude 
oil 


Total 
liquid 


Natural 
las 


Liquid  hydrocarbons 
(nniliion  barrels) 


Jan.  1 


Crude  Gas 

oil       liquids 


Total 
liquids 


Natural 
ps 

(trillion 
cubic 
feet) 


Reserve/production  ratio 


Crude 
oil 


Total 
Hqcnd 


Natural 


1953 27,961  4,997  32,958  198  6 

19M 28,945  5,438  34.383  210.3 

1955 29,561  5,244  34,805  210.6 

1956 30,012  5,439  35,451  222  5 

1957 30.435  5,902  36,337  236  5 

1958 30.300  5,687  35,987  245.2 

1959 30,536  6,204  36,740  252.8 

I960 31,719  6,522  38,241  261.2 

1961 31,613  6,816  38,429  262.3 

1962 31,726  7,049  38,835  266.8 


12.4 
12.5 
13.1 
12.4 
11.9 
11.8 
12.9 
12.8 
12.8 
12.6 


13.1 

23.1 

13.2 

22.9 

13.6 

22.5 

12.8 

22.1 

12.5 

21.8 

12.4 

21.4 

13.5 

22.1 

13.3 

21.1 

13.2 

20.1 

13.0 

19.9 

1963 31,389 

1964 30.970 

1965 30,991 

1966 31,352 

1967 31,452 

1968 31,377 

1969 30,707 

1970 29,632 

19711 29,401 

19721 28,463 


7,312 
7,674 
7,747 
8.024 
8,329 
8.614 
8.598 
8.143 
7.703 
7,304 


38.701 
38.644 
38,738 
39,376 
39,  781 
39.991 
39,305 
37,  775 
37,104 
35.  767 


272.3 
276.2 
281.3 
286.5 
289.3 
292.9 
287.4 
275.1 
264.7 
252.8 


12.3 

11.9 

11.7 

11.7 

11.0 

10.3 

9.8 

9.3 

8.8 

8.7 


12.8 
12.4 
12.2 
12.1 
11.5 
10.9 
10.3 
9.6 
9.1 
8.9 


20.0 
19.0 
18.3 
17.6 
16.5 
15.9 
14.8 
13.3 
12.1 
11.5 


1  Excludes  9,605,000,000  barrels  ot  crude  oil  and  26,000.050,000,000  cubic  feet  oJ  natural  gas  added  lor  Alaskan  North  Slope. 


The  Federal  Power  Commission  con- 
ducted a  study  which  projects  the  nat- 
ural gas  shortfall  if  present  trends  con- 
tinue. The  FPC's  demand-and-supply 
projections  indicate  that  such  shortages 
will  increase  in  volume  and  become  more 
widespread.  The  FPC's  Bureau  of  Natural 
Gas  projects  that  demand  for  g&s  will 
exceed  supply  by  3.6  Tcf  In  1973,  9.5.  13.7. 
and  17.1  Tcf  In  1980,  1985,  and  1990,  re- 
spectively, despite  the  addition  of  gas 


supplements  (22  Tcf  is  presently  con- 
sumed nationwide).  The  FPC's  projec- 
tions are  based  on  more  moderate  growth 
rates  than  were  experienced  in  previous 
years. 

To  close  this  gap,  an  annual  "finding 
rate"— annual  additions  to  resen'es — of 
approximately  37  Tcf  would  be  reqiUred 
starting  In  1973.  This  level  of  develop- 
ment represents  a  sustained  level  of  an- 
nual new  additions  to  reserves  equal  to 


that  attained  in  1970  when  26  Tcf  of 
Alaskan  gas  were  added  to  the  resen-e 
inventory.  Put  another  way,  the  annual 
finding  rate  would  have  to  equal  on^nd 
one-half  times  the  alltlme  recordfor 
annual  U.S.-non-Alaskan-reserve  addi- 
tions that  was  reached  in  1956  of  24.7 
Tcf,  at  the  same  time  that  supplemental 
sources  are  developed. 

A  graphic  representation  of  tills  anal- 
ysis follows : 


TABLE  l.-U.S.  GAS  SUPPLY  DEMAND  BALANCE  ACTUAL  1966-70;  PROJECTED  1971-90 
lAII  volumes  in  trillions  ol  cubic  ttet  at  14.73  lb  fin  i  and  60'  FahenheJt| 


Ymt 


Annual   Net  pipeline 
demand  i  imports 


LNG 
imports 


from 


Gas 
coal 


Gjs  from 
Alaski 


Gas  from 
liquid  hy- 
drocarbons 


Domestic  Annual 

production  consumption 


Unsatisfied 
demand 


Reserve 


Yeir-end 
reserves 


RP 

ratio 


1966 17,9 

1967 JiS 

1968.. iJS 

1969 as 

1970 2i6 

1"1 24.S 

1972 26.1 

1973 ^.\ 

1?7< 213 

1970 29.8 

1980 34.5 

1985 SJ 

1990 46.4 

1971  to  1995total 7  7.6 


0.4 

.S 

f        (0 ::;:::::;:::::::::::::;::: 

\\         S :::::;:::: 

1.1  <A ; m 

i.i         (?) :  m 

1.2  o.f :::;  vx 

1.6  2.0  0.3  6.7'  Q) 

}•'  3.0  1.4  1.3  (a 

10  4.0  3.3  2.3  \}) 

31. 1  38. 0  It!!  2o1  o" 


17.5 
18.4 
19.3 
20.6 
21.8 
22.8 
23.8 
24.7 
24.8 
24.7 
20.4 
18.5 
17.6 


17.9 
18.3 
19.9 
21.3 
22  6 
23.7 
24.8 
26.3 
25.9 
26.2 
26.0 
26.1 
29.3 


0 
0 
0 
0 
0 
.9 
.3 
1.9 
2.9 
3.6 
9.5 
13.7 
17.1 


19.2 
21.1 
12.0 
3.3 
11. 1 
12.0 
13.6 
24.6 
15.6 
16.  C 
17.0 
17.0 
17.0 


286.4 
289.3 

2S2.1 
269.9 
259  6 
248.8 
2310 
2213 
219.6 
3317 
186.1 
175  4 
170.4 


16.4 
15.8 
14.6 
111 
11.9 
10.4 
13.0 
9  2 
8.3 
8.4 
9.1 
9.6 
9.6 


414.2 


526.2 


186.4 


325.0 


>  Consignees  48  States. 
I  Very  small  volume. 


» Insuffident  data  for  quantitative  projection.  UnsaUsfied  demand  will  be  reduced  by  the  amount 

™  B*'  pruuuCvQ. 


42482 


CONGRESSIONAL  RECORD  — SLN ATE 


The  "unsatisfied  demand"  has  been 
filled  largely  by  oil.  Inasmuch  as  domestic 
oil  production  has  leveled  out  at  approxi- 
mately 1 1  million  barrels  a  day  and  total 
U.S.  consumption  is  in  excess  of  17  mil- 
lion barrels  a  day.  the  difference  has  been 
made  up  by  Imports.  The  imports  have 
been  used  to  satisfy  normal  increases  In 
demand  for  oil  as  well  as  increases  in 
demand  attributable  to  filling  the  unsat- 
isfied demand  in  natural  gas.  The  com- 
mittee staff  paper,  prepared  by  Miss 
Starratt,  contains  estimates  that  unsat- 
isfied natural  gas  demand  by  1975  in  oil 
equivalent  will  range  from  2.3  to  5.5  mil- 
lion barrels  a  day. 

U.S.  oil  imports  in  1970  of  crude  and 
product  averaged  3.4  million  barrels  a 
day.  By  the  first  quarter  of  1973  oil  im- 
ports had  nearly  doubled  to  6.2  million 
barrels  a  day  of  crude  and  product,  or 
35  percent  of  total  U.S.  oil  supply. 

The  Arab  oil  cutoff  of  crude  and  prod- 
uct, according  to  a  November  15  National 
Petroleum  CouncU  report,  amounts  to  2 
million  barrels  a  day  of  crude  and  prod- 
uct, and  the  cutoff  will  be  increased  to  3 
million  barrels  a  day.  The  report  states 
thal^- 


December  19,  1973 


On  a  conservative  basis,  the  effect  of  a 
a-mUHon-barrel-per-day  cutoff  has  been  es- 
timated to  cause  an  annual  loss  of  48  bil- 
lion dollars  to  the  U  S.  economy  as  measured 
by  the  Oross  National  Product.  This  slow- 
down In  the  economy  would  cause  unemploy- 
ment to  Increase  from  the  current  45  to 
5.0  percent  level  to  over  8  percent.  The  pro- 
jected 3-mllllon-barreI-per-day  cutoff  would 
have  an  even  greater  Impact  and  could  push 
unemployment  up  to  the  7.6  to  8.0  range. 

IMPLICATIONS  r03  NATtnUl.  CAS  StJPPLT 

The  upshot  of  the  above  detailed  de- 
velopments is  that  efforts  must  be  made 
as  soon  as  possible  to  encourage  the 
development  of  domestic  supplies  of 
energy,  particularly  natural  gas. 

Thus,  the  question  is  what  is  the  best 
means  to  rapidly  increase  the  supplv  of 
natural  gas. 

Only  deregulation  of  new  gas  only,  is 
unsusceptible  to  reasonable  criticisms. 

It  is  also  the  option  which  is  most 
favored  by  qualified  academic  economists 
why  have  no  personal  financial  stake  in 
its  implementation. 

It  is  the  option  preferred  by  Federal 
agencies  responsible  for  energy  policy. 

It  is  the  option  which  has  precedent 
which  has  succeeded. 

It  is  the  only  option  which  would  elim- 
inate uncertainty  and  regulatory  delays. 
It  is   an  option  likely   to   achieve  a 
balance  of  supply  and  demand. 

It  Is  an  option  which  can — based  upon 
actual  precedent — guarantee  a  signif- 
icant increase  of  supply  while  affecting 
residential  and  commercial  consumers 
with  only  gradual  increases  in  gas  bills. 
It  is  an  option  which  can  promote  an 
effective  and  workable  industrial  switch 
to  other  fuels  than  gas. 

In  .inclusion,  let  me  repeat  that  this 
amendment  providing  for  the  deregula- 
tion of  new  natural  gas  supplies  consti- 
tutes the  last  opportunity  of  this  session 
to   induce  significant  Increases   in  the 


supply  of  energy  for  the  near  term.  It  is 
the  best  alternative  the  Congress  has  to 
relieve  the  shortages  Americans  now 
face.  I  urge  my  colleagues  to  give  this 
amendment  their  favorable  considera- 
tion. The  consequences  of  their  decisions 
will  be  major  indeed. 

Mr.  RIBICOFP.  Mr.  President,  if  no 
one  else  wishes  to  speak.  I  jneld  back  the 
remainder  of  my  tin\e:  and  I  move  that 
the  Buckley  amendment  now  pending  be 

tabled.  ^ 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  motion  of  the 
Senator  from  Connecticut  (putting  the 
question) . 

Mr.  BUCKLEY.  Mr.  President.  I  ask 
for  the  yeas  and  nays. 

The  yeas  and  nays  were  not  ordered. 
Mr.  BUCKLEY.  Mr.  President,  I  sug- 
gest the  absence  of  a  quorum. 

The  PRESmrNO  OFFICER.  The  clerk 
will  caU  the  roll. 

The  legislative  clerk  proceeded  to  call 
the  roll. 

Mr  RIBICOFF  Mr  President,  I  ask 
unanimous  consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  PRESIDING  OFFICER.  Without 
objection,  it  Is  so  ordered. 

Mr.  RIBICOFF.  Mr.  President.  I  ask 
for  the  yeas  and  nays. 

The  yeao  and  nays  were  ordered 
The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  motion  of  the 
Senator  from  Connecticut.  On  this  ques- 
tion the  yeas  and  nays  have  been  or- 
dered, and  the  clerk  will  call  the  roll. 
The  legislative  clerk  called  the  roll 
Mr.  ROBERT  C    BYRD.  I  announce 
that    the    Senator    from    Idaho     (Mr. 
Cmr»cH>.  the  Senator  from  Mississippi 
« Mr.  Eastland)  .  the  Senator  from  Alaska 
<Mr.  Gravid,  the  Senator  from  South 
Carolina  fMr.  Hollings).  and  the  Sen- 
ator from  South  Dakota  (Mr.  McGov- 
ERN)  are  necessarily  absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  (Mr.  Benkett),  the 
Senator  from  Tennessee  (Mr.  Bsock), 
the  Senator  from  Massachusetts  'Mr! 
Brooke),  and  the  Senator  from  Ohio 
(Mr.  Tktt)  are  necessarily  absent. 

The  Senator  from  New  Hampshire 
(Mr.  Cotton )  is  absent  because  of  Illness 
in  his  family. 

The  Senator  from  Maryland  (Mr.  M.a- 
THiAs)  and  the  Senator  from  Ohio  (Mr. 
Saxbe)  are  detained  on  oflQcial  business. 
If  present  and  voting,  the  Senator  from 
New  Hampshire  'Mr.  Cotton)  and  the 
Senator  from  Ohio  iMr.  Taft)  would 
each  vote  "nay." 

The  result  was  announced — yeas  45. 
nays  43,  as  follows: 


Riblcoff 

Scbwellcer 

Spkarkman 


Staffocd 

Stevenson 
Symlnjfton 

NAYS — 43 


Talmadge 

Tuoney 

WUliama 


AUen 

Baker 

Bartlett 

Beall 

Bellmen 

Bentsen 

BucXley 

Burdlck 

Byrd,  

Harry  P.  Jr.    Hriiaka 
CtJok  Johnston 

Curtis  iion« 

Dole  McClellan 

Domenlcl  McClure 

Domlnlck  McOee 


Fannin 

Pong 

Pulbrlght 

Ooldwater 

Qrlflln 

Oumey 

Hansen 

HatfleU 

Helms 


Metcalf 
Montoya 
Pack  wood 
Pearson 
Randolph 
Rotb 

Scott,  Hugh 
Scott. 

WUllamL. 
Stennls 
Stevens 
Thurmond 
Tower 
Welcker 
Young 

NOT  VOTING— 12 


Bennett 
Brock 
Brooke 
Church 


Cotton 
Eastland 
Gravel 
UoUlngs 


MathUs 
McGovern 
Saxbe 
Taft 


Abourezk 

Aiken 

Bayh 

Bible 

Blden 

B>-id.  Robert  C 

Cunnca 

Case 

Chiles 

Clark 

Cranston 

Eai;lpt>.'n 


(No.  601  Leg. I 

TEAS — 45 

Ervin 

Hart 

Hartkp 

Haskell 

Hathaway 

Ruddles  ton 

Ku3hes 

Humphrey 

Inouye 

Jackson 

Javlts 

Kennedy 


Magnuaon 

Uanafleld 

Mclntyre 

Mondale 

Moos 

Muskle 

Nelson 

Nunn 

Pa.^tore 

Peil 

Percy 

Froxrelre 


So  the  motion  to  table  Mr.  Buckley's 
amendment  was  agreed  to 

Mr.  STEVENSON.  Mr.  President  I 
move  to  reconsider  the  vote  by  which 
the  motion  to  lay  on  the  teble  the 
Buckley    amendment   was   agreed   to 

The  PRESIDING  OFFICER.  Is  there  a 
motion  to  table? 

Mr.  MANSFIELD.  Mr.  President  no 
motion. 

Mr.  BUCKLEY  and  several  other  Sen- 
ators requested  the  yeas  and  nays 

Mr.  MANSFIELD.  Mr.  President  I 
move  to  lay  that  motion  on  the  table 

The  PRESIDING  OFFICER.  The 
question  is  on  the  motion  to  lay  on  the 
table  the  motion  to  reconsider 

Mr.  HANSEN.  Mr.  President,  I  ask  for 
the  yeas  and  nays. 

The  yeas  and  nays  were  ordered 

The  PRESIDINO  OFFICER.  The  clerk 
will  call  the  roll. 

The  legislative  clerk  called  the  roll 
Mr.  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Idaho  (Mr 
Church),  the  Senator  from  Mississippi 
(Mr.  Eastlajtd)  .  the  Senator  from  Alaska 
(Mr.  Gravel),  the  Senator  from  South 
Carolina  (Mr.  Hollings).  and  the  Sen- 
ator from  Montana  (Mr.  Metcalf )  are 
necessarily  absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  (Mr  Bennett),  the 
Senator  from  Tennessee  (Mr.  Brock), 
the  Senator  from  Massachusetts  (Mr. 
Brook*)  .  and  the  Senator  from  Ohio  (Mr. 
Taft)  are  necessarily-  absent. 

The  Senator  from  New  Hampshire 
(Mr.  Cotton)  Is  absent  because  of  Illness 
In  his  family. 

The  Senator  from  Maryland  (Mr. 
Mathias)  and  the  Senator  from  Ohio 
'  Mr.  Saxbe)  are  detained  on  oCQcial  busi- 
ness. 

If  present  and  voting,  the  Senator  from 
New  Hampshire  (Mr.  Cotton)  and  the 
Senator  from  Ohio  'Mr.  Taet)  would 
each  vote  "nay  " 

The  result  was  announced — yeas  47. 
nays  41.  as  follows: 

(No    602  Leg.] 
YE.\S--47 


Abourezk 
Alkan 


Bayb 

Bible 


BIden 

Byrd.  Robert  C. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42483 


Cannon  Inouye  Pastore 

Case  Jackson  Pell 

Chiles  JaviU  Percy 

Clark  Kennedy  Proxmtre 

Cranston  Long  Riblcoff 

Eagleton  Magnuaon  Schwelker 

Krvtn  Mansfield  ^Mutoian 

Hart  McOovem  Stafford 

Hartke  Mclntyre  Stevenson 

Haskell  Mondale  Symington 

Hathaway  Moss  Talmadge 

Huddleston         Muskle  Tunney 

Hughes  Nelson  WUIlams 

Humphrey  Nunn 

NATS— 41 

Pannln  Pack  wood 

Pong  Pearson 

Fulbrlght  Randolph 

Ooldwater  Roth 

OrUBn  SooCt,  Hugh 

Oumey  Scott, 
Hansen  William  L. 

Hatfleld  Stenuls 

Helms  Stevens 


Thurmond 
Tower 
Welcker 
Young 


AUen 
Baker 

Bartlett 

Beall 

Bellmon 

Bentsen 

Buckley 

Burdlck 

Byrd.  

Harry  P.,  Jr.     Hruska 
Cook  Johnston 

CurtU  McCIolUn 

Dole  McClure 

Domenlcl  McOee 

Domimck  Montoya 

NOT  VOTING— 12 
Bennett  Cotton  Mathias 

Brock  EasUand  Metcalf 

Brooke  Gravel  Saxbe 

Chvu-ch  Hollings  Taft 

So  Mr.  Mansfield's  motion  to  lay  on 
the  table  Mr.  Stevenson's  motion  to  re- 
consider was  agreed  to. 

Mr.  DOMENICI.  Mr.  President,  this 
bill  represents  one  of  the  truly  signifi- 
cant ste(>s  in  this  Nation's  movement 
toward  energy  independence.  It  estab- 
lishes a  focal  point  in  the  Federal  Gov- 
ernment for  all  the  Federal  Govern- 
ment's operational  activities  required  to 
Insure  that  adequate  provision  is  made 
to  meet  the  energy  needs  of  the  Nation 
for  the  foreseeable  future.  Specifically, 
it  provides  that  the  agency  it  creates,  the 
Federal  Energy  Administration,  will 
plan,  dii^ect,  and  conduct  programs  re- 
lated to  the  production,  conservation, 
use,  control.  dLstrlbution,  and  allocation 
of  all  forms  of  energy. 

For  those  purposes,  the  bill  provides 
for  the  transfer  of  many  important  en- 
ergy related  functions  now  charged  to 
various  Federal  agencies.  While  some 
may  feel  that  this  is  an  excessive  con- 
centration of  power  and  authority,  I  am 
of  the  opinion  that  any  less  comprehen- 
sive approach  would  be  insufficient  to 
meet  the  commitment  required. 

We  must  have  the  capacity,  which  this 
bill  would  provide,  for  the  machinery  of 
the  Federal  Government  in  its  totality  to 
be  devoted  to  the  goal  of  energy  inde- 
pendence we  have  set  for  ourselves,  a 
goal  we  have  established  only  after  the 
frightening  consequences  of  our  previous 
haphazard  course  had  been  so  vividly  re- 
vealed to  us  by  the  Arab  oil  embargo. 
Perhaps,  as  many  of  my  constituents 
point  out  in  correspondence  with  me, 
that  embargo  will  turn  out  to  be  a  bless- 
ing in  disguise,  being  as  it  was  the  cata- 
lyst that  has  galvanized  us  into  action 
with  a  new  purpose,  with  an  Identifiable 
goal. 

So.  Mr.  President.  I  Intend  to  support 
this  bill  as  I  have  other  emergency  meas- 
ures passed  by  this  body  and  still  pend- 
ing before  It.  It  provides  that  focus  of 
leadership  and  emphasis  so  necessary  to 
any  difficult  undertaking  and  without 
which  our  hiitial  efforts  are  Ifcely  to  fail. 


I  will  .-lipport  leKisJaiion  which  wiii  make 
this  arrangement  of  go\emmeni  capacity 
more  permanent  and  more  adaptable  to 
longer'terni  siiualions. 

Mr.  President,  in  addition  to  the  focal 
point  lor  Federal  energy  activity  this  bill 
provides,  I  find  other  pouius  I  endor.-.e. 
One  of  these  is  a  provision  which  ad- 
dresses a  subject  to  which  I  have  devoted 
much  time  and  attention.  In  consiaer- 
atlon  of  all  energy  conservation  meas- 
ures, I  have  consistently  stressed  the  need 
for  flexibility— that  is,  the  recognition 
that  there  will  surely  exi.>t  unique  or  un- 
usual circumstances  and  conditions  just- 
ifying different  approaches  than  might 
be  implemented  otherwi.se.  As  difficult  as 
it  is  to  achieve,  I  am  convinced  that  the 
principles  of  fairness  and  equity,  which 
must  be  the  basis  of  all  government  ac- 
tion, require  flexibility  in  our  conserva- 
tion programs.  * 

The  flexibiUty  I  have  referred  to  thus 
far,  Mr.  President,  is  in  the  conception 
and  implementation  of  energy  conserva- 
tion programs,  while  the  provision  of  this 
bill  which  I  feel  maintains  that  theme  of 
fairness  and  equity  is  section  121,  the 
section  creating  the  Office  of  Private 
Grievances  and  Redress. 

This  office  would  serve  the  extremely 
desirable  purpose  of  providing  a  separate 
and  identifiable  place  within  the  admin- 
istration to  which  any  person  could  ap- 
ply for  relief  or  redress.  This  is  neces- 
sary, even  with  the  flexibility  in  cwicep- 
tion  and  implementation  I  mentioned 
earlier,  because  there  is  no  way,  in  a 
society  as  complex  as  ours,  to  determine 
in  advance  just  how  each  new  measure 
may  affect  each  and  every  segment  of 
the  economy.  It  Is  essential  that  a  means 
be  provided  in  advance  by  which  private 
grievances  may  t«  heard  and  dealt  with 
according  to  their  merits  and  in  order  to 
avoid  a  disproportionate  burden  on  any 
individual  or  group. 

Mr.  President,  I  am  a  firm  believer  in 
the  American  people  and  their  unselfish 
willingness  to  endure  hardships  and  dis- 
comforts in  the  national  interest.  I  am 
convinced  that  if  the  American  people 
know  that  there  is  flexibility  in  the  de- 
sign of  national  programs  and  relief  in 
the  event  of  undue  hardship,  they  will 
support  the  Government's  efforts  to  con- 
serve energy  while  we  find  more,  all  to- 
ward the  ob.iectlve  we  can  all  support — 
true  energj'  independence. 

Mr.  President.  I  commend  the  Com- 
mittee on  Government  Operations  and 
urge  my  colleagues  to  support  this  bill 
and  make  known  its  unique  provision  for 
redress  of  private  grievances. 

Mr.  MUSKIE.  Mr.  President.  I  am 
pleased  to  rise  in  support  of  S.  2776,  the 
urgently  needed  legislation  to  establish 
a  new  Federal  Energy  Emergency  Ad- 
ministration. 

This  legislation  was  piven  careful  and 
expeditious  handling  by  the  Committee 
on  Government  Operations  during  the 
past  10  days.  I  wish  particularly  to  com- 
mend the  distinguished  chnirman  of  the 
Committee  on  Government  Operations 
'Mr.  Ervin )  and  the  distinguished  senior 
Senator  from  Connecticut  (Mr.  Rrsi- 
coFF)  for  their  outstanding  leadership 
in  the  development  of  this  legislation. 
Mr.   President,  like  all  Americans,   I 


weicome  the  administration's  effort  to 
bring  some  order  out  of  the  administra- 
tive chaos  which  presently  pervades  the 
Federal  Government's  efforts  to  deal 
with  the  energy  crisis.  But  as  a  Senator 
representing  a  State  whose  residents  may 
be  cruelly  affected  by  fuel  shortages  this 
•>>.  inter,  I  also  recognize  that  no  mode  of 
organization,  or  reorganization,  will 
alone  solve  so  complex  a  problem. 

As  we  learned  during  the  energy- 
scarce  years  of  World  War  U.  programs 
of  this  kind  worked  only  wiili  full  pub- 
lic support.  And  for  the  people  to  sup- 
port efforts  to  combat  the  energy  crisis, 
they  must  be  told  the  whole  truth  about 
the  nature  of  that  crisis.  They  must  be 
assured  that  the  Government  in  its  ef- 
fort to  deal  with  the  crisis,  will  treat 
everyone  equally. 

Mr.  President,  in  its  consideration  of 
S.  2776,  the  Committee  on  <3ovemment 
Operations  approved  several  safeguards 
to  assure  that  the  Impact  of  the  energy 
crisis  and  Government  efforts  to  combat 
it  will  be  better  known  and  more  fair. 
Supplied  by  the  a<kninistratlon  with  a 
reorganization  bill  which  would  have 
granted  considerable  powers  beyond 
those  necessary  to  deal  with  the  energy 
emergency  to  a  new  Federal  Energy  Ad- 
ministration, the  committee  imdertook 
to  tailor  this  legislation  to  meet  the  cri- 
sis that  is  at  hand. 

First,  the  committee  rewrote  this  leg- 
islation to  create  a  Federal  Energy 
Emergency  Administration— A  Federal 
agency  to  deal  specifically  with  the  en- 
ergy emergency  during  the  next  18 
months. 

Second,  the  committee  took  specific 
steps  to  prohibit  the  President  from 
transferring  to  the  new  FEEA  programs 
now  operated  by  other  Federal  agencies 
unless  both  Houses  of  Congress  approve. 
As  originally  proposed  by  the  adminis- 
tration, this  legislation  would  have 
granted  the  President  unprecedented 
authority  to  transfer  existing  programs 
to  the  FEE:a.  The  committee's  action  to 
curb  that  power  represents  an  important 
step  in  the  reassertion  of  congressional 
prerogative  to  determine  national  energy 
policy. 

Third,  the  committee  gave  the  Admin- 
istrator of  the  FEEA  subpena  powers  if 
necessary  to  obtain  full  and  complete  in- 
formation as  he  deems  it  necessarj-  from 
the  oil  companies.  And  it  further  pro- 
vided for  public  disclosure  cf  significant 
information  that  does  not  involve  the 
trade  secrets  of  the  oil  companies.  There 
is  nothing  more  essential  to  our  efforts  to 
combat  the  energy  crisis  than  the  power 
to  obtain  from  the  oil  compai.ies  infor- 
mation about  the  severity  of  the  emer- 
gency— information  those  companies 
have  thus  far  refused  to  supplv-.  The  in- 
formation and  disclosure  amendments 
added  by  the  committee  are  an  impor- 
tant step  toward  obtaining  that  vital  in- 
formation and  provide  an  import.ant 
safeguard  to  a;sure  that  ♦he  public  vtill 
t>e  well  Informed  about  the  state  of  the 
crisis  and  efforts  to  der,l  with  it. 

Fourth,  th3  conmiittee  added  amend- 
ments to  insure  that  State  a::id  local  gov- 
ernments, which  bear  major  responsibil- 
ity in  implementing  emergency  energy 
policies — are  invclved  in  a  detisionmak- 


iiMvt 


CONGRESSION  A I .   H  U  i  )  K  D       ^  i  \  a  1 1 


ing  process  from  which  those  policies 
emanate.  The  committee  also  added  pro- 
visions to  assure  that  the  FEEA  suppLes 
the  States  and  locajitles  with  relevant  in- 
formation It  possesses  and  to  afford  tech- 
nical assistance  to  State  and  local  gov- 
ernments m  need  of  help  to  combat 
emergency  energy  problems. 

Fifth,  the  committee  required  the'Ad- 
mmlstrator  of  the  FEEA  to  make  regular 
reports  about  the  ectmomic  impcM;t  of  the 
decisions  he  makes. 

Sixth,  the  committee  granted  the 
chairman  and  Director  of  the  Cost  of 
Living  Council  a  veto  over  pohcies  pro- 
mulgated by  the  Administrator  of  the 
FEEA  which  would  cause  a  rise  in  the 
cost  of  energy 

All  of  these  amendments  added  by  the 
Committee  on  Government  Operations 
provide  Important  public  protecUons  in 
the  process  by  which  the  Federal  Gov- 
ernment combats  the  energy  emergency. 
To  be  sure,  in  some  areas,  we  need  even 
further  safeguards  to  protect  the  Amer- 
ican people  from  emergency  energy  pol- 
icies'that  would  benefit  the  few  at  the 
expense  of  the  many  That  is  why  I  have 
jomed  Senator  Mondalk  in  an  amend- 
ment to  place  price  controls  on  petrcleum 
products. 

Mr.  President.  S.  2776.  as  reported  by 
the  Committee  on  Government  Opera- 
tions. IS  a  well-thought-out  and  neces- 
sary measure.  It  will  allow,  for  the  first 
time,  the  Admmistration  to  concentrate 
Its  resources  on  combating  the  energy 
emergency,  but.  at  the  same  time,  it  in- 
cludes necessary  safeguards  to  protect 
the  American  people  from  unwise  or  se- 
cret government  actions.  It  deserves 
prompt  and  favorable  consideration  by 
the  Senate. 

Mr.  METCALF  Mr.  President,  the 
Government  Operations  Committee  has 
acted  re-poasibly  and  promptly  in  bring- 
ing this  legislation  to  the  floor,  with  the 
unanimous  support  of  all  of  its  members 
2  we*ks  after  the  administration  re- 
quested legislation. 

The  committee  has  made  several 
smiincant  changes  in  the  bill  which 
reflect.  I  believe,  the  attitude  of  a  strong 
bipartisan  rr.a.'ority  in  the  Congress. 

First,  we  have  clearly  limited  authority 
under  the  act  so  that  the  Administrator 
of  this  new  emergency  agency  cannot 
assume  statutory  authority  which  resides 
in  other  oCtcials.  For  example,  the 
Ad-7iinistrator  will  not  be  able  to  take 
over  the  coal  leasing  and  Outer  Con- 
tinental Shelf  leasing  programs  over 
which  the  Secretery  of  the  Interior  has 
statutory  authority 

Second,  we  provided  for  a  veto,  by  the 
head  of  the  Cost  of  U\1ng  Council,  of 
enercy  pnce  mcreases  proposed  by  the 
Administrator.  The  administration  has 
so  far  been  too  much  Inclined  to  let 
energy  prices  skyrocket,  on  the  highly 
quesUonable  grounds  that  those  price  In- 
crea.se«  lerd  to  larger  suppUes.  Our  con- 
'tuuents  need  to  have  the  Cost  of  Living 
Council  in  there  with  veto  power  for  price 
protection. 

Third,  the  bill  will  help  open  ud  some 
of  the  committees  which  provide  high- 
level  miormation  and  policy  guidance 
for  the  Government.  Six  companies  now- 
each  have  membership  on  more  than  20 
5'jch   advisor/   and   action   committees 


These  producer  represenUUves.  under 
this  bill,  will  be  joined  by  user  repre- 
sentatives, and  representatives  of  State 
and  local  governments. 

Fourth,  the  bill  will  place  respon- 
sibility for  any  exemption  from  conflict- 
of-interest  statutes  In  a  speclfled  oflBclal 
at  the  top  of  the  agency.  Furthermore 
every  exemption  from  the  conflict-of-in- 
terest statute  must  be  a  matter  of  pub- 
lic record,  including  detailed  reasons 
and   justmcatlons  for  each  exemption. 

X>uring  World  War  II.  when  Ed  Falck 
was  brought  In  from  Consolidated  Edi- 
son to  nm  the  OfDce  of  War  Utilities,  he 
had  to  resign  from  Con  Ed,  and  go  on 
the  Government  payroll. 

Similarly,  all  top  policy  determining 
Jobs  were  held  by  Government  employees 
on  Government  payroll. 

No  dollar-a-year  man  could  make  any 
important  policy  decision. 

Today  we  have  to  be  especially  on 
guard  to  prevent  Industry  takeover  of 
energy  administration. 

We  have  several  hundred  "executive 
reservists"  from  big  oil  companies — the 
emergency  petroleum  and  gas  adminis- 
tration shadow  government — already 
partially  mobilized. 

Eight  of  the  big  oil  companies  domi- 
nate this  executive  reser%e.  each  having 
from  10  to  24  ofDclais  In  this  organl2a- 
tion 

We  hive  this  revolving  door  svndrome 
down  in  the  Interior  Department— 
especlaUy  in  the  Office  of  Oil  and  Gas 
which  under  this  biU  Is  being  transferred 
toFEA. 

The  Director  of  Interior's  Office  of  Oil 
and  Gas  went  to  Lone  Star  Gas  Co  He 
was  succeeded  by  a  Conoco  mair. 

An  attorney  for  Pennzoil  replaced  the 
Assistant  Secretary  of  Interior  for 
Mineral  Resources,  who  retired  to  an  At- 
lantic Richfield  afmiate. 

The  Intent  of  S  2776  is  to  limit  and 
pubUcize  any  such  potential  conflicts  of 
interest  within  this  program. 

Fifth,  this  bill  gives  both  the  Adminis- 
trator and  the  Congress  power  to  obtain 
information  which  it  needs  from  energy 
industries.  As  my  colleague  from  Mon- 
tana .Mr.  MANsriELDi  has  pointed  out 
the  Government  and  the  people  have  a 
right  to  see  the  books  of  oil  companies 
This  legislation  provides  that  authority 
and  more.  It  prohibits  the  Office  of  Man- 
agement and  Budget  from  impeding  the 
Administrator's  requests  for  company 
daU.  The  General  Accounting  Office  will 
have  full  access  to  energy  information 
And  the  Administrator  is  obligated  to 
pubhclze  and  tabulate  energy  company 
information  and  data  so  it  Is  of  maxi- 
mum value  to  other  Federal  agencies  and 
the  public. 

Mr  President.  I  want  to  provide  Mem- 
bers with  Information  about  some  of  the 
important  energy  committees  which 
hive  been  operating  outside  the  law,  and 
which  would  be  required  to  operate  In  a 
lawful  manner  under  S.  2776. 

The  Subcommittee  on  Budgeting 
Management,  and  Expenditures  has  been 
closely  monitoring  the  acUvlties  of  the 
National  Petroleum  Council,  its  commit- 
tees, and  subcommittees.  It  has  collected 
a  great  deal  of  information  on  the  NPC. 
some  of  which  was  included  In  the  ad- 
visory committee  record  compiled  by  the 


December  19,  1973 


Government  Operations  Subcommittees 
on  Intergovernmental  Relations  and 
Budgeting,  Management,  and  Expendi- 
tures. 

On  December  17.  1973,  the  National 
Petroleum  Council  s  Committee  on  Emer- 
gency Preparedness  met  in  the  Treasury 
Department.  The  National  Petroleum 
CouncU,  according  to  the  President's  first 
annual  report  on  advisory  committees 
Is  an  advisory  committee  The  Emer- 
gency Preparedness  Committee  Is  a  com- 
mittee of  the  National  Petroleum  Coun- 
cil, which  prepares  recommendations  for 
both  the  full  council  and  the  Govern- 
ment. I  ask  unanimous  consent  that  a 
copy  of  the  preparedness  committee 
membership  list  be  printed  in  the  Rxcord. 
There  being  no  objection,  the  list  was 
ordered  to  be  printed  In  the  Record  as 
follows : 

Exhibit  A 
Natxonax.  Prr«OLrmf  Cocwcn,  CoicifrrTTX 

ON  KitniGCifCT  PiirAaxDtfxas 
Chairman    Carroll  M.  Bennett.  Chairman 
of  the  Board.  Texas  Pacific  Oil  Company,  Inc  . 
1700  One  Main  Place.  Dallas.  Texas  76250 

Vlc«  Chairman  M  A  Wright.  Chairman 
and  Chief  Executive  Offlcer.  Exxon  Company 
U  S.A..  Poat  Office  Box  2180.  Houston.  Texas 
77001. 

Ex  officio:  H.  R.  True,  Jr..  Chairman,  Na- 
tional Petroleum  Council,  c  o  True  OU  Com- 
pany. Poet  Office  Drawer  2360.  Casper  Wvo- 
mlng  82601. 

Cochalrman:  Hon.  Stephen  A.  WakeOeld 
AMisUnt  Secretary  for  Energy  and  Minerals! 
yJS.  Department  of  the  Interior.  Washing- 
ton. DC.  20340. 

Secretary:  Vincent  M.  Brown.  Executive 
Director.  National  Petroleum  CouncU,  1625 
K  Street.  NW..  Washington.  DC.  20006. 

Ex  officio:  Robert  O.  Dunlop.  Vice  Chair- 
man. National  Petroleum  Council,  c/o  Sun 
OU  Company.  240  Radnor -Chester  Road  St 
Davids,  Pennsylvania  19087. 

Special  assistant  to  the  chairman:  Harry 
Green.  General  Manager.  Administrative 
Services.  Texas  Pacific  Oil  Company,  Inc., 
1700  One  Main  Hace.  Dallas.  Texas  75260. 

Orln  E.  Atkins.  Chairman  and  Chief  Exec- 
utive Offlcer.  Ashland  OU.  Inc  .  Poet  Office 
Box  391.  Ashland.  Kentucky  41101 

H  Bridges.  President,  Shell  OU  Company. 
One  Shell  Plaza.  Houston.  Texas  77002. 

B  R.  Dorsey.  Chairman  of  the  Board.  OiUf 
Oil  Corporation.  Gulf  Building.  Pittsburgh 
Pennsylvania  15230.  ' 

Richard  J.  Gonzalez.  48  Tiel  Way.  Hous- 
ton. Texas  77019. 

B.  D  Goodrich.  Chairman  of  the  Board, 
Texas  Eastern  Transmission  Corp  .  Post  Of- 
fice Box  2521.  Houston.  Texas  77001. 

Maurice  P.  Granville.  Chairman  of  the 
Board.  Texaco  Inc  .  138  East  42nd  Street  New 
York.  New  York  10017. 

Jake  L  Hamon.  OU  and  Gas  Producer  Post 
Office  Box  663.  Dallas.  Texas  76221. 

John  A.  Kaneb.  President.  Northeast  Petro- 
leum Industries.  Inc.,  296  Eastern  Avenue, 
Chelsea.  Massachusetts  02150. 

W.  F  Martin.  President.  PhUllps  Petroleum 
Company.  PhUllps  Building.  BartlesvUle 
Oklahoma  74003 

William  A.  Lockwood.  Senior  Vice  Presi- 
dent, First  National  City  Bank  of  New  York. 
399  Park  Avenue.  New  York,  New  York  10022. 
Harold  M.  McClure.  Jr..  President.  McClure 
OU  Company.  Post  Office  Box  147,  Alma 
Michigan  48801. 

C.  B  McCoy.  Chairman  of  the  Board.  E.  I. 
duPont  de  Nemours  &  Company,  Inc.,"  Wil- 
mington. Delaware  19898. 

D  A  McOee  Chairman.  Kerr-McOe«  Cor- 
poration. Kerr-McOee  Center.  Oklahoma  City 
Oklahoma  73103. 

E    Clyde  McOraw.  Chairman  of  the  Board. 


December  19,  1978 


CONGRFSSIONAL  RECORD—  SENATE 


42485 


Tranaoontlnental  Gas  Pipe  Une  Corp  .  Post 
OfBoe  Box  1396,  Houston.  Texas  77001. 

Tom  B  Medders,  Jr..  Immediate  Past 
Pre«Ui»nt.  Independent  Petroleum  Associa- 
tion of  America,  c/o  Medders  Petroleum  Cor- 
poraUon.  414  City  National  Building,  Wichita 
Falls.  Texas  78301. 

O.  N.  MUler.  Chairman  of  the  Board, 
Standard  OU  Company  of  California,  225 
Bush  Street,  Saa  FrancLsoo.  California  94104. 

Roljert  V  Sellers.  Chairman  of  the  Board. 
ClUes  Service  Company,  60  Wall  Tower  New- 
York,  New  York  10006. 

John  E.  Swearlngen.  Chairman  of  the 
Board.  Standard  OU  Company  (Indiana). 
200  East  Randolph  Drive,  Chicago,  minols 
60601. 

Rawlelgh  Warner.  Jr.  Chairman  of  the 
Board.  MobU  OU  Corporation.  160  East  42nd 
Str»et.  New  York.  New  York  10017. 

Mr.  METCALF.  Mr.  President,  the  Na- 
tional Petroleum  Council's  stated  purpose 
Is  to  advise  the  Secretary  of  the  Interior 
and 'or  the  Director  of  Interior's  Office  of 
Oil  and  Gas — which  is  being  transferred 
to  FEEA  under  S.  2776 — on  any  matter 
relating  to  petroleum  or  the  petroleum 
industiT.  On  December  11,  1973,  Mr.  Vin- 
cent M.  Brown,  executive  director  of  the 
National  Petroleum  Council,  wrote  to 
Stephen  Wakefield,  Assistant  Secretary 
of  the  Department  of  Interior  for  En- 
ergy and  Minerals.  In  his  letter,  Mr. 
Brown  re^juested  approval  for  a  meeting 
of  the  NPC's  Committee  on  Emergency 
Preparedness,  to  be  scheduled  for  Mon- 
day. December  17,  1973.  The  location  was 
not  agreed  upon  at  that  time.  The  letter 
'exhibit  B»  also  Indicated  a  tentative 
agenda.  I  ask  unanimous  consent  that  the 
letter  appear  at  this  point  in  the  Record. 

There  being  no  objection,  the  letter 
was  ordered  to  be  printed  in  the  Record. 
as  follows: 

National  Petroixtm  CotrNciL, 

December  11, 1973. 
Hon.  Stzfkzn  A.  Wakefield. 
Assistant  Secretary  for  Energy  and  Minerals, 
U.S.  Department  of  the  Interior,  Wash- 
ington, D.C. 

Dear  Mr.  Wakefield:  Mr.  Carrol  M.  Ben- 
nett. Chairman  of  the  NPC  Committee  on 
Emerge.icy  Preparedness,  wishes  to  hold  a 
meeting  of  his  group  on  Mouday.  December 
17.  1973  In  Washington.  D.C.  starting  at 
1:00  pm  The  exact  location  has  yet  to  be 
agreed  upon  between  members  of  the  staffs 
of  the  National  Petroleum  Council  and  the 
Office  of  OU  and  Gas. 

Pursuant  to  Article  14  of  the  Articles  of 
Organization  of  the  Council,  yotir  approval 
Is  requested  for  the  holding  of  this  meet- 
ing, as  well  as  for  the  following  agenda  for 
this  session: 

1.  Opening  Remarks — Cnrrol  M.  Bennett, 
Chairman. 

2.  Remarks  by  William  E.  Simon,  Admln- 
Istmtor,  Federal  Energy  Office. 

3  Review  and  Dlscvis«<  November  30.  1973 
Letter  from  Secretary  Rogers  C.  B    Morton 

4  Discuss  Timetable  for  Completion  of 
Committee's  Assignment. 

5.  Discuss  Any  Other  Matters  Pertinent  to 
the   Overall   Assignment   of   the   Committee. 
Sincerely. 

Vincent  M.  Brown 

Mr.  METCALF.  Mr.  President,  the  Sub- 
commlttee  on  Budgeting,  Management, 
and  Expenditures  has  collected  a  great 
deal  of  Information  on  the  Council  and  Its 
activities,  pursuant  to  Its  oversight  re- 
sporLsibllity  for  ad\  Isory  committees.  The 
letter  was  one  of  the  items  made  avail- 
able to  the  subcommittee  on  Friday,  De- 
cember 14. 


That  Friday,  a  call  to  the  NPC  revealed 
that  the  meeting  place  had  been  agreed 
upon — room  4426  Main  Treasury.  A  staff 
member  of  the  NPC  was  informed  that  a 
professional  stiff  member  of  the  subcom- 
mittee would  attend.  No  problem  was  an- 
ticipated in  having  the  committee  staff 
member  attend. 

On  Monday,  December  17.  the  Federal 
Repister  carried  a  notice  of  the  meeting. 
Exhibit  C)  It  was  signed  on  "Thursday. 
December  13,  submitted  to  the  Federal 
Register  on  Decem'.ier  14,  and  published 
on  December  17,  the  day  of  the  meeting. 
I  ask  unanimous  consent  that  the  notice 
apre  r  at  this  point  In  the  Record. 

There  being  no  objection,  the  notice 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 

EXHIPTT    c 

COMMITTEK  ON  EMEaCENCT  PnEP.\RErNESS, 

NatIONM,  PnSOLKtTK  COUNCIL 

Nc4lCE     or     MEETING 

Pursuant  to  Lce-:ut!-e  Order  11886.  notice 
is  hereoy  given  m  the  following  meeting: 

The  Committee  on  Emergency  Prepared- 
ness of  the  National  Petrcleum  Council  will 
meet  at  1:00  p.m.  on  Monday.  December  17, 
1973.  The  exact  location  of  this  meeting  has 
not  ;  et  been  determlr.ed  but  Inquiries  may 
be  directed  tc  the  Director  of  Information. 
The  National  Petroleum  Coun-U,  Washington. 
DC,  telsohone  393-6100  The  proposed  agen- 
da includes  remnrlcs  by  the  Chairman  of  the 
Committee,  the  Honorable  William  E  Simon. 
Adm!nl=tMt3r.  Pe:ieral  Enerey  Office,  discus- 
sion of  a  work  schedule  to  carry  out  the 
£:udy  rec,ueEted  by  the  Secretary-  of  Interior 
on  November  30,  1973,  and  ctter  pertinent 
metiers. 

The  purpose  cf  the  National  Petroleum 
Council  Is  solely  to  advice,  inform  and  mate 
recammendatlons  to  the  Secretary  of  the  In- 
terior on  anv  matter  relatlne  to  petrrleum 
or  the  petroleum  Industry.  The  meeting  Is 
open  tD  the  public  to  the  extent  that  the 
determined  facilities  wUl  permit. 

Ben  TAroTA. 
Indiistriil  Specialist. 

DCCCMBCR  13,  1973. 

;PP-  Dec.  73-26716  FUed  12-14-73.  8:45  am] 

Mr.  METCALF.  Mr.  President,  the  no- 
tice itself,  when  viewed  a«{atnst  an  ideal 
notice  under  the  Federal  Advisory  Com- 
mittee Act,  has  several  deficiencies : 

First,  the  notice  is  Issued  pursuant  to 
Executive  Order  11686.  Ti-.is  Executive 
order,  designed  to  delegate  responsibili- 
ties of  the  President  under  the  Federal 
Advisory  Committee  Act.  does  not  have 
any  provision  for  such  notice.  On  the 
other  hand,  section  10<a>  i2i  of  the  Fed- 
eral Advisory  Committee  Act  does  have 
a  notice  requirement. 

Second,  the  OMB  guidelines  require 
that,  except  In  certain  rare  instances, 
a  minimum  of  7  days  notice  in  the  Fed- 
eral Register  should  be  given.  Certaiiilj-, 
a  notice  in  the  Register  on  the  same  day 
of  the  meeting  does  not  meet  the  require- 
ments. 

Third,  the  Federal  Repister  notice  Is 
signed  by  "Ben  Tafova  Industrial  Spe- 
cialLst."  Mr.  Tafoya  is  with  the  Office 
of  Oil  and  Gas.  and  serves  as  secretary 
to  several  of  the  Office  of  Oil  and  Gas 
advisory  committees. 

Fourth,  although  the  agenda  is  Includ- 
ed In  the  notice,  it  appears  that  William 
Simon  Is  chairman  of  Uie  committee. 
This  is  erroneous.  The  cochalrmen  are 
Carrol  M.  Bennett,  board  chairman  of 
Texas  Pacific  OH  Co..  and  Assistant  Sec- 


retary of  the  Interior,  Stephen  A.  Wake- 
field. 

THZ  MEETDta 

Chairman  Carroi  Bennett  called  the 
meeting  to  order.  After  some  opening 
remarks,  item  2 — remariis  by  Mr.  Si- 
mon— was  delayed. 

Agenda  item  No.  3  was  listed  as  a  re- 
view and  discussion  of  a  November  30, 
1973,  letter  from  Secretary  Morton  to 
NPC  Chairman  H.  A.  True. 

Although  no  copy  of  the  letter  was 
available,  after  discussion  with  the  NPC 
staff,  Mr.  Chvotkin  of  my  subcommittee 
staff  found  that  the  letter  requested  the 
NPC  to  establish  a  new  subcommittee, 
entitled  the  Emergency  Industry/Gov- 
ernment Cooperation  Subcommittee,  to 
help  Interior  plan,  organize,  and  staff  the 
Office  of  Petroleum  Allocation.  Under  S. 
2776.  OPA  will  be  transferred  to  the 
FEEA. 

An  unidentified  industry  speaker,  dis- 
cussing the  Morton  letter,  indicated  that 
the  nimiber  and  types  of  positions  had 
already  been  decided.  Adalllonal!y.  each 
position  had  a  job  description  which  was 
'sufficiently  flexible"  to  allow  latitude 
on  behalf  of  the  Government.  These  In- 
dustry people  could  then  participate  in 
the  Office  of  Petroleum  Allocation,  pro- 
dding the  Office  of  Oil  and  Gas  could 
get  the  legal  clearance.  Once  this  clear- 
ance was  obtained,  the  .NPC  could  be 
used  to  assign  these  slots  to  the  various 
companies. 

Assistant  Secretar>-  of  the  Interior 
Stephen  Wakefield  indicated  that  the 
various  antitrust  and  conflict  of  interest 
provMons  currently  in  the  various  en- 
erg:,-  bills  before  the  Congress  were  not 
acceptaJ3is,jWrBriuEing  these  individuals 
into  tlie  Government. 

Vince  Brown,  of  NPC,  Indicated  that 
the  original  structure  of  the  Office  of 
Petroleum  Allocation  was  deposed  by 
Admiral  Reich.  It  was  a  type  of  national, 
regional,  and  State  organization  that 
could  be  used  if  the  energy  crisis  i-eached 
the  allocation  stage.  In  that  case,  if 
drafting  of  industrj-  people  was  foimd 
de-irable.  NPC  could  be  "helrifiii  in  fill- 
ing positions"  by  recommendir^  key 
personnel,  but  again  reiterated  the  need 
for  protection  from  conflicts  df  interest. 
There  was  unanimous  Eigre«nent  from 
the  committee  on  this  point. 

After  some  discussion.  Mr  Brown  said 
that  it  took  approximately  4  years  for 
the  NPC  to  develop  the  structural  model 
of  the  Emergency  Petroleum  and  Gas 
Administration  iEPGA>.  and  only  a  Ht- 
tle  wa>  needed  to  bring  that  mxlel  into 
line  with  the  current  needs.  My  com- 
ments about  EPG.\  and  its  dominatkai 
by  large  oil  companies  appear  in  the 
November  27  Concrkssional  Record  be- 
ginning on  page  38142 

After  some  brief  remarks  from  Chair- 
man Bennett.  Administrator  Simon  join- 
ed t,he  meeting  .Mter  a  few  introductory 
words,  he  proceeded  to  questions.  Some 
of  his  brief  remarks  bear  noting. 

He  expressed  his  frustration  and  dis- 
grust  at  the  current  status  of  energy  bills 
in  the  Congress,  and  Indicated  that  if 
aiy  one  of  appro.ximately  20  amend- 
ments appeared  in  the  final  lecislation. 
he  would  recommer.d  a  Presidential  veto. 
He   felt   he  had   sufficient   pon-er   to 


12486 


CONGRESSION  AL  RiCURD  —  st.N A  1  !• 


December  19,  197.^ 


operate  now  without  legislation,  with 
cooperation  from  Indxistry  and  the 
American  people. 

Alter  a  question.  Mr.  Simon  indicated 
that  conflict-of-interest  provlfiloDA  were 
not  in  any  of  the  legislation. 

He  Indicated  that  if  he  tried  to  bring 
in  250  oil  people,  labor  would  "go  tlirough 
the  roof."  He  recognized  that  such  a 
draft  of  industry  people  would  not  "fly 
politically  ■'  He  would  have  to  see  if  he 
could  devise  another  way  to  utilize  the 
oil  industry,  including  advisory  commit- 
tees. 

A  question  was  raised  about  the  NPC. 
"The  NPC  is  in  a  state  of  confusion,"  the 
unidentified  individual  stated.  The  NPC 
bylaws  provide  that  the  NFC  advise  the 
SecreUry  of  the  Interior  and  the  Direc- 
tor of  the  OfiBce  of  Oil  and  Gas.  'What 
is  the  NPC  position  now:""  he  asked.  Mr. 
Simon  replied  that  when  the  Office  of 
Oil  and  Gas  moves  to  FEEA.  NPC  wUl 
go  too.  In  the  meantime.  Secretary  Mor- 
ton would  designate  the  National  Petro- 
leum Council  to  coordinate  with  Simon. 
Legally.  Simon  saw  no  problem  with  the 
reassignment. 

After  additional  conversation,  includ- 
ing remarks  about  the  legislation.  Mr. 
Simon  left.  Some  additional  prints  were 
discussed  w-.th  Bill  Johnson,  head  of  the 
Policy  Analysis  section  of  the  Federal 
E:nergy  OfQce. 

After  some  questions  were  asked  by 
committee  members,  the  meeting  was 
adjourned  at  2 : 35  p.m. 

Mr.  President,  the  details  regarding 
the  meeting  this  week  of  the  National 
Petroleum  Council  Subcommitte<?.  and 
the  list  of  the  members  of  that  com- 
mittee— all  from  industry — may  help 
show  xhy  the  Committee  on  Govern- 
ment Opentions.  in  approving  S.  2776. 
has  required  that  these  committees  di- 
versify their  membershlo  suid  operate 
openly,  and  why  the  committee  wants  ex- 
emptlor-;  from  conflict-of-interest  stat- 
utes justified  publicly 

ether  important  energy  committees 
have  t^en  meeting  litely  in  closed  ses- 
sions yrith  Yiisfh  administniMon  officials. 
I  refer  to  the  Emergency  Petroleum  Sup- 
plv  Committee  and  its  subcommittees. 
One  met  on  short  notice  in  Exxon  head- 
quarters in  New  York  Thps<»  commft- 
tees— Mke  the  National  Petroleum 
Courcil  and  Its  subcommittees  and  co- 
ordinating committees — are  slso  exclu- 
sively "omnosed  of  officials  of  large  oil 
companies. 

These  are  typical  of  the  kind  of  com- 
mitters which  the  C»ovemment  Opera- 
tions Committee  said,  ir  aprroving  S 
2778.  that  it  warts  broadened  out  and 
op«»ned  no 

Mr  President  I  ask  unanimous  con- 
sert  *->  insert  ?^  this  point  in  the  Record 
the  membershlo  a<!  of  this  month,  of  the 
Emereenry  Petroleum  Supply  Committee 
and  its  subcommittees. 

Th»re  being  no  objection,  th"  materii] 
was  ordered  to  be  printed  in  the  Record, 
as  foDows: 

E^rnsrurr    Pmot^rit    Sm^r    CoMMrrrrr 

UxurzzsHtp    UsT     or     COJ|f*XT     hlXMBtH 

nxp«Est:rrArtvi.  and  Altzkmatx 

Aiaenc%a     ladependent.     50     Rockefeller 

Pi*a.  N*w  York.  .New  Tork;   J.  B.  Sunder- 

luui,  Bbvard  L.  CUrk 


ArmbUn  American  Oil  Co..  I34fi  Avenue 
of  the  Anierlc*a,  New  York,  New  York;  J.  J. 
Johnston:  Samuel  C.  Harper. 

.^ihland  Oil.  Inc..  P.O  Box  391.  Ashland, 
Kentucky;  Robert  E.  Yancey:  William  E 
Perrlne. 

Atlantic  Richfield  Company,  SIS  South 
Flower  St..  Loe  Angeles.  California:  B.  B.  Mll- 
ner:  Norton  M  Smlrlock. 

Caltex  OU  Products  Company,  380  Madi- 
son Avenue,  New  York,  New  York;  J  M  Vois 
W.  E.  Tucker. 

Cities  Service  Company.  Inc..  60  Wall 
Tower,  New  York,  New  York;  John  B.  Meyer: 
P..  H  Chltwood.  Cities  Service  Oil  Co  Box 
300.  Tulsa.  Okla. 

Contlnenuil  OU  Company.  High  Ridge 
Park.  Stamford.  Conn.;  John  L.  Kelly,  Conti- 
nental OU  Co..  Western  Hemisphere  Pet  . 
Box  2197,  Houston.  Texas;  C.  8.  Nlcandros. 

Exxon  Corporation,  1251  Avenue  of  the 
.^merl^as.  New  York,  New  York:  D.  M.  Cox: 
Charles  O.  Peyton. 

Oetty  OU  Company.  3810  Wllshlre  Boule- 
vard. Los  Angeles,  CaUfomla:  B  E.  WUUams: 
W  C  Godfrey. 

Crown  Central  Petroleum  Corp..  Henry  A. 
Rosenberg,  Jr..  A.  J.  Morris.' 

Gulf  OU  Corporation.  Gulf  Building.  Pitts- 
burgh. Pa.;  Zone  Q.  Johnson;  J.  N.  McOarvey. 
M.'irathon   Oil  Company.   539  South  Main 
Street.  Pludlay,  Ohio;   R.  M.  Churchwell-   A. 
D  Lodge. 

Mobil  Oil  Corporation.  150  East  42nd 
Street.  New  York.  New  York;  Herman  J. 
Schmidt;  Walter  A.  Bork. 

Murphy  OU  Corporation.  200  Jefferson 
Avenue.  El  Dorado,  Arkansas;  Charles  E 
Cowger;  Paul  C.  BUger. 

PhUllpi  Petroleum  Company.  344  Phillips 
Building.  Annex.  EartlesviJe.  Oklahoma; 
John  E.  Harris    Jr.;  C.  M.  McCormlck. 

Signal  on  and  Gas  Co  ,  Golden  Gate  Cen- 
ter. 2800  North  Loop  West.  Houston.  Texas: 
Walter  R  Bailard:  W.  H.  Thompson.  Jr. 
Standard  OU  Co.  of  California.  225  Bush 
Street.  San  Francisco.  Calif.;  George  T. 
BaUou;   W.  Joi.es  McQulnn. 

Stsjidard  OU  Co.  (Indiana),  910  South 
>Uchi;i'an  Avenue.  Chicago,  llUnols;  George 
V  Myers;  W.  A  Klrkpatrlck. 

Standard  OU  Co.  (Ohio) .  Midland  Building, 
Cleveland.  Ohio;  Frank  E.  Mcsler:  S.  S.  Myer. 
SheU   OU   Co..  Sian   O.   StUes;    Charles  L. 
Blackburn'. 

Sun  Oil  Company,  1608  Walnut  Street. 
Philadelphia.  Pa.;  Warren  E.  Burch;  J.  Van 
Dyck  Fear 

Texaco.  Inc .  135  East  42nd  Street.  New- 
York.  New  York:  R.  Howard  Wilson;  L.  W. 
Polm.ir 

Union  Oil  Co  of  Calif..  tJnlon  OU  Center. 
I-os  Angeles.  Calif ;  M.  8.  Thomson:  Howard 
S.  Said. 

Total  Pirtlclpatlng  Companies — 23. 

OBSCRVTR  COilPANT.  aEPBESENTAnVZ, 
ALTKXNArX 

.Asiatic  Petroleum  Corp..  One  Rockefeller 
Plaza  New  York.  New  York;  J.  D.  Ritchie. 
PresUeut:  M.  J.  PauUl.  One  RockefeUer  Plaza 
-Ve.v  Ycrk,  NY. 

BP  North  America.  Inc.,  620  Fifth  Avenue. 
Nev  York.  Nev  York:  P  G  Caza!et;  Michael 
J.  Bo.,ers. 

INOrSTRY    COtrNSEl. 

Cteanr.  Gottlieb.  Steen  &  Hamilton,  1250 
Cr>nnect.ci.t  Avenue,  N.W  ,  Waslilngton,  DC: 
Robert  Krause.  Fowler  Hamilton,  John  K. 
Mallor\'.  Jr.,  Michael  Duncan.  William  Fen- 
wick.  New  York,  all  representatives. 
ao\TSKvxNr  cradimav 

Duke  R.  Llgon  and  Vice  Chairman.  Robert 
L.  Presley.  OSce  of  Oil  and  Gas.  U-8.  Depart- 
ment of  the  Interior,  Washington.  DC. 
SBCkKTAar 

Bea  Tafoja.  Office  of  OU  and  Gas,  U.S. 
Department  of  the  Interior.  Washington.  D.C. 

In  process. 


MliliHiixiirP  LWT  OF  StTFTUT  AJCO  Dls  PKlBLTIo.v 

SuBcoMitrm*   or   EMxaasNcT    Prr«(  :.h,m 
ScppLT  CoMMrrrix 

COMPANY    MKMBn.    REP»XS»>fTATIVX,    AND 
ALTEXNATX 

AUantlc  Richfield  Co  .  61S  South  Flower 
St..  Los  Angeles.  Calif.;  R.  M.  Burton;  N  M 
Smlrlock. 

Caltex  OU  Products  Co  ,  380  Madison  Ave  . 
New  York.  New  York;  Seymour  8  Miller, 
Chairman:  Ernest  F.  BCrug.  Jr 

Continental  OU  Co.,'  High  Rldgp  fark. 
Stamford.  Conn.;  H.  Kent  Bowden';  w.  B. 
Penton.' 

Exxon  Corporation.  1251  Avenue  of  the 
Americas,  New  York,  New  York;  R.  E.  Wtl- 
helm;  R.  J  Seastream. 

Gulf  OU  Corporation,  Gulf  Building,  Pitts- 
burgh. Pa.;  B.  C   Barnes;  J.  N.  Deakln. 

Marathon  OU  Company,  539  South  Main 
Street,  PlndUy.  Ohio;  R.  T,  Coates;  A.  D, 
Lodge. 

MobU  Oil  Corporation;  150  East  42d  Street 
New  York.  New  York;  T.  C.  Cory;  B.  P.  Trav- 
eler. 

PhlUlps  Petroleum  Company.  PhUllps 
Building,  BartlesvUle,  Oklahoma;  Charles  M. 
McCormlck;  Walter  I.  Weed. 

Standard  OU  Co.  of  Calif  .  225  Bush  Street. 
San  Francisco.  Calif.;  Houston  M.  Klm- 
brough;  L.  L.  Knudsen 

Standard  OU  Company  >  (Ohio) ,  William  P 
Mahar 

Sun  Oil  Company.  1808  Walnut  Street 
PhUadelphla,  Pa,:  J.  Van  Dyck  Pear;  John 
C,  S.  Wood. 

Texaco  Inc..  135  East  4ad  Street.  New  York. 
New  York;  H   C.  Xennv;  A.  G.  Hubert. 

Union  OU  Co.  of  CaJlf..  Union  Oil  Center 
Los  Angeles.  Calif  ;  H.  K.  Said:  L  R.  WUUams 
Union  OU  Company.  200  Bast  Golf  Road  Pal- 
atine, ni. 

OOVCHNMINT     COCHAOtMAK 

David  R.  Oliver.  Office  of  Oil  and  Gas,  U.S. 
Department  of  the  Interior,  Washington,  D.C. 

COMPANY  OBSEBVER,  HEMIESENTATIVI:,  ALTEENATB 

Asiatic  Petroleum  Corp.;  One  Rockefeller 
Plaza,  New  York.  New  York;  J.  D  Ritchie 
President;  M.  J.  PauUl,  One  RockefeUer 
Plaza.  New  York,  NY. 

BP  North  America,  Inc.,  620  Fifth  Avenue 
New  York,  New  York;  P.  o  Gazalet  Presi- 
dent; Michael  J.  Bowers. 

Membesship    List    or    Transportation    Sitj- 

COMMITTXX    or    THE    EMERGENCY    PrmOLCTTM 

Supply  CoMMirm 

COMPANY   MEMBER,   REPRESENTATIVE,  ALTERNATE 

ArabUn  American  Oil  Co.,  1345  Avenue  of 
the  Americas.  New  York.  New  York;  Thomas 
J.  Lane?;  WlUlam  F.  Todd. 

Atlantic  Richfield  Company.  Box  3870,  T 
A..  Los  Angeles,  California;  C.  M.  Lynch;'  R 
B.  Hastle.  ARCO  Pipe  Line  Co..  ARCO  Build- 
ing, Independence,  Kansas. 

Exxon  Corporation,  1261  Avenue  of  the 
Americas.  New  York,  New  Y'ork;  C.  J,  Carven 
(Chairman) :  R.  c.  Baker 

Getty  OU  Company,  Getty-Union  Bank 
Bldg.  3810  Wllshlre  Boulevard.  Los  Angeles 
Calif  ;   W.  W.  Mitchell;   8.  P.  Carney. 

Gulf  Oil  C  jrporation.  Gulf  Building.  Pitts- 
burgh, Pa.;  James  N.  Brown;  R.  F.  Cooke 

Marathon  OH  Company.  539  South  Main 
Street,  Fliidlay.  Ohio;  J.  B.  Pellaton;  L.  C 
Mthaly. 

MobU  Oil  Corporation.  150  East  42nd 
Street.  New  York.  New  York;  H.  A.  Steyn.  Jr  • 
G.  D.  Trelchler. 

Phillips  Petroleum  Company.  PhUllps 
Buldlng  Annex.  Bartlesvllle.  Oklhoma;  Wal- 
ter I.  Weed.  Forrest  F.  Okerman. 

Standard  OU  Co.  of  California,  225  Bush 
Street,  San  Francisco.  Cal.:  T.  8  Wyman. 
Chevron  Shipping  Co..  558  Market  Street. 
San  Francisco.  Cal.;  A.  G.  Parker.  Chevron 
Intl.  OU  Co  .  30  RockefeUer  Plaza.  Suite  3131 
New  York.  N,Y. 
Standard    Oil    Co.    (IndUna).    910    South 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42487 


Michigan  Avenue,  Chicago.  lUljiols;  Capt.  C 
D  PhlUlps,  Amoco  Intemafl  OU  Co.,  300  East 
R\  d  ;r>h  errpet.  Chicago,  ni.;  Joseph  C 
>vp*v»r  Jr  .^mooo  Intemafl  Oil  Co.,  200 
^^v«-    >i^!r!.  ,;  1   street,  Chicago,  111, 

s  I!!  on  o.mpany,  1608  Walnut  Street, 
PhUadelphla.  Pa  ;  Jack  A  Collins;  Malcolm 
J  Prevot. 

Texaco,  Inc.,  135  East  42nd  Street.  New 
York.  NY.:  M   D   Annetta,  J    J.  BarteU,' 

Total  partlrlpstlne  ■''.m;'Hr:':e!v     12 


CI.'\-F'iN  Mr.N  T 


n  ^;K.MAr 


Earl  G.  EUerbrake,  Office  of  OU  and  Gas, 
U.S.  Department  of  the  Interior,  Washing- 
ton. DC. 

OBSERVES  COMPANY,  REPRESENTATIVE,  ALTERNATE 

Asiatic  Petroleum  Corp.,  One  RockefeUer 
Plaza,  New  York.  NY.;  J.  D.  Ritchie  < Presi- 
dent); G.  H.  Bye.  One  RockefeUer  Plaza. 
New  York.  NY. 

BP  North -America,  Inc..  630  Fifth  Avenue, 
New  York,  N.Y :   P    O    TTa-ralet    (President). 


MESSAGE    FROM    THE    HOUSE 

A  message  from  the  House  of  Repre- 
sent.itlves  by  Mr.  Berry,  one  of  Its  read- 
ing clerks,  announced  that  the  House 
had  agreed  to  the  amendment  of  the 
Senate  to  the  joint  resolution  (H,J.  Res. 
736)  to  pro\ide  for  a  fea.<^lbllity  study  and 
to  accept  a  gift  from  the  United  States 
Capitol  Historical  Society. 

The  message  also  announced  that  the 
House  had  agreed  to  the  report  of  the 
committee  of  conference  on  the  disagree- 
ing votes  of  the  two  Houses  on  the 
amendment  of  the  Senate  to  the  bill 
(H.R.  5874)  to  establish  a  Federal  Fi- 
nancing Bank,  to  provide  for  coordi- 
nated and  more  efficient  financing  of 
Federal  and  federally  assisted  borrow- 
ings from  the  public,  and  for  othar  pur- 
poses. 

The  message  further  announced  tJiat 
the  Hoa-^e  had  disagreed  to  the  amend- 
ments of  the  Senate  to  the  bill  (H.R. 
3153)  to  amend  the  Social  Security  Act 
to  make  certain  technical  and  conform- 
ing changes;  agreed  to  the  conference 
requested  by  the  Senate  on  the  disagree- 
ing votes  of  the  two  Houses  thereon;  and 
that  Mr.  Ullman,  Mr.  Burke  of  Massa- 
chusetts. Mrs.  Grtffiths,  Mr.  Rcsten- 
KowsKi,  Mr.  ScHNEEBELi.  Mr.  Collier, 
and  Mr.  Broyhill  of  Viiginia  were  ap- 
pointed managers  of  the  conference  on 
tlie  part  of  the  House. 


ENROLLED    BILLS    SIGNED 

The  message  also  announced  tliat  the 
Speaker  had  affixed  his  signature  to  the 
following  enrolled  bills: 

H.R.  655.  An  act  to  provide  for  the  naming 
of  the  lake  to  be  created  by  the  Buchanan 
Dam,  Chowchllla  River,  Calif.;  and 

S.  1945.  An  act  to  amend  the  Agricultural 
Adjustment  Act.  as  reenacted  and  amended 
by  the  Agricultural  Marketl.ig  Agreement 
Act  of  1937.  so  as  to  authorize  certain  grape- 
fruit niarketing  orders  which  provide  for  a:i 
assessment  against  l;andlers  for  the  purpose 
of  financing  a  marketing  promotion  program 
to  also  provide  for  a  CMdlt  against  such  as- 
sessment In  the  case  of%andlcrs  who  expend 
dlre'-tly  for  marketing  promotion. 

The  enrolled  bills  were  subsequentli" 
signed  by  the  Vice  President. 


NEW  RECORDHOLDER  IN  ATTEND- 
ANCE AT  SUCCFJSSFUL  ROLIX  AIJ 
VOTES 

Mr  ROBERT  f  BYRD  .M;  President 
it  has  long  been  an  accepted  maxim  In 
the  wo.-Id  of  athletics  that  re:ords  are 
made  to  be  broken,  r.nd  while  athletes  are 
at  a  premium  in  thi.<;  Chamber,  we  have 
one  distinguished  Member  who  has  to- 
day broken  the  record,  indeed,  some  daj-s 
ago  he  broke  the  then  existing  record, 
and  he  has  now  reached  an  cr.'.iab'.e 
plateau. 

It  is  most  fitting  that  the  senior  Sen- 
ator from  Wisconsin  should  be  the  rec- 
ordbreaker  as  his  distinction  as  a  Sen- 
ator Is  almost  equalled  by  his  reputr.tlon 
as  an  athlete. 

Despite  the  fact  that  his  training  rou- 
tine has  on  more  than  one  occasion  been 
Interrupted  by  extraneous  Influences,  he 
has  broken  the  record  several  days  ago 
which  our  former  colleague,  former  Sen- 
ator Margnret  Chase  Smith  of  Maine, 
held  in  answering  2.941  successive  roll- 
call  votes. 

Several  days  ago,  as  I  say.  Senator 
Proxmire  exceeded  that  record.  Today 
Senator  Proxjobe  answered  his  3,002d 
successive  rollcall  vote  "nd  he  is  the  nev. 
alltlme  recortiholder. 

It  would  be  .surprising  If  this  figure  is 
not  substantially  increG-^ed  in  the  .vears 
to  come,  as  Senator  Proxmite's  outstand- 
ing capsbillties  are  m-.tched  only  bv  his 
robust  good  health. 

Today,  as  all  Senators  may  see.  Sen- 
ator Proxmire  carries  the  scars  of  this 
battle. 

I  offer  my  congratulations  to  the  dis- 
tinguished vice  chairman  of  the  Joint 
Economic  Committe?^.  and  I  express  the 
hope  that  he  will  long  continue  his  ex- 
cellent example  of  conscientiousness,  in- 
dustriousness.  and  high  skill. 

A  quote  from  the  Confucian  Analects 
seems  to  fit  Senator  Phoxmire  : 

The  superior  man  is  modest  In  his  speech".  '^ 
but  exceeds  In  his  actions. 

While  it  mcy  be  said,  in  jest,  that  the 
senior  Senator  from  Wisconsin  is  not  al- 
ways modest  in  his  speech,  he  most  sure- 
ly always  exceeds  in  his  actions. 

I  ask  umnlmous  consent  that  the  Sen- 
ate now  stand  In  recess  for  2  minutes  so 
that  Senators  may  shake  the  left  hand  of 
Senator  Proxmtrt   fLaughter] 

The  PRESIDING  OFFICER  Olr 
Stattord^  Without  objection,  it  is  so 
ordered. 

Thereupon,  at  3:46  p.m..  the  Senate 
took  a  recess  for  2  minutes. 

The  Senate  reassembled  r.t  3:48  p.m.. 
when  called  to  order  by  the  Presiding 
Officer  (Mr.  SxArroRD). 

M-.  NELSON.  Mr.  President,  if  I  may 
be  permitted  to  mike  a  brief  statement, 
I  join  In  the  remarks  mad?  by  the  dis- 
tinguished raajority  whip,  the  Senator 
from  West  Virginia  <Mr.  Robert  C. 
Byrd). 

Mr.  President,  I  had  not  been  follow- 
ing the  count  as  closely  as  Senator  Byrd 
of  West  Virginia.  I  just  realized  that  as 
of  now  my  dlstlng\ilshed  senior  colleague 
has  exceeded  the  record  formerly  held 


by  :o,rn-e:-  Senator  Margaret  Chase 
S.'iUlh 

I  wnra  to  say  for  the  .-e^ord  that  1.  loc. 
have  a  remarkably  good  attendance  rec- 
ord which  wouid  receive  much  more  no- 
tice if  it  were  not  for  the  record  of  my 
distinguished  senior  coilearue 

I,  ux),  have  a  distingm.shed  rword  as 
an  athlete  which  would  also  receive  much 
more  att-eniion  if  it  were  not  for  the  rep- 
uution  of  my  distinguished  senior  col- 
league. 

I  join  in  the  'c^iigraiulations  and 
promise  that  I  will  make  no  effort  to  ex- 
ceed the  record  estsblLshed  by  ny^^senior 
colleague  from  WL'^consin. 


FEDERAL       ENERGY       EMERGENCY 
ADMLN'ISTRATIGN  ACT 

The  Sen?te  continued  with  the  con- 
sideration of  the  bill  <S.  2776)  to  pro- 
vide for  the  effective  and  efficient  man- 
agement of  the  Nation's  energy  policies 
and  programs. 

ORDER     POB     TIME    UMrTATION     ON 
AMEKDMENTS 

Mr.  MANSFIELD.  Mr.  President.  I 
ask  unanimous  consent  that  there  be  a 
limitation  cf  a  hr>lf-hour  on  all  amend- 
ments remaining,  the  time  to  be  equally 
dividod  between  the  sponsors  and  the 
managers  of  the  bill;  and  1  hour  on  the 
Weicker  amendment,  the  same  time  al- 
location to  be  made  and  that  the  unani- 
mous consent  agreement  be  in  the  usual 
form. 

The  PRESIDING  OFFICER.  Ls  there 
objection  to  th-^  request  of  the  Senator 
from  ATontana?  The  Chair  hears  none, 
and  it  is  so  ordered. 

Mr.  WEICKER.  Mr.  President,  I  ask 
unanimous  consent  that  Jeff  Baker  of 
my  staff  be  accorded  the  privilege  of  the 
floor  during  the  remainder  of  the  debate 
on  the  enerpv-  bill. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered 

Mr.  NELSON.  Mr,  President,  I  send 
to  the  desk  an  amendment  cosponsored 
bv  Mr.  MoNDALE  and  Mr.  Proxmire  and 
ask  for  its  immedicte  consideration. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  legislative  clerk  proceeded  to  read 
the  amendment. 

Mr.  NELSON.  Mr.  President.  I  ask 
unanimous  consent  that  the  reading  of 
the  amendment  be  dispensed  with,  and  I 
will  explain  it. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 
The  amendment  is  as  follows: 
On  page  33.  immediately  after  line  24.  in- 
sert  the   follo*-lng  new  paragraph: 

"(e)  Notwithstanding  any  oher  prortsioB 
of  this  Act,  the  Administrator  shall  formu- 
late and  Implement  such  regulatory  and 
other  actions  in  a  manner  which  does  not 
unduly  discriminate  against  any  industry  or 
any  region  of  the  \jmted  States;  and  further 
that,  notwithstanding  any  other  provlsloa 
of  this  Act.  the  Administrator  shall  formu- 
late and  Implement  such  regulatory  an<l 
other  actions  In  a  manner  designed  to  in- 
s\:re  that,  to  the  greatest  extent  possible, 
the  costs  and  burdens  of  meeting  tbe  tn- 


42488 


CONGRJES8  ION AL  KJiCORD  —  ^E  N  A  TE 


December  19  y  1973 


ergy  crlstB  abmiX  be  borne  equally  by  every 
sector  and  segment  of  the  country." 

Mr.  NELSON  Mr.  President.  I  shaU 
not  take  more  than  3  minutes  on  the 
amendment  I  understand  that  the  man- 
ager of  the  bill  Ls  prepared  to  accept  it. 
This  amendment  reads  as  foUowa: 
Notwithstanding  any  other  provialon  of 
this  Act,  the  Administrator  shall  formulate 
a4d  Implement  such  regulatory  and  other 
actions  In  a  manner  which  does  :.ot  unduly 
dLscrtminate  against  any  Industry  or  any 
region  of  the  United  States,  and  further 
that,  notwithstanding  any  other  provision 
of  this  Act.  the  Administrator  shall  formu- 
late and  Implement  such  regulatory  and 
other  actions  in  a  manner  deelgned  to  Insure 
that,  to  the  greatest  extent  possible,  the 
costs  and  burdens  of  meeting  the  energy 
crisis  shaU  be  bom*  equally  by  every  sector 
and  segment  of  the  country. 

Mr.  President,  my  specific  reason  for 
introducing  the  amendment  at  this  time 
is  that  a  story  In  Newsweek  magazine  on 
the  energy  crisis  stated: 

Furthermore.  Slmo:.  »rd  other  energy  au- 
thorities are  considering  a  ban  on  the  use 
of  snowmobiles  and  pleasure  boats. 

Mr.  President,  I  am  sure  everyone 
agrees  tliat  there  are  various  activities 
that  have  a  special  priority  in  terms  of 
their  critical  necessity,  and  I  think 
ever>-one  would  agie<  that  those  activi- 
ties requiring  fuel  for  the  production  of 
food  would  rank  in  ilie  highest  priority, 
and  those  activities  for  the  healing  of 
homes,  for  example,  would  rank  In  the 
ver>-  highest  priority. 

However,  there  are  many,  many  other 
activities  in  this  country  wliich  rate  a 
high  priority,  even  though  they  rank  be- 
low those  activities  of  producing  fj.-od 
and  heating  homes.  I  think  it  ought  to 
be  well  understood  that  recreation  is  a 
fundamental  acUvliy.  and  should  be 
fairly  treated,  with  other  activities  of 
tliat  ranking  and  piiority  of  importance. 

I  would  point  out  very  briefly  that 
tourism  is  one  of  the  largest  industries 
in  America.  A  congressional  study  by  the 
^fational  Tourism  Resources  Review 
Commission  stated  that  recreation  is  a 
$61  billion  a  yea.r  industry,  which  em- 
ploys over  4  million  people. 

The  sole  purpose  of  this  amendment 
is  to  insure  that  such  activities  as  recrea- 
tion not  be  unduly  discriminated  against. 

Mr.  President.  I  yield  the  floor. 

The  PRESIDING  OFFICER.  Who 
yields  time?  \ 

Mr.  RTBICOFF  Mr.  President.  I  ask 
unanimous  consent  that  Kay  McKrogh 
may  have  the  privilege  of  the  floor  dur- 
ing the  furJier  consideration  of  the  bill 
^  The  PRESIDING  OFFICER  Without 
objection,  it  is  so  ordered 

Mr  RIBICOFF  Mr  President,  on  be- 
half of  the  distinguished  Senator  from 
Illinois  <  Mr.  Ptrcy  '  and  myself,  we  will 
gladly  accept  the  amendment  of  the  dis- 
tinguished Senator  from  Wisconsin  'Mr. 

NtL30!«  1  . 

The  PRESIDING  OFFICER.  The  ques- 
tion IS  en  agreeing  to  the  amendment  of 
the  Senator  from  W.iconsin. 

The  amer^dment  was  agreed  to. 

TRIBUTE  TO  MEMBERS  OF  ARMED 
FORCES    MISSING    IN    ACTION    IN 

UiDOCHINA 

Mr.  BARTLETT  Mr  President,  I  ask 
unan'juous  onsent  that  the  Committee 


on  Foreign  Relations  be  discharged  from 
the  further  consideration  of  Senate 
Resolution  217  and  that  the  Senate  pro- 
ceed to  its  immediate  consideration. 

The  ranking  Republican  member  of 
the  committee  is  In  the  Chamber,  and 
the  chairman.  I  understand,  is  on  his  way 
to  the  Chamber.  They  have  no  objection 
to  the  conslderaUon  of  the  resolution. 

The  PRESIDING  OFFICER  Will  the 
Senator  from  Oklahoma  please  repeat  his 
request? 

Mr  BARTLETT.  The  request  is  that 
the  Committee  on  Foreign  Relations  be 
discharged  from  the  further  considera- 
tion of  Senate  Resolution  217  and  that 
the  Senate  proceed  to  the  immediate  con- 
sideration of  the  resolution. 

The  PRESIDING  OFFICER.  The  reso- 
lution will  be  stated  by  title. 

The  second  assistant  legislative  clerk 
read  the  title  as  follows: 

To  pay  tribute  to  members  of  the  Armed 
Forces  missing  In  Indochina. 

The  PRESIDING  OFFICER.  Without 
objection,  the  Sc'nate  will  proceed  to  the 
immediate  consideration  of  the  resolu- 
tion. 

Mr.  FULBRIGHT.  Mr.  President,  I 
have  consulted  with  the  distinguished 
Senator  from  Oklahoma  about  the  res- 
olution. As  I  understand,  the  distln- 
eiilshed  senior  Senator  from  Vermont 
I  Mr.  ArKENi  is  atraut  to  explain  its  pur- 
pose. I  think  this  is  proper  procedure, 
and  the  com-nittee  is  glad  to  go  along 
with  the  request  of  the  Senator  from 
Oklahoma.  The  committee  will  not  have 
M-ne  to  hold  another  meeting,  since  only 
1  or  2  days  of  the  session  remain. 

Mr.  AIKEN.  Mr.  President,  the  failure 
to  account  for  all  of  the  men  mi.ssing 
in  action  durln?  the  years  the  U.S.  forces 
were  in  Indochina  is  a  source  of  great 
distress  in  this  coimtry. 

I  think  the  least  we  can  do  now  Is 
to  adopt  the  resolution  which  the  Sen- 
ator from  OStlahoma  'Mr.  Bartlett*  of- 
fers. I  hive  d'.scussed  the  proposal  with 
our  chairman  and  with  other  members 
of  the  committee.  We>ftave  no  objection 
to  the  adoption  of  ftie  resolution. 

The     PRESIDING     OFFICER.     The 
question  is  on  agreeing  to  the  resolution. 
The  resolution  was  agreed  to. 
The  preamble  was  agreed  to. 
The  resolution,  with  its  preamble,  is 
as  follows: 

Whereas  the  United  States  recognizes  Its 
responslbUlty  as  well  as  Its  gratitude  to  the 
one  t'.tousand  one  hundred  and  sixty-three 
members  of  the  Armed  Forces  who  are  cur- 
rentl..  r,ted  as  missing  In  action  In  Indo- 
china: ana 

Whereas  'J»e  families  of  these  missing  men 
are  entltleu  to  an  accounting  of  their  fate: 
and 

Whereas  the  North  Vietnamese  have  disre- 
garded the  Parts  Peace  Agreement  which  pro- 
vides In  section  8b: 

"The  parties  shall  help  each  other  to  get 
Information  about  thoae  military  personnel 
and  foreign  clviiuns  of  the  parties  missing 
in  action,  to  determine  the  location  and  take 
care  of  the  graves  of  the  dead  so  as  to  facili- 
tate exhumation  and  repatriation  of  the  re- 
mains, and  to  take  any  other  such  measures 
as  may  be  required  to  get  information  about 
these  still  considered  missing  in  action." 

Whereas  it  is  in  the  Interest  of  basic  hu- 
manity and  Justice  for  North  Vietnam  to 
allow  the  United  States,  or  a  neutral  nation 
or  third  party  such  as  the  Red  Cross  to  search 


for  the  location  of  mlMlng  In  action  through- 
out Indochina:  Now.  therefore.  b«  it. 

Retolved,  That  the  United  uui-ea  .->«:.&:« 
urge  the  President  to  continue  to  ..se  every 
diplomatic  avenue,  tncludli:);  Nt>ri;i  Viet- 
nam's aUles  and  the  Un!t«<l  Natt  :^  -. .  a^i^t 
lu  obtaining  the  necessary  cooperatiuu  and 
information  concerning  our  missing  men; 
and 

That,  during  this  Christmas  season,  the 
grateful  people  of  our  Nation  give  a  special 
remembrance  through  our  thoughts  and  our 
prayers  for  those  brave  men  and  their  loyal 
famUles  who  have  given  so  much  for  each 
of  us. 


FORTHCOMING  RETIREMENT  OF 
SENATOR  ERVIN 

Mr.  HELMS.  Mr.  President,  the  news 
that  my  distinguished  senior  colleague 
<Mr.  Ervini  has  today  advised  the  Sen- 
ate that  he  will  not  seek  reelection  next 
year  is  bound  to  sadden  all  Members  of 
this  body.  past,  and  pre.sent.  who  have 
had  the  privilege  of  serving  with  this 
great  North  Carolinian,  and  American. 

Mr.  President,  my  own  friendship  with 
Senator  Ervin  dates  back  at  least  a  quar- 
ter of  a  century.  I  have  observed  him  and 
supported  him  in  his  vigorous  battles 
through  the  years  to  hold  back  a  flood 
of  unwise  pieces  of  legislation  which,  de- 
spite Senator  Ervin's  warnings,  were  en- 
acted, and  which  have  since  frustrated 
the  lives  of  literally  millions  of  Amer- 
icans 

He  endured  caustic  criticism  aimed  at 
him  by  some  of  the  Nations  major  news 
media.  He  did  so  unflinchingly  and  cou- 
rageously and.  In  the  process,  easily  won 
reelection  to  the  Senate  time  after  time 
as  a  recognized  conservative.  During  that 
period,  he  grew  steadily  in  the  favor  and 
affection  of  the  people  of  North  Carolina. 

It  is.  of  course,  one  of  the  ironies  of 
our  time  that  .some  of  the  same  major 
news  media  that  once  so  harshly  mocked 
and  ridiculed  Senator  Ervin.  today  look 
with  favor  upon  him.  Whereas  he  was 
vii  tually  denied  coverage  in  those  days — 
except  for  criticism  and  ridicule — when 
he  pleaded  against  the  enactment  of  im- 
w.se  "social  legislation*"  which  he  con- 
tended was  unconstitutional,  he  now  is 
praised  and  revered  by  the  major  news 
media  of  the  country 

Senator  Ervin  wUl  leave  the  Senate. 
Mr  President,  with  the  best  personal 
wishes  of  his  colleagues.  He  has  become 
a  legend  In  his  owtj  time,  and  he  has 
chosen  to  retire  at  a  Ume  when  he  Is 
recognized  throughout  the  land  as  a  man 
■^ho  has  made  his  mark  on  history. 

Senator  Ervin-  Is  my  friend.  I  am  his 
Though  we  no  longer  belong  to  the  same 
political  party.  I  shall  always  remember 
and  be  grateful  for  his  va'lant  battles  oi 
.vears  gone  by.  I  shared  his  principles 
then;  I  cling  to  those  principles  now;  and 
like  the  majority  of  my  fellow  North 
Carolinians.  I  am  grateful  that  he  was 
willing  to  stand  up  and  be  counted 

To  him  and  his  deer  wife,  Mrs  Helms 
and  I  reiterate  our  respect  and  affection. 
V.'e  wLsh  'Senator  Sam"  and  Mrs  Ervin 
every  happiness  and  iov 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42489 


FEDERAL       ENERGY       EMERGENCY 
ADMINISTRATION   ACT 

The  Senate  continued  with  the  con- 
sideration of  the  bill  tS  2776)  to  provide 


for  the  effective  and  efficient  manage- 
ment of  the  Nation  'i  energy  p<ili(  ie;  and 
program."! 

Mr  HARTKE  M:  President.  I  j,ave 
at  the  desk  an  amendment  which  I  a."=k 
to  have  stated 

"     The      PRLSIDINO     OFFIC?:h        Hie 
amendment  will  be  .stated 

The  a&.sl.'itant  legislative  clerk  read  as 
follows: 

On  page  32.  after  line  5.  Insert  the  follow- 
ing new  section  and  redesignate  succeeding 
sections  accordingly: 

■TOCKPILING    PKOHISmCD 

Skc.  113.  The  Administrator  shall  prepare 
and  submit  to  the  Senate  and  the  House  of 
Representatives  within  80  days  of  enactment 
of  this  bill,  a  report  which  shall  include 
but  not  be  Umlted  to  the  following: 

(A)  Assessing  the  degree  to  which  any 
person,  partnership,  corporation,  or  other  or- 
ganization Is  stockpiling  m  addition  to  ordi- 
nary and  necesaary  requirements  more  fuels. 
of  all  types,  than  he  requires  to  meet  his  rea- 
sonable needs: 

(B)  Specifying  what  actions  the  Adminis- 
trator has  taXen  to  prevent  the  undue  stock- 
piling of  fuels: 

(C)  Setting  forth  all  rules,  regulations, 
and  policies  governing  stockpiling  adopted  by 
the  Administration:  and 

(D)  Detailing  any  additional  Rtatutory 
authority  needed  by  the  Administrator  to 
control  and  prevent  the  stockpiling  in  addi- 
tion of  fuels  to  ordinary  and  necessary  re- 
quirements by  producers,  wholesalers,  dis- 
tributors, and  consumers. 

Mr.  HARTKE.  Mr.  President,  this 
amendment  is  in  the  nature  of  a  substi- 
tute for  my  amendment  No.  919. 

My  amendment  to  the  Federal  Energy 
Emergency  Administration  Act  would 
force  the  Administrator  of  this  new- 
energy  agency  to  Initiate  a  task  force 
study  of  the  stockpiling  and  hoarding  of 
fuels.  He  would  have  to  submit  his  re- 
port to  the  Congress  within  60  days  of 
the  effective  date  of  this  act. 

The  President  has  called  on  the  Amer- 
ican people  to  conserve  energy  by  asking 
millions  to  suffer  inconvenience  and  pos- 
sible economic  distress  in  order  to  con- 
serve fuel  resources.  Our  thermostats  are 
turned  down,  our  cars  must  be  driven  at 
50  miles  per  hour,  and  our  schools  and 
factories  may  be  forced  to  operate 
shorter  hours. 

These  conservation  methods  and  pro- 
grams have  resulted  in  energy  savings 
but  the  worst  shortages  are  yet  to  come. 
Some  regions  of  the  Nation  face  the 
prospect  of  up  to  40  percent  energy  short- 
ages if  weather  turns  severe  and  alterna- 
tive supplies  are  not  found.  Already  con- 
sumers are  suffering  serious  hardships 
as  a  result  of  shortages,  price  increases, 
and  restrictions  on  the  availability  of 
petroleum  fuels  Shortages  and  hard- 
ships will  be  made  much  more  severe  If 
Individuals  and  corporations  stockpile 
energy  supplies  and  hoard  them  to  the 
detriment  of  other  consumers 

The  information  I  am  asking  the  Ad- 
ministrator to  ferret  out  and  disclose  to 
the  American  public  L«;  vital.  Sources 
close  to  the  oil  industrj-  tell  us  some  sup- 
pliers are  holding  back  fuel  until  prices 
go  up.  We  have  all  heard  the  charge  that 
the  oil  industry-  has  used  the  crisis  to 
prevent  Independents  from  obtaining 
sufBclent  supplies  to  stay  In  business. 

This  study  is  necessary.  I  think  the 
facts  have  to  be  made  known.  After 
ascertaining  this  information,  we  will  be 


able  to  properly  determine  whether  or 
:.ot  there  i.-^  a  real  oil  shortage  crlsLs  We 
ail  know  that  we  cannot  get  enough  fuel 
and  that  the  price  ha.s  lncrea.sed  on  gaso- 
hne  and  heating  oil.  but  we  do  not  know 
\'  th:<;  ;  .i  leKilimate  ri.sl.t;.  This  study 
.-nould  an.swer  this  question. 

This  amendment  deals  with  the  -ame 
situation  I  had  la.st  night  I  have  di;;- 
cussed  this  matter  with  the  manager  nf 
the  bill  and  the  ranking  member.  We 
have  cleared  up  all  the  dlfTlculties.  It 
calLs  for  a  report  on  unnecessary  stock- 
piling and  hoarding 

Mr.  RIBICOF-F  On  behalf  of  the  Sen- 
ator from  Ilhnoi.s  and  myself,  we  are 
pleased  to  accept  the  amendment. 

Mr.  HARTKE.  I  ihank  my  distin- 
guished colleagues  from  Connecticut  and 
Illinois. 

Mr.  PERCY.  Mr  President.  I  want  to 
indicate  my  complete  concurrence  with 
the  amendment  and  to  commend  the 
Senator  from  Indiana  'Mr.  Harfke)  for 
his  foresight  in  preparing  It. 

Mr.  HARTKE.  Mr.  President.  I  yield 
back  the  remainder  of  my  time. 

Mr.  RIBICOFF.  Mr.  President.  I  yield 
back  the  remainder  of  mv  time. 

The  PRESIDING  OFFICER  (Mr. 
GoLDWATER).  All  time  on  this  amend- 
ment has  been  yielded  back. 

The  question  is  on  agreeing  to  the 
amendment  of  the  Senator  from  Indiana 
'Mr.  Hartke'. 

The  amendment  was  agreed  to. 

Mr.  STEVENSON.  Mr.  Pre.sident.  I 
have  an  amendment  at  the  desk  which  I 
ask  be  stated. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  second  assistant  legislative  clerk 
read  as  follows : 

S.  2776 

On  page  53.  line  2.  Insert  "(a)"  after  "Sec 
204."  and  before  "There". 

On  page  53,  between  lines  18  and  19.  in- 
sert the  following; 

"(b)  The  Administrator  of  the  Interim 
Federal  Energy  Emergencv  Administration 
established  by  Title  I  of  this  Act.  may.  If  ap- 
pointed to  the  Council  pursuant  to  (a)  and  if 
designated  by  the  President,  serve  as  Chair- 
man of  the  Council  in  order  to  coordinate 
the  functions  of  that  Administration  with 
those  of  the  Council  .  nd  to  assure  neces- 
sary continuity  subsequent  to  the  termina- 
tion of  Title  I  as  provided  by  Section  125 
of  this  Act." 

Mr.  STEVENSON.  Mr.  President.  I 
have  discussed  this  amendment  with  the 
manager  of  the  bill.  I  beUeve  it  is  accept- 
able to  him.  :  ha  e  also  m.cntioned  it  to 
my  dlstln?x:ished  colleajaie.  Mr.  Percy. 

The  amendment  would  permit  the 
President  to  appoint  a  Federal  Energy 
Emergency  Administration  administra- 
tor to  the  chairmanship  of  the  Council 
on  Energy  Policy.  At  present,  the  law 
provides  that  the  Council  shall  be  chaired 
by  a  fulltlme  chairman,  which  could  have 
the  effect  of  disqualifying  the  Federal 
Energy  Adm.lnlstrator.  Mr  Simon.  This. 
would  make  it  possible  for  the  President 
to  appoint  Mr  Simon  to  both  offices 

Mr.  RIBICOFF  Mr  President,  this  is 
a  good  amendment  and  I  accept  it. 

Mr.  PERCY.  Mr  Pre.sident.  the  reason 
I  have  strongly  objected  to  title  n — the 
three-member  Council  on  EInergy  Pol- 
icy— is  that  we  would  have  had  an  ad- 
ministrator with  operational  responsibil- 
ities who  would  have  be^n  separated  from 


the  pohcy  coordination  function  created 

in  the  White  House  by  title  II  This 
amendment  enables  the  President  to  tie 
together  policy  and  the  admmistratlon  o{ 
tr.e  ongoing  proi^.'-am.  if  ne  so  <  hcKjses 
by  appointing  the  Administrator  as 
Ch,::,-man  of  'he  Coumi;  it  i,.  a  pood 
amendment  and  provides  some  measure 
of  needed  flexibility.  I  accept  the  amend- 
ment. 

Mr.  STEVENSON  Mr  President.  I 
yield   back   the   remainder  of  my  time 

Mr.  RIBICOFF  Mr  President.  I  yield 
back  tlie  remainder  of  mv  time 

The  PRESIDING  OFFICER.  All  time 
on  thio  aniendmeni  has  been  yielded 
back. 

The  question  is  oi  agreeing  to  the 
amendment  of  the  Senator  from  Dlinois 
'Mr.  Stevenson  I . 

The  amendment  was  agreed  to. 

Mr.  HART.  Mr.  President.  I  have  an 
amendment  at  the  desk  which  I  ask  be 
stated. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  second  assistant  legislative  cle'-k 
read  as  follows : 

S.  2T76^- 

On  page  48.  lUie  15.  Insert  the  following 
in  Section  124  (a)  (5).  delete  the  word  "tech- 
nology."  and  Insert  Instead  the  following-     " 

•Technology;  Provided.  That  the  Comp- 
troller Oeneral.  pursuant  to  Section  118  of 
this  Title,  shall  monitor  and  review  said 
analysis  and  provide  his  comments  to  the 
Congress    and    the    Admlnlstrator," 

Mr.  HART.  Mr.  President,  this  amend- 
ment is  offered  to  insure  that  the  Comp- 
troller General  will  have  the  duty  to 
oversee  the  development  of  the  In- 
dependent analysis  of  oil  and  gas  re- 
serves. The  flgiires  on  the  amount  and 
location  of  these  reserves  are  among 
the  most  closely  guarded  secrets  of  the 
industry-.  Yet.  public  access  to  these  fig- 
ures is  absolutely  essaiUal  for  the  de- 
velopment of  any  fair  national  energy 
policy. 

All  reports  required  from  the  Federal 
Energy  Emergency  Administration  would 
be  subject  to  review  by  the  Comptroller 
General  under  the  provisions  of  this  bill. 
The  amendment  simply  makes  clear  that 
the  one  report  which  may  prove  most 
controversial  also  will  receive  the  objec- 
tive and  forthright  analysis  of  a  group  of 
experts  directly  responsible  to  Congress. 
It  is  my  hope  that  the  Comptroller  Gen- 
eral, in  performing  this  function,  will 
consult  widely  with  other  agencies  with- 
in the  Government  and  draw  on  all 
sources  of  expertise  to  make  sure  that 
our  energj'  policy  is  based  on  strong,  veri- 
fied information. 

Mr.  President.  I  would  hope  that  the 
manager  of  the  bill  and  the  ranking 
member  would  agree  to  this  amendment 

Mr.  RIBICOFF.  Mr.  President,  on  be- 
half of  the  committee  I  accept  the 
amendment  offered  by  the  distinguished 
Senator  from  ALchigan. 

Mr.  PERCY.  Mr  President.  I  should 
hke  to  ask.  for  purposes  of  clarification, 
as  I  have  not  had  the  necessarj-  time 
to  studj-  the  amendment,  what  new  au- 
thority does  this  give  to  the  GAO? 

Mr.  HART.  It  makes  it  expUcit.  if  I 
could  respond,  that  the  charge  to  the 
Comptroller  General  he  that  he  renew  .^ 
the  report  called  for— I  think  it  is  the  "" 
seventh  subsection  of  this  section  of  the 


42499 


CONGEESSIONaL  RLcuRD  — SIiNAlh 


bUl— M  some  would  hold  that  even  with- 
out this  language  the  Comptroller  Gen- 
eral could  play  a  role  In  the  analysis  of 
the  reserves  Even  U  this  U  true,  at  least 
we  put  him  on  notice  of  our  Interest  and 
desire  that  he  in  fact  participate  in  this 
speciflc  report  and  review 

I  must  confess  that  earlier  in  the  day 
I  had  hoped  very  much  that  we  could 
have  that  independent  review  assigned  to 
the  Federal  Trade  Commission.  I 
realize,  after  speaking  with  a  number  of 
those  directlj-  concerned  with  the  bill, 
that  this  effort  would  have  been  a  fail- 
ure. The  votes  were  not  there.  So  this 
is  a  fallback  position. 

Mr  PERCY  With  that  explanation.  I 
fully  accept  the  amendment 

Mr  HART  Mr  President.  I  yield  back 
the  remainder  of  my  time 

Mr  RIBICOFP  Mr  President.  I  yield 
back  the  remainder  of  nvy  time. 

The  PRESIDING  OFFICER.  AU  time 
on  the  amendment  has  been  >1clded 
back. 

The  question  is  on  aflrreelng  to  the 
amendment  of  the  Senator  from  Michi- 
gan (Mr.  Hart'  . 

The  amendment  was  agreed  to 

Mr.  H.\THAWAY.  Mr.  President.  I 
have  an  amendment  at  the  desk  which 
I  ask  be  stated 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  second  assistant  legislative  clerk 
read  as  follows ; 

On  page  3<>  after  line  2«!\aaert  the  fol- 
lowing 

"Prorided  that,  notwithstanding  any  other 
part  of  this  subsection,  the  Administrator 
siiall  disclose  upon  identifiable  request,  and 
at  reasonable  rosi.  any  information  or  data 
of  the  type  which  could  not  be  excluded 
from  public  annual  reports  to  the  Securi- 
ties and  Exchange  Commission  pursuant  to 
•ection  13  or  I5id)  of  the  Securities  Ex- 
change Act  of  1934  by  a  business  enterprise 
exclualvely  engaged  in  the  manufacture  or 
•ale  of  a  single  product,  unless  such  in- 
formation or  data  concerns  or  relates  to  the 
trade  secrets,  processes,  operation*,  style  of 
work,  or  apparattis  of  a  business  enterprise 

Mr.  HATHAWAY*  Mr.  President,  this 
amendment  applies  to  section  116<b'. 
concerrung  pubiic  disclosure  of  informa- 
tion. My  amendment  appUes  a  standard 
established  by  the  Congress  m  Public  Law 
M-28.  Economic  SUbilizatlon  Act 
Amendments  of  1973.  for  pubUc  disclos- 
ure of  financial  information,  as  supplied 
In  that  case  to  the  Cost  of  Living  Coun- 
cil. The  amendment  employs  the  lan- 
guage of  section  205'bM3>  of  that  act. 
modified  to  conform  to  the  provisions  of 
S.  2776. 

This  amendment  clanfl««  the  fact  that 
the  pubhc  disclosure  provisioDs  of  the 
Econormc  SUbilizaLion  Act.  as  amended, 
oonimue  to  apply  to  Information  cur- 
renOy  collected  by  the  Cost  of  Living 
Council  In  its  Energy  Division  which 
^-ilL  upon  the  enactment  of  this  legisla- 
tion, be  collected  by  the  Federal  Energy 
Emergency  AdmlnistraUon.  under  the 
lran«fer  of  authority  provided  in  aectlon 
105. 

Furthermore,  the  amendment  extends 
the  standard  employed  m  the  Economic 
Etabihzation  Act  for  public  dlaciosure  of 
financial  information  to  information  or 


December  19,  197J 


data  collected  under  other  provlaiona  ot 
8.  277«. 

Mr.  President.  I  have  dlscuased  this 
amendment  with  the  Senator  from  Con- 
necticut and  I  understand  there  Is  no  ob- 
jection to  It 

Mr.  RmiCOFF.  Mr.  President,  I  ac- 
cept the  amendment  and  the  Senator 
from  Ellnols  also  accepts  it, 

Mr  HATHAWAY  Mr.  President.  I 
yield  back  the  remainder  of  my  time 

Mr  RIBICOFF  Mr  President.  I  yield 
back  the  remainder  of  my  time. 

The  PRESIDING  OFFICER.  All  time 
on  the  amendment  has  been  yielded  back 

The  question  Is  on  agreeing  to  the 
amendment  of  the  Senator  from  Maine 
•  Mr.  Hathaway). 

The  amendment  was  agreed  to. 

Mr.  RIBICOFF.  Mr  President,  there 
are  two  more  amendments,  I  imderstand. 

I  suggest  the  absence  of  a  quorum 

The  PRESIDING  OFFICER  The  clerk 
will  call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  RIBICOFF.  Mr  President.  I  ask 
imanimous  consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

The  bill  IS  open  to  further  amend- 
ment. 

AMKNDMKNT    NO      929 

Mr.  WEICKER  Mr  Pre.sident.  I  call 
up  mv  amendment  at  the  desk 

ThJ  PRESIDING  OFFICER  The 
amendment  will  be  sUted. 

The  second  assistant  legLslatlve  clerk 
read  as  follows: 

On  page  4«,  beglnnUig  in  line  21.  strike 
out  -rhla  Utle  shall  terminate  June  30 
1975.  •  and  Insert  in  lieu  thereof  "Thu  tlUe 
shall  terminate  June  30,  1974.". 

On  page  49.  beglnnUig  in  line  I.  strike  out 
•1974,  and  »200  000.000  annually  for  each 
of  the  flscal  years  1975  and  1976  to  carrv  out 
the  purposes  of  this  title.-  and  insert  in 
lieu  thereof     1974  " 

On  page  4d.  beginning  Ui  line  5.  strike  out 
■  »nd  $75000.000  annually  for  each  of  the 
flv:*!  years  1975  and  1976". 

Mr  WEICKER  Mr  President,  first.  let 
me  compliment  the  dlstinjaiished  senior 
Senator  from  Connecticut  "Mr  Ribi- 
corr)  and  the  dlsUnguished  Senator 
from  Illinois  (Mr.  Pircy"  on  the  work 
they  have  done  with  respect  to  this  act 
which  would  esublisli  the  Federal  Ener- 
gy Emergency  AdmlnLstratlon.  I  have 
great  confidence  in  their  work  product, 
and  my  amendment  in  no  wise  Indicates 
anything  but  the  fullest  confidence  In 
them  and  the  work  of  the  Committee  on 
Oovemm'«nt  Operations 

However.  I  think  It  U  necessary  to 
point  out  that  we  are  once  again  engaged 
in  an  unprecedented  turning  over  of  con- 
gressional power  into  the  hands  of  the 
Executive,  and  It  Is  bemg  done  in  a  time 
of  "emergency."  Congress  does  not  go 
ahead  and  give  up  Its  power  in  normal 
times.  This  happens  always  under  emer- 
gency condition?,  and  I  think  u-e  all  agree 
that  an  energy  crisis  Is  upon  us.  But  I 
think  It  is  also  necessary  to  retain.  In 
some  way.  congressional  authority  to  re- 
view the  poLcies  of  this  Nation. 

Under  this  act.  for  a  year  and  a  half 


there  would  be  no  effective  chack  m  the 
policymaking  power  of  the  enerKy  iJtar 
and  or  his  staff.  I  agree  that  In  the  bill 
are  sections  which  require  reports  to 
Congress.  There  Is  a.  section  which  re- 
quires the  President,  ui  June  ol  1974.  to 
make  his  recommendations  as  to  a  per- 
manent organizational  structure  for 
Federal  emergency  energy  policymaking 
But  there  is  nothing  in  the  way  of  teeth, 
whereby  this  body  can  act  should  It  ef- 
Admlnlstrator  or  those  aroimd  him  under 
fectively  review  the  actions  taken  by  the 
the  powers  granted  imder  this  bill. 

It  is  Interesting  to  note  that,  obviously, 
change  Is  contemplated,  because  if  we 
turn  to  section  123  of  the  bill,  it  setc 
forth  the  following 

The  President  shall  submit  to  the  Con- 
gress not  later  than  June  30,  1974,  a  report 
setting  forth  his  recommendations  for  a 
permanent  Federal  organizational  arrange- 
ment for  the  management  and  development 
of  policy  for  energy  and  natural  resources. 

That  Is  proper.  I  thmk  we  .should  have 
those  recommendations.  But  what  about 
our  recommendations?  What  about  any 
flaws  we  might  discover?  Where  is  our 
chance  to  enter  the  scene  and  correct 
any  WTongs?  Every  decision  th^  man 
makes  is  going  to  be  a  tough'*l!eclslon. 
The  subject  matter  of  this  legislation- 
excuse  the  pun— Is  exceedingly  volatile. 
There  will  be  many  times  when  many 
people  will  react  against  FEEA  policies  I 
think  we  ought  to  stand  in  there  with  the 
FEEA  Administrator,  taking  responsibil- 
ity for  policymaking  and  the  policies 
themselves,  since  they  will  affect  all 
Americans. 

But  It  Is  also  po&slble,  as  we  have  seen 
In  other  Instances,  that  the  granting  of 
such  sweeping  powers  can  come  back  to 
haunt  us.  This  Is  basically  what  crossed 
my  mind  as  I  looked  over  the  proposed 
legislation  and  tried  to  find  some  way— 
without  interfering  with  the  day-to-day 
operation  of  the  agency— by  which  we 
could  exert  some  sort  of  congressional 
check. 

Certainly,  I  do  not  want  the  FEEA  Ad- 
mini.«:trator  coming  to  Congress  or  to  the 
committees  every  day  on  every  decision 
he  has  to  make.  That,  for  all  practical 
intents  and  purposes,  would  completely 
dismember  the  nuthorlty  and  the  de- 
cisionmaking flower  he  should  have  In 
thl.s  emergency  situation. 

Do  I  think  It  unreasonable  to  have  this 
act  expire  on  June  30.  1974.  so  that  It 
has  to  be  reauthorized  by  Congress?  No 
I  do  not  That  Is  a  fair  check  That  date 
Is  clearly  recognized  as  a  Ume  when  re- 
view is  in  order— recognized  In  respect  to 
the  President  and  the  powers  he  Is  given 
under  the  bill,  whereby  he  Is  to  make  his 
recommendations  on  Improving  the  legis- 
lation by  June  30.  1974. 

Mr  President,  as  far  as  the  energy 
emergency  legislation  that  has  been  ap- 
proved In  conference,  I  saw  this  morning 
where  the  emphasis  is  on  how  Congress 
has  given  up  its  power  to  the  President  in 
the  area  of  gas  rationing  The  Record 
will  jvhow  I  voted  for  gas  rationing.  I  am 
perfectly  wUllng  to  take  the  responsl- 
bUlty  for  the  tough  decisions  on  my 
shoulders,  as  do  others  But  again,  the 
emphasis  In  the  public  mind  Is  on  how 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42491 


we  have  given  up  our  authority  In  emer- 
gency conditions  rather  than  having  the 
guts  to  hang  In  there  and  .share  the  re- 
sponsibility as  well  as  the  credit  for  ac- 
tions taken. 

Once  this  act  is  passed  there  is  no  way 
that  we  can  say  that  we  share  part  of 
the  responsibility  for  the  decisions  that 
are  made  by  the  energy  caar.  TTiis  body 
has  given  to  that  Individual  the  power 
enjoyed  by  each  one  of  us  as  a  Senator. 
In  essence,  we  are  saying.  "Do  what  you 
want  to  do  and  come  back  to  us  in  a  year 
and  a  half  '  Some  will  say.  "Fine;  go 
ahead:  the  decisions  are  all  his." 

No.  I  say.  ffbt  In  this  day  and  age  when 
the  public  has  been  alerted  on  the  whole 
Issue  of  the  abdication  of  power  by  Con- 
gress to  the  President 

It  is  only  his  responsibility  when  we 
have  givai  him  our  power.  That  is  the 
clearcut  issue  before  the  Senate.  It  was 
the  Issue  we  mulled  over  as  to  how  we 
could  provide  some  sort  of  check  so  that 
we  could  not  be  accused  of  ducking  our 
responsibility. 

I  understand  the  position  of  the  admin- 
istration Is  that  they  have  to  recruit  peo- 
ple for  a  long  period  of  time  and  that 
they  could  not  get  them  without  long- 
term  employment  prospects.  I  think  the 
energy  crisis  will  be  with  us  for  more 
than  a  month,  more  than  a  year,  and 
much  longer  If  It  Is  not,  fine;  let  us  fold 
up  the  act.  I  think  we  will  renew  this 
legislation  come  June  of  1974,  but  I  want 
to  retain  that  power  In  this  body.  I  do 
not  want  to  say  a  year  from  now  or  a  year 
and  a  quarter  from  now,  "My  gosh,  what 
have  we  done?"  and  start  pointing  the 
finger  at  the  executive  branch.  We  will 
be  stuck  uith  our  decisions,  good  or  bad. 
All  the  reports  can  be  written,  but  there 
is  no  substitute  for  the  power  to  legislate, 
and  for  the  power  we  have  to  pass  upon 
the  policies  of  this  Nation. 

Mr.  President,  I  ask  for  the  yeas  and 
nays. 

The  PRESIDING  OFFICER.  Is  there 
a  sufficient  second?  There  is  not  a  suf- 
ficient second. 

Mr.  WEICKER.  I  suggest  the  absence 
of  a  quorum. 

The  PRESIDING  OFFICER  The  clerk 
will  call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr  WEICKER.  Mr.  President,  I  ask 
unanimous  consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  PRESIDING  OFFICER.  Without 
ob.1ectlon.  It  is  so  ortiered. 

Mr.  WEICKER.  Mr.  President.  I  ask 
for  the  yeas  smd  nays. 

The  PRESIDING  OFFICER.  Is  there 
a  sufflclent  second?  There  is  a  sufficient 
second. 

The  yeas  and  nays  were  ordered. 

Mr.  RIBICOFF  Mr.  President,  there 
is  no  Member  of  this  body  for  whom  I 
have  higher  respect  than  I  do  for  my 
colleague  from  tlie  State  of  Connecticut. 
I  well  understand  how  his  experience 
has  led  him  to  be  concerned  over  exces- 
sive power  In  the  executive  branch. 

The  committee  Itself  has  been  con- 
cerned with  this  problem  and  we  have 
made  many  substantial  changes  In  the 
administration  bill  to  avoiding  granting 
the     Administrator     excessive     power. 


Added  U}  that.  I  bclsevp  the  oonferenrp 
commUt.ee  on  the  eniergenry  energy  bill 
shares  the  .^ame  conreni  While  it  ha.s  not 
completed  its  conference  it  has  agreed 
on  the  following  .safekuard.-;  with  regard 
to  the  powers  ve.st^l  :n  the  President  by 
the  emergency  eneri^y  bill 

Any  conservation  measure  proposed  by 
the  Administrator  between  new  and 
March  1  may  go  Into  effect,  but  either 
the  House  or  the  Senate  may  veto  it  by 
majority  vole  wiihin  15  dav^;  Here  we 
have  a  definite  check  by  Congress  on  the 
actions  of  the  Administrator. 

Furthermore,  there  Is  a  provision  that 
any  conservation  measure  proposed  be- 
tween March  1  and  June  30  will  not  take 
effect  for  15  days  .so  Congress  can  study 
it.  Either  the  House  or  the  Senate  could 
veto  It  by  majority  \  ote 

There  is  a  third  agreement  that  after 
June  30,  any  con.servation  measure  will 
require  affirmative  congressional  ap- 
proval ,1u.st  like  a-;y  other  bill. 

The  fourth  agreement  between  the 
conferees  provides  that  any  fees  or  taxes 
which  are  part  of  a  fuel  rationing  pro- 
gram must  be  approved  by  Congress. 

The  Senator  Ls  correct  that  the  con- 
ferees have  given  the  President  authority 
to  put  into  effect  a  rationing  program 
without  congressional  approval. 

Now,  it  has  been  our  experience  that 
It  will  require  about  60  days  to  set  up  an 
agency  like  the  Federal  Emergency  En- 
ergy Administration  and  to  get  It  run- 
ning. If  the  bill  were  to  become  law  be- 
fore January  1.  the  act  would  give  the 
administration  just  4  months  of  life  be- 
fore It  expired.  It  seems  to  us  that  this  Is 
too  short  a  time  to  give  the  agency  a  fair 
trial.  The  bill  gives  the  FEEA  a  life  of 
18  months  instead  of  the  2  years  re- 
quested by  the  administration.  This  is  the 
minimum  time  allowab'e  to  give  Mr. 
Simon's  leadership  and  the  administra- 
tion a  fair  trial. 

Also  it  is  possible  that  the  House  may 
not  act  on  this  bill  before  the  Cliristmas 
recess.  In  that  case  the  chance  for  the 
bill  becoming  law  before  February  1  is 
slim.  Under  the  Senator's  amendment 
this  would  only  give  the  agency  some  3 
months  In  which  to  operate. 

The  blU  is  tightly  drafted  to  limit  the 
authority  of  the  Administrator.  It  gives 
him  authority  over  only  lour  units  from 
the  Interior  Department,  as  well  as  the 
Energy  Division  of  the  Cost  of  Living 
Coimcil.  Any  other  transfers  must  be  af- 
firmatively approved  by  Congress. 

The  numerous  detailed  reporting  re- 
quirements and  oversight  provisions  as- 
sure that  there  vc\\\  be  constant  congres- 
sional monitoring  of  the  Administrator's 
actions. 

Let  me  list  a  few: 

Every  30  days  an  economic  impact  re- 
port. 

A  comprehensive  energy  plan  120  days 
after  enactment. 

Every  6  months  a  comprehensive  re- 
port to  Congress.  A  grant  of  authority  to 
GAO  to  monitor  the  administration's  ac- 
tions. 

Furthermore,  at  the  suggestion  of  the 
distinguished  Senator  from  Delaware 
<  Mr.  Roth  ) ,  am  ombudsman  provision 
was  put  Into  the  bill,  setting  up  an  of- 
fice of  private  grievances  and  redress 


authorizing  persons  throughout  the 
United  States,  such  as  Individual  end- 
users  or  small  businessmen  to  go  to  the 
ofiQce  of  private  grievances  with  a  com- 
plaint and  ask  for  relief 

So  we  have  included  a  series  of  pro- 
cedural safeguard.-;  With  all  these  safe- 
guards, we  feel  that  Mr.  Simon  must 
have  more  than  3  or  4  months  to  do  a 
job. 

I  recognize  that  no  man  in  the  Job  of 
administrator  will  win  any  popularity 
contest.  It  is  a  tough  job.  No  matter  what 
he  does,  toes  are  going  to  be  stepped 
upon.  But  I  do  feel  the  administrator 
chosen  by  the  President  is  a  man  of  out- 
standing ability,  courage,  and  capacity. 
The  only  way  the  Administration  is  go- 
ing to  do  an  effective  job  Is  if  such  a  man 
is  leading  it. 

While  I  have  the  highest  respect  for 
my  colleague.  I  cannot  conceive  how  an 
agency  can  be  .set  up,  staffed,  and  oper- 
ated for  a  period  of  only  4  months  Con- 
sequently, I  oppose  the  amendment  of  my 
colleague  from  thejState  of  Connecticut. 

I  am  pleased  to  yield  to  the  Soiator 
from  Illinn:s 

Mr  PERCY.  Mr.  President.  I  share  the 
very  strong  feelings  of  my  distinguished 
colleague  from  Connecticut  about  his  col- 
league from  Connecticut,  and  In  this 
question  of  granting  excessive  power  I 
know  that  the  distinguished  Senator 
from  Connecticut  knows  how  strongly  I 
spoke  against  the  power  granted  in  the 
energy  emergency  powers  bill  In  fact,  I 
spoke  on  the  floor  of  the  Senate  against 
it,  objected  seriously  to  those  kinds  of 
power  being  granted,  and  felt  that  we 
might  rue  the  day  that  we  created  and 
delegated  that  much  p>ower. 

But  I  would  respectfully  point  out  to 
my  colleague  that  I  do  not  feel  that 
strongly  about  the  powers  being  granted 
In  the  FEEA  biU  under  consideration 
now.  This  bill  is,  essentially,  not  a  grant 
of  power  bill,  but  an  organization  bill. 
The  power  has  already  been,  or  will  likely 
be.  granted  in  the  energy  emergency 
bill. 

My  second  reason  for  evidencing  con- 
cern includes  some  of  the  reasons  men- 
tioned by  the  able  floor  manager  of  the 
bill  1  Mr.  RiBicoFF  I .  It  would  clearly  be 
administratively  and  extremely  difficult 
to  set  up  an  energy  administration  for 
only  6  months.  It  woxUd  be  extremely 
difficult  to  hire  people  It  might  imply 
a  sort  of  swinging-door  approach  to 
Government  organization.  It  might  even 
imply  the  emergency  period  is  orUy  for 
a  period  of  6  months  I  cannot  imagine 
the  kind  of  talent  we  would  want  to 
attract — Impartial.  objective.  expe- 
rienced— would  want  to  come  into  this 
administration  for  such  a  short  period 
of  time. 

I  can  imagine  industry  lending  people 
for  that  short  period  of  time,  but  the 
very  thing  we  have  been  trjing  to  get 
away  from,  having  it  dominated  by  any 
one  particular  industry,  would  probably 
be  frustrated  by  providing  the  FEEA 
such  a  short  life. 

Furthermore,  I  should  point  out  that 
the  administration  did  ask  for  a  2-year 
authority,  and  very  much  In  line  with 
the  principle  expressed  by  the  distin- 
guished Senator  from  Connecticut  (Mr. 


42492 


CONGRESSIONAL  RECORD  —  S£.N A  1 1 


WcicKn>.  ve  felt  that  was  too  long  a 
period  of  time  and  we  cut  It  down  to  18 
months  So.  In  a  sense,  we  shared  a 
common  desire  not  to  have  an  emergency 
agency  for  ux)  long.  On  the  other  hand, 
we  felt  it  to  be  unrealistic  to  look  on  it 
as  an  emergency  with  a  shorter  dura- 
tion than  an  18-month  period. 

Man>-  safeguards  have  been  built  Into 
the  bill,  as  the  Seimtor  from  Connecti- 
cut I  Mr  RiBicoFT"  has  mentioned. 

Mr.  President,  rather  than  take  the 
time  of  the  Senate.  I  ask  unanimous  con- 
sent that  a  memorandum  on  this  subject 
be  printed  at  this  point  In  the  Record. 
There  being  no  objection,  the  mem- 
orandum was  ordered  to  be  prlnte<i  In 
the  Record,  as  follows : 

I  oppose  the  amendment  for  the  fohowlcig 
reasons 

1.  Administratively  unworkable — It  would 
be  hig)ily  undesirable  from  an  admlnlstra- 
tlre  standpoint  to  establish  a  statutory 
agency,  transfer  major  energy  functions  to 
It  from  other  ajrencies.  hire  a  staff  of  about 
2000.  set  up  field  offlees,  and  then  shut  down 
the  whole  structure  after  only  6  months. 
This  swinging-door  approach  to  Government 
organization  would  be  chaotic  and  would 
make  It  impoaslble  to  run  an  efficient 
agency.  Perhaps  more  Importantly,  for  only 
a  6-month  stay  the  agency  would  be  unable 
to  attract  the  high-powered  talent  necessary 
to  run  an  effective  energy  emergency  pro- 
gram. 

2  Safeguards  In  the  bill. — The  Committee 
has  already  written  into  S.  2776  a  large  num- 
ber of  safeguards  against  abuse  of  the 
authority  of  the  Administrator,  and  has 
already  limited  the  FKXA's  life  to  18  months 
from  the  2  years  requested  by  the  Admin - 
Istratlcn  Moreover,  the  Committee  bUl  re- 
quires the  President  to  submit  to  Congress 
his  recommendations  for  a  permanent  Fed- 
eral enersry  and  natural  resources  organiza- 
tion by  June  30.  1874.  (sec.  133) 

Some  of  the  safeguard*  buUt  Into  the  bUl 
are  as  follows ; 

Functions  of  the  Administrator  are  strictly 
limited  to  those  transferred  to  him  or  dele- 
gated to  him  pursuant  to  law   isec    104). 

Administrator  must  submit  a  comprehen- 

alTe  energy  plan  within  4  months  (sec.  122). 

Administrator  must  carefully  analyze  the 

impact  of  his  actions  on  the  economy  (sec 

113). 

MathUs  amendment  adopted  last  night 
strengthens  administrative  procedures  to 
prctect  the  public. 

Admlnstrator  must  coordinate  all  programs 
and  policies  with  State  and  local  govern- 
ments (sec   114). 

.Administrator  must  keep  the  public  fully 
and  currently  informed  of  the  energy  emer- 
gency situation  and  actions  being  taken  to 
minimize  :ts  Impacts  (aec.  116). 

The  Rcth  amendment  wisely  established 
an  Office  of  Private  Grievances  and  Redress 
wlthm  the  PEKA  to  grant  relief  In  hardship 
es'es  isec.  121) . 

Numerous  periodic  reports  to  Congrvaa  are 
required  (sec   124.  paaalm-).    > 

Mr  PERCY.  The  memorandum  sets  out 
the  reasons  why  we  feel  the  bill  puts 
necessary  restraints  on  the  Adminis- 
trator and  that  we  did  not  delegate  to 
him  exce&.«lve  powers  under  this  bill 
Nevertheless.  I  share  the  concern  of  my 
dlrttogulshed  colleague  from  Connecti- 
cut if  he  refers  to  the  excessive  powers 
granted  in  the  energy  emergency  bill  S. 
2589.  which  has  already  passed  the 
Senate. 

The     PRESIDINO     OFFICER      Who 
%-ields  time? 


December  19,  19?  J 


Mr.  WEICKER.  Mr.  President.  I  yield 
myself  such  time  as  I  may  need. 

Let  us  understand  on*  thing— that  the 
energy  emergency  bill  which  Ls  referred 
to  may  be  coming  out  of  conference,  but 
It  has  not  been  signed  by  the  President. 
As  a  matter  of  fact,  the  rumor  has  been 
floating  around  that  he  may  very  well 
veto  It.  So  there  is  no  point  in  referring 
to  this  piece  of  legislation  that  is  not  yet 
law.  It  may  very  well  be  that  this  is  the 
only  act  we  will  end  up  with,  especially 
If  the  veto  comes  about  and  that  veto  is 
sustained. 

One  thing  I  want  to  say :  I  find  It  very 
awkward  to  argue  on  this  point  against 
the  distinguished  senior  Senator  from 
Connecticut  and  the  distinguished  senior 
Senator  from  Illinois,  because  I  know 
their  own  feelings  on  the  general  princi- 
ple, and  there  is  no  argument  among 
us. 

The  fact  is  that  we  are  stuck  with  anv 
action  which  he  takes.  And  I  have  found 
something.  It  has  nothing  to  do  with  the 
administration  downtown,  but  any  ad- 
ministration. When  It  comes  to  the  ex- 
ecutive and  the  legislative  branches,  you 
can  talk  all  you  want  to.  but  if  you  do 
not  have  the  votes,  that  is  exactly  what 
you  are  polng  to  end  up  doing— talking 
Having  the  votes.  I  mean,  provides  us 
with  the  teeth  to  enforce  our  wishes.  It  Is 
very  clear  that  In  this  legislaUon  we  do 
not  have  the  teeth  to  do  anything  for  a 
year  and  a  half 

My  comments  do  not  reflect  on  Bill 
Simon,  whom  I  find  to  be  a  very,  very  able 
man— highly  able — but  the  fact  is  that 
executive  branches  of  Government  are 
notoriously  slow  with  reports  and  with 
responding  to  congressional  prodding  un- 
less the  congressional  prodding  is  accom- 
panied by  some  form  of  congressional 
power. 

So  I  have  noticed  that,  no  matter  all 
the  Intentions  set  down  here,  they  all  add 
up  to  talk,  and  I  am  sure  the  executive 
branch  will  allow  us  here  to  keep  on  talk- 
ing and  talking  and  talking.  That  does 
not  mean  they  are  going  to  listen.  They 
are  goin<;  to  listen  only  if  we  still  have 
the  power  to  back  it  up. 

This  amendment  will  in  no  way  inter- 
fere with  this  act  one  iota.  It  provides 
that  the  FEE  A  be  established  upon  en- 
actment of  tills  bill.  But  \ihat  It  does  sav 
is  that,  come  June  30.  Congress  should 
review  FEE  A  If  there  are  modifications 
to  be  made,  so  be  it. 

I  am  sa>ing  that  we  ought  to  have  an 
opportunity  to  go  ahead  and  maJce  any 
necessary  changes  However,  we  do  not 
have  that  power  under  this  bill.  Under 
the  emergency  bill,  if  It  became  Irw.  we 
would  have  more  teeth  in  that  meflsure. 
yes  But  we  have  no  guarantee  of  that. 
I  do  not  have  any  guarantee  of  that  And 
in  fact  the  rumor  Is  to  the  contrary. 
The  rumor  may  be  wrong.  However,  what 
I  have  heard  on  the  Hill  todav  is  that 
there  Is  a  possibility  of  a  Presidential 
veto. 

If  that  happens,  we  are  stuck  with  this 
piece  of  legislation,  and  the  actions  of 
this  administrator  become  our  actions. 

That  is  the  point  that  I  am  trying  to 
make  As  far  as  Improvement  Is  con- 
cerned, believe  me.  I  believe  that  the 


crisis  is  going  to  be  with  us  for  a  long 
time.  And  any  man  with  good  aei\t>t 
knows  that  this  agency  wiU  go  hprr  for  u 
good,  long  time.  However,  once  congre*- 
sionai  power  goes,  it  is  gone  Insofar  a^ 
we  are  concerned.  We  can  wait  and  stf 
how  they  listen.  And  I  repeat  I  do  not 
intend  this  to  be  in  any  way  a  personal 
cntlcism  of  Bill  Simon  or  of  this  ad- 
ministration. Qod  knows,  hi.story  should 
teach  us  what  hatn^ei..-;  uhen  we  give  our 
power  to  the  executive  branch  of  the 
Oovernment.  It  is  extremely  difflcuJt  to 
get  back  However,  it  is  not  lmi.KKs.sible. 

Mr  President,  every  Senator  on  this 
floor  fully  understands  that  thLs  amend- 
ment will  not  interfere  wnth  the  day -by- 
day  operations  of  the  energy  czar  And 
It  enables  us  to  stand  up  to  the  American 
people  and  say.  "We  have  not  ignored 
our  emergency."  If  we  try  to  solve  the 
problem  by  dumping  it  into  the  laps  of 
the  executive  branch.  I  think  the  Ameri- 
can people  will  be  unsympathetic  if 
things  go  wrong  and  we  try  to  use  the 
argument.  "We  gave  the  power  to  the 
President."  We  are  deflnitely  involved  In 
his  decisions  and  the  decisions  of  his 
czar.  Nobody  has  gained  anything  so  far 
as  our  helping  the  American  people  or 
our  election  chances  are  concerned 

I  cannot  see  any  delay  whatsoever  as 
we  approach  the  June  30.  1974  deadline. 
I  think  thLs  legislation  will  Just  rollover. 
However,  at  least  we  have  a  talking  point 
to  the  American  people  which  we  do  not 
have  at  the  present  time. 

What  we  are  retaining  Is  the  power  to 
talk,  and  whether  It  is  at  the  conven- 
tion or  on  the  floor  of  the  United  States 
Senate.  I  would  much  prefer  to  have 
the  votes  rather  than  the  ability  to  go 
ahead  and  talk 

The  PRESIDINO  OFFICER.  Who 
yields  time? 

Mr.  PERCY.  Mr.  President.  I  shall  be 
very  brief.  Indeed,  and  I  believe  that  we 
can  then  yield  back  the  remainder  of  our 
time. 

We  have  been  very  concerned  about 
the  powers  granted  under  this  act. 

I  wish  to  assure  my  colleague  that  all 
he  has  said  about  the  bill  that  was  sent 
over  to  the  Senate  would  have  been  very 
broad.  Indeed,  and  subject  to  great  In- 
terpretation. 

The  purpose  of  the  Oovernment  Op- 
erations Committee  in  working  on  the 
hearings  was  to  be  specific  about  this. 

On  page  18  of  the  bill,  we  are  very 
limited  as  to  what  powers  are  granted  in 
this  particular  act. 

I  am  not  talking  about  the  emergency 
act. 

But.  Mr.  President,  in  thLs  case,  we 
simply  transfer  to  the  Administrator  and 
give  him  the  powers  that  are  transferred 
or  vested  In  him  pursuant  to  the  fol- 
lowing title.  And  those  are  the  powers 
that  already  exist  in  the  executive 
branch  of  the  Government. 

Then,  such  powers  as  are  delegated  to 
him  by  the  President  within  the  author- 
ity vested  in  the  President  by  other  law— 
and  again  there  is  no  additional  power 
or  authority—and  third,  otherwise  vest- 
ed in  the  Administrator  by  the  Congress 
So  again  there  is  no  power  not  granted 
by  the  Congress  of  the  United  States. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42493 


I  feel  that  in  the  over.«-it-hl  of  this  situ- 
ation, the  concerns  of  the  Senator  from 
Connecticut  will  be  watclied  very  care- 
fully. Having  talked  with  Mr  Simon,  I 
share  the  hikh  rtspect  which  the  Sen- 
ator lia.''  for  him  Hp  Is  a  man  that  knows 
h"\^  If  use  responsibility  and  wtl!  assume 
Such  res{x)nslbllity  as  the  ConRres.s  eives 
to  him  and  the  Pre.'^idcnt.  and  will  act 
with  preat  re.straint  In  the  matter  of 
taxation  and  other  matters 

Mr  RIBirOFF.  Mr  President,  I 
would  like  to  point  out  to  my  colleague 
from  Conni  f tlcut  thsU  on  pace  45  ^Mction 
122,  wc  specifically  require  the  admin- 
istrator within  120  days  to  develop  and 
report  to  the  ConKress  for  referral  to  the 
Committees  on  Oovornmcnt  Operations 
and  Interior  and  Insular  Affairs  of  the 
Senate  and  House  of  Pepresentatives,  a 
comprehensive  plan  designed  to  alle\iate 
the  energy  shortage  It  is  specified  that 
this  plan  must  give  the  Conuress  all  the 
facts  and  analyze  them  It  must  include 
estimates  on  the  energy  savings  pro- 
duced by  everj'thlng  he  has  done,  the 
estimates  of  any  windfall  gains  experi- 
enced by  corporations,  estimates  of  the 
effect  of  the  Administrator's  actions  on 
Individual  citizens  grouped  by  socio- 
economic class,  estimates  of  the  Impact 
on  the  supply  and  con^^umptlon  of  energy 
forms  of  price  changes  Finally,  the  re- 
port must  include  a  description  of  pos- 
sible alternative  actions  and  a  discussion 
of  the  desirability  of  adopting  such  al- 
ternative actions. 

In  other  words,  what  we  require  the 
Administrator  to  do  2  months  before 
June  30,  1974,  is  to  present  to  both  com- 
mittees, the  Government  Operations 
Committee  and  the  Interior  and  Insular 
Aft  airs  Committee  of  both  Hou.ses,  a  com- 
prehensive report  describing  and  analyz- 
ing the  complete  energy  program  adopted 
by  FEEA.  This  would  give  us  an  oppor- 
tunity to  have  committee  hearings  and 
to  come  up  with  alternative  proposals 
or  even  legislation  to  eliminate  the 
FEEA,  such  a  mea.sure  could  be  brought 
to  the  floor  long  before  June  30.  1974.  If 
the  FEEA  was  doing  a  bad  Job  or  the 
plan  was  not  working. 

I  do  believe  that  the  committee  was 
deeply  concerned  with  the  problems  that 
may  arise  as  the  agency  begins  to  fimc- 
tlon.  We  hope  to  be  able  to  exercise  our 
oversight  functions,  and  even  better  than 
that,  to  come  up  with  amendments  and 
alternate  suggestions. 

The  Senator  Is  correct.  This  adminis- 
tration is  going  to  be  in  existence  long 
beyond  Jime  30,  1975.  But  creation  of 
FEE.'V  is  only  an  Interim  step.  We  are 
going  to  have  to  have  a  Department  of 
Energy  and  Natural  Resources  We  will 
have  to  fold  at  lea.'^t  some  of  these  dif- 
ferent functions  the  administration  will 
exercise  under  this  bill  Into  such  a  new 
department,  for  the  energy  problems  will 
be  with  us  for  the  next  two  or  three 
decades 

I  would  hope  that  the  President  and 
each  of  the  admlnLstrations  we  are  creat- 
ing to  deal  with  the  onergv  probh  m  will 
get  about  their  buslne«v  and  start  to  deal 
vvith  the  problems  of  the  world  in  the 
field  of  energy. 

I  am  deeply  concerned  about  trying 
t<)  establl-sh  an  agency  and  expecting  It 


to  work  eCecllvely  in  a  pericxi  of  6 
months  It  just  wiil  not  work  And  an> 
of  us  who  h&w  Deen  mvolved  will,  any 
part  of  government — State.  local,  or  Fed- 
eral— realize  that  we  cannot  create  an 
agency  with  the  power  that  this  agency 
will  have  with  a  budget  eventually  of 
$200  miUion,  and  have  it  operate  for  only 
6  months.  It  ja^t  will  not  work 

While  I  am  sympathetic  with  the  £tp- 
proach  and  the  concerns  of  my  col- 
league. I  cannot  see  how  he  can  propcse 
making  this  agenry  an  effective  one  if  he 
gives  it  a  life  o!  just  6-month.^  duration 
Mr.  WEICKER  Mr.  President,  I  yield 
myself  such  time  ;is  I  may  require 

The  PRESIDING  OFFICER.  The  Sen- 
ator has  10  minutes  remaimng. 

Mr.  WEICKEf-?  I  U.SK  the  Senator,  why 
do  you  liiink  that  you  have  heard  of  the 
potential  of  a  Presidential  veto  on  the 
Energy  Emerginry  Act^  Why?  I  know 
why.  Because  there  are  checks  in  there, 
congressional  checks  on  Presidential  ac- 
tion That  is  why  the  legislation  is  sus- 
ceptible to  veto. 

I  am  not,  thank  heaven,  a  tactician  in 
the  White  House  on  these  matters.  But 
I  suspect  that  there  might  be  the  idea 
that  they  would  go  ahead  and  veto  the 
Energy  Emergency  Act.  and  just  allow 
this  act  to  stand  as  the  energy  legisla- 
tion on  the  books. 

If  that  happens,  then  there  are  no 
effective  congressional  checks.  The  pow- 
ers which  mv  distinguished  colleague 
from  Connecticut  read  to  me  as  being 
transmitted  or  turned  over  to  the  ad- 
ministrator are  sweeping.  Those  powers 
that  the  President  has  under  the  various 
laws  of  the  land  can  be  turned  over  to 
the  administrator,  and  believe  me,  know- 
ing the  way  power  Is  Interpreted  down 
there,  that  means  almost  anything. 

So  I  cannot  agree.  I  tliink  we  are  on 
notice. 

We  are  on  notice,  as  far  as  I  am  con- 
cerned, that  what  sticks  In  the  craw 
downtown  Is  the  potential  of  a  congres- 
sional check  on  this  agency.  We  ar^  on 
notice,  and  if  we  choose  to  ignore  it,  then, 
as  I  said,  we  are  stuck  with  the  results. 
There  is  all  the  great  language  m  the 
world  here,  and  the  Energy  Administra- 
tor ha.":;  to  ccme  and  report  to  the  various 
committees  as  to  what  Is  going  on,  but 
there  is  nothing  to  say  he  is  going  to  re- 
linquish one  bit  of  the  power  we  give  him 
today,  in  the  event  this  bill  is  approved. 
Mr.  RIBICOFF.  Mr.  President,  let  me 
note  that  in  the  event  of  a  veto  of  the 
Presidents  energy  bill,  then  the  FEE.^ 
bill  we  are  now  considering  clearly  con- 
fines the  authority  of  the  administrator. 
He  will  have  orUy  the  authority  which 
we  give  him  In  this  bill,  and  that  will  be 
merely  to  e.xercise  the  functions  bestowed 
by  the  other  acts  on  four  unites  of  Inte- 
rior, plus  the  Energy  Division  of  the  Cost 
of  Living  Council,  So  the  ad.-r.inistrator 
will  not  have  a  b]ai:ik  check  He  will  really 
acquire  authority  only  if  Congress  parses 
the  conference  report  on  the  emergency 
bill  and  the  President  signs  the  bill. 

My  staff  Informs  me.  after  calling  the 
House  of  Representatives,  that  a  similar 
bin  In  the  House  has  been  reported  out 
of  committee,  with  3  days  given  to  file 
additional  or  minority  views,  which  will 
take  It  to  Friday.  Then  It  has  to  go  to 


•fie  Rules  Committee,  as  I  vinderstaiid  it, 
and  It  has  to  lay  over  3  days,  and  any 
Member  of  that  body  can  object,  and 
(.onsequently  we  may  find  ourselves 
without  an  emergency  biU  or  an  FEEA 
bill  I  hope  neither  event  takes  place, 
because  the  couiilry  has  problems,  we 
are  m  the  middle  of  a  crisis,  and  I  would 
like  to  see  some  action.  But  that  action 
IS  going  to  recjuirc  the  cooperaUon  of 
Congress  und  tlie  Pre.s;dent  oi  the  United 
^U-i  tes. 

Mr.  WEICKER.  Mr  President,  1  yield 
myself  such  time  as  I  may  require. 

I  think  one  thing  should  be  made  very 
clear  That  if  my  amendment  were 
adopted,  it  would  m  no  wise  slow  down 
the  passage  of  this  legislation  through 
Congress.  The  House  has  not  acted:  it  is 
perfectly  possible  to  go  ahead  arid  amend 
It  on  the  floor  of  the  House. 

But  I  want  to  point  out  again,  that 
the  section  which  gives  to  the  Adminis- 
trator his  power  transfers  to  or  vests  in 
him  by  or  pursuant  to  this  title.  Of 
course,  we  have  limited  it.  but  the  provi- 
sion for  authority  delegated  to  him  by 
the  President  of  the  authonty  vested  in 
the  President  by  other  law  ' — that  to  me 
is  a  wide  open  and  extraordinary  invita- 
tion to  any  conceivable  action  or  policy 
on  the  part  of  FEEA, 

I  have  to  U-ke  is.'^ue  with  my  esteemed 
colleague  on  this  point  Ttie  President 
could  very  well  veto  the  Einergency  En- 
ergy Act,  and  we  would  end  up  with  this 
measure  on  the  booki,  and  have  a  far 
more  breachable  system,  because  it  does 
not  subject  Itself  to  any  sort  of  congres- 
sional check,  as  the  conference  report 
does.  It  is  as  simple  as  that. 

And  let  me  say  this  also:  If  the  prin- 
ciple of  enticing  able  people  for  Wash- 
ington requires  me  to  give  up  powers 
vested  in  me  by  the  people  of  Connecti- 
cut, they  will  have  to  do  something  else 
to  entice  people  down  here.  This  is  not  a 
6-month  deal.  We  are  well  aware  that 
this  agency  will  be  around  here  for  a  long 
time  to  come.  But  I  think  it  especially 
important  at  the  outset  that  we  make  it 
subject  to  some  son  of  congre-ssional  re- 
new, and  there  will  be  no  e^ecUve  re- 
view with  this  act  alone.  \^'hatever  re- 
view is  required  will  ccxne  through  the 
Energy  Emergency  Act. 

So,  before  I  yield  back  the  remainder 
of  my  time,  I  would  point  out  that  I  am 
trying  to  warn  of  the  difficulties  before 
they  occur,  and  that  nobody  is  going  to 
be  able  to  hide  behind  the  fact  that  that 
is  the  President's  business.  It  Is  not  the 
President's  business.  It  is  our  business, 
except  that  we  have  given  up  any  power 
to  affect  the  result,  and  I  do  not^HSmk 
that  wiU  be  received  in  very  kindly  fash- 
ion by  the  .\merica.n  people  If  things  go 
wTong. 

So.  having  Issued  the  warning,  there 
seems  to  be  nothing  else  that  I  think  I 
can  add  to  the  debate,  and  I  yield  back 
the  remainder  of  my  time. 

Mr.  RIBICOFF.  Mr.  President,  I  yield 
3  minutes  to  the  Senator  from  Nebraska. 


VIETN.«lM  VETER.*NS  DAY 

Mr.  HRUSKA.  Mr.  President,  I  rise  for 
the  purpose  of  making  a  unanimous  con- 
sent request  in  regard  to  House  Joint 


42494 


CONGRESSIONAL  RECORD  — SENATE 


ResoluUon  865.  a  joint  resolution  au- 
thorizing and  directing  the  President  to 
l»ue  a  proclamaUon  designating  March 
29.  1974.  as  "Vietnam  Veterans  Day." 

Before  I  make  that  request.  I  want  to 
say  that  the  matter  has  been  cleared  with 
the  leadership  on  both  sides  of  the  aisle, 
with  the  chairman  and  the  ranking 
minority  member  of  the  Veterans  Af- 
fairs Committee,  and  with  the  chairman 
of  the  Judiciary  Committee,  the  Sena- 
tor from  Mississippi  '  Mr.  Eastland  i 

The  request  is  this;  I  ask  unanimous 
consent  that  the  Committee  on  the  Judl- 
ciarj-  be  discharged  from  further  con- 
^«ideratton  of  the  jomt  resolution,  and 
that  the  Senate  proceed  to  its  immediate 
consideration. 

The  PRESIDING  OFFICER  (Mr. 
GoLDWATM  > .  The  joint  resolution  will 
be  stated  by  title. 

The  legislaUve  clerk  read  as  follows : 

A  Joint  resolution  (House  Joint  Resolution 
8«5)  •uthortztng  the  President  to  proclaim 
March  29.  1974.  as     Vietnam  Veteran*  Day." 

The  PRESIDING  OFFICER  Is  there 
objection  to  the  requests  of  the  Sena- 
tor from  Indiana  The  Chair  hears  none, 
and  It  is  so  ordered. 

Accordingly,  the  joint  resolution  was 
considered,  ordered  to  a  third  reading, 
was  read  the  thijd  time  and  passed 


FEDERAL  ENEKUV  EMERGENCY 
ADMINISTRATION  ACT 

The  Senate  continued  with  the  con- 
sideration of  the  bill  (S.  2776)  to  pro- 
vide for  the  effective  and  efficient  man- 
agement of  the  Nations  energy  policies 
and  programs. 

The  PRESIDING  OFFICER.  Who 
yields  time? 

Mr.  PERCY  Mr.  President,  I  yield  back 
the  remainder  of  my   time. 

Mr.  WEICKER.  I  yield  back  the  re- 
mainder of  my  time. 

The  PRESIDING  OFFICER  fMr. 
GoLDWATCT  >  AH  remaining  time  having 
been  yielded  back,  the  question  is  on 
agreeing  to  the  amendment  'No.  929"  of 
the  Senator  from  Connectlcult  (Mr. 
Weicktr).  On  this  question,  the  yeas 
and  nays  have  been  ordered,  and  the 
clerk  will  call  the  roll. 

The   legislative  clerk  called  the  roll 

Mr  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Idaho  (Mr. 
CHTitcH'.  the  Senator  from  Mississippi 
'  Mr  Eastlaitd  > ,  the  Senator  from  Alaska 
'Mr.  G»Avn,i.  and  the  Senator  from 
South  Carolina  'Mr.  Hoixntcs)  are  nec- 
essarily absent. 

Mr  GRIFFIN  I  announce  that  the 
Senator  from  Utah  'Mr.  Bcnfxrr>,  the 
Senator  from  Tennessee  <Mr.  Bbock>, 
the  Senator  from  Massachusetta  'Mr! 
BtooKri,  the  Senator  from  Idaho  'Mr 
McO-CEX'.  the  Senator  from  Ohio 
'  Mr.  Saxb£)  .  and  the  Senator  from  Texas 
'  Mr  Town  ■  are  necessarily  absent 

The  Senator  from  New  Hampshire 
'Mr.  CoTTow  is  absent  because  of  111- 
neas  In  his  family. 

If  present  and  voting,  the  Senator 
from  Texaa  <Mr  Town;  would  vote 
"nay." 

The  result  w««  amioonced — yea«  ii 

nayi  77.  ««  follow! ; 


• 

(No.  603  L««.| 

TEAS     U 

Baker 

Buckley 

Heima 

B«aU 

Cook 

Pack  wood 

Bfllraon 

Ooldwater 

Weicker 

Blden 

Orlffln 

NAT&— 77 

Abourezk 

Hart 

Nelann 

.Mkf-n 

Hartke 

Nunn 

Allen 

Haakell 

Paatore 

Bartlett 

Hatileld 

Pearson 

Bayli 

Hathaway 

Pell 

B?n*,«n 

Hruska 

Percy 

Bible 

HMddlMton 

Proimlre 

Burdlct 

Huchea 

Randolph 

Byrd. 

Humphrey 

Rlblccff 

Kattv  p.. 

Jr.     Incuye 

Ruth 

BjTcl.  Rybert  C  Jackaon 

Schwelker 

Cannon 

Javlta 

Soott.  Hugh 

Caae 

Scott. 

ChUes 

Kennedy 

William  L. 

Clark 

Long 

Sparkman 

Cranston 

SUITord 

Curtia 

Manaheld 

Stennl* 

Dole 

Uathlaa 

Stevens 

Dcmenlcl 

UcCl?Ilan 

Stevenson 

Dommick 

MrOL-e 

Symington 

Bag]  etc  a 

UcOoTem 

Talmadge 

Ervin 

Uclatyre 

Thurmond 

Paonin 

Metoalf 

Tunney 

Ftong 

Mondale 

Will  lams 

Fu;brl?ht 

tlontoya 

Young 

Gumey 

Mom 

MiL^le 

NOT  VOTINO— 13 

Bennett 

Cotton 

McClun 

Brock 

Eastland 

Cuilii  * 

Crocke 

Gravel 

Taft 

Church 

Hollln^s 

T^wer 

So    Mr. 

Wkickih's    amendment    w 

rejected. 

FEDERAL  FINANCING  BANK 
Mr.  SPARKMAN.  MTpresident.  I  sub- 
mit a  report  of  the  committee  of  confer- 
ence on  HH.  5874.  and  ask  for  its  im- 
mediate consideration. 

The  PRESIDING  OFFICER  (Mr  Hud- 
DLESTONJ.  The  report  will  be  stated  by 
Utle. 

The  legislative  clerk  read  as  follows: 
The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houaee  on  the 
amendment  of  the  Senate  to  the  bill  (H^. 
587>)  to  establish  a  Federal  Penancing  Bank, 
to  proTlde  for  coordinated  and  more  efficient 
t^^nclng  of  Federal  and  federally  assUtted 
borrow Inga  from  the  public,  and  for  other 
purpceea.  haying  met.  after  full  and  free  oo:i- 
r«ence.  have  agreed  to  recommend  and  do 
recommend  to  their  respective  Ho\j»e  this  re- 
port, signed  by  a  majority  of  the  conferees. 

The  PRESIDING  OFFICER.  Is  there 
objectictti  to  the  consideration  of  the  con- 
ference report? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  report. 

(The  conference  report  Is  printed  in 
the  House  proceedings  of  the  Concrbs- 
siONAL  RrcORO  of  December  5,  1973  at 
pp  39740-39741  • 

Mr  SPARKALAN.  Mr  President,  on 
December  4.  1973.  the  House  and  Senate 
conferees  met  and  agreed  to  what  I  be- 
lieve is  a  good  version  of  HM.  5874.  a  bUl 
to  establish  a  Federal  Financing  Bank. 

The  Senate  version  of  the  bill  required 
prior  approval  by  the  Secretary-  of  the 
Treasury  of  financing  plan'?  for  obliga- 
tions issued,  sold,  or  guaranteed  by  any 
Fwleral  agency  The  House  version  re- 
quired Treasury  approval  for  obligations 
Usued  or  sold  by  any  Federal  agency  but 
did  not  require  prior  approval  for  obli- 
gations   guaranteed    by    any    Federal 


December  19,  1973 


^acy.      Tlie      conference      committ«'e 
lM0Bt«4|lie  House  version. 

Tllft  SoiaU;  vers,iuii  of  ihe  bill  ex- 
empted from  the  prior  tipprovaJ  requirt-- 
ment  the  obllgatioixs  of  the  FHrmers 
Home  AdmlnistraUon.  The  HoLu>>e  v>r- 
aion  did  not  coi.tain  thLs  provlsK-n  The 
conference  conimutee  adopted  the  Sen- 
ate version. 

The  House  version  of  the  bill  provided 
that  the  Secretary  of  the  Trra.sury  shall 
not  withhold  approval  of  1-  ederaJ  agency 
financing  plans  for  more  than  120  days 
unless  within  that  period  he  submits  to 
Congress  a  detailed  explanation  of  his 
reasons  for  so  doing.  The  Senate  version 
provided  that  the  Secretar>'  may  with- 
hold approval  for  only  60  dajs  without 
submitting  to  Congress  a  detailed  expla- 
nation of  the  reasons  for  so  doing  and 
also  that  in  any  case  the  Secretary  may 
not  withhold  approval  for  more  than  120 
days.  The  conference  committee  adopted 
the  Senate  version. 

The  conference  committee  also  adopt- 
ed a  Senate  provision  not  in  the  House 
version  which  provides  that  to  the  max- 
imum extent  practicable  withholdings  of 
approval  ars  to  be  made  In  a  manner 
which  Is  not  disproportionately  detri- 
mental to  the  functioning  of  any  partic- 
ular type  of  Federal  program. 

The  House  version  of  the  bill  contained 
a  provision  that  nothing  in  the  bill  was 
to  be  construed  as  authorizing  an  in- 
crease in  the  amount  of  obligations  is- 
sued sold  or  guaranteed  by  any  Federal 
agency  which  Issues.  seUs.  or  guarantees 
obligations  purchased  by  the  bank  The 
Senate  version  did  not  contain  this  pro- 
vision. The  conference  committee  adopt- 
ed the  House  language. 

The  Senate  version  of  the  bill  con- 
tained a  provision  declaring  it  to  be  the 
sense  of  the  Congress  that  the  United 
States  should  take  the  necessary  meas- 
ures to  enable  it  to  sell  gold  from  Its  gold 
stocks  to  licensed  domestic  users.  The 
House  version  did  not  contain  this  lan- 
guage. The  conference  committee  agreed 
not  to  Include  this  language  in  the  con- 
ference version. 

Mr.  President.  I  urge  the  adoption  of 
the  conference  report. 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  conference 
report. 
The  conference  rer>ort  was  agreed  to. 


FEDERAL  ENERGY  EMERGENCY 
ADMINISTRATION  ACT 

The  Senate  continued  with  the  con- 
sideration of  the  bill  (S.  2776)  to  pro- 
vide for  the  effective  and  efficient  man- 
agement of  the  Nation  s  energy  policies 
and  programs 

Mr  HANSEN  Mr.  President.  I  send 
an  amendment  to  the  de.sk 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  legislative  clerk  read  as  follows: 

At  page  48,  after  line  17.  insert  a  new  sub- 
section  (C)  to  read  as  follows: 

"(c)  The  Administrator  shall  within  30 
days  of  the  date  of  this  Act.  review  the  pro- 
vUlona  of  section  20«  of  the  National  Energy 
Emergency  Act  regarding  expedited  pro- 
cedures for  compliance  with  the  National 
EnvlronmenUl  Policy  Act  of   1960    ,83  Btat. 


Deceynber  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


856)  and  shall  recommend  to  the  Congress 
such  additional  actions  under  the  Adminis- 
trator's authority  which  may  require  sUallaj 
procedures." 

Mr.  HANSEN.  Mr.  President.  I  ask  the 
distinguished  floor  manager  of  the  bill 
and  his  counterpart  if  they  would  be 
willing  to  accept  thus  amendment 

Mr.  RIBICOPT  Mr.  President.  I  accept 
the  amendment  ol  the  Senator  from 
Wyoming. 

Mr.  PERCY.  Mr.  President.  I  accept 
with  pleasure  the  amendment  of  the 
Senator  from  Wyoming. 

Mr.  HANSEN.  I  thank  my  colleagues. 

I  yield  back  the  remainder  of  my  time 

Mr.  RIBICOPF.  I  yield  back  the  re- 
mainder of  my  time. 

The  PRESIDING  OFFICER.  All  time 
is  yielded  back. 

The  question  is  on  agreeing  to  the 
amendment  of  the  Senator  from 
Wyoming. 

The  amendment  was  agreed  to. 

Mr.  JAVTTS.  Mr.  President.  I  send  an 
amendment  to  the  desk. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  legislative  clerk  read  as  follows: 

On  page  32,  after  Sec.  U2(a)  (6)  insert  the 
following  new  paragraph  and  number  other 
paragraphs  accordingly: 

"(7)  on  low  and  middle  income  families 
as  defined  by  the  Bureau  of  Labor  Statistics." 

Mr.  JAVrrs.  Mr.  President.  I  submit 
this  amendment  for  myself.  Senator 
Kennedy,  and  Senator  Percy.  This  is 
Senator  Kennedys  am«idment.  I  am  in 
sympathy  with  it  and  support  it,  and 
I  urge  it  upon  the  Senate.  Senator  Percy 
has  joined  me  in  this. 

All  the  amendment  would  do  would 
be  to  Insert,  as  one  of  the  criteria  for 
considering  the  economic  impact  of  reg- 
ulatory and  other  actions  on  the  Ameri- 
can economy,  the  consideration  of  the 
effect  on  low-  and  middle-income  fam- 
ilies as  defined  by  the  Bureau  of  Labor 
Statistics.  I  hope  the  amendment  will 
be  accepted. 

Mr,  RIBICOFP.  Mr.  President,  on  be- 
half  of   the    committee,   I   accept   the 
amendment. 
Mr.  PERCY.  I  accept  the  amendment 
Mr.    JAVrrS.    I    yield    back    the   re- 
mainder of  my  time. 

Mr.  RIBICOFF.  I  yield  back  the  re- 
mainder of  my  time. 

The  PRESIDING  OFFICER.  All  time 
has  been  yielded  back.  The  question  is 
on  agreeing  to  the  amendment. 
The  amendment  was  agreed  to. 
Mr.  KENNEDY,  Mr  President,  the 
bill  before  the  Senate  requires  that  the 
actions  contemplated  by  the  new  Fed- 
eral Energy  Emergency  Administration 
be  analyzed  in  terms  of  their  Impact  on  a 
variety  of  groups  and  organizations. 

I  have  no  argument  with  the  list  con- 
tained within  section  112 (a>. 

However.  I  would  urge  that  this 
amendment  be  adopted  to  provide  one 
additional  Item  covering  low-  and  mid- 
dle-Income families. 

My  concern  is  that  in  the  mounting 
shortage  and  in  the  splraling  prices  af- 
fecting home  heating  oil.  gasoline  and 
other  products,  the  consumers,  particu- 
larly the  poor  and  the  workers,  does  not 

OXrX 2678— Part  33 


42495 


now  appear  to  be  of  more  than  passing 
concern. 

The  impact  on  their  ability  to  eco- 
nomically survive,  for  example,  appears 
to  be  lacking  in  the  pressure  now  on  for 
a  "sky's-the-Umit"  price  policy  for  all 
forms  of  energy. 

I  do  not  think  that  we  should  forget 
that  our  first  concern  is  with  people  and 
with  the  impact  of  our  policies  on  people. 

In  that  regard,  I  would  hope  that  any 
proposal  that  promotes  the  use  of  high 
prices  as  a  means  of  damping  down  con- 
sumer demand  for  energy  reallv  means 
placing  the  heaviest  burden  of  the  cur- 
rent shortage  on  the  backs  of  the  poor 
and  on  the  backs  of  working  men  and 
women. 

I.  therefore,  suggest  this  amendment 
as  an  appropriate  addition  to  the  list 
now  contained  within  the  bill  and  urge 
its  adoption. 

Mr.  DOLE.  Mr.  President,  the  Federal 
Energy  Emergency  Administration  Act 
is  a  highly  significant  item  in  the  catalog 
of  legislation  designed  to  meet  and  solve 
the  energy  crtsls. 

It  differs,  however,  in  a  basic  respect 
from  the  other  bills  we  have  dealt  with 
recently.  These  other  measures— the 
Emergency  Energy  Act,  the  mandatory 
aUocation  biU,  research  and  develop- 
ment, and  daylight  saving  time,  for  ex- 
ample—were concerned  with  specific 
plans  and  programs  to  attack  our  energy 
problems  and  lead  to  solutions. 

DIRECTED    TOWAiD    MANAGEMENT 

The  bill  before  us  today,  however,  does 
not  deal  with  specific  programs;  rather 
it  Is  directed  toward  e.^tablL^Oilng  the 
means  to  manage  our  energy  crisis  poli- 
cies and  programs  with  the  utmost  de- 
gree of  efficiency  and  effectiveness 

♦  u  .  ^^.^^P^^  ^  "o  '^>'^'  important  than 
the  individual  programi;,  and  indeed  it  Is 
essential  to  their  success  For  without  a 
sound  organizational  approach  to  man- 
aging these  many  complex,  controver- 
sial, and  powerful  programs,  we  could 
expect  only  hopeless  confaslon.  growing 
frustration  and  ultimate  failure  in  the 
drive  to  weather  our  present  emergency 
and  reach  the  goal  of  energy  self-suffi- 
ciency for  America. 

One  of  the  preat  difficulties  with  Gov- 
ernment In  recent  years  ha^  been  the 
fragmentation  of  policy  leader.shlp  and 
dispersion  of  admlrUstratlve  authoritv 
throughout  the  many  levels  and  divi- 
sions of  the  executive  branch  In  part 
this  factor  has  contributed  tci  todaVs 
energy  difficultie.^:  No  one  aeenov  or  de- 
partment has  had  the  authoritv  infor- 
mation, staffing,  or  m.-indate  to  deal  with 
the  entire  range  of  energy  issues,  and 
elimination  of  this  ob.'^tacle  is  a  primary 
objective  behind  the  proposed  establish- 
ment of  a  cabinet-level  Department  of 
Energy  and  Natural  Re>ource.<;  For  a 
number  of  reasons,  this  proposal  has  not 
been  implemented,  but  with  growing 
public  awareness  of  energv  Lssues,  per- 
haps it  will  receive  additional  attention 
in  the  coming  months. 

In  any  event  the  Federal  Energv- 
Emergency  Act  takes  a  major  step 
toward  consolidating  at  least  the  crisis 
aspects  of  our  energy  policy  in  one  pla.-e. 
And  I  believe  this  is  a  basic  req-direrient 


for  today's  situation  and  a  good  first  step 
toward  establishing  a  better  naticxial 
energy  policy  mechanism  for  the  future. 

POWKHrUL     ADMDOSTRATOB 

Turning  to  the  specifics  of  the  bill, 
I  beUeve  there  should  be  clear  recogni- 
tion that  the  post  of  FEEA  .'Administra- 
tor will  be  one  of  the  most  powerful  in 
the  Government.  The  bills  lanpijage 
specifically  transfers  the  current  broad 
energy  policy  authority  of  the  Se<'retarT 
of  the  Interior  and  the  Chairman  of  the 
Cost  of  Living  Council  to  the  Adminis- 
trator. It  also  authorizes  the  President, 
subject  to  congressional  approval,  to  be- 
stow upon  the  Administrator  any  other 
authority  of  the  executive  branch  of 
Government  which  would  further  the 
purposes  of  this  act. 

When  this  language  is  Mewed  In  light 
of  the  extremely  strong  provisions  of  re- 
cent energy  legislation— parUcularly  the 
rationing  and  conservation  features  of 
the  Emergency  Energy  Act — it  Ls  obvious 
that  we  are  creating  a  position  of  power 
without  precedent  in  our  recent  hi-^torv. 
This  Administrator  will  be  empowered 
to  touch  the  life  of  every  American  and 
can  be  fully  expected  to  do  so  in  the  ex- 
ercise of  these  wlderanging  powers  with 
an  initial  estimated  staff  of  3.000  and 
an  annual  budget  of  at  least  $200  million. 

BASIC     rKATTRes 

So  with  that  point  in  mind,  we  can 
view  thg  other  provisions  of  the  bill 
with^eater  clarity  and  appreciation  for 
their  importance. 

Organizationally,  the  bill  pulls  to- 
gether a  number  of  existing  Federal  of- 
fices from  the  Interior  Department  and 
the  Cost  of  Living  Council  under  the 
FEEA's  roof.  It  sets  up  the  admmistra- 
tlve  structure  and  sets  down  the  basic 
rules  for  bureaucratic  housekeeping 
which  apply  to  any  Federal  instrumen- 
tality. The  Administrator  will  have  a 
deputy,  a  general  counsel,  six  assistant 
administrators,  and  so  on  down  the  list. 

In  carrying  out  its  funcUons  the 
FEEA  will  be  subject  to  a  number  of  re- 
qu^ments  to  enhance  the  openness  and 
faifness  of  its  operations.  These  include 
disclosure  requL-ements  for  information 
related  to  it^<;  actions,  .^^equirements  that 
advL=:ory  committees  assure  affected  sec- 
tors of  the  economy  and  private  citizens 
an  input  as  the  decisionmaking  process 
unfolds:  and  establishment  of  a  special 
mechanism— the  office  of  private  griev- 
ances and  redress— to  see  that  the  lltUe 
guy— the  private  citizen  and  the  sina.\\ 
busines.sman— is  not  squeezed  between 
major  policies  directed  toward  giant  ele- 
ments of  the  economy.  Emphasis  is  also 
given  to  the  importance  of  involving 
State  and  local  governments  is  these  pro- 
grams and  proMdlng  them  with  ample 
support  for  coordination  and  technical 
assistance, 

coNTintNci  azqtriKEi) 
While  all  of  these  provisions  are  im-  " 
portant  I  believe  parUcu^ar  mention 
should  be  given  to  the  requirement  that 
regular  disclosure  of  pertinent  Informa- 
tlon  be  made  and  that  advisory  commit- 
tees broadly  represent  those  whose  con- 
cerns will  be  affected  by  the  outcome 
of  particular  policy  deliberations. 


424% 


CONGRESSIONAT    R  FCOR n  —  SEN ATF 


December  19,  197S 


To  be  fully  effective  our  emergency 
energy  programs  must  have  the  confi- 
dence of  the  country.  Not  only  must  Gov- 
ernment officials  have  confidence  In  their 
decisions  and  the  mandate  under  which 
they  operate,  but  the  business  communi- 
ty, industry,  labor  o^anlzations.  and  the 
average  citizen  must  be  confident  that 
our  energy  emergency  policies  are  being 
pursued  with  the  utmost  fairness  to  ev- 
eryone concerned.  There  is  no  question 
that  sacrifices  will  be  required  to  deal 
with  our  energy  problems  Inconvenience 
will   be   unavoidable:    economic   loss   is 
likely.  The  process  of  solving  these  diffi- 
culties will  not  be  easy  or  pleasant,  but  it 
must  be  done.  And  if  we  can  maintain 
the  confidence  and  trust  of  this  country 
as  we  go  down  this  difficult  road,  much 
of  the  battle  will  be  won.  So  installing 
every  possible  safeguard  and  strengthen- 
ing every  available  mechanism  to  create 
an  open  and  fair-on-lts-face  operation 
will  be  well  worth  the  effort  and  will  pay 
substantial  dividends  as  we  move  ahead. 
No    segment    of    any    Industry- — par- 
ticularly the  energy  industries — should 
be  put  in  the  position  of  feeling  that 
another  segment  is  being  favored,  having 
its  voice  heeded  to  the  exclusion  of  others 
or  dominating   a  particular   forum.   In 
this  regard  I  would  note  my  amendment 
to  the  Senate's  Emergency  Eiiergy  Act 
which   requires   that   independent   seg- 
ments of  the  petroleum  industry  be  rep- 
resented on  the  National  E^nergy  Emer- 
gency  Advisory   Committee.  The   inde- 
pendent sectors  of  the  energy  industry — 
producers,    refiners,    transporters,    and 
wholesale  and  retail  marketers  are  high- 
ly important — to  the  future  of  our  coun- 
try Admittedly,  these  segments  have  dif- 
ferent points  of  view  from  the  major  in- 
tegrated oil  companies  which  receive  the 
majority  of  public  attention  in  discussion 
of  energy  Issues.  Thus  it  was  recognized 
that  assurance  should  be  provided  that 
the  independent  of  the  energy  Industry 
would  be  represented  on  the  National  En- 
ergy Emergency  Advisory  Committee. 

This  same  principle  applies  to  other 
industries,  other  Interests,  and  other  ad- 
visory committees,  and  I  am  pleased  to 
see  it  receive  such  clear  recognition  and 
general  application  in  this  bill.  I  believe 
it  represents  a  unique  attempt  to  con- 
struct the  administration  of  a  program 
in  such  a  way  as  to  head  off  a  crisis  in 
confidence  before  it  develops  and  to  see 
that  the  program  actually  works  to  In- 
crease that  vital  element  of  public 
response. 

A     GOOD     8TAJIT 

In  conclusion  let  me  say  that  all  signs 
to  date  point  to  this  energy  policy  man- 
agement agency  being  laimched  on /the 
right  foot  and  on  a  positive  note. 

The  President  has  established  the 
foundation  for  the  PEEA  by  creation  6i  a 
Federal  Energ-y  Office  in  the  White 
House.  He  has  named  Deputy  Treasury 
Secretary  William  Simon  to  be  its  Direc- 
tor and  has  announced  that  Mr.  Simon 
will  be  his  nominee  for  the  post  of  PEEA 
Administrator.  Mr.  Simon,  during  his  rel- 
atively brief  tenure  at  Treasury  and  m- 
volvement  in  energy  matters  as  head  of 
Jbe  Oil  Policy  Committee,  has  won  wide 
respect  in  and  out  of  Government  as  a 
mast  competent  and  effective  Individual. 


He  is  already  at  work  on  the  problems 
of  the  energy  crisis  and  the  policies  which 
will  soon  be  his  responsibility  under  the 
bill  we  are  considering 

The  Congress  has  responded  to  the  ad- 
ministrations  request  for  legislative  es- 
tablishment of  the  FEEA  with  unusual 
dispatch  and.  I  might  add.  with  some 
constructive  additions  and  improvements 
on  the  bill  as  originally  outlined. 

Therefore.  I  believe  full  congressional 
approval  of  the  bill  to  establish  the  FEEA 
wlU  launch  this  unique  and  powerful 
agency  in  an  appropriate  atmosphere  of 
cooperation  and  joint  recognition  that 
solutions  to  energy  crisis  require  the  ut- 
most in  coordinated,  constructive  efforts 
by  every  American. 

Thfi  PRESIDING  OFFICER.  The  bill  Is 
open  \o  further  amendment. 

The  question  is  on  agreeing  to  the 
committee  amendments  in  the  nature  of 
a  substitute,  as  amended. 

The  committee  amendment  In  the  na- 
ture of  a  substitute,  as  amended,  was 
agreed  to. 

The  PRESIDING  OFFICER.  The  ques- 
tion Is  on  the  engrossment  and  third 
reading  of  the  bill. 

The  bill  was  ordered  to  be  engrossed 
for  a  third  reading  and  was  read  the 
third  time 

Mr.  GOLDWATER.  Mr.  President,  will 
the  Senator  from  Illinois  yield  me  1 
minute? 

Mr.  PERCY  I  yield. 
Mr.  GOLDWATER.  Mr.  President.  I 
have  not  yet  determined  whether  I  will 
vote  for  this  measure.  My  lack  of  deter- 
mination Is  based  solely  on  the  fact  that 
we  have  spent  almost  a  month  debating 
and  arguing  about  energy;  smd  with  the 
exception  of  the  Alaska  pipeline.  I  can- 
not remember  a  single  thing  we  have 
done  to  give  the  American  people  more 
fuel. 

We  have  passed  a  lot  of  regiilatlons; 
we  have  made  penalties;  we  have  done 
this  and  have  done  that;  but  I  think 
It  is  time  we  got  down  to  the  business 
of  drilling  some  holes  In  the  ground  and 
finding  oil  and  gas.  finding  something 
to  help  the  American  people,  other  than 
penalties  to  say  what  is  going  to  happen 
to  them  if  they  violate  this  or  that. 

I  am  very  disappointed  In  what  we 
failed  to  achieve  so  far.  While  I  do  not 
know  how  I  am  going  to  vote  I  have  a 
hunch  I  am  going  to  vote  against  the 
bill. 

Mr.  HELMS.  Mr.  F»resldent.  I  desire 
to  associate  myself  with  the  remarks  of 
the  distinguished  Senator  from  Arizona 
(Mr.  GOLDWATER'.  Like  his.  my  vote 
against  this  measure  will  be  a  vote  of 
protest — a  protest  against  the  failure  of 
this  Congress  to  recognize  the  only — the 
only.  Mr.  President — real  solution  to  our 
energy  crisis.  And  that  solution.  Mr. 
President,  must  be  an  increase  In  pro- 
duction. 

Nothing  else  is  going  to  bring  relief 
to  the  people.  Mr.  President,  and  until  we 
face  up  to  that  truth,  we  are  kidding 
ourselves  and  deceiving  the  people. 

Therefore.  Mr.  President.  I  shall  vote 
against  this  measure. 

Mr.  RIBICOPF  Mr  President.  1  ask 
for  the  yeas  and  nays  on  final  passage. 


The  yeas  and  nays  were  ordered. 

Mr.  KENNEDY.  Mr  President,  I  ask 
unanimous  consent  that  Dr.  Caper  may 
have  permission  to  be  on  the  fioor  dur- 
ing the  vote. 

The  PRESIDINO  OFFICER.  Without 
objection,  it  is  so  ordered. 

The  bill  having  been  read  the  third 
time,  the  quesUon  is.  Shall  the  bill  ptiss? 
The  yeas  and  nays  have  been  ordered, 
and  the  clerk  will  call  the  roU. 

The  legislative  clerk  called   the  roll. 

Mr  ROBERT  C.  BYRD  I  armounce 
^at  the  Senator  from  Idaho  (Mr 
Chtjrch),  the  Senator  from  MLssLssipp: 
(Mr.  Eastlawd)  ,  the  Senator  from  Alaska 
(Mr.  Oravkl),  and  the  Senator  from 
South  Carolina  'Mr  HoLLiNcsi  are  nec- 
essarily absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  (Mr.  Bkwnxtt),  the 
Senator  from  Tennessee  (Mr.  Brock), 
the  Senator  from  Massachusetts  (Mr 
Brooke),  the  Senator  from  Idaho  (Mr. 
McCLtTRB),  the  Senator  from  Ohio  (Mr 
Taft  > ,  and  the  Senator  from  Texas  ( Mr 
Tower)  are  necessarily  ahspr^t^ 

The  Senator  from  New  Hampshire 
(Mr.  Cotton)  is  absent  because  of  illness 
in  his  family. 

If  present  and  voting,  the  Senator 
from  Ohio  (Mr.  Tap-d  and  the  Senator 
from  Texas  (Mr.  Towir)  would  each 
vote  "yea." 

The  result  was  aimounced — yeas  87, 
nays  2,  as  follows : 


[No.  604  Leg.] 

TKAS— 87 

Abourezk 

Pul  bright 

Muskle 

Aiken 

Ortffln 

Nelson 

Allen 

Oumey 

Nunn 

B«ker 

Hansen 

Pack  wood 

Bartlett 

Hart 

Paatore 

B«;b 

Hartke 

Pearson 

Benll 

HaakeU 

Pell 

Bellmon 

Hatfield 

Percy 

Bentaen 

Hathaway 

Pronnlre 

Bible 

Hruska 

Randolph 

Blden 

Huddleaton 

Rlblcoff 

BucUey 

Hughes 

Roth 

Burdlck 

Humphrey 

Sax  be 

Byrd. 

Inouye 

Schwelker 

Harry  P 

Jr.    Jackson 

Scott.  Hugh 

Byrd.  Robert  C.  Javtts 

Scott, 

Cannon 

Johnston 

William  L 

Caae 

Kennedy 

Sparkman 

Chllea 

Long 

Stafford 

Clark 

Uagnuaon 

Stennls 

Cook 

M&naneld 

Stevens 

Oanston 

Mathlas 

Stevenson 

cnirtla 

McCleUan 

Symington 

Dole 

Mcae« 

Talmadge 

Etomenlcl 

McOovem 

Thurmond 

Domlnlck 

Mclntyre 

Tunney 

Eagletoa 

Metrair 

Welcker 

I^rrln 

Mondale 

WlUlams 

Pannln 

Montoya 

Young 

Pong 

Moss 

NATS— 2 

Ooldwater 

Helms 

NOT   VOTINO— 11 

Bennett 

Cotton 

McClure 

Brock 

Eastland 

Tart 

Brooke 

Gravel 

Tower 

Church 

Holllnga 

So  the  bill  (8.  2776)   was  passed,  as 
follows : 

S.  2770 

An  act  to  provld«  for  the  effective  Sknd  effi- 
cient management  of  the  Nation's  energy 
pollclea  and  programs  for  the  duration 
the   existing   energy   emergency,    and    for 
other  purpoees 
Be  it  enacted  by  the  Senate  and  House  of 

Repretentatlvet    of    the    United    States    of 

America  in  Congress  assembled. 


87 


December  19,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


TITLE  I— PKDKRAL  KNIROT  EMERGENCY 
ADMINISTRATION  ACT 
Sec.   101.  Thla  title  may  be  cited  as  the 
•■Federal  Energy  Administration  Act". 

CONGRESSIONAL     FINDINGS     ANOyrATIMkNT     OF 

Qmc.  102.  (a)  The  Congresa] hereby  finds 
that —  1 

( 1 )  shortages  of  crude  oU.  residual  fuel  oU 
and  refined  petroleum  products,  as  well  as 
shortages  of  other  forms  of  energy,  have  re- 
sulted in  severe  economic  dlslocatlon»,-and 
hardships,  curtaUment  of  vital  public  serv- 
ices, interruptions  in  the  normal  flow  of  in- 
terstate and  foreign  commerce,  and  threatens 
the  public  health,  safety,  welfare,  and  secu- 
rity; 

(2)  the  shortages  in  the  supply  of  avail- 
able forms  of  energy  have  created  an  energy 
emergen.-y  which  requires  emergency  me^- 
ures  to  reduce  energy  consumption,  Increase 
domestic  production  of  energ>-  resources  and 
provide  for  the  equitable  distribution  of 
available  supplies  to  aU  Americans; 

(3)  such  emergency  measures  can  be  most 
effective  In  averting  or  minimizing  shortages 
or  dislocations  if  they  are  Implemenied 
promptly  by  the  executive  branch  of  Oovem- 
ment:  and 

(4)  in  order  for  the  Gtovernment  to  deal 
as  effectively  and  efficiently  as  possible  with 
the  energy  emergency  specific  portions  of 
the  executive  branch  must  be  reorganized  on 
ajQ  interim  basis  to  assure  that  there  exists 
the  organization,  the  personnel,  and  the 
other  resources  needed  to  implement  the 
functions  relating  to  the  energy  emergency 
vested  in  the  executive  branch  by  this  and 
by  other  laws. 

(b)  The  sole  purpose  of  this  title  U  to 
CTeate  an  administration  in  the  executive 
branch,  called  the  Federal  Energy  Emergencv 
Administration,  to  Invest  the  Admlnlstralon 
with  certain  functions  as  specified  in  the 
title  and  to  transfer,  or  to  permit  the  trans- 
fer to  such  AdmmistraUon.  of  certain  func- 
tions vested  in  the  executive  branch  by  other 
laws  where  such  transfer  Is  necessary  to  deai 
on  an  interim  basis  with  the  energy  emer- 

ESTABLISHMENT    OF    reoERAL    CNEKCY     EMCR- 
CENCT    ADMINISTKATlON 

SEC.  103.  (a)  There  is  hereby  established  an 
independent  executive  agency  to  be  known  as 
the  Federal  Energy  Emergency  Administra- 
tion (hereinafter  referred  to  as  the  ■Ad- 
ministration •)  .  The  Admlnlstr^lon  shall  be 
headed  by  an  Administrator  andTRputy  Ad- 
mln^trator  each  of  whom  shall  be  appointed 
by  the  President  by  and  with  the  advice  and 
consent  of  the  Senate. 

(b)(1)  The  functions  and  powers  of  the 
Administration  shall  be  vested  In  and  ex- 
ercised by  the  Administrator. 

(2)  The  Administrator  may  from  time  to 
time  and  to  the  extent  permitted  by  law 
consistent  with  the  purpoees  of  this  title" 
delegate  such  of  his  functions  as  he  deems' 
appropriate,  aeems 

(c)  The  Administration  is  authorized  to 
have  six  Assistant  Administrators,  each  of 
whom  shall  be  appointed  by  the  President  by 
and  with  the  advice  and  consent  of  the 
Senate. 

(d)  The  Admmutratlon  shall  have  a  Gen- 
eral Counsel  appointed  by  the  President  bv 
and  with  the  advice  and  consent  of  the  Sen- 
ate. The  General  Counsel  shall  be  the  chief 
legal  officer  of  the  Administration 

(e)  The  Assistant  Administrators  and  the 
General  Counsel  shall  perform  such  func- 
tions and  duties  as  the  Administrator  may 
prescribe.  ^ 

(f )  The  Administrator  shall  designate  the 
order  In  which  the  Deputy  Administrator  and 
other  officials  shall  act  for  and  perform  the 
functions  of  the  Administrator  during  his 
absence  or  disability  or  in  the  event  of  a 
vacancy  in  his  office 


4249 


PTTNOnONS      AND      PtTRPOSES      OF      THX      FKDERAL 
ENEECT  EMiaCENCT  ADMINISTRATION 

Sec.  104.  Subject  to  the  provisions  and  pro- 
cedures set  forth  in  this  title,  the  Adminis- 
trator shall  be  responsible  for  such  actions  as 
are  taken  to  assure  that  adequate  provision 
Is  made  to  meet  the  emergency  energy  needs 
of  the  Nation.  To  that  end,  he  shall  make 
such  plans  and  d^ct  and  conduct  such  pro- 
grams related  to  Xhe  production,  conserva- 
tion, use,  control,  dUtrlbutlon,  rationing  and 
allocation  of  all  forms  of  energy  as  are  ap- 
propriate imder  those  authorities 

(1)  transferred  to  or  vested  in  him  by  or 
pursuant  to  this  title; 

(2)  delegat«d  to  him  by  the  President 
within  the  authority  vested  In  the  President 
by  other  law;  and 

(3)  otherwise  vested  In  the  Administrator 
by   the  Congress. 

TRANSFEBS 

Sec^  105.  (a)  There  are  hereby  transferred 
to  and  vested  In  the  Administrator  all  func- 
tions of  the  Secretary  of  the  Interior,  the 
Department  of  the  Interior,  and  officers  and 
components  of  that  Department- 
CD  as  relate  to  or  are  utUlzed  by  the 
Office  of  Petroleum  Allocation; 

(2)  as  relate  to  or  are  utUlzed  by  the  Office 
of  Energy  Conservation; 

(3)  as  relate  to  or  are  utUlzed  by  the 
Office  of  Energy  Data  and  Analysis;   and 

(4)  as  relate  to  or  are  utuized  by  the 
Office  of  Oil  and  Gas. 

(b)  There  are  hereby  transferred  to  and 
vested  m  the  Administrator  aU  functions 
Of  the  Chairman  of  the  Cost  of  Living  Coun- 
cil, the  Executive  Director  of  the  Cost  of 
Llvhig  CouncU,  and  the  Cost  of  Living  Coun- 
cU.  and  officers  and  components  thereof  as 
relate  to  or  are  utilized  by  the  Energy  Divi- 
sion of  the  Cost  of  Living  OouncU. 

(c)(1)  Notwithstanding  any  other  provi- 
sion of  law.  the  President  may.  subject  to 
the  provisions  of  this  subsection,  transfer 
to  the  Administrator  any  function  of  any 
other  executive  agency  (as  defined  In  section 
105  of  title  6,  United  States  Code)  If  he 
determines  that  such  transfer  would  further 
the  accompllahm«nt  of  the  intent  and  pur- 
poses of  this  title. 

(2)  The  President  shall  notify  the  Sen- 
ate and  the  House  of  Representatives  by 
special  meeaage,  of  each  transfer  proposed 
to  be  made  under  paragraph  ( 1 ) .  The  Pres- 
ident may  transfer  a  function  proposed  In  a 
special  message  upon  the  adoption  by  the 
Senate  and  the  House  of  Representatives  of 
a  concurrent  resolution  approving  sutsh 
transfer.  ^     >»"*.^ 

(3)  No  function  may  be  transferred  under 
this  subsection  which  would  have  an  effect 
inconsistent  with  the  provisions  of  section 
905(a)  of  title  5,  United  States  Code. 
,>,!*',.  "^^  provisions  of  sections  910  through 
913  of  title  5,  United  States  Code,  shall  ap- 
ply to  the  procedure  to  be  followed  in  the 
Senate  and  the  House  of  Representatives  in 
the  exercise  of  their  respective  responslbUI- 
tles  with  respect  to  special  messages  under 
paragraph  (2)  of  this  subsection  In  the  same 
manner  and  to  the  same  extent  as  such 
provisions  apply  to  the  procedure  foUowed 
in  the  case  of  reorganization  plans,  except 
that  references  in  such  provisions  to  a  "reso- 
lution with  respect  to  a  reorganization  plan" 
shall  be  deemed  for  purposes  of  this  sub- 
section to  refer  to  a  concurrent  rescrfutlon 
of  approval  under  paragraph  (2)  of  this  sub- 
section. 

(d)  Each  function  that  is  transferred  to 
the  Administration  pursuant  to  the  provi- 
sions of  this  title  shau  revert  to  the  execu- 
tive agency  from  which  It  was  transferred 
upon  the  expiration  of  this  title  or  upon 
such  earlier  date  as  the  President  may  pre- 
scribe  pursuant  to  the  procediu^s  prescribed 
by  BubsecUon  (c)  of  thU  section 


ADldNTSTEATTVE    PROVISIONS 

Sk.  106.  (a)  The  Administrator  of  the 
Federal  Energj-  Emergency  Administration 
may — 

(1)  appoint,  employ,  and  fix  the  compensa- 
tion of  such  officers  and  employees  includ- 
ing attorneys,  as  are  necessary  to  perform 
the  functions  vested  in  him,  and  prescribe 
their  authority  and  duties.  In  addition  to 
the  number  of  positions  which  may  be  placed 
!^»,*^^t;  "  "^**  ^^'  ^n^er  section  5108  of 
title  5,  United  States  Code,  not  to  exceed 
one  hundred  positions  may  be  placed  m  GS- 
16,  17,  and  18,  to  carry  out  the  functions 
under  this  title,  and  that  of  such  one  hun- 
dred officers  and  employees,  twenty-five  may 
under  this  provision,  be  appointed  without 
regard  to  the  provisions  of  title  5  of  the 
united  States  Code  governing  appolptments 
in  the  competitive  service;  howeverTthe  au- 
thority under  this  subsection  shall  be  sub- 
ject to  the  procedures  prescribed  under  sec- 
tion 5103  of  tlUe  5,  United  States  Code  and 
shall  continue  only  for  the  duration  of  the 
exercise  of  functions  under  this  Act- 

(2)  employ  experts,  expert  witnesses  and 
consultants  In  accordance  with  section' 3109 
of  title  5  of  the  United  States  Code  and 
oompensat*  such  persons  at  rates  not  In  ex- 
cess  of  the  maximum  daUy  rate  prescribed 
for  GS-18  under  section  5332  of  title  5  of  the 
United  States  Code  for  persons  In  Govern- 
ment service  employed  Intermittently 

(3)  promulgate  such  rules,  reeuUtlons. 
and  procedures  as  may  be  necessary  to  canr 
out  the  functions  vested  In  him:  Provided 
That:  ' 

(A)  The  Administrator  shall,  before  pro- 
mulgating proposed  rules,  regulatlwis  or 
policies  relating  to  the  cost  or  price  of  en- 
ergy, provide  a  period  of  not  leas  than  five 
days  from  receipt  of  the  proposed  action  dur- 
ing which  the  Chairman  and  the  Executive 
Director  of  the  Cost  of  Living  CouncU  shall 
approve  or  disapprove  such  rules,  regula- 
tions^ or  policies,  and  If  the  ChalnnSi  or 
the  Executive  Director  of  the  Cost  of  Living 
CouncU  disapproves  such  niles.  regulations^ 
or  policies  they  shall  not  go  into  effect.  The 
Chairman  and  the  Executive  Director  of  the 
Cost  of  Living  CouncU  shall  have  not  less 
than  five  days  Ui  which  to  act.  otherwise  ap- 
proval  shall  be  automatic. 

(B)  The  Administrator  shall,  before  pro- 
mulgatlng  rules,  regulations,  or  poUcles  af- 
fecting the  quality  of  the  environment  pro- 
vide a  period  of  not  less  than  five  days' from 
tt^  ^.^  /^^  proposed  action  during  which 
the  Administrator  of  the  Envtroinental 
Protection  Agency  may  provide  written  com- 
ments concerning  the  impact  of  such  niles. 

el^ro^Tnt"'  '°"*='^^  °"  '"^  ^^^^-^  °^  ^» 

Such  comments  shall  be  published  aBftg  with 
the  proposed  action.  The  review  requl^  by 
section  10e(a)(3)(A)  and  (B)  may  be  wSvel 
for  a  period  of  fourteen  days  if  there  is  an 
emergency  situation  which,  in  the  Judgment 
Mtlo?  ^'^'^^^tor,  requires  imn^iate 
f4)  utilize,  with  their  consent,  the  services 
f^Jf°o**i'  ^"IP^ient,  and  facilities  of  Fed-" 
tlmi^^^.r^'""*'-  *°**  "^'  instrumen- 
th.~f  •  ^^^°''  ^thout  reimbursement 
therefor  and  transfer  funds  made  available 
pursuant    to    this    title    to    P^eral.    sute 

^^h?^'  *°?  ,'°*=*^  instrumenuutles  as  re- 
imbursement for  utUlaatlon  of  such  servl<S[ 
personnel,  equipment,  and  faculties- 
,  i?'.  ^"P*^  *°  official  seal,  which  'shall  be 
y**^^'y  "°"<*<1.  a"d  the  provisions  of  sec! 
tlon  709  of  title  18  of  the  United  States  <^e 
Shau  apply  to  the  use  of  the  seal  a^terVt! 
adoption  and  pubUcatlon  In  the  P^era! 
R*glster,  except  as  provided  by  regulation 
prescribed   by  the  Administrator 

(6)  accept  unconditional  gifts  or  donations 
Of  money  or  property,  real  personal  nr 
mixed,  tangible  or  iLtan^ble        P*^'"^'    " 

(7)  subject   to  appropriation  acts,  enter 


CONGRESSIONAL  Kl  LORD  —  SENATE 


December  19,  1973 


\ 


Into  and  perform  contract*,  leases,  coopera- 
tive agreements,  or  other  transactions  with 
any  pubUc  agency  or  instrumentality  or  with 
any  person,  firm,  association,  corporation, 
or  Institution:  and 

(8)  perform  such  other  activities  as  may 
be  necessary  for  the  effective  fulfillment  of 
his  administrative  duties  and  functions. 

(b)    Any  determination  pursuant   to  sub- 


g&idlng  functions  which  are  transferred  by 
this  title:  but  such  proceeding,  to  the  extent 
that  they  relate  to  functtons  so  transferred, 
shall  be  continued.  Orders  shall  be  issued  In 


the  functions  which  the  President  or  other 
Oovemment  officials  lawfully  exercised  im- 
mediately before  the  effecUve  date  of  this 
title,  or  which  shall  herein  or  hereafter  be 


such    proceeding*,    appeals    shaU    be    taken  speclflcally  conferred  by  law  upon  the  Preei 
therefrom,  and  payments  shall  be  made  pur-  dent  or  the  Administrator 
suant  to  such  order*,  as  If  this  title  had  not  (J)  Any  reference  in  this  UUe  to  any  pro- 
been  enacted,  and  orders  Issued  In  any  such  vision  of  law  shaU  be  deemed  to  Include   as 
proceedings    shaU    continue    in    effect    untU  appropriate,    references    thereto    as    now    or 


r^i^  ^   °^^^^  ^  °^  '"'•  ''  '^  ""*      modified,  terminated,  superseded,  or  revoked      hereafter  amended  or  supplemented. 


United  States  Code  that  an  exemption  shall 
be  granted  to  any  employee  shall  be  a  non- 
delegable responsibility  of  the  Administrator. 
Deputy  Administrator,  or  General  Counsel 
and  in  all  Instances  shall  be  made  a  matter 
of  public  record,  setting  forth  the  detailed 
reasons  and  Justifications  for  such  exemption. 

COMPKMaATION 

8«c.  107.  (a)  Without  regard  to  the  provi- 
sions of  title  5  of  the  United  States  Code 
governing  appointments  in  the  competitive 
■ervice — 

(1)  the  Adinlnlstrator  shall  receive  com- 
pensation at  the  rate  now  or  hereafter  pre- 
scribed for  position*  at  level  II  of  the  Execu- 
tive Schedule  (5  US  C.  5313): 

(3)  the  Deputy  Administrator  shall  re- 
ceive compensation  at  the  rate  now  or  here- 
after prescribed  at  level  HI  of  the  Executive 
Schedule  (5  XJSC    5314): 

(3)  each  Assistant  Administrator  and  the 
General  Counsel  of  the  Adnrtnistratlon  shall 
receive  compensation  at  the  rate  now  or  here- 
after prescribed  for  poeltlons  at  level  IV  of 
the  Executive  Schedule  (5  US  C   5315):  and 

(4)  there  shall  be  Jn  the  Administration 
not  more  than  nine  additional  officers  ap- 
pointed by  the  Administrator  who  shall  re- 
ceive compensation  at  the  rate  now  or  here- 
after prescribed  for  poeltlons  at  level  V  of  the 
Executive  Schedule  {5  US  C.  5316) 

lb)  Any  person  (other  than  the  Admin- 
istrator, Deputy  .Administrator,  or  Assistant 
Ailjnlnlstrators)  directly  responsible  for  or 
In  direct  charge  of  any  bureau,  office  divi- 
sion, or  other  organization  which  admin- 
isters any  of  the  specific  programs  set  forth 
In  subsection  re)  hereof  shall  be  compen- 
sated at  the  ra:e  provided  for,  and  occupy 
one  of  the  positions  provided  for  In  subsec- 
tion (a)  (4i  of  this  section.  .Any  officer  acting 
purstiant  to  the  provisions  of  this  subsection 
may  act  not  longer  than  sixty  days  prior  to 


by  a  duly  authorized  official,  by  a  court  of 
oompetect  Jurisdiction,  or  by  operation  of 
law.  Nothing  In  this  suhaectlon  ahaU  ba 
deemed  to  prohibit  the  discontinuance  or 
modification  of  any  such  proceeding  under 
the  same  terms  and  conditions  and  to  the 
same  extent  that  such  proceeding  could  have 
been  discontinued  If  this  title  bad  not  been 
enacted. 

(c)    Except  as  provided  in  subsection  le)  — 
( 1 )   the  provisions  of  this  title  shall  not 
affect  suits  commenced  prior  to  the  date  this 
title  takes  effect,  and 


(k)  The  provisions  of  this  section  shall 
apply  to  functions  transferred  to  the  Admin- 
istration pursuant  to  section  106(c)  of  thl* 
title,  except  that  reference  In  this  section  to 
the  effective  date  of  this  Utle  shall  be  deemed 
to  be  reference*  to  the  date  of  the  transfer 
of  the  functions  Involved. 

LNCIDKNTAl.    TaANSIXaS' 

S»c.  10©  The  Director  of  the  Office  of  Man- 
agement and  Budget  is  authorised  and  di- 
rected   to    make   such   additional    incidental 

dispositions    of    personnel,    personnel    posl- 

(3)  in  all  such  suits  proceedings  shall  be  "°'^-  *sseU.  llabUltles,  contracts,  property, 
had,  appeals  taken,  and  Judgments  rendered  re<^ords.  and  unexpended  balances  of  appro- 
in  the  same  manner  and  effect  as  If  thl*  UUe  Pna^ons.  authorizations,  allocations,  and 
had  not  been  enacted.  other  funds  held,  used,  arlalng  from.  avaU- 

(d)  No  suit.  acUon.  or  other  proceeding  ^'^'"to  or  to  be  made  available  in  connection 
commenced   by  or  against  any  officer  in  his      ^tb_  functions   transferred   by   this  UUe.  as 


official  capacity  as  an  officer  of  any  depart- 
ment or  agency,  ftmctlons  of  which  are 
transferred  by  this  title,  shall  abate  by  reason 
of  the  enactment  of  this  title.  No  cause  of 
action  by  or  against  any  department  or 
agency,  functions  of  which  are  transferred 
by  this  title,  or  by  or  against  any  officer 
thereof  in  his  official  capacity  shall  abate  by      ^  duty,  obligation,  power,  authority,  respon- 


the  Director  deems  necessary  and  appropriate 
to  accomplish  the  Intent  and  purpose  of  this 
title. 

DEFINITIONS 

Sec.  110.  As  used  In  this  title— 
(1)   any  reference  to  "function"  or  "func- 
tions" shall  be  deemed  to  include  references 


reason  of  the  enactment  of  this  tlUe  Causes 
of  acUons.  suits,  actions,  or  other  proceed- 
ings may  be  asserted  by  or  against  the  United 
States  or  such  official  as  may  be  appropriate 
and.    In    any    litigation    pending    when    this 


siblllty,  right,  privilege,  and  activity,  or  the 
plural  thereof,  as  the  case  may  be:  and 

(3)  any  reference  to  "perform"  or  "per- 
formance", when  used  in  relation  to  func- 
tions, shall  be  deemed  to  Include  the  exer- 


aectlon   takes  effect,  the  court  may  at  any     else  of  power,   authority,  right*,  and  prlv- 
tlme.  on  Its  own  motion  or  that  of  any  party,      Ueges. 


enter  any  order  which  wUl  give  effect  to  the 
provisions  of  this  section. 

(e)  If.  before  the  date  on  which  this  tlUe 
takes  effect,  any  department  or  agency,  or 
officer  thereof  in  his  official  capacity.  Is  a 
party  to  a  suit,  and  under  this  tlUe  any  func- 
tion of  such  department,  agency,  or  officer  is 
transferred  to  the  Administrator,  or  any 
other  official,  then  such  suit  shall  be  con- 
tinued as  If  this  tlUe  had  not  been  enacted. 


INTEalM   AJPOtNTlCZNT 

Sic.  111.  (a)  Any  of  the  officers  provided 
for  In  sections  103  and  106  of  this  title  shall 
be  nominated  and  appointed,  as  F>rovlded  for 
in  those  section*.  Funds  available  to  any  de- 
partment or  agency  (or  any  official  or  com- 
ponent thereof),  and  lawfully  authorized  for 
any  of  the  specific  functions,  which  are 
transferred  to  the  Administrator  by  this  title. 


r..r.?^s:  s;i',5r  .??sL°=ri;  s^rijrius:?i^"'-"°-^""  sa  "  p.; -'sssj'.i'.s^'  sr.r™i 


Senate  for  Us  advice  and  consent 

(c)  The  specific  programs  to  which  sub- 
section (bi   ShaU  apply  are  as  follows; 

( 1 »   AllocaUon  of  petroleum  products: 

(3(   Rationing  of  petroleum  products; 

(3i  Analysis  of  the  Impact  of  emergency 
proerams  on  sectors  of  the  economy,  employ- 
ment, and  regional  and  local  economic  via- 
bUlty: 

(4>  Coordination  of  Federal.  State,  and 
local  conservation  programs:  and 

(SI   Pricing  of  petroleum  products. 
raANsmoN.^L  aicd  saving  p«ovisions 

Sec  108  (a)  All  orders,  determinations, 
rules,  regulations,  permits,  contracts,  certifi- 
cates, licenses,  and  privileges — 

1 1 1  which  have  been  issued   made,  granted. 


( f  I  Pinal  orders  and  actions  of  any  official 
or  component  In  the  performance  of  func- 
Uons  transferred  by  this  UUe  shall  be  sub- 
ject to  Judicial  review  to  the  same  extent 
and  In  the  same  manner  as  If  such  orders  or 
actions  had  been  made  or  taken  by  the  officer. 


of  any  officer  appointed  pursuant  to  this  sub- 
section until  such  time  as  funds  for  that 
purpose  are  otherwise  available. 

(b)  In  the  event  that  any  officer  required 
by  thU  title  to  be  appointed  by  and  with  the 
advice  and  consent  of  the  Senate  shall  not 
have  entered  upon  office  on  the  effective  date 


department     agency,    or    Instrumentality    in  of  this  title,  the  President  may  designate  any 

the    performance   of   such    funcUons    imme-  officer,   whose   appointment  was  required  to 

dlately  preceding   the  effecUve  date  of  thU  be  made  by  and  with  the  advice  and  consent 

title   Any  statutory  requirements  relating  to  of  the  Senate  and  who  was  such  an  officer 

aH^?^:-?'fr^*-  *f"°°.;fP<>"  ^^«  '•««°«»-  Of  immediately  prior  to  the  effective  date  of  this 

administrative    review    that    apply    to    any  title,  or  any  officer  who  was  performing  essen- 

f  unction    transferred    ordelegated    by    this  tlally  the  same  functions  tomedlateV^or 

J  ,iV,^'  K*^?L^  ^V^^r  f«l°""»"<=*  °'  thoae  to  Uie  effective  date  of  this  title    to  act  S 

functions  by  the  Admlnlsttator,  or  any  officer  such  office  until  the  office  Is  flUed  as  provided 

?°^^?^  in  this  title:  Provided.  That  any  officer  act- 

. -....-._.      ,   •lLf"L7^7;^an°H"^'"°^J,'°'',,'"*J^■  •'^pursuant  to  the  provisions  "^f^^sub- 

or  allowed  to  become  effective  by  the  Presl-      It^!^™^!';!'  V  It,!  M.f^    "T"*^  "^T  '*'*'  '**="°"   "^^  "^^  "«  '°'^K"  ^^an  sixty  days 

rf.nt    «nv  ip^.r.i   H-,.-«,„-„t   J,  - effective  date  of  this  title,  reference  In  any  orlor  to  th«  rt»t-  »t,^„   »,>m^k   v...  .JL„.-. 


dent,  any  Federal  department  or  agency  or 
official  '.hereof,  or  by  a  court  of  competent 
Jurisdiction.  In  the  performance  of  function* 
which  are  rransferred  under  this  title,  and 

1 2 1  which  are  In  effect  at  the  time  thl*  title 
takes  effect. 

shall  continue  in  effect  according  to  tbelr 
terms  until  modified,  terminated,  super- 
seded, set  aside,  or  revoked  by  the  President, 
the  Administrator,  or  other  authorized  offl- 


other  law  to  any  department  or  agency,  or 
any  officer  or  office,  the  functions  of  which 
are  so  transferred,  shall  be  deemed  to  refer 
to  the  Administrator  or  other  officials  in 
which  this  title  vests  such  functions. 

(h)  Nothing  conuined  in  this  title  shall 
be  construed  to  limit,  curtail,  abolish,  or 
terminate  any  function  of  the  President 
which  he  had  Immediately  before  the  effec- 
tive date  of  this  title:    or  to  limit,  curtail. 


ciala,  a  court  of  competent  Jurisdiction,  or  bv    abolish,  or  terminate  hi*  authority  to  per 


operation  of  law 

lb)  The  provialons  of  this  title  shall  not 
affect  any  proceeding  pending,  at  the  time 
this  section  takes  effect,  before  any  depart- 
ment or  agency  (or  component  thereof)   re- 


form such  ftinction:  or  to  limit,  curtaU,  abol 
Ish,  or  t«nnlnat«  hi*  authority  to  delegate, 
redelegate,  or  terminate  any  delegations  of 
function*. 

(1)   The  Administrator  shall  exarctae  only 


*^     prior  to  the  date  upon  which  his  appolnt- 
""      ment  la  submitted  to  the  Senate  for  Its  ad- 
vice and  consent. 

(c)  Transfer  of  nontemporary  personnel 
pursuant  to  this  title  shall  not  cause  any 
such  employee  to  be  separated  or  reduced  in 
grade  or  compensation  for  one  year  after 
such  transfer. 

(d)  Any  person  who.  on  the  effective  date 
of  this  title,  held  a  position  compensated  In 
accordance  with  the  Executive  Schedule 
prescribed  in  chapter  53  of  title  6  of  the 
United  States  Code,  and  who.  without  a 
break  In  service.  Is  appointed  In  the  Adminis- 
tration to  a  position  having  duties  compara- 
ble to  thoee  performed  immediately  preced- 
ing hi*  appointment   shall   continue  to  be 


December  19,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


compensated  In  his  new  position  at  not  leas 
than  the  rate  provided  for  ul*  previous  posi- 
tion. 

srocitpiijNc  psoHismcD 
Sbc.  113.  The  Administrator  shall  prepare 
and  submit  to  the  Senate  and  the  House  of 
Bepreaentatlves  within  sixty  day*  of  enact- 
ment of  this  tiUe,  a  report  which  ahaU  In- 
clude but  not  be  limited  to  the  following : 

(A)  Assessing  the  degree  to  which  any  per- 
son, partnership,  corporation,  or  other  orga- 
nization Is  stockpiling  in  addition  to  ordi- 
nary and  necessary  requirements,  more  fuels 
of  all  types,  than  he  requires  to  meet  his 
reasonable  needs; 

(B)  Specifying  what  actions  the  Adminis- 
trator has  taken  to  prevent  the  undue  stock- 
piling of  fuels; 

(C)  Setting  forth  all  rules,  regulations,  and 
policies  governing  stockpClng  adopted  by  the 
Administration:  and 

(D)  Detailing  any  additional  statutory  au- 
thority needed  by  the  Administrator  to  con- 
trol and  prevent  the  stockpiling  in  addition 
to  ordinary  and  necessary  requirements  of 
fuels  by  producers,  wholesalers,  distributors 
and  consumers. 


42499 


■CONOMIC  ANALYSIS  OP  PROPOSE)  ACTIONS 

Sec.  113.  (a)  Ln  carrying  out  the  provisions 
of  this  tlUe,  the  Administrator  shall,  to  the 
greatest  extent  practicable,  Insure  that  the 
potential  economic  impacts  of  proposed  regu- 
latory and  other  actions  are  evaluated  and 
considered  including  but  not  limited  to  an 
analysis  of  the  effect  of  such  actions  on — 

(1)  the  fiscal  integrity  of  State  and  local 
government; 

(2)  vital  Industrial  sectors  of  the  econ- 
omy: 

(3)  employment,  by  Industrial  and  trade 
sector,  as  well  as  on  a  naUonal,  regional, 
State,  and  local  basis: 

(4)  the  economic  vitality  of  regional.  State, 
and  local  areas: 

(5)  the  availability  and  price  of  consumer 
goods  and  services; 

(6)  the  gross  national  product; 

(7)  low  and  middle  Income  families  as 
defined  by  the  Bureau  of  Labor  Statistics; 

(8)  competition  In  all  sectors  of  Industry 
and 

(9)  small  business. 

(b)  The  Administrator  shall  develop  analy- 
ses of  the  economic  impact  of  various  con- 
servation measures  on  States  or  significant 
sectors  thereof,  considering  the  impact  on 
both  energy  for  fuel  and  energy  as  feed 
stock  for  industry 

(c)  Such  analysis  shall,  wherever  possible, 
be  made  explicit  and  to  the  extent  possible 
other  Federal  agencies  and  agencies  of  SUte 
and  local  governments  which  have  special 
knowledge  and  expertise  relevant  to  the  im- 
pact of  proposed  re^latory  or  other  actions 
shall  be  consulted  in  making  the  analvsls, 
and  all  Federal  agencies  are  authorized  and 
directed  to  cooperate  with  the  Administrator 
In  preparing  such  analyses:  Provided.  That 
the  Administrator's  actions  pursuant  to  this 
section  shall  not  create  any  right  of  review 
or  cause  of  action  except  as  would  otherwise 
exist  under  other  provisions  of  law. 

(d)  The  Administrator,  together  with  the 
Secretaries  of  Labor  and  Commerce,  shall 
monitor  the  economic  impact  of  any  energy 
actions  talten  by  the  Administrator,  and  shall 
provide  the  Congress  with  .separate  reports 
every  thirty  days  on  the  Impact  of  the  energy 
shortage  and  such  emergency  actions  on  em- 
ployment and  the  economy.  Such  reports 
shall  contain  recommendations  as  to  wheth- 
er additional  Federal  programs  of  employ- 
ment and  economic  assistance  should  be  put 
into  effect  to  minimize  the  impact  of  the 
energy  shortage  and  any  emergency  actions 
taken. 

(e)  Notwithstanding  any  other  provision 
of  this  Act,  the  Administrator  shall  formu- 
late and  Implement  such  regulatory  and 
other  action*  in  a  manner  which  does  not 


unduly  discriminate  against  anv  iniiustry 
or  any  region  of  the  United  States  and  fur- 
ther that,  notwithstanding  any  ot,her  pro- 
vision of  this  Act.  the  Admiiilstrator  shaU 
formulate  and  implement  such  regulatory 
and  other  actions  In  a  maimer  designed  to 
Instire  that,  to  the  greatest  extent  possible, 
the  costs  and  burdens  of  meeting  the  energy 
crisis  shall  be  borne  equally  by  every  sector 
and  segment  of  the  country, 

MANAGKICENT    OVmSICHT    REVnTW 

Sec.  114,  The  Administrator  may,  for  a  pe- 
riod not  to  exceed  thirty  days  in  any  one 
calendar  year,  provide  for  the  exercise  or  per- 
formance of  a  management  oversight  re- 
view with  respect  to  the  conduct  of  any 
Federal  or  State  (with  consent  of  the  Oov- 
emor)  energy  emergency  program.  Such  re- 
view may  be  conducted  by  contract  or  by  any 
Federal  department  or  agency.  A  written 
report  shall  be  submitted  to  the  Administra- 
tor concerning  the  findings   of   the   review. 

COOHDINATION  WrtH  AND  TECHNICAL  ASSISTANCE 
TO  STATE   AND   LOCAL   GOVERNMENTS 

Sec.  lie.  (a)   The  Administrator  shall — 
(1)    coordinate  Federal  energy  emergency 
programs  and   policies   with   such   programs 
and  policies  of  State  and  local  governments — 

(A)  Within  fifteen  days  of  the  enactment 
of  this  title,  the  Administrator  shall  provide 
the  Congress  and  State  and  local  govern- 
ments with  a  repwrt  on  the  manner  In  which 
he  has  organized  the  Administration  based 
upon  the  functions  delegated  by  the  Presi- 
dent or  assigned  to  the  Administrator  by 
this  Utle  or  under  the  authority  of  other 
Acts. 

(B)  Within  thirty  days  of  the  date  of  en- 
actment of  thU  title,  the  Administrator  shall 
provide  the  public.  State,  and  local  govern- 
ments, and  all  Members  of  the  Congress  with 
a  report  In  laymen's  language  which — 

(1)  describes  the  funcUons  performed  by 
the  Administration; 

(2)  sets  forth  In  detail  the  organization 
of  the  Administration,  the  location  of  its 
offices  (Including  regional.  State  and  local 
offices),  the  names  and  phone  numbers  of 
Administration  officials,  and  other  appropri- 
ate information  (xinceming  the  operation 
of  the  Administration; 

(3)  delineates  the  role  that  State,  local, 
and  Federal  governments  will  or  may  perform 
In  achieving  the  purposes  of  this  Utle:  and 

(4)  provides  the  public  with  a  clear  un- 
derstandir.p  of  their  dutlP!!  and  obllgtitlcns. 
rights,  and  respoiislbl'Ities  under  any  of  the 
energy  emereency  prosrrams  or  functions  as- 
signed to  the  .Administrator. 

(2)  before  promuleatlng  any  rules,  regula- 
tions or  policies  ai-;d  before  establishing  any 
programs  under  the  authority  granted  him 
In  this  title  provide,  where  practicable,  a 
reasonable  period  In  which  State  and  local 
governments  may  provide  written  comments 
If  such  rule?  repiiiatlons  policies,  or  pro- 
grams substantially  affect  the  authority  or 
responsibility  of  such  State  or  Incal  govern- 
ments: 

(3)  provide.  In  accordance  with  the  provi- 
sions of  this  Utle.  upon  request,  to  State 
and  local  governments  all  relevant  Informa- 
tion he  possesses  concerning  the  status  and 
Impact  of  energy  shortages,  the  extent  and 
location  of  available  supplies  and  shortages 
of  crude  oil  petroleum  products,  natural  gas. 
and  coal,  within  the  dlstrlbuUon  area  serving 
that  particular  State  or  local  government; 
and 

(4i  provide  for  a  central  clearinghouse  for 
Federal.  State,  and  local  governments  seek- 
ing energy  Information  and  assistance  from 
the  Federal  Government 

(b)  Pursuant  to  his  responsibility  under 
this  secUon,  the  Administrator  shall — 

(1)  provide  technical  assistance — Including 
advice  and  consuIUtlon  relating  to  State 
and  local  programs,  and.  where  necessarv. 
the  use  of  task  forces  of  public  officials  and 


private  per&.'ns  asslg-r.ed  to  work  with  State- 
and  local  povemment&— 1<:  assist  State  and 
local  eovemme.-its  in  dealing  with  er.e.-gy 
problems  and  shortages  and  their  Unpact 
and  In  the  development  of  plans,  programs, 
and  policies  to  meet  the  problems  and  short- 
ages so  Identified; 

(2)  convene  conferences  of  State,  local, 
and  P<?dera:  S-ials  and  such  other  penons 
as  the  Adinl'.lstrator  designates,  to  promots 
the  purposes  of  this  title,  and  the  Adminis- 
trator Is  authorized  to  pay  reasonable  ex- 
penses incurred  In  the  parUclpaUon  of  In- 
dividuals  In   such   conferences; 

(3)  draft  and  make  available  to  State  and 
local  governments  model  legislation  with 
respect  to  State  and  local  energy  program* 
and  p)oUcles;  and 

(4)  promote  the  promulgatton  of  uniform 
criteria,  procedures,  and  forms  for  grant  or 
contract  applicaUons  for  energy  proposals 
submitted  by  State  and  local  governments. 

INFOEMATTON   GAniERrNG 

Sec.  116.  (a)  Any  person,  partnership,  cor- 
poration, or  other  organization  made  subject 
to  any  order,  rule,  or  regulation  of  the  Ad- 
ministrator shall  malniALn  and  make  avail- 
able to  the  Administrator  such  periodic  re- 
ports, records,  dociiments,  and  other  Infor- 
mation relating  to  the  purposes  of  this  title 
as  the  Administrator  may  prescribe  by  regu- 
lation or  order  as  necessary  or  ^propriate 
for  the  p.-ope.-  exercise  of  the  functions 
granted  the  Administrator  by  secUon  104  or 
by  any  provision  of  this  title. 

(b)  The  Administrator  may  require,  by 
general  or  special  orders,  any  person,  partner- 
ship, corporation,  or  other  organization  made 
subject  to  any  order,  niie  or  regulation  of 
the  Administrator  to  file  with  the  .'Adminis- 
trator In  such  form  as  he  may  prescribe,  re- 
ports or  answers  in  wr;tliig  Ui  sper'.tc  ques- 
tions, furnishing  such  tn.'o.'-mau  :n  a.'  may 
be  necessary  to  enable  the  Admiiilstrator  to 
carry  out  the  functions  granted  Mm  by  sec- 
Uon 104  or  by  any  other  provision  of  this 
UUe.  Such  reports  aijd  answer?  .shall  be  made 
under  oath,  or  otherwise,  as  the  Adminis- 
trator may  prescribe  and  shall  be  filed  with 
the  Administrator  within  such  reasonable 
jjerlod  as  he  may  prescribe. 

(c)  The  Administrator  shall  have  the  au- 
thority, when  he  determines  it  is  neces,sary 
In  order  to  carry  out  his  responsibilities 
tmder  section  104  or  any  other  provision  of 
this  Utle,  to  make  any  Investigation,  and  in 
connection  therewith  he  may,  at  reasonable 
times,  enter  places  of  business  and  Inspect 
such  records  and  accounts  and  question  such 
persons  as  .he  may  deem  necessary  to  enable 
him  to  determine  the  facts  relative  thereto. 

(d)  (1)  "Die  Administrator  or  any  of  his 
duly  authorized  agent  or  agents  shall  have 
the  power  to  require  by  subpena  the  produc- 
tion of  all  information.  dCK-uments  paf>er8, 
and  other  data  pursuant  to  subsection  a) 
of  this  section  all  reports  and  answers  re- 
quired pursuant  to  subsection  (b)  of  this 
section:  all  records,  accounts,  and  other  doc- 
umentary evidence  in  connection  with,  an 
invesUgatlon  purs\iant  to  subsection  (c)  at 
this  section:  and  the  attendance  and  testi- 
mony of  witnesses  m  connection  therewith. 

(2)  Any  appropriate  United  States  dis- 
trict court  may.  In  the  case  of  contumacy  or 
refusal  to  obey  a  subpena  issued  pursuant 
to  this  section,  issue  an  order  requiring  the 
party  to  whom  such  subpena  Is  directed  to 
appear  before  the  Administration  and  to  give 
testimony  touching  on  the  matter  in  ques- 
tion, or  to  produce  any  such  Information,  doc- 
uments, papers,  data,  records,  reports,  ac- 
counts, or  other  documentary  evidence,  and 
anv  failure  to  obey  such  order  of  the  court 
may  be  punished  by  such  court  as  a  con- 
tempt thereof. 

ie)  The  Administrator  shall  conduct  a 
comprehensive  review  of  foreign  ownership 
of.  Influence  on.  and  control  of  domestic  en- 
ergy sources  and  supplies   Such  review  shall 


42'0<1 


CONGRESSIONAL  RECORD  — SENATE 


draw  upon  existing  Information,  where  avail- 
able, and  any  independent  Investigation 
necessary  by  the  Administration.  The  Ad- 
ministrator shall,  on  or  before  the  expiration 
of  the  one  hunditd  and  eighty  day  period 
foUowlng  the  efTectlve  date  of  this  Utle, 
report  to  the  Congress  in  sufflclent  detail  so 
as  to  apprise  the  Congress  as  to  the  extent 
and  forms  of  such  foreign  ownership  of  In- 
nuence  on  and  control  of  domestic  energy 
sources  and  supplies,  and  shall  thereafter 
continue  to  monitor  such  ownership  influ- 
ence and  control. 

ptTBuc  oiscLoecax  or  utrotuATiotf 
Sxc.  in.  (ai  The  Administrator  shall  make 
public,  on  a  continuing  basis,  any  statistical 
and    economic    analysis,    data,    Information, 
and  whatever  reports  and  summarteo  neces- 
sary to  keep  the  public  fullv  and  currently 
informed  as  to  the  nature,  extent    and  pro- 
jected duration  of  shortages  of  energy  sup- 
pues.  the  Impact  of  such  shortages,  and  the 
steps  being  taken  to  mlrUmlze  such  Impacts 
(  b  1  Copies  of  any  books,  documents  papers 
sutlstlcs.    data.    Information,    records     and 
reports   received   by  the  Administrator  pur- 
suant to  this  title  shall  be  made  available  to 
the  public  upon  Identlflable  request    and  at 
reasonable  cost,  except  that  the  Administra- 
tor may  not  disclose  to  the  public  any  in- 
formation obtained  under  the  provisions  of 
this  title  which  could  not  be  disclosed  to  the 
public   under   section   552   of   title   5   of   the 
United  States  Code,  commonly  referred  to  as 
the  Freedom  of  Information  Act-   Provided 
That  notwithstanding  anv  other  part  of  this 
subsection,  the  AdmlnUtrator  shall  disclose 
upon  Identifiable  request,  and  at  reasonable 
«wt.   any   Information   or  daU  of   the   type 
which    could    not    be   excluded    from   public 
annual    reports    to    the   Securities   and   Ex- 
change Commission   pursuant  to  section   13 
?'   l^'**'    °'  "-^^  Securities  Exchange  Act  of 
1934  by  a  business  enterprise  excluslvelv  en- 
gaged in  the  manufacture  or  sale  of  a  single 
product,    unless    such    Information    or    data 
concerns  or  relates  to  the  trade  secrets   proc- 
«M««.  operations,  style  of  work,  or  apparatus 
of  a  business  enterprise 

ADnaoBT  coMMrmxs 

a«c  118  (a)  Whenever  the  Administrator 
ahaU  establish  or  utuize  any  board  task 
force,  commlasion.  committee,  or  similar 
px)up.  not  composed  entirely  of  full-time 
Oovernment  employees,  to  advise  with  n- 
■pect  to.  or  to  formuUte  or  carry  out  any 
agreement  or  plan  of  action  affecting  any 
ut^"^  or  segnxent  thereof,  the  Admin- 
istrator shaU  insure  that  each  such  group 
U  reasonably  represenUtlve  of  the  various 
pomu  of  view  and  functions  of  the  Industry 
and  users  affected.  Including  those  of  rwl- 
dentlal.  commercial,  and  Industrial  con- 
•umers.  and  ahall  Include  repreeenutlon 
from  both  State  and  local  governments,  and 
from  representatives  of  State  regulatory  util- 
ity commissions,  selected  aft^r  consuiutlon 
with  the  respective  national  associations 

(bi  Each  meeting  of  such  board  Cask 
force,  commission,  committee,  or  similar 
group,  shall  be  open  to  the  public,  and  In- 
terested persons  shall  be  permitted  to 
attend,  appear  before,  and  file  statement, 
with  such  group,  except  that  the  Adminls- 
frator  may  determine  that  such  meeting 
thall  be  closed  in  the  interest  of  national 
••curity.  Such  determination  8ha»  be  in 
writing,  shall  conuin  a  deUUed  expUnatlon 
of  reasons  in  Mstlflcatlon  of  the  determina- 
tion and  Shall  be  made  avallrfble  to  the 
public. 

<c)  All  records,  reports,  transcripts,  mem- 
oranda, and  other  documenu.  which  were 
prepared  for  or  by  such  group,  shall  be  avaU- 
able  for  public  inspection  and  copying  at  a 
•tngle  location  in  the  offices  of  the 
Adinin  Istration. 

(d)  Advisory  committees  established  or 
utUlzed  pursuant  to  thta  title  ihsil  be  gov- 


December  19,  197S 


erned  In  full  by  the  provisions  of  the  Federal 
Advisory  Committee  Act  (Public  Law  93-463. 
88  Stat.  770),  except  as  Inconsistent  with 
this  section. 

MONtTOSINC  OF  KKBCT  BTATISTICS  /LKD 
AMALTSIS 

S«c.   118.   (a)   The  ComptroUer  General  of 
the  United  States  shaU  continuously  monitor 
and  evaluate  the  operations  of  the  Admin- 
istration   Including    its    reporting    require- 
ments. Upon  bis  own  initiative  or  upon  the 
request  of  a  committee  of  the  Congress  or. 
to  the  extent  personnel  are  available,  upon 
the   request  of   a   Member  of  the  Congress 
the  Comptroller   General  shall    (1)    conduct 
studies  of  existing  statutes  and  regulations 
governing    the    Administrations    programs; 
(2)   review  the  policies  and  practices  of  the 
AdmlnUtratlon;   (3)  review  and  evaluate  the 
procedures  followed  by  the  Administrator  In 
gathering,  analyzing,  and  Interpreting  energy 
statistics,   data,   and   Information  related  to 
the  management  and  conservation  of  energy 
Including  but  not  limited  to  data  related  to 
energy    costs,    supplies,     demand.     Industry 
structure,  and  environmental   impacts-    and 
(4)  evaluate  particular  projects  or  programs 
The   Comptroller  General  shall   have   access 
to    such    daU    from    any    public   or    private 
source   whatever,   notwithstanding   the   pro- 
visions of  any  other  law.  as  Is  necessary  to 
carry  out  his  responsibilities  under  this  title 
and   shall    report    to   the    Congress    at   such 
times  as  he  deems  appropriate  with  respect 
to  the  Administrations  programs.  Including 
his    recommendations    for    modlflcatlona    in 
existing   Uwa,    regulations,    procedures,    and 
practices. 

(b)  The  Comptroller  General  or  any  of  his 
authorized  representatives  in  carrying  out  his 
responslbUltlea  under  this  section  shall  have 
access  to  any  books,  documents,  papers 
statistics,  daU,  Information,  and  reco^Tof 
any  private  organization  relating  to  the  man- 
agement and  conservation  of  energy,  includ- 
ing but  not  limited  to  energy  costs,  demand 
supply,  indvistry  structure,  and  environmen- 
tal impacts  The  Comptroller  General  may 
require  any  private  organization  to  submit 
la  writing  such  energy  data  as  he  may  pre- 
scribe. Such  submission  shall  be  made  with- 
in such  reasonable  period  and  under  oath  or 
otherwise  as  he  may  direct. 

(C)  To  assut  in  carrying  out  bU  respon- 
slbUltlea. the  ComptroUer  General  may  sign 
and  issue  subpenas  requiring  the  production 
or  the  books,  documents,  papers,  staustlcs 
data.  Information,  and  records  referred  to  In 
subsection  (b)  of  this  section 

(d)  In  case  of  disobedience  to  a  subpena 
Issued  under  subsection  (c)  of  this  section 
the  Comptroller  General  may  invoke  the  aid 
of  any  district  court  of  the  United  States  in 
requiring  the  production  of  the  books  docu- 
ments, papers,  statutlcs.  data.  Information 
and  records  referred  to  in  subsection  (b)  of 
this  section  Any  district  court  of  the  United 
States  within  the  Jurisdiction  in  which  the 
private  organization  is  found  or  transacts 
business  may.  in  case  of  contumacy  or  re- 
fusal to  obey  a  subpena  Issued  by  the  Comp- 
troUer General,  issue  an  order  requiring  the 
private  organization  to  produce  the  statistics 
d*U,  or  information;  and  any  failure  to  obey 
such  order  of  the  court  shall  be  punished  by 
the  court  as  a  contempt  thereof 

(e)  Reports  submitted  by  the  Comptroller 
General  to  the  Congress  shall  be  available  to 
the  public  at  reasonable  cost  and  upon 
Idenuflable  request,  except  that  the  Comp- 
troUer General  may  not  disclose  to  the  pub- 
lic any  Information  which  could  not  be  dis- 
closed to  the  public  under  other  provisions 
of  Federal  law 

TTatRAi,  axroKTa  act 
Src.  120  The  Administration,  in  connec- 
Uon  with  the  exercise  of  the  authority  grant- 
ed pursuant  to  section  104  or  by  any  other 
provision  of  thu  tlUe.  shall  be  considered  an 
independent    FedanU    regulatory    agency    as 


provided  for  In  sections  3502  and  3612  of  title 
44  of  the  United  States  Code,  as  amended. 

ADMOflSTKATTVE  PROClBUax  IN  ORDEB  TO  INSCTJr 
ACCOtnTTASIUTT    AND    DUX    PKOCZSS 

Bwc.  121.  (a)  The  functions  transferred  to 
the  Administrator  pursuant  to  section  106 
(a)(1)  and  secUon  106(b)  of  this  title  and 
exercised  by  him  pursuant  to  this  title  are 
excluded  from  the  operation  of  subchapter  2 
of  chapter  6.  and  chapter  7  of  title  V.  United 
SUtes  Code,  except  as  to  the  requirements  of 
sections  662.  556  (c)  and  (e),  and  702  and 
except  as  to  the  requirements  of  section  553 
as  modified  by  subsection  (b)  of  this  section. 
( b »  AU  rules,  regulations,  or  orders  promul- 
gated pursuant  to  the  exercise  of  such  func- 
tions shall  be  subject  to  the  provisions  of 
section  563  of  title  V  of  the  United  States 
Code  except  that  all  such  rules,  regulations. 
or  orders  so  promulgated  must  provide  for 
the  foUowlng: 

<  1 )  Notice  and  opportunity  to  comment 
which  ShaU  be  achieved  by  publication  of  all 
such  proposed  general  rules,  regiilatlons,  or 
orders  so  Issued  pursuant  to  the  exercise  of 
such  functions  In  the  Federal  Register.  In 
each  case,  a  minimum  of  five  days  following 
such  publication  ahaU  be  provided  for  oppor- 
tunity to  comment. 

(2)  The  Administrator,  in  issuing  such 
rules,  regulations,  or  orders  shaU  hold  pubUc 
hearings  on  those  rules,  regulations,  or  orders 
which  the  Administrator  determines  In  his 
discretion  are  likely  to  have  a  substontlal 
impact  upon  the  Nation's  economy  or  large 
numbers  of  individuals  or  businesses.  To  the 
maximum  extent  practicable,  such  hearing 
ShaU  be  held  prior  to  the  Implementation  of 
such  rule,  regulation,  or  order,  but  in  aU 
cases,  such  pubUc  hearings  shaU  be  held  no 
later  than  sixty  days  after  the  Implementa- 
tion of  any  such  rule,  regulation,  or  order, 
which  would  have  a  substantial  effect  upon 
the  Nation  s  economy  or  on  large  numbers  of 
Individuals  or  businesses. 
The  Administrator,  with  respect  to  such  niles, 
regulations,  or  orders,  may  not  waive  any  of 
the  requirements  set  forth  In  this  subsection 
except  that  the  requirements  set  forth  In 
subsection  (b)(1)  as  to  time  of  notice  and 
opportunity  to  comment  may  be  waived 
where  strict  compliance  Is  found  to  cause 
grievous  Injury  to  the  operation  of  the  pro- 
gram and  such  finds  are  set  out  In  detaU  In 
the  rules,  regulations,  or  orders. 

(c)  (1)  In  addition  to  the  requirements  of 
section  552  of  tiUe  V  of  the  United  SUtes 
Code,  the  Administrator.  In  Issuing  such 
rules,  regulations,  or  orders,  shall  make  avail- 
able to  the  public  all  Internal  rules  and 
guidelines  which  may  form  the  basis.  In 
whole  or  In  part,  for  any  such  rule,  regula- 
tion, or  order  with  such  modifications  as  are 
necessary  to  Insure  confidentiality  protected 
under  the  provisions  of  section  562  of  title 
5  of  the  United  States  Code,  commonly  re- 
ferred to  as  the  Freedom  of  Information  Act. 
The  Administrator  shall,  upon  written  re- 
quest of  a  petitioner  filed  after  any  grant  or 
denial  of  a  request  for  exception  or  exemp- 
tion from  such  rules,  regulations,  or  orders 
furnish  the  petitioner  with  a  written  opUilon 
■etting  forth  applicable  facu  and  the  legal 
basis  in  support  of  such  grant  or  denial. 
Such  opinions  shall  be  madeavaUable  to  the 
petitioner  and  the  public  within  thirty  days 
of  such  request  and  with  such  modifications 
as  are  necessary  to  Insure  confidentiality  of 
Uiformatlon  protected  under  the  provisions 
of  section  562  of  title  5  of  the  United  States 
Code,  commonly  referred  to  as  the  Freedom 
of  Information  Act. 

(2)  The  Administrator.  In  Issuing  such 
rules,  regulations,  or  orders  under  this  title 
shall  provide  for  the  making  of  such  ad- 
Justmenu.  consutent  with  the  other  pur- 
poses of  this  title,  as  may  be  necessary  to 
prevent  special  hardships.  Uiequlty.  or  an 
unfair  distribution  of  burdens  and  shall,  in 
regulations  prescribed  by  the  Admmutrator, 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42501 


establish  procedures  which  are  avaUable  to 
any  person  for  the  purpose  of  seeking  an 
:nierppeLation.  njodlficatlon,  or  recLsJon  of. 
or  an  exception  to  or  exemption  from,  such 
rules,  regulations,  and  orders.  If  such  person 
is  aggrieved  by  the  denial  of  a  request  for 
such  action  under  the  preceding  sentence, 
he  may  request  a  review  of  such  denial  by 
-.he  Administrator.  The  Administrator  ahaU, 
in  regulations  prescribed  by  him  establish 
appropriate  pro<~edures,  including  a  hearing 
where  deemed  advisable,  for  considering  such 
requests  for  action  under  this  section. 

JT7DICIAI,    BEVtKW 

Sec.  122.  (a)  Judicial  review  of  administra- 
tive rulemaking  of  general  and  national  ap- 
pUcabUlty  relating  to  functions  transferred 
to  the  Administrator  pursuant  to  section  105 
(a)(1)  and  section  106(b)  of  this  title  may 
be  obtained  only  by  filing  a  petition  for  re- 
view in  the  United  States  Court  of  i^>pe&ls 
for  the  District  of  Columbia  within  thirty 
days  from  the  date  of  promulgation  of  any 
such  rule  or  regulation,  and  Judicial  review 
of  administrative  rulemaking  of  general,  but 
leas  than  national.  appUcabUlty  relating  to 
such  functions  may  be  obtained  only  by 
filing  a  petition  for  review  in  the  Unlte<l 
States  court  of  appeals  for  the  appropriate 
circuit  within  thirty  days  from  the  date  of 
promulgation  of  any  such  rule  or  regulation, 
the  appropriate  circuity  being  defined  as  the 
circuit  which  contains  the  area  or  the  greater 
part  of  the  area  within  which  the  rule  or  reg- 
ulation Is  to  have  effect. 

(b)  Notwithstanding  the  amount  In  con- 
troversy, the  district  courts  of  the  United 
States  shall  have  exclusive  original  Jurisdic- 
tion of  all  other  cases  of  controversies  aris- 
ing out  of  the  exercise  of  such  functions  or 
under  regulations  or  orders  Issued  pursuant 
thereto,  except  that  nothing  In  this  section 
affects  the  power  of  any  court  of  competent 
Jurtsdlctlon  to  consider,  hear,  and  determine 
In  any  proceeding  before  it  any  Issue  raised 
by  way  of  defense  (other  than  a  defense  based 
on  the  constitutionality  of  this  title  or  the 
validity  of  action  taken  by  the  Administra- 
tor In  connection  with  the  exercise  of  such 
functions).  If  In  any  such  proceeding  an 
Issue  by  way  of  defense  Is  raised  based  on 
the  constitutionality  of  this  title  or  the  va- 
lidity of  any  such  action,  the  case  shall  be 
subject  to  removal  by  either  party  to  a  dis- 
trict court  of  the  United  States  In  accord- 
ance with  the  applicable  provisions  of  chap- 
ter 89  of  title  28    rn!t.e<i  States  Code 

SSVlSW       OP      ADMINI-SraATrvT       PROCEDtTRES 

Sec.  123  Within  sixty  days  of  the  date  of 
enactment  of  this  title,  the  Attorney  Gen- 
eral ahall  transmit  to  the  (Congress  a  report 
on  the  admin ustrative  ;aw  prvx-edure-,  whK-h 
wUl  apply  to  the  various  functions  oif  the 
Administrator  together  with  the  Attorney 
General's  recommendations  regarding  the  de- 
alrabUlty  of  the  enactment  of  a  cijmprehen- 
slve  or  difTerent  administrative  law  proce- 
dtire  applicable  to  said  functions 
omc«    OF   p»rvA-n  ouevancks  and  axDnsss 

Sw-  124  (a)  There  1«  established  -within 
the  Adml:.lstrat!<  :■  aii  Office  'if  PtIvb'*-  Ore-.- 
ances  and  Redrew  which  shall  be  headed 
by  a  Director  The  .Administrator  shall  ap- 
point and  fix  -he  oompensatlon  of  the 
Director 

(bt  .Any  perr^on  adversely  affected  by  any 
order  r\Ue,  or  regiUaUon  issued  by  the  Ad- 
ministrator In  carrying  oxit  the  functions  a*- 
8l«ned  to  him  under  this  title  may  petition 
the  Office  of  Private  Grievances  and  Redresn 
for  special  redress,  relief,  or  other  ertraordl- 
nary  ftsslstance 

(c)  T^e  Director  of  the  Office  of  Private 
Onevanoes  and  RAdre«i.i  shall  prant  such  pe- 
titions for  special  relief,  redress,  or  other 
extraordinary  assistance  under  such  condl- 
lU-ins  and  In  such  nsan^er  as  the  Adminlstxa- 
tor  may  in  his  discretion  pjxivlde 

( :!  1    The  Dlreotor  may    from  time  to  time. 


make  recommendations  to  the  Administrator 
with  respect  to  short-term  and  long-term 
measures  i  involvL-..^  administrative  or  legis- 
lative action)  which  might  be  taken  to  pro- 
vide assistance  to  per->ii.s  w.h  .  are  adversely 
affected  by  the  energy  emergency  and  meas- 
ures and  other  actions  taken  to  combat  such 
emergency. 

(e)  The  Director  shaU.  on  a  monthly  basis, 
report  to  the  Congress  c-  ncermng  his  ac- 
tivities under  this  section  Each  such  report 
ShaU  contain,  among  other  matters,  the  num- 
ber and  nature  ot  grievance-s  which  have  been 
filed  pursuant  to  this  section  during  the 
period  not  covered  by  any  such  prior  report, 
incltidlng  action  taken  and  relief  provided 
pursuant  thereto, 

(f)  The  Director  sh.'Ul.  from  time  to  time. 
report  to  the  Congress  his  views  and  recom- 
mendatlon.s  including  recommendations  for 
administrative  or  legislative  action  with  re- 
spect to  actions  which  might  be  taken  to 
provide  for  a  more  equitable  distribution  of 
burdens  resulting  from  measures  or  other 
action."!  adopted  or  taken  by  the  Administra- 
tor and  for  the  relief  of  persons  adversely 
affected  by  such   measures  or  actions. 

COMPREHENSIVTt    FNEEGT    PLAN 

Sec,  125.  la)  Pursuant  and  subject  to  the 
provisions  and  procedures  set  forth  in  this 
title,  the  Administrator  shall,  within  one 
hundred  and  twenty  days  foUowlng  the  date 
of  the  enactment  of  this  title,  develop  and 
repKDrt  to  the  Congre.ss  ifor  referral  to  the 
Committees  on  Oovernment  Op>eratlons  and 
Interior  and  Insular  Affairs  of  the  Senate 
and  House  of  Representatives)  a  comprehen- 
sive plan  designed  to  alleviate  the  eiiergy 
shortage,  for  the  time  period  covered  by  this 
title,  and  satisfying  the  objectives  and  prior- 
ities stated  in  section  127 1 a).  Such  plan 
shall  be  accompanied  by  full  analytical  Justi- 
fication for  the  actions  proposed  therein 
Such  analysis  shall  Include,  but  not  be 
limited  to — 

(1)  estimates  of  the  energy  savings  of 
each  action  and  of  the  program  as  a  whole: 

(2)  estimates  of  any  windfall  lo-sses  and 
gains  to  be  experienced  by  corporations,  In- 
dustries, and  citizens  grouped  by  socio- 
economic class: 

(3)  estimates  of  the  Impact  on  suppUes 
and  consumption  of  energy  forms  con- 
sequent to  such  price  changes  as  are  or  may 
be  proposed;  and 

(4)  a  description  of  alternative  actions 
together  with  a  rationale  In  explanation  of 
the  rejection  of  any  such  alternatives  In 
preference  to  the  measures  actually  pro- 
posed. 

(b)  The  Administrator  may,  from  time 
to  time,  modify  or  otherwise  alter  any  such 
plan,  except  that,  upon  request  of  an  ap- 
propriate committee  of  the  Congress.  Uie 
Administrator  shall  supply  analytical  Justi- 
fications for  any  such  alterations. 

(c)  The  Administrator  shall  be  responsible 
for  monitoring  any  such  plans  as  are  Im- 
plemented with  resptect  to  their  efTectlveness 
In  achieving  the  anticipated  benefits 

EKEKCT    AND    NATrSAi,    SESOLTICB 
ORGANIZATION  At    aXPOBT 

Sec.  126  The  President  shall  submit  to 
the  Congress  not  later  than  June  30.  1974, 
a  report  setting  forth  his  recommendations 
for  a  permanent  Federal  organizational  ar- 
rangement for  the  management  and  devel- 
opment of  policy  for  energy  and  natural 
resources 

seports  to  congress 

Sec.  127  rs)  The  Administrator  shall 
prepare  and  submit  directly  tc  the  Congress 
and  the  President  every  six  months  after 
date  of  enactment  of  this  title  a  report 
which  shall  include— 

(1)  a  review  ar.d  analysis  of  the  major 
actions  taker;  by  the  Ad.Tilrilstrator; 

(2)  an  analysis  of  the  Impact  these  ac- 
tions have  had  on  the  Nation's  clvUiaa  re- 


quirements for  energy  suppUes  for  materials 
and  commodities: 

(3)  a  projection  of  the  energy  supply  for 
the  mid-term  and  long  term  for  each  of  the 
major  types  of  fuel  and  the  potential  size 
and  Impact  of  any  anticipated  shortages, 
Including    recommendations    for    measures 


(A)  minimize  the  deficiency  of  energy  in 
relation  to  needs; 

(B)  maintain   the  health  and  safety  of 

citizens; 

(C)  maintain  production  and  employment 
at  the  hu-hest  feasible  level; 

(D)  equitably  share  the  burden  of  short- 
ages among  Individuals  and  business  firms; 
and 

(E)  minimize  any  distortion  of  voluntary 
choices  of  Individuals  and  firms. 

(4)  a  summary  listing  of  all  recipients  of 
funds  and  the  amount  thereof  within  the 
preceding  period    and 

(5)  a  completely  independent  analysis  of 
domestic  oil  and  eas  reserves  and  the  extent 
to  which  productive  capacity  co-uld  be  in- 
creased each  year  for  the  next  t<>n  years 
with  the  t-all  developwnent  cf  s-ach  reeerves 
and  ascertainable  oil  and  gas  resources  -osing 
avaUabie  and  foreseeable  technology;  Prx>- 
iHded,  That  the  (^amptroller  General,  pur- 
suant to  section  118  of  this  title,  shall  moni- 
tor and  review  said  analysis  and  provide  his 
comments  to  the  Congress  and  the  Admin- 
istrator. 

(b)  The  Administrator  shall  provide  In- 
terim reports  to  Congress  when  requested  by 
committees  of  Congress 

( c )  ill  The  Federal  Energy  Emergency  Ad- 
ministration, in  consultation  with  the  Inter- 
nal Revenue  Service  ar.d  the  Joint  Commit- 
tee on  Internal  Revenue  Taxation  of  the 
Congress,  is  authorized  and  directed  to  un- 
dertake and  complete  a  thorough  review  and 
analysis  of  all  Federal  and  State  tax  law  pro- 
visions relating  to  exploration,  development, 
production,  refining,  dlstrib'^tlon.  and  mark- 
eting of  domestically  produced  energy  re- 
sources. Such  review  shall  include,  but  not 
be  limited  to,  a  review  and  analysis  of  the 
Impact  on  domestic  production  of  energy 
resources  of  Federal  tax  law  provisions  relat- 
ing to  international  operations  of  domestic 
energy  producing  companies 

(2)  The  Federal  Energy  Emergency  Admin- 
istration shall  submit  a  prellmLnary  report 
of  Its  fliidings  and  analysis  no  later  than 
June  30,  1974.  to  the  President  and  t^  the 
Committee  on  Finance  cf  the  Senate  and 
the  Committee  on  Ways  and  Means  of  the 
House  of  Representatives  The  final  report 
in  fulfiUment  of  the  req-jL-^ment  set  forth 
in  paragraph  (1  \  shall  be  subm^itted  no  later 
than  December  31,  1974.  and  shall  include,  in 
addition  to  its  findings  and  analysis,  such 
recommendations  for  changes  in  the  Federal 
tax  laws  as  the  Federal  Energy  Emergency 
Administration  deems  necessary  to  contrib- 
ute to  the  goal  set  forth  m  this  Act  of  estab- 
lishing internal  self-sufficiency  In  energy  re- 
sources in  this  Nation  by  198C  ' 

i3  )  The  Federal  Energy  Emergency  .Admin- 
istration Is  hereby  suthonzed  to  contract 
with  any  firm  or  individual  outside  the  Fed- 
eral government  to  undertake  such  portions 
of  the  study  required  in  this  subsection  as 
the  Administrator  deems  neces&arv 

I d )  The  Administrator  shall,  within  thirty 
days  of  the  date  of  this  Act,  review  the  pro- 
visions of  section  206  of  the  National  En- 
ergy Emergency  Act  regarding  expedited  pro- 
cedures for  compliance  with  the  NaUonal 
Environmental  Policy  Act  of  1969  (83  Stat. 
866 )  and  shall  recommend  to  the  Congrasa 
such  additional  actions  under  the  Admlnls- 
tratar  8  authority  which  may  require  aimi- 
iar  procedures 

pttsockxmical    axpo*T 
8«c.   128    I  a)    Within  thirty  days  after  h« 
has  entered   upon   the  office  of  Adminirtra- 
tor  or  has  been  designated  by  the  Presldeat 


t2.'02 


CONGRESSIONAL  RECORD  — SENA  IE 


to  met  In  such  aAc«,  th«  Administrator,  or 
acting  Administrator,  as  the  c«m  may  be. 
with  tb0  aaslataace  of  the  Department  of 
Commeroe.  the  Ooet-of-UTing  OouncU.  and 
the  United  Statee  Tariff  Commiaalon  sbaU. 
by  written  report,  inform  the  Conaiew  aa  to 
the— 

( 1 )  effect  of  current  Coet-of-Urlng  Coun- 
cil petrochemical  price  ceiUnga  upon  the 
current  level  of  petrochemical  exports,  and 
export  levels  expected  for  1074: 

(3)  effect  of  current  and  expected  1974 
petrochemical  export  levels  upon  domestic 
petrochemical  raw  materials  and  product* 
available  to  petrochemical  producers,  con- 
verters, and  fabricators  currently  and  in 
1974: 

(3)  current  contribution  of  petrochemical 
Imports  to  domestic  supplies  and  the  ex- 
pected contribution  in  1974; 

(4)  anticipated  economic  effects  of  cur- 
rent and  expected  1974  levels  of  domestic 
supplies  of  petrochemicals  upon  domestic 
producers,  converters,  and  fabricators  of 
petrochemical  raw  materials  and  products; 
and 

(5)  exact  nature,  extent,  and  sources  of 
data  and  other  Information  available  to  the 
Federal  government  regarding  the  matters 
set  forth  In  subparagraphs  (1)  through  (4) 
of  this  subsection.  Including  the  exact  na- 
ture, extent,  and  sources  of  such  data  and 
Information  utilized  m  connection  with  the 
report   required   by   this   subsection. 

lb)  Aa  used  In  this  section,  the  term 
"petrochemical"  Includes  organic  chemi- 
cals, cyclic  Intermediates,  plastics  and  resins, 
synthetic  flbers,  elastomers,  organic  dyes, 
organic  pigments,  detergents,  surface  active 
agents,  carbon  black  and  ammonia. 

HTDBOaLBTTBIC     CENEKATTNG     FACILmBS 

Sec.  129.  Within  sUty  days  of  the  date  of 
enactment  of  this  Act.  the  Administrator 
Of  the  Federal  Energy  Administration,  In 
consultation  with  the  Secretary  of  the  In- 
terior, and  the  Secretary  of  the  Army,  shall— 

(a)  transmit  to  the  Congress: 

(1)  a  list  of  hydroelectric  generating  fa- 
cilities and  electric  power  transmlaslon  fa- 
cilities which  have  been  authorized  for  con- 
struction by  the  Congress  and  which  are 
not  yet  completed,  and 

(3)  a  list  of  opportunities  to  Increase  the 
capacity  of  existing  hydroelectric  generating 
facilities. 

(b)  provide,  for  each  such  facility  which 
la  listed; 

(I)  a  construction  schedule  and  cost  es- 
timates for  an  expedited  construction  pro- 
gram which  would  make  the  facility  avail- 
able for  service  at  the  earliest  practicable 
date,  and 

1 3)  a  statement  of  the  accomplishments 
which  could  be  provided  by  the  expedited 
completion  of  each  facility  and  a  statement 
of  any  funds  which  have  b^n  approprUted 
but   not   yet   obligated 

INrOBMAnON  CONCiawIMO  T«AWSAC-nON  SAX.*. 
XXCRANGS  OB  SHIPMZNT  t»r»OI.VTNC  THX  BX- 
PO«T  raOM  THX  tTNmD  »TA-IBS  TO  A  roaXTON 
NATION  or  COAL  AND  «NT  RX^NXD  PmOLCTTM 
PmODUCT 

Sec  130  (a)  Notwlthsti^ndlng  any  other 
provision  of  law,  the  Secret^-rv  of  Commerce 
is  authorized  and  directed  to  establish  and 
maintain  a  flle  which  shall  contain  Informa- 
tion concerning  everv  transaction,  sale,  ex- 
change or  shipment  Involving  the  export 
from  the  United  SUte*  to  a  foreign  nation 
of  coal,  crude  oil,  residual  oD  or  any  reffned 
petroleum  product  Information  to  be  in- 
cluded In  the  flle  shall  be  current  and  shall 
Include,  but  shall  not  be  limited  to.  the 
name  of  the  exporter  (Including  the  name  or 
names  of  the  holders  of  any  beneficial  Inter- 
ests) the  volume  and  type  of  product  In- 
volved In  th*  export  transaction,  the  manner 
of  shipment  and  identiflcatton  of  the  vassal 
or  carrlsr.  the  destlnatloB.  the  name  of  the 


purchaser  if  a  sale,  exchange  or  other  trans- 
action U  Involved,  and  a  statamant  of  reasons 
Justifying  the  expert. 

(b)  Upon  request  of  any  oommlttea  or 
subcommittee  of  the  United  States  Senat* 
and  House  of  RepresenUUvee  or  the  bead  of 
any  Federal  agency,  the  Secretary  shaU 
promptly  provide  any  Information  main- 
tained In  the  flle  and  a  report  ther«on  to 
such  committee,  subcommittee,  or  agency 
head,  except  where  the  President  flnds  such 
dlsclostire  to  be  detrimental  to  national 
security. 

XTfTcrrvx  dats 
Sec  131.  This  title  shall  become  effective 
sixty  days  after  the  date  of  enactment  or 
sooner  If  the  President  publishes  notice  in 
the  Federal  Register.  This  UUe  shaU  ter- 
minate June  30.  1975. 

APPBOnUATIONS 

Sac    132.  (a)   There  are  hereby  authorlaed 
to  remain  available  until  expended,  •75.000,- 
.900  for  fiscal  year  1974,  and  »200.000.000  an- 
nually for  each  of  fiscal  years  1975  and  1976 
to   carrj-    out    the   purposes   of   this    title 

(b)  There  are  hereby  authorized  to  be  ap- 
proprUted  an  additional  MO.000.000  for  fl-scal 
year  1974.  and  $75,000  000  annually  for  each 
of  fiscal  years  1975  and  1976  to  carry  out  the 
purposes  of  this  title  in  the  event  that  the 
President  adopts  a  program  of  rationing  for 
gasoline    or    other    petroleum    products 

(c)  All  sums  appropriated  by  the  Congress 
to  the  Administrator  under  this  title  shall  be 
apportioned  for  the  purpoaes  specified  there- 
in during  the  fiscal  year  for  which  appropri- 
ated, except  to  the  extent  otherwise  author- 
ized by  section  665  of  title  31.  United  States 
Code. 

sKPARABH-rrr 

s£c  133^f  any  provUlon  of  lUs  Act  U  de- 
clared unconstitutional,  or  the  appUcabtllty 
thereof  to  any  person  or  circumstance  U  held 
Invalid,  the  constitutionality  and  effective- 
ness of  the  remainder  of  this  Act  and  the  ap- 
pUcablUty  thereof  to  any  persons  and  cir- 
cumstances shall  not  be  affected  thereby. 
TITLE   n— COUNCIL  ON   ENERGY   POLICY 

Sk:  301  This  title  may  be  cited  as  ths 
"Energy   Policy   Act   of   1073". 

nvDtNoa    AND    ptraposrs 

Sec  202.  (a)  The  Congress  finds  and  de- 
clares that — 

il)  there  are  many  Federal  agencies  cre- 
ated at  different  times  and  for  different  pur- 
poaes to  handle  specialized  problems  all  di- 
rectly or  Indirectly  Involved  In  the  establish- 
ment of  energy  policy; 

(3(  there  is  no  comprehensive  national 
energy  policy  but  Instead  Federal  energy 
activities  consist  of  a  myriad  of  laws,  regu- 
lations, actions  and  Inactions  resulting  in 
narrow,  short-range,  and  often  conflicting  de- 
cisionmaking by  Individual  agencies  without 
adequate  consideration  of  the  Impact  on  the 
overall  energy  policy  nor  future  national  en- 
ergy needs:  and 

(3)  as  a  consequence  of  not  having  a  com- 
prehensive national  energy  policy,  the  Na- 
tion faces  mismanagement  of  energy  re- 
sources, unaccepubly  high  adverse  environ- 
mental Impacts.  Inadequate  incenUves  for 
efljclent  uUllaatlon  and  conservation  of  en- 
ergy  resources  shortages  of  supply,  and  soar- 
ing energy  prices. 

lb)  Therefore.  It  Is  declared  to  be  the  pur- 
pose of  the  Congress  to  protect  and  promote 
the  Interest  of  the  people  of  the  United  States 
as  energy  users  by  establishing  a  Council  on 
Energy  Policy  to  serve  as  a  focal  point  for— 

(1)  the  collection,  analysis,  and  Interpre- 
tation of  energy  statutlcs  and  data  necessary 
to  formuI%te  policies  for  wise  ener?ry  man- 
agement and  conservation  and  to  anticipate 
social,  environmental,  and  economic  prob- 
lems associated  with  existing  and  emerging 
energy  technologies: 

f3»  the  coordination  of  all  energy  activities 


December  19,  197S 

of  the  Federal  Government,  and  provision  of 
leadership  to  State  and  local  governments 
and  other  persons  Involved  In  energy  activi- 
ties: and 

( 3 )  the  preparation,  after  consultation  with 
other  Interested  organizations  and  agencies, 
of  a  long-range  comprehensive  plan  (here-^ 
inafter  referred  to  as  the  "Energy  Plan") 
for  energy  development.  utUlzatlon  and  con- 
servation to  foster  improvement  in  the  effl- 
clency  of  energy  production  and  utilization. 
reduction  of  the  adverse  environmental  im- 
pacts of  energy  production  and  utilization, 
conservation  of  energy  resources  for  the  use 
of  future  generauons,  reduction  of  excessive 
energy  demands,  and  development  of  new 
technologies  to  produce  clean  energy. 
Ouiics  or  rxoERAi.  agkncizs 
Sec.  203.  (a)  The  policies,  regulations  ai'd 
public  laws  of  the  United  States  shall  be 
Interpreted  and  administered  to  the  fullest 
extent  possible  In  accordance  wtth  the  poli- 
cies set  forth  In  this  section;  and 

(b)    All   agencies  of  the   Federal   Ctovem- 

ment  shall   to  the  fullest  extent  poeslble 

( 1 )  utilize  a  systemaUc,  InterdlsclpUiiary 
approach  which  will  insure  the  Integrated 
use  of  both  physical  and  soctal  sciences  in 
producing,  consenlng.  and  utUlztng  the  Na- 
tion's energy  resources; 

(3)  submit,  prior  to  the  review  process 
established  pursuant  to  the  Budget  and  Ac- 
counUng  Act  of  1972.  as  amended,  to  the 
Council  on  Energy  Policy  established  by  this 
section  for  comment  all  legislative  recom- 
mendations and  reports  deal  with  or  have 
a  bearing  on  energy  matters; 

(3)  gather  data  and  Information  pursuant 
to  guidelines  promulgated  by  the  Council  on 
Energy  Policy:  develop  analytical  techniques 
for  the  management,  conservation,  use,  and 
development  of  energy  resources,  and  make 
such  data  available  to  the  CouncU  on  Bnerrr 
Policy:   and 

1 4)  recognize  the  worldwide  and  long- 
range  character  of  energy  concerns  and, 
where  consistent  with  the  foreign  policy  of 
the  United  States,  lend  appropriate  support 
to  initiatives,  resolutions,  and  programs  de- 
signed to  foster  international  cooperation  In 
anticipating  and  resolving  energy-related 
problems. 

KSTABLISHICXKT    OF    A   COnNCU. 

8»c.  304.  (a)  There  shall  be  established  In 
the  Executive  Office  of  the  President  a  Coun- 
cU on  Energy  Policy  (herelnafUr  referred  to 
as  the  Council)  The  CouncU  shall  be  com- 
posed of  three  members  who  shaU  be  ap- 
pointed by  the  President  to  serve  at  his 
pleasure  by  and  with  the  advice  and  consent 
of  the  Senate.  The  President  shall  at  the 
time  of  nomination  designate  one  of  the 
members  of  the  Council  to  serve  as  Chair- 
man Each  member  shall  be  a  person,  who 
as  a  result  of  his  training,  experience,  and 
attainment.  Is  well  qu<illfied  to  analyze  and 
interpret  energy  trends  and  Information  of 
all  kinds,  to  appraise  pr^>grams  and  activi- 
ties of  the  Federal  Oovemment  in  light  of 
the  energy  needs  of  the  Nation;  to  be  con- 
scious of  and  responsive  to  the  environ- 
mental, social,  cultural,  economic,  scientific, 
and  esthetic  needs  and  Interests  of  the  Na- 
tion: and  to  formulate  an  Energy  Plan  and 
recommend  national  policies  with  reepect 
to  wise  energy  management. 

(b)  The  Administrator  of  the  interim  Fed- 
eral Energy  Bhnergency  Administration  estab- 
lished by  title  I  of  this  Act  may.  If  appointed 
to  the  CouncU  pursuant  to  la)  and  If  de- 
signated by  the  President,  serve  as  Chairman 
of  the  Council  in  order  to  coordinate  the 
functions  of  that  AdmlnUtratlon  with  thoRe 
of  the  CouncU  and  to  assure  necessary  con- 
tinuity subsequent  to  the  termination  of 
title  I  as  provided  by  section  135  of  this  Act. 
Dimxs  or  corNCTL 
Sec  208  (a)  The  Council  shall  serve  as 
the   principal    adviser    to   the    President   rn 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42503 


energy  policy  and  shaU  exercise  letwlershlp  In 
the  formulation  of  Goverrmient  policy  con- 
cerning domestic  and  international  Issues 
relating  to  energy. 

(b)  The  CouncU  shall  make  recommenda- 
tions to  the  President  and  the  Congress  for 
resolving  conflicts  between  the  jxiUcles  relat- 
ing to  energy  of  different  Federal  agencies 

(c)  The  CouncU  shall  develop  within  eight- 
een months  after  the  date  of  enactment  of 
this  title  and  thereafter  shall  annuaUy  up- 
date an  Energy  Plan  for  energy  development, 
utilization,  and  conservation  In  the  United 
States  to  carry  out  the  purposes  as  stated 
In  subsection  (b)  of  this  section.  Copies  of 
such  Energy  Plan  shall  be  distributed  on 
January  1  of  each  year  to  the  President,  to 
the  Congress,  and  to  all  Federal  and  State 
agencies  concerned  with  energy,  and  upon 
request  to  local  agencies  and  nongovern- 
mental entitles. 

(d)  the  CouncU  shall  promptly  review  all 
legislative  recommendations  and  reports  sent 
to  Congress,  to  the  extent  that  .such  recom- 
mendations and  reports  have  a  bearing  on 
energy  matters,  and  It  shall  send  to  the 
President  and  the  Involved  Federal  agency 
a  statement  In  writing  of  Its  position  and  the 
reasons  therefor.  This  subsection  ahaU  not 
apply  to  title  I  of  this  Act 

(e)  The  Council  shaU  keep  Congress  fully 
and  currently  Informed  of  all  of  Its  activi- 
ties Neither  the  CouncU  nor  its  employees 
may  refuse  to  testify  before  or  submit  infor- 
mation to  Congress  or  any  dxUy  authortaed 
committee  thereof. 

(f )  The  CouncU  shall  conduct  annual  pub- 
lic hearings  on  the  Energy  Plan  and  may  hold 
public  hearings  when  there  Is  substantial 
public    Interest    In    other    pending    matters. 

(g)  In  carrying  cnit  Its  collection,  analysis, 
and  Interpreatlon  of  energy  statistics  func- 
tion, the  Coimcll  shall,  as  quickly  as  pos- 
sible and  after  appropriate  study.  promxU- 
gate  guidelines  for  the  coUectlon  and  Initial 
analysis  of  energy  data  by  other  Federal 
agencies,  after  pubUshed  notice  In  the  Fed- 
eral Register  and  opportunity  for  comment. 
Such  gvildellnes  shall  be  designed  to  make 
such  data  compatible,  useful,  and  compre- 
hensive. Where  relevant  data  is  not  now 
available  or  reliable  and  la  beyond  the  au- 
thority of  other  agencies  to  collect,  then 
the  Council  shall  recommend  to  the  Con- 
gress the  enactment  of  appropriate  legisla- 
tion. Pending  congressional  consideration, 
the  Council  may  gather  such  data  directly. 
The  CouncU  shall  have  the  power  to  require 
by  special  or  general  orders  any  person  to 
submit  In  writing  such  energy  data  as  the 
OouncU  may  prescribe.  Such  subnUsslon  shall 
be  made  within  such  reasonable  period  and 
under  oath  or  otherwise  as  the  OouncU  may 
direct. 

AD  IAIN  lif  1 KATTVX   PROVISIONS 

Sec.  206.  I  a)  In  exercising  Its  powers,  func- 
tions, and  duties,  the  CouncU  shall — 

(1)  consult  with  representatives  of  sci- 
ence, industry,  agrlcultxire,  labor,  conserva- 
tion organizations.  State  and  local  govern- 
ments, and  other  grroups.  as  It  deems  ad- 
visable; and 

(2)  employ  a  competent.  Independent  staff 
which  shall  utilize,  to  the  fullest  extent  poe- 
slbl",  the  services,  facilities,  and  Information 
(Including  statistical  Information)  of  public 
and  private  agencies  and  organizations,  and 
Individuals,  to  arold  duplication  of  effort  and 
expense,  thus  assuring  that  the  Council's 
activities  wlU  not  unnecessarily  overlap  or 
confilct  with  similar  activities  authorized  by 
law  and  performed  by  other  agencies 

(b)  Members  of  the  Council  shaU  serve  fuU 
tln.e  and  the  Chairman  of  the  Council  shall 
be  compensated  at  the  rate  provided  for  level 
n  of  the  Executive  Schedule  Pav  Rates  (5 
use.  6313).  The  other  members  of  the 
Council  shall  be  compensated  at  the  rate 
provided  for  level  IV  of  the  Executive  Sched- 
ule Pay  Rates  (6  U.S.C.  6315). 

CXTX 2677— Part  33 


(c)  The  CouncU  may  employ  such  officers 
and  employees  as  may  be  necessary  to  carry 
out  Its  functions.  The  Council  may  also  em- 
ploy and  fix  the  compensation  of  such  ex- 
perts, consul tanu,  o:  contractors  to  conduct 
detailed  studies  as  may  be  necessary  for  the 
carrying  out  of  its  functions  to  the  same 
extent  as  Is  authorized  under  section  3109  of 
title  5,  United  States  Code  (but  without  re- 
gard to  the  last  sentence  thereof). 

ENEBCT    aePORT 

Sec.  207.  The  CouncU  shaU  prepare  and 
submit  to  the  President  and  the  Congress  on 
or  before  January  1,  1974,  and  annually 
thereafter,  an  energy  report  to  to  accompany 
the  Energy  Plan.  This  report  shall  include— 

(a)  an  estimate  of  energy  needs  of  the 
United  States  for  the  ensuing  ten-year  period 
to  meet  the  requirements  of  the  general  wel- 
fare of  the  people  of  the  United  States  and 
the  commercial  and  Industrial  life  of  the 
Nation; 

(b)  an  estimate  of  the  domestic  and  for- 
eign energy  supply  on  which  the  United 
States  will  be  expected  to  rely  to  meet  such 
needs  In  an  economic  manner  with  due  re- 
gard lor  the  protection  of  the  environment, 
the  conservation  of  natural  resources,  and 
th©  Implantation  of  foreign  poUcy  objectives: 

(c)  current  and  foreseeable  trends  In  the 
price,  quaUty,  management,  and  utUlzatlon 
of  energy  resources  and  the  effects  of  those 
trends  on  the  social,  environmental,  eco- 
nomic, and  other  requirements  of  the  Nation; 

(d)  a  catalog  of  research  and  development 
efforts  funded  by  the  Federal  Government  to 
develop  new  technologies,  to  forestaU  energy 
shortages,  to  reduce  waste,  to  foster  recycl- 
ing, and  to  encourage  conservation  practices; 
and  recommendations  for  developing  tech- 
nology capable  of  increasing  efficiency  and 
protecting  employee  health  and  safety  In  en- 
ergy Industries; 

(e)  recommendations  for  improving  the 
energy  data  and  Information  avaUable  to  the 
Federal  agencies  by  Improving  monitoring 
systems,  standardizing  data,  and  securing  ad- 
ditional needed  Information; 

(f)  a  review  and  appraisal  of  the  ade- 
quacy and  appropriateness  of  technologies, 
procedures,  and  practices  (including  compet- 
itive and  regulatory  practices),  employed  by 
Federal,  State,  and  local  governments  and 
nongovernmental  entitles  to  achieve  the  pur- 
poses of  this  section;  and 

(g)  recommendations  concerning  the  level 
of  funding  for  the  development  and  applica- 
tion of  new  technologies,  as  well  as  new  pro- 
cedures and  practices  which  the  CouncU  may 
determine  to  be  required  to  achieve  the  pur- 
poses of  this  section  and  improve  energy 
management  and  conservation  together  with 
reconunendatlons  for  additional  legislation. 

PXTBLIC    ACCESS    TO    INFORMATION 

Sec.  208.  (a)  Copies  of  any  communica- 
tions, documents,  reports,  or  information  re- 
ceived or  sent  by  any  members  of  the  Coun- 
cU shall  be  made  avaUable  to  the  public  upon 
Identifiable  request,  and  at  reasonable  cost, 
unless  such  Information  may  not  be  publicly 
released  under  the  terms  of  paragraph  (2) 
of  this  subsection. 

(b)  The  CouncU  or  any  officer  or  employee 
of  the  Ck>uncU  shall  not  disclose  Information 
obtained  under  this  section  which  concerns 
or  relates  to  a  trade  secret  referred  to  In 
section  1905  of  title  18.  United  States  Code, 
except  that  such  Information  may  be  dis- 
closed In  a  manner  designed  to  preserve  Its 
confidentiality — 

<1)  to  other  Federal  Government  depart- 
ments, agencies,  and  officials  for  official  use 
upon  request: 

(2)  to  committees  of  Congress  having  Juris- 
diction cyfitx  the  subject  matter  to  which  the 
Information  relates; 

(3)  to  a  court  In  any  judicial  proceeding 
under  court  order  formulated  to  preserve  the 


confidentiality  of  such  Information  without 
Impairing  the  proceedings;  and 

(4)  to  the  public  in  order  to  protect  their 
health  and  safety  after  notice  and  oppor- 
tunity for  comment  in  writing  or  for  discus- 
sion In  closed  session  within  fifteen  days  by 
the  party  to  whom  the  Information  pertains 
(if  the  delay  resulting  from  such  notice  and 
opportunity  for  comment  would  not  be  detri- 
mental to  the  public  health  and  safety). 
In  no  event  shaU  the  names  or  other  means 
of  identification  of  Injured  persons  be  made 
public  without  their  express  written  consent. 
Nothing  contained  In  this  section  shaU  be 
deemed  to  require  the  release  of  any  Informa- 
tion described  by  subsection  (b)  of  secUon 
552.  title  6,  United  States  Code,  or  which  Is 
otherwise  protected  by  law  from  disclosure 
to  the  public. 

MONITORING    OF    KNTECY    STATISTICS    AND 

ANALYSIS 

Sec,  200.  (a)  The  Comptj-oUer  General  of 
the  Unlt«d  Stai«b  sixali  continuously  moni- 
tor and  evaluate  the  operaUoiis  of  the  Coun- 
cil Including  its  reporting  requirements. 
Upon  his  own  initiative  or  upon  the  request 
of  a  committee  of  the  Congress  or,  to  the  ex- 
tent personnel  are  available,  upon  liie  re- 
quest of  a  Member  of  the  Congress,  the 
Comptroller  General  shall  (1)  conduct 
studies  of  existing  statutes  and  regulations 
governing  Federal  energy  programs,  (3)  re- 
view the  policies  and  practices  o.'  Federal 
agencies  administering  such  prograjiis.  (3) 
review  and  evaluate  the  p.-x^ed-j.-es  followed 
by  such  ageiiclee.  :;.  gatiien.ig.  analyzing,  and 
interpreting  enetgy  statistics,  data,  and  in- 
formation related  to  the  rr.iijiageme.it  ar.d 
conservation  of  energy,  including  but  not 
limited  to  data  related  to  energy  costs,  de- 
mand, Indostr;,-  structure,  eavlronmental 
impacts  and  research  ar.d  deTeiopment,  and 
(4)  evaluate  panicuiaj-  project*  or  programs. 
The  Camptroiier  General  shall  have  accees  to 
such  data  rn..im  any  public  or  private  source 
whatever,  notwithstanding  the  provisions  or 
any  other  law,  a,s  is  iiecessar:,-  to  carrv-  out  his 
rei^MDnsibilitles  under  i.h:ji  section  a'ad  shall 
report  to  the  Congress  at  such  times  as  he 
deems  appropr.ate  w:th  respect  to  Federal 
energy  programs,  h'-icludlng  his  reo  mmenda- 
tlons  for  such  nrwxliacatlons  in  existing  laws, 
regulations,  procedures,  and  practices  a.s  wiU, 
In  his  judgment,  best  serve  the  Congress  in 
the  formulation  of  a  natioiia.  energy  policy. 

(b)  111  carrying  out  his  responsibilities  as 
provided  in  paragraph  1 1 )  of  this  subsection. 
the  Comptroller  Genera:  shall  g:ve  panicu- 
lar  attention  to  the  need  for  impn  ved  ccordJ- 
natlon  of  the  work  of  the  F-ede^a.  0->vem- 
ment  related  to  energy  policies  and  pro- 
grams and  tne  attendant  need  for  a  .Dentral 
source  ol  energy  statistics  and  in'ormation, 

(c)  The  Comptroller  General  or  any  of  his 
authorized  rep.-esentatives  :n  carrying  out 
his  responsibUltles  under  this  section  shall 
have  access  to  any  books,  documents,  papers, 
statistics,  data,  information,  and  reconls  of 
any  private  organization  relating  to  the  man- 
agement and  conservation  of  energy,  in- 
cluding but  not  limited  to  energy  costs,  de- 
mand, supply,  reserves,  mdustry  structure, 
environmental  Impacts,  and  research  and  de- 
velopment. The  Comptroller  General  may  re- 
quire any  private  organization  to  submit  in 
writing  such  energy  data  as  he  may  pre- 
scribe. Such  submission  shall  be  made  within 
such  reasonable  period  and  under  oath  or 
otherwise  as  he  may  direct. 

(d)  To  assist  in  carrying  out  his  respon- 
sibUltles, the  Comptroller  General  may  sign 
and  Issue  subpenas  requiring  the  production 
of  books,  documents,  papers,  statistics,  data. 
Information,  and  records  referred  to  in  para- 
graph (c)  of  this  subsection. 

(e)  In  case  of  contumacy,  or  refusal  to 
obey  a  subpena  of  the  Comptroller  General 
Issued  under  this  section,  by  any  person 
who  resides,  is  found  or  transacts  business 


42504 


CONCRI-NIONAI,  RrroKD  — MiNATE 


within  the  Juristlictlon  of  any  district  court 
of  th«  United  States,  such  district  court  shttll. 
nF>on  the  request  of  the  Comptroller  aeneral. 
b»Te  Jxirlsdlctlon  to  lAVue  to  vucb  person  an 
order  requiring  auch  person  to  comply 
forthwith.  Failure  to  obey  ruch  an  order  Is 
punishable  by  such  court  as  a  contempt  of 
court. 

(f)  Reports  submitted  by  the  Comptroller 
General  to  the  Congress  shall  be  available  to 
the  public  at  reasonable  coet  and  upon 
Identifiable  request,  except  that  the  Comp- 
troller General  may  not  disclose  to  the  pub- 
lic any  information  which  could  not  be  dis- 
closed to  the  public  by  the  Council  under 
the  provisions  of  this  title  if  the  informa- 
tion were  held  by  the  Council 

AtTTHOmiZATION  Of  APPaOPaUTTONS 

Ssc.  210.  (i)  There  are  authorized  to  be 
appropriated  to  carry  out  the  provisions  of 
thLn  title  not  to  exceed  tl.OOO.OOO  for  fiscal 
year  ending  June  30,  1974.  $2,000,000  for 
fiscal  year  ending  June  3.  1975.  and  M.000.000 
for  each  fiscal  year  thereafter 

(b)  All  sums  appropriated  ptirsuant  to 
this  section  shall  remain  available  for  ob- 
ligation or  expenditure  In  the  fiscal  year  next 
following. 

The  title  was  amended  so  as  to  read: 

"A  bill  to  provide  for  the  effective  and  ef- 
ficient management  of  the  Nation's 
energy  policies  and  programs  for  the 
duration  of  the  existing  energy  emer- 
gency, and  for  other  purposes." 

Mr.  RIBICXDFP.  Mr.  President,  I  move 
to  reconsider  the  vote  by  which  the  bill 
was  passed 

Mr  HUMPHREY  and  Mr  PERCY 
moved  to  lay  the  motion  on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 

Mr.  ERVTN.  Mr.  President,  as  chair- 
man of  the  Senate  Committee  on  Gov- 
ernment Operations.  I  am  exceedingly 
proud  of  the  dispatch  with  which  this 
particular  piece  of  legislation  was  per- 
fected, processed,  and  reported  to  the 
Senate.  As  chairman  of  the  committee. 
I  asked  the  Senator  from  Connecticut 
(Mr  Rraicorr)  to  act  as  floor  manager  of 
the  bill  because  he  was  better  versed  In 
Its  contents  than  any  other  member  of 
the  Government  Operations  Committee. 

I  would  like  to  pay  him  tribute  by  say- 
ing I  think  the  work  he  did  In  perfecting 
this  bill  and  In  presenting  It  to  the  Sen- 
ate Ls  as  fine  and  as  Intelligent  and  as 
statesmanlike  a  job  as  I  have  ever  seen 
performed  here  by  any  Senator  during 
the  time  I  have  been  privileged  to  serve 
In  this  body 

I  would  also  like  to  commend  the  dis- 
tinguished ranking  member  of  the  sub- 
committee (Mr  P«RCY)  for  the  many 
fine  contributions  which  he  has  made 
to  this  bill,  and  to  commend  other  Sen- 
ators such  as  Senator  J.*ck.son  Senator 
MrsKiT.  Senator  Roth.  Senator  Htttjdle- 
STO!*.  who  Is  now  presiding.  Senator 
Ceoxes.  and  Senator  Nnnf.  for  the  fine 
contributions  ftfcey  made 

Mr  RIBICOFP.  Mr.  President,  will 
the  Senator  yield? 

Mr  ERVTN.  I  yield 

Mr  RIBICOPP  May  I  express  my  ap- 
preciation to  the  dlstlngxiished  chair- 
man for  his  gracious  comments  The 
leadership  of  our  chairman  was  so  im- 
portant In  mo^-lng  this  bill  ahead  and 
bringing  it  to  the  floor  for  passage  The 
chairman  and  the  chief  of  staff.  Mr 
Robert  Smith,  were  completely  coopera- 


December  19,  1973 


tlve,  and  all  the  members  and  their  staffs 
worked  together  nights  and  weekends 
to  draft  the  committee  amendments  and 
prepare  the  report  to  the  Senate. 

Our  success  Is  due  to  the  leadership 
of  our  chairman  and  also  to  the  rank- 
ing minority  member.  Senator  Pirct. 
Senator  Javpts,  Senator  Jackson.  Sena- 
tor MtTSKa,  Senator  MrrcAU.  and  every 
member  of  the  committee  made  valuable 
contributions 

I  also  want  to  state  my  gratitude  to  the 
members  of  the  committee  and  members' 
staff.  They  did  a  great  job. 

Mr.  President.  I  want  to  single  out  for 
special  praise  and  recognition.  Mr.  Rob- 
ert J.  Wager,  staff  director  and  general 
counsel  ^f  the  Subcommittee  on  Re- 
organization, Research,  and  Interna- 
tional Organizations,  which  I  chair.  He 
organized  and  directed  tlie  extraordinary 
staff  effort  wliich  went  into  Uais  bill.  His 
vast  knowledge  of  reorganization  proced- 
ure was  an  essential  Ingredient  of  the 
transfer  and  authority  provisions  of  the 
act.  Without  his  able  assistant  it  would 
not  have  been  possible  to  hold  arings. 
draft  amendments,  report  the  biu,  write 
the  committee  report  and  acliieve  final 
passage  of  as  fine  an  act  as  we  have  pro- 
duced today — all  within  the  space  of  15 
days.  This  Is  an  outstanding  achieve- 
ment, and  I  express  my  thanks  to  Mr. 
Wager  on  behalf  of  the  Senate  and  the 
Nation  at  this  time  of  energy  emergency. 
Mr.  ERVTN.  Mr.  President.  I  would 
like  to  pay  special  commendation  to  Sen- 
ator MrrcALr  for  his  work. 

Mr  PERCY.  Mr.  President,  will  the 
Senator  yield  ^ 

Mr.  ERVTN.  I  yield. 

Mr.  PERCY  Ver>-  briefly,  let  me  say 
that  when  anyone  says  the  Senate  Is  not 
capable  of  acting  swiftly  and  thoroughly, 
we  can  point  with  pride  to  this  bill, 
which  Is  an  outstanding  example  of 
speedy  yet  deliberate  action.  Prom  the 
day  we  received  the  bill,  on  December  4. 
until  It  passed  the  Senate  today,  took 
only  15  days.  The  bill  was  the  subject  ol 
a  tremendous  amount  of  modification 
and  a  good  deal  of  creative  work  on  both 
sides  of  the  aisle 

I  joint  my  colleague.  Senator  Rni- 
coFr.  in  commending  our  chairman.  Sen- 
ator Ervtn.  but  I  think  we  all  would  say 
that  we  are  Indebted  to  the  Senator  from 
Connecticut  'Mr.  Rraicofn  for  the  lead- 
ership he  has  shown  In  this  matter. 
Every  single  member  of  the  committee 
was  cooperative. 

So  also  was  Mr.  Simon.  If  this  Is  an 
example  of  the  working  relationship  we 
are  going  to  have  with  him.  I  think  it  is 
very  fine 

We  also  relied  very  heavily  on  the  ex- 
pertise of  the  Senator  from  Washing- 
ton (Mr.  Jacksow>  .  and  admirably  expert 
staff. 

As  always,  we  relied  heavily  on  the 
learned,  perceptive  contributions  of  the 
senior  Senator  from  New  York  (Mr. 
Javits)  Senator  Ourwit.  Senator  Roth. 
and  Senator  Brock  all  made  their  dis- 
tinctive contributions 

The  staff  work  has  been  thorough  and 
outstanding.  Mr  Robert  Smith,  chief 
counsel  of  the  committee,  and  Mr.  Rob- 
ert Wager,  chief  counsel  of  the  Execu- 
tive Reorganization  Subcommittee  de- 


serve special  credit.  Bob  Wa^er  ;>artlc- 
ularly  for  his  skUl  In  working  with  oUier 
members  in  modifying  their  amendmejits 
so  that  the  managers  of  the  bill  could 
accept  them.  I  would  like  to  express  mv 
own  appreciation,  on  behalf  of  U.e 
minortty,  for  the  able  a.sslstance  and 
contributions  of  our  counsel.  Mr  Robert 
Vastine.  Mr.  John  Pearson,  and  Mr 
Brian  Conboy. 

Mr.  JACKSON.  Mr.  President,  will  the 
Senator  yield  for  30  seconds? 
Mr.  MANSFIELD  I  yield. 
Mr.  JACKSON.  Mr.  President.  I  would 
like  to  associate  myself  with  the  remarks 
that  liave  been  made  here  about  the  dis- 
tinguLshed  chairman  of  the  Subcommit- 
tee  on   Reorganization.    Research,   and 
International    Organizations,    the    able 
Senator  from   Connecticut    (Mr.   Ribi- 
roFT>.  This  has  been  a  very  dlflScult  as- 
signment, and  he  has  handled  the  situa- 
tion, I  think.  In  a  masterful  way.  This  bill 
Is  extremely  Important  Insofar  as  the 
energy  program  Is  concerned.  I  want  to 
express  my   gratitude   to   him   and   my 
appreciation    to    the    ranking   minority  , 
member  of  the  committee,  the  Senator  \ 
from  nilnols   (Mr.  Percy),  for  the  bl-     ' 
pai-tisan  effort  that  has  been  made  in 
pushing  this  legislation  through.  They 
have  been  a  great  team,  and  I  am  most 
appreciative    for    the    high    quality    of 
leadership. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42505 


ORDER  OF  BUSINESS 

Mr.  HUMPHREY.  Mr.  President,  will 
the  Senator  yield? 

Mr.  MANSFIELD.  I  yield 


ENROLLED  BILL^  PRESENTED 

The  Secretary  of  the  Senate  reported 
that  on  today.  December  19.  1973  he 
presented  to  the  President  of  the  United 
States  the  following  enrolled  bills: 

S.  2413.  An  act  to  authorize  the  disposal 
of   aluminum   from   the   naUonal   stockpUe 

■ttd  the  supplemental  stockpUe.  and  for 
other  purposes: 

3.  2498  An  act  to  authorize  the  disposal 
of  zinc  from  the  national  stockpile  and  the 
supplemental  stockpUe;  and 

3  2551.  An  act  to  authorize  the  disposal 
of  molybdenum  from  the  national  stockpUe 
and  from  the  supplemental  stockpUe,  and 
for  other  purposes 


HEALTH  MAINTENANCE  ORGANIZA- 
TION KCT  OP  1973— CONFERENCE 
REPORT 

Mr.  MANSFIELD.  Mr  President,  I  sub- 
mit a  report  of  the  committee  of  con- 
ference on  S.  14,  and  ask  for  its  Immedi- 
ate consideration. 

The  PRESIDINO  OFFICER.  The  re- 
port will  be  stated  by  title. 

The  Legislative  Clerk  read  as  follows: 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendments  of  the  Hm:s«  tn  the  blU  (8  14 » 
to  amend  the  Public  Health  Service  Act  to 
provide  assistance  and  encouragement  for 
the  establishment  and  expansion  of  health 
maintenance  organteatlon*.  heaJ-.h  caxt)  re- 
•oxiroes,  and  the  establishment  of  a  Quailty 
Health  Care  Commission,  and  for  other 
purpoees  having  met.  after  full  and  free  con- 
ference, have  agreed  to  recommend  and  do 


re.-<)m;ue:id    to   their   respective    Ho-.-ses    UiIb 
report,  signed    by   ail   Uie  coiiieroee 

The  PRESIDING  OFFICER.  L^  there 
objection  to  the  con.sideration  of  the  con- 
ference report? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  report 

(The  conference  report  is  printed  in 
the  House  proceedings  of  the  Concris- 
siONAL  Record  of  December  12.  1973  at 
pp.  41089-41096  ) 

Mr.  MANSFIELD  Mr  President.  I  ask 
unanimous  consent  that  there  be  a  time 
limitation  of  not  to  exceed  10  minutes  on 
the  pending  conference  report;  that  the 
time  be  divided,  under  the  usual  regula- 
tion, between  the  Senator  from  Massa- 
chusetts (Mr.  KncNKDY)  and  the  Sena- 
tor from  New  York  (Mr.  Javtts),  or 
whomever  they  may  designate. 

The  PRESIDINO  OFFICER.  Is  there 
objection?  Without  objection.  It  is  so  or- 
dered. 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  at  the  end  of 
that  time  there  be  a  yea  and  nay  vote. 
The  PRESIDING  OFFICER.  Is  there 
objection?  Without  objecUon.  It  is  so 
ordered,  and  the  yeas  and  nays  are 
ordered. 

Mr.  MANSFIELD  And  that  the  roll- 
call  run  for  approximatelj'  10  minutes. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  MANSFIELD.  And  that  following 
the  disposal  of  that,  we  then  turn  to  the 
consideration  of  Calendar  No.  609,  House 
Joint  Resolution  176,  a  joint  resolution  to 
authorize  the  production  of  petroleum 
from  Naval  Reserve  No.  1. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  KENNEDY.  Mr.  President,  I  would 
like  to  call  the  conference  report  accom- 
panying S.  14.  the  Health  Maintenance 
Organization  Act  of  1973,  to  the  attention 
of  the  Senate. 

Almost  2  years  ago.  I.  together  with  a 
number  of  cosponsors,  Introduced  the 
Health  Maintenance  Organization  and 
Resources  Development  Act  Into  the  Sen- 
ate. Through  hundreds  of  hours  of  hear- 
ings, executive  sessions,  and  floor  sujtion, 
I  have  strongly  advocated  passage  of  leg- 
islation to  assist  the  development  of 
health  maintenance  organizations  as  a 
viable  and  competitive  alternative  to  fee- 
for-service  practice.  I  am  pleased  to  call 
the  Senate's  attention,  at  long  last,  to 
the  result  of  that  work. 

Although  the  bill  to  emerge  from  the 
conference  committee  does  not  do  as 
much  as  I  believe  should  be  done,  par- 
ticularly in  the  area  of  dollar  authori- 
zations, In  stimulating  the  development 
of  alternative  forms  of  health  care  de- 
livery, it  is,  I  believe,  a  sound  if  limited 
beginning  to  the  solution  of  some  of  the 
problem.s  which  exist  today  in  the  health 
care  industry. 

This  bUl  represents  the  first  initiative 
by  the  Federal  Government  which  at- 
tempts to  come  to  grips  directly  with 
the  problems  of  fragmentation  and  dis- 
organization in  the  health  care  industry. 
Although  this  prognim  authorizes  the 
expenditure  of  only  $375  million  over  a 
5-year  period,  to  finance  changes  in  a 
health  care  industry  with  an  annual  cash 
flow  in  excess  of  $80  billion,  it  contains 


a  number  of  other  form.';  of  assistance 
wlilch  I  believe  will  siimuiate  the  devel- 
opment of  HMO's  across  ihe  country 

First  of  all,  it  contatris  a  provision 
which  would  override  restrictive  State 
laws,  the  enforcement  of  which  wo'jJd 
impede  the  development  of  HMO's,  These 
laws,  many  of  them  placed  on  the  books 
years  ago  by  insurance  carriers  or  medi- 
cal societies,  are  in  maixy  case5  archaic. 
To  the  extent  they  would  impede  the 
development  of  HMO's  meeting  the  care- 
ful definitional  and  organizational 
criteria  .set  forth  in  this  legislation,  pro- 
visions in  the  bill  would  override  them 

Second,  the  Senate  accepted  a  Heu.'^e 
provision  which  I  believe  will  go  a  long 
way  toward  offering  HMO's  an  equal 
chance  at  the  health  care  market  with 
traditional  health  Insurance  plans.  This 
bill  would  require  each  employer  employ- 
ing In  excess  of  25  employees  to  offer  an 
HMO  option  if  he  offers  tiis  employees 
health  benefits  of  other  types,  and  If  an 
HMO  meeting  the  requirements  of  the 
legislation  is  operating  in  Jus  area.  The 
employer  is  not  required  to  make  con- 
tributions to  his  employees  health  plan 
in  excess  of  what  he  is  already  nmking, 
but  does  require  that  he  offer  them  the 
choice  between  traditional  health  insur- 
ance benefits  and  benefits  in  the  form  of 
HMO  membership. 

These  two  provisions  would  apply  to 
HMO's  whether  or  not  they  receive 
financial  assistance  in  the  form  of  grants, 
contracts,  or  loans,  under  the  authority 
provided  In  this  legislation.  It  Is  Im- 
portant to  point  out.  however,  that  any 
HMO,  In  order  to  qualify  for  the  "pre- 
emption" or  "mandated  multiple  choice" 
provisions  of  the  bill,  mix^t  meet  the 
rather  extensive  definitional  and  or- 
ganizatonal  requirements  detailed  In  the 
legislation.  The  conference  oom^mittee 
believes  that  these  requirements,  togeth- 
er with  authority  granted  in  the  commit- 
tee report  to  the  Secretary  to  continue 
to  regxilate  HMO's  assisted  by  this  legisla- 
tion, will  provide  adequate  safeguards 
against  the  as-sistance  of  poor  quality  or 
nonviable  HMO's  by  the  programs  au- 
thorized by  S.  14. 

In  addition,  this  legislation  calls  for  an 
extensive,  carefully  defined  study  of  all 
mechanisms,  public  and  private,  cur- 
rently operating  In  the  United  States  to 
assure  the  quality  of  health  care.  The 
study  Is  to  be  conducted  by  a  non- 
governmental entity,  such  as  the  In- 
stitute of  Medicine  of  the  National 
Academy  of  Sciences.  A  report  to  the 
Congress  by  a  date  certain  is  required 
Far  from  being  a  national  effort  to 
make  HMO's  the  dominant  pattern  of 
care  in  the  United  States,  the  bill  result- 
ing from  the  work  of  the  conference  ccwn- 
mittee  wlU,  I  believe,  introduce  a  modest 
degree  of  pluralism  into  what  is  other- 
wise a  monolithic  fee-for-serv1ce  health 
care  system,  if  fully  implemented. 

I  strongly  believe  that  the  introduction 
of  diversity  and  pluralism,  into  our  cur- 
rent headth  care  system  is  desirable.  The 
existence  of  HMO's,  where  they  have 
been  successful,  stimulated  healthy  trmo- 
vatlon  and  competition  In  the  rest  of  the 
health  care  Industry  In  the  area.  I  be- 
lieve In  competition  in  the  health  care 


Industry,  and  I  believe  HMO  s  are  one 
proven  form  of  health  care  which  can  be 
competitive  with  the  existing  system. 

I  have  never  considered  HMCDs  to  be  a 
panacea  or  the  answer  to  a'll  the  prob- 
lems ol  our  current  health  care  system. 
Of  equal  importance  are  the  problems 
of  financing  health  services,  the  appro- 
priate production  of  health  manpower, 
and  the  equitable  distribution  of  health 
care  facilities,  equipment  and  personnel 
throughout  the  country. 

I  look  forvsard  *&  taking  an  active  role 
In  the  enactment  of  legislation  which  will 
adequately  deal  with  those  problems. 

However,  I  believe  that  the  HMO  Ls  one 
proven  alternative  to  existing  fee-for- 
service  health  care  practices  and  must  be 
given  a  fair  chance  to  provide  health 
services  In  a  proven,  but  alternative  way, 
to  the  existing  system  HMO's  have  been 
proven  to  work  m  urban  and  rural  areas. 
The  San  Joaquin  Foundation  for  Medical 
Care — a  rural  liMO — and  the  Harvard 
Community  Health  Plan — an  urban 
HMO — have  both  succes.'-fuily  enrolled 
low  income  groups.  pro\ided  adei^uate 
purchasing  powers  available  to  them,  in 
groups. 

HMO's  throughout  the  years  have  been 
highly  successful  in  contairung  the  costs 
In  health  care  services  Ample  e'.ldence 
exists  to  confirm  this  fact.  Kai.ser  Perma- 
nente,  hospitakzes  its  enrcllees  about  half 
as  often  as  the  national  average  The 
Harvard  Community  Health  Plan  of  Bos- 
ton hospitalizes  patients  even  less.  The 
costs  savmg.-;  are  substantial:  nobodj-  ac- 
cuses these  plans  of  providing  poor  qual- 
ity medical  care. 

Because  I  believe  that  the  HMO  is  the 
best  idea  put  forth  so  far  for  containing 
costs   and    improving    the   organization 
and  the  deliver>-  of  health  care  ser^•ices, 
I  can  assure  my  colleagues  in  the  Senate 
that  the  Health  Subcommittee  will  vig- 
orously exercise  its  oversight  responsi- 
bilities with  respect  to  the  effective  im- 
plementation of  this  program.  Although 
the  conference  committee  report  author- 
izes a  self-contained  progran:.  I  can  as- 
sure the  Members  of  the  Senat<>  that  mv 
subcommittee  wilj  contmue  tc-  evaluate 
the  spirit   and  effectiveness  with  which 
the  legislation  is  implemented  There  wiU 
be  no  hesitancy  on  m,v  pan  to  offer  legis- 
lative   proposals    to    correct     problems 
which  may  develop  in  the  implementa- 
tion of  this  program  and  which  threaten 
to  impede  its  efTectiveness. 

Mr  President.  I  feel  privUeged  to  ha%-e 
had  a  part  m  uhe  development  of  this 
legislation,  which  I  feel  i?  an  early,  im- 
portant, and  constructive  step  in  the  im- 
provement of  health  sen-ices  for  the 
American  people.  I  know  the  Senate  win 
approve  the  conference  report,  and  look 
forward  to  its  enactment  into  law 

Mr  LONG.  Mr  President.  I  under- 
stand that  members  of  the  Health  Sub- 
committee of  the  Labor  and  Pubhc  Wel- 
fare Committee  are  mtere^ted  in  how 
the  medicare  and  medicaid  programs 
might  relate  to  the  Health  Maintenance 
Organization  quaht.v  assurance  pro- 
gram esublished  by  this  bill. 

It  is  m>'  understanding  that  the  office 
of  the  Assistant  Secretary  for  Health  will 
be  responsible  for  assuring  and  monitor- 
ing the  compliance  of   HMO  grantees 


42506 


CONGRESSIONAL  RECORD  —  SENATE 


with  the  quality  and  capability  stand- 
ards for  HMO  grantees  established  under 
the  bill. 

The  question  has  arisen  as  to  whether 
the  medicare  and  medicaid  programs 
should  continue  their  present  set  of 
quality  standards  for  HMO's  receiving 
Incentive  reimbursement  or  whether 
these  programs  might  utilize  the  quaUty 
and  capabihty  standards  in  this  bill  and 
accept  the  decisions  of  the  new  HMO 
quahty  unit  on  compliance  with  these 
standards. 

Both  the  ranking  minority  member  on 
the  Finance  Committee.  Senator  Bn»- 
NETT.  and  I  understand  that  these  quaUty 
and  capability  standards  are  reasonably 
comparable  in  scope  and  objective  to 
what  is  in  existing  law  for  medicare  and 
medicaid,  and  it  would  seem  reasonable 
to  us  to  avoid  duplicative  evaluation  by 
accepting  certification  of  quality  capabil- 
ity by  applymg  the  standards  in  this  bill 
In  lieu  of  separate  medicare  and  medic- 
aid standards.  Thus,  the  Government 
would  not  be  in  the  position  of  having 
two  separate  sets  of  standards. 

Similarly,  we  see  no  problem  with  the 
Social  Security  Administration  delegat- 
ing responsibihty  for  judging  compliance 
with  the  HMO  quality  and  capability 
standards  to  the  new  HMO  quality  unit 
in  the  Assistant  Secretary's  office.  This 
would  avoid  the  existence  of  two  sepa- 
rate bureaucracies  to  monitor  HMO  com- 
pliance with  quality  and  capability 
standards.  Social  security  would,  of 
course,  continue  to  be  responsible  for  the 
balance  of  the  decisions  with  respect  to 
eligibility  for  incentive  reimbursement. 

Of   course,    with    respect   to   judging 
whether  any  HMO  meets  the  quality  and 
capability  standards  for  incentive  reim- 
bursement under  medicare  and  medic- 
aid,   the   HMO   quality   assurance   unit 
would  have  to  conduct  on-site  evalua- 
tions   to   assure    that   compliance    with 
quality  and  captibihty  standards  exists 
In  actual  practice  as  well  as  on  paper. 
Additionally,  if  an  otheruise  approved 
HMO  meeting  all  appUcable  quality  and 
capability  standards  has  less  than  5,000 
enroUees.  social  security  would  not  ap- 
prove   incentive    reimbursement    under 
medicare  and  medicaid  unless  it  was  sat- 
isfied   that    appropriate    and   necessary 
actuarial  calculations  necessary  for  ar- 
,  riving  at  a  valid  payment  rate  and  other- 
wise required  under  the  law  can  be  made 
I  can  assure  the  floor  manager  that 
I  will  recommend  to  the  Finance  Com- 
mittee an  amendment  along  the  lines  I 
have  outlined   at   the  first   appropriate 
opportunity. 

Mr  KENNEDY.  I  greatly  appreciate 
recognition  on  the  part  of  the  chairman 
of  the  Senate  Finance  Committee  of  the 
work  done  by  the  health  subcommittee 
in  the  area  of  HMO's  I  believe  that  vour 
suggestion  that  the  Social  Security  Act 
be  amended  to  carry  on  to  the  deflnitlal 
and  organizational  requirements  In  S  14 
for  pumoses  of  eligibUlty  for  reimburse- 
ment as  an  HMO  under  8SA  programs 
make*;  a  great  deal  of  sense,  and  I  com- 


mend the  Chairman  for  his  statesman- 
like approach. 

For  my  part.  I  would  like  to  recognize 
the  leadership  in  the  field  of  quahty  of 
health  care  exhibited  by  Senators  Long, 
BsNNiTT  and  the  other  members  of  the 
Finance  Committee. 

I  believe  the  chairman's  recognition  of 
the  work  of  our  committee  in  the  health 
area  sets  an  important  precedent.  I  look 
forward  to  working  with  the  chairman 
and  members  of  the  Finance  Committee 
in  other  areas  of  mutual  interest  In  the 
future. 

Mr.  JAVITS.  Mr.  President.  I  yield  my- 
self 2  minutes. 

Mr.  President.  I  urge  my  colleagues  to 
adopt  the  Health  Maintenance  Organiza- 
tion Act  of  1973  conference  report  The 
conference  substitute  does  not  go  as  far 
as  the  Senate-passed  bill,  but  its  provi- 
sions are  a  reasonable  compromise.  It 
represents  an  important  contribution  in 
getting  action  on  the  indispensable  prob- 
lem of  supplying  to  aU  Americans  health 
services  m  an  efficient  and  rational  man- 
ner. This  IS  an  essential  element  of  an>- 
national  health  insurance  scheme  on 
which  I  have  introduced  appropriate 
legislation,  as  have  other  Senators  and 
the  admimstration  has  expressed  its  in- 
tention to  act. 

I  believe  the  conference  subsUtute  we 
are  considering  today  will  effectively 
carry  out  the  Presidents  recommenda- 
tions for  a  Federal  program  to  assist  in 
demonstratmg  the  feasibility  of  health 
maintenance  organizations  as  part  of  our 
pluraUstic  health-care  delivery  system. 
SUM  MAX  r  or  conrxKzvct  scBSTmrr* 

First.  Authorizes  $375  million  over  a 
5-year  period— rather  than  the  Senate 
passed  bill  authorization  of  $805  million 
over  a  3-year  period. 

Second.  Requires  a  comprehensive  set 
fn  ™5.^*f ^"^  services  to  be  provided  by 
aU  HMO  s  Including,  in  addltlcm  to  cura- 
tive medicine,  prevenUve  health  services 
as  well  as  outpatient  evaluaUve  and  crisis 
intervention  mental  health  services  and 
acute  care  and  referral  services  for  al- 
coholism and  drug  addiction.  Also 
HMOs  are  authorized  to  provide  addi- 
tional supplemental  health  services 

Third.  Preempts  restrictive  SUte  laws 
for  HMOs  who  quaUfy  for  assistance  un- 
der this  bill. 

Fourth.  Requires  employers  to  offer 
their  employees  the  choice  of  joining  an 
HMO  under  any  health  benefit  plan 

Fifth.  Requires  regulation  of  HMOs 
by  the  Secretary  of  HEW  and  for  the 
Secretary  and  the  Comptroller  General 
to  evaluate  the  ongoing  HMO  program. 

Sixth.  Requires  20  percent  of  appro- 
priated funds  to  be  spent  in  nonmetro- 
polltan  areas 

Seventh.  Requires  HEW  research  on 
quality  assurance  and  also  an  indepen- 
dent study  by  a  qualified  entity,  such  as 
the  Institute  of  Medicine  of  the  National 
Academy  of  Sciences. 

pmEZMPTTON    or    REsnimvE    <rrAiT    laws 

One  of  the  major  Issues  before  the 
conference  was  the  question  of  preemp- 
tion of  restrictive  State  laws.  The  Sen- 


December  19,  1973 


ate  bill  required  that  eligible  HMO's  be 
allowed  to  provide  health  care  services 
in  a  State  regardless  of  any  enumerated 
restrictive  provisions  in  SUte  laws.  There 
was  no  comparable  provlsicai  in  the 
House  bin. 

I  beheve  State  legal  restrictions  seri- 
ously impede  and  restrict  the  develop- 
ment of  HMOs  and  am  proud  to  have 
taken  a  leadership  role  in  the  fashion- 
ing of  the  provision  in  the  conference 
subsUtute  which  permits  any  HMO  for 
which  a  grant,  contract,  loan,  or  loan 
guarantee  was  provided  under  title  Xm 
or  which  is  a  quaUfled  health  mainte- 
nance organization  for  purposes  of  sec- 
tion 1310 — employees'  health  benefits 
plans— to  operate  in  a  State  regardless 
of  certain  restrictive-  provisions  in  a 
State's  laws. 

My  deep  concern  on  the  issue  and  the 
letter  from  Secretary  Weinberger  to  each 
of  the  conferees  which  stated  HEW  is 
"opposed  to  the  provision  in  the  Senate 
version  superseding  State  laws  which  In- 
terfere with  the  development  of  prepaid 
health  care  delivery  systems" — and  for 
which  no  substantive  explanation  was 
provided— prompted  me  to  write  to  the 
Honorable  Melvin  R.  Laird,  Counselor 
to  the  President  for  Domestic  Affairs, 
and  to  all  the  conferees  urging  support 
for  the  inclusion  of  a  preemption  of  re- 
strictive State  laws  provision.  I  ask 
unanimous  consent  that  the  full  text  of 
these  letters  and  their  enclosures  be  re- 
printed In  the  Record  at  the  conclusion 
of  my  remarks. 

The  PRESIDING  OFFICER.  Without 
objection.  It  is  so  ordered. 
'See  exhibit  1.) 

Mr.  JAVITS.  Mr.  President,  a  recentlj' 
completed  HEW-sponsored  health  serv- 
ices research  project,  which  examined 
State  legal  factors  related  to  HMO's  in- 
dicated the  need  for  such  a  provision.  It 
shows  that  the  State  legal  barriers  to 
HMO  formation  are  associated  with  an 
absence  of  HMOs  m  those  States  which 
have  such  barriers.  The  most  powerful 
legal  barriers  relate  to  required  physician 
control  and  the  requirement  that  par- 
ticipation in  any  one  HMO  in  a  State  be 
open  to  every  physician  in  that  State. 
This  latter  requirement,  of  course  re- 
moves the  ability  of  the  HMO  to  exercise 
the  necessary  discipline  over  excess  util- 
ization of  services.  In  the  States  where 
barriers  do  not  exist,  the  HMO  move- 
ment has  definitely  shown  substantial 
growth.  In  those  States  where  legal  bar- 
riers to  HMO's  are  mcst  stringent,  HMO's 
have  not  formed,  and  20  States  do  not 
have  a  single  HMO. 

The  need  to  preempt  State  legal  bar- 
riers Is  further  reinforced  by  that  anal- 
ysis, which  shows  that  the  States  that 
have  recently  passed  HMO  enabling  leg- 
islation have  varied  so  much  in  their  ap- 
proach that  thev  are  in  effect  creating  a 
new  set  of  legal  barriers,  particularly  to 
multlstate  or  regional  HMO's. 

I  did  not  understand  how  HEW  rea- 
sonably could  support  a  position  directly 
contrar\-  to  It.s  own  cited  study  conclu- 
sion The  HEW  position  wa.s  further 
challenged  by  recent  newspaper  stories 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


charging  that  the  reversal  of  prior  sup- 
port for  preemption  of  State  laws  is  in 
great  measure  due  to  AMA  lobbying,  past 
and  present. 

According  to  then  Secretary  of  HEW 
Richardson's  testimony,  and  I  quote: 

state  laws  often  hamper  HMO  develop- 
ment. 

Many  States  Impose  legal  restrictions  on 
HMO  development  which  wUl  have  to  be 
overcome,  such  as  licensure  of  health  profes- 
sionals and  sponsorship  of  HMOs.  Twenty- 
one  States  have  even  more  restrictive  laws.  In 
some  Instances,  requiring  HMOs  to  operate 
under  rules  applicable  to  Blue  Shield  plans  or 
Insurance  companies.  Since  HMO's  operate  In 
a  different  fashion  from  either  of  these,  such 
laws  make  It  difficult  for  HMO  s  to  organize. 


The  preemption  of  restrictive  State 
laws  was  clearly  our  responsibilitv  and 
the  conference  substitute  provides: 

■RESTRICTrVE  STATE   LAWS   AND   PRACTICKS 

"Sec.  1311.  (a)  In  the  case  of  any  entity — 
■  (1)  which  cannot  do  business  as  a  health 
maintenance  organization  In  a  State  In 
which  it  proposes  to  furnish  basic  and  sup- 
plemental health  services  because  that  State 
by  law.  regulation,  or  otherwise — 

"(A)  requires  as  a  condition  to  doing  busi- 
ness 111  that  State  that  a  medical  society  ap- 
prove the  ftu-nlshlng  of  services  by  the  en- 
tity. 

"(B)  requires  that  physicians  constitute 
all  or  a  percentage  of  its  governing  body. 

"(C)  requires  that  all  physicians  or  a  per- 
centage of  physicians  In  the  locale  participate 
or  be  permitted  to  participate  in  the  provi- 
sion of  services  for  the  entity,  or 

"(D)  requires  that  the  entity  meet  re- 
quirements for  Insurers  of  health  care  serv- 
ices doing  business  In  that  State  respecting 
Initial  capitalization  and  establishment  of 
flnancUl  reserves  against  Insolvency,  and 

"(2)  for  which  a  grant,  contract,  loan,  or 
loan  guarantee  was  made  under  this  title  or 
which  is  a  qualified  health  maintenance 
organization  for  purposes  of  section  1310  (re- 
lating to  employees'  health  beneflts  plans), 
such  requirements  shall  not  apply  to  that 
entity  so  as  to  prevent  It  from  operating  as 
a  health  maintenance  organization  In  ac- 
cordance with  section  1301. 

"(b)  No  State  may  establish  or  enforce  any 
law  which  presents  a  health  maintenance  or- 
ganization for  which  a  grant,  contract,  loan, 
or  loan  guarantee  was  made  under  this  tlUe 
or  which  is  a  qualified  health  maintenance 
organization  for  purposes  of  section  1310 
(relating  to  employees'  health  benefits 
plans),  from  soliciting  members  through  ad- 
vertising Its  services,  charges,  or  other  non- 
professional aspects  of  its  operation.  This 
subsection  does  not  authorize  any  advertis- 
ing which  Identifies,  refers  to,  or  makes  any 
qualitative  Judgment  concerning,  any  health 
professional  who  provides  services  for  a 
health  maintenance  organization" 

Mr.  President,  there  are  numerous  ex- 
cellent provisions  in  the  conference  sub- 
stitute, and  another  one  of  which  I  am 
particularly  proud  is  the  conferee's  deci- 
sion to  line  Item  among  the  basic  health 
services  a  mental  health  benefit. 

The  Senate  passed  bill  required  the 
provision  of  mental  health  services  for 
an  HMO  to  qualify  for  Federal  assist- 
ance. The  House  bill  onl>-  required  men- 
tal health  services  as  a  supplemental 
health  service.  The  conference  substitute 
adopted  the  House  concept  of  an  HMO 
providing  at  a  minimum  basic,  and  if  de- 
sired, supplemental,  health  services  to  its 


enroUees  but  mandated:  "short-term— 
not  to  exceed  20  visits — outpatient 
evaluative  and  crisis  intervention  men- 
tal health  services"  as  a  basic  health 
service. 

I  believe  this  is  an  essential  first  step  if 
we  are  to  break  down  the  inappropriate 
distinction  between  physical  and  mental 
health;  they  are  both  equally  important 
to  the  American  peoples'  health  care. 

I  am  not  doctrinaire  regarding  HMO's. 
This  new  approach  can  have  a  variety 
of  forms  and  names  and  sponsors,  for 
example,  when  I  introduced  my  national 
health  insurance  bill  in  the  91st  Con- 
gress, a  separate  title  authorized  the  es- 
tabUshment  of  local  comprehensive 
health  service  systems,  now  commonly 
termed  "HMO's." 

The  conference  substitute  adopts  the 
term  applied  to  all  of  these  units  by  the 
President,  HMO's— health  maintenance 
organizations. 

Whether  these  organizations  be  called 
HMO's,  local  comprehensive  health  serv- 
ices systems,  medical  care  foundations, 
or  prepaid  group  health  practices  this 
concept  has  two  essential  attributes  It 
brings  together  a  comprehensive  range 
of  medical  services  In  a  single  organiza- 
tion so  that  a  patient  iTassured  of  con- 
venient access  to  all  of  them.  And  It  pro- 
vides needed  services  for  a  fixed  contract 
fee,  which  is  paid  in  advance  by  all 
subscribers. 

I  believe— as  I  stated  when  I  Intro- 
duced the  admmistraUon's  bUl  this 
year— If  we  are  to  achieve  the  desired 
objective— to  rationalb.e  our  health  care 
system  to  benefit  aU  Americans— the  blU 
enacted  Into  law  must  more  strictly  de- 
fine the  criteria  for  HMO  establishment 
and  operation;  be  strengthened  to  assure 
a  more  meaningful  role  for  consumers  In 
HMO  operation;  and,  respond  more  ef- 
fectively to  the  problem  of  individual 
State  prohibitions  against  the  formula- 
tion of  HMO's.  These  essential  ingredi- 
ents are  aU  embodied  in  the  conference 
substitute 

I  urge  Its  adoption  to  stimulate  an 
innovative  medical  care  delivers  system. 
I  hope  that  the  Senate  will  approve 
the  conference  report,  and  I  vield  3  min- 
utes to  the  Senator  from  Colorado. 
ExHiBrr  1 

commtttkb  on 
Labor  and  Pcblic  Weltare 
Washington.  DC,  October  9. 1973. 
Dear  Mel:  Enclosed  Is  a  copy  of  my  recent 

tL^  „"c'i""^*^'"''  '***«'■  *°  "^«  Editor  of  The 
Wa«  Street  Journal  expressing  mv  support 
and  appreciation  for  their  encoura^mentof 
the  preemption  of  state  law  provisions  as  to 
HMO's  In  federal  legislation.  The  letter  ap- 
peared in  the  October  2  Issue  of  The  Watt 
iitreet  Journal. 

Further  support  of  the  need  to  retain  pr»- 
emptlon  of  state  law  provisions,  as  set  forth 
In  the  Senate  passed  HMO  bill  (S  14).  la 
provided  by  a  recenUy  completed  HEW  spon- 
sored Health  Services  Research  Project  That 
project  shows  that  the  state  legal  barriers 
to  HMO  formation  are  Msodatad  with  an 
absence  of  HMO's  In  thoae  sUtes  which  have 
such  barrlera.  The  most  powerful  legal  bar- 
riers relate  to  required  physician  control  and 
the   requirement   that   participation    In   any 


42507 

one  HMO  m  a  state  be  open  to  every  phy- 
sician in  that  SUte.  This  latter  requirement, 
of  course,  removes  the  abUlty  of  the  HMO 
to  exercise  the  necessary  discipline  over  ex- 
cess utUlzaUon  of  services.  In  the  states 
where  barriers  do  not  exist,  the  HMO  move- 
ment has  definitely  shown  substantial 
growth.  In  those  states  where  legal  barrier* 
to  HMO's  are  most  stringent,  HMO's  have  not 
formed,  and  twenty  states  do  not  have  a 
single  HMO. 

The  need  to  preempt  state  legal  barriers 
is  further  reinforced  by  the  enclosed  analysis 
entitled  "New  State  HMO  Laws"  which  shows 
that  the  ten  states  that  have  recently  passed 
HMO  enabling  legislation  have  varied  so 
much  in  their  approach  that  thev  are  in  ef- 
fect creating  a  new  set  oi  legal  barriers,  par- 
ticularly to  multi-state  or  regional  HMOs 

As  you  may  know,  the  first  meetUig  of  the 
Conferees  on  Federal  HMO  legislation  wlU 
take  place  on  Tuesday.  October  9.  I  believ» 
It  would  be  most  helpful  to  have  the  White 
House  thinking  on  the  Issue  of  the  preemp- 
tion of  state  law  provisions,  and  look  forward 
to  your  early  reply. 
With  best  wishes. 
Sincerely, 

Jacob  K.  Javtts. 


Committee   on 
Labor  and  Public  Welfare. 
Washington,  D.C.,  October  9  1973 
Dear  Colleacui;:    We  c&U  your  attenUon 
to  a  letter  igcelved  today  by  each  conferee 
from    Secretary    Weinberger    expressing'    the 
opposition  of  the  Department  of  Health  Ed- 
ucauon  and   Welfare   to  the   preemption  of 
SUte  law  provisions  as  to  HMO's  as  set  forth 
in  the  Senate  passed  HMO  bUl  (S   14) 

,^f®«''?°'^  °^  ^^^  ^^"^  ^  ""^^^  preemption 
ot  state  law  provisions,  as  set  forth  In  the 
Senate  passed  HMO  bUl  (S  141,15  provided 
ri  .^w'^*'^^''  completed  HEW  sponwM^d 
Health  Services  Research  Project  T^t^roj: 
ect  shows  that  the  state  legal  barriers  to  HMO 
formation  are  associated  with  an  absence  of 
HMO  s  in  those  states  which  have  such  bar- 
tn  "^n^*"  ^°*i  powerful  legal  barriers  reUte 
to  required  physician  control  and  the  re- 
quirement that  participation  in  any  one 
HMO  in  a  SUte  be  open  to  every  ph4cZ 
in  that  state.  This  latter  requirement  of 
course,  removes  the  abUlty  of  the  HMO  "o 
fm.'i^^,.""'  necessary  discipline  over  excels 
utUteatlon  of  services.  In  the  sUtes  where 
barriers  do  not  exUt.  the  HMO  movement 
has  definitely  shown  substantial  growth  In 
those  SUtes  where  legal  barriers  to  HMO's 
are  most  stringent.  HMO's  have  not  formed 
and  twenty  sUtes  do  not  have  a  single  HMo' 
The   need  to  preempt  sute  legal   barriers 

!f  »lt^l^" J*'*^""***  ">■  "-^^  enclosed  anaJvsla 
entlUed  New  SUte  HMO  laws"  which  shows 
that  the  ten  sUtes  that  have  recently  piL<«ed 
HMO  enablUig  legislation  have  virled  so 
much  In  their  approach  that  thev  are  ir.  ef- 
fect creating  a  new  set  of  legal  b^ers  par- 
ticularly to  multl-sute  or  reglo::al  HMO^s, 
We  do  not  understand  how  HEW  can  rea- 
sonably  support  a  position  dlrecUy  contrary 
to  Its  own  most  recent  and  definitive  HEW 
study  conclusions.  The  HEW  position  is  fur- 
ther challenged  by  recent  newspaper  stories 
charging  that  the  reversal  of  prior  support 
for  preemption  of  sute  la»^  u  In  great  meas- 
ure due  to  AMA  lobbying,  past  and  present 
A  copy  of  a  recent  arUcle  In  the  Cleveland 
Plain  Dealer  in  that  regard  Is  also  enclosed. 

We  find  this  partlci:lariv  distressing  and 
would  urge  the  conferees  to  reject  this  posi- 
tion. 

With  best  wishes. 

Etiward  M  Kennsbt 
J.\coB  K.  J.wrrs. 


42508 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  1973 


NEW  STATE  HMO  LAWS 


Stlt8S 


For  proAt- 
Rntrjctiva  Stitt  l*ws  prMtnpM      nooprofit 


Stat*  r«(ulatory 
dep4rtni«<nt(s) 


Quality  o(  can 

monttoring 

mandattd 


EnroflM 

(riavanca 

machintn 

naiidatM 


EnniliM 

policymaking 
participation 
mamlatad 


(Nonreportint)  Financial  solv«ncy 
raquiramanb 


AriZMia.. 
Cotorado. 


Iowa 

MiniMsoti. 


Soliatation Both  ponnlttod. 


Insurance;  hospital  and  medical do. 

service;  solicitadon;  corpont* 
medical  practice. 
do do. 


Insurance Nol. 

Insurance  and  healtli..  Yes. 


.do.. NonproW  only. 


Insurance  and  public     Yes.. 

beeltti. 
Health  and  insurance. .  Yes. 


Ne 

Yet... 


No.. 
Yes. 


Y«_ Ye»--M 

percent 


Nevada 

New  Jersey. 


Utali 

Florida  0972). 


Insurance;  solicitation;  corporate 
medical  practice. 

Insurance,  hospital  and  niedicai 

teivica;  lOlicitation;  corporals 

medical  practice. 
Insupnce,  so4icitstion,  corporate 

niMlical  practice  (partially). 
Insurance,  hospital  and  medical 

service;  jotkitation. 


Both  permitted Insurance  and  haalUi. .  Yes y«. 


-do. 


.do. 


enroHeee  on 
lover  mng 
board  after 
1st  year. 
Yii 


.do. 

.do. 


Pennsylvania  (1972). 


Insuranoc; 
service. 


hospital  and  medical 


fehnessee  (1971) Nonespacified. 


Nonprofit  (and 
noflhospitaO 
corporations 
only. 

Both  permitted. 


.  Insurance  and 
health    rehabilita- 
tive services. 
Insurance  and 
health. 


Insurance     Banking 
and  public  health. 


Yeo. 
Yes. 


Ysi- But  only 
by  implica- 
tion. 

Yes.  but  not 
specihcally 


Y«i. 
.  No.. 

No.. 


Y*s„. 

Vo»... 
Ho.... 


No. 


Yes— Majority 
o(  sutMcrib- 
ers  on  board 
s*  directors. 

No 


(50.000     bond,      plus      {100,000 

reserve. 
.  Bond    or    deposit    (amount    ui»- 
speafied) 

Do. 

Variety  of  standards  to  guide  re|u< 
lator  (amounts  unspecified). 


.  Variety  of  standards  to  guide  regu- 
lator (amounts  unsp«ufied)  bond 
or  deposit  (amount  unspecified). 

.  Variety  of  standards  to  guide  regu- 
lator (amounts  unspecified)  Ctth 
or  deposit  (amount  unspeclned). 
None  specified 

Adequate  working  capital. 
Reserves  (amount  unspecified). 

None  specified. 


AMA  Blocks  Procksss  en  Hualth  Ca«x 
(By  Rotj«rt  J.  Havel) 

Washington. — In  a  UtUe  noted  battle  be- 
tween tbe  HMO  and  tbe  AMA.  the  latter,  the 
American  Medical  Association,  appears  to  be 
the  victor. 

The  losers  axe  likely  to  be  millions  of  Amer- 
icans who  could  b«  provided  better  health 
care  at  costs  they  could  alTord  through 
HMOs— health  maintenance  organizations. 

HMOs  are  a  source  of  heated  debate  with- 
in the  medical  community.  The  AMA  sees 
federal  support  of  this  group  practice  of 
medicine  as  a  step  down  the  road  to  social- 
ized medicine.  Supporters  sees  HMOs  as  the 
medical  profession's  last  chance  at  seU-regu- 
latlon. 

In  the  course  of  the  wrangle  over  HMOs 
In  the  U.S.  Hotise,  advocates  bent  to  the  wUl 
of  the  .\MA.  So  did  President  Nixon.  Two 
and  a  half  years  ago,  he  was  hellbent  for 
building  HMOs  all  over  the  country.  Today, 
he  views  them  merely  as  "promising  mnova- 
tlons"  worthy  only  of  cautious  federal  ex- 
periment. 

Dvirlng  that  time  the  AMA's  political  arm 
has  contributed  millions  to  the  re-election  of 
Nixon  and  to  the  campaigns  of  sitting  sena- 
tors and  House  members 

True,  the  House  has  pa.<;sed  a  bill  In  sup- 
port of  HMOs  that  was  hailed  as  "landmark." 
It  was  hardly  that,  although  it  Is  the  only 
health  legislation  of  any  importance  that  will 
likely   emerge   from   Congress   this  year 

What  It  was  was  a  bill  to  provide  meager 
one-shot  federal  assistance  to  the  establish- 
ment of  health  maintenance  organizations 
(HMOs)  Even  now  It  faces  an  uncertain  fate. 
It  was  a  far  cry  from  a  similar  measure 
passed  by  the  Senate,  which  Itself  was  a  re- 
treat from  the  •5-bllllon  proposal  approved 
overwhelmingly  by  that  body  a  year  ago. 

The  House  bill  also  backtracked  from  the 
(Commerce  Committee's  original  proposal,  so 
much  so  that  the  American  Medical  Associa- 
tion (AMA)  dropped  Its  ferocious  and  long- 
standing opposition  in  the  House  to  HMO 
legislation. 

Health  mAlnten*nc«  organizations  are  pre- 
paid group  madlcal  practices  In  which  an 
enroUee,  for  a  fixed  sum.  is  provided  com- 
prehensive care.  Ideally,  an  HMO  Is  one-stop 
medical  care,  sort  of  a  medical  supermarket 
that  can  be  operated  non-profit  or  for  profit. 

It  would  eliminate  a  patient's  having  to 
go  to  one  end  of  town  for  a  bellyache. 

Group  practices  have  operated  successfully 


In  the  United  States  for  40  years.  An  exam- 
ple Is  the  Kaiser  program  In  Cleveland.  About 
7  million  are  enrolled  In  about  80  such  oper- 
ations. 

The  staff  doctors  are  paid  either  a  salary 
or  a  traditional  fee-for -service  basis. 

HMO  proponents,  who  seem  to  encompass 
Just  about  everybody  but  the  AMA,  cite  many 
advantages  to  both  doctor  and  patient. 
Through  better  organization  of  health  care 
delivery,  soaring  medical  costs  could  be  held 
down,  they  contend.  Those  costs  amounted 
to  some  t80  billion  last  year  or  about  $366 
for  every  man,  woman  and  child  In  the 
nation. 

For  the  doctor.  HMOs  relieve  him  of  the 
business  end  of  medical  practice.  They  alTord 
regular  hours,  give  him  set  vacations.  They 
can  encourage  doctors  to  go  Into  rural  or 
urban  areas  they  normally  would  shun,  be- 
cause they  would  be  guaranteed  an  Income. 
They  would  have  an  Incentive  for  efficiency, 
because  the  more  efficient  they  are  the  more 
money  they  can  make  and  the  more  exten- 
sive the  care  they  can  give  enroUees. 

The  enroUee  Is  relieved  of  the  worry  of  un- 
foreseen medical  costs.  Most  medical  costs 
are  covered  completely  by  the  prepayment, 
usually  with  the  exception  of  siich  things  as 
eyeglasses  and  routine  dental  care,  which 
are  offered  as  optlonaa  services. 

"Oroup  practice  prepayment  plans  by  their 
very  nature  enable  many  physicians  to  viae 
the  same  expensive  equipment,"  Jerry  Voor- 
hls,  head  of  Oroup  Health  Association  of 
America,  said  Ln  a  recent  speech  "They  have 
no  economic  Incentive  to  perform  needless 
operations,  and  they  can  organize  all  re- 
sources, human  and  physical.  In  an  efficient 
manner  . 

"(They)  have  as  their  main  objective  to 
keep  people  ambulatory  and  out  of  the  hos- 
pital." 

(VoorhU,  Incidentally,  was  the  first  poli- 
tician to  fall  before  Richard  M.  Nixon.  He 
was  a  California  congressman  when  Nixon 
beat  him  In  194«  ) 

AMA  opposes  federal  assistance  to  HMOs 
because  it  fears  they  are  a  step  toward  so- 
cialized medicine.  Sen.  WUUam  B.  Saxbe, 
R-O  .  who  Is  an  ardent  booster  of  HMOa,  sees 
them  as  the  exact  opposite. 

"The  opposition  of  most  doctors  to  HMO's 
Is  discouraging,"  Saxbe  said.  "HMOs  are  the 
greatest  protection  they  have  against  so- 
cialized •  •  •  the  tremendous  advantage  of 
HMOs.  They  permit  doctors  to  control  their 
own  practices  and  incomes.  They  can  bite 


off  as  much  as  they  want  in  HMOs.  In  so- 
cialized medicine  It's  Just  the  opposite.  The 
state  sets  the  hours  and  wages." 

An  AMA  spokesman  said  his  organization 
Is  "on  the  side  of  the  House  bill." 

"We  believe  In  pluralistic  medicine,"  he 
said.  "One  way  Is  the  HMO.  It's  all  right  to 
experiment  with  this  baby  to  see  If  It  will 
work.  But  we  don't  want  to  have  a  massive 
Infusion  of  federal  money  Into  HMC5e." 

In  today's  terms,  the  $805-mUllon  author- 
ized over  three  years  for  "this  baby"  Is  hardly 
a  massive  infusion — unless  It  Is  compared 
with  the  •340-mllllon  for  planning  and  start- 
up In  the  four-year  House  bill. 

During  House  discussion,  not  a  bad  thing 
was  said  about  HMOs.  Why  then  did  the 
House  take  such  a  timid  step? 

"Why  the  timidity?  Because  a  lot  of  guys 
get  money  from  the  AMA,"  said  Rep.  William 
R.  Roy.  D-Kam.,  principal  author  of  the 
House  bill.  Roy  is  an  obstetrician  turned 
politician  who  has  been  ostracized  by  the 
AMA. 

Nevertheless,  Roy  defends  the  House  bill  as 
"landmark"  because  It  Is  "the  first  federal 
commitment  to  bettter  organization  of  the 
health-care  delivery  system." 

"It's  not  great,"  he  admitted,  "but  it  Is  a 
commitment." 

He  believes  that  HMOs  will  provide  com- 
petition for  the  traditional  methcxl  of  medi- 
cal practice,  "and  then  everybody  else  will  do 
things  better." 

HMOs  get  their  biggest  boost  from  Nixon 
himself  In  1971,  when  he  oversold  them  some- 
what as  the  saviour  of  the  medical  system. 
Even  the  most  enthusiastic  supporters  of  the 
concept  say  Nixon  was  not  realistic  In  setting 
as  a  gotU  to  have  HMOs  available  to  90%  of 
the  population  by  1980. 

The  7  million  now  enrolled  In  group  prac- 
tices constitute  about  8%  of  the  fKipulatlon. 
Sen.  Edward  M.  Kennedy,  D-Mass..  author 
of  the  Senate  bill,  says  his  measure  might 
double  the  enrollment,  and  Dr.  Philip  Caper, 
a  Kennedy  aide,  estimates  that  at  the  maxi- 
mum only  30%  will  ever  be  members  of 
HMOs. 

To  realize  Nixon's  goal,  Roy  said,  would 
have  cost  as  much  as  913  billion.  NUon's 
commitment  to  HMOs  has  faded  along  with 
his  rhetoric  In  praise  of  them.  Now  he  sup- 
ports the  House  bill,  and  the  AMA  openly 
takes  credit  for  his  change  of  heart.  In  his 
1971  health  messaige.  Nixon  haUed  HMOs  and 
outlined  a  broad  plan  of  assistance  and  a 
determination  to  have  ECMO  contracts  pre- 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42509 


empt  "archaic"  sUte  laws  in  32  states  that 
prohibit  or  limit  KTo\:p  practice  of  medicine. 
His  enthustastu  was  UBdlmlnlshed  In  his 
1973  message,  when  he  cahed  the  HMO  con- 
cept a  "central  feature  of  my  uauoiial  health 
strategy  " 

The  AMA  admittedly  went  to  work  on 
Nixon  and  the  Hovis^  Commerce  CJommlttee, 
nine  members  of  which  received  AMA  cam- 
paign contributions  last  year. 

The  administrations  change  of  position 
was  dramatic,  in  1973,  the  administration 
planned  to  have  HMOs  available  to  90%  of 
the  population  In  1980.  In  his  State  of  the 
Union  message  to  Congress  last  March  1, 
what  he  himself  proposed  last  year  was  too 
costly  and  beyond  what  was  needed.  Prom 
Its  lofty  position  as  a  cornerstone  on  his 
national  health  strategy,  the  HMO  had 
tumbled  to  a  "promising  Innovation." 

Meanwhile,  every  provision  that  the  AMA 
found  distasteful  was  stricken  from  the 
House  bUl.  The  main  differences  In  the  House 
bUl  from  the  Senate  version  are  a  smaller 
required  benefits  package  to  qualify  for  fed- 
eral funds  as  an  HMO.  no  grants  to  HMOs 
for  care  of  the  poor  or  persons  with  high 
medical  Insurance  risks,  no  preemption  of 
state  laws,  which.  In  effect,  give  medlcak-so- 
cletles  veto  power  over  HMOs,  and  no  gui- 
lty control  commission. 

Dr.  Caper  described  the  House  bUl  as 
"fairly  Innocuous." 

"The  AMA  succeeded  In  getting  a  bUl  It 
could  live  with,"  he  said,  "it's  nonsense  that 
we  need  another  demonstration  program  The 
House  bUl  is  1609c  staU  as  far  as  I'm  con- 
cerned." 

Like  Roy,  Caper  does  not  find  It  desirable 
to  have  HMOs  the  "only  option,"  but  he  be- 
lieves, also,  that  "competition  will  Improve 
all  health  care." 

Saxbe  srfld  the  House  bUI  U  not  sufficient 
to  give  HMOs  a  chance  to  prove  what  they 
can  do.  He  support*  grants  tat  the  poor  and 
for  high  medical  risks  because  he  believes 
HMOs  should  be  avaUable  "not  Just  to  those 
who  can  plunk  their  money  down  "  He  also 
supports  preemption  of  state  laws,  "because 
Its  necessary  to  have  the  program  aoDll- 
cable  nationwide." 

"What  makes  a  state  law  so  sacred?"  he 
Mked  citing  the  Occupational  Safety  and 
Health  Act,  which  permits  federal  standards 
to  override  state  law  "  If  they  can  come  In 
and  teU  a  guy  what  kind  of  ladder  he  can 
climb  on.  they  can  tell  the  states  what  kind 
or  health  care  can  be  permitted " 

Nobody  wants  to  make  HMO  the  only 
method  of  health-care  delivery.  But  If  HMOs 
are^so  good   why  can't  they  go  It  on  their 

Justin  McCarthy  of  Oroup  Health  Associ- 
ation of  America  thinks  HMOs  ought  to  stand 
on  their  own  feet  but  they  need  initial  seed 
money.  Restrictive  state  laws  have  inhibited 
the  growth  of  HMOs,  he  said.  whUe  grant- 
ing the  medical  profession,  under  Blue  Cross- 
olies"  l«8«*l»tlon,    "provider   mo^- 

^^'^■^7>.  concedes  that  state  restrictions 
are  not  without  reason,  "because  If  HMOs  are 

"°?Jf*  "P,^K»^t  "'"  •'"y  ^  rtP  People  off." 

can'^.^Xtrr"g1t\^  i^J^^^^.^^Z 

Z^r^^^.X.^'^  ^^-^»«  P-P'«  '^  a 

thl^,^,*^  designed  to  meet  the  needs  of 
the  middle-Income  group  of  America."  Mc- 
Carthy said  "The  poor  and  the  rich  get 
taken  care  of  now."  i         " 

But  they  are  expensive  to  start  up.  Mc- 
Carthy estimates  the  cost  of  a  community- 
wide  plan  to  be  as  much  as  «5  million 

mu^t'o^^^T™""'^!  RToup-practlce  plans 
must  provide  new  facilities,  recruit  profes- 

Sktf f  '"''  ""*"  '•^^'"  '^^  -""^oA 
^?u^  T'  ^  ^'"""^  P"*"'*:  support 
achieve  rapid  enroUment  of  subscriber  and 
in  all  probability  incur  operating  losses  in 


their  early  years."  Voorhls  said.  "If  the 
growth  of  plans  assuming  full  responsibility 
for  the  health  of  large  numbers  of  people  Is 
to  take  place  at  the  rate  hoped  for,  sub- 
stantial fAondlng  from  the  federal  government 
would  appear  to  be  a  necessity." 

If  anything  emerges  from  the  House-Sen- 
ate conference.  It  Is  likely  to  be  a  measure 
closely  resembling  the  House  bill. 

"I  have  a  strong  feeling  we  will  reach 
agreement  rather  quickly."  Roy  said.  "And  It 
will  be  something  Nixon  will  sign." 

"There's  not  enough  money  In  the  House 
bUl  to  give  HMOs  a  fair  test."  McCarthy  said. 
"And  the  mechanics  for  a  trtily  objective 
evaluation  are  not  there. 

Mr.  DOMTNTCK.  Mr  Presiiient,  I 
thank  the  Senator  from  New  York. 

I  congratulate  him  and  the  Senator 
from  Mas.sachu.setts  for  bringing  out  this 
conference  report  I  led  quite  a  f5ght  on 
the  Senate  floor  before.  I  think  that  the 
Senator  from  Massachusetts  and  the 
Senator  from  New  York  have  arrived  at 
a  compromise  here  which  indicates  good 
flexibility  on  their  part. 

I  am  pleased  to  support  the  conference 
report  on  S.  14,  the  Health  Maintenance 
Organization  Act  of  1973,  and  hope  the 
President  will  sign  it. 

My  colleagues  wlU  recall  that  I  voted 
against  S.  14  when  It  was  before  the  Sen- 
ate. Let  me  just  take  a  moment  to  ex- 
plain briefly  why  I  am  able  to  support  it 
now. 

Prom  the  beginning  I  have  favored 
Federal  assistance  for  the  development 
of  health  maintenance  organizations  In 
order  to  provide  alternative  methods  of 
health  care  delivery.  I  did  not  support 
S.  14  as  it  was  reporter!  by  the  Committee 
on  Labor  and  Public  Welfare  this  year 
for  three  basic  reasons:  First.  I  thought 
the  authorization  levels— $1.5  billion 
over  a  3-year  period— were  unrealis- 
tlcally  high. 

Second,   the  bill  violated  a  principle 
which  I  consider  to  be  of  critical  Im- 
portance—that  HMO.';   developed   with 
Federal  assl.stance  be  economically  viable 
after  they  become  operational.  By  Im- 
posing unrealistic  requL-ements  such  as 
an  overly  broad  mar.  da  lory  benefit  pack- 
age, the  bill  in  fart  a.s.sured  that  no  HMO 
receiving  Federal  assistance  could  ever 
be    compeUtive    with    other    forms    of 
health  care  deUvery  unless  it  continued 
to  receive  massive  Pedera]  subsidies  The 
bUl   conceded  this  fact   b,v  authorizing 
»567  million  to  subsidize  the  operating 
costs  of  HMOs  during  the  first  3  vears. 
Third,  by  reser\-ing  mo.st  of  the  au- 
thorized funds  for  HMO  s  meeting  a  re- 
strictive definition— closed   panel    pre- 
paid group  practice— I  thouKhl  the  bill 
would  hinder,  rather  than  stimulate  in- 
novation in  the  development  of  better 
methods  of  health  care  delivery. 

I  wrote  minority  views  outlining  my 
concerns  when  the  bill  was  reported  out 
of  committee,  and  later  offered  floor 
amendments  which  were  addressed  to 
these  Issues  One  of  those  amendments 
was  a  substitute  containing  no  long- 
term  operating  subsidies,  and  with  a 
total  3-year  authorization  of  $385  mil- 
lion. 

Although  the  authorization  level  in 
the  bill  was  scaled  down  from  $1.5  bU- 
llon  to  $805  million  before  It  passed  the 
Senate.  It  still  contained  the  basic  de- 


fects I  had  outlined.  Accordingly,  I  voted 
against  it. 

Prior  to  the  vote,  I  made  the  follow- 
ing statement : 

I  am  not  against  HMO's.  I  think  that  they 
have  considerable  promise  for  Improving 
health  care  delivery  in  this  country,  and 
they  are  entitled  to  Federal  assistance.  But 
this  bUl  Is  not  really  designed  to  do  that. 
A  Uttle  over  half  of  Its  authorizations,  as 
amended,  goes  for  development  of  HMO's. 
The  rest  goes  for  a  number  of  things  which 
are  essentially  irrelevant  to  development  of 
HMO's.  In  short,  this  bill  Is  unrealistic  both 
In  terms  of  cost  and  scope.  I  Intend  to  vote 
against  it,  and  hope  that  a  realistic  bill 
which  I  can  support  wlU  emerge  from  the 
House-Senate  Conference  on  the  two  bills 
after  the  House  acts. 

Portimately,  the  conference  report  on 
S.  14  is  more  realistic.  Its  total  author- 
ization over  5  years  is  $375  million;  it 
contains  no  ojperatlng  subsidies;  and  It 
contains  a  more  realistic  benefit  p£w:k- 
age.  Although  this  conference  report  is 
a  great  improvement  over  the  Senate- 
passed  bill,  and  I  hope  the  President  will 
sign  It,  I  have  some  reservation  as  to 
whether  HMO's  developed  with  this  as- 
sistance will  be  competitive.  The  range 
of  services  which  each  HMO  must  pro- 
vide Is  narrower  than  imder  the  Senate- 
passed  bill.  But  manj'  health  providers — 
notably  Kaiser-Permanente,  the  proto- 
type for  HMO's,  and  the  one  with  the 
most  experience  in  this  field — believes 
the  benefit  package  remains  too  In- 
flexible, and  may  cause  HMO's  to  be  de- 
pendent on  contiriuing  Federal  subsidies. 

I  hope  this  will  not  be  the  case.  Hope- 
fully, the  Secretary  of  HEW  will  be  able 
to  avoid  that  possibility  by  implementing 
this  legislation  with  maximum  emphasis 
on  the  need  for  HMO's  developed  under 
this  legislation  to  be  able  to  stand  on 
their  own  after  they  become  operational. 

Mr.  MAGNUSON.  Mr.  President,  will 
the  Senator  yield? 

Mr.  JAVITS.  I  yield  1  minute  to  the 
Senator  from  Washington  (Mr.  Mackxt- 

SON). 

Mr.  MAGNTJSON.  Mr.  President,  I 
think  this  is  a  fine  bill.  It  was  a  fine 
conference.  It  now  gets  down  to  another 
matter.  I  would  like  to  get  at  least  some 
indication  as  to  how  much  we  have  in 
here  for  authorization. 

Mr.  KENNEDY.  $375  miUicMi  for  5 
years. 

Mr  MAGNUSON.  They  are  different 
programs? 

Mr.  KENNEDY.  The  Senator  is  cor- 
rect. The  administration  requested  $60 
million  for  the  current  year.  That  rate 
would  project  to  $300  million  over  5 
years.  In  the  case  of  this  program,  I 
would  hope  It  would  be  one  of  the  few 
programs  where  the  full  authorization  is 
appropriated. 

Mr  MAGNUSON  There  a.-e  authori- 
zations for  different  functions  ur.der  the 
bill,  and  we  will  be  able  to  expand.  How- 
ever, I  thought  the  record  ought  to  show 
what  we  may  have  t-c>  consider 

Mr.  JAVITS.  The  $300  million  Is  not 
only  within  the  ball  park  but  the  extra 
$75  million  Is  a  loan  feature 

Mr,  MAGNUSON.  The  loan  feature  Is 
a  part  of  the  measure? 

Mr.  KENNEDY.  The  Senator  Is  cor- 
rect. 


t2.-in 


CONGRESSIONAL  RECORD  — SBNATB 


Mr.  CRANSTON  Mr.  President,  the 
conference  report  before  us  today  Is  a 
major  legislative  step  toward  en- 
couraging the  development  of  systems 
capable  of  providing  comprehensive 
health  care  of  high  quality  in  an  eflBclent 
and  economical  manner. 

INT«ODDCnON 

During  the  last  2  years  the  appropri- 
ate health  subcommittees  of  each  House 
have  held  extensive  hearings  on  the  need 
for  health  maintenance  organizations 
and  on  the  effects  of  the  establishment 
of  such  systems  on  existing  medical  re- 
sources and  the  community's  ability  to 
respond  to  the  individual  ijatlent's  needs. 
Considerable  testimony  was  heard  and 
evidence  presented  to  the  committees 
which  has  been  taken  into  acount  in  the 
development  of  this  legislation. 

The  members  of  the  two  committees 
have  been  meeting  in  conference  since 
October.    There    were    substantial    dif- 
ferences  in   the   bills    passed    by   each 
House  of  Ccmgress.  and  I  believe  it  is  due 
to  the  outstanding  abilities  of  the  chair- 
man    of    the    Senate    conferees.     Mr. 
Ktnnxdy.  and  of  the  House  Conferees, 
Mr.    Staggers,    ably    assisted    by    Mr. 
Rogers,  that  the  conferees  were  able  to 
reach    an    agreement    that    represents 
fairly  the  concepts  underlying  each  bUl. 
I  believe  we  have  succeeded  in  coming 
up   with  a   workable   proposal   to   offer 
support  at  a  realistic  level  to  medical 
groups  needing  initial  assistance  In  de- 
veloping programs  which  can  offer  a  full 
range  of  comprehensive  health  services 
to  enrollees  on  a  prepaid  basis.  The  ex- 
perience of  prepaid  group  medical  prac- 
tices in  the  past  in  providing  care  has 
shown  that  these  programs  have  been 
able  to  provide  full  health  care  to  en- 
rollees at  substantial  savings,  due  to  the 
efficiencies  in  utilization  of  staff  and  fa- 
cilities, and  an  emphasis  on  primary  care 
provided  on  an  ambulatory  basis,  tend- 
encies which  are  encouraged  by  prepaid 
group  practices. 

Included  in  the  conference  report.  I 
am  particularly  gratified  to  note,  are 
several  amendments  I  had  offered  in 
committee  to  the  legislation  when  it  was 
under  consideration  in  the  last  Congress 
as  S  3327.  These  amendments  were  part 
of  S.  14  as  passed  by  the  Senate  last  May. 
These  suggestions.  Mr.  President,  were 
to: 

First,  expand  the  consumer  and  other 
health  disciplines  role  in  quality  care  as- 
surances systems: 

Second,  expand  the  consumer  role  in 
the  health  maintenance  organization; 

Third,  increase  emphasis  on  the  par- 
ticipation of  all  health  disciplines  in  the 
management  of  the  system  and  in  the 
provision  of  health  services: 

Fourth,  include  greater  specificity  as  to 
services  included  in  preventive  health 
services: 

Fifth,  utilize  the  skills  of  clinical 
pharmacists  to  the  greatest  possible 
extent:  and 

Sixth,  an  amendment  I  cosponsored 
with  Senator  Kennedy,  to  authorize  the 
Secretary  to  contract  with  health  main- 
tenance organizations  to  provide  health 
services  to  native  American  Indians  and 
to  domestic  migrant  and  seasonal  farm- 
workers. 


December  19,  1973 


EXTANsioN  or  THr  coNscicn  aoL«  kin  gxxat- 

KX  P4XTICIPAT10N  OF  4JX  HEALTH  DISCIPViNXa 
IN    QTJAUTT    ASSUIANCX   KKVITW    8TSTXMS 

I  have  felt  that  the  consumer  and  ail 
the  health  disciplines  have  an  important 
contribution  to  make  in  the  quahty  re- 
view procedures  adopted  by  an  HMO. 

Mr.  President,  this  concept  Is  clearly 
recognized  In  the  conference  report  pro- 
visions by  which  each  HMO  must  have 
organizational  arrangements  for  ongoing 
quality  assurance  programs  providing  re- 
view by  physicians  as  well  as  other  health 
professionals  of  the  process  followed  in 
the  provision  of  health  services 

Of  particular  value.  I  think,  is  a  pro- 
vision in  the  conference  report  that  the 
Secretary  wiU  submit  an  annual  report 
on  the  quaUty  of  health  care  in  the 
United  States,  the  operation  of  quality 
assurance  programs,  and  advances  made 
concerning  the  effectiveness,  administra- 
tion, and  enforcement  of  quality  assur- 
ance programs.  I  believe  the  annual  sub- 
mission of  such  reports  will  act  as  a 
strong  incentive  to  improving  the  quahty 
of  care  and  broadening  the  perspective 
in  which  such  quality  assurance  pro- 
grams are  viewed  to  Include  the  Interests 
of  the  consumer  as  well  as  the  concerns 
of  all  health  care  providers  and  profes- 
sionals. 

I  am  particularly  pleased  with  lan- 
(fuage  included  in  the  conference  report 
and  reinforced  in  the  Johit  Explanatory 
Statement  that  in  the  independent  study 
related  to  quahty  health  assurance  to  be 
contracted  for  by  the  Secretary  is  speci- 
fied to  Include,  among  the  charges,  the 
study  of  means  for  assessing  the  respon- 
siveness of  such  care  to  the  needs  and 
percepUons  of  the  consumers  of  such 
care,  and  the  study  of  methods  for  as- 
sessing the  quality  of  health  services 
from  the  point  of  view  of  consumers  of 
.such  services 

Mr.  President.  I  strongly  feel  that 
there  is  a  need  for  the  quality  assurance 
system  to  direct  its  inquiries  to  the  over- 
all provision  of  health  care  and  not  to 
limit  such  inquiries  to  the  quahtv  of 
medical  techniques  or  procedures 
uUlized  The  provision  of  comprehensive 
health  care  at  a  level  acceptable  to  the 
patient  must  also  take  into  considera- 
tion nonmedical  factors  such  as  location 
ambience,  and  accessibility  of  service' 
among  others. 

These  factors  frequently  are  foremost 
in  determinhig  the  patient's  utilization 
of  services  and  will  bear  a  direct  rela- 
tionship to  his  full  utilization  of  com- 
prehensive preventive  services. 

In  these  specific  areas.  Mr.  President 
the  consumer  as  well  as  other  health 
care  personnel  such  as  the  nurse  and 
the  50clal  worker,  for  instance,  can 
make  substanUal  contributions  to 
evaluation  of  the  responsiveness  of  the 
organizaUon  to  the  patient's  needs. 

INCREASED  EMPHASIS  OF  THE  PARTICIPATION  OP 
CONSUMEM  AND  ALI,  HEALTH  DISCIPLINES  IN 
MANAGEMENT  OF  HMO'S 

It  is  my  very  strongly  held  view  that 
we  should  establish  a  clear  Federal  rec- 
ognition of  the  fact  that  providing  health 
care  is  not  the  monopoly  of  the  medical 
profession,  and  that  other  health  care 
providers  as  well  as  the  consumer  of 


services  should  have  a  voice  in  decision- 
making. 

Mr  President.  I  am  grateful  the  con- 
ferees recognized  that  consumers  must 
have  a  meaningful  role  hi  the  formula- 
tion and  implementation  of  pohcy  con- 
cerning the  manner  in  which  health  care 
services  are  delivered,  and  tliat  the 
conlerence  report  does  require  that  con- 
sumers have  a  subsUnUal  role  in  the 
HMO  policymaking  body,  as  I  and  other 
members  of  the  Senate  committee  had 
urged  The  conference  report  also  re- 
quires each  HMO  to  have  meaningful 
procedures  for  resolving  grievances  be- 
tween the  HMO  and  its  members 

The  conferees  fully  recognized  that 
all  health  dLsclphnes  have  a  significant 
role  to  play  hi  the  provision  of  health 
care  and  in  the  decisions  made  on  how 
such  care  should  be  provided. 

The  conference  report  provides,  as  the 
Senate  bill  liad  provided  as  a  result  of 
changes  I  had  suggested  in  Commit- 
tee, that  a  medical  group  is  defined  as  a 
partnership  or  association  of  health 
professionals  and  other  Ucensed  health 
professionals— Including  dentists,  op- 
tometrists, and  podiatrists.  In  the  early 
version  of  this  legislation,  a  medical 
group  had  consisted  only  of  phvsicians 
and  I  believe  adopUon  of  the  language 
Included  m  the  conference  report  signi- 
fies an  Important  step  forward  in  recog- 
nizing that  the  practice  of  medicine  is 
carried  out  by  a  partnership  of  various 
disciplines. 

During  conference,  the  Senate  ac- 
cepted House  language  which  permitted 
an  HMO  to  provide  a  physician  service 
included  as  a  basic  health  service 
through  a  dentist,  optometrist,  or 
podiatrist— as  the  case  may  be— Ucensed 
to  provide  such  service,  if  permissible 
under  applicable  State  law.  I  fully  sup- 
port this  clarification  of  intent  shice  I 
beUeve  much  of  the  doctor  shortage  and 
geographic  maldistribuUon  can  be  met 
through  greater  utilization  of  highly 
trained  specialized  health  professionals, 
leaving  the  physician  more  time  to  pro- 
vide the  services  which  he  alone  is 
trained  to  provide.  I  was  very  pleased 
that  the  conferees  accepted  clarifying 
language  I  suggested  in  the  Statement 
of  Managers  that  the  services  of  a 
psychologist  may  be  used  by  HMOs  In 
provldhig  mental  health  services  in  'ac- 
cordance with  the  applicable  licensing 
laws  of  the  respective  States. 

I  am  also  delighted  with  the  empha- 
sis placed  in  the  conference  report  on 
the  need  for  the  development  of  new 
types  of  professionals  such  as  the  nurse 
practiUoner  specialists,  and  new  typeiSkof 
paraprofesslonals  such  as  the  physician's 
assistant  and  dental  therapist,  and  feel 
that  the  provisions  encouraging  the  use 
of  team  training  in  ail  education  pro- 
grams, hicludlng  conthiuing  education 
programs,  will  substantially  hasten  this 
development.  I  was  pleased  to  participate 
in  drafting  these  provisions  when  the 
legislation  was  first  under  consideration 
in  the  Senate. 

CREATFa    SPICIrlCITT    AS    TO    PREVENTIVE 
HEALTH    SERVICES 

Mr.  President,  when  legislation  to  sup- 
port HMOs  was  first  Introduced,  as  a  co- 
spottsor  I  mentioned  that  I  would  seek 


December  19,  1973 


CGxNGRESSlONAL  RECORD  — SENATE 


42511 


to  amend  the  term  preventive  health 
services  to  clarify  that  voluntary  family 
planning  services,  counseling,  and  Infer- 
tility services  as  well  as  nutrition  coun- 
seling and  education  are  Included  as 
basic  preventive  health  services.  The 
Senate  bill  as  reported  and  the  siccom- 
panylng  committee  report  reflect  this 
view.  I  am  delighted  that  many  of  these 
concepts  are  retained  in  the  conference 
report. 

PTTU,    tmUEATION    OF    THE    CLINICAL 
PHASMACIST    IN    THE    HMO 

Mr.  President,  the  effect  of  adverse 
drug  reactions  on  the  recovery  of  the 
patient,  and  the  possibility  of  long-term 
injury  or  disability,  are  extremely  seri- 
ous considerations  in  the  provision  of 
health  care.  Recent  surveys  have  Indi- 
cated that  the  incidence  of  adverse  drug 
reactions  is  substantial  It  Is  estimated 
by  Initial  studies  that  from  3  to  6  percent 
of  hospital  admissions  are  due  to  adverse 
drug  reactions,  and  that  a  minimum  of 
15  to  18  percent  of  patients,  hospital- 
wide,  suffer  an  adverse  reaction  sub- 
sequent to  their  admission.  On  the  as- 
sumption that  these  adverse  reactions  on 
the  average  double  the  patient's  hos- 
pital stay,  the  costs  involved  are  over- 
whelming. 

In  1970,  there  were  478  million  hospital 
days  recorded  in  the  United  States:  one- 
seventh  of  this  amounts  to  approximately 
70  million  patient  days,  and  assuming  a 
room  charge  of  $85  per  day,  works  out  to 
around  $6  billion  in  direct  cost.  Aboirt  80 
percent  of  adverse  drug  reactions  are 
preventable.  Thus  80  percent  of  this  estii 
mated  cost — or  $4.8  billion — could  have 
been  saved,  had  a  system  been  in  oper- 
ation for  insuring  a  rational  drug  ther- 
apy for  each  of  the  patients. 

Hopefully,  Mr.  President,  these  inci- 
dents can  be  reduced  in  HMO's  by  pro- 
visions which  I  proposed  and  which  were 
included  in  the  conference  report  au- 
thorizing HMO's,  as  part  of  the  basic 
benefit  package  in  connection  with  pre- 
scription of  drugs,  and  as  part  of  the 
supplemental  benefit  package  in  connec- 
tion with  the  provision  of  drugs,  to  main- 
tain, review,  and  evaluate  a  drug-use 
profile  of  each  HMO  member  receiving 
such  services,  to  evaluate  patterns  of 
drug  utilization  to  assure  optimum  drug 
therapy,  and  provide  for  the  Instruction 
of  HMO  members  and  of  health  profes- 
sionals in  the  use  of  prescription  and 
nonprescription  drugs. 

The  joint  explanatory  statement  ac- 
companying the  conference  report  urged 
that,  in  carrying  out  such  programs, 
clinical  pharmacists  should  be  used  to 
the  maximum  feasible  extent. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  appropriate  excerpt  from 
the  statement  with  respect  to  this  pro- 
vision be  Included  at  this  point  in  my 
statement: 

The  conferees  agreed  that  to  achieve  the 
prime  goal  of  an  HMO — to  provide  high  qual- 
ity care  most  efficiently  with  the  greatest  cost 
effectiveness — the  high  Incidence  of  adverse 
drug  reactions  and  Interactions  encountered 
In  the  practice  of  medicine  should  be  avoided. 
Experience  hr.«  shown  that  utilization  of 
a  clinical  pharmacist — to  establish  patterns 
of  patient  drug  utilization,  to  mahitaln  such 
patterns  under  surveillance,  and  to  provide 
evaluation  and  review  as  well  as  maintain 


a  drug-use  profile  for  mdlvldual  patients — 
has  proven  highly  effective  In  reducing  the 
Incidence  of  such  adverse  reactions  and  In- 
teractions. The  conferees  did  not  wish  to  dic- 
tate the  staffing  patterns  of  each  HMO  and 
for  that  reason  deleted  language  in  the 
Senate  bill  which  would  have  required  the 
utilization  of  a  clinical  pharmacist  as  part 
of  the  basic  benefits  package.  The  conferees, 
however,  are  cognizant  of  the  important  role 
the  clinical  pharmacist  can  play  In  encour- 
aging the  development  of  rational  drug 
therapy  programs  for  HMO's,  and  for  educat- 
ing patients  and  professionals  in  drug  use 
and  abuse,  and  urge  that  such  professionals 
should  be  used  to  the  maximum  feasible 
extent. 

Mr.  President,  Uke  so  much  of  modem 
technology  today's  therapeutic  agents 
are  two-edged  swords.  The  possibility  of 
drug-drug  Interactions,  drug  hs^persen- 
sltlvlty.  and  patient  noncompliance  with 
prescribed  regimens,  makes  it  manda- 
lorj-  that  every  effort  be  made  to  assure 
optimum  drug  usage  In  HMO's. 

In  order  to  optimize  the  probability 
that  the  appropriate  and  most  efficacious 
prescription  drug  be  used  In  each  Indi- 
vidual case,  a  patient  drug  record  should 
be  kept  for  each  recipient. 

I  am  advised,  Mr.  President,  that  the 
patient  drug  record  should  include,  but 
not  be  limited  to — 

First,   patients   name,   age,   sex.    and 
weight: 
Second,  phys-iclans'  name  or  names; 
Third,  documented  and  suspected  al- 
lergies— both  food  and  drug: 
Fourth,  drug  intolerances; 
Fifth,    medication    history — Including 
over-the-counter  drugs  Insofar  as  pos- 
sible; 

Sixth,    history   of   exposure   to    toxic 
chemicals; 
Seventh,  renal  and  hepatic  status; 
Eighth,  diagnosis  and  medical  prob- 
lems; 

Ninth,  an  ongoing  record  of  pre- 
scribed medication,  including  name  of 
drug,  strength,  dosage  interval,  the 
amount  prescribed,  the  dates  filled  and 
refilled,  and  the  Intended  purpose:  and 
Tenth,  notation  on  laboratory  test  per- 
formed. 

Although  much  of  this  Information  Is 
available  in  scattered  form.  Mr.  Presi- 
dent, in  other  patient  documents,  hav- 
ing it  In  a  concise  patient  drug  record 
will  be  of  great  assistance  for  retro- 
spective review  and  prospective  prescrib- 
ing of  drug  therapy,  which  would  permit 
continuous  surveillance,  evaluation,  and 
review  of  patient  drug  utilization. 

Mr.  President,  with  the  increasing 
number  of  new  medications  and  their 
growing  complexity,  potential  drug  use 
side  effects  and  interactions  have  become 
a  matter  of  substantial  concern  to  the 
medical  and  patient  communities.  Mak- 
ing available  to  the  staff  of  the  HMO  the 
services  of  a  clinical  pharmacist,  spe- 
cially trained  in  all  the  nuances  of  drug 
use  should  assist  in  minimizing  medica- 
tion errors  and  preventable  adverse  drug 
reactions  and  Interactions. 

In  addition,  Mr.  President,  the  clinical 
pharmacist  can  play  a  major  role  in  the 
dissemination  of  important  drug  use  and 
abuse  information,  both  to  the  HMO  staff 
and  to  the  enrollees,  and  play  an  active 
role  in  the  health  education  programs  of 


the  HMC.  Certainly,  the  clinical  phar- 
macist in  each  HMO  should  oversee  and 
control  the  quality  of  drug  products  uti- 
lized by  enrollees  of  the  HMO  and  par- 
ticipate In  comparative  studies  of  use  and 
abuse  records  with  other  HMO's  and  oth- 
er health  care  facihties. 

COMPREHENSIVE   HEALTH   SERVICES   FOR   INDIANS 
AND   MIGRANT   WORKERS 

I  am  pleased  also  that  the  conference 
report  includes  provision  for  the  Secre- 
tary of  Health,  Education,  and  Welfare 
to  contract  with  health  maintenance  or- 
ganizations for  comprehensive  health 
services  for  native  Americans  and  for 
domestic  migrant  and  seasonal  farm- 
workers. 

I  believe  it  is  only  equitable,  Mr.  Pres- 
ident, that  these  two  population  groups 
for  whom  the  Nation  has  a  statutory  re- 
sponsibility to  provide  health  care  should 
have  the  opportunity  to  participate  In  the 
most  up  to  date  and  effective  means  of 
providing  care.  In  many  cases,  individ- 
uals from  these  severely  disadvantaged 
groups  do  not  reside  In  areas  accessible 
to  the  federally  funded  special  programs 
such  as  the  hospitals  of  the  Indian 
Health  Service  or  the  migrant  health 
clinics. 

Several  Indian  tribes  have  sought  to 
provide  contract  care,  but  because  spe- 
cific statutory  authority  does  not  now 
exist,  the  Indian  Health  Service  has  not 
been  able  to  offer  this  option  to  its  ben- 
eficiaries. 

Mr.  President,  migrant  health  clinics 
also  may  wish  to  offer  this  option  and 
this  provision  would  insure  it  could  be 
exercised.  S.  740.  currently  before  the 
Senate  Labor  and  Public  Welfare  Com- 
mittee extending  and  amending  the  Mi- 
grant Health  Act,  also  includes  a  pro- 
vision authorizing  the  Secretary  to  pay 
premiums  for  a  prepaid  health  care  plan 
eUgible  for  Federal  assistance  where  the 
chnics  or  special  projects  request,  and  a 
similar  provision  was  adopted  by  the 
Senate  last  year  when  S.  3762  was  passed 
and  sent  on  to  the  House.  Unfortunately 
no  final  action  was  taken  on  this  legisla- 
tion in  the  last  Congress. 

CONCLUSION 

Mr.  President.  S.  14  as  reported  from 
conference  is  a  product  of  much  study  by 
the  members  of  the  committees.  The  bill 
we  developed  Is  an  exceUent  one  and  one 
which  I  believe  can  lead  to  a  vast  Im- 
provement hi  the  abmty  of  the  Nation  s 
medical  communities  to  respond  to  the 
needs  of  its  citizens. 

I  would  like  at  this  time  to  express  my 
admiration  for  the  verj-  effective  staff 
work  provided  the  members  of  the  com- 
mittee by  Phil  Caper,  Jay  Cutler.  Lee 
Hyde.  Steve  Lawton.  and  Bert  Levhie 
ably  assisted  by  the  House  and  Senate 
legislative  counsels.  They  devoted  a  great 
deal  of  time  and  effort  to  carrying  out 
the  views  expressed  by  the  conferees. 

I  urge  the  full  support  of  the  Senate 
for  the  blB  as  reported  from  conference 

Mr.  KENNEDY.  Mr.  President,  I  yield 
back  the  remainder  of  m.v  time. 

Mr.  JAVrrs.  Mr.  President,  I  yield 
back  the  remainder  of  my  time. 

The  PRESIDING  OFFICER.  All  time 
^as  been  yielded  back.  The  question  is 
on  agreeing  to  the  conference  reports. 
On  this  question  the  yeas  and  nays  have 


42512 


CONGRESSIONAL  RECORD  — SENATE 


December  19,  197S 


been  ordered,  and  the  clerk  will  call  the 
roll. 

The  legislative  clerk  called  the  roll. 

Mr.  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Idaho  (Mr. 
CmracH).  the  Senator  from  Mississippi 
(Mr,  Eastland  > .  the  Senator  from  Arkan- 
sas (Mr.  PtJLBRiGHT*.  the  Senator  from 
Alaska  (Mr.  Gravil),  and  the  Senator 
from  South  Carolina  (Mr.  Holldigs)  are 
necessarily  absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  (Mr.  BENNm*,  the 
Senator  from  Tennessee  (Mr.  Brock), 
the  Senator  from  Massachusetts  (Mr. 
Brooke  >,  the  Senator  from  Idaho  (Mr. 
McCujRE),  the  Senators  from  Ohio  (Mr. 
Saxbe  and  Mr.  Taft).  and  the  Senator 
from  Texas  (Mr.  Tower)  are  necessarily 
absent. 

The  Senator  from  New  Hampshire 
(Mr.  Cotton)  is  absent  because  of  ill- 
ness in  his  family. 

Also,  the  Senator  from  Oklahoma  <Mr. 
Bellmon).  the  Senator  from  Nebraska 
I  Mr  Curtis),  and  the  Senator  from 
Arizona  ( Mr.  Goldwater  )  are  necessarily 
absent. 

If  present  and  voting,  the  Senator 
from  Ohio  (Mr.  Taft)  and  the  Senator 
from  Texas  (Mr.  Towers  would  each 
vot€  "yea." 

The  result  was  announced — yeas  83. 
nays  1,  as  follows: 


Caper  and  Mr.  Jay  Cutler  were  particu- 
larly helpful.  Mr.  Lee  Goldman.  Mr.  John 

Hunnlcutt,  Mr.  John  Steinberg.  Ms. 
Louise  Rlngwalt.  Mr.  Angus  King,  Mr. 
Chuck  Woodruff,  and  Mr.  Dan  Murray 
deserve  great  credit. 

Ms.  Janet  Kline  of  the  Library  of  Con- 
gress also  contributed  greatly. 

On  the  House  side.  I  kniiw  Drs.  Lee 
Hyde  and  Brian  Biles,  and  Mr.  Steve 
Lawton.  Mr.  Spence  Johnson,  and  Mr. 
Bert  Levlne  also  deserve  credit. 

Mr.  David  Meade  of  the  House  legis- 
lative counsels  office  did  his  usual  fine 
Job. 


[No.  605  Leg.] 

TEAS— 83 

Abouresk 

Oumey 

Miinkle 

Alkea 

Hansen 

Nelnnn 

Allen 

Hart 

Nunn 

Baker 

Hartke 

Pack  wood 

B&rUeU 

Ha«keU 

Pastore 

Bayh 

Hatfield 

Pearson 

BeaU 

Hathaway 

PeU 

Bentsen 

Helms 

Percy 

Bible 

Hruaka 

Proxmtre 

Blden 

Huddleston 

Randolph 

Buckley 

Huiihes 

Rlblcoff 

Burdlck 

Humphrey 

Roth 

Brrd, 

Inouye 

Schwetker 

Harry  P. 

Jr.    Jackson 

Scott.  H\i?h 

Byrtl.  Bobert  C.  Javlts 

Scott, 

C&nnoa 

Johnston 

William  L 

Caae 

Kennedy 

Sparkman 

CbUes 

Long 

Stairord 

Clark 

Magnuson 

Stennla 

Cook 

Mansfield 

Stevens 

Cranaton 

Mathlas 

Stevenson 

Dole 

McCleUan 

Symington 

Domenlcl 

McOee 

Thurmond 

Domlnick 

McOoyem 

Tunney 

Eagleton 

Mclntyre 

Welcker 

Ervln 

MetcalT 

Williams 

Pannln 

Mondale 

Toxing 

Pona; 

Montoys 

GrtiBn 

Moaa 

NAYS— 1 

Talmadge 

NOT  VOTINO— 16 

Bellmon 

Curtis 

Holllngs 

Bennett 

Eastland 

McClure 

Brock 

Pulbrlght 

Saxbe 

Brooke 

Ooldwater 

Taft 

c:ijurch 

Oravel 

Tower 

Cotton 

So  the  conference  report  was  agreed  to 
Mr.  KENNEDY.  Mr.  President.  I  would 
like  to  recognize  the  hard  work  expended 
by  my  colleagues  in  the  Senate  and  In 
the  House  Interstate  and  Foreign  Com- 
merce Committee  resulting  In  the  pas- 
sage of  this  conference  report. 

In  addition,  the  st&n  of  the  Senate 
Labor  and  House  Commerce  Committees 
has  worked  long  and  hard,  and  deserve 
great  credit  for  the  quality  of  this  legis- 
lation. On  the  Senate  side.  Dr    Philip 


PRODUCTION  OP  PETROLEUM  FROM 
NAVAL  PETROLEUM  RESERVE 
NO.   1    (ELK  HILLS) 

The  PRESIDING  OFFICER  (Mr. 
Harry  P.  Byrd,  Jr.).  Under  the  previous 
order,  the  Chair  lays  before  the  Senate. 
Senate  Joint  Resolution  176.  which  the 
clerk  will  state. 

The  second  assistant  legislative  clerk 
read  as  follows : 

A  Joint  resolution  (3J.  Res.  176)  to  au- 
thorize the  production  of  petroleum  from 
Nav&l  Petroleum  Reeerve  Numbered  1 

The  PRESIDING  OFFICER.  Without 
objection,  the  Senate  will  proceed  to  Its 
consideration. 

The  Senate  proceeded  to  consider  the 
Joint  resolution,  which  had  been  reported 
from  the  Committee  on  Armed  Services 
with  an  amendment  to  strike  out  the 
preamble  and  all  after  the  resolving 
clause  and  Insert : 

That  this  Joint  resolution  may  be  cited  as 
the  "Naval  Petroleum  Reserves  Defense  Pro- 
duction AuthorlzaUoa  Act  of  1973 ". 

ITXDINGS 

Sec.  a.  The  Congress  hereby  determines 
that — 

(1)  nationwide  shortages  of  crude  oil. 
residual  fuel  oU.  and  reflned  petroleum  prod- 
ucts caused  by  Inadequate  domestic  produc- 
tion and  the  unavailability  of  Imports  sulll- 
clent  to  satisfy  domestic  demand,  now  exist; 

(2)  disruptions  In  the  avaUabUlty  of  Im- 
ported energy  supplies.  parUcularly  crude  oU 
and  petroleum  products,  pose  a  serious  risk 
to  nauonal  security,  economic  weU-belng, 
and  health  and  welfare  of  the  American 
people; 

(3)  the  result  of  domestic  petroleum 
shortages  and  the  reduced  avaUabUlty  of 
petroleiun  to  the  Armed  Forces  of  the  United 
States  from  sources  outside  of  the  United 
States  has  been  to  deny  to  the  Armed  Forces 
petroleum  essential  to  the  national  defense: 

(4)  the  Secretary  of  the  Navy  has  found 
that  the  production  of  Naval  Petroleum  Re- 
serve Numbered  1  is  needed  for  naUonal 
defense  and  this  finding  has  been  approved 
by  the  President  of  the  United  States; 

(5)  the  state  jf  development  of  Naval 
Petroleum  Reserve  Numbered  1  is  not  ade- 
quate for  the  production  of  petroleum  In 
the  volume  required  for  national  defense- 
and 

(6)  Naval  Petroleum  Reserves  Numbered 
1  and  4  have  the  potential  to  contribute 
slgnlflcanUy  to  national  defense  petroleum 
requirements,  but  due  to  Inadequate  ex- 
ploration the  fviU  extent  of  that  potential  Is 
undetermined. 

vxrtrostai 

Sec.  3.  The  purpose  of  this  Joint  resolu- 
tion is  to: 

( 1 )  concur  In  the  finding  of  the  Secretary 
of  the  Navy  that  the  production  of  Naval 
Petroleum  Reserve  Numbered  1  is  needed  for 
national  defense; 


(2)  grant  the  authorlaatlon  of  the  Om- 
gress  for  the  production  «uJd  developiuent 
of  Naval  Petroleum  Reserve  Numbered  i  as 
Is  required  by  chapter  641  of  tlUe  10,  United 
SUtes  Code,  and  direct  that  producUon  be 
commenced  as  provided  for  in  this  Joint 
resolution;  and 

(3)  authorize  .ind  direct  the  exploration 
ot  Naval  Petroleum  Reserves  Numbered  1 
and  4. 

ADTHOEITT    FOB    PRODUCTION 

Sec.  4.  The  production  of  petroleum  from 
Naval  Petroleum  Reserve  Numbered  1  is  here- 
by authorized  and  directed  In  order  to  in- 
sure that  the  needs  of  national  defense  are 
met.  Production  from  such  reserve  shaU 
not  exceed  one  hundred  and  sixty  thousand 
barrels  of  crude  oU  per  day  and  shall  be 
conducted  In  accordance  with  sound  engi- 
neering and  economic  principles.  Such  pro- 
duction (to  the  extent  In  excess  of  that 
otherwise  authorized  by  chapter  641  of  title 
10,  United  States  Code)  Is  to  commence.  If 
practicable,  within  forty-five  days  after  the 
date  of  enactment  of  this  Joint  resolution, 
and  to  continue  for  a  period  of  not  more 
than  one  year  after  the  date  on  whlcti  pro- 
duction commences. 

DtspoarnoN  of  p«odoctton 
Sec.    5.    Any    disposition    of    the    United 
States  share  of  production  authorized  by  this 
Joint    resolution    shall    be    in    accord    with 
chapter  641  of  title  10,  United  SUtes  Code, 
and  shall   be  conducted  In  a  manner  so  as' 
to  Insure  that  an  amount  of  petroleum  equal 
in  value  to  the  crude  oU  supplied  from  Naval 
Petroleum  Reserve  Numbered  1  shall  be  made 
available  to  the  .\rmed  Forces  of  the  United 
States  for  defense  purposes.  Any  dlspoelUon 
shall  be  effected  by  competitive  bid,  and  shall 
be   so   arranged    as   to   give   full    and    equal 
opportunity  for  acquisition  of  the  petroleum 
by  all  Interested  companies,  including  majOT 
and  Independent  oU  refineries  alike, 
DisposrnoN  of  receipts 
Sec.  6.  There  U  hereby  established  In  the 
Etepartment  of  the  Treasury  a  Naval  Petrole- 
um  Reserve  Account.  During  the  period  of 
Increased  production  authorized  by  this  Joint 
resolution  or  as  may  be  hereafter  authorized, 
there  shall  be  transferred  or  credited  to  such 
account  (1)   any  or  all  proceeds  realized  un- 
der  chapter   641    of   title    10.    United   States 
Code,    from    the    dlspoaltlon   of    the    United 
States  share  of  petroleum  or  reflned  products, 
oU    and    gas    products    produced.    Including 
royalty  products,   and   the  net   proceeds.  If 
any,  realized  from  exchanges  within  the  De- 
partment of  Defense  of  reflned  products  ac- 
cnilng  to  the  benefit  of  any  of  the  military 
departmente  of  the  Department  of  Defense 
as  the  result  of  such  exchanges,  and  (2)  such 
funds  as  may  be  appropriated  by  the  Con- 
gress for  the  Naval   Petroleum  Reserve  Ac- 
count,  to  remain   available  until   expended. 
Poinds  transferred,  credited,  or  appropriated 
to  such  fund  shall  be  available  for  expendi- 
ture only  to  the  extent  provided  from  time  to 
time  In  appropriation  Acts. 

EXPl-OKATTON 

Sec.  7.  The  Secretary  of  the  Navv  shaU 
conduct  programs  of  exploraUon  for  oU  and 
gas  on  Naval  Petroleum  Reserves  Numbered 
1  and  4  In  order  to  determine  the  extent  of 
oil  and  gas  resources  therein.  These  pro- 
grams shall  be  completed— 

( 1 )  within  five  years  from  the  date  of  en- 
actment of  this  Joint  resolution  in  the  ca«e 
of  Naval  Petroleum  Reserve  Numbered  1,  and 

(2)  within  ten  years  from  the  date  of  en- 
actment of  this  Joint  resolution  In  the  caso 
of  Naval  Petroleum  Reserve  Numbered  4. 
The  Secretary  of  the  Navy  shall  make  annual 
reports  to  the  (Committees  on  Armed  Services 
of  the  Senate  and  the  House  of  Represenu- 
tlves  regarding  the  progress,  results,  and 
findings  of  these  exploration  programs,  and 
shall  Include  In  such  reports  such  recom- 
mendations as  he  deems  appropriate  regso^- 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42513 


Ing  development,  production,  sale,  exchange, 
transportation,  or  storage  of  oil  and/c»'  nat- 
ural gas  found  to  exist  on  the  naval  petrole- 
um reserves. 

APPaOPEIATIONS 

Sec.  8.  (a)  For  the  exploration  of  Naval 
Petroleum  Reserve  Numbered  1,  as  required 
by  this  Joint  resolution,  there  is  hereby  au- 
thorized to  be  appropriated  to  the  Secretary 
of  the  Navy  the  sum  of  $4,000,0(XI  for  the 
fiscal  year  ending  June  30,  1974,  to  remain 
available  until  expended. 

(b)  For  the  exploration  of  Naval  Petro- 
leum Reserve  Numbered  4,  as  required  by 
this  Joint  resolution,  there  Is  authorized  to 
be  appropriated  to  the  Secretary  of  the  Navy 
the  sum  of  $7,500,000  for  the  fiscal  year  end- 
ing June  30,  1974,  to  remain  available  until 
expended. 

(c)  For  the  production  of  Naval  Petroleum 
Reserve  Numbered  1,  as  required  by  this 
Joint  resolution,  there  Is  hereby  authorized 
to  be  appropriated  to  the  Secretary  of  the 
Navy  the  sum  of  $47,500, CKX)  for  the  fiscal 
year  ending  June  30,  1974,  for  necessary  de- 
velopment of  the  reserve,  and  the  sum  of 
$13,000,000  for  operating  exF>en8es  Incurred 
In  producing  from  the  reserve.  Funds  ap- 
propriated under  this  subsection  shall  re- 
main available  until  expended. 

(d)  For  the  exploration  of  Naval  Petro- 
leum Reserve  Numbered  1,  as  required  by 
this  Joint  resolution,  there  Is  authorized  to 
be  appropriated  to  the  Secretary  of  the  Navy 
from  the  Naval  Petroleum  Reserve  Account 
established  by  this  Joint  resolution  such 
additional  sums  as  are  necessary  to  achieve 
the  purposes  of  this  Joint  resolution  for  the 
fiscal  year  ending  June  30,  1975.  and  for  the 
three  succeeding  fiscal   years, 

(e)  For  the  exploration  of  Naval  Petroleum 
Reserve  Numbered  4,  as  required  by  this 
Joint  resolution,  there  are  authorized  to  be 
appropriated  to  the  Secretary  of  the  Navy 
from  the  Naval  Petroleum  Reserve  Account 
established  by  this  Joint  resolution  such  ad- 
ditional sums  as  swe  necessary  to  achieve  the 
purposes  of  this  Joint  resolution  for  the  fiscal 
year  ending  June  30,  1975,  and  for  the  nine 
succeeding  fiscal  years. 

REPOET  or  THE   ATTORf^ET   GENERAL 

Sec,  9.  Notwithstanding  any  other  provi- 
sion of  this  Joint  resolution,  no  funds  ap- 
propriated pursuant  to  section  8(c)  may  be 
expended  and  no  authority  contained  In  sec- 
tions 4  and  5  may  be  exercised  until  (1)  the 
Attorney  Oeneral  has  prepared  and  sub- 
mitted to  the  Committees  on  Armed  Serv- 
ices of  the  Senate  and  the  House  of  Repre- 
sentatives a  repcw^  describing  the  rights,  du- 
ties, and  obligations  of  the  United  States  and 
any  other  party  or  parties  having  any  con- 
tractual or  other  Interests  In  Naval  Petro- 
leum Reserve  Numbered  1,  and  (2)  fourteen 
days  have  eU^sed  after  the  submission  of 
such  report  to  such  committees. 
DKriNmoN 

Sec,  10,  As  used  In  this  Joint  resoluUon  the 
term  "petroleum"  means  petroleum,  crude 
oU,  and  associated  gas  and  other  hydrocar- 
bons, 

SEPARABIUTT 

Sec.  11.  If  any  provision  of  this  Joint  reso- 
lution or  the  applicability  thereof  is  held 
Invalid,  the  remainder  of  this  Joint  resolution 
shall  not  be  affected  thereby. 

Mr.  CANNON.  Mr.  President,  parlla- 
mentanr'  inquiry. 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  Nevada  will  state  It. 

Mr,  CANNON.  What  Is  the  time  situa- 
tion? 

The  PRESIDING  OFFICER.  The 
Chair  is  advised  that  It  is  20  minutes,  to 
be  equaUy  divided. 

Mr  CANNON  I  thank  the  Chair.  Mr. 
President,  I  yield  mysell  5  minutes. 


The  PRESIDINC7  OFFICER  The  Sen- 
ator from  Nevada  Is  recognized  for  5 
minutes. 

Mr.  CANNON.  Mr.  President,  the 
Senate  Joint  Resolution  No.  176,  now 
before  the  Senate  for  consideration, 
would  authorize  and  direct  the  produc- 
tion of,  and  the  development  of.  Naval 
Petroleum  Reserve  No.  1,  which  is  better 
known  as  the  Elk  mils  Naval  Petroleum 
Reserve,  located  in  Kern  County,  Calif, 
It  would  also  provide  for  the  e.xploration 
of  Naval  Petroleum  Reserve  No.  4,  which 
Is  located  on  the  Arctic  North  Slope  of 
Alaska. 

As  a  matter  of  background,  the  Elk 
Hills  reserve  was  established  on  Septem- 
ber 2,  1912,  by  Executive  order  issued  by 
President  Taft.  The  Umits  of  the  reserve 
were  enlarged  to  Include  the  balance  of 
the  then  known  geological  structure  of 
the  Elk  Hills  Field  by  Executive  order 
signed  by  President  Roosevelt  on  Octo- 
ber 15, 1942. 

The  Standard  OU  Company  of  Cali- 
fornia— Socal — is  the  only  remaining 
owTier  of  lands  Inside  the  reserve.  As  a 
result  of  this  ownership,  they  are 
partners  with  the  United  States  in  the 
reserve,  and  are  entitled  to  approxi- 
mately 22  percent  of  the  production  at 
this  time. 

Following  the  enlargement  of  the  re- 
serve In  1942,  a  unit  plan  contract  was 
entered  into  by  the  Navy  and  Socal  for 
the  cooperative  exploration,  develop- 
ment, and  operation  of  all  lands  In  the 
reserve.  Socal,  under  separate  contract 
with  the  Navy,  operates  the  reserve  at 
the  present  time. 

This  relationship  has  given  rise  to  two 
allegations,  which  I  will  address  later. 

By  law,  the  operation  and  use  of  the 
naval  petroleum  reserve  is  limited  to: 
First,  the  production,  conservation, 
maintenance,  and  testing  of  these  re- 
serves; and  second,  the  production  of 
petroleum  whenever,  and  to  the  extent 
that  the  Secretary  of  the  Navy,  with  the 
approval  of  the  President  of  the  United 
States,  finds  that  it  is  needed  for  national 
defense,  and  the  production  is  authorized 
by  a  Joint  resolution  of  Congress. 

It  is  under  this  latter  provision  that 
this  resolution  is  before  the  Senate  today 
for  consideration. 

The  Secretary  of  the  Naw  has  made 
a  determination  that  the  Armed  Services 
of  the  United  States  are  unable  to  pro- 
cure on  the  open  market  necessary  pe- 
troleum products  to  maintain  the  desired 
readiness  posture,  and  the  production  of 
Naval  Petroleum  Reserve  No,  1  is  needed 
for  national  defense. 

The  need  for  this  is  quite  simple.  The 
requirements  of  the  Department  of  De- 
fense, at  an  austere  sustaining  level,  ap- 
proximates 625,000  barrels  of  petroleum 
per  day.  About  half  of  these  needs,  or 
aroimd  300.000  barrels  per  day,  prior  to 
the  sanctions  by  the  Arab  countrie,'=,  come 
from  overseas  sources.  .Approximately  80 
percent  of  this  procurement  came  either 
directly,  or  indirectly,  from  Arab  sources. 
This  off-shore  procurement  must  now 
come  from  domestic  sources.  This,  of 
course,  reduced  domestic  supplies  ac- 
cordingly. The  production  from  the  Elk 
Hills  reserve  Is  no  panacea,  but  will  ma- 


terially aid  in  satisfying  the  needs  of 
national  defense. 

The  joint  resolution  proposed  by  the 
administration,  which  was  introduced 
in  the  Senate  on  December  4.  1973,  after 
close  scrutiny  by  the  committee,  left  sev- 
eral things  to  be  desired.  Accordingly, 
the  committee,  after  careful  review  of 
the  matter,  proposes  an  amendment  in 
the  nature  of  a  substitute.  The  commit- 
tee amendment  acconaplishes  all  the 
original  proposal  would  a'^complish.  but 
incorporates  certain  safeguards  that  y 
seem  to  be  essential.  Moreover.  It  wllly^ 
authorize  the  funds  for.  and  directs  the 
immediate  development  of,  and  the  pro- 
duction, of  resen'e  No.  1,  and  the  ex- 
ploration of  reserves  No.  1  and  No,  4. 

Before  briefly  pointing  out  the  salient 
features  of  the  committee  amendment, 
I  wish  to  emphasize  that  it  has  the  ap- 
proval of  the  administration,  has  been 
approved  by  the  Department  of  Justice 
insofar  as  the  legal  aspects  are  con- 
cerned, and  Is  agreeable  to  the  Standard 
Oil  Co.  of  California,  which,  as  I  have 
indicated,  has  a  vested  interest  in  the 
reserve. 

Now,  as  to  the  differences  between 
the  administration  proposal  and  the 
amendment  offered  by  the  committee, 
the  original  proposal  would  authorize 
production  from  reserve  No.  1  at  the 
maximum  efficient  rate,  for  the  peri(5d 
of  1  year. 

This  means  the  highest  rate  of  produc- 
tion that  can  be  sustained  over  a  long 
period  of  time,  without  reservoir  damage. 
This  is  a  dubious  term  in  relation  to  the 
total  potential  of  this  reserve.  The  pro- 
ductive capacity  can  conceivably  be 
greatly  increased  by  further  exploration. 
Accordingly,  the  committee  amendment 
will  limit  production  to  160,000  barrels 
per  day  for  a  1  year  period.  It  will  fur- 
ther provide  the  funds  to  reach  this 
sustained  production  within  60  days  after 
the  approval  of  the  resolution. 

The  original  proposal  provides  for  a 
closed  cycle  funding  arrangement  by  the 
establishment  of  the  Naval  Petroleum 
Reserve  Accoimt  on  the  books  of  the 
Treasurj'.  Into  such  an  accoimt  would  go 
the  receipts  from  the  sale  of  production, 
and  such  other  funds  as  may  be  made 
available  to  the  Na\T  for  further  devel- 
opment of  the  reserve.-;  The  fund  would 
be  administered  by  the  Secretary  of  the 
NavT-  This,  of  course,  would  free  the  re- 
serve from  having  to  compete  for  appro- 
priations with  other  Defer^se  programs, 
but  would  limit  funding  for  the  reserve 
primarily  to  receipts  generated  f.'-om  the 
sale  of  the  production  therefrom.  The 
proposal,  however,  contained  no  appro- 
priation authorization  for  exploration, 
development,  or  production,  other  than 
the  fund.  This  not  only  could  result  in  a 
delay  in  the  commencement  of  opera- 
tions, but  also  effectively  relinquishes 
Congressional  control  of  the  appropria- 
tion process. 

Mr.  President,  the  committee  amend- 
ment corrects  these  obvious  defects.  It 
sets  a  time  schedule  for  explorrition  of 
Reserves  1  and  4,  and  authorizes  the  ap- 
propriation of  $72  million  to  expedite  the 
implementation  of  this  resolution  The 
use  of  the.se  fund.-:  L^  clearly  delineated  In 
section  8  of  the  resolution,  and  has  the 


42514 


CONGRESSIONAL  RECORD  — SENATE 


approval  of  the  Office  of  Management 
and  Budget.  Furthermore,  the  supple- 
mental appropriation  bill  was  amended 
in  the  Senate  to  include  these  funds, 
contingent  upon  the  approval  of  this 
resolution.  However,  the  conferees 
agreed  only  to  provide  $7  5  million  for  the 
exploration  of  Reserve  No.  4  at  this  time. 
I  understand,  however,  that  the  House  of 
Representatives  this  afternoon  rejected 
the  conferees  report  on  the  Supplemental 
Appropriation  bill  and  instructed  the 
House  conferees  to  accept  the  Senate 
amendment  of  $72  million. 

It  is  the  responsibility  of  the  Congress 
to  protect  the  public  interest,  as  well  as 
to  provide  for  the  national  defense  It  is 
the  Navy  s  responsibility  to  protect  the 
nx\'3d  petroleum  reserves  and  oil  shale 
reserves,  from  unnecessary-  depletion. 
The  resolution  now  before  the  Senate  has 
been  drafted  to  reflect  and  fulfill  these 
respon-sibilities. 

Earlier.    Mr.    President.    I    mentioned 
that    the    contractual    relationship    be- 
tween  Standard  Oil  of  California,  and 
the  Na\T.  has  given  rise  to  certain  alie- 
gations.  First,  it  has  been  alleged  that  if 
production  of  the  reserve  No.  1  is  under- 
taken. Stand  ird  Oil  will  possibly  receive 
a  windfall  profit.  The  committee  inquired 
into  this  quite  thoroughly  and  found  no 
way  that  this  could  happen.  As  part  own- 
er of  the  reserve,  they  can  receive  only 
their  legitimate  proportion  of  the  pro- 
duction— oil  they  now  rightfully  own — 
which   as  I  have  indicated,  is  around  22 
percent  of  the  production    Second,  the 
question  arose  as  to  whether  Standard 
OU  would  consider  production  under  the 
resolution  a  violation  of  the  unit  plan 
contract,  under  which  the  lands  in  the 
reserve  are  now  operated    A  spokesman 
of  Sundard  Oil  testified  to  the  contrary- 
Furthermore,  they  have  so  indicated  in 
writing,  and  this  letter  has  Been  made  a 
part  of  the  committee  report 

I  may  say  that  the  Department  of  Jus- 
tice concurs  in  that  finding,  that  this 
would  not  violate  the  terms  of  the  agree- 
ment. 

Now.  finally.  Mr.  President.  I  want  to 
say  a  few  words  about  the  coaservation 
practices  of  the  Department  of  Defense. 
The  committee  wanted  to  assure  itself 
that  the  Department  was  taking  an  ag- 
gressive and  productive  approach  to  the 
conservation  problem. 

Although  Defense  requirements  for 
petroleum  are  relatively  small  in  com- 
parison to  the  total  requirements  of  the 
Un-ted  States,  being  about  3.7  percent, 
it  is.  nonetheless,  highly  visible.  This  is 
particularly  true  when  It  became  neces- 
sary iast  November  to  invoke  the  pro- 
visions of  the  Defense  Production  Act  to 
provide  for  these  requirements. 

I  am  pleased  to  report  that  the  De- 
partment of  Defense  has  initiated  a 
vigorous  conservation  program,  which 
appears  to  be  paying  substantial  returns. 
.\ccordlng  to  data  made  available,  a  re- 
duction of  approximately  28  percent  has 
been  made  in  the  petroleum  consumption 
of  aircraft,  ships,  and  mobile  ground 
equipment  operations,  during  the  first 
quarter  of  fl.v^al  year  1974.  Their 
weighted  reduction  In  the  use  of  all  types 
of  energy  approximates  22  percent  A  De- 
fense energy  task  group  has  been  es- 


December  19,  1973 


tablished  to  recommend  actions  it  might 
take,  both  short  and  long  range,  to  con- 
serve energy.  I  can  assure  you,  Mr.  Pres- 
ident, that  the  Committee  on  Armed 
Services  intends  to  follow  closely,  and 
will  receive  periodic  reports,  upon  the 
conservation  efforts  of  the  Department 
of  Defense. 

Mr.  President,  this  completes  my  state- 
ment, and  I  shall  be  glad  to  answer  any 
questions. 

First.  I  would  say,  in  order  to  correct 
an  Inadvertent  error  in  Senate  Joint 
Resolution  176,  I  move  that  the  resolving 
clause  of  the  resolution  be  restored  as 
follows  : 

Resolved  by  the  Senate  and  the  Houae  of 
RepresenUtives  of  the  United  States  of 
America  In  Congress  asMmbled 


The  motion  was  agreed  to. 
Mr.   GRIFFIN.   Mr    Pre.<=ident.   is  the 
time  on  the  other  side  under  the  control 
of  the  minority  leader? 

The  PRESIDING  OFFICER.  That  is 
correct. 

Mr.  GRIFFIN.  Mr  President,  on  his 
behalf.  I  ask  unanimous  consent  that  the 
time  be  under  the  control  of  the  Senator 
from  Virginia  'Mr.  William  L  Scott > 

The  PRESIDING  OFFICER  Without 
objec:ion.  it  is  so  ordered. 

Mr  WILLL\M  L.  SCOTT  Mr  Presi- 
dent. I  shall  take  very  little  time.  ( 
I  commend  the  chairr^.an  of  the  sub- 
com-nittee  for  the  work  he  has  done. 
Hearings  were  held  on  this  mitter  and 
we  went  into  it  fairly  deeply  It  has  re- 
strictions in  it  as  to  the  volume  of  oil 
that  can  be  used  from  this  reserve  of 
160.000  barrels  of  crude  oil  a  day 

The  act  Is  Umited  to  1  year.  This  is  a 
matter  the  Senate  should  adopt.  It  is  a 
vital  matter  and  has  the  recommenda- 
tion of  the  administration. 
I  urge  that  the  resolution  be  approved 
Mr.  CRANSTON.  Mr.  President.  I  rise 
in  support  of  Senate  Joint  Resolution 
176.  a  resolution  to  authorize  production 
from  Elk  Hills  Naval  Petroleum  Reserve 
in  California.  I  want  to  commend  the  dis- 
tinguished chairman  of  the  Naval  Petro- 
leum Reserves  Subcommittee.  Mr   Can- 
non, and   the  chainnan  of   the  Armed 
Services  Committee,  Mr.  Stennis.  and  all 
members  of  the  committee  for  the  ex- 
pedited consideration  that  was  given  to 
this  resolution. 

Senate  Joint  Resolution  176  was  Intro- 
duced in  the  Senate  by  request  on  De- 
cember 4  A  public  hearing  was  held  on 
December  10.  and  the  bill  was  reported 
out  of  the  Armed  Services  Committee  and 
placed  on  the  Senate  calendar  on 
December  17 

Mr  President,  there  Is  unfounded  fear 
that  Increased  pumping  at  Elk  Hills 
could  deplete  oU  reserves  that  might  be 
needed  in  some  future  militan'  emer- 
gency. 

There  Is  absolutely  no  Justifiable  cause 
for  such  concern  A  1-year  production 
rate  of  160,000  barrels  a  day  would  use 
up  only  about  5  percent  of  the  one  billion 
barrels  of  oil  known  to  be  at  EHk  Hills  \ 

In  addition,  some  $72  mUllon  In  pro- 
reeds  from  the  sale  of  Elk  Hills  oU  plus 
other  appropriated  funds  will  be  used  for 
further  exploratory  drilling  both  there 
and  in  Alaska 

So  we  may  very  well  Increase— rather 


than  decrease — oil  reserves  for  military 
needs. 

On  the  other  hand.  If  we  do  not 
promptly  reUeve  fuel  shortages  in  south- 
em  California,  many  Industries  vital  to 
our  national  defense  will  be  seriously 
crippled 

Decreasing  military  demand  on  civil- 
ian fuel  supplies  could  foresUll  the  dras- 
tic job  layoffs  and  rotating  blackouts 
that  Los  Angeles  is  now  preparing  for. 

We  must  reduce  the  military  drain 
that  is  taking  precious  civilian  oil  away 
from  southern  California  cities— the  hub 
of  our  defense-related  industries. 

Some  19.7  million  barrels  of  oil  from 
c  ivilian  stocks  have  been  allocated  to  the 
Armed  Forces  for  November  and  Decem- 
ber alone. 

It  is  plainly  bad  planning  for  the  mili- 
tary to  be  given  first  priority  in  the  allo- 
cation of  scarce  fuels  while  oU  reserves 
set  aside  for  national  defense  lie  imused. 
We  are  leaving  our  cities  and  our  indus- 
trial base  that  supports  our  national  de- 
fense short  of  lifeline  supphes  of  fuel 

By  opening  Elk  Hills  and  producing 
160.000  barrels  per  day.  much  of  the 
military  demand  for  civilian  oU  supplies 
will  be  eased.  Presently,  the  military  is 
taking  some  300.000  barrels  per  day  of  oil 
from  civUian  supplies.  Opening  Elk  Hills 
will  provide  at  least  half  of  that  demand 
and  wnU  be  of  sigmficant  help  to  oil- 
starved  cities  hke  Los  Angeles. 

In  addition.  Mr  President,  Los  An- 
geles is  suffering  from  the  worst  air  pol- 
lution problem  in  the  Nation  and  it 
should  be  permitted  to  exchange  some  of 
its  high  sulfur  fuel  for  the  low  sulfur  fuel 
the  Navy  would  be  getting  from  Elk 
Hills. 

The  Los  Angeles  area  fares  a  critical 
challenge  in  the  immediate  days  ahead. 
It  has  taken  decisive  steps  to  conserve 
fuel  and  electricity  while  trying  to  keep 
the  wheels  of  industry  turning. 

But  it  must  now  deal  with  the  ex- 
tremely serious  problem  of  either  finding 
new  sources  of  low  sulfur  oil  or  securing 
legal  authority  to  bum  high  sulfur  oil 
that  wUl  raise  smog  levels  here  to  posslby 
dangerous  proportions. 

If  Los  Anceles  utUities  are  forced  to 
bum  high  sulfur  fuel  oils  to  produce  elec- 
tricity, the  health  and  the  lives  of  thou- 
sands of  people  may  be  threatened.  Every 
effort  by  every  branch  of  government  and 
Industry  must  be  mobilized  to  avoid  this. 
The  resolution    reported   out   by   the 
Armed  Services  Committee  Is  a  good  one 
It  answers.  In  my  opinion,  manv  of  the 
questions  and  concerns  that  have  been 
raised   and  which  were  not  adequately 
answered  by  the  original  Joint  resoluUon 
The  committee  has  strengthened  sub- 
stantially the  language  of  the  resolution 
concerning  the  contractual  relationship 
between  the  Navv-  and  Standard  Oil  of 
California,   the  only   remaining  private 
landowTier  within  the  reserve.  Since  1944 
Socal  and  the  Navy  have  operated  the 
reserve  under  a  unit  plan  contract  which 
grants  to  the  Navy  the  complete  control 
over  the  development  and  production  of 
the  reserve  and  fixing  a  basis  for  division 
of  any  oil  produced 

The  resolution  provides  for  disposition 
of  the  Navy's  share  of  the  oil  through 
competitive  bidding.  The  procedures  for 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42515 


this  must  be  capable  of  assuring  fairness 
and  equal  opportunity  for  all  companies. 
Including  major  and  independent  oil  re- 
fineries. And  as  Is  the  case  under  current 
law  (section  7431  of  title  10,  United 
States  Code^  contract  awards  will  be 
subject  to  approval  by  the  Justice  De- 
partment and  congressional  committees, 
thus  assuring  protection  of  the  public  in- 
terest. 

Mr.  President,  when  the  Armed  Serv- 
ices Committee  held  Its  hearings  on  Sen- 
ate Joint  Resolution  176,  I  testified  be- 
fore the  committee  about  the  critical 
need  for  fuel  which  now  plagues  southern 
California  and  particularly  the  city  of 
Los  Angeles.  I  ask  unanimous  consent 
that  my  testimony  before  the  Armed 
Services  Committee  on  December  10  be 
printed  in  the  Record  at  this  point,  along 
with  a  letter  I  wrote  on  December  18  to 
William  F.  Simon,  Administrator  of  the 
Federal  Energy  Office,  on  a  matter  re- 
lated to  present  military  use  of  domestic 
civilian  oil  supplies. 

There  being  no  objection,  the  material 
was  ordered  to  be  printed  in  the  Record. 
as  follows: 
Statkment  of  us.  Senator  Alan  Cranston 

Mr.  Chairman,  I  am  grateful  to  have  this 
opporttinlty  to  comment  on  the  question  of 
authorizing  production  from  Naval  Petro- 
leum Reserve  Numbered  One — commonly 
referred   to  as   "Elk  HUls". 

The  Committee,  in  receiving  testimony  on 
Senate  Joint  Resolution  176.  is  tackling  an 
Issue  which  has  strong  sentiment  on  both 
sides  and  which  has  broad  ramifications. 
Questions  vital  to  our  national  defense,  our 
economic  weU -being  and  the  essential  needs 
of  our  citizens  are  involved. 

I  believe  that  Elk  HUls  oU  should  be  pro- 
duced at  the  rate  of  at  least  100.000  barrels 
per  day  (but  not  more  than  160,000  barrels 
per  day)  for  a  period  of  one  year  In  order  to 
provide  for  emergency,  short-term  petroleum 
needs  which  are  vital  to  our  economy  and  to 
our  defense  capabllltlee.  Should  additional 
oil  prove  necessary,  or  If  one  year  Is  not  suf- 
ficient. Congress  would  have  to  enact  addi- 
tional legislation.  I  wish  to  make  cle«u-.  how- 
ever, that  my  support  for  producing  from  the 
Elk  HUls  Reserve  Is  conditioned  upon  a  reso- 
lution In  the  public  interest  that  is  satis- 
factory to  the  Armed  Services  Committee  of 
the  contractual  and  legal  questions  Involving 
Standeu-d   Oil   Company   of  California. 

The  Elk  HUls  Reserve  was  established  by 
Executive  Order  in  September.  1912,  for  "the 
exclusive  use  or  t>eneflt  of  the  United  States 
Navy."  Three  additional  Na\y  Reserves  wer« 
established  by  executive  order  between  1912 
and  1923.  Because  these  reserves  were  estab- 
lished by  executive  order,  however,  there 
was  no  effect  on  titles  to  lands  within  the 
boundaries  of  the  reserves  which  had  already 
been  reduced  to  private  ownership.  As  a  re- 
sult, about  one-third  of  the  lands  within 
the  Elk  Hills  Reserve  was  privately  owned. 
Since  1912,  all  of  the  lands  within  the  re- 
8er\'6  have  come  Into  the  ownership  of 
either  the  United  States,  which  owns  ap- 
proximately 80  percent  of  the  total,  or  of 
Standard  OU  Company  of  California  which 
owns  the  balance. 

In  1938,  legislation  was  enacted  to  con- 
solidate and  protect  the  Elk  HilLs  Reserve.  It 
authorized  the  Secretary  of  the  Navy  to  enter 
Into  contracts  and  to  acquire  lands  for  the 
protection  and  conservation  of  the  oil  re- 
serves. 

In  1944.  a  unit  plan  contract  negotiated 
between  the  Navy  and  Stitndard  was  ap- 
proved, giving  the  Navy  complete  control 
over  the  development  and  production  of  the 
reserve  and  Hxlng  a  basis  for  division  of 
any   oU    produced.    Also    In    1944,    Congress 


authorized  production  at  Elk  HUls  In  order 
to  satisfy  wartime  petroleum  deficiencies  of 
the  armed  services.  Production  was  limited 
to  65,000  barrels  per  day  for  18  months.  Im- 
mediately after  termination  of  hostlUtles  In 
the  Pacific  m  September,  1945,  Congress  re- 
voked authority  for  production  at  Elk  HlUs. 
Today  production  has  stabilized  at  the  rate 
of  3,000  barrels  per  day. 

P'resently,  there  are  more  than  1100  wells 
In  the  Elk  HlUs  Reserve.  It  has  been  esti- 
mated that  the  reserve  is  capable  of  produc- 
ing a  maximum  of  100,000  barrels  per  day 
within  60  days,  but  that  limited  pipeline 
capacity  would  be  able  to  transport  only  90,- 
000  barrels  per  day  to  the  boundaries  of  the 
reserve  and  only  12,000  barrels  per  day  be- 
yond. 

According  to  the  Office  of  Naval  Petroleum 
and  Oil  Shale  Reserves,  the  maximum  ef- 
ficient rate  of  production  at  Elk  Hills  with 
existing  wells  would  approximate  267.400 
barrels  per  day. 

To  attain  that  level,  however,  additional 
facilities  costing  some  $69  million  would  be 
required.  The  total  proven  reserves  at  Elk 
Hills  is  approximately  1  billion  barrels. 

Mr.  Chairman,  on  November  6.  1973.  the 
Acting  Secretary  of  the  Navy  transmitted  .. 
finding  that  production  from  Elk  Hills  at  a 
rate  "not  to  exceed  the  maximum  efficient 
rate"  was  necessary  to  help  Insure  that  the 
petroleum  needs  of  national  defense  are  met 
Simultaneously,  he  transmitted  a  proposed 
Joint  resolution  to  the  Congress,  which  you 
have  before  you  today — S.J.  Res.  176.  Shortly 
after  this,  the  Secretary  of  the  Interior 
ordered  that  first  priority  m  allocating  scarce 
fuels  would  go  to  the  military.  And  in  No- 
vember and  December,  estimates  are  that 
some  19.7  million  bsurels  of  oil  from  civilian 
stocks  have  been  allocated  for  use  by  the 
military. 

Mr.  Chairman,  I  believe  It  Is  plain  bad 
planning  for  the  military  to  be  given  first 
priority  In  the  allocation  of  scarce  fuels  whUe 
the  oil  reserves  set  aside  for  national  defense 
sit  unused.  It  amounts  to  robbing  Peter  to 
pay  Paul  and  It  Is  leaving  our  cities  and  otir 
Industrial  base  short  of  lifeline  supplies  of 
fuel. 

To  Illustrate  my  point,  I  would  like  to  take 
a  moment  to  describe  Just  how  serious  the 
fuel  shortages  are  In  Southern  California, 
which  Is  the  hub  of  our  defense-related 
industries. 

In  the  Los  Angeles  area  four  of  our  cities 
are  facing  real  and  immediate  shortages. 
Action  Is  required  within  a  few  weeks  or 
these  cities  will  be  In  very  deep  trouble 

These  are  the  cities  of  Los  Angreles.  with 
3  mUUon  residents,  and  the  suburban  cities 
adjoining  Los  Angeles  of  Biu-bank.  Giendale 
and  Pasadena.  All  four  of  these  cities  operate 
their  own  power  departments.  Other  cities  In 
Southern  California  are  served  by  investor- 
owned  public  utilities,  which  are  facing 
shortages  too.  but  which  are  not  faced  with 
Immediate  shortages  as  Is  Los  Angeles. 

Burbank.  Pasadena  and  Olendale  are  In 
the  deep>est  trouble. 

Pasadena  has  announced  It  must  cut  back 
power  before  Christmas  and  rotating,  neigh- 
borhood by  neighborhood  blackouts  would 
come  next  month. 

Burbank  already  has  passed  an  ordinance 
requiring  curtailment  of  business  and  in- 
dustry and  has  warned  that  power  will  l)e 
cut  off  completely  for  those  who  faU  to 
comply.  Olendale  also  has  a  very  limited 
supply  of  oil.  especially  low-sulfur  oil.  and 
will  be  forced  to  make  mandatory  cutback.s 
In  electricity  early  next  year,  unless  a  var- 
iance Is  granted  by  the  local  air  pollution 
control  district  or  additional  supplies  of  low- 
sulfur  oil  are  found  and  made  available 

The  problem  In  the  city  of  Los  Angeles, 
while  not  immediately  acute.  Is  so  huge,  be- 
cause of  the  large  population  and  the  con- 
centration of  Industry.  It  Is  perhaps  more 
dramatic.  Let  me  discuss  It  In  more  detail. 


The  Los  Angeles  Department  of  Water  and 
Power  Is  almost  totally  dependent  on  fuel 
oU  for  generating  electricity.  About  five  per- 
cent of  Its  electricity  comes  on  transmission 
lines  from  the  Pacific  Northwest  during  i>e- 
rlods  of  excess  supply  In  that  area.  And 
there  haven't  been  any  surpluses  there  In 
months. 

Until  last  summer  the  department  used  a 
combination  of  oil  for  fuel  during  the  win- 
ter months  and  natural  gas  during  the  sum- 
mer when  the  Los  Angeles  smog  problem 
intensifies.  But  this  summer,  the  natural  gas 
shortage  led  to  supplies  being  cut  off  and 
the  system  must  now  operate  almost  entirely 
with  fuel  oil. 

Because  of  the  California  air  poUutlon 
control  standards,  the  Al  Los  Angeles  burns 
must  have  a  sulfur  content  of  one-half  of 
one  percent  (0.5)  or  less. 

This  type  of  oil  Is  not  generally  available 
from  domestic  sotirces.  It  must  be  Imported 
from  the  Middle  East  or  North  Africa,  Indo- 
nesia, or  Venezuela.  The  LA.  power  system 
does  not  operate  extensive  storage  facilities 
as  many  Investor-owned  utilities  do.  It  has 
been  buying  its  oil  and  its  gas  as  it  needed 
and  stores  only  for  a  few  months. 

And,  until  recently,  supplies  have  been 
adequate.  A  year  ago,  for  example,  it  asked 
for  bids  on  4.5  million  barrels.  It  received 
offers  of  32  mUllon  barrels.  By  last  April  the 
situation  had  completely  changed.  With  only 
a  60-day  oil  supply  on  hand,  the  Department 
of  Water  and  Power  asked  for  bids  for  fuel 
oil  and  not  a  single  oil  company  made  an 
offer  to  supply  the  city. 

The  Department  has  been  scrambling  for 
supplies  ever  since  and  was  forced  to  enter 
the  world  market  and  deal  directly  with 
overseas  suppliers.  It  was  successful  in  con- 
tracting with  both  Indonesia  and  North 
.^ric&n  Arab  states  for  oil  supplies. 

Recently  it  learned  that  1 1  million  barrels 
contracted  for  In  North  Africa  had  been 
placed  under  the  Arab  embargo.  The  city 
win  not  get  that  oil.  This  oil  Is  nearly  half 
of  the  23-mlUlon  barrels  it  needs  to  supply 
the  city  of  Los  Angeles  and  Its  3  million  citi- 
zens and  aU  of  the  major  Industries  which 
are  not  served  by  the  private  utlUtlee. 

As  a  result  of  the  loss  of  Arab  oil  the  de- 
partment hais  announced  S-phase  conserva- 
tion plan  for  the  city  which  could.  If  fully 
Implemented,  have  a  disastrous  Impact  on 
the  entire  Los  Angeles  area. 

This  plan  must  be  Implemented  within 
three  or  four  months  If  the  city  is  to  survive 
at  all. 

Phases  1  and  2  of  the  plan  call  for  conser- 
vation measures  and  voluntary  curtailment 
of  power  use.  These  steps  have  already  been 
taken. 

Phase  3  Is  for  mandatory  curtailment  of 
power  use. 

Phase  4  calls  for  burning  high  sulfur  oil 
under  a  variance  trota.  the  local  Air  Pollution 
Control  District's  Hearing  Board.  The  ap- 
plication for  this  \-arlance  has  been  filed. 

Phase  5  would  require  so-called  "rolUng 
blackouts" — the  complete  shut-off  of  all 
power,  nelghborhood-by-nelgbborhood,  on  a 
rotating  basis. 

City  ordinances  already  are  being  drawn 
up  to  put  the  plan  Into  effect  and  we  are 
already  clo  ;  to  the  need  for  Phase  2 — man- 
datory curtailment.  This  would  be  effected 
by.  among  other  things,  limiting  business  and 
Industrial  operations  to  50  hours  a  week. 
This  move  alone  could  throw  100.000  to  2<X).- 
CO  men  and  women  out  of  work  im- 
mediately! The  ripple  effect  of  such  massive 
layoffs  could  create  social  and  economic 
chaos  with  many  thousands  more  unem- 
ployed, and  Incredible  hardships  for  work- 
ers, families  and  businesses 

The  Phase  5  blackouts  would  be  Imple- 
mented If  the  Pha."?e  4  curtailments  did  not 
achieve  the  necessary  fuel  savings.  These 
blackouts,  u  complete  shutting  off  of  elertn- 
ca!  power,  would  be  rotat«d  through  the  city 


42516 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  197S 


for  periods  of  two,  ttiree.  or  four  boura. 
Homes,  business,  bospltAls,  tr&fflc  U^ts, 
police  stations — all  would  be  cut  oS  equsJly. 
The  outcome  of  tbese  extreme  measures 
Is  hard  to  Imagine  but  they  could  be  serious 
Indeed  for  the  people  of  the  Loe  Angeles  area. 
And  on  top  of  everything  else,  Loa  Angeles  Is 
suffering  from  the  worst  atr  pollution  prob- 
lem In  the  nation.  If  now  we  must  bum  high 
Bxilfur  oil — some  35  to  30  million  barrels — 
the  Increase  In  smog  could  threaten  the 
health  and  even  the  lives  of  thousands  of 
persons,  especially  the  elderly  and  those  al- 
ready suffering  from  lung  and  bronchial 
disorders. 

Mr.  Chairman,  opening  up  production  at 
EUc  Hills  at  the  rate  of  100.000  to  160.000 
barrels  per  day  would  not  solve  these  serious 
fuel  shortages.  But  by  decreasing  military 
demand  on  other  fuel  supplies.  It  might  fore- 
stall the  drastic  Job  layoffs  and  rotating 
blackouts  that  Loa  Angeles  Is  now  forced  to 
prepare  for.  I  suggest  that  If  these  measures 
are  Implemented,  many  Southern  California 
Industries  vital  to  our  national  defense  will 
be  crippled. 

Moreover,  producing  at  the  rates  of  100.000 
to  160.000  barrels  per  day  for  one  year  would 
deplete  Elk  Hills  of  less  than  Ave  percent  of 
Its  total  of  1  billion  barrels.  That  is  not  a 
very  substantial    impact,   in   my  opinion. 

.\n  added  benefit  Is  that  the  oil  at  KUt 
Hills  Is  considered  to  be  low-s\alfur,  a  con- 
sideration which  Is  quite  significant  for  Loe 
Angeles,  as  I  have  Indicated.  I  suggest  that 
If  this  Committee  decides  to  authorize  pro- 
duction from  Elk  Hills  for  national  defense 
ptirposes.  some  arrangement  should  be 
sought  that  would  allow  a  city  like  Loe  An- 
geles to  trade  Its  high  sulfur  fuel  for  the 
low-sulfur  fuel  at  Elk  Hills. 

In  closing,  Mr.  Chairman.  I  wish  to  say 
that  I  am  aware  of  the  possible  "wlndfaU" 
which  may  accrue  to  Standard  OH  Company 
If  Elk  Hills  is  opened  for  production.  Every 
effort  must  be  made  to  avoid  any  possibility 
that  Standard  could  charge  that  the  govem- 
meni  violated  its  agreement,  thereby  freeing 
them  to  go  Into  full  production  on  their 
share  of  the  reserve  This  would  only  serve 
to  deplete  the  reserve  through  massive  offset 
production   on   the   part  of  the   Navy 

These  are  publlcly-owned  reserves.  The 
public's  Interest  In  them  must  be  protected, 
and  windfall  profits  made  at  the  public's  ex- 
pense cannot  be  tolerated. 

The  contractual  and  legal  relationship  be- 
tween the  Navy  and  Standard  at  Elk  Hills  U 
extremely  complicated.  I  would  hope  that 
this  Committee  will  make  every  effort  to  re- 
solve these  Issues  so  that  limited,  but  essen- 
tial production  can  commence  at  Elk  Hills. 
This  outcome  Is  essential  to  the  continued 
economic  well-being  of  the  citizens  of  the 
Loe  Angeles  area. 

VS.  SrskTZ. 
Waahinffton.  DC  .  December  18.  1973, 
Mr  Wn.UAM  E.  Simon. 
Administrator,  Federal  Energy  Office. 
Washington,  DC. 

Dea«  Bnx:  It  Is  my  understanding  that 
the  Office  of  Petroleum  Allocations  Issued  a 
directive  on  December  13,  1973.  ordering 
Union  Oil  Company  of  California  to  provide 
at  least  500.000  barrels  of  crude  oil  to  Ouam 
by  December  31.  As  a  result  of  this  order. 
Union  Oil  Company  redirected  Its  tanker. 
San  Slzena.  loaded  with  605.000  barrels  of 
Indonesian  crude  oil.  from  its  original  South- 
ern California  destination  to  the  U.S.  Ter- 
ritory of  Ouam. 

As  you  know.  Southern  California  is  criti- 
cally short  of  fuel  I  would  therefore  appre- 
ciate your  providing  me  with  a  full  report  on 
why  this  directive  was  Issued  and  for  what 
purpoee  the  oU  wUl  be  used  in  Guam  Spe- 
cifically. I  would  like  to  know  under  what 
authority  and  by  whom  the  directive  was 
iMued.  what  timetable  and  procedure*  were 


used,  whether  the  crude  oil  will  be  refined 
for  use  by  American  military  installations  in 
Ouam.  and  whether  any  portion  will  be  used 
for  non-defense  purposes. 

Finally,  I  would  appreciate  your  advising 
me  of  the  criteria  and  procedures  used  to  de- 
termine how  to  re-allocate  crude  oil  and 
other  petroleum  products  to  meet  critical 
fuel  shortages  In  one  area  or  region.  In  this 
case.  It  appears  that  fuel-short  Ouam  rob- 
bed fuel-short  Southern  California  of  a 
tanker  load  of  Indonesian  crude  oil.  What 
efforts  were  made  to  find  other  sources  of 
crude  oil  for  Ouam  before  the  San  Slaena 
was  diverted?  Also,  was  consideration  given 
to  the  fact  that  the  San  Slzena  was  loaded 
with  505,000  barrels  of  low-sulfur  crude  oU. 
a  critical  consideration  In  meeting  South- 
em  California's  air  pollution  requirements? 
If  these  considerations  were  not  taken  Into 
account  in  this  Instance,  I  would  urge  that 
they  should  be  in  any  future  reallocation 
decisions. 

Tour  comments  and  answers  to  these  ques- 
tions wUl  be  much  appreciated. 
Very  sincerely. 

Alan  Cranston. 

Mr.  CRANSTON.  Mr.  President,  I  ask 
unanimous  consent  that  Win  Parin  and 
John  Steinberg  of  my  staff  have  the  priv- 
ilege of  the  floor  during  the  consideration 
of  this  and  ensuing  measures  that  come 
before  the  Senate. 

The  PRESIDINO  OFFICER  Without 
objection,  it  is  so  ordered. 

Mr.  STEVENSON.  Mr.  President,  will 
the  Senator  from  Nevada  yield  for  a  few 
questions? 

Mr.  CANNON.  I  yield  for  questions. 

Mr.  STEVENSON.  Mr.  President.  I 
chaired  the  hearings  most  of  this  morn- 
ing In  the  Commerce  Committee  on  the 
general  subject  of  management  of  petro- 
leum reserves.  Among  other  things,  this 
resolution  was  discussed,  as  was  the  man- 
agement of  all  the  petroleum  reserves. 

A  number  of  questions  have  been 
raised  about  the  measure  in  the  past. 
and  the  intentions  of  the  Defense  De- 
partment in  the  future.  I  have  not  had 
a  chance  to  study  the  report  of  the  legis- 
lation. As  a  matter  of  fact,  this  is  the 
first  chance  I  have  had  to  see  the  report. 
I  would  still  hope  that  consideration  of 
the  bill  might  be  put  over  until  Members 
have  had  a  chance  to  study  it.  In  the 
meantime,  I  might  ask  a  few  questions  to 
point  out  some  of  the  areas  of  my  con- 
cern. 

The  distinguished  chairman  of  the 
Committee  on  Rules  and  Administration 
mentions  that  SoCal  would  receive  only 
a  legitimate  portion  of  the  production 
under  the  utilization  agreement. 

I  tissume  that  is  the  case  I  assume, 
beyond  that,  that  it  means  that  SoCal 
will  not  contest  the  validity  of  that 
agreement  as  a  result  of  the  Govern- 
ment's production  of  more  oil  than  is  now 
required  for  defense  requirements.  But 
I  wonder  whether  the  chairman  can  tell 
me  at  what  price  and  to  whom  the  Gov- 
ernment's portion  of  the  oil  will  be  sold. 

Mr.  CANNON.  The  Government's  por- 
tion of  the  oil  will  be  sold  to  the  highest 
bidder  on  an  auction  basis. 

Mr.  STEVENSON.  Will  the  Senator  teU 
me  who  in  that  area  can  bid? 

Mr.  CANNON.  Anyone  who  desires  to 
bid  on  the  oil  is  eligible.  The  last  time 
it  went  out  for  bids,  a  number  of  com- 
panies proposed  bids.  The  contract,  once 


the  bid  is  awarded,  must  be  approved  by 
the  Department  of  Justice  and  must  be 
submitted  to  the  Armed  Services  Com- 
mittee of  the  House  for  approval. 

Mr.  STEVENSON  Is  it  not  true  that 
there  Is  only  one  pipeline  in  the  area  and 
that  the  last  time  three  bids  were  sub- 
mitted, one  by  Pima  Refinery,  which  is 
an  Independent.  Its  bid  was  discarded  for 
the  ostensible  reason,  at  least,  that  it  did 
not  have  the  capacity  to  transport  the  oil. 
Two  other  bids  were  submitted — one  by 
Shell  and  the  other.  I  believe,  by  SoCal — 
which,  by  some  coincidence,  were  identi- 
cal bids.  The  award  of  the  contract  was 
made  to  Shell  at  that  time,  by  drawing 
lots,  and  Shell  at  that  very  time  was 
under  investigation,  as  I  understand  it, 
in  the  California  Legislature  for  rigging 
bidding  on  Cahfomia  leases. 

I  ask  the  chairman,  in  view  of  that 
history  of  bidding  or  auctioning  In  this 
area,  what  basis  we  have  for  being  con- 
fident, with  only  one  pipeline  in  the 
area,  that  there  can  be  any  real  bidding. 
As  I  understand  it,  further,  the  oil  is 
produced  at  a  cost  of  about  25  cents  a 
barrel.  SoCal  has  been  producing  oil  at 
that  cost  and  is  now  selling  it  to  the  pub- 
lic at  a  price 

Mr.  CANNON.  My  time  is  about  out.  I 
am  not  sure  which  question  the  Senator 
has  asked,  but  I  can  address  myself  gen- 
erally to  the  proposition.  I  do  not  have 
more  than  about  2  minutes  remaining. 
I  would  simply  say  that  the  Senator's 
statement  that  there  is  only  one  pipeline 
is  in  error.  That  Is  not  a  fact. 

Second,  it  is  not  necessary  to  sell  only 
to  someone  who  uses  pipelines,  because 
it  is  possible  to  take  delivery  through 
tank  delivery. 

Third,  when  the  bid  to  which  the  Sen- 
ator referred  was  turned  down  the  last 
time,  it  was  turned  down  becau.se  that 
company  had  no  apparent  way  of  taking 
delivery.  They  were  asked  to  make  a  pro- 
posal Eis  to  how  they  would  take  delivery, 
and  they  did  not  make  it. 

I  am  aware  of  the  matters  to  which 
the  Senator  has  referred,  and  I  am  sorry 
that  he  has  not  seen  the  answer  of  the 
Department  of  Justice  to  those  allega- 
tions, as  well  as  the  answer  of  the  As- 
sistant Secretary  of  the  Navy,  Jack  L. 
Bowers,  for  Installation  and  Logistics, 
who  responds  specifically  to  all  these  gen- 
eral types  of  complaints 

The  PRESmiNQ  OFFICER.  All  time 

of  the  Senator  from  Nevada  has  expired. 

Mr.  STEVENSON.  Mr.  President.  I  ask 

imanlmous  consent  that   10  additional 

minutes  be  granted  each  side. 

Mr.  MANSFIELD.  Mr.  President,  I  ob- 
ject. 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  Virginia  has  7  minutes  re- 
maining. 

Mr.  STEVENSON.  Mr.  President.  I  ask 
for  the  yeas  and  nays. 

The  yeas  and  nays  were  ordered. 

The  PRESIDING  OFFICER,  Does  the 
Senator  from  Virginia  yield  time? 

Mr.  TUNNEY.  Mr  President,  will  the 
Senator  from  Virginia  yield  me  1  min- 
ute? 

Mr    WILLIAM  L    SCOTT,  I  yield. 

Mr.  TUNNEY.  Mr.  President,  I  com- 
pliment the  committee  on  bringing  this 
measure  forward. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42517 


Thoee  of  us  who  live  in  California  are 
well  aware  that  this  naval  reserve  at  Elk 
Hills  contains  a  substantial  amount  of 
oil  that  is  desperately  needed  not  only 
on  the  west  coast  but  throughout  the 
United  States  as  well. 

It  Is  very  clear  at  the  present  time 
that  the  Defense  Establishment  is  draw- 
ing upon  commercial  sources  for  petro- 
leum to  maintain  the  Defense  Estab- 
lishment. Inasmuch  as  this  reserve  is 
there  to  help  in  times  of  national  emer- 
gency, we  now  have  a  national  emer- 
gency, and  there  is  no  reason  why  this  oil 
should  not  be  produced  for  the  purpose 
of  maintaining  our  defense. 

I  think  the  committee  has  done  an 
excellent  Job  in  considering  all  aspects 
of  the  proposed  legislation  and  in  bring- 
ing it  forward  in  expeditious  fashion,  so 
that  Congress  can  act  on  it,  so  that  we 
can  get  this  oil  in  production,  so  that 
the  Military  Establishment  will  not  have 
to  draw  upon  very  short  commercial  re- 
serves for  the  purpose  of  maintaining  it- 
self, 

I  thank  the  distinguished  Senator  from 
Virginia  for  yielding  to  me. 

Mr.  WILLIAM  L.  SCOTT.  Mr.  Presi- 
dent, I  appreciate  the  Senator's  com- 
ment. 

Let  me  add,  in  support  of  the  measure, 
that  during  the  hearings  before  the  sub- 
committee, we  had  a  panel  of  the  lead- 
ership of  the  Department  of  Defense, 
both  military  and  civilian  leaders  and 
secretaries.  I  posed  a  question  to  them 
as  to  whether  the  Department  of  De- 
fense, both  civilian  and  mllltarj',  did  sup- 
port the  bill  in  its  entirety.  We  received 
sui  afflrmatlve  answer  that  they  did 
wholeheartedly  support  the  military 
leadership. 

Mr.  President,  I  yield  3  minutes  to  the 
distinguished  Senator  from  South 
Carolina. 

Mr.  THURMOND.  Mr.  President,  the 
Elk  Hills  OU  Reserve  in  Kern  County, 
Calif.,  was  e.^tablished  by  Executive  order 
in  September  1912  for  "the  exclusive  use 
or  benefit  of  the  U.S.  Navy."  In  1938, 
legislation  was  enacted  to  consolidate 
and  protect  the  Elk  Hills  Reserve  and  to 
requhe  congressional  approval  before  any 
production,  in  addition  to  that  necessary 
for  testing,  and  so  forth,  could  be  under- 
taken. 

During  World  War  n  Congress  author- 
ized production  from  Elk  Hills  at  65,000 
barrels  per  day  At  the  end  of  the  war, 
production  authority  was  revoked,  and 
there  has  been  no  production  since.  To- 
day the  generally  accepted  reserves  at 
Elk  Hills  are  estimated  at  1  billion  bar- 
rels. 

The  Subcommittee  on  National  Stock- 
pile and  Naval  Petroleum  Reserves,  pre- 
sided over  by  Senator  Cannon,  held  hear- 
ings on  Senate  Joint  Resolution  176  on 
December  10  and  11.  Under  Senate  Joint 
Resolution  176.  the  Navy  would  t)e_au- 
thorlzed  t.o  commrnce  oil  production 
from  the  Elk  HilL<;  Reserve  within  45  days 
after  the  efTtx'tlve  d:ite  of  the  resolution 
and  to  continue  for  a  period  of  not  more 
than  1  year  after  production  com- 
mence."^ Wltnes.ses  from  the  Department 
of  Defense.  Standard  Oil  of  CaJiTomla, 
as  well  as  Senators  Cranston,  Ttjnniy. 
and  QRAVkL,  testified.  With  one  exception. 


all  were  in  favor  of  Senate  Joint  Resolu- 
tion  176. 

Navy  and  Standard  Oil  officials  agree 
that  a  160,000  barrel  per  day  production 
Is  reasonable  and  would  not  damage  the 
field.  The  maximum  efficient  rate  of  pro- 
duction at  Elk  Hills  with  existing  wells  Is 
estimated  by  the  Office  of  Naval  Petro- 
leum and  Oil  Sliale  Iieser\es  at  267,400 
barrels  per  day.  Therefore,  it  seems  there 
is  no  problem  with  a  daily  rate  of  160,- 

000  barrels.  The  joint  resolution  author- 
izes $72  million  for  production  and  fur- 
ther research  and  development  of  the 
reserve. 

The  Department  of  Defense  recently 
used  the  authority  of  the  Defense  Pro- 
duction Act — DPA — in  ordering  some 
300,000  barrels  of  fuel  per  day  which  it 
could  not  get  in  the  free  market.  Cur- 
rently, total  Defense  needs  per  day,  under 
an  austere  sustaining  level,  are  approxi- 
mately 625.000  barrels  per  day.  While 
there  is  not  a  1-for-l  ratio  between  a 
barrel  of  crude  oil  and  a  refined  barrel 
of  petroleum  product,  witnesses  felt  that 
a  160,000  barrel  per  day  production  rate 
from  Elk  Hills  could  reduce  DOD's  de- 
mand on  the  domestic  economy  by  about 
150,000  barrels  per  day. 

Mr.  President,  I  believe  adoption  of 
Senate  Joint  Resolution  176  is  in  the 
national  interest,  and  I  urge  its  passage. 

The  PRESIDING  OFFICER  The  Sen- 
ator from  Virginia  'Mr  Wh-liam  L. 
ScoTT)  has  1  minute  remaining. 

Mr.  •WILLIAM  L.  SCOTT.  I  yield  that 

1  minute  to  the  distinguished  Senator 
from  Nevada. 

Mr.  CANNON.  Mr.  President,  in  light 
of  the  questions  that  have  been  raised, 
I  ask  unanimous  consent  that  a  letter 
dated  October  18,  1973,  from  Representa- 
tive John  E.  Moss  to  the  President  be 
printed  at  this  point  in  the  Record. 

Tliere  being  no  objection,  the  letter 
was  ordered  to  be  printed  in  the  Record, 
as  follows : 

House  of  RjiPRESENTATrvxs, 
Washington.  DC,  October  IS,  1973. 
The  PwojiDkNT, 
The  White  House. 
Washington.  DC. 

Dkab  Ma.  PEEsrotNT:  I  noted  with  interest 
your  proposal  to  open  up  the  Elk  Hills  Naval 
Petroleum  Reserve  In  California  because  of 
the  "energy  shortage."  Sharing  your  concern 
over  oil  shortfaUs  and  wishing  to  ensure  that 
neither  our  Navy's  needs  nor  the  taxpayer's 
Interest  should  come  to  harm.  I  have  delved 
Into  the  Elk  Hills  situation,  discovering  fac- 
tors worthy  of  your  attention. 

The  question  of  naval  oil  reserves  Is  fraught 
with  danger  to  any  government  particularly 
In  light  of  the  "Teapot  Dome  Scandal  and 
questions  which  would  Inevitably  arise  con- 
cerning opening  up  and  exploitation  of  such 
resources.  A  recent  report  by  the  General 
Accounting  Office  entlUed,  "Capability  of  the 
Naval  Petroleum  <St  OU  Shale  Reserves  To 
Meet  Emerngecy  Oil  Needs,  '  estimates  value 
of  proven  recoverable  resources  owned  by 
the  Navy  in  this  reserve  at  a  minimum  of 
$2  6mUllon. 

It  Is  publicly  proposed  to  open  up  Elk  Hills 
to  production  of  at  least  160  000  barrels  of 
oil  daUy.  Shell  Oil  Company  isjTrely  foreign- 
owned,  possesses  a  five  yea.-  contract  to  pur- 
chase all  current  and  pri.'Jected  production 
from  that  Reserve  at  a  price  based  on  aver- 
age current  posted  prices,  '.argely  tJiroughout 
California  by  She!!  and  Standard  Ou  of  Cali- 
fornia. Under  such  a  contract,  which  I  have 
a  copy  of.  If  massive  production  Is  Instituted, 


will  SheU  not  benefit  in  the  form  of  windfall 
profits?  Unless  any  new  production  Is  let 
out  lor  bids  to  Independents  under  open  bid- 
ding, what  Is  to  prevent  Shell  from  ciauning 
all  new  production?  Further,  who  couid  or 
would  compete  with  SheU  m  such  a  situation? 
There  are  no  storage  facilities  at  Eli  Hills,  so 
any  production  must  be  sold  and  moved  Im- 
mediately. What  Is  to  prevent  an  Alaska 
North  Slope  sltxiatlon  from  developir^,  when 
a  consortium  of  major  oU  companies  Joined 
together  to  o.Ter  bids?  Suppose  their  bid  Is 
far  below  market  prices? 

This  oU  must  be  marketed  -apon  extrac- 
tion. Only  a  pipeline  assures  this.  It  is  my 
understanding  that  the  only  pipeline  leading 
out  of  Elk  HUls  and  from  the  reserve  to 
market  are  owned  entirely  by  two  major  oil 
companies:  Standard  OU  of  California  and 
Atlantic  Richfield.  There  Is  a  strong  possi- 
bility that  Shell  could  take  tiUe  to  Elk  Hills 
production.  Immediately  transferring  it  to 
the  majors  owning  existing  pipelines,  in  ex- 
change for  a  portion  of  their  profits  to  l>e 
derived  from  its  sale.  Additionally,  SheU 
coiUd  receive  other  payment  In  form  of  sub- 
BUntlal,  equal  allocations  of  oU  from  any 
other  majors  Involved,  at  SheU  refineries  in 
other  locations.  Such  tradeoffs  are  common 
between  major  oU  companies  and  have  been 
consistently  termed  practices  In  reslxalnt  of 
trade. 

When  the  SheU  contract  was  advertised 
and  the  Invitation  for  bid  was  put  out,  bid- 
ders were  required  to  provide  prior  certifi- 
cation of  assured  transportabUlty.  The  solB 
method  of  transport  available  at  the  time 
was  through  the  Standard  Oil  of  California 
or  other  private  carrier  lines.  Was  the  Navy 
aware  then  there  was  a  strong  posslbUltv 
of  prior  arrangement  between  SheU  and 
Socal  for  use  of  the  line?  Could  this  not  be 
termed  coUtislon,  especiaUy  because  both 
SheU  and  Socal  emerged  as  the  prime 
bidders? 

Vse  of  a  private  carrier  line  means  sale  of 
oil  to  the  carrier  when  it  enters  the  pipeline. 
If  Elk  HUls  is  opened.  Shell  will  be  able  to 
transfer  the  major  share  of  Navy  oU  pro- 
duced In  any  crisis  to  Socal.  Socal  wlU  be 
able  to  seU  It  for  what  the  market  wUl  bear, 
or  to  another  private  carrier  yielding  a  sub- 
stantial profit.  Is  this  in  the  taxpayers  In- 
terest? 

Involvement  of  private  carrier  lines  in  such 
a  context  means  a  posslbUlty  of  price  ar- 
rangement between  the  majors  In  question. 
One  small  bidder,  Pirtia  Refining  Co..  was,  I 
have  discovered,  rejected  in  bidding  because 
of  lack  of  transportation  facUltlei!.  Certalnlv 
examination  of  the  Invitation  for  bid  and 
the  transcript  of  proceedings  on  bld-lettlng 
Is  In  order.  In  light  of  the  fact  that  the  Jus- 
tice Department  was  supposed  to  review  such 
proceeding  thoroughly,  was  there  any  con- 
cern with  Investigation  of  possible  collusion 
and  antitrust  action?  Inexplicably,  no  ac- 
tion has  been  taken.  Now  both  companies  are 
In  line  to  profit  Immeasurably  from  a  nation- 
al emergency  at  taxpayer  expanse 

After  Teapot  Dome,  a  requirement  was  put 
through  under  PYesldent  Roosevelt  that  all 
contracts  respecting  any  Navy  oU  reserves 
must  be  reviewed  by  Justice  before  presenta- 
tion to  the  President  or  Armed  Services  Com- 
mittees of  each  House  of  Congress.  Existing 
contracts  and  government  concessions  to  In- 
dustry have  drastically  altered  the  vlabUlty 
of  several  of  the  reserves,  allowing  private  oU 
Interests  to  drain  away  oU  from  the  outside, 
while  In  some  ca.ses  draining  it  from  within  a 
reserve.  Why  has  Ju.stice  done  nothing  about 
what  seems  to  be  an  obvious  situation? 

Pricing  discrimination  and  artlficlaUy  low 
prices  for  state-owned  crude  oU  involving 
both  these  companies  and  their  posted  pric- 
ing are  presently  under  Investigation  In  Cali- 
fornia by  the  Joint  Committee  on  Public 
Domain  of  the  State  Aaeembly,  headed  by  J. 
Kenneth  Corey  i  D -Garden  Grove).  Domi- 
nance  by   Socal    and    SheU.   plus    questtona 


42518 


CONGRESSIONAL  RECORD  —  SEN  ATE 


surrounding  such  pricing  matte  their  posi- 
tion vls-a-vls  Elk  Hills  more  suspect  Com- 
pounding this  compromising  situation  Is  the 
fact  that  companies  involved  In  this  Investi- 
gation have  largely  refused  to  cooperate.  In- 
stead, they  are  attemptLng  to  enjoin  the  state 
legislature's  Investigation  of  their  pricing 
procedures,  refusing  to  surrender  requested 
■^    Information. 

Once  ariy  oil  comes  into  possession  of 
majors,  another  windfall  profit  could  accrue 
through  manipulation  of  posted  prices.  A  bid 
price  is  based  on  prices  posted  In  vicinity 
of  an  oil  field.  Nothing  can  prevent  majors 
Involved  from  merely  posting  prices  far  In  ex- 
cess of  what  Is  charged  today.  The  ongoing 
California  State  Assembly  Investigation  has 
discovered  that  free  market  prices  estab- 
lished by  open  bidding  were  found  to  dUTer 
by  *l.a5  per  btxrel  from  what  was  being  paid 
the  state  under  a  posted  contract  much  like 
that  Shell  enjoys  on  EHk  HUls.  showUig  they 
have  had  experience  in  manipulation  de- 
frauding the  state,  which  can  now  be  applied 
to  a  massive  defrauding  of  the  Federal  Oov- 
ernment.  To  prevent  unacceptable  profits  at 
public  expense,  the  Federal  Government 
should  Impose  limitations  in  form  of  an  ex- 
cess profits  tax  on  Elk  HUls  oil.  as  was  done 
In  World  War  II  to  prevent  profiteering  In 
an  emergency  Another  alternative  open  to 
government  Is  to  declare  private  carrier  pipe- 
line systems  leading  to  Elk  HUls  directly  to 
be  common  carriers  all  the  way  to  final  de- 
livery points  for  the  purpose  of  carrying  Eak 
HUls  oil  during  any  emergency.  I  stand  ready 
to  sponsor  any  legislation  you  might  seek 
to  Implement  these  objections. 

Another  windfall  profit  could  be  In  order 
for  Socal  If  Elk  HUls  Is  opened  up  for  any 
other  reason  than  national  defense.  A  unit 
plan  contract  is  presently  in  force  between 
the  Navy  and  Socal.  Socal  is  both  unit  and 
nonunlt  operator  of  this  field.  At  given  in- 
tervals, Socal  has  been  permitted  to  remove 
significant  quantities  of  oU  from  Elk  HUls 
under  agreement  with  government.  Through 
June  30.  1973.  Socal  owes  the  Navy  and  tax- 
payers approximately  »24.000.000  In  deferred 
payments  for  removals  in  production  and  cost 
balances  related  to  maintenance  and  de- 
velopment of  both  Navy  and  Socal  wells 
These  monies  are  owed  under  terms  of  an 
existing  contract.  Socal  has  been  allowed  to 
remove  approximately  25  million  barrels  of 
oU  from  the  field  as  payment  for  entering 
Into  the  contract  with  the  Navy  Socal  may 
be  able  to  claim  the  entire  contract  is  ended 
If  Elk  Hills  Is  opened  up  for  any  purpose 
other  than  mUltary  emergency  This  would 
not  only  forgive  the  •34.000.000  and  the  ob- 
ligation concemmg  the  25  million  barrels. 
but  would  leave  Socal  free  to  drain  U.S.  Oov- 
ernment  oU  from  the  reserve  through  adjoin- 
ing »-elIs  at  wlU. 

Alternatively,  even  if  the  contract  remains 
In  existence,  and  should  production  t>e 
opened  up.  Socal.  under  the  existing  con- 
tract, would  receive  somewhere  in  the  neigh- 
borhood of  22"^  of  all  production.  Any  capital 
exvw-ndltures  by  the  company  in  that  case 
would  be  deferred  in  terms  of  payments  to 
the  government  at  a  later  date  If  production 
is  set  at  160.000  barrels  dally,  as  has  been 
publicly  suggested  and  projected  and  the 
price  per  barrel  Is  M  60  based  on  todays  go- 
ing prices,  the  gross  wculd  come  to  »576.000 
dally.  At  least  H  15.000  per  day  would  go  to 
Socal.  This  comes  out  to  a  minimum  of  some 
•42.000,000  In  one  year;  hardly  a  pittance 

Another  point  concerning  the  Elk  HUls  Re- 
serve revolves  around  curious  actions  of  the 
Bureau  of  Land  Management  of  the  Interior 
Department.  Federal  regulations  prohibit  Is- 
suance of  oil  and  gas  leases  by  BLM  within 
a  mile  of  a  petroleum  reserve  boundary,  un- 
less the  lard  is  being  drstied  by  private 
operators  already  or  it  is  determined  after 


December  19,  1973 


consultation  with  the  Navy  that  the  R«aerve 
could  not  be  adversely  affected,  la  the  cases 
of  Teapot  Dome  and  Elk  HUls.  the  BLM 
Issued  such  leases.  At  Teapot  Dome.  BLM 
allowed  an  oil  company  to  drill  to  within 
50  feet  of  reserve  boundaries,  despite  pro- 
tests by  the  Navy  and  In  violation  of  regu- 
lations. This  policy.  I  am  informed,  began 
In  the  fifties,  when  BLM  allowed  the  first 
encroachments.  In  the  case  of  Elk  Hills,  the 
BLM  has  allowed  such  drllUngs  by  Socal  up 
to  ^  mUe  of  the  reserve  botindary.  where 
the  company  has  made  major  oU  strikes 
draining  off  Navy  oil  through  the  law  of  cap- 
ture and  significantly  Injuring  the  Reserve. 
In  self-defense,  as  was  the  case  In  the  Tea- 
pot Dome  situation.  Navy  has  been  forced  to 
undertake  offset  drilling,  extracting  Itirge 
quantities  of  oil.  Such  extractions  have  naade 
more  oil  available  to  Shell  under  Its  contract. 
Presumably.  Shell  must  have  marketed  such 
oU  through  the  Socal  pipeline,  the  major 
artery  leading  to  market  from  that  reserve 

The  other  day.  testimony  by  R.  O.  Roth- 
weU.  Deputy  Director  of  the  Logistics  &  Com- 
munications Division  of  the  General  Ac- 
counting Office  confirmed  what  I  had  esiab- 
llshed  by  independent  Investigations;  ques- 
tionable and  Ulegal  granting  of  permission 
to  drUl  for  oU  to  private  companies  nas 
damaged  and  depleted  two  of  four  Navy  oil 
reserves.  In  the  face  of  Navy  protests  In 
one  case  and  Navy  inertia  and  Inaction  in 
the  other,  the  Bureau  of  Land  Management 
has  allowed  Elk  Hills  and  Teapot  Dome  to 
be  harmed  It  seems  that  Teap)ot  Dome  has 
been  significantly  affected,  both  In  terms  of 
being  a  naval  oU  reserve  and  for  purpKJses  of 
relieving  any  emergency  situation  involving 
a  domestic  energy  crisis. 

The  far  richer  Elk  HUls  field  Is  In  the  proc- 
ess of  being  drained  by  such  Illegal  produc- 
tion, In  this  case  carried  out  by  Socal,  which 
would  directly  benefit  as  a  result  of  opening 
of  the  reserve.  In  this  case,  the  Bureau  of 
Land  Management  Is  also  the  major  culpable 
party.  The  Navy.  In  fact.  Is  currenUy  drUl- 
Ing  two  new  wells  at  Elk  HUls  to  offset  re- 
cently Initiated  additional  private  produc- 
tion next  to  the  reserve. 

A  major  investigation  of  the  Teapot  Dome 
Reserve's  status  Is  in  order  It  is  my  under- 
standing that  wells  there  are  not  capable  at 
this  point  of  major  production.  If  the  reaerve 
has  been  harmed,  we  have  a  second  Teapot 
Dome  scandal  of  serious  proportions.  An  In- 
tense Investigation  should  be  made  of  Ulegal 
drilling  presently  bemg  carried  on  in  the 
buffer  zone  around  Elk  Hills  by  Standard  OU 
of  California  under  BLM  auspices  We  can  no 
longer  Ignore  what  the  Oenerai  Accounting 
Office  revealed  alx>ut  this  state  of  affairs  last 
year 

Before  Elk  HUls  Is  opened  to  exploitation 
and  dratnlngs.  BLM,  oil  company  activities 
surrounding  the  reaerve  and  the  Teapot 
Dome  situation  should  and  must  t)e  carefully 
Investigated  and  the  results  be  made  publicly 
known.  If  wlndfaU  profits  have  alre«kdy  ac- 
crued to  major  oil  companies  and  more  such 
are  in  the  offing,  we  should  know  before  fur- 
ther steps  are  taken.  I  assure  you.  sir,  of  my 
willingness  to  cooperate  with  you  Ui  pro- 
tecting the  public  Interest. 
Sincerely. 

John  E.  Moss. 
Member  of  Congress. 

Mr.  CANNON.  Mr.  President,  I  ask 
unanimous  consent  that  the  response  to 
Mr.  Moss'  letter  to  the  President,  dated 
Novemiaer  6,  1973.  from  Jack  L.  Bowers, 
Assistant  Secretary  of  the  Navy  for  In- 
stallations and  Logistics,  be  printed  at 
thLs  point  in  the  Record. 

There  being  no  objection,  the  letter 
was  ordered  to  be  printed  In  the  Record, 
as  follows: 


DKPAJtTMXirr  OF  thx  Navt. 
Wathinffton,  D.C..  November  8. 1973. 
Hon.  John  E.  Moss, 
House  of  Representatives. 
Washington,  DC. 

DxAM  M«  Moss:  The  President  has  asked 
that  I  reply  to  your  letter  of  October  16.  1978, 
in  which  you  state  your  ocnoern  about  energy 
shortages. 

You  may  be  assured  that  everyone  having 
any  responsibility  for  the  Naval  Petroleum 
Reserves  Is  aware  of  the  necessity  to  prevent 
any  repetition  of  problems  such  as  gave  rise 
to  "Teapot  Dome."  That  experience,  however. 
ahoTild  not  be  allowed  to  Inhibit  necessary, 
proper,  and  legitimate  transactions  relating 
to  the  Naval  Petroleum  and  OU  Shale  Re- 
serves. 

You  have  outlined  many  areas  which,  with- 
out remedies  or  careful  surveillance  would  be 
matters  of  serious  concern.  We  would  like 
to  outline  some  of  the  provisions  cf  the  stat- 
ute under  which  the  Reserves  are  operated 
and  the  existing  contracts  which  have  and 
wUl  provide  protection 

Much  of  your  concern  Involves  the  contract 
currently  held  by  Shell.  This  contract,  for 
purchase  of  production  from  Elk  HUls.  would 
not  provide  any  wlndfaU  to  Shell  In  the 
event  of  production  authorized  by  new  ac- 
tion of  the  Congress  SecUon  1(d)  of  the 
SheU  contract  provides  that  such  newly  au- 
thorlaed  production  wUl  be  available  for  other 
disposition  Independent  of  SheU's  right  to 
purchase,  upon  ten  days'  notice. 

Transportation  of  production  from  Elk 
Hills  does  present  a  problem  However,  in 
addition  to  the  two  existing  pipelines  owned 
by  SOCAL  and  Atlantic  Richfield.  Getty. 
SheU.  Texaco,  and  Union  do  have  plpeUne 
faculties  In  the  area  which  probably  can  be 
extended  to  the  Elk  HUls  field  In  a  short  time 
and  at  moderate  expense  Representations 
have  also  recently  been  made  by  certain  In- 
dependent refineries  of  their  confidence  in 
being  able  to  take  large  quantity  delivery  by 
truck.  In  addition,  however,  the  Navy  will 
take  other  measvues  to  ensure  that  equal 
opportunity  is  presented  to  all  potential  buy- 
ers regardless  of  their  outright  ownership  of 
delivery  faculties  and  terms  of  sales  will  be 
reviewed  by  the  Justice  Department. 

In  the  routine  sales  of  relatively  minor  test 
production  from  Elk  HlUs,  assurance  of  the 
abUlty  of  any  purchaser  to  take  delivery  has. 
Ui  the  past,  been  a  conditional  factor.  The 
bid  that  you  mentioned,  involving  Pima  Re- 
finery Company,  was  found  nonresponslve  be- 
cause of  failure  and.  In  fact,  refusal  of  that 
bidder  to  specify  what  arrangements,  such 
as  exchange  arrangements,  would  be  made 
for  tran^KJTtatlon  as  required  by  the  Invi- 
tation for  bids.  The  Shell  bid  and  that  of 
Mohawk,  another  successful  bidder  for  a  por- 
tion of  the  production,  were  reviewed  by  the 
Navy  Judge  Advocate  General,  the  Depart- 
ment of  Justice,  both  the  House  and  Sen- 
ate Armed  Services  Oommlttees,  and  were  ap- 
proved and  signed  by  the  President  of  the 
United  States.  No  phase  of  the  transaction 
was  deemed  to  be  collusive  or  to  offer  any 
suggestion   of  antitrust  violations. 

Certainly,  sale  of  Naval  Petroleum  Reserves 
production  at  the  highest  price  obtainable 
benefits  the  taxpayer  On  the  other  hand, 
manipulation  of  prices  by  the  oil  companies 
could  not  be  condoned  WhUe  this  matter  Is 
stUl  under  Investigation  by  the  Department 
of  Justice,  no  evidence  of  such  manipulation 
has  yet  come  to  light. 

The  unique  position  of  Standard  OU  Com- 
pany of  California  as  owner  of  the  fee  of 
part  of  the  lands  In  Elk  HUls  Reserve  needs 
to  be  kept  In  proper  perspective.  'WhUe  the 
existing  agreement  was  formed  In  June  19. 
1944,  rather  than  Incur  the  huge  expense  of 
condemnation  of  Standard's  holdings  as  Is 
authorized.  If  necessary,  by  statute,  the 
Navy  persuaded  Standard  to  commit  Its  land 


December  19,  1978 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42519 


to  a  Unit  giving  control  of  the  rale  and 
amount  ot  production  to  Navy.  The  oil  which 
Standard  has  been  permitted  to  remove  from 
the  reserve  Is  a  smaU  fraction  of  its  own  oU. 
Under  the  terms  of  the  Unit  Plan  Contract, 
In  the  event  of  production  for  national  de- 
fense under  Joint  resolution  of  the  Congress, 
the  Unit  Plan  Contract  wUl  remain  In  effect. 
Standard  would  receive  a  part  of  the  In- 
creased production  to  which,  again,  It  Is  en- 
titled as  owner.  With  respect  to  the  deferred 
costs  which  Standard  currently  owes  Navy, 
the  balancing  provision  of  the  contract  wUl 
come  into  play  so  that  Standard  wlU  receive 
much  less  than  its  normal  share  until  Its 
sharing  of  costs  with  the  Navy  comes  Into 
balance  with  production  It  has  received. 

We  believe  that  production  from  Elk  HlUs 
Is  required  in  the  interest  of  National  De- 
fense since  the  Armed  Services  are  currently 
unable  to  purchase  requu^d  amounts  of 
peUoleum  products.  If  it  were  rxiled  that  na- 
tional defense  did  not  require  this  produc- 
tion, a  new  contract  would  be  negotiated 
with  Standard.  As  mentioned  above,  the  ex- 
isting statute  provides  the  alternative  of 
condemnation  of  the  Standard  OU  Lands. 

The  wells  currently  being  drUled  by  Navy 
on  the  North  Flank  of  Elk  Hills  are  not  for 
offset  but  for  the  purpose  of  gaining  neces- 
sary Uiformatlon  as  to  whether  production 
by  Standard  on  Its  own  land  adjoining  the 
reserves,  not  leased  public  lands,  threatens 
the  reser^e  from  drainage.  If  the  indications 
prove  negative.  Standard's  production  will 
be  determined  as  tinrelated  to  the  reserve. 
If  the  facts  do  indicate  a  threat  of  draUi- 
age.  Navy  has  the  contractual  right  to  enter 
Into  negotiation  and  bring  these  lands  Into 
the  Unit.  i 

Buffer  zones  around  the  Naval  Petroleum 
Reserves  established  by  the  Department  of 
Interior  pertain  to  public  lands  otherwise 
available  for  leasing.  They  offer  no  control 
over  private  lands  owned  In  fee.  The  admin- 
istration of  such  btiffer  zones  around  both 
Elk  HUls  and  Teapot  Dome  has  presented 
complex  problems  from  time  to  time  in  bal- 
ancing the  public  Interest  In  protection  of 
the  reserves  with  the  equally  valid  public  In- 
terest In  placing  public  lands  not  connected 
with  reserves  In  production  under  lease  to 
private  enterprise.  The  net  resiUt  of  these 
problems  and  their  solutions  have  not  in 
fact  resiUted  in  damage  to  the  Resenes.  The 
Teapot  Dome  Reserve  Is  Intact  and  fully  pro- 
tected and  has  a  present  production  capacity 
of  2.200  B/D  utilizing  existing  faculties.  With 
further  development,  the  reserve  would  be 
capable  of  delivering  15,000  B.'D  within  a 
two  year  period. 

Should  Congress  approve  the  recommenda- 
tion of  the  President  and  authorize  oU  pro- 
duction from  Elk  mils,  the  Shell  contract 
will  be  put  aside  and  the  oU  sold  by  com- 
petitive bid  plvlng  fair  opportunity  to  all. 
We  win  seek  wa\-s  for  Interested  companies 
to  have  available  means  of  delivery  The 
awards  will  be  reviewed  by  the  Navy.  Justice, 
and  the  Armed  Services  Committees  Stand- 
ard OU  will  be  allowed  to  take  delivery  of 
their  fair  share  of  oil  in  proportion  to  thetr 
ownership  The  reserve  Is  and  has  been  pro- 
tected by  statute  and  re.sultlng  contracts  and 
If,  as  In  the  ra.se  Df  the  crrrent  new  well 
drUIed  by  Standard  OU  we  should  determine 
there  Is  connection  with  re.'»erve  oil.  rem- 
edle.s  are  available  It  Is  Imperative  that 
In  the  ci  rrent  energ-v  crisis  we  consider  the 
use  of  all  assets  .ind  we  believe  Elk  HUls 
can  help  Thank  you  for  reviewing  with  us 
the  i>otentlal  problems.  We  assure  vou  that 
due  regard  is  being  given  to  each  We  appre- 
ciate your  willingness  to  cooperate  In  the 
public  Interest. 
Sincerely. 

Jack  L.  Bowzsis, 
Assistant  Secretary  of  the  Navy,  Installa- 
tions and  Logistics. 


Mr.  CANNON.  Mr.  President.  I  ask 
unanimous  consent  to  have  printed  in 
the  Record  a  letter  from  SUndard  Oil 
of  California  to  the  Honorable  Charles 
M.  Tkagtte,  dated  November  3,  1973,  re- 
sixjnding  to  a  number  of  issues  that  have 
been  raised. 

There  being  no  objection,  the  letter 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 

Standard  On.  Co.  of  California, 
San  Francisco,  Calif.,  November  3,  1973. 
Hon.  Charlks  M.  Teagux, 
House  of  Representatives, 
Washington,  DC. 

Dear  Mr.  TKAOtn:  You  have  requested  the 
comments  of  my  company,  St«mdard  OU 
Company  of  California,  as  to  the  letter  of 
October  18.  1973,  from  Representative  Moas 
of  California  to  the  President  with  regard  to 
his  proposal  for  a  limited  open-up  of  Naval 
Petroleum  Reser\-e  No.  1  (Elk  HUls  I  for  a 
limited  period,  and  Representative  Moss"  re- 
marks to  the  House  when  he  had  a  copy  of 
his  letter  inserted  in  the  Conghsssional 
Rkcord  on  October  24,  1973. 

We  are  happy  to  oblige. 

I  shall  discuss  first  my  company's  par- 
ticipation la  the  development  and  operation 
of  Elk  HUls.  and  secondly  the  current  dis- 
position of  oU  therefrom  Including  the  con- 
tract with  Shell  OU  Company  which  Rep- 
resentative Moss  mentioned. 

We  are  not  Involved  In  the  Teapot  Dome 
Reserve,  also  mentioned  In  Representative 
Moss'  letter. 

I  BhtUl  not  discuss  Representative  Moes' 
general  and  Inflammatory  remarks  auout  the 
oU  Industry,  except  to  say  that  we  disagree 
with  them  In  every  particular,  and  that  they 
are  Irrelevant  to  the  President's  proposal 
with  regard  to  Elk  HUls. 

CREATION    OF    THX    RESERVB 

As  you  may  know,  Naval  Petroleum  Re- 
serve No.  1  was  established  In  1912  and  Is  lo- 
cated In  the  Elk  HlUs  In  Kern  County,  Cali- 
fornia. At  the  tvirn  of  the  century,  govern- 
ment lands  in  the  West  were  rapidly  being 
turned  over  to  private  ownership.  At  the 
same  time  there  was  a  growing  realization 
of  the  importance  of  oil  for  the  Navy,  which 
was  then  changing  from  coal  to  oil  burning 
ships.  Accordingly.  President  Taft  withdrew 
large  tracts  of  potentially  oU-bearlng  public 
lands  in  California  and  Wyoming  from  ell- 
glbtUty  for  private  ownership,  and  In  1912 
set  aside  Naval  Petroleum  Reserve  No.  1  by 
Executive  order. 

A  good  many  sections  of  the  lands  covered 
by  this  Executlvp  order  had.  however,  already 
passed  Into  prl^te  ownership.  In  accordance 
with  the  government's  policy  of  the  time. 
WhUe  the  Executive  order  establishing  the 
resene  governed  the  further  use  and  dis- 
position of  the  government  lands  Included 
In  the  reserve.  It  had  no  effect  on  the  prl- 
vately-owned  lands  so  included,  and  the 
owners  of  those  lands  remained  free  to  use 
them  or  dispose  of  them  as  thev  saw  fit. 

In  1944  there  were  approximately  44.000 
acres  of  land  within  the  reserve.  Of  these 
approximately  one-fi.'th  were  pr:vate!y  owned 
in  fee  by  my  company.  Standard  OU  Com- 
pany of  California,  and  the  remainder,  or 
approximately  f  >ur-flfThs.  were  owned  by  the 
United  Stat*,-;  and  administered  by  the  Navy. 
The  Standard  land-;  ^xere  and  are  not  aU  In 
one  block,  but  are  checkerboarded  through- 
out the  reserve 

Also,  by  1944  three  geologic  "zones"  under- 
lying the  reserve  known  to  be  commercially 
productive  of  oil  and 'or  gas  had  been  dis- 
covered. These  are  the  Dry  Gas  Zone,  the 
Shallow  OU  Zone,  and  the  Stevens  Zone. 

Within  the  Shallow  OU  and  Stevens  Zones 
are   several   separate   oU   pools  or  reservoirs. 


These  underlie  both  Navy  and  Standard  lands 
within  the  reserve,  and  production  from  the 
lands  of  one  could  reduoe  the  amount  of  oU 
underlying  the  lands  of  the  other,  with  the 
result  that  the  government's  policy  of  con- 
serving its  oil  in  the  ground  untU  needed  in 
time  of  emergency  could  not  be  effectively 
Implemented  U  Standard  were  to  produce 
from  Its  own  lands  as  it  had  the  right  to 
do.  For  this  reason,  in  the  years  prior  to 
World  War  n.  Standard  did  not  develop  Its 
lands  within  the  reserve  to  the  extent  that  It 
woiold  otherwise  unquestionably  have  done. 
On  the  threshold  of  World  War  11.  and 
with  the  threat  of  the  condemnation  of 
Standard's  underdevelofted  lands,  active  ne- 
gotiations begin  either  for  an  exchange,  pur- 
chase or  condemnation  of  Standard's  lands 
within  the  reserve,  or  for  thetr  operation  as  a 
unit  with  Navy's  lands.  A  purchase  or  ex- 
change woiUd  have  required  a  substantial 
expenditure  by  the  government.  As  an  alter- 
native arrangement,  Navy  and  Standard 
agreed  to  operate  all  of  the  lands  within  the 
reserve  as  a  unit,  and  on  June  19,  1944,  en- 
tered Into  a  Unit  Plan  contract  for  the 
reserve. 

THE    XrSTT    PLAN    CONTRACT 

A  Unit  Agreement  Is  an  arrangement,  com- 
mon m  the  petroleum  Industry,  under  which 
the  owners  of  two  or  more  separate  parcels 
of  land  in  a  common  pKwl  or  field  agree  to 
operate  all  the  lands  overlying  the  pool  or 
field  as  a  single  unit,  and  to  share  production 
and  costs  In  agreed-upon  proportions.  Such 
an  arrangement  Is  usually  for  the  life  of  the 
field  and  the  parties  have  the  same  objective. 
I.e..  to  produce  currently  at  minimum  ex- 
pense smd  at  maxim vun  rates,  consistent  with 
good  engineering  practice. 

The  Unit  Plan  contrE«:t  here  Involved,  how- 
ever. Is  tin  usual  because  Its  long-range  pur- 
pose (after  certain  emergency  production 
during  World  War  11)  Is  not  to  produce  cvir- 
rently  but  to  conserve  In  the  ground  aa 
much  of  the  oU  In  the  field — both  Navy's  and 
Standard's — as  Is  feasible,  untU  needed  for  a 
future  emergency.  This  required  Standard  to 
agree  to  the  curtailing  of  Its  production  from 
Its  lands,  along  with  that  of  Navy  from  Its 
lands,  once  World  War  II  was  over,  for  which 
Standard  was  entitled  to  compensation.  Ac- 
cordingly, the  parties  agreed  that  in  con- 
sideration for  Standard  giving  up  control 
over  the  development  and  operation  of  ita 
lands.  Standard  would  be  allowed  to  take 
certain  quantities  of  Shallow  OU  Zone  oU. 
most  of  which  were  produced  during  World 
War  11,  untU  Standard  had  received  26  mU- 
llon  barrels  of  oU,  or  an  amount  equal  to  14 
(one-third)  of  its  share  of  the  estimated 
recoverable  oU  In  the  Shallow  OU  Zone, 
whichever  was  less — all  of  which  production 
was  charged  to  Standard's  share  of  the  oU  in 
the  Shallow  OU  Zone.  TTie  f>criod  during 
which  Standard  received  this  oil  Is  referred 
to  in  the  Unit  Plan  contract  as  the  "primary 
period."  After  the  primary  period,  produc- 
tion was  to  stop,  except  to  the  extent  neces- 
sary to  cover  Standard's  out  of  fxxiket  ex- 
penses In  connection  with  the  op^eratlon  of 
the  reserve,  and  except  for  production  for 
the  purpose  of  protecting,  conserving,  main- 
taining and  testing  the  reserve. 

Provision  was  also  made  for  exploration 
and  developmer;t  and  for  the  drUllng, 
eqT.;lppi!ig  and  mamteiiance  of  »-el!s  In  the 
reserve  so  that  it  could  be  produced  upon 
short  notice  In  the  event  of  a  national 
emergency.  It  is  a  truism,  of  course  tliat  -  nee 
tril  wells  are  drilled  they  must  be  ln!:pec-oed 
and  tested  periodically  to  make  sure  that 
they  still  retain  their  capacity  to  prrxiuce 

Incidentally,  the  Unit  Plan  contract  for 
Elk  Hills  was  submitted  to  and  appiroved 
by  both  the  House  and  Senate  .^.rrned  Serv- 
ices Committees,  was  specifically  author- 
teed  by  an  Act  of  Congress  adopted  in  1944. 
and  after  execution  by  the  Secretary  of  the 


42520 


CONGRESSIONAX  RECORD  —  SENATE 


December  19,  1978 


Navy    was    approved    by   President   Pr&aklln 
D.  Rooeevelt. 

TH»    AMDfOATOBT     UTV    8TTPPLKMKWTA1. 
AGRXKMXjrr 

Alter  the  Unit  Plan  contract  was  entered 
Into,  exploration  within  the  reserve  showed 
that  part  of  a  Stevens  Zone  pool  extended 
outside  the  reserve.  There  was  no  mechanism 
provided  in  the  Unit  Plan  contract  for  drlll- 
tng  outside  the  reserve,  however,  to  deter- 
mine how  far.  Accordingly.  In  December  1948 
Navy  and  Standard  entered  Into  an  amenda- 
tory and  supplemental  agreement  which  pro- 
vided In  Part  n  'or  exploration  Jointly  by 
the  parties  of  lands  of  both  Navy  and  Stand- 
ard in  a  "propoeed  extended  area"  outside 
the  northwest  boundaries  of  the  reserve,  and 
for  the  Inclusion  under  unit  operation  (down 
to  and  Including  the  Stevens  Zone)  of  any 
lands  found  to  be  commercially  productive 
of  oil  from  any  pool  or  pools  then  productive 
within  the  then  existing  boundaries  of  the 
reserve.  Under  this  amendatory  and  supple- 
mental agreement  certain  additional  Navy 
and  Standard  lands  were  Included  within 
the  Unit,  and  Standard  received  an  exten- 
sion of  the  "primary  period"  as  considera- 
tion for  the  Inclusion  of  its  lands. 

Again,  the  1948  amendatory  and  supple- 
mental agreement  was  submitted  to  and  ap- 
proved by  the  Hoxise  and  Senate  Armed 
Services  Committees,  and  wsis  approved  by 
the    President   of   the   United   States. 

PRODUCTION  TAKXN  BT  STANDASO 

In  other  words.  2S  to  30  years  ago,  as  a 
consideration  for  giving  up  its  control  over 
Its  own  privately  owned  and  proven  oU  lands 
at  Elk  Hills,  which  Standard  had  a  clear 
right  to  develop  and  produce,  Standard  was 
permitted  to  take  a  certain  quantity  of  oil 
from  the  reserve,  most  of  which  would  in 
all  probability  have  been  produced  anyway 
In  the  World  War  11  emergency,  and  »iX  ot 
which  was  charged  solely  to  Standard's 
overall  share  of  oil  in  the  Shallow  OU  Zone, 
thus  depleting  Standard's  share  in  that  zone 
while  leaving  Navy's  share  of  the  oil  \ia- 
touched  and  intact  in  the  ground. 

Since  that  time,  the  oniy  oU  which  Stand- 
ard has  received  from  Elk  Hills  has  been  In 
strict  compliance  with  the  Unit  Plan  con- 
tract and  has  been  produced  at  the  direction 
of  Navy  for  the  purpose  of  protecting,  con- 
serving, maintaining  or  testing  the  reserve — 
including  oU  produced  to  test  the  readiness 
wells  referred  to  above— or  to  reimburse 
Standard  for  Its  out-of-pocket  coets  in  the 
reserve — the  latter  on  the  theory  that  it 
would  be  grossly  unfair  to  require  Standard 
not  only  to  forego  the  development  and  op- 
eration of  Its  own  proved  oil  lands  at  Elk 
Hills,  but  to  stiffer  a  net  out-of-pocket 
monetary  Ices  in  so  doing 

Representative  Moos'  statement  ttiat  "at 
given  Intervals.  Soc*l  has  been  permitted  to 
remove  significant  quantities  of  oU  from  Elk 
Hills  under  agreement  with  government" 
must  therefore  be  read  In  the  light  of  the 
above 

Further.  I  cannot  a^ree  with  Representa- 
tive Moss'  statement  that  "another  windfall 
profit  could  be  In  order  for  Socal  If  Elk  Hills 
Is  opened  up  .  ,  .."  whether  for  national  de- 
fense or  otherwise.  So  far  as  t  ki:.ow,  no  one 
has  seriously  suggested  that  Standard  re- 
c«lve4  an  undue  or  unfair  consideration  for 
giving  up  control  over  Its  fee  lands  at  Qk 
HUU  when  It  was  permitted  35  to  30  years 
ago  to  take  a  quantity  of  oil  which  was  going 
to  be  produced  anyway  all  of  which  was 
charged  solely  to  Standard's  agreed  share  of 
the  oil  In  the  field  and  not  in  any  way  to 
Navy's  share  Since  then  Standard  has  ad- 
hered to  Its  agreement  with  the  govemmeat 
regarding  Elk  Hiila  and  lu  oil  as  well  as 
Navy's  oU  has  been  kept  shut  up  In  the 
ground  with  the  exception  of  the  relatively 
minor  quantities  noted  above  To  say  that 
Standard  wovUd  receive  a  "windfaU"  because 
Standard  would  now  be  able  to  produce  and 


take  an  additional  quantity  of  Its  own  oil.  If 
the  government  concludes  that  the  national 
Interests  require  that  Elk  HUls  be  opened  up, 
strikes  me  as  grossly  unfair  and  prejudicial 
to  my  Company. 

NO  posBiBiLrrT  or  btakdaxo  CAMcmifa  thx 

Wrt    PLAN    CONTRACT 

Incidentally,  there  Is  no  danger  of  the 
existing  Unit  Plan  contract  for  the  govern- 
ance of  Elk  HUls  being  unilaterally  termi- 
nated by  Standard  because  of  an  open-up  by 
the  government  which  otherwise  follows  the 
provisions  of  the  Unit  Plan  contract,  no  mat- 
ter what  the  purpose  of  the  open-up  may  be, 
and  we  are  prepared  to  give  the  government 
any  needed  assurances  on  this  point. 

THX   OPKRATION   OF  THX  KXSmVX 

Subject  to  the  provisions  of  the  Unit  Plan 
contract.  Navy  was  given  exclusive  control 
over  the  exploration,  prospecting,  develop- 
ment and  operation  of  the  reserve.  Navy  was 
also  given  the  right  at  its  discretion  to 
operate  the  reserve  directly  with  Its  own  per- 
sonnel or  to  contract  for  such  operation. 
Navy  entered  into  a  contract  with  Standard 
for  Standard  to  operate  the  reserve,  and  since 
that  time  has  entered  into  two  subsequent 
operating  agreements  with  Standard. 

Each  of  these  operating  agreements  has 
also  been  approved  by  the  House  and  Senate 
Armed  Services  Committees,  and  by  the 
President  of  the  United  States. 

THE     WOaKINO     OF    THX     TTNTT     PLAN     CONTEACT 

Under  the  Unit  Plan  contract  all  explora- 
tion, prospecting,  development  and  produc- 
ing operations  on  the  reserve  were  placed 
under  the  supervision  and  direction  of  an 
operating  committee  cooiprLsed  of  two  petro- 
leum engineers,  one  to  be  appointed  by  and 
represent  Standard  and  one  to  be  appointed 
by  and  represent  Navy.  In  order  to  provide 
technical  advice  and  to  make  certain  speci- 
fied determinations  based  upon  petroleum 
engineering  data,  an  engineering  committee 
was  also  established,  consisting  of  the  mem- 
bers of  the  operating  committee  ex  officio 
and  four  other  petroleum  engineers  or  geol- 
ogists, two  to  be  appointed  by  and  repre- 
sent Navy,  and  two  to  be  appointed  by  and 
represent  Standard. 

The  "percentage  participations"  of  the  par- 
ties In  each  productive  zone  within  the  Elk 
Hills  Unit  were  fixed  as  of  November  30.  1943, 
and  are  to  be  revised  retroactively  from  time 
to  time  In  the  light  of  new  knowledge  gained. 
Generally,  as  to  each  zone,  production  Is  to 
be  shared  by  the  parties  currently  In  accord 
with  their  then  existing  participating  per- 
centages, and  costs  are  to  be  paid  currently 
m  accord  with  receipts  of  production.  Be- 
cause of  the  special  provisions  of  the  Unit 
Plan  contract,  however — e.g..  the  provision 
that  Standard  was  to  be  permitted  to  take 
World  War  U  producUon,  up  to  15.000  barrels 
per  day,  (to  be  charged  to  its  share  of  the 
Shallow  OU  Zone  oil)  during  the  "primary 
period" — It  was  Inevitable  that  the  parties 
from  time  to  time  would  become  "out  of  bal- 
ance" with  their  participating  percentages 
both  In  oil  received  and  costs  paid.  In  addi- 
tion, any  retroactive  revision  of  the  par- 
ticipating percentages  of  the  parUes  in  a 
given  zone  will  automatically  place  the  par- 
ties "out  of  balance'  In  that  eone  Accord- 
ingly, the  parties  provided  for  certain  "catch- 
up" mcchanisais  and  provided  that  at  the 
end  of  the  life  of  each  zone  there  should  be 
an  appropriate  cash  adjustment  to  effect  an 
ultimate  balancing  of  production  and  coets 
with  final  participating  percentages. 

It  is  because  of  these  special  provisions 
that  Standard  Is  at  the  mocnent  behind  In 
coets  and  ahead  In  oil  to  the  extent  of  ap- 
proximately »34,000.(X».  as  Repreeentatlve 
Moss  notes.  However,  Standard  does  not 
"owe"  this  amount  to  Navy,  as  Representa- 
tive Moss  says,  or  Indeed  any  amount.  On 
an  open-up.  Standard  would  be  required  to 
reduce  its  take  of  production  to  ^  of  its 
participating  percentage  share  (which  would 


work  out  to  be  about  13  percent  to  14  per- 
cent) until  oil  balance  occurs,  and  then  to 
increase  Its  share  of  current  cost  payments 
until  cost  balance  occurs.  Tou  can  see,  there- 
fore, that  In  overall  operation  the  Unit  Plan 
contract  is  a  fair  one,  and  does  not  favor 
Standard  at  the  expense  of  Navy  or  the 
United  States. 

DRIIXINO    ABOUND    PCXIPHZXT    OF    RCSXXVX 

Lastly.  I  should  like  to  comment  on  Rep- 
resentative Moss'  statements  with  regard  to 
drilling  by  my  Company  around  the  periph- 
ery of  the  reserve 

In  his  remarks  to  the  House,  Representa- 
tive Moss  said  "federal  regulations  prohibit 
Issuance  of  oU  and  gas  leases  by  BLM  within 
a  mile  of  a  naval  i>etroleum  reserve  bound- 
ary Over  Navy  protests  and  In  violation  of 
such  a  rule,  the  BLM  Issued  such  leases 
around  and  adjacent  to  the  Elk  HUls  reserve 
to — by  sheer  coincidence — Standard  OU  of 
California,  which  proceeded  to  drill  a  well 
within  1  mile  of  the  reserve  boundary  and.  by 
luck  and  accident.  I  am  sure,  hit  major  oil 
strikes."  Representative  Moes  adds  that  "this 
has  resulted  in  significant  drainage  of  oil 
pools  under  the  Elk  HlUs  reserve."  and  refers 
to  "Socal's  Illegal  drilling  near  the  Elk  Hills 
boundary"  Bssentlallv  the  same  statements 
are  repeated  m  Representative  Moes'  letter 
to  the  President 

Repreeentatlve  Moss  has  been  misinformed. 
The  BLM  has  not  Issued  any  leasee  adjacent 
to  or  within  1  mile  of  the  reserve  to  Standard 
OU  Company  of  CtUlfornla,  over  the  protests 
of  Navy  or  otherwise  Standard  does  hold 
two  government  leases  on  the  South  Plar.k 
of  Reserve  No.  1  issued  to  another  company 
In  1930.  which  company  was  acquired  by 
Standard  In  1943.  Both  leases  are  In  the 
Buena  Vista  Hills  field  within  Reserve  No.  2, 
however,  which  field  has  been  produced  oom- 
merclsJly  by  numeroiis  owners  and  leasees 
ever  since  Its  discovery  and  development 
around  1910  Further,  m  1955  the  BLM  Issued 
a  government  lease  outside  the  northwest 
corner  of  the  Reserve  No.  1  to  American  Marc. 
Inc.  In  1965  and  1966  Standard  acquired  this 
lease  by  assignment.  Later  It  drUled  several 
wells  thereon,  the  closest  of  which  was  over 
\  ot  a  mile  from  the  Hk  HUls  Unit  Some 
of  these  weUs  were  and  are  productive  from 
a  Eone  not  known  to  be  productive  within 
the  Unit.  Three  w^ls  penetrated  a  zone  (not 
a  pool)  which  Is  known  to  be  productive 
within  the  Unit,  and  were  shut  In  By  agree- 
ment between  Navy  and  Standard,  a  well  was 
then  drUled  to  this  eone  approximately  half 
way  between  Standard's  wells  and  the  bound- 
ary of  the  Elk  HUls  Unit,  and  proved  to  be 
not  commercially  productive  Clearly,  then, 
none  of  these  wells  of  Standard's  can  be  said 
to  be  draining  or  Injuring  the  Unit 

Standard  does  own  outright  a  siihetantial 
amount  of  land  around  the  periphery  of  the 
reserve  As  part  of  our  stepped-up  explora- 
tion program  undertaken  to  help  tUlevlat* 
the  growing  shortage  of  petroleum  and  petro- 
leum products  In  California,  we  drilled  as 
exploratory  weU  earlier  this  year  r^^.  »  ^.-. 
tlon  of  otir  own  fee  land  Just  oiit«id»>  the 
northern  boundary  of  the  reserve  Since  the 
well  was  drilled  on  our  own  fee  land,  outside 
the  reserve.  It  cannot  possibly  be  characteiw 
Iced  as  "Ulegal  ••  The  weU  was  successful,  and 
discovered  a  new  and  productive  fxxjl  of  oil. 
Present  indications  are  that  the  pool  dosa 
not  extend  within  the  reserve  We  have  sivea 
aU  the  Information  on  our  well  to  the  ►-"t. 
emment.  however,  and  If  It  should  i-ir-.  >xx% 
that  the  pool  does  extend  within  the  rtw^rve, 
the  government  has  ample  authority  to  pro- 
tect It.  and  we  would  fully  expect  It  to  do  soi. 
DiBPoarnoN  of  oovxa.'ncKNT  on.  from 

ELK    RILI^ 

RepreaenUUve  Moss'  fear  that  SheU  OU 
Company  wlU  reap  "windfall  profits  "  if  El» 
HUls  U  opened  up  as  the  President  has  pro> 
posed  seems  to  me  to  be  unjustified.  While 
It  Is  true  that  Shell  has  a  contract  executed 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42521 


In  May  1970.  to  purchase  Navy's  unit  pro- 
duction at  Elk  HlUs  for  a  period  of  five  years 
under  Article  IX  thereof  the  contract  Is 
terminable  at  will  by  either  party  on  six 
months'  notice  to  the  other.  SheU  Is  there- 
fore not  In  a  position  to  "claim  aU  new  pro- 
duction," as  Representative  Moss  fears. 

As  to  how  and  to  whom  the  new  produc- 
tion going  to  Navy  might  be  sold,  the  Direc- 
tor of  Naval  Petroleum  Reserves  can,  of 
course,  give  you  the  facts  better  than  we  can, 
but  I  do  know  that  In  past  years  Navy's 
production  from  the  Elk  Hills  area,  both 
within  and  ouuide  the  Unit  operation,  has 
been  sold  at  various  times  to  WUshlre, 
Douglas,  Mohawk,  RothschUd  and  Edglngton. 
In  each  case.  Navy  has  offered  the  oU  for 
bidding  on  the  open  market,  and  companies 
desiring  to  purchase  the  oU  may  add  a  bonus 
over  and  above  the  posted  prices  for  com- 
parable oil  produced  from  other  fields  In  the 
vicinity.  And  In  each  case,  the  purchaser  has 
had  no  difficulty  in  getting  the  oU  out  of 
the  field,  and  disposing  of  It  or  utUlzlng  it  as 
he  saw  fit. 

Incidentally,  Navy's  non-unit  production 
in  the  Elk  HUls  area  Is  presently  going  to 
the  Mohawk  Petroleum  Company,  I  under- 
stand. 

CONCLUSION 

In  view  of  the  developing  energy  shortage 
In  this  country.  It  seems  to  me  undeniably 
In  the  national  Interest  that  the  President's 
proposals  for  dealing  with  that  shortage  re- 
ceive a  fair  and  objective  hearing  by  aU  con- 
cerned. Accordingly,  we  very  much  appreciate 
your  Interest  In  the  facts  with  regard  to 
Elk  HUls,  and  hope  that  the  above  wiU  assist 
you  In  your  inquiry. 
RespectfuUy, 

L.  T.  Vicx. 

Several  Senators  addressed  the  Chair. 

Mr.  MANSFIELD.  Mr.  President,  I 
ask  unanimous  consent  that  there  be  an 
additional  10  minutes  for  the  purpose  of 
allowing  the  Senator  from  New  Hamp- 
shire and  the  Senator  from  Illinois  to  ask 
questions  within  that  period,  and  at  the 
end  of  that  time  the  yeas  and  nays  be 
called. 

The  PRESmiNQ  OFFICER.  'Without 
objection.  It  is  so  ordered. 

Mr.  McINTYRE.  Mr.  President,  I 
would  like  to  ask  the  Senator  from  Ne- 
vada: Of  the  160,000  barrels  a  day  will 
78  percent  of  that  go  to  the  defense 
forces  of  this  country? 

Mr.  CANNON  The  Senator  Is  correct. 
Twenty-two  percent  of  that  production 
of  160.000  barrels — when  It  reaches  that 
volume  and  that  will  take  a  period  of 
time — will  go  to  Standard  Oil  under  the 
unit  plan  agreement.  However,  there  is 
a  credit  in  behalf  of  the  United  States. 
The  unit  plan  contract  calls  for  a  pay 
back  to  the  Government  before  SoCal 
draws  the  22  percent  Until  this  payback 
is  fulfilled  SoCal  will  receive  about  7  per- 
cent of  production.  But  the  78  percent 
will  go  to  the  U.S.  Oovemment  and  It  will 
not  make  up  the  deficit  now  being  pro- 
posed under  the  Defense  Production  Act 
on  the  civilian  economy,  which  is  300,000 
barrels  a  day. 

Mr.  McINTYRE  'What  the  Senator 
from  Nevada  is  talking  about  and  what 
the  Senator  from  California  is  talking 
about  with  respect  to  the  22  percent 
comes  from  a  prior  agreement  with 
SoCal 

Mr.  CANNON.  Standard  Oil  of  Cali- 
fornia owned  lands  in  this  reserve  when 
It  was  established  and  this  plan  was 
worked  out  so  that  they  agreed  not  to 


pump  for  the  Government's  benefit.  They 
have  the  right  to  22  percent  of  the  oil 
pumped,  and  the  Government  the  re- 
maining 78  percent.  It  is  estimated  that 
for  1  year  it  will  not  use  up  more  than 
6  percent  of  the  estimated  known  re- 
serves in  Elk  Hills.  The  most  conserva- 
tive estimate  we  have  received  in  testi- 
mony was  that  that  reserve  would  have 
17  to  18  years  remaining  after  that  1 
year  of  use. 

Mr.  McINTYRE.  I  thank  the  manager 
of  the  bill. 

Mr.  STEVENSON.  Mr.  President,  will 
the  Senator  from  Virginia  yield? 

Mr.  WILLIAM  L.  SCOTT.  I  yield 

Mr.  CRANSTON.  Mr.  President,  ■will 
the  Senator  yield  first  for  a  unanimous- 
consent  request? 

Mr.  STEVENSON.  I  yield. 

Mr.  CRANSTON.  Mr.  President.  I  ask 
unanimous  consent  that  Ann  Rav.  of  my 
staff,  may  have  the  privilege  of  the  floor 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  STEVENSON.  Mr.  President,  I 
have  to  speak  as  strenuously  as  I  can 
against  the  consideration  of  this  bill 
at  this  time.  We  have  not  had  a  chance  to 
debate  this  matter  on  the  floor.  I  have 
not  had  a  chance  to  read  the  report  of 
the  Committee  on  Rules  and  Adminis- 
tration. There  are  many  questions.  We 
cannot  answer  them  all  or  debate  them 
under  this  time  agreement. 

I  do  not  know  that  all  Members  of  the 
Senate  know  that  at  this  moment  SoCal 
is  being  sued  by  the  U.S.  Oovemment 
for  drilling  this  reserve,  and  under  this 
agreement  It  would  become  the  opera- 
tor of  the  reserve.  I  do  not  know  what 
happens  to  fimds  placed  in  escrow.  They 
are  apparently  for  Reserve  No.  4  I  think 
we  do  realize  that  Mr.  Clements,  the  Dep- 
uty Secretary  of  E>efense.  has  plans  for 
private  exploration  and  development  of 
Petroleum  Reserve  No.  4.  That  means 
that  funds  from  the  balance  of  the  oil 
can  be  used  for  the  benefit  of  major  oU 
companies,  which  mav  end  up  developing 
Petroleum  Reserve  No.  4.  A  conservative 
estimate  is  that  33  billion  barrels  are 
Involved.  Captain  Trunds  says  there  may 
be  as  much  oil  in  Petroleum  Reserve 
No  4  as  has  been  proven  In  the  Mideast 

Mr.  Wn.T.TAM  L.  SCOTT  Mr.  Presi- 
dent, will  the  Senator  yield'' 

Mr  STE\^t:NSON.  I  yield 
Mr  WILLIAM  L.  SCOTT  The  distin- 
guished Senator  from  Nevada  is  chair- 
man of  the  Committee  on  Rules  and  Ad- 
ministration. 'While  he  Is  here  today  In 
his  capacity  as  chairman  of  the  subcom- 
mittee of  the  Committee  on  Armed 
Service.';,  the  Subcommittee  on  National 
Stockpiles  and  Petroleum  Reserves  i?  the 
subcommittee  that  considered  the  legis- 
lation now  before  us.  and  the  full  Com- 
mittee on  Armed  Services. 

Mr  STIEVENSON  I  thank  the  Sen- 
ator for  that  Inadvertence  on  my  part. 
Mr  Pre':ldent.  I  shall  conclude  where 
I  began  Mv  point  is  that  the  Senate 
is  in  no  position  to  seriously  consider  this 
bill.  We  have  had  no  debate.  Most  of  us 
have  haul  little  or  no  opportunity  to  read 
the  report.  Many  questions  have  not  been 
considered  and  were  not  fully  considered 
in  the  Committee  on  Armed  Services. 
That  is  what  I  am  told.  Many  questions 


were  raised  this  morning  in  the  Commit- 
tee on  Commerce.  As  a  member  of  that 
committee  I  have  not  had  a  chance  to  re- 
view this  matter. 

What  is  the  urgency?  What  difference 
does  it  make  if  the  matter  is  approved 
tonight  or  tomorrow  morning?  We  would 
be  better  off  if  we  had  a  chance  to  study 
this  bill.  On  the  basis  of  the  hearings 
this  morning  I  see  a  similar  pattern  de- 
veloping as  developed  in  connection  with 
Teapot  Dome.  Elks  Hill,  and  it  wiU  go  on 
to  Alaska.  It  would  be  prudent  to  defer 
consideration  of  this  matter  and  I  hope 
the  leadership  u-ill  reconsider  its  imanl- 
mous-consent  request. 

Mr.  CANNON.  Mr.  President,  I  simply 
point  out  to  my  distinguished  colleague 
that  his  charge  about  the  suit  of  Stand- 
ard OU  is  completely  misrepresented. 
This  is  a  privat«  action  to  determine  the 
rights  of  whether  or  not  a  well  drilled 
outside  of  the  reserve  by  Standard  on 
their  own  land  should  be  included  with- 
in this  reserve.  There  is  a  provision  for  in- 
clusion of  lands  within  the  reserve.  That 
is  the  sole  determination.  At  the  present 
time  we  do  not  know  whether  it  is  such 
that  it  should  be  included.  It  would  be 
Included  if  It  is  draining  the  reserve. 
That  matter  is  covered  in  the  hearings 

I  would  point  out  that  it  is  the  sub- 
committee of  the  Committee  on  Armed 
Ser\ices  that  has  jurisdiction  over  the 
stockpile,  and  we  are  the  committee  that 
considered  this  matter.  We  considered- 
all  these  charges  that  have  been  made 
by  the  various  people.  We  made  a  good 
record. 

It  would  be  very  difficult  to  explain  to 
the  people  of  this  country  why  we  did 
not  use  for  defense  purposes  naval  pe- 
troleum resen-es  and  left  them  in  the 
ground  when  we  had  the  opportunity  to 
use  them  and  alleviate  part  of  the  short- 
age the  country  will  face  shortly.  'When 
people  find  themselves  unable  to  heat 
their  homes  or  drive  their  cars  I  am  sure 
they  will  not  appreciate  Congress  say- 
ing, "Let  us  keep  those  petroleum  re- 
serves in  the  ground  and  sit  on  them 
and  not  develop  them,  and  take  an  or- 
derly procedure  to  develop  them." 

We  do  not  know  the  extent  of  Petrole- 
um Reserve  No  1,  but  by  all  estimates  It 
is  over  1  billion  barrels,  and  further  ex- 
ploration consen-atively  speakmp.  mav 
produce  another  400  million  barrels. 
There  is  still  more  development  work  to 
do.  We  feel  it  is  incumbent  upon  Con- 
gress to  act  responsibly. 

Mr.  President,  how  much  time  do  I 
have  remaininp? 

The  PRESIDING  OFFICER.  The  Sen- 
ator has  1  minute  remaining 

Mr.  CANNON.  The  hearings  address 
themselves  to  the  questions  raised.  The 
answers  are  given  by  the  respective  wit- 
nesses, and  the  cfflcial  position  of  the 
company  that  is  in  partnership  with  the 
Government  to  the  extent  of  22  percent 
Had  the  unit  plan  not  been  .'■eached  by 
the  Navy  and  SoC&l.  the  Navy  had  two 
alternatives;  they  could  have  let  Stand- 
ard pump  and  drill  that  resen-e  as  they 
saw  fit,  or  they  could  have,  used  the  con- 
demnation process,  and  been  willing  to 
pay  for  Standard  Oil's  22  percent  of  the 
then  known  1  billion  barrels  of  oil  at  a 
great  cost. 


J2522 


CONGRMHOKAL  RECORD  — StNATt 


Mr.  CRANSTON.  Mr.  President  wUI 
the  Senator  yield? 

Mr.  CANNON.  Mr.  President,  I  yield 
the  remainder  of  my  time  to  the  Senator 
from  California. 

Mr.  CRANSTON.  Mr  President,  I 
merely  want  to  say  that  I  have  been 
aware  of  these  charges.  I  have  explored 
them  to  the  best  of  my  ability,  and  so  has 
my  staff.  I  know  the  committee  has 
looked  Into  them  thoroughly.  They  had 
numerous  witnesses  and  asked  each  wit- 
ness these  questions.  The  committee  Is 
satisfied  that  the  charges  are  without 
merit. 

I  would  like  to  point  out  that  the  meas- 
ure has  an  escape  clause  oo  c^age  10  line 
11,  in  which  it  is  stated; 

No  authority  contained  in  secUons  4  &Dd 
5 — 

Which  are  the  key  auth<>rlzlng  pro- 
visions—  \ 
may  be  exercised  until  (1)  — 

The  PRESIDINO  OFFICER.  The  time 
of  the  Senator  has  expired. 

Mr.  CRANSTON.  May  I  have  half  a 
minute? 

The  PRESIDING  OFFICER.  Is  there 
objection  to  the  extension  of  time?  With- 
out objection.  It  is  so  ordered 

Mr.  CRANSTON.  I  contmue  to  read— 
"the  Attorney  General  has  prepared  and 
submitted  to  the  Committees  on  Armed 
Services  of  the  Senate  and  the  House  of 
Representatives  a  report  describing  the 
rights,  duties,  and  obligations  of  the 
United  States  and  any  other  party  or 
parties  having  any  contractual  or  other 
interests  in  Naval  Petroleum  Reserve 
Numbered  1.  and  (2)  fourteen  days  have 
elapsed  after  the  submission  of  such  re- 
port to  such  committee." 

n  there  is  any  merit  to  ani'  of  these 
charges  or  any  new  allegations  are 
raised,  this  provision  provides  time  for 
the  Armed  Services  Committees  to  inves- 
tigate before  any  production  can  com- 
mence. 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  committee 
amendment  In  the  nature  of  a  substi- 
tute. 

The  amendment  was  agreed  to 

The  PRESIDING  OFFICER.  The  ques- 
tion now  IS  on  the  engrossment  and  third 
reading  of  the  jomt  resolution. 

The  joint  resolution  was  ordered  to  be 
engrossed  for  a  third  reading,  and  was 
read  the  third  time 

The  PRESIDING  OFFICER.  The  Joint 
resolution  having  been  read  the  third 
time,  the  question  is.  Shall  it  pass'  On 
this  question  the  yeas  and  nays  have 
been  ordered,  and  the  clerk  will  caU  the 
roll. 

The  second  assistant  legislative  clerk 
called  the  roll. 

[The  Vice  President  assumed  the 
Chair  as  Presiding  Officer  1 

Mr  ROBERT  C  BYRD  I  announce 
that  the  Senator  from  North  Dakote 
'Mr  BiniDicK).  the  Senator  from  Idaho 
'Mr  Chttbch).  the  Senator  from  Missis- 
sippi 'Mr.  Eastland),  the  Senator  fnxn 
North  Carolina  'Mr  Ebvtn^  .  the  Senator 
from  Arkansas  iMr.  Fct.8iucht»,  the 
Senator  from  Al&xka  (lir  Gravid,  the 
Senator  from  South  Carolina  'Mr  Hol- 


LiHos) ,  and  the  Senator  from  Massachu- 
setts (Mr.  Kdcnbdt)  are  necessarily 
absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  Utah  (Mr.  Bkwk«tt>,  the 
Senator  from  Tennessee  'Mr.  Bbock). 
the  Senator  from  Massachusetts  (Mr! 
Brocks),  the  Senator  from  Idaho  (Mr. 
McCLtnn^ .  and  the  Senators  from  Ohio 
(Mr.  Saxbk  and  Mr.  Taft)  are  necessarily 
absent. 

The  Senator  from  New  Hampshire 
(Mr.  CoTToif)  is  absent  because  of  Illness 
in  his  family. 

If  present  and  voting,  the  Senator 
from  Ohio  (Mr.  Tatt)  and  the  Senator 
from  Texas  iMr.  Towih)  would  each 
vote  'yea  " 

Also,  the  Senator  from  Vermont  (Mr 
Aiken  ),  the  Senator  from  Oklahoma 
(Mr.  BxLUfOH),  the  Senator  fnxn  Ne- 
braska (Mr.  CcRTis),  the  Senator  from 
Arizona  'Mr.  Goldwatxr),  the  Senator 
from  New  York  (Mr.  JAvrrs),  the  Sena- 
tor from  Kansas  (Mr  Pe.arson)  the 
Senator  from  Illinois  (Mr.  Pe«ct>,  and 
the  Senator  from  Texas  (Mr.  Tower  )  are 
necessarily  absent. 

The  result  was  announced — yeas  67 
nays  10,  as  follows: 


[No.  606  Leg.) 

YEAS— 67 

Baker 

Hansen 

Nunn 

BarUett 

Hartke 

Pack  wood 

Bayh 

HaakeU 

Pastore 

BeaU 

Hatneld 

PeU 

B«ntsen 

HeUna 

Projunlre 

Bible 

Hniaka 

Randolph 

Buckley 

Huddleaton 

Rlblcoff 

Byrd. 

Hughes 

Roth 

Harry  P. 

Jr      Humphrey 

Schwelker 

Byrd.  Robert  C.  Inouye 

Scott,  Hugh 

Cannon 

Jackson 

Scott 

Caae 

Johnston 

WUllamL 

Cblles 

Long 

Spar  km  an 

Cook 

Bifagnuaon 

SUfford 

CranstoD 

Mansfield 

Stennia 

Dole 

Mathtaa 

Steven* 

Domenld 

UcClellan 

Symington 

Domlnlck 

McOee 

Talmadge 

Ea^leton 

Metcalf 

Thurmond 

Pannln 

Uontoya 

Tunney 

Pong 

Moss 

Welcker 

Orlffln 

Muakle 

Williams 

Oumey 

Nelaon 

NATS— 10 

Young 

Abouresk 

Hart 

Mclntyre 

Allen 

Hathaway 

Mondale 

BIden 

McOoTem 

Sterenaon 

Clark 

NOT  VOTINO— 23 

Aiken 

Curtis 

Kennedy 

Bellmon 

Eastland 

McClure 

Bennen 

Ervln 

Pearson 

Brock 

Pulbrtghi 

Percy 

Brooke 

Oold  water 

Saxbe 

Burdlck 

aravet 

Taft 

Church 

HolUngs 

Tower 

Cotton 

Javiu 

December  19,  197S 

MESSAGE  PROM  THE  HOUSE 

A  message  from  the  House  of  Repre- 
sentatives by  Mr.  Berry,  one  of  Its  read- 
ing clerks,  announced  that  the  House  had 
disagreed  to  the  amendment  of  the  Sen- 
ate to  the  bill  (H.R  620  >  to  establish 
within  the  Department  of  the  Interior  an 
additional  Assistant  Secretary  of  the 
Interior  for  Indian  Affairs,  and  for  other 
purposes. 


So  the  Joint  resolution  (8.J.  Res.  176) 
was  passed 

Mr.  CRANSTON  Mr.  President,  I  move 
to  reconsider  the  vote  by  which  the  Joint 
resolution  was  p€us.sed. 

Mr.  COOK  Mr  President,  I  move  to 
lay  that  motion  on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 

The  title  was  amended,  so  as  to  read: 
"Joint  resolution  to  authorize  and  direct 
the  development  of  and  the  production  of 
petroleum  from  Naval  Petroleum  Reserve 
No  1.  and  to  direct  the  exploration  of 
Naval  Petroleum  Reserves  Nos  1  and  4, 
and  for  other  purposes." 


AMENDMENT  OF  SMALL  BUSINESS 
ACT 

Mr.  CRANSTON.  Mr.  President,  I  ask 
the  Chair  to  lay  before  the  Senate  a  mes- 
sage from  the  House  of  Representatives 
on  S.  2482 

The  VICE  PRESIDE?^  laid  before  the 
Senate  the  amendment  of  the  House  of 
Repre.senUtives  to  the  bill  (S.  2482)  to 
amend  the  Small  Business  Act  which  was 
to  strike  out  all  after  the  enacting  clause, 
and  insert 

AtrTHOEBATIOir 

Sbction  1  Paragraph  ,  4 )  of  section  A  (a)  at 
the  Small  Business  Act  U  amended 

(1)  by  striking  out  "M,300,(XX).000"  and 
inserting  in  lieu  thereof  "M, 875, 000.000."; 

(2)  by  striking  out  •»500.(XX).(XX)"  where  it 
appears  in  clause  (B)  and  inserting  in  lieu 
thereof  "556.350,000"; 

(3)  by  striking  out  "»600,000,000"  where  it 
appears  in  clause  (C)  and  inserting  in  lieu 
thereof  "$5a6J50,000"; 

(4)  by  striking  out  •••360.000.000-'  and  In- 
serting In  Hen  "hereof  "$381.250,000 " 

Any  addltloniu  amounts  authorized  by  this 
Act  which  are  not  obligated  by  June  30.  1974, 
shall  no  longer  be  available  after  that  date! 

U)A1*    TO    KZXr    MCinjkTOBT    STANOABDS 

Sec.  2.  (a)  Section  7(b)(6)  of  the  SmaU 
Business  Act  Is  amended  to  read  as  fol- 
lows: 

"(6)  to  make  such  loans  (either  directly 
or  In  cooperation  with  ban>ts  or  other  lend- 
ing institutions  through  agreementa  to  par- 
ticipate on  an  Immediate  or  deferred  basis) 
as  the  Admlnlstratk  n  may  determine  to  b« 
necessary  or  appropriate  to  assist  any  amall 
business  concern  in  affecting  additions  to 
or  alterations  in  its  plant,  facilities,  or  meth- 
ods of  operation  to  meet  requirements  im- 
posed on  such  concern  pursuant  to  any  Fed- 
eral law.  any  State  law  enacted  In  conformity 
therewith,  or  any  regulation  or  order  of  a 
duly  authorized.  Federal.  SUte,  regional,  or 
local  agency  Issued  .n  conformity  with  such 
Federal  law.  if  the  Administration  deter- 
mines that  such  concern  is  likely  to  suffer 
substantial  economic  injury  without  assist- 
ance under  this  paragraph:  Provided,  That 
the  maximum  loan  made  to  any  small  busi- 
ness concern  under  this  paragraph  shall 
not  exceed  the  maximum  loan  which,  under 
rules  or  regxilatlons  prescribed  by  the  Ad- 
ministration, may  ^e  made  to  any  business 
enterprise  under  paragraph  (1)  of  this  sub- 
section: and" 

(b)(1)  Section  7(b)(6)  of  the  Small  Busi- 
ness Act  U  repealed. 

(2)  Paragraph  (7)  of  such  section  7(b) 
is  redesigned  as  paragraph  (6) . 

(c)  Section  28(d)  of  the  Occupational 
Safety  and  Health  Act  of  1970  (Public  Law 
91-596)  Is  amended  by  striking  out  ■•7(b) 
(6)  •  and  Inserting  In  lieu  thereof  "7(b)  (5)" 
(d)  In  no  caae  shall  the  Interest  rat« 
charged  for  loans  to  meet  regulatory  stand- 
ards be  lower  than  loans  made  In  connection 
with  physical  disasters 

CONTOSMING    nCHNICAL    AMBNDMrKTS 

Sec  3  (a)  Subsection  (g)  of  section  7  of 
the  Small  Business  Act.  as  added  by  section 
3(b)   of  the  Small  Business  Investment  Act 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42523 


Amendments  of  1072,  is  redesignated  as  sub- 
section  (h). 

(b)  Subsection  (c)  of  section  4  of  the 
SmaU  Business  Act  la  amended  by  striking 
out  "7(b)"  each  place  It  appears  in  para- 
graphs (I)(B).  (2).  and  (4)  and  inserting  In 
lieu  thereof  ••7(h)". 
AtrTHoarrr  or  BicazTAST  or  agbiculttibi  wrrH 

U8PECT    TO    NATTTKAI,    DISASTOU 

Gmc.  4.  Notwithstanding  the  provisions  of 
Public  Law  93-24,  the  Secretary  of  Agricul- 
ture siiall  continue  to  exercise  his  authority 
with  respect  to  natural  disasters  which  oc- 
cvured  after  December  26,  1972,  but  prior  to 
April  20,  1973,  In  accordance  with  the  pro- 
visions of  section  6  of  Public  Law  92-^85  as 
such  section  was  In  effect  prior  to  April  20, 
1973, 

LnncsTOCK  loans 

SkC.  6.  Section  7(b)  (4)  of  the  SmaU  Busi- 
ness Act  Is  amended  by  Inserting  before  the 
semicolon  at  the  end  thereof  the  foUowlng: 
" :  Provided.  That  loans  under  this  paragraph 
Include  loans  to  persons  who  are  engaged 
In  the  business  of  raising  livestock  (includ- 
ing but  not  limited  to  cattle,  bogs,  and  poul- 
try), and  who  suffer  substantial  economic 
Injury  as  a  result  of  animal  disease". 

LOANS     rot     ADJCSTMENT     ASSIST  ANCX     IN     BA8X 
CLOSINGS 

Src  6.  Section  7(b)  of  the  Small  Business 
Act  Is  amended  by  adding  after  paragraph 
(6)  the  foUowlng  new  paragraph: 

"(7)  to  make  such  loans  (either  directly 
or  In  cooperation  with  banks  or  other  lend- 
ing Institutions  through  agreements  to  par- 
ticipate on  an  immediate  or  deferred  basis) 
as  the  Administration  may  determine  to  be 
necessary  or  appropriate  to  assist  any  small 
business  concern  In  contlntUng  In  business 
at  Its  existing  location.  In  reetabllshlng  its 
business.  In  purchasing  a  new  business,  or 
In  establishing  a  new  business  If  the  Admln- 
Itration  determines  that  such  concern  has 
suffered  or  wiu  suffer  substantial  economic 
Injury  as  the  result  of  the  closing  by  the 
Federal  Oovernment  of  a  major  military  In- 
stallation under  the  Jurisdiction  of  the  De- 
partment of  Defense,  or  as  a  result  of  a 
severe  reduction  In  the  scope  and  size  of 
operations  at  a  major  military  mstallatlon,". 

ANNUAL  RXPOBT  ON  STATE  OF  SMALL  BtTSINESS 

Sec.  7.  The  first  sentence  of  subsection  (a) 
of  section  10  of  the  SmaU  Business  Act  and 
the  first  word  of  the  second  sentence  of  such 
subsection  are  amended  to  read  as  follows: 
"The  Administration  shall,  as  soon  as  prac- 
ticable each  calendar  year  make  a  compre- 
hensive annual  report  to  the  President,  the 
President  of  the  Senate,  and  the  Speaker  of 
the  House  of  Representatives.  Such  report 
shall  Include  a  description  of  the  state  of 
email  buslne^ts  In  the  Nation  and  the  several 
States,  and  a  description  of  the  operations  of 
the  Administration  under  this  chapter,  in- 
cluding, but  not  limited  to,  the  general  lend- 
ing, disaster  relief.  Oovernment  regulation 
relief,  procurement  and  property  disposal, 
research  and  development,  technical  assist- 
ance, dissemination  of  data  and  Information. 
and  other  functions  under  the  Jurisdiction  of 
the  Administration  during  the  previous  cal- 
endar year  Such  report  shall  contain  rec- 
ommendations for  strengthening  or  Improv- 
ing such  programs,  or,  when  necessary  or  de- 
sirable to  Implement  more  effectively  con- 
gressional policies  and  proposals,  for  estab- 
lishing new  or  alternative  programs.  In  addi- 
tion, such". 

ANTIDISCBIMINATOBY    AMENDMENT 

S«c.  8.  Section  4(b)  of  the  SmaU  Business 
Act  Is  amended  by  adding  after  "The  Admin- 
istrator shaU  not  engage  In  any  other  busi- 
ness, vocation,  or  employment  than  that  of 
serving  as  Administrator."  the  following  new 
sentence:  "In  carrying  out  the  programs  ad- 
ministered by  the  Small  Business  Adminis- 
tration Including  Its  lending  and  guarante«- 


mg  functions,  the  Administrator  shall  not 
discriminate  on  the  basis  of  sex  or  marital 
status  against  any  person  or  smaU  business 
concern  applying  for  or  receiving  assistance 
from  the  SmaU  Business  Administration,  and 
the  Small  Business  Administration  shall  give 
special  oonsuferatlon  to  veterans  of  the 
Armed  Tgzo^s  of  the  United  SUtes  and  their 
survivors  or  dependents.". 

INrLUENClNO     or     SBA    DECISIONS 

Sec.  9.  The  SmaU  Business  Act  Is  amended 
by  inserting  at  the  end  thereof  the  foUowlng 
new  section; 

"Sec.  22.  (a)  No  Member  of  Congress  or  of- 
ficer or  employee  of  the  United  States  may 
attempt  to  Improperly  Influence  the  official 
conduct  of  any  officer  or  employee  of  the 
Administration  with  respect  to  the  entering 
Into  by  the  Administration  of  any  loan,  loan 
guarantee,  or  other  agreement. 

"(b)  For  purposes  of  subsection  (a),  the 
term  "Member  of  Congress'  means  a  United 
States  Senator,  a  Representative  In  Congress, 
a  Delegate  to  Congress,  or  the  Resident  Com- 
missioner from  Puerto  Rico. 

"(c)  Any  person  who  violates  subsection 
(a)  shaU  be  fined  not  more  than  SICOOO  or 
Imprisoned  for  not  more  than  one  year  or 
both. 

"(d)  Any  official  decision  of  any  officer  or 
employee  of  the  Small  Business  Administra- 
tion with  respect  to  which  any  violation  of 
subsection  (ai  occurs  Is  nuU  and  void." 

Sec.  10.  (a)  Section  3  of  Public  Law  93-24 
is  amended  by  striking  therefrom:  ",  and  are 
unable  to  obtain  sufficient  credit  elsewhere  to 
finance  their  actual  needs  at  reasonable  rates 
and  terms,  taking  into  consideration  prevail- 
ing private  and  cooperative  rates  and  terms 
In  the  community  in  or  near  which  the  ap- 
plicant resides  for  loans  for  simUar  purposes 
and  periods  of  time",  and  Insert  In  lieu  there- 
of the  foUowlng:  "Such  loans  shall  be  made 
without  regard  to  whether  the  required  fi- 
nancial assUtance  Is  otherwise  avaUable  from 
prtvate,  cooperative,  or  other  responsible 
sotuxes". 

(b)  The  provisions  of  subsection  (a)  of 
this  section  shaU  be  given  effect  with  respect 
to  all  loan  applications  and  loans  made  In 
connection  with  a  disaster  occurring  on  or 
after  AprU  20,  1973. 

(c)  With  regard  to  all  disasters  occurring 
on  or  after  Etecember  27,  1972,  the  Secretary 
of  Agriculture  shall  extend  for  ninety  days 
after  the  date  of  enactment  of  this  section 
the  deadline  for  seeking  assistance  under 
section  321  of  the  Consolidated  Farm  and 
Rural  Development  Act  as  amended  by  this 
section. 

(d)  Section  321(a)  of  Public  Law  87-128, 
as  amended,  is  hereby  amended  by  strilclng 
"which  cannot  be  met  for  temporary  i>erlod6 
of  time  by  private,  cooperative,  or  other  re- 
sponsible sources  (including  loans  the  Secre- 
tary Is  authorized  to  make  or  Izisurv  under 
subtitles  A  and  B  of  this  title  or  any  other 
Act  of  (Congress I.  at  reasonable  rates  and 
rlods  of  time".  The  provisions  of  this  sub- 
terms  for  loans  for  slmUar  purposes  and  pe- 
sectlon  shall  be  given  effect  with  respect  to 
all  loan  applications  and  loans  made  in  con- 
nection with  a  disaster  occurring  on  or  after 
December  27,  1972. 

Mr.  CRANSTON.  Mr.  President,  there 
are  two  minor  differences  between  the 
House  language  and  the  Senate-pa.'^ed 
bill.  The  first  is  acceptable,  in  my  view. 
It  provides  sufficient  increases — in 
SBA's  loan  celling.';  to  permit  the  agency 
to  operate  for  another  6  months  The 
Senate  measure  would  have  pro\-ided  a 
2-year  extension.  There  Is  a  second  dif- 
ference in  which  I  feel  I  cannot  concur. 
So  on  behalf  of  the  Senator  from  Texas 
(Mr.  TowKR^  the  ranking  minority 
member  of  the  Banking  Cominlttee  and 
myself,   move   U-iat  tlie   Senate   concur 


with  the  House  amendment  with  an 
amendment  which  I  send  to  the  desk 

The  VICE  PRESIDENT.  The  clerk 
will  report  the  amendment. 

The  second  assistant  legislative  clerk 
read  as  follows: 

strike  Section  9,  beginning  on  page  6  and 
ending  on  page  7. 

Mr.  CRANSTON.  Mr.  President,  I  have 
discussed  this  amendment  at  consider- 
able length  with  the  Senator  from  Tex- 
as and  I  join  with  him.  as  a  cosponsor. 
The  amendment  has  also  been  discussed 
with  all  of  the  concerned  parties  on  this 
side,  both  sides  of  the  aisle— mcluding 
Senators  Spahkman  Weicker.  Packwood. 
and  BiBLi,  all  of  whom  concur  m  the  rec- 
ommendation made  by  Senator  Tower 
and  myself— and  I  am  convinced  it  is  a 
necessarj-  amendment  at  this  point  I 
believe  that  the  House  will  be  willing  and 
able  to  agree  to  the  bill  with  this  amend- 
ment and  send  this  emergency  legislation 
to  the  President  for  signature. 

The  amendment  of  the  Senator  from 
Texas  would  strike  from  the  House 
amendment  section  9,  which  is  a  provi- 
sion which  was  added  on  the  House  side 
without  any  discussion  at  hearings  or  in 
subcommittee  in  that  body  and  which, 
of  course,  was  not  considered  at  the  hear- 
ings or  markup  In  either  subcommittee 
or  full  committee  on  this  side.  There  is  no 
House  committee  report  on  the  matter 
to  spelJ  out  the  purposes  of  the  amend- 
ment and  d<^al  wUh  it^  ambigiiities. 

The  House  provision  would  make  it  a 
criminal  offense  punishable  by  imprison- 
ment of  not  more  than  1  5'ear  or  a  $10,000 
fine,  or  both,  for  any  Member  of  Congress 
or  officer  or  employee  of  the  United 
States  to.  and  I  now  quote,  "attempt  to 
improperly  influence  the  conduct  of  anj- 
officer  or  employee  of  the  [Small  Busi- 
ness] Administration  with  respect  to  the 
entering  into  by  the  administration  of 
any  loan,  loan  guarantee,  or  other  agree- 
ment ■' 

ThLs  amendme.-,t  ha^  a  most  laudatory 
purpose — a  purpose  m  which  I  fully 
concur— lo  rest-ore  mt^grity  to  the  op- 
erations of  the  SBA  which  have  come 
under  such  a  dark  cloud  recentiv  How- 
ever, as  the  Senator  from  Texas  has 
indicated  in  our  discussions,  the  House 
amendment  has  many,  many  difficulties. 
Its  langToage  Is  extremely  vague,  and 
the  debate  in  the  other  body  was  both 
hazy  and  incomplete  as  to  the  intended 
scope  of  this  criminal  provision.  This 
problem  of  vagueness  is  seriously  ex- 
acerbated when  it  is  connected  to  a 
criminal  prohibition  Thus,  we  are  ad- 
vised that  the  language  oi  the  Hou<^ 
provision  is  of  dubiou.^  con.'^titutionality 
under  the  due  process  clause. 

.^.«  a  part  of  the  vagueness  of  the  lan- 
guage, there  appears  to  be  a  distinct  pa<- 
siblllty  that  thl.<;  provision  could  be  in- 
terpreted as  eliminating  any  effective 
congressional  oversight  of  the  SBA's 
operations.  The  Small  Business  Sub- 
committee, which  I  chair,  i.-:  engaged  at 
this  ver>-  inoment  in  ver>-  inten';i\e  over- 
sight of  SB.^  activities,  and  I  cannot  be- 
lieve that  it  would  be  in  any  way  In  the 
public  Interest  for  such  congressional 
scrutiny  to  be  barred. 
I  do  not  see  how  we  ran  take  such  a 


i2524 


CONGRESSIONAL  RECORD  —  SEN  ATE 


risk,  since  the  result  would  obviously  be 
totally  contrary  to  the  stated  intention 
of  the  House  provision. 

The  House  provision  also  would  retro- 
actively invalidate  any  loan  or  loan 
gxmrantee  or  other  agreement  entered 
into  in  connection  with  acUvlties  found 
to  violate  the  House  prohibition.  Such  a 
retroactive  invalidation  provision  adds 
more  complications  to  the  difBcultles 
already  expressed  in  terms  of  vagueness, 
by  imposing  a  threat  of  invalidation  over 
SBA  actions.  Such  a  threat  could  cause 
great  hardship  to  legitimate  SBA  loan 
recipients  who  would  be  unable  to  predict 
with  any  certainty  whether  a  particular 
loan  or  loan  guarantee  might  turn  out  to 
be  found  violative  of  the  criminsU  pro- 
hibition. 

There  has  been  no  opportunity  for  us 
to  secure  a  legal  opinion  as  to  the  scoije. 
impact,  and  imphcations  of  the  House 
provision  either  from  the  American  Law 
Division  of  the  Congressional  Research 
Service  or  from  the  Department  of 
Justice,  or,  indeed,  to  test  the  language 
of  the  House  provision  with  criminal  law 
or  constitutional  law  experts. 

If  indeed  the  policy  seemingly  set  forth 
in  the  "House  provision  is  a  desirable 
one — as  it  seems  to  be — there  seems  to  be 
no  justification  for  applying  it  only  to 
the  operations  of  the  SBA.  Certainly, 
numerous  other  Federal  agencies  engage 
In  a  dollar  volume  of  contracts,  grants, 
loans,  and  loan  g\iarantees.  far  In  excess 
of  the  SBAs.  U  such  a  provision  is  de- 
sirable and  can  be  clearly  drafted  so  as 
to  withstand  constitutional  scrutiny,  is 
there  any  reason  why  it  should  not  be 
applied  across  the  board  to  all  Federal 
loans,  loan  guarantees,  grants  and  con- 
tracts? 

We  have  an  emergency  measiire  here. 
The  authority  for  the  SBAs  operations  Is 
running  out.  and  I  do  not  see  how  we  can 
risk  the  well-being  and  livelihood  of  the 
thousands  of  small  businessmen  who  will 
depend  upon  this  program  next  year,  by 
trying  to  perfect  and  make  acceptable 
the  language  of  the  House  provision  in 
the  very  short  time  left  In  this  session. 
The  only  reasonable  course  of  action, 
therefore,  seems  to  be  to  delete  this  par- 
ticular House  language  and.  to  proceed  to 
examine  its  efficacy,  resolve  the  questions 
raised,  and  consider  appropriate  revisions 
in  an  atmosphere  removed  from  the  pres- 
ent emergency  situation. 

Mr.  BIBLE.  Mr.  President.  I  rise  to 
comment  upon  the  Small  Business 
Amendm.ents  Act.  S  2482.  This  biU  passed 
the  House  on  Monday.  December  17 
Sections  2  through  8  are  identical  with 
the  biU  pas.sed  by  the  Senate  earlier  this 
year. 

Section  1.  however,  haa  been  modified 
by  the  House  so  that  the  increases  in 
ceilings  for  various  Small  Business  Ad- 
ministration loan  categories  wiU  be  suffi- 
cient for  only  6  months,  rather  than  the 
Ln^^  provided  by  the  Senate-passed 
bUl.  The  reason  for  this  change  Is  that 
in  the  inlerun  an  intensive  investigation 
by  the  House  Banking  Committee  un- 
covered report.s  of  possible  mismanage- 
ment and  misconduct  In  some  of  BBA's 
field  offices. 

fv,3??u"°"'!  committee  apparently  felt 
that  there  should  be  a  complete  Investl- 


December  19,  1973 


gatlon  of  these  charges  before  Congress 
is  asked  to  approve  increases  in  authority 
for  the  remainder  of  the  2-year  period. 
I  believe  that  the  Judgment  of  the  com- 
mittee and  the  House  in  this  respect  are 
fully  supportable,  and  that  these  matters 
should  be  fully  looked  Into  before  action 
is  taken  for  2  years  into  the  future. 

I  wish  particularly  to  comment  on  sec- 
tion 2  of  the  bill  which  contains  au- 
thority for  so-called  com-liance  loans. 
This  section  will  consolidate  and  extend 

SBAs  authority   to  make  emergency 

disaster — loans  to  businesses  seeking  to 
comply  with  more  stringent  Federal  or 
federally  derived  standards  in  the  pol- 
lution, environmental,  health,  and  sani- 
tary fields. 

It  has  been  gratifying  to  work  on  this 
measure  with  the  distinguished  chair- 
man of  the  House  Banking  Committee, 
Mr.  Patman.  who  introduced  the  House 
companion  bill  resulting  in  identical  ver- 
sions of  section  2  in  the  House  and  Sen- 
ate-passed bills.  Representative  Pat- 
man's  wisdom  has  Improved  this  meas- 
ure at  several  points  over  the  years;  for 
instance,  in  limiting  the  amount  of  the 
permissible  loans  to  the  level  prevailing 
under  other  subsections  of  the  applica- 
ble 7ibi   of  the  Small  Business  Act. 

Commendation  is  also  due  to  the  Sen- 
ator from  New  Hampshire  <Mr.  McIn- 
TYRE>.  who  held  hearings  on  this  pro- 
posal in  1970  and  1971;  and  also  the  Sen- 
ator from  California  (Mr.  Cranston >, 
who  gave  a  sj-mpathetic  hearing  to  the 
present  tUl  and  guided  it  to  final 
passage. 

Small  businessmen  around  the  coun- 
try, and  the  Nation  as  a  who'e.  are  well 
served  by  these  distinguished  legislators, 
who  have  taken  their  time  to  keep  the 
foundations  of  our  economy  in  good 
repair. 

This  area  of  small  business  difficulty 
has  been  caused  by  our  entry  into  what 
has  been  called  the  consumer-environ- 
mental era.  One  of  the  series  of  laws 
signaling  the  arrival  of  this  new  era  was 
the  Wholesome  Meat  Act  of  1968.  which 
threatened  to  put  many  small  business 
meatpackers  out  of  business  under  its 
upgraded   standards   and   2-year   dead- 
line. In  May  of  that  year.  I  introduced  a 
resolution  calling  upon  the  Small  Busi- 
ness Administration  to  study  the  Impact 
of    that    bill    on    approximately    14.000 
small  processors  in  this  basic  industry. 
When    the    study    was    completed     It 
showed  that  only  about  half  the  funds 
needed    to    finance    the    improvements 
needed   to   effect  compliance   would   be 
available      from      private      commercial 
sources.  I  believe  that  we  should  recog- 
nize the  efforts  of  SBA  In  completing  this 
very  useful  survey,  which  served  as  a 
model  for  other  impact  studies  of  this 
kind  elsewhere  in  the  Government. 

Consideration  of  this  kind  led  to  my 
Introducing  S.  1750  in  April  of  1969  in 
order  to  provide  general  authority  for 
SBA  to  make  compliance  loans  so  that 
small  businesses  could  become  partners 
in  progress  rather  than  its  vlctinis.  Dur- 
ing the  intervening  years,  the  language 
of  S.  1750  was  applied  to  and  enacted  as 
to  six  specific  areas:  coal  mine  safety; 
occupaUonal  safety  and  health;  whole- 
some meat,  poultry  and  eggs;  and  watv 


poUuUon.  SBA  has  been  gradually  im- 
plementing this  authority,  and  I  believe 
that  more  than  200  businesses  have  been 
saved  from  closing  their  doors  by  loans 
of  this  kind. 

However,  other  areas  such  as  air  pollu- 
tion were  not  covered.  Also,  in  many 
.cases  small  firms  have  multiple  com- 
pUance  problems,  so  it  will  do  them  httle 
good  to  expend  their  capital  solving  one 
problem  if  another  would  put  them  out  of 
business. 

Now,  at  the  end  of  1973  the  general 
loan  provision  wUl  become  law  in  almost 
the  form  In  which  it  was  first  proposed. 
I  thank  the  Senate  and  the  House  for 
their  attention  to  this  matter  and  hope 
that  these  leans  may  benefit  many  small 
firms  and  employees  and  their  commu- 
nities in  every  State,  so  that  in  the  words 
of  the  Small  Business  Act,  we  may 
"strengthen  the  overall  economy  of  the 
Nation." 

The  VICE  PRESIDENT.  Without  ob- 
jection, the  motion  is  agreed  to 

Mr.  CRANSTON.  Mr.  President,  I 
move  to  reconsider  the  vote  by  which  the 
motion  was  agreed  to. 

Mr.  COOK.  I  move  to  lay  that  motion 
on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 

The  VICE  PRESIDENT.  What  is  the 
will  of  the  Senate? 


PETROLEUM  RESERVES 

Mr.  STEVENSON.  Mr.  President,  the 
petroleum  reserves  should  be  developed, 
and  developed  expeditiously,  for  the  ben- 
efit of  the  public.  But  that  is  not  the 
question.  The  question  is  whether  they 
will  be  developed  and  employed  for  the 
benefit  of  the  public  or  for  the  benefit 
of  the  major  oil  companies. 

That  is  not  a  question  that  we  were 
able  to  discuss  tonight.  I  regret  it;  I 
think  it  is  a  matter  of  such  importance 
that  it  warranted  and  deserved  the  full 
consideration  of  the  Senate. 

To  better  explain  the  issue,  since  I  did 
not  have  that  opportunity  tonight.  I  ask 
unanimous  consent  that  the  testimony 
of  Representative  John  E.  Moss  of  Cali- 
fornia before  the  Senate  Committee  on 
Commerce  this  morning  be  printed  in  the 
Record  at  this  point. 

There  being  no  objection,  the  testi- 
mony was  ordered  to  be  printed  in  the 
Record,  as  follows: 

Testimont     or     Representative     John     E. 
Moss,  or  Calitornu   Before   the   Senate 
CoMMxmcE  CoMMrmx.  Decxmber  19,   1973 
It  Is  a  pleasure  to  ai>p€ar  before  this  Com- 
mittee today  to  teatlfy  on  a  situation  I  be- 
lieve must  be  brought  to  public  attention 
before  it  Is  too  late  to  prevent  the  largest, 
most  succeasful  attempt  by  the  oU  Industry 
to  utilize  public  resources  for  private  gain. 
What  Is  worse,  as  the  outcry  mounts  over 
enerpy  shortages,  this  effort  stands  an  ever- 
Increasing  chance  of  suceedlng.   largely  be- 
cause few  are  reading  the  Hne  p.rlnt. 

Many  well  meaning  groups  and  Individuals 
ranging  from  mayors,  utilities  and  owners  of 
industry  to  labor  unions,  private  plane 
owners  and  heads  of  families  are  asking  that 
Navy  on  Reserves,  especially  Elk  HUls.  Cali- 
fornia, b«  opened  up  In  the  name  of  alleviat- 
ing shortages 

I  do  not  oppose  such  a  step.  If  It  can  be 
proven  that  these  reserves  will  make  a  dlf- 


December  19,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42525 


ference,  and  In  time  to  m&ke  life  aHlaC  Xor 
consumers  What  I  oppose  l£  openiai;>4Hm 
up  In  a  panic  situation,  and  by  so  doing 
allow  a  private  industry,  airwidy  accused  of 
causing  many  shorta^e.s,  u^  profit  vastly  at 
vlrtuaUy  no  risk  or  cc*t  to  it,self.  That  Is  the 
situation  surrounding  Elk  Hills,  as  I  perceive 
It  now. 

Elk  Hills  cortalns.  according  to  an  October 
6,  1972  study  by  t.he  Gener..l  Accounting 
Office,  a  minimum  of  13  bUllon  barrels  of 
low-suUur.  easily  extracted  oil.  Its  72 
aquAre  miles  are  located  16  miles  southwest 
at  Bakersfleld.  containing  some  1,050  wells, 
producing  approximately  2200  barrels  dally 
for  test  and  maintenance 

There  are  three  other  Nary  oU  reserves. 
Buena  Vista  HULs,  drained  steadily  over  the 
years.  Is  not  a  meaningful  element  in  our 
considerations  Teapot  Dome,  Wvomlng,  and 
Pet  Potir.  on  Alaska's  North  Slope,  do  figure 
In  them:  the  first  because  It  sets  the  stage 
for  an  attempt  to  grab  off  Elk  HlUs  and  the 
latter  because  It  is  the  main  course  In  a 
meal  of  lush  profits  the  oU  Industry  hopes 
to  cook  for  Itself  at  taxpayer  expense 

In  World  War  11.  Elk  Hiil.s  produced  up  to 
66.000  barrels  dally.  Teapot,  of  scandalous 
memory,  has  been  a  low  level  producer  over 
the  years.  Pet  Four,  large  as  Indiana,  is  not 
even  fully  explored  and  mapped.  Standard 
OU  of  California,  referred  to  as  80CAL.  owns 
approximately  20%  of  Elk  HUls.  having  re- 
tained ownership  because  government  did 
not  take  its  land  when  the  reserve  vstis  cre- 
ated. In  the  1940's,  when  Navy  moved  to  ac- 
quire land  In  the  reserve,  a  bitter  struggle 
developed,  ending  as  government  Imposed  a 
settlement  on  Industry.  Instead  of  taking 
over  private  holdings.  Navy  entered  Into  a 
"unitized"  agreement  with  80CAL.  covering 
their  Elk  Hills  holdings.  All  the  propertv  is 
operated  as  a  unit,  tying  Navy  and  company 
together  for  that  sole  purpose. 

In  theory,  these  reserves  are  to  be  opened 
only  In  case  of  armed  conflict.  Any  exploita- 
tion must  be  approved  by  resolution  of  both 
Houses  of  Congress.  Numerous  efforts  have 
been  mounted  over  the  years  to  open  these 
reserves.  In  each  case,  the  Armed  Services 
Committees  have  proved  effective  roadblocks. 
While  the  public  virtually  forgot  these  energy 
safety  deposit  boxes.  SOCAL  had  them  very 
much  In  mind,  even  maintaining  a  special 
EOk  Hills  group  within  the  company,  on 
which  highest  ranking  officials  served. 

Private  Interests  required  an  ally  within 
government,  finding  it  In  the  Department  of 
the  Interior,  which  today  virtually  operates 
as  an  adjunct  of  the  oil  industry  insofar  as 
these  reserves  are  concerned.  For  years,  that 
agency,  steadily  and  consistently,  has  sought 
to  encroach  on  these  reserves;  sometimes  by 
allowing  private  Interests  to  lease  and  drUl 
on  Federal  lands,  including  buffer  zones 
around  two  of  them.  Two  agencies  within 
Interior.  Bureau  of  Land  Management  and 
Geological  Survey,  have  consistently  allowed 
private  Interests  to  nibble  at  the  edges  of 
these  increasingly  valuable  reservoirs. 

Both  Elk  Hills  and  Teapot  Dome  have  been 
damaged  because  of  this  policy.  The  Justice 
Department  has  also,  by  both  action  and 
Inaction,  aided  and  abetted  this  state  of  af- 
fairs. Two  long-standing  Federal  regulations 
are  designed  to  prevent  encroachment  cm 
these  reserves,  specifically  prohibiting  leas- 
ing of  and  drilling  on  Federal  lands  within 
a  one-mile  buffer  zone  extending  outwards 
from  any  reserve  boundary.  Title  43.  Code  of 
Federal  Regulations.  31011  (a)  (6),  Lands 
voithin  one  mile  of  Naval  Petroleum  Reserves. 
governs  leasing,  and  Is  administered  by  the 
Bureau  of  Land  Management.  The  second, 
under  Title  30.  Part  221.20.  erects  a  200-foot 
prohibition  on  drilling  operations,  and  is  ad- 
ministered by  the  Survey. 

Two  documents,  which  I  submit  for  the 
permanent  hearing  record,  were  first  clues 
to  the  cumulative  effort  to  erode  viability 
of  the  reserves.  The  flr«.  an  October  5.  1972 


OAO  report,  titled:  "Capability  of  Nava! 
Petroleum  and  Oil  Shale  Resenes  v  Meet 
Emergency  Energri.  Needs  ■  deUneated  how 
private  oil  Interests  have  been  allowed  to 
drain  oU  from  around  boundaries  of  Teapot 
Dome  and  Elk  HUls,  At  Teapot.  It  shows  the 
situation  has  prevailed  sine*  1964,  growing 
progreaslvely  worse  despite  Navy  protests. 

Tbe  second  docoment.  dated  October  1. 
1973,  was  Issued  by  Navy  s  Office  of  Petroleum 
Reserves,  and  restates  and  reinforces  the 
OAO  report.  Here  is  an  exc*rpt : 

"In  the  fall  of  1954.  operators  on  the 
eastern  boundary  of  the  Reserve  obtained 
commercial  oU  production  from  the  Shallow 
Shannon  Sand  by  tise  of  the  then  new  oU 
production  technique  called  "sand  fractur- 
ing." This  a^aiu  opened  the  question  of 
drainage.  Operations  of  adjacent  operators 
were  placed  under  surveillance  and  data  were 
assembled  in  order  lo  permit  an  engineering 
study  of  the  problem.  Both  Geological  Survey 
and  Navy's  engineering  consultants  con- 
cluded drainage  from  the  Reserve  was  prob- 
ably occurring. 

"All  Information  obtained  Indicated  pro- 
duction was  necessary  to  prevent  drainage  of 
oU  from  the  reserve.  To  date  104  Shannon 
wells  have  been  drilled  to  protect  4'^  miles 
of  common  boundary. 

"Private  operators  on  the  northwest 
botmdary  of  the  reserve  initiated  a  secondary 
recovery  project  on  October.  1965  by  Injecting 
water  Into  portions  of  the  Second  Wall  Creek 
formation.  Offset  production  by  the  Navy  be- 
came necessary  after  efforts  to  persuade  pri- 
vate operators  to  change  their  flood  pattern 
faUed.  With  concurrence  of  another  govern- 
ment agency  (Geological  Survey) ,  private  op- 
erators drlUed  water  injection  wells  50  feet 
from  the  reserve  boundary  which  compelled 
Navy  to  commence  a  costly  offset  drilling  and 
producing  program  In  order  to  protect  the 
reserve  from  most  of  the  damaging  effects  of 
Invading  waters." 

Here  we  have  a  pattern  which  later 
emerged  at  Elk  HUls.  Because  of  peripheral 
drilling  and  drainage  over  Navy  protests, 
Navy  was  forced  to  drill  wells  it  did  not  want 
to  drlU  within  the  Reserve,  extracting  oU  It 
preferred  to  leave  in  the  ground.  OU  taken 
out  by  private  operators  was  sold  at  a  profit, 
on  extracted  by  Navy  was  sold  to  private 
Interests,  because  Navy  had  no  Immediate 
use  for  It. 

At  October  17  and  18  hearings  before  the 
House  Armed  Ser\-lces  Investigating  Subcom- 
mittee, this  Information  was  fiUly  developed. 
I  offer  this  report  for  Inclusion  In  the  record. 
Testimony  by  OAOs  R.  G.  RothweU  bore  out 
aU  findings,  stating: 

"Offset  production  Is  carried  out  at  Elk 
HlUs  and  Teapot  Dome  to  counteract  threats 
of  drainage,  reduced  pressures  or  flooding 
caused  by  production  of  oil  on  lands  adja- 
cent to  the  reserve." 

I  also  obtained  correspondence  between 
former  Navy  Secretary  BeUeu  and  both  Jus- 
tice and  Interior  Departments,  calling  atten- 
tion to  the  situation  and  protesting  inac- 
tion allowing  this  state  of  affairs  to  worsen. 
I  offer  this  material  for  the  record.  In  a 
June  4,  1965,  letter  to  the  Attornev  General, 
for  example,  BeLleu  sUtes  in  his  opening 
paragraph : 

"I  consider  it  advisable  that  I  Inform  you 
that  operations  now  being  conducted  by  pri- 
vate on  companies  holding  leases  on  public 
domain  lands  adjacent  to  Naval  Petroleum 
Reserve  No.  3  (Teaport  Dome)  pose  a  threat 
of  possible  Irreparable  damage  to  a  portion 
of  that  Reserve." 

Thereupon,  I  wrote  a  letter,  afterwards 
made  public  on  the  floor  of  the  House,  to 
the  President,  with  copies  to  the  Attorney 
General,  Secretary  of  Interior.  Secretary  of 
Defense  and  Secretary  of  Navy,  delineating 
the  situation  at  both  reserves,  and  asking  for 
a  complete  Investigation.  That  letter,  sent 
October  18.  has  elicited  a  reply  only  trom  an 
Assistant  Secretary  of  Navy,  denying  all  ac- 


'#lld  ass  irlTig  me 
that  conunur.i- 


cusatjons,  denigratlnc 
ajl  would  be  well.  I 
cation  in  the  record. 

One  humorous  footnote  emerged,  how- 
ever. In  the  form  of  an  outraged  letter  from 
Governor  Hathaway  of  Wyom;!i«;.  who  as- 
sured me  no  such  events  were  trarLspinng 
Unfortunately  for  the  Governor  he  was  kind 
enough  to  enclose  a  letter  from  his  State  O:: 
&  Gas  Supervisor,  one  Donald  Basko.  seeking 
to  disprove  these  facts  Baskti  generoii.v:y  :n- 
cluded  a  complete  listing  of  all  drainage  op- 
erations by  private  companies  their  produc- 
tion for  a  recent  mon-.h  and  compared  them 
to  Navy's  for  August  of  this  year.  I  include 
this  correspondence,  plus  my  r^ly,  which  In- 
cluded the  foUowlng  comments: 

The  Shannon  Case  Involved  MKM  Co 
The  Shannon  Case  involved  Amax.  a  sub- 
sidiary of  American  Metal  Climax  Amax 
received  an  exception  from  Geological  Sur- 
vey, allowing  It  to  violate  the  Federal  reg- 
tUatlon  over  Navy  protests,  and  to  driU  with- 
in 200  feet  of  the  Teapot  boundary.  In  the 
Shannon  Sand  Case,  from  December.  1958 
to  January.  1973.  24  million  barrels  of  oU 
have  been  taken  out  by  Navy  through  offset 
wells  and  disposed  of  through  Western  Crude 
Refining  Co.;  oil  the  Navy  woiUd  rather  not 
produce.  In  the  case  of  the  Second  Wall 
Creek  Sand.  Navy  has  had  to  produce  1.1 
million  barrels  from  September.  1965  to 
January,  1973.  This  makes  a  total  of  3.6 
mUllon  barrels  of  oU  reserved  for  national 
defense  purposes  produced  and  sold  because 
of  Survey's  actions.  It  Is  known  that  privat* 
operators  have  produced  1.8  mUllon  t>arreU 
of  oU  up  to  January,  1973.  This  comes  to  a 
grand  total  of  5.4  million  barrels  of  oU  taken 
out,  by  private  operators  and  the  Navy,  from 
Teapot  and  Its  environs,  largely  In  violation 
of  Federal  regulations.  Activities  by  private 
operators  have  caused  water  from  the  process 
used  to  Invade  Teapot,  damaging  its  weUs 
and  eroding  their  produceabUlty.  To  get  oU 
out.  Navy  must  drUl  more  wells  and  extract 
water.  All  such  damaging  activities  have 
been  going  on  with  the  full  knowledge  of 
the  Bureau  of  Land  Management  of  the  In- 
terior Department." 

I  have  yet  to  hear  from  the  Governor, 
even  though  he  Is  reputed  to  have  called  for 
an  Investigation.  To  my  knowledge,  no  In- 
quiry of  any  kind,  beside  hearings  such  as 
this  one  and  those  of  the  House  Armed 
Services  Committee,  have  been  held  Into 
this  situation. 

All  this  Is  but  a  prelude  to  the  Elk  HlUs 
effort,  commencing  with  the  President's  No- 
vember 7  Energy  Emergency  Address,  in 
which  he  called  lor  opening  Elk  HUls  for  pro- 
duction of  160.000  barrels  daUy  for  one  year. 
Simultaneously,  Mr.  Ketchum.  my  coUeague 
from  California  In  whose  district  Elk  HUls 
Is  located.  Introduced  a  measure  to  open  the 
Reserve.  A  mounting  public  outcry  was  also 
heard,  calling  for  opening  of  Elk  HUls.  Yet 
few  are  aware  of  profits  this  coiUd  entaU  for 
big  oU,  which  swlfUy  realized  how  useful 
public  apprehension  could  be.  It  has  acted 
accordingly. 

As  emergency  energy  legislation  cascaded 
Into  legislative  hoppers  of  both  Houses,  care- 
fully imbedded  in  several  such  measures 
were  provisions  calling  for  opening  up  Bk 
HUls.  I  do  not  believe  any  legislator  or  staff 
person  know  what  was  entaUed  In  such  a 
move. 

I  requested  further  documentation  from 
the  Pentagon  on  Elk  HlUs,  coming  Into  pos- 
session of  contracts  between  Navy  and  pri- 
vate oU  companies  dealing  with  that  re- 
serve. Two  major  oil  companies  now  enter 
the  drama;  SheU  and  Standard  OU  Companr 
of  California  (SOC.U.).  Both  companies  are 
dominant  in  the  California  energy  market, 
and  are  among  seven  major  oil  plants  which 
control  the  non-Oonununlst  energy  eqxia- 
tlon,  SheU  Is  foreign  controlled.  SOCAL  flg- 
uree  In  prlce-flxlng  accusations  in  the  State 
of  California.  Its  chairman.  Otto  MlUer, 


12526 


CONGRESSIONAL  RECUKU  — bLNATB 


r«ve&l«d  by  Common  C«um  s  lawsuit  to  have 
baan  a  960.000  contributor  to  the  Cocomltte* 
for  the  Reelection  of  the  President  before  the 
April  deadline  Dartd  Packanl.  once  No.  3 
toAJX  In  the  Pentagon,  is  reported  to  ba^e 
contributed  an  even  larger  sum.  and  alao  U 
a  member  of  SOCAL'a  board. 

These  two  companies  poaaess  a  total  of 
thr^e  agreements  with  Navy  on  EIX  HUls. 
'SEell's  was  a  flve-year  contract,  arrived  at  Ln 
1970.  Under  its  terms,  passed  by  Justice  and 
signed  by  the  President,  Shell  would  be  sole 
purchaser  of  Navy's  share  of  any  Elk  Hills 
production  from  the  unitized  area.  Under 
questioning.  Navy  Indicated  the  Shell  con- 
tract was  Intended  to  dlspoee  of  routine,  rela- 
tively minor  (2300  bbls  dally)  test  and  main- 
tenance production.  However,  that  agree- 
ment Is  so  worded  as  to  accommodate  de- 
liveries of  production  at  vastly  Increased 
rates,  such  as  would  be  the  case  under  the 
President's  requests.  Translated,  this  means 
Shell  could  have  claimed,  with  perfect  legal 
right  under  Its  Navy  contract,  any  and  all 
Increased  production  from  the  Reserve. 

When  I  made  these  revelations  in  the  same 
October  18  letter  referred  to  earlier.  Navy 
responded  on  November  6.  claiming  no  such 
Intention  had  been  in  mind,  and  that  this 
contract  would  be  set  asl4e  if  the  field  was 
opened.  This  gives  rise  to  the  question  as  to 
why  such  a  contract  was  awarded  in  the 
first  place.  At  this  point.  I  offer  the  Shell 
contract  and.  Navy's  response  for  Inclusion 
In  the  record.  No  other  formal  answer  has 
been  forthcoming  to  me  since  October  18 
from  any  other  Involved  agency. 

Upon  further  Lnveetlgation.  still  more  In- 
trlg\iing  tidbits  emerged.  When  bidding  for 
this  contract  was  held,  the  smallest  bidder, 
Pima  ReQning,  was  excluded  at  the  start  be- 
cause It  could  not  guarantee  transportability 
of  oil.  Two  serious  bidders  were  left,  SheK 
and  SOCAL.  who  proceeded  to.  submit  exactly 
Identical  bids.  Navy,  as  the^  letter  I  have 
submitted  Indicates,  thought  this  mere  coln- 
-^  cldence.  although  it  admitted  It  considered  a 
\  poeslblllty  of  collusion.  After  dismissing 
thU  poeslbUlty.  Navy  awarded  the  contract 
to  S.^.ell  by  lot. 

Had  the  Navy  and  the  Justice  Department, 
which  also  approved  the  contract,  conducted 
even  the  most  cursory  investigation,  they 
might  have  discovered  further  strange  factors 
at  work.  Kenneth  Cory,  chairman  of  the  Cali- 
fornia State  Legislature's  Joint  Committee  on 
Public  Domain,  could  have  enlightened  them. 
Cory's  mvestigation  has  resulted  in  a  court 
case  revolvlni;  around  an  accusation  that 
Shell  and  SOCAL  have  conspired  to  deprive 
California  of  royalties  from  oil  produced  on 
state-owned  lands.  A  difference  In  royalties  of 
•  U7  per  barrel  appears  to  be  Involved.  It 
Is  alleged  that  major  oU  oompanlee.  through 
market  domination,  are  able  to  rig  bidding. 
Requests  to  the  two  companies  for  appropri- 
ate information  have  thus  far  met  with  vig- 
orous resistance. 

Nonetheless.  Navy  approved  the  Shell  con- 
tract, passed  It  to  Justice,  which  also  ap- 
proved, and  It  was  then  signed  by  the 
President. 

On  November  3.  1971.  Navy  entered  into  an- 
other contract  with  SOCAL  for  actual  opera- 
tion on  Elk  Hills  SOCAL.  It  should  be  noted 
here,  had  1972  sales  of  •6.829.000.000.  with  net 
profit  after  taxes  of  $547  mUlion.  As  of  the 
third  quarter  of  1973.  lu  profits  already  came 
to  (661  mUllon. 

This  company  already  owned  30%  of  the 
land  within  the  Reserve,  had  fought  creation 
of  the  Reserve,  had  submitted  an  Identical 
bid  with  Shell  and  is  accused  of  depriving 
California  of  oil  royalties.  Yet  Navy  again 
bandad  over  operation  of  this  110  bUllon  re- 
serve to  that  same  company.  I  submit  that 
contract  for  the  record 

A  third  contract  exists,  which  I  also  offer 
bare  It  Is  also  between  Nary  and  30CAL, 
and  \*  known  aa  the  unit  plan  contract 
goramlng  production  on  the  Reaarve.  Whan 


Hk  HlUa  was  craated,  SOCAL  owned  8.000 
of  46.000  acres  In  the  Reserve.  SOCAL-owned 
land  OTerlylng  30%  of  oU  producible  from 
the  older,  mora  easily  raacbed  ShaUow  Zone. 
and  overlies  165%  of  known  oU  in  the 
untouched  Stevens  Zone.  In  light  of  today's 
Situation.  SOCAL  emerges  as  a  contented 
sUent  partner,  about  to  reap  fruits  of 
patience   and   govenunent  laxity. 

Unit  agreements  are  common  to  the  oil 
industry.  This  one  contemplate*  that  each 
party  wUl  eventually  receive  an  amount  of 
Elk  Hills  oU  equal  to  the  amount  of  oU 
underytng  its  land  holdings.  Irreepectlve  of 
weu  location.  Each  party  is  expected  to  pay 
Its  pro  rata  share  of  coeta  neceaaarv  to  eet 
theoU.  " 

Nary,  however,  took  a  generous  view  of 
such  SOCAL  obllgaUona,  ostanalbly  bacauae 
unlike  commercial  fields,  the  Reserve  is  not 
to  be  produced  except  upon  an  unca«t*ln 
contingency  war.  Nary  took  the  poeltlon 
It  would  ba  unfair  to  ask  SOCAL  to  pay  Its 
share  because  there  was  no  guarantee  of 
Immediate  return. 

Accordingly.  Navy  agreed  to  pay  all  such 
costs  "currenuy.  and  to  defer  SOCAL's 
obligation  to  pay  lU  share  untU  It  actually 
received  oU.  So  the  contract  allows  SOCAL 
to  buUd  up  a  deficit  In  coats,  requiring  it  to 
wipe  out  any  deficit  by  paying  more  than  Its 
share  of  costs  when  It  actually  starts  to 
receive  production.  Tbday  that  deficit 
amounts  to  $105  million  SOCAL  sfirts 
getting  its  share  when  aucb  a  "production 
balance"  is  achieved. 

"Production  balancing"  was  made  neces- 
sary because  the  contract  allows  SOCAL  to 
receive  oU  ahead  of  schedule,  as  a  deviation 
from  the  eeneral  rule  that  each  party  should 
share  In  oO  as  it  comes  from  the  ground 
according  to  Its  percentage  ownership  of  oU 
In  the  field. 

When  the  Unit  Plan  contract  began 
SOCAL  received  all  Elk  HUls  production  until 
It  had  received  some  25  million  barrels  as 
consideration  for  its  agreement  to  give  Navy 
^JU-ol  over  production.  To  relieve  SOCAL 
from  being  "out  of  pocket"  during  periods 
when  the  field  Is  shut  in.  the  contract  allows 
It  to  receive  enough  oU  to  cover  Its  share  of 
current  expenses  and  local  taxes  on  Its  Elk 
HUls  land  These  provisions  have  the  effect  of 
putting  SOCAL  ahead  of  Navy  m  receipt  of 
production  to  date.  As  of  today.  Navy  admits. 
SOCAL  has  actually  received  a  percentage  of 
oU  withdrawn  from  the  Reserve  to  date 
greater  than  lt«  percentage  of  ownership  of 
total  oU  in  the  field.  SOCAL's  production 
balance  owed  the  taxpayers  now  stands  at 
»13  5  mUlion.  for  a  grand  debt  total  of  S24 
mUUon  Should  Elk  HlUs  be  opened  up  in  the 
name  of  emergency  other  than  a  war.  SOCAL 
could  probably  go  to  court,  argue  Navy  has 
unilaterally  breached  the  contract,  and  seek 
forgiveness  of  the  debt.  Testifying  before  the 
House  Armed  Services  Investigations  8ub- 
commltt4fe  on  October  17.  Assistant  Secretary 
of  the  Navy  Bowers  stated : 

"Thus,  production  might  arguably  be  In 
breach  of  the  Unit  Plan  contract  If  it  were 
not  construed  to  be  for  'national  defense.'  " 
I  have  both  hU  testimony  and  a  copy  of 
the  report  emerging  from  those  hearings 
which  I  offer  to  the  committee 

SOCAL  could  argue  that  production  would 
not  be  taking  place  under  the  contract  that 
obligation  to  come  mto  production  and  cost 
^Oance  would  not  be  trlggeml.  and  that 
80CAL  would  have  returned  to  It  rights  It 
had  before  any  contract  existed.  This  would 
in  turn  allow  the  company  to  enter  Its  lands 
within  the  Reserve  to  produce  Its  share  with- 
out restriction,  effectively  draining  much  of 
the  Reserve,  ruining  It  as  such.  SOCAL  I 
understand,  has  already  Indicated  to  Navy 
that  It  would  drill  and  extract  oU  not  from 
the  Shallow  Zone,  which  would  be  Navy's 
preference,  but  from  the  Stevens  Zone  a  vir- 
gin reservoir  Once  tapped,  such  a  pool  could 
not  have  Its  production  ttimed  on  or  off  like 


December  19,  197S 

a  spigot.  An  oU  field  produces  on  a  curve, 
rlAing  and  failing  gradually.  Once  production 
begins,  geological  forces  cailed  hydrodynamlc 
Imbalances  are  created.  If  production  Is  not 
maintained,  much  oU  Is  irretrievably  lost. 
Today,  for  example,  maintenance  production 
continues  at  Elk  Hills  because  of  World  War 
n  tapping.  Therefore,  extraction  must  be 
kept  up;  in  the  case  at  EU  HUls,  large  and 
ooounulng  production.  Navy  wUhes  to  avoid 
this.  SOCAL  may  be  counting  on  it. 

What  would  happen  to  the  huge  Navy 
share  of  80%  of  all  production  foisted  upon 
a  reluctant  service  if  we  approve  a  hasty 
opening?  Navy  said,  in  tba  earlier  submitted 
letter,  it  would  be,  "sold  by  competitive  bid 
giving  fair  opportunity  to  all  Would  if 
I  think  not. 

Major  oU  companies  have  a  stranglehold 
on  all  slgnUlcant  markeU.  This  was  once 
again  Ulustrated  by  a  recanUy  released  two- 
year  PTC  study  on  monopoly  practices  in  that 
Uidustry.  The  history  of  these  reserves  alone 
offers  further  proof.  espaclaUy  the  Shell  con- 
tract. How  many  Independents  would  thrust 
forward  in  competition  for  Navy's  share 
against  the  giants?  Pima  Reflnings  fate  Is 
obvious  to  all.  Would  they,  for  example,  even 
If  able  to  bid  succeasfuUy,  be  able  to  obtain 
pipeline  capacity? 

The  only  pipelines  connecting  with  Elk 
HUls  proper  are  owned  by  SOCAL  and  Atlan- 
tlc-Richfleld.  No  common  carrier  pipe  Is  to  be 
found  there,  guaranteeing  monopoly  of  con- 
trol to  private  Interests,  no  matter  who  buy- 
ers may  be. 

Yet  even  this  was  not  enough.  Upon  even 
more  careful  scrutiny  of  the  Navy  and  OAO 
documents,  a  pattern  of  oU  drainage  along 
the  boundaries  of  Elk  HUls  emerged  slmUar 
to  that  reported  at  Teapot  Dome.  The  Navy 
report  contains  the  following  lines,  alluding 
to  the  boundary  at  Elk  HUls: 

"Because  of  producUon  by  the  adjoining 
private  operators,  the  Navy  has  been  forced 
to  produce  competitively  from  Asphalto  to 
protect  against  loss  of  hydrocarbons  due  to 
drainage." 

•Teapot?  No.  Elk  HUls.  The  GAO  report 
yielded  confirmation,  as  foUows: 

■Commercial  operators  on  leased  Federal 
and  privately  owned  lands  contiguous  to  the 
southwestern  portion  of  the  reserve  are  pro- 
ducmg  OU  from  the  same  geologic  zone  and 
structure  as  lands  within  the  boundary  of 
the  reserve.  In  thU  area,  known  as  the  As- 
^phaJto  Field,  the  Nary  has  had  to  produce 
2^  from  a  180-acre  parcel  of  land  within  the 
Ifc.'serve  to  prevent  it  from  draining  mto  the 
itommercial  weUa  on  the  leased  land  lust  out- 
side the  Reserve's  boundary 

•The  BL.M  leased  land  \n  this  area  to  com- 
mercial producers  in  1962  I^ederal  regula- 
bv'^P"'^!''"  >«"«««»  of  OU  and  gas  itasas 
by  BLM  wlthm  a  mile  of  Reserve  boundary 
unless  the  land  is  being  drained  by  private 
operators  or  It  Is  determined  after  con-wl- 
t*tlon  with  Navy  officials  that  the  Reserve 
would  not  be  adversely  affected  In  Decem- 
ber of  1962  and  January  of  19«3,  ONPR  offl- 
clals  expressed  concern  over  Issuance  of  the 
iMses  within  the  one  mile  buffer  zone  and 
the  subsequent  drtlllng  activity  BLM  offi- 
cials Informed  them  that  in  August  1966 
the  Director  of  ONPR  had  given  blanket  per- 
mission for  new  leases  or  renewal  of  leases 
previously  approved  by  Navy  Although  Nsvv 
canceued  the  1965  waiver  In  January  1963 
It  was  unable  to  provide  sufficient  grounds  to 
BLM  for  cancel  Ung  the  lease  " 

-The  October  17-18  hearings  produced  that 
letter,  appearing  on  pag»  32.  It  states  In 
part 

"The  House  be  advised  that  leases  or  re- 
newal of  leases  to  lands  previously  approved 
for  leasing  by  the  Dept.  of  the  Navy  may 
be   made  without   reference   to  this  office." 

The  person  signing  was  8  Miller.  Captain 
US  Navy.  Director,  Naval  Petroleiim  Re- 
serves As  a  result  of  the  letter  and  how  In- 
terior  chose   to   interpret   it,   exceptions   to 


December  19,  197  S 


CONGRESSIONAL  RECORD  —  SENATE 


42527 


Federal  regulations  on  oU  and  gas  leasing 
around  boundaries  of  Reserves  under  dis- 
cussion were  allowed  by  Interior,  over  con- 
tinued Navy  protests.  Today.  Stan  MUler  ts 
no  longer  in  the  Navy.  And  today  Interior 
admits  to  Navy  it  misconstrued  his  letter  to 
allow  buffer  zone  letislng.  Interior  Is  stUl 
where  It  was.  MUler,  however,  is  an  executive 
for  the  •American  Committee  for  Flags  of 
Necessity; "  an  organization  representing, 
among  others,  fleets  of  tankers  controlled  by 
major  oU  companies. 

GAO's  1972  report  continues: 
"In  December,  1972,  oil  was  also  discov- 
ered on  land  within  the  Asphalto  Field  ad- 
jacent to  Elk  HUls.  which  is  owned  In  fee  by 
a  private  oil  company  (SOCAL).  The  term 
".n  lee"  Indicates  that  the  company  owns 
both  the  land  and  the  subsurface  minerals. 
Two  wells  were  drUled  In  February,  1964, 
by  the  oil  company  on  Its  fee  land. 

"The  Unit  Plan  contract  aUows  Navy  to 
bring  additional  lands  owned  by  the  oil  com- 
pany into  the  plan,  if  it  can  show  that  the 
lands  are  on  the  bame  geological  structure 
as  an  oil  field  in  Elk  HlUs.  AcoordUig  to  Navy. 
It  attempted  to  lm,'lement  this  provision  of 
the  contract  with  respect  to  the  Asphalto 
Field  but  these  attempts  were  resisted  by 
the  oU  company.  Claiming  that  drainage  was 
occurring  from  the  unit  area  Into  the  com- 
pany s  fee  land  in  this  area.  Navy  initiated 
a  suit  against  the  company  In  1967  to  Include 
portions  of  this  fee  land  in  the  Unit  Plan. 
On  May  18,  1972.  the  U.S  District  Court 
for  the  Northeast  District  of  California  de- 
cided the  case  In  favor  of  the  oil  company." 
Here  we  encounter  unique  legal  acrobatics 
on  the  part  of  Justice  Department.  Navy 
sees  ijoundary  invasions  at  Elk  HlUs  exactly 
similar  to  those  at  Teapot.  BLM  Is  Involved 
In  both  situations.  Yet  It  took  Navy  from 
the  early  sixties  until  September  29,  1967  to 
get  the  Justice  Department  to  file  Its  nrst 
legal  complaint.  SOCAL  was  given  tUl  August 
30.  1968  to  answer,  and  trial  was  not  held 
untU  June  of  1971.  District  Court  Judgment 
was  entered  In  late  May  of  last  year.  Notice 
of  appeal  was  filed  by  Navy  in  July  of  last 
year  The  U.S.  filed  its  brief  In  March.  1973. 
and  the  appeal  Is  still  pending  before  the 
US.  Court  of  Appeals  of  the  9th  Circuit. 

SOCAL  asked  and  received  from  Justice 
twelve  consecutive  contlnu.itlons.  AU  the 
while  Elk  HUls  was  being  damaged,  because 
Navy  had  meanwhile  been  forced  Into  the 
same  policy  It  had  adopted  at  Teapot;  offset 
drilling  within  the  Reserve,  and  extraction 
of  oil  It  preferred  to  leave  in  the  ground. 
As  GAO  said : 

"The  Navy  drilled  Its  first  offset  well  in 
the  Asphalto  Field  in  AprU.  1963.  By  Decem- 
ber. 1970.  It  had  taken  out  about  84'"  of 
Its  share  of  the  recoverable  resources  In  thf 
field.  Navy  also  drUled  water  Injection  wells 
between  Asphalto  and  the  main  oil  field  In 
Elk  HlUs  to  prevent  movement  of  oil  from 
that  pool  Into  the  Asphalto  Field." 

Each  well  costs  hundreds  of  thousands  of 
dollars  to  drill  at  taxpayer  expense.  Also, 
whatever  oU  Navy  extracted  presumably  was 
sold  throiigh  private  Industry.  SOCAL  later 
proceeded  to  do  exactly  the  same  thing  on 
other  fee  land  around  Elk  HUls.  this  time  at 
an  area  known  as  RaUroad  Gap.  Here  again 
we  had  a  pattern  of  drainage.  Navy  protest. 
Navy  ofTs'^t  production  and  loss  to  the  Re- 
serve, as  the  GAO  report  Indicates. 

MeanwhUe.  Justice  was  engaged  in  pursu- 
ing Justice,  but  at  a  very  leisurely  pace.  In 
a  meeting  with  my  staff.  Justice  representa- 
tives admitted  a  recommendation  had  been 
made  In  1970  for  action  on  Elk  Hills  by  their 
Los  Angeles  office.  No  action  was  ever  taken. 
Yet  this  was  the  same  department  professing 
lack  of  surprise  over  identical  bids  which  ap- 
proved aU  contracu  In  question  At  the  meet- 
ing these  officials  admitted  knowledge  of 
Identical  bids,  offering  no  explanation  of  why 
the  Navy's  appeal  was  not  being  pressed. 
Which  brings  us  to  the  latest  boundary 
CXIX 3678— Part  33 


zone  raid  by  SOCAL  at  Elk  HUls.  Just  north 
of  the  Reserve,  SOCAL  opened  up  a  new  field, 
known  as  Tule  Elk.  After  a  vigorous  effort, 
virtue  being  Its  own  reward.  SOCAL  brought 
In  a  lash  new  oU  field,  as  the  OU  &  Gas 
Journal  In  Septemtjer  of  this  year  noted.  At 
least  five  drUllng  rigs  are  mvolved  and  a 
mlnlmom  of  three  weUs  have  been  completed, 
all  of  which  are  now  heavy  producers.  Some 
30.000  barrels  daUy  are  being  taken  by  SOCAL 
out  of  the  Tule  Elk  Field,  and  ore  being 
marketed  for  about  $6  per  barrel.  According 
to  a  well  spread  chart  shown  Navy  by  the 
company,  the  nearest  planned  well  Is  330 
feet  from  the  Elk  HUls  boundary  on  Standard 
land. 

Navy  had  a  gentleman's  agreement  with 
SOCAL  to  the  effect  that  no  drilling  would 
be  performed  by  SOCAL  on  that  land.  When 
SOCAL  kindly  Informed  Navy  they  were 
bringing  in  a  field  Just  over  the  next  hill, 
Navy  was,  to  put  it  mildly,  aghast. 

Navy  has  now  been  forced  Into  an  ex- 
pensive offset  drtlllng  program  within  the 
Reserve,  because  it  beUeves  there  is  a  strong 
connection  between  the  oil  pcKil  being  tapped 
by  SOCAL  at  Tule  Elk  and  Elk  Hills.  As  In 
the  past,  Navy  drllllag  is  being  provided 
through  SOCAL.  Wells,  of  which  four  have 
been  drUled.  are  costing  the  taxpayer  some 
$450,000  each.  Thus  far,  H.800,000  in  tax- 
payer funds  have  been  laid  out  by  Navy,  and 
I  am  Informed  a  connection  has  been  es- 
tablished between  the  two  fields  by  an  oil 
show  at  Navy's  fotirth  well.  SOCAL's  goals 
can  be  ascertained  by  presence  of  a  50,000 
barrel- oer-day  gathering  unit  emplaced  at 
Tule  Elk.  To  quote  strained  Navy  language 
from  a  recent  Internal  document: 

"The  seriousness  of  the  potential  drain- 
age from  this  su-ea  may  be  seen  from  the  fact 
that  during  the  week  cf  November  17,  1973, 
Standard  had  three  producing  wells  with 
dally  prodv.ctlon  averaging  in  excess  cf  10.- 
000  barrels  of  oU  dally,  a  fourth  weU  ready 
to  be  brought  on  production,  and  five  more 
drilling  wells  in  various  stages  of  comple- 
tion. Despite  several  letters  from  the  Direc- 
tor of  Naval  Petroleum  &  OU  Shale  Reserves 
expressing  Navy  opposition  to  Us  plans. 
Standard  has  moved  ahead  at  great  speed, 
suggesting  In  Its  correspondence  that  no  con- 
tractual restraints  exist  based  on  its  Inter- 
rretatlon  and  further  that  no  physical  con- 
nections exist." 

Neither  Navy  nor  Justice  has  made  any  ef- 
fort to  obtain  an  Injunction  against  SOCAL 
at  Tule  Elk.  at  least  imtU  Navy  completes  Its 
drUllng  program.  Nor,  to  my  knowledge,  has 
any  effort  been  made  to  press  the  previous 
app>eal. 

Meanwhile,  legislation  to  open  the  Re- 
serve hastens  along.  I  have  advocated  that  if 
we  open  the  Reserve,  permission  should  be 
granted  after  protection  of  the  public  inter- 
est U  guaranteed  by  an  excess  profits  tax  on 
Elk  HUls  oil.  Also,  that  any  pipelines  carry- 
ing Elk  HUls  on  should  be  declared  common 
carriers  while  doing  so,  to  prevent  profiteer- 
ing by  pipeline  owners,  who  are  the  oil  com- 
panies themselves.  We  must  not  allow  those 
contributing  to  the  energy  problem  to  profit 
excessively  from  a  situation  harming  us  all. 
H  J.  Res.  832.  Introduced  for  the  Admta- 
Istratlon  by  request,  has  been  defended  as 
closing  loopholes  allowing  windfall  profits 
to  oil  companies.  I  respectfully  take  issue 
with  such  a  stand.  No  fair  and  open  bidding 
win  be  possible  In  light  of  the  lock  the 
majors  have  on  our  oil  market.  No  mention* 
Is  made  of  boundary  drilling.  Millions  of  bar- 
rels of  government  oU  wlU  come  on  the 
market  through  the  majors,  with  obvious 
gains  for  them. 

160.000  barrels  dally,  as  the  President  sug- 
gested, would  gross  $960,000  at  today's  prices. 
Twenty  percent  of  that  would  go  to  SOC  \L, 
coming  to  $192,000  daUy.  That  amounts  to 
at>out  $70  mlUlon  In  a  year  to  one  oil  --om- 
pany  for  Its  20%  Interest.  Plus  Navy's  80  per- 


cent, wblcb  wotUd  fall  Into  their  hands  .vs 
weU. 

It  means  the  taxpayer  will  foot  at  least  80 
percent  of  the  bUl  for  a  massive  extraction, 
gathering  and  distribution  system  at  the  Re- 
serve,  costing  at  least   $30   million. 

Today  at  least  nine  Federal  oil  leases  are 
operating  within  the  buffer  zone  at  Elk  HUls. 
Many  have  been  granted  by  the  BLM  with- 
out Navy  permission,  under  the  letter  BLM 
now  admits  It  misconstrued.  I  have  a  list 
with  me  and  Include  them  at  this  point. 


Sacramtnto 
lease  No. 


Lessee 


Acres    Location 


051077 SOCAL 

041855 Sun  Oil      . 

064410 General  Crude 

071813 Ferguson 

019311  A«B..  Sunset  Oil 

019378-A....  Texaco 

019378-B....  Mobil  Oil  .... 

019284A Union  Oil..  .. 

019284B do 


160 
160 
240 
360 
400 
160 
4S0 
160 
480 


Sec.  10. 
Sec.  21. 
Sec.  22. 
Sec  26. 
Sec.  6. 
Sec.  24, 
Sec.  24, 
Sec.  20, 
Sec.  20. 


T30S,  R22L 
T30S.  R22L 
T30S.  R22E. 
T30S.  R22E. 
T31S.  R23E. 
T3iS,  R23t. 
T31S,  R23E. 
T31S.  R24E. 
T31S.  R24E. 


Leasss  m  Section  20,  T31S,  R24E  and  Sec- 
tion 24.  T31S.  R23E  around  Elk  HUU  were 
apparently  in  existence  prior  to  establish- 
ment of  the  buffer  zone  In  1937.  However, 
in  the  Federal  RegUter  of  1937.  when  tha 
buffer  zone  was  established,  there  is  ref- 
erence to  buffer  zone  usage  since  1924. 

There  is  one  other  facet  of  the  oU  re- 
serve situation,  concerning  Pet  Pour,  the 
vast,  Indiana-sized  Navy  oil  reserve  on 
Alaska's  North  Slope,  50  miles  away  from 
the  Prudhoe  Bay  oil  strike  and  plpelUae  be- 
ing built  by  major  oU  companies.  I  have  a 
10  page  memo  from  Deputy  Defense  Sec- 
retary Clements,  for  Insertion  m  the  record. 

Formerly  chairman  of  the  Board  of  South- 
eastern DrlUlng  Company,  or  SEDCO,  he 
owns  about  $100  million  to  Its  stock,  which 
he  has  refused  to  place  In  blind  trust.  His 
son  Is  chairman  of  the  board,  .ind  SEDCO 
had  as  clients  all  major  oU  companies  In- 
volved on  the  North  Slope  and  around  Elk 
HUls.  In  fact.  Shell  Is  supposed  to  be  Its 
largest  client.  SEDCO  has  Indicated  In  its 
annual  report  It  hopes  to  participate  In  con- 
struction of  the  Alaska  pipeline.  Standard 
and  Poor  Indicates  It  has  financial  capacity 
to  do  so. 

In  his  November  17  memo.  Clements  de- 
clared: "I  hereby  approve  the  creation  of  a 
Defense  Energy  Policy  CouncU  reporting  di- 
rectly to  me  for  the  purpose  of  approving 
major  policies  related   to  energy  matters." 

On  the  same  day.  according  to  his  memo, 
he  approved  a  Pentagon  plan  to  allow  pro- 
duction and  exploitation  of  Navv  oU  re- 
serves by  private  Industry.  The  memo  savs: 

"If  necessar>-  funding  and  staffing  to  sup- 
port fuU  contractual  exploration  and  devel- 
opment of  the  reserves  cannot  be  obtained 
through  normal  budget  processes,  the  Sec- 
retary of  the  Navy  should  pursue  the  devel- 
opment of  a  procurement  strategy  that  will 
permit  Industry  participation,  on  a  cost 
benefit  basis  to  the  government.  In  the  ex- 
ploration, development  and  production  of 
the  Reserves.  .  .  .  commit  the  Congress,  upon 
completion  of  full  exploration  of  the  Naral 
Petroleum  Reserves,  to  authorize  develop- 
ment and  production  of  any  oU  and  gas 
reserves  developed  In  the  reserves  which  ara 
in  excess  of  defense  requirements,  as  defined 
by  DOD.  Any  such  production  would  nec- 
essarily provide  for  a  fair  rate  of  return  to 
be  agreed  upon  by  the  government  and  par- 
ticipating contractors" 

It  is  well  known  In  the  Navy  and  oil  busi- 
ness that  for  years  DOD  and  OMB  have 
prevented  Navy  from  obtaining  adequate  ap- 
proprtatloris  to  explore  and  develop  Resenea 
Into  that  state  of  readiness  envisioned  when 
Reserves  were  created.  As  far  as  approprta- 
tio:is  are  concerned,  the  Reserves  are  or- 
phans. Under  terms  of  the  memo,  if  ever  Im- 
plemented,   Uiere    Is    virtual    guarantee    of 


42528 


C0NGR£SSIOiNAL  RECORD  —  SENATE 


December  19,  1973 


tbea*  Reaervea  b«lng  opened  to  development 
wltb  Industry  p*rtlctpaUoc. 

Hydroetatlc  imbalAncea  coma  Into  pl*7 
agktn.  If  production  Is  ever  begun  on  vut 
■tructuree  and  reaervolr*  at  Pet  Pour,  the 
Navy  wUl  be  awaah  In  oU  in  exceae  of  defenee 
needs.  Yet  production,  once  commenced.  wlU 
have  to  continue  or  else  much  oU  wUl  be  Ir- 
retrievably lost.  What  will  Navy  do  In  such 
a  situation?  There  are  all  those  oU  com- 
panies on  the  North  Slope.  50  miles  away  at 
Prudhoe  Bay.  already  conunenclng  their 
massive  pipeline. 

At  best  this  Is  clearly  questionable  be- 
havior by  a  person  of  Mr  ClemenU"  rank 
and  status.  At  worst  It  Is  a  conflict  of  Inter- 
est we  can  no  longer  tolerate,  particularly 
after  what  has  already  been  revealed  during 
the  past  year  Mr  Schleslngers  recent  an- 
nouncemer.t  that  Mr  Clements  will  no  long- 
er be  allowed  to  pirticlpate  In  oU  decisions 
by  DOD  Is  belated  recognition  of  how  seri- 
ous this  situation  is  Mr.  Clements,  for  the 
good  of  the  Defense  Department,  should  of- 
fer his  resignation  forthwith. 

This  brings  me  to  my  Aral  point.  The 
Naval  Oil  Reserves  are  a  vast  resource  Cap- 
tain Trunz.  head  of  the  Navy's  Resene  Of- 
fice. In  a  recent  speech.  Indicated  the  min- 
imum flgxire  of  33  billion  barrels  of  oil  In 
Pet  Pour  Is  conservative  Pet  Pour  alone  may 
double  our  existing  known  reserves.  Elk  Hills 
Is  a  1 10  bUUon  property 

The  oU  Industry  lusts  for  these  riches,  and 
will  find  a  way  to  get  them  In  no  way  can 
we  depend  upon  the  Interior  Department  to 
safeguard  the  public  Interest,  for  it  has 
shown  Itself  to  be  an  adjunct  of  Industry 
In  such  a  manner  as  to  constitute  a  public 
disgrace.  The  Navy  Is  too  Intimidated  to  act 
aggressively  against  encroachers.  The  Jus- 
tice Department  Is  at  best  today  a  bulldog 
with  rubber  teeth,  frightening  only  to  those 
with  an  Inflnlte  capacity  to  rationalize. 

The  solution  is  to  allow  Navy  to  retain 
control  of  Reserves,  with  adequate  funding 
to  fullv  explore  and  map  them,  reporting 
annually  to  Congress  on  what  these  reserves 
contain  In  no  wav  should  the  Interior  De- 
partment be  allowed  to  approach  or  have  any 
say  in  management  of  the  Reserves. 

Finally,  the  national  Oil  and  Oa*  Coroo- 
ratlon.  on  the  lines  of  TVA.  should  be  set  up 
to  work  In  tandem  with  Navy,  to  administer 
and  prepare  Reserves  for  whatever  eventual. 
Inevitable  exploitation  the  nation  may  de- 
sire In  this  numner.  a  yardstick  can  be  cre- 
ated against  which  to  measure  behavior  and 
performance  of  the  private  oil  industry, 
which  I  believe  today  requires  more  careful 
control  and  scrutiny  than  any  other  area 
of  American  business  Its  recklessness,  drive 
for  profit,  greed,  readiness  to  subvert  and 
Ignore  the  public  interest  and  willingness  to 
bend  law  for  Its  Interests  match  and  surpass 
any  excesses  of  the  OUded  Age  This  industry 
must  be  brought  under  control  Perhaps  mas- 
sive Federal  intervention  mav  be  the  only 
answer  eventually  For  now  however,  the 
Federal  OU  &  Oas  Corporation  Is  a  vital  piece 
of  national  buslneiw  which  should.  I  hope. 
receive  a  thrust  forward  as  a  result  of  these 
hearings. 
Thank  you 


ENDANGERED      SPECIES      ACT      OP 
1973— CONFERENCE  REPORT 

Mr.  TUNNEY  Mr.  President,  I  submif 
a  report  of  the  committee  of  conference 
on  S.  1983.  and  ask  for  Its  Immediate 
consideration. 

The  VICE  PRESIDENT.  The  report 
will  be  stated  by  title. 

The  second  assistant  legislative  clerk 
read  as  follows: 

The  committee  of  conference  on  the  dis- 
agreeing vote*  of  the  two  Houses  on  the 
ameiidments   of   the    H    i^    to    the   bill    (S. 


1983)  to  provide  for  the  conserratlon.  pro- 
tection, restoration,  and  propagation  of 
threatened  and  endangered  species  of  flah. 
wildlife,  and  plants,  and  for  other  purposes, 
having  met,  after  full  and  free  conference, 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Hotiaes  this  report, 
signed  by  all  the  conferees. 

The  VICE  PRESIDENT,  Is  there  ob- 
jection to  the  consideration  of  the  con- 
ference report? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  report,  which 
reads  as  follows; 

COHmXNCS  RXPOST 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bill  (3. 
1983).  to  provide  for  the  conservation,  pro- 
tection, restoration,  and  propagation  of 
threatened  and  endangered  species  of  fish, 
wildlife,  and  plants,  and  for  other  purposes, 
having  met.  after  full  and  free  conference, 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Houses  as  follows: 

That  the  Senate  recede  from  Its  disagree- 
ment to  the  amendment  of  the  House  to  the 
text  of  the  bill  and  agree  to  the  same  with 
an  amendment  as  follows: 

In  lieu  of  the  matter  proposed  to  be  In- 
serted by  the  House  amendment  Insert  the 
following : 

That  this  Act  may  be  cited  as  the  "En- 
dangered Species  Act  of  1973". 

TABLE  OF  CONTENTS 
Sec    3.  Findings,  purposes,  and  policy. 
Sec.  3.  DeflnlUons. 
Sec.  4.  Determination  of  endangered  species 

and  threatened  species. 
Sec.  S.  Land  acquisition. 
Sec.  6.  Cooperation  with  the  SUtee. 
Sec   7.  Interagency  cooperation. 
Sec.  8.  International  cooperation. 
Sec    9.  Prohibited  acta. 
Sec.  10.  Exceptions. 
Sec.  11.  Penalties  and  enforcement. 
Sec.  13  Endangered  plants. 
Sec.  13.  Conforming  amendments. 
Sec.  14.  Repealer 

Sec.  15    Authorization  of  appropriations. 
Sec.  16.  Effective  date.  ^ 

Sec.   17    Marine   Mammal   Protection  Act  of 
1973. 
piNDiNca,   puapoon,  and  pouct 

S«c.  2.  (a)  Fdtdinos. — The  Congress  finds 
and  declares  that — 

(1)  various  species  of  fish,  wildlife,  and 
plants  In  the  United  States  have  been  ren- 
dered extinct  as  a  consequence  of  economic 
growth  and  development  untempered  by 
adequate  concern  and  conservation: 

(3)  other  species  of  fish,  wildlife,  and 
plants  have  t>een  so  depleted  In  numbers  that 
they  are  in  danger  of  or  threatened  with  ex- 
tinction: 

(3)  these  species  of  flah.  wildlife,  and 
plants  are  of  esthetic,  ecological,  educational, 
historical,  recreational,  and  scientific  value 
to  the  Nation  and  Its  people: 

I  4)  the  United  SUtes  has  pledged  Itself  as 
a  sovereign  state  In  the  International  com- 
munity to  conserve  to  the  extent  practicable 
the  various  species  of  flsh  or  wildlife  and 
plants  facing  extinction,  pursuant  to — 

(A)  migratory  bird  treaUes  with  Canada 
and  Mexico: 

iB)  the  Migratory  and  Endangered  Bird 
Treaty  with  Japan; 

(C)  the  Convention  on  Nature  Protection 
and  Wildlife  Preservation  in  the  Western 
Hemisphere: 

(D)  the  International  Convention  for  the 
Northwest  Atlantic  Fisheries: 

(E)  the  Intematlon*!  Convention  for  the 
High  Seis  Fisheries  of  the  North  Pacific 
Ocean: 

I F)   the  Convention  on  International  Trade 


In   Endangered   Species  of  Wild  Fauna  and 
Flora:  and 

(0)  other  International  agreenaents. 

(6)  encouraging  the  States  and  other  In- 
terested parties,  through  FedersJ  financial 
assistance  and  a  system  of  Incentives,  to  de- 
velop and  maintain  conservation  programs 
which  meet  national  and  international 
standards  Is  a  key  to  meeting  the  NaUon's  in- 
ternational commitments  and  to  better  safe- 
guarding, for  the  benefit  of  all  citizens,  the 
Nation's  heritage  in  flsh  and  wildlife. 

(bt  PtJBPosES. — The  purposes  of  this  Act 
are  to  provide  a  means  whereby  the  ecosys- 
tems upon  which  endangered  species  and 
threatened  species  depend  may  be  conserved, 
to  provide  a  program  for  the  conservation 
of  such  endangered  species  and  threatened 
species,  and  to  take  such  steps  as  may  be  ap- 
propriate to  achieve  the  ptjrposes  of  the 
treaties  and  conventions  set  forth  In  subsec- 
tion (a)  of  this  section. 

(c)  PoLicT.— It  Is  further  declared  to  be 
the  policy  of  Congress  that  all  Federal  de- 
partments and  agencies  shall  seek  to  conserve 
endangered  species  and  threatened  si>ecles 
and  shall  uUllze  their  authorities  in  further- 
ance of  the  purposes  of  this  Act. 
DKrtNrnoNs 
Sxc.  3    For  the  purposes  of  this  Act — 

(1)  The  term  "commercial  activity  means 
all  aetlvltles  of  industy  and  trade,  including, 
but  not  limited  to.  the  buying  or  selling  of 
commodities  and  activities  conducted  for  the 
purpoae  of  facilitating  such  buying  and  sell- 
ing. 

(3)  The  terms  "conserve",  "conserving", 
and  "consen-atlon"  means  to  use  and  the  use 
of  all  methods  and  procedures  which  are  nec- 
essary to  bring  any  endangered  species  or 
threatened  species  to  the  point  at  which  the 
measures  provided  punuant  to  this  Act  are 
no  longer  necessary.  Such  methods  and  pro- 
cedures Include,  but  are  not  limited  to,  all 
activities  associated  with  scientific  resources 
management  such  as  research,  census,  law 
enforcement,  habitat  acquisition  and  main- 
tenance, propagation,  live  trapping,  and 
transplantation,  and.  In  the  extraordinary 
case  where  population  pressures  within  a 
given  ecosystem  cannot  be  otherwise  relieved, 
may  Include  regulated  taking. 

{3)  The  term  "Convention"  means  the  Con- 
vention on  International  Trade  in  En- 
dangered Species  of  Wild  Fauna  and  Flora. 
signed  on  March  3,  1973.  and  the  appendices 
thereto. 

(4)  The  term  "endangered  species"  means 
any  species  which  Is  In  danger  of  extinction 
throughout  all  or  a  significant  portion  of  Its 
range  other  than  a  species  of  the  Class  In- 
secU  determined  by  the  Secretary  to  con- 
stitute a  pest  whose  protection  under  the 
provisions  of  this  Act  would  present  an  over- 
whelming and  overriding  risk  to  man. 

(8)  The  term  "fish  or  wildlife"  means  any 
member  of  the  animal  kingdom.  Including 
without  limitation  any  maoun&l,  flah,  bird 
(Including  any  migratory,  nonmlgratorj-.  or 
endangered  bird  for  which  protection  la  also 
afforded  by  treaty  or  other  InternaUonal 
agreement),  amphibian,  reptile,  mollusk. 
crustacean,  arthropod  or  other  Invertebrate, 
and  Includes  any  part,  product,  egg,  or  off- 
spring thereof,  or  the  dead  body  or  paru 
thereof. 

(6)  The  term  "foreign  commerce"  Includes, 
among  other  things,  any  transaction — 

(A)  between  persons  within  one  foreign 
country; 

iB)  between  persons  In  two  or  more  for- 
eign countries: 

(CD  between  a  person  within  the  United 
States  and  a  person  In  a  foreign  country:  or 

iD)  between  persons  within  the  United 
States,  where  the  fish  and  wUdllfe  In  ques- 
tion are  moving  in  any  country  or  countries 
outside  the  United  States. 

1 7)  The  term  "Import"  means  to  land  on. 
bring  Into,  or  Introduce  Into,  or  attempt  to 
land  on,  bring  into,  or  Introduce  Into,  any 


December  19,  1978 


place  subjert  to  the  JurlsdlcUon  of  the 
United  SUtes.  whether  or  not  such  landing 
bringing,  or  IntroducUon  constitutes  an  im- 
portation within  the  meaning  of  the  customs 
Uw8  of  the  United  States 

(8)  The  term  "person"  means  an  individ- 
ual, corporetlon,  partnership,  trust,  associa- 
tion, or  any  other  private  entity,  or  any  of- 
ficer, employee,  agent,  department  or  in- 
strumentality of  the  Federal  Government 
of  any  State  or  poUtlcal  subdivision  thereof.' 
or  of  any  foreign  government. 

(9)  The  term  "plant"  means  any  member 
of  the  plant  kingdom,  Including  seeds  roots 
and  other  parts  thereof. 

(10)  The  term  "Secretary"  means,  except 
as  otherwise  herein  provided,  the  Secretary 
of  the  Interior  or  the  Secretary  of  Commerce 
as  program  responsibilities  are  vested  pursu- 
ant to  the  provisions  of  Reorganization  Plan 
Numbered  4  of  1970;  except  that  with  respect 
to  the  enforcement  of  the  provUlons  of  this 
Act  and  the  Convention  which  pertain  to  the 
Importation  or  exportaUon  of  terrestrial 
plants,  the  term  means  the  Secretary  of 
Agriculture. 

(11)  The  term  "species"  Includes  any  sub- 
species of  flsh  or  wUdllfe  or  plants  and  any 
other  group  of  flsh  or  wildlife  of  the  same 
species  or  smaller  taxa  In  common  spatial 
arrangement  that  Interbreed  when  mature. 

(12)  The  term  "SUte"  means  any  of  the 
several  SUtes.  the  District  of  Columbia  the 
f!onunonwealth  of  Puerto  Rico,  American 
Samoa,  the  Virgin  Islands.  Guam,  and  the 
Trust  Terrltorj'  of  the  Pacific  Islands. 

(13)  The  term  "SUte  agency"  means  the 
State  agency,  department,  board,  commis- 
sion, or  other  govemmenUl  entity  which  Is 
responsible  for  the  management  and  con- 
servation of  flsh  or  wildlife  resources  within 
a  State. 

(14)  The  term  "take"  means  to  harass 
harm,  pursue,  hunt,  shoot,  wound,  klU  trap 
capture,  or  collect,  or  to  attempt  to  engage 
in  any  such  conduct. 

(15)  The  term  "threatened  species"  means 
any  species  which  is  likely  to  become  an  en- 
dangered  species  within  the  foreseeable  fu- 
ture throughout  aU  or  a  significant  portion 
of  its  range. 

(16)  The  term  "United  SUtes".  when  used 
In  a  geographical  context.  Includes  aU  States. 

DXTXaMlNATION   OP  ENDANGHIED  SPECIXS  AND 
THREATENXD   SPECnCS 

SEC.  4.  (a)  Genxral.— (1)  The  SecreUry 
shaU  by  regulation  determine  whether  any 
species  Is  an  endangered  species  or  a  threat- 
ened species  because  of  any  of  the  following 

(1)  the  present  or  threatened  destruction 
modification,  or  curtailment  of  its  habitat  or 
range: 

(3)  overutuization  for  commerelal   sport- 
ing, scientific,  or  educational  purposes- 
(3)  disease  or  predatlon; 

m<!c*ha^^'1r'"^^  °'  •^^'^  "^**^ 
(5)   other  natural  or  manmade  factors  af- 
fecting Its  continued  existence. 

(3)  With  respect  to  any  species  over  which 
program  responslbUltea  have  been  vested  in 
the  Secretary  of  Commerce  purauant  to  Re- 
organization Plan  Numbered  4  of  1970— 

(A)  in  any  case  in  which  the  Swretary  of 
2'o'^W-*^*    determines     that    such     species 

(I)  be  listed  as  an  endangered  species  or 
a  threatened  species,  or 

(II)  be  changed  In  sUtua  from  a  threatened 
species  to  an  endangered  species 
he  shaU  so  inform  the  Secretary  of  the  In- 
tenor,  who  shall  list  such  species  In  accord- 
ance  with  this  section; 

(B)  in  any  case  In  which  the  Secretary  of 
S'o'^— "^    '^«<*»-mlnes    that    such    species 

(1)  be  removed  from  any  list  published 
pursuant  to  subsection  (c)  of  thli  section 
or  ' 


CONGRESSIONAL  RECORD  — SENATE 


42529 


(11)  be  changed  in  sutus  from  an  endan- 
gered species  to  a  threatened  species, 
he  shall  recommend  such  action  to  the  Sec- 
retary of  the  InUrlor.  and  the  Secretary  of 
the  Interior.  U  he  concurs  In  the  recom- 
mendation. ShaU  Implement  such  action- 
and 

(C)  the  Secretary  of  the  Interior  may  not 
list  or  remove  from  any  list  any  such  species, 
and  may  not  change  the  status  of  any  sucli 
species  which  are  listed,  without  a  prior  fa- 
vorable determination  made  pursuant  to  this 
section   by  the  Secretary  of  Commerce. 

(b)  Basis  fob  Dk-txeminations. — (i)  The 
SecreUry  shall  make  determinations  re- 
quired by  subsection  (a)  of  this  section  on 
the  basis  of  the  best  scientific  and  commer- 
cial data  available  to  him  and  after  consulU- 
tlon.  as  appropriate,  with  the  affected  SUtes, 
Interested  persons  and  organizations,  other 
interested  Federal  agencies,  and,  in  coopera- 
tion with  the  Secretary  of  SUte,  with  the 
country  or  coimtrles  In  which  the  species 
concerned  Is  normally  found  or  whose  citi- 
zens harvest  such  species  on  the  high  seas; 
except  that  in  any  case  In  which  such  deter- 
minations Involve  resident  species  of  fish  or 
WUdllfe,  the  Secretary  of  the  Interior  may 
not  add  such  species  to,  or  remove  such  spe- 
cies from,  any  list  published  pursuant  to  sub- 
section (c)  of  this  section,  imless  the  Secre- 
tary has  first — 

(A)  published  notice  In  the  Federal  Regis- 
ter and  notified  the  Governor  of  each  Bute 
within  Which  such  species  Is  then  known  to 
occur  that  such  action  is  contemplated: 

(B)  allowed  each  such  SUte  90  days  after 
notification  to  submit  lU  commenu  and  rec- 
ommendations, except  to  the  extent  that 
such  period  may  be  shortened  by  agreement 
between  the  Secretary  and  the  Governor  or 
Governors  concerned;  and 

(C)  published  in  the  Federal  Register  a 
summary  of  all  comments  and  recommenda- 
tions received  by  him  which  relate  to  such 
proposed  action. 

(2)  In  determining  whether  or  not  any 
species  is  an  endangered  species  or  a  tlireat- 
ened  species,  the  Secretary  shall  take  into 
consideration  those  efforts,  if  any.  being 
made  by  any  nation  or  any  political  subdivi- 
sion of  any  nation  to  protect  such  species 
whether  by  predator  control,  protection  of 
hablUt  and  food  supply,  or  other  conserva- 
tion practices,  within  any  area  under  the 
Jurisdiction  of  any  such  nation  or  political 
subdivision,  or  on  the  high  seas. 

(3)  Species  which  have  been  designated 
as  requiring  protection  from  unrestricted 
commerce  by  any  foreign  country,  or  pur- 
suant to  any  international  agreement,  shaU 
receive  full  consideration  by  the  Secretary 
to  determine  whether  each  is  an  endaneered 
species  or  a  threatened  species 

(c)  Lists.— (1)  The  SecreUry  of  the  In- 
terior ShaU  publUh  In  the  Federal  Register 
and  from  time  to  time  he  may  by  regulation 
revise,  a  list  of  all  species  determined  by  him 
or  the  Secretary  of  Commerce  to  be  en- 
dangered species  and  a  list  of  all  species 
determined  by  him  or  the  Secretary  of  Com- 
merce  to  be  threatened  species.  Each  list 
Shall  refer  to  the  species  conUlned  therein 
by  scientific  and  commDn  name  or  names 
If  any.  and  shall  specify  with  respect  to  each 
such  species  over  what  portion  of  its  range 
It  is  endangered  or  threatened. 

(2)  The  Secretary  shall,  upon  the  petition 
^«f">  interested  person  under  subsection 
653(e)  of  title  5,  United  SUtes  Code,  con- 
duct a  review  of  any  listed  or  unllstwi 
^PJ^^  P^Pooe<i  to  be  removed  from  or 
added  to  either  of  the  lists  published  pur- 

burnn^  .^T^P.  <^>  °^^^  "ubsectlon. 
but  only  if  he  makes  and  publishes  a  find- 
ing that  such  person  has  presented  substan- 
tU^  evidence  which  in  his  Judgment  war- 
rants such  a  review. 

(3)  Any  list  In  effect  on  the  day  before  the 
dau  of  the  enactment  of  this  Act  of  species 


of  flsh  or  WUdllfe  determined  by  the  Secre> 
tary  of  the  Interior,  pursuant  to  the  Endan- 
gered Species  Conservation  Act  of  196S,  to  be 
threaUned  with  extinction  shall  be  repub- 
lished to  conform  to  the  classlflcation  lor 
endangered  species  or  threatened  species  as 
the  case  may  be,  provided  for  In  this  Act  ijut 
untu  such  republication,  anv  such  species  so 
listed  shall  be  deemed  an  endangered  species 
within  the  meaning  of  this  Act.  The  repub- 
Ucatlon  of  any  species  pursuant  to  this  para- 
graph shall  not  require  public  hearing  or 
comment  under  secUon  653  of  Utle  5.  United 
States  Code. 

(d)  P»OT«CTiVK  RjKcuLA-noNS.— Whenever 
any  species  Is  listed  as  a  threatened  species 
pursuant  to  subsection  (c)  of  this  section 
the  Secretary  shall  issue  such  regulations  as 
he  deems  necessary  and  advisable  to  prortde 
for  the  conservation  of  such  species.  The 
Secretary  may  by  regulation  prohibit  with 
respect  to  any  threatened  species  any  act 
prohibited  under  section  9(a)  (i ).  m  the  case 
of  fish  or  wildlife,  or  section  9(a)  (2)  in  the 
case  of  plante,  «lth  respect  to  endangered 
species:  except  that  witb^spect  to  the  uk- 
tng  of  resident  species  of  flsh  or  vrlldllfe 
such  regulations  8rii»iKa$pi>  in  anv  State 
which  has  entered  Into  a  cooperative  agree- 
ment pursuant  to  section  6(a)  of  this  Act 
only  to  the  extent  that  such  regulations  have 
also  been  adopted  by  such  SUte. 

(e)  SiMiLAHrrv  of  AppEAaANCx  Casks —The 
Secretary  may,  by  regulation,  and  to  the  ex- 
tent  he  deems  advisable,  treat  any  species  as 
an  endangered  species  or  threatened  species 
even  though  It  is  not  Usted  pursuant  to  sec 
tlon  4  of  this  Act  if  he  finds  that— 

(A)  such  species  so  closely  resembles  In 
appearance,  at  the  point  In  question  a 
species  which  has  been  listed  pursuant  to 
such  section  that  enforcement  personnel 
would  have  substantial  dlfllculty  In  attempt- 
ing  u>  differentiate  between  the  Usted  and 
unlisted  species; 

(B)  the  effect  of  this  subsUntlal  difficulty 
is  an  additional  threat  to  an  endangered 
or  threatened  species:  and 

(C)  such  treatment  of  an  unlisted  species 
WUl  substantially  faclllUte  the  enforcement 
and  further  the  policy  of  this  Act. 

(f)  REctTLATioNs— (1)  Except  as  provided 
In  paragraphs  (2)  and  (3)  of  this  subsection 
and  subsection  (b)  of  this  section,  the  pre- 
visions of  section  553  of  title  6.  United  Sutes 
Code  (relating  to  rulemaking  procedures! 
shall  apply  to  any  regulation  promulgated 
to  carry  out  the  purposes  of  this  Act. 

(2)  (A)  In  the  case  of  any  regulation  pro- 
posed by  the  Secretary  to  carry  out  the  pur- 
poses  of  this  Act — 

(I)  the  Secretary  shall  publUh  general 
notice  of  the  proposed  regulation  (Including 
the  complete  text  of  the  regulation)  in  the 
Federal  Register  not  less  than  60  davs  before 
the  effective  date  of  the  regulation;' and 

(II)  Of  any  person  who  feels  that  he  may 
be  adversely  affected  by  the  proposed  reg- 
ulation flies  (within  45  days  after  the  date 
of  publication  of  general  notice)  objection* 
thereto  and  requests  a  public  hearing  there- 
on, the  Secretary  may  grant  such  request, 
but  ShaU,  If  he  denies  such  request,  publish 
his  reasons  therefor  In  the  Federal  Register. 

(B)  Neither  subparagraph  (A)  of  this 
paragraph  nor  section  553  of  title  5,  United 
States  Code,  shall  apply  In  the  case  of  any 
of  the  following  regulations  and  any  such 
regulation  shall,  at  the  discretion  of  the  Sec- 
retary, take  effect  Immediately  upon  publica- 
tion of  the  regulation  in  the  Federal  Register : 

(I)  Any  regulation  appropriate  to  carry 
out  the  purposes  of  this  Act  which  was 
orlglnaUy  promulgated  to  carry  out  the  En- 
dangered Special  Conservation  Act  of  1969. 

(II)  Any  regulation  (Including  any  regula- 
tion Implementing  section  6(g)  (2)  (B)  (11) 
of  thLs  Act)  Issued  by  the  Secretarv  In  regard 
to  any  emergency  posing  a  significant  risk 
to  the  weU-belng  of  any  species  of  flsh  or 


42530 


CONGRESSIONAL  RECORD  — SENATE 


December  19,  1973 


wildlife,  but  only  If  (H  %t  the  time  of  pub- 
lication of  th«  reguliitton  In  the  Pwler*!  Reg- 
toter  the  SecreUry  publLshea  therein  detailed 
reasons  why  such  re^fuJatlon  Is  neceassry.  and 
(IT)  In  the  case  such  reflation  applies  to 
resident  species  of  Jlah  and  wlldllf*.  the  re- 
quirements of  s\ibaectlon  (bnA).  (Bi,  and 
(C)  of  this  section  have  been  compiled  with. 
Any  regulation  promiUgated  under  the  ati- 
thortty  of  this  clause  (11)  shaU  cease  to  have 
force  and  effect  at  the  close  of  the  lao-dar 
period  following  the  date  of  publication  un- 
less, during  such  130-day  period,  the  rule- 
making procedures  which  would  apply  to 
such  regulation  without  regard  to  this  sub- 
paragraph are  complied  with. 

(3>  The  rubllcatlon  In  the  Federal  Retrls- 
ter  of  any  proposed  or  final  regulation  which 
Is  necessary  or  appropriate  to  carrv  out  the 
purposes  of  this  Act  shall  Include  a  statement 
by  the  Secretary  of  the  facta  on  which  such 
regulation  Is  based  and  the  relationship  of 
such  facts  to  such  regulation. 

LAND      ACQUTSmOK 

Stc.  5.  la)  PsocRAM.— The  Secretary  of  the 
laterlor  shall  establish  and  Implement  a 
program  to  conserve  (A)  ash  or  wildlife 
which  are  lifted  as  endangered  species  or 
threattined  species  pursuant  to  section  4  of 
this  Act;  or  (Bi  plant*  which  are  Included 
In  Appendices  to  the  Convention.  To  carry 
out  such  program,  he — 

( 1 )  shall  utilize  the  land  acquisition  aud 
other  authority  liader  the  Fish  and  Wildlife 
Act  of  1956.  as  amended,  the  Pish  and  Wild- 
life Coordination  Act,  as  amended,  and  the 
Migratory  Bird  Conservatlvs  Act,  as  appro- 
priate; a;-.d 

(21  is  authorized  to  acquire  by  purchase, 
donation,  or  otherwise,  lands,  waters,  or  In- 
terest therein,  and  such  authority  shall  be 
In  addition  to  any  other  land  acquisition  au- 
thority vested  In  him. 

!bi  AcQUTsmoNs.— Funds  made  available 
pursuant  to  the  Land  and  Water  Conserva- 
tion Fund  Act  of  1965.  as  amended,  may  be 
used  for  the  purpose  of  acquiring  lands. 
waters,  or  interests  therein  under  subsec- 
tion «a)  of  this  section. 

COOPtXATlON    WTTH   THE    BTATXS 

Sec.  6.  (a)  Oknxbal. — In  carrying  out  the 
program  authorized  by  this  Act.  the  Secre- 
tary shall  cooperate  to  the  maximum  extent 
practicable  with  the  States.  Such  coopera- 
tion shall  Include  consultation  with  the 
States  concerned  before  acquiring  any  land 
or  water,  or  Interest  therein,  for  the  purpoee 
of  conserving  any  endangered  specie*  or 
threatened  species. 

I  b  I  Manacemxnt  .Acbexmints  —The  Secre- 
tary may  er.ter  into  agreements  -si-lth  any 
State  for  the  administration  and  manage- 
ment of  any  area  established  for  the  conser- 
vation of  endangered  species  or  threatened 
species  Any  revenues  derived  from,  the  ad- 
ministration of  such  areas  under  these  agree- 
ments shall  be  subject  to  the  provisions  of 
section  401  of  the  Act  of  June  15,  1935  (49 
Stat.  383:  15  use.  715a) . 

(c)  CoopraATm  AcxcncrMTs. — In  further- 
ance of  the  purposes  of  this  Act.  the  Secre- 
tary la  authorized  to  enter  Into  a  cooperative 
agreement  in  accordance  with  this  section 
with  a.-.y  State  which  esUbllshes  and  main- 
tains an  adequate  and  active  program  for  the 
conservt.tIon  of  endangered  species  and 
threatened  species.  Within  one  hundred  and 
twenty  days  aft-r  the  Secretary  receives  a 
certiSed  copy  of  such  a  proposed  State  pro- 
gram, he  shall  make  a  determination  whether 
such  proerara  la  In  ac-ordance  with  thla  Act. 
Cnlesa  he  determines,  pursxiant  to  thu  sub- 
section, that  tiie  State  program  la  not  In  ac- 
cordance with  this  Act,  he  shaU  enter  Into  a 
cooperative  agreement  with  the  State  for  the 
purpose  of  assisting  la  Implementation  of  the 
State  program.  In  ortler  for  a  State  program 
to  be  deemed  an  adequate  and  active  pro- 


gram for  the  coneenratlon  of  endan^ivred 
species  and  threatened  species,  the  Secretary 
must  And.  and  annually  thereafter  reconfirm 
such  finding,  that  under  the  State  program 

(I)  authority  resides  in  the  State  agency 
to  conserve  resident  species  of  fish  or  wl^l- 
Ufe  determined  by  the  State  agency  or  Ihe 
Secretary   to   be  endangered   or   threatened: 

(3)  the  State  agency  has  establiahed  ac- 
ceptable conservation  programs,  conautent 
with  the  purposes  and  policies  of  this  Act, 
for  all  resident  species  of  fiah  or  wildlife  In 
the  State  which  are  deemed  by  the  Secretary 
to  be  endangered  or  threatened,  and  has  fur- 
nished a  copy  of  such  plan  and  program  to- 
gether with  all  pertinent  detalU,  Informa- 
tion, and  data  requested  to  the  Secretary: 

(3)  the  State  agency  la  authorized  to  con- 
duct Investlgatlona  to  determine  the  status 
and  requirements  for  survival  of  resident 
species  of  fish  and  wildlife: 

(4)  the  State  agency  la  authorized  to 
establish  progranaa.  including  the  acquisition 
of  land  or  aquatic  habitat  or  Interests 
therein,  for  the  conservation  of  resident  en- 
dangered species  or  threatened  species;  and 

(5)  provision  la  made  for  public  partlclpa- 
Uon  In  designating  resident  species  of  fiah 
or  wildlife  as  endangered  or  threatened. 

(d)  AixocATTON  or  Ptmos. —  ( 1 )  The  Secre- 
tary la  authorized  to  provide  financial  assist- 
ance to  any  State,  through  its  respective 
State  agency,  which  has  entered  into  a  co- 
operative agreement  pursuant  to  subsection 
(c)  of  this  section  to  assist  in  development 
of  programs  for  the  conservation  of  en- 
dangered and  threatened  species.  The  Secre- 
tary shall  make  an  allocation  of  appropri- 
ated funds  to  such  States  based  on  con- 
sideration of — 

(A)  the  International  commitments  of 
the  United  States  to  protect  endangered 
species  or  threatened  species; 

iB)  the  readiness  of  a  State  to  proceed 
with  a  conservation  program  consistent  with 
the  objectives  and  purposes  of  this  Act: 

(C)  the  niunber  of  endangered  species  and 
threatened  species  within  a  State; 

(D)  the  potential  for  restoring  endangered 
species  and  threatened  species  within  a  State; 
and 

(E)  the  relative  urgency  to  Initiate  a  pro- 
gram to  restore  and  protect  an  endangered 
species  or  threatened  species  In  ternis  of 
survival  of  the  species. 

So  much  of  any  appropriated  funds  allocated 
for  obligation  to  any  State  for  any  fiscal  year 
as  remains  unobligated  at  the  close  there- 
of Is  authorized  to  be  made  available  to  that 
State  until  the  close  of  the  succeeding  fiscal 
year.  Any  amount  allocated  to  any  State 
which  Is  unobligated  at  the  end  of  the  period 
during  which  is  available  for  expenditure  is 
authorized  to  be  made  available  for  exptnd- 
Iture  by  the  Secretary  In  conducting  pro- 
grams under  this  section. 

(3>  Such  cooperative  agreement*  shall  pro- 
vide for  (A)  the  actions  to  be  taken  by  the 
Secretary  and  the  States:  (B)  the  benefits 
that  are  expected  to  be  derived  In  connec- 
tion with  the  conservation  of  endangered  or 
threatened  species;  (C)  the  estimated  cost 
of  these  actions:  and  (D)  the  share  of  such 
costs  to  be  borne  by  the  Federal  Government 
and  by  the  States:  except  that — 

(I)  the  Federal  share  of  such  program 
c«5t«  shall  not  exceed  «e»4  per  centum  of  the 
estimated  program  costs  stated  In  the  agree- 
ment; and 

(II)  the  Federal  share  may  be  Increased  to 
75  pwr  centum  whenever  two  or  more  States 
having  a  common  Interest  In  one  or  more  en- 
dangered or  threatened  species,  the  conserva- 
tion of  which  may  be  enhanced  by  coopera- 
tion of  such  States,  enter  Jointly  Into  an 
agreement  with  the  Secretary. 

The  Secretary  may.  In  his  discretion,  and 
under  such  rule*  and  regulations  as  he  may 
prescribe,  advance  funds  to  the  State  for  fi- 
nancing  the   United   SUtes   pro   rata   share 


agreed  upon  In  the  cooperaUve  agreement. 
For  the  purposes  at  thla  secUon.  the  non- 
Pederal  share  may.  In  the  dIacreUon  of  the 
Secretary,  be  In  the  form  of  money  or  real 
property,  the  value  of  which  will  be  deter- 
mined by  the  Secretary,  whose  decision  shall 
be  final. 

(e)  RKvirw  OF  8tat«  Pkockams. — Any  ac- 
tion taken  by  the  Secretary  under  this  sec- 
tion shall  be  subject  to  hla  periodic  review 
at  no  greater  than  annual  Intervals. 

(f)  CoKTUCTs  BrrwxxN  Fkdhial  akd  Stats 
Laws — Any  State  law  or  regulation  which 
applies  with  respect  to  the  Importation  or  ex- 
portaUon  of.  or  interstate  or  foreign  com- 
merce In.  endangered  species  or  tlireatened 
species  la  void  to  the  extent  that  it  may  ef- 
fectively (1)  permit  what  is  prohibited  by 
this  Act  or  by  any  regulation  which  imple- 
ments thla  Act,  or  (2)  prohibit  what  Is  au- 
thorized pursuant  to  an  exemption  or  permit 
provided  for  in  this  Act  or  In  any  regulation 
which  Implements  thto  Act.  ThU  Act  shall 
not  otherwise  be  construed  to  void  any  State 
law  or  regulation  which  Is  Intended  to  con- 
serve migratory,  resident,  or  Introduced  fiah 
or  wildlife,  or  to  permit  or  prohibit  sale  of 
such  fiah  or  wildlife.  Any  State  law  or  reg- 
ulation respecting  the  taking  of  an  endan- 
gered species  or  threatened  species  may  be 
more  restrictive  than  the  exemptions  or  per- 
mits provided  for  in  this  Act  or  In  any  regu- 
lation which  Implements  thla  Act  but  not 
less  restrictive  than  the  prohibitions  so  de- 
ft ned. 

(g)  TaANsmoN. —  (1)  For  purposes  of  this 
subsection,  the  term  '•establishment  period" 
means,  with  respect  to  any  State,  the  period 
beginning  on  the  date  of  enactment  of  tills 
Act  and  ending  on  whichever  of  the  follow- 
ing dates  first  occurs:  (A)  the  date  of  the 
close  of  the  120-day  period  following  the 
adjournment  of  the  first  regular  session  of 
the  legislature  of  such  State  which  com- 
mences after  such  date  of  enactment,  or  (B) 
the  date  of  the  close  of  the  15-month  period 
following  such  date  of  enactment. 

(2)  The  prohibitions  set  forth  In  or  au- 
thorized pursuant  to  sections  4(d)  and  9(a) 
(1)  (B)  of  this  Act  shall  not  apply  with  re- 
spect to  the  taking  of  any  resident  endan- 
gered species  or  threatened  species  (other 
than  species  listed  In  Appendix  I  to  the  Con- 
vention or  otherwise  specifically  covered  by 
any  other  treaty  or  Federal  law)  within  any 
State— 

(A)  which  la  then  a  party  to  a  cooperative 
agreement  with  the  Secretary  pursuant  to 
section  6(c)  of  thla  Act  (except  to  the  ex- 
tent that  the  taking  of  any  such  species  Is 
contrary  to  the  law  of  such  State):  or 

iBi  except  for  any  time  within  the  estab- 
lishment period  when — 

(I)  the  Secretary  applies  such  prohibition 
to  such  species  at  the  request  of  the  State, 
or 

(II)  the  Secretary  applies  such  prohibition 
after  he  finds,  and  publishes  his  finding,  that 
an  emergency  exists  posing  a  significant  risk 
to  the  well-being  of  such  species  and  that 
the  prohibition  must  be  applied  to  protect 
such  species.  The  Secretary's  finding  and 
publication  may  be  made  without  regard  to 
the  public  hearing  or  comment  provisions  of 
section  653  of  tlUe  6,  United  State*  Code,  or 
any  other  provision  of  this  Act;  by  such  pro- 
hibition shall  expire  90  days  after  the  date 
of  Its  Imposition  unless  the  Secretary 
further  extends  such  prohibition  by  pub- 
lishing notice  and  a  statement  of  Justifica- 
tion of  such  extension 

(h)  Rrct3XATioN8 — The  Secretary  la  au- 
thorized to  promulgate  such  refnjiatlons  as 
may  be  appropriate  to  carry  out  the"provl- 
sloQS  of  this  section  relating  to  financial 
assistance  to  States. 

(1)  AppaopmiATioNs. — ^Por  the  purposes  of 
thla  section,  there  la  authorized  to  be  ap- 
propriated through  the  fiscal  year  ending 
June  30,  1977,  not  to  exceed  •10,000,000. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42531 


1NTEB.\CENCT    COOPIKATION 

Sxc.  7.  The  Secretary  shall  review  other 
programs  administered  by  him  and  utilize 
such  programs  In  furtherance  of  the  pur- 
poses of  this  Act.  All  other  Federal  depart- 
ments and  agencies  shall,  in  consultation 
with  and  with  the  assistance  of  the  Secre- 
tary, utUlze  their  authorities  in  furtherance 
of  the  purposes  of  this  Act  by  carrying  out 
programs  for  the  conservation  of  endangered 
species  and  threatened  species  lUted  pur- 
suant to  section  4  of  this  Act  and  by  taking 
such  action  necessary  to  Insure  that  actions 
authorized,  funded,  or  carried  out  by  them 
do  not  Jeopardize  the  continued  existence  of 
such  endangered  ^>ecles  and  threatened 
species  or  result  In  the  destruction  or  modi- 
fication of  habitat  of  such  soecies  which  Is 
determined  by  the  Secretary,  after  consulta- 
tion as  appropriate  with  the  affected  States 
to  be  critical. 

TOTESNATIONAL    ASSISTANCX 

Pec.  8.  (a)  Financial  Assistance.— As  a 
demonstration  of  the  commitment  of  the 
United  States  to  the  worldwide  protection  of 
endangered  species  and  threatened  species, 
the  President  may.  subject  to  the  provisions 
of  section  1415  of  the  Supplemental  Appro- 
priation Act,  1953  (31  U.S.C.  724).  use  for- 
eign currencies  accruing  to  the  United  States 
Government  under  the  Agricultural  Trade 
Development  and  Assistance  Act  of  1954  or 
any  other  law  to  provide  to  any  foreign 
country  (with  Its  consent)  assistance  In  the 
development  and  management  of  programs 
In  that  country  which  the  Secretary  deter- 
mines to  be  necessary  or  useful  for  the  con- 
servation of  any  endangered  species  or 
threatened  species  listed  by  the  Secretary 
pursuant  to  section  4  of  this  Act.  The  Presi- 
dent shall  provide  assistance  (which  In- 
cludes, but  Is  not  limited  to,  the  acquisition, 
by  lease  or  otherwise,  of  lands,  waters,  or 
Interests  therein)  to  foreign  countries  under 
this  section  under  such  terms  and  conditions 
as  he  deems  appropriate.  Whenever  foreign 
currencies  are  available  for  the  provision  of 
assli-.ance  under  this  section,  such  curren- 
cies shall  be  used  In  preference  to  funds  ap- 
propriated under  the  authority  of  section  15 
of  this  Act. 

(bl        ENCOtTRAOEMENT       OF       FOREIGN       PrO- 

cRAjrs. — In  order  to  carry  out  further  the 
provisions  of  this  Act,  the  Secretary,  through 
the  Secretary  of  State,  shall  encourage — 

^)  foreign  countries  to  provide  for  the 
conV?rvation  of  fish  or  wildlife  Including  en- 
dangered species  and  threatened  species 
listed  pursuant  to  section  4  of  this  Act; 

(2)  the  entering  Into  of  bilateral  or  multi- 
lateral agreements  with  foreign  countries  to 
provide  for  such  conservation;   and 

(3)  foreign  persons  who  directly  or  indi- 
rectly take  fish  or  wildlife  In  foreign  coun- 
tries or  on  the  high  seas  for  importation  Into 
the  United  States  for  commercial  or  other 
;nirpo:iCs  to  develop  and  carry  cut  with  such 
assistance  as  he  may  provide,  conservation 
practices  designed  to  enhance  such  fish  or 
wildlife  and  their  habitat. 

(C)  Personnei.. — After  consultation  with 
the  Secret.iry  of  State,  the  Secretary  may— 

( 1 )  assign  or  otherwise  make  available  anv 
officer  or  employee  of  his  department  for  the 
purpose  of  cooperating  w'.lh  foreign  countries 
and  International  organizations  In  developing 
personnel  resources  and  programs  which  pro* 
mote  the  conservation  of  fish  or  wildlife; 
and 

(2)  conduct  cr  provide  financial  assistance 
for  the  educational  training  of  foreign  per- 
sonnel. In  this  countn-  or  abroad,  in  fish, 
wildlife,  or  plant  management,  research  and 
law  enforcement  and  to  render  professional 
assistance  abroad  In  such  matters. 

(d)  iNvrsTicATioNs.— After  consultation 
with  the  Secretary  of  State  and  the  Secre- 
tary of  the  Treasury,  as  appropriate,  the 
Setretary  may  conduct  or  cause  to  be  con- 
ducted such  law  enforcement  Investigations 


and  research  abroad  as  he  deems  necessary 
to  carry  out  the  purposes  of  this  Act. 

(e)  Convention  Implementation. — The 
President  is  authorized  i.nd  directed  to  des- 
ignate appropriate  agencies  to  act  as  the 
Management  Authority  or  Authorities  and 
the  Scientific  Authority  or  Authorities  pur- 
suant to  the  Convention.  The  agencies  so 
designated  shaU  thereafter  be  authorized  to 
do  all  things  assigned  to  them  under  the 
Convention,  Including  the  Issuance  of  per- 
mits and  certificates.  The  agency  designated 
by  the  President  to  communicate  with  other 
parties  to  the  Convention  and  with  the  Sec- 
retariat shall  also  be  empowered,  where  ap- 
propriate. In  consultation  with  the  State  De- 
partment, to  act  on  behalf  of  and  represent 
the  United  States  In  all  regards  as  required 
by  the  Convention.  The  President  shall  also 
designate  those  agencies  which  shall  act  on 
behalf  of  and  represent  the  United  States 
In  all  regards  as  required  by  the  Convention 
on  Natur*  Protection  and' Wildlife  Preser- 
vation In  the  Western  Hemisphere. 

PROHIBrm>    ACTS 

Sec.  9.  (a)  General — (1)  Except  as  pro- 
vided in  sections  6(g)  (2)  and  10  of  this  Act, 
with  respect  to  any  endangered  sp>ecles  of 
fish  or  wUdllfe  listed  pursuant  to  section  4  of 
this  Act  It  is  unlawful  for  any  person  sub- 
ject to  the  Jurisdiction  of  the  United 
States  to — 

(A)  import  any  such  species  into,  or  export 
any  such  species  from  the  United  States; 

(B)  take  any  such  species  within  the 
United  States  cw  the  territorial  sea  of  the 
United  States: 

(C)  take  any  such  species  upon  the  high 
seas: 

(D)  possess,  sell,  deliver,  carry,  transport, 
or  ship,  by  any  means  whatsoever,  any  such 
species  taken  in  violation  of  subparagraphs 
(B)  and  (C); 

(E)  deliver,  receive,  carry,  transport,  or 
ship  In  Interstate  or  foreign  commerce,  by 
any  means  whatsoever  and  In  the  course  of 
a  commercial  activity,  any  such  species: 

(P)  sell  or  offer  for  s-le  in  interstate  or 
foreign  commerce  any  such  species;  or 

(G)  violate  any  regulation  pertaining  to 
such  species  or  to  any  threatened  species  of 
fl.'^h  or  wildlife  listed  pursuant  to  section  4 
of  this  Act  and  promulgated  by  the  Secretary 
pursuant  to  authority  provided  by  this  Act. 

(2)  Except  as  provided  In  sections  6(g)  (2) 
and  10  of  this  Act,  with  respect  to  anv  en- 
dangered species  of  plants  listed  pursuant 
to  section  4  of  this  Act,  It  Is  unlawful  for 
any  person  subject  to  the  Jurisdiction  of  the 
United  States  to — 

(A)  Import  any  such  snecles  into,  or  export 
any  such  species  from,  the  United  States: 

(B)  deliver,  receive,  carry,  transport,  or 
shin  in  Interstate  or  foreign  commerce,  by 
any  means  whatsoever  and  In  the  course  of 
a  commercial  activity,  any  such  species: 

(C)  sell  or  offer  for  sale  in  Interstate  or 
foreign  commerce  any  such  species;  or 

(D)  violate  any  regulation  pert«l}ang  to 
such  species  or  to  any  threatened  species  of 
plants  listed  pursuant  to  section  4  of  this 
Act  and  promulgated  by  the  Secretary  pursu- 
ant to  authority  provided  by  this  Act. 

(b)  Spbcies  Held  in  CAPmrrT  or  Con- 
TROLLEO  Environment. — The  provisions  of 
this  section  shall  n'~t  apply  to  any  fish  or 
wildlife  helc*.  in  captivity  or  in  a  controlled 
etuironment  on  the  effective  date  of  this  Act 
If  the  purposes  of  such  holding  are  not  con- 
trary to  the  purposes  of  this  Art;  except  that 
this  subsection  shall  not  applv  In  the  case  of 
any  fish  or  wildlife  held  in  the  course  of  a 
commercial  activity.  With  respect  to  any  act 
prohibited  by  this  section  which  occurs  "after 
a  period  of  180  days  from  the  effective  date 
of  this  Act.  there  shaU  be  a  rebuttable  pre- 
sumption th.-.t  the  fish  or  wildlife  Involved 
la  such  act  was  not  held  In  captivity  or  In 
a  controlled  en\ironment  on  such  effective 
data. 


(c)  Violation  or  Convention. —  (1)  It  Is 
unlawful  for  any  person  subject  to  the  Juris- 
diction of  the  United  States  to  engage  In  any 
trade  In  any  specimens  contrary  to  the  pro- 
visions of  the  Convention,  or  to  pK>ssess  any 
specimens  traded  contrary  to  the  provisions 
of  the  Convention,  including  the  definitions 
of  terms  in  article  I  thereof. 

(2)  Any  importation  Into  the  United 
States  of  fish  or  wildlife  shall,  if — 

(A)  such  fish  or  wildlife  Is  not  an  endan- 
gered species  listed  pursuant  to  section  4  of 
this  Act  but  Is  listed  in  Appendix  n  to  the 
Convention, 

(B)  the  taking  and  exportation  of  such 
fish  or  wildlife  Is  not  contrary  to  the  provi- 
sions of  the  Convention  and  all  other  ap- 
plicable requirements  of  the  Convention 
have  been  satisfied, 

(C)  the  f^pllcable  requirements  of  sub- 
sectlona  (d) ,  (e) .  and  (f )  of  this  section  have 
been  satisfied,  and 

(D)  such  importation  is  not  made  In  the 
course  of  a  commercial  activity, 

be  presumed  to  be  an  importation  not  in 
violation  of  any  provision  of  this  Act  or  any 
regulation  Issued  pursuant  to  this  Act. 

(d)  Imports  and  Exports. —  (1)  It  U  un- 
lawful for  any  person  to  engage  In  business 
as  an  Importer  or  exporter  of  fish  or  wild- 
life (other  than  shellfish  and  fishery  pro- 
ducts which  (A)  are  not  listed  pursuant  to 
section  4  of  this  Act  as  endangered  species 
or  threatened  species,  and  (B)  are  Imported 
for  purposes  of  human  or  animal  consump- 
tion or  taken  in  waters  under  the  Jurisdic- 
tion of  the  United  States  or  on  the  high  seas 
for  recreational  purposes)  or  plants  without 
first  having  obtained  permission  from  the 
Secretary. 

(2)  Any  person  required  to  obtain  per- 
mission under  paragraph  ( I )  of  this  subsec- 
tion shall — 

(A)  keep  such  records  as  will  fully  and 
correctly  disclose  each  Importation  or  ex- 
portation of  fish,  wildlife,  or  plants  made  by 
him  and  the  subsequent  disposition  made  by 
him  with  resi)ect  to  such  fish,  wildlife,  or 
plants; 

(B)  at  all  reasonable  times  upon  notice  by 
a  duly  authorized  representative  of  the  Sec- 
retary, afford  such  representative  access  to 
his  places  of  business,  an  opp>ort  unity  to 
examine  his  lnvent<»y  of  imported  fish,  vvild- 
liie,  or  plants  and  the  records  required  to  be 
kept  under  subj>aragraph  (A)  of  this  i>ara- 
graph,  and  to  copy  such  records;  and 

(C)  file  such  reports  as  the  Secretary  may 
require.  , 

(3)  The  Secretary  shall  prescribe  such  reg- 
tilations  as  are  necessary  and  appropriate  to 
carry  out  the  purposes  of  this  subsection. 

(e)  Reports. — It  Is  unlawful  for  any  per- 
son Importing  or  expwrting  fish  or  wUdllfe 
(Other  than  shellfish  and  fishery  products 
which  (1)  are  not  listed  pursuant  to  section 
4  of  this  Act  as  endangered  or  threatened 
species,  and  (2)  are  Imported  for  purposes  of 
human  or  anlma!  consumption  or  taken  in 
waters  under  the  Jurlsdlctlcm  of  the  United 
Statfs  or  on  the  high  seas  for  recreational 
purposes)  or  plants  to  fall  to  fUe  anv  declara- 
tion or  report  as  the  Secretary  deems  neces- 
sary to  facilitate  enforcement  of  this  Act  or 
to  meet  the  obligations  of  the  Convention. 

(f)  Designation  or  Ports — (1)  It  Is  un- 
lawful for  any  person  subject  to  the  Juris- 
diction of  the  United  SUtes  to  import  Into 
or  export  from  the  United  SUtes  anv  fish  dr 
wUdllfe  (Other  than  shellflah  and'  fisherr 
products  which  (\)  are  not  listed  pursuant  to 
section  4  of  this  Act  aa  endangered  spectea 
or  threatened  species,  and  (B)  are  Impjorted 
for  purposes  of  human  or  animal  consump- 
tion or  Uken  In  waters  under  the  Jurisdiction 
of  the  United  SUtes  or  on  the  high  seas  for 
recreational  purposes)  or  plants,  exoept  at  a 
port  or  FHjrts  designated  by  the  Secretary 
of  the  Interior.  For  the  purpose  of  facUltattx^ 
enforcement  of  this  Act  aud  reducing  the 
costs  thereof,  tlie  Secretary  of  the  Interior. 


42532 


CONGRESSIONAL  RECORD  —  SENATE 


with  approval  of  the  Secretary  of  the  Treas- 
ury and  after  notice  and  opportunity  for 
public  hearing,  may.  by  regulation,  designate 
porta  and  change  such  designations.  The  Sec- 
retary of  the  Interior,  under  ruch  terms  and 
conditions  as  he  may  prescribe,  may  permit 
the  Importation  or  exportation  at  nondeslg- 
nated  ports  In  the  Interest  of  the  health  or 
safety  of  the  flsh  or  wUdlUe  or  plants,  or  for 
other  reasons  If,  in  his  discretion,  he  deems 
It  appropriate  and  consistent  with  the  pur- 
pose of  this  subsection. 

(2)  Any  port  designated  by  the  Secretary 
of  the  Interior  under  the  authority  of  sec- 
tion 4(d)  of  the  Act  of  December  5,  1969  (16 
TJS.C.  666cc-4(d)  ).  shall.  If  such  designation 
Is  In  effect  on  the  day  before  the  date  of  the 
enactment  of  this  Act.  be  deemed  to  be  a  port 
designated  by  the  Secretary  under  paragraph 
(1)  of  this  subsection  until  such  time  as  the 
Secretary  otherwise  provldee. 

(g)  Violations. — It  Is  unlawful  for  any 
person  subject  to  the  Jurisdiction  of  the 
United  States  to  attempt  to  commit,  solicit 
another  to  commit,  or  cause  to  be  committed. 
any  offense  defined  In  this  section. 

rXCEPTIONS 

Sec.  10.  (a)  Piajdrrs.— The  Secretary  may 
permit,  under  such  terms  and  conditions  as 
he  may  prescribe,  any  act  otherwise  pro- 
hibited by  section  9  of  this  Act  for  scientific 
purposes  or  to  enhance  the  propagation  or 
survival  of  the  affected  species. 

(b)  Hardship  Exxmptions. —  (1)  If  any 
person  enters  Into  a  contract  with  respect  to 
a  species  of  flsh  or  wildlife  or  plant  beforw 
the  date  of  the  publication  In  the  Federal 
Register  of  notice  of  consideration  of  that 
species  as  an  e.idangered  species  a.id  the  yub- 
Fequent  listing  of  that  species  as  an  endang- 
ered species  pu^3ua.^t  to  section  4  of  this  Act 
win  cau5e  undue  economic  hardship  to  such 
person  under  the  contract,  the  Secretary.  In 
order  to  minimize  such  hardship,  may  ex- 
empt such  person  from  the  application  of 
section  9(a)  of  thU  Act  to  the  extent  the 
Secretary  deems  appropriate  If  such  person 
applies  to  him  for  such  exemption  ana  In- 
cludes with  such  application  such  Informa- 
tion as  the  Secretary  may  require  to  prove 
such  hardship:  except  that  (A)  no  such  ex- 
emption shall  be  for  a  duration  of  more  than 
one  year  from  the  date  of  publication  in  the 
Federal  Register  of  notice  of  consideration 
of  the  species  concerned,  or  shall  apply  to  a 
quantity  or  fish  or  wildlife  or  plants  in  ex- 
cess of  that  specified  by  the  Secretary:  (B) 
the  one-year  period  for  those  species  oif  fish 
or  wildlife  listed  by  the  Secretary  as  en- 
dar.!:er«l  prior  to  the  effective  date  of  this 
Act  shall  expire  In  accortiance  with  the  terms 
of  section  3  of  the  Act  of  December  5  1969 
(83  Stat.  375):  and  (C)  no  such  exemption 
may  be  granted  for  the  importation  or  ex- 
•portation  of  a  specimen  listed  In  Appendix 
I  of  the  Convention  which  Is  to  be  used  In 
a  commercial  activity. 

(2)  Aa  used  In  this  subsection,  the  term 
"undue  economic  hardship"  shall  Include 
but  not  be  limited  to: 

(A>  substantial  economic  loss  resulting 
from  Inabllltv  caused  bv  this  Act  to  perform 
contrncts  with  respect  to  species  of  fluh  and 
wUdUfe  entered  into  prior  to  the  date  of 
publication  in  the  Federal  Register  of  a 
notice  of  consideration  of  such  specie*  as  an 
endangered  speclee: 

(B)  substantial  economic  Ir«»  to  persons 
who,  for  the  year  prior  to  the  notice  of  con- 
sideration of  such  ipecles  as  an  endangered 
species,  derived  a  substantial  portion  of  their 
income  from  the  lawful  tatting  of  any  listed 
species,  which  taking  would  be  made  unlaw- 
ful under  this  Act:  or 

iCi  curtailment  of  subsistence  taking 
made  unlawful  under  thU  Act  bv  persons  H) 
not  reasonably  able  to  secure  other  9ourc«  of 
subsistence:  and  (II  i  dependent  to  a  sub- 
■tantial  extent  upon  hunting  and  fishing  for 
•ubautence;   and   (lU)    who  muat  engac«  in 


December  19,  1973 


ruch  curtailed  taking  for  subsistence  pur- 
poses. 

(3)  The  Secretary  may  make  further  re- 
quirements for  a  showing  of  undue  economic 
hardship  as  he  deems  fit.  Exceptions  granted 
under  this  section  may  be  limited  by  the 
Secretary  In  his  discretion  as  to  time.  area, 
or  other  factor  of  applicability. 

(c)  Noncx  AND  Rxvnw. — The  Secretary 
shall  publish  notice  In  the  Federal  Register 
of  each  application  for  an  exemption  or  per- 
mit which  Is  made  under  this  subsection. 
Each  notice  shall  Invite  the  submission  from 
Interested  parties,  within  thirty  days  after 
the  date  of  the  notice,  written  data,  views, 
or  arguments  with  respect  to  the  application. 
Information  received  by  the  Secretary  as  a 
pan  of  any  application  shall  be  available  to 
the  public  as  a  matter  of  public  record  at 
every  stage  of  the  proceeding 

(d)  PxaMiT  AND  Exemption  Pouct. — The 
Secretary  may  grant  exceptions  under  sub- 
sections (a)  and  (b)  of  this  section  only  If 
he  finds  and  publishes  his  flndlnff-ln  the 
Federal  Register  that  (1)  such  exceptions 
were  applied  for  In  good  faith,  (2)  If  granted 
and  exercised  will  not  operate  to  the  dis- 
advantage of  such  endangered  species,  and 
(3)  will  be  consistent  with  the  purposes  and 
policy  set  forth  in  section  2  of  this  Act. 

(e)  Alaska  Natives. —  (1)  Except  as  pro- 
vided In  paragraph  (4)  of  this  subsection  the 
provisions  of  this  Act  shall  not  apply  with 
respect  to  the  taking  of  any  endangered  spe- 
cies or  threatened  species,  or  the  Importation 
of  any  such  species  taken  pursuant  to  this 
section,  by — 

( A)  any  Indian.  Aleut,  or  Eskimo  who  Is  an 
Al'skan  Native  who  resides  In  Alaska:  or 

(B)  any  non-native  permanent  resident  of 
an  Alaskan  native  village: 
if  such  taking  Is  nrinjarlly  for  subsistence 
pvirpoees.  Non-edible  byproducts  of  apecles 
taken  pursuant  to  this  section  may  be  sold  In 
Interstate  commerce  when  made  Into  au- 
thentic native  articles  of  handicrafts  and 
clothing:  except  that  the  provisions  of  this 
subsection  shall  not  apply  to  any  non-native 
resident  of  an  .Mi'kan  native  village  found 
br  the  Secretary  to  be  not  primarily  depen- 
d->nt  upon  the  taking  of  fish  and  wildlife  for 
consumption  or  for  the  creation  and  sale  of 
authentic  native  articles  of  handicrafts  and 
clothing. 

(21  Any  taking  uniJer  this  subsection  may 
not  be  accomplUhed  In  a  wasteful  manner. 

(3)  As  used  In  this  subsection — 
(1>  The  term  "subsistence"  Includes  sell- 
ing any  edible  portion  of  fi.sh  or  wildlife  In 
native  villages  and  towns  In  Alaska  for  native 
consumption  n-tthln  native  village*  or  towns: 
and 

(ll»  The  term  "luthentlc  native  articles 
of  handicrafts  and  clothing"  means  Items 
composed  wholly  or  In  .some  significant  re- 
spect of  natural  materials,  and  which  are  pro- 
duced, decor-.ted.  or  fashioned  In  the  exercise 
of  traditional  native  handicrafts  without  the 
use  of  pantographs,  multiple  carvers,  or  other 
mass  copvlng  devices.  Traditional  native  han- 
dicrafts Include,  but  are  not  limited  to.  weav- 
ing, carving,  stitching,  sewing,  lacking,  bead- 
ing, drawing,  and  painting. 

(4)  Notwithstanding  the  provisions  of 
paragraph  (1)  of  this  subsection,  whenever 
the  Secretary  determines  that  any  species  of 
fish  or  wildlife  which  Is  subject  to  taking 
under  the  provisions  of  this  subsection  is  an 
endangered  species  or  threatened  species, 
and  that  such  taking  materially  and  ncTR- 
tlvely  affecta  the  threatened  or  endangered 
species,  he  may  prescribe  regulations  upon 
the  taking  of  such  species  by  any  such  In- 
dian. Aleut,  Eskimo,  or  non-Native  Alaskan 
resident  of  an  Alaakan  natlTe  village.  Such 
regulations  may  be  established  with  reference 
to  species.  gec)gTaphlcal  description  of  the 
area  Included,  the  season  for  taking,  or  any 
other  factors  related  to  the  reason  for  estab- 
lishing such  regulations  and  consistent  with 


the  policy  of  thla  Act.  Such  regulations  shall 
be  prescribed  after  a  notice  and  hearings  in 
the  affected  Judicial  dUtrlcts  of  Alaska  and 
as  otherwise  required  by  section  103  of  the 
Marine  Mammal  Protection  Act  of  1972.  and 
shaU  be  removed  as  soon  as  the  Secretary  de- 
termines that  the  need  for  their  Imposition* 
ha*  disappeared. 

penalties  and  enpobcememt. 
Sec.  11.  (a)  Civil  PENALTixa.—  (i)  Any  per- 
son who  knowingly  violate*,  or  who  know- 
ingly commits  an  act  In  the  course  of  a  com- 
merclal  activity  which  violates,  any  provision 
of  this  Act.  or  any  provision  of  any  permit 
or  certificate  lasued  hereunder,  or  of  any  reg- 
ulauon  lasued  In  order  to  Implement  subsec- 
tion (a)(1)   (A).  (B).  (C).  (D).  (E).  or  (P), 
(a)(2)  (A).  (B).or  (C).  (c).  (d)  (other  than 
a  regulation  relating  to  recordkeeping  or  fil- 
ing of  reports),  (f)  or  (g)  of  section  9  of  this 
Act,  may  be  assesed  a  clvU  penalty  by  the 
Secretary  of  not  more  than  $10,000  for  each 
violation.  Any  person  who  knowingly  violates, 
or   who   knowingly  commits   an   act   in   the 
course  of  a  commercial   activity  which  vio- 
lates, any  provision  of  any  other  regulation 
Issued  under  this  Act  may  be  assessed  a  civU 
penalty  by  the  Secretary  of  not  more  than 
$5,000  for  each   such   violation.   Any   person 
who  otherwise  violates  any  provision  of  this 
Act,  or  any  regulation,  permit,  or  certificate 
Issued  hereunder,  may  be  aaseeaed  a  clvU  pen- 
alty by  the  Secretary  of  not  more  than  $1,000 
for  each  such  violation.  No  penalty  may  be 
assessed  under  this  subsection  unless  such 
person  is  given  notice  and  opportunity  for 
a  hearing  with  respect  to  such  violation.  Each 
violation  shall  be  a  separate  offense.  Any  such 
civil  penalty  may  be  remitted  or  mitigated 
by  the  Secretary    Upon  any  faUure  to  pay  a 
penalty  assessed  under  this  subsection,  the 
Secretary  may  request  the  Attorney  General 
to  Institute  a  clvU  action  in  a  district  court 
of  the  United  State*  for  any  district  In  which 
such  person   is  found,   resides,  or   transacts 
buslneo*  to  collect  the  penalty  and  such  court 
shall   have  Jurisdiction   to   hear   and  decide 
any  such  action.  The  court  shall  hear  such 
action  on  the  record  made  before  the  Secre- 
tary and  shall  sustain  his  action  If  It  Is  sup- 
ported by  substantial  evidence  on  the  record 
considered  as  a  whole. 

(2)  Hearings  held  during  proceedings  for 
the  assessment  of  civil  penalties  authorized 
by  paragraph  ( 1 )  of  this  subsection  shall  be 
conducted  In  accordance  with  section  564  of 
title  5,  United  States  Code,  The  Secretary 
may  issue  subpenaa  for  the  attendance  and 
testimony  of  witnesses  and  the  production  of 
relevant  papers,  books,  and  documents,  and 
admlnUter  oaths.  Witnesses  summoned  shall 
be  paid  the  same  fees  and  mileage  that  are 
paid  to  witnesses  In  the  courts  of  the  United 
SUtes.  In  case  of  contumacy  or  refusal  to 
obey  a  subpena  served  upon  any  person  pur- 
suant to  this  paragraph,  the  district  court  of 
the  United  States  for  any  district  in  which 
such  person  is  found  or  resides  or  transacts 
business,  upon  application  by  the  United 
States  and  after  notice  to  such  person,  shall 
have  Jurisdiction  to  Issue  an  order  requiring 
such  person  to  appear  and  give  testimony 
before  the  Secretary  or  to  appear  and  pro- 
duce documents  before  the  Secretary,  or  both, 
and  any  faUure  to  obey  such  order  of  the 
court  may  be  punished  by  such  court  as  a 
, contempt  thereof. 

(b)  Criminal  Violations. — (1)  Any  person 
who  willfully  commits  an  act  which  violates 
any  provision  of  this  Act.  of  any  permit  or 
certificate  Issued  hereunder,  or  of  any  reg- 
ulation Issued  In  order  to  Implement  sub- 
section (a)(1)  (A).  (B).  (C).  (D).  (E),  or 
(F);  (a)(2)  (A).  (B).CH-  (C)  (c).(d)  (other 
than  a  regulation  relating  to  recordkeeping 
or  filing  of  reports,  (f)  or  (g)  of  section  9 
of  this  Act  shall,  upon  conviction,  be  fined 
rot  more  than  $20,000  or  Imprisoned  for  not 
more  than  one  year,  or  both.  Any  person  who 


December  19,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42533 


willfully  commits  an  act  which  violates  any 
provision  of  any  other  regulation  Issued  un- 
der this  Act  shall,  upon  conviction,  be  fined 
not  more  than  $10,000  or  imprisoned  for  not 
more  than  six  months,  or  both. 

(2)  The  head  of  any  Federal  agency  which 
has  Issued  a  lease,  license,  permit,  or  other 
agreement  authorizing  the  use  of  Federal 
lands.  Including  grazing  of  domestic  live- 
stock, to  any  person  who  is  convicted  of  a 
criminal  violation  of  thla  Act  or  any  regula- 
tion, permit,  or  certificate  issued  hereunder 
may  Immediately  modify,  suspend,  or  revoke 
each  leewe,  license,  permit,  or  other  agree- 
ment. The  Secretary  shall  also  suspend  for 
a  period  of  up  to  one  year,  or  cancel,  any 
Federal  hunting  or  fishing  permits  or  stamps 
issued  to  any  person  who  is  convicted  of  a 
criminal  violation  of  any  provision  of  this 
Act  or  any  regulation,  permit,  or  certificate 
Issued  hereunder.  The  United  States  shall  not 
be  liable  for  the  payment*  of  any  compensa- 
tion, reimbursement,  or  damages  In  connec- 
tion with  the  modification,  suspension,  or 
revocation  of  any  leases,  licenses,  permits, 
stamps,  or  other  agreements  pursuant  to 
this  section. 

(c)  District  CoiraT  Jttrisdiction. — The 
several  district  court*  of  the  United  States, 
Including  the  courts  enumerated  In  section 
480  of  title  28,  United  States  Code,  shall  have 
Jxirlsdlctlon  over  any  actions  arising  under 
this  Act.  For  the  purpoee  cf  this  Act,  Ameri- 
can Samoa  shall  be  Included  within  the  Judi- 
cial district  of  the  District  Court  of  the 
United  States  for  the  District  of  Hawaii. 

(d)  Rewards. — Upon  the  recommendation 
of  the  Secretary,  the  Secretary  of  the  Treas- 
ury is  authorized  to  pay  an  amount  equal  to 
one-half  cf  the  civil  penalty  or  fine  paid,  but 
not  to  exceed  $2,500.  to  any  person  who  fur- 
nishes Information  which  leads  to  a  finding 
of  civil  violation  or  a  conviction  of  a  criminal 
violation  of  any  provision  of  this  Act  or  any 
regulation  or  permit  Issued  thereunder.  Any 
officer  or  employee  of  the  United  States  or  of 
any  State  or  local  government  who  furnishes 
Information  or  render.'  service  In  the  per- 
formance of  his  official  duties  shall  not  be 
eligible  for  payment  under  this  section. 

(e)  Entorcement. — (1)  The  provisions  of 
this  Act  and  any  regulations  or  p)ermlts  Is- 
sued pursuant  thereto  shall  be  enforced  by 
the  Secretary,  the  Secretary  of  the  Treasury, 
or  the  Secretary  of  the  Department  In  which 
the  Coast  Guard  is  operating,  or  all  such 
Secretaries.  Each  such  Secretary  may  utilize 
by  agreement,  with  or  without  reimburse- 
ment, the  personnel,  services,  and  facilities 
of  any  other  Federal  agency  or  any  State 
agency  for  purposes  of  enforcing  this  Act. 

(2)  The  Judges  of  the  district  courts  of  the 
United  States  and  the  United  States  magis- 
trates m:\y.  within  their  respective  Jurisdic- 
tions, upon  proper  oath  or  affirmation  show- 
ing probable  cause,  issue  such  warrants  or 
other  process  as  may  be  required  for  enforce- 
ment c4  this  Act  and  anv  regulation  Issued 
thereunder. 

(3)  Any  person  authorized  by  the  Secre- 
tary, the  Secretary  of  the  Treasury,  or  the 
Secretary  of  the  Department  in  which  the 
Coast  Guard  Is  operating,  to  enforce  this  Act 
may  detain  for  Inspection  and  Inspect  any 
package,  crate,  or  other  container.  Including 
Its  contents,  and  all  accompanying  docu- 
ments, upon  Importation  or  exportation. 
Such  person  may  execute  and  serve  any  ar- 
rest warrant,  search  warrant,  or  other  war- 
rant or  civil  or  criminal  process  Issued  by  any 
officer  or  court  of  competent  Jurisdiction  for 
enforcement  of  this  Act.  Such  person  so  au- 
thorized may  search  and  seize,  with  or  with- 
out a  warrant,  as  authorized  by  law.  Any  fish, 
wildlife,  property  or  Item  so  seized  shall  be 
held  by  any  person  authorized  by  the  Secre- 
tary, the  Secrear>-  of  the  Treasury,  or  the  Sec- 
retary of  the  Department  In  which  the  Coast 
Guard  is  operating  pending  dispoeltlon  of 
civil  or  criminal  proceedings,  or  the  Institu- 


tion of  any  action  In  rem  for  forfeiture  of 
such  fish,  wildlife,  property,  or  item  pursuant 
to  paragraph  (4)  of  this  subsection:  except 
that  the  Secretary  may,  In  lieu  of  holding 
such  flsh,  wildlife,  property,  or  Item,  permit 
the  owner  or  consignee  to  poet  a  bond  or 
other  surety  satlsfactorv  to  the  Secreta,rv 

(4)  (A)  All  flsh  or  wildlife  or  plants  taken. 
possessed,  sold,  purchased,  offered  for  sale 
or  purchase,  transported,  delivered,  received, 
carried,  shipped,  exported  or  Imported  con- 
trary to  the  provisions  of  this  Act,  any  reg- 
ulation made  pursuant  thereto,  or  any  per- 
mit or  certificate  issued  herei;nder  shall  be 
subject  to  forfeiture  to  the  United  States. 

(B)  All  guns,  traps,  nets,  and  other  equip- 
ment, vessels,  vehicles,  aircraft,  and  other 
means  of  transportation  used  to  aid  the  tak- 
ing, possessing,  selling,  purchasing,  offering 
for  sale  or  purchase,  transporting,  delivering, 
receiving,  carrj'ing,  shipping,  exporting,  or 
Importing  of  any  flsh  or  wildlife  or  plants  in 
violation  of  this  Act,  any  regulation  made 
pursuant  thereto,  or  any  permit  or  certifi- 
cate issued  there  tinder  shall  be  subject  to 
forfeiture  to  the  United  States  upon  con- 
viction of  a  criminal  violation  pursuant  to 
section  U  ( b)  ( 1 )  of  thla  Act. 

(5)  All  provisions  of  law  relating  to  the 
seizure,  forfeiture,  and  condemnation  of  a 
vessel  for  violation  of  the  customs  laws,  the 
disposition  of  such  vessel  or  the  proceeds 
from  the  sale  thereof,  and  the  remission  or 
mitigation  of  such  forfeiture,  shall  apply  to 
the  seizures  and  forfeitures  Incurred,  or  al- 
leged to  have  been  Incurred,  under  the  pro- 
visions of  this  Act.  insofar  as  such  provisions 
of  law  are  applicable  and  not  inconsistent 
with  the  provisions  of  this  Act:  except  that 
all  powers,  rights,  and  duties  conferred  or 
Imposed  by  the  customs  laws  upon  any  of- 
ficer or  employee  of  the  Treasury  Department 
shall,  for  the  purposes  of  this  Act,  be  ex- 
ercised or  performed  by  the  Secretary  or  by 
such  persons  as  he  may  designate. 

(f)  Regclations. — The  Secretary,  the  Sec- 
retan-  of  the  Treasur>-,  and  the  Secretary  of 
the  Department  In  which  the  Coast  Guard  Is 
operating,  are  authorized  to  promulgate  such 
regulations  as  may  be  appropriate  to  enforce 
this  Act,  and  charge  reasonable  fees  for  ex- 
penses to  the  Government  connected  with 
permits  or  certificates  authorized  by  this 
Act  including  processing  applications  EOid 
reasonable  Inspections,  and  with  the  transfer, 
board,  handling,  or  storage  of  flsh  or  wildlife 
or  plants  and  evidentiary  Items  seized  and 
forfeited  under  this  Act.  All  such  fees  col- 
lected pursuant  to  this  subsection  shall  be 
deposited  In  the  Treasury  to  the  credit  of  the 
appropriation  which  Is  current  and  charge- 
able for  the  cost  of  furnishing  the  services. 
Appropriated  funds  may  be  exp>ended  pend- 
ing reimbursement  from  parties  in  Interest. 

(g)  CrrizEN  Suits — (1)  Except  as  provided 
In  paragraph  (2)  of  this  subsection  any  per- 
son may  commence  a  civil  suit  on  his  own 
behalf— 

(A)  to  enjoin  any  person.  Including  the 
United  States  and  any  other  governmental 
Instrumentality  or  agency  (to  the  extent  per- 
mitted by  the  eleventh  amendment  to  the 
Constitution),  who  Is  alleged  to  be  In  viola- 
tion of  any  provision  of  this  Act  or  regula- 
tion Issued  under  the  authority  thereof:  on 

(b)  to  compel  the  Secretary  to  apply,  pur- 
suant to  section  6(g)  (2)  (B)  (II)  of  this  Act, 
the  prohibitions  set  forth  In  or  authorized 
pursuant  to  section  4(d)  or  section  9(a)  (1) 
(B)  of  this  Act  with  respect  to  the  taking  of 
any  resident  endangered  species  or  threat- 
ened species  within  any  State. 
The  district  courts  shall  have  Jurisdiction, 
without  regard  to  the  amount  In  controversy 
or  the  citizenship  of  the  parties,  to  enforce 
any  such  provision  or  regulation,  as  the  case 
may  be.  In  any  civil  suit,  commenced  under 
subparagraph  (B)  the  district  court  shall 
compel  the  Secretary  to  apply  the  prohibition 
sought  If  the  court  finds  that  the  allegation 


that  an  emergency  exists  Is  supported  by  sub- 
stantial evidence. 

(2)  (A)  No  action  may  be  commenced  un- 
der subparagr^h  (1)  (A)   of  this  section — 

(I)  prior  to  sixty  days  after  written  notice 
of  the  violation  has  been  given  to  the  Sec- 
retary, and  to  any  alleged  violator  of  any  such 
provision  or  regulation: 

(II)  If  the  Secretary  has  commenced  action 
to  Impose  a  penalty  pursuant  to  subsection 
(a)  of  this  section;  or 

(iU)  If  the  United  States  has  commenced 
and  Is  diligently  prosecuting  a  criminal  action 
In  a  court  of  the  United  States  or  a  State  to 
redress  a  violation  of  any  such  provision  or 
regulation. 

(B)  No  action  may  be  commenced  under 
subparagraph  (1)(B)   of  this  section — 

(I)  prior  to  sUty  days  after  written  notice 
has  been  given  to  the  Secretary  setting  forth 
the  reasons  why  an  emergency  is  thought  to 
exist  with  respect  to  an  endangered  sp>ecies 
or  a  threatened  species  In  the  State  con- 
cerned: or 

(II)  if  the  Secretary  has  commenced  and 
Is  diligently  prosecuting  action  under  section 
6(g)(2)(B)  (11)  of  this  Act  to  determine 
whether  any  such  emergency  exists. 

(3)  (A)  Any  suit  under  this  subsection  may 
be  brought  In  the  Judicial  district  In  which 
the  violation  occurs. 

(B)  In  any  such  suit  under  this  subsection 
In  which  the  United  States  is  not  a  party, 
the  Attorney  General,  at  the  request  of  the 
Secretary,  may  Intervene  on  behalf  of  the 
United  States  as  a  matter  of  right. 

(4)  The  court.  In  Issuing  any  final  order  In 
any  suit  brought  pursuant  to  paragraph  (1) 
of  this  subsection,  may  award  costs  of  litiga- 
tion (including  reasonable  attorney  and  ex- 
pert witness  fees)  to  any  p>arty,  whenever  the 
court  determines  such  award  is  appropriate. 

(5)  The  injunctive  relief  provided  by  thla 
subsection  shall  not  restrict  any  right  which 
any  person  (or  class  of  persons)  may  have 
under  any  statute  or  common  law  to  seek 
enforcement  of  any  standard  or  limitation 
or  to  seek  any  other  relief  (including  relief 
against  the  Secretary  or  a  State  aeency.) 

(h)  Coordination  With  Other  Laws. — The 
Secretary  of  Agriculture  and  the  Secretary 
shall  provide  for  appropriate  coordination  of 
the  administration  of  this  Act  with  the  ad- 
ministration of  the  animal  quarantine  laws 
(21  U.S.C.  101-105,  lll-135b,  and  612-614) 
and  section  306  of  the  Tariff  Act  of  1930  ( 19 
U.S.C.  1306).  Nothing  In  this  Act  or  any 
amendment  made  by  this  Act  shall  be  con- 
strued as  superseding  or  limiting  In  any 
manner  the  functions  of  the  Secretary  of 
Agriculture  under  any  other  law  relating  to 
prohibited  or  restricted  Importations  or  poo- 
session  of  animals  and  other  articles  and  no 
proceeding  or  determination  under  this  Act 
shall  preclude  any  proceeding  or  be  consid- 
ered determinative  of  any  issue  of  fact  or  law 
In  any  proceeding  under  any  Act  adminis- 
tered by  the  Secretary  <if  Agriculture. 
Nothing  In  this  Act  shall  be  construed  as  su- 
perseding or  limiting  In  any  manner  the 
functions  and  resf>onsibilltles  of  the  Secre- 
tary of  the  Treasury  under  the  Tariff  Act  of 
1930,  Including,  without  limitation,  section 
527  of  that  Act  (19  VS.C.  1627).  relating  to 
the  Importation  of  wUdllfe  taken,  kUled. 
pcassessed,  or  exported  to  the  United  States 
In  violation  of  the  laws  or  regulations  of  a 
foreign  country. 

ENDANGERED  PLANTS 

Sec.  12.  The  Secretary  of  the  Smithsonian 
Institution.  In  conjunction  with  other  af- 
fected agencies,  is  authorlred  and  directed 
to  review  ( 1 )  species  of  plants  which  are 
now  or  may  become  endangered  or  threat- 
ened and  (2)  methixls  of  adequately  (x>n- 
serving  such  species,  and  to  report  to  Con- 
gress, within  one  year  after  the  date  of  the 
enactment  of  this  .Kci.  the  rwults  of  such 
review  including  recommendations  for  new 
legislation  or  the  amendment  of  exlstirg 
legislation. 


42534 


CX»IGR£SSIONAL  RECORD  —  SENATE 


December  19,  197  S 


CONTOaMING  AMCN3MKNTS 

Src.  13.  (a)  SubeecUon  4(C)  oX  the  Act  of 
October  15.  1966  (80  St»t.  938,  16  U  S.C. 
6Mdd(e)),  la  further  amended  by  revising 
the  second  sentence  thereof  to  read  as  fol- 
lows: "With  the  exception  of  endangered 
species  and  threa;ened  species  listed  by  the 
Secretary  pursuant  to  section  4  of  the  En- 
dangered Species  Act  of  1973  In  SUtea  where- 
in a  cooperative  agreement  does  not  exist 
puniiam  to  section  6(c>  of  that  Act.  noth- 
ing m  this  Act  ah&ll  be  construed  to  author- 
lae  u-.e  Secretaxy  to  control  or  regulate  hunt- 
ing or  fishing  of  resident  flsh  and  wUdlife 
on  lands  not  within  the  system." 

(b)  Subsection  10(a»'of  the  Migratory 
Bird  Conservation  Act  (45  Stat.  1224,  16 
U.S.C.  7151(a))  and  subsection  401(a)  of 
the  Act  of  J  :ne  15,  1935  i49  Stat.  3«.  16 
fSC.  715s(ai).  are  each  amended  by  strik- 
ing out  "threatened  with  extinction."  and 
Inserting  in  Ueu  thereof  the  following: 
"Usted  pursuant  to  section  4  of  the  Endan- 
gered Srecies  Act  of  1373  as  endangered 
soecies  cr  threatened  species.". 

iC)  Section  7iai  (  U  of  the  Land  and  Water 
rcnserTa:;on  Fund  Act  of  1965  (16  U.S.C. 
4601 — 9(a)  il>  (  Is  amended  by  striking  out 
"THSEATBStD  SPECiKs  —  Por  anv  national 
area  which  may  be  authorized  for  the  pres- 
er.atlon  of  species  of  flah  or  wildlife  that 
are  :hre.i*ened  with  extinction." 
ard  '.-sen.ng  m  lieu  thereof  the  following- 
"ENDA-vcraH)  Spkcixs  a.xd  Tbkkatsnkd 
SPEcirs— For  lands,  waters,  or  Interests 
therein,  the  acq\:isltlon  of  which  Is  author- 
ized under  section  5(a)  of  the  Endangered 
Species  Act  of  1973.  needed  for  the  purpose 
of  conserving  endangered  or  threatened 
species  of  flsh  or  wildlife  or  plants." 

rdi  The  first  sentence  of  section  2  of  the 
Act  of  September  26.  1962  as  amended  (76 
Stat  653.  16  use  460k-l).  u  amended  to 
read  as  follow?  • 

"The  Secretary  Is  authorized  to  acquire 
area*  of  land,  or  Interests  therein  which  are 
suitable  for — 

"(1)  Incidental  flah  and  wildlife-oriented 
recreations!  deT»lopment 
"1 21  the  protection  of  natural  r«v>urces. 
"(3)  the  conservation  of  endanarered  spe- 
cies or  threatened  species  listed  by  the  Ser- 
retary  pursuant  to  section  4  of  the  Endanger- 
ed Soecle^  Act  of  1973  or 

"'4)  carrvtnp  out  two  or  mor»  of  the  pi:r- 
poxes  se'  forth  In  naraeraphs  (n  throueh 
'3)  of  tMs  section  and  are  adjacent  to  or 
within  the  sa'd  conser\-atlon  areas  except 
that  the  acquL^itlon  of  anv  land  or  Interest 
therein  pursuant  to  this  sertion  .shall  be  ac- 
complished onlv  with  such  funds  as  may  be 
approorlated  therefor  by  the  Congress  or 
donated  .or  stich  purposes  but  such  propertv 
shAil  not  be  acculred  with  funds  obtained 
from  the  sale  of  Federal  mlijratory  bird  hunt- 
l•^«C  Stamps  " 

JVr^JP"*  **"'^«  Mammal  Protection  Act 
of    972   (16  U5C.   1361-1407)    is  amended- 

n  >  by  strtklng  out  "Endancrered  Species 
Consolation  .^ct  of  1969"  In  section  3  rii  (B) 
thereof  aid  Inserting  in  lieu  thereof  the  fol- 
lowing:  -endangered  Species  Act  of  1973-- 

'2>  by  striking  out  "pursuant  to  the  En- 
dangered Species  Conservation  Act  of  1969" 
n  section  101(8)f3)(B)  thereof  and  insert- 
Inp  in  lieu  thereof  the  following:  "or  threat- 
ened species  pursuant  to  the  Endangered 
Species  Act  of  1973': 

(^3)  by  strtklng  out  "endangered  under  the 
.IZ^J-^^*^  Species  Conservation  Act  of 
i9«3  in  section  102rb)(3)  thereof  and  In- 
serting m  Ueu  thereof  the  following  "an 
e.Tdar.gered  species  or  threatened  species  pur* 

f^.'    ***    '***    =n<»*nK«re<l    Spines    Act    of 
1973":   and 

<4)  by  striking  out  "of  the  Interior  such 
revuions  of  the  Enda.'.gered  Species  LUt  au- 
thorized by  the  Endangered  Species  Con- 
servation Act  of  ia«9."  In  section  202(a)  (6) 
inereof  and  Iraertlng  in  Ueu  thereof  the  fol- 
lowing    "such   rerlslons  of   the   cnd*agerMl 


spedea  list  and  threatened  sp«clea  list  pub- 
Uahed  pursuant  to  section  4( c  i  ( 1)  of  the  Bn- 
dAngered  Species  Act  of  1973". 

(f)  Section  2(1)  of  the  Federal  Environ- 
mental Pesticide  Control  Act  of  1972  (Pub- 
lic Law  92-616)  Is  amended  by  striking  out 
the  words  "by  the  Secretary  of  the  Intertor 
under  Public  Law  91-136**  and  Inserting  In 
Ueu  thareof  the  words  "or  threatened  by  the 
Secretary  pursuant  to  the  Endangered  Spe- 
cies Act  of  1973" 

ariT.Ai-cii 

S«c.  14.  The  Endangered  Species  Conserva- 
tion Act  of  1969  (sections  1  through  3  of  the 
Act  of  October  15.  1966.  and  sections  1 
through  6  of  the  Act  of  December  5.  1969; 
16  use    668aa — 668cc-6),  Is  repealed 

AtrrHOBIZATIO!«    or    APPSOPaiATlONS 

Sec.  15.  Except  as  authorized  In  section  6 
Of  this  Act.  there  are  authorized  to  be  ap- 
propriated— 

(A)  not  to  exceed  $4,000,000  for  fiscal  year 
1974.  not  to  exceed  •8,000,000  for  fiscal  year 
1975  and  not  to  exceed  $10,000,000  for  fiscal 
year  1976,  to  enable  the  Department  of  the 
Interior  to  carry  out  such  functions  and 
responsibilities  as  It  may  have  been  given 
under  this  Act;  and 

(B)  not  to  exceed  $2,000,000  for  fiscal  year 
1974.  $1,500,000  for  fiscal  year  1975  and  not 
to  exceed  $2,000,000  for  fiscal  year  1976.  to 
enable  the  Department  of  Commerce  to  carr>' 
out  such  functions  and  responsibilities  as 
It  may  have  been  given  under  this  Act. 

OTTCnV*    OATZ 

Sxc  16  This  Act  shall  take  effect  on  the 
date  of  Its  enactment. 

MASIKT  ICAMMAL  PaOTTCTlO}*   ACT  OT    1972 

Sec.  17.  Except  as  otherwise  provided  in 
this  Act.  no  provision  of  this  Act  shall  take 
precedence  over  any  more  restrtctlve  con- 
flicting provision  of  the  Marine  Mammal 
Pro-ectlon  Act  of  1972. 

And  the  House  agree  to  the  same. 
That  the  Senate  recede  from  Its  disagree- 
ment to  the  amendment  of  the  House  to  the 
title  of  the  bin.  and  agree  to  the  same  with 
an  amendment  as  follows: 

In  lieu  of  the  matter  proposed  to  be  in- 
serted by  the  amendment  of  the  House  to  the 
title  of  the  bin.   Insert  the   following:    "An 
Act  to  provide  for  the  conservation  of  en- 
dangered and  threatened  species  of  flsh.  wUd- 
llfe.  aid  plants,  and  for  o'her  purposes" 
And  the  Hou^e  airree  to  the  same 
Philip  A  H\«r. 
John  V  Ttjnnit. 
Ttd  Sttvens. 
F«ANK  E   Mo.«»s. 
MARiow  W  Cook. 
Managers  on  the  Part  of  the  Senate. 

LZOWOR    K     STTU.IVAN, 

John  D  DiNCEtL 
Geobcx  a  GoooLrvc, 
Managers  on  the  Part  of  the  House. 

Mr  TUNNEY  Mr  Pr»>.«:ident.  I  ask 
unanimous  con.sent  that  Paul  cWnlng- 
h.nm  and  Earl  Costello,  of  the  staff  of 
the  Committer?  on  Commerre.  be  per- 
mitted to  be  present  on  the  Senate  floor 
during  the  ronsideratlon  of  this  confer- 
ence report. 

The  VICE  PRESIDENT.  Without  ob- 
jection, it  i*  "-o  ordered. 

Mr.  TUNNEY.  Mr  President,  today, 
the  Senate  wUl  complete  action  on  the 
Endangered  Species  Act  of  1973  Hope- 
fully, the  measure  will  soon  clear  the 
House  and  be  sent  to  the  President. 

Aa  floor  manager  of  the  bill  last  July, 
and  as  a  Senate  confe.ee.  I  know  how- 
much  time  and  effort  has  gone  into  this 
bill.  I  believe  the  sUff  members  of  the 
Senate  Commerce  Committee  and  the 
House  Merchant  Marine  and  Fisheries 


Committee  should  be  commended  for 
their  efforts.  There  were  difficult  prob- 
lems to  resolve  because  the  legislation 
was  technically  and  geographically  com- 
plex. But  I  believe  that  the  final  product 
will  greatly  improve  our  ability  to  pro- 
tect species  of  fish  and  wildlife  which  are 
in  imminent  danger. 

The  conferees  recognized  the  fact  that 
the  Federal  Government  simply  does  not 
have  the  resources  to  Implement  the  act 
Immediately,  and  thus  set  up  a  system 
of  grants-in-aid  to  the  States  which  will 
have  the  Initial  responsibility  for  man- 
agement of  resident  species. 

An  important  provision  of  the  bill  dele- 
gates listing  of  endangered  species  to  the 
managing  agencle?— the  National 
Oceanographlc  and  Atmospheric  Admin- 
istration and  the  Interior  Department. 
The  CommeiTe  Deoartment  mav  list 
species,  but  is  prohibited  from  delisting 
without  NOA^  and  Interior  concurrence. 
The  bill  established  provides  stiff  pen- 
alties for  violations. 

This  bill  has  been  long  In  coming  and 
is  urgent  in  nature.  In  this  country  alone, 
there  are  over  100  species  listed  as  en-^ 
dangered.  Each  provides  a  service  to  the 
environment  and  represents  a  part  of  an 
immensely  complicated  ecological  sys- 
tem. 

Passage  of  this  act  means  that  the 
Congress  has  responded  positively  to  the 
magnitude  of  the  problem  and  has  voiced 
ite  concern  for  the  species  which  we  have 
placed  near  extinction  The  Endangered 
Species  Act  responds  to  our  duty  to  re- 
store and  propagate  what  we  have — 
through  carelessness  and  lack  of  under- 
standing—nearly destroyed  forever 

Mr.  STE\'ENS.  Mr.  President.  I  sup- 
port this  conferenre  report. 

In  conference  with  the  House,  agree- 
ment was  reached  on  S.  1983  which  we 
recommend  to  the  Senate  as  a  means  of 
providing  for  the  conservation,  protec- 
tion, restoration,  and  propagation  of 
threatened  and  endangered  species  of 
flsh.  wildlife  and  plants. 

I  wish  to  briefly  outline  the  main  pro- 
visions of  the  conference  report  before  us 
First,  the  bill  will  define  the  term 
"conservation"  to  Include  all  methods 
and  procedures  necessary  to  bring  a 
threatened  or  endangered  species  to  a 
point  where  the  measures  provided  In 
this  are  no  longer  necessary. 

There  is  an  exception  allowing  exclu- 
sion from  protection  by  the  act  wljere  an 
otherwise  endangered  or  threatened 
species  of  insect  presents  a  serious  risk 
to  man.  A  new  definition  of  "commercial 
activity"  delineates  types  of  activities, 
including  trades  and  exchanges  of  ani- 
mals or  animal  products  involving  profit, 
which  are  to  be  treated  under  the  act. 

The  conference  committ«e  discussed  at 
length  the  proper  area  of  resporLslbility 
for  the  Departments  of  Interior  and 
Commerce.  Con.sequently,  the  act  speci- 
fies that  the  Departments  have  respon- 
sibilities, in  determining  and  changing 
the  status  of  the  species  as  endangered 
or  threatened,  along  the  lines  of  Reorga- 
nization Act  No  4  of  1970.  The  physical 
act  of  maintaining  the  list  will  remain, 
as  it  is  now,  with  the  Department  of  the 
Interior.  The  conferees  ask  that  every 
effort  be  taken  to  avoid  duplication  of 
effort  by  the  two  agencies. 


December  19,  1973 


COXCRI  .s.sK  )NAL  RECORD  —  SHNATE 


42535 


Considerable  concern  was  demon- 
strated in  conference  over  the  necessity 
for  effecUve  Federal  consultation  with  all 
affected  parties  in  determining  a  species 
t<3  be  endangered  or  threatened.  The 
Senate  bill  required  a  special  advisory 
committee  with  heavy  State  representa- 
tion, for  this  purpose.  The  House  did  not. 
The  conferees  agreed  that  the  Advisory 
Committee  be  eliminated  from  the  bill 
but  that  consiiltation  be  strenghened  to 
Include  special  notification  of  the  Gov- 
ernors of  the  affected  States,  along  with 
public  notification,  and  that  the  State  be 
given  a  minimum  of  90  days  to  comment. 
The  conferees  strengthened  the  proce- 
dures for  public  participation  by  requir- 
ing an  extended  period  of  public  notice 
of  proposed  regulation,  not  less  than  60 
days,  providing  for  discretionary  hear- 
ings, and  establishing  procedures  for 
emergency  action. 

Recognizing  that  effective  programs 
for  the  conservation  of  endangered  spe- 
cies requires  the  acquisition  of  habitat 
crucial  to  the  species,  both  bills  pro- 
vided such  authority.  The  Senate  bill 
limited  that  authority  to  habitat  for  flsh 
and  w  ildlife  alone.  The  conferees  adopted 
the  House  version,  which  extends  the  au- 
thority to  include  plant  habitat.  Author- 
ity is  extended  to  the  Secretary  of  the  In- 
terior, but  it  is  anticipated  that  he  will 
consult  with  the  Secretary  of  Commerce 
in  cases  involving  marine  species  over 
which  Commerce  has  sole  jurisdiction 
under  Reorganization  Plan  No.  4.  Fur- 
thermore, nothing  prevents  the  Secre- 
tary of  Commerce  from  seeking  specific 
legislative  authority  to  acquire  land 
needed  for  NCAA's  programs. 

Initially,  the  House  bill  placed  basic 
responMbility  for  establishing  and  ad- 
ministering the  endangered  species  pro- 
gram In  the  Federal  Gowmment.  and 
provided  for  the  development  of  coop- 
erative programs  with  concerned 
agencies. 

The  Senate  accepted  this  and  added  a 
new  section  16  onto  the  bill  to  shift 
basic  responsibility  back  to  the  States. 
The  conferees  approved  a  section  giving 
the  States  the  fundamental  roles  regard- 
ing resident  species  for  up  to  15  months. 
or  120  days  after  the  relevant  State 
legislature  has  adjourned.  This,  it  Is 
hoped,  will  encourage  the  States  to  de- 
velop their  ot^-n  strong  progr.^ms. 

Both  bills  provided  grant  programs  for 
the  States,  but  the  Senate  authorized  $10 
million  over  a. 3 '2  year  period  whUe  the 
House  provision  was  open-ended.  The 
Senate  version  W£is  accepted  by  the  con- 
ferees. 

The  House  and  Senate  bills  each  au- 
thorized international  endangered  spe- 
cies programs,  but  the  Senate  restricted 
the  programs  to  countries  where  coun- 
terpart funds  are  available.  The  confer- 
ees adopted  the  House  version  which 
stipulates  that  where  counterpart  funds 
are  available  they  will  be  used  In  prefer- 
ence to  appropriated  funds. 

The  conferees  rewrote  the  section  pro- 
viding exceptions  for  certain  Alaska  na- 
tives generally  following  the  lines  of  the 
Senate  bill,  which  provides  similar  ex- 
ceptions for  certain  non-native  residents 
of  native  communities.  The  House  re- 

CXIX 2679   -Part  33 


ceded  to  the  Senate  in  allowing  the  State 
of  Alaska  to  restrict  native  and  non- 
native  taken  as  part  of  a  State  operated 
endangered  species  program.  Although 
the  native  exemption  is  not  intended  to 
supercede  the  Marine  Mamma]  Protec- 
tion Act  of  1973  it  does  Eillow  the  Uking 
of  marine  mammals  under  certain  cir- 
cumstances. 

The  conferees  developed  new  language 
in  the  penalties  and  enforcement  section, 
mainly  to  strengliien  the  delineation  of 
penalties  for  knowing  or  commercial  vi- 
olation as  oppKKed  to  erroneous  casual 
purchase  of  items  by  tourists. 

House  language  was  adopted  provid- 
ing for  agents  of  the  Secretary  of  the 
Interior  to  inspect,  packages  and  crates 
upon  Importation  or  exportation,  similar 
to  the  authority  now  exercised  bv  cus- 
toms agents.  The  Conferees  stressed  that 
they  are  prepared  to  reexamine  this  sec- 
tion In  the  near  future,  to  ensure  that 
the  authority  Is  not  l)elng  abused. 

The  conferees  accepted  a  House  ver- 
sion of  the  bill  assigning  the  Smithso- 
nian Institution  to  study  any  problems  in 
interstate  commerce  in  endangered  spe- 
cies of  plants. 

Mr.  President.  I  ask  this  Senate  to 
support  this  conference  approved  En- 
dangered Species  Act  of  1973.  There 
should  be  no  further  delay  in  extend- 
ing protection  for  those  animals  which 
cannot  fend  for  themselves  against  the 
destructive  actions  of  mankind. 

Mr.  COOK.  Mr.  President,  in  order  that 
I  might  make  an  Immediate  re\iew  of  the 
conference  report,  would  the  President  of 
the  Senate  mind  if  we  had  a  short 
quorum  call,  so  that  I  might  see  that  the 
report  contains  the  proper  language? 

The  VICE  PRESIDENT.  Does  the  Sen- 
ator suggest  the  absence  of  a  quorum? 
Mr.  COOK.  Mr.  President.  I  suggest  the 
absence  of  a  quorum. 

The  VICE  PRESIDENT.  The  clerk  will 
call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  COOK.  Mr.  President,  I  ask  unani- 
mous consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  VICE  PRESIDENT.  Without  ob- 
jection, it  is  so  ordered. 

Mr.  COOK.  Mr.  President,  the  Sena- 
tor from  Kentucky  secured  an  amend- 
ment on  this  bill,  as  the  Senator  from 
California  well  knows,  havinc  been  man- 
ager of  the  bill  during  that  time.  I  would 
like  to  read  into  the  Record  certain  lan- 
guage from  page  18  of  the  report  of  the 
managers,  which  reads  as  follows: 

The  Senate  bill  contained  a  section  added 
on  the  Floor  by  Senator  Cook  which  would 
have  had  the  effect  of  prohibiting  the  con- 
struction of  a  public  road  through  the 
Pioneer  Weapons  Hunting  Area  In  the  Daniel 
Boone  National  Forest.  Opponents  of  the  road 
fear  that  Its  construction  will  do  irreparable 
damage  to  the  area  and  urge  the  construction 
of  a  more  expensive  road  to  go  around  the 
Hunting  Area. 

By  the  way,  I  might  say  for  the  bene- 
fit of  the  record  that  the  increased  ex- 
pense, as  far  as  I  know,  would  be  in  the 
neighborhood  of  $65,000.  out  of  a  con- 
tract totaling  approximately  $1,990,000. 

Proponents  of  the  road  respond  that  It 
will  not  dastroy  the  character  of  the  ar«a  and 


wUI  be  desirable.  The  House  recently  adopted 
an  amendment  to  the  Water  Resources  De- 
velopment Act.  which.  If  enacted,  would  aUow 
construction  of  the  road  after  public  review 
of  the  final  NEPA  environmental  Impact 
statement. 

In  light  of  the  considerable  controversy  on 
the  subject,  the  conferees  felt  that  this 
Issue  ought  not  to  be  resolved  by  Inclusion 
of  this  section  In  the  bill,  but  that  It  would 
be  more  appropriate  for  full  hearings  to  be 
held  or  the  question  by  the  proper  CkMnmlt- 
tees  of  Congress.  Accordingly  the  section  was 
stricken  from  the  bill  with  the  understand- 
ing and  hope  that  such  hearings  might  be 
expeditiously  completed. 

Mr.  President.  I  am  totally  and  com- 
pletely In  accord  with  the  language  of 
the  conference  report.  I  merely  wished 
to  read  this  statement  into  the  Record 
for  the  purpose  of  reaffirming  this  Sen- 
ators position  In  regard  to  this  project 
and  its  impact. 

I  thank  the  Senator  from  California 
that,  during  the  course  of  the  confer- 
ence, we  were  able  to  work  this  arrange- 
ment out,  and  I  have  no  objection  to'  the 
immediate  consideration  of  the  confer- 
ence report  and  Its  immediate  passage 
Mr.  TUNNEY.  Mr.  President,  I  would 
like  to  say.  as  the  floor  manager  of  the 
bill  and  one  of  the  conferees,  that  I  sup- 
port hearings  on  the  matter  that  was 
raised  by  the  distinguished  Senator  from 
Kentucky  at  the  earliest  possible  date 
next  year.  I  do  not  see  any  reason  wfiy 
we  could  not  do  it  in  either  January  or 
February  of  next  year,  and  then  take 
that  bill  up  in  an  expeditious  fashion 
after  hearings  have  been  held.  I  know  I 
am  not  only  speaking  for  myself,  but  also 
for  the  other  Senators  on  the  majority 
side  of  our  committee. 

I  am  convinced  that  as  a  result  of  the 
understanding  of  the  problem  of  the  con- 
ference committee  by  the  Senator  from 
Kentucky,  we  were  able  to  conclude  that 
conference,  and  conclude  it  in  a  way  that 
I  think  has  justified  not  only  the  posi- 
tion of  the  Senator  from  Kentucky  on 
the  matter  that  he  has  related,  but  also 
the  fact  that  the  Senate  and  the  Con- 
gress wanted  to  have  this  endangered 
species  bill  passed  as  quickly  as  possible, 
before  the  end  of  this  year. 

Mr  COOK.  Mr  President,  I  thank  the 
Senator  from  California,  and  I  appre- 
ciate the  indulgence  of  the  President  of 
the  Senate. 

The  VICE  PRESIDENT.  The  quesUon 
is  on  agreeing  to  the  conference  report. 

The  report  was  agreed  to. 


QUORUM  CALl, 

The  VICE  PRESIDENT.  What  Is  the 
will  of  the  Senate? 

Mr.  GRIFFIN.  Mr.  President,  I  sug- 
gest the  absence  of  a  quorum. 

The  VICE  PRESIDENT.  The  clerk  will 
call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 
I  ask  unanimous  consent  that  the  order 
for  the  quorum  call  be  rescinded. 

The  PRESIDING  OFFICER  <Mr.  Wn.- 
Li»M«:'  Without  objection,  it  is  so 
onlei-eii. 


42536 


CONGRESSIONAL  RECORD  —  SENATE 


December  19,  197S 


ORDER  FOR  RECOGPflTION  OF 
SENATORS  HATFIELD.  MATHIAfl. 
GRIFFIN,  AND  ROBERT  C  BYRD 
TOMORROW 

Mr.  ROBERT  C  BYRD.  Mr.  President. 
I  susk  unanimous  consent  that,  on  to- 
morrow, after  the  two  leaders  or  their 
designees  have  been  recognized  under 
the  standing  order,  the  following  Sena- 
tors be  recognized,  each  for  not  to  ex- 
ceed 15  minutes  and  in  the  order  stated: 

Senators  Hatfield,  Mathias.  Griitin, 
and  Robert  C.  Byrd. 

The  PRESIDING  OFFICER  Without 
objection,  it  is  so  ordered. 


ORDER  FOR  TRA^'SACTION  OP  ROU- 
TINE MORNING  BUSINESS  TO- 
MORROW 

Mr.  ROBERT  C.  BYRD.  Mr.  President. 
I  ask  unanimous  consent  that,  following 
the  orders  for  the  recognition  of  Sena- 
tors tomorrow,  there  be  a  period  for  the 
transaction  of  routine  morning  business 
of  not  to  exceed  15  minutes,  with  state- 
ments therein  limited  to  3  minutes 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered.  • 


ADDITIONAL  biiLUND  ASSISTANT 
SECRETARY  OP  THE  INTERIOR 
FOR    INDIAN   AFFAIRS 

Mr.  ROBERT  C  BYRD.  Mr  President, 
I  ask  the  Chair  to  lay  before  the  Senate 
a  message  from  the  House  of  Representa- 
tives on  HR.  620 

The  PRESIDING  OFFICER  laid  before 
the  Senate  the  following  message: 

Resol-ed.  That  -he  House  disagree  to  the 
amendment  of  the  Senate  to  the  bUl  (HJl. 
620)  entitled  'An  Art  to  establish  within 
the  Denartment  of  the  Interior  an  additional 
Assistant  Secretiry  of  the  Interior  for  Indian 
Affairs,  and  for  other  purposes  " 

Mr.  ROBERT  C  BYRD.  Mr  President, 
I  move  that  the  Senate  insist  on  its 
amendment  to  H  R.  620  and  request  a 
conference  with  the  House  of  Represent- 
aUves  thereon,  and  that  the  Chair  be 
authorized  to  appoint  the  conferees  on 
the  part  of  the  Senate. 

The  motion  was  agreed  to.  and  the 
Presiding  Officer  appointed  Senators 
Jackson.  Metcalf,  ABouRtzK.  Bartlett. 
and  Stevens  conferees  on  the  part  of  the 
Senate. 


QUORL'M    CALL 


Mr.  ROBERT  C.  BY^D  Mr.  President. 
I  suggest  the  absence  •of  a  quonmi 

The  PRESIDING  OFFICER.  The  clerk 
will  call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.  ROBERT  C.  BYRD.  Mr.  President, 
I  ask  unanimous  consent  that  the  order 
for  the  quorum  call  be  rescinded. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 


ADJOURNMENT   TO    10   AM 

Mr.  ROBERT  C.  BYRD.  Mr.  President, 
if  there  be  no  further  business  to  come 
before  the  Senate.  I  move,  In  accordance 


with  the  previous  order,  that  the  Senate 
stand  In  adjournment  imtll  10  am.  to- 
morrow. 

The  motion  was  agreed  to;  and.  at 
7:07  p.m..  the  Senate  adjourned  until  to- 
morrow, Thursday,  December  20,  1973, 
at  10  a.m. 


NOMINATIONS 


Executive  nominations  received  by  the 
Senate  December  19. 1973 : 
In  trx  Akmt 

The  following-named  persons  for  reap- 
pointment in  the  active  list  of  the  Regular 
Army  of  the  United  States,  from  temporary 
disability  retired  list,  under  the  provisions  of 
title  10.  United  States  Code,  section  laU: 
To  be  colonel.  Regular  Army  and  colonel 
Army  of  the  United  States 

Duke.  Russell  A..  XXX-XX-XXXX 

Humphrey,  James  B..  XXX-XX-XXXX. 
To   be  captain.   Regular  Army  and  captain. 
Army  of  the  United  States 

Crane.  Matthew  J..  258-«6-1365. 

TTie  following-named  persons  for  appoint- 
ment In  the  Regular  Army,  by  transfer  In  the 
grade  specified,  under  the  provisions  of  title 
10,  United  States  Code,  sections  3283  through 
3294: 

To  be  major 

Bugay.  Glenn  L.,  XXX-XX-XXXX. 

Quatannens.  Louis  S..  XXX-XX-XXXX. 
To  be  captain 

Bode.  Donald  D  .  Jr..  XXX-XX-XXXX. 

Eckert.  Richard  E..  XXX-XX-XXXX. 

Shegog.  James  H  ,  229-4&-749a. 

Traylor.  John  A  .  XXX-XX-XXXX. 

Young,  Timothy  R..  XXX-XX-XXXX. 
To  be  first  lieutenant 

Blakeslee,  Don  B..  XXX-XX-XXXX. 

Blaney.  Thomas  D..  XXX-XX-XXXX. 

Copley.  John  B.,  XXX-XX-XXXX 

Curl.  Walton  W..  XXX-XX-XXXX. 

Oandy.  Charles  E..  III.  XXX-XX-XXXX. 

Oulnn.  John  W  .  HI.  XXX-XX-XXXX. 

Hansen,  Mark  P.,  XXX-XX-XXXX 

Hayes.  Brian  E..  XXX-XX-XXXX. 

Home.  Daniel  W  .  in,  XXX-XX-XXXX 

Jones.  Robert  P  .  XXX-XX-XXXX. 

Mason.  Richard  M  .  XXX-XX-XXXX. 

Mooney.  D.<»rrel  L.,  XXX-XX-XXXX. 

M  ser.  Richard  P  .  Jr  ,  XXX-XX-XXXX 

Omeara.  Thomas  P  ,  XXX-XX-XXXX. 

Pr\or.  .lames  E  .  XXX-XX-XXXX. 

Roberts.  Herbert  R..  XXX-XX-XXXX. 

Hollow,  John  A..  IV.  XXX-XX-XXXX. 

Rucker,  TInsley  W  .  XXX-XX-XXXX. 

Ryan,  John  B  ,  XXX-XX-XXXX. 

Schroeder.  David  E.,  XXX-XX-XXXX. 

Smith.  David  S  ,  XXX-XX-XXXX. 

Warncke,  Ronald  M.,  XXX-XX-XXXX. 

Wheeler.  Bnice  R  .  XXX-XX-XXXX 

Williams.  Robert  K.,  XXX-XX-XXXX 
To  be  second  lieutenant 

Moore,  John  W.  M  ,  XXX-XX-XXXX. 

Roden,  William  C  .  XXX-XX-XXXX. 

The  following-named  persons  for  appoint- 
ment In  the  Regular  Army  of  the  United 
States.  In  the  grades  specified,  under  the  pro- 
visions of  title  10,  United  States  Code  sec- 
tions 3283  through  3294  and  3311 : 
To  be  captain 

Albee,  Donna  J.,  XXX-XX-XXXX. 

Alderson.  Gerald  L  .  XXX-XX-XXXX. 

Antonlni.  Charles  J..  XXX-XX-XXXX. 

Arnold.  Joseph  V  .  XXX-XX-XXXX. 

Badger,  Gary  R  .  XXX-XX-XXXX. 

Bailey,  Mary  A  ,  XXX-XX-XXXX 

Baker.  Kim  J  ,  XXX-XX-XXXX. 

Beauchamp.  Roy  E  .  XXX-XX-XXXX. 

BrlUant,  Eugene  G..  XXX-XX-XXXX. 

Brockschmldt,  Predrlc  R  ,  XXX-XX-XXXX. 

Cavanesa.  George  R  ,  XXX-XX-XXXX. 


CoAta.  Jacqueline  W  .  XXX-XX-XXXX. 

Cuddy,  John  J  .  XXX-XX-XXXX 

Dlvaientln,  Anthony.  Ill,  XXX-XX-XXXX. 

Duckworth,  James  H  .  XXX-XX-XXXX 

Purukawa.  Theodore  P  .  XXX-XX-XXXX. 

Gabriel,  Donald  E..  XXX-XX-XXXX. 

Genaler,  Ivonna,  XXX-XX-XXXX. 

Hamilton,  Robert  A  ,  Jr  ,  XXX-XX-XXXX. 

Heacock,  Edgar  J.,  XXX-XX-XXXX. 

Houston,  Brice  E  ,  XXX-XX-XXXX 

Johnson,  Ralph  G.,  in,  XXX-XX-XXXX. 

Johnson.  Sandrah  W  .  XXX-XX-XXXX. 

Lewis,  John  C,  XXX-XX-XXXX. 

McGarry,  Ann  D  ,  XXX-XX-XXXX. 

McManus,  Michael  D.,  XXX-XX-XXXX. 

McQuade.  Michael  J.,  XXX-XX-XXXX. 

MetCAlf.  Pranklln  L  ,  186-28^-6370. 

Moore.  Earnest  R  .  XXX-XX-XXXX. 

Moaes.  Morris  E  .  XXX-XX-XXXX. 

Pohlmann.  Bernard  H  .  XXX-XX-XXXX. 

Pope.  Joe  T  ,  XXX-XX-XXXX 

Rankin,  Andrew  W.,  XXX-XX-XXXX. 

Robertson,  David  H  ,  XXX-XX-XXXX. 

Schmidt,  William  J.,  Jr  .  XXX-XX-XXXX. 

Staley,  David  H  ,  Jr  ,  XXX-XX-XXXX. 

Stenkewlt?.  Charles  O  ,  XXX-XX-XXXX. 

Taylor.  William  S  ,  XXX-XX-XXXX. 

Wehner,  Robert  J  .  396  38-1492. 

Werner.  Joan  D  .  5.^0-66-0817. 

White.  John  R  .  XXX-XX-XXXX. 

To  be  first  lieutenant 

Anna,  David  J  .  XXX-XX-XXXX. 

Barrows.  Paul  L  ,  XXX-XX-XXXX. 

Bednar,  Carolyn  3.,  XXX-XX-XXXX. 

Bell,  Deborah  A.,  XXX-XX-XXXX. 

Berry,  George  E.,  XXX-XX-XXXX. 

Blrdsell.  Carol  J  ,  XXX-XX-XXXX. 

Borles,  Robert  P  ,  Jr  ,  217^44-7864. 

Buchheit.  Joseph  D  .  XXX-XX-XXXX. 

Bush.  James  D  .  XXX-XX-XXXX 

Byrum,  James  W  ,  238-68  8178. 
Callan.  Thomas  E..  XXX-XX-XXXX 
Carr.  Lawrence  R.,  XXX-XX-XXXX. 
Dlckerson,  Michael  D..  XXX-XX-XXXX. 
DLsmukes,  Julian  M..  Ill,  XXX-XX-XXXX. 
DUon,  Ernestine.  228  60-8523. 
Ellis,  Ida  R.,  XXX-XX-XXXX 
Foster.  Jean  A  .  XXX-XX-XXXX 
Pranz.  David  R  ,  513-46  5684 
Oasklll.  Galyr.n  E  .  XXX-XX-XXXX. 
Ooethals,  Gerald  B  .  XXX-XX-XXXX. 
Graskl.  Susan  L..  XXX-XX-XXXX. 
Grlfflth.  Harold  L  .  XXX-XX-XXXX. 
Outtman.  Linda,  XXX-XX-XXXX. 
Haas,  LarT>-  D..  XXX-XX-XXXX 
Hamparian.  Phyllis  B  .  XXX-XX-XXXX. 
Herget,  Craig  N..  XXX-XX-XXXX. 
Irons,  Margaret  J  ,  XXX-XX-XXXX 
lungerlch,  Larry  R..  XXX-XX-XXXX 
Jeglijewskl.  Judith  M..  XXX-XX-XXXX. 
Kehrer,  Jame«  E..  XXX-XX-XXXX. 
Kobasa,  Daniel  W..  XXX-XX-XXXX. 
Kucera.  Raymond  P.,  XXX-XX-XXXX. 
Lambert,  Alan  E.,  XXX-XX-XXXX. 
Lewis,  Jane  L  .  XXX-XX-XXXX 
Mader,  Roy  M.,  XXX-XX-XXXX. 
Maloney,  John  J  ,  XXX-XX-XXXX. 
Meade.  Francis  J.,  XXX-XX-XXXX. 
Melson.  James  R..  XXX-XX-XXXX. 
Muldoon,  Terrance  A  .  304—48-2644. 
Mulllns,  Maureen.  XXX-XX-XXXX. 
Muschewske.  Rotiert  C,  XXX-XX-XXXX. 
Muskovln,  Marie  L  ,  XXX-XX-XXXX. 
Newton.  William  O..  XXX-XX-XXXX. 
Norrls,  Jimmy  A  .  XXX-XX-XXXX. 
Norvell,  Charles  D.,  XXX-XX-XXXX. 
O'Neal,  Georgia  W..  XXX-XX-XXXX. 
Padden.  Terrance  J  .  XXX-XX-XXXX. 
Puett,  Leonard  R..  Jr  ,  XXX-XX-XXXX. 
Puhlman.  Richard  J.,  XXX-XX-XXXX. 
Robblns.  James  H.,  XXX-XX-XXXX 
Ross,  Patricia  W.,  XXX-XX-XXXX 
Russell.  Gladys  H  ,  XXX-XX-XXXX. 
Shoener,  Linda  M  .  XXX-XX-XXXX 
Smith,  Ben  E.,  XXX-XX-XXXX. 
Smith,  Pamela  A  ,  XXX-XX-XXXX. 
Specht,  James,  XXX-XX-XXXX. 
Stewart.  Patricia  L.,  XXX-XX-XXXX. 
Story.  Dennis  C,  XXX-XX-XXXX. 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42537 


Strzeleckl.  Loma  R..  XXX-XX-XXXX. 

Sweeney,  Jane  K.,  XXX-XX-XXXX. 

Swinger.  Gary  L.,  XXX-XX-XXXX. 

TrammeU.  Alan  R.,  XXX-XX-XXXX. 

Tudor.  WUllam  A.,  XXX-XX-XXXX, 

Tutt,  James  T.,  XXX-XX-XXXX. 

Vaught,  Richard  D  .  XXX-XX-XXXX. 

WaU,  Evelyn  L.,  XXX-XX-XXXX. 

Weaver,  George,  XXX-XX-XXXX. 

Webb.  Joseph  Q.,  Jr.,  XXX-XX-XXXX. 

Wler,  Carolyn  R.,  XXX-XX-XXXX. 

Wlka,  Judith  C,  XXX-XX-XXXX 

Wong,  Eena  Y.  H.,  XXX-XX-XXXX. 
To  be  second  lieutenant 

Anderson,  Timothy  D.,  XXX-XX-XXXX. 

Boggess,  George  H.,  XXX-XX-XXXX. 

Corbin.  Kathleen  C,  XXX-XX-XXXX. 

Dalgle,  Wade  W.,  XXX-XX-XXXX 

Edgecomb.  Barbara  L..  XXX-XX-XXXX. 

Frank,  Robert  L.,  XXX-XX-XXXX. 

Gallaway,  Barbara  8  ,  XXX-XX-XXXX. 

Maltas.  Judy  L  .  XXX-XX-XXXX. 

Menard,  Edward  J..  XXX-XX-XXXX. 

Prucha,  James  F.,  XXX-XX-XXXX. 

Sadler,  Freida  J  .  438-78  8771. 

Skaggs,  Terree  L.,  XXX-XX-XXXX. 

Sparks.  Glenn  E..  Jr.,  XXX-XX-XXXX. 

Sullivan,  Candlce  J..  XXX-XX-XXXX. 

Taddlken,  Patricia  F.,  XXX-XX-XXXX. 

Walsh.  Darleen  P.,  XXX-XX-XXXX. 

Whitehead.  David  E.,  XXX-XX-XXXX. 
In  Tui  Armt 

The  following-named  officers  for  promo- 
tion In  the  Army  of  the  United  States  under 
the  provisions  of  Public  Law  92-129. 

MEDICAL    CORPS 

To  be  colonel 
Ansbacher.  Rudl,  XXX-XX-XXXX. 
Arneson.  Leslie  A.,  XXX-XX-XXXX. 
^ton,  James  K  ,  Jr.,  XXX-XX-XXXX. 
Bannister,  Gary  L  .  XXX-XX-XXXX. 
Bartellonl,  Peter  J..  XXX-XX-XXXX. 
Benlncaso,  Prank  V.,  XXX-XX-XXXX. 
Bezreh.  Anthony  A.,  XXX-XX-XXXX. 
Brott,  Walter  H  ,  XXX-XX-XXXX. 
Bruckman,  Joseph  A.,  XXX-XX-XXXX. 
Cass,  Kenneth  A..  XXX-XX-XXXX. 
Chamllan.  Dlkran  L.,  XXX-XX-XXXX. 
Corby.  Dontdd  G..  XXX-XX-XXXX. 
Dlazball.  Fernando,  XXX-XX-XXXX. 
Dycaico,  Armin  G.,  XXX-XX-XXXX. 


Pagarason,  Lawrence.  XXX-XX-XXXX. 

Pearnow,  Ronald  Q,  XXX-XX-XXXX. 

Peltls.  James  M.,  Jr.,  XXX-XX-XXXX. 

Olmeoh,  John  8.,  XXX-XX-XXXX. 

Greely,  Robert  L..  XXX-XX-XXXX. 

Haas,  John  M.,  XXX-XX-XXXX. 

Hardee,  Erasmus  B..  2G5-48-0078. 

Hawes,  WUllam  J.,  XXX-XX-XXXX. 

Hazlett,  David  R.,  XXX-XX-XXXX. 

Heydom;  William  H  ,  XXX-XX-XXXX. 

Hill.  Paul  S.,  XXX-XX-XXXX. 

Holtzapple.  Kenneth.  XXX-XX-XXXX. 

Hutton,  John  E.,  Jr.,  XXX-XX-XXXX, 

Isom,  Lawrence  E.,  XXX-XX-XXXX. 

Kopp,  Albert  A  ,  XXX-XX-XXXX. 

Larsen.  Lowell  D  .  XXX-XX-XXXX. 

Lennox,  Kenneth  W.,  2fi4-46-0719. 

Undef  jeld,  Ole  A.,  XXX-XX-XXXX 

Mansfield,  John  O..  XXX-XX-XXXX 

Mayfield,  Gerald  W.,  XXX-XX-XXXX. 

Mays,  Edward  E..  XXX-XX-XXXX. 

McCarty,  Richard  J.,  XXX-XX-XXXX. 

Moore,  William  J.,  Jr.,  XXX-XX-XXXX. 

Park,  Richard,  XXX-XX-XXXX. 

Patterson,  Joseph  R.,  XXX-XX-XXXX. 

Pauling,  Fred  W.  in,  XXX-XX-XXXX. 

Relster,  Henry  C,  XXX-XX-XXXX. 

Sakaklni.  Joseph,  Jr.,  XXX-XX-XXXX. 

Scavarda.  Angelo.  XXX-XX-XXXX. 

Schamber,  Dean  T.,  XXX-XX-XXXX. 

Soriano,  Pranklln  M.,  XXX-XX-XXXX. 

SUnslfer,  Philip  D.,  XXX-XX-XXXX. 

Strader.  Lorenzo  D.,  XXX-XX-XXXX. 

Stuart,  Richard  B.,  XXX-XX-XXXX. 

Sz>-monskl.  Zdzlslaw,  XXX-XX-XXXX. 

Top.  Pranklln  H.,  Jr.,  XXX-XX-XXXX. 

Ullsnlk,  Wayne  R.,  XXX-XX-XXXX. 

Vllabalzac,  Gllber,  XXX-XX-XXXX. 

Virtue.  Clarence  M  .  XXX-XX-XXXX. 

Williamson,  Harold.  XXX-XX-XXXX. 

Winter.  Philip  E.,  XXX-XX-XXXX. 

Yhap,  Edgar  O.,  XXX-XX-XXXX. 

Zbylskl,  Joseph  R.,  XXX-XX-XXXX. 

The  following-named  officers  for  promo- 
tion m  the  Regular  Army  of  the  United 
States,  under  the  provisions  of  title  10, 
United  States  Code,  sections  3284  and  3298: 

AKMT    PROMOTION    LIST 

To  be  first  lieute-nant 
Adams,  Mitchell  K.,  XXX-XX-XXXX. 
King.  Richard  C,  Jr.,  XXX-XX-XXXX. 
Runge,  ChEirles  D.,  Jr.,  XXX-XX-XXXX. 


CONFIRMATIONS 


Executive  nominations  confirmed  by 
the  Senate  December  19,  1973: 

Department  of  TSANSPORTATioif 
Rodney  Eugene  Eyster.  of  Illinois,  to  be 
General  Counsel  of  the  Department  of  Trans- 
portation. 

Departmenf  or  Justice 
Donald  E.  Walter,  of  Louisiana,  to  be  U,S. 

attorney  for  the  western  district  of  Louisiana 

for  the  term  of  4  years. 
Denny  L.  Sampson,  of  Nevada,  to  be  U.S. 

marshal  for  the  District  of  Nevada  for  the 

term  of  4  years. 

VS.  Arms  Control  and  Disarmamekt  Acenct 
Thomas  D.  Davles.  of  Ohio,  to  be  an  Assist- 
ant Director  of  the  U.S.  Arms  Control  and 
Disarmament  Agency. 

Department  of  .State 

Walter  J.  Stoessel,  Jr.,  of  CalUornla,  a  Por- 
slgn  Service  officer  of  the  class  of  Career 
Minister,  to  be  Ambassador  Extraordinary 
and  Plenipotentiary  of  the  United  States  of 
America  to  the  Union  of  Soviet  Socialist 
Republics. 

Helmut  Sonnenfeldt,  of  Maryland,  a  For- 
eign Ser\'lce  officer  of  class  1,  to  be  Counselor 
of  the  Department  of  State. 

Robert  J.  McCloskey,  of  Maryland,  a  For- 
eign Service  officer  of  class  1,  to  be  an  Am- 
bassador at  Large. 

Arthur  A.  Hartman.  of  New  Jersey,  a  For- 
eign Service  officer  of  class  1,  to  be  an  Assist- 
ant Secretary  of  State. 

Robert  C.  HUl.  of  New  Hampshire,  to  be 
Ambassador  Extraordinary  and  Plenipoten- 
tiary of  the  United  States  of  America  to 
Argentina. 

Lloyd  I.  Miller,  of  Ohio,  to  be  Ambassador 
ExtraordlnauTT  and  Plenipotentiary  of  the 
United  States  of  America  to  Trinidad  and 
Tobago. 

(The  above  nominations  were  approved 
subject  to  the  nominee's  commitment  to  re- 
spond to  requests  to  appear  and  testify  before 
any  duly  constituted  committee  of  th» 
Senate.) 

The  Judiclary 
Herbert  J.  Stem,  of  New  Jersey,  to  be  UJ3 
district  judge  for  the  district  of  New  Jersey. 


HOUSE  OF  REPRESENTATIVES- Trf>f/A,,.s,/az/.  December  19.1973 


The  House  met  at  12  o'clock  noon. 
The  Chaplain,  Rev.  Edward  G.  Latch, 
DJD.,  offered  the  following  prayer: 

Blessed  be  the  Lord  God  of  Israel, 
for  He  has  visited  and  redeemed  His 
people  *  *  *  to  give  light  to  them  that 
sit  in  darkness  and  *  *  *  to  guide  our 
feet  into  the  way  of  peace. — Luke  1:  68, 
79. 

Eternal  God,  our  Father,  come  Thou 
to  new  life  within  us  as  we  worship  Thee 
■  in  spirit  and  in  truth.  FJumine  our  dark- 
ened lives  with  the  light  of  Thy  presence 
and  prepare  our  minds  with  wisdom  for 
the  decisions  we  must  make  and  the 
actions  we  must  take.  Purify  our 
thoughts,  strengthen  our  spirits,  kindle 
anew  within  us  the  attitude  of  good  will, 
and  by  Thy  spirit  fit  us  for  Thy  service 
as  we  serve  our  country  In  this  forum  of 
freedom  and  democracy. 

Bless  our  country  with  Thy  presence 
as  together  "we  seek  to  And  our  way 
through  the  crisis  now  upon  us.  May  the 
oil  of  integrity  and  good  will  lubricate 
all  our  relationships  and  make  our  life  as 
a  nation  more  smoothly  onward  toward 
greater  things. 

Let  Thy  spirit  rule  among  the  nations 
that  peace  may  be  firmly  established  lor 


the  good  of  all  by  the  goodness  of  all. 
So  shall  Christmas  be  a  reality  In  our 
day. 
■  In  the  spirit  of  Christ  we  pray.  Amen. 


THE  JOURNAL 

The  SPEAKER.  The  Chair  has  exam- 
ined the  Journal  of  the  last  day's  pro- 
ceedings and  announces  to  the  House  his 
approval  thereof. 

Without  objection,  the  Journal  stands 
approved. 

There  was  no  objection. 


MESSAGE  FROM  THE  PRESIDENT 

A  message  in  writing  from  the  Presi- 
dent of  the  United  States  was  communi- 
cated to  the  House  by  Mr.  Marks,  one  of 
his  secretaries,  who  also  informed  the 
House  that  on  the  following  dates  the 
President  approved  and  signed  bills  of 
the  House  of  the  following  titles : 

On  November  29.  1973 : 

HR.  6777.  An  act  to  require  that  reproduc- 
tions and  Imitations  of  coins  and  political 
Items  be  marked  as  copies  or  with  the  date 
of  manufacture; 

H  R.  7582  An  act  to  amend  title  10,  United 


States  Code,  to  entitle  the  Delegates  In  Con- 
gress from  Guam  and  the  Virgin  Islands  to 
make  appointments  to  the  service  academies: 

H.R  8187.  An  act  to  amend  section  2031 
(b)(1)  of  title  10,  United  States  Code,  to 
remove  the  requirement  that  a  Junior  Re- 
serve Officer  Training  Corps  unit  at  any  insti- 
tution must  have  a  minimum  numt)er  of 
physically  fit  male  students: 

H.R.  10366.  An  act  to  amend  title  10,  United 
States  Code,  to  remove  the  4-vear  limitation 
on  additional  active  duty  that  a  nonregular 
officer  of  the  Army  or  Air  Force  may  be  re- 
quired to  perform  on  comoletlon  of  training 
at  an  educational  Institution: 

H  R  10369.  An  act  to  amend  title  37,  United 
States  Code,  to  provide  entitlement  to  round 
trip  transportation  to  the  home  port  for  a 
member  of  the  imiformed  services  on  perma- 
nent duty  aboard  a  ship  being  Inactivated 
away  from  home  port  whose  dependents  are 
residing  at  the  home  port:  and 

HJ   Res.  735   Joint  resolution  authorizing 
the  Secretary  of  the  Navy  to  receive  for  In- 
struction  at  the   VS.  Naval   Academy  two 
citizens  and  subjects  of  the  Empire  of  Iran. 
On  November  30.  1973 : 

H  R.  10937.  An  act  to  extend  the  life  of  the 
June  6.  1972.  grand  jury  of  the  U.S.  District 
Court  for  the  District  of  Columbia. 
On  December  3.  1973 : 

HR.  11104.  All  act  to  provide  for  a  tempo- 
rary Increase  of  $10,700,000,000  In  the  public 


12538 


CONGRESSIONAL  RrcORD— HOUSE 


debt  limit  and  to  extend  the  period  to  which 
this  temsKjrary  limit  applies  to  June  30.  1974. 
On  December  5,  1973: 
HH.  1353.  An   act   for   the   relief  of  Toy 
Louie  Lin  Heong; 

HM.  1356.  An  act  for  the  relief  of  Ann  E. 
Shepherd; 

HJi.  1367.  An  act  for  the  relief  of  B«rtha 
AUcla  Sierra; 

HJl.  1463.  An  act  for  the  r«Uef  of  Kmllla 
Majowicz: 

H  J?  1696.  An  act  for  the  relief  of  Sun  Hwa 
Koo  Kim; 

HR.  1955.  An  act  for  the  relief  of  Rosa 
Ines  DElla; 

H  R.  2513.  An  act  for  the  relief  of  Jose 
Carlos  Recalde  Martorella: 

UJi.  2628.  An  act  for  the  relief  of  Anka 
Kosanovlc; 

H  R  3207.  An  act  for  the  relief  of  Mrs. 
Enid  R.  Pope: 

HR.  3754.  An  act  for  the  relief  of  Mrs. 
Bruna  Turr.l.  Grazlella  Tumi,  and  Antonello 
Turnl; 

H  R.  6334.  An  act  to  provide  for  the  uni- 
form application  of  the  position  classtSca- 
tlon  and  general  schedule  pay  rate  provisions 
of  title  5.  United  States  Code,  to  certain  em- 
ployees of  the  Selective  Service  System; 

H  R.  6828.  An  act  for  the  relief  of  Edith 
E.  Carrera; 

H_R.  6829.  An  act  for  the  relief  of  Mr. 
Jose  Antonio  Trias: 

HR.  9575.  An  act  to  provide  for  the  en- 
listment and  commissioning  of  women  In  the 
Coast  Guard  Reserve,  and  for  other  purposes: 
and 

HH  10840.  An  act  to  amend  the  act  of 
August  4,  1950  (64  Stat.  411).  to  provide 
salary  Increases  for  members  of  the  police 
force  of  the  Library  of  Congress. 
On  December  6,  1973: 
HR.  9474.  An  act  to  amend  title  38.  United 
States  Code,  to  Increase  the  monthly  rates  of 
disability  and  death  pensions  and  depend- 
e:\cr  and  Indemnity  compensation,  and  for 
other  purposes. 

On  December  8.  1973 : 
H  R.  1948.  An  act  for  the  relief  of  Edgar  P. 
Faullcner  and  Ray  H.  New; 

HR.  1949.  An  act  for  the  relief  of  Haz«l  W. 
Lawson  and  Lloyd  C.  Johnson; 

H  R  2207.  An  act  for  the  relief  of  Joseph 
C    Leeba; 

HR.  2213.  An  act  for  the  relief  of  Cor- 
nelius S.  Ball.  Victor  F.  Mann.  Jr.,  George  J. 
Posner.  Domluick  A  Sgammato.  and  James 
R.  Walsh: 

HR.  3044.  An  act  for  the  relief  of  James 
Evans,  publisher  of  the  Colfax  County  Press, 
and  Morris  Odvarka; 

H  R.  3.=>30.  An  act  for  the  relief  of  Eugenia 
C.  Lytrle;  and 

H  R  9276.  An  act  for  the  relief  of  Luther 
V    Wlnstead. 

On  December  10.  1973: 
H  R    11710   An  act  to  Injure  that  the  com- 
pensation  and   other  emoluments  attached 
to  :he  OEce  of  Attorney  General  are  those 
which  were  In  effect  on  January  1,  1969. 
On  December  11.  1973: 
HR    4443.  An  act  for  the  relief  of  Ist  Lt. 
Joh;i   P.   Dunn.   Army  of  the  United  States, 
retired;  and 

HR  7446  An  act  to  establish  the  Ameri- 
can Revolution  Bicentennial  Administration, 
and  for  other  purposes. 

On  December  12.  1973; 
H_R.  1328    An  a-t  for  the  relief  of  M    Sgt. 
Eugene  J    Mlkulenia.  U.S.   Army,  retired; 

HR  3751.  An  act  for  the  relief  of  James  E. 
Fry.  Jr    and  Margaret  E.  Fry; 

HR.  4175.  An  act  for  the  relief  of  Manuel 
H.  SUva;  and 

H  R  8406  An  act  for  the  relief  of  William 
M.  S'arrs. 

On  December  13.  1973: 

HJl.  7210.  An  act  for  the  relief  of  Oeorge 
Downer  and  Victor  L.  Jones. 


On  December  14,  1973: 
HH.  1384.  An  act  to  amend  title  5,  United 
States  Code,  to  improve  the  administration 
of  the  leave  system  for  Federal  employees. 
On  December  15,  1973 : 
HH.  974.  A  act  designating  the  Texarka:ia 
Dam  and  Reservoir  on  the  Sulphur  River  as 
the  "Wright  Patman  Dam  and  Lake'; 

HJl.  1694.  An  act  for  the  relief  of  Ossle 
Emmons  and  others; 

H-R.  3436.  An  act  to  provide  for  the  con- 
veyance of  certain  mineral  right*  In  and  un- 
der lands  In  Onslow  County,  N.C.; 

HR.  6379.  An  act  for  the  relief  of  John  B 
Clayton: 

HR.  6007.  An  act  for  the  relief  of  Swlff- 
Traln  Co.; 

H.R.  6768.  An  act  to  provide  for  participa- 
tion by  the  United  States  In  the  United  Na- 
tions environment  program; 

HJl.  8528.  An  act  to  provide  for  Increasing 
the  amount  of  Interest  paid  on  the  perma- 
nent fund  of  the  U.3.  Soldiers'  and  Airman's 
Home;  and 

HM.  11324.  An  act  to  provide  for  daylight 
saving  time  on  a  year-round  basis  for  a  2- 
year  period,  and  to  require  the  Federal  Com- 
munications Commission  to  permit  certain 
daytime  broadcast  stations  to  operate  before 
local  sunrise. 

On  December  18,  1973: 
HJl.  3180.  An  act  to  amend  title  39,  United 
States  Code,  to  clarify  the  proper  use  of  the 
franking  privilege  by  Members  of  Congress, 
and  for  other  purposes. 


MESSAGE  FROM  THE  SENATE 

A  message  from  the  Senate  by  Mr. 
Arringion,  one  of  its  clerks,  announced 
that  the  Senate  had  passed  without 
amendment  a  bill  and  concurrent  reso- 
lutions of  the  House  of  the  following 
tlUes:  * 

HR.  11441.  An  act  to  postpone  the  Imple- 
mentation of  the  Headstart  fee  schedule; 

H.  Con.  Res.  278.  Concurrent  resolution 
authorizing  the  printing  of  additional  copies 
of  the  Joint  committee  print  'Soviet  Eco- 
nomic   Prospects   for   the   Seventies"; 

H.    Con.    Res.    386.    Concurrent    resolution 
expressing  the  concurrence  of  the  Congress 
in  naming  the  nuclear-oowered  aircraf-  car- 
rier CVN-70  as  the  U.S.   ship  Carl   Viruon 
and 

H.  Con  Res  402.  Ccncjrrent  resolution 
directing  the  Secretary  of  the  Senate  to  make 
corrections  In  the  enrollment  of  S.  1435. 

The  mesvsage  also  announred  that  tlie 
Senate  had  passed  with  amendments  in 
which  the  concurrence  of  the  House  is 
requested,  bills  of  the  Hou^e  of  the  fol- 
lowing titles  : 

HR.  8449  An  act  to  expand  the  national 
flood  Insurance  program  by  substantially  In- 
creasing limits  of  coverage  and  total  amount 
of  Insurance  authorized  to  be  outstanding 
and  by  requiring  known  flood-prone  com- 
munities to  participate  In  the  program,  and 
for  other  purposes;  and 

H  R  852<>  An  act  to  Implement  the  shrimp 
f.shlng  asrreement  with  Brazil. 


The  message  also  annoimced  that  the 
Senate  agrees  to  the  report  of  the  com- 
mittee of  conference  on  the  disagreeing 
votes  of  the  two  Houses  on  the  sunend- 
ments  of  the  House  to  the  bill  iS.  1435  > 
entitled  "An  act  to  provide  an  elected 
Mayor  and  City  Council  for  the  District 
of  Columbia,  and  for  other  purposes'*. 

The  message  also  announced  that  the 
Senate  agrees  to  the  amendments  of  the 
House  to  bills  of  the  Senate  of  the  fol- 
lowing titles ; 


December  19,  1972 

S.  1529.  An  act  to  authorize  the  Secretary  of 
the  Interior  to  enter  into  agre*ment.s  with 
non-Federal  agencies  for  the  repl»<:enient  of 
the  existing  American  Falls  Dam.  Minidoka 
project,  Idaho,  and  for  other  purpo.se.s 

3.  2166.  An  act  to  authorize  the  disposal  of 
opium  from  the  national  stockpile,  and 

S.  2318.  An  act  to  authorize  the  dlqx>sal  of 
copper  from  the  national  stockpUe  and  the 
supplemental  stockpUe. 

The  message  also  announced  that  the 
Senate  had  receded  from  Its  amendment 
to  the  bill  of  the  House  of  the  following 
title: 

HJl.  7362.  An  act  to  amend  section  4083(c) 
of  title  18,  United  States  Code,  to  extend 
the  limits  of  confinements  of  Federal 
prisoners. 

The  message  also  announced  that  the 
Senate  had  passed  bills,  joint  and  con- 
current resolutions  of  the  following  titles, 
in  which  the  concurrence  of  the  House 
Is  requested: 

S.  1868.  An  act  to  amend  the  United  Na- 
tions Participation  Act  of  1946  to  halt  the 
importation  of  Rhodeslan  chrome; 

S  2432.  An  act  to  estabUsh  a  procedure 
assuring  Congress  the  full  and  prompt  pro- 
duction of  Information  requested  from  Fed- 
eral officers  and  employees. 

S.  2794.  An  act  to  amend  chapter  36  of 
title  38,  United  States  Code,  to  authorize  the 
Administrator  of  Veterans"  Affairs  to  con- 
tlnue  making  educational  assistance  and 
subsistence  allowance  payments  to  eligible 
veterans  and  eligible  persons  during  periods 
that  the  educational  Institutions  In  which 
they  are  enrolled  are  temporarily  closed  pur- 
suant to  a  policy  proclaimed  by  the  President 
or  because  of  emergency  conditions: 

S.J.  Res.  182.  Joint  resolution  extending 
the  dates  for  the  transmission  of  the  1974 
Economic  Report  and  the  report  of  the  Joint 
Economic  Committee: 

S  Con.  Res.  30.  Concurrent  resolution  to 
esUbUsh  a  procedure  assuring  Congress  the 
full  and  prompt  production  of  information 
requested  from  Federal  officers  and  em- 
ployees. 

The  message  also  announced  that  Mr. 
Case  was  appointed  as  a  conferee  on  the 
blU  (H.R.  11771)  entitled  'An  act  making 
appropriations  for  Foreign  Assistance 
and  related  programs  for  the  fiscal  year 
ending  June  30,  1974,  and  for  other  pur- 
poses" in  lieu  of  Mr.  Brooke,  excu.sed 


PERMISSION  TO  KILE  CONFERENCE 
REPORT  ON  DEPARTMENT  OF  DE- 
FENSE APPROPRIATION  BILL 

Mr,  MAHON.  Mr.  Speaker,  I  ask  unani- 
mous consent  that  the  managers  on  the 
part  of  the  House  may  have  until  mid- 
night tonight  to  file  a  conference  report 
on  H.R.  11575,  a  bill  making  appropria- 
tions for  the  Department  of  Defense  for 
the  fiscal  year  ending  June  30,  1974,  and 
for  other  purposes. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection. 

CONFEaENCE  Repobt  (  H.  Rxpt  No.  93-741) 
The  committee  of  conference  on  the  dls- 
agreeUig  votes  of  the  two  Houses  on  the 
amendments  of  the  Senate  to  the  bill  (H.R. 
11575)  "making  appropriations  for  the  De- 
partment of  Defense  for  the  flscal  vear  end- 
ing June  30,  1974.  and  for  other  purpoees."' 
having  met,  after  full  and  free  conference, 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Houses  as  follows: 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42539 


That  the  Senate  recede  from  Its  amend- 
ments numbered  14.  26,  72,  73.  76,  83  84  86 
86,  87.  88,  88,  90,  91,  92.  93,  94,  95,  96,'  97,'  98] 
99,  100,  102,  103,  104,  106.  106,  107.  and  113. 
That  the  House  recede  from  Its  disagree- 
ment to  the  amendments  of  the  Senate  num- 
bered 2.  4,  5.  8,  16,  17,  18,  21,  22,  24,  29  30, 
31.  32,  33,  37,  38,  41,  46,  47,  48,  63,  64,  59,  60, 
64,  65,  66,  69,  80,  82,  and  108,  and  agree  to  the 
same. 

Amendment  numbered  1:  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  1,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  bv  said  amend- 
ment Insert  "»7. 109,950,000";  and  the  .Senate 
agree  to  the  same. 

Amendment  numbered  6:  That  the  Ho»«e 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  6,  and  agree  to 
the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "»98.482.000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  7:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  7,  and  agree  to 
the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment insert  ""«1, 649 ,394,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  10:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  10,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  •'$1,087,131,000  ";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  11 :  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  11,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$327.879,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  12:  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  12.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$340,837,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  19:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  19,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  ••$2,033,250,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  20:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  20.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$445,810,000'";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  40:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  i.umbered  40,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment ln.<;ert  "$563,266,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  42:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  42,  and  agree 
to  the  same  with  an  amendment,  as  follows- 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$219,233,000";  and  the  Senate 
agree  to  the  same 

Amendment  numbered  43:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  43,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$6,504,294,000";  and  the  Senate 
agree  to  the  same 

Amendment  numbered  57:  That  the  Houre 


recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  67.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment insert  $514,260,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  61 :  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  61,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$800,700,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  67:  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  63,  and  agree 
to  the  same  with  an  amendment,  as  follows; 
In  Ueu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$461,690,000";  and  the  Senate 
agree  to  Uie  same. 

Amendment  numbered  67 :  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment  of  the  Senate  numbered  67,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  sum  proposed  by  said  amend- 
ment insen  "$2,722,700,000"';  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  68:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  68.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  •$800,700,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  70:  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  70.  and  agree 
to  the  same  with  an  amendment,  as  foUows: 
In  lieu  of  the  sum  proposeA  by  said  amend- 
ment Insert  "$1,204,200,000";  and  the  Sen- 
ate agree  to  the  same. 

Amendment  numbered  74:  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  74.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$1,393.300.000'-;  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  77:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  77,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  bv  said  amend- 
ment Insert  "^12,100,000  ";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  81 :  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  81,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  proposed  by  said  amend- 
ment Insert  "$3,042,000,000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  101:  That  the 
House  recede  from  Its  disagreement  to  the 
amendment  of  the  Senate  numbered  101.  and 
agree  to  the  same  with  an  amendment,  as 
follows:  In  lieu  of  the  matter  stricken  and 
Inserted  by  said  amendment,  Insert  the  fol- 
lowing: 

Sec.    735.   During   the   current   flscal    year 
upon  determination  by  the  Secretary  of  De- 
fense that  such  action   is  necessary  m  the 
national  Interest,  he  may.  with  the  approval 
cf    the   Office    of   Management   and    Budget 
transfer   not   to   exceed    $625,000,000   of   the 
appropriations  of  funds  available  to  the  De- 
partment of  Defense  for  mUltary  functions 
(^except  mUltary  construction)  between  such 
appropriations  or  funds  or  any  subdivision 
thereof,  to  be  merged  with  and  to  be  avail- 
able for  the  same  purposes,  and  for  the  same 
time  period,  as  the  appropriation  or  fund  to 
which  tr.\nsferred :  Provided,  That  such  au- 
thority to  transfer  may  not  be  used  unless 
for  higher  priority  items,  based  on  unfore- 
seen military  requirements,  than  those  for 
which  originally  appropriated,  and  In  no  case 
where  the  Item  for  which  funds  are  requested 
has  been  denied  by  Congress:  Provided  fur- 


ther.  That  Tfc^^Secretary  of  Defense   shall 
notify  the  Con^^  prog3i>tly  of  aU  transferm 
made  pursuant  «s,yJJntfuthorlty. 
And  the  Senate  agree\Q^e  same. 

Amendment  numbered^^409 :  That  the 
House  recede  from  its  disagreement  to  the 
amendment  of  the  Senate  numbered  109,  and 
agree  to  the  same  with  an  amendment,  as 
follows:  In  lieu  of  the  number  stricken  and 
inserted  by  said  amendment  Insert  "742"' 
and  the  Senate  agree  to  the  same. 

Amendment  numbered  nO:  That  the 
House  recede  from  Its  disagreement  to  the 
amendment  of  the  Senate  numbered  110, 
and  agree  to  the  same  with  an  amendment! 
as  follows:  In  lieu  of  the  number  stricken 
and  Inserted  by  said  amendment  Insert  ""743"; 
and  the  Senate  agree  to  the  same. 

Amendment  numbered  ill:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  111,  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  number  stricken  and  Inserted 
by  said  amendment  Insert  "744  ";  and  the 
Senate  agree  to  the  same. 

Amendment  numbered  112:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  112.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  matter  proposed  by  said  amend- 
ment. Insert  the  following: 

Sec.  745.  No  part  of  the  funds  m  this  Act 
shall  be  available  to  prepare  or  present  a 
request  to  the  Committees  on  Appropria- 
tions for  the  reprogramlng  of  ftinds,  unless 
for  higher  priority  items,  based  on  unfore- 
seen military  requirements,  than  those  for 
which  originally  appropriated  and  In  no  case 
where  the  Item  for  which  reprogramlng  Is 
requested  has  been  denied  by  the  Congress. 

And  the  Senate  agree  to  the  same. 

Amendment  numbered  114:  That  the  Hotise 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  114.  and  agree 
to  the  same  with  aa  amendment,  as  follows: 
In  Ueu  of  the  matter  proposed  by  said 
amendment  Insert: 

Sec.  746.  None  of  the  fimds  contained  In 
this  Act  shall  be  used  to  furnish  petroleum 
fuels  produced  In  the  continental  United 
States  to  Southeast  Asia  iot  use  bv  non- 
United  States  nationals. 

And   the   Senate  agree  to  the  same. 

Amendment  numbered  115:  That  the 
House  recede  from  its  disagreement  to  the 
amendment  of  the  Senate  numbered  116.  and 
agree  to  the  same  with  an  amendment,  as 
folows:  In  lieu  of  the  matter  proposed  by 
said  amendment  Insert: 

TITLE  vm 

DXyENSE    MAVPOWTH    COMMISSION 

There  Is  hereby  appropriated  the  sum  of 
*400,000  to  the  Defense  Manpower  Commis- 
sion for  use  In  carrying  out  the  provisions 
of  title  Vn  of  the   Department  of  Defense 
Appropriation   Authorization   Act,    1974. 
And  the  Senate  agree  to  the  same. 
The   committee   of   conference   report   In 
disagreement    amendments    numbered    3     9 
13.  15.  23,  26,  27,  28.  34.  35,  36,  39.  44   45   49* 
50.  51,  62,  55,  56.  58.  62,  71,  76,  78,  and  7b! 
Oeobce  Mahon, 
Robert  L.  P.  Sikes. 
Danixl  J.  PlOOD. 
Joseph  P.  Addabbo. 
John  J.  McPai-l 

(except  as  to  amend- 
ment 77). 
JoBH  J.  Pltnt.  Jr. 

(except  as  to  amend- 
ment 77). 

ROBE«T  N.  QlAIMO, 

jAMtE  L.  WamntN, 

WlLIOAM  E.  MiXSHALL. 

Oij:kn  r.  Davis. 
Loris  C.  Wtmak. 
Jack  EnwAKDe, 

E.  A.  CEDEaBEXG 

Managers  on  the  Part  oj  the  Hotiae. 


42540 


CONGRESSIONAL  RICORD  —  ^iOUSE 


December  19,  1973 


John  L.  McCXezxan, 
JoHi*  C.  SrxNNia, 
John  O.  PAaroKX, 
Wasakn    O.    Maonx'son, 
^  QTCksrc  Stmincton, 

Milton  R.  Touno, 
Roman  L.  Hbuska, 
Noiua  Cotton. 
Olotomd  p.  Cass 

(except  as  to  omead- 
ment  No.  1 ) , 
MaTtagera  on  the  Part  of  the  Senate. 

Jonrr   Extlanatost   Statxmknt   or  thb 

COMMITTEZ    or    CONTXKZNCX 

The  managers  on  the  part  of  the  Houm 
and  the  Senate  at  the  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
axnendments  of  the  Senate  to  the  bill  (HJi. 
1157S).  making  appropriations  for  the  De- 
partment of  Defense  for  the  fiscal  year  end- 
ing June  30.  1974.  and  for  other  purposes, 
submit  the  following  Joint  statement  to  the 
House  and  the  Senate  In  explanation  of  the 
effect  of  the  action  agreed  upon  by  the  man- 
agers and  recommended  In  the  accompany- 
ing conference  report: 

TTTT-K    I MnUTAST    PERSONNEL 

Military  personnel.  Army 
Amendment  No.  1. — Appropriates  17.109.- 
950.000  Instead  of  •7.131.437.000  as  proposed 
by  the  House  and  •7.098.050.000  as  proposed 
by  the  Senate. 

The  conferees  are  In  agreement  that  a  por- 
tion of  the  total  reduction  of  •101.450.000  Is 
to  be  allocated  to  specific  items  as  contained 
In  the  House  Report.  The  remaining  portion 
of  the  reduction  Is  to  be  allocated  by  the 
Army  The  specific  reductions  are  as  follows: 
Armed  Forces  Entrance  and  Examining  Sta- 
tion. t900.000:  Graduate  training.  •6.739.- 
000.  Supp>ort  of  automatic  data  processing. 
tUOO.OOO:  Air  Defense  Operstlons.  •2.000.- 
000:  Parachute  Jump  pay.  •1.900.000.  Race 
relations  counselors.  4750.000;  and  Career 
counselors,  •1.182.000.  Implementation  of 
the  parachute  Jump  pay  reduction  can  be 
deferred  from  ^bruwy  1  to  April  1,  1974 
If  the  Army  desires  to  do  so. 

The  House  has  receded  with  respect  to 
the  Elimination  of  marginal  performers. 
Project  Transition.  Cost  of  living  allowance, 
and  Permanent  change  of  station  travel. 
However,  the  conferees  are  In  agreement  that 
Project  Transition  shall  be  terminated  prior 
to  the  end  of  fiscal  year  1974.  but  no  specific 
dollar  limitation  is  applied  during  fiscal  year 
1974.  The  remaining  specific  House  reduc- 
tions are  agreed  to  by  the  Senate 

The  Senate  agreed  to  restore  •11.900.000 
of  the  •17.000.000  deleted  from  the  bUl  for 
MUUary  Assistance  to  South  Vietnam  and 
Laos,  making  a  total  of  ^42.400.000  available 
for  this  purpose  in  this  appropriation. 

With  respect  to  Items  of  difference  as 
oon-.alr.ed  In  the  reports  but  not  reflected 
by  dollar  changes  or  amendments  to  the  bill, 
the  conferees  are  In  agreement  that  the 
House  report  with  respect  to  the  following 
Items  shall  be  in  effect:  Promotion  to  the 
grade  of  captain  (0-3).  Discontinuation  of 
pre-medlcal  training  for  Academy  cadets. 
Proficiency  pay  for  shortage  skUls.  Account- 
ing and  budgeting  for  permanent  change  of 
statlo.i  moves.  Application  and  use  of  the 
combat  arms  enlistment  bonus,  the  consoli- 
dation of  Race  relations  schools,  and  Medical 
training  for  active  duty  offlcers  The  House 
receded  with  respect  to  the  consolidation  of 
chaplain  schools  and  has  also  agreed  that  the 
Movenwnt  of  household  goods  and  automo- 
biles to  and  from  Alaska.  Hawaii,  and  0  3. 
PosaesBlons  and  Territories  shall  be  con- 
duf^ed  tn  a  manner  which  provides  the  same 
prlTUeges  and  benefits  to  military  personnel 
moving  to  and  from  these  locations  as  U  pro- 
vided to  military  personnel  moving  between 
any  other  locations  In  the  Cnlted  SUtes 
The  House  will  request  the  General  Account- 


ing Office  to  conduct  a  review  and  study  on 
the  feasibility  and  cost  of  consolidating  the 
Individual  service  Chaplain  schools. 
Military  personnel.  Nary 
Amendment  So.  2.— Appropriates  »5.2T1.- 
350.000  as  proposed  by  the  Senate  Instead 
of  •5^81,995.000  as  proposed  by  the  House 

The  conferees  are  in  agreement  that  a  por- 
tion of  the  •84J50.000  reduction  is  to  be 
allocated  to  specific  items  as  contained  In  the 
House  report  The  remaining  portion  of  the 
reducUon  is  to  be  aUocated  by  the  Navy.  The 
specific  reductions  are  as  follows:  Career 
counselors.  •930.000;  Race  relauons  counsel- 
ors. •250.000;  Intercultural  relations  coun- 
selors. •145.000;  Graduate  training,  •S- 
578.000;  Enlisted  degree  training.  •0.800.000; 
Southeast  Asia  strength,  $2,475,000;  and  Sup- 
port to  other  Nations,  •1.004,000. 

The  House  has  receded  with  respect  to  the 
Elimination  of  marginal  performers.  Cost  of 
living  allowance,  Strategic  Programs  man- 
ning and  the  Numbers  of  dentists  to  be 
employed  by  the  Navy.  The  remaining  spe- 
cific House  reductions  were  agreed  to  by  the 
Senate. 

With  respect  to  Items  of  difference  as  con- 
tained In  the  reports  but  not  reflected  by 
dollar  changes  or  amendments  to  the  bUl. 
the  conferees  are  In  agreement  that  the 
House  Report  with  respect  to  the  following 
Items  shall  be  in  effect:  Promotion  to  the 
grade  of  lieutenant  (0-3),  Discontinuation 
of  pre-medlcal  training  for  Midshipmen. 
Shortage  specialty  proficiency  pay.  Budgeting 
and  accounting  for  permanent  change  of 
station  moves,  and  the  Consolidation  of  race 
relations  schools.  The  conferees  are  In  agree- 
ment that  the  Consolidation  of  chaplain 
schools  should  not  be  affected  until  fiirther 
s:udy  has  been  conducted.  The  movement  of 
household  goods  and  automobiles  to  and 
from  Alaska.  HaaaU.  and  0  8  Territories  and 
Possessions  shall  be  conducted  in  a  manner 
which  provides  the  same  privileges  and  bene- 
fits to  military  personnel  moving  to  and  from 
these  locations  as  Is  provided  to  military 
personnel  moving  between  any  other  loca- 
Uon  m  the  United  States. 

Amendment  No.  J.— Reported  In  technical 
disagreement  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  agree  to  the 
Senate  amendment  which  provides  that  "not 
to  exceed  ^9,900,000  shall  be  available  for 
transfer  to  appropriate  accounts  under  this 
head  for  the  fiscal  years  1969,  1971.  and  1972, 
but  only  in  such  amounts  as  necessary  for 
payments  to  the  Internal  Revenue  Service 
for  unpaid  withholding  taxes,  and  the  ac- 
counts In  such  fiscal  years  shall  be  adjusted 
accordingly"  This  language  Is  necessary  to 
enable  the  Navy  to  pay  the  Internal  Revenue 
Service  for  wIthholdUig  taxes  withheld  from 
the  pay  of  military  personnel  but  never  paid 
to  the  Internal  Revenue  Service  during  fiscal 
years  1969.  1971  and  1972  because  the  ap- 
propriation for  these  years  was  rejxjrted  in 
deficiency  under  Revised  Statutes  3879  (31 
use  6«5i 

Military  personnel.  Marine  Corps 
Amendment  No.  4. — Appropriates   •1,647,- 
000,000  proposed  by  the  Senate  Instead  of  •!.. 
549.462,000  as  proposed  by  the  House. 

The  conferees  are  In  agreement  that  a  por- 
tion of  the  •8,800.000  reduction  Is  to  be  al- 
located to  specific  Items  as  contained  In  the 
House  Report.  The  remaining  portion  of  the 
reduction  Is  to  be  allocated  by  the  Marine 
Corps.  The  speclflc  reductions  are  as  followj: 
Career  counselors,  •585.000;  and  Graduate 
training.  ^852.000 

The  House  has  receded  with  respect  to  the 
Elimination  of  marginal  performers.  Project 
Transition,  Marine  Corps  personnel  assigned 
outside  the  Department  of  Defense,  and  Cost 
of  living  allowance.  However,  the  conferees 
are  In  agreement  that  Project  Transition 
shall  be  terminated  prior  to  the  end  of  flscal 
year  1974.  but  no  speclflc  dollar  limitation 


is  applied  durjng  flscal  year  1974.  The  re- 
maming  specfltk  House  reductions  were 
•greed  to  by  the  Sejiat* 

With  respect  to  uims  of  difference  as  con- 
tained In  the  reports  but  not  reflected  by 
dollar  changes  or  amendments  to  the  bUi, 
the  conferees  are  in  agreement  that  the 
House  report  with  respect  to  the  following 
items  shall  be  in  effect:  Promotion  to  the 
grade  of  captain  (0-3),  Shortage  specialty 
proflclency  pay.  Accounting  and  budgeting 
for  permanent  change  of  station  moves.  Ap- 
plication and  use  of  the  combat  arms  en- 
listment bonus,  and  the  Consolidation  of 
race  relations  schools.  The  conferees  are  In 
agreement  that  the  Movement  of  hou.sehold 
goods  and  automobiles  to' and  from  Alaska. 
Hawaii,  and  U-S.  Territories  and  Possessions 
shall  be  conducted  la  a  manner  which  pro- 
vides the  same  privileges  and  benefits  to 
military  personnel  moving  to  and  from  these 
locations  as  Is  provided  to  military  personnel 
moving  between  any  other  locations  In  the 
United  SUtes 

Military  personnel.  Air  Force 
Amendment  No.   5. — Appropriates  •6.863.- 
350.000  as  proposed  by  the  Senate  Instead  of 
•6,886.411.000  as  proposed  by  the  House 

The  conferees  are  in  agreement  that  a  por- 
tion of  the  •eg. 150.000  reduction  is  to  be 
allocated  to  speclflc  items  as  contained  In  the 
House  report.  The  remaining  portion  of  the 
reduction  U  to  be  allocated  by  the  Air  Force. 
The  speclflc  reductions  are  as  follows:  Mili- 
tary personnel  assigned  outside  the  Depart- 
ment of  Defense.  •970.000;  Race  relations 
counselors.  •250,000;  Graduate  training. 
•6.980.000;  and  Southeast  Asia  strength 
levels.  •SJOO.OOO 

The  House  has  receded  with  respect  to  the 
Elimination  of  marginal  performers.  Project 
Transition,  and  Cost  of  living  allowance. 
However,  the  conferees  are  In  agreement  that 
Project  Transition  shall  be  terminated  prior 
to  the  end  of  fiscal  year  1974.  but  no  speclflc 
dollar  limitation  Is  applied  during  fiscal  year 
1974.  The  remaining  speclflc  House  reduc- 
tions were  agreed  to  by  the  Serate 

With  respect  to  Items  of  difference  as  con- 
tained in  the  reports  but  not  reflected  by 
dollar  changes  or  amendments  to  the  bill, 
the  conferees  are  in  agreement  that  the 
House  report  with  respect  to  the  following 
Items  shall  be  in  effect:  Promotion  to  the 
grade  of  captain  (0-3).  Discontinuation  of 
pre-medlcal  training  for  academy  cadets. 
Shortage  special  proflclency  pay.  Accounting 
and  budgeting  for  permanent  change  of  sta- 
tion moves.  Consolidation  of  race  relations 
schools,  and  Medical  training  for  active  duty 
officers.  The  House  has  receded  with  respect 
to  the  Consolidation  of  chaplain  schools  and 
has  also  agreed  that  the  Movement  of  house- 
hold goods  and  automobiles  to  and  from 
Alaska.  Hawaii,  and  US.  Possessions  and  Ter- 
ritories shall  be  conducted  In  a  manner 
which  provides  the  same  privileges  and  bene- 
flts  to  military  i>ersonnel  moving  to  and  from 
these  locations  as  Is  provided  to  military  per- 
sonnel moving  between  any  other  locations 
In  the  United  States. 

Reserve  personnel.  Army 
The  conferees  are  m  agreement  that  the 
House  portion  with  respect  to  the  esubllah- 
ment  of  Junior  Reserve  Officers  Reserve  train- 
ing programs  (High  School  ROTO).  The 
House  had  directed  that  no  new  progr.ims  be 
established  until  the  units  not  meeting  cur- 
rent enrollment  criteria  meet  enrollment 
standards  or  are  disestablished. 

Reserve  personnel.  Navy 
The  conferees  are  in  agreement  that  the 
portion  of  the  reduction  of  •2.697.000  not 
previously  allocated  is  to  be  allocated  at  the 
discretion  of  the  Navy.  House  Instructions 
with  respect  to  establishment  of  new  Junior 
ROTC  unite  was  agreed  to.  The  conferees  are 
In  agreement  that  Phased  Puree  CV^mponent 
Companies   and   Systems  Analysis  DtvUlons 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42.>41 


may   be   continued    If   adequate   funds   are 
available  While  the  House  direction  to  phase 
out  these  units  was  not  agreed  to,  the  Navy 
Is  not  precluded  from  phasing  them  out. 
Reserv-e  personnel.  Air  Force 

The  conferees  are  In  agreement  that  the 
portion  of  the  reduction  of  ^12.338.000  not 
previously  allocated  U  to  be  allocated  at  the 
discretion  of  the  Air  Ptorce.  House  Instruc- 
tions with  respect  to  establishment  of  new 
Junior  ROTC  units  was  agreed  to. 

TmjE  m — opniATioN   and   maintenance 
Operatiort  and  maintenance,  Army 

Amendment  No.  6. — Appropriates  •98.482.- 
000  instead  of  •93.382,000  as  proposed  by  the 
House,  and  $104,582,000  as  proposed  by*  the 
Senate. 

The  ccnferees  agreed  that  the  House  re- 
duction of  •3,000,000  applicable  to  air  de- 
fens©  units  should  be  sustained  and  that 
the  Immediate  deactivation  of  these  units 
should  begin.  The  conferees  also  agreed  that 
this  position  Is  applicable  to  the  air  defense 
units  op>erated  by  the  Army  National  Guard. 

The  conferees  agreed  that  $3.1  million  of 
the  House  reduction  of  •6.2  million  for  the 
Logistics  Support  System  of  the  Army's  Safe- 
guard System  should  be  restored.  The  con- 
ferees agreed  that  the  restored  funds  can  be 
used  for  contractual  support  of  the  Army's 
Safegtiard  Logistics  and  maintenance  opera- 
tions. 

Amendment  No.  7.— Appropriates  •1,649.- 
394.000  Instead  of  •1.619,465.000  as  proposed 
by  the  House,  and  »1, 652.644 ,000  as  proposed 
by  the  Senate  The  House  had  deleted  •6,500,- 
000  for  the  re  vital  izatlon  of  the  Army's  re- 
enllstment  program.  The  Senate  restored 
these  funds  The  conferees  agreed  to  restore 
•3,250.000 

Amendment  No.  8 — Appropriates  JSlO.wa  - 
000  as  proposed  by  the  Senate  Instead  of 
•309.678.000  as  proposed  by  the  House. 

Amendment  No.  9.— Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  recede  and 
concur  In  the  Senate  amendment  with  an 
amendment  appropriating  •1.802.832,000  In- 
stead of  81.808.832,000  as  proposed  by  the 
House,  and  •1,807.832.000  as  proposed  by  the 
Sen.<ite. 

The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 

The  conferees  agreed  to  the  House  reduc- 
tion of  810,000.000  for  space-available  travel 
and  Its  position  on  this  matter.  The  Senate 
had  restored  $5,000,000  of  the  House  reduc- 
tion. 

Amendment  No.  10. — Appropriates  •1,087,* 
131,000  instead  of  •968.531.000  as  proposed 
by  the  House,  and  •1.087.831.000  as  proposed 
by  the  Senate.  The  conferees  agreed  to  the 
House  reduction  of  8700.000  for  degree-seek- 
ing training. 

Amendment  No.  ff.— Appropriates  $327- 
879.000  Instead  of  •321.658.000  as  proposed 
by  the  House,  and  •330,379.000  as  proposed 
by  the  Senate.  The  House  had  reduced  the 
Army  request  for  reimbursement  to  the  Post 
Office  Department  by  «5,000.000.  The  Senate 
restored  these  funds.  The  conferees  agreed 
that  an  additional  ^2.5  million  would  be  sui- 
flclent. 

Amendment  No.  12. — Appropriates  $340- 
837.000  instead  of  •414,237.000  as  proposed 
by  the  House,  and  •262.337,000  as  proposed 
by  the  Senate.  The  conferees  agreed  to  re- 
store •78,500.000  of  the  Senate  reduction  for 
MASF. 

Amendment  No.  IJ.— Reported  in  techni- 
cal disagreement.  The  managers  on  the  part 
of  the  House  wUl  offer  a  motion  to  recede 
and  concur  In  the  Senate  amendment  with 
an  amendment  appropriating  •8,214.697,000 
Instead  of  $6,133,747,000  as  proposed  by  the 
House,  and  •6,153.747.000  as  proposed  by  the 
Senate. 


Ine  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 

The  conferees  concurred  In  the  following 
changes  recommended  by  the  Senate  and  In- 
cluded In  the  various  subdivisions  of  this 
appropriation : 

Project  Transition -1-Jl.  200.  000 

Overseas    dependent    educa- 
tion     -(-127.500,000 

Camouflage  screens +6.000,000 

ADP  leases +800,000 

Classified  projects -500,000 

Energy  conservation —28.000,000 

Executive    development    pro- 
gram .. —1,600,000 

In  addition  to  the  Items  in  conference  dis- 
cussed under  this  appropriation,  the  Sen- 
ate bin  reflects  a  redistribution  of  House 
reductions  among  the  various  subdivisions 
of  the  appropriation.  The  adjustments  are 
acconmiodated  within  the  total  appropria- 
tion. 

Amendment  No.  14. — The  conferees  agreed 
to  delete  language  making  the  Secretary  of 
the  Army's  determination  final  and  conclu- 
sive upon  the  accounting  officers  of  the  Gov- 
ernment. 

Amendments  Nos.  IS,  28,  34,  45,  and  52. 

Reported  In  technical  disagreement.  The 
managers  on  the  part  of  the  House  wUl  offer 
a  motion  to  recede  and  concur  In  the  Senate 
amendment  with  an  amendment  permitting 
the  transfer  of  three  percent  of  the  amount 
of  any  subdivision  of  this  appropriation, 
but  no  subdivision  may  be  Increased  by  more 
than  five  percent. 

The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 
Operation  and  maintenance.  Navy 

Amendment  No.  f 6.— .^proprlates  $334.. 
236.000  as  proposed  by  the  Senate.  Instead 
of  the  $335,566,000  as  proposed  by  the  House. 

Amendment  No.  f7.— Appropriates  S2.334,- 
618.000  as  proposed  by  the  Senate,  Instead 
of  the  $2,371,731,000  as  proposed  by  the 
House. 

Amendment  No.  f«.— Appropriates  $303  - 
225,000  as  proposed  by  the  Senate,  Instead  of 
the  $304,935,000  as  proposed  by  the  House. 

Amendment  No.  19  —Appropriates  $2  033  - 
250,000  Instead  of  $2,032,246,000  as  proposed 
oy  the  House,  and  $2,036,000,000  as  proposed 
by  the  Senate.  The  conferees  agreed  to  the 
House  reduction  of  $5,500,000  for  space-avail- 
able travel. 

Amendment  No.  20.— Appropriates  $445  - 
810.000  instead  of  $423,822,000  as  proposed 
by  the  House,  and  $451,793,000  as  proposed 
by  the  Senate.  The  conferees  agreed  to  the 
House  reduction  of  $2,233,000  lor  degree- 
seeking  training.  The  House  reduced  pilot 
training  by  $10,000,000  and  the  Senate  re- 
stored $7,5»0,000.  The  conferees  agreed  that 
$3,750,000  for  pilot  training  should  be  re- 
stored. 

Amendment  No.  2f.— Appropriates  $354,- 
645,000  as  proposed  by  the  Senate.  Instead  of 
$354,666,000  as  proposed  by  the  House. 

Amendment  No.  22 — Appropriates  $177,- 
285,000  as  proposed  by  the  Senate.  Instead  of 
$178,353,000  as  proposed  by  the  House. 

Amendment  No.  2J— Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  vrtll  offer  a  motion  to  recede  and 
concur  in  the  Senate  amendment  with  an 
amendment  appropriating  $6,004,950,000  In- 
stead of  $6,023,200,000  as  proposed  by  the 
House,  and  $6,013,683,000  as  proposed  bv  the 
Senate. 

The  managers  on  the  part  of  the  Senate 
wiu  move  to  concur  in  the  amendment  of  the 
House  to  the  amendment  of  the  Senate. 

The  conferees  concurred  In  the  following 
changes  recommended  by  the  Senate  and  In- 
cluded In  the  varlotis  subdivisions  of  this 
appropriation. 


''c"t  Amount 

Project   Transition +$300,000 

Overseas  dependent  education.  +20, 100,  000 

Sonobuoy  support... _  +5,300.000 

Classified   projects —2.100,000 

Energy  conservation -43!80o!o00 

Civilian     financial     manage- 
ment training -1,800,000 

In  addition  to  the  items  in  conference  dis- 
cussed imder  this  approprlaUon,  the  Senate 
bill  reflects  a  redistribution  of  House  reduc-^ 
tlons  among  the  various  subdivisions  of  the 
appropriation.  The  adjustments  are  accom- 
modated within  the  total  i4>proprlatlon. 

Amendment  No.  24— The  Senate  Inserted 
the  citation  of  leglsUUve  authority  of  the 
Navy  with  regard  to  emergencies  and  ex- 
traordinary expenses.  The  House  blU  did  not 
Include  this  language.  The  House  agreed  to 
the  Senate  amendment. 

Amendment  No.  25. — The  conferees  agreed 
to  Include  In  the  bUl  authority  that  the  Sec- 
retary of  the  Navy  may  make  payments  from 
funds  provided  for  emergencies  and  extraor- 
dinary expenses  upon  his  certification  that 
they  are  for  confidential  military  purposes. 
The  conferees  further  agreed  to  delete  the 
language  making  the  Secretary  of  the  Navy's 
determination  final  and  conclusive  upon  ac- 
counting officers  of  the  government. 

Amendments  Nos.  26  and  :;".— Reponed  m 
technical  disagreement.  The  managers  on  the 
part  of  the  House  wUl  offer  motions  to  recede 
and  concur  in  the  Senate  amendments. 

The  House  bill  included  a  provision  that 
not  more  than  $851,672,000  of  the  funds  pro- 
vided for  the  alteration,  overhaul,  and  repair 
of  naval  vessels  shall  be  available  for  per- 
formance of  such  work  In  Navy  shlpvards. 
The  Senate  amended  the  House  language  to 
provide  that  no  less  than  the  above  amount 
would  be  available  for  such  work  In  Navy 
shipyards  and  not  less  than  $359,919,000 
would  be  available  for  such  work  in  private 
shipyards.  - 

The  conferees  agreed  that  of  the  amounts 
contained  in  the  Senate  bill,  $39,242,000  to 
Included  In  the  Operation  and  Mamteuance, 
Navy  Reserve  appropriation. 
Operation  and  maintenance,  Marine  Corps 
Amendment  No.  29 — Appropriates  $212.- 
374.000  as  proposed  by  the  Senate  instead  of 
$213,552,000  as  proposed   by  the  House 

Amendment  No.  30. — Appropriates  $101.- 
254.000  as  proposed  by  the  Senate  Instead  of 
$101,629,000  as  proposed  by  the  House. 

Amendment  No.  31. — Appropriates  $66,- 
486.000  as  proposed  by  the  Senate  Instead  of 
$66,527,000   as   proposed   by   the   House. 

.Amendment  No.  32. — Appropriates  $•29,642.- 
000  as  proposed  by  the  Senate  Instead  of 
f29.048,000    as   proposed    by   the   House. 

Amendment  No.  33. — Appropriates  $410,- 
645,000  as  proposed  by  the  Senate  Instead  of 
$411,645,000  as  proposed   by   the  House. 

The  Marine  Corps  requested  $760,000  for 
civilian  pilot  training  In  light  aircraft  dur- 
ing flscal  year  1974.  The  House  reduced  this 
request  by  $550,000  and  directed  the  pro- 
gram be  discontinued.  The  Senate  concurred 
with  the  House  reduction  but  recommended 
the  program  be  continued  using  available 
funds  within  the  appropriation.  The  con- 
ferees agreed  with  the  House  position  that 
the  program  be  discontinued.  The  conferees 
also  concurred  In  the  $1,000,000  Senate  re- 
duction for  energy  conservation. 

In  addition  to  the  I'ems  in  conference  dis- 
cussed under  this  appropriation,  the  Senate 
bin  reflects  a  redistribution  of  House  reduc- 
tions among  the  various  subdivisions  of  the 
appropriation.  The  adjustments  are  accom- 
modated within  the  total  appropriation. 
Operation  and  maintenance.  Air  Force 
Amendment  No.  35 — Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  »-lll  offer  a  motion  to  recede  and 
concur   In   the  Senate  amendment   with   an 


42542  CONGRESSIONAL  RECORD  — HOUSE  December  19,  1973 

Mnendment  approprlaimg  ^1.108.442,000  In-          The  House  reduced  the  Air  Korc«  request  House,  and  »448  159  000  as  proposed  by  the 

stead   of   $1,124,154,000   as' proposed    by   the  for  the  MASP  program   by  (30.000.000.  The  Senate.                                              ^^ 

House  and  $1,1 17.192,000  as  proposed  by  the  Senate  made  a  further  reduction  of  tgg.eoo.-  The  man&gers  on  the  part  of  the  Senate 

^^^^^-  000.  The  conferees  agreed  to  the  restoration  will  move   to  concur  In  the  amendment  of 

The  managers  on  the  part  of  the  Senat«  of  »69.200.000.  These  funds  are  Included  In  the  House  to  the  amendment  of  the  Senate 

wiU  move   to  concur  In   the  amendment  of  the  support  of  other  nations  subdlvlalon.  The  House  reduced  the  i«quest  of  the  De- 

the  House  to  the  wnendment  of  the  Senate           The  conferees  concurred  in  the  following  fense   Intelligence  Agency   by   »1  500  000   for 

4meridr7i«ntAfo.  36— Reported  in  technical  changes  recommended  by  the  Senate  and  In-  contract    studies    to    be    made    for    th«    As- 

dlsagreement    The  managers  on  the  part  of  eluded    In   the   various  subdivisions  of   thU  slstant  Secretary  of  Defense  for  IntelllKtnce 

the  House  will  offer  a  motion  to  recede  and  appropriation.  The  Senate  restored  these  funds  but  relTuced 

concur   In   the  Senate   amendment   with   an  r'i««in«rf  ir,t«iii„-^ .  »""<^  .„I«Tr"v^ 

amendment  appropriating  »1. 006.833.000  in-  ^^  "^"^                                                 ^^ount  a  "^t  f^cle^'^^  ^^  P^^^^^.^^  "P°-?>° '" 

stead   of   $1,014,091,000    ai   proposed    by   the  ^^f^^   transition $484,000  *   '^*^J''"*"^  '^  •1.300.000  In  this  budget 

Houae^and  $1,014.082  000  as  proposed  by  the      ^^^,^^1^^^^^^:^'^^--     -Si  ^  S^      ^  The '«,aferees  agr^d  with  the  House  re- 

The  managers  on  the  part  of  the  Senate  m   addition   to   the   items    In   conference  fhe^^'^'ni?:  ^^^SoT  foT'^med'^nt^S 

wUl   move   to  concur  In   the  amendment  of  discussed  under  thU  appropriation,  the  Sen-  llgence  projects                            a«inea 

the  House  to  the  amendment  of  the  Senate,  ate    bill    reflects    a   redistribution    of    House  AmeKdmint  No.  50 -Reported  in  technl- 

Amenament   No.   37  -Appropriates   $530.-  reductions  among  the  various  subdivisions  of  cal  disagreement.  The  man^^Ton  t^  p^rt 

t^2^3^^To?on<^  bv^h?HoJ^  "^^  appropriation    The  adjustments  are  ac-  of  the  House  will  offer  a  mot^n  to^^de  a^d 

^i^T  ^  ^    P*^  ^J  ^^^  ^  ,       .,,,  commodated  vilthln  the  total  appropriation,  concur   In   the  Senate   amendment   with   an 

530  ^Topci^  byThf  ^'nSL  l^tJ^  of'  h.  '""-<""-' il^  «  -Reported  In  technical  amendment  appropriating  .MS^^^ao^^  ,'- 

rJSnTn^^^     '^^     L  w   ^"*^  instead  of  disagreement    The  Senate  bill  Included  Ian-  stead   of   $1,650,408  000   as   proposed    bv    the 

$n9  240j)00  as  proposed  by  the  House.  guage   that  funds  provided   for  emergencies  House,  and  $1,458,198  000  as  S?Wd  by  the 

Amendment  No.  39.-Reported  In  technical  and  extraordinary  expenses  can  be  expended  Senate                                           proposed  by  the 

?h1^u«  »';il'^ff\rTr^u"n°w'^ran1      l""  "^'  "Tl'"'  "'  ''''  ^'"'"^  °'  "^^  ^'         "^^  '"»"*«*"'  "'^  *^«  P^^  <>'  ^he  Senate 
the  House  »ill  offer  a  motion  to  recede  and      porce.  and  tteat  payments  may  be  made  on      wUl   move  to  concur  In  the  amendment  of 

concur   In   the  Senate  amendmentj*-Uh   an  ^^  certificate  that  they  are  for  confidential  the  House  to  the  amendment^  the  ^n ate 

s'^Id   oT,2  3?8'9"f  SS,   a!  ^^0^^'^  me"  ^'''''P'  P"?'*'^'  "'"*  '^"  ^^^  determlna-  The  conferees  concurred  !nthl  SL^Unt 

Ho^  aLd  $2  3l!56^  as  or^^  by  ^e  "°''  ^'   '^"^    and   conclusive   upon    the   ac-  atlon  of  the  United  States  Armed  Forces  In- 

Moi.se  and  » J. J  11.068. 000  as  proposed  by  the  counting  officers  of  the  Government.  stltute  (USAPI)   by  May  31    1974 

.^"^^.^                        »v,          _     ,  .V.     o       .  The  conferees  agreed  to  delete  the  language  The  conferees  concurred  In  the  followlne 

The  Managers  on  the  part  of  the  Senate  n^^^g  the  Secretary  of  the  Air  f^rce  deter-  changes    recommended    by    the   Senate    and 

will   move  to  concur  in  the  amendment  of  mination  final  unrf  rnnr«iii«ir»  ,.r.r.n  th«  o/-  ir,^i,,H-i^  .-  .t,      '=""''"    "■>    *■""   senate    ana 

the  House  to  the  amendment  of  the  Senate  m»ii»"on  nnal  and  conclusive  upon  the  ac-  Included  In  the  various  subdivisions  of  this 

me  House  to  tne  amendment  or  the  senate,  counting  officers  of  the  Government.  appropriation 

Amendment   No.   «).— Appropriates    $563.-  Therefore,   the   managers   on   the   part    of 

266,000   mstead   of  $617,736,000   as   proposed  the  House  will  offer  a  motion  to  recede  and  '^^"^                                                Amount 

by  the  House  and  $563,713,000  as  proposed  concur   In   the  Senate  amendment   with   an      B""«*lr.g   maintenance... +$64,000 

by  the  Senate.  The  conferees  agreed  to  the  amendment    striking    the    prohibitive    Ian-  DIS-ADP      capabUlty      expan- 

House  reduction  of  $447,000  from  the  degree-  guage                                                                                   ®'°'*    -t- 126, 000 

seeiung  graduate  training  program.  The  managers  on  the  part  of  the  Senate      DMA-General  reduction -i-a,60o!oo0 

Amendment  No.  <1  .—Appropriates   $215,-  ^111  move  to  concur  in  the  amendment  of  NSA-Emplojee     and     program 

882.000  as  proposed  by  the  Senate  Instead  of  the  House  to  the  amendment  of  the  Senate           reductlo:is -2.  600.000 

$211,467,000  as  proposed  by  the  House.  ^         ,              j       j   .                r.  ..                          i^ i„      .  »,     ^.      « 

Amendment   No.    « -Appropriates   $219.-  Operations  and  maintenance.  Defense  AmendmenJ  Wo.  5;.— Reported  In  technical 

233.000  instead  of  8255.733.000  as  proposed  by  agencies  disagreement.    The    Senate    reinserted    lan- 

the  House,  and  $150.033  000  as  propoeed  by  Amendment    No.    4«— Appropriates    $49.-  K"»Be   "^   tne   bUl   that   funds  provided   for 

the  Senate  749.000  as  propoeed  by  the  Senate  instead  of  emergencies  and  extraordinary  expense  can 

Arr.endment  No.  43— Appropriates  $6,504  -  5243.885.000  as  proposed  by  the  House.  The  b«  "Pended  on  the  approval  of  the  Secretary 

2S4  000  instead  of  $6  532  100  000  as  proposed  conferees  agreed  that  funda  for  overseas  de-  °'  Defense,  and  that  payments  may  be  made 

by  the  House,  and  $6,458,241,000  as  proposed  peridents   education   should   be   Included    in  on  hia  certificate  that  they  are  for  conflden- 

b>  the  Senate  the  appropriations  of  the  Military  Services  as  ''*'  military  purposes,  and  that  his  determl- 

The  House  reduced  the  Air  Force  request  proposed  by  the  Senate.  The  Department  of  na"on  ^  Apal  and  conclusive  upon  the  ac- 

for  civUiau  personnel  strength  by  $9  020  000  Defense  has  agreed  that  funds  for  overseas  counting  officers  of  the  Government.  The  con- 

The  Senate  restored  $5  000  000  of  this  reduc-  dependents  education  will  be  included  in  the  [f^i^  agreed  to  delete  the  language  making 

tlor.    The  conferees  agreed  that  the  amount  budget  request  for  the  Secretary  of  Defense  the  Secretary  of  Defense's  determination  final 

to  be  restored  should  be  «2  500.000.  The  re-  activltlee  In  fiscal  year  1976.  and  conclusive  upon  the  accounting  officers 

duciion  was  applied  equally  to  the  strategic  ^^^   Office   of   the   Assistant    Secretary   of  i!*! J°^*''°™*°'^ 

forces  and  the  general  purpose  forces  subdl-  Defense    for   InteUlgence    had    requested   an  --^^*'*£°'*'  ^^^  managers  on  the  part  of  the 

visions  Increase  of  30  new  civilian  employee.-,  in  fis-  House  will  offer  a  motion  to  recede  and  con- 

The  House  reduced  the  Air  Porce  request  «=al  year  1974   The  House  allowed  an  lncre.ii,e  '^^    ^^    the    Senate    amendment    with    an 

for  space-avaUable  travel  bv  $10,000,000.  The  °^    ^^  employees.   The  Senate  denied   addi-  "nendment  strtking  such   prohibitive  Ian- 

Senate    restored    $5,000,000.    The    conferees  Clonal    funds   but   stated    the   requested   In-  ^"±?* 

agreed  with  the  House  position  on  this  mat-  crease  in  staff  for  the  Assistant  Secretary  for  The  managers  on  the  part  of  the  Senate 
ter  and  appaed  the  $10  000  000  reduction  to  Intelligence  was  reasonable;  and.  In  effect,  will  move  to  concur  in  the  amendment  of 
the  central  supply  and  malitenance  sub-  restored  the  positions  denied  by.the  House,  t^^e  House  to  the  amendment  of  the  Senate, 
division.  ^***  coiifereea  agreed  to  the  House  position  Operation  and  maintenance.  Army  Reserve 
The  House  deleted  the  bud-et  request  of  '-^hlch  limited  the  Increase  to  15  civilian  po-  Amendment  No  53— Appropriates  $253.- 
13,400.000  for  modification  of  B-52D  aircraft.  i?'^„  900.000  as  proposed  by  the  Senate  instead  of 
The  Senate  restored  these  funds  The  con-  ^^*  Senate  recommended  that  $750,000  of  $255,000,000  as  proposed  by  the  House  The 
ferees  agreed  that  the  amount  to  be  re-  *"*  '""''*  provided  for  Secretary  of  Defense  conferees  a«?reed  to  an  additional  Senate  re- 
stored should  be  $1,700,000.  ThU  reduction  fctmtles  be  used  to  establish  the  Defense  duction  of  81.100.000  relating  to  enerirv  con- 
has  been  applied  to  the  central  supply  and  ***i^Po»er  Commission   which  was   Included  servation  measures 

maintenance  subdivision.  '»   'he   fiscal    year    1974   Defense   Aiithorlza-  Operation  and  maintenance    Na,^  R*,«.,,- 

The  House  deleted  the  Air  Force  request  "^n  Act.  The  conf-ree,  agreed  to  delete  this  V  °  J^  ",     maintenance,  Naiy  Reserve 

of  $3,500,000  for  Improvements  to  Command  l*  'Kuage   as  Title  VUI  of  the   bill   provides  7=;;^  „  ^"' ^  ^    T;  ^^'""1  *.'**   "''°" 

Data  Buffer  software,   which   Is  part  of  th.  MOO.OOO    for    the    Defense    Manpower   Com-  If?™^'!^'^  l^  the  Senate  Instead  of 

Mlnuteman    force    modernization    program,  mission.  conf™T^tLf  t?«       H^f*.*^*  ,"<f  ""^    ^^' 

Tv.e  senate  restored  the«  funds.  Thrcon-  Amendment    No.    <7.-Approprlate8    $20.-  du^tl^  of^  «0  (S)0^?«Mni°t'^^..^'''''*  ''' 

feree,  agreed  to  restore   $2,000,000.   The   re-  320  000  as  proposed  by  the  ^nate  Instead  of  «,^atlon  measure?^            ^            ""^  '°"" 

duc'ion    of    $1,^^.000    was    applied    to    the  $20  134  000  as  proposed  by  the  Hou.se.  or,^,-,^.^        ^         .   . 

•Uategtc  force,  suodivislon.  Amendment   No    48 -Apprror-ates   $148  -  Operation  and  maintenance.  Air  Force 

The  House  reduced  the  Air  Force's  request  149.000  as  propoeed  by  the  Senite  Instead  of  .         ^         »  „      „'™* 

for  the  fljing  hour  program  by  $: 2.000.000  $145.649  000  as  propoeed  by  the  Hou  e  Amendment  No.  65— Reported  in  technl- 

The  Senate  restored   the.^  fund*.  The  con-  Amendment  No.  ^.-Reported  in  technical  ^?^»hift^!I"t"M    V"  '"^"'^•"'  ""  *»>•  P*" 

ferees  agreed  that  this  reduction  should  be  dliaKreement    The  managers  on  the  t^rt  of  House  will  offer  a  motion  to  recede  and 

sustained  and  the  Senate  receded.  T^e  re-  th^ouse  wlU^fferT^.r;^ V^^l^i  ren^ent'IpX^attnT  W^f'^^^  1^" 

d.rtlon  wn^  applied  equally  to  the  strategic  concur   in   the  Senate  amendment   with  an  ^^   of    $223  (S^S^    w^ro^T   t^; 

d'ivuiLn:"''     ^'"*'*'     P"'^^'*     ''^'    ■^''-  ^niendment    appropriating    $446,859,000    In-  Hou«,.  and  $22?Soo  as'p^'J^  by  ^l 

dlvi«ion«.  atead    of    $450.859  000    as    propoeed    by    the  Senate.                                                           "y  «ie 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOl^SE 


42r>43 


The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 
The  Air  Porce  Reserve  requested  an  In- 
crease of  543  technicians  for  fiscal  year  1974. 
The  House  reduced  this  request  by  200  tech- 
nicians and  $2,400,000.  The  Senate  restored 
150  of  these  positions  and  $1,800,000.  The 
confereees  agreed  to  restore  75  positions  and 
$900,000. 

The  House  agreed  to  the  Senate  reduction 
of  $2,000,000  for  energy  conservation  In  the 
Air  Porce  Reserve  operations. 
Operation  and  maintenance.  Army  National 
Guard 
Amendment  No.  66. — Reported  In  techni- 
cal disagreement.  The  managers  on  the  part 
of  the  House  will  offer  a  motion  to  recede 
and  concur  In  the  Senate  amendment  with 
an  amendment  appropriating  $524,400,000  In- 
stead of  $524,000,000  as  proposed  by  the 
House,  and  $523,839,000  as  proposed  by  the 
Senate. 

The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of  the 
House  to  the  amendment  of  the  Senate. 

As  previously  discussed,  the  conferees 
agreed  to  the  House  position  relative  to  the 
deactivation  of  air  defense  units.  The  House 
reduced  the  National  Guard,  Army  request 
for  support  of  their  air  defense  units  by 
$3,000,000.  The  Senate  restored  these  funds. 
The  conferees  agreed  that  $1,600,000  should 
bo  restored. 

The  Senate  reduced  funds  for  commercial 
bus  transportation  between  home  station 
and  weekend  training  sites  by  $2,061,000.  The 
conferees  agreed  to  the  restoration  of  these 
funds. 

The  House  agreed  to  the  Senate  reduction 
of  $1,100,000  for  energy  conservation. 
Operation  and  maintenance.  Air  National 

Guard 
Amendment   No.    57. — Appropriates   $514.- 
250.000  Instead  of  $510, 500.000  as  proposed  by 
the  Senate  and  $518,000,000  as  proposed  by 
the  House. 

The  House  reduced  Guard  technicians  by 
$2,500,000  and  200  positions.  The  conferees 
agreed  to  restore  $1,250,000  and  100  Guard 
technician  positions. 

The  House  provided  $52,100,000  for  POL 
products,  a  reduction  of  $3,800,000.  The  Sen- 
ate provided  $42,100,000  for  an  additional 
energy  conservation  reduction  of  $10,000,- 
000.  The  conferees  agreed  to  restore  $5,000,- 
000  of  the  Senate  reduction  and  provide 
$47,100,000  for  POL  products. 

Contingencies,  Defense 
Amendment  No.  58. — Reported  to  techni- 
cal disagreement.  The  House  deleted  $5,000.- 
000  requested  for  contingencies.  The  Senate 
restored  the  House  reduction  and  Included 
language  in  the  bill  requiring  a  quarterly 
report  to  Congress  of  dl."!burs€ments  made 
under  this  apprt^riatlon. 

The  managers  on  the  part  of  the  House 
will  offer  a  motion  to  recede  and  concur  in 
the  Senate  amendment  with  an  amendment 
deleting  the  language  requiring  the  submis- 
sion of  qi'ftrterly  reports  to  Congress. 

The  managers  on  the  part  of  the  Sena*e 
will  move  to  concur  in  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 

Xmi     rv— PROCtmEMENT 

Aircraft  procurement.  Army 
Amendment   No.   59.— Appropriates   $138.- 
400,000  as  proposed  by  the  Senate  Instead 
of  $139,400,000  as  proposed  by  the  House. 

The  conferees  apreed  to  a  reduction  of 
«l. 000.000  In  aircraft  spares  and  repair  parts 
as  proposed  by  the  Senate.  The  Senate  had 
provided  $13,200,000  for  aircraft  spares  and 
repair  parts  while  the  House  had  provided 
514,200.000. 

With  respect  to  the  fiscal  year  1973  pro- 
curement of  U-X  utility  aircraft  by  the 
Army  and  CX-X  utUlty  aircraft  by  the  Air 


Force,  the  conferees  agreed  that  the  funds 

already    appropriated    be    held    In   abeyance 

until  this  program  is  rejustlfled  to  Congress. 

Missile  procurement.  Army 

Amendment  No.  60. — Appropriates  $525,- 
100,000  as  proposed  by  the  Senate  Instead  of 
$514,600,000  as  proposed  by  the  House. 

The  conferees  agreed  to  provide  $10,500,000 
for  the  AN/TSQ-73  Air  Defense  Command 
and  Control  System.  The  House  had  deleted 
all  funds  for  this  system. 

Procurement  of  ammunition.  Army 

Amendment  No.  5f.— Appropriates  $784.- 
300,000  instead  of  $676,100,000  as  proposed 
by  the  Senate  and  $931300,000  as  proposed 
by  the  House. 

The  conferees  agreed  to  restore  the  $29  - 
800,000  reduction  by  the  House  for  the  4.2- 
Inch  mortar  proximity  fuze. 

The  Senate  proposed  a  $159,000,000  gen- 
eral reduction  in  ammunition.  The  con- 
ferees agreed  to  restore  $90,000,000  of  the 
Senate  reduction,  for  a  general  reduction  of 
$69,000,000  below  the  House  version. 

The  House  had  provided  $73,000,000  In 
ammunition  for  the  Military  Assistance  Serv- 
ice Funded  program,  and  the  Senate  reduced 
this  amount  by  $26,000,000.  The  conferees 
agreed  to  restore  $18,200,000  of  the  Senate 
reduction. 

The  conferees  also  agreed  to  a  general  re- 
duction of  $100,000,000.  as  proposed  by  the 
Senate,  to  be  offset  by  the  transfer  of  $100.- 
000.000    from    the    Army   Stock    Fund. 

Amendment  No.  62.  Reported  in  technical 
disagreement.  The  Managers  on  the  part  of 
the  House  will  offer  a  motion  to  agree  to 
the  Senate  amendment  to  the  language  In 
the  bin  transferring  $100,000,000  from  the 
Army  Stock  Fund. 

Other  procurement.  Army 

Amendment  No.  63.  Appropriates  $461.- 
690.000  instead  of  $460,590,000  as  proposed  by 
the  Senate  and  $502,290,000  as  proposed  by 
the  House. 

The  conferees  agreed  to  Senate  reductions 
of  $1,000,000  In  system  maintenance  train- 
ing equipment,  of  $1,400,000  in  operation 
equipment,  a  general  reduction  of  $25,000,- 
000,  as  well  as  an  additional  reduction  of  $12.- 
500,000  based  on  the  transfer  of  funds  from 
a  prior  year  account. 

The  Senate  had  reduced  the  MUltary  As- 
sistance Service  Funded  program  by  $1,800,- 
000.  The  conferees  agreed  to  restore  $1,100,000 
of  the  Senate  reduction. 

Amendment  No.  64.  The  conferees  agreed 
to  the  Senate  deletion  of  the  language  In 
the  bill  providing  $200,000  for  reimburse- 
ment t,o  the  Military  Assistance  Program. 

Afliendment  Nos.  65  and  66.  The  conferees 
agreed  to  the  Senate  language  in  the  bill  pro- 
viding an  additional  $39,500,000,  of  which 
$20,500,000  shall  be  derived  by  transfer  from 
the  "Other  Procurement,  Army,  1972,'1974" 
account.  The  House  had  provided  an  addi- 
tional $27,000,000.  of  which  $8,000,000  was 
to  be  derived  from  that  account. 

Aircraft   procuremenF,   Navy 

Amendment  No.  67.  Appropriates  $2,722,- 
700,000  instead  of  $2,646,700,000  as  proposed 
by  the  Senate  and  $2,785,200,000  as  propoeed 
by  the  House. 

The  conferees  agreed  to  the  Senate  reduc- 
tion of  $10,500,000  in  the  A-4M  Skyhawk  air- 
craft program.  The  House  had  provided  $64,- 
100,000  for  24  such  aircraft  while  the  Senate 
provided  $53,600,000  for  20  aircraft. 

The  conferees  agreed  to  the  Senate  reduc- 
tion of  $11,000,000  In  the  A-6E  Intruder 
aircraft  program.  The  House  had  provided 
$127,200,000  for  15  such  aircraft  and  the 
Senate  $116,200,000  for  13  aircraft. 

The  conferees  agreed  to  the  Senate  reduc- 
tion of  $22,000,000  In  the  A-7E  Corsair  U 
aircraft  program.  The  House  had  provided 
$152,100,000  for  42  aircraft  and  the  Senate 
$130,100,000  for  30  aircraft. 


The  conferees  agreed  to  provide  $401,- 
400,000  for  45  S-3A  Viking  aircraft  as  pro- 
posed by  the  House.  The  Senate  h»/i  pro- 
ix>sed  a  reduction  of  9  aircraft  and  $66,- 
000,000  in  the  pivgram. 

The  conferees  agreed  to  provide  $29,000,- 
000  for  T-2C  Buckeye  trainer  aircraft.  The 
House  had  provided  $32,100,000  tor  24  such 
aircraft  and  the  Senate  had  provided  $24,- 
000,000  for  12  aircraft. 

The  conferees  agreed  to  tne  Sena'^e  dele- 
tion of  $4,900,000  for  the  rued.um  transport 
aircraft. 

The  conferees  agreed  to  restore  the  $5,- 
000,000  Senate  reduction  In  A-6  aircraft 
modifications.  The  funds  thus  restored  are 
for  pods  for  the  Condor  missile  modification 
to  the  A-6  aircraft. 

The  conferees  also  agreed  to  the  Senate 
reduction  of  $11,000,000  in  aircraft  spares 
and  repair  parts. 

Weapons  procurement.  Navy 

Amendment  No.  68.  Appropriates  $800.- 
700.000  instead  of  $834,700,000  as  proposed 
by  the  Senate  and  $790,700,000  as  proposed 
by  the  House. 

The  Senate  had  restored  the  House  reduc- 
tion of  $14,100,000  In  advance  procurement 
funding  for  the  Harpoon  missile.  The  con- 
ferees agreed  to  restore  the  $14,100,000  In  the 
Research.  Development,  Test,  and  Evalua- 
tion, Navy  appropriation. 

The  conferees  Eigreed  to  the  House  denial 
of  $12,400,000  for  the  AGM-83A  BiUldog  mis- 
sile. This  was  an  unbudgeted  item  and  the 
House  report  language  prevails  with  respect 
to  this  missile  program. 

The  House  had  provided  $26,600,000  for 
the  Fleet  Satellite  Communications  System, 
while  the  Senate  provided  $44,100,000  for 
that  program.  The  conferees  agreed  to  pro- 
vide $36,600,000  for  this  communications  sys- 
tem. 

Shipbuilding  and  conversion,  Navy 

Amendment  No.  69.  Appropriates  $3,468,- 
100,000  as  proposed  by  the  Senate  instead 
of  53.453,800,000  as  proposed  by  the  House. 

The  conferees  agreed  to  provide  $29,300,000 
In  advance  procurement  funding  for  the  Sea 
Control  Ship  as  proposed  by  the  Senate.  The 
House  h&d  deleted  all  ftmds  for  this  ship. 
The  conferees  furUier  agreed  that  no  funds 
are  to  be  obligated  for  this  program  i>endlng 
a  study  by  the  Surveys  and  Investigations 
Staff  of  the  House  Appropriations  Committee, 
and  until  specific  approval  in  writing  has 
been  granted  by  both  the  House  and  Senate 
Appropriations  Committees. 

The  conferees  also  agreed  to  a  Senate  re- 
duction of  $15,000,000  In  auxiliaries  and 
craft. 

Other  procurement.  Navy 

Amendment  No.  70.  Appropriates  $1,204,- 
200,000  instead  of  $1,202,300,000  as  proposed 
by  the  Senate  and  $1,261,000,000  as  propoeed 
by  the  House. 

The  conferees  agreed  to  Senate  reductions 
of  $4,600,000  in  the  AN/BQQ-5  sonar:  $600.- 
000  in  AN'BQS-IS  Improyements:  $400,000 
in  communications  and  electronics  Items 
under  $500,000:  $500,000  In  expendable  bathy- 
thermograph systems:  $1,900,000  in  AN  AVLR- 
6  (E  to  N>  klti:  $4,300,000  in  All -Digital  At- 
tack Center:  $1,200,000  In  AN  SSQ-53 
(DIFAR)  sonobuoys;  $2,000,000  in  AN,SSQ- 
47  sonobuoys:  and  $500,000  in  Personnel  and 
Command  Support  items  under  $500,000. 

The  Senate  had  reduced  the  $7,500,000 
requested  for  the  Military  Assistance  Service 
Funded  program  by  $2,700,000.  The  confer- 
ees agreed  to  restore  $1,900,000  of  the  Senate 
reduction. 

The  conferees  also  agreed  to  the  general 
reduction  of  $40,000,000  as  proposed  bv  the 
-Senate. 

Aircraft  procurement.  Air  Force 
Amendment  No   71.  Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  appropriate 


X 


V 


12' 1 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


•2.730.400.000  Instead  of  $2,470,900,000  as 
proposed  by  the  Senate  and  •2.693.800.000  as 
proposed  by  the  House.  The  managers  on 
the  part  of  the  Senate  will  move  to  concur 
In  the  amendment  of  the  House  to  the 
amendment    of    the    Senate 

The  conferees  agreed  to  provide  »70. 100.000 
for  24  A-70  Corsair  n  aircraft  as  proposed 
by  the  Senate,  and  •151.000.000  for  12  P-UIF 
aircrsift  as  proposed  by  the  House. 

The  House  had  provided  »764.000.000  for 
68  P-15  aircraft,  while  the  Senate  had  pro- 
vided «714.000.000  for  60  such  aircraft.  The 
conferees  agreed  to  provide  •736.000.000  for 
62  P-15  aircraft 

The  conferees  agreed  to  provide  ^69.300.000 
for  reimbursement  to  the  Military  Assistance 
Program — •28.300  000  from  new  budget  au- 
thority and  •41.000,000  derived  from  prior 
year  funds  transferred  forward  to  fiscal  year 
1974. 

The  conferees  agreed  to  provide  ^7.600.000 
for  the  E-3A  AWACS  aircraft  program.  The 
Senate  had  provided  the  •11.700.000  re- 
quested, while  the  House  had  deleted  all  the 
funds. 

The  conferees  agreed  to  provide  •32.300.000 
for  a  fourth  E-4A  Advanced  .\lrbome  Na- 
tional Command  Poet  aircraft  as  proposed  by 
the  Senate.  The  House  had  deleted  the  funds 
requested.  The  conferees  are  In  ..greement 
that  no  further  747  aircraft  are  to  be  budg- 
eted for  this  program  until  the  command- 
control-communlcatlons  electronics  package 
has  completed  development  and  has  been 
thoroughly  tested,  along  with  the  required 
electromagnetic  pulse  tests,  utilizing  the  test 
bed  aircraft  funded  by  Congress  in  fiscal  year 
1973. 

The  conferees  agreed  to  provide  108,100.000 
for  B-:2D  structural  modifications.  The  Sen- 
ate had  provided  •46.400.000  and  the  House 
had  provided  •29.800.000  for  this  modification 
effort. 

The  conferees  agreed  to  provide  •535,700.000 
for  aircraft  spares  and  repair  parts  as  pro- 
posed by  the  Senate  Instead  of  »573.700,000 
as  proposed  by  the  House. 

The  House  had  provided  •240.700.000  for 
the  Military  Assistance  Service  Funded  pro- 
gram, and  the  Senate  had  reduced  this 
amount  by  •85.700.000.  The  conferees  agreed 
to  restore  •60,000,000  of  the  Senate  reduc- 
tion. 

None  of  the  agreed  to  reduction  of 
•26,700.000  in  the  Military  Assistance  Service 
Pxuided  program  is  to  be  applied  against  the 
reimbursement  to  the  Military  Assistance 
Program  Involving  the  transfer  of  P-5A  air- 
craft to  South  Vietnam  or  against  the  P-5E 
aircraft  program. 

.Vmendments  Nos.  72  and  73.  Under 
Amendment  No.  72.  the  conferees  agreed  x.o 
Che  House  language  in  the  bill  making  avail- 
able »2a.300.000  for  reimbursement  to  the 
appropriation  "Military  Assistance  "  Under 
Amendment  No.  73.  the  conferees  agreed  to 
the  House  language  In  the  bill  making  avail- 
able •41.000.000  of  the  funds  transferred  for 
reimbursement  to  the  appropriation  "Mlll- 
carv  .\sslstance." 

Uisnle  procurement.  Air  Force 
Amendment        No         74.         Appropriates 
•  1.393J000O0    Instead    of    •1.395.800.000    as 
propoaed  by  the  Senate  and  » 1.37 1.500.000  as 
proposed  by  the  House. 

With  respect  to  the  AQM-34  drone  modm- 
cauon  program,  the  conferees  agreed  to  pro- 
vide 96.600.000  in  this  appropriation  and  to 
provide  •2.500.000  In  the  Research.  Develop- 
ment, Test  and  Evaluation.  Air  Force  appro- 
priation. The  conferees  further  agreed  that 
none  of  the  •6.600.000  is  to  be  obUgated  until 
the  prototype  has  successfully  completed  Its 
test  program 

The  conferee*  agreed  to  the  Senate  reduc- 
tion of  »5,000.000  in  mlartle  spares  and  repair 
parts.  The  Senate  had  provided  Jsg.lOO.OOO 
and  the  House  had  provided  $44,100,000. 


The  conferees  agreed  to  provide  $30,100.- 
000  for  the  Satellite  Data  System  as  proposed 
by  the  Senate  instead  of  •13,100.000  as  pro- 
posed by  the  House. 

With  respect  to  the  Air  Force  Satellite 
Communications  System,  the  conferees 
agreed  to  provide  ^3 .200.000  as  propoeed  by 
the  Senate.  The  House  had  deleted  the  ^4.- 
300,000  requested  for  this  communications 
system. 

Other  procurement.  Atr  Force 

Amendment  No.  75.  Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  appropriate 
•  1.542,700.000  Instead  of  •1.589.300,000  as 
propoeed  by  the  Senate  and  •1.605,600,000  as 
proposed  by  the  House.  The  managers  on  the 
part  of  the  Senate  will  move  to  concxir  In 
the  amendmeiit  of  the  House  to  the  amend- 
ment of  the  Senate. 

The  conferees  agreed  to  delete  the  $11,- 
800,000  requested  for  laser  bomb  kits  as  pro- 
posed by  the  House.  The  Senate  had  provided 
the  funds  requested. 

The  conferees  agreed  to  Senate  reductions 
oJ  •11.300.000  for  CBU-62  cluster  bombs, 
•7.000.000  for  CBU-58  cluster  bombs;  •S,- 
000.000  for  relocatable  classrooms;  $10,000.- 
000  for  special  support  projects;  •l.SOO.OOO 
for  special  projects- processing  techniques; 
•2,900.000  for  the  Air  Force  Technical  Ap- 
pUcation  Center;  and  •5.000.000  for  replen- 
ishment spares. 

The  conferees  agreed  to  delete  the 
•26.200.000  requested  for  the  SLBM  phased 
array  radar  and  the  •3.800.000  requested  for 
the  Continental  Operations  Range  as  pro- 
posed by  the  House.  Both  programs  are  under 
study  by  the  Surveys  and  Investigations  Star! 
of  the  House  Appropriations  Committee. 

The  conferees  agreed  to  a  general  reduction 
of  •18.100.000. 

The  House  had  provided  •38.500.000  for  the 
Military  Assistance  Service  Funded  program, 
and  the  Senate  reduced  this  amount  by 
•  13.700.000  The  conferees  agreed  to  restore 
99.600.000  of  the  Senate  reduction. 

Procurement.  Defense  agencies 

Amendment  No.  76.  Appropriates  •ee.OOO.- 
000  as  proposed  by  the  House  instead  cf 
•66.280.000    as   proposed    by    the   Senate. 

The  House  had  deleted  •1.200.000  for  the 
piiTchase  of  commercial  passenger  vehicles 
and  the  Senate  had  restored  •280,000  of  the 
House  reduction.  The  conferees  agreed  to 
delete  all  funds  for  these  vehicles. 
Military  (uaiatance  service  funded  program 

House  Report  No.  93-662.  page  150.  directed 
that  the  Military  Assistance  Service  Funded 
Program  be  returned  t<5  the  Military  Assist- 
ance Program  budget  beginning  in  fiscal  vear 
1975. 

Senate  Report  No.  93-617,  pages  25  and  26. 
agreed  that  military  assistance  to  Laos  and 
South  Vietnam  should  revert  to  the  Military 
Assistance  Program  as  soon  as  practicable 
However,  the  Senate  report  directed  that  only 
Laos  be  transferred  to  the  Military  Assist- 
ance Program  effective  with  the  fiscal   vear 

1975  budget. 

The  c-anlerees  agreed  that  military  assist- 
ance to  South  Vietnam  revert  to  the  Military 
Assistance   budget   beginning   in   fiscal    year 

1976  This  applies  to  all  appropriations. 

TTTLX.    V EESCABCH.    DEVXLOPMtWT. 

TXST.    AWO    EVALUATION 

Research,  development,  test,  and 
evaluation.  Army 

Amendment  No.  77 — Appropriates  •1,912.- 
100,000  Instead  of  •1.866.458.000  as  proposed 
by  the  House  and  •1.915.906.000  as  proposed 
by  the  Senate 

The  managers  are  In  agreement  on  reduc- 
tions as  proposed  by  the  Senate  of  ^250.000 
in  In-house  laboratory  Independent  re- 
search, of  •2.000.000  in  Defense  research 
sciences,    of    •1,000.000    in    General    medical 


InTesUgatlons,  of  •1.200,000  in  General  chem- 
ical Investigations,  of  •SOO.OOO  In  Combat 
development  investigations,  and  of  •1.000,000 
In  Missile  technology. 

The  conference  agreement  provides  •110,- 
000,000  for  continued  development  of  the 
Site  Defense  antlballlstlc  mlsaUe  system  in- 
stead of  ^136, 000.000  proposed  by  the  Senate. 
The  managers  are  in  agreement  on  the  pro- 
vision of  $23,900,000  for  Exploratory  ballistic 
missile  defense  as  proposed  by  the  Senate 
and  •37,700.000  for  Advanced  ballistic  mlssUe 
defense  as  proposed  by  the  Senate. 

The  managers  are  In  agreement  on  the  ap- 
propriation of  •410,000  as  proposed  by  the 
Senate  Instead  of  $2,210,000  as  proposed  by 
the  House  for  the  AN/TSQ-73  Air  Defense 
Conunand  and  Control  System. 

The  conference  agreement  provides  ^193.- 
829.000.  the  full  amount  budgeted,  for  con- 
tinued development  of  the  SAM-D  antiair- 
craft missile  system  as  proposed  by  the 
House. 

The  conference  agreement  provides  an  ad- 
ditional JS.OOO.OOO  for  the  High  Energy  Laser 
program  of  the  Army  as  proposed  by  the 
Senate.  The  House  had  proposed  a  reduc- 
tion of  this  amount. 

The  House  managers  receded  from  the  po- 
sition of  the  House  in  providing  •lO.OOO.OOO 
In  the  RDT&E  appropriation  for  Mortar  prox- 
imity fuse.  This  fuse  is  funded  In  the  Pro- 
curement appropriation. 

The  Senate  managers  receded  on  the  Sen- 
ate Increase  of  •goo.OOO  for  Cryptologlc  Ac- 
tivities. 

The  conference  agreement  provides  ^3,- 
490.000  for  development  of  Remotely  piloted 
vehicles  and  drones  Instead  of  ^3.990.000  as 
proposed  by  the  Senate  and  $2,990,000  as 
proposed  by  the  House. 

The  Managers  agreed  on  the  restoration  of 
the  •l.OOO.OOO  reduction  proposed  by  the 
House  In  the  Irradiated  food  program. 

The  Managers  agreed  on  the  reduction  of 

•  1.000,000  OS  proposed  by  the  Senate  In  Pe- 
troleum, oil,  and  lubricants  utilized  in  sup- 
port of  programs  funded  In  this  account. 

Amendment  No.  78. — Reported  in  technical 
disagreement.  The  Managers  on  the  part  of 
the  House  will  offer  a  motion  to  provide  •S,- 
500,000  to  be  derived  by  transfer  as  proposed 
by  the  Senate. 

Research,  development,  test,  and  evaluation, 
Navy 

Amendment  No.  79. — Reported  In  technical 
disagreement.  The  Managers  on  the  part  of 
the  House  will  offer  a  motion  to  appropriate 
•2.661,805.000  for  the  research,  development. 
test,  and  evaluation  program  of  the  Navy  in- 
stead of  •2.616,065,000  as  propoeed  by  the 
House  and  •2.647,945.000  as  proposed  by  the 
Senate.  The  Managers  on  the  part  of  the  Sen- 
ate will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 

The  Increase  above  the  House  and  Senate 
figures  Is  a  result  of  an  agreement  to  fund 

•  14.100.000  requested  for  the  Harpoon  mls- 
sUe  program  In  the  RDT&E  appropriation 
rather  than  In  the  Procurement  appropria- 
tion where  It  was  requested. 

With  regard  to  the  Center  for  Naval  Analy- 
ses, the  managers  are  In  agreement  on  the 
provision  of  ^700,000  for  Marine  Corps  stud- 
ies Instead  of  the  •I. 000, 000  proposed  by  the 
Senate  and  on  the  provision  of  •6.500.000  for 
Navy  studies  Instead  of  •5.500,000  as  propoeed 
by  the  House  and  ^7. 140,000  as  proposed  by 
the  Senate. 

The  conference  agreement  provides  for  a 
•2.000.000  reduction  In  Acoustic  search  sen- 
sors as  propoeed  by  the  Senate. 

The  conference  agreement  provides  •8,300,- 
000  for  the  continuation  of  the  Project  San- 
guine submarine  communications  program. 
The  funds  provided  are  to  be  available  for 
continuation  of  effort  at  the  Wisconsin  test 
facility  and  none  of  the  funds  are  to  be  ap- 
plied to  any  full  scale  development  efforts. 

The  Senate  recedes  on  reductions  of  •!,- 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42545 


500,000  each  In  the  Gryphon  communication 
system  and  the  Hydrus  communication  sys- 
tem. 

The  Managers  are  In  agreement  on  the  pro- 
vision of  $4,700,000  for  the  Phalanx  program 
as  proposed  by  the  House  Instead  of  the  $3.- 
700.000  proposed  by  the  Senate. 

The  conference  agreement  provides  $523.- 
000.000  for  the  development  of  the  Trident 
missile  system  Instead  of  $517,000,000  as 
proposed  by  the  House  and  $529,000,000  as 
propoeed  by  the  Senate.  The  managers  insist 
on  the  greatest  degree  possible  of  break -out 
and  competition  on  the  various  components 
of  this  system. 

The  House  Managers  agreed  on  the  reduc- 
tion of  $700,000  in  the  AN/SQS-26  sonar  pro- 
gnun  as  proposed  by  the  Senate. 

The  conference  agreement  Includes  the  re- 
duction of  $1,000,000  proposed  in  the  Cryp- 
tologlc Activities  program  as  proposed  by  the 
House. 

The  House  managers  agreed  to  the  restora- 
tion of  $2,000,000  in  Special  Activities  as  pro- 
posed by  the  Senate  making  a  total  of  $127,- 
700.000  available. 

The  conference  agreement  Includes  Sen- 
ate reductions  of  $2,000,000  In  Marine  gas 
turblr.es,  $2,720,000  In  Advance  submarines. 
$1,000,000  In  Ship  development,  and  $2,500,- 
000  In  Acoustic  communications. 

The  Managers  agreed  on  a  reduction  of 
$2,300,000  In  Undersea  Surveillance  Instead 
of  the  $4,300,000  reduction  proposed  by  the 
Senate.  Tlius.  $36,300,000  Is  provided  Instead 
of  $38,600,000  as  proposed  by  the  House  and 
$34,300,000  as  propoeed  by  the  Senate. 

The  Managers  are  In  agreement  on  the 
reduction  of  $3,000,000  proposed  by  the  Sen- 
ate in  Support  technology. 

The  conference  agreement  Includes  $2,500.- 
000  for  Manpower  effectiveness  as  proposed 
by  the  Senate  and  $7,450,000  for  Environ- 
mental protection  as  proposed  by  the  Senate. 
Tlie  conference  agreement  includes  $43.- 
400.000  for  Special  Processes,  an  increase  of 
$28,600,000  as  proposed  by  the  Senate. 

The  Managers  are  In  agreement  on  a  re- 
duction of  $8,600,000  for  ASW  surveillance  as 
proposed  by  the  Senate  making  $23,000,000 
available  for  this  program  In  fiscal  year  1974. 
The  Managers  are  In  agreement  on  the  re- 
duction of  $1,400,000  in  Petroleum,  oil  and 
lubricants  utilized  In  this  appropriation  as 
proposed  by  the  Senate. 

The  Managers  are  In  agreement  that  none 
of  the  funds  provided  in  this  act  shall  be 
avaUable  for  efforts  to  contract  out  the  opera- 
tion of  the  Pacific  Missile  Range.  The  Man- 
agers are  In  agreement  with  the  House  posi- 
tion that  the  Navy  shall  continue  to  operate 
the  Pacific  Missile  Range  with  government, 
inllltary  and  clvUlan  personnel. 

The  Matoagers  are  In  agreement  with  the 
direction  In  the  House  Report  that  $23,200  - 
030  cf  fiscal  year  1973  funds  for  the  Phalanx 
program  be  funded  by  transfers  through  the 
reprcgramming  process. 

Amendment  No.  80.— The  Managers  are  in 
a-reement  on  the  Inclusion  of  the  language 
as  proposed  by  the  Senate  prohibiting  the 
ii.«e  of  funds  In  this  appropriation  for  full 
scale  development  of  Project  Sanguine. 
Research,  development,  test,  and  evaluation. 
Air  Force 
Amendment  No.  81. — Appropriates  $3.042 - 
000.000  Instead  of  $2,998,000,000  as  propoeed 
by  the  House  and  $3,067,000,000  as  proposed 
by  the  Senate. 

The  Managers  are  In  agreement  on  an 
Increase  of  $14,400,000  for  InteUlgence 
SateUlte  efforts.  This  amount  had  been 
deleted  by  the  Hoiise  A  corresponding  r»duc- 
tlon  Is  made  In  the  "Other  Procurement  Air 
Force"  appropriation. 

The  Managers  are  In  agreement  on  a  reduc- 
tion of  $1,000,000  in  the  Materials  program 
as  proposed  by  the  Senate. 

The  conference  agreement  provides  $11  - 
000,000  for  the  Subsonic  Cruise  Armed  Deco'y 


program  as  proposed  by  the  Senate  instead 
of  $5,000,000  as  prop-jeed  by  the  House. 

The  managers  liave  agreed  on  the  appro- 
priation of  $25,000,000  for  che  Advanced 
Medium  STOL  Transport  development  pro- 
gram instead  of  $65,200,000  as  proposed  by 
the  Senate.  The  House  deleted  all  funds  for 
this  program. 

The  conference  agreement  provides  $6,- 
500.000  for  aircraft  equipment  development 
as  proposed  by  the  Senate  instead  of  $8,000,- 
000  as  proposed  by  the  House,  a  reduction  of 
$1,500,000. 

The  conference  agreement  Includes  $107.- 
4C0.000  as  proposed  by  the  House  for  the  A-10 
aircraft  development  program  Instead  of 
$97,400,000  as  proposed  by  the  Senate. 

The  managers  are  In  agreement  on  a  re- 
duction of  $1,000,000  In  funding  for  the 
Western  Test  Range  as  proposed  by  the  Sen- 
ate. 

Tlie  conference  agreement  Includes  $10,- 
700,000  for  the  Satellite  System  for  Precise 
Navigation  as  proposed  by  the  Senate  instead 
of  $3,500,000  as  proposed  by  the  Hoiise.  This 
agreement  Is  based  on  assurances  given  by 
the  Department  of  Defe:ise  that  the  naviga- 
tion satellite  programs  of  the  Department  of 
Defense  in  all  services  are  to  be  closely  co- 
ordinated and  that  otaer  duplicative  systems 
will  be  eliminated. 

.The  Senate  managers  receded  on  the  de- 
letion of  $2,500,000  for  tl.e  AQM-34  tactical 
drone  program  proposed  by  the  Senate. 

The  conference  agreement  Includes  $27.- 
300.000  for  the  Advanced  Airborne  Command 
Post  program  as  proposed  by  the  Senate  In- 
stead of  $33,100,000  as  proposed  by  the  House. 

The  Managers  are  in  agreement  on  the  ap- 
propriation of  $6,700,000  for  Drones  and  re- 
motely piloted  vehicles  instead  of  $5,000,000 
as  proposed  by  the  House  and  $8,400,000  as 
proposed  by  the  Senate. 

The   managers  agreed   to   the   deletion   of 
$1,000,000  In  Petroleum,  oil   and  lubricants 
as  proposed  by  the  Senate. 
Research,  development,  teat,  and  evaluation. 
Defense  agencies 

Amendment  No.  82. — Appropriates  $457,- 
900,000  as  proposed  by  the  Senate  Instead  of 
$461,400,000  as  proposed  by  the  House.  The 
managers  are  in  agreement  on  all  specific  re- 
ductions made  by  the  House  and  by  the 
Senate.  The  unspecified  reductions  are  to  be 
applied  to  the  various  Defense  Agencies  as 
determined  by  the  Secretary  of  Defense. 

TFTLE    VI SPECIAL    FORXICN     CUHaENCT 

PROGRAM 

Amendment  No.  S3.— Makes  the  $2,600,000 
appropriated  for  the  Special  Foreign  Cur- 
rency program  available  until  June  30.  1975 
as  proposed  by  the  House  Instead  of  June  30. 
1976  as  proposed  by  the  Senate. 

xrrLi:  vn — general  provisions 

Amendment  No.  84. — Section  718. — The 
conferees  agreed  to  House  language  placing 
a  limitation  on  the  numbers  of  non-high 
school  graduates  and  mental  category  rv  en- 
listees who  can  be  accepted  for  military  serv- 
ice during  fiscal  year  1974. 

Amendments  Nos.  85,  86,  87,  88  89  90  91 
92,  93,  94,  95.  96,  97,  98,  99,  and  100.— Change 
section  numbers. 

Amendment  No.  101. — Section  735— Pro- 
vides general  transfer  authority  of  $625  000  - 
000  Instead  of  $500,000,000  as  proposed  by 
the  House  and  $750,000,000  as  proposed  bv 
the  Senate. 

The  managers  agreed  to  House  language 
placing  restrlcUons  on  the  use  of  this  trans- 
fer authority. 

Amendments  Nos.  102,  103,  104,  105,  106, 
and  107. — Change  section  numbers. 

Amendment   No.    108. — Section    742. The 

conferees  agreed  to  delete  the  r.-ovlslon  pro- 
posed by  the  House  with  respect  to  the  im- 
position of  strength  llmlUtlons  for  oflleer 
personnel  (0-4  through  0-10).  The  con- 
ferees agree  that  the  reductions  proposed  by 
the  House  are  reasonable  in  view  of  the  over- 


all mandated  strength  reduction  imposed  by 
the  fiscal  year  1974  authorizing  legislation 
(Pi.  93-155)  and  this  bill.  The  conferees 
direct  the  strength  reduction  for  officers  Im- 
posed in  the  House  version  be  complied  with 
by  the  military  services  during  fiscal  year 
1974  pending  enactment  of  revised  officer 
personnel  management  legislation.  The  man- 
agers agreed  to  not  include  the  provision 
in  the  law  pending  the  enactment  of  similar 
legislation  through  the  legislative  commit- 
tees. 

Amendments    Nos.    109,    110,    and    111. 

Change  section  numbers. 

Amendment  No.  112.— Section  745  — 
Changes  section  number  and  includes  lan- 
guage proposed  by  the  House  which  prohibits 
the  reprogrammlng  of  funds  for  items  which 
have  been  denied  by  Congress  or  the  repro- 
gramnung  of  funds  from  higher  priority  Items 
to  lower  priority  items. 

Amendment  No.  113.— The  conferees  agreed 
to  delete  the  provision  proposed  by  the  Sen- 
ate with  respect  to  the  provision  of  special 
eSucation  training  and  therapy  for  handi- 
capped children. 

Amendment      No.      114. — Section      746. 

Changes  section  number  and  Inserts  language 
proposed  by  the  Senate,  with  amendment  to 
prohibit  the  furnlshmg  of  petroleum  fuels 
produced  in  the  United  States  to  Southeast 
Asia  except  for  United  States  Nationals  in 
Southeast  Asia. 

TtTLK     Vm — DEPENSB     MANPOWER     COIOCISSION 

Amendment  No.  ff  5.— Senate  provided  new 
title  making  additional  appropriations  of 
$750,000  for  the  Defense  Manpower  Commis- 
sion. The  conferees  agreed  to  the  new  title 
but  reduced  the  proposed  approtsrlatlon  to 
8400.000.  • 

George  Mahon. 
Robert  L  P.  Sikxs. 
Daniel  J.  Flood. 
Joseph  P.  Addabbo. 
John  J.  McFall 
( except  as  to  amend- 
ment No.  77), 
John  J.  Fltnt.  Jr. 
(except  as  to  amend- 
ment No.  77). 
Robert  N.  Glumo. 
Jamie  L.  Whitten. 
William  E.  Mixshall. 
Glenn  R.  Davis, 
Louis  C.  Wyman. 
Jack  Edw.ards. 
E.  A.  Cederberc. 
Managers  on  the  Part  of  the  House. 
John  L.  McCleijjin. 
John  C.  Stennis. 
John  O.  Pastore. 

W.ARREN  G.  MaCNTSON. 

Stuart  Symington. 
Milton  R.  Tocnc. 
Roman  L  Hritska. 
NoRRis  Cotton. 
ClutordP.  Case 

( except  as  to  amend- 
ment No.  1 ) . 
Managers  on  the  Part  of  the  Sena:e. 


PERMISSION  TO  CONSIDER  CON- 
FERENCE REPORT  IN  DEIP.^RT- 
MENT  OP  DEFENSE  APPROPRIA- 
TION  BILL 

Mr.  M.\HON.  Mr.  Speaker.  I  ask  unan- 
laious  consent  that  It  may  be  in  order 
on  tomorrow  or  any  day  thereafter  to 
consider  the  conference  report  on  H.R. 
11575.  a  bill  making  appropriations  for 
the  Department  of  Defense  for  the  fiscal 
year  ending  June  30,  1974,  and  for  other 
purposes. 

The  SPEAKER.  Is  there  obJecUon  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection. 


4-'' th 


CONGRESSIONAL  RECORD  —  HOUSE 


PERMISSION  TO  FILE  CONFERENCE 
REPORT  ON  FOREIGN  ASSISTANCE 
ACT  APPROPRIATIONS 

Mr.  MAHON  Mr  Speaker,  I  ask  unani- 
mous consent  that  the  managers  on  the 
part  ol  the  House  may  have  until  mid- 
night tonight  to  file  a  conference  report 
on  H.R.  11771,  a  bill  m»Jting  appropria- 
tions for  foreign  assistance  and  related 
programs  for  the  fiscal  year  ending 
June  30.  1974.  and  for  other  purposes 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection. 

CONrSRINCE     RXFOKT     (H      RXPT.     No      93-743) 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendments  of  the  Senate  to  the  bill  {HM. 
11771)  •making  appropriations  for  Foreign 
Assistance  and  related  programs  for  the  fiscal 
year  ending  June  30  1974.  and  for  other  pur- 
poses. '  having  met  after  full  and  free  con- 
ference, have  agreed  to  recommend  and  do 
recommend  to  their  respective  Houses  as 
follows: 

That  the  Senate  recede  from  lu  amend- 
ments numbered  12.  14.  19.  20.  40  43  43  46 
47.  50.  and  52 

That  the  House  recede  from  Its  disagree- 
ment to  the  amendments  of  the  Senate  num- 
bered 2,  4.  7.  9.  n,  16.  17.  22.  25  29 
32.  33.  34.  35,  39.  45.  and  49.  and  agree  t^  the 
same. 

Amendment  numbered  1:  That  the  House 
recede  from  !ts  disagreement  to  the  amend- 
ment of  the  Senate  numbered  1.  and  agree  to 
the  same  with  an  amendment,  as  foUowa- 
In  lieu  of  the  sum  proposed  by  said  amend- 
mer.t  insert  ••«284.000.000";  and  the  Senate 
agree  to  the  same 

Amendment  numbered  3-  That  the  House 
recede  from  its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  3.  and  a«T»e 
to  the  same  with  an  amendment,  as  follows- 
In  lieu  of  the  sum  propoaed  by  said  amend- 
ment Insert  "J  1 35.000. OOO";  and  the  Senate 
agree  to  the  same 

Amendment  numbered  5:  That  the  House 
recede  from  Its  dlaagreement  to  the  am«nd> 
ment  of  the  Senate  numbered  5.  and  agree  to 
the  same  with  an  amendment,  aa  foUows  R«. 
store  the  matter  stricken  by  aald  amendment 
amended  to  read  as  foUowi:  ■•ProvitUd  furl 
ther.  That  not  more  than  il!:>00,000  ap- 
propriated or  made  arailable  u  -r  this  Act 
shall  be  used  for  the  purpowa  jctlon  291 

during  the  current  Qscal  year 

And  the  Senate  a«ree  to  tht  _jne. 

Amendment  numbered  8:  Th*t  the  Hcuse 
recede  from  lU  dlaaareemfnt  'o  the  amend- 
ment of  the  Senate  numbered  6.  and  a^ee 
to  the  same  with  an  amendment.  a.<i  follows 

In  lieu  of  the  sum  propowd  bv  said  aH»elId- 
men:  insert  ■•$«9,000.000":  and  t^TSenate 
agree  to  the  same.  -  -''^ 

Amendment  numbered  8  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  8.  and  agree 
to  the  iame  with  an  amendment,  as  follows: 

In  Ueu  of  the  sum  propoaed  by  said  amend- 
ment insert  •  $40,500,000-,  and  the  Senate 
agree  to  the  same 

Amendnaent  numbered  10:  That  the  House 
recede  from  lt»  disagreement  to  the  amnid- 
ment  of  the  Senate  numbered  10.  and  agree 
to  the  same  with  an  amendment,  as  follow^ 

In  Ueu  of  the  sum  propoaed  by  said  amend- 
ment inaert  "»3«J0O.00O-;  and  the  Sena-e 
agree  to  the  saxne. 

Amendment  numbered  13:  That  the  House 
re<rede  from  l-j  disagreement  to  tha  amend- 
ment of  the  Senate  numbered  13.  and  agree 
to  the  -ame  »lth  an  amendar.ent.  as  follows 

In  l!eu  of  the  sum  propoaed  by  said  amend- 
ment insert  ••I125.000.000".  and  the  Sena.e 
agree  to  the  tame. 


Amendment  numbered  18:  That  the  House 
recede  from  Ita  disagreement  to  the  amend- 
ment of  the  Senate  numbered  18.  and  agree 
to  the  same  with  an  amendment,  as  foUows : 
In  Ueu  of  the  sum  propoaed  by  said  amend- 
ment inaert  ••$7.500.000";  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  21:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  21.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  lieu  of  the  sum  named  by  said  amend- 
ment insert  ■•$750.000";  and  the  Senate  agree 
to  the  same. 

Amendment  numbered  23:  That  the 
House  recede  from  Ita  disagreement  to  the 
amendment  of  the  Senate  numbered  23.  and 
agree  to  the  same  wltu  an  amendment  aa 
foUows: 

Restore  the  matter  stricken  by  said  amend- 
ment, amended  to  read  as  follows: 

Contingency  fund:  For  necessary  ex- 
penses. •  15.000.000.  to  be  used  for  the  pur- 
poses set  forth  in  section  451.";  and  the  Sen- 
ate a^ree  to  the  same. 

Amendment  numbered  24 :  That  the  Houm 
recede  from  lu  disagreement  to  the  amend- 
ment of  the  Senate  numbered  24,  and  agree 
to  the  same  with  an  amendment,  as  foUows: 
In  Ueu  of  the  sum  proposed  by  said  amend, 
ment  insert  •MO.OOO.OOO-;  and  the  Senate 
agree  to  the  same. 

Amendment  numbered  28:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numtjered  2fl.  and  agree 
to  the  same  with  an  amendment,  as  foUows: 
In  Ueu  of  the  sum  propoaed  by  said  amend- 
ment insert  "MSO.OOO.OOO";  and  the  Senate 
agree  to  the  same 

Amendment  numbered  27:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  27.  and  agree 
to  the  same  with  an  amendment,  as  foUows: 
In  Ueu  of  the  sum  proposed  by  said 
amendment  Uisert  "MSO.OOO.OOO";  and  tha 
Senate  agree  to  the  same. 

Amendment  numbered  28:  That  the  House 
recede  from  its  disagreement  tc.  the  amend- 
ment of  the  Senate  numbered  28.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  sum  propoaed  by  said 
amendment  insert  "8112.500.000";  and  the 
Senate  agree  to  the  same. 

Amendment  numbered  30:  That  the  House 
recede  from  lu  disagreement  to  the  amend- 
ment of  the  Senate  numbered  30.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  matter  stricken  and  Inserted 
by  said  amendment,  Inaert  the  following: 
'ovraacAS  parvATS  imvcstmek-t  coaposATiON 
"The  Overseas  Private  Investment  Corpo- 
r.»tion  13  authorized  to  make  such  expendi- 
tures within  the  UmlU  of  funds  avaUable  to 
!t  and  In  accordance  with  law  (including 
not  y  exceed  »10.000  for  entertainment  sl- 
lowartces),  and  to  make  nich  contracts  and 
commitments  without  regard  to  fiscal  year 
I'rr.ttatlons  as  provided  by  section  104  of  the 
Gowrnment  Corporation  Control  Act.  as 
am*«iJed  (31  VSC  849).  as  may  be  neces- 
sary Ih  carrying  out  the  program  set  forth 
in  the  budget  for  the  current  flsc?.!  yenr. 

"Overseas  Private  Investment  Corporation. 
reserves:  Per  experi^es  author'.zed  by  sec*ton 
235ffi.  $25  OCO.COO.  to  remain  av<i!i(>ble  until 
expended  •;  and  the  Senate  acree  to  the 
5an-.e 

Amendment  numbered  31:  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  31.  and  agree 
to  the  san?e  with  an  amendment,  as  io\\o->rs- 
In  Ueu  of  the  sum  proposed  by  said  amend- 
ment in.vrt  "IIO.OOO.OOO":  and  the  Senate 
ft:Tree  to  the  same. 

Amendment  numbered  41 :  That  the  House 
recede  from  Its  disagreement  to  the  amend- 
ment of  the  Senate  numbered  41.  and  agree 
to  the  same  with  an  amendment,  as  follows: 
In  Ueu  of  the  sum  propoaed  by  said  amend- 


Decemher  19,  197S 


ment    Insert   "•50,000,000";    and   the   Senate 
agree  to  the  same. 

The  committee  of  conference  report  in 
disagreement  amendmenu  numbered  16  36 
37.  38.  44.  48.  61.  63.  and  64. 

Orro  B.  Passman, 
John  J.  Roonxt, 
CLAaw«c«  D.  LONO. 

SoWAaO  R.   ROTBAL, 

SmNKT  R.  Yatks, 
Bru.  CUAPPKLx, 
John  J.  McPaix, 
Osoacx  Mahon, 
Oasnxr  E.  SHsivn. 

SiLVTO  O.  COKT¥, 
IaAWBZNCX   CotJOHUN, 

E.  A.  CzitKBBxao, 
Managert  on  the  Part  o/  the  House. 
Danikl  K.  Inouts, 
William  PaoxMnis, 
Oali  McOtz, 
Lawton  Chilis, 
Mask  O.  Hattiild, 
CHAai.KS  McC    Mathias,  Jr., 
Clutord   p.    Case 
(except  as  to  amendments 
44.  46  and  47), 
Managers  on  the  Part  of  the  Senate. 
Joint  Explanatdbt  Statkmxnt  of  th« 

CoMMrrrsB  or  CoNFEasNcr 
The  managers  on  the  part  of  the   Housa 
and  the  Senate  at  the  conference  on  the  dis- 
agreeing   votes   of    the    two    Houses   on    tha 
amendmenu  of  the  Senate  to  the  bill  (H.R. 
11771)    making    appropriations    for    Foreign 
AsslsUnce  and  related  programs  for  the  fiscal 
year   ending   June   30.    1974.   and    for   other 
purposes,  submit  the  following  Joint  state- 
ment  to  the   House  and  the  Senate   in  ex- 
planation of  the  effect  of  the  action  agreed 
upon  by  the  managers  and  recommended  In 
the  accompanying  conference  report: 
TITLE   I— POREION  ASSISTANCE  ACT 
ACTIVITIES 

rTTNDS  APPtOPUATTD  TO  THX  ntESIUrKT 

Economic  Aisiatance 
Amendment  No  1:  Pood  and  nutrition. 
Development  Assistance:  Appropriates  •284  - 
OOO.OOO  instead  of  •277.000,000  as  propos^ 
by  the  Hoiise  and  «29 1.000,000  as  proposed  bv 
the  Senate. 

Amendment  No.  2:  Deletes  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  no  granu  made  avaUable  to  carry 
out  the  purposes  of  this  paragraph  should 
have  been  used  to  InltUte  any  project  or 
activity  which  had  not  been  Justified  to  tha 
Congress 

Amendment  No.  3:  Population  planning 
and  health.  Development  Assistance:  Appro- 
priates H35.0OO.000  Instead  of  •125.000.000 
as  proposed  by  the  House  and  •MS  000  000  as 
proposed  by  the  Senate 

Amendment  No  4:  Deletes  language  pro- 
poned by  the  Hotise  which  would  have  pro- 
vided that  no  granu  made  available  to  carry 
out  the  purposes  of  this  paragraph  should 
have  been  used  to  Initiate  any  project  or 
activity,  except  those  under  title  X.  which 
had  not  been  justified  to  the  Congress. 

Amendment  No  5:  Restores  language  pro- 
posed by  the  Hou^e  amended  to  place  a 
•  113.500.000  cening  on  the  funds  for  popula- 
tion proj^-ams  for  the  current  fiscal  'ear  in- 
stead of  •100.000,000  as  proposed  bv  th*" 
House.  The  managers  agree  that  thus  pro- 
vision elunlnates  any  requirement  to  re- 
'trlct  the  use  of  any  other  fu::di  thL-;  fl?cal 
year  or  to  carry  over  unprogrammed  funds 
from  one  fl?".^  year  into  the  next  for  the 
purpose  of  funduig  the  population  program 
m  compliance  with  certain  exttlnc  legis- 
lation. •  ^       B 

Amendment  Ko  6:  Education  and  human 
resources  development.  Development  Assist- 
ance: Appropriates  •80.000.000  Instead  of 
•88.000.000  as  proposed  by  the  House  and 
S90.000.000  as  proposed  by  the  Senate 


December  19,  1973 


CONGRESSIONAL  RIXORD  —  HOrSF 


Amendment  No.  7:  Deletes  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  no  granu  made  avaUable  to  carry 
out  the  purposes  of  this  paragraph  should 
have  been  used  to  Initiate  any  project  or 
activity  which  had  not  been  JustLfled  to  tha 
Congress. 

Amendment  No.  8:  Selected  development 
problems.  Development  Assistance  Appro- 
priates •40,500,000  Uistead  of  •52.000,000  as 
proposed  by  the  House  ajid  $29,000,000  as 
proposed  by  the  Senate. 

Anoendment  No  9:  Delete.s  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  no  grants  made  avaUable  to  carry 
out  the  purposes  of  this  paragraph  should 
have  been  used  to  initiate  any  project  or  ac- 
tivity which  had  not  been  Justified  to  the 
Congress. 

Amendment  No.  10:  Selected  countries 
and  organizations.  Development  Assistance- 
Appropriates  jae.SOO.OOO  Instead  of  •38.000.- 
000  as  proposed  by  the  House  and  836  000  000 
as  proposed  by  the  Senate. 

Amendment  No.  1 1 :  Deletes  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  no  granu  made  available  to  carry 
out  the  purposes  of  this  paragraph  ehould 
have  been  used  to  Initiate  any  project  or  ac- 
tivity which  had  not  been  JusUfled  to  the 
Congress. 

Amendment  No  12:  Limitation  on  granu 
Development  Assistance:  Places  a  lUnlUtlon 
Oil  granu  of  •300.000.000  as  proposed  by  the 
House  instead  of  •340.000,000  as  proposed 
by  the  Senate. 

Amendment  No.  13:  International  organi- 
zations and  programs:  Appropriates  •125- 
000.000  Instead  of  $105,000,000  as  proposed 
by  the  House  and  •127,822.000  as  proposed  bv 
The  Senate. 

Amendment  No.  14:  Earmarks  •15,000  000 
for  the  United  Nations  ChUdren's  Fund  as 
pr.jpcsed  by  the  House  Instead  of  $18,000  000 
as  proposed  by  the  Senate. 

Amendment  No.  15:  Reported  \n  technical 
disagreement.  The  managers  on  the  part  of 
the  House  wUl  offer  a  motion  to  recede  and 
concur  In  the  amendment  of  the  Senate  with 
an  amendment  as  follows  In  Ueu  of  the  mat- 
ter proposed  by  the  Senate,  Inaert  the  foUow- 
*g: 

"and  of  which  •14.300.000  shall  be  avail- 
able only  for  the  United  Nations  Relief  and 
Works  Agency" 

The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate 
The  Managers  wish  to  make  It  perfectly 
clear  that  the  reduction  of  this  Item  In  no 
w.y  reflecu  a  lack  of  support  of  the  United 
Nations  Relief  and  Works  Agency  by  the  con- 
ference committee.  The  amount  earmarked 
In  the  Act  Is  •14.300.000  which  Is  the  budget 
request  for  thU  Agency  and  unless  this  ear- 
marking was  reduced  to  the  budget  reque«;t 
from  •se.SOO.OOO  proposed  by  the  Senate 
serious  reductions  would  have  to  have  been 
made  In  the  other  United  Nations'  programs 
covered  under  this  paragraph. 

The  Managers  acknowledge  the  United  Na- 
tions Relief  and  Works  Awncy's  current  def- 
icit which  was  brought  about  because  of  Ui- 
creasad  operating  cosu,  dollar  devaluation 
and  especially  recent  hosttutles  in  the  area 
Although  the  United  States  contribution 
amnunu  to  almost  50  percent  of  UNRWA's 
entire  resource  budget,  the  Managers  agree 
that  the  respective  committees  will  give  most 
careful  and  sympathetic  consideration  to 
any  future  budget  requesu  that  may  be 
made  to  adequately  provide  for  this  most  de- 
serving and  strongly  supported  program. 

It  should  be  noted  that  an  additional  ^2  - 
000.000  Is  m-ide  available  through  a  separate 
appropriation  for  the  vocational  training  of 
Arab  refugees. 

Amendment  No.  18:  Deletes  language  pro- 
posed by  the  House  which  would  have  pro- 
vided   that    no    part    of    the    appropriation 


42.S47 


shoiUd  have  been  used  to  initiate  any  project 
or  activity  which  had  not  been  Justified  to 
the  Congress. 

Amendment  No.  17:  Deletes  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  none  of  the  funds  appropriated 
or  made  available  pursuant  to  this  Act 
should  have  been  used  to  supplement  the 
funds  provided  to  the  United  Nations  De- 
velopment Program  In  fiscal  year  1973 

Amendment  No.  18:  United  Nations  En- 
vironment Fund:  Appropriates  $7,500,000  in- 
stead of  »5.000  000  as  proposed  by  the  House 
and  •10.000.000  as  proposed  by  the  Senate 

Amendment  No.  19:  American  schools  and 
hospitals  abroad:  Appropriates  •19,000.000  as 
proposed  by  the  House  instead  of  •lO.OOOXXK) 
as  proposed  by  the  Senate. 

Amendment  No.  20:  Deletes  language  pro- 
posed by  the  Senate  which  would  have  pro- 
vided that  the  amount  appropriated  under 
this  paragraph  should  not  have  been  used  to 
furnish  assistance  to  more  than  four  tnstltu- 
tlo.ns  la  the  same  country. 

The  managers  agree  that  only  proJecU 
which  have  been  prevlouslv  approved  or  are 
now  on-going  projects  should  be  funded  from 
this  account.  The  managers  also  agree  that 
not  more  than  six  new  proJecu  which  have 
been  previously  approved  should  be  started 
duruig  this  fiscal  year  and  not  more  than 
two  of  these  new  staru  should  be  located  in 
any  one  country. 

Amendment  No.  21:  National  Association 
of  the  Partners  of  the  Amertcas.  Inc  ■  Appro- 
priates •750.000  instead  of  »934,000  as  pro- 
posed by  the  Senate. 

In  agreeing  upon  the  separate  8750  000  ap- 
propriation for  the  Partners  of  the  Americas 
the  managers  on  the  part  of  the  Senate  and 
the  House  of  Representatives  concur  that 
thU  program  should,  as  was  originally  agreed 
be  funded  solely  from  non -government 
sources  after  fiscal  year  1976. 

Amendment  No.  22:  Albert  Schweitzer 
Hospital:  ApproprUtes  $1,000,000  as  proposed 
by  the  Senate. 

Amendment    No.    23:    Contingency    fund 
Appropriates  •15,000.000  instead  of  »30  000  - 
000  as  proposed  by  the  House  and  restores 
the  appropriation  language.  The  Senate  de- 
leted this  Item. 

The  managers  agree  that  the  contingency 
fund  should  be  used  to  provide  assistance 
primarily  for  disaster  relief  purposes  as  in- 
dicated in  the  authorizing  legislation  The 
managers  believe  funds  have  been  too  liber- 
ally allocated  from  this  fund  and  should  be 
better  controlled. 

Amendment  No.  24:  Administrative  ex- 
penses: Appropriates  •40.000.000  Instead  of 
845.000.000  as  proposed  by  the  House  and 
•24.000,000  as  proposed  by  the  Senate 

In  approving  $40,000,000  for  AID  Admin- 
istrative Expenses,  the  managers  on  behalf 
of  the  Senate  and  House  are  agreed  that 
there  shall  be  no  transfers  from  any  other 
AID  account  to  fund  activities,  programs 
proJecu  or  other  operations  heretofore  fund- 
ed from  the  Administrative  Expenses  ap- 
propriation or  any  transfer  of  activities,  pro- 
grams. proJecu.  personnel  or  other  opera- 
tions heretofore  funded  from  tJ^e  AdmUils- 
tratlve  Expenses  appropriation  to  funding 
from  any  other  account. 

Amendment  No.  25:  Administrative  and 
other  expenses:  Appropriates  ^4.800.000  as 
proposed  by  the  Senate  Instead  of  $5,432,000 
as  proposed  by  the  House. 

miUary  Assistance 
Amendment  No.  26 :  Appropriates  ^450  000  - 
000  instead  of  •500,000.000  as  proposed  by  the 
House   and   $300,000,000   as  proposed   bv   the 
Senate. 

Indochina  Postwar  Reconstruction  Assistance 
Amendment  No.  27:  Appropriates  $450,000  - 
000  instead  of  $500,000,000  as  proposed  by  the 
House  and  $400,000,000  as  proposed  by  tha 
Senate. 


Security   Supporting   Assistance 
Amendment    No.    28:    Appropriates    •112- 
600.000  inataad  of  •125,000.000   as  propoMd 
by  the  House  and  •100.000.000  as  proposed 
by  the  Senate. 

Amendment  No.  29:  Delatae  language  pro- 
posed by  the  House  which  would  have  pro- 
vided that  no  part  of  the  appropriation 
should  have  been  used  to  initiate  any  project 
or  activity  which  had  not  been  justified  to 
the  Congress. 

Overseas  Private  Investment  Corporation 
Amendment    No.    30:    Approprlatas    •25- 
000.000  Uistead  of  $50,000,000  as  proposed  by 
the  House  and  restores  the  appropriation  lan- 
guage. The  Senate  denied  thU  Item. 
Inter- American  Foundation 
Amendment  No.  31 :  Places  a  limitation  on 
obligations  of  $10,000,000  Uistead  of  $7  500  - 
000  as  proposed  by  the  House  and  $12  500- 
000  as  proposed  by  the  Senate. 

CENXKAL    PROVISIONS 

Amendment  No.  32 — Section  108:  Deletes 
the  word  "amendment"  and  substitutes  the 
word  "section"  as  proposed  by  the  Senate 

Amendment  No.  33— -Section  ill:  Dele'^s 
language  proposed  by  the  House  which 
would  have  provided  that  no  part  of  any  ap- 
propriations contained  in  this  Act  would 
have  been  used  to  provide  assistance  to 
Ecuador  unless  the  President  determUied 
that  the  furnish  Uig  of  such  assistance  was 
important  to  the  national  Interest  of  the 
United  States. 

Amendment  No.  34 — Section  112:  Deletes 
language  proposed  by  the  House  which  would 
have  provided  that  the  funds  appropriated  or 
made  avaUable  pursuant  to  this  Act  should 
have  been  avaUable  notwithstanding  the  pro- 
visior,3  of  section  10  of  Public  Law  91-672 
and  notwithstanding  the  provisions  of  sec- 
tion 655(ci  of  the  Foreign  .Assistance  Act  at 
19S1.  as  amended. 

Amendmeiit  No.  35 — Section  111:  Con- 
forms section  number. 

Amendment  No.  36 — Section  112:  Reported 
in  technical  disagreement.  The  managers  on 
the  part  of  the  House  wUl  offer  a  motion  to 
recede  and  concur  In  the  Senate  amend- 
n-.er.t  which  is  as  foUows: 

"Sec.  112.  None  of  the  funds  appropriated 
or  made  avaUable  pursuant  to  this  Act.  and 
no  local  currencies  generated  as  a  result  of 
assistance  furnished  under  this  Act,  may  be 
used  for  the  support  of  police,  or  prison  con- 
str!:ctlon  and  administration  within  South 
Vietnam,  for  tral;iing.  including  computer 
training,  of  South  Vietnamese  with  respect 
to  police,  criminal,  or  prison  matters,  or  for 
computers,  or  computer  paru  for  use  for 
South  Vietnam  with  respect  to  police,  crim- 
inal, or  prison  matters." 

Amendment  No.  37— Section  113:  Reported 
lu  technical  disagreement.  The  managers  on 
the  part  of  the  House  wlil  offer  a  motion 
to  recede  and  concur  in  the  Senate  amend- 
ment which  is  as  fo'.lcws: 

"Sec  113  It  Is  the  sense  of  the  Congress 
that  excess  foreign  currencies  on  deposit 
»Uh  the  United  States  Treasury,  having 
been  acquired  without  the  payment  of  dol- 
lars, should  be  used  to  underuTlte  local  costi 
of  United  States  foreign  assutance  programs 
to  the  extent  to  which  they  are  avaUable. 
Therefore,  none  of  the  funis  appropriated 
by  this  title  shall  be  used  to  acquire.  dlrecUv 
or  indirectly,  currencies  or  crediu  of  a  for- 
eign cotmtry  from  non-United  States  Treas- 
ury sources  when  there  U  en  deposit  in 
the  United  States  Treasurj-  eictss  curren- 
cies of  that  country  having  been  acquired 
without  payment  of  dollars  ■ 

Amendment  No.  33:  Repor.ed  in  technlral 
disagreement.  The  manager.-  en  the  part  of 
the  House  will  offer  a  motion  to  recede  and 
concur  In  the  amendment  of  the  Senate 
with  an  amendment  as  follows 

In  Ueu  of  the  matter  proposed  by  the 
Senate  Insert  the  foKowlng. 


42548 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


Sac.  tl4.  Non«  of  the  tunAs  made  ftviUUble 
under  thla  Act  for  "Pood  and  Nutiitlon.  De- 
Telopment  Assistance."  "Population  Plan- 
ning and  Health.  Development  Aaalstance. ' 
"Education  and  Human  Resources  Develop- 
ment. Development  Aasistanc«."  "Selected 
Development  Problems.  Development  Asaiat- 
ance.  •  'Selected  CovinTles  and  Organiza- 
tions. Development  Assistance."  "Interna- 
tional Organizations  and  Programs."  "Amer- 
ican Schools  and  Hospitals  Abroad."  "Inter- 
national Narcotics  Control,"  "Indochina 
postwar  reconstruction  assistance."  "Secu- 
rity supporting  assistance."  "Military  assist- 
ance." or  "Migration  and  refugee  aaalstance  " 
shall  be  available  for  obligation  for  activi- 
ties, programs,  projects,  countries,  or  other 
operations  unless  the  Committees  on  Appro- 
priations of  the  Senate  and  House  of  Repre- 
•enUtives  are  previously  notified  five  days 
In  advance. 

The  managers  on  the  part  of  the  Senate 
will   move   to  concur  In   the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 
Tmj!   m— PORKIGW   ASSISTANCi: 
(OTHER) 
DWPiuiTittirr   or   statt 
Migration  and  Re'ugte  Assistance 
Amendment  No.  39:  Appropriates  S9.S04. 000 
as   proposed   by   the   Senate    Instead  of  •»,- 
100.000  as  proposed  by  the  House. 
Assistance  to  Refugees  From  the  Soviet  Union 

Amendment  No  40:  Retains  the  House  lan- 
guage. 

Funis  Appropriated  to  the  President 

International  Financial  Institutions 

Investment  in  Asian  Development  Bank 

Amendment  No   41:  Appropriates  $50,000.- 

000  Instead  of  S25.0OO.0OO  as  proposed  by  the 

House  and  1 100.000.000  as  proposed   by  the 

Senate. 

The  conference  managers  are  aware  that 
the  Administration  s  $100  million  request  for 
the  Asian  Bank  Is  part  of  a  broader  program 
to  replenish  the  Bank's  soft  loan  resources, 
for  which  additional  authorizing  legislation 
i»  being  sought  In  reducing  the  request  fig- 
ure to  $50  million,  the  conference  managers 
xmderstand  that  such  a  step  would  not  be 
detrimental  to  the  broader  program  designed 
to  obtain  substantUl  additional  contribu- 
tions from  other  nations,  provided  those 
other  nations  can  feel  reasonably  sure  the 
remaining  $5C  million  will  be  forthcoming 
The  conference  managers  wish  to  note  In  this 
regard  that  they  have  no  Intention  of  deny- 
ing a  fiscal  year  1975  request  for  the  balance 
of  $50  million  when  presented  by  the  Admin- 
istration. The  conference  managers  support 
the  favorable  burden-?harlng  arrangements 
embodied  in  the  proposM  of  which  this  $100 
million  Is  a  part. 

Investment  in  Inter-American  Development 
Bank 

Amendments  Nos  42  and  43  Delete  ear- 
marking lanttuige  proposed  by  the  Senate 
which  would  have  allocated  the  funds  to  the 
three  accounts  of  the  Bank  In  the  Act. 

The  managers  agree  that  the  funds  appro- 
priated under  this  paragraph  should  be  al- 
located as  follows  $25,000,000  for  paid-in 
ordinary  caplUl.  $18i.380.000  for  callable  or- 
dinary capital  and  $225,000,000  for  the  Fund 
for  Special  OtseraUons 

It  Is  the  desire  of  the  managers  that  the 
Committees  be  informed  at  ail  times  of 
changes  in  US  poUcy  toward  the  V3.  fund- 
ing of  international  financial  institutions. 
While  It  re-ognlzea  that  projected  funding 
levels  are  often  reached  only  after  negotia- 
tions with  other  memt)er  nations,  it  should 
now  be  clearly  understood  that  the  Congress 
is  not  crmmltted  to  any  given  funding  level 
until  that  figure  Is  actually  appropriated.  It 
Is  the  responsibility  of  the  appropriate  of- 
ficials of  the  Department  of  the  Treasury 
to  keep  the  respective  Committees  jn  Appro- 
priations of  the  Senate  and  Hou.se  fully  ap- 


praised a*  to  the  current  and  the  projected 
future  United  SUtcs  policy  toward  each  in- 
ternational financial  irvstltutlon.  In  addi- 
tion, target  funding  levels  of  each  Institution 
ahould  be  flnallMd  only  after  full  consulta- 
tion with  the  Committees. 

TITLE  IV-  EMiatOKNCT  SECURITY  AS- 
SISTANCE AND  DISASTER  RELIEF  AS- 
SISTANCE 

Emergency  Security  Assistance  for  Israel 
Amendment  No.  44:  Reported  In  technical 
disagreement  The  manager*  on  the  part  of 
the  House  will  offer  a  motion  to  recede  and 
concur  In  the  Senate  amendment  which 
makes  the  av>uiablllty  of  funds  contingent 
upon  the  enactment  of  authorizing  legisla- 
tion. 

Amendment  No  48  Places  a  limitation  on 
grants  of  $1,500,000,000  as  proposed  by  the 
Senate  liutead  of  $1000.000.000  as  proposed 
by  the  House 

Emergency  Military  Assistanct  for  Cambodia 
Amendment    No.    48:    Appropriates    $150.- 
000.000  as  proposed  by  the  House  instead  of 
$100000.000  as  proposed  by  the  Senate. 

Amendment  No  47:  Deletes  language  pro- 
[>csed  by  the  Senate  which  would  have  pro- 
vided that  the  President  should  not  exercise 
his  special  authority  during  fiscal  year  1974 
under  section  506  of  the  Foreign  .Assistance 

acf  19«1 
mendment  No.  48  Reported  In  technical 
igreement  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  recede  and 
concur  In  the  amendment  of  the  Senate 
^hlch  would  make  the  avaUabUlty  of  funds 
contingent  upon  the  enactment  of  authoriz- 
ing legislation 

Disaster  Relief  Asiistince 
Amendment    No     49;    Aporoprlates    $150.- 
000.000  as  proposed  by  the  Senate  Instead  of 
$100  000  000  as  proposed  by  the  House 

Amendment  No  60:  Delates  earmarking 
language  proposed  by  the  Senate  which 
would  have  allocated  the  funds  to  the  three 
reglona  covered  under  this  Item  in  the  Act. 
The  managers  recommend  the  following  al- 
location: $85.000  000  for  Pakistan.  $50,000,000 
for  the  Sahel  region  of  Africa  and  $15  000.000 
for  Nicaragua. 

Amendment  No.  51:  Reported  In  technical 
disagreement.  The  managers  on  the  part  of 
the  House  will  offer  a  motion  to  recede  and 
concur  In  the  amendment  of  the  Senate 
which  would  make  the  availability  of  funds 
contingent  upon  the  enactment  of  author- 
izing legislation. 

TITLE  VI— GENERAL  PROVISIONS 

Amendment  No.  52— Section  604:  Deletes 
language  proposed  by  the  Senate  which 
would  have  provided  that  none  of  the  funds 
made  available  under  this  Act  for  "Military 
Assistance",  "Security  Supporting  Assist- 
ance ".  and  "Foreign  Military  Credit  Sales" 
could  have  been  used  to  provide  asslsUnce 
toChUe 

Amendment  No  53 — Section  605  Reported 
In  technical  disagreement  The  managers 
on  the  part  of  the  House  will  offer  a  motion 
to  recede  and  concur  In  the  amendment  of 
the  Senate  with  an  amendment  as  follows 
In  lieu  of  the  matter  proposed  by  the  Sen- 
ate, Insert  the  following: 

Sec.  604.  None  of  the  funds  contained  In 
this  Act  shall  be  used  to  furnish  petroleum 
fuels  produced  in  the  continental  United 
States  to  Southeast  Asia  for  use  by  non- 
United  SUtes  nationals. 

The  managers  on  the  part  of  the  Senate 
will  move  to  concur  In  the  amendment  of 
the  House  to  the  amendment  of  the  Senate. 

TITLE  \ai     REGIONAL  RAIL  REORGA- 
NIZATION ACT  OP  1973 

Amendment  No.  54:  Reported  In  technical 
disagreement  The  managers  on  the  part  of 
the  H3-.:se  will  offer  a  motion  to  recede  and 
concur  In  the  amendment  of  the  Senate  with 
an  ame-'dment  which  will  provide  by  trans- 


fer $SA.OOO,000  for  Interim  operating  as- 
sistance, $3,000,000  for  Office  of  the  Secretary, 
salaries  and  expenses,  and  $8,000,000  for 
United  States  R&llway  Association,  adminis- 
trative expenses  The  manager*  on  the  part 
of  the  Senate  will  move  to  concur  in  the 
amendment  of  the  House  to  the  amendment 
of  the  Senate. 

Although  the  conferees  agree  that  It  Is  an 
undesirable  procedure  to  fund  new  programs 
without  detailed  bearings  by  both  the  House 
and  Senate  Appropriations  Committees,  It  Is 
felt  that  the  Northeast  and  Midwest  rail 
situation  Is  of  such  urgency  that  action  Is 
esasntlal  before  the  next  session  of  Congress. 
r?^-provldlng  that  the  funds  be  derived  by 
transfer.  It  Is  not  the  Intention  of  the  con- 
ferees to  reduce  any  essential  programs  of 
the  Department  If  restoration  to  thoee  ap- 
propriations from  which  funds  are  trans- 
ferred Is  required,  the  Department  ahould 
request  restoration  and  the  conferees  agree 
that  they  will  consider  such  a  request  next 
session. 

The  conferees  feel  that  the  funds  provided 
should  be  adequate  for  these  programs  \intll 
such  time  as  hearings  can  be  conducted  by 
both  the  House  and  .Senate  Appropriations 
Committee?  The  conferees  are  advised  that 
aporoxtmately  $19,000,000  of  loan  guarantee 
authority  Is  available  under  the  Emergency 
Rail  Services  Act  of  1970.  In  reducing  the 
funds  for  InUrlm  operating  assistance,  the 
conferees  suggest  that  this  currently  avail- 
able loan  guarantee  authority  be  used  prior 
to  any  new  funds  provided  In  the  accom- 
panying bill. 

Conference  total  -with  comparison 
The  total  new  budget  (obllgatlonal  au- 
thority for  the  fiscal  year  1974  recomme.nded 
by  the  committee  of  conference,  with  com- 
parisons to  the  budget  estimate  total,  and 
the  House  and  Senate  bills  follows: 

Budget  estimates $6,992,917,000 

House    bill 6.833.912.000 

Senate  bill... 6,693,440,000 

Conference   agreement 6,780,434.000 

Conference  agreement  compared  with: 

Budget  estimates -1,212,483,000 

House    bill... -63,478,0^ 

Senate  bill -H86,  994,  000 

Otto  E    Passman, 

John  J   Roontt, 

Ci^RENCE  D.  Long, 

B^WABD  R.  ROYBAL, 

StDNET  R   Yates, 
Biii  Chappell, 
John  J.  McPall. 
Oeokcb  Mahon. 

OaKNES   E     SHRfVE*, 

Silvio  O   Conte, 
Lawkencc  Couohlin, 
B.  A.  CKDEaano, 
Managers  on  the  Part  of  the  House 
Daniel  K    Inouts, 
Gale  W    McGeb, 
Lawton  Chiles, 
CRASLsa  McC.  Mathias.  Jr., 
CLirroao  P    Case 

(except     as     to     amend- 
ments 46  and  47), 
Managers  on  the  Part  of  the  Senate. 


PERMISSION  TO  CONSIDER  CON- 
FERENCE REPORT  ON  FOREIGN 
ASSISTANCE  ACT  APPROPRIA- 
TIONS 

Mr.  MAHON.  Mr.  Speaker.  I  ask 
unanimous  consent  that  It  may  be  In 
order  on  tomorrow  or  any  day  there- 
after to  consider  the  conference  report 
on  HR.  11771.  a  bill  making  appropria- 
tions for  foreign  assistance  and  related 
programs  for  the  flsctil  year  ending 
June  30.  1974,  and  for  other  purposes. 


December  19,  1973 


CONGRF<^^TnN  AT    RFCORD  -    HOUSE 


42549 


The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

Mr  GROSS  Mr.  Speaker,  reserving 
the  nght  to  object,  will  we  have  any  kind 
of  a  printed  copy  of  the  conference  re- 
port to  accompany  the  foreign  aid  and 
defense  bills? 

Mr.  MAHON.  On  defense  we  com- 
pleted the  conference  about  7  o'clock 
last  night.  There  were  over  100  amend- 
ments and  there  were  many  major  and 
minor  Itoms  within  some  of  the  amend- 
ments to  deal  with.  Because  of  the  com- 
plexities Involved  In  conference.  It  was 
not  possible  to  flle  the  repori  by  mid- 
night last  night.  It  will  be  filed  today, 
and  it  will  be  available  tomorrow  in  the 
Record.  The  details  of  it,  of  course,  can 
be  made  available  as  soon  as  It  Is 
checked  and  filed. 

Mr.  GROSS.  Then  the  genUeman  is 
sa.vlng  that  there  will  be  a  printed  con- 
ference report  available  tomorrow  either 
by  way  of  the  Record  or  otherwise  in 
printed  form? 

Mr.  MAHON.  Mr.  Speaker,  if  the  gen- 
tleman will  yield,  the  gentleman  from 
Iowa  is  correct.  That  would  also  apply 
to  the  foreign  assistance  bill  if  we  are 
able  to  reach  agreement  today. 

Mr.  GROSS.  Mr  Speaker.  I  thank  the 
gentleman,  and  withdraw  my  reserva- 
tion of  objection. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection. 


PROVIDING  FOR  ADDITIONAL  AS- 
SISTANT SECRETARY  OF  THE  IN- 
TERIOR FOR  INDIAN  AFFAIRS 

Mr.  HALEY  Mr.  Speaker,  I  esk  unani- 
mous consent  to  take  from  the  Speaker's 
table  the  bill  (HR.  620 >  to  establish 
within  the  Department  of  the  Interior 
an  additional  Assistant  Secretary  of  the 
Interior  for  Indian  Affairs,  and  for  other 
purposes,  with  a  Senate  amendment 
thereto,  and  disagree  to  the  Senate 
amendment. 

The  Cl^rk  read  the  title  of  the  bill. 

The  Clerk  read  the  Senate  amend- 
ment, as  follows: 

strike  out  all  after  the  enacting  clause 
and  Insert: 

That  there  shall  be  In  the  Department  of 
the  Interior,  In  addition  to  the  Assistant 
Secretaries  now  provided  for  by  law,  one  ad- 
ditional A.'sslstant  Secretary  of  the  Interior 
for  Indian  Affairs,  who  shall  be  appointed 
by  the  President  by  and  with  the  advice  and 
consent  of  the  Senate,  who  shall  be  re^on- 
slble  for  such  duties  as  the  Secretary  of  the 
Interior  shall  prescribe  with  respect  to  the 
conduct  of  Indian  Affairs,  and  who  shall  re- 
ceive compensation  at  the  rate  now  or  here- 
after prescribed  bv  law  for  Assistant  Secre- 
taries of  the  Interior. 

Sec.  2.  Section  5315  of  title  5  of  the  United 
States  Code  Is  amended  by  striking  out  "(6)  ■ 
at  the  end  of  item  (18)  and  by  inserting  In 
lieu  thereof  "(7) ". 

Sec.  3.  Section  462,  Revised  Statutes,  as 
amended  and  supplemented  (25  U.S.C,  1), 
and  paragraph  (46)  of  section  6316  of  tlOe  5 
of  the  United  States  Code,  are  repealed; 
Prodded.  That  thla  section  shall  not  take 
effect  until  an  Assistant  Secretary  of  the 
Interior  for  Indian  Affairs  has  been  confirmed 
and  takes  the  oath  of  office. 

Sec,  4.  Subsection  7(c)  of  the  Alaska  Native 


Claims  Seltlement  Act  (86  Stat.  688)  la 
hereby  amended  by  deleting  that  subsection 
In  Its  entirety  and  inserting  in  lieu  thereof 
a  new  subsection  as  follows: 

"(c)  The  Secretary  shall  establish  a  thir- 
teenth region  for  the  benefit  of  Natives  who 
are  nonresidents  of  Alaska  who  elected  to 
be  enrolled  therein,  and  they  may  establish 
a  regional  corporation  pursuant  to  this  Act." 
Sec.  6  The  Alaska  Native  Claims  Settle- 
ment Act  (86  SUt.  688)  Is  hereby  further 
amended  by  inserting  at  the  end  thereof  a 
new  section  38  as  follows : 

"Sec.  2.  (a)  A  Native  who  elected  to  be  en- 
rolled In  a  thirteenth  region,  pursuant  to 
subsection  5(c)  shaU  be  so  enrolled,  not- 
withstanding the  fact  that  a  majority  of  the 
Natives  eligible  to  elect  enrollment  In  that 
region  may  not  have  so  elected. 

"(b)  Notwithstanding  any  provision  of 
subsection  5(a)  to  the  contrary,  the  Secre- 
tary shall,  on  or  before  December  31,  1973,  or 
pursuant  to  subsection  (f)  of  this  section.  If 
applicable,  certify  a  temporary  roll  of  all 
Natives  eligible  for  benefits  under  this  Act, 
which  temporary  roll  shall  be  used  as  a 
basis  for  Initial  distribution  of  funds  pur- 
suant to  subsection  6(c).  Such  Initial  dis- 
tribution shall  be  made  Immediately  upon 
certification  of  the  temporary  roll,  anything 
to  the  contrary  In  subsection  6(c)  or  any 
other  provision  of  this  Act  notwithstanding. 
When  the  final  roll  Is  certified,  the  Secretary 
shall  take  such  steps  as  may  be  necessary 
to  make  appropriate  adjustments  In  the  dis- 
tribution of  funds  pursuant  to  this  Act.  The 
final  roll  shall  Incorporate  changes  In  en- 
rollment pursuant  to  this  subsection  as  w°Il 
as  other  changes  made  bv  the  Secretary  In 
accordance  with  this  Act 

"Any  Native  who,  on  or  before  December  1, 
1973,  had  filed  with  the  Secretary  or  his  dele- 
gate any  application  to  amend  his  enroll- 
ment application  regarding  his  e'ectlon 
whether  or  not  to  be  enrolled  In  the  thir- 
teenth region  shall,  within  not  less  than 
sixty  nor  more  than  ninety  days  of  the  en- 
actment of  this  section.  Inform  the  Secretary 
n-hether  or  not  he  wishes  to  be  enrolled  In 
the  thirteenth  region.  Any  Native  who  so 
Informs  the  Secretary  shall  be  enrolled  ac- 
cording to  his  preference  as  Indicated  In  the 
Information  so  submitted  to  the  Secretary 
Any  Native  who  falLs  so  to  Inform  the  Sec- 
retary shall  be  enrolled  according  to  the 
Information  provided  In  that  Native's  orig- 
inal enrollment  application.  The  Secretary 
shall  ta>-e  such  action  as  he  mav  deem  nec- 
essary to  insure  that  every  Native  affected  by 
this  section  Is  aware  of  his  oration  to  change 
his  enrollment  decision.  Within  one  hun- 
dred and  twenty  days  of  the  enactment  of 
this  section  the  Secretary  shall  prepare  and 
certify  a  final  roll  which  when  certified  shall 
supersede  the  temporary  roll  authorized  by 
this  subsection. 

"(c)  Within  thirty  days  of  the  certifica- 
tion of  the  final  roll  pursuant  to  this  sec- 
tion, any  bona  fide  organization  representing 
nonresident  Natives  shall  submit  to  the  Sec- 
retary the  names  of  not  more  than  five  Na- 
tives who  have  elected  to  be  enrolled  in  the 
thirteenth  region  as  nominees  for  the  posi- 
tions of  the  five  1:^ corporators  of  the  thir- 
teenth regional  corporation.  Not  less  than 
thirty  days  nor  more  than  sixty  days  after 
.<i;ich  certification,  the  Secretary  shall  mall  to 
all  eligible  voters  ballots  containing  the 
names  of  all  nominees  and  their  assoclatlonal 
affiliations  for  the  purposes  of  an  election  by 
maU  of  the  five  Incorporators  who  shall  serve 
as  the  Initial  directors  of  the  thirteenth  re- 
gional corporation.  Eligible  voters  In  the  elec- 
tion shall  be  only  Natives  eighteen  vears  of 
age  or  older  on  the  date  of  election  of  Incor- 
porators pursuant  to  this  subsection  who  are 
enrolled  In  the  thirteenth  region.  Valid 
ballots  shall  be  only  those  ballots  mailed  to 
the  Secretary  or  his  designee  not  later  than 
ninety  days  after  such  certification.  The  five 
nominees  for  whom  the  most  votes  are  cast 


shall  be  elected  Incorporators  of  the 
thirteenth  regional  corporation  and  shall 
promptly  take  all  steps  authorized  by  thU 
Act  for  such  Incorporators.  All  rules,  regu- 
lations, and  Information  relating  to  the 
election  shall  be  transmitted  directly  to  all 
known  organizations  representing  nonresi- 
dent Natives,  the  twelve  regional  corpora- 
tions representing  resident  Natives,  and  all 
eligible  voters. 

"No  moneys  dlstrlbut»d  or  to  be  distributed 
pursuant  to  this  Act  may  be  expended  or 
obligated  by  any  Native,  Native  corporation. 
Native  organization,  representative  thereof! 
or  adviser  thereto,  to  assist  in,  communi- 
cate on,  or  otherwise  Influence  the  election, 
"(d)  The  articles  of  Incorporation  of  the 
thirteenth  regional  corporation  shall  be  sub- 
mitted to  the  Secretary  for  approval  In  ac- 
cordance with  subsection  7(c)  within 
eighteen  months  of  the  enactment  of  thla 
section. 

"(e)  Except  as  specifically  provided  herein, 
nothing  In  this  section  shall  be  construed  to 
alter  or  amend  any  of  the  provisions  of  this 
Act. 

"(f)  In  the  event  the  Secretary,  prior  to 
the  enactment  of  this  section,  has  certified 
a  roll  pursuant  to  subsection  5(a)  of  this 
Act,  such  certification  shall  be  rescinded 
and  a  new  temporary  roll  certified  within 
ten  days  of  the  enactment  of  this  section. 
Any  distribution  of  funds  pursuant  to  sub- 
section 6(c)  of  this  Act  made  by  the  Secre- 
tary or  his  delegate  on  the  basis  of  the 
rescinded  roll  shall  not  be  affected  by  this 
subsection. 

"The  Secretary  shall  make  any  necessary 
adjustments  In  future  distributions  of  funds 
pursuant  to  subsection  6(c)  to  accommodate 
changes  In  the  temporary  roll  reflected  In 
the  final  roll  in  order  to  l-:.sure  a  final  dis- 
tribution of  such  funds  In  accordance  with 
the  final  roll.  The  Secretary  is  authorized  to 
make  payment;  from  the  .Alaska  Native  Fund 
to  the  thirteenth  regional  corporation,  once 
established,  during  the  period  prior  to  the 
next  reeularly  scheduled  distribution  from 
the  fund  pursuant  to  this  Act,  Such  pay- 
ments shall  be  in  the  form  of  advances  on 
such  corporation's  adjusted  share  of  such 
regularly  scheduled  distribution  ■ 

Sec.  6.  The  Alaska  Native  Claims  Settle- 
ment Act  (85  Stat.  688)  Is  further  amended 
by  adding  a  new  section  29  to  read  as  fol- 
lows: 

"Sec.  29.  Any  corporation  organized  pur- 
suant to  this  Act  shall  through  December 
31,  1976.  be  exempt  from  the  provisions  of 
the  Investment  Company  Act  of  1940  (54 
Stat.  789),  as  amendeil  Nothing  In  this  sec- 
tion shall,  however,  be  construed  to  mean 
that  any  such  corporation  shall  or  shall  not 
after  such  date  be  subject  to  the  provisions 
of  the  Investment  Company  Act  of  1940  " 

The  SPEAKER.  Is  there  objecUon  to 
the  request  of  the  gentleman  from 
Florida? 

There  was  no  objection. 

The  Senate  amendment  was  disagreed 
to. 

A  motion  to  reconsider  was  laid  on 
the  table. 


CONFEREES  ADOPT  VIEVVPOINT 
OF  SENATE  IN  EMERGENCY 
ENERGY     BILL 

•Mr.  ECKHARDT  asked  and  was 
given  permission  to  address  the  House 
for  1  minute,  and  to  revise  and  extend 
his  remarks.) 

Mr.  ECKHARDT.  Mr.  Speaker.  It  Is 
my  understanding  that  the  House  con- 
ferees on  the  emergency  energv  bill  have 
completely  surrendered  to  the  Senate 
viewpoint. 


42550 


CONGRESSIONAL  RECORD  — HOUSE 


The  main  difference  between  the 
House  and  Senate  versions  is  that  the 
Senate  version  would  give  the  President 
or  more  precisely  hu  appointee,  author- 
ity to  make  plans  which  would  liave  the 
effect  of  law.  the  violation  of  which 
would  constitute  criminal  offenses, 
whereas  the  House  would  not  permit 
such  plans  to  go  into  effect  except  by  the 
ordinary  processes  of  le<?lslation  by  Con- 
gress. 

Under  the  so-called  compromise,  the 
conferees  would  go  further  than  the 
Senate  in  delegating  to  the  Executive, 
authority  to  legislate.  Originally  the  Sen- 
ate version  would  have  required  the  plan 
to  remain  m  the  h'snds  of  Congress  for 
15  davs.  after  which,  if  Congress  did  not 
act,  the  plan  would  become  law.  Under 
the  conference  proposal,  until  March  1. 
1974,  the  plans  promulgated  by  the  Ad- 
ministrator have  immediate  effect.  This 
is  not  a  legislative  voto — it  is  legislative 
authority  absolutely  vested  in  the  Exec- 
utive with  the  power  reserved  in  each 
House  ultimately  to  override  by  specLflc 
action. 

But.  more  fundamentally,  it  Is  the  first 
delegation  of  legislative  authority  that 
I  know  of  by  which  the  Executive  is  per- 
mitted to  legislate  in  a  field,  so  long  as 
he  finds  that  such  legislation  accom- 
plishes a  very  generally  stated  purpose. 
He  must  only  find  that  the  action  is 
"necessary  to  reduce  energy  consump- 
tion." Then,  his  action  has  immediate 
effect,  and  a  violation  of  Its  mandate  Is 
punishable  by  criminal  sanctions  with- 
out any  intervening  legislative  action 
whatsoever 

If  we  would  adopt  this  conference  re- 
port tomorrow,  we  would  reverse  1.500 
years  of  struggle  by  English-speaking 
people  to  take  legislative  power  away 
from  the  King  and  place  it  In  Parlia- 
ment. 

It  V  as  a  long  strui?8le  in  which  many 
men  bled  and  died.  At  first  the  only 
power  that  could  efTeciively  challenge 
the  King  emanated  from  the  clergy.  Men 
like  Bishop  Latimer  said  in  1555  from  the 
stake  as  the  f agpots  '.'ere  lit : 

Be  of  good  eomlort.  Master  Ridley  Play 
the  man.  We  shall  thla  day  light  such  a 
candle,  by  Ood's  grace.  In  England  as  I  trua: 
shall  never  be  put  out. 

Seventy-two  years  later  the  Parlia- 
ment forced  upon  the  King  the  rule  that 
no  tax.  loan  or  benevolence  ought  to  be 
levned  by  the  King  cr  his  Ministers  with- 
out common  consent  bv  act  of  Parlia- 
ment: ard  for  many  years  thereafter, 
for  defendm?  the  right  of  Parliament  to 
be  the  exclusive  leeiflator  of  Ihs  realm, 
many  men  suffered  torture,  forfeiture  of 
estate,  prison,  and  death 

In  the  late  18ih  centur-  the  bittle 
against  kindly  forces  was  ca—ieJ  to  these 
shores,  because  c-.Iopij'Is.  unlike  Erelish- 
men  at  home,  were  still  the  subjects  of 
royal  prerogatives,  sanctions,  and  op- 
pression. 

It_has  been  said  that  we  should  act 
now  so  that  people  wculd  not  go  cold 
this  winter,  but  we  have  alreadv  given 
the  President  authority  to  prevent  that 
by  the  Emergency  Petroleum  Allocation 
Act  which  authorizes  th>j  President  to — 
Prom  iUate  a  regulation  providing  for  the 
maru!at<-jry  aJl  nation   of  .  .  .  reOned  petro- 


leum products(B),  In  amounU  .  .  .  and  at 
prices  specified  In  .  .  .  such  regulation  (so 
that  there  will  be|  .  .  .  equitable  distribu- 
tion of  .  .  refined  petroleum  products  at 
equitable  prices  .  .  .  and  among  all 
users;   .  .  . 

Thus,  the  people  will  not  freeze,  but 
we  should  stay  here  until  hell  freezes  over 
before  we  should  turn  to  naught  1,500 
years  of  coiu-age  and  sacrifice  and  mar- 
tyrdom which  Is  the  foundation  upon 
which  the  dignity  and  authority  of  this 
Congress  stands. 


SOCIAL  SECURITY  LEGISLATION 
SHOULD  BE  PASSED  BEFORE  CON- 
GRESS ADJOURNS 

'Mr  BURKE  of  Massachusetts  asked 
and  was  given  permission  to  address  the 
House  for  1  minute,  to  revise  and  extend 
his  remarks,  and  to  include  extraneous 
matter." 

Mr  BURKE  of  Massachusetts.  Mr. 
Speaker,  I  take  this  opportimlty  to  In- 
form the  House  that  the  social  security 
legislation  passed  by  thLs  Hoase  and 
passed  by  the  Senate  is  now  lying  un- 
done. If  this  Congress  adjourns  sine  die 
this  year  and  falls  to  act  on  the  social 
security  increase.  It  is  entirely  possible 
that  this  Increase  will  not  be  able  to  be 
passed  along  to  the  elderly  until  well 
after  August,  September,  or  October  of 
next  year.  To  allow  this  thing  to  happen 
would  be  unconscionable,  in  my  opinion. 
Congress  cin  do  no  less  than  pass  this 
soci3l  security  legislation  before  we  ad- 
journ sine  die  I  hope  that  the  leaders 
on  both  slde«:  of  the  aisle  will  move,  be- 
caase  the  leadership  on  both  sides  are 
going  to  be  held  responsible  for  this  act. 
and  even-'  Member  of  Congress,  when 
they  go  back  to  their  people  next  week, 
will  be  asked  why  this  social  security  bill 
was  not  passed. 

I  hope  thrit  legislative  glmmlckrj-  Is 
not  going  to  be  the  cause  of  holding  up 
this  much-needed  social  security  In- 
crease. 


VOTING  FOR  CONFERENCE  REPORT 
ON  ENERGY  BILL  WILL  RAISE 
QUESTIONS 

I  Mr.  HAYS  asked  and  was  given  per- 
mission to  address  the  House  for  1  min- 
ute, to  rcvi.se  and  extend  his  re.Tiarks.  and 
to  Include  extraneous  matter.) 

Mr.  HAYS  Mr.  Speaker,  in  line  with 
the  remarks  of  the  gentleman  from  Texas 
Mr.  EcKHARDTi  let  me  say  that  George 
III  mu.;c  be  whirling  around  In  his  grave, 
because  the  Congress,  or  at  least  the 
conference  committee,  has  voted  In  this 
so-called  energy  bill  to  give  the  Presi- 
dent of  the  United  States  powers  that 
George  HI  tried  for  more  than  30  years 
to  get  and  could  not:  In  other  words, 
absolute  dictatorial  powers  to  make  laws, 
with  criminal  sanctions,  without  so  much 
as  by- your- leave  of  the  Congress  of  the 
United  States 

I  still  think  that  anyone  who  votes 
for  that  conference  report  will  have  a 
lot  of  q"estlons  to  answer  from  his  con- 
stituency .  In  that  regard  may  I  say  that 
I  got  a  call  this  morning  from  Clnclrmati, 
which  is  not  in  my  district,  from  a  gen- 
tleman in  whose  word  I  have  some  con- 


December  19,  1973 

fldence.  who  said  that  the  biggest  oil 
company  of  them  all  had  more  than  100 
barges  ftill  of  gasoline  tied  up  on  the 
Ohio  River,  but  that  they  were  limiting 
the  Independents  that  they  had  supplied 
for  years  to  a  pittance  of  gasoline  per 
week  In  order  to  put  the  Independent  sta- 
tions out  of  business. 

The  Members  also  might  like  to  know 
that  the  Ave  largest  oil  companies  sell 
two  barrels  of  products  outside  the 
United  States  for  every  barrel  they  sell 
in  the  United  States,  so  that  we  are  a 
minor  customer  and  what  happens  here, 
although  they  are  American-based  con- 
glomerates, does  not  get  them  too  upset. 


STATEMENT  OP  REPRESENTATIVE 
BARBER  B.  CONABLE  OP  NEW 
YORK  CONCERNING  A  SOCIAL  SE- 
CURITY INCREASE 

(Mr.  CONABLE  asked  and  was  given 
permission  to  address  the  Hoase  for  1 
minute  and  to  revise  and  extend  his  re- 
marks.) 

Mr.  CONABLE.  Mr.  Speaker.  I  want  to 
express  the  hope  that  before  we  go  home 
there  will  be  movement  toward  a  confer- 
ence on  the  social  security  Increases  for 
which  the  Members  of  this  House  have 
voted.  As  you  know,  once  again  we  are 
embroiled  with  the  other  body  over  the 
Issue  of  nongermane  amendments.  These 
nongermane  amendments  Involve  major 
efforts  at  welfare  reform,  medicare  re- 
vision and  further  changes  In  the  social 
security  system  which  have  not  been  ex- 
plored by  this  House.  While  the  other 
body  feels  these  amendments  are  worthy, 
they  constitute  for  us  a  subversion  of  the 
legislative  process  and  the  Impediment  to 
prompt  action  on  the  social  security  in- 
crease should  by  now  be  apparent  to  the 
other  body.  Already,  we  have  had  some 
slippage  In  the  timetable  within  which  It 
Is  administratively  possible  to  set  the 
benefit  Increase  Into  the  hands  of  those 
who    are    expecting    It.    Whatever    the 
merits  of  the  legislative  riders  added  by 
the  other  body,  there  can  be  little  doubt 
of  the  disappointment  and  further  con- 
gressional   loss   of   credibility    resulting 
from  avoidable  delays  beyond  April.  We 
know  real  Issues  are  involved  here,  but 
from  outside  the  Congress  this  sort  of 
maneuver  looks  like  procedural,  therefore 
insubstantial,  congressional  Indifference. 
I  support  the  House  position  as  the  easi- 
est and  most  likely  resolution  of  the  Im- 
passe, but  I  hope  all  conferees  concerned 
win  keep  In  mind  the  misimderstandlng 
and   disappointment   which   will   result 
from  our  failure  somehow  to  remove  this 
legislative  roadblock  during  the  remain- 
ing hours  of  this  sp<-M"^ 


LABOR-HEW  APPROPRIATION  BILL 
SIGNED:  IMPOUNDMENT  AN- 
NOUNCEMENT WILL  BE  MADE  TO- 
DAY 

<Mr.  MICHEL  asked  and  was  given 
permission  to  address  the  House  for  1 
minute  and  to  revise  and  extend  his  re- 
marks.) 

Mr  MICHEL  Mr.  Speaker.  I  am  happy 
to  advise  the  Members  that  the  President 
last  night  signed  the  regular  1974  fiscal 
year  Labor-HEW  appropriation  bill  Into 


December  19,  1973 


CONGRESSIONAL  RECOl^D  — HOUSE 


42551 


law.  and  In  the  true  Christmas  spirit  I 
suspect  that  later  In  the  day  there  will 
be  a  significant  announcement  with  re- 
spect to  the  $900  million  of  so-called  im- 
pounded funds  in  the  health  and  educa- 
tion fields.  It  Is  my  understanding  that 
most  If  not  all  of  these  funds  held  In  re- 
serve by  OMB  for  a  variety  of  programs 
will  be  released  and  that  will  be  good 
news  for  many 


take  SK:tion  to  prevent  very  serious  short- 
ages in  the  future.  I  urge  this  Congress 
to  take  the  necessary  steps  to  avert  a 
crisis  which  could  make  the  current 
energy  crisis  seem  small  in  comparison. 


BLAME  FOR  FAILURE  TO  PASS  SO- 
CIAL  SECURITY   BILL 

(Mr.  COLUER  asked  and  was  given 
permission  to  address  the  House  for  1 
minute  and  to  revise  and  extend  his  re- 
marks. ) 

Mr.  COLLIER.  Mr.  Speaker.  I  had  not 
intended  to  take  the  floor  but  In  the  light 
of  the  remarks  made  by  my  good  friend 
and  colleague  on  the  Ways  and  Means 
Committee  iMr.  Burke  i  with  respect  to 
the  social  security  bill  and  likewise  the 
remarks  just  made  by  my  colleague,  the 
gentleman  from  New  York  (Mr.  Con- 
able),  I  should  remind  the  House  that  we 
did  face  up  to  our  responsibility  last 
June.  Almost  unanimously  we  passed  the 
social  security  Increase  bill  and  we  sent 
it  over  to  the  other  body.  That  bill  pro- 
vided for  an  increase  effective  July  1. 

So,  Mr.  Speaker,  if  there  Is  any  blame 
to  be  laid  If  this  session  ends  without 
social  security  legislation.  It  falls  solely 
upon  the  shoulders  of  the  other  body  and 
not  the  House  of  Representatives 


SHORTAGES  OF  MATERIALS  AND 
NATUPAL  RESOURCES  IN  THE 
UNITED  STATES 

'Mr.  HILLIS  asked  and  wais  given  per- 
mission to  address  the  House  for  1 
minute  and  to  revise  and  extend  his 
remarks.) 

Mr.  HILLIS.  Mr.  Speaker,  yesterday  I 
introduced  legislation  calling  for  a  select 
committee  to  study  shortages  of  materials 
and  natural  resources  affecting  the 
United  States. 

In  recent  weeks  we  have  wltnesi^ed 
serious  shortages  In  addition  to  the  well- 
publicized  shortages  In  energy.  There 
have  been  shortages  of  aluminum,  chem- 
icals, and  fertilizers.  Fellow  Members 
have  spoken  of  shortages  in  timber, 
chlorine,  .scrap  metals,  and  other  tasir 
commodities. 

The  National  Commission  on  Materials 
Policy  has  projected  demand  on  certain 
raw  materials  over  the  next  30  years  and 
compared  It  with  U.S.  production.  The 
conclusion  of  the  Commission's  report  Is 
that: 

For  all  materials.  UJS.  requirements  are 
expected  to  exceed  domestic  production  In 
the  year  2000. 

Despite  the  Increasing  demands  for 
minerals,  there  has  been  a  general  re- 
duction In  domestic  mineral  exploration 
actlvltie.^  during  the  past  j-ear.  The  U.S. 
Geological  Survey,  softer  the  f.r:,t  overall 
asses.'inent  of  the  Nation's  mineral  re- 
sources In  18  years,  has  concluded  that 
our  known  deposits  of  mineral  raw  ma- 
terials are  seriously  depleted.  Reserves 
for  some  minerals  such  as  asbestos, 
chromium,  fluorine,  and  mercury,  are 
scant. 

Now  Is  the  time  to  Investigate  and  to 


MISHANDLING  OF  TAPES  AND 
SUBPENAED  MATERIAL 

'Mr.  LOTT  asked  and  was  given  per- 
mission to  address  the  Hou=:e  for  1  min- 
ute and  to  revise  and  extend  his 
remarks.) 

Mr.  LOTT.  Mr.  Speaker.  I  was  out- 
raged this  morning  to  learn  that  a  young 
Washington  lawyer  for  consumer  ac- 
tivist Ralph  Nader  had  played  a  portion 
of  a  subpenaed  White  House  tape  at  a 
December  17  (3eorgetown  cocktail  party. 

Lawyer  William  Djbrovir's  conduct 
can  only  be  termed  unethical  and  Irre- 
spon.-ible.  It  demeans  the  entire  legal 
process  and  abridges  the  very  processes 
such  law>'ers  have  been  shouting  about 
for  so  long. 

Certainly,  too.  I  would  urge  the  Spe- 
cial Prosecutor  and  the  House  Judiciary 
Committee,  of  which  I  am  a  member,  to 
take  special  precautions  in  dealing  with 
subpenaed  materials  and  tapes  to  see 
that  such  mlshnndllng  does  not  occur. 

As  the  Judiciary  Committee  proceeds 
v-ith  its  Investigation  of  impending  im- 
peachment resolutions,  due  process  must 
be  metlculousl}'  observed. 


CALL  OF  TliE  HOUSE 

Mr.  KEATING.  Mr.  Speaker,  I  make 
the  point  of  order  that  a  quorum  Is  not 
present. 

The  SPEAKER.  Evidently  a  quorum 
Is  not  present. 

Mr.  O'NEILL.  Mr.  Speaker,  I  move  a 
call  of  the  House. 

A  call  of  the  House  was  ordered. 

The  call  was  taken  by  electronic  de- 
vice, and  the  following  Members  failed 
to  respond: 

[Roll  No.  703 J 
Alpxinic-  Pra-ser  Bariclc 

Andrrv  n.  III.      Frellnghuysen    Reld 
Archer  Pulton  R  ncalto.  W<3. 

Arms  rjr,',-  Grimths  Rooney,  N  Y. 

Ashbrook  Qubser  Roush 

A  spin  Hanna  R\ar. 

BadUIo  Hansen.  Wash     Salterfield 

'■  '!''"k-'  Harvey  Soherle 

B  ich.man  Hubert  Si.s:-- 

Burke.  Calif.       Jarman  Taylor.  Mo. 

Burton  J.  nes.  .Ma.  Teatrue.  Tex. 

Carey.  N.Y.  Landrum  Van  Deerlin 

<"Irirk  MallllRrd  Vev^cr 

Clay  Martin  Nebr.      V!  ■•.'kY: 

Conyers  Mills.  Ark.  Wi^clr.s 

Delaner  Murphy.  NY.      Wvatt 

Dent  Pepper 

Evins.  Tenn.       PcttH 
Flowers  Powell.  Ohio 

Port.  Preyer 

William  D.       Price.  Tex 

The  SPEAKER.  On  this  rollcall  375 
Members  have  recorded  their  presence  by 
electronic  device,  a  quorum. 

By  unanimous  consent,  further  pro- 
ceedings under  the  call  were  dispensed 
with. 


PROVIDING  FOR  FEASIBILITY 
STUDY  AND  TO  ACCEPT  GIFTS 
l-'ROM  US.  CAPITOL  HISTORICAL 
SOCIETY' 

Mr.  GRAY.  Mr.  Speaker.  I  ask  tinani- 
mous  consent  to  take  from  the  Speaker  s 
desk  the  joint  resolution  iH.J.  Res.  736) 


to  provide  for  a  feasibility  study  and  to 
accept  a  gift  from  the  U.S.  Capitol  His- 
torical Society,  with  a  Senate  amend- 
ment thereto  and  concur  in  the  Senate 
amendment. 

The  Clerk  read  the  title  of  the  joint 
resolution. 

The  Clerk  read  the  Senate  amendment 
as  follows: 

strike  out  all  after  the  resolving  clause  and 
Insert: 

That,  notwithstanding  any  other  provision 
of  law,  the  United  States  Capitol  Historical 
Society  Is  authorized,  under  direction  of  the 
Architect  of  the  Capitol,  to  prepare  a  feasi- 
bility study  to  determine  the  deslrabUlty  of 
installing  within  the  United  States  Capitol 
Grounds,  at  the  east  front  of  the  United 
States  Capitol,  all  items  of  equipment  and 
other  faculties  required  for  a  sound  and  light 
performance,  consisting  of  an  Interplay  of 
light,  music,  narrative,  and  sound  effects 
(without  the  use  of  live  actors),  which  when 
projected  onto  the  imposing  facade  of  the 
east  front  of  the  United  States  Capitol.  wlU 
re-creite  the  evolution  of  American  history, 
based  on  a  foundation  of  thorough  historical 
research,  subject  to  the  following  conditions: 

(1)  Such  study  and  all  expenditures  con- 
nected therewith  will  be  borne  by  the  United 
States  Capitol  Historical  Society. 

'2)  Upon  completion  of  such  study,  the 
United  States  Capitol  Historical  Society,  at 
its  expense,  will  furnish  the  Architect  of  the 
Capitol  a  report  detailing  the  results  of  such 
study.  Installations,  andprograms  proposed, 
and  estimates  of  cos;  required  to  implement 
such  project  without  expense  to  the  United 
States,  including  maintenance  and  operating 
expenses. 

(3)  T^,e  project  may  not  be  implemented, 
beyond  the  report  stage,  except  as  provided  in 
section  2  hereof. 

Sec.  2.  The  Architect  of  the  Capitol  shall 
review  such  report  and  submit  the  same,  with 
his  recomme  idatlo:.s.  to  the  Soeakcr  and 
majority  and  minority  leaders  of  the  House 
of  Representatives  and  to  the  United  Si.ates 
Senate  Commission  on  Art  and  Antiquities. 

If  the  project,  as  presented,  with  or  with- 
out modifications,  meets  with  the  approval 
of  such  House  and  Senate  officials,  the  Archi- 
tect of  the  Cap'ltol.  notwithstanding  any 
other  provision  of  law,  is  authorized  after 
such  approval — 

(1)  To  accept  in  the  name  of  the  United 
States  fro.TQ  the  United  S'Jites  Capitol  Histori- 
cal Society,  as  a  gift,  such  sum  or  sums  as 
may  be  required  to  further  implement  such 
project,  eind  such  sum  or  sums  when  re- 
ceived, shall  t>e  credited  as  an  addition  to 
the  appropriation  accourit  •Capitol  Build- 
ings. Architect  of  the  Capitol". 

(2)  Subject  to  section  3  hereof,  to  expend 
such  sum  or  sums  for  all  items  of  equip- 
ment and  other  facilities  required  for  the 
sound  and  light  performance,  and  for  any 
other  items  in   conncrtlon   therewith. 

Sec.  3.  The  Architect  of  the  Capitol,  under 
the  direction  of  the  House  and  Se;iate  offi- 
cials designated  In  section  2  hereof.  Is  au- 
thorized to  enter  into  contracts  and  to  incur 
such  other  ob!lj?atlons  and  make  such  ex- 
pendKures  as  may  be  necessary  to  carry  out 
the  provisions  of  said  section  2. 

Sec.  4.  Sums  received  under  this  joint 
resolution,  when  credited  as  an  addition  to 
the  apprc^rlatlon  account  'Capitol  BuUd- 
iags.  Architect  of  the  CapiKd".  ahall  be 
avaUable  for  expenditure  and  shall  remAin 
available  until  expended.  FoUowUig  com- 
pletion of  the  ln.stallation.  such  sums  may 
thereafter  be  t:.^ed  by  the  Architect  of  the 
Capitol.  In  whole  or  -ptsi.  to  defray  any  ex- 
penses which  he  may  incur  for  mainte- 
nance and  operation. 

Tire  SPE.\KER.  Is  there  objection  to 
tlie  request  of  the  genUeman  from  Illi- 
nois? 

Mr.  GROSS.   Mr    Speaker,   reserving 


42552 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


the  right  to  object.  I  think  we  ought  to 
have  a  few  words  of  explanation  as  to 
what  IS  being  attempted  here. 
_  Mr.  GRAY  WUl  the  genUeman  yield? 
"  Mr  GROSS  I  am  delighted  to  yield  to 
the  gentleman. 

Mr  GRAY.  I  thank  the  gentleman  for 
yielding. 

Mr  Speaker,  th'.s  i.s  the  resolution  that 
deals  with  a  feasibility  study  for  a  light 
and  sound  program  for  the  east  front 
of  the  Capitol  The  only  change  by  the 
other  body — and  I  would  say  It  Is  not  a 
substantive  one — was  that  after  the  fea- 
sibility study  has  been  completed  the 
leadership  of  the  House  and  Senate  would 
have  been,  under  the  House  resolution, 
required  to  approve  the  plan.  Instead  the 
other  body  made  one  change  by  striking 
out  the  majority  and  minority  leaders  of 
the  Senate  and  substituting  the  words 
US.  Senate  Commission  on  Arts  and 
Antiquities  as  the  approving  body  acting 
on  behalf  of  the  Senate 

There  are  no  Federal  funds  authorized 
In  the  resolution 

As  the  gentleman  knows,  his  former 
distinguished  colleague  from  Iowa,  Mr. 
Schwengel.  and  the  US  Capitol  His- 
torical Society  will  provide  all  of  the 
funds  necessary,  if  it  Is  found  feasible 
to  put  in  a  light  and  sound  system 
at  the  Capitol,  but  as  far  as  this  resolu- 
tion is  concerned  there  are  no  changes 
from  the  House  joint  resolution  except 
the  words  I  mentioned  which  would  pro- 
vide that  the  Commls.-i."in  on  Art^s  and 
Antiquities  approval  would  be  substituted 
for  the  majority  and  minority  leaders  of 
the  Senate. 

Mr.  GROSS.  This  would  have  nothing 
to  do  »-ith  controlling  the  sound  in  the 
House  Itself,  of  which  we  have  great  vol- 
umes but  not  enough  light? 

Mr  GRAY  My  distinguished  friend  Is 
absolutely  correct.  This  will  all  be  on  the 
outside  and  a  very  exciClng  plan. 

Mr  GROSS  Mr  Speaker.  I  withdraw 
my  reservation  of  objection. 

The  SPEAKER  Is  there  objection  to 
the  request  of  the  gentleman  from 
Illinois' 

There  was  no  objection. 

The  Senate  amendment  was  con- 
curred ;n 

A  motion  to  r*-.-  .'  .'^r  was  laid  on  the 
Uble. 


TAX.\BrLITY  OP  DUIDENDS  RE- 
CEIVED BY  A  CORPORATION 
FROM  INSURANCE  COMP.A.NIES. 
BANKS.  AND  OTHER  SAVLNGS  IN- 
STITmONS  LN  THE  DISTRICT  OF 
COLUMBL\ 

Mr.  DIGGS  Mr  Speaker.  I  ask  unani- 
mous coiisent  to  Uke  from  the  Speaker's 
table  the  bill  H  R  61 861  to  amend  the 
District  of  Columbia  Revenue  Act  of 
1947  regarding  taxability  of  dividends  re- 
ceived by  a  corporation  from  Insurance 
companies,  banks,  and  other  savings  In- 
stitutions, with  Senate  amendments 
thereto  concur  in  Senate  amendments 
N08.  1  and  2.  and  consider  Senate  amend- 
ment No  3. 

The  Clerk  read  the  title  of  the  bill 


The  Clerk  read  the  Senate  amend- 
ments, as  follows 

P»g«  1.  line  8.  strike  out  "article"  and  in- 
sert "subchapter" 

Pmge  2,  Une  7.  strike  out  "article"  and  in- 
sert "sulschapter  ' 

Page  3.  after  line  3.  tnaert; 

Ssc.  3  (a)  Sectlou  7334(d)  (4i  of  title  6. 
United  States  Code.  Is  amended  to  read  as 
follows : 

•  ( 4 1  the  Mayor  of  the  District  c  f  Columbia, 
the  memben  of  the  Council  of  the  District  of 
Columbia,  or  the  Chairman  of  the  Council 
of  the  District  of  Columbia,  as  eutabllshed  by 
the  District  of  Columbia  Self  Oovemment 
and  OoTernmental   Reorganization  Act;   or" 

(b»  Notwlthgtandlng  aiiy  other  provision 
of  law.  the  provUlons  of  section  7324(a)  (2) 
of  title  5.  United  SUtee  Code,  shall  not  be 
applicable  to  the  Commissioner  of  the  Dis- 
trict of  Columbia  or  the  member*  of  the  Dls- 
Vrlct  of  Columbia  Council  (Including  the 
CH^alrman  and  Vice  Chairman),  as  estab- 
lUtied  by  Reorganization  Plan  Numbered  3 
of  V967 

The  SPEAKER  Is  there  objection  to 
the  request  of  the  gentleman  from  Michi- 
gan I  Mr.  Dices  >  ? 

Mr.  DELLUMS.  Mr  Speaker,  reserv- 
ing the  right  to  object.  I  would  like  to 
ask  our  dlsUngxilshed  Chairman  of  the 
Committee  on  the  District  of  Columbia 
as  to  whether  a  nongermane  Senate 
amendment  Is  00  this  bill  that  would  ex- 
empt the  Mayor  and  the  City  Council 
from  the  Hatch  Act  provisions  as  con- 
tained In  the  District  of  Columbia  home 
rule  bill  that  both  bodies  have  Just 
passed. 

Mr  DIGGS  Mr.  Spc.krr.  if  the  gen- 
tleman will  yield.  I  welcome  this  oppor- 
tunity to  respond  to  the  gentleman  so 
as  to  explain  the  NeLsen  amendment  And 
I  will  ask  the  gentleman  from  California 
« Mr.  Dellcms  >  to  yield  al.so  to  the  rank- 
ing minority  member  on  the  committee 
so  that  he  may  further  elaborate  on  this 
matter 

As  the  Members  know.  Mr.  Speaker, 
in  the  home  rule  bill,  because  of  the  pro- 
visions therein,  the  Mi.yor  and  the  Cltv 
Cour.c.l  and  for  that  matter,  city  and 
Federal  employees  are  "Hatched."  And  as 
we  mdlcated  in  the  debate  the  other  day. 
the  gentleman  from  Minnesoti  1  Mr.  Nu.- 
S5!M'.  and  I  were  to  work  out  a  solution 
to  this  matter,  and  this  represents  that 
product. 

The  accommodation  that  the  gentle- 
man from  Minnesota  1  Mr  Nelsen)  and 
I  have  reached  will  prevent  an  hiatus  In 
the  District  of  Columbia  government  be- 
caa^e  it  will  gr.int  an  exemptici  for  the 
currently  appointed  Mayor  and  the  City 
Council  members,  some  10  people,  to  al- 
low them  to  be  a  candidate  in  this  first 
election  for  Mayor  and  Chairman  and 
members  of  the  Council  so  that,  there- 
fore, none  of  the  current  officials  will 
have  to  resign  In  order  to  run  for  ofBce. 

Second,  In  order  to  encourage  the  wid- 
est range  of  public  candidate?,  this  ac- 
commodation of  the  Nelsen  amendment 
exempts  any  per-on  emplo.ed  by  the 
Federal  Government  or  by  the  District 
of  Columbia  from  the  proscription  of  the 
Hat<At  Act  Insofar  as  such  person  may  be- 
coire>^candldate  for  office,  and  may  be 
InvolveJr  In  and  take  an  active  part  In 
such  candidacy 

In  other  w  ords.  this  would  only  exempt 
them  if  they  were  candidates. 


All  of  the  other  provisions  and  pro- 
tections of  the  Hatch  Act  apply. 

In  addition  to  all  of  that,  this  exemp- 
tion is  temporary  It  will  terminate  as  ol 
January  2.  1975. 

And  I  would  now  ask  the  distinguished 
gentleman  from  California  (Mr.  Del- 
LUMs).  if  he  would  yield  to  the  gentle- 
man from  Minnesota  (Mr.  Nelsen >.  the 
author  of  the  amendment,  for  whatever 
further  explanation  the  gentleman  may 
have? 

Mr.  DELLUMS.  I  am  happy  to  yield 
to  the  genUeman  from  MlnnesoU  (Mr. 
Nelsen  i  . 

Mr  NELSEN  Mr.  Speaker.  I  thank  the 
gentleman  from  California  for  yielding 
to  me. 

Mr.  Speaker.  I  would  like  to  point  out 
that  there  is  quite  a  little  history  on  this 
point,  up  to  this  time,  leading  to  the  sit- 
uation we  are  in. 

No  1.  It  was  my  wish  in  dealing  with 
the  -home  rule"  legislation  that  elections 
would  be  held  on  a  nonpartisan  basis. 
That  Is  what  the  House  approved  and 
passed  upon  on  October  10.  1973.  but  the 
minute  that  Item  got  to  conference  a 
change  was  made  providing  for  partisan 
elections  The  conferees  then  tacked  on 
to  the  Senate  provision  providing  for  par- 
tisan elecUons  a  House  provLslon— 
which  was  meaningless  when  It  appeared 
In  the  House-passed  version  of  S.  1435, 
the  home  rule  bill,  because  the  Hou.se 
provided  for  nonparti.san  elections — that 
would  exempt  Federal  employees  from 
the  Hatch  Act  so  that  they  could  run  for 
office  in  the  District  government.  The  ex- 
emption for  Federal  employees  applies 
Into  the  future  for  all  time  and  was 
passed  by  the  House  the  other  day  (Mon- 
day) when  it  approved  the  conference 
report  No.  93-703  The  question  then 
arose  what  about  those  In  the  local  Dis- 
trict government  who  might  wish  to  run 
for  elective  office  next  year— Including 
the  Mayor  and  members  of  the  City 
Council.  Of  course.  It  would  mean  that 
they  would  have  to  resign  In  order  to 
run. 

What  the  Senate  amendment  does  In 
my  view  U  to  specifically  amend  title  5 
section  5324.  of  the  United  States  Code,' 
the  Hatch  Act.  so  as  to  provide  that  the 
Mayor  and  Members  of  the  Council  of 
the  DLstrlct  of  Columbia  only  be  permit- 
ted to  run  in  the  first  election.  This 
amendment  which  I  offer  would  broaden 
that  so  as  to  permit  all  city  em-^loyees  to 
run  in  this  first  election  only,  but  It 
would  terminate  that  authority  on  Jan- 
uary 2.  1975.  at  which  time  the  newly 
elected  officials  would  take  office. 

However,  the  same  amendment  goes 
further.  It  would  amend  the  Hatch  Act. 
title  5.  section  7324.  so  as  to  provide  that 
t'le  elected  Mayor  Chairman,  and  mem- 
bers of  the  Council  would  be  exempted 
from  the  Hatch  Act  in  the  future.  Just  as 
section  741  of  the  conference  report  pro- 
vides that  Federal  employees  are  exempt 
from  the  Hatch  Act. 

I  feel  this  latter  provision  Is  particu- 
larly vulnerable  to  a  test  In  the  courts  as 
to  Its  constitutionality  as  It  Is  discrim- 
inatory In  the  extreme  and  has  perspec- 
tive effect  for  all  time. 

The  amendment  I  offer  that  applies 


December  19,  1973 


CONGRrssfOXAT    RFrORD  ---  HOUSE 


42553 


only  for  this  first  election  and  not  to 
those  officials  who  would  be  elected  in  the 
future.  By  inserting  language  with  a  ter- 
mination date  of  January  2,  1975,  we  are 
forcing  the  Congrera  to  look  at  it  in  the 
near  future  and  hold  those  hearings 
upon  which  you  place  such  great  impor- 
tance and  emphasis.  Accordingly,  I  do 
not  see  that  we  differ  that  much  in  our 
approach  other  than  the  fact  that  my 
amendment  addresses  sm  issue  which  is 
of  Immediate  importance,  in  that  the 
President  is  going  to  have  the  home  rule 
bill  on  his  desk  this  week  for  signature, 
and  the  chairman  and  I  in  open  debate 
In  this  body  discussed  tind  agreed  upon 
the  contents  of  the  enactment. 

I  stand  ready  with  the  Members  of 
this  body  to  effect  this  temporary  correc- 
tion of  a  problem  that  confronts  the 
District  of  Columbia  as  they  enter  upon 
their  first  election  for  their  local  govern- 
ment officials. 

I  consider  that  In  doing  this,  that  is  in 
offering  my  amendment.  I  have  compro- 
mised myself  much  further  than  I  would 
have  liked  to.  but  under  the  circum- 
stances 1  must  be  realistic;  and  as  I  said 
In  my  amendment  to  provide  continuity 
In  the  government  of  the  District  of  Co- 
lumbia during  the  transition  period  from 
the  appointive  government  to  the  elected 
government. 

I  do  not  endorse  the  idea  that  the 
Hatch  Act  should  be  repealed  or  changed, 
but  I  do  feel  that  the  circumstances  we 
are  now  In.  having  gone  to  this  point 
with  home  rule  legislation,  require  that 
we  ought  to  have  some  kind  of  exemp- 
tion for  this  election. 

For  this  reason.  I  hope  you  will  agree 
that  this  amendment  of  mine  will  provide 
a  reasonable  correction  as  the  President 
considers  the  home  rule  legislation. 

So  we  are  not  tampering  on  a  long- 
range  basis  at  all  with  our  civil  service 
system  or  Hatch  Act  in  the  country.  In 
fact,  my  amendment  to  H.R.  6186  by 
striking  section  741  of  the  home  rule  bill 
as  contained  In  the  conference  report 
limits  the  effect  of  the  exemption  con- 
tained therein,  for  Federal  employees,  to 
the  date  of  January  2.  1975.  rather  than 
for  all  time. 

I  hope  my  colleague,  the  gentleman 
from  California,  will  go  along  vdth  this 
amendment.  I  think  it  is  the  only  thing 
we  can  do. 

Mr.  DELLUMS  Mr.  Speaker.  I  should 
like  to  ask  the  distinguished  gentleman 
from  Michigan,  why  Is  li  that  the  Dis- 
trict of  Columbia  Committee  was  not 
given  adequate  opportunity  to  legislate 
in  this  area,  since  the  elections  wUl  not 
take  place  until  the  fall  of  next  year? 
We  certainly  have  more  than  ample  time 
for  all  of  the  members  of  the  District  of 
Columbia  Committee  to  go  through  the 
usual  process  of  referring  this  matter  to 
a  subcommittee  with  appropriate  hear- 
ings, and  then  ha\'lng  the  full  commit- 
tee work  Its  will  and  come  out  with  a  rule 
and  bring  It  to  the  floor. 

We  can  do  that  In  late  January,  early 
Pebruarj'.  and  March  In  plenty  of  time 
for  these  elections  Why  are  we  trying  to 
do  It  at  the  11th  hour  right  after  a  con- 


ference report  that  brought  back  a 
matter  that  the  gentleman  was  not  par- 
ticularly in  agreement  with?  I  may  per- 
sonally agree  with  the  proposal  that  the 
gentleman  made.  What  I  am  suggesting 
is  that  this  is  no  way  to  legislate,  and 
that  the  committee  ought  to  have  the 
responsibility  of  coming  to  grips  with 
this  matter. 

We  may  report  the  same  proposal  out. 

Will  the  gentleman  respond  why  the 
Committee  on  the  District  of  Columbia 
was  not  given  adequate  opportunity  to 
discuss  this  matter  or  even  entertain  it 
legislatively? 

Mr.  NELBEN.  If  the  gentleman  will 
yield,  of  course,  our  bill  was  on  the  non- 
partisan elections.  We  dealt  with  a  totally 
different  approach  on  the  House  side,  and 
this  amendment  is  being  proposed  from 
the  other  side  of  the  Capitol.  I  should  like 
to  have  the  gentleman  from  California 
yield  to  the  chairman  on  this  point,  be- 
cause he  has  the  time. 

I  will  be  glad  to  supplement  his  state- 
ment. 

Mr.  DELLUMS.  I  do  not  mind  the  gen- 
tleman's answer.  I  would  Just  like  to  know 
why  our  committee  has  not  given  respon- 
sibility in  this  matter. 

Mr.  NELSEN.  If  the  gentleman  wUl 
yield  further,  the  gentleman  understands 
that  I  am  not  in  control  of  the  commit- 
tee. I  am  not  In  charge  of  what  the  com- 
mittee does.  I  found  that  out  the  hard 
way. 

Mr.  DELLUMS.  The  gentleman  worked 
out  this  proposal  and  submitted  it:  am 
I  not  correct? 

Mr.  NELSEN.  This  corrects  the  con- 
ference report.  If  the  chairman  of  the 
committee  wished  to  bring  It  back  to  the 
committee,  that  would  have  been  his 
option,  not  mine.  I  am  a  member  of  the 
committee,  but  I  am  not  In  charge  of  the 
committee.  But  in  any  case  this  matter 
was  dlscassed  in  some  detail  by  the 
chairman  and  myself  in  some  detail  on 
Monday  during  consideration  of  the 
conference  report  on  the  home  nJe 
legislation. 

Mr.  DIGOS.  Mr.  Speaker,  will  the  gen- 
tleman yield? 

Mr.  DELLUMS.  I  yield  to  the  gentle- 
man from  Michigan. 

Mr.  DIGGS.  I  thank  the  gentleman  for 
yielding. 

In  response,  the  gentleman  from  Min- 
nesota 'Mr.  Nelsen  1  designated  this 
matter  partisan  versus  nonpartisan.  It 
went  through  several  stages,  and  the 
amendment  before  us  is  the  product  of 
the  results  of  these  various  stages  that  It 
has  gcHie  through  by  both  sides,  and  the 
agreement  that  was  worked  out  in  con- 
ference. This  Is  the  most  expeditious  way 
of  handling  the  matter.  If  it  Is  postponed 
until  next  year.  I  do  not  think  It  would 
accomplish  any  useful  purpose,  and  It 
further  might  become  politicized  as  we 
move  into  what  is  fast  approaching  cam- 
paign time  here  In  the  District  for  those 
who  are  interested  In  becoming 
candidates. 

Mr.  DELLUMS.  May  I  ask  my  distin- 
guished chairman  a  question?  If  this 
amendment  could  have  been  worked  out 


between  the  time  the  conference  ended 
and  today,  could  we  not  hold  hearings 
right  after  the  21st  of  Janusur  for  a 
couple  of  days  and  discuss  this  matter? 
We  may  even  bring  a  proposal  to  the 
floor,  but  it  would  be  a  full  committee 
proposal  and  not  part  of  the  committee's 
proposal. 

I  am  a  member  of  that  committee.  I 
should  like  to  talk  about  that  matter.  I 
may  end  up  in  the  same  position  as  my 
distinguished  ranking  minority  member 
of  tlie  committee,  but  at  this  point  I  feel 
that  I  have  not  had  my  right  as  a  mem- 
ber of  the  committee  to  be  Involved  in  a 
legislative  process  dealing  with  what  may 
be  a  very  political  matter. 

Mr.  DIGGS.  I  can  merely  repeat  to 
the  gentleman  that  this  Is  a  temporary 
solution  that  has  been  worked  out  In 
consideration  of  all  the  reservations  that 
he  may  entertain  at  this  particular  point 
and  there  wHl  be  full  allowance  within 
the  context  of  this  amendment  to  really 
go  into  this  matter  and  to  examine  it 
and  hold  full  hearings  so  that  at  the  next 
election  time  there  will  be  an  adjudi- 
cated, more  permanent  solution  to  it.  It 
is  for  that  reason  that  we  hope  the  gen- 
tleman will  go  along  with  our  present 
arrangement. 

Mr.  NELSEN.  Mr.  Speaker,  if  the  gen- 
tleman will  yield  further.  I  am  in  total 
agreement  with  my  colleague,  the  gen- 
tleman from  California  (Mr.  Dzllvus) 
that  when  we  are  dealing  with  a  subject 
as  important  as  the  civil  service  system 
and  the  Hatch  Act  and  making  a  change 
here,  it  can  well  be  opening  the  door 
for  a  nationwide  trend  which  could  be 
disEistrous,  but  the  circumstances  we  are 
in  are  that  we  passed  the  conference 
report  on  the  home  rule  bill  and  we  now 
find  that  what  we  have  done  by  the  ac- 
ceptance of  the  language  of  the  Senate 
bill  on  partisan  elections  into  the  ccai- 
ference  report  together  with  section  741 
of  the  House  bill  ts  that  we  put  the  Mayor 
of  this  city  and  the  City  Council  and 
other  key  city  employees  in  a  situation 
where  they  will  have  to  resign  in  order  to 
run  for  elective  office.  I  do  not  want  to 
be  a  party  to  legislation  that  would  deny 
other  people  in  this  city  the  opportunity 
of  running  imder  the  .same  circumstances 
as  the  Mayor  and  the  City  Council  mem- 
bers or  other  Federal  employees — who 
are  already  exempt  under  the  terms  of 
the  conference  report — and  yet  that  is 
what  the  conference  report  and  the  Sen- 
ate amendment  to  H.R.  6186  would  pro- 
vide. 

Mr.  DELLUMS.  Mr.  Speaker.  I  would 
like  to  ask  the  gentleman  a  further  ques- 
tion. 

Mr.  NELSEN.  I  will  trj-  to  answer  the 
gentleman. 

Mr.  DELLUMS  Mr.  Speaker,  if  this 
matter  Is  so  important,  then  could  we 
not  put  this  matter  on  the  Dlstrict_ol 
Columbia  agenda  right  after  the  21st  and 
expeditiously  report  a  piece  of  legisla- 
tion to  the  floor  in  plenty  of  time  before 
any  candidate  announces,  before  we 
make  a  very  serious  step  that  I  frankly 
think  may  be  prejudicial  to  the  election 
process. 


425^ 


CONGRESSIONAL  RECORD  — HOUSE 


Mr.  NELSEN  Mr.  Speaker.  If  the  gen- 
-  leman  will  yield  further.  I  would  point 
uut  In  the  original  bill.  H  R.  9682  reported 
out  by  the  committee,  a  Hatch  Act  ex- 
emption was  Included  So  the  record  Is 
not  entirely  devoid  of  hearings  on  the  is- 
sue. The  gentleman  was  on  the  commit- 
tee and  sat  Ln  the  markup  on  that  bill. 
This  amendment  will  do  what  the  gen- 
tleman wants  to  do.  which  is  to  termi- 
nate this  procedure  on  January  2,  1975. 
If  the  gentleman  Judges  it  to  be  a  mis- 
take, at  least  we  have  time  In  the  futiire 
to  stop  It  at  the  time  the  new  govern- 
ment is  Installed  Bind  I  think  then  or  in 
the  meantime  our  committee  should  re- 
view this  and  go  back  to  nonpartisan 
elections,  which  I  strongly  urge,  and  then 
all  the  problems  we  are  encountering  in 
thl.<:  area  of  the  Hatch  Act  can  be  avoided 
and  dispensed  with  once  and  for  all. 

Mr.  DELLUMS.  Does  the  gentleman 
from  California  (Mr.  Bkll)  desire  me  to 
yield? 

Mr.  BELL.  Mr  Speaker.  I  do  think  the 
gentleman  from  California  recognizes 
the  sense  of  our  nonpartisan  elections  In 
California  and  I  myself  would  be  very 
much  In  favor  of  acting  very  stronglv 
for  altering  the  District  home  rule  bill 
to  provide  for  nonpartisan  elections.  If 
this  comes  back  in  January.  I  for  one 
will  guarantee  I  will  fight  very  hard  to 
return  to  nonpartisan  elections.  I  think 
this  will  serve  to  avoid  all  this  trouble  for 
ourselves  merely  because  the  Senate  de- 
sired to  have  a  partisan  election^  I  think 
that  is  ridiculous. 

Mr  DELLUMS.  I  do  not  think  that  is 
at  issue  at  thus  moment.  I  think  what  is 
at  is.'^ue  b  that  a  proposal  is  being  made 
that  will  e.xempt  the  incumbent  ao- 
polnted  City  Council  from  the  Hatch  Act 
I  think  that  has  great  political  and  legal 
ramifications.  We  might  decide  we  would 
come  back  vith  the  ver.-  ."^ime  proposal  as 
my  colleague,  the  distinguished  gentle- 
man has.  but  we  should  not  open  'he  door 
without  having  hearings  and  discussing 
it  a.-ncrg  cursehes.  and  I  do  not  think 
^e  ought  to  work  out  arrangements 
among  two  or  three  of  us  when  we  have 
committee^  chr.rged  with  thoj^e  re:pon- 
sibiiitit's.  I  am  tired  of  teirig  Ignored  as 
are  member  nonsenlor  Members  of  this 
House,  and  v:ear\-  of  having  the  commit- 
tees pas.ed  over  and  of  having  the  sit- 
uation where  we  as  Members  do  not  have 
an  o';'^ortun:tv  to  fully  function  and  have 
to  come  to  the  floor  and  use  the  floor  to 
get  our  rights. 

Mr.  NELSEN.  The  gentleman  might  be 
tired  a:  d  I  am  weary  also  and  I  sit  en 
the  rorr.n>ifce  and  I  am  a  minoritv  voice 
ard  had  mv  advice  been  followed  on  pro- 
viding ^or  nonrarti-an  elections  we 
T.oi'l'J  not  ha- e  had  thi.s  problem  right 
now. 

But  I  am  broadminded  enough  to  re- 
alize once  the  Congress  has  spoken,  once 
the  House  made  a  decision  to  adopt  the 
conference  report,  then  what  do  we  do? 
We  try  to  Pf'commodate  the  situation  at 
the  same  time  writing  legislation  with 
the  Idea  of  perhaps  what  the  gentleman 
wants  to  do  and  what  I  certainly  want 
to  do  and  that  is  to  bring  about  a  change 


where  we  go  to  a  nonpartisan  election, 
where  no  citizen  Is  denied  his  activities, 
where  the  restrictions  of  the  Hatch  Act 
are  not  going  to  hamper  the  activities  of 
citizens  toward  participation  in  city  gov- 
ernment. No  matter  what  we  do.  when  we 
have  a  clvU  service  system  and  have  as 
many  people  In  the  Federal  employ  as  we 
have  here,  if  we  have  partisan  elections 
we  are  putting  people  In  full  participa- 
tion In  their  local  government  Therefore, 
the  problem  we  are  faced  with  now  is  un- 
fortunate, certainly  not  of  m>-  making, 
but  I  do  feel  a  responsibility  to  effect  a 
temporary  solution. 

I  want  to  add  further,  that  the  gentle- 
man Indicated  that  the  Mayor  and  the 
Council  under  this  amendment,  that 
everybody  will  have  a  chance  to  be  a 
candidate  and  rim  for  office  and  It  will 
terminate  after  they  have  been  Installed, 
so  we  have  a  clean  slate  to  start  with. 
I  hope  the  gentleman  will  remove  his 
objection  and  go  along  with  this 

Mr.  DELLUMS.  Mr.  Speaker.  I  have 
listened  very  carefully  to  the  debate.  I 
did  not  come  here  with  a  fixed  mind.  This 
Is  a  very  important  matter.  I  do  not  want 
to  infringe  upon  the  stature  and  pre- 
rogatives of  the  chairman  of  the  com- 
mittee, who  has  worked  very  hard:  but 
I  think  this  matter  can  t>e  disposed  of  by 
legislative  process.  I  am  not  necessarily 
opposed  to  the  concept,  but  I  am  op- 
posed to  the  process  and  for  those  rea- 
sons. Mr.  Speaker.  I  would  object. 
The  SPEAKFT?    Objection  Is  heard. 


CONFERENCE  REPORT  ON  H  R.  11576. 
MAKING  SUPPLEMENTAL  APPRO- 
PRL\TIONS  FOR  FISCAL  YEAR 
ENDING  JUNE  30.  1974 

Mr.  M.\HON.  Mr.  Speaker,  pursuant  to 
the  order  of  the  House  of  yesterday,  I 
call  up  the  conference  report  on  the  bill 
'H.R.  U576)  making  supplemental  ap- 
propriations for  the  fiscal  year  ending 
June  30.  1974.  and  for  other  purposes, 
and  ask  unanimous  consent  that  the 
statement  of  the  managers  be  read  in 
lieu  of  the  report. 

The  Clerk  read  the  title  of  the  bill. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

Ther«  was  no  objection. 

The  Clerk  read  the  st.atement. 

'  For  conference  report  and  statement, 
see  proceedings  of  the  House  of  Decem- 
ber 17,  1973.' 

Mr.  MAHON  (during  the  reading). 
Mr.  Speaker.  I  ask  unanimous  consent 
that  further  reading  of  the  statement 
be  dispensed  with. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from  Texas? 

There  was  no  objection 

Mr.  NLAHON.  Mr.  Speaker.  I  shall  make 
a  rather  brief  .statement  In  order  that 
Membe-s  mav  know  generally  what  Is 
included  in  the  conference  agreement  on 
the  supplemental  appropriations  bill  It 
is  a  SI  6  billion  supplemental  appropria- 
tions bill.  Last  year,  the  .supplemental  bill 


December  19,  197S 

in  October  totaled  about  $5  billion.  So 
this  bill  Is  not  unreasonable  from  the 
standpoint  of  those  who  share  my  views 
that  we  need  to  hold  expenditures  down 
to  a  reasonable  level. 

Mr.  Speaker,  we  bring  back  to  the 
House  today  the  conference  report  on  the 
final  supplemental  appropriations  bill -of 
this  session.  The  bill  has  12  chapters  and 
Includes  110  amendments — 110  differ- 
ences between  the  House  and  Senate  ver- 
sions. The  conference  report  has  been 
printed  in  the  Record  and  Is  available 
otherwise  to  Members. 

Mr.  Speaker,  the  conference  agreement 
provides  approximately  $1.64  billion  in 
new  obllgatlonal  authority.  The  House 
bill  totaled  $1.43  billion  compared  with 
a  Senate  bUl  of  $1.88  billion.  The  Sen- 
ate, however,  considered  some  $105  mil- 
lion In  supplemental  estimates  which 
were  not  before  the  House. 

The  conference  agreement  before  us  Is 
$104  million  above  the  budget.  It  Is  $205 
million  above  the  Hou.^e  bill  and  about 
$250  million  below  the  Senate. 

The  major  increases  in  the  bUl  as 
passed  by  the  Senate  occurred  princi- 
pally in  four  areas;  Labor-HEW,  Defense, 
Interior,  and  State-Justice-Commerce. 

In  the  Labor-HEW  chapter  the  Sen- 
ate added  $163  million  over  the  House 
bill.  The  House  conferees  were  able  to  re- 
duce that  figure  by  $104  mUlon.  The  prin- 
cipal add-ons  over  the  House  bill  were  for 
older  Americans,  emergency  health  serv- 
ices, and  vocational  rehabilitation. 

In  the  Defense  chapter,  the  Senate 
added  $72  mlllon.  The  House  conferees 
held  that  figure  to  $7.5  million. 

In  the  Interior  chapter,  the  Senate 
added  $75  million.  We  bring  back  an  in- 
crease of  $32  million  In  this  area.  The 
largest  single  add-on  is  related  to  the 
energy  crisis. 

In  the  State-Justice-Commerce  chap- 
ter the  Senate  added  $97  million.  The 
conference  report  contains  $52  million 
additional,  the  great  majority  of  which 
is  for  economic  development  activities 
and  the  U.N.  peacekeeping  force  in  the 
Mid-East. 

Other  Senate  add-ons  Include  $22  mil- 
lion for  Senate  Items  which  the  conferees 
agreed  to  and  another  $10  million  for 
claims  and  judgments  which  have  been 
rendered  against  the  Government  and 
which  are  mandatorj*. 

As  I  indicated  earlier,  the  conference 
apreement  we  bring  back  today  Is  $205 
million  over  the  House  bill  but  about 
$250  million  under  the  Senate  bill.  The 
Senate,  of  course,  considered  some  $104 
million  In  budget  requests  from  the 
President  which  were  not  considered  In 
the  House. 

Mr.  Speaker.  I  ask  unanimous  consent 
to  place  in  the  Record  at  this  point 
tabular  information  which  summarizes 
the  conference  report  and  which  identi- 
fies major  Items  in  conference  and  their 
disposition. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection. 


December  19,  1973  CLLNGRiiSlONAL  RECORD  — HOUSE 

SUMMARY  OF  CONFERENCE  ACTION  ON  SUPPLEMENTAL  APPROPRIATION  BILL.  1974.  H.R.  11576 


4.-X  Bi-   ar  «r 


Chipttr 
No. 


Conferann  compared  witti- 


Budg«t 
estimatas 


House  bill 


Senate  bill 


Conference 


Budget 

estimates 


House  bill 


Senate  bill 


II.. 

III... 

IV... 


|- AricuHure— EnvironmenUl  and  Consumer  Protection $12. 128,000        $11. 500, 000 

Dot  SAM 

Housing  and  Urban  Development,  Space,  Science,  and Veterans' 
Interior  and  Related  Agencies: 

New  budget  (oUigational)  auttionty 

Appropriation  to  liquidate  contract  auttMrity 

V Labor,  and  Health,  Education,  and  Weltare; 

New  budget  (oMigational)  authority 

By  transfer 

VI Legislative:  

New  budget  (oUigational)  authority 

Fiscal  year  1974  

Fiscal  year  1973    . 

VII PuWic  Works -AEC  

New  budget  (oUigatiorul)  authority 

By  transter 

VIII State.  Justice,  Commerce,  and  ivi\iMrf..JSS.'.' """.".'.'.'.' 

IX Transportation   '. .'.'.'.'.'.V. 

X. Treasury,  Postal  Service,  and  General  Goveriiinent    '" 


XI Claims  and  ludgments 

Total:  

New  budget  (oMIntional)  authority...    . 

Fiscal  year  1974 

Fiscal  year  1973 

By  transter  " 

Appropriation  to  liquidate  contr*ct  authorityl 


8.206.666  ■ 

98.  878. 000 
(1,500,000) 

751,451,000 
(840. 000) 

33,913.585 
(33.038.585) 
(875.000). 

150.550,000 

(16.500.000). 

68. 962, 000 

39,063,000 

313,686.000 

57, 352, 301 

1.  534, 183.  886      I. 

(1.533.308.886)  (1. 

(875,000)... 

(17.340.000) 

(1.500.000) 


7,80C,660" 

88,131.000 
(1,500,000) 

763.  357. 000 
(2. 800. 000) 

8,  719.  550 
(8,  719,  550) 


$12. 628, 000 

72. 000.  000 

7.800.000 

163, 923. 000 
(1,500,000) 

926  615,000 
(9.800  000) 

30. 809. 085 
(29,  934,  085) 
(875, 000) 


$11,800,000 
7,500.000 
7. 800,  COO 

121,025,000 
(1,500,000). 

822. 025.  000 
(12,800.000) 

30, 809,  085 
(29. 934,  085) 
(875,000). 


-$300,  OCO        -$828,000 
+7,500,000    -64.500,000 


-$328,000 

+7,  500,  000 

-400,000 


+22,147.000        +32.894,000    -42.898,000 


161,850,000         179,850.000         174,650.000 


32.  587, 000 

30,  570, 000 

281.510,000 

47,011,168 

433.035,718      1. 
443,035,718)  (1, 

"(2,'866,'666) 
(1.500,000) 


129.895.000 

31,585,000 

275.968,000 

57,  352.  301 


84,526.000 

30,  335, 000 

290,  803. 000 


+70,574,000 
(+11,960.000) 

-3. 104.  500 
(-3,104,500) 


+24,100.000 

(-16,500,000). 

+  15,564,000 

-8,  728,  000 

-22.883,000 


4-58.668.000  -104.590  000 
(+10,000,000)  (+3,000,000) 

+22.089,535 

(+21.214,535) 

(+875,000) 


+12.800.000      -5,200,000 

'+5i'939."o66"-45.'369,'666' 
-235,000      -1,250,000 
+9,293.000    +14.835,000 


57.352.301  +10,341.133 


888.  425.  386      1,  638,  625.  386      +104, 441,  500      +205  589  668  -249  800  000 

■^'V^SS^^.  ^^■^^'■:'.^<^\  (Tl04;44i:5O0)  (+204:7H:668)(-2!9^.?C«) 
(Br^.OOO)  (875,000) (^875  000> 

(liwooo)       aM2;Soo)...^"*'**°°^^  (-io,ooo:ooo)-(+3.o66,666) 


MAJOR  ITEMS  IN  CONFERENCE  AND  THEIR  DISPOSITION:  H.R.  1I576-SUPPLEMENTAU  1974 


Senate  over  (+)    Conference  over 

or   under   (-)  (+) or  under  (-) 

House  House 


Senateover  (— )     Conference  over 

or    under   (-)  (— )or  um)er(-) 

Ho'jse  House 


Chapter  II:  Operation  and  Maintenance,  Navy  (Oil  reserves) 

(Amendment  No.  5) +$72  000  000 

Chapter  IV: 

Office  of  Oil  and  Gss— Fuel  Allocation  and  Contingency 

Fund  (Amendment  Mo,  21) +54,431  000 

American  Revolution  Bicentennial  Commission  (Amend- 
ment No.  32)... +7,100.000 

Chapter  V: 

Communty  Service  Employment  for  Older  Americans 

(Amendment  No  34)    +40,000,000 

Emergency  Medical  Services  (Amendment  No.  35) +20.000  000 

Maternal   and    Child    Health    programs  (Amendment 

,  No.37).    _ +30,105,000 

Emergencv  School  Assistance  (Amendment  No.  39) +12. 447,  OOO 

Vocationa(Rehabilit2tion(A  ne.idmentNo. 40) +*5]l3o[oO0  ' 

Multicisciplmary  Centers  of  Gerontology— Older  Ameri- 
cans Act  (Amendment  No.  44). +7  500  OOO 

Chapter  VI:  Legislative  Branch— Senate  Items  (Amendment 
Nos.  52,  53,  55,  57,  and  58) +22  089  535 


+$7, 500. 000 

+12. 400,  000 
+7, 100.  000 

+10, 000, 000 
+17,000.000 

+7, 000,  000 

"+i8,"i36,666 

+  22,089,535 


Chapter  VII: 

AEC— Weapons  Systems  (Amendment  No  60)  +$ll  ooo  ooo 
Corps  of  Engineers— Flood  Control  (Amendment  No  ' 

Chapte"vV: +l.mm 

U.N.  Peacekeeping  Force  (Amendment  No.  54)..  +17  337  ooO 
Economic  Development  Administration  (Amendments 

Chapte^x""  "'"'"'' "^ +75.000.000 

Postal  Service  (Amendment  No.  89) —lo  000  000 

Economic  Stabilization  Activities  (Amendment  No  92)  '  — 10  700000 

Federal  Energy  Office  (Amendment  No.  95)                  "  +9  36o'  000 

Public  Building  Service  (Amendment  No.  97)               "  +8600000 

Chapter  XI;  Claims  and  Judgments  (Amendment  No.  107)    '  -1-10  341' 133 

"""•f +26:,  649, 000 

^'**' +455,  389, 668 


+$5, 800. 000 

+7.000.000 

+  17.337,000 

+30, 000, 000 

-5,000,000 
-3,  700, 000 
+9,  360, 000 
+8, 000, 000 
+  10,341.133 
+25,232,000 


-205.  589, 668 


Mr.  MAHON.  Mr.  Speaker,  there  are 
also  two  Items  In  the  Labor-HEW  chap- 
ter which  deserve  comment.  Amendment 
No.  47  provides  fimds  necessary  for  full 
obligation  of  fiscal  year  1973  appropria- 
tions where  the  courts  have  foimd  these 
funds  to  be  illegally  impounded. 

-Amendment  No.  48  provides  continu- 
ing appropriations  for  manpower  train- 
Lng  progrcms  of  the  Departmnt  of  Labor 
and  for  activities  of  the  Cabinet  Com- 
inittee  on  Opportunities  for  Spanish- 
Speaking  People.  This  authority  will  con- 
tinue appropriations  at  about  the  $1.5 
billion  annual  level.  This  continuing  au- 
thority Is  provided  because  authorizing 
legislation  has  not  been  enacted  and  we 
are.  therefore,  not  in  a  position  to  come 
forward  with  the  appropriations. 

Mr.  Spca!:er.  although  this  report  is 
above  the  budget.  I  believe  the  conferees 
have  brought  back  the  best  possible  com- 
promise. .And  now,  unless  there  are  ques- 
tions, Mr.  Speaker.  I  win  not  discuss  this 
conference  report  further.  As  I  Indicated 
earlier,  the  report  is  here  and  available 
to  Members,  and  I  will  now  j-ield  for 
questions. 

Mr.  DOMINICK  V.  DANIELS.  Mr. 
Speaker,  will  the  gentleman  yield? 

Mr.  MAHON.  Mr.  Speaker,  I  yield  to 
the  gentleman  from  New  Jersey. 


Mr.  DOMINICK  V.  DANIELS.  Mr. 
Speaker,  with  regard  to  amendment  No. 
48  providing  continuing  appropriations 
for  Spanish-speaking  people  and  the 
manpower  training  program,  the  gentle- 
man mentioned  that  this  supplemental 
provides  $1,500  million  for  fiscal  1974.  I 
realize  that  the  authorization  has  not 
been  approved,  but  we  propose  to  bring 
to  the  floor  of  the  House  tomorrow  the 
conference  report  on  the  comprehensive 
manpower  bill  which  Includes  a  set-aside 
of  reserve  of  $250  mUiion  for  public  serv- 
ice employment. 

Mr.  Speaker,  my  question  Is.  Will  there 
be  another  supplemental  report  provid- 
ing the  $250  million  for  public  service  em- 
ployees? 

Mr.  MAHON.  Mr.  Speaker,  that  would 
have  to  be  considered  later  in  the  fiscal 
year  but  not  this  session.  This  is  the  final 
supplemental  bill  for  this  session.  It 
would  not  be  In  order  to  appropriate 
funds  for  this  program  because  it  has 
not  been  enacted  into  law.  It  seems  to 
me  that  the  provision  in  amendment  48, 
which  will  continue  appropriation  avail- 
ability for  manpower  training  and  for 
the  Cabinet  Committee  on  Opportunities 
for  Spanish-Speaking  People.  Is  the  best 
we  could  do  under  the  circumstances. 

Next  year,  if  the  manpower  bill  Is  en- 


acted into  law,  we  will  be  in  a  position 
then  to  consider  a  supplemental  esti- 
mate for  what  might  be  necessary. 

Mr.  BRADEMAS.  Mr.  Speaker,  will  Lhe 
gentleman  from  Texas  yield? 

Mr.  MAHON.  I  am  glad  to  yield  to  the 
gentleman  from  Indiana. 

Mr.  BRADEMAS.  Mr.  Speaker,  I  ap- 
preciate very  much  the  willingness  of  the 
distinguished  chairman  of  the  Commit- 
tee on  Appropriations  to  yield. 

Mr.  Speaker,  I  wonder  if  the  chair- 
man of  the  committee  would  allow  me  to 
put  a  question  to  the  distinguished  chair- 
man of  the  Subcommittee  on  Labor-HEW 
appropriations. 

Mr.  MAHON.  The  gentleman  may  ask 
the  question. 

Mr.  BRADEMAS.  Fine.  Mr.  Speaker.  I 
will  direct  the  atention  of  the  chairman 
of  the  committee  to  the  debate  in  the 
House  on  the  supplemental  appropria- 
Uons  bill  on  November  30,  1973,  when  the 
gentleman  from  Texas  (Mr.  Gonzalez) 
ofifered  an  amendment  to  increase  from 
$615  million  to  $650  million  the  amount 
of  money  for  the  basic  State  vocational 
rehabilitation  program. 

In  response  to  the  gentleman  from 
Texas  (Mr.  Gonzauez)  the  gentleman 
from  Pennsylvania  (Mr.  Flood)  in<ii- 
cated  his  opposition  to  the  amendment 


12.->.V^ 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


on  groimds,  to  quote  the  gentleman  from 
Pennsylvania  iMr.  Flood),  that  •Some 
States  are  not  able  to  come  up  with  the 
necessary  matching  funds." 

Then  the  gentleman  from  Pennsyl- 
vania (Mr.  FLOOD)  went  sihead  to  cite 
testimony  of  HEW  witnesses  to  the  ef- 
fect that  there  was  no  problem  about  the 
amounts  of  money  for  ba^ic  grants  under 
the  new  law.  Again,  to  quote  Mr.  Flood 
from  the  House  debate  of  November  30. 
"we  clearly  h&d  the  impression  that  the 
amount  requested  Is  all  that  is  required 
to  make  allotments  on  the  basis  of  the 
authorized  amounts." 

Then  the  gentleman  from  Pennsyl- 
vania iMr.  Flood)  went  ahead  to  advise 
the  House  as  follows:  "If  later  estimates 
from  the  States  at  any  time  show  that 
matching  funds  are  available  so  that  the 
full  amount  of  the  authorization  can  be 
used,  we  expect  that  the  administration 
will  request  a  supplemental  appropriation 
later  In  the  year  " 

The  gentleman  from  Kansas  iMr. 
Shriver>  on  the  minority  side  of  the  sub- 
committee, echoed  the  same  point  of 
view  as  Mr.  Floods  with  respect  to  a 
subsequent  request  for  supplemental 
funds  if  they  prove  necessary. 

Said  Mr.  Shriver,  who  like  Mr.  Flood, 
cited  testimonj'  of  HEW  witnesses  before 
the  appropriations  subcommittee: 

We  dearly  bad  the  impression  that  the 
amount  requested,  the  amount  allowed  In  the 
bill  ts  all  that  Is  required  to  make  allotments 
en  the  baala  of  the  $650  million  authorized 
In  the  authorizing  bUl. 

I  would  emphasize  ftirther  that  If  later 
estimates  from  the  States  of  matching  funds 
are  available  and  the  full  amount  of  authori- 
zation can  be  used,  the  committee  would  ex- 
pect a  supplemental  budget  request. 

Mr.  Speaker,  on  the  10th  of  December, 
in  the  authorizing  subcommittee  which 
I  chair,  in  putting  questions  to  the  Acting 
Commissioner  of  Rehabilitation  Services. 
Mr.  Corbett  Reedy,  I  asked  him  a  ques- 
tion with  respect  to  the  amount  of  money 
necessary  to  be  appropriated  to  match 
available  State  funds  for  fiscal  fe^r  1974 
under  the  basic  program,  and  Mr.  Reedy 
responded:  "$644  million." 

I  then  asked  Mr.  Reedy  and  Mr. 
Dwight,  who  is  the  head  of  the  Social 
Rehabilitation  Service,  if  they  had  made 
that  information  available  to  the  gentle- 
man from  Pennsylvania  <Mr.  Plood).  I 
pointed  out  that  would  have  been  the 
honorable  thing  to  have  done. 

Neither  Mr.  Dwight  nor  Mr.  Reedy  was 
able  to  assure  our  subcommittee  that  in 
fact  they  had  made  available  such  In- 
formation to  the  gentleman  from  Penn- 
sylvania (Mr.  Flood'.  E:xpresslons  of 
concern  with  respect  to  this  entire  mat- 
ter were  also  voiced  on  the  minority  side 
of  the  committee  by  the  gentleman  from 
Minnesota  (Mr.  QtnK>  and  the  gentle- 
man from  Idaho  iMr.  Hansen). 

Therefore,  Mr.  Speaker.  I  want  to  ask 
the  chairman  of  the  committee,  if,  in 
light  of  this  information  developed  sub- 
sequently, that  is.  subsequent  to  the 
hearings  of  the  Subcommittee  on  Appro- 
priations and  subsequent  to  the  vote  In 
the  House  on  the  amendment  offered  by 
the  gentleman  from  Texas  (Mr.  Gon- 
zalez) the  committee  would,  in  light  of 
these  assurances  from  Mr.  Flood  and  Mr. 


Shrivir.  expect  that  the  subcommittee 
would  entertain  favorably  a  supplemen- 
tal appropriations  request  in  order  to 
make  available  adequate  Federal  moneys 
to  match  the  available  State  moneys  for 
the  basic  State  vocational  programs? 

Mr.  MAHON.  Mr.  Speaker.  I  will  re- 
spond briefly  to  the  gentleman's  state- 
ment, and  then  I  will  ask  the  gentleman 
from  Pennsylvania  (Mr.  Flood)  to  re- 
spond. 

The  Committee  on  Appropriations  has 
taken  another  hard  look  at  the  require- 
ments for  appropriations  for  vocational 
rehabilitation.  Of  course,  these  appro- 
priations are  virtually  mandatory  to  the 
extent  that  the  States  qualify  for  match- 
mg  funds  under  the  law  and  regulations, 
and  since  we  got  later  information  just 
prior  to  the  conference  that  an  addition- 
al amoimt  would  probably  be  required, 
we  did  provide  additional  funds  in  this 
conference  report. 

I  believe  the  amount  av-ailable  now  will 
be  about  $630  million  rather  than  the 
$615  million  which  was  provided  in  the 
House  bill. 

So  there  is  no  disposition  on  the  part 
of  the  Committee  on  Appropriations  to 
denj"  the  necessarj'  funds  that  can  be 
spent. 

As  my  friend  knows,  these  funds  have 
to  be  matched,  and  some  States  are  not 
able  to  match  their  full  allotment,  and 
for  that  reason  the  total  amount  of  the 
$650  million  Is  not  required  at  this  time. 

Of  course,  if  It  should  be  required  later, 
and  it  could  be  established,  then  I  am 
sure  the  Committee  on  Appropriations 
would  look  very  favorably  upon  provid- 
ing the  necessary  funds. 

Mr.  Speaker.  I  would  like  to  yield  at 
this  moment  to  the  gentleman  from 
Pennsylvania  (Mr.  Flood),  the  chairman 
of  the  Subcommittee  on  Appropriations 
for  Labor  and  Health.  Education,  and 
Welfare,  for  a  .statement  in  regard  to  this 
matter. 

Mr.  FLOOD.  Thank  you  very  much. 
Mr.  Chairman. 

There  Is  very  little  I  can  add  to  what 
the  distinguished  chairman  of  the  full 
committee  has  .said.  I  recall  very  well  the 
gentleman's  discussion  with  me  on  the 
floor  when  the  supplemental  appropria- 
tion bill  was  before  the  House,  and  what 
he  said  Is  quite  so.  However.  I  was  not 
aware  of  the  discussions  in  the  Commit- 
tee on  Education  and  Labor  that  you  had 
with  the  people  from  downtown.  But 
having  been  around  here  for  awhile, 
after  the  bill  passed  the  House,  and  be- 
fore the  conference  with  the  Senate  I 
did  write  to  the  Secretary.  Mr.  Weinber- 
ger, and,  Mr.  Speaker.  I  ask  unanimous 
consent  to  insert  at  this  point  In  the 
Record  a  copy  of  the  letter  I  sent  him 
raising  this  point. 

The  SPEAKER.  Without  objection,  it 
is  so  ordered. 

There  was  no  objection. 

The  copy  of  the  letter  is  as  follows: 

Deckmbcs    13,   1073. 
Hon.  Caspar  W.  Weinbebccb. 
Secretojy,  Department  of  Health.  Education, 
and   Welfare,   Waahington.  DC. 

Dea«  M«.  Sbcretabt:  During  the  recent 
subcommittee  hearings  on  the  1974  supple- 
mental appropriation  bill,  I  asked  Mr.  D\^lght 


a  series  of  questions  about  the  budget  re- 
quest for  baalc  State  grant*  for  vocational 
rehabilitation.  tJpon  reexamining  the  printed 
hearUig  record.  I  find  that  the  dialogue  Is 
not  entirely  clear  on  the  question  of  the  re- 
lationship of  the  appropriation  request  to 
the  amount  authorized  for  allotment. 

Aa  you  know,  the  House  approved  the 
Committee's  recommendation  of  •615.870.000 
for  baalc  State  grants.  This  Is  the  amount 
requested  In  the  budget.  During  the  heartngs. 
the  Committee  was  Informed  that  State  al- 
lotments for  fiscal  year*  1074  will  be  com- 
puted on  the  basis  of  the  authorized  level 
of  •650.000.000  HUtorlcaUy.  there  have  al- 
ways been  some  States  which  did  not  have 
sufficient  funds  avaUable  to  match  their  fuU 
allotment.  The  Committee  was  led  to  believe 
that  the  reason  the  amount  requested  In 
the  budget  is  below  the  authorized  allot- 
ment level  Is  because  State  matching  funds 
are  not  available,  and  that  the  »615.870.000 
would  be  sufficient  to  meet  Federal  matching 
requirements  under  the  allotment  base  of 
»650,000.000. 

When  the  supplemental  appropriation  bill 
was  considered  by  the  House,  an  amendment 
was  offered  to  Increase  the  appropriation  for 
the  basic  grant  program  to  •650.000.000.  The 
amendment  was  najTowly  defeated,  but  the 
related  discussion  did  raise  some  question 
In  my  mind  about  the  adequacy  of  the 
budget. 

Since  the  Senate  has  Included  the  full 
•650,000.000  In  the  supplemental  appropri- 
ation bill.  I  would  appreciate  some  clarifica- 
tion from  you  about  the  allotment  level  vis- 
a-vls  the  appropriation  request.  Specifically, 
I  would  Uke  to  know  whether  the  amount 
requested  Is  sufficient  to  match  the  amounts 
which  the  States  are  prepared  to  spend  In 
fiscal  year  1974  under  the  allotment  of 
•650.000.000.  If  not,  what  additional  amount 
ts  required,  and  do  you  plan  to  seek  a  sup- 
plemental appropriation  to  provide  the  nec- 
essarr  Federal  funds? 

The  Committee  may  need  this  informa- 
tion very  quickly  so  I  would  appreciate  a 
prompt  reply. 

Sincerely, 

Daniel   J.   Flood. 
Chairman.  Lahor-HEW  Subcommittee. 

Mr.  PLOOD.  I  wlU  not  read  the  whole 
letter,  but  I  might  read  this: 

When  the  supplemental  appropriation  bill 
was  considered  by  the  House,  an  amend- 
ment was  offered  to  Increase  the  appropria- 
tion for  the  basic  grant  program  to  $850,- 
(X)0.0(X).  The  amendment  was  narrowly  de- 
feated, but  the  related  discussion  did  raise 
some  question  in  my  mind  about  the  ade- 
quacy of  the  budget. 

Since  the  Senate  has  Included  the  full 
$650,000,000  In  the  supplemental  appropria- 
tion bill.  I  would  appreciate  some  clarifica- 
tion from  you  about  the  allotment  level  vls- 
a-vls  the  appropriation  request.  Specifically. 
I  would  like  to  know  whether  the  amount 
requested  Is  sufficient  to  match  the  amounts 
which  the  States  are  prepared  to  spend  In 
fiscal  year  1974  under  the  aUotment  of  $660,- 
000.000.  If  not,  what  additional  amount  Is 
required,  and  do  you  plan  to  seek  a  supple- 
mental appropriation  to  provide  the  neces- 
sary Federal  funds? 

I  received  a  reply,  and  I  suppose  quite 
properly  so,  to  that  letter  from  Mr.  Car- 
luccl,  the  Under  Secretary  of  Health,  Ed- 
ucation, and  Welfare. 

I  ask  unanimous  consent.  Mr.  Speaker, 
to  insert  at  this  point  in  the  Record  a 
copy  of  that  letter. 

The  SPEAKER.  Without  objection.  It 
Is  so  ordered. 

There  was  no  objection. 

The  copy  of  the  letter  is  as  follows: 


December  19,  1973 


CONGRESSIONAL  RECORD— HOUSE 


42557 


\ 


Thx  Secrktakt  of  Health, 

Eddcation,  and  Wbltare, 
Washington,  D.C.,  Deceml)er  14. 1973. 
Hon.  Danixl  J.  F^ood, 

Chairman,     Subcommittee     on     Labor    and 
Health,  Education,   and   Welfare,   Com- 
mittee  on   Appropriations,    Washington 
DC. 
Dkab   Mk.   Flood:    This   Is   In   response   to 
your  letter  of  December   13  concerning  the 
relationship  of  the  appropriation  request  for 
basic  State  grants  for  vocational  rehablliu- 
tlon  to  the  amount  authorized  for  allotment 
for  fiscal   year   1974.   The  Department  sub- 
mitted a  revised  budget  request  for  $615,870,- 
000.  The  level  authorized  for  allotment  In  the 
RehabUltatlon  Act  of  1973  Is  $650,000,000. 

When  we  discussed  our  fiscal  year  1974  ap- 
propriation with  you  on  November  6,  1973  at 
the  hearing  on  our  request  for  supplemental 
appropriations  for  Rehabilitation  Services. 
we  assumed  that  State  requests  for  funds  for 
Section  110  of  the  Rehabilitation  Act  would 
be  met  by  the  revised  budget  request  of 
•615.870.000,  which  Includes  an  Increase  of 
•26  million  above  the  fiscal  year  1973  level. 
It  Is  Important  to  bear  in  mind  that  our 
regular  appropriations  bUl,  on  which  Con- 
gress has  completed  action,  also  contains 
other  substantial  Increases  for  State  rehabU- 
ttatlon  programs.  The  Supplemental  Secu- 
rity Income  Program  will  provide  State  Re- 
habUltatlon Agencies  with  an  additional  $26 
million  to  purchase  rehabUltatlon  services 
for  disabled  SSI  recipients.  Another  $24  mil- 
lion Increase  will  be  avaUable  to  the  State 
RehabUltatlon  Agencies  from  the  DlsabUlty 
Insurance  Trust  Fund.  Thus,  the  total  In- 
crease In  Federal  funds  for  these  programs 
in  1974  wiu  be  about  $76  million. 

However,  with  respect  to  our  pending  re- 
quest for  funds  under  the  basic  State  grant 
program,  there  are  Indications  that  the 
States  may  have  funds  avaUable  under  the 
$650  mUUon  aUotment  to  match  up  to  $837 
mUllon  In  basic  State  grant  funds  for  voca- 
tional rehabilitation.  The  State  estimates  are 
tentative  and  we  have  not  yet  determined 
that  the  States  can  use  funds  above  the  level 
of  the  current  Department  request  for  ap- 
propriations. As  soon  after  the  first  of  the 
calendar  year  as  these  estimates  can  be  more 
precisely  evaluated,  we  vrtU  take  another 
look  at  our  budget  request.  If  these  State 
estimates  prove  not  to  be  overestimated,  we 
wiU  at  that  time  consider  the  need  for  a 
further  supplemental. 

Olven  the  uncertainty  of  actual  State  re- 
quirements plus  the  large  Increases  already 
requested,  we  would  urge  you  to  support  the 
level  contained  In  the  House-passed  supnie- 
menUlbUl.  ^^ 

I  continue  to  feel  that  the  total  Increase 
In  fiscal  year  1974  funds  for  vocational  re- 
habUltetlon  reflects  a  continuing  Depart- 
ment commitment  to  substantial  growth  in 
these  effective  and  deserving  programs,  i 
trust  this  Information  responds  to  your  re- 
quest. 

Sincerely, 

Frank  Carlttcci, 

Under  Secretary. 

Mr.  FLOOD.  What  he  says  is : 
However,  with  respect  to  our  pending  re- 
quest for  funds  under  the  basic  State  grant 
program,  there  are  indications  that  the 
States  may  have  funds  available  imder  the 
•660  mlUlon  allotment  to  match  up  to  $637 
mllUon  In  basic  State  grant  funds  for  voca- 
tlonal  rehabilitation.  The  State  estimates 
are  tentative  and  we  have  not  yet  deter- 
mined that  the  States  can  use  funds  above 
the  level  of  the  current  Department  request 
for  appropriations.  As  soon  after  the  first 
of  the  calendar  year  as  these  estimates  can 
be  more  precisely  evaluated,  we  wUl  take 
another  look  at  our  budget  request.  If  these 
State  estimates  prove  not  to  be  overesti- 
mated, we  will  at  that  time  consider  the  need 
for  a  further  supplemental. 


My  position  Is  just  as  It  was  when  I 
talked  to  the  gentleman  before.  There  is 
no  doubt  in  my  mind  from  what  you  have 
just  told  the  House  here  as  to  what  the 
facts  are.  I  apparently  did  not  have  as 
much  information  as  you  have,  and  I 
would  certainly  feel— and  I  cannot  Imag- 
ine, those  being  the  facts,  that  I  would 
feel  any  different — that  with  the  1975 
budget  Itself  would  come  a  request  for 
a  1974  supplemental  appropriation  the 
ver>-  same  day  assuming  the  facts  that 
the  gentleman  set  forth. 

Mr.  BRADEMAS.  Mr.  Speaker,  I  thank 
the  distinguished  gentleman  from  Penn- 
sylvania for  his  response,  and  I  also 
thank  the  distinguished  chairman  of  the 
committee  for  his  response.  I  am  grateful 
for  their  assurances  that  the  Committee 
on  Appropriations,  to  quote  its  distin- 
guished chairman,  "would  look  very  fa- 
vorably upon  providing  the  necessary 
funds"  to  match  available  State  moneys 
for  the  basic  State  vocational  rehabilita- 
tion program  if  such  additional  funds 
should  be  required  to  match. 

I  ask  unanimous  consent  to  revise  and 
extend  my  remarks  and  include  as  a  part 
thereof  certain  passages  from  the  tran- 
script of  the  committee  hearings  to 
which  I  already  alluded. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from 
Indiana? 

There  was  no  objection. 
Mr.  BRADEMAS.  I  believe  it  important 
to  note.  Mr.  Speaker,  that  the  amount  of 
money  for  the  basic  State  program  for 
fiscal  1974  in  the  authorizing  bill  signed 
by  the  President  In  September  1973  T*-as 
$650  million.  Nonetheless,  the  adminis- 
tration budget  request — the  revised  re- 
quest— for  this  program  was  $615,870,000. 
Yet  it  is  clear  from  the  response  of 
December  10,  1973,  of  the  man  who  was 
actually  running  the  program,  the  Acting 
Commissioner  of  Rehabilitation  Serv- 
ices, Mr.  Corbett  Reedy,  that  the  amount 
of  money  necessary  to  be  appropriated 
to  match  available  State  moneys  for  fis- 
cal 1974  is  $644  million,  actually,  "slight- 
ly higher,"  to  quote  him,  than  $644  mil- 
lion. 

Now  Mr.  Carlucci,  in  his  letter  to  Mr. 
Flood,  uses  a  figure  of  $637  million. 

Mr.  Speaker,  It  must  be  clear  from 
these  different  responses  that  Members 
of  the  House  are  receiving  from  officials 
of  the  Department  of  Health,  Education, 
and  Welfare  that  all  of  us,  and  especially 
those  on  the  authorizing  and  appropri- 
ations subcommittees  that  deal  with  the 
vocational  rehabilitation  program,  must 
look  with  a  very  skeptical  eye  at  the  in- 
formation we  are  receiving. 

This  is  a  most  important  matter  be- 
cause, obviously,  members  of  the  appro- 
priations committee  must  depend  on  ac- 
curate data  from  HEW  in  order  to  make 
recommendations  to  the  House  for  ap- 
propriations on  a  program  vital 'to  the 
lives  of  so  many  handicapped  Americans 
and  their  famihes. 

So  in  order  that  Members  of  the 
House  have  a  clearer  picture  of  the  con- 
cern which  I  have  been  expressing,  I  here 
insert  part  of  the  transcript  of  the  hear- 
ings December  10.  1973.  of  the  Select 
Education  Subcommittee  of  the  Commit- 


tee on  Education  and  Labor  on  the  future 
directions  of  the  Rehabilitation  Ser\-ices 
Administration.  The  hearings  involved 
testimony  by  James  S  Dv.ight,  Jr.,  Ad- 
ministrator, Social  and  Rehabilitation 
Service,  and  Corbett  Reedy.  Acting  Com- 
missioner, Rehabilitation  Services  Ad- 
ministration. 

The  materisd  to  which  I  have  referred 
follows : 

Mr.  Bradimas.  This  question  follows  one  of 
our  earlier  conversations.  Mr.  Dwight,  In 
respect  of  the  basic  SUte  Grant  Program 
authorized  by  Title  I  of  the  RehabUltetlon 
Act  of  1973.  The  Administration's  1974  re- 
quest for  this  program  was  $609  mUllon,  ap- 
proximately a  $20  million  Increase  over  the 
1973  esUmate  and,  then,  an  additional 
amount  was  added  to  cover  the  grandfather 
clause  with  the  result  that  the  revised  budg- 
et request  was  a  total  of  $615  mUUon  to  carry 
out  Title  I  of  the  basic  State  program.  Why 
was  such  a  small  increase  requested? 

Mr.  Dwight.  I  think  there  are  perhaps  two 
other  provisions  which  at  least  bear  on  my 
consideration  and  I  am  not  sure  I  can  recall 
the  exact  figures  but  your  recollection  is  cor- 
rect on  the  basic  grants.  The  other  two  are 
the  new  program  which  stemmed  from  the 
commencement  of  the  SSI  program  for 
adults  and  then,  the  continuing  program 
deaUng  with  SSI  backing  their  trust  fund 
activities  which  added  about  another  $50 
mlUlon  Increase  into  rehabUltatlon  activi- 
ties at  the  State  level. 

As  you  look  at  that,  even  with  the  slgnU- 
Icant  reduction  In  training  activities  coming 
along,  that  we  discussed  a  week  ago  Friday, 
we,  I  think  find  somewhere  In  the  order  of 
magnitude  of  a  little  over  a  12  percent  in- 
crease In  actual  rehabUltatlon  dollars  avaU- 
able which  seems  to  me  to  be  a  fairly  healthy 
increase  If  your  objective  Is  sustained  order- 
ly growth  In  the  program  which,  as  I  in- 
dicated earlier,  I  think  Is  a  sound  obJecUve 
Mr.  BRADEMAS.  Mr.  Dwight.  let  me  make 
this  comment  on  your  response,  because  I 
think  it  is  Unportant  that  as  we  discuss  the 
basic  program  this  morning,  we  understand 
how  It  works.  As  you  know,  the  rehabUlta- 
tlon legislature  has  been  unique  In  that  the 
state  allotments  are  based  not  on  appro- 
priations but  rather  on  the  funds  authorized 
to  be  appropriated  and,  In  effect,  this  fea- 
tiore  amounts  to  an  entitlement  for  reha- 
bUltatlon purposes,  provided  that  the  Indi- 
vidual States  appropriate  ithe  necessary 
matching  funds. 

What  this  means.  In  effect,  is  that  we  have 
given  the  States  an  enormous  incentive  to 
approprute  the  matching  funds,  and  this  Is 
one  of  the  reasons  I  think  most  of  us  are 
agreed,  as  I  believe  you  are  and  I  am,  that 
the  rehabUltatlon  program  has  proved  to  be 
one  of  the  most  successful  State-Federal 
programs. 

But,  Mr.  Dwight,  because  this  Administra- 
tion has  not  been  requesting  enough  Pedf-ral 
money  necessary  to  meet  the  States  match- 
ing funds,  we  now  find  ourselves  In  the 
astonishing  ppsltlon  whereby  the  Federal 
Government  has  not  appropriated  enough 
money  to  match  the  funds  that  have  been 
raised  by  the  States. 

I  understand  that  last  year  fully  43  Stares 
had  funds  for  which  the  necessarv  matching 
Federal  monies  were  not  avaUable,  and  that 
the  year  before  that,  fiscal  1072,  25  Stetee 
appropriated  more  money  than  the  Federal 
Government  could  match.  So  we  are  m  the 
curious  situation  here  where  the  States  seem 
to  be  doing  their  job  In  re^)ect  of  providing 
monies  for  vocational  rehabUlUtlon  but  the 
Federal  Government  Is  not  doing  lt8~)ob 
FlnaUy,  I  would  observe  that  although  we 
have  been,  as  you  suggest,  expanding  these 
programs  In  the  past  years,  and  although 
more  handicapped  persons  are  being  rehabUl- 
tated  every  year,  you  know  as  well  as  I,  that 
the  number  of  handicapped  persons  In  the 


12558 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


United  States  Is  Increasing  rather  than  de- 
^  creasing,  so  the  result  has  been  that  the  per- 
centage of  handicapped  persoiis  who  are  be- 
ing served  Is  going  down. 

Realizing  the  budgetary  measures  to  which 
you  made  refereace.  I  recall  that  Mr.  Reedy. 
In  hta  testimony  before  the  Labor-HEW  Ap- 
propriations Subcommltte  in  the  House  body, 
said  that  at  least  4  million  handicapped  per- 
sons In  the  United  States  are  not  receiving 
service. 

I  don't  want  to  misrepresent  these  several 
Issues,  but  If  X  am  mistaken  In  what  I  have 
said.  Mr  Dwlght.  I  hope  you  will  straighten 
m«  C'lt  here. 

Mr  DwiGHT.  I  believe  that  your  informa- 
tion la  largely  accurate.  That  Is  what  I  was 
alluding  to  earlier  In  this  hearing.  As  far  as 
I  know  myself,  and  Corbett  would  like  to 
amplify  this  himself.  I  don't  think  you  can 
reach  the  conclusion  that  4  million  persona 
are  not  being  served  for  several  reasons. 

Some  disabled  persons  cannot  benefit  from 
rehabilitation.  I  don't  know  what  that  con- 
clusion might  be 

Secondly,  this  program  is  not  the  onlv  way 
in  which  peopl3  can  be  rehabilitated  By 
that.  I  mean  there  are  other,  private  sources 
and  some  people  go  through  a  process  of  re- 
habllitaUon  without  any  assistance  from 
anybody  else.  The  outward  bounds  of  dis- 
abled persons,  l.e  .  the  estimated  5  million. 
Is  at  bes:  an  Imprecise  measure  but  perhaps 
you  are  trying  to  make  the  point  that  If 
more  funds  were  available,  then,  more  people 
could  be  sen-ed. 

My  Mew  Is  that  Governmental  programs  do 
not  work  well  when  they  take  large  quantum 
Ju'.ips  and  It  would  seem  to  n:e  a  !2  percent 
Increas?  Is  about  as  much  as  a  progrim  can 
rationally  handle  If  It  Is  on  a  sustained- 
growth  pattern. 

Mr.  BiiA.^CMAS.  Sometime — not  this  morn- 
ing— sometime  I  would  like  to  get  Into  a 
colloquy  with  you  on  generalizations  such  as 
"Government  programs  don't  work  very  well 
when  they  make  quantum  Jumps  and  12  per- 
cent Is  al>out  a  rational  increas"  I  am  JuU 
hardheaded  enough  to  want  to  know  what 
the  rationale  U  for  eenerillaatlons  of  that 
kind   Mr   Reedy? 

Mr  Resdt  Mr  Chairman,  the  estimates  to 
which  you  referred  that  we  presented  at  the 
appropriations  hearings  of  the  House  sub- 
cocomlttee  wer»  derived  from  our  long-range 
planning  last  fall  In  which  we  used  1970  cen- 
sus figures  showing  that  there  were  11.900.- 
000  disabled  F>«^ons  In  the  age  group  be- 
tween 16  and  64  that  had  significant  disabili- 
ties. 

We  reasoned  through  pure  estimating 
process,  that  half  of  those  ore  engaged  in 
suitable  work  or  have  made  their  vocational 
adjustment,  leaving  roughly  six  million  dis- 
abled persons  not  In  Institutions  who  would 
be  potential  candidates  for  rehabilitation 
service. 

Taking  t*c-thirds  of  that  number  which 
would  be  four  million,  we  think  these  could 
be  solid  candidates  for  which  a  successful 
rehabilitation  outcome  could  be  expected.  So, 
In  vie  (,  of  ttie  fact  that  our  prosram  In  1973 
flacfcl  year  was  able  to  erroll  for  the  first 
time,  one  million  people  for  the  entire  year 
and  actually  pnv.de  hard  «»n-lce  for  around 
650  000  of  that  million,  rehabilitating  380- 
000.  then,  we  have  established  a  broad  eip 
between  the  most  conservative  estimate  de- 
rived from  the  so^irces  I  clte<1  and  the  level 
of  the  program  at  the  present  time 

We  do  point  out  that  the  census  flgurea 
did  rot  include  disabled  persons  In  Institu- 
tions and  we  have  developed  a  substantial 
rehabilitation  effort  in  institution*  serving 
the  chronically  til  and  disabled  and  there- 
fore, I  would  add  thoae  to  the  four  million 
previously  cited  bringing  it  ro'i^hly  to  the 
Ave  million  groiw  entlmate. 

Mr  BBAonfAS  Of  thoae  Ave  million,  how 
many  would  you  eatimate  could  be  served  by 


non-Governmental  or  privately  supported  vo- 
cational rehabilitation  service? 

Mr,  RzzsT.  That  Is  extremely  hard  to  give 
you  a  good  Impression  but  I  would  doubt 
that  the  private  sector  in  terms  of  compre- 
hensive rehabilitation  service  as  we  attempt 
them  under  the  public  program,  would  be 
reaching  more  than  200.000  to  260.000  a  year. 
Mr,  Braocmas.  That  Is  a  rather  small  frac- 
tion, then,  of  the  overall  universe  of  need, 

Mr.  RzxDT.  There  Is  today  a  close  relation- 
ship between  the  private  sector  and  the  pub- 
lic program  which  has  been  deliberately 
developed  In  recent  years  In  which  they 
,ict',:ally  team  up  very  frequently  to  serve  a 
common  client  In  which  part  of  the  service  is 
given  by  the  private  facility  or  under  private 
financing  and  services  are  supplemented 
through  the  pi:bllc  program  and  through  the 
other  program  financing. 

Mr  Braoxu AS,  Mr.  Dwlght,  to  continue  my 
U'^e  of  questioning  with  respect  to  the  Title 
1  basic  program,  you  will  recall  that  our  col- 
league. Congressman  Gonzalez  of  Texas, 
moved  a  few  days  ago  to  amend  the  supple- 
mental appropriations  bill  to  increase  the 
appropriation  for  carrying  out  the  State  pro- 
gram from  »815.870.000  to  teSO  million  which 
is  the  amount  authorized  In  law — and  I  am 
sure  you  are  aware  that  that  move  was  de- 
feated by  only  four  votes. 

It  Is  very  diScult  to  get  the  House  to  ac- 
cept amendments  to  an  appropriations  bill 
so  when  you  come  within  four  votes,  that  is 
very  significant.  One  of  the  reasons,  however, 
Mr,  Dwlght.  that  that  Amendment  did  not 
carry  was  the  fact  that  the  distinguished 
Chairman  of  the  subcommittee.  Mr.  Flood, 
indicated  that  he  was  under  the  Impression 
that  the  committee  was  recommeadlng  all 
the  appropriations  that  were  necessary  to 
meet  and  match  available  State  monies  and 
here  Is  what  Mr.  Flood  said,  and  I  quote  him 
from  the  debate  on  the  Gonzalez  Amend- 
ment: "Some  States  are  not  able  to  come  up 
with  the  necessary  matching  funds.  Where 
this  Is  the  case.  It  would  not  be  necessary  to 
appropriate  the  full  authorization.  I3o  not 
members  kno-.v  that  we  kn:w  this?  In  the 
hearings,  we  spent  a  great  deal  of  time  on 
that  spe:rlflc  subject  for  Just  this  purpose. 
We  thought  there  might  be  a  problem  In  the 
amount?  for  basic  gran's  under  the  new  law" 

Mr.  Flood  continued:  "The  HETW  witnesses 
saw  no  problem  and  they  planned  to  compute 
and  made  the  allotments  on  the  basis  of  t^e 
authorization  and  the  amount  that  was  re- 
qrested  We  clearly  had  the  Impression  that 
the  amount  requested  Is  all  that  Is  required 
to  make  allotments  on  the  basis  of  the 
authorized  amount." 

Mr  Flood  went  on: 

"Wow  let  me  <ay.  Mr  Chairman,  and  let 
me  tell  the  members  of  the  committee  and 
my  friends,  we  know  whereof  we  speak  be- 
lieve me  If  later  estimates  from  the  States 
at  any  time  show  that  matching  funds  are 
available  so  that  the  full  amount  of  the  au- 
thorization C4U1  be  used,  we  expect  that  the 
.Administration  will  request  a  supplemental 
apnropriation  later  in  the  year." 

Mr  Dwlght.  what  is  the  amount  of  money 
necessary  to  be  appropriated  to  match  avail- 
able State  monies  for  fiscal  1974? 

Mr.  DwTCHT  t  am  under  the  Impression 
that  that.  If  our  estimates  are  correct,  would 
be  somewhere  in  the  order  ot  magnitude  of 
•640  million  or  thereabouts, 

Mr.  BaxoEMAS  Mr  Reedy,  what  la  your 
ansTi-er  to  that  question? 

Mr  RcAOT  It  la  the  same  We  receive  from 
the  States  each  spring  a  document  called, 
"Program  and  Financial  Plan",  one  Item  of 
which  Is  an  estimate  of  State  funds  available 
for  matching  and  when  we  added  thoae  esti- 
mates from  State  financial  program  and  fi- 
nancial plans  projected  for  fiscal  1974,  the 
amount  waa  M44  million. 

Mr    BSAOCMAS    •444  million.  Waa  thta  tn> 


formation    made    available,    Mr.    Dwlght,    to 
Mr.  Flood? 

Mr.  DwicHT.  I  am  not  sure  whether  that 
came  up  in  the  course  of  conversation  or  not. 
We  have  to  check  the  transcript.  My  best  rec- 
ollection Is  that  it  did  but  I  cannot  say. 

Mr.  Braoemas.  Mr.  Reedy. 

Mr.  RzxoT.  I  do  not  recall  this  specific 
point  having  been  raised  In  the  hearing.  We 
will  have  to  check  further  to  verify  this. 

Mr.  BRAOKUAa,  I  would  suggest  most  re- 
spectfully, Mr.  Dwlght,  that  In  view  of  the 
unique  feature  of  the  vocational  rehabilita- 
tion legislation,  which  unique  feature  I  re- 
marked upou  earlier,  namely,  that  States 
look  to  the  authorizing  figures,  not  the  ap- 
propriations figures.  In  order  to  make  Judg- 
ments on  how  much  money  they  are  going 
to  have  to  appropriate  for  matching,  you 
have  a  responslbUlty  to  give  accurate  infor- 
mation to  the  committees  of  Congress  on 
that  matter.  And  I  wonder  if  you  feel  you 
misled  Mr.  Flood  In  any  way  on  this  matter? 
It  Is  quite  clear  you  are  not  In  agreement 
here  among  yourselves  on  what  the  figures 
are, 

Mr.  DwicHT.  I  think  the  figure  Mr,  Reedy 
quoted  Is  the  accurate  figure.  I  can  only 
speak  from  experience  In  one  State  and  the 
only  thing  that  we  ever  paid  any  attention 
to  was  the  amount  which  was  appropriated 
or  the  amounts  under  consideration  in  the 
appropriations  process  In  governing  the  pro- 
grams In  the  State  of  which  I  was  a  part, 

I  understand  that  it  Is  quite  commonplace 
that  the  authorization  levels  are  extremely 
iQ  excess  oX  the  amounts  that  are  actually 
appropriated  by  the  Congress.  In  fact,  I  am 
reminded  of  a  story  that  I  have  heard  Secre- 
tary Richardson  indicate  on  several  occasions 
and  that  is  that  If  the  programs  in  the  De- 
partment of  Health,  Education,  and  Welfare 
were  fully  funded,  that  the  annual  Federal 
cost  of  those  programs  would  be  somewhere 
near  $250  billion,  which  Is  an  amount  ap- 
proximately equivalent  to  the  entire  budget 
of  the  U.S. 

Mr  Braoemas.  Mr,  Dwlght.  bow  long  have 
you  been  in  your  Job? 

Mr,  DwiGHT,  Six  months,  approximately, 

Mr,  Braoemas.  I  have  tried  to  be  very  re- 
strained here  this  morning  but  I  am  rather 
embarrassed  to  hear  you  say  what  you  have 
Just  Bald,  I  am  embarrassed  for  you.  be- 
cause if  you  listened  to  what  I  said  earlier, 
there  is  a  unique  feature  to  this  legislation. 

I  pointed  out  earlier — I  will  Just  quote 
what  I  said— "As  you  know.  rehabUlUtlon 
legislation  has  been  unique  and  the  State 
allotments  are  based  not  on  appropriations 
but  on  the  funds  authorized  to  be  appro- 
priated," 

Lf  you  don't  have  that  straight  In  your 
mind  yet,  you  really  are  going  to  be  In  deep 
trouble  in  even  understanding  the  program 
for  which  you  have  administrative  responsl- 
bUlty. So  you  aee,  if  you  really  beUeve  what 
you  said  a  minute  ago  about  the  relation- 
ship between  authorized  and  appropriated 
amount,  as  a  cJiaracterlstlc  of  the  program 
which  we  have  been  discussing  In  these  sev- 
eral  hearings,  then.  It  is  small  wonder  to  me 
that  you  have  had  such  a  difficult  time  in 
appreciating  the  thrust  of  some  of  my  ques- 
tions. 

Do  you  understand  what  I  am  saying  or 
are  you  not  clear  yet?  I  Just  want  to  be  sure 
you  understand  what  we  are  talking  about 
here.  Otherwise.  I  am  going  to  have  a  hard 
time  making  my  questions  understandable. 

Mr.  DwtoHT  I  understand  up  until  the  year 
we  are  !n.  1974.  that  it  waa  necessary  in  the 
appropriations  planning  to  use  a  figure  which 
was  different  than  the  amount  appropriated, 
waa  different  than  the  amount  appropriated, 
which  was  to  be  used  as  a  basis  for  allotlng 
f'lnds  among  the  States  and  the  law  which 
was  parsed  and  Pigned  In  September  provid- 
ing that  basin  in  law  rather  than  requiring  It 
to  be  placed  in  the  appropriation  language  is 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


a  new  feature  In  this  program.  I  assume  that 
la  what  you  are  tajking  about. 

Mr.  Bradiemas  That  is  not  responsive  to 
the  point  I  ana  trying  to  make.  Mr  Dwlght. 
but  I  am  not  going  to  take  more  time  on  this 
particular  nmlter  now. 

Mr,  QriE    Will  the  gentleman  yield? 

That  leaves  me  befuddled  because  I 
thought  we  left  the  law  exactly  the  way  It 
had  been  before  Now,  it  is  true  before  the 
authorizing  figure  was  so  much  higher  than 
that  which  was  recommended  to  be  appro- 
priated and  that  the  Appropriations  Commit- 
tee actually  appropriated  as  well,  that  they 
brought  the  authorization  figure  down  in  the 
appropriation  bUl  in  order  that  it  could  op- 
erate properly  but  It  is  my  understandlna 
the  law  is  the  same 

It  lE  Just  that  the  authorization  figure 
was  not  so  far  out  of  line  from  what  was 
appropriated  that  now  it  was  not  necessary 
for  the  Appropriations  Committee  to  set  a 
lower  authorization  figure 

Mr  DwicHT  That  is  correct, 

Mr  Brademas  There  Is  a  statement  I 
understand,  that  Senator  Cranston  has  put 
In  the  Congreasional  Record  within  the  last 
month  that  goes  into  this  admittedly  com- 
plicated arrangement  in  respect  of  this  leg- 
islation ° 

Mr  Dwlght,  I  note  that  on  Friday  last,  the 
Senate  ApproprlaUons  Subcommittee  ap- 
proved an  Increase  In  the  basic  program  of 
approximately  tas  muiion  bringing  the  total 
basic  program  to  the  full  authorization  of 
•650  minion. 

Does  the  Administration  intend.  In  light 
of  our  dlacuselons  here,  to  endorse  this  In- 
crease? 

Mr,  DwtcHT.  I  would  think  not,  Mr,  Chair- 
man The  proposal  of  the  AdminlstraUon 
stands  as  we  made  it  approximately  three 
weeks  ago  for  this  $650  million.  The  ques- 
Uon  which  was  put  In  the  Congressional 
Record  by  Senator  Cranston  which  in  es- 
sence was  a  legal  opinion  that  the  funds 
authorized  in  the  sututes  created  an  en- 
titlement on  the  part  of  the  States  and 
thus  would  bypass  the  appropriations  proc- 
ess for  this  partlctUar  program— that  is  in 
essence  what  Senator  Cranston  is  talking 
about  " 

Mr  Brademas  Let  me  go  back  to  what  Mr, 
Flood  said  because  Mr  Flood  clearly,  in  his 
statement  on  the  Floor  last  week  in  opposi- 
tion to  the  Gonzalez  Amendment  remarked 
that  the  HEW  witnesses  saw  no  problem  on 
this    particular    matter, 

Mr  DwicHT  That  Is  correct, 
Mr.  Braoemas.  And  said,  here  again  I  am 
quoting  Mr  Flood,  "We  clearly  had  the  Im- 
Pf«"«on"— he  Is  alluding  to  the  HEW  wlt- 
neaoes — "That  the  amount  requested  Is  all 
that  is  required  to  make  allotments  cmi  the 
basis   of    the    authorized    amount" 

Then,  he  went  ahead  to  say,  and  again  I 
am  quoting  Mr.  Flood  as  I  did  earlier,  "Let 
me  say,  Mr  Chairman,  and  let  me  teil  the 
members  of  the  committee" — here  he  is  re- 
ferring to  the  committee  of  the  whole 
House— "and  my  friends  we  know  whereof 
we  speak,  believe  me  If  later  estimates  from 
the  SUte  at  any  time  show  that  matching 
funds  are  available  so  that  the  full  amount 
of  the  authorization  can  be  used,  we  expect 
that  the  administration  will  request  a  sup- 
plemental appropriation  later  in  the  year." 
Mr  Flood,  who  is  an  Important  man  in 
these  matters,  is  standing  out  before  the 
House  of  Represenutlves  obviously  relying 
on  what  he  has  been  told  by  the  Department 
of  HEW.  and  he  said  and  I  quote  again,  ""We 
clearly  had  the  impression  that  the  amount 
requested  —that  means  the  amount  re- 
quested by  you,  Mr  Dwlght— -the  amount 
allowed  in  the  Bill  is  all  that  Is  required  to 
make  allotmenU  on  the  basis  of  the  »«fi0 
million  authorized  In  the  authorizing  BUI. 

Said   Mr    Flood,   "If   later  estimates   from 
the  SUte*  at  anytime  show  that  matching 
funds  are  available  so  that  the  full  amount 
OXIX 2680— Part  33 


of  the  authorization  can  be  used,"  the  com- 
mittee would  expect  a  supplemental  budget 
request, 

Mr,  Dwlght,  What  I  want  to  know  is, 
are  you  going  to  ask  for  a  second  supple- 
mental If  Congress  does  not  appropriate  the 
full  tfiSO  million  necessary  to  meet  the  Fed- 
eral obligation  to  match  the  funds  made 
BvaUable    by    the   Stales? 

Mr.  DwicHT  Mr  Chairman,  I  cannot  make 
a  Judgement  as  to  whether  we  wUl  or  wont. 
In  the  past  we  .have  requested  supplementals 
Obviously  the  plans  of  the  various  States 
would  be  an  important  consideration  in  our 
determination  of  whether  we  should  initiate 
a  request  for  a  supplemental  but  that  L'^  a 
Judgment  that  I  am  going  to  have  to  decide, 
the  Commissioner  is  going  to  have  to  decide 
the  Secretary  Is  going  to  have  to  decide  and 
the  people  who  are  Involved  In  that  kind  of 
consideration  before  It  goes  to  Congress  and 
how  much  the  Congress  would  have  to  con- 
sider If  we  requested  a  supplemental, 

Mr.  Brademas,  Clearly  Mr,  Flood  Is  operat- 
ing on  the  assumption  that  you  have  been 
glvtag  hUn  the  truth  and  I  think  he  Is  going 
to  be  very  upset  because  he  opposed  the 
Gonzalez  amendment,  as  I  have  reiterated 
here, 

I  will  stop  now  and  yield  to  the  genUeman 
from  Minnesota  for  such  questions  as  he  may 
wish  to  put, 

Mr  Qtth,  On  that  subject,  was  Mr.  Flood 
speaking  for  HEW  or  was  he  Jxist  giving  his 
expectation? 

Mr,  DwiGHT  Congressman  Qule,  I  had  no 
discussions  with  Congressman  Flood  so  I 
cannot  speak  from  my  own  personal  knowl- 
edge. The  statements  that  he  made,  I  think 
are  largely  consistent  with  the  testimony 
that  we  presented  to  his  subcommittee.  We 
did  say  that  the  amounts  being  requested 
were  adequate  to  meet  the  program  needs 
In  our  Judgement, 

I  am  sure  we  said  that  because  otherwise 
we  would  have  had  a  little  trouble  supporting 
what  we  were  recommending,  I  have  no  re- 
collection of  any  discussions  with  the  Ap- 
prlatlons  Subcommittee  of  whether  or  not 
there  would  be  supplementals.  Do  you  Cor- 
bett? 

Mr.  RxKDT.  Not  that  I  recall. 
Mr.  Brademas.  IX  the  genUeman  would 
yield,  I  would  Just  observe  that  Mr,  Flood 
Is  a  very  busy  man,  too,  and  that  he  has  to 
rely  on  you  to  give  him  the  mformation  nec- 
essary for  his  subcommittee  to  make  their 
Judgments,  and  I  should  have  thought  that 
It  would  have  been  the  right  cour«  of  action 
for  you  to  have  tupplled  to  Mr.  Flood  accu- 
rate, up-to-date  information  on  the  amount 
of  State  matching  monies  avaUable  That 
would  have  been  the  honorable  thing  to 
have  done 

Mr.  DwicHT.  Mr,  Chairman,  I  do  not  per- 
ceive the  role  In  this  program  or  any  other 
program  to  be  merely  i^proprUtlng  funds 
necessary  to  match  what  the  States  may  or 
may  not   appropriate  themselves 

Mr  QtTTE  The  question  leaves  me  In  doubt 
I  notice  Mr,  Shrlver  also  spoke  of  discussions 
In  the  hearings  with  HEW  and  he  said,  "We 
clearly  had  the  impression,  the  amount  re- 
quested, the  amount  allowed  in  the  BUI  is  aU 
that  U  required  to  make  allotments  on  the 
basis  of  the  »650  million  authortwd  In  the 
authorizing  BUI." 

Mr.  FLOOD,  The  conferees  agreed  to 
$630,000,000  for  vocational  rehabUitation 
basic  grants.  The  House  bUl  Included 
$615,870,000  and  the  Senate  bill  Included 
$650,000,000,  so  the  amount  agreed  to 
by  the  conferees  Is  a  fair  compromise 

As  I  said  before  when  this  bill  was 
before  the  House,  I  know  that  the  au- 
thorization for  basic  grants  is  $650,000.- 
000  and  that  allotments  to  States  are 
computed  on  the  basis  of  the  authoriza- 


42559 

lion.  You  know,  and  I  know,  that  States 
must  come  up  wiUi  sufficient  local  funds 
to  match  the  Federal  aUotment,  Believe 

me,  if  all  Slates  could  match  the  full 
amount  I  would  be  ihe  first  one  to  rec- 
ommend  it  But  the  committee  has  been 
told  by  HEW  that  all  States  tannot 
match  their  full  allotment 

At  this  point,  we  do  not  kno-*  how 
much  the  States  can  use  this  fiscal  year 
HEW  teils  U5  that  it  may  be  $637,000  000 
It  may  be  more,  or  it  mav  be  less  The 
conferees  agreed  to  $630,000,000  as  be- 
ing wiihin  the  rule  of  reason.  If  It  is  not 
bufficient.  we  would  expect  a  supplement- 
al Duagei  request  la^er  in  the  fiscal  year 

Mr.  MAHON.  Mr.  Speaker.  I  yield  to 
the    gentlewoman    from    Oregon    (Mrs. 

utREEN  )  ■ 

Mrs.  GREEN  of  Oregon.  Mr.  Speaker 
Ir,^^  "**  Chairman  very  much  for 

PitL'!°.K'^.^'''^  ^  ^'^^^  ^  question  to 
either  the  distinguished  chairman  or  the 
gentleman  from  Wisconsin  Mr  Davis) 
The  people  m  my  area  were  ver^  much 
upset  about  a  provision  which  arDearfvl 
in  the  Senate  bill  but  which  did  n'^  I^ 
pear  m  the  House  bill  regarding  the  iift- 
if.L  '•^^  moratorium  on  bunding  of 
dredges  by  the  Corps  of  Armv  Engineers 
It  is  my  understanding  that  ihis  is  m  re- 
gard to  both  pipeline  dredges  and  hoppe-- 
dxedges  Will  either  the  distingui.sh!^ 
™^»''n°'  ^^  gentleman  from  Wis- 

the  conference  report,  because  a.'^  I  sav  jt 
1^  of  vital  concern  to  ;nd'^^tne=  which 
have  mainUined  dredges  and  who  -ave 
had  absolutely  no  idea  that  the  Senate 
would  add  a  provision  so  that  this  mora- 
torium be  lifted 

Mr    MAHON    I^t  me  say  at  the  con- 

rn«.^'  ^'  "'''*'*'  °^  "^'^^^^  '^  dis- 
cussed, and  certam  acUon  wa..  taken 

The  genUeman  from  Wisconsin  'Mr 
DAVIS)  is  quit*  familiar  with  ine  .<-itua- 
tlon,  and  I  would  yield  to  t±ie  genUe- 
man from  Wisconsin  for  a  respond 

Tf^J.wJ^''^^''^""-'^^'  ^'  Speaker, 
I  thank  the  gentleman  for  yieicmg,  and  I 
will  be  happy  to  respond  lo  my  colleag^je 
the  gentlewoman  from  Oregon  Mrs' 
Green-  I  am  sure  that  the  genUewoman 
from  Oregon  has  shared  a  similar  m-  ■ 
terest  m  this  with  many  of  the  members 
of  the  subcommittee.  This  matter  goes 
back  a  couple  of  years  ago  when  it  was 
recommended  that  a  study  be  made  with 
respect  to  the  pipeline  dredging  capacity 
with  respect  to  the  Corps  of  Engineers 

dredging  industries. 

n,Sf^!!^-  "f  "'''  PenUewoman  from 
V^^  ^*^  pinpointed,  that  the  Corps 
of  Engineers  does  have  a  policv  where 
they  use  all  of  their  m-house  capacltv 
to  a  ■verj-  high  percentage  before  they  do 
put  these  things  out  for  bid  to  the  private 
contractors.  There  wa<^  the  problem  of 
their  using  hopper  dredges  for  their  so- 
called  outside  work  for  which  they  only 
need  about  50  percent  of  the  capacity 
and  then  bring  those  dredges  in  for  the 
so-called  inside  work  in  competition  «-ith 
the  capabUity  of  the  private  owners  oi 
the  pipeline  dredges.  There  are  no  pri- 
vate owners  of  hopper  dredges,  so  far  as 
I  know. 
Based  upon  that,  the  committee  in  last 


4  2 '80 


CONGRESSIONAL  RECORD— HOUSE 


years  appropriation  bill  declared  a 
moratorium  with  respect  to  the  updat- 
ing or  the  procurement  or  the  renovation 
of  the  Corps  of  Engineers  dredges.  Iwth 
hopper  and  pipeline  That  was  continued 
In  this  year's  bill 

That  continuation  of  the  moratorium 
goes  on  until  that  study,  which  is  now 
under  way.  has  been  completed,  except 
on  one  single  dredge  that  was  exempted 
from  it. 

When  w«  got  over  to  the  Senate  on 
this  bill  there  did  exist  the  provision  In- 
stigated by  the  Senator  from  the  gen- 
tlewoman from  Oregon's  State  which 
would 'have  provided  for  going  ahead 
with  the  renovation  of  the  hopper 
dredges. 

The  language  which  resolved  this 
matter  is  found  on  page  15  of  the  con- 
ference report,  and  it  does  permit  them 
to  go  ahead  with  plans  in  connection 
with  the  modification  and  rehabilitation 
of  the  hopper  dredges,  but  it  directs  that 
these  plans  are  to  be  submitted  to  the 
Committees  on  Appropriation  of  the 
House  and  Senate  for  approval,  other- 
wise— and  this  is  the  important  language 
from  the  standpotat  of  the  gentlewoman 
from  Oregon  and  myself — otherwise  the 
moratorium  shall  continue 

So  this  does  permit  them  to  go  ahead 
with  planning,  and  this  is  a  relatively 
long  lead  item  on  the  hopper  dredges 
only,  but  the  moratorium  continues  In 
all  other  respects,  and  they  must  bring 
in  their  plans  for  approval  of  our  com- 
mittee and  the  corresponding  conunit- 
tee  over  in  the  other  body  before  they 
»^ll  be  permitted  to  go  ahead  with  any 
renovation. 

Mrs  GREEN  of  Oregon.  Mr  Speaker 
If  the  gentleman  will  yield  further  i 
thank  the  distinguished  chairman  of  the 
full  committee,  and  the  gentleman  from 
Wisconsin  <Mr  Davis'  I  am  delighted 
with  th»  way  they  resolved  this  In  the 
conference  Those  In  private  Industry,  if 
given  the  opportunity,  can  compete  very 
successfully  in  terms  of  economy  and 
efficiency  with  Government  dredges. 

They  should  be  given  that  chance.  If 
private  industry  had  some  assurance  of 
contract*  over  a  10-year  period— or 
more— they  might  also  build  hopper 
dredges  and  do  the  work  more  economi- 
cally Perhaps  the  authorized  study 
when  It  is  completed,  will  address  Itself 
to  this  point  also 

Mr  GROSS.  Mr  Speaker,  will  the 
gentleman  yield' 

Mr.  MAHON.  Mr  Speaker.  I  have  used 
I  believe.  20  minutes  of  the  30  minutes 
assigned  to  this  side,  and  I  would  prefer 
that  the  gentleman  from  Michigan  iMr 
CruERBERc  would  vleld. 

The  SPEAKER."  The  Chair  will  state 
that  the  gentleman  from  Texas  has  9 
minutes  remaining,  and  the  gentleman 
from  Michigan  <Mr  Ccterberc'  has  30 
minutes  remaining 

Mr  CEDERBERO  Mr.  Speaker.  I  do 
not  intend  to  take  very  much  time  I  be- 
lieve the  chairman  of  the  committee  has 
already  adequately  explained  the  bill. 
We  did  the  best  that  we  could  in  reach- 
ing these  compromises  with  the  Senate. 
I  think  it  Is  fair  to  reemphaslze  that 
there  are  several  items  in  this  legislation 


which  were  not  considered  by  the  House 
because  we  did  not  have  budget  esU- 
mates  at  the  time. 

I  would  like  to  refer  to  one  thing  that 
does  concern  me  some,  and  the  gentle- 
man from  Massachusetts  iMr  Conti" 
will  probably  go  Into  It  in  more  detail 
and  that  Is  the  fact  that  I  do  not  be- 
lieve we  paid  adequate  attention  to  the 
oU  reserves  known  as  Elks  Hill.  We  did 
however,  put  in  $7  5  mllUon  to  go  ahead 
with  the  exploration  of  the  Alukan 
petroleum  reserves.  I  believe  that  this 
is  a  matter  of  urgent  attention,  con- 
sidering that  the  energy  crisis  is  so  Im- 
portant 

Mr  PARRIS  Mr  Speaker,  will  the 
gentleman  yield '' 

Mr  CEDERBERG.  I  yield  to  the 
gentleman  from  Virginia. 

Mr  PARRIS  I  thank  the  genUeman 
for  yielding. 

Mr  Speaker,  on  page  8  of  the  confer- 
ence report,  particularly  referring  to 
amendment  No  4.  as  I  understand  it,  the 
House  language  as  previously  approved 
has  been  restored  by  the  conference, 
which  would  have  the  net  efTect  of  pro- 
hibiting the  Environmental  Protection 
Agency  from  using  funds  In  this  bill  to 
administer  any  parking  tax.  or  regula- 
tion 

Mr.  CEDERBERG  That  is  correct 
The  Senate  had  deleted  the  House  lan- 
guage, and  the  language  reads: 

No  part  of  my  funda  appropriated  uncl«r 
this  act  may  be  used  by  the  Environmental 
Protection  Agency  to  administer  any  pro- 
gram to  tax.  lunlt.  or  otherwise  regulate 
parking  raclliues. 

This  Is  an  area  wherein  I  think  the 
Environmental  Protection  Agency  has 
gone  far  afield  from  any  jursldlction  that 
they  have  at  all. 

I  see  that  some  of  the  gentlemen  from 
California  are  having  a  rather  dramatic 
experience  with  this  problem.  I  under- 
stand that  the  District  of  Columbia  is 
probably  going  to  be  Involved,  as  a  matter 
of  fact,  probably  most  of  the  country  I 
certainly  think  that  the  Environmental 
Protection  Agency  has  no  business  set- 
ting any  taxes  or  limits,  or  anything  else 
on  parking  facilities.  I  think  we  should 
be  sure  that  they  understand  this  That 
Is  my  understanding,  that  this  should 
limit  and  prohibit  them  from  doing  that 
They  may  try  to  get  out  of  that  to  a 
degree  because  it  says  "under  this  act  " 
but  it  certainly  is  congressional  Intent 
I  believe  We  have  a  vote  in  the  House 
to  emphasize  that. 

Mr  PARRIS  If  the  gentleman  will 
yield  further.  I  should  Uke  to  extend  my 
congratulations  to  him  and  to  his  con- 
ferees on  their  understanding  of  the  lu- 
dicrous nature  of  this  without  alternative 
means  of  transportation. 

Mr.  WHTTTEN.  Mr.  Speaker.  »iU  the 
gentleman  yield? 

Mr  CEDERBERG.  I  yield  to  the  gen- 
tleman from  Mississippi. 

Mr  WHTTTEN.  I  thank  the  gentleman 
for  yielding. 

The  money  before  us  in  this  bill  was 
limited,  but  the  action  of  the  conferees 
and  of  the  Congress  came  because  as  you 
know  various  acts  have  directed  the  EPA 
to  do  certain  things  by  a  certain  date. 


December  19,  1973 


even   though  money  for  such  purposes 
was  not  included  in  those  acts. 

The  EPA  had  never  justified  any 
money  before  my  appropnatlons  sub- 
committee to  Implement  whatever  au- 
thority they  may  claim  In  this  area  They 
have,  however,  been  going  ahead  and 
using  money  appropriated  for  other  pur- 
poses. So  In  this  instance,  and  only  be- 
cause the  rules  of  Congress  Umlted  what 
we  could  do.  we  said  that  no  money  In 
this  act  could  be  used.  By  making  this 
expression,  we  also  mean  to  say  that  no 
money  we  have  already  appropriated  for 
other  purposes  shall  be  used  for  purposes 
other  than  for  which  we  approved  in  the 
appropriations  process  as  JusUfled.  and 
that  should  reach  the  overall  problem 

Mr  CEDERBERG  That  is  important 
legislative  history,  especially  coming 
from  the  chairman  of  the  committee  that 
handles  programs  for  the  entire  En- 
vironmental Protection  Agency.  I  am 
glad  to  have  that  as  a  part  of  the  record 
Mr  LEGQETT.  Mr.  Speaker,  will  the 
gentleman  yield:* 

Mr  CEDERBERG   I  yield  to  the  gen- 
tleman from  California. 

Mr  LEGOETT  I  thank  the  gentleman 
for  yielding 

I  want  to  commend  the  committee  for 
retaining  this  amendment  in  conference 
As  I  understand  the  gentleman's  state- 
ment, this  would  cover  permits  over  and 
above  just  taxes  and  surcharges,  so  the 
net  effect  would  be.  as  I  understand  it 
that  the  amendment  would  be  a  little 
bit  more  extensive  than  was  included 
in  the  House.  I  wouJd  hope  that  because 
of  that,  the  EPA.  regardless  of  what  ac- 
tion is  taken  on  the  energy  biU  currently 
In  conference,  would  summarily  nullify 
some  of  their  existing  regulations  in 
spite  of  the  fact  that  perhaps  the  cover- 
age of  this  bill  does  not  precisely  get  at 
the  money  that  we  are  currently  spend- 
mg  to  do  the  job  we  are  objecting  to 

Mr.  DON  H   CLAUSEN    Mr.  Speaker 
will  the  gentleman  vield? 

Mr  CEDERBERG  I  yield  to  the  gen- 
tleman from  California. 

Mr  DON  H.  CLAUSEN  Mr.  Speaker  I 
too  want  to  join  in  compUmentlng  the 
AppropriaUons  Committee  on  their  ac- 
tion With  respect  to  Senate  amendment 
No  4.  I  just  recently  held  a  meeting  in 
my  own  district  In  California  and  I  ap- 
preciate having  the  legislative  history 
which  indicates  the  intent  of  Congress 
It  seems  to  me  we  will  have  to  look 
at  this  next  year  through  the  authoriz- 
ing committee,  or  if  it  is  going  to  be 
deabng  with  taxes,  that  seems  to  be 
within  the  purview  of  the  Ways  and 
Means  Committee,  rather  than  having 
something  which  would  utteriy  destroy 
the  marketing  and  supply  area.  Would 
the  gentleman  agree'' 

Mr.  CEDERBERG.  I  agree  with  the 
gentleman. 

Mr  GROSS.  Mr  Speaker,  will  the 
gentleman  yield' 

Mr.  CEDERBERG.  I  yield  to  the 
gentleman  from  Iowa. 

Mr.  GROSS.  In  view  of  the  serious  if 
not  critical  financial  situaUon  of  this 
Government  it  is  becoming  almost  Im- 
possible for  me  to  accept  even  the  fact 
of  the  supplemental  appropriation  bill. 


December  19,  1973 


CONGRESSIONAL  RLLORD— HOUSE 


42561 


X 


Here  we  have  a  bill  providing  $1,638  mil- 
lion above  and  beyond  the  regular  ap- 
propriations, and  this  bill  is  $205  million 
above  the  supplement  appropriation  bill 
as  it  left  the  House  floor. 

Mr.  CEDERBERG  No.  not  that  much. 
Mr.  GROSS  It  is  not  $205  million? 
Mr     CEDERBERG     Mr.    Speaker,    I 
thought  the  gentleman  said  $2  billion. 

Mr.  GROSS.  U  I  did  I  am  glad  to  be 
corrected. 

Somehow  or  other  we  have  got  to  stop 
the  supplemental  appropriations  except 
in  terms  of  funding  national  disasters 
and  things  of  that  type  because  we  are 
simply  adding  on  here  to  the  regular 
appropriation  bills  and  we  are  getting 
nowhere  fast  in  the  business  of  balancing 
the  budget  and  stopping  inflation.  I  hope 
that  in  the  next  year  we  will  have  no 
supplemental  appropriations  except  In 
the  event  of  a  national  emergency. 

Mr.  CEDERBERG.  I  cannot  disagree 
with  my  colleague,  the  gentleman  from 
Iowa.  As  a  matter  of  fact  I  think  both 
the  chairman  and  I  would  like  to  do 
away  with  supplementals  if  it  were  at  all 
possible.  However,  we  have  got  into  this 
over  a  period  of  years,  to  the  point  where 
we  have  the  first  supplemental,  and  the 
second  supplemental,  and  then  the  final 
supplemental,  but  much  of  this  Is  the 
result  of  the  leglslatlcm  that  we  approve 
in  this  body.  As  a  matter  of  fact.  55  per- 
cent of  the  funds  augmented  in  this  bill 
are  for  programs  which  were  previously 
deferred  because  of  lack  of  legislative 
authority.  The  place  to  stop  some  of  this 
Is  In  the  authorization  of  these  programs 
and  new  programs,  so  there  is  not  much 
we  can  do  in  many  of  these  areas.  I  cer- 
tainly share  the  gentleman's  concern. 

Mr.  MAHON.  Mr  Speaker,  will  the 
gentleman  yield? 

Mr.  CEDERBERG.  I  yield  to  the  gen- 
tleman from  Texas. 

Mr.  M.XHON  Mr.  Speaker.  I  have  also 
been  very  aware  of  and  concerned  about 
the  problem  the  gentleman  has  stated, 
but  for  Instance  we  provide  here  for  the 
community  services  for  older  Americans, 
which  have  been  expanded.  In  the  other 
body  $40  million  was  added  to  the  bill 
for  that  purpose.  We  opposed  the  $40 
million.  Finally  we  reduced  it  to  $10  mil- 
lion, but  that  was  the  best  we  could  do 
and  reach  an  accommodation. 

There  were  other  Issues.  We  provided 
$10  million  for  pending  energ>-  legislation 
out  of  $52  mlUion  added  by  the  other 
body.  This  is  contingent  upon  enactment 
of  the  legislation.  Congress  Is  going  out 
of  session  this  week  and  this  will  give 
them  a  cushion  to  operate  on.  So  those 
are  just  some  of  the  problems.  I  share 
the  views  of  the  gentleman  from  Iowa 
that  we  should  undertake  to  reduce  to 
the  lowest  possible  number  and  amount 
these  supplemental  appropriations. 

This  year  the  Office  of  Management 
and  Budget  submitted  fewer  requests 
than  last  year.  Last  year  the  supplemen- 
tal amounted  to  some  $5  billion;  this 
year  It  Is  $1.6  billion,  so  things  are  at 
least  Improving. 

Mr.  CEDERBERG.  Mr.  Speaker,  I 
yield  5  minwtes  to  the  gentleman  from 
Illinois  (Mr.  Michel >. 

Mr.  MICHEL.  Mr.  Speaker,  may  I  say 
just  a  word  with  respect  to  the  remarks 


of  the  genUeman  irom  Iowa  There  were 
several  times  during  th^  course  of  the 
conference  when  your  House  confetees 
had  to  admonish  Members  of  the  other 
body  that  what  we  w anted  to  deny  them 
In  this  supplemental  were  fundi  that 
were  denied  in  the  regular  bill. 

There  has  been  a  growing  practice  in 
the  other  body  that  what  gets  denied  in 
the  regular  bill  is  put  back  In  the  sup- 
plemental. 

Members  of  the  House,  with  the  ex- 
ception of  amendment  No.  5  relative  to 
the  Elk  Hills  Naval  Reserve,  I  believe 
the  conferees  have  reached  a  reasonable 
compromise  on  the  items  of  disagree- 
ment in  this  supplemental 

I  think  we  made  a  mistake  in  not  giv- 
ing along  with  the  Senate  proposal  on 
Elk  Hills.  That  $60  million  item  would 
be  worth  more  than  anything  else  in 
this  bill  for  it  represents  an  swlditlonal 
160,000  barrels  of  oil  a  day  within  60 
days. 

In  chapter  V,  dealing  with  the  Depart- 
ments of  Labor,  HEW,  and  related  agen- 
cies, the  conferees  agreed  to  include  $10 
million  for  a  new  program  of  community 
service  employment  for  older  Americans. 
We  provided  $27  million  for  programs 
under  the  newly  enacted  Emergency 
Medical  Services  Act;  $10  million  of  this 
is  to  come  from  transfer  of  funds  pre- 
viously appropriated  for  emergency 
medical  services  activities. 

We  agreed  to  an  additional  $7  million 
for  maternal  and  child  health  grants,  for 
which  nearly  $218  million  is  already  in- 
cluded in  the  regular  Labor-HEW  bill. 
Five  million  dollars  was  added  to  fi- 
nancial distress  grants  for  schools  of 
the  health  professions. 

We  a(^ded  nearly  $15  million  for  basic 
State  grants  for  vocational  rehabilita- 
tion, and  $4  million  for  facilities  con- 
struction. 

We  provided  an  additional  $1.5  million 
for  the  developmental  programs  of  the 
ACTION  agency. 

I  believe  this  is  a  satisfsujtory  resolu- 
tion of  the  differences  between  the  two 
bodies  with  the  exception  of  amendment 
No.  5.  the  Elk  Hills  matter  which  I  men- 
tioned earlier. 

Mr.  STEIGER  of  Wisconsin.  Mr. 
Speaker,  will  the  gentleman  yield? 

Mr.  MICHEL.  I  yield  to  the  gentleman 
from  Wisconsin. 

Mr.  STEIGER  of  Wisconsin.  In  the 
action  of  the  conference  on  the  ACTION 
Agency,  there  Is  added  approximately 
$1.5  million.  By  the  statement  of  the 
gentleman  from  Illinois,  am  I  clear  in 
my  understanding  that  that  additional 
money  is  available  to  the  ACTION 
Agency  for  developmental  programs  and 
represents  a  total  sum  of  some  $4.5  mil- 
lion for  that  purpose.  Instead  of  the  $3 
million  in  the  House-passed  supple- 
mental? 

Mr.  MICHEL.  The  gentleman  is  cor- 
rect. We  cut  that  item  of  $6.76  million, 
in  the  budget  to  $3  million  and  we  de- 
cided in  the  conference  on  a  split.  That 
would  mean  in  the  demonstration  areas 
there  would  be  roughly  $4.5  million. 

Mr.  STEIGER  of  Wisconsin.  I  appreci- 
ate the  gentleman's  clarification  on  that. 
I  might  say  that  I  am  disappointed 
that  the  full  sum  of  $6  million  was  not 


made  available  to  the  Agency,  but  I  am 
grateful  to  the  conferees  for  at  least 
agreeing  to  a  split  on  the  item.  I  think 
the  full  $6  million  is  needed.  It  is  an 
important  pan  of  tjie  Agency's  program. 

Mr.  MICHEL  I  wUl  say  that  Dr.  Bal- 
zano  made  a  convincing  and  outstanding 
case  of  what  could  be  done  in  this  whole 
field  of  volimteerism. 

It  would  be  my  personal  preference 
to  give  him  every  dime  requested  In  the 
budget;  but  knowing  the  conditions  as 
they  were,  this  was  the  best  we  could 
get  In  the  conference. 

Mr.  GROSS.  Mr.  Speaker.  wUl  the 
gentleman  yield? 

Mr.  MICHEL.  T  yield  to  the  gentleman 
from  Iowa. 

Mr.  GROSS.  I  merely  want  to  say 
that  I  did  not  mean  to  take  anything 
away  from  the  House  conferees  on  this 
particular  supplemental  bill  for  they  did 
succeed  in  beating  the  Senate  down  by 
$250  million,  which  is  most  helpful,  but 
I  emphasize  that  Congress  ought  to  end 
this  practice  of  three  or  four  supplemen- 
tal appropriations  bills  during  each  fiscal 
year,  and  all  of  which  add  to  the  regular 
appropriation   measures. 

I  thank  my  friend  from  Illinois  for 
yielding  to  me. 

Mr.  MICHEL.  Mr.  Speaker,  it  gets  to 
be  ridiculous.  The  genUeman  just  heard  a 
few  minutes  ago  a  Member  inquiring 
whether  or  not  less  than  a  week  from 
adjournment.  If  there  is  to  be  another 
supplemental  between  now  and  Friday 
or  Saturday? 

Mr.  Speaker.  I  yield  5  minutes  to  the 
genUeman     from    Massachusetts     <Mr. 

CONTE  I  . 

Mr.  CONTE.  Mr.  Speaker.  I  am  obliged 
to  voice  my  strongest  objecUons  to 
amendment  No.  5  of  this  conference  re- 
port, which  deletes  a  total  of  $64.5  mil- 
lion for  the  development  of  the  produc- 
tive capacity  of  the  energy  which  is  lan- 
guishing at  the  Elk  Hills  Naval  Petro- 
leum Reserve.  For  that  reason,  I  am 
making  a  motion  to  recommit  this  sup- 
plemental appropriations  bill  with  in- 
structions to  provide  funds  for  develop- 
ing and  operating  the  Elk  Hills  Naval 
Petroleum  Reserve. 

With  almost  three-quarters  of  our  peo- 
ple in  New  England  depending  on  fuel 
oil  to  heat  their  homes  during  the  win- 
ter; with  independent  marketers  being 
squeezed  by  their  domestic  suppliers  due 
to  lack  of  supply:  with  oil  stock  levels  in 
the  NaUon  8  percent  below  1971:  with 
all  this  shocking  and  well-documented 
news,  which  has  been  reported  over  and 
over  again,  we  csumot  have  the  absence 
of  mind  to  deny  to  the  American  pieople 
the  fruits  of  an  energy  reserve  within  our 
very  borders. 

The  Elk  Hills  Reserve  was  created  to 
provide  our  military-  forces  with  an 
emergency  source  of  petroleum.  Such  an 
emergency  now  exists. 

Last  month,  the  Defense  Department 
was  authorized  to  siphon  off  an  addi- 
tional 300,000  barrels  of  oU  a  day  from 
our  civilian  economy  to  fuel  our  niilltary 
Installations  and  ships  overseas.  That  is 
about  10  percent  of  our  national  supply 
shortage  Because  of  th«  Arab  oil  boy- 
cott, we  are  l)eing  forced  to  ship  our  fuel 
overseas  to  make  up  for  the  supplies 


{2562 


CONGRESSIONAL  RECORD  — HOUSE 


Deeeviber  19,  197S 


that  even  some  of  our  NATO  allies  are 
refusing  to  sell  us 

Releasing  the  ELc  HUls  Reserves  would 
provide  180.000  barrels  of  oil  a  day  within 
a  matter  of  weeks.  This  would  replace 
60  percent  of  the  fuel  that  domestic  re- 
finers were  recently  ordered  to  ship  to 
our  military  forces  overseas. 

What  can  be  the  reasoning  behind  the 
exclusion  of  EHk  Hills  from  our  plans? 
It  comes  to  mind  Immediately  that  the 
Military  Establishment  seeks  to  keep 
enough  fuel  In  both  of  its  hip  pockets, 
to  provide  for  the  possibility  of  a  long- 
range,  protracted  war  In  the  meantime, 
our  economy  is  suffering.  The  plight  of 
Great  Britain— with  Its  3-day  work- 
weeks and  energy  shutdowns — reminds 
us  of  the  exacting  price  this  energy  crisis 
can  levy  upon  the  Nation's  economic 
health.  Must  we  wait  for  that  to  happen? 
With  the  certainty  of  unemployment, 
and  other  sacrifices  staring  us  In  the  face 
right  now.  It  seems  empty  to  talk  about 
•■possibilities."  especially  when  they  are 
based  on.  what  is  at  best,  a  World  War  n 
strategy. 

It  is  time  for  us  to  mature  our  think- 
ing on  this  matter.  The  time  is  ripe  for  us 
to  do  so  with  the  Inclusion  of  the  Elk 
Hills  reserve  in  this  supplemental 

I  urge  my  colleagues  to  recommit  this 
bill  with  the  simple  instruction  to  restore 
the  funds  needed  for  the  Immediate  de- 
velopment and  operation  of  the  Elk  Hills 
naval  petroleum  reserve. 
Thank  you. 

Mr  KETCHUM  Mr.  Speaker,  will  the 
gwitleman  yield? 

Mr  CONTE  Mr  Speaker.  I  yield  to  my 
good  friend  from  California. 

Mr  KETCHUM  Mr  Speaker.  I  thank 
the  gentleman  for  >'ielding  to  me  I  want 
him  to  know  that  I  totally  concur  with 
his  comments. 

Mr   Speaker.  I  would  like  to  ask  him     « 
one  question:   Can  he  give  me  the  ra-Va 


tionale   or   the   reason   why   the   House 
backed  off  and   took  this  amendment? 

Mr  CONTE.  By  all  means,  and  I  am 
glad  the  gentleman  asked  that  question 
The  opponents  i»-Ul  take  the  floor  here 
today  and  say  the  same  thing,  that  the 
authorizing  committee  has  not  had  an 
opportunity  to  hold  hearings  on  this. 
The  Chairman  of  that  committee  has 
adjourned  sine  die.  Unless  we  do  this,  we 
will  not  have  it  until  perhaps  next  April 
or  May  when  it  is  too  late 

Mr  KETCHUM.  Mr  Speaker,  if  the 
gentleman  will  yield  further  to  me.  I 
would  appreciate  it  because  I  think  the 
House  should  know  that  we  have  on  the 
Elk  Hills  resolution  over  104  cosponsors 
in  this  House  The  resolution  has  already 
passed  out  of  the  Senate  Armed  Serv- 
ices Committee  and  will  be  on  the  floor  of 
the  Senate,  hopefully,  this  week. 

Mr  CONTE.  Mr  Speaker,  let  me  tell 
the  gentleman  one  other  thing.  They  will 
also  use  the  argument  that  this  Is  going 
to  delay  adjournment  sine  die  if  this 
recommittal  motion  is  accepted.  We  can 
walk  over  there  in  5  minutes  and  be 
back  here  in  10  minutes  and  have  It  all 
over  with.  All  Chairman  Mahon  has  to 
do  is  abide  by  the  will  of  the  House. 

Mr  ROUSSELOT  Mr  Speaker,  will 
the  gentleman  yield? 


Mr  CONTE  I  yield  to  the  gentleman 
from  California. 

Mr  ROUSSELOT  Mr.  Speaker.  I  com- 
pliment the  gentleman  for  bringing  this 
to  the  attention  of  the  House.  These  po- 
tential supplies  of  petroleum  from  Elk 
Hills  go  primarily  to  the  military,  and 
therefore  they  would  not  have  to  buy 
from  the  private  markets  and  deny  us  all 
the  fuel  that  is  so  desperately  needed  for 
the  domestic  market. 

I  congratulate  the  gentleman  for 
bringing  this  important  issue  to  the  floor 
of  the  House,  and  I  support  It. 

The  SPEAKER.  The  time  of  the  gen- 
tleman from  Massachusetts  (Mr.  Contk* 
has  expired. 

Mr  CEDERBERQ  Mr  Speaker.  I 
yield  3  additional  minutes  to  the  gentle- 
man from  Massachusetts  ( Mr.  Conte  • , 

Mr.  RUPPE  Mr.  Speaker,  will  the  gen- 
tleman yield? 

Mr  CONTE  I  yield  to  my  friend,  the 
gentleman  from  Michigan. 

Mr  RUPPE.  Mr.  Speaker.  I  notice  that 
the  Senate  has  appropriated  the  amount 
of  $72  million  for  the  development  of  this 
program,  whereas  the  House  has  $7  mil- 
lion for  the  same  purpose 

Etoes  the  gentleman  believe  that  we 
could  begin  to  do  as  much  with  $7  mil- 
lion as  can  be  done  with  the  higher 
figure? 

Mr  CONTE.  No.  but  if  we  had  the  en- 
tire $11,500,000  which  we  originally  had 
in  there,  we  could  explore  the  rest  of  Elk 
Hills,  which  is  not  being  explored  right 
now.  That  Is  Field  No  1 

Mr.  RUPPE.  Mr.  Speaker,  yesterday 
we  provided  for  the  sale  of  a  quarter 
mUlion  tons  of  copper,  and  the  propo- 
nents of  the  legislation  said  it  was  done 
profitably  for  the  United  States. 

It  seems  to  me  that  we  could  take  that 
profit  and  spend  the  money  wisely  and 
expeditiously  for  this  purpose  and  allevi- 
ate the  greatest  energy  shortage  In  the 


history  of  the  United  States 

Mr  McDADE  Mr  Speaker,  will  the 
gentleman  yield? 

Mr  CONTE  I  jield  to  the  genUeman 
from  Pennsylvania. 

Mr.  McDADE.  Mr  Speaker,  I  thank 
the  gentleman  from  Massachusetts  for 
yielding,  and  I  wish  to  associate  myself 
with  his  remarks. 

The  difficult  facts  are  that  there  is 
only  one  place  in  the  United  States  of 
America  where  substantial  oil  exists  that 
can  be  brought  onstream  now.  not  5  years 
from  now.  not  3  years  from  now.  not  2 
years  from  now. 

The  Navy  indicates  that  within  6 
months  they  can  have  as  much  as  50.000 
barrels  of  oil  a  day  fiowlng  from  Elk  Hills. 

I  believe  we  should  use  that  particular 
resource,  and  I  believe  it  can  be  worked 
out  judiciously. 

Mr  Speaker,  we  need  the  oil  from  Elk 
Hills.  It  Is  not  disputed  that  we  have  an 
immediate  oil  shortage — whether  you  ac- 
cept the  calculations  of  the  administra- 
tion or  the  Petroleum  Industry  Research 
Foundation — we  have  a  shortage  of  over 
a  million  barrels  per  day  And  that  figure 
assumes  a  successful  savings  from  the 
entire  gamut  of  energy  saving  measures 
from  thermostat  reduction,  fewer  lights 


used,  the  automobile  slowdown,  flights 
reduced,  and  daylight  savmg  time. 

Elk  Hills.  Naval  Petroleum  Reserve  No. 
1,  is  presently  producing  3.000  barrels 
per  day  and  could  Increase  t.hat  produc- 
tion many  fold  to  160  000  barreLs  per 
day  in  short  order.  It  has  1.043  produc- 
ing wells  right  now.  yet  half  of  the  area 
has  been  explored  We  should  Initiate 
production  and  explore  the  remaining 
area. 

In  addition  the  potential  reserve  in 
Alaska  from  Naval  Petroleum  Reserve 
No.  4  Is  esUmated  as  great  as  30  billion 
barrels  by  Dr.  McKelvey.  Director  of  the 
US  Geological  Survey.  The  area  is  as 
large  as  Indiana,  and  unfortunately  no 
exploration  has  been  undertaken  to  date, 
nor  any  petroleum  recoverj-  begun.  We 
are  obviously  behind  and  ought  to  Ini- 
tiate action  now. 

An  important  criteria  prior  to  taping  a 
naval  petroleum  reserve  should  be  the 
military's  opinion.  We  have  that  opinion 
and  it  endorses  the  idea.  My  colleague 
from  California— and  from  the  Elk  HUls 
area — Mr  Kktchum,  received  a  letter 
endorsing  production  from  Elk  Hills  from 
the  Joint  Chiefs  of  Staff  Because  I  think 
the  Joint  Chiefs'  endorsement  Is  Im- 
portant, I  want  to  quote  a  small  part  of 
the  letter: 

The  JCS  continued  to  review  the  need  for 
EUt  HUls  production  .  .  .  and  agreed  that  the 
Impact  of  the  continued  embargo  of  petro- 
leum from  the  Middle  East,  together  with 
other  critical  aspects  of  the  national  and 
International  petroleum  situation,  has  now 
reached  a  level  which  warrants  emergency 
measures,  as  contemplated  In  H  J  Res  832  " 
(That  is  the  authorizing  legislation  pending 
In  the  Armed  Service  Committee)  "However, 
the  JCS  recommended  that  the  proposed 
legislation  should  ensure  that  the  funds 
generated  are  used  expeditiously  to  explore 
and  develop  Naval  Petroleum  Reserve  No  4 
(Alaska)  P^irther  the  legislation  should  spe- 
cify that  this  limited  one-time  aathorlza- 
tlon  to  produce  from  Elk  Hills  does  no- 
constitute  precedent  for  using  the  reserves 
for  other  than  national  defense  require- 
ments. 

The  action  contemplated  by  myself 
and  Mr.  Conte  and  others  on  the  Appro- 
priations Committee  is  in  line  with  the 
Joint  Chiefs  of  Staff's  recommendations. 
We  should  take  this  step. 

Mr  DON  H.  CLAUSEN.  Mr.  Speaker, 
will   the  gentleman  yield? 

Mr.  CONTE.  I  yield  to  the  gentleman 
from  California. 

Mr  DON  H.  CLAUSEN  Mr.  Speaker, 
I  want  to  associate  myself  with  the  re- 
marks of  Mr,  Contt:.  of  Massachusetts, 
as  the  place,  emphasis,  and  focus  of  at- 
tention of  the  potential  1  billion  barrels 
of  oil  in  the  Elk  Hills  reserve  area  in 
California. 

With  the  energy  crisis  prevalent  in  the 
country,  we.  In  California  and  the  West, 
are  understandably  looking  for  any  im- 
mediate relief  attainable  for  our  people. 

As  Mr.  McDade  has  stated,  this  is  a 
resource  that  can  be  brought  into  our 
distribution  systems  within  60  days  This 
could  prove  to  be  very  beneficial  to  the 
President's  efforts  and  all  of  us  who  have 
been  trying  to  point  out  the  urgency  of 
the  energy  crisis  and  the  need  to  obtain 
early  results. 

The  Elk  Hills  oilfields  will  provide  an 


December  19,  19  7.1 


CONGRESSIONAL  RECORD  —  HOUSE 


42563 


oil  supply  that  w:ll  permit  the  military 
to  buy  from  another  source  other  than 
the  starved  and  very  limited  domestic 
supply.  This  Ls  crucial  a.*;  an  int.enm  pro- 
gram imtil  such  time  a.s  we  reestablish 
and  relnventory  other  ivitentia!  reserve 
areas. 

I  will  yield  to  no  one  when  it  comes  to 
protecUng  our  strateRic  reser\e.s  for  our 
defense  requirements  but  new  re.serve 
areas  can  and  will  be  kxjaled  and  estab- 
lished. I  hope  the  House  will  recommit 
the  conference  report  and  m.struct  the 
conferees  to  accept  Mr  Conte  s  .sug- 
gestion. 

Mr  BELL.  Mr  Speaker.  wUl  the  gentle- 
man yield? 

Mr.  CONTE.  I  yield  to  the  gentleman 
from  California. 

Mr  BELL.  Mr,  Speaker,  I  wish  to 
commend  the  gentleman  for  his  state- 
ment, and  I  certainly  concur  with  him. 
I  was  wondering  if  we  do  not  have  as 
a  potential  long-range  source  some  more 
fuel  resources  not  yet  developed  such 
as  oil  from  Alaska  and  from  coal? 

If  this  is  so.  I  think  those  could  be 
included  in  our  long-range  plans,  not 
Elk  Hills.  In  the  meantime  we  should 
use  Elk  Hills  for  our  short-term  needs. 
Does  the  gentleman  know  whether  or 
not  the  present  Elk  Hills  field  is  being 
drained  by  other  operators  in  the  imme- 
diate area? 

Mr.  CONTE.  Mr.  Speaker,  that  I  do 
not  know. 

Mr.  CEDERBERG.  Mr.  Speaker.  I  yield 
2  minutes  to  the  gentleman  from  Illinois 
(Mr  Michel  I 

Mr.  RAILSBACK.  Mr.  Speaker,  wUl  the 
gentleman  yield? 

Mr.  MICHEL.  I  yield  to  the  gentleman 
from  Illinois. 

Mr,  RAILSBACK  Mr  Speaker,  I  thank 
the  gentleman  for  yielding. 

Mr.  Speaker,  I  would  like  to  clarify  a 
question  on  the  subject  of  the  Rehabilita- 
tion Services  Administration  program  for 
public  offenders  which  was  included  In 
the  HEW  supplemental  appropriations 
request.  H.R.  11576. 

As  noted  on  the  floor  November  30. 
1973,  in  a  coUoquy  between  Mr.  Shrlver 
and  myself,  the  report  of  the  Committee 
on  Education  and  Labor— Report  No.  93- 
244 — on  the  Rehabilitation  Act  of  1973. 
emphasized  at  page  10  that  It: 

Does  not  expect  the  Rehabilitation  Serv- 
ices in  any  area  where  it  Is  now  providing 
services. 

Since  the  House  is  amsidering  H.R. 
11576,  a  bill  making  supplemental  appro- 
priations for  fiscal  1974  for  HEW  and 
the  Rehabilitation  Services  Administra- 
tion. I  would  like  to  ask  if  the  gentle- 
man from  Dlinois'  understanding  is  that 
RSAs  program  for  rehabilitation  of  pub- 
lic offenders  should  not  only  be  con- 
tinued at  the  same  budgetary  level  as 
last  year  and  without  any  curtailment 
or  reduction  of  funds, 

Mr  MICHEL,  Yes,  that  Is  my  under- 
standing 

Mr.  Speaker,  1  will  say  In  answer  to  the 
gentleman  that  the  hearing  record  Is  not 
as  clear  as  it  ought  to  be  on  that  particu- 
lar subject,  but  It  would  be  my  own  per- 
sonal feeling,  and  as  shared  by  the  sub- 
committee, that  where  States  have  gone 
ahead  with  these  programs,  money  In 


this  bill  .should  permit  them  to  continue 
with  those  program-s 

Mr  HUBER  Mr  Speaker,  will  the 
geiitlemiin  yield? 

Mr  MICHEL  I  yield  to  the  genUeman 
from  Minnesota 

Mr  HUBER  Mr  Speaker  I  n.-^e  today 
m  .strong  support  of  the  efforts  of  the 
gentleman  from  Ma.s.sach'isett.s  m  his  ef- 
forts to  require  theopenii.g  up  to  produc- 
tion of  the  Elk  Hills  naval  petroluem  re- 
.serve as  a  part  of  the  supplemental  ap- 
propnatiorus  bill  for  fLscal  year  1974.  This 
is  one  ver>-  logical  and  ixjsitive  step  we 
can  take  in  the  energy  crisis  here  and 
now. 

As  has  been  mentioned  on  previous 
occasions,  the  expected  rate  of  pumping 
oil  from  these  fields— 180  000  barrels  per 
day.  could  replace  almost  one-half  the 
needs  of  Navy  for  fuel  oil,  which  used  to 
be  purchased  from  Middle  E^astem  coun- 
tries. This  in  turn  would  free  some  180.- 
000  barrels  per  day  for  the  sorely  pressed 
civilian  sector  of  our  economy. 

The  day  and  the  hour  bespeak  an 
emergency  if  I  ever  saw  one  and  urgent 
matters  such  as  this  one  .should  be  acted 
upon  by  a  responsible  Congress.  This  oil 
was  originally  set  aside  for  a  wartime 
emergency,  but  I  feel  aiergy  shortage 
surely  qualifies  as  bemg  almost  of 
equivalent  magnitude.  Legislation  of 
which  I  am  a  co6pc«i.sor  opens  up  these 
fields  for  a  year,  and  this  would  certainly 
go  a  long  way  to  tide  uii  over  the  crisis. 
And,  as  has  been  pointed  out.  the  U.S. 
Government  could  obtam  revenues  from 
selling  this  oil,  which  in  turn  could  be 
used  to  further  develop  other  Navy  re- 
serves in  Alaska.  Therefore,  the  motion 
to  open  up  this  domestic  source  of  oil 
to  our  citizens  should  be  adopted  today 
on  an  urgent  basis. 

Mr.  BELL  Mr.  Speaker,  will  the  gen- 
tleman yield? 

Mr.  MICHEL.  I  yield  to  the  gentleman 
from  California. 

Mr.  BELL.  Mr.  Speaker,  I  would  like 
to  ask  the  distinguished  gentleman  from 
Florida  (Mr.  Bennett)  from  the  Com- 
mittee on  Armed  Services,  a  question 
tion  similar  to  the  one  I  propounded  to 
the  gentleman  from  Massachusetts. 

I  will  ask  the  gentleman  if  m  the  Elk 
Hills  field,  if  it  were  not  bemg  prc>duced. 
would  not  some  of  the  oil  and  g&&  be 
drained  by  some  other  operators  on  ad- 
joining properties  in  the  field  of  Elk  Hills 
which  are  producing  there?  I  wondered 
if  this  being  the  case  if  there  is  not  a 
natural  case  of  drainage  that  should  be 
investigated?  I  wonder  if  the  gentleman 
really  knows  the  an5wer  to  that  question. 
Maybe  we  do  not  have  as  big  a  field  there 
as  we  think  ^e  do, 

Mr.  BENNETT  Mr  Speaker.  I  believe 
I  can  answer  liiat  que5tion. 

We  have  established  controlled  draw- 
downs of  reserves  so  that  the  reserves  will 
not  be  affected  by  comj^etitors  in  the  en- 
virons of  this  field 

When  you  have  an  oil  reserve  and  peo- 
ple are  producing  oil  on  the  outskirts  of 
this  reserve  you  can  have  the  oil  reserves 
depleted  In  that  fashion.  The  Navy  has 
an  ongoing  program  to  withdraw  and 
sell  part  of  the  oil  in  the  reserves  to  pro- 
tect against  just  this  thing  occurring.  It 
Is  a  reasonably  successful  technique 


Mr,  MAHON  Mr.  Speaker.  I  yield  such 
time  as  he  may  constime  to  the  gen- 
tleman Irum  Mississippi    Mr  WHrrmi) 

Mr  WHITTEN  Mr  Speaker.  I  hope 
I  may  have  tiie  attention  of  the  Mem- 
bers m  view  of  the  subject  which  has 
just  been  brought  up  on  the  Elk  Hills 
reserve. 

When  I  first  came  to  the  Congress  in 
World  War  n  we  also  faced  a  shortage, 
and  we  had  earlier  rushed  into  a  con- 
tract without  proper  investigation  and 
study,  ai!  some  of  m>-  colleagues  would 
have  us  do  here  today,  prior  to  study- 
ing the  subject  fully.  In  a  hearing  be- 
fore the  naval  appropriations  subcom- 
mittee, of  which  I  was  a  member  the 
Navy  submitted  a  request  for  a  payment 
of  $1  million  to  Standard  Oil  of  Cali- 
fornia to  consummate  a  contract  involv- 
ing Elk  Hills.  I  asked  about  the  contract 
and  received  an  evasive  answer, 

I  raised  some  questions  as  to  what 
was  involved.  They  were  hesitant  to  an- 
swer. Our  subcommittee  then  continued 
the  hearings  until  we  considered  the  reg- 
ular bill.  For  the  next  few  months  many 
persons  whom  I  knew  who  had  an  as- 
sociation with  the  Standard  Oil  Co.  and 
the  Department  of  the  Navy  came  to  me 
and  told  me  I  was  wrong  In  raising  any 
questions  about  this  contract  which  I 
had  not  really  done.  I  simply  asked  what 
it  was  all  about. 

Following  that  we  had  a  study  made, 
and  it  developed,  imder  the  pressure  of 
circtimstances  similar  to  those  under 
which  we  now  are  working,  that  the 
Government  had  entered  into  a  contract 
with  Standard  Oil  Co,  of  California  to 
develop  Elk  Hills, 

Those  of  you  who  know  the  area  know 
that  this  is  a  checkerboarded  area.  The 
lands  deeded  to  the  railroads  in  order  to 
expedite  their  construction  had  been  sold 
years  before  and  now  belonged  to  the 
private  oil  companies  and  other  blocks 
of  the  land  belonged  to  the  Government 
as  the  Elk  Hills  Oil  Preser\'e  Land  hold- 
ings are  interspaced. 

The  contract  that  was  entered  into 
in  a  htUTj-  pro\1ded  that  the  Standard 
Oil  Co.  of  California  had  a  contract  in 
perpetuity  to  handle  and  produce  all  of 
the  oil  that  the  Na\-y  or  the  Government 
had  in  its  reser\'e  Not  only  that,  but 
under  the  contract  Standard  Oil  of  Cali- 
fornia got  all  of  the  oil  including  Navy 
oil  for  a  period  of  5  years.  It  is  true  that 
under  the  contract  the  company  was  to 
repay  the  Government  for  the  Na\-y's 
share  of  the  oil,  but  at  a  rate  less  than  the 
interest  on  the  Government's  oD  which 
Standard  Oil  got.  Not  only  that,  but 
Standard  Oil  got  a  far  greater  percent- 
age of  the  oil  than  thei'  had  of  the  land. 

I  raised  these  questions,  aiid  was  told 
by  the  then  Secretary-  of  the  Navy,  that 
I  did  not  know  what  I  was  t.fti>nnE  about 
We  earned  the  matter  to  the  Department 
of  Justice,  and  the  contract  was  held  to 
be  Ulegul  on  the  grounds  I  raised  .\s  a 
result  of  that  action,  it  ha.-;  been  esti- 
mated that  we  sa\ed  650  million  barrels 
of  oil.  and  more  than  a  billion  dollars. 

Mr.  Speaker,  all  I  am  saytnp  to  you  is 
we  are  nishing  into  an  area  where  part  of 
the  land  Is  owned  by  Uie  Standard  Oil 
Co.  of  California  and  part  l>;  ow-ned  by  the 
Government   We  need  a  itoorough  »tvidy 


i_'.V>l 


CONGRESSIONAL  RECORD— HOI  St 


and  an  authorization.  What  I  have  told 
you  here  Is  a  matter  of  hiatory  and  which 
you  will  find  thoroughly  docxHnented  In 

the  CONGRKSSIONAL  RXCORO. 

Under  the  stress  of  the  moment  we 
entered  Ihto  a  contract  In  perpetuity 
which  the  Government  Just  could  not 
and  cannot  do.  A  contract  held  to  be 
illegal  later. 

Considering  that  history  I  do  not  think 
my  friend  from  Massachusetts  wants  to 
send  us  into  such  a  situation  again  with- 
out the  appropriate  committee  making  a 
thorough  study  in  order  to  make  sure 
we  are  protecting  the  Government  from 
the  contractors  who  would  like  to  rush 
in  and  make  such  a  contract  just  as  they 
did  before.  We  need  such  an  authoriza- 
tion 

Mr.  CONTE.  The  gentleman  Ls  ab- 
solutel>-  right,  but  what  he  is  speaking 
about  is  something  that  happened  35 
years  ago  In  World  War  n. 

Mr  WHTTTEN  But  the  principle  re- 
mains the  same  and  the  oil  reserve  re- 
mains the  same.  We  then  had  entered 
into  a  contract  in  a  hurry  without  think- 
ing it  through  and  without  proper  au- 
thorization 

Mr.  CONTE.  It  does  not  remain  the 
same,  because  you  are  talking  about 
Secretary  Knox,  who  is  dead  and  gone. 
We  are  in  a  crisis  today,  and  we  need 
the  oil. 

Mr.  WHTTTEN.  And  what  do  you  think 
we  had  in  World  War  II? 

Mr  MAHON  Mr  Speaker.  I  was  un- 
der the  impression  that  the  Members 
of  the  House  wanted  to  cletir  the  legis- 
lative calendar  and  go  home  for  Christ- 
mas. That  is  certainly  my  hope  Tomor- 
row we  expect  to  have  on  the  House  floor 
the  coriference  report  on  the  $74  billion 
defense  appropriation  bill  and  the  con- 
ference report  on  the  highly  controversial 
Foreign  Operations  appropriations  bill 
If  the  Members  want  to  send  this  bill 
back  to  the  conference  in  the  midst  of 
the  other  conferences  that  are  going  on 
nght  now.  it  looks  very  probable  that 
we  cannot  adjourn  sis  scheduled,  certain- 
ly not  tomorrow.  It  seems  to  me  to  be  in- 
appropriate to  try  to  settle  this  highly 
complex  Elk  Hills  problem  here  in  a  mo- 
tion to  recommit.  The  conferees  have 
considered  the  matter  and  make  a  com- 
promise agreement  which  Is  adequate  for 
the  present. 

Mr  Speaker,  the  Senate  added  m  this 
supplemental  appropriation  bill  the 
sum  of  $72  million  for  the  naval  petro- 
leum reserves.  Of  this  amount  some  $80  5 
million  was  for  increased  production  at 
the  Elk  Hills  Reserve  In  California  and 
the  remaining  $115  million  was  for  ad- 
ditional exploration  work  at  Elk  Hills 
and  at  Reserve  No  4  in  Alaska 

In  conference  it  was  agreed  that  the 
$7,500,000  needed  for  additional  explora- 
tion work  in  Alaska  would  be  provided 
and  all  the  funds  Included  in  the  Senate 
amendment  relating  to  either  increased 
production  or  exploration  at  Elk  Hills 
would  not  be  provided 

Mr  Speaker,  in  the  regiiiar  Defense 
appropriation  bill,  on  which  the  confer- 
ence report,  as  I  sUted.  wUI  be  consid- 
ered here  tomorrow,  there  is  included 
over  %8  million  for  the  naval  petroleum 


December  19,  1973 


reserrcs.  Thli  Is  an  Increaxe  of  about  $3 
million  over  the  amount  provided  last 
year  The  increase  is  also  for  additional 
exploration  and  development  work  at 
the  reserve  In  Alaska.  So  between  the 
amount  in  the  regular  Defense  bill  and 
the  amount  Included  in  this  supplemen- 
tal there  will  be  about  $16  million  avail- 
able for  the  exploration  and  development 
at  the  Naval  Petroleum  Reserves,  of 
which  about  $11  million  Is  for  work  In 
Ala-ska 

Mr  Speaker.  Congress  has  not  author- 
ized the  further  production  of  oil  at 
Elk  Hills,  and  there  Is  no  budget  estimate 
for  the  $72  million  which  was  added  in 
the  Senate 

The  matter  of  authorization  of  the  ex- 
pansion of  oil  production  at  Elk  Hills  Is 
now  being  con.sldered  by  the  House  Com- 
mittee on  Armed  Services,  and  I  believe 
the  matter  has  been  before  the  Armed 
Services  of  the  Senate.  Therefore  it  was 
agreed  in  conference  that  we  would  not 
get  Into  the  matter  of  Elk  Hills  at  this 
time. 

Most  of  the  $72  million  provided  In 
the  motion  to  recommit  could  not  be  util- 
ized unless  or  until  Congress  has  en- 
acted authorizing  legislation.  We  have 
provided  in  the  bUI  all  the  Navy  can  use 
now  After  the  authorizing  legislation  has 
been  considered  and  if  such  legislation  is 
enacted,  there  will  be  time  enough  to 
provide  the  necessary  funds  for  Elk 
Hills,  and  I  am  sure  that  Congress  would 
not  be  opposed  to  providing  whatever 
funds  will  be  required 

Mr,  Speaker,  the  motion  to  recommit 
Ls  premature  It  should  not  be  adopted. 
Congress  should  use  restraint  and  cau- 
tion and  not  approve  $72  million,  know- 
ing fuU  well  that  there  Is  no  authority  for 
the  expenditure  of  about  $60  million  In- 
cluded In  the  motion. 

Mr  Speaker,  I  see  that  the  gentleman 
from  Illinois  iMr.  Phicki  a  member  of 
the  Committee  on  Armed  Services,  is  on 
the  floor,  and  I  would  now  yield  to  the 
gentleman 

Mr  PRICE  of  nilnols  Mr  Speaker.  I 
think  it  would  be  a  very  serious  mistake 
if  we  did  not  support  our  House  con- 
ferees In  this  position  The  House  Com- 
mittee on  Armed  Services  for  years  has 
made  studies,  and  has  investigated  the 
naval  petroleum  reserves.  It  has  Juris- 
dlcUon  over  these  reserves.  And  In  the 
present  instance  the  investigative  sub- 
committee of  the  House  Committee  on 
Armed  Services,  headed  by  the  gentle- 
man from  LouLslana  'Mr  Hubert >  the 
chairman  of  the  full  Committee  on 
Armed  Services,  has  this  very  matter  un- 
der study  I  think  we  should  await  the 
results  of  the  study  of  the  investigative 
committee  of  the  House  Committee  on 
Armed  Services  For  this  reason  I  sup- 
port fully  the  position  of  the  House  con- 
fereef 

Mi-  MAHON  Mr  Speaker,  I  wou'd 
hope  that  the  House  will  not  recommit 
this  conference  report,  and  throw  us  Into 
a  snarl  when  we  are  already  so  over- 
loaded for  tomorrow,  and  possibly  for  the 
next  day  Next  year,  after  we  recon- 
vene, the  matter  of  authorizaUon  and 
subsequent  appropriations  can  be  taken 
into  consideration 
Mr  SMITH  of  Iowa,  Mr  Speaker,  since 


1970,  I  have  been  warning  of  an  energy 
crisis  and  urging  actlcai  and  planning 
to  meet  such  a  crisis.  TTiat  planiaiiK  ha.'; 
not  been  done  and  thas  the  [  ropos^^d 
motion  to  recommit  ■i;);)eii:s  ift  :ne  to 
be  a  dangerous  one. 

Guidelines  have  not  been  established 
for  letting  contracts  and  esUblishing  di- 
visions of  products  between  the  Govern- 
ment and  neighboring  oil  companies  ^<^ 
I  see  it.  a  yes  vote  on  the  motion  to  re- 
commit would  be  a  vote  l<3  hand  a  blimx 
check  U)  the  Administration  lo  enter  ii.to 
any  contract  they  want  to  with  Standard 
Oil  and  others  In  view  of  tiie  bad  ex- 
perience we  had  during  World  War  II. 
when  the  Government  ended  up  with 
very  bad  agreements,  and  the  tendency 
for  the  big  oil  companies  to  outdeal  Gov- 
ernment employees  who  are  acting  under 
no  restrictions,  this  may  very  well  be 
described  as  a  vote  to  authorize  these 
employees  to  enter  into  sweetheart  con- 
tracts with  Standard  Oil  and  others. 
Congress  should  first  set  up  guidelines 
and  limits  on  the  contracts. 

I  urge  a  no  vote  on  the  motion  to  re- 
commit. 

Mr  WHITTEN  Mr  Speaker,  under 
leave  to  extend  my  remarks  I  wish  to  list 
a  number  of  actions  taken  in  our  con- 
ference of  vital  Interest  to  all  and  par- 
ticularly to  my  area 

roRESTRY     mciNTIVES     PIOCBAM 

Pending  hearings  on  the  next  regular 
appropriation,  the  incentives  for  tree 
planting  for  the  remainder  of  the  current 
fiscal  year  shall  be  financed  under  the  co- 
operative tree-planting  program  of 
REAP,  where  up  to  80  percent  of  the 
cost  has  been  paid  by  the  United  States 
and  more  than  5.5  billion  seedlings  have 
been  set  out. 

CORPS     OP     BNOINESRS CIVIL:     aTMKHAl. 

INVESTIGATIONB 

The  managers  are  in  agreement  that 
the  amounts  for  the  studies  provided  for 
In  the  Senate  report  are  to  be  allocated 
within  available  funds. 

CONSTUDCnoK.      GENERAL 

The  managers  are  agreed  that  the  lan- 
guage included  In  the  House  and  Senate 
reports  relating  to  the  Tennessee-Tom- 
blgbee  Waterway  is  not  intended  and 
shall  not  operate  to  slow  down  In  any 
way  the  construction  of  this  project. 

FLOOD    CONTROL.     MISSISSIPPI     RIVER    AND 
TRtBUTARIXS 

Amendment  No  61 :  Appropriates  $14  - 
600.000  as  proposed  by  the  Senate  instead 
of  $7,600,000  as  proposed  by  the  House. 

PLANNING,     TECHNICAL     ASSISTANCE,     AND 
RXSTARCH 

Amendment  No.  69:  Appropriates  $6  - 
500,000  as  proposed  by  the  House 

Amendment  No  70:  Reported  in  tech- 
nical disagreement  The  managers  on  the 
part  of  the  House  will  offer  a  motion  to 
recede  and  concur  In  the  amendment  of 
the  Senate  with  an  amendment  as  fol- 
lows: 

Which  shall  be  available  for  extension 
of  grants  to  existing  Economic  Develop- 
ment Districts  and  planning  organlza- 
Uons.  including  administrative  expenses, 
and  to  fund  new  districts  which  meet  the 
requirements  of  42  U  S.C  3171.  as 
amended. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


425^5 


The  managers  on  the  part  of  the  Sen- 
ate will  move  to  concur  In  the  amend- 
ment of  the  House  to  the  amendment  oi 
the  Senate. 

Amendment  No.  71:  Reported  in  tech- 
nical dLsagreement.  The  managers  on  the 
part  of  the  House  will  offer  a  motion  to 
recede  and  concur  in  the  amendment  of 
the  Senate  providing  that  no  restrictions 
be  Imposed  in  the  authorization,  desig- 
nation, and  funding  of  new  economic  de- 
velopment districts  which  meet  the  re- 
quirements of  42  US  C  3 1 7 1  a.<;  amended. 

Mr.  MAHON  Mr  Speaker  I  have  no 
flU"ther  request.s  for  time 

Mr.  fEDERRFRC;  Mr  Sp..uiier,  I 
have  no  furulier  requests  for  time. 

Mr  M.AHON,  Mr,  Speaker.  I  move  the 
previous  question  on  the  conference  re- 
port. 

The  previous  question  was  ordered. 

MOTION    TO    RECOMMIT 

Mr,  CONTE  Mr.  Speaker,  I  offer  a 
motion  to   recommit. 

The  SPEAKER.  Is  the  gentleman  op- 
posed to  the  bill? 

Mr.  CONTE.  I  sure  am,  Mr.  Speaker. 

The  SPEAKER.  The  Clerk  will  report 
the  motion  to  recommit. 

The  Clerk  read  as  follows : 

Mr.  CoNTE  moves  to  recommit  the  con- 
ference report  on  the  bUl  (HR.  11576)  to 
the  committee  on  conference  with  the  fol- 
lowing Instructions  to  the  managers  on  the 
part  of  the  House :  To  Rgree  to  Senate  amend- 
ment No.  5. 

POINT    or    ORDER 

Mr.  MAHON  Mr.  Speaker.  I  make  a 
point  of  order  against  the  motion  to  re- 
commit on  the  ground  that  It  Is  legisla- 
tive, it  is  not  authorized  In  law.  Under 
the  precedents  of  the  House  a  motion  to 
instruct  conferees  or  to  recommit  a  bill 
to  conference  under  instructions  may  not 
include  Instructions  directing  the  House 
conferees  to  do  that  which  would  be  In- 
admlssable  if  offered  as  an  amendment 
in  the  House.  Cannon's  Precedents,  vol- 
ume 8,  section  3235. 

The  SPEAKER  The  point  of  order  Is 
not  In  order  at  this  time. 

Under  clause  2  of  rule  XX,  a  motion 
to  recommit  a  conference  report  with  in- 
structions to  House  conferees  to  agree  to 
a  Senate  amendment  which  violates 
clause  2,  rule  XXI  is  In  order.  The  motion 
to  recommit  offered  by  the  gentleman 
from  Massachusetts  does  not  instruct  the 
conferees  to  add  additional  legislation 
or  an  additional  unauthorized  item,  but 
merely  to  concur  in  Senate  amendment 
5. 

Without  objection,  the  previous  ques- 
tion Is  ordered  'on  the  motion  to  recom- 
mit. 

There  was  no  objection. 

The  SPEAKER.  The  question  Is  on  the 
motion  to  recommit. 

The  question  was  taken;  and  the 
Speaker  announced  that  the  noes  ap- 
peared to  have  It 

Mr  CONTE  Mr  Speaker.  I  object  to 
the  vote  on  the  groimd  that  a  quorum 
is  not  present  and  make  the  point  of 
order  that  a  quorum  is  not  present. 

The  SPEAKER.  Evidently  a  quorum 
is  not  present. 

The  Sergeant  at  Arms  will  notify  ab- 
sent Members. 


The  Vote  wa.^  taKeii  by  electronic  de- 
vice, and  liicre  were — yeas  216,  nays  180, 
not  voting  36,  as  follows: 


Alxlnor 

Abeur 

Anderson. 

Calif 
Andrews.  N  C. 
Andrews. 

N  Dak. 
Archer 
Armstrong 
Badlllo 
BafalU 
Baker 
Bauman 
Bergland 
Blester 
Blngbam 
Boland 
Brademas 
Brasoo 
Breaux 
Brlnkley 
Broomfleld 
BTOtzman 
Brown,  Calif 
Brown,  Ohio 
BroyhUl.  Va. 
Burgener 
Burke.  Fl» 
Burke.  Mas«. 
Camp 
Carey   N  Y 
Cederberg 
Chamberlain 
Cblsbolm 
Clausen. 

Don  H. 
Clawson,  Del 
Clay 

Cleveland 
Cohen 
Collier 
Conable 
Conlan 
Conte 
Conyers 
Corman 
Cotter 
Coughlln 
Cronln 
CxilTer 
D»tU,  S.C, 
Dellenback 
Dell  urns 
Devlne 
Dickinson 
Donobue 
Drlnan 
DulskI 
Duncan 
duPont 
Eckhardt 
Edwards.  Ala. 
Edwards.  Calif 
■•cb 

Eahleman 
Plndley 
Pish 
Foley 
Porsythe 
Prenzel 
Prey 

Proehllch 
Olalmo 
Oilman 


Adams 

Addabbo 

Annunxlo 

Arends 

Ashley 

Barrett 

Beard 

Bell 

Bennett 

BevlU 

Blaggl 

Blackburn 

Blatnik 

Boggs 

Bowen 

Bray 

Breckinridge 

Brooks 

Brown.  Mich 

BroyhUI.  N  C 


(RoU  No.  704) 

■nSAS— 218 

doodling 
Orasso 
Qreen,  Oreg. 
Green,  Pa 
Grover 
Oude 
Ouyer 
Hamilton 
Hammer- 
schmldt 
Hanley 
Hanraban 
Hansen,  Idah< 
Harrington 
Harsba 
Hastings 
Hechler,  W  Va 
Heckler,  Mass. 
Heinz 
HeUtoskI 
HlQshaw 
Hogan 
Holteman 
Horton 
Huber 
Hutchinson 
Jarman 
Johnson.  Oolo. 
Johnson,  Pa. 
K&rth 

Kastenmeler 
Keating 
Kemp 
Ketchum 
Koch 

Kuykendall 
Kyros 
Latu 
Leggett 
Lent 
Long,  La. 
Lujan 
McClory 
McCloskey 
McCoIlIster 
McOade 
McBwen 
McKlnney 
McSpadden 
Macdonald 
Madlgan 
Maliary 
Marazltl 
Martin,  N.C 
Matbias.  Calif 
Mayne 
Meeds 
Melcher 


O'Hara 

Parrls 

Peyser 

Preyer 

Prltchard 

Quie 

Rallsback 

Hang  el 

B«es 

Regula 

Reld 


N.Y. 


NT. 


Metcalfe 

Michel 

Miller 

MlnlEh 

Mink 

Mlnaball.Ohlo 

MltcbeU,  Md. 

Mitchell.  NY. 

Mlzell 

Moakley 

Moorhead. 

Caiif 
Moorhead,  Pa. 
Mosher 
Nelsen 
Obey 

NATS— 180 

Burleson.  Tex 
Burllson.  Mo. 
BuUer 
Byron 

Carney.  Ohio 
Carter 
Casey.  Tei. 
Chappell 
Clark 
Cochran 
Collins,  m. 
Collins.  Tex. 
Crane 
Daniel.  Dan 
Daniel.  Robert 

W  .  Jr 
Daniels. 

Domlnlck  V. 
Danlelson 
Darts.  Oa. 


R.:.a.clo 

ROblSOD. 

Rodlno 

Roe 

Rogers 

Roncallo. 

Rose 

Rosenthal 

RostenkowskI 

Rousb 

Rousselot 

Roy 

Roybal 

Ruppe 

Ruth 

St  Oermaln 

Sandman 

Saraaln 

Schneebell 

Sebellus 

Sboup 

Shuster 

Skubltz 

Snyder 

Stanton. 
J  WUllam 

Stark 

Steele 

Steel  man 

Stelger.  Ariz. 

St?r|er.  Wis. 

Stokes 
/Studds 
J  Bull  Ivan 
I  Symms 
jTalcott 

T>ague,  Calif. 

Thompson,  N  J. 

Thone 

Thornton 

Tleman 

Towell.  Nev 

Udall 

iniman 

Waldle 

Ware 

Wtaalen 

Wldnall 

Wiggins 

Williams 

WUson.  Bob 

Winn 

Wolff 

Wyatt 

Wydler 

Wylle 

Young.  Alaska 

Young.  Pla. 

Young.  S  C. 

Zablockl 

ZIon 


Davis.  Wis 

de  la  Oarza 

Denbolm 

Dennis 

Derwlnskl 

Disss 

Dln^ell 

Dorn 

Downing 

Ell  berg 

Erlenborn 

Krans.  Colo. 

PasceU 

Plkher 

Flood 

Plynt 

Pord. 

WUllam  D. 
Fountain 
Pulton 


Fuqua 

Oaydos 

Oettya 

Olbbona 

Olnn 

Oonzalez 

Gray 

Gross 

Ounter 

Haley 

Hawkins 

Hays 

Henderson 

Hicks 

HlUls 

Hollfleld 

Holt 

Hosmer 

Howard 

Hudnut 

Hungate 

Hunt 

Ichord 

Johnson.  Calif. 

Jones,  Ala. 

Jones,  N.C. 

Jones,  Okla. 

Jones,  Tenn, 

Jordan 

Kazen 

King 

Kluczynskl 

Land  grebe 

Lehman 

Litton 

Long,  Md. 

Lott 

McCormack 

McPall 

McKay 

Madden 

Mahon 

Mann 


Mathls,  Ga 

Matsunaga 

Massmlt 

liMirtnaky 

MUford 

Mollohan 

Montgomery 

Morgan 

Moaa 

Murphy,  m. 

Murphy,  NY. 

My«a 

Natcber 

Nedzl 

Nicbols 

Nix 

O'Brten 

O'NeUl 

Owens 

Passman 

Patman 

Patten 

Pepper 

Perkins 

Pickle 

PUe 

Poage 

Podell 

Powell.  Ohio 

Price,  El 

Price.  Tex. 

Quillen 

Randall 

Rhodes 

Roberts 

Robinson.  Va. 

Roncallo,  Wyo. 

Rooney,  Pa. 

Runnels 

Sarbanes 

Satterfleld 

Schroeder 

Selberllng 


Shipley 
Shrlver 
81k  es 
Slack 

Smith.  Iowa 
Smith,  N.Y. 
Spence 
Stagger* 
Stanton. 

James  V 
Steed 
Stephens 
Stratton 
Stubblefleld 
Stuckey 
Symington 
Taylor.  N.C. 
Tmcu*.  Tex. 
Tboawcn,  Wis. 
Treen 

Vander  Jagt 
Vaalk 
VIgorlto 
Waggonner 
W  ampler 
White 
Wtiltehurst 
Whitten 
WUson. 

Charles  H., 

Calir. 
Wilson. 

Charles,  Tex. 
Wright 
Wyman 
Yates 
Yatron 
Young.  Oa 
Young,  m. 
Young.  Tex. 
Zwach 


NOT  VOTING — 36 


Alexander 
Anderson,  m. 
Ash  brook 
Aspln 
Boiling 
Buchanan 
Burke,  Calif. 
Burton 
Clancy 
Oelaney 
Dent 
Evins,  Tenn. 


Flowers 

Fraaer 

Prellnghuysen 

Gold  water 

Onfflths 

Oubter 

Hanna 

Hansen.  Wash. 

Harvey 

Hibert 

Lpandrum 

MallUard 


Martin,  Nebr. 
Mills.  Ark. 
Pettis 
Rarlck 
Rooney.  N.Y. 
Ryan 
Scberle 
Slsk 

Taylor.  Mo. 
Van  Deerlln 
Veysey 
Walsh 


So  the  motion  to  recommit  was  agreed 
to. 

The  Clerk  annoimced  the  following 
pairs : 

On  this  vote : 

Mr  Prellnghuysen  for.  with  Mr.  H*bert 
against. 

Mr.  Pettis  for.  with  Mr.  Tfcylor  of  Missouri 
against. 

Mr  Anderson  of  Illinois  for.  with  Mr. 
Rarlck  against. 

Mr  Ooldwater  for.  with  Mr.  Landrum 
against. 

Mr.  Scberle  for.  with  Mr  Dent  against 

Mr.  Clancy  for.  with  Mr.  Rooney  of  New 
York  against. 

Until  further  notice: 

Mrs  OnfBths  with  Mr  Aspln 

Mr.  Alexander  with  Mr  Burton. 

Mrs.  Burke  of  California  with  Mr.  Praser. 

Mr.  Evins  of  Tennessee  with  Mr  Mills  of 
Arkansas. 

Mr.  Delaney  with  Mr.  Oubser. 

Mr.  Ryan  with  Mr  Buchanan. 

Mr.  Slsk  with  Mr.  Martin  of  Nebraaka. 

Mr.  Van  Deerlln  with  Mr   Aahbrook. 

Mr  Hanna  with  Mr  Walsh 

Mrs  Hansen  of  Washington  with  Mr  Mafl- 
liard. 

Mr.  Plowers  with  Mr.  Harvey. 

The  result  of  the  vote  was  announced 
as  above  recortled. 


GENERAL  LEAV^ 

Mr  MAHON  Mr  Speaker,  I  ask  unan- 
imous  consent   that   all   Members   may 


42.>^; 


have  5  leglslaUve  days  In  which  to  revise 
and  extend  their  remarks  and  to  Insert 
appropriate  extraneous  material  in  con- 
nection with  the  conference  report 
which  has  just  been  recommitted 

The  SPEAKER,  Is  there  obJecUon  to 
the  request  of  the  gentleman  from 
Texas? 

There  was  no  objection 


CONGRESSK  ^\  \I    F<{  C  ORD—  HOLSE 


NATIONWIDE  OUTDOOR  RECREA- 
TION PLAN— MESSAGE  FROM  THE 
PRESIDENT  OF  THE  UNTTED 
STATES 

♦u'^*',,®^^^^^^^  '^'<^  ^'ore  the  House 
the  following  message  from  the  President 
of  the  United  States;  which  was  read 
and.  together  with  the  accompanying  pa- 
pers, referred  to  the  Committee  on  In- 
tenor  and  Insular  Affairs; 

To  the  Congress  of  the  United  States 

It  IS  with  pleasure  that  I  transmit  the 
Nationwide  Outdoor  Recreation  Plan 
Outdoor  RecreatioTir—A  Legacy  For 
America.  This  Plan  has  been  developed 
in  response  to  Public  Law  8»-29 

The  Plan  is  designed  to  set  forth  a 
framework  for  guiding  the  programs  of 
the  Federal  Government.  State  and  lo- 
cal governments,  and  the  private  sector 
in  providing  outdoor  recreation  oppor- 
timities  in  America.  ^ 

-.      ,„  '    Richard  Nixon. 

iHK  WHmt  Hoc»sr   December  19,  1973. 


APPOINTMENT  OF  CONFEREES  ON 
H^R  3153.  AMENDING  SOCIAL  SE- 
CURITY  ACT 

Mr.  ULLMAN  Mr.  Speaker,  I  ask 
unanimous  consent  to  take  from  the 
Speakers  table  the  bill  .HR  3153'  to 
amend  the  Social  Security  Act  to  make 
certam      technical      and      conforming 

ti^',^J^^  ^^  S«^*  amendment! 
thereto,  disagree  to  the  Senate  amend- 
ments, and  agree  to  the  conference  re- 
quested by  the  Senate 

The  SPEAKER  Is  there  objection  to 
the  request  of  the  gentleman  from  Ore- 
gon^ The  Chair  hears  none,  and  ap- 
points the  foUowing  conferees:  Messrs 
Ullman.  Bcrke  of  Massachusetts 
Mrs    GRirrTTHs.  Messrs    Rostenkowski" 

SCHNEIBtU.     COLUKR     and     BlOTHILL     Of 

Virgmia. 


CONFERENCE  REPORT  ON  H  R    5874 

FEDERAL    FINANCING    BANK    ACT 
OP    1973  n-    rtv,i 

Mr.  UlAMAN  Mr  Speaker,  I  call  up 
the  conference  report  on  the  bUl  -HR 
M,4.  to  establish  a  Federal  Financing 
Bank,  to  provide  for  coordinated  and 
more  efBcient  financing  of  Federal  and 
federally  assisted  borrowings  from  the 
pubUc.  and  for  other  purposes  and  ask 
unanimous  consent  that  the  statement  of 
the  managers  be  read  in  lieu  of  the  re- 
port. 

The  Clerk  read  the  tiUe  of  the  bill 
The  SPEAKER    Is  there  objection  to 
the  request  of  the  gentleman  from  Ore- 
gon? 

There  was  no  objecUon 

The  Clerk  read  the  statement. 

'For  conference  report  and  statement. 


see  proceedings  of  the  House  of  Decem- 
ber 5.  1973  ' 

Mr    ULLMAN   (during  the  reading) 
Mr.  Speaker.  I  ask  unanimous  consent 
that  the  further  reading  of  the  state- 
ment of  the  managers  be  dispensed  with 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  genUeman  from  Ore- 
gon? 

There  was  no  objection 

Mr  ULLMAN  Mr  Speaker.  I  yield  my- 
self 10  minutes 

Miv  Speaker.  I  call  up  the  conference 
report  on  the  bill.  H  R,  5674.  This  bill 
establishes  a  Federal  Financing  Bank  de- 
signed to  centralize  the  marketing  of 
Federal,  and  federally  assisted  borrow- 
irig^  In  addition,  the  blU  requires  most 
Federal  agencies  to  submit  the  financing 
plans  for  securlUes  they  Issue  or  seU  for 
advance  approval  by  the  Secretary  of 
the  Treasury,  who  is  to  be  the  Chairman 
of  the  Federal  Financing  Bank's  Board 
of  Directors. 

^v^^rf^  *■"*  ^^^  ^^^  o'  difference  in 
^,t  ?°"^  ^^  Senate  versions  of  the 
bill.  In  the  conference,  the  House  con- 
ferees prevailed  on  three  of  the  provi- 
sions, but  receded  to  the  Senate  on  the 
other  two. 

The  first  provision  in  disagreement  was 
the  issue  of  whether  advance  approval  of 
financing  plans  by  the  Secretary  of  the 
Treasury  would  be  necessary  for  debt  is- 
sues ^aranteed  by  the  US.  Government, 
The  House  bUl  provides  for  advance  ap- 
proval for  obligations  issued  or  sold  by 
any  Federal  agency,  but  it  does  not  re- 
quire prior  approval  for  obligations  guar- 
anteed by  any  Federal  agency.  The  Sen- 
a^.  on  the  other  hand,  provided  that  the 
isecretarys  advance  approval  would  be 
necessary  for  guaranteed  issues  exceot 
for  certain  obligations  guaranteed  m  cdh- 
nection  with  programs  involving  lante 
numbers  of  Individual  obligations  The 
House  took  the  posiUon  that  at  this  time 
JTuaranteed  issues  should  not  require  ad- 

enect  on  the  substantive  provisions  of 
an  agency  s  program  if  the  financing  was 
held  up  or  changes  were  required  before 
approval  was  granted  ««"": 

a^minf  ^"P."-  '\  ^  believed  that  another 
administrative  level  could  cause  delays 
which  could  be  detrimental  to  the  guar- 
anteed programs.  Finally,  there  was  con- 
cern about  the  possible  adverse  effects 
on    established    securities    markets    for 

^^l^  *^"""  ^  «"*^^  *ere  Z 

^^f^^  ^  "^''^^  °"^  through  the  Ped- 

ft       ^^^''i"*  ^^^    We  believed  that 

t  would  be  better  to  exclude  guaranteed 

^^?y.  "^  l^l^  ^^-  ""-^^  ^^  understa^ 
hig  that  this  decision  could  be  reconsid- 
ered at  a  later  time  when  we  have  more 
experience  with  the  operation  of  advance 
approval  procedures  and  the  Federal  Fi- 
nancing Bank  generally  The  Senate  con- 
ferees agreed  and  receded  from  their  po- 
sition on  this  Issue 

The  second  provision  in  conference  re- 
lated to  the  treatment  of  obligations  Is- 
sued or  sold  by  the  Farmers  Home  Ad- 
mimstration;  that  is  whether  they 
should  be  exempt  from  the  prior  approval 
requirement  This  exemption  was  added 
by  the  Senate  because  It  was  concerned 
that  delays  in  issuing  the  securities 
might  hold  up  funding  for  rural  housing 


December  19,  1973 

In  view  of  the  fact  that  this  agency  al- 
ready coordinates  Its  activities  with  the 
Secretary  of  the  Treasury,  and  since  the 
House  conferees  understand  that  the 
agency  Intends  to  continue  doing  so  even 
tftough  this  exemption  does  not  require 
It  to  receive  advance  approval,  we  agreed 
to  the  Senate  provision 

A  third  issue  before  the  conferees  was 
the  question  of  whether  to  place  a  limit 
on  the  Ume  allowed  the  Secretary  of 
rreasury  for  giving  advance  approval 

iS  IhI^k  ^.°"^  ^"^^^  ^^^  Secretary-  may 
not  withhold  approval  of  the  financing 
Plans  for  obUgatlons  to  be  issued  or  sold 
Th.^on^J  ^K«"^les  for  a  period  of  more 
than  120  days,  unless  he  submits  to  Con- 
gress a  detailed  explanation  of  his  rea- 
sons for  doing  so  The  Senate  did  not 
permit  the  Secretary  to  withhold  his  ap- 
proval longer  than  60  days  without  sub- 
mitting his  reasons  to  Congress  and  in 
no  case  could  the  Secretary  withhold 
approval  of  an  issue  longer  than  120 
days.  In  addition,  the  Senate  amend- 
ment provides  that,  to  the  maximum  ex- 
tent pracucable.  withholdings  of  ap- 
proval are  to  be  made  in  a  manner  which 
IS  not  disproportionately  detrimental  to 
the  functioning  of  any  parUcular  type  of 
Federal  program.  j'^^"* 

»K^®  House  conferees  concluded  that 
the  Senate  requirement  of  a  report  to 
Sn^^^  ^^^^  Secretary  in  explana- 
tion of  delaying  approval  longer  than  60 
days  would  not  be  a  heavy  burden  and 
that  such  a  delay  .should  be  based  upon 
substantial  grounds    Moreover.  In  prac- 
tice, there  probably  is  little  meaningful 
-^^ft^'^o   "^'^een   the   House   position 
and  the  Senate  position,  which  does  not 
permit  the  Secretary  to  withhold  his  ap- 
proval longer  than  120  days.  This  is  be- 
cause  the  role  of  the  Secretary  of  the 
Treasury  under  the  bill  is  to  smooth  the 
now  of  Federal  agency  securities  to  the 
market*   by   renewing   the   timing  and 
Dasic  terms  and  condiUons  of  each  is- 
sue.  Ordinarily,   this   involves  selecting 
altemaUve  dates  for  going  to  the  market 
and     someUmes     consolidating     issues 
These  requirements  can  be  met  by  the 
Secretary  of  the  Treasury  within   the 
time  limits  in  the  Senate  bUl    Further- 
niore,  the  hill  is  not  designed  to  enable 
the  Secreterj-  to  refuse  completely  to  al- 
low a  program  to  be  financed  As  a  result 
Since  the  House  conferees  believe  that 
the  Senate  s  version  is  consi.stent  with  the 
intent  of  the  House  bill,  we  agreed  with 
the  Senate  provisions. 

With  respect  to  the  fourth  issue  the 
House,  but  not  the  Senate,  provided  thnt 
nothing  in  the  act  may  be  construed  as 
providing  additional  authority  to  Federal 
agencies  to  borrow  or  to  guarantee  debt. 
T^is  provision  gives  assurance  that  ad- 
ditions to  present  borrowing  authority 
must  be  obtained  from  Congress  The 
Senate  agreed  with  us  on  this  provision 
The  fifth,  and  last,  issue  before  the 
conferees  was  a  Senate  amendment 
which  would  State  as  the  sense  of  Con- 
gress that  the  United  States  take  ap- 
propriate measures  to  enable  u  to  sell 
gold  from  Its  gold  stocks  to  llcen.sed  do- 
mestic users  as  soon  as  is  desirable  in 
view  of  domestic  and  foreign  considera- 
tions with  respect  to  gold  markets  and 
the  balance  of  payments  Since  the  pro- 
vision is  not  germane  to  this  bUl  and 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42567 


In  any  event,  would  have  little  effect  since 
It  only  expresses  the  sense  of  Congress, 
the  House  conferees  prevailed  and  the 
Senate  conferees  receded  from  its  posi- 
tion on  this  provision. 

The  conferees  recommend  that  the 
House  accept  the  conference  report  on 
H.R.  5874, 

I  now  yield  to  the  ranking  minority 
member,  the  gentleman  from  Pennsyl- 
vania <Mr.  SCHNEEBELIt. 

Mr.  SCHNEEBELI.  Mr,  Speaker,  I  rise 
in  support  of  the  conference  report  on 
the  Federal  Financing  Bank  Act  of  1973. 
This  legislation,  which  was  recommended 
by  the  administration  both  In  this  as 
well  as  the  last  Congress,  is  necessary  to 
provide  for  coordinated  and  more  efB- 
cient financing  of  Federal  and  federally 
assisted  borrowings  from  the  public.  The 
bill  agreed  to  by  the  conferees  will  allow 
the  Government  to  do  this  and.  at  the 
same  time,  .should  cut  the  costs  associ- 
ated with  Government  borrowing. 

The  legislation  previously  approved  by 
both  bodies  provides  for  the  establish- 
ment of  a  Federal  Financing  Bank  In  the 
Department  of  the  Tretisury  which  would 
be  the  focal  point  for  the  marketing  of 
Federal  borrowing  activities.  It  calls  for 
the  advanced  submission  by  Federal 
agencies  of  financing  plans  to  the  Sec- 
retary of  the  Treasur>'  and  for  Treasury 
approval  of  the  method  and  source  of 
the  financing,  timing,  rates  of  interest, 
maturities,  and  all  other  financing  terms 
and  conditions  associated  with  the  fi- 
nancing of  Federal  obligations. 

There  were  several  main  points  of  dis- 
agreement between  the  House  and  Sen- 
ate versions  of  this  legislation,  which  I 
want  to  briefly  describe 

While  both  bills  required  prior  ap- 
proval by  the  Secretary  of  the  Treasury 
of  the  financing  plans  for  most  Federal 
obligations,  the  House  bill  limits  the 
prior  approval  requirement  to  obligations 
issued  or  sold  by  any  Federal  agency  but 
exempts  obligations  guaranteed  by  the 
Federal  agencies.  The  Senate  bill  in- 
cluded these  guaranteed  obligations,  and 
the  conference  accepted  the  House 
provision. 

In  addition,  the  Senate  bill  exempts 
from  the  mandatory  requirements  of  the 
bill,  the  Farmers  Home  Administration, 
It  should  be  noted  that  nothing  In  the 
Senate  version  prohibits  the  FHA  from 
voluntarily  submitting  to  the  authority 
of  the  Federal  Financing  Bank,  and  the 
conferees  were  advised  that  the  FHA 
plans  to  do  so.  The  conferees  agreed  on 
the  Senate  provision 

Also,  the  conferees  accepted  an  ex- 
emption for  obligations  Issued  or  sold 
pursuant  to  an  act  of  Congress  which  ex- 
pressly prohibits  any  guarantee  of  such 
obligations  of  the  United  States  This  ex- 
emption applies  to  obligations  Issued  or 
sold  by  the  Tennessee  Valley  Authority, 

Under  the  House  version,  the  Secretary 
of  the  Treasury  could  not  withhold  his 
approval  for  agency  financing  of  obliga- 
tions for  more  than  120  days  unless  he 
has  submitted  a  detailed  explanation  to 
Congress  for  so  doing.  Under  the  Senate 
version,  that  period  is  reduced  to  60  days 
with  the  added  requirement  that  in  no 
event  could  he  deny  approval  for  more 
than  120  days  The  House  receded  on  this 
point. 


The  Senate  version  conlained  a  pro- 
vision stating  that  to  the  maximum  ex- 
tent possible  withholding  of  approval 
may  not  be  made  in  a  way  which  wiii  be 
disproportionately  detrimental  to  any 
particular  type  of  Federal  program.  The 
House  conferees  felt  this  provision  was 
soimd  and  accordingly  agreed  to  accept 
it.  Simllarlj-,  the  Senate  conferees  agreed 
to  accept  a  provision  in  the  House  bill 
that  states  that  nothing  in  the  bill  is  to 
be  construed  as  authorizing  an  increase 
in  existing  borrowing  authority  of  any 
Federal  agency. 

Finally,  the  Senate  bUl  contained  a 
provision  declaring  it  to  be  the  sense  of 
Congress  that  the  United  States  take 
necessary  steps  to  provide  for  the  sale 
of  U.S.  gold  to  domestic  users.  The  House 
conferees  insisted  on  the  deletion  of  this 
provision  primarily  on  the  grounds  that 
legislation  relating  to  the  sale  of  gold  is 
under  the  jurisdiction  of  the  House 
Baunklng  and  Currency  Committee  and 
that  that  committee  had  not  acted  on 
the  subject.  The  Senate  receded  on  this 
provision, 

Mr.  Speaker,  this  legislation  is  neces- 
sary for  more  effective  and  efBcient  man- 
agement of  Federal  financial  obligations. 
The  provisions  in  the  version  of  this  leg- 
islation agreed  to  by  the  conferees  are 
sound  and  should  be  supported.  I  urge 
approval  of  this  conference  report. 

Mr.  ULLMAN.  Mr.  Speaker,  I  move 
the  previous  question  on  the  conference 
report. 

The  previous  question  was  ordered. 

The  conference  report  was  agreed  to. 

A  motion  to  reconsider  was  laid  on 
the  table. 


GENERAL    LEAVE 

Mr.  ULLMAN.  Mr.  Speaker,  I  ask 
unanimous  consent  that  all  Members 
may  have  5  legislative  days  in  which  to 
revise  and  extend  their  remarks  on  the 
conference  report  just  agreed  to. 

The  SPEAKER,  Is  there  objection  to 
the  request  of  the  gentleman  from  Ore- 
gon? 

There  was  no  objection. 


ENERGY  REORGANIZATION  ACT  OF 
1973 

Mr,  YOUNG  of  Texas,  Mr.  Speaker, 
by  direction  of  the  Committee  on  Rules, 
I  call  up  House  Resolution  745.  and  ask 
for  its  immediate  consideration. 

The  Clerk  read  the  resolution,  as  fol- 
lows: 

H     Res     745 

A««oIt>ed,  Tluit  upon  the  adoption  of  tills 
resolution  it  siiall  be  In  order  to  move  tliat 
the  House  resolve  itself  into  the  Commitlee 
of  the  Whole  House  on  the  State  of  the 
Union  for  the  consideration  of  the  bill 
(HJl.  11610)  to  reorganize  and  consolidate 
certain  functions  of  tlie  Federal  Govern- 
ment in  a  new  Energy  Research  and  Derel- 
opment  Administration  and  in  a  Nuclear 
Energy  Commission  In  order  to  promote  more 
efficient  management  of  such  functions 
After  general  del>ate,  which  shall  be  con- 
fined to  the  bill  and  shall  continue  not  to 
exoaed  two  hours,  to  be  equally  divided  and 
oontroU«d  by  the  chairnia:.  a.nd  ranking 
minority  member  of  the  Committee  on  Got- 
errunen;  (Operations,  the  bill  shall  be  re«£i  .'^4- 
anie.'.diiieM    under   the    ftve-ruU.uie    rul*     It 


shall  be  In  order  to  coacld«r  the  axoend- 
m»nt  in  tlie  nature  o€  a  substitute  recom- 
mended by  the  Committee  on  Government 
Operationa  now  printed  in  the  bill  as  an 
original  bill  for  the  purpose  of  amendment 
under  the  five-minute  role,  said  substitute 
shall  be  read  for  amendmeni  by  titles  in- 
stead of  by  sections,  and  all  pomle  of  order 
agalnsi  sections  lot.  ;o5,  106,  iLte,  3aa  and 
311  of  said  substitute  lor  faiiure  to  comply 
with  the  provisions  of  c'.ause  4,  ru'ie  XXI 
are  here-by  waived  At  tr.e  oori.-:us;on  o' 
such  confrtderatlor,  the  Committee  ^hai:  rise 
and  report  the  bill  to  the  Hou.se  with  such 
ameijdments  as  may  have  be«>r,  adopt.e<2 
and  any  Membe.'  may  demand  a  separate 
vote  In  tne  House  ou  any  amenGment 
adopted  in  the  Committee  of  tLe  ^hoie  to 
the  bill  or  to  the  committee  amendment  In 
the  nature  of  a  substitute.  The  previous 
question  shall  be  considered  as  ordered  on 
the  bin  and  amendmente  thereto  to  final 
passage  without  intervening  motion  except 
one  motion  to  recommit  with  or  wTthoui 
instructlona. 

The  SPE.\KER  The  gentleman  from 
Texas  'Mr.  Young )  is  recognized  for  1 
hour. 

Mr.  YOUNG  of  Texas.  Mr.  Speaker.  I 
yield  30  minutes  to  the  gentleman  from 
Tennessee  'Mr.  Qttilleni  pending  which 
I  yield  m^-self  such  time  as  I  may 
consume. 

Mr,  Speaker,  House  Resolution  745 
provides  for  an  open  rule  with  2  hours  of 
general  debate  on  HR.  11510,  a  bill  tore- 
organize  and  consolidate  certain  func- 
tions of  the  Federal  Government  In  a  new- 
Energy  Research  and  Development  Ad- 
ministration smd  in  a  Nuclear  Energ>' 
Commission. 

Hou5e  Resolution  745  provides  it  shall 
be  in  order  to  consider  the  amendment  In 
the  nature  of  a  stibstltute  recommended 
by  the  Committee  on  Government  Opera- 
tions now  printed  In  the  bill  a-=  an  orig- 
inal bill  for  the  purpose  of  amendment 
House  Resolution  745  also  provides  that 
the  substitute  shall  be  read  for  amend- 
ment by  title.s  instead  of  by  sections  and 
points  of  order  against  sections  104.  105. 
106,  108.  302.  and  311  of  the  sub.'^titute  for 
failure  to  comply  with  the  provisions  of 
clause  4,  Rule  XXI  of  the  Rules  of  the 
House  of  Represer.tatives  'prohibiting 
appropriations  in  a  legislative  bill  > . 

The  new  Energ>  Research  and  De- 
velopment .^dmmistratlon  created  by  the 
bill  will  be  headed  by  an  .Admir.i5trator 
who  will  be  appointed  by  the  President 
with  the  advice  and  consent  of  u:e  Sen- 
ate. Ser^-lng  under  the  Administrator  will 
be  five  Assistant  Administrators,  who 
respectlvelj-.  will  head  the  following  five 
major  areas  of  ERDA.  First  t(js,s2  enerry 
development;  second,  nuclear  er.ergy  de- 
velopment: third,  research  and  advanced 
energj-  systems:  fourtii,  en\iror.jnent, 
safety  and  conservation;  and  fifth,  na- 
tional security. 

Mr  Speaker.  I  urge  adoption  of  House 
Resolution  745  In  order  that  we  may  dis- 
cu:is  and  debate  H  R,  11510 

Mr  QUILLEN  Mr.  Sp^i^er.  I  yield 
mvself  such  time  as  I  may  consume. 

Mr  Speaker.  House  Resolution  745 
provides  for  the  consideration  of  HJR 
11510,  the  Energj-  Reorganization  Act  of 
1973,  under  an  open  rule  with  2  hours  of 
general  debate.  In  addition,  the  rule 
makes  the  committee  substitute  in  order 
a.N  an  original  bill  for  the  purpose  of 
aniendment.  pro\ides  that  the  substitute 


CXIX- 


-3681— Part  33 


42568 


CONGRESSIONAL  RECORD— HOUSE 


be  read  for  amendment  by  titles  instead 
of  by  sections,  and  waives  all  points  ol 
order  against  sections  104.  105,  106.  10«, 
302.  and  311  of  the  substitute  for  failure 
to  comply  wjtii  clause  4  of  noJe  XXI. 
which  deals  with  transfer  of  funds. 

The  bill  provides  for  the  creation  of 
an  Independent  Energ>-  Research  and 
Development  Administration— ERDA— 
which  will  Include  nonregoilatory  func- 
tions of  the  Atomic  Energy  Commission, 
plus  energy  research  and  development 
programs  from  other  agencies. 

The  bill  also  provides  that  the  Atomic 
Energy  Commission  be  renamed  the  Nu- 
clear Energy  Commission,  and  continue 
as  a  smaUer  organization  to  administer 
nuclear  licensing  and  related  functions. 

This  bill  is  relatively  narrow  in  scope. 
It  is  directed  toward  research  and  devel- 
opment. Other  reorganizaUon  legislation 
will  be  necessan. .  For  example,  the  Presi- 
dent has  proposed  creation  of  a  Federal 
Energy  Administration,  which  is  the  sub- 
ject of  separate  legislation.  This  research 
and  development  bill  is  directed  more  at 
long-range  problems,  while  the  bill  to  set 
up  a  Federal  Energy  Administration  will 
be  directed  more  toward  short-range 
problems. 

The  agency  set  up  in  this  bill.  ERDA 
will  be  headed  by  a  single  Administrator 
who.  along  with  the  Deputy  Administra- 
tor, will  be  appointed  by  the  President 
with  the  approval  of  the  Senate. 

Under  the  Administrator,  there  will  be 
five  Assistant  Administrators,  who  will 
head  the  following  five  major  missions 
of  ERDA;  One.  fossil  energy  develop- 
ment: two.  nuclear  energj-  development; 
three,  research  and  advanced  energj-  sys- 
tems; four,  environment,  safety  and  con- 
servation; and  five,  national  securitv. 

The  cost  of  this  bill  is  estimated  to  be 
S4  million  per  year. 

Mr.  Speaker.  I  have  no  requests  for 
time,  but  I  reserve  the  balance  of  my 
time. 

Mr  YOUNG  of  Texas  Mr.  Speaker  I 
yield  2  minutes  to  the  distinguished  gen- 
tleman from  Ohio  iMr.  Vanik>. 

Mr.  VANTK.  Mr.  Speaker.  I  am  going 
to  follow  this  debate  verj-  carefullv  on 
this  bill  I  have  several  concerns.  First 
of  all.  I  am  concerned  why  all  of  the 
thrust  for  our  energy  research  should 
start  off  under  the  aegis  of  the  Atomic 
Energy  Administration. 

I  certainly  hope  that  during  the  course 
of  the  debate  on  this  bill  this  issue  might 
be  cleared  up  so  that  when  we  discuss  the 
problem  of  energy,  we  think  about  It  as 
a  broad -based  problem  and  deal  with  it 
equally  as  to  petroleum,  coal,  solar  en- 
ergy, geothermal  and  other  energy- 
forces.  I  think  it  would  be  a  mistake  if 
we  should  start  oCT  concentrating  all  of 
our  energy-  research  with  a  biased  base 
In  nuclear  research.  I  think  energj-  re- 
search should  cover  the  whole  spectrum 
of  energj',  and  I  shall  look  forward  to 
some  clarification  of  this  Issue  during 
the  course  of  the  debate. 

Mr.  YOUNG  of  Texas.  Mr  Speaker  I 
move  the  previous  question  on  the  reso- 
lution. 

The  previous  question  was  ordered. 
The  resolution  was  agreed  to. 
A  motion  to  reconsider  was  laid  on  the 
table. 

Mr.  HOLIFIELD.  Mr.  Speaker.  I  move 


that  the  House  resolve  itself  Into  the 
Committee  of  the  Whole  House  on  the 
State  of  the  Union  for  the  consideration 
of  the  bill  iHR.  IISIO  to  reorganize 
and  consolidate  certain  functions  of  the 
Federal  Government  in  a  new  Energy 
Research  and  Development  Administra- 
tion and  In  a  Nuclear  Energy  Commis- 
sion in  order  to  promote  more  efficient 
management  of  such  functions. 
The  motion  was  agreed  to. 

tl«     THX     COMMnrtX     OF     THI     WHOLE 

Accordingly,  the  House  resolved  It- 
self into  the  Committee  of  the  Whole 
House  on  the  State  of  the  Union  for  the 
consideration  of  the  bUl  H.R.  11510.  with 
Mr.  RosTtNKow-sKi  in  the  chair 

The  Clerk  read  the  tiUe  of  the  bill 

By  unanimous  consent,  the  first  read- 
ing of  the  bill  was  dispensed  with 

The  CHAIRMAN.  Under  the  rule,  the 
genUeman  from  Caltfomia  (Mr  Hou- 
riELD  >  will  be  recognized  for  1  hour,  and 
the  gentleman  from  New  York  ( Mr  Hor- 
TON  >  will  be  recognized  for  1  hour. 

The  Chair  recognizes  the  gentleman 
from  California. 

Mr.  HOLIFIELD.  Mr.  Chairman  I 
yield  myself  such  time  as  I  may  consume 

Mr.  Chairman,  in  the  30  vears  I  have 
been  privileged  to  serve  in  the  House  of 
RepresentaUves.  I  have  brought  before 
this  body  many  legislative  measures  of 
importance  to  our  naUonal  well-being 
It  Is  my  sincere  belief,  however,  that 
none  was  more  urgently  needed  than  the 
bill  now  under  consideration.  It  deals 
with  the  energy  crisis  and  the  Nations 
energy  needs  for  years  and  generations 
to  come. 

I  have  been  long  concerned  and  have 
spokwi  out  many  times  about  the  prob- 
lem of  assuring  an  adequate  supplv  of 
clean  energy  for  the  decades  ahead  Now 
finally,  the  crunch  of  energy  shortages 
has  forced  the  spotlight  of  full  attenUon 
on  this,  our  most  urgent  and  national 
dilemma.  The  hour  is  late  The  people 
want  action.  Large  sums  of  money  win 
be  needed,  but  money  alone  cannot  solve 
our  problems. 

We  need  an  organizational  framework 
for  energy  policies  and  programs,  the 
policies  and  programs  that  will  bring 
this  Nation  to  self-sufficiency  in  energy 
supplies.  We  need  a  central  agencv  to 
develop  these  policies  and  foster  these 
programs. 

H.R.  11510  has  been  carefully  de- 
signed to  achieve  these  purposes. 

This  bill  was  unanimously  adopted  by 
the  Legislation  and  Military  Operations 
Subcommittee  of  the  Committee  on  Gov- 
ernment Operations,  which  I  have  the 
honor  to  chair  It  was  reported  out  by 
the  Committee  on  Government  Opera- 
tions without  a  single  dissenting  vote. 
All  members  were  present  but  one. 

The  legislation  it  embodies  is  carefully 
distilled  essence  from  a  number  of  legis- 
lative proposals  during  the  past  3  years 
and  considerable  testimony  by  repre- 
sentatives of  the  Government,  industry, 
national  laboratories,  electric  energy 
organizations,  and  other  interested 
groups.  The  committee  and  its  staff  spent 
many  hours  refining  the  features  and 
provlslcms  of  this  bill,  in  consultation 
with  expert  staff  from  the  General  Ac- 
counting Office,  the  Office  of  Manage- 


December  19,  197S 

ment  and  Budset.  the  Atomic  Energy 
Commission,  the  Department  of  the  In- 
terior, and  the  Department  of  Justice. 
I  will  briefly  summarize  the  salient 
aspects  of  H.R.  11510  The  proposed 
statute.  UUed  the  "Energy  Reorganiza- 
tion Act  of  1973,"  will  reorganize  major 
energy- related  research  and  develop- 
ment functions  in  the  Federal  Govern- 
ment. PuncUons  pertaining  to  energy 
R.  k  D.  would  be  transferred  to  a  newly 
created  Independent  Federal  agency 
called  the  Energy  Research  and  Develop- 
ment Administration— ERDA  The  new 
agency  will  exercise  central  responsibil- 
ity for  planning,  managing,  supporting 
and  conducting  R.  i  d.  programs  and 
projects  involving  all  energy  sources  and 
energy  uUllzation  techniques.  Its  range 
of  program  Initiatives  will  be  broad  It 
will  encompass,  but  not  be  limited  to 
solar,  tidal,  wind,  hydrogen,  fossil  fuel 
synthetic  fuel,  nuclear,  and  geothermal 
sources  and  processes.  It  will  seek  to  ex- 
ploit all  promising  energy  potentials 
based  on  present  knowledge  and  to  take 
new  directions  pointed  to  by  future  re- 
search results. 

ERDA's  responsibilities  in  connection 
with  energy  sources  and  utUizaUon  tech- 
nologies will  include  R.  k  d,  efforts  m 
areas  such  as  fuel  resource  extraction— 
on  land  and  undersea— conversion  tech- 
nology, energy  storage,  transmission  of 
electric  energy,  and  energy  utilization 
techniques.  To  gain  long-range  solutions 
to  our  energy  problem,  we  will  need  to 
achieve  significant  advances  in  aU  these 
areas. 

The  report  accompanying  the  bill  ex- 
presses the  committees  view  that^ttain- 
ment  of  national  self-sufflcleBcy  in 
energy  at  the  earliest  pracUcable  date 
clearly  demands  a  sharp  upsurge  in  coal 
R.  &  D.  Coal  is  our  most  abundant  fossil 
fuel  reserve.  We  appear  to  have  about 
half  the  world's  supply.  When  suitably 
converted  to  gaseous.  Uquid.  and  other 
environmentally  accepUble  forms,  coal 
wUl  materially  help  us  reach  a  level  of 
energy  independence  at  the  earliest  pos- 
sible date. 

All  present  indlcaUons  are  that  until 
the  end  of  this  century,  we  will  need  to 
use  all  available,  environmentally  ac- 
ceptable forms  of  energy— fossil,  syn- 
thetic, nuclear,  and  others — that  we  can 
develop. 

ERDA's  overall  responsibilities  also 
will  include  the  encouragement  and  con- 
duct of  R.  &  D.  for  the  conservation  of 
energy,  for  increasing  the  efficiency  and 
reliability  of  energj-  sources  and  energy- 
uUlizing  devices,  and  for  safeguarding 
the  quality  of  our  environment. 

The  ERDA  organization  is  specially 
designed  to  enable  the  new-  Agency  to 
carrj-  out  its  missions  most  effectively. 
ERDA  will  be  headed  by  a  single  Admin- 
istrator, who.  along  with  a  Deputy  Ad- 
ministrator, will  be  appointed  by  the 
President  by  and  with  the  advice  and 
consent  of  the  Senate.  The  Administra- 
tor and  the  deputy  will  be  principally 
concerned  with  setting  R  &  D.  policy 
and  with  the  overall  direction  and  man- 
agement of  the  Agency. 

Under  the  Administrator,  there  w-ill  be 
five  Assistant  Administrators,  w-ho  will, 
respectively,    head    five    major    mission 


December  19,  197S 


CONGRESSIONAL  RECORD  —  HOUSE 


42569 


areas;  First,  fossil  energy  development; 
second,  nuclear  energy  development; 
third,  research  ai^d  advanced  energy  sys- 
tems; fourth,  environment,  safety,  and 
conservation,  and  fifth,  national  security. 
These  five  Assistant  Administrators  also 
will  be  appointed  by  the  President  by 
and  with  the  advice  and  consent  of  the 
Senate.  The  high  rank  and  equality  of 
station  of  each  of  these  As.sistanl  Admin- 
istrators will  empha.size  the  intent  of 
this  bill  that  full  attention  and  appropri- 
ate emphasis  be  given  to  all  proniismg 
energy  sources,  as  well  as  to  safety,  to 
conservation,  to  environmental  consider- 
ations, and  to  aJl  of  the  other  responsi- 
bilities of  EJIDA. 

At  the  next  level  in  ERDA  will  be  ad- 
ditional officers,  not  exceeding  seven  in 
number,  and  a  General  Counsel,  to  be 
appointed  by  the  Administrator. 

The  report  accompanying  this  bill  ex- 
presses the  committee  s  expectation  that 
in  selecting  the  Administrator,  the  Dep- 
uty AdminisU^tor.  and  the  five  Assistant 
Administrators,  the  President  will  give 
consideration  to  the  views  and  recom- 
mendations of  public  interest  groups 
and  individuals  from  scientJic,  consum- 
er, environmental,  conservation,  and 
energy  communities.  Additionally,  the 
report  strongly  recommends  that  these 
top  officials  be  carefully  chosen  on  the 
basis  of  outstanding  ability,  integrity, 
and  dedication  generally  acknowledged 
by  their  peers.  The  committee  further  ex- 
pects that  all  the  other  officers  and  per- 
sonnel of  ERDA  will  be  selected  on  a 
best-qualified  basis. 

ERDA  will  be  able  to  get  underway 
rapidly  because  it  will  start  with  a  con- 
siderable array  of  our  Nation's  best  R.  & 
D.  talent  and  facilities,  principallv  de- 
rived from  the  following  transferred 
assets: 

First.  Prom  the  AEC.  a  unique  net- 
work of  national  laboratories  and  facili- 
ties valued  at  about  $9  billion,  a  diversi- 
fied scientific  and  technical  expertise, 
and  vast  experience  in  managing  large, 
complex  technological  nro.iects. 

Second.  From  the  Office  of  Coal  Re- 
search and  the  Bureau  of  Mines,  experts 
in  fossil  fuel  development,  six  labora- 
tories and  a  synthane  [  lant. 

Third.  From  the  National  Science 
Foundation,  expert  knowledge  respect- 
ing developments  in  solar  heating  and 
cooling  and  in  geothermal  power. 

Fourth.  From  the  Environmental 
Protection  Agency,  expert  knowledge 
concerning  the  development  and  dem- 
onstration of  alternative  automotive 
power  systems,  and  concerning  combus- 
tion-related technologies  to  control  emis- 
sions of  pollutants  from  stationary 
sources  using  fossil  fuels. 

These  national  assets,  in  terms  of  per- 
sonnel talenLs.  expert  knowiedge,  and 
bilhons  of  dollars  worth  of  facilities, 
many  of  them  unique,  will  be  a  solid 
foundation  for  ERDA's  swift  expansion 
into  all  worthy  energj-  source  avenues. 

ERDA  will  also  acquire  all  of  the 
Atomic  Energj-  Commission's  develop- 
ment, production,  and  operational 
functions — actually,  all  of  the  Commis- 
sion's nonregulatory  fimctions.  These 
would  be  split  off  and  formally  separated 
from   the   remaining   licensing   and   re- 


lated regulatory  functions  o'  the  AEC. 
Thus,  the  AEC,  under  a  new  name,  the 
Nuclear  Energj-  Commission— NEC — 
will  be  converted  into  an  independent 
regulatory  body,  and  will  continue  to 
conduct  its  licensing  and  related  reg- 
ulatory- activities  under  pertinent  pro- 
visions of  the  Atomic  Energj-  Act  of  1954 
as  amended  The  report  accompanying 
this  bill  spells  out  the  applicability  of  the 
provisions  of  the  Atomic  Energy  Act  to 
NEC  and  to  the  AEC  functions  transfer- 
red to  ERDA 

The  bill  provides  for  annual  authori- 
zation of  appropriations,  and  for  an  an- 
nual comprehensive  report  by  the  Ad- 
ministrator to  the  President  for  submis- 
sion to  the  Congress  The  bill  requires 
that  the  Administrator  keep  the  appro- 
priate congressional  committees  fully 
and  currently  informed  with  respect  to 
all  of  ERDA's  activities. 

Mr.  Chairman,  we  are  all  well  aware 
that  the  growth  and  progress  of  our 
country,  our  high  standard  of  living,  our 
national  security  and  well-being,  have 
been  made  possible  by  abundant  low-cost 
energy.  We  all  know  that  our  consump- 
tion of  energy,  however  prudently  man- 
aged and  conserved,  will  continue  to  in- 
crease more  rapidly  than  our  present 
ability  to  supply  it  in  environmentally 
acceptable  forms  And  we  must  t)e  mind- 
ful not  only  of  the  foreseeable  needs  of 
our  present  population  but  of  the  Na- 
tion's long-range  needs,  when  our  chil- 
dren, and  our  children's  children.  wiU  be 
living  their  lives.  Do  we  want  to  deprive 
them  of  adequate  sources  of  energy  or  a 
wholesome  environment? 

In  our  great  quest  for  abundant  clean 
energy  for  the  decades  ahead,  we  will 
have  to  mount  the  most  comprehensive, 
coordinated,  and  intelligent  program  we 
are  capable  of  organizing  on  the  national 
level.  This  bill  is  a  very  good  beginning  of 
that  total  effort.  It  will  provide  the  neces- 
sary organizational  framev^ork  and  a 
solid  basis  for  getting  rapidly  imderw-ay 
I  remind  you  that  the  good  Lord,  who 
could  have  created  and  populated  our 
world  by  a  single  miraculous  occurrence, 
deemed  it  appropriate  to  carry  out  His 
objective  by  not  one  but  six  discrete 
events — the  first  one  being  the  creation 
of  light  and  its  separation  from  darkness. 
In  the  context  of  oiu-  own  objective.  I  am 
satisfied  that  the  bill  before  us  will  sep- 
arate light  from  darkness  and  constitute 
a  good  beginning — one  that  must  be 
made  without  further  delay. 

In  the  accompanying  report,  which  I 
urge  everyone  to  read,  the  committee 
recommends  that,  in  the  first  year  of  op- 
eration the  Administrator  develop  a  10- 
year  program  to  chart  ERD.As  course  in 
energy  R  &  D  fields.  Annual  authoriza- 
tions and  appropriations  will  insure 
proper  congressional  participation.  An- 
nual reports,  updating  the  program  from 
j-ear  to  year,  will  indicate  the  progress 
made  in  relation  to  the  planned  program. 
Thus,  the  strategj-  for  achieving  national 
independence  in  sources  of  energy  will  be 
openly  avowed  and  in  the  forefront  of 
of  purpose  Paul  the  Apostle  espoused  in 
public  attention.  It  will  convey  the  clarity 
his  remark  in  the  first  epistle  to  the 
Corinthians : 


Por  If  the  trumpet  give  an  uncertaUi 
sound,  who  shall  prepare  hlmseU  to  the 
battle? 

Two  final  points :  This  is  a  reorganiza- 
tion bill  It  does  not  authorize  any  par- 
ticular sums  or  levels  of  appropriations 
for  any  of  ERDA's  functions.  The  func- 
tions transferred  into  ERDA  are  already- 
funded  for  fiscal  year  1974.  Authoriza- 
tions and  appropriations  for  the  next 
fiscal  year  would,  under  this  bill,  eventu- 
ate in  due  course  and  in  the  usual 
manner. 

Also,  this  bill  does  not  alter  or  affect 
committee  jurisdictions.  It  may  be  that, 
during  the  coming  year,  the  House  will 
receive  recommendations  for  a  more  co- 
ordinated and  comprehensive  congres- 
sional approach  to  energy  affairs.  In  the 
meantime,  this  bill  proposes  to  reorga- 
nize energy  functions  in  the  executive 
branch,  not  in  the  Congress. 

I  urge  the  Members  on  both  sides  of 
the  aisle  to  suwxjrt  this  nonpartisan 
measure  that — finally — will  focus  our  na- 
tional will  and  talents  on  solving  our  en- 
ergj- problems  without  impairing  our  en- 
vironment. 

Mr  McDADE.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  HOLIFIELD.  I  yield  to  the  gen- 
tleman from  Pennsylvania. 

Mr.  McDADE.  The  gentleman  men- 
tioned that  six  laboratories  from  the 
Bureau  of  Mines  would  be  transferred 
into  ERDA.  Would  the  gentleman  be  kind 
enough  to  inform  me  which  six  labora- 
tories he  is  referring  to? 

Mr.  HOLIFIELD.  In  atomic  energy  I 
am  talking  about  Los  Alamos,  the  Liver- 
more  Laboratory,  the  Oak  Ridge  Labora- 
tory  

Mr.  McDADE.  Will  the  genUeman 
yield  further? 

Mr.  HOLIFIELD.  I  yield  to  the  gen- 
tleman. 

Mr.  McDADE.  I  was  referring  to  the 
Bureau  of  Mines  Laboratories. 

Mr.  HOLIFIELD.  Oh.  the  Bureau  of 
Mmes.  Six  of  the  laboratories  that  have 
been  dealing  in  energy -related  projects 
and  a  synthane  plant  for  coal  gasifica- 
tion, now  under  construction. 

Mr.  McDADE.  Mr.  Chairman,  would 
the  gentleman  elaborate  specifically  on 
which  labs  it  is  intended  to  transfer? 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman,  will  the  gentleman  yield? 

Mr  HOLIFIELD  I  yield  to  the  gen- 
tleman from  Wyoming. 

Mr  RONCALIO  of  Wyoming.  Let  me 
answer  my  friend  from  Pennsylvania. 
The  Director  of  the  Bureau  of  Mines 
from  the  Interior  Department  listed  the 
projects  that  ultimately  will  be  trans- 
ferred for  further  development  in  ERDA 
and  he  is  ready  to  go  with  him  on  the 
processing  of  coal  from  the  surfsice. 

Mr.  HOLIFIELD  I  might  say  further, 
if  the  gentleman  will  yield,  that  the  As- 
sistant Secretary  of  the  Interior  came 
before  our  committee  and  testified  in 
favor  of  this,  and  so  did  Mr.  Carl  Bagge, 
who  is  head  of  the  National  Coal  Asso- 
ciation. They  both  testified  this  would  be 
a  good  move  in  their  opinion. 

Mr.  McDADE.  I  thank  the  gentleman 
for  that  information.  Would  he  yield  fur- 
ther? 

Mr.  HOLIFIELD.  I  yeild  to  the  gen- 
tleman 


42.-;70 


CONGRESSIONAL  RECORD  — HOUSE 


Mr.  McDADE.  I  understood  the  gen- 
tleman's response  In  reference  to  the  Of- 
fice of  Coal  Research.  What  I  am  seek- 
mg  to  determine  is  which  six  laborato- 
ries that  the  distmguished  gentleman 
from  California  mentioned  are  con- 
templated would  be  transferred  out  of 
the  Bureau  of  Mines? 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman,  I  will  get  the  names  for  the 
genUeman.  I  will  have  them  for  him 

Mr  HOLIFTELD  Page  31  of  the  com- 
mittee report.  I  will  say  to  my  friend, 
contains  the  information.  The  six  re- 
search centers  included  in  this  transfer 
are  located  in  Bartlesviile.  Okla  ;  Grand 
Porks.  N  Dak.;  Laramie,  Wyo.:  Morgan- 
town.  W.  Va.:  Pittsburgh,  Pa.;  and 
San  Francisco.  Calif 

Mr.  HAMMERSCHMIDT.  Mr.  Chair- 
man, will  the  gentleman  yield? 

Mr.  HOLIFIELD.  Mr.  Chairman.  I 
yield  to  the  gentleman  from  Arkansas 
Mr.  HAMMERSCHMIDT  Mr.  Chair- 
man. I  want  to  compliment  the  gentle- 
man m  the  well  for  this  contribution  he 
IS  making.  I  want  to  make  an  inquiry 
about  a  project  he  Is  very  familiar  with, 
and  I  am  sure  he  will  recall,  and  it  is  the 
fast  breeder  reactor  research  project  In 
Arkansas  called  Sea  for. 

Mr  HOLIFIELD  Mr.  Chairman.  I 
happened  to  be  m  on  authorizing  that 
Mr  HAMMERSCHMIDT  Mr  Chair- 
man. I  was  cerUlnly  going  to  recognize 
the  fact  that  the  gentleman  knows  more 
about  it  than  anyone  on  this  committee 
or  in  the  House  because  he  was  very 
much  involved. 

Now.  that  has  been  deactivated,  and 
it  was  mtended  to  be  deactivated  after 
the  research  was  accomplished.  I  under- 
stand it  was  a  ver\'  highly  successful 
project  and  went  to  reactor  safety  I  am 
wondering,  with  this  new  commitment  to 
the  self-sufficiency  of  our  Nation  in  nu-, 
clear  generation  if  the  AEC  or  this  neW 
commission  might  not  be  well  advise* 
to  take  another  look  at  that  $25  mlllloft 
installation  to  see  if  it  will  have  further 
use  in  this  new  program 

Mr  HOLIFIELD  Mr  Chairman  I  wUl 
be  happy  to  take  another  look  at  that 
However,  the  decision  to  close  that  plant 
was  based  on  the  fact  that  it  had 
achieved  the  goals  of  research— and  it 
''•a  very  important  research,  by  the 
way— the  type  of  research  that  goes  into 
the  fast  breeder  reactor  That  was  origi- 
nally $11  milUon  and  finally  went  to  $18 
million,  and  the  funds  were  contributed 
by  a  group  of  German  companle^^  a 
group  of  electric  utilities.  General  Elec- 
tric, the  Atomic  Energy  Commission  I 
would  doubt  very  much  if  that  would  fit 
in  for  further  work  However,  I  would 
be  very  happy  to  explore  that 

Mr  HAMMERSCHMIDT  Mr  Chah-- 
naan.  I  appreciate  the  genUemans 
response 

Mr  OUDE  Mr  Chairman,  will  the 
gentleman  .^-ield' 

Mr  HOLIFIELD  Mr  Chalnnan.  I 
yield  to  the  gentleman  from  Maryland 
Mr  GUDE  Mr  Chairman.  I  want  to 
commend  the  chairman  of  the  commit- 
tee a£  wen  ax  the  ranking  Member  on  our 
side.  Mr  Hobton.  of  New  York,  for  their 
effort  in  bringing  this  bill  before  the 
Houae    In   particular,   I   would  like    to 


December  19,  1973 


commend  the  gentleman  for  his  com- 
ments not  only  to  the  potential  of  coal 
as  a  midterm  source  of  energy,  but  the 
tremendous  potential  it  has. 

Our  efforts  In  coal  liquefaction  and 
gaslficaUon  are  pracUcally  on  the  line, 
and  the  Navy  says  that  now  they  have 
been  able  to  operate  ships  at  a  cost  of 
less,  when  finally  it  is  in  full  produc- 
tion, less  than  what  it  would  be  if  they 
operated  them  on  petroleum. 

In  particular  the  gentleman  mentioned 
extraction.  Is  it  not  the  intent  of  the 
chairman  that  the  extractlMi  of  coal 
from  the  ground  will  be  as  much  an  ef- 
fort of  this  research  and  development 
agency  on  helping  develop  the  readj- 
means  of  safely  bringing  the  coal  out 
of  the  ground? 

Mr  HOLIFIELD.  Mr  Chairman,  the 
research  and  development  agency  will 
continue  to  do  research  into  the  improve- 
ment of  the  techniques  of  extraction 
However,  the  actual  operation  of  these 
faciliUes  wUl  be  left  In  the  Department 
of  the  Interior  They  will  take  these  de- 
vices, some  of  which,  as  the  gentleman 
knows,  have  already  been  developed,  and 
they  will  operate  them  in  the  mines 

This  research  and  development  agency 
wiU  not  do  anything  in  the  way  of  oper- 
aUng  these  devices,  but  they  wUl  have 
people  looking  at  them  all  the  time  and 
trying  to  improve  the  methods  of  extrac- 
tion and  recommend  improvements  to 
the  Department  of  the  Interior  It  wlU 
be  the  operational  department  In  the 
buUding  of  the  extraction  machines. 

I  think  the  mining  technology  and 
extraction  machinery  is  a  verv  important 
thing.  I  want  to  emphasize  the  fact  that 
we  must  use  every  ounce  of  coal  that  we 
can  mine  and  dig  and  change  into  any 
kind  of  acceptable  combustible  form 
whether  solid.  Uquid  or  gas.  because  this 
country  is  going  to  be  short  of  energy 
even  if  it  does  that,  and  we  must  at  least 
double  and  maybe  triple  production  of 
coal  m  the  next  15  years  if  we  are  going 
to  come  anywhere  near  meeting  the 
challenge  we  have  to  meet. 

I  am  talking  now  about  substantial 
contnbuUons.  I  am  not  talking  about 
token  contribution. 

There  is  only  one  way  to  do  that  and 
that  is  to  utilize  coal  to  the  fuUest  extent 
possible. 

Mr.  Chairman.  I  would  like  to  say 
that  I  have  the  greatest  confidence  in 
these  great  scientific  minds  in  the  AEC 
We  put  them  to  work  on  many  things 
such  as  the  hydrogen  bomb  and  the  nu- 
clear submanne.  and  they  work  in  teams 
They  have  accomplished  many  great 
thing.s  as  multldlsclpUned  scientists. 

At  the  present  Ume.  when  we  bum  a 
ton  of  coal,  we  throw  300  pounds  of  pol- 
luUng  contaminants  Into  the  air 
particularly  sulfur  dioxide  and  ash  and 
other  Ungible  physical  substances  The 
same  amount  of  average  grade  oU  throws 
75  pounds  Into  the  air,  and  the  same 
amount,  in  terms  of  cubic  feet,  of  gas 
throws  about  10  pounds  into  the  air.  So 
the  coal,  which  is  our  greatest  source  of 
potential  energy,  is  also  the  most  pol- 
luting material 

This  is  the  No  1  project,  in  my  opinion 
that  we  should  go  Into  for  Immediate 
solution  of  our  problems,  and  for  im- 


mediate access  to  this  vitally  needed 
energy  fuel  which  we  must  have  to  sup- 
plant the  Middle  East  oil. 

Mr  STUBBLEFIELD.  Mr.  Chairman 
will  the  gentleman  yield? 

Mr  HOLIFIELD  I  wiU  be  happy  to 
yield  to  the  gentleman  from  Kentucky 

Mr  STUBBLEFIELD  Mr.  Chairman. 
I  would  like  to  add  my  complimentary 
comments  to  the  distinguished  Chair- 
man of  the  Committee. 

I  think  that  this  research  program  is 
long  overdue,  particularly  as  the  Chair- 
man of  the  Committee  has  related  It  to 
coal. 

As  the  gentleman  knows,  I  sit  on  a 
great  big  pile  of  high  sulfur  coal,  and 
this  program  would  certainly  be  most 
beneficial  I  represent  the  largest  coal 
producing  county  in  the  worid.  and  the 
Governor  of  my  State  is  very  much  In- 
terested In  this  program  here. 

We  certainly  want  to  offer  our  appre- 
ciation to  the  gentleman  for  bringing 
this  bill  up. 

I  would  like  to  ask  the  gentleman  this 
question:  As  far  as  the  research  plants 
that  are  now  in  existence  are  concerned 
this  program  would  not  be  confined  Just 
to  those  plants,  would  it? 

Mr.  HOLIFIELD.  Mr  Chairman  I 
hope  that  it  will  not  be.  The  President 
has  allocated  a  much  larger  sum  of 
money  to  coal  than  has  ever  been  allo- 
cated before.  There  is  about  $2  billion 
a  year  proposed  to  be  spent  in  this  total 
energy  research  and  development  pro- 
gram. 

Of  that  amount  about  $1  bUllon  is  for 
ongoing  research  and  development  proj- 
ects, including  work  In  the  Bureau  of 
Mines  and  the  Office  of  Coal  Research 
as  well  as  the  Atomic  Energy  Commis- 
sion and  several  other  agencies.  Of  the 
amount  of  $10  billion  proposed  over  a 
5-year  period,  about  $1  billicMi  a  year  wlU 
be  new  money.  If  the  Congress  authorizes 
It  and  appropriates  it.  I  think  it  will  be 
appropriated,  in  view  of  this  urgency 

Mr  Chairman.  I  believe  a  substantial 
amount  of  that  money  should  go  into 
coal  research  immediately,  because  of 
the  facts  I  have  already  given.  Certainly 
coal  Is  our  most  plentiful  supply  of  fuel 
for  energy,  and  it  is  immediately  avail- 
able. We  do  not  have  any  "pie  in  the 
sky"  to  offer  or  anything  Uke  that  but 
we  know-  that  we  can  get  energy  out  of 
coal.  The  problem  we  must  solve  is  get- 
ting the  coal  out  of  the  ground  and  burn- 
ing it  in  such  a  manner  that  it  is  en- 
vironmentally acceptable. 

Mr.  Chairman.  I  want  to  point  out  on 
the  chart  here  that  the  AssisUnt  Ad- 
mmlstrator  for  Foasil  Energy  Develop- 
ment is  put  on  the  same  level  of  orga- 
nizational authority  as  the  Administra- 
tor for  Nuclear  Energj-  Development-  for 
Environment.  Safety  and  ConservaUon- 
for  Research  of  Advance  Systems  and 
for  National  Security. 

So  this  Office  is  organizationally  on 
the  same  level  with  the  others 

Mr  STUBBLEFIELD  Mr  Chairman. 
will  the  gentleman  yield  further? 

Mr  HOLIFIELD  I  yield  to  the  gen- 
tleman from  Kentucky 

Mr  STUBBLEFIELD  Mr  Chairman, 
our  Governor  was  up  there  recently  We 
met  wltli  the  Governor  on  this  matter. 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42571 


and  he  envisioned  that  the  State  and 
private  enterprise  and  the  Federal  Gov- 
ernment oould  work  together  on  these 
projects. 

Does  the  chairman  of  the  committee 
envision  such  program  to  be  practical? 
Mr.  HOLIFIELD.  Yes.  I  do.  I  think 
that  private  industry  must  continue  to 
cooperate  and  must  do  even  more  than 
it  has  been  doing  in  the  field.  It  is  going 
to  take  the  combined  efforts  of  private 
Industry  and  the  Government  to  do  this 
job.  It  is  a  big  job.  and  it  can  be  done.  It 
is  within  the  realm  of  possibility. 

Mr  BELL.  Mr.  Chairman,  will  the  gen- 
tlCTnan  yield? 

Mr.  HOLIFIELD.  Yes.  I  yield  to  the 
gentleman  from  California. 

Mr.  BELL.  Mr.  Chairman,  the  gentle- 
man mentioned  coal,  and  I  wish  to  com- 
pliment the  gentleman  for  the  very  out- 
standing job  he  has  done,  and  with  such 
good  results,  within  the  committee  itself. 
Is  it  true  that  with  coal,  as  you  say.  be- 
ing one  of  our  largest  assets — is  it  true 
we  have  a  lower  sulfur  content  type  of 
coal  located  in  the  Montana- Wyoming 
area  in  the  Western  States  than  some  of 
the  eastern  seaboard  coal? 

Mr.  HOLIFIELD.  I  understand  there 
are  some  lower  sulfur  content  coalbeds 
out  there. 

Mr  BEXL.  I  wonder,  because  I  imder- 
stand  there  has  been  an  attempt  to  block 
the  development  of  those  beds  in  the 
Western  areas. 

Mr.  HOLIFIELD.  As  the  gentleman 
knows,  there  are  attempts  to  block  coal- 
bed  development,  and  attempts  to  block 
powerplant  development  of  all  kinds, 
both  coal  and  oil,  all  over  the  United 
States  by  these  people  who.  In  my 
opinion,  have  gone  to  the  extreme  end 
on  the  environmental  binge.  We  have  a 
real  world  to  live  in.  and  we  have  to  get 
the  energy  so  that  our  people  can  get 
work  in  order  to  feed  themselves  and 
their  families.  We  burned  coal  for  200 
years  in  this  country,  and  we  will  con- 
tinue to  do  so.  However,  we  have  to  learn 
to  do  this  in  a  better  way.  because  we 
are  burning  more  of  it.  We  have  to  learn 
to  do  it  so  it  does  not  contaminate  the 
atmosphere.  That  is  what  this  Agency 
is  all  about. 
Mr.  BELL.  I  thank  the  gentleman. 
I  think  it  is  very  important  to  try  to 
develop  coal  with  a  lower  sulfur  con- 
tent in  the  Western  States. 

Mr.  HOLIFIELD.  I  am  sure  it  wlU  have 
the  attention  of  the  Administrator.  It 
will  be  his  job  to  try  to  find  out  where 
we  can  get  the  energy  we  need 

Mr.  NELSEN.  WiU  the  genUeman 
yield? 

Mr.  HOLIFIELD.  I  am  happy  to  yield 
to  the  gentleman. 

Mr.  NELSEN.  Recently  I  have  been 
getting  a  lot  of  communications  from 
the  REA  systems  throughout  the  country. 
The  gentleman  in  the  well  is  very  famil- 
iar with  this,  having  been  a  long  friend 
of  the  program.  For  example,  in  North 
Dakota  we  have  a  coalbed  where  the 
REA  people  are  trying  to  get  permis- 
sion to  build  a  powerplant  right  in  that 
bed  so  that  they  can  have  good  quality 
coal  and  not  do  damage  to  the  air  qual- 
ity. They  will  then  transmit  the  power 
to  the  Twin  Cities  area  and  distribute  It. 


It  would  be  a  good  way  to  have  coal 
delivered  in  effect  b\  an  eiecinc  wire 
rather  than  having  smokestacks  in  large 
ciUes,  but  we  are  having  trouble  getting 
it  done. 

Mr  HOLIFIELD.  What  kind  of  trouble 
have  you  had? 

Mr.  NEI£EN.  To  get  the  clearance  to 
proceed  with  It. 

Mr.  HOLIFIELD.  By  whom? 
Mr.  NELSEN.   By   the  environmental 
enthusiasts. 

Mr.  HOLIFIELD.  That  Is  what  I  want 
to  bring  out. 

Ut.  NELSEN.  The  point  I  want  to  make 
in  defense  of  those  who  have  been  cham- 
pioning the  cause  of  better  environ- 
ment— with  which  we  do  not  quarrel — 
the  point  I  want  to  make  is  there  comes  a 
time  when  you  have  to  make  a  decision 
on  this.  I  was  listening  to  Mr.  Simon 
the  other  night,  and  he  said  that  if  you 
do  not  make  use  of  coal,  then  we  are 
heading  for  a  disastrous  situation  in  the 
United  States  We  had  better  learn  how 
to  get  the  fuel  supplies  we  need,  such  as 
coal  and  oil,  harnessed  in  the  correct 
way.  Then  we  can  survive.  Otherwise  we 
are  in  real  trouble. 

Mr.  HOLIFIELD.  The  gentleman  said 
that  better  than  I  can.  I  agree  with  him 
100  percent.  We  have  to  use  all  of  the 
coal  we  can  use  that  would  be  environ- 
mentally acceptable. 

Mr.  NELSEN.  I  thank  the  genUeman 
Mr.  HAYS.  Will  the  genUeman  yield? 
Mr.  HOLIFIELD.  I  yield  to  the  gen- 
tleman. 

Mr.  HAYS.  I  am  a  litUe  surprised  at  the 
genUeman's  statement  about  not  being 
able  to  build  powerplants.  I  have  a  situa- 
tion in  my  district  which  conslstentlj-  has 
the  dirtiest  air  in  America.  It  is  said 
that  if  you  just  breathe  the  air  there, 
you  are  inhahng  the  equivalent  of  two 
packs  of  cigarettes.  It  has  three  power- 
plants  on  the  outskirts  of  the  city,  two  on 
the  south  and  one  on  the  north.  They 
gave  permission  to  build  a  1  million  kilo- 
watt plant  to  the  REA.  Now,  I  am  a  friend 
of  the  REA,  also,  but  I  want  to  point  out 
they  are  no  REAs  any  more;  they  are 
commercial  power  producers  out  to  make 
a  buck.  The  one  they  are  building  in  my 
district  will  wheel  power  to  CincinnaU 
Sending  coal  by  wire  is  the  most  inef- 
ficient way  on  God's  green  earth  to  use 
coal. 

I  am  all  for  research.  There  is  a  proc- 
ess called  magnetohydrodynamlcs,  IVIHD. 
which  will  produce  60  percent  more 
power  from  every  ton  of  coal.  But 
can  you  get  that  power  company  to  ex- 
periment with  it?  You  try  sometime. 
They  do  not  want  to  clean  up  the  air. 
They  want  to  make  a  buck  and  they  do 
not  care  how  they  do  It. 

Would  it  not  be  better  to  have  the 
supply  of  coal  extended  by  60  percent' 
I  think  it  would. 

I  lived  right  in  the  midst  of  the  coal 
fields  Ohio  is  the  fourth  largest  producer 
of  coal.  We  produce  In  my  district  90  per- 
cent of  that  coal.  But  it  is  not  all  on  the 
side  of  the  REA  and  the  power  compa- 
nies, and  do  not  blame  the  EPA  for 
everything.  They  are  just  trying  to  get 
these  people  to  spend  a  litUe  money  to 
make  it  possible  for  human  beings  to 
breathe.  And  If  I  had  the  choice  between 


breathing  and   an   electric   toothbrush, 
you  know  I  would  prefer  breathing. 

Mr  VANIK.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  HOLIFIELD.  I  would  be  delighted 
to  yield  to  the  gentleman  from  Ohio  <  Mr. 
Vandc),  but  first  let  me  say  to  the  gen- 
Ueman that  I  heard  him  speak  on  the 
rule,  and  I  would  like  to  call  to  the  gen- 
Ueman's attention  the  fact  that  we  have 
placed  in  this  organizational  structure 
one  division  for  fossil  fuel,  one  division 
for  nuclear  energy,  and  divisions  for 
other  purposes.  But  fossil  fuel  is  on  the 
same  organizational  level  as  all  the  rest, 
and  it  will  have  the  same  attention.  It 
will  be  up  to  the  Congress  to  give  them 
the  money  to  do  the  job.  That  is  where 
the  gentleman  from  Ohio  can  be  helpful 
in  getting  the  kind  of  support  financially 
that  we  need  for  the  country.  And  I  am 
sure  that  with  the  statement  of  the  Pres- 
ident that  he  wants  to  put  a  great  deal 
more  money  into  coal  that  we  can  get 
this  biU  through  and  signed. 

Mr.  VANIK.  Mr.  Chairman.  If  the  gen- 
tleman will  yield,  let  me  say  that  I  very- 
much  appreciate  the  response  of  the  gen- 
tlemsm. 

I  want  to  say  this,  that  what  concerns 
me  is  the  makeup  of  this  organization 
and  that  in  the  nature  in  which  it  Is  be- 
ing used  today,  under  this  legislation 
whether  it  might  have  an  overwhelming 
amount  of  control  by  people  who  are  part 
of  the  Atomic  Energy  Commission.  It  is 
under  that  auspices. 

Mr.  HOLIFIELD.  In  the  first  place, 
the  Administrator,  the  Deputy  Adminis- 
trator, and  these  five  Assistant  Admin- 
istrators are  all  to  be  appointed  by  the 
President  and  confirmed  by  the  Senate 
and  the  genUeman  from  Ohio  will  find 
in  reading  the  report,  that  we  are  in- 
sisting that  these  be  qualified  people,  not 
merely  theorists  but  experienced,  quali- 
fied people,  that  they  will  be  selected 
for  this  purpose,  and  we  are  urging  that 
And  I  am  sure  the  other  body,  when  it 
comes  Ume  for  the  confirmaUon  of 
these  men.  will  keep  this  in  mind  in 
questioning  them.  And  I  am  hopeful  In 
fact.  I  have  been  told  that  a  very  ex- 
perienced man  in  fossil  fuels  will  be  put 
at  the  head  of  this  fossU  fuel  research 
and  development  di\-ision. 

Mr.  VANIK.  Mr.  Chairman,  If  the  gen- 
Ueman will  yield  further,  under  fossil 
fuels  we  are  combining  both  oil  and  coal 
Is  that  correct? 

Mr    HOLIFIELD.  Yes.  oU.  coal,  and 

gas. 

Mr.  VANIK  But  today  when  we  meas- 
ure how  much  energy  we  use  In  this 
country,  a  tremendous  part  of  it  is  from 
oil  and  coal. 

Mr.  HOLIFTELD    That  is  right. 

Mr.  VANIK.  It  would  seem  to  me  that 
that  downgrades  or  has  a  tendency  to 
downgrade  sources  for  energy-  today 
which  predominate,  and  downgrades 
them  to  the  advantage  of  other  source*: 

Mr.  HOLIFIELD.  No.  The  situation  as 
it  exists  at  this  time  Is  that  these  oil. 
coal,  and  gas  resources  are  our  principal 
ingredients,  hj-droelectric  and  nuclear 
and  other  forms  are  not  as  high  In  the 
scale  of  present  production  as  are  the 
three  fossil  fuels,  and  they  are  not  down- 
graded at  alL 


iJ.>72 


CONGRESSIONAL  RECORD  —  H()(  >E 


December  19,  1973 


\Lt  VANIK  I  thank  the  gentleman. 
I  have  another  question.  If  the  gentle- 
man will  yield  further  Under  this  plan 
of  organization  Is  it  contemplated  that 
the  permit  requests  powers  that  were 
discussed  earlier  would  be  transferred 
to  this  new  Agency? 

Mr  HOLIPIELD  I  am  sorry.  I  did  not 
quite  catch  the  statement  the  gentleman 
made 

Mr  VANIK.  The  authority  for  the 
transmission  and  the  authority  for  con- 
struction of  the  facilities  that  is  required 
Mr  HOLIPIELD  The  programs  that 
are  now  in  existence  In  the  Bureau  of 
Mines  and  the  Office  of  Coal  Research 
and  the  personnel  and  their  records,  and 
their  appropriations,  will  be  transferred 
over.  And  we  are  hopeful  that  this  new 
money  that  will  come  in  will  enlarge 
their  activities. 

Mr  VANIK  Mr  Chairman,  will  the 
gentleman  tell  me  whether  or  not  it  Is 
contemplated  that  this  new  money  would 
be  coming  in  through  general  taxes  or 
through  a  tnost  fund  concept '' 

Mr  HOLIFIFLD.  It  is  not  a  trust  fund 
concept 

Mr  VANIK  Mr  Chairman.  I  am  one 
of  those  Members  of  this  body  who  be- 
lieves very  strongly  in  the  trust  fund 
concept.  I  feel  that  the  problem  is  of 
such  a  tremendous  dimension  and  is 
going  to  require  such  tremendous  re- 
sources to  really  make  the  country  en- 
ergj-free.  as  the  President  has  suggested 

Mr  HOLIFIELD  Of  course.  I  will  not 
argue  with  the  gentleman  on  that  point 
That  point  will  be  decided  by  the  com- 
mittee of  jurlsdictjon  who  will  bring  in 
the  authorizations  This  does  not  change 
the  present  authorizations  of  the  com- 
mittees that  now  have  coal.  oil.  and 
other  fuel  potentials  in  their  jurisdic- 
tional areas  This  does  not  change  the 
jurisdiction  of  any  committee  of  Con- 
gress, and  it  will  be  up  to  those  commit- 
tees that  are  responsible  for  these  vari- 
ous programs  to  come  forward  with  the 
suggestions  and  recommendations  for  au- 
thorization— and.  of  course,  gain  the  ad- 
ministration's acquiescence  in  it — to  get 
this  on  the  road. 

Ever>one  I  have  talked  to,  both  the 
people  at  Interior  and  other  people  in 
the  administration,  are  very  much  in 
favor  of  getting  into  coal  and  fossil  fuels 
as  fast  as  they  can 

Mr  VANIK.  Mr  Chairman.  wUl  the 
gentleman  yield  for  just  one  further 
question  ? 

Mr  HOLIFIELD  I  will  yield  to  the 
gentleman  I  have  taken  more  time  than 
I  should  I  have  other  speakers  to  whom 
I  must  yield. 

Mr  VANIK  If  I  understand  the  gen- 
tleman correctly,  the  funding  could  come 
from  either  source,  as  far  as  his  plan  is 
concerned  ? 

Mr    HOLIFIELD    Absolutely 

Mr  VANIK  Either  through  direct 
funding  or  a  trust  fund? 

Mr.  HOLIPIELD  Yes  This  Is  an  or- 
ganization bill:  It  is  not  a  funding  and 
authorization  bill.  All  of  the  work  that 
will  be  done  on  this  In  the  next  year 
has  already  been  funded  and  authorized 
by  committees,  including  the  supple- 
mcnul  that  the  President  has  sent  up. 


Mr  8TUBBLEPIELD.  Mr.  Chairman, 
will  the  gentleman  yield? 

Mr  HOLTPIELD  I  yield  to  the  gentle- 
man from  Kentucky 

Mr  8TUBBLEFIELD.  I  thank  the 
gentleman. 

In  arwwer  to  the  question  of  the  gen- 
tleman from  Ohio  about  Atomic  Energy 
running  this  show,  does  the  Chairman 
know  of  any  orgaiUzation  that  has  any 
more  expertise  to  nm  such  an  organiza- 
tion than  the  Atomic  Energy  people? 

Mr  HOLIFIELD  The  Atomic  Energy 
Commission  at  this  time  has  as  tn-house 
and  under  contract  some  25,000  scien- 
tists and  engineers  of  every  discipline. 
There  are  no  facilities  In  the  world  like 
these  facilities  They  have  every  kind 
of  device  imaginable  They  have  men  of 
every  discipline  in  science,  and  all  they 
have  to  do  is  assign  these  teams  of  sci- 
entists to  attack  this  on  a  team  basis  as 
they  have  in  the  other  great  accomplish- 
ments they  have  made 

Mr  ANDREWS  of  North  Carolina.  Mr. 
Chairman,  will  the  gentleman  yield? 

Mr  HOLIPIELD  I  yield  to  the  gen- 
tlem<in  from  North  Carolina 

Mr.  ANDREWS  of  North  Carolina  I 
thank  the  gentleman  for  yielding 

Mr  Chairman.  I  understand  that  the 
Atomic  Energy  Commission  presently 
has  certain  authority  with  respect  to  mil- 
itary usage  of  weapons  of  an  unusual  de- 
structive capacity,  such  as  nuclear  or 
atomic  warheads.  I  believe  I  know  the 
answer  to  this  question,  but  I  should 
like  to  have  the  chairman  explain,  where 
does  this  authority  now  go? 

Mr  HOLIFIELD  This  authority  goes 
into  ERDA.  and  It  Is  in  this  division  right 
now.  under  the  Assistant  Administrator 
for  National  Security  It  remains  exactly 
the  same  as  it  is  now.  We  do  not  want 
to  change  this  function  that  has  been 
successful  We  have  created  the  great- 
est national  security  resource  of  any 
country  m  the  world 

We  have  created  the  nuclear  subma- 
rine, the  Enterprise  carrier,  and  other 
nuclear-powered  surface  ships  It  has 
been  done  and  done  well.  It  would  be 
folly  for  us  to  disturb  this  arrangement 
at  this  time  in  the  world's  affairs.  We 
are  leaving  it  right  where  it  Is 

There  Is  a  great  interplay  between 
these  scientists  that  have  worked  on  the 
national  security  aspect  and  the  civilian 
aspect.  They  have  helped  to  bring  about 
1.500  civilian  applications  of  atomic 
energy. 

Mr  ANDREWS  of  North  Carolina.  Mr. 
Chairman.  I  should  like  to  commend  the 
chairman  and  the  committee  for  this  de- 
cision rather  than  placing  that  author- 
ity with  the  Department  of  Defense  or 
otherwise  I  think  that  is  good 

Mr  HOLIFIELD  I  am  glad  the  gen- 
tleman brought  that  up  We  fought  that 
bill  out  m  1946.  and  I  was  one  of  the 
leaders  to  give  the  civilians  the  control  of 
nuclear  energy  at  that  time,  and  it  was 
only  for  weapons,  and  we  did  not  want  to 
trust  It  In  the  hands  of  the  miUtary. 

I  say  that  those  people  who  want  to 
.wnd  It  over  there  to  the  Department  of 
Defense  and  let  It  take  Its  place  along 
with  the  other  projects  that  are  In  the 
Department  of  Defense  are  making  a 
grievous  misUke  against  the  whole  phi- 


losophy   of   civilian    control    of    atomic 
energy. 

Ui.  ANDREWS  of  North  Carolina  Mr 
Chairman,  again  I  certainly  congratulate 
the  gentleman 

May  I  ask  one  other  question.  The 
State  of  North  Carolina.  I  understand, 
along  with  other  States,  has  gone  a  long 
way  in  recent  years  with  respect  to  the 
natural  economic  resources  within  their 
States.  In  our  particular  SUte  the  agen- 
cy bears  that  name.  They  have  done  a 
great  job  of  inventorying  the  resources. 
Including  the  potential  energy  resources 
withm  that  State,  as  well  as.  I  am  sure, 
numerous  others. 

Is  there  not  some  way  that  the  services 
to  be  performed  by  this  agency  or  this 
department  can  utilize  that  information 
and  cooperate  with  the  States  in  this 
what  seems  to  me  to  be  a  really  huge 
development? 

Mr.  HOLIFIELD  I  can  assure  the 
gentleman  there  will  be  cooperation  with 
the  States,  and  every  talent  and  service 
that  can  be  applied  toward  solving  this 
tremendous  challenge  must  be  used,  and 
I  think  It  will  be  used 

Mr  ANDREWS  of  North  CaroUna. 
Was  any  consideration  given  to  having 
the  States  share  a  part  of  this  total  ad- 
ministration specifically  to  relate  the  to- 
tal to  the  States  and  vice  versa? 

Mr  HOLIFIELD  The  administrative 
components  all  have  a  part  in  working 
cooperatively,  and  we  have  in  the  bill  a 
provision  that  they  can  go  to  any  agency 
of  Oovernment  or  any  State  to  get  the 
information  they  need,  and  I  am  sure  It 
will  be  coordinated 

Mr.  Chairman.  I  reserve  the  balance  of 
my  time 

Mr.  HORTON  Mr.  Chairman.  I  yield 
myself  5  minutes 

Mr.  Chairman,  we  have  heard  a  great 
deaJ  about  the  energy  crisis  and  what 
needs  to  be  done.  The  Congress  has  re- 
sponded well  By  the  time  this  House 
adjourns.  I  think  we  will  have  a  strong 
record  of  accomplishment  in  the  energy 
area. 

The  bill  before  us  now  Is  a  well- 
thought-out  reorganization  of  our  energy 
R.  i  D.  progTbms.  To  be  sure.  It  Is  timely 
and  urgently  needed,  but  I  want  to 
stress  this  is  not  a  quickly  patched 
together  bill 

The  need  for  this  legislation  can  be 
simply  stated.  This  Nation  is  about  to 
launch  a  major  effort  to  expand  produc- 
tion of  existing  energy  sources,  find  new 
energy  sources,  and  improve  the  ef- 
ficiency of  energy  generation  and  utiliza- 
tion processes  These  tasks  were  not 
properly  performed  in  the  past,  and  in 
large  part,  this  Is  why  we  face  this  cur- 
rent crisis  Certainly  we  need  new  pro- 
grams and  more  money  for  energy 
R.  t  D  :  also  nece8sar>-  is  this  new  or- 
ganization to  administer  these  programs. 

By  establishing  an  independent  energy 
R.  k  D  agency,  we  create  a  high-visibility 
effort  able  to  attract  the  neressarv-  fund- 
ing and  scientific  talent  befitting  Its 
single  goal  of  helping  this  Nation 
achieve  self-sufflclency  In  clean  energy. 
By  consolidating  Federal  programs,  we 
create  an  organizational  structure  able 
to  deal  comprehensively  with  all  energy 
R.  k  D.  yet  conUlning  within  itself  a 


December  19,  197S 


CONGRESSIONAL  RECORD  — HOUSE 


42573 


focal  point  of  responsibility  and  &c- 
countablllty  for  each  of  main  energy 
R.  ti  D.  areas:  namely,  fossil  fuel  pro- 
grams, nuclear  programs,  advanced  sys- 
tems— such  as  solar,  geothennal — pro- 
grams, and  envirorunental,  safety  and 
conservation  programs. 

Let  me  make  clear  at  this  point  that 
this  is  an  organization  bill — it  does  not 
establish  new  energy  priorities  or  in- 
crease funding  for  energj-  R.  k  D.  The 
new  policies  and  money  will  have  to  oome 
in  legislation  from  the  various  commit- 
tees with  authority  for  energy  R.  &  D. 
and  the  Appropriations  Committee.  And 
nothing  in  this  bill  would  change  the 
jurisdiction  of  any  of  these  committees 
for  energy  programs.  This  bill  provides 
the  organization  to  better  administer 
whatever  new  programs  are  approved  by 
the  Congress  as  recommended  by  the 
committees  now  responsible. 

The  chairman  of  mj'  committee  has 
very  ably  explained  what  this  bill  con- 
tains. I  would  like  to  emphasize  several 
points  about  the  proposed  organization. 

First,  as  the  chairman  has  so  strongly 
emphasized,  this  Agency  will  not  be  dom- 
inated by  any  Interest  group,  nuclear  or 
otherwise.  The  Administrator  and  Dep- 
uty Administrator  of  ERDA  will  have  re- 
sponsibility for  all  energj'  research  and 
development.  As  the  language  of  this  re- 
port states: 

(T)hese  two  officials  should  have  brottd 
background  and  experience  In  R.  &  D.  pro- 
gramfi  and  not  be  preoccupied  with  a  single 
energy  technology. 

Each  of  the  major  energy  sources  will 
have  an  assistant  administrator  who  is 
also  confirmed  by  the  Senate,  responsi- 
ble for  their  own  energy  programs.  These 
assistant  administrators,  for  siu-e,  will 
strongly  promote  development  within 
their  own  areas  of  responsibility.  The 
committee  report  also  requires  the  Ad- 
ministrator to  submit  a  10-year  program 
charting  his  proposed  course  for  energy 
research  and  development.  By  reviewing 
his  proposed  program,  the  Congress  wUl 
be  able  to  comprehensively  consider  the 
needs  of  individual  programs,  balancing 
one  against  the  other.  An  important 
measure  of  our  success  in  creating  a  bal- 
anced organization  Is  that  we  have  the 
support  of  the  major  energy  industries 
for  this  bill. 

Second,  this  bill  includes  strong  re- 
quirements on  reports  to  the  Congress 
so  that  the  policies  developed  can  be 
carefully  reviewed  by  the  appropriate 
committees.  In  addition  to  the  annual 
report  requirement,  we  have  included 
language  requiring  the  Administrator  to 
keep  appropriate  congressional  commit- 
tees fully  and  currently  Informed.  The 
bill  also  requires  that  appropriations  be 
authorized  smnually  except  as  may  be 
provided  otherwi.se  by  law.  Taken  to- 
gether, these  provisions  will  provide  the 
strongest  statutory  base  possible  for  con- 
gressional oversight. 

Third,  the  rotI  of  this  agency  is  to 
give  us  self-suflQciency  In  clean  energy; 
In  my  opinion,  the  only  way  we  can 
achieve  this  goal  of  clean  energy  Is 
through  a  greatly  expanded  research  and 
development  effort.  For  that  reason,  we 
have  not  only  created  an  assistant  direc- 
tor who  will  be  principally  responsible  for 


the  environment,  we  nave  also  suggested 
that  each  of  the  other  assistant  direc- 
tors build  into  their  programs  their  own 
envirorunental  programs.  I  concur  in  the 
statement  of  EPA  Administrator  Russell 
Train  when  he  said : 

(W)e  believe  there  Is  no  reason  why  en- 
ergy tachncloglcal  development  should  com- 
pete with  environmental  protection  because, 
If  properly  pursued,  both  goals  are  comple- 
mentary. 

Fourth,  the  same  general  comments 
can  be  made  about  safety  concerns.  We 
create  an  assistant  administrator  who 
will  have  principal  respcaisibility  for 
safety  of  all  energy  programs  and  also 
exhort  each  assistant  administrator  to 
develop  a  safety  program  within  his  area 
of  responsibility.  We  also  provide  that 
the  Advisory  Committee  on  Reactor 
Safeguards,  which  is  an  independent 
board  of  outside  experts,  will  be  available 
to  the  E31DA  Administrator  to  conduct 
reviews  of  an>'  ERDA  activity  he  so  de- 
sires. 

Finally,  I  would  like  to  note  that  the 
functioris  transferred  from  the  AEC  in- 
clude trie  weapons  program.  We  became 
aware  during  our  consideration  of  the 
bill  that  some  very  knowledgeable  people 
felt  this  program  ought  to  be  transferred 
to  the  Department  of  Defense.  As  the 
committee  report  indicates,  this  is  a  com- 
plicated area  which  will  reqmre  consid- 
erable renew  in  the  executive  branch  in 
order  to  determine  the  desirability  of 
the  transfer.  Accordingly,  the  bill  re- 
quires a  detailed  report  which  will  serve 
as  the  basis  of  congressional  reconsidera- 
tion of  this  issue  next  year. 

Of  course,  the  other  aspect  of  this  bill 
is  that  we  create  an  independent  reg- 
ulatory agency  built  upon  the  AEC  to 
handle  nuclear  licensing  and  regulatory 
functions.  In  the  past,  the  AEC  had  the 
mission  not  only  of  developing  nuclear 
energy,  but  also  of  regulating  it. 

The  reason  for  this  was  that  there  was 
not  sufficient  expertise  to  handle  both 
development  and  licensing  separately. 
But  now  the  time  has  come  when  we  can 
make  the  separation.  The  new  Nuclear 
Energy  Commission,  with  its  independ- 
ent regulatory  status,  should  help  dispel 
many  of  the  concerns  that  have  been  ex- 
pressed about  the  objectivity  of  the  AEC. 

One  point  relating  to  the  NEC  which 
I  think  bears  special  emphasis  is  that 
the  agency  will  be  able  to  conduct  re- 
search on  its  own.  Of  course,  much  of  the 
work  that  the  NEC  will  need  done  in 
order  to  determine  appropriate  regula- 
tions can  be  done  under  contract  by 
ERDA  and  others.  The  significant  fact, 
tliough,  is  that  the  NEC  can,  when  it  feels 
necessary,  undertake  research  on  its  own. 
While  I  would  hope  that  we  will  not  have 
costly  dupUcations  of  faculties,  I  would 
expect  the  authorizing  and  appropriat- 
ing committees  to  provide  whatever 
funils  are  required  to  assure  that  the 
indep>endence  of  the  regulatory  function 
is  properly  preservd. 

Mr.  Chairman,  tills  bill,  as  I  said  be- 
fore. Is  a  well  thought-out  piece  of  leg- 
islation. The  chairman  of  the  committee 
and  myself  have  spent  countless  hours 
with  the  agencies  Involved,  as  well  as  the 
staffs  of  several  committees  here  in  the 
Congress,  developing  this  bill.  We  have 


talked   with   numerous 

and  have   taken   their  suggertibtw  ~teW 

account.  The  bill  before  the  House  lodav 
meets  with  the  approval  of  all  of  the 
agencies  involved  and  ine  major  mterest 
groups  in  the  energy  area.  The  admin- 
istration considers  this  bill  to  be  of  the 
highest  priority  because  of  the  need  to 
begin  planrung  and  managing  a  greaUy 
expanded  energy  research  and  deveiop- 
ment  effort.  This  bill  was  approved  by 
the  subcommittee  unanimously  and  by 
the  full  committee  unanimously.  HJl 
11510  deserves  the  support  of  all  Mem- 
bers of  the  House.  I  hope  my  colleagues 
will  vote  for  this  bill. 

Mr.  ROSENTHAL.  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  HORTON.  I  yield  to  the  genUeman 
from  New  York. 

Mr.  ROSENTHAL.  Mr.  Chairman,  first 
let  me  congratulate  the  genUeman  for 
the  very  significant  contrtbuUon  which 
he  has  made,  together  with  our  distin- 
guished Chairman,  in  bringing  this  bill 
to  the  floor. 

Mr.  Chairman,  I  have  a  number  of 
questions  to  put  to  the  gentleman  from 
New  York. 

Mr.  HORTON.  Mr.  Chairman,  I  shaU 
be  glad  to  respond. 

Mr.  ROSENTHAL.  The  bill  we  are  de- 
baUng  provides  for  a  transfer  of  the 
MilitTxy  Applications  or  nuclear  weapons 
functions  from  the  Atomic  Energy  Com- 
mission to  the  Energy  Research  and  De- 
velopment Administration.  There  are 
those  who  argue  that  these  weapons-re- 
lated functions  belong  in  a  civilian-re- 
lated research  agency  because  of  the 
technological  spinoffs  and  such.  On  the 
other  hand  there  are  those  who  believe 
that  there  are  overriding  reasons  for  put- 
ting the  weapons  research  programs  into 
the  Defense  Department. 

Indeed.  H.R.  11510  does  require  a  re- 
port to  Congress  from  the  administrator 
and  Secretary  of  Defense  which  will 
thoroughly  review  the  desirability  and 
feasibility  of  transferring  to  DOD  all 
military  applications  functions.  I  would 
like  to  inquire  of  the  gentleman  from 
New  York  whether  it  is  not  the  purpose 
of  this  provision  that  there  be  a  thorough 
independent  and  objective  evaluation  of 
the  various  arguments  on  both  sides  of 
this  issue  and  that  it  is  not  the  intenUon 
of  this  legislation  to  prejudge  in  any 
way  the  merits  of  the  arguments  on 
either  side  of  the  issue. 

Mr.  HORTON,  The  gentleman  is  cor- 
rect. 

The  CHAIRMAN.  The  time  of  the  gen- 
tleman from  New  York  has  again  ex- 
pired. 

Mr.  HORTON  Mr  Chairman.  I  vield 
myself  2  additional  minutes. 

Mr.  ROSENTHAL.  Some  of  the  en- 
vironmental groups  have  expressed  con- 
cern that  the  legislation  we  are  discuss- 
ing overemphasiaes  nuclear  and  fossil 
fuel  research  and  development  and 
downgrades  solar  and  geothermal  ener- 
gy smd  conservation  of  resources.  I 
would  like  to  know  whether  the  gentle- 
man from  New  York  shares  my  under- 
standing that  it  Is  the  purpose  and  mis- 
sion of  EIRDA  to  maintain  a  balance 
among  all  the  forms  of  energv-  research 
and  development.  Is  that  not  correct? 


l.V.Tl 


CONGRESS  ION  A I    R  FCORD  —  HOUSE 


December  19,  1978 


Mr  HORTON  The  gentleman  Is  cor- 
rect. 

Mr.  ROSENTHAL.  I  would  like  to  ask 
my  distinguished  colleague  from  New 
York  <Mr  Horton*  whether  It  is  not  a 
correct  interpretation  of  this  legislation 
that  the  proposed  Nuclear  Energy  Com- 
mission which  will  continue  to  have  li- 
censing authority  over  nuclear  energy 
systems  will  have  authority  to  engage  in 
or  contract  for  nuclear  safety  research 
irrespective  of  whether  the  Energy  Re- 
search and  Development  Administration 
or  any  other  Federal  agency  can  make  its 
resources  available  to  NEC. 

Mr  HORTON.  The  gentlemen  is  cor- 
rect. We  would  hope  to  avoid  costly  dup- 
lication in  faculties  and  it  is  our  inten- 
tion that  ERDA  auid  every  other  Federal 
agency  will  cooperate  fully  with  the  NEC 
with  respect  to  nuclear  safety  research 
Mr.  THONE  Mr  Chairman,  will  the 
gentleman  yield? 

Mr.  HORTON  I  yield  to  the  gentle- 
man from  Nebraska,  a  member  of  the 
committee  (Mr.  Thone*. 

Mr  THONE.  Mr  Chairman,  as  a 
member  of  the  Committee  on  Govern- 
ment Operations.  I  strongly  support 
H-R.  11510.  It  reorganizes  and  consoli- 
dates functions  of  the  Federal  Govern- 
ment to  promote  more  efficiency  in  the 
most  critical  energy  area.  Now  is  the 
time  to  provide  its  organizational  base 
for  a  well-managed,  centrally-directed 
attack  on  energy  problems  in  order  to 
make  this  Nation, self-sufficient  in  clean 
energy  for  the  decades  ahead. 

I  am  proud  to  l)e  a  sponsor  of  H.R. 
11733,  which  is  also  this  Energy  Reorga- 
nization Act  of  1973.  It  is  in  the  public 
interest  that  this  legislation  be  passed 
and  signed  into  law  as  soon  as  possible.  I 
urge  strong  support  for  this  biU. 

Mr  BAKER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr  HORTON  I  yield  to  my  colleague, 
the  gentleman  from  Tennessee  iMr. 
Baker  > 

Mr  BAKER  Mr  Chairman.  I  rise  In 
support  of  this  bill  to  establish  an  agency 
to  direct  Government  research  in  the 
area  of  energy.  This  bill  would  combine 
portions  of  the  Atomic  Energy  Commis- 
sion, the  National  Science  Foundation, 
the  Environmental  Protection  Agency, 
and  the  entire  Office  of  Coal  Research 
of  the  Department  of  the  Interior  into 
one  overall  body  to  research  ways  to  pro- 
vide Americans  with  the  energy  we  need 
in  the  coming  years.  The  personnel  of 
these  offices  will  become  the  backbone  of 
the  new  agency. 

This  country  needs  one  organization 
to  handle  energy  research  and  develop- 
ment and  to  provide  a  solution  to  our 
long-term  energy  problems.  We  cannot 
afford  to  muddle  along  from  one  crisis 
in  the  summer  to  another  one  in  the  win- 
ter. This  bill  »t11  draw  together  the  pres- 
ently uncoordinated  Federal  energy  ef- 
forts into  one  united  effort  to  serve  the 
broad  interest  of  providmg  our  country 
the  needed  energy  for  the  decades  ahead. 

In  my  own  district  great  scientific 
minds  have  been  working  for  years  at  the 
Oak  Ridge.  Tenn.,  complex  on  ways  to 
provide  our  country  with  adequate  sup- 
plies of  energy  I  know  that  now  the  re- 


search capabilities  of  these  scientists  can 
t)e  a  great  help  to  this  energy  effort. 

Mr  Chairman,  the  Atomic  Energy 
Commission  assumed  responsibility  for 
the  Nation's  nuclear  energy  program  In 
January  1947  after  the  passage  of  the 
Atomic  Energy  Act  of  1946  by  the  Con- 
gress. This  lauuched  the  United  States 
on  a  program  to  develop  the  full  potential 
of  this  new  source  of  energy,  and  its  as- 
sociated materials  such  as  radioactive 
substances  for  peaceful  use.  Prom  the 
start  the  AEC  recognized  that  a  key  ele- 
ment in  the  achievement  of  its  objectives 
would  be  the  availability  of  talented  men 
and  women  with  the  requisite  level  of 
education  and  training  in  the  variety  of 
specialties  of  this  new  science. 

Our  investment  In  the  Oak  Ridge  op- 
eraUon  Is  about  $3 '  i  billion.  This  facility 
has  one  of  the  highest  concentrations  of 
scientifically  trained  minds  in  the  world. 
It  would  be  unthinkable  to  fall  to  use  to 
the  fullest  extent  these  resources  which 
have  been  provided  by  the  taxpayers  of 
this  country  for  Just  such  a  time  as  this. 
Mr.  Chairman.  I  support  the  bill.  I 
support  the  mission  which  It  purports  to 
accomplish.  I  support  the  Atomic  Energy 
Commission  as  the  principal  research 
arm  of  this  new  agency  to  accomplish 
this  mission  of  providing  sources  of 
energy  for  all  Americans.  I  urge  my  col- 
leagues to  support  this  bill.  This  country 
must  move  ahead  in  the  area  of  energy 
research. 

Mr.  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  HORTON.  Mr.  Chairman,  before 
I  yield  to  the  gentleman  from  California 
(Mr.  HosMER)  I  would  like  to  say  to  the 
gentleman  that  we  should  acknowledge 
the  fact  that  he  Is  a  cosponsor  of  this  bill 
and  he  worked  along  with  the  chairman 
of  the  committee  iMr.  HoLirtELO)  and 
another  cosponsor.  the  gentleman  from 
Illinois  <Mr.  Price)  to  put  together  this 
bill.  It  meant  a  great  deal  of  work  and 
many  long  hours  and  they  went  over  the 
bill  word  by  word  and  line  by  line.  I 
want  to  acknowledge  appreciation  to 
the  gentleman  from  California  for  his 
efforts  In  the  construction  of  this  bill 
and  for  his  support.  I  yield  now  to  the 
gentleman  from  California. 

Mr  HOSMER  Mr.  Chairman.  I  thank 
the  gentleman  from  New  York  very  much 
for  his  kind  remarks. 

Mr  Chairman,  the  distlngtilshed  gen- 
tleman from  California,  the  chairman  of 
the  Government  Operations  Committee 
and  former  chairman  of  the  Joint  Com- 
mittee on  Atomic  Energy,  has  fathered 
a  large  number  of  outstanding  legislative 
progeny  in  his  time 

His  latest  offspring.  ERDA.  promises. 
In  Its  turn,  to  be  exceptlonallj-  prolific.  It 
can  start  producing  soon  after  v.e 
christen  it  in  the  Congress,  because  it 
will  be  bom  endowed  with  mature  func- 
tions. 

Cross-fertilization,  symbiosis,  and  Ju.st 
plain  doing  what  comes  naturally  to  the 
well -organized,  should  produce  a  cornu- 
copia of  R.  k  D  fruits— assuming,  of 
course,  funds  are  liberally  sprinkled 
about. 

ThiB  bill  which  I  am  pleased  to  cospon- 


sor will  reallne  the  components  of  our 
national  strength  tn  energy  R.  fc  D.  so 
that  they  can  be  readily  applied  with 
maximum  leverage  and  effect  What  can 
be  more  natural  or  appealmg  In  the  face 
of  our  grim  long-range  energy  challenge? 
My  estimable  colleague  and  neighbor 
from  California,  whose  perspicacity  Is 
not  exceeded  by  his  characteristic  elo- 
quence, has  identified  this  milestone  bill 
as  a  good  beginning.  It  Is — at  least — sure- 
ly that.  But  It  Is  bound  to  be  the  start  of 
something  new — as  In  the  csise  of  the 
first  event  In  Genesis,  to  which  he  al- 
luded. 

More  must,  and  can.  follow.  For  ex- 
ample, the  regulatory  arm  of  the  Atomic 
Energy  Commission— which  would  be  re- 
named the  Nuclear  Energy  Commission 
'NEC>.  or  possibly  the  Nuclear  Safety 
Commission  must  be  an  even  better 
name,  will  be  able  to  concentrate  fully 
and  exclusively  on  Its  licensing  and  reg- 
ulatory responsibilities — with,  I  hope. 
a  good  deal  more  efficient  results.  I  won- 
der how  many  people  realize  that  an 
American-built  nuclear  powerplant  in 
Japan  can  be  designed,  constructed, 
and  brought  on  the  line  for  operation 
within  4  years  after  the  plant  is 
ordered — whereas  In  our  country  It  takes 
at  least  twice  as  long  to  do  the  same 
thing.  Let  me  cite  a  few  dismal  facts 
drawn  from  specific  cases. 

The  Long  Island  Lighting  Co.  applied 
to  AEC  for  a  "construction  permit"  in 
May  1968.  to  permit  the  company  to  start 
building  a  commercial  central  station 
electric  current  generation  type  of 
nuclear  powerplant,  the  Shoreham 
Nuclear  Power  Station.  Five  long,  costly, 
years  later  the  permit  finally  was  granted 
and  construction  could  at  last  begin.  In 
March  of  1969.  the  Wisconsin  Electric 
Power  Co.  applied  for  an  operating 
license  for  Its  Point  Beach  Nuclear 
Power  Plant.  Unit  2  Two  years  later  the 
AEC  announced  Its  Intention  to  Issue  the 
operating  license  Another  5  years  went 
by  before  electricity  finally  could  be  gen- 
erated. These  are  not  untypical  occur- 
rences. 

As  we  begin  to  christen  ERDA  today  so 
that  we  can  Intelligently  cope  with  our 
long-range  energy  problem,  let  us  be 
equally  prepared  to  remedy  our  shorter- 
range  deficiencies — without.  In  any  way. 
relaxing  our  high  standards  and  require- 
ments for  assuring  health  and  safety 
and  without  impairing  our  environment. 
Mr.  Chairman,  we  are  all  indebted  to 
my  dear  friend,  the  preeminent  sage  of 
California,  not  only  for  his  wLsdom  and 
judgment,  but  for  the  arduous  labor  that 
produced  this  bill.  He  personifies  an 
abundance  of  useful  energy  skillfully 
employed  for  the  common  good. 

We  are  also  and  equally  indebted  to 
the  gentleman  from  New  York  iMr. 
HoRTOw>  for  his  perceptive  wl.<!dom 
which  has  been  so  ably  applied  to  fa-ihlon 
here  an  effective  vehicle  for  expediting 
the  creation  of  an  Imaginative  structure 
for  forwarding  the  Nation's  necessary 
energy  R  k  D  functions.  The  gentleman 
serves  this  Nation  well  a.s  the  ranking 
minority  member  of  the  Government 
Operation^;  Committee  and  I  am  gmteful. 
Mr.  Chairman.  I  yield  3  minutes  to 
the  gentleman  from  Idaho  (Mr.  Hansew)  . 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42575 


Mr.  HANSEN  of  Idaho.  Mr  Chairman, 
first  of  all.  I  urge  passage  of  this  excel- 
lent and  needed  legislation,  which  I  am 
happy  to  cosponsor  I  join  v^nth  other 
Members  In  congratularmg  tiie  members 
of  the  Committee  on  Crovernment  Opera- 
tions for  the  long  hours  and  painstaking 
efforts  they  have  devoted  to  the  legisla- 
tion that  is  before  u.s  to  establish  a  new 
Energy  Research  and  Development 
Administration. 

Primarily,  however,  Mr.  Chairman.  I 
would  like  to  take  this  opportunity  to 
pay  special  tribute  to  the  gentleman  from 
California  Mr.  Holifield  i  lor  his  con- 
tributions, not  only  to  the  development 
of  this  legislation,  but  in  the  entire  en- 
ergy field  dunng  his  long  and  distin- 
guished service  in  the  Congress. 

I  am  sure  that  most  of  my  colleagues 
are  aware  that  the  gentleman  from  Cali- 
fornia (Mr.  HoLiriELDi  was  one  of  the 
original  members  of  the  Joint  Commit- 
tee on  Atomic  Energy  which  was  created 
by  the  Atomic  Energy  Act  of  1946.  His 
voice  was  among  the  first  that  was  clear- 
ly heard,  calling  the  attention  of  the  Con- 
gress and  the  Nation  to  the  inevitability 
of  the  energy  crisis  that  we  now  confront. 

Chet  HoLiriELD  combines  legislative 
skills,  technical  and  scientific  knowledge 
and  an  ability  to  view  the  long  range  and 
overall  needs  of  the  Nation  that  are  not 
matched  by  any  other  Member  of  Con- 
gress. These  exceptional  talents  have 
been  put  to  good  use  In  the  shaping  of 
this  landmark  legislation. 

Among  all  of  his  contributions  In  the 
energy  and  other  fields  over  more  than  a 
quarter  of  a  century  there  Is  probably 
none  that  wUl  have  a  more  lasting  and 
positive  Impact  on  the  future  of  our 
country  than  the  bill  that  Is  before  us 
today. 

I  would  also.  Mr.  Chalrmem.  acknowl- 
edge our  indebtedness  to  the  gentleman 
from  New  York  iMr.  Horton*  .  the  rank- 
ing minority  Member,  for  his  outstanding 
leadership  and  for  the  long  hours  that  he 
has  devoted  to  the  shaping  of  this  very 
important  bill. 

I  want  to  stress  one  point.  Mr.  Chair- 
man. The  bill  before  us  today  does  not 
offer  much  hope  for  relief  In  the  short 
nm  from  the  effect  of  the  energy  short- 
age we  will  face. 

It  will  provide  some  help  in  the  near 
term,  to  be  sure,  but  the  major  payoff 
will  came  In  the  mid  to  long  term,  that 
Is.  the  post- 1985  period. 

The  foundations  we  are  laying  here  to- 
day can  yield  important  and  enormous 
benefits  to  our  country  In  the  closing 
decades  of  this  century  smd  the  early  part 
of  the  next  century. 

Mr.  Chairman.  It  was  nearly  6  months 
ago  that  the  President  submitted  his 
energy  reorganization  proposal  to  Con- 
gress. I  supported  the  proposec  reor- 
ganization at  that  time.  In  the  Inter- 
vening period,  the  need  for  one  agency 
to  coordinate  and  direct  the  various 
research  and  development  efforts  In  the 
energy  field  has  become  even  more 
urgent.  It  has  become  Increasingly  clear 
In  the  last  few  weeks  that  this  Nation 
will  require  conscientious  development 
of  all  Its  energy  resources  If  we  are  to 
meet  our  energy   needs.   This  Includes 


fossil,  nuclear   hydro   solar,  geolhermal. 
and  possibly  others 

We  should  be  thankful  that  this  coun- 
try, compared  with  .some  less  fortunate 
nations,  has  such  an  abundance  of  nat- 
ural resources.  Our  supphes  of  natural 
gas  and  oil  may  be  showing  signs  of 
depleUjn.  but  our  scientists  and  engi- 
neers are  telling  us  that  with  a  co- 
ordinated research  effort,  significant 
quantities  of  petroleum  can  be  obtained 
from  existing  fields  by  enhanced  re- 
covery methods  In  the  past,  oil  com- 
panies have  been  able  lo  pump  out  only 
about  30  percent  of  the  oil  :.  plate.  New 
techniques,  not  yet  perfected,  may  per- 
mit recovery  of  another  30  or  40  percent 
of  oil  from  old  fields 

The  same  philosophj-  needs  to  be  ap- 
plied to  ways  of  drilling  oil  and  gas  wells 
faster,  say  in  2  months  Instead  of  9.  We 
will  need  fiui,her  research  and  develop- 
ment In  bringing  maximum  amounts  of 
oil  from  Alaska  and  offshore  fields.  Much 
work  also  needs  to  be  done  to  find  the 
best  and  most  environmentally  suitable 
methods  of  recovering  oil  from  the  vast 
resources  of  oil  shale  in  Colorado,  Utah, 
and  Wyoming. 

There  are  even  greater  reserves  of  coal 
which  can  be  extracted  with  improved 
mining  and  reclamation  techniques  and 
used  with  new  pollution  abatement  meth- 
ods to  make  it  environmentally  accept- 
able. 

In  certain  areas  of  the  West,  Including 
my  own  State  of  Idaho,  we  have  several 
different  types  of  geothermal  resources 
which  can  be  developed  if  the  technology 
and  financial  backing  are  available.  And 
there  is  no  shortage  of  simshine  in  most 
of  our  States,  but  this  great  source  of 
energy  needs  to  be  developed  further, 
not  just  for  heating  and  cooling  of  build- 
ings, but  for  producing  electricity.  We 
are  lacking  the  technology  to  do  that  on 
a  meaningful  scale. 

Obviously,  we  are  not  lacking  in  nat- 
ural resources,  but  the  technology  is  not 
yet  advanced  to  the  point  where  there 
can  be  efficient  and  timely  exploitation 
of  these  resources.  The  Energy  Research 
and  Development  Administration  would 
provide  the  organizational  vehicle  for 
the  rapid,  balanced,  and  C(X)rdinated  de- 
velopment of  necessary  technologies. 

There  is  no  doubt  that  the  scientific, 
technical  and  management  capability  Is 
available.  ERDA  would  use  the  personnel 
base  that  presently  exists  in  the  Atomic 
Energy  Commission  as  well  as  certain 
technical  expertise  which  would  be  in- 
corporated from  the  Office  of  Coal  Re- 
search and  other  agencies, 

AEC  currently  has  a  huge  complex  of 
laboratories  and  facilities  which  are 
operated  by  contractors.  Some  90,000 
employees  work  at  AEC  and  Its  various 
Installations.  Including  25.000  scientists 
and  engineers.  The  capital  Investment  Is 
about  $9.7  billion.  Included  are  seven 
multiprogram  laboratories  and  25  engi- 
neering and  specialized  physical,  bio- 
medical and  environmental  research  fa- 
cilities. 

Work  carried  out  In  these  facilities 
over  the  years  has  provided  the  nuclear 
basis  for  our  national  defense.  Including 
the  nuclear  ship  propulsion  program; 
that  research  work  provided  the  basis  for 


the  Nation's  nuclear  electric  power  pro- 
gram; It  provided  Isotopic  power  for 
such  wide-ranging  uses  as  space  satel- 
lites and  cardiac  pacemakers,  as  well  as 
radioisotopes  for  many  other  medical  ap- 
plications: and  it  al.so  made  possible 
various  .scientific  discoveries  m  the  phys- 
ical and  life  sciences,  and  significant 
advances  in  controlled  fusion  research. 
All  the  research  and  de\elopment  ear- 
ned out  m  AY.C  iiisiallations  has  not 
been  devoted  exclusively  to  atomic 
energy  AEC  laboraLones.  for  example, 
have  served  a.s  maior  research  centers 
lor  the  Nation's  h:gn  energy  physics  pro- 
gram. And  for  some  years  certain  non- 
nuclear  work  01  other  Government  agen- 
cies has  been  conducted  at  the  multi- 
program  national  laboratories.  'Hils  was 
the  case  even  before  the  Congress  in  1971 
authorized  the  AEC  to  conduct  non- 
nuclear  work  related  to  energy.  Most  of 
AEC's  nonnuclear  effort  has  dealt  with 
energy  storage  batteries  and  supercon- 
ducting transmission  cables,  but  prelimi- 
nary work  also  has  been  carried  out  In 
conectlon  with  geothermal  and  solar 
energy,  and  in  coal  gasification  and 
liquefaction. 

The  AEC  national  laboratories  are  not 
a  misnomer;  they  are  located  In  aU  re- 
gions of  the  United  States  and  have  car- 
ried out  research  for  various  national 
programs.  It  will  be  particularlj'  appro- 
priate when  ERDA  is  formed  and  the  na- 
tional labs  can  provide  some  of  their  vast 
resources  for  a  coordinated  attack  on  the 
national  energy  problem 

Some  people  have  voiced  concern  that 
ERDA  will  be  over- balanced  in  favor  of 
nuclear  research  and  development.  I  do 
not  expect  that  to  be  the  case  AEC 
Chairman  Dixy  Lee  Ray  has  on  numer- 
ous occasions  stated  tliat  there  should 
be  balanced  development  of  all  appli- 
cable energy  sources.  Her  recommenda- 
tions for  the  $10  billion  energy  R.  k  D. 
program  for  the  next  5  years  were  spread 
over  the  broad  spectrum  of  energy 
sources. 

It  is  true  that  the  AEC  has  imder  way 
two  major  energj-  development  programs 
which  are  expected  to  take  considerable 
funding.  These  are  the  liquid  metal  fast 
breeder  reactor  and  the  various  experi- 
ments to  harness  the  fusion  process.  Both 
of  these  programs  have  tremendous  po- 
tential and  the  eventual  payoff  is  ex- 
p>ected  to  be  worth  the  necessary  ex- 
penditures for  tlmelj-  development.  The 
fast  breeder  Is  expected  to  be  commer- 
cially available  in  tlie  mid-1980s  and  the 
fusion  reactor  toward  the  end  of  this 
century. 

Much  of  the  other  research  and  de- 
velopment in  ERDA  will  be  directed  to 
the  near-term  needs  of  the  next  10-12 
years,  which  are  most  crucial.  To  be  in- 
cluded are  methods  to  consene  energy, 
to  improve  efficiency  In  production  and 
use  of  energy,  to  Improve  sulfur  removal 
techniques  and  pollution  control  devices, 
to  increase  the  production  of  gas  and  oil. 
and  to  accelerate  the  use  of  coal  as  a  sub- 
stitute for  gas  or  oil  through  gasification 
or  liquefaction. 

All  of  these  K.  k  D.  matters  should  t)e 
coordinated  and  directed  in  one  agency. 
ERDA  is  needed  to  integrate  the  efforts 
of  diverse  research   groups   whicli  are 


12.'7r, 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


presently  competmg  for  skilled  people, 
funds,  and  facilities.  If  those  resources 
are  to  be  used  in  the  best  possible  way. 
there  must  be  central  planning  and  co- 
ordination of  all  energy  research  and 
development  efforts.  The  creating  of 
E3iDA  will  help  to  focus  responsibihty 
for  the  Government's  diverse  activities 
in  this  field. 

While  ERDA  would  concentrate  its  at- 
tention on  energy  research  and  develop- 
ment, the  responsibihty  for  regulating 
nuclear  energ>-  would  be  held  by  a  Nu- 
clear Energy  Commission,  which  is  pro- 
posed m  title  II  of  the  Energy  Reorga- 
nization Act.  This  final  separation  of  the 
nuclear  development  functions  and 
regulatory  funcuons  of  the  Atomic  En- 
ergy Commission  should  help  alleviate 
the  concern  felt  in  some  quarters  that 
there  has  been  an  inherent  conflict  in- 
volved in  such  a  dual  responsibility.  The 
rapid  growth  of  the  nuclear  power  in- 
dustry in  recent  years  has  placed 
increased  demands  on  the  regulator>' 
program.  The  ume  has  now  come  when 
the  scope  and  magnitude  of  the  regula- 
tory functions  require  the  undivided  at- 
tention oL  one  agency.  The  proposal  to 
provide  for  a  separate  Nuclear  Energ>- 
Commission  is  a  logical  step  in  the  evo- 
lution of  the  Government's  role  in  con- 
trolling nuclear  development  and  use. 

Mr  Chairman,  through  the  passage  of 
this  bill,  we  are  taking  a  giant  step  to- 
ward the  realization  of  our  goal  of  pro- 
viding the  Nation  with  an  abundant 
supply  of  safe  and  clean  energj-. 

Mr  HORTON  Mr  Chairman.  I  yield 
3  minutes  to  the  gentleman  from  Mary- 
land 'Mr  Gtt)e>  . 

Mr  GUDE.  Mr.  Chairman.  I  rise  in 
strong  support  of  H.R.  11510  the  Energ> 
Reorganization  Act  of  1973.  If  we  are 
strong  support  of  H.R.  11510.  the  Eiiergy 
ai\  all-out  effort  on  the  Federal  level  aim- 
ed at  developmg  alternate  sources  of 
energy  to  petroleum,  we  must  undertake 
an  immediate  effort  aimed  at  imple- 
menting a  major  research  and  develop- 
ment effort.  Present  Federal  R.  &  O.  In 
this  area  is  fragmented  It  is  spht  among 
numerous  of  the  departments  and  agen- 
cies. Lest  we  fall  Into  the  trap  of  our 
right  hand  not  knowing  what  our  left 
hand  is  doing,  w«  must  have  a  coordi- 
nated approach  to  our  research. 

It  is  just  a  coordinated  approach  which 
this  legislation  will  bring  about.   This 
measure  starts  out  by  creating  two  new 
bodies,  the  Nuclear  Energy  Commls.<;lon 
,     and  the  Energy  Research  and  Develop- 
ment Administration  The  NEC  will  take 
/ver  all  licensing  cind  regulatory  func- 
'tions  of  the  present  Atomic  Energy  Com- 
mission   As  many  of  you  know  such  an 
effort   has   long  l)e?n   advocated  as   the 
way  to  avoid  the  long.sundlng  conflict 
of  Interest  Inherent  In  the  present  make- 
up of  the  AFC 

The  Energy  Research  and  Develop- 
ment Administration.  ERDA.  will  take 
over  the  task  of  operating  all  Federal 
energy  R  fc  D  It  will  be  made  up  of  the 
perwnnel  presently  employed  by  the 
vanoixs  agencies  and  department*  and 
workmg  in  the  energy  R  t  D  areas  and 
It  will  bring  In  new  technolcwflcal  talent 
The  ERDA  Administrator  is  Intended  to 
be  a  person  whose  broad  background  In 


energy  R.  it  D.  is  such  that  he  or  she  will 
be  able  to  objectively  assess  each  poten- 
tial technology  without  a  heavy  bias  in 
favor  of  a  smgle  approach.  Indeed,  our 
committee  has  mcluded  specifically  in  its 
report  the  intent  of  the  committee  and 
the  Congress  in  this  regard. 

Some  reservations  were  raised  in  our 
full  committee  meeting  as  to  the  effect  of 
the  administrative  structure  of  ERDA  on 
the  emphasis  and  direction  of  the  new 
R.  k  D.  effort  which  will  be  carried  out 
under  this  bill.  I  joined  in  those  concerns, 
and  am  pleased  that  they  have  been 
spoken  to  in  the  committee  report 

Under  the  measure,  there  would  be  cre- 
ated five  assistant  administrators,  each 
responsible  fcr  different  aspects  of 
ERDAswork. 

The  concern  centers  upon  the  fact 
that,  while  both  nuclear  energj-  and  fossil 
energy  was  each  given  a  separate  ad- 
ministrator, all  other  forms  of  nonfossil 
energy.  Including  solar,  geothermal. 
tides,  winds,  and  so  on.  were  lumped  to- 
gether. 

It  was  not  my  Intention,  nor  was 
it  the  intention  of  the  committee,  that 
the  administrative  makeup  of  the  ERDA 
was  to  be  construed  in  any  way  as  mean- 
ing that  little  emphasis  should  be  given 
to  the  more  advanced  nonfossil  fuel 
sources.  Indeed,  quite  to  the  contrary,  it 
is  the  intention  of  this  legislation  that 
each  potential  energy  form  be  given  full 
attention. 

As  a  result,  it  has  been  spelled  out  in 
the  committee  report  that  no  one  form 
is  to  be  given  preferential  treatment.  It 
will  be  incumbent  upon  us  in  the  Con- 
gress during  the  authorization  and  ap- 
propriations process  for  ERDA  to  assure 
that  all  forms  of  energy  are  explored 
with  support  commensurate  with  their 
potential. 

But  I  believe  we  can  add  emphasis  and 
strength  if  we  provide  two  additional  ad- 
ministrative positions,  one  whose  sole  re- 
sponsibility would  be  for  solar  energy 
and  another  responsible  for  geothermal 
energy. 

These  two  are  the  most  promising  of 
all  the  posslbihties  of  advanced  systems 
and  this  would  be  an  extra  guarantee 
that  ERDA  will  perform  In  the  most 
objective  manner  possible.  Let  us  re- 
member that  the  results  of  Its  work  will 
be  felt,  one  can  safely  say  for  hundreds 
of  years  to  come.  For  this  reason  I  also 
believe  that  one  assistant  administrator 
should  b»e  solely  responsible  for  the  en- 
vironmental and  safety  aspects  of  each 
technolog>-  under  exploration  and  that 
we  have  a  separate  administrator  for 
the  conservation  of  energy  resources. 

The  critical  importance  of  conserva- 
tion at  this  point  as  America  searches 
for  every  possible  source  of  energy  can- 
not be  overemphasized  when  we  remem- 
t)er  that  33  percent  of  the  energy  ex- 
pended in  this  country  is  completely 
wasted — an  absurd  situation  which  de- 
serves the  full  time  and  attention  of  one 
a«>i.stant  administrator 

Mr  Chairman.  I  urge  my  colleagues  to 
support  this  legislation  as  well  as  the 
two  amendments  which  would  strength- 
en It  In  Its  critical  work.  To  Uke  an 
Important  step  toward  energy  self-suf- 
ficiency, I  strongly  urge  that  support. 


Mr.  HORTON  Mr.  Chairman,  I  yield 
1  minute  to  the  gentleman  from  New 
Mexico  iMr.  Lujan). 

Mr.  LUJAN.  Mr.  Chairman,  I  want  to 
congratulate  the  committee  on  this  leg- 
islation. All  through  the  legislation  I 
listened  to  the  arguments,  and  I  really 
believe  this  Is  probably  the  most  impor- 
tant piece  of  legislation  we  have  had  be- 
fore the  Congress  this  year  and,  as  a 
matter  of  fact,  in  a  long,  long  time. 

Last  week  we  debated  for  3  days  a  bill 
which  was  very,  very  controversial  and. 
in  the  final  aualysis,  is  not  going  to  add 
one  iota  to  the  needs  we  have  in  this 
country.  However,  this  bill  and  the  ad- 
ministration It  creates  will  certainly  be 
the  answer  to  the  problem  we  have  and 
will  lead  us  to  the  day  when  we  can  teU 
those  who  would  shut  off  the  valve  to 
take  their  oil  and  do  whatever  they  want 
to  do  with  it. 

Certainly,  if  It  were  not  for  this  legisla- 
tion, we  would  not  ever  be  in  a  position 
to  do  so. 

So  really  and  sincerely  I  want  to  con- 
gratulate the  committee,  the  chairman, 
the  ranking  member,  and  all  those  who 
worked  so  hard  on  It. 

Mr.  HOLIFIELD.  Mr.  Chairman,  I 
yield  3  minutes  to  the  gentleman  from 
New  York  ( Mr.  Rosknthai  i . 

Mr.  ROSENTHAL.  Mr.  Chairman.  I 
want  to  commend  the  chairman  of  the 
committee  for  the  very  signiflcant  effort 
and  accomplishments  he  made  in  bring- 
ing this  bill  to  the  floor. 

There  is  one  thing  I  want  to  advise 
the  members  of  the  committee,  Mr. 
Chairman.  We  must  never  forget  when 
we  establish  new  developments  and 
agencies  that  these  organizations  make 
policies.  While  it  is  absolutely  true  the 
authorizing  committees  and  the  appro- 
priating committees  will  have  a  more 
signiflcant  hand  in  developing  programs 
and  appropriating  funds,  the  organiza- 
tional structure  we  establish  today  or  at 
any  time  we  authorize  a  new  agency,  has 
an  enormous  input  Into  the  policy  over- 
tones flowing  from  that  agency.  The  way 
the  charts  are  established  today  will 
make  a  significant  contribution  to  the 
policy  that  follows. 

At  the  appropriate  time,  Mr.  Chair- 
man. I  win  offer  two  amendments  both 
of  which  I  think  will  substanUaliy  and 
signlflcantly  improve  this  legislation. 

The  first  of  them  Is  consponsored  with 
the  gentleman  from  Maryland  'Mr. 
GuDt  I  which  he  has  already  referred  to 
and  which  authorizes  a  separate  admin- 
istrator for  energy  conservation.  Under 
the  organizational  chart  what  they 
would  do  is  have  an  administrator  for 
environment,  safety,  and  conservation, 
an  assistant  administrator  for  environ- 
ment and  safety  and  additionally  a  sepa- 
rate assistant  swlmlnlstrator  for  energy 
conservation 

I  do  this  because,  as  the  gentleman 
from  Mar>'land  <Mr.  Gude)  has  already 
suggested,  energy  conservation  Is  an 
enormously  Important  field,  and  It  has 
been  .significantly  neglected,  and  this  Is 
one  area  that  we  can  make  a  very  mean- 
ingful contribution  to  today. 

The  second  amendment  that  we  will 
offer  Is  to  create  two  new  assistant  ad- 
ministrators,   one    for    geothermal    re- 


Decemher  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42577 


search,  and  one  for  solar  research.  We 
believe  the  fact  that  there  w.in  be  such 
an  assistant  admini.stralcir  for  each  of 
these  areas  i.s  e.s.seiuial  and  will  have  a 
significant  imparl  not  only  on  appro- 
priations and  aulhonzalions.  but  an  im- 
pact on  the  input  and  policies  that  flow 
from  ihLs  administration  So  I  would  urge 
that  my  colleague.s  support  both  of  these 
amendments,  which  will  be  offered  at  the 
appropriate!  time 

The  CHAIRMAN.  The  time  of  the  gen- 
tleman has  expired 

Mr.  HOLIFIELD  Mr  Chairman,  I 
yield  5  mmutes  to  the  distinguished  gen- 
tleman from  Wyoming     Mr.  Roncalioi. 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman  and  colleagues.  I  feel  some- 
what like  being  in  the  presence  of  the 
mighty  men  of  the  past  today,  as  we  con- 
sider the  scope  of  what  we  are  at>out  to 
do.  I  envision  E^nrlco  PYrmi  is  standing 
with  us  as  we  look  at  the  gentleman  from 
California.  Mr  CIiet  Holifield.  I  believe 
that  he  wiU  go  down  with  the  mighty 
men  of  history— Admiral  Rickover,  Milt 
Shaw.  James  Ramey — as  one  who  has 
made  possible  great  contributions  to- 
ward energy  gains  and  nuclear  reactor 
power  in  the  history  of  our  Nation. 

Mr.  Chairman,  it  has  been  my  honor 
to  serve  on  the  Joint  Committee  on 
Atomic  Energy  with  the  gentleman  from 
California  <Mr,  HoLirreLDi.  the  distin- 
guished gentleman  from  New  Mexico 
•  Mr.  LuJAN>,  the  gentleman  from  Idaho 
(Mr.  Hansen  I.  and  with  that  great 
admiral  and  gentleman  from  California, 
Craig  Hosmer,  and  Chairman  Mel  Price, 
of  niinois. 

We  have  considered  the  complex  prob- 
lems of  uranium  enrichment.  And  the 
gentleman  from  California  <Mr.  Hoti- 
FiELDt,  the  chairman,  has  led  us  stead- 
fastly In  our  endeavor  on  the  Joint  Com- 
mittee on  Atomic  Energy,  We  have  put  In 
many,  many  hours  on  long,  difficult,  and 
tremendously  complicated  matters  in  our 
hearings,  matters  affecting  the  future  of 
fxjwer  generation  in  America  today. 

We  have  noted  with  pride  the  accom- 
plishments of  our  Navy,  particularly  in 
what  nuclear  power  has  done  for  the 
Navy  in  displacing  fuel  oil.  particularly 
on  our  carriers,  and  every  one  of  our 
submarines  all  of  which  are  now  nuclear 
powered. 

We  are  hopeful  that  this  legislation 
will  relieve  us  from  our  dependence  on 
oil  n.itlonwlde.  just  as  we  have  been 
relieved  from  our  dependence  on  oil  In 
powering  our  carriers  and  submarines  In 
our  Navy. 

So  I  honor  the  gentleman  from  Cali- 
fornia 'Mr.  Holifield •  today.  lam  proud 
to  be  associated  with  the  gentleman. 

But  I  have  reservations  on  the  funding 
on  our  actions  here  today  In  the  rush  to 
meet  the  energy  situation  our  Nation  Is 
experiencing.  There  are  thase  who  are 
lined  up  solid  for  this  bill  and  those  who 
would  nrefer  the  bill  passed  by  the  other 
body.  Each  provides  In  Its  own  way  for  a 
governmental  reorganization  to  deal 
more  effectively  with  midterm  and  long 
range  energy  supply  and  energy  source 
availability.  I  have  no  doubt  that  which- 
ever of  the.se  measures  came  before  the 
House  first  would  pass.  It  would  not  be 
politically  healthy  at  this  time  to  vote 


against  a  measure  intended  to  help  ease 
energy  shortages. 

Many  of  us  have  looked  with  dismay 
at  the  actions  "downtown"  In  dealing 
with  the  energy  situation  and  counted 
the  energy  czars  as  they  come  and  go. 
each  time  hoping  that  effective  orga- 
nization and  action  would  move  us  more 
toward  alleviating  the  crLsis  pressure 

Now  in  Congress  we  are  seeing  similar 
power  plays  and  moves  to  rush  through 
legislation  which  will  have  an  impact  on 
the  very  organization  and  committee  ar- 
rangements, the  seats  of  power,  in  this 
body.  The  particular  concern  I  have  with 
the  bill  before  us  comes  from  the  legis- 
lative histor>'  being  compiled  behind  it. 
On  page  23  of  the  committee  report,  93- 
707,  I  call  your  attention  to  the  follow- 
ing; 

The  Administrator  wlU  take  note,  of 
course,  of  the  report  to  the  President  sub- 
mitted by  Dr,  Dixy  Lee  Ray.  Chairman  of 
the  Atomic  Energy  Commission,  on  December 
1.  1973,  ThU  report,  entitled  The  Nation's 
Energy  Future,"  was  prepared  at  the  Presi- 
dents request  and  is  pointed  "toward  the 
attainment  of  a  capacity  for  energy  self-suf- 
ficiency by  1980."  The  Administrator,  of 
course.  wUl  use  his  own  best  Judgment,  Il- 
lumined by  the  best  Intelligence  and  advice 
he  can  obtain,  to  determine  whether,  or  In 
what  manner,  the  aforementioned  report 
should  be  modified  to  accord  with  available 
resources,  emerging  opportunities,  and  re- 
sponsibilities under  the  charter  given  bv  thU 
bUl, 

I  wonder  how  many  Members  have 
had  the  opportunity  to  study  that  report, 
the  report  which  will  to  a  large  extent 
serve  as  a  basis  for  action  under  ERDA? 
Do  we  not  need  time  for  all  of  the  Mem- 
bers to  digest  these  proposals? 

Dr,  Ray  has  my  highest  respect  and  I 
am  second  to  none  in  my  praise  of  her 
talents.  However,  there  is  one  small  part 
to  her  report  to  the  President  which  I 
totally  oppose  because  it  would  be  waste- 
ful and  destructive  if  pursued. 

The  plan  sent  to  the  President  calls  for 
an  expenditure  through  the  year  1979 
of  a  total  of  $107.6  million  for  nuclear 
stimulation  of  natural  gas  and  oil  shale. 
Dr.  Ed  Teller  would  include  deep  coal 
deposits  in  such  experiments. 

Nuclear  stimulation  of  gas  in  tight 
rock  formations  has  been  tried.  Three 
wells  have  been  stimulated  to  date  with- 
out the  sale  of  1  cubic  foot  of  natural 
gas. 

Nuclear  stimulation  of  oil  shale  is  in 
a  much  earlier  stage,  but  I  do  not  believe 
it  is  an  alternative  worthy  of  considera- 
tion. The  AEC  has  looked  into  this  pos- 
sibility, but  has  done  little  work  on  it 
since  1967  until  only  recenUy. 

Just  this  week  members  of  the  Interior 
Committee  heard  a  highly  informative 
presentation  by  represenUtives  of  Oc- 
cidental Petroleum  describing  their  non- 
nuclear,  conventional  techniques  of  ex- 
tracting oil  from  oil  shale  by  the  in-situ 
process.  The  representatives  said  that 
this  technology  Is  ready  to  go  with  only 
minor  technical  Improvements. 

Tlie  people  of  Wyoming  and  Colorado 
who  have  been  closest  to  nuclear  stimu- 
lation of  natural  gas  are  now  confronted 
witli  nuclear  sUmulation  of  oil  shale. 
We  recognize  that  our  abundant  natural 
resources  have  to  be  developed  In  the 


national  Interest  and  we  are  piepared  to 
do  this   but  not— with  the  double  threat 

of  nuclear  stimulation  of  gai«  and  .shale 

to  do  so  at  the  cost  of  the  quahtv  of  life 
there  for  wasteful,  unproven,  .scientific 
erotica. 

The  Atomic  Energj-  Commission  esti- 
mated as  late  a.-;  Apn!  of  this  vear  that 
5,680  wells  would  be  stimulated  bv  nu- 
clear device.s  m  order  to  free  300  trillion 
cuDic  feel  of  gas  Each  well  would  have 
Irom  four  to  six  100-kiloton  nuclear  de- 
vices. That  puts  the  firing  power  up  to 
142,000  Hiroshima  bombs  over  an  80- 
year  period. 

Project  Rio  Blanco,  the  last  nuclear 
stimulation  test,  has  shown  disappoint 
ing  results  for  the  AEC. 

After  6  days  of  test  flaring,  the  weU 
pressure  dropped  dramatically  Some 
12.000  barrels  of  well  mud  and  water 
were  dumped  down  the  well  hole  and 
It  is  now  thought  that  the  three  30-kilo- 
ton  explosions  did  not  create  one  chimney 
as  planned,  but  rather  three  unconnected 
cavities,  another  disappointment  in  the 
trail  of  unfilled  promises. 

Hydrofracturing  has  now  been  shown 
to  be  able  to  free  the  gas  located  in  these 
tight  formations.  More  wells  may  have 
to  be  drilled,  but  there  would  be  no  major 
disrupUon  of  life,  there  would  not  be  re- 
peated nuclear  underground  detona- 
tions, there  would  not  be  the  production 
and  distribution  of  radioactive  gas  con- 
taimng  carbon  14  with  a  half  hfe  of 
5,730  years,  there  would  not  be  an  un- 
derground disposal  of  an  estimated  100  - 
000  barrels  of  tntiated  water  per  well  and 
there  would  not  be  a  diversion  of  pre- 
cious uranium  from  our  reactor  program 
On  this  basis,  hydrofracturing  is  a  far 
more  beneficial  technology'  to  pursue. 

Information  on  nuclear  sUmulation  of 
oil  shale  for  in  situ  recoverv  is  Umited 
However.  Uiere  is  no  doubt  in  mj-  mind— 
and  I  would  like  to  be  enlightened  if  this 
is  not  the  case— that  petroleum  produced 
by  this  method  would  contain  radioac- 
Uvity  as  does  the  gas  produced  by  nu- 
clear stimulation. 

Mr.  Chairman,  at  this  time  of  national 
energj-  shortages,  pessimistic  outlooks 
on  energy  in  the  immediate  future  and 
the  rush  to  enact  remedial  legislaUon 
we  cannot  act  in  haste,  however  poUUc 
such  speed  may  be.  If  we  rush  this  bUl 
through  to  law.  we  wUl  be  committing 
to  legislaUve  history,  and  possiblv  to 
later  authorizations  and  appropriations 
a  program  which  will  put  nuclear  stimu- 
lation, with  Its  economic  and  environ- 
mentAl  waste,  on  a  priority  basis  at  the 
expense  of  the  safer  and  more  long-term 
technologies  of  hjdrofracturing.  solar, 
and  geothermal  energj-  de\-elopment.  We 
will  be  jeopardizing  the  breeder  reactor 
program  by  misuse  of  the  uranium  atom. 
The  nuclear  world  has  enough  troubles 
without  creating  resistance  in  wasteful 
stimulation  acthity. 

Mr.  FOUNTAIN.  Mr,  Chairman.  wiU 
the  gentleman  yield? 

Mr.  RONCALIO  of  Wj-oming  I  am 
happy  to  yield  to  the  genUeman  from 
North   Carolina    (Mr.   Poctntadii 

Mr.  FOUNTAIN.  Mr.  Chairman.  I  am 
honored  to  have  been  one  of  the  cospon- 
sors  of  a  bill  H.R.  11731.  idenUc&l  in 
subject  matter  and  purpose  to  HR.  11510 


42578 


CONGRESSIONAL   KKORD       HOUSE 


December  19,  197S 


which  was  introduced  by  the  distin- 
guished and  able  chairman  of  the  House 
Government  Operations  Committee.  Mr. 
HonTiKLD,  of  California  and  the  rank- 
mg  minority  member  thereof.  Mr.  Hoe- 
ton,  of  New  York. 

I  would  like  to  commend  both  Mr 
HoLiFixLo  and  Mr  Horton  for  their  ded- 
ication and  cooperation  in  bringing  this 
historic  legislation  to  the  floor  of  the 
House  for  consideration  at  this  time. 
Every  member  of  the  HoUfleld  reorgani- 
zation subcommittee  is  entitled  to  the 
gratitude  of  this  body 

I  would  also  like  to  take  this  oppor- 
tunity to  pay  my  personal  respect  and 
tribute  to  Mr.  HoLiriiLD  for  his  leader- 
ship here  in  the  House,  not  just  in  con- 
nection with  this  legislation,  but  also  in 
connection  with  so  many  other  very  im- 
portant pieces  of  legislation  which  have 
been  enacted  into  law  by  ttie  Congress 
during  his  long  tenure  of  service  In  this 
body. 

During  all  of  my  years  of  service  in 
the  House  suid  on  the  House  Government 
Operations  Committee.  I  don  t  believe  I 
have  observed  any  Member  of  this  6ody 
more  tireless  in  his  labors,  and  efforts. 
None  of  us  have  always  agreed  with 
every  position  he  has  taken — that  is 
democracy  in  action — but  I  believe  all 
who  have  been  associated  with  him  or 
who  have  observed  him.  will  agree  that 
he  is  truly  one  of  the  "work  horses"  of 
this  bod>'  Pew  Members  put  In  as  many 
hours  of  work.  My  office  is  Just  around 
the  comer  from  his.  I  know  of  the 
man)'  many  times  he  has  worked  well 
into  the  night.  Pew  members  much 
younger  can  keep  up  with  him. 

But  what  I  admire  most  about  Chet 
HoLirtiLD  is  his  sincerity  and  dedication 
in  whatever  he  undertakes. 

The  bill  before  the  House  today.  H  R. 
11510.  Identical  as  I  have  said  to  HR 
11731.  which  I  had  the  pleasure  of  co- 
sponsoring,  appropriately  responds.  I  be- 
lieve, to  the  energy  needs  of  the  future 
by  reorganizing  energy  research  and  de- 
velopment in  a  coordinated  and  logical 
way.  It  will  bring  together  the  expertise 
and  proven  competence  of  the  Atomic 
Eiiergy  Commissions  laboratories  with 
the  vast  potential  of  fossil  fuel  within 
the  Office  of  Coal  Research  and  the  Bu- 
reau of  Mines  from  the  Interior  Depart- 
ment It  would  also  add  the  ongoing  pro- 
grams of  the  National  Science  Founda- 
tion in  the  fields  of  solar  and  geothermal 
research  and  the  technological,  automo- 
tive R  k  D  from  the  Environmental 
Protection  Agency 

This  is  a  bill  which  ha.s  been  consid- 
ered carefully  after  extensive  hearings 
last  July,  when  ERDA  was  a  portion  of  a 
comnrehensive  administration  reorga- 
nization proposal,  and  again  last  month, 
on  this  bill. 

During  the  hearings  the  committee 
heard  witnesses  from  the  administra- 
tion, the  industrial  sectors  Involved  and 
interested  private  groups  and  individ- 
uals. Following  those  hearings  several 
technical  and  minor  substantive  amend- 
ments were  made  to  accommodate  the 
problems  brought  out  in  the  hearings. 
This  bill  was  then  reported  unanimously 
with  40  members  concurring  It  is  Im- 
portant to  recognize,  that  while  this  bill 


is  a  response  to  the  energy  crisis  we  face, 
it  is  an  effort  to  And  long-term  solutions 
for  the  problem.  As  such,  it  should  not 
be  confused  with  administration  pro- 
posals for  a  second  administrative 
agency  to  handle  the  emergency  legisla- 
tion passed  last  week  by  the  Congress 
That  agency,  the  Federal  Energy  Ad- 
ministration, has  been  set  up  by  the  Pres- 
ident's Executive  order  and  he  has  an- 
nounced it  will  l-e  headed  by  William 
Simon.  Early  next  year  if  not  this  week, 
we  will  give  thoughtful  consideration  to 
enacting  into  law  the  Federal  Energy 
AdminL^tration  bill  to  handle  allocation, 
rationing,  and  other  programs  to  re- 
spond to  the  present  emergency. 

Today,  however,  the  business  before 
the  House  is  the  passage  of  HR.  11510. 
which  will  start  the  Federal  Government 
along  the  road  to  energy  self -suffi- 
ciency by  creatmg  the  Energy  Research 
and  Development  Administration  Hav- 
ing waited  too  lon^i,  to  begin,  we  can  delay 
no  'nger  our  commitment  to  solving  the 
energj,-  problem.  Not  just  to  weather  the 
current  storm,  -jt  to  change  the  climate 
for  generations  to  come.  At  long  last  this 
bill  will  organize  and  coordinate  the  re- 
search efforts  of  the  greatest  technologi- 
cal nation  in  the  worl''  for  a  .scientific 
attack  on  the  surmountable  problems  of 
our  age 

If  we  could  put  a  man  on  the  moon  in  a 
decade  of  accomplishment,  we  can  make 
the  planet  on  which  we  live  a  mobile 
and  productive  one. 

I  shall  not  repeat  what  others  have  al- 
ready said  about  this  legislation,  its 
background:  administrative  organization 
and  missions,  the  functions  transferred 
to  ERDA.  ERDAs  authority,  and  so 
forth. 

I  just  want  to  add  a  few  more  com- 
ments about  the  longstandine  need  for 
legislation  of  this  kind  It  is  not  a  perfect 
reorganization  of  the  agencies  and  fimc- 
Uons  involved,  but  it  is  an  independent 
agency  Any  imperfections  hereafter  dis- 
covered can  in  due  time  be  corrected, 
but  the  dire  need  for  such  legislation  has 
existed  for  some  vears 

An  organizational  base  for  a  well  man- 
aged, centrally  directed  attack  on  energy 
problems  is  provided  In  this  bill  This 
Nation  Just  must  become  self-sufficient 
m  clean  energy  for  the  decades  that  are 
ahead  of  us  And  all  necessary  steps  must 
be  taken  toward  that  end. 

The  present  energy  crisis  demands 
concerted  and  coordinated  action  on 
many  fronts  This  leglslaUbn  Is  not  in- 
tended as  a  substitute  or  Alternative  to 
legislaUon  in  specific  fields,  such  as 
nuclear  site  selections,  us^  of  petroleum 
reserves,  construction  w  deepwater 
ports,  or  emergency  conservation.  It  is 
basically  a  reorganization  measure  di- 
rected towsu-d  the  research  and  develop- 
ment part  of  our  total  national  effort  to 
overcome  existing  and  long-term  energ>- 
shortages. 

The  House  Government  Operations 
Committee  on  which  I  .im  honored  to 
serve  pointed  out  In  its  extremely  Infor- 
mative Report  No  93-707.  the  scope  of 
possible  energy  sources  and  utilization 
technoloifv  which  this  new  organizational 
structure — ERDA— may  explore  will  be 
virtually  limitless.  It  will  Include,  though 


not  be  limited  to,  solar,  tidal,  wind,  hy- 
drogen, geothermal — using  natural 
steam,  hot  dry  rock,  water  injection  and 
other  techniques — and  nuclear  fusion. 
Many  new  directions  can  be  taken.  The 
vigorous  pursuit  of  all  promising  energy 
sources  and  technologies  will  and  must  be 
a  major  mission  of  ERDA. 

Achievement  of  national  sell-suffl- 
ciency  in  energy  at  the  earhest  practic- 
able date  is  a  must — if  we  are  to  be  pre- 
pared in  the  future  for  such  frightening 
actions  as  the  Arab  oU  embargo,  and 
energy  shortages  in  other  parts  of  the 
world. 

Attainment  of  an  Initial  plateau  of  en- 
ergy independence  will  not  be  the  full 
answer  to  our  energy  problems  Conse- 
quently our  committee  has  made  an  ef- 
fort in  this  bill  to  make  ERDAs  essential 
long-range  responsibility  the  determined 
pursuit  of  the  virtually  inexhaustible 
supply  of  energy  which  can  be  widely 
utilized  for  the  common  good  without  a 
harmful  environmental  impact. 

However,  the  passage  of  this  legisla- 
tion and  the  subsequent  adoption  of  the 
organizational  setup  envisioned  in  it  will 
not  per  se  improve  our  energy  sources. 
That  accomplishment  will  take  a  lot  of 
human  energy  and  human  dedication 
and  use  a  lot  of  money  to  do  the  job  that 
needs  to  be  done. 

Personally,  I  feel  that  we  have  a  great 
energy  potential  in  our  possession  of 
about  one-half  of  the  worlds  supply  of 
coal — our  most  abundant  fossil  fuel  re- 
serve. We  already  know  it  can  be  con- 
verted into  gaseous,  liquid,  and  other  en- 
vironmentally acceptable  forms. 

In  our  search  for  the  pot  of  gold  In 
energy  resources  I  hope  we  will  pursue 
with  full  speed  ahead  what  we  alreadj- 
know  about  one  of  Gods  great  crea- 
tions— the  Sun  above  us.  Considerable 
technologj-  Is  already  available  In  solar 
energy  uUUzatlon  for  heating  purposes. 
In  fact,  self-sufficiency  compatible 
with  a  clean  environment  is  visible  on 
the  horizon,  if  we  have  the  necessary  will 
and  determination  to  attain  it.  In  any 
event,  let  us  get  on  with  the  job. 

Mr  RONCAUO  of  Wyoming  Mr. 
Chairman,  I  thank  the  gentleman  from 
North  Carolina. 

Mr.  Chairman,  I  have  one  question. 
I  have  noticed,  and  perhaps  we  can 
touch  on  this  in  the  debate,  that  the  or- 
ganizational chart  ends,  or  begins,  with 
the  Administrator  on  the  top  Last  week 
in  our  Interior  hearings  we  were  told 
that  there  would  be  at  the  top  of  this  Mr. 
Simon,  who  is  making  a  tremendous  con- 
tribution to  solving  our  problems,  and 
that  there  would  be  above  the  Adminis- 
trator the  Director,  reporting  directly  to 
the  President. 

So,  as  I  say.  I  hope  that  before  the 
debate  is  terminated  today  we  will  know 
precisely  where  the  responsibility  rests 
between  the  President  of  the  United 
States  and  ERDA 

Mr  HORTON  Mr  Chairman.  wlU 
the  gentleman  yield  ? 

Mr  RONCALIO  of  Wyoming.  I  yield 
to  the  gentleman  from  New  York 

Mr  HORTON  Mr  Chairman,  this  Is 
an  independent  agpncy.  and  It  will  not 
go  through  the  Federal  Energy  Admin- 
istrator. It  is  a  new  Independent  agency. 


December  19,  1973 


CONGRESSIONAL  RECORD— HOUSE 


42579 


and  as  such  will  report  directly  to  the 
President. 

Mr.  RONCALIO  of  Wyoming.  I  am 
grateful  to  the  gentleman  from  New 
York  (Mr.  Hohtoni  for  making  that 
point  clear  here   and   now. 

Mr.  HOLIFIELD.  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  RONCALIO  of  Wyoming.  I  yield  to 
the  gentleman  from  California. 

Mr.  HOLIFIELD.  Mr.  Chairman,  may 
I  say  that  I  concur  in  that  statement. 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman,  I  am  happy  to  have  that  con- 
currence. 

Mr  HOLIFIELD.  Mr.  Chairman,  if  the 
gentleman  will  yield  still  further,  I  would 
like  to  thank  the  distinguished  gentle- 
man from  Wyoming  for  his  kind  re- 
marks, and  the  contributions  that  the 
gentleman  has  made  to  the  work  of  the 
committee  on  behalf  of  this  subject 

Mr.  RONCALIO  of  Wyoming.  I  appre- 
ciate that. 

Let  me  in  conclusion  quote  from  vari- 
ous editorials  around  the  country  in  the 
last  several  months : 

Expansion  of  fossU  fuel  supplies,  and  more 
efficient  use  of  them,  would  get  the  second 
highest  priority  In  dollars  A  good  case  can 
be  mad^for  this  Insofar  as  It  hastens  safer, 
environmentally  accepUble  access  to  the  na- 
tion's enormous  coiU  reserves. 

Mr.  Chairman,  I  come  from  a  State 
that  will  lead  all  others  In  the  Nation  In 
the  contribution  of  millions  of  tons  per 
year  of  readily  mlnable  strip  coal  of  low- 
sulphur  content,  with  30  times  more  such 
coal  In  deep  veins  than  we  have  at  the 
surface — all  in  one  State  alone. 

I  see  the  gentleman  from  West  Vir- 
ginia (Mr.  Hechlch)  scowling  at  me. 
Yes.  strip  mining  is  Irrevocable  in  Wyo- 
ming, and  good  reclamation  laws  now 
become  our  resf>onslbllity. 

Another  editorial: 

The  most  promising  long-range  soiux«s. 
such  as  fusion,  solar  and  perhaps  geothermal 
energy,  have  no  Inherent  constituency  or 
basis  of  support  of  their  own  As  the  govern- 
ment finally  puts  together  a  national  energy 
policy,  the  lack  of  which  largely  has  Induced 
the  current  crisis,  these  relatively  safe  and 
permanent  energy  sources  deserve  the  gov- 
ernment's own  primary  priority. 

Solar  and  geothermal  energy  will  need 
crash  development.  I  submit  again  that 
a  very  substantial  amount — 40  percent  or 
so  of  all  of  the  electricity  in  San  Fran- 
cisco is  from  geothermal  energy. 

In  conclusion,  let  me  again  hope  that 
our  appropriations  colleagues  will  not 
waste  money  when  it  comes  to  continued 
scientific  boondogglng  as  in  the  gas  stim- 
ulation program  as  distinguished  from 
what  Is  a  vital  contribution. 

I  cite  to  my  colleagues  a  book  called 
"The  Energ>-  Crisis'  just  out.  by  Law- 
rence Rocks  and  Richard  P.  Runyon  In 
a  chapter  devoted  to  "Project  Gas- 
Buggy,  "  stimulation  of  gas  fields  for  the 
next  10  years,  as  under  the  program  of 
Rullson  and  Rio  Blanco,  would  require  19 
atomic  energy  explosions  every  day  of 
our  lives. 

It  Is  a  woefully  Inadequate  return  for  the 
waste  of  technical  manpower  and  uranium 
resources. 

To  go  on  with  the  experiment  of  nu- 
clear stimulation,  we  do  nothing  in  mak- 


ing a  contribution  to  solving  the  energy 
crisis.  Even  if  every  cubic  foot  of  natural 
gas  we  are  going  after  were  not  con- 
taminated and  could  be  recovered  and 
could  be  used,  we  still  have  made  vir- 
tually no  contribution  to  solving  the  en- 
ergy crisis. 

I  hope  that  each  program  is  funded  on 
its  merits,  accelerated  when  it  succeeds 
and  terminated  when  it  falls  after  a 
reasonable  amount  of  effort. 

Nuclear  stimulation,  of  tight  gas  fields 
has  failed  alter  a  reasonable  amount  of 
effort,  it  should  be  terminated  forthwith. 

Mr.  HORTON.  Mr.  Chairman,  I  yield 
such  time  as  he  may  consume  to  the  gen- 
tleman from  New  York  (Mr.  Robison)  . 

Mr.  ROBISON  of  New  York.  Mr.  Chair- 
man, I  will  support  HR.  11510,  because 
it  promises  to  effectively  channel  that 
one  bountiful  national  resource,  which 
remains  available  to  us  Americans  in  this 
lime  of  growing  scarcity.  Through  the 
Energy  Reorganization  Act  of  1973,  this 
country  will  have  the  organizational  and 
the  managerial  base  required  for  tapping 
that  still  expansive  reservoir  of  techno- 
logical expertise  we  have  in  the  United 
States  and  devoting  It  to  the  goal  of  find- 
ing alternative  forms  of  energy  supply, 
thus  balancing  our  too  long-held  de- 
pendence on  petroleum  fuels. 

By  concentrating  these  talents  on  well- 
defined  needs,  we  will  have  come  part  of 
the  way  toward  setting  out  that  national 
energy  policy  and  that  complementing 
national  fuels  policy  that  this  country,  in 
point  of  sad  fact,  has  lacked  for  so  long. 
It  has  been  my  self-appointed  mission, 
throughout  years  of  Appropriations  sub- 
committee hearings  to  ask  the  Depart- 
ment of  Interior,  and  the  Federal  Power 
Commission,  and  the  Atomic  Energy 
Commission,  and  now  defunct  Office  of 
Emergency  Preparedness — smd,  some- 
times, to  demand  of  them — some  pre- 
liminary sketch  of  any  developing  na- 
tional energy  policy. 

The  answers  were  never  very  satisfac- 
tory to  my  mind.  but.  then  again,  I  must 
also  number  myself  among  those  who 
will  fit  Will  Rogers  description  of  com- 
plalners  about  the  weather.  I  believe  it 
was  he  who  said : 

Everyone  talks  about  It,  but  nobody  does 
anything  alx>ut  It. 

In  any  number  of  ways  I  have  re- 
centlj-  asked:  "How  in  the  world  did  we 
get  into  this  mess?"  and  even.  "Who  do 
we  blame?  "  As  to  the  blame,  the  Lord 
knows  that  there  is  more  than  enough  to 
go  around — all  the  way  around,  in  fact, 
if  one  starts  pointing  fingers  of  blame  at 
the  oil  companies,  for  Instance,  or  at  the 
electric  utilities,  who  then,  in  their  turn, 
point  at  those  individuals  and  groups 
who,  for  lack  of  a  better  pejorative,  are 
loosely  tagged  as  "environmentalists." 
And  so  on  until  the  accusatory-  fingers 
eventually  find  enough  scapegoats  to 
come  around  full  circle  when,  finally,  one 
of  those  fingers  is  tapping  on  the  chest 
of  the  person  who  first  did  the  pointing. 

Besides  the  comedy  which  comes  with 
the  hindsight  of  such  an  exercise,  there 
is  something  pertinent  to  be  gleaned;  for 
It  Is  probably  true  that  in  our  respective 
fashions  each  and  every  one  of  us  Is,  in 
some  way,    "to  blame"  for  the  energy 


crisis.  Therein  also  lies  the  soluUon,  since 
all  of  us  can  participate  in  Improving 
the  situation. 

TY\c  consumers  of  energy  have  already 
been  asked  to  help  and,  in  numbers  that 
a  cyme  wouJci  never  have  predicleci  they 
have  responded  by  reducing  their  use  of 
heat  and  speed  The  President  gave  us 
two  early  and  imporiaju  energy  mes- 
sages which  set  the  lone  and  design  for 
the  legislative  action  we  will  undertake 
during  the  commg  days;  and.  now.  Con- 
gress must  contribute  its  further  neces- 
sary participation  in  the  solution  by  en- 
acting mid-  and  long-range  research  and 
development  energy  goals 

We  are  doing  nothing  less  with  this 
bill.  By  combining  now-scattered  re- 
search and  development  programs  into  a 
new  Energy  Research  and  Development 
Administration,  we  are  settling  in  for  the 
long  haul.  Some  might  see  the  Energj- 
Reorganization  Act  of  1973  as  the  easy 
way  out,  since  there  may  exist  the  impU- 
cation  that,  simply  by  creating  the  or- 
ganization, we  have  just  about  solved  the 
problem.  However,  the  message  In  this 
bill  is  quite  to  the  contrary-.  What  it  does 
say  Is  that  we  can  no  longer  afford  the 
disintegrated,  overlapping  and  duplicat- 
ing research  and  development  programs 
which  have  sprung  up  in  so  many  Fed- 
eral "agehcles.  Instead,  we  must  fit  the 
means  to  the  times  and  build  upon  what 
is  unquestionably  a  superbly  managed 
and  organized  research  agency,  the 
Atomic  Energy-  Commission. 

Part  of  our  good  fortune,  which  springs 
from  the  vast  technical  expertise  in  this 
country,  is  that  it  is  not  necessary  to 
build  a  new  agency  from  the  ground  up. 
If  we  are  successful  in  our  legislative 
surgery,  we  will  graft  a  few  new  pro- 
grams to  a  very  vital  research  organiza- 
tion. With  careful  oversight,  and  the  ju- 
dicious appropriation  of  funds,  we  stand 
a  very  good  chance  of  contributing  to  the 
momentum  already  achieved  by  the 
Atomic  Eiiergy  Commission  and,  thereby, 
stimulating  the  most  capable  and  most 
producUve  energy  research  program  in 
the  world. 

While  there  is  every  chance  that  the 
new  Energy  Research  and  Development 
Administration  can  solve  the  fuel  sup- 
ply equation  for  future  decades,  there  is 
also  every  probabUity  that  there  will  be 
disappointments  and  setbacks  As  a  case 
in  point,  I  have  considerable  confidence 
in  the  prospects  for  a  successful  demon- 
stration of  the  scientific  feasibility  of 
nuclear  fusion,  but  I  will  not  be  surprised 
to  leam  that  optimistic  predictions  of 
such  achievement  are  not  met.  or  that 
once  scientific  feasibility  is  proven, 
nuclear  fusion  may  have  to  take  another 
long  step  before  it  becomes  economically 
practical. 

There  are  mind-boggling  imponder- 
ables, as  well,  over  the  future  of  solar 
power,  such  that  no  one  ought  to  ven- 
ture now  that  energy  from  the  Sun  will 
pro\ide  the  answer  to  all  our  energy 
needs  It  can  help,  certainly,  and  should 
be  used  because  of  its  abimdjmce.  Yet, 
even  in  the  fact  of  what  we  know  will  be 
a  lengthy  and  possibly  frustrating  search 
for  energy  self-suflRclency,  we  can  take 
on  a  tone  of  certitude  In  stating  that  the 
answers  will  eventually  be  found  and.  In 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1978 


alJ  probabUity.  that  the  answers  wiU  be 
found  by  the  research  organizaUon  pro- 
posed by  H-R   11510 

Saying  that,  we  have  said  a  lot  about 
the  sometimes  nettlesome.  sometimes 
maddening  diplomatic  fallout  of  the  en- 
ergy crisis  It  is  true  that  the  new  tech- 
nology waits  to  be  developed,  but  there 
has  been  sufDcient  progress  to  know  that 
in  one  form  or  another  it  will  be  found 
When  that  day  comes.  I  do  not  expect 
this  country  to  hoard  resources  which 
are  vital  to  the  welfare  of  so  many  other 
energy-scarce  naUons.  Nor  do  I  expect 
that  the  day  will  ever  come  when  the 
Unlv?d  SUtes  uses  the  technology  of  en- 
ergy supply  as  a  "birch-rod"  for  pun- 
ishing those  nations  which  do  not  meet 
the  letter  of  our  international  policy  ob- 
jectives. The  United  States  will  of 
course,  share  the  benefits  of  its  technol- 
ogy, just  as  It  has  done  for  so  manv 
years;  so  that  no  nation  must  live  with 
the  threat  that  its  citizens  will  be  un- 
protected from  winter,  or  that  its  in- 
dustry will  be  deprived  of  the  fuels  which 
feed  that  nation  s  economy. 

The  energy  crisis  we  are  experiencing 
IS  a  serious  one— far  ranging  in  its  Im- 
pact, and  worldwide  in  its  proportions. 
It  is  a  dismaying  experience,  yet  it  will 
not  be  a  defeating  one  For  it  is  neither 
our— nor  the  worlds— first  energy  crisis 
That  probably  occurred  about  a  century 
or  so  ago  when  we  and  the  worid  ran 
out  of  whales  which  then  provided  the 
oil  "for  the  lamps  of  China"  and  all  other 
people.  That  was  a  dismaying  experience 
too.  but  the  human  element  intruded 
then,  as  it  always  has  in  the  course  of 
history;  technology  proved  to  be  no  more 
frozen  then  than  it  is  now.  and  rather 
than  attempting  to  develop  "breeding 
farms"  for  whales,  man  went  on  to  dis- 
cover petroleum  and  the  uses  he  could 
make  of  its  energy-producing  products 
and.  shortly  as  well.  Edison  discovered 
electricity— although  of  course  It  was 
there  all  along.  So.  Mr.  Chairman  shall 
it  be.  again,  as  we  face  up  to  this  most 
recent  crisis. 

As  the  noted  historian  Barbara  Tuch- 
man.  has  put  it: 

The  doom  factor  sooner  or  later  generates 
a  coping  mechanism 

To  those  doomsayers  who  view  our 
current  problem  in  the  gloomiest  of 
moods,  this  bill  says  our  society  will 
again  put  an  increasing  premium  on  hu- 
man mgenuity  and  innovation  so  as  to 
provide  an  adequacy  of  energy  supply  in 
such  ways  as  to  contribute  to  the  devel- 
oping concept  of  a  better  life  for  all 
Americans,  and  the  people  of  one  world 
as  well 

Mr.  Chairman  I  strongly  urge  that  my 
colleagues  vote  favorably  for  this  bill 

Mr  HORTON  Mr  Chairman.  I  yield 
3  minutes  to  the  gentleman  from  Ohio 
'Mr.  Rrctn.A>,  and  I  take  rhis  opportu- 
nity to  commend  the  gentleman  for  his 
rospon?)Or5hJp  cf  this  bill. 

Mr.  REGULA  Mr.  Chairman.  I  am  a 
strong  supporter  as  one  of  the  sponsors 
of  the  Energ>-  ReorganizaUon  Act  which 
we  are  debating  We  need  legiiiiative  di- 
rection for  long-teim  research  and  de- 
velopment and  this  bill  provides  it,  with 


a  central  organization,  with  a  nucleus  of 
trained  scientists  and  laboratories,  and 
a  congressional  anchor,  the  authoriza- 
tion-appropriation process. 

While  I  do  not  intend  to  offer  an 
amendment  to  this  bill.  It  seems  to  me 
that  the  legislation  overlooks  the  avail- 
ability of  a  reservoir  of  talent  and  energy 

As  you  know,  over  the  last  2  or  3  years. 
the  NASA  budget  has  been  cut  causing 
the  loss  of  equipment  and  the  release  of 
numerous  well  trained  and  capable  staff 
I  think  that  these  f  acihties  and  this  staff 
can  be  well  used  by  the  National  Energj- 
Research  and  Development  Administra- 
tion 

Accordingly.  I  have  written  to  the  Di- 
rector of  the  OflQce  of  Management  and 
Budget.  Roy  Ash.  asking  whether  it  would 
be  possible  and  desirable  to  transfer  some 
of  the  NASA  personnel  and  laboratories 
to  the  Energy  Research  and  Development 
Administration  Mr.  Ash  has  responded 
to  my  letter  and  I  quote  from  his  letter: 

I  wlah  to  thank  you  for  this  excellent  sug- 
gestion, particularly  because  I  have  been  con- 
cerned for  some  time  about  the  poaalble  loes 
from  Government  service  of  these  valuable 
skUls  and  resources,  a  loaaithat  seemed  un- 
avoidable because  of  N*8A  s  Post-Apollo 
scaling  down 

Let  us  assure  you  that  immediately  upon 
the  establUshment  of  ERDA.  OMB  will  urge 
the  ERDA  Administrator  to  undertaJte  on  a 
priority  basis  and  In  consultation  with  the 
NASA  Administrator  a  thorough  review  of 
all  NASA  personnel  and  faculties  that  might 
otherwise  be  released  or  cloeed  down  At  the 
same  time.  I  do  not  wish  to  raise  false  hopes 
for  the  talented  people  Involved  As  you  can 
appreciate,  such  a  review  should  be  made  In 
the  context  of  meeting  ERDA's  scientific  and 
technical  requlremenu  and  decisions  relat- 
ing to  any  transfers  must  be  made  by  ERDA 
and  worked  out  with  NASA  My  personal  view, 
however.  Is  that  the  review  wUl  prove  fruitful 
and  worthwhUe. 

Mr.  Chairman.  I  include  the  full  ie\%oi 
my  letter  and  the  reply  of  the  Honorable 
Roy  Ash 

HotJSB  OF  Representatives, 
Washington.  DC.  December  to,  1973. 
Hon.  Rot  L.  Ash, 

Director,  Office  of  Management  and  Budget. 
Executive  OVce  Building,  Washington 
DC 

Dear  Mr  Ash  As  you  know,  over  the  last 
two  or  three  years  the  NASA  budget  has  been 
cut.  forcing  the  closing  of  well-equipped 
laboratories  and  the  release  of  numerous 
well-trained  and  very  capable  staff  These 
personnel  and  facilities  constitute  a  great 
national  resource  which  should  not  be  lost 
If  at  aU  possible. 

As  I  am  sure  you  are  aware,  my  Committee 
on  Government  Operations  recently  reported 
a  bill  to  create  an  Energy  Research  and  De- 
velopment Administration  This  new  organ- 
ization win  need  personnel  and  faculties 
very  similar   to   those  phased  out  of  NASA 

I  would  like  to  know  if  it  would  be  pos- 
sible and  desirable  to  transfer  some  of  these 
NASA  personnel  and  laboratories  to  the 
Energy  Research  and  Development  Admin- 
istration I  would  appreciate  it  very  much 
If  you  could  let  me  know  as  soon  as  possible 
whether  or  not  you  would  b«  willing  to  re- 
view the  possibility  of  such  a  transfer  so 
that  I  could  discuss  this  posslbUlty  during 
the  floor  debate  on  the  ERDA  bUl.  which  I 
expect  will  come  up  this  Wednesday  Decem- 
ber 12 


Thank  you  for  your  Intsrast  and  attention 
to  this  matter. 

Sincerely  yours. 

Ralph  8.  Rxctruk. 
MemX>er  of  Congrau. 

EiEctrrrvE  Omcx  or  the  Prksidcnt. 
OrriCE  OP  Management  and  Budget. 
Washington,  DC.  December  12.  1972 
Hon  Ralph  S  Rscula, 
U  S  House  of  Representatives. 
Washinffton,  DC 

Dear  Mr  Rxcula  :  This  Is  In  response  to 
your  letter  of  December  10,  1873.  In  which 
you  noted  that  some  of  NASAs  faculties 
were  being  closed  and  that  well-trained  and 
very  capable  staff  were  being  released  You 
asked  whether.  In  establishing  the  proposed 
Energy  Research  and  Development  Adminis- 
tration It  would  be  possible  or  desirable  to 
transfer  some  of  these  NASA  personnel  and 
facilities  to  ERDA  In  order  to  avoid  losing 
these  skills  and  resources. 

I  wish  to  thank  you  for  this  excellent  sug- 
gestion, particularly  because  I  have  been  con- 
cerned for  some  time  about  the  possible  loss 
from  government  service  of  these  valuable 
skills  and  resources,  a  loes  that  seemed  un- 
avoidable because  of  NASA's  post-Apollo 
scaling  down. 

Let  us  assure  you  that  Immediately  upon 
the  establishment  of  ERDA.  OMB  will  urge 
the  ERDA  Administrator  to  undertake  on  a 
priority  basis  and  In  consultation  with  the 
NASA  Administrator  a  thorough  review  of  all 
NASA  personnel  and  faclUtles  that  might 
otherwise  be  released  or  closed  down  At  the 
same  time.  I  do  not  wish  to  raise  false  hopes 
for  the  talented  people  Involved.  As  you  can 
appreciate,  such  a  review  should  be  made  In 
the  context  of  meeting  ERDA's  scientific  and 
technical  requirements  and  decisions  relating 
to  any  transfers  must  be  made  by  ERDA  and 
worked  out  with  NASA.  My  personal  view. 
however.  Is  that  the  review  will  prove  fruit- 
ful and  worthwhile 

Again,  thank  you  for  this  suggestion  and 
let  me  express  my  earnest  hope  that  the 
House  will  act  favorably  and  without  delay 
on  HR  11510  so  that  we  may  get  on  with 
the  urgent  business  of  advancing  the  state  of 
energ>-  R&D  technology  to  meet  the  Nation  s 
energy  needs. 

Sincerely, 

Roy  L.  Ash. 

Director. 

Mr.  HORTON.  Mr.  Chairman.  I  yield 
5  minutes  to  the  gentleman  from  Texas 
•  Mr.  Wright). 

Mr.  WRIGHT  Mr.  Chairman.  I  rise  in 
support  of  this  legislation. 

I  should  bke  at  the  outset  to  thank  the 
gentleman  from  New  York,  the  ranking 
minority  member.  Mr.  Horton.  for  hav- 
ing yielded  this  time  from  his  allotment, 
and  to  congratulate  both  him  and  the 
distinguLshed  chairman  of  our  commit- 
tee, the  gentleman  from  California  iMr 
HoLiriELDi  for  having  brought  before 
the  House  at  this  particular  moment  an 
imusually  timely  piece  of  legislation. 

This  legislation  can  be  extremely  use- 
ful in  that  it  draws  together  from  scat- 
tered locations  throughout  the  Federal 
executive  establishment  for  consolida- 
tion into  one  centrsil  administrative  ve- 
hicle all  those  activities  relating  to  re- 
search and  development  in  a  variety  of 
endeavors  aimed  at  replacing  our  cur- 
rent profound  reliance  upon  our  Na- 
tion s  fimte  supplies  of  petroleum. 

This  bill,  of  course,  does  not  create  or 
expand  any  such  effort  It  merely  creates 
the  executive  machinery  to  administer 
such  programs  as  we  have  heretofore  or- 


December  19,  1973 


CONGRESSION  A I    R  E(  OR  D  —  HOUSE 


42581 


dalned  and  must  in  the  very  near  future 
greatly  enlarge. 

The  merit  of  this  legislation,  I  believe. 
Is  that  It  proceeds  from  the  recognition 
that  the  energy  crisis  is  not  a  short-term 
problem,  but  rather  a  long-term  problem 
which  win  grow  Inexorably  worse,  more 
economically  binding  and  more  socially 
restricting,  until  we  do  find  some  alter- 
nate sources  to  replace  our  reliance  upon 
the  petroleum  resources  which  at  our 
present  rapidly  accelerating  rate  of  con- 
sumption will  be  exhausted  within  14 
or  15  years 

Mr.  VANIK  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  WRIGHT.  I  yield  to  the  gentle- 
man from  Ohio. 

Mr.  VANIK.  Mr.  Chairman,  I  com- 
mend the  gentleman  from  Texas  for  his 
very  fine  and  thoughtful  addiUonal 
views,  which  I  commend  to  all  our  col- 
leagues, which  are  included  in  the  com- 
mittee's report. 

I  would  gather  from  the  gentleman's 
statement  in  the  report  that  he  would 
disagree  with  the  President's  statement 
that  the  energy  crisis  may  be  over  in  a 
year's  time,  and  feels  that  our  problem 
is  indeed  very  serious  and  far-reaching 
and  will  not  be  solved  until  we  bring  in 
some  new  reserves  and  some  new  energ>- 
sources  to  compensate  for  our  lack  of 
petroleum 

Mr.  WRIGHT.  Most  emphatically  I 
agree  with  the  gentleman  from  Ohio. 
This  is  a  long-run  problem  that  wiU  not 
be  solved  by  simply  curtailing  wasteful 
uses  of  energy,  although  that  is  a  neces- 
sary part  of  its  immediate  alleviation 
The  long-range  solution  must  be  founded 
upon  new  discoveries  and  developments, 
and  these,  if  they  are  to  be  efficacious! 
must  be  funded  adequately.  We  can  only 
signal  our  intention  today  to  make  an 
earnest  beginning  toward  that  solution 
by  enactment  of  this  legislation.  This 
will  not  be  the  solution  itself.  We  are 
merely  creating  a  means  by  which  the 
solutions  can  be  worked  out. 

Mr.  VANIK.  If  the  gentleman  will  yield 
further,  he  referred  to  the  energy  trust 
fund,  the  energy  research  and  develop- 
ment trust  fund.  I  share  the  gentleman's 
Interest  in  this  approach.  Several  of  us 
have  introduced  legislation  which  calls 
for  $6  billion  a  year  and  for  developing 
a  reservoir  of  funds  for  this  purpose.  The 
President  is  advocating  spending  $10  bil- 
lion over  the  next  5  years,  but  :  lost  of 
this  seems  to  be  in  areas  we  are  already 
engaged  in  and  does  not  encompass 
stretching  very  far  into  the  real  areas  of 
research  and  development  Does  the  gen- 
tleman really  feel  we  can  solve  this  Na- 
tion's energy  crisis  with  $10  billion  spent 
over  the  next  5  years? 

Mr.  WRIGHT  In  response  to  the  gen- 
tleman. I  would  have  to  say  there  is  no 
way  in  which  we  could  expect  to  make 
truly  substantial  or  adequate  progress 
with  only  $10  billion  over  the  next  5 
years  That  would  be  only  $2  billion  a 
year.  We  need  at  least  $2  bilUon  alone 
to  pursue  the  types  of  inquiry  that  are 
anticipated  in  this  ver>'  leglslaUon,  such 
things  as  coal  research,  thermal  research, 
solar  research,  research  Into  the  possible 
use  of  fusion;  at  least  $2  billion  annually 
for  a  much  longer  period  than  5  years 


must  be  devoted  expressly  to  those  things 
if  we  are  to  reach  our  goal  of  seLf-suffl- 
ciency  before  the  oil  plays  out. 

It  seems  to  me  we  would  be  guilty  of 
the  biggest  possible  mistake  if  we  think 
too  small,  if  we  are  too  myopic,  too  timid 
in  our  approswh  to  the  problem,  because 
it  is  an  enormous  problem  that  has  been 
coming  upon  us  for  a  long  time.  For  a 
concerted  assault  uix)n  the  various  facets 
of  this  multipronged  i)roblem.  we  shall 
predictably  need  at  leat,!  $6  billion  a  year. 

I  enthusiastically  embrace  the  idea  ex- 
pressed by  the  gentleman  from  Ohio  that 
the  only  way  we  can  a.s,sure  ourselves  of 
the  long-range  solution  to  the  problem. 
ultimate  domestic  self-sufficiency,  is  by  a 
dedicated  trust  fund  with  sufficient  as- 
sured income  and  the  concomitant  com- 
mitment over  a  long  period  of  time  to 
solve  the  problem  through  not  only  re- 
search, but  also  a  variety  of  other  means, 
such  as  converting  Americans  from  our 
almost  singular  reliance  upon  the  private 
automobile  to  such  viable  alternatives  as 
mass  transportation  in  cities  where  this 
can  be  done. 

Mr.  VANIK.  Mr.  Chairman,  if  the  gen- 
tleman will  yield  further,  in  my  earlier 
colloquy  with  the  gentleman 

The  CHAIRMAN.  The  time  of  the  gen- 
tleman has  expired. 

The  gentleman  from  New  York  has  32 
minutes  remaining. 

The  gentleman  from  California  has  12 
minutes  remaining. 

Mr.  HORTON.  Mr.  Chairman.  I  j-ield 
the  gentleman  an  additional  3  minutes. 

Mr.  WRIGHT.  I  thank  the  gentleman 
for  this  consideration. 

Mr.  VANIK.  Mr.  Chairman.  I  would 
like  to  ask  the  gentleman  a  further  ques- 
tion, if  he  will  yield. 

Mr.  WRIGHT.  I  yield  to  the  gen 
man. 

Mr.  VANIK.  One  of  the  questions  I 
asked  the  distinguished  gentleman  from 
California  a  minute  ago  was  whether 
this  program  is  contemplated  to  fund 
this  efifort  through  the  Treasury,  through 
the  general  revenue,  or  whether  it  is  con-  • 
templated  to  fund  it  through  a  trust  pro- 
gram? He  indicated  it  could  be  funded 
either  way.  but  he  suggested  it  ought  to 
come  from  the  general  revenue.  I  trust  I 
am  correctly  stating  what  I  believe  to  be 
the  import  of  his  response. 

Mr.  HOLIFIELD.  Mr.  Chairman,  if  the 
gentleman  will  yield,  my  statement  was 
that  this  bill  has  nothing  to  do  with  au- 
thorization of  funding  of  future  pro- 
grams. That  has  to  be  taken  care  of  by 
the  committees  of  jurisdiction. 

I  have  no  prejudice  against  trust  fund- 
in?  or  against  pener.^l  revenue,  but  this 
is  a  reorganiration  bill  We  have  no  au- 
thority to  decree  In  this  bill  that  we 
shall  do  these  programs  by  trust  funding 
or  by  general  funds.  That  is  in  the  power 
of  other  committees. 

Mr.  VANIK.  Mr.  Chairman.  I  would 
like  to  ask  the  gentleman  from  Texas  if 
we  then  would  be  subject  to  the  restric- 
tions of  Impoundment,  which  could  be 
exercised  with  respect  to  funds  out  of 
the  General  Treasury?  Does  the  gentle- 
man feel  thit  might  Imperil  these  en- 
ergy programs  or  affect  the  course  of 
their  direction,  contrary  to  the  intention 


of  the  Congress  in  support  of  the  argu- 
ment for  the  trust  fund? 

Mr.  WRIGHT.  I  agree  with  the  point 
of  view  expressed  by  the  gentleman  from 
Ohio.  As  he  understands  and  as  the 
chairman  has  explained,  this  particular 
legislation  could  not  be  the  vehicle  for 
funding  these  programs.  It  does  not  at- 
temot  to  be.  and  for  us  to  attempt  so  to 
amend  it  would  be  contrary  to  the  ger- 
maneness rule. 

I  do  agree  emphatically  with  the  gen- 
tleman from  Ohio  that  we  owe  to  the 
American  Nation  a  firm  a&surajice  from 
the  Congress  that  we  are  entirely  serious 
about  the  long-range  implications  of 
this  problem  and  that  we  fully  intend  to 
commit  sufficient  resources  over  a  pro- 
tracted period  to  solve  the  problem. 

In  my  view,  the  best  way  to  do  this  is 
by  means  of  a  trust  fund,  as  the  gentle- 
man from  Ohio  has  suggested  and.  in 
fact,  has  embodied  In  a  bill  which  he  in- 
troduced. I  joined  with  him  in  that  bill 
and  expect  to  introduce  additional  leg- 
islation along  that  same  line. 

I  believe  this  energy  problem  is  too 
important  for  temporizing.  It  is  prob- 
ably the  single  most  significant  domestic 
problem  that  is  likely  to  face  the  Na- 
tion in  the  next  decade.  For  us  to  reb- 
entirely  upon  the  whims  and  vagaries  of 
the  process  of  annual  Presidential  rec- 
ommendations and  annual  congressional 
appropriations  is  not  properly  serving  the 
American  people.  And  those  are  my  basic 
arguments  for  supporting  a  trust  fund 
concept. 

Mr.  VANIK.  Mr.  Chairman,  it  is  ob- 
vious that  we  are  faced  with  a  massive 
problem — one  that  vrill  be  with  us  for 
some  time,  one  that  will  require  a  major 
National  commitment  to  overcome.  What 
Is  needed  today  is  the  t5'pe  of  commit - 
ntr  which  enabled  this  Nation  to  place 
astronauts  on  the  Moon  in  less  than  a 
decade.  What  is  needed  is  the  type  of 
concentrated  commitment  which  made 
the  Manhattan  project — the  develop- 
ment of  nuclear  energ>' — possible. 

Where  is  the  money  going  to  come 
from?  Nobody  at  this  stage  seems  to 
know.  A  Federal  commitment  of  this 
magnitude  will  certainly  place  a  tremen- 
dous burden  on  general  revenues.  If  there 
is  an  economic  slowdown  due  to  the 
energy  crunch,  tax  receipts  will  fall  off. 
and  fall  off  drastically.  At  the  same  time. 
the  demand  for  Federal  ftmds  will  go 
up — more  money  for  food  supplies,  for 
welfare,  for  emergency  emplo.vment 
would  be  required — where  will  the  new 
funds  for  energy  research  come  from? 
The  only  responsible  sdtemative  for 
the  regular  flow  of  necessary-  funds  is  the 
establishment  of  a  trust  fund  The  trust 
fund  approach  has  man,v  advantages.  It 
establishes  an  independent  source  of 
funding  for  a  vltallj-  needed  national 
project.  It  would  isolate  energv-  research 
from  the  pressures  of  budgetar>-  politics. 
It  would  provide  insursuice  against 
arbitrary  decisions  by  the  Executive  to 
withhold  funding. 

We  have  taken  this  step  before.  In  the 
past  when  our  national  goals  have  de- 
manded a  large  commitment  of  funds 
over  a  long  period  of  time,  we  have 
turned  to  the  idea  of  a  trust  fund  Social 
security  and   the  highway   trust    fund 


i2582 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


are  the  most  notable  examples.  Cnu  ef- 
fort In  energy-  research  and  development 
fits  closely  m  this  well-established 
pattern. 

A  small  tax  on  energy  consumption — 
gasoline,  natural  gas.  electricity,  and  pe- 
troleum products — would  rsiise  a  tremen- 
dous amount  of  revenue.  For  example,  a 
4-cents-per-gallon  tax  on  gasoline  could 
raise  $4  billion  In  additional  revenue.  In 
addition  to  the  small  tax  on  gasoline.  I 
would  propose  three  other  sources  of 
trust  fund  revenue.  In  each  case  I  believe 
that  a  tax  exemption  or  refund  should 
be  provided  to  the  person  who  uses  rela- 
tively little  energ> — the  small  home- 
owner and  retailer.  The  financing  of  the 
trust  fund  should  be  as  progressive  as 
possible  and  be  drawn  from  the  larger 
and  usually  more  InefQclent  energy  users. 
First,  a  tax  on  natural  gas  of  10  cents 
per  thousand  cubic  feet  would  raise  some 
$14  billion.  Second,  a  tax  on  electricity 
of  one-tenth-cent  per  kilowatt  could  be 
directed  to  the  trust  fund  and  would 
raise  some  $1  billion.  Finally,  a  tax  on 
the  various  tj-pes  of  fuel  oil  of  half  a 
penny  per  gallon  would  raise  as  much  as 
half  a  billion  dollars. 

A  total  trust  fund  of  about  $6  billion 
would  probably  be  adequate  certainly  at 
this  time.  The  money  would  be  used  not 
only  for  research  but  for  the  develop- 
ment, the  actual  bringing  Into  produc- 
tion or  use  of  new  energy  supplies. 
Among  the  types  of  energy  that  could  be 
developed  by  such  a  fund  are: 

Solar  energy  for  electricity  and  heat- 
ing and  cooling: 
Oil  Shale; 

Coal  gsisiflcatlon  and  liquefaction: 
Geothermal  energy: 
Fusion  research: 

Wind  power  and  the  utilization  of  tidal 
currents : 

Improved  transmission  of  electrical 
energy : 

Improved  generation  of  electricity — 
MHD: 
New  forms  of  conservation  devices; 
Alternatives   to   petroleum   as  a  fuel, 
such  as  hydrogen;  and. 

Utilization  of  ocean  thermal  gradients 
To  avoid  a  regressive  Impact,  I  would 
hope  that  the  tax  could  be  geared  to  the 
largest  and  most  mefflcient  users  of  en- 
ergy, tis  I  have  done  In  my  own  legis- 
lation. HR.  6194 

In  conclusion.  Mr.  Chairman.  I  just 
want  to  say  that  I  do  not  believe  that 
an  ordinary  reorganization  bill  will  be 
enough  The  bill  before  the  House  today 
lacks  a  means  of  financing — and  without 
regular,  substantial  financing,  our  efTorts 
to  solve  the  energy  crisis  cannot  succeed 
I  hope  that  in  the  very  near  future, 
the  Congress  can  provide  for  a  system  of 
trust  fund  financing  of  our  Nation's 
needed  energy  research 

Mr  HORTON  Mr  Chairman.  I  yield 
2  minutes  to  the  gentleman  from  West 
Virginia  'Mr  Hechler) 

Mr  HECHLER  of  West  Virginia,  Mr 
Chairman.  I  thank  the  gentleman  from 
New  York  for  yielding  me  this  time,  and 
I  congratulate  him.  the  chairman,  and 
the  committee  for  bringing  forth  this 
legislation.  However,  there  are  a  num- 
ber of  improvement*  in  the  structure. 


substance  and  philosophy  of  this  legis- 
lation which  deserve  considerable  re- 
medial work. 

Coal  is  at  last  coming  into  its  own 
In  various  measures  which  the  Nation  is 
now  talcing  which  should  have  been 
taken  long  ago.  As  a  result  of  poor  plan- 
ning. co€kl  research  was  starved  with 
peniues  while  nuclear  research  received 
all  the  Federal  emphasis  and  vast  pre- 
ponderance of  the  billions  of  dollars 
allocated. 

I  am  pleased  that  coal  is  getting  at 
least  some  attention  in  the  various  pieces 
of  legislation  which  the  Congress  Is  con- 
sidering. We  have  enough  coal  to  power 
our  society  for  hundreds  of  years.  It  Is 
essential  that  we  concentrate  the  ener- 
gies of  the  Nation  on  the  development  of 
these  coal  resources  and  reserves,  and 
hasten  the  perfection  of  the  technology 
to  utilize  these  vast  coal  deposits  without 
damaging  the  health  of  our  people  or  the 
soil  and  streams. 

Representing  the  largest  coal-pro- 
ducing State  in  the  Nation.  I  would  &Ad 
that  it  is  essential  with  thousands  of  ad- 
ditional miners  who  will  be  employed  to 
mine  this  coal,  that  we  place  the  highest 
priority  on  the  value  of  a  human  life. 
The  preamble  to  the  Federal  Coal  Mine 
Health  and  Safety  Act  of  1969  clearly 
states; 

Congress  declaree  th*t  the  flrst  priority 
aj»cl  concern  of  all  in  the  ccwU  mining  indus- 
try must  be  the  health  and  safety  of  Its  most 
precious  resource — the  miner 

In  our  rush  to  set  up  energy  agencies 
and  administrative  superstructures  to 
meet  the  "energy  crisis."  we  are  forget- 
ting £uid  overlooking  the  human  ele- 
ment— how  these  measures  will  affect 
the  coal  miner,  the  consumer,  and  the 
average  working  man  and  woman 
throughout  our  Nation. 

Mr  Chairman.  I  noted  in  the  com- 
mittee report  at  page  16  that  "some  of 
the  mining  technology  research  activi- 
ties '  will  remain  in  the  Bureau  of  Mines, 
while  the  OfBce  of  Coal  Research  and 
several  related  activities  are  being  trans- 
ferred to  ERDA  The  theory  expressed  in 
the  bill  and  report  is  that  this  mining 
technology-  research  is  necessary  to  sup- 
port mine  health  and  safety  in  the  same 
agency. 

I  would  simply  state  that  although 
the  Committee  on  Education  and  Labor 
has  primary  jurisdiction  over  coal  mine 
health  and  safety.  I  think  it  is  essential 
through  this  Congress  to  face  up  to  the 
fact  that  the  Bureau  of  Mines  and  its 
successor  in  the  field  of  mine  safety — 
the  Mining  Enforcement  and  Safety  Ad- 
ministration in  the  Department  of  the 
Interior— have  simply  failed  In  their 
mission  to  protect  the  health  and  safety 
of  the  average  coal  miner  in  this  Nation 

Mr.  Chairman.  I  have  introduced  legis- 
lation ever  since  1969  and  Senator  Har- 
Risow  WiixiAJis  has  in  the  Senate,  to 
transfer  jurisdiction  of  mine  health  and 
safety  out  of  the  Department  of  the  In- 
terior to  the  Department  of  LaUaor.  The 
past  and  present  enforcement  of  mine 
safety  is  In  the  hands  of  a  production- 
oriented  agency,  and  It  should  be  admin- 
istered by  an  employee-oriented  agency; 
namely,  the  Department  of  Labor.  Mr 


Chairman.  I  hope  some  consideration 
and  support  can  be  given  to  this  transfer, 
In  addition  to  transferring  the  remain- 
ing mining  technology  research  actlvliles 
from  the  Bureau  of  Mines  to  an  agency 
like  ERDA. 

Finally.  I  would  like  to  ask  the  gentle- 
man  from  California  a  question  which 
many  of  us  have  been  concerned  about; 
whether  or  not  the  central  core  staff  of 
the  Atomic  Energy-  Commission  is  going 
to  comprise  ERDA,  and  whether  this 
would  give  the  proper  emphasis  to  coal? 
Mr  HOLIFIELD.  Mr.  Chairman.  I  did 
not  get  the  flrst  part  of  the  gentleman's 
question. 

Mr.  HECHLER  of  West  Virginia.  Mr. 
Chairman,  many  of  the  Members  of  the 
House  are  deeply  concerned  by  the 
wholesale  transfer  of  many  administra- 
tive and  executive  personnel  from  the 
Atomic  Energy  Commission  to  ERDA. 
Will  this  result  In  an  overemphasis  of 
the  nuclear  side  of  ERDA's  activity?  I 
would  express  the  hope  and  ask  the  ques- 
tion whether  it  is  the  thought  of  the 
gentleman  from  CaJifomla  that  suffici- 
ent emphasis  will  be  placed  on  the  de- 
velopment of  fossil  fuels,  and  in  par- 
ticular coal,  in  the  administration  of 
ERDA?  We  must  move  forward  boldly 
and  aggressively  to  develop  the  full  po- 
tential of  coal.  We  must  not  submerge 
coal  in  an  agency  which  continues  to 
exert  a  nuclear  energy   bias. 

Mr.  HOLIFIELD.  Mr.  Chairman,  the 
gentleman  speaking  cannot  make  a  com- 
mitment on  any  kind  of  authorization 
or  appropriation.  That  has  to  go  Into  the 
committee  of  statutory  jurisdiction. 
However,  we  do  have  in  the  program  that 
has  been  submitted  to  the  President 
December  1,  by  Dr.  Dixy  Lee  Ray.  Chair- 
man of  the  AEC.  the  table  here  which 
shows  practically  an  equal  amount  of 
money  would  be  spent  by  private  and 
Federal  agencies  for  the  use  of  coal.  For 
instsince.  in  the  private  sector,  it  is  ex- 
pected that  $3  billion  will  be  furnished 
by  private  sources. 

The  CHAIRMAN  The  Ume  of  the  gen- 
tleman from  West  Virginia  has  expired. 
Mr.    HOLIFIELD     Mr     Chairman,    I 
yield  2  additional  minutes  to  the  gen- 
tleman from  West  Virginia  (Mr.  Hech- 

LCR>. 

The  Federal  recommendation  Is  $2,- 
175.000.000  If  we  put  those  together,  we 
have  the  practical  equivalent  of  the 
amount  that  Is  recommened  for  nuclear 
energy-  Now,  as  to  whether  those 
amounts  wlU  be  authorized  by  the  legis- 
lative committees  and  appropriated  by 
the  Appropriations  Committee,  this 
speaker  cannot  say. 

But  I  would  say  this  much;  that  I 
want  to  assure  the  gentleman  that  I  re- 
alize very  deeply  the  importance  of  coal, 
and  anything  I  can  do  at  any  time  will 
be  done 

As  far  back  as  1961,  I  was  coming  out 
for  coal.  In  fact,  I  put  $5  million  into 
the  Atomic  Energy  Commission  back  in 
1961,  I  believe  it  was.  for  coal  research, 
and  it  was  knocked  out  on  a  point  of 
order. 

Mr  HECHLER  of  West  Virginia.  Mr. 
Chairman,  does  the  gentleman  from 
California  recall  that.  In  1961.  that  I 
broke  with  other  coal  State  representa- 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


125R3 


lives  and  supported  the  Hanford  pro- 
ject? 

Mr  HOLIFIELD.  Yes.  I  do  remember 
that. 

Mr  HECHLER  of  West  Virginia.  It 
was  at  political  n.^k  to  myself  that  I 
supporuxi  a  nuclear  project  strongly  ad- 
vocated by  the  gentleman  from  Califor- 
nia, and  now  I  hope  that  the  gentleman 
from  California  will  reciprcx-ale 

Mr.  HOLIFIELD  Yes  The  genUeman 
showed  great  courage  at  that  time.  He 
deserves  a  page  or  perhaps  a  chapter  in 
"Profiles  in  Courage"  for  his  action,  be- 
cause I  know  that  he  did  it  at  some  politi- 
cal hazard. 

Mr.  Chairman.  I  will  say  to  the  gentle- 
man that  a.s  far  as  I  am  concerned.  I  be- 
lieve the  near-term  supplies  of  energy 
must  come  from  coal,  in  addition  to  oil 
and  gas,  which  we  have,  but  particularly 
coal,  because  coal  will  be  here  long  after 
the  oil  and  gtis  have  been  depleted 

If  we  can  just  learn  to  use  coal  and 
mine  it  so  that  it  is  environmentally 
acceptable,  and  if  we  can  learn  to  burn 
it  and  to  transport  it  so  that  it  is  en- 
vlrorunentally  acceptable,  I  think  it  will 
take  us  a  long  way  toward  solution  of  our 
near-term  energy  problems. 

Mr.  HECHLER  of  West  Virginia.  Mr. 
Chairman.  I  thank  the  gentleman.  I  cer- 
tainly hope  that  we  can  emphasize  the 
extraction  of  deep-minable  coal,  of 
which  we  have  seven  times  as  much  of 
the  low-sulfur  variety  as  we  do  of  strip- 
pable  reserves  which  can  be  mined  eco- 
nomically with  present  technology. 

Mr  HORTON.  Mr.  Chairman,  I  yield 
myself  1  minute. 

Mr.  Chairman,  I  would  like  to  point 
out  to  the  Members  that  we  are  getting 
amendments  by  the  bucketful.  Many 
Members  are  bringing  in  amendments  to 
this  blU. 

This  bill  has  been  carefully  worked 
on  by  the  subcommittee  and  by  the  fuU 
committee,  and  I  want  to  emphasize  that 
this  is  an  organizational  bill.  This  estab- 
lishes an  organization.  We  are  not 
changing  any  authority  that  any  of  the 
agencies  which  are  to  be  transferred  now 
have;  we  are  not  changing  any  of  the 
jurisdictions  of  the  committees  involved 
in  the  Congress:  we  are  not  changing 
any  of  the  laws  that  are  involved. 

What  we  are  trying  to  do  is  to  establish 
an  organization  for  energy  research  and 
development,  and  I  hope  that  the  spon- 
sors of  these  amendments,  since  many 
of  the  amendments  have  policy  questions 
involved  In  them,  will  understand  that 
we  will  have  to  oppose  them. 

We  are  not  trying  to  establish  or  set 
policy  in  this  bill. 

Mr.  HOLIFIELD  Mr  Chairman.  I 
yield  such  time  as  he  may  consume  to 
the  gentleman  from  Illinois  (Mr.  Price i . 
Mr.  PRICE  of  Illinois  Mr.  Chairman.  I 
rise  in  support  of  H  R.  11510  and  to 
express  my  complete  association  with  the 
explanatory  remarks  of  my  distinguished 
colleague.  Congressman  Holitikld.  TTiis 
bill  will  set  up  a  separate  agency  to  be 
called  the  Energy  Research  and  Develop- 
ment Administration,  or  ERDA.  to  carry 
out  a  coordinated  effort  on  all  forms  of 
energy  research  and  development.  This 
bill  also  establishes  a  separate  organiza- 
tion for  the  licensing  and  regulation  of 
nuclear  powerplants. 


I  cosponsored  the  legi.'^lation  here  un- 
der consideration.  The  hearings  aa  this 
bill  which  I  followed  with  interest,  only 
served  to  reinforce  my  judgment  that 
HJl.  11510  is  Indispensable  to  the  na- 
tional posture  that  must  be  assumed 
without  delay  in  the  face  of  our  energy 
dilemma. 

Mr.  HOLIFIELD  and  I  are  the  sole  re- 
maining charter  members  of  the  Joint 
Committee  on  Atomic  Energy.  He  served 
alternately  as  chairman  and  vice  chair- 
man of  the  Joint  Committee  fair  10  years, 
and  when  he  yielded  the  chairmanship 
in  1971  to  devote  more  time  to  the  chair- 
manship of  the  Committee  oo  Govern- 
ment Operations.  I  was  privileged  to  as- 
sume his  high  position  on  the  Joint  Com- 
mittee. 

From  our  long  association.  I  know  that 
Chet  Hollfield  understands  the  dimen- 
sions of  our  national  energy  problem  and 
has  the  rare  wisdom  to  convert  that 
knowledge  to  realistic  legislative  perspec- 
tive and  remedial  action. 

Understanding  the  true  nature  of  the 
energy  challenge  facing  this  country  is 
not  an  easy  task.  This  summer,  at  my 
request,  the  staff  of  the  Joint  Commit- 
tee on  Atomic  Energy  prepared  a  com- 
pilation of  information  and  an  analysis 
which  I  highly  recommend  for  a  basic 
understanding  of  the  energy  problem. 
It  is  in  a  print  captioned  "Understanding 
the  National  Energy-  Dilemma."  This  re- 
port covers  all  existing  and  potential  en- 
ergy sources.  The  committee  has  always 
taken  into  consideration  all  energy 
sources  in  light  of  the  interrelationship 
of  most  forms  of  energy. 

More  and  more  E>eople  are  beginning 
to  realize  that  energy-  is  the  very  life- 
blood  of  our  material  existence  on  earth. 
Our  aflfluence.  relatively  speaking,  our 
jobs,  industry,  health,  security,  and  gen- 
eral welfare,  are  directly  attributable  to 
the  fact  that  we  have  had  more  energy 
at  our  command — a  major  portion  of 
which  is  in  the  form  of  electricity — than 
any  other  country  in  the  world.  The  aver- 
age American  uses  as  much  energy  in 
just  a  few  years  as  half  the  population 
of  the  entire  world  consumes,  on  an  in- 
dividual basis,  in  a  full  year. 

But  we  have  seriously  neglected  to  face 
up  to  the  grow-th  rate  in  our  consump- 
tion of  energy,  and  to  our  trusteeship  to 
assure  that  future  generations  can  enjoy 
a  healthy  environment  and  an  abun- 
dance of  energy. 

Under  this  bill.  ERDA  will  see  to  it 
that  all  potential  energy-  sources  are  util- 
ized and  that  w-e  attain  energy  independ- 
ence at  the  earliest  possible  time.  Our 
posterity  will  thank  us  for  our  long- 
range  concern  and  R.  &  D  efforts 

This  bill  will  further  facihtate  the 
broader  use  of  one  of  our  greatest  na- 
tional assets — the  national  laboratories 
of  the  AEC.  These  laboratories  are  al- 
ready doing  research  work  in  areas  other 
than  nuclear  energy  The  Congress  long 
realized  the  importance  of  these  nation- 
al laboratories.  For  example,  in  1970  and 
in  1971.  in  recognition  of  the  preemin- 
ence of  the  facilities  and  the  talents  of 
those  who  work  In  them,  the  Congress 
broadened  the  charter  of  the  AEC  to  in- 
clude responsibilities  for  nonnudear  en- 
ergy R,  &  D.  in  the  charter  for  these 
laboratories.  These  laboratories  have  al- 


ready made  significant  progress  in  areas 
such  as  battery  development,  electric 
transmission,  improving  thermal  power 
cycles  and  reducing  environmental  ef- 
fects of  power  generators.  The  legislation 
before  us  combines  all  of  the  major  en- 
ergy development  facilities  in  the  Na- 
tion in  order  that  a  coordinated  attack 
can  be  made  on  the  problem  of  obtaining 
additional  energy  sources  which  are  en- 
vironmentally acceptable. 

ERD.^  will  continue  to  conduct  many 
important  programs,  most  of  them 
energy-related,  which  the  AEC  has  here- 
tofore been  carrying  out  with  much  suc- 
cess. One  of  these,  for  example,  is  the 
Naval  Nuclear  Propulsion  Program,  a 
joint  program  of  the  AEC  and  the  De- 
partment of  the  NavT.  The  bill  provides 
that  the  Division  of  Naval  Reactors, 
which  is  responsible  for  the  AEC  portion 
of  this  program,  will  be  transferred  to 
ERDA. 

As  noted  in  the  committee  report,  the 
Naval  Reactors  Division  has  made,  and  is 
making,  major  contributions  to  civilian 
nuclear  power  as  well  as  to  naval  nuclear 
propulsion.  The  report  expresses  the 
committee's  conviction  that  if  the  func- 
tions of  the  Naval  Reactors  Division  had 
not  been  imder  the  jurisdiction  of  the 
AEC.  most  of  its  accomplishments  in 
both  the  peaceful  uses  of  nuclear  energy 
and  in  the  area  of  nuclear  propulsion  of 
warships  probably  would  not  have  mate- 
rialized. 

How  well  I  recall  that  we  found  it  nec- 
essary to  buy  the  nuclear  propulsion 
plants  for  the  first  two  nuclear  subma- 
rines, the  Nautilus  and  SeavDol),  with 
AEC  funds  because  the  Nav-y  and  the 
DOD  were  reluctant  to  embark  on  the 
development  of  nuclear  propulsion.  I 
speak  from  first-hand  experience,  gained 
from  a  long  and  close  association  with 
the  Naval  Reactors  Program,  when  I  say 
that  it  is  the  best  interest  of  the  Nation 
for  the  functions  of  the  Naval  Reactors 
Division  to  remain  under  the  jurisdic- 
tion of  ERDA. 

I  commend  Mr  Holifizu),  his  com- 
mittee and  staff,  for  their  outstanding 
work  on  this  major  legislative  measure. 

Mr.  HORTON  Mr.  Chairman,  I  yield 
such  time  as  he  may  cMxsume  to  the 
gentleman  from  New  York  (Mr.  Fisu) . 

Mr.  FISH.  Mr.  Chairman.  I  strongly 
support  the  primary  intent  of  HJl. 
11510 — the  Energy  Reorganization  Act 
of  1973 — which  is  to  centralize  Federal 
energy  research  and  development  efforts. 
The  creation  of  the  E^nergy  Research  and 
Development  Administration  is  a  logi- 
C£il  step  in  this  period  of  pressing  energy 
shortages.  It  should  be  applauded  and 
supported  by  the  House 

Tlie  scope  of  ERDA  .■?  research  and  po- 
tential utilization  techniques  is  broad 
and  open-ended  Among  the  potential 
enerRy  sources  that  will  be  explored  are: 
Solar  tidal,  wind,  hydrogen,  geothermal. 
amd  to  .<;ome  extent,  nuclear.  It  is  most 
important  that  ERDA  avoid  bias  in  favor 
of  any  one  energy  technique  and  I  ex- 
pect that  Congress  will  assure  that  It 
does.  Hopefully,  the  creation  of  ERDA 
means  that  the  serious  fragmentation  of 
Federal  energy  research  programs  is  at 
an  end  tmd  that  we  will  be  able  to  maxi- 
mize our  energy  potential  in  the  shortest 
possible  time  span. 


L'.-v4 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  197S 


But.  I  would  be  less  than  candid,  if  I 
did  not  also  express  deep  reservations 
about  the  contents  of  title  n  in  this  same 
bill.  TlUe  n  renames  the  Atomic  Energy 
Commission  the  "Nuclear  Energy  Com- 
mission." The  renamed  NEC  would  re- 
tain all  the  licensing  and  regulatory  au- 
thority now  placed  In  the  AEC  But  title 
n  is  more  than  mere  "housekeepmg" 
legislation.  Section  203ia)  assures  that 
the  NEC  would  retain  the  authority  to 
engage  in  or  contract  for  research  which 
it  deems  necessary  for  its  licensing  and 
regulatory  fimctions.  So.  while  ERDA 
will  be  allowed  to  conduct  research  re- 
garding nuclear  fusion  for  example,  the 
NEC  would  still  have  direct  control  over 
any  nuclear  safety  research. 

It  is  my  view  that  these  nuclear  safety 
research  functions  would  be  more 
properly  placed  elsewhere,  perhaps  in 
ERDA  itself.  Serious  questions  have  been 
raised  about  the  adequacy  of  the  AEC's 
safety  standards  and  criteria.  No  Federal 
agency  should  be  the  sole  judge  of  the 
validity  or  appropriateness  of  its  actions. 
Certainly,  the  severe  unthinkable  trag- 
edy that  would  result  from  a  nuclear  ac- 
cident, makes  this  even  more  imperative 
with  respect  to  the  activities  of  the  AEC. 

Earlier  in  this  session.  I  introduced 
legislation— H.R  11079 — which  would 
authorize  an  Independent  study  of  AEC 
safety  standards  and  regulations.  The 
comprehensive  study  would  be  conducted 
under  the  auspices  of  the  National 
Academy  of  Sciences  My  bill  is  not  an 
antienergy  bill.  Right  now  nuclear 
energj-  represents  approximately  1  per- 
cent of  our  total  energy  resource  produc- 
tion. Such  a  review  of  AEC  safety  cri- 
teria is  essential  before  the  very  real 
energy  crisis  commits  this  Nation  to  an 
irrevocable  policy  regarding  nuclear 
power 

So.  while  I  am  gratified  at  the  creation 
of  the  Energy  Research  and  Develop- 
ment Administration.  I  still  feel  that 
certain  elements  of  this  measure  warrant 
concern  Hopefully,  the  Congress  will  see 
fit  in  the  future  to  insure  tliat  nuclear 
power  activities  and  research  will  be  re- 
viewed in  the  proper  maimer 

Mr  HOLIFIELD  Mr  Chairman.  I 
yield  3  minutes  to  the  gentlewoman  from 
New  York  (Ms.  Abzccl 

Ms  ABZUG  Mr  Chairman,  it  is  ver>- 
true,  as  my  colleague  on  the  committee, 
the  gentleman  from  New  York  <Mr  Hot- 
TOHi  has  said,  that  this  Is  a  bUl  which 
provides  for  a  very  needed  structure  for 
research  and  development  to  meet  the 
needs  of  our  crucial  energy  problem 

I  believe  that  the  concerns  that  have 
been  expressed  by  our  colleagues  in  the 
amendments  they  seek  to  brmg  before  us 
are  concerns  that  members  of  the  com- 
mittee also  have  as  have  been  expressed 
by  the  gentleman  from  Maryland  'Mr. 
GtTDB  •  the  gentleman  from  New  York 
'Mr  RoantTHALi .  and  others  The  com- 
mittee, in  its  wtvlom.  did  not  seek  to 
favor  one  form  of  energy  over  another 

We.  on  the  committee,  must  see  to  it 
that,  in  the  development  of  this  very 
much  needed  organizational  structure, 
the  structure  itself  does  not  encourage 
an  imbalance  in  its  emphasis  The  ques- 
tion of  the  proper  balance  between  re- 
search In  the  fields  of  nuclear  and  fossil 


energy  as  opposed  to  other  forms  of 
energy,  such  as  solar  and  geothermal. 
IS  something  which  we  must  also  con- 
sider. 

We  do  have  a  responsibility  this  after- 
noon. In  working  with  this  bill,  to  see 
to  It  that  we  deal  with  these  questions 
and  safeguard  against  an  emphasis  in 
one  form  of  energy  as  against  another 
Most  particularly,  we  have  to  make  cer- 
tain that  the  structures  lend  themselves 
not  only  to  looking  for  potential  energy 
sources,  but  also  to  encouraging  more 
efHclent  use  of  our  existing  energy 
sources. 

We  must  assure  ourselves  that  the 
structure  permits  an  opportunity  to  de- 
velop renewable  forms  of  energy  which, 
for  the  future,  can  solve  our  energy  needs 
more  effectively  than  nonrenewable 
forms,  such  as  fossil  or  nuclear  energy 

If  the  structure  does  not  lend  itself 
to  these  factors  sufficiently,  we  should 
be  open  to  amendments  which  will  im- 
prove the  structure  of  the  new  Energy 
Research  and  Development  Administra- 
tion. Only  then  will  we  be  able  to  deal 
with  the  very  weighty  problem  we  are 
charged  with  in  developing  the  research 
so  needed  for  the  critical  energy  problem 
we  confront  today 

Mr  UDALL  Mr  Chairman,  we  are 
faced  today  with  an  issue  critical  to  the 
Nation's  future  There  is  general  agree- 
ment. I  think,  that  the  United  States 
must  achieve  a  balanced  energy  budget 
as  quickly  as  possible  To  do  .so.  we  must 
develop  a  wide  variety  of  new  energy 
sources  which  have  been  Ignored  In  the 
past,  improve  the  efficiency  of  existing 
methods  of  energy  supply,  and  substan- 
tially reduce  our  profligate  rate  of  growth 
in  energ>'  consumption 

The  question  before  the  Congress  is 
how  best  to  achieve  the  first  of  these 
goals  The  bill  before  us  today  is  one  solu- 
tion. I  rise  to  express  my  belief  that  there 
is  another — and  better — solution 

The  administrations  reorganization 
rlan.  the  creation  of  ERDA.  a  new  Energy- 
Research  and  Development  Administra- 
tion, has  several  serious  flaws,  both  pro- 
cedural and  substantive  Among  these 
are  The  inevitable  delays  caused  by  a 
large  bureaucratic  reshuffling,  the  ab- 
sence of  congressionally  deflned  objec- 
tives in  the  bill,  the  omission  of  some  ex- 
tremely Important  areas  of  research  from 
the  Agency's  jurisdiction,  and  the  heavy 
nuclear  bias  built  into  this  plan 

First.  I  submit  to  you  that  ERDA  Is 
only  half  a  job  There  is  no  doubt  that 
we  need  a  complete,  fully  thought  out 
reorganization,  encompassing  both  en- 
ergy- production  and  energy  conservation. 
ERDA  unfortunately  does  not  accomplish 
this  It  Is  an  Incomplete  reorganization 
which  will  only  add  to  our  problems  a 
year  or  two  from  now  when  we  attempt 
to  fashion  the  final,  complete  reorganiza- 
tion Then  we  will  have  to  dissolve  or  at 
least  redesign  this  large  new  agency 
which  will  only  just  be  getting  off  the 
grotmd 

ERDA's  supporters  have  touted  this  as 
a  simple,  uncomplicated  bill,  but  It  Is  not. 
The  creation  of  a  new  agency  employing 
about  100.000  people  who  will  have  to  be 
redirected,  retrained,  reassigned,  or 
transferred  can  never  be  a  simple  un- 
dertaking 


Even  a  simple  reorganization  causes 
bureaucratic  tangles  and  inevitable  de- 
lays In  this  case,  whole  offices  and  de- 
partments will  have  to  be  fitted  into  a 
new  institution,  thousands  of  scientists 
will  get  new  bosses,  and  laboratories  new 
administrators  This  means  that  it  Is 
going  to  be  a  very  long  time  before  any 
research  actually  gets  done,  and  this  Is 
precisely  the  situation  we  are  trying  to 
correct  with  this  reorganization  I  sus- 
pect that  the  real  research  progress  will 
just  be  beginning  about  the  time  that 
Congress  adopts  its  full  reorganization 
plan 

ERDA  has  been  imder  study  for  many 
months  now.  but  the  final  bill  bears  the 
signs  of  a  too- hasty  consideration  Many 
extremely  Important  areas  of  research — 
including  basic  materials  research,  the 
critical  underpinning  on  which  all  future 
advances  are  based,  areas  of  oil  and  gas 
research,  important  areas  of  solar  re- 
search, fuel  cells,  areas  of  advanced  auto- 
motive research — all  these,  and  others, 
are  left  unmentloned 

Par  more  serious  is  the  absence  of  con- 
gressional guidance  in  setting  the  direc- 
tions in  which  ERDA  is  to  travel.  Con- 
gress should  not  now  neglect  its  author- 
ity to  provide  guidelines,  establishing  re- 
search and  development  priorities,  and 
set  funding  levels.  The  Congress  must  be 
unequivocal  in  stating  its  conviction  that 
what  we  need  in  the  long  nin  in  order  to 
extricate  ourselves  from  this  energy  crisis 
is  a  determined,  vigorous,  and  generous- 
ly funded  effort  to  develop  nonnuclear 
and  in  particular,  nonpolluting,  sources 
of  energy. 

Since  the  Atomic  Eiiergy  Act  was 
passed  in  1954.  the  Atomic  Energy  Com- 
mission has  spent  $3  9  billion  on  the  de- 
velopment of  nuclear  energy  for  power. 
Today,  after  nearly  20  years  of  intense 
and  dedicated  effort,  nuclear  energy  pro- 
vides only  nine-tenths  of  1  percent  of 
our  total  energy-  needs,  about  the  same 
contribution  as  firewood 

It  should  be  clear,  I  think,  that  what 
we  need  now  is  a  major  shift  in  empha- 
sis: a  new,  firm,  commitment  of  admin- 
istrative effort,  money,  and  scientific  ex- 
pertise to  the  badly  neglected  area  of 
nonnuclear  energy  sources. 

And  yet.  the  proposed  ERDA  will  take, 
by  Chairman  Ray's  own  description. 
about  90,000  AEC  employees  and  com- 
bine them  with  a  few  thousand  trans- 
ferred from  other  agencies  or  newly 
hired  In  other  words,  nearly  90  percent 
of  this  proposed  administrations  sclen- 
tLsts,  technicians,  and  administrators 
will  be  men  and  women  whose  profes- 
sional careers  have  been  spent  in  the  de- 
velopment of  nuclear  energy  I  fall  to  see 
how  such  an  arrangement  can  possibly 
provide  the  right  background  for  the  kind 
of  redirected  effort  that  we  so  clearly 
need 

To  make  matters  worse,  the  develop- 
ment and  production  of  nuclear  materials 
for  military  uses  will  be  included  in 
ERDA.  These  efforts  now  consume  near- 
ly $900  million  a  year  Such  a  vast  sum 
will  weigh  heavily  in  further  Increasing 
the  Unbalance  in  ERDA  s  efforts  in  favor 
of  nuclear  energy 

Weaponry  has.  of  course,  nothing 
whatever  to  do  with  the  research  and 
development  of  new  energy  sources.  The 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42585 


reorganization  bill  Itself  recognizes  this. 
by  providing  that  E3lDA's  Administra- 
tor shall  submit  a  report  within  1  year 
after  he  takes  office,  analyzmg  the  con- 
ditions for  a  possible  transfer  of  these 
military  functions  to  the  Department  of 
Defense.  Thus,  these  divLslons  may  be 
transferred  twice — with  hardly  a  chance 
to  get  settled  in  ERDA  t>efore  picking  up 
and  moving  on.  I  do  not  think  this  is 
a  sensible,  or  even  a  practical,  plan. 

To  get  a  more  precise  idea  of  the  ex- 
tent of  the  hidden  nuclear  bias  In  the 
administration's  plan,  one  need  Mily  look 
at  the  recently  released  report,  "The  Na- 
tion's Energy  Future."  prepared  at  the 
President's  request  by  AEX:  Chairman. 
Dr.  Dixy  Lee  Ray. 

The  report  contains  recommendations 
for  spending  $10  billion  over  the  next  5 
years  on  energy  research  and  develop- 
ment. The  administration  has  publicized 
it  as  a  major  effort,  involving  new  sup- 
plemental funding.  In  actual  fact,  only 
about  $3 '2  billion  of  the  total  is  new 
spending,  the  rest  has  already  been  com- 
mitted. But  this  is  not  the  full  extent  of 
the  misleading  information  arising  from 
this  report. 

The  report,  as  well  as  some  of  ERDA's 
most  prominent  supporters,  maintains 
that  more  than  76  percent  of  the  new 
money  is  allocated  for  nonnuclear  re- 
earch  and  development.  Of  this  76  per- 
cent. 23  percent  is  allocated  to  coal  re- 
search. 22  percent  to  increased  oil  and 
gas  production,  22  percent  to  energy 
conservatlcm  and  the  remaining  9  per- 
cent to  tl  e  use  of  renewable  resources — 
including  energy  from  solar,  geothermal. 
hydroelectric,  wind,  ocesuiic.  fusion,  and 
waste  material  sources. 

These  numbers  are  not  just  mislead- 
ing, they  are  wrong.  Of  the  proposed  $10 
billion  to  be  spent  by  the  Federal  Gov- 
ernment, $4  09  billion,  or  40  percent — not 
24  percent — will  be  spent  on  nuclear, 
and  only  $1  44  billion  or  14  percent — not 
22  percent — vtill  be  spent  on  conserva- 
tion 

The  former  set  of  figures,  allocating 
24  percent  rather  than  4f  percent  to  nu- 
clear energy,  was  arrived  at  in  the  fol- 
lowing manner  Table  2-1  of  the  report 
lists  a  recommended  national  program 
for  energy  R  k  D.  which  Includes  $12  5 
billion  of  estimated  private  spending 
which  might  "be  forthcoming  In  re- 
sponse to  vigorous  and  imaginative  Fed- 
eral leadership"  When  this  amount  is 
combined  with  the  smaller  Federal  fig- 
ures, one  arrives  at  the  publicized  figures. 
Although  I  have  no  wish  to  stir  up  un- 
needed  controversy  in  this  matter,  I  can 
only  characterize  the  presentation  of 
these  figures  in  the  report,  and  the  public 
testimony  of  ERDA's  leading  supporters 
In  this  matter  as  seriously  misleading. 

A  close  look  at  the  details  provided  in 
the  statistical  supplement  to  the  report 
reveals  more  inaccuracies — all  aimed  at 
hiding  the  extent  of  the  nuclear  bias  in 
this  report  For  example,  of  the  $460 
million  allocated  to  increasing  oil  and 
gas  producUon.  $147.7  million,  or  a  stag- 
gering 32  percent,  is  actually  proposed 
for  nuclear  applications.  Even  In  the 
conservation  area  we  find  the  same  pat- 
tern— of  the  $28.5  million  proposed  for 


improvements  in  shipping.  $12.5  million 
or  44  percent  goes  to  nuclear 

I  am  convinced  that  adoption  of  the 
ERDA  plan  v^ill  give  us  an  energy  re- 
search and  development  program  heavily 
weighted  toward  continuation  of  the 
status  quo — with  the  emphasis  still  on 
nuclear  energy — rather  than  the  new 
redirected  program  we  so  badly  need. 
As  I  see  it,  ERDA  combLnes  all  the  prob- 
lems of  a  complex  reorganization  with 
few  of  the  potential  virtues 

Why  then  should  we  undertake  this 
elaborate  yet  incomplete  reorganization 
when  there  is  before  us  a  simpler  and 
more  effective  alternative?  The  approach 
to  which  I  am  referring  was  passed  by 
the  Senate  last  week  by  a  unanimous 
vote — 80  to  20  As  presented  in  a  similar 
House  bill,  H.R.  11857.  the  alternative 
involves  the  creation  of  a  three-man 
council  headed  by  a  powerful  chairman. 
The  council — or  management  project,  as 
the  Senate  version  is  called — woiUd  be  a 
single,  identifiable  body,  responsible  for 
planning  and  administering  the  Federal 
Government's  research  and  development 
program.  All  departmental  jurisdic- 
tions— and,  I  might  add.  all  congressional 
committee  jurisdictions — would  be  left 
untouched.  The  council  would  simply  be 
superimposed  on  the  existing  structure 
and  could  immediately  begin  its  job  of 
planning,  coordinating,  and  administer- 
ing a  vigorous  new  program  of  normu- 
clear  energy  research  and  development. 

Both  the  Senate  and  House  versions 
contain  congressionally  defined  research 
priorities  and  funding  levels,  as  well  as 
a  variety  of  arrangements  for  stimulat- 
ing joint  Federal-industry  endeavors. 
This  approach  will  not  affect  committee 
jurisdictions  and  will  therefore  avoid 
preempting  the  important  ongoing  work 
of  the  House  Committee  on  Committees. 

Positive  House  action  on  H.R.  11857 
would  result  in  prompt  final  action  in 
Congress,  for  there  would  be  no  difficult 
drawTi-out  conference  with  the  other 
body.  There  would  be  immediate  imple- 
mentation of  the  research  program  for 
there  would  be  no  delay  as  we  wait  for 
bureaucracy  to  extricate  itself  from  the 
tangles  of  reorganization.  And.  finally, 
there  would  be  no  unnecessary  problems 
a  year  or  two  from  now  when  we  reach 
agreement  on  the  complete  energy-  reor- 
ganization plan.  I  urge  the  House  to  give 
serious  consideration  to  the  alternative 
I  have  described  before  reaching  its  final 
decision  on  the  future  of  energy  research 
and  development. 

Mr.  ANNUNZIO.  Mr.  Chairman,  I  rise 
in  support  of  H.R.  11510.  a  bill  to  re- 
organize and  consolidate  certain  func- 
tions of  the  Federal  Government  in  a  new- 
Energy  Research  and  Development  Ad- 
ministration and  in  a  Nuclear  Energy 
Commission 

In  the  psist  month,  this  Nation  has  had 
to  face  its  most  severe  energy  supply 
crisis  since  World  War  n  The  Arab  oil 
embargo,  combined  with  other  supply 
problems,  has  painted  a  very  dim  energj- 
picture  for  most  Americans.  Last  sum- 
mer, we  suffered  through  a  gasoline 
shortage  and  we  must  now  work  our  way 
through  both  a  fuel  oil  and  gasoline 
shortage  this  winter. 


The  respBMi  of  the  Congress  to  these 
problems  hMtieen  encouraging  The  ad- 
ministration was  slow  to  recognize  the 
severity  of  the  present  crisis,  but  the 
Congress  was  not.  Within  hours  of  the 
announced  Arab  oil  embargo,  this  body 
passed  legislation,  which  I  sponsored,  to 
require  the  allocation  0'  crude  oU  and 
petroleum  products.  In  addition,  legis- 
lation was  promptly  introduced  to  deal 
with  the  embargo,  even  before  the  Presi- 
dent made  his  address  to  the  Nation  on 
the  subject 

Smce  that  time,  the  Congress  has 
moved  forward  with  impressive  speed  to 
deal  with  a  v^ide  range  of  energy  emer- 
gency issues;  including  year-round  day- 
light saving  time,  nationwide  speed- 
limit  reduction,  research  and  develop- 
ment legislation,  and  H  R  11450,  the  na- 
tional energy  emergency  legislation 
which  passed  the  House  of  Representa- 
tives last  week  and  which  I  supported. 

H.R  11450  seeks  to  provide  a  short- 
term  answer  to  the  energy  crisis,  and 
included  among  its  provisions  are  au- 
thorization for  a  Federal  Energy  Admin- 
istration, extension  of  the  mandatory 
allocation  program  from  February  28. 
1975  to  May  15,  1975,  authorization  for 
conservation  and  transportation  con- 
trols, requirement  of  an  impact  state- 
ment from  the  President  on  unemploy- 
ment as  a  result  of  energy  shortages  so 
that  the  Congress  can  take  any  further 
action  indicated,  promotion  of  carpools. 
and  other  related  short-term  energy- 
saving  measures. 

The  Emergency  Energy-  Act  does  not 
give  to  the  Chief  Executive  any  powers 
greater  than  the  Chief  Executive  has  had 
in  the  jjast  during  other  national  emer- 
gencies. It  does,  however,  get  us  started 
on  the  road  to  energy  self-sufficiency 
which  Is  essentisd  to  the  well-being  of 
the  American  people,  and  the  continued 
strength  and  prosperity  of  our  Nation. 

On  the  other  hand,  the  legislation 
which  we  have  before  us  now.  "SLR.  11510. 
the  Energy  Reorganization  Act.  seeks  to 
achieve  a  long-term  solution  to  the  en- 
ergy crisis  by  ultimately  making  our 
Nation  completely  suid  totally  independ- 
ent of  foreign  energy  sources.  Some 
months  ago  I  introduced  legislation,  HJl. 
9974  and  H.R  9695.  which  embody  the 
concepts  Included  m  H.R.  11510,  and 
therefore,  I  am  especially  pleased  that 
the  House  is  moving  forward  positively 
today  to  take  action  on  a  bill  that  I  am 
firmly  convinced  holds  the  key  to  our 
future  Independence  as  far  as  energy 
sources  are  concerned^ 

The  Energy  Reoteanization  Act  will 
reorganize  and  consolidate  major  energy 
research  and  development — R  &  D.  func- 
tions In  the  Federal  Government.  The 
bill  provides  for  two  major  changes.  First. 
It  creates  an  independent  Energy  Re- 
search and  Development  Administration. 
ERDA.  which  will  encompass  all  the 
nonregulatory  functions  of  the  Atomic 
Commission  and  energy-  R.  &  D.  func- 
tions from  other  agencies.  Second,  it 
renames  the  AEC  the  Nuclear  Energy 
Commission — NEC — which  will  adminis- 
ter powerplant  licensing  and  related 
regulatory-  functions. 

Mr.  Chairman.  H.R.   11510  Is  not  a 


42586 


CONGRESSIONAL  RECORD— HOUSE 


December  19,  197S 


simple  measure  It  Is  a  highly  complex 
piece  of  legislation  which  irons  out  many 
dlfflcultles.  Reorganizing  the  Federal 
Government  to  better  respond  to  energy 
problems  is  a  difficult  task  The  Com- 
mittee on  Government  Operations  is  to 
be  complimented  for  their  thorough  and 
competent  handling  of  this  task.  The 
legislation  they  have  reported  was  care- 
fully drafted  to  deal  with  every  aspect  of 
the  problem  and  to  provide  an  improved 
response  to  the  Federal  Government  in 
this  area. 

It  is  my  strong  feeling  that  H.R.  11510 
should  be  enacted  by  this  body.  I  have 
reached  this  conclusion  for  the  following 
reasons.  First.  H  R  11510  is  building  on 
an  already  existing  scientific  and  tech- 
nical base.  The  Atomic  Energy  Commis- 
sion and  other  research  units  in  the  De- 
partment of  the  Interior  have  a  long 
history  of  success  in  energy  R.  k  D.  and 
HR.  11510  wisely  utilizes  this  knowl- 
edge 

Second,  the  establishment  of  an  effi- 
cient organizatioiml  framework  for  en- 
ergy R.  &  D  is  essential  if  we  are  to 
achieve  energy  independence.  The  pres- 
ent Arab  oil  embargo  has  brought  home 
to  every  American  the  need  to  develop- 
energy  self-sufficiency.  To  achieve  this 
goal  in  the  shortest  possible  time,  we 
must  have  an  agency  coordinating  the 
energy  R.  k  D  needed  to  promote  devel- 
opment of  new  energy  sources. 

Third,  this  legislation  makes  good 
sense  from  an  administrative  and  cost 
standpoint.  H.R.  11510  wiU  consolidate 
many  diverse  energy  R.  St  D  functions 
and  bring  coordination  to  a  field  that  is 
presently  closer  to  chaos.  The  bill  will 
rid  the  Federal  Government  of  duplica- 
tive research  and  result  in  more  effective 
research.  It  will  provide  a  balanced  and 
sensible  approach  to  energy  R.  L  D 

Fourth,  this  bill  will  allow  this  Nation 
to  move  forward  in  a  coordinated  man- 
ner to  achieve  its  goal  of  energy  self- 
sufficiency  Most  energy  experts  agree 
that  we  will  have  to  rely  on  imported 
energy  sources  over  the  short  nm.  How- 
ever, we  can  break  this  reliance  on  for- 
eign so\irces.  If  we  begin  now  to  And 
new  sources  of  energy.  In  particular,  we 
need  to  demonstrate  commercial  feas- 
ibility for  coal  gasification,  geothermal 
energy,  solar  power,  shale  oil  and  ad- 
vanced power  cycles,  H  R.  11510  takes  a 
bold  step  in  this  direction. 

Fifth,  this  legislation  sets  the  proper 
priorities  for  emphasizing  energy  R.  k  D. 
Because  energy  R  k  D  plays  a  crucial 
role  in  shaping  future  energy  policy,  it 
Is  essential  that  the  priorities  we  shape 
today  will  solve  the  problems  of  tomor- 
row HR  11510  does  an  excellent  job  of 
outlining  these  priorities  Specifically, 
the  legislation  gives  the  new  energy  Re- 
search and  Development  Administration 
the  missions  of  R  i  D.  on:  first,  on  all 
forms  of  energy;  second,  energy  conser- 
vation: third,  energy  efficiency  and  re- 
liability: fourth,  environmental  research: 
fifth,  nuclear  production,  enrichment, 
and  distribution  activities;  and,  sixth, 
fusion  research. 

Mr.  Chairman.  H.R.  11510  Is  an  im- 
portant measure  which  I  strongly  urge 
be  enacted  It  should  be  pointed  out. 
however,  that  the  road  to  energy  self- 


sufficiency  does  not  stop  with  this  bill. 
I  am  proud  to  be  the  ooacxjuoor  of  sev- 
eral other  measures  now  being  considered 
which  should  also  receive  action  These 
bills  include: 

HR.  9«5« — Geothermal  Energy  De- 
velopment Corporation  Act 

H  R  9«91— Coal  Gasification  Develop- 
ment Corporation  Act. 

H  R  9«92— Advanced  Power  Cycle  De- 
velopment Corporation  Act. 

HR  9«93-^hale  Oil  Development 
Corporation  Act 

H  R  9694 — Coal  UquefacUon  Corpora- 
tion Act 

HR.  11179— Solar  Heating  and  Cool- 
ing Etemonstration  Act  of  1973 

Mr  Chairman,  speedy  enactment  of 
HR,  11510  and  careful  consideration  of 
these  other  energy  research  tmd  develop- 
ment measures  will  hasten  the  arrival  of 
energy  self-sufficiency  In  the  United 
States.  Achieving  this  goal  will  be  diffi- 
cult and  costly,  but  I  have  every  faith 
we  will  reach  our  goal. 

I  lu-ge  my  colleagues  to  join  me  In 
meeting  this  challenge  and  resolving  it 
with  the  greatest  possible  dispatch 

Mr  PICKLE  Mr.  Chairman,  the  bill 
now  before  us — ERDA— recognizes  that 
our  energy  problems  are  so  great  as  to 
require  the  full  spectrum  of  American 
technical  capability  in  developing  alter- 
native power  sources 

Under  the  Energ>-  Research  and  De- 
velopment Administration,  public  and 
private  institutions  are  given  an  Im- 
portant role  in  the  massive  effort  to 
renew  our  energy  capabilities.  Overall, 
practical  reorganization  is  called  for  in 
all  of  our  research  and  development  pro- 
grams. TWs  can  strengthen  our  R  k  D. 
programs,  and  clears  up  many  of  the 
Jurisdictional  conflicts. 

Wide  ranging  participation  by  private 
businesses,  universities,  and  other  re- 
search institutions  Is  appropriate  and 
well  advised,  for  we  are  all  aware  of  the 
contributions  these  bodies  have  made  in 
previous  scientific  endeavors. 

With  respect  to  developing  new  energy 
systems,  private  business  and  our  uni- 
versities are  vitally  Important  because  of 
the  wide  range  of  energy  research  and 
developing  programs  currently  being 
conducted  in  these  legislations. 

Research  and  development  projects 
funded  by  the  National  Science  Founda- 
tion, the  National  Aeronautics  and  Space 
Administration,  the  Office  of  Coal  Re- 
search and  other  Federal  agencies  have 
already  brought  non-Federal  expertise  to 
bear  on  our  energy  problems. 

As  an  example.  I  will  point  out  that 
the  University  of  Texas  in  my  own  con- 
gressional district  Is  deeply  Involved  in 
most  aspects  of  the  drive  for  new  energy 
sources. 

The  university's  Tokamak  particle  ac- 
celerator Is  one  of  less  than  a  half  dozen 
such  facilities  necessarj-  for  fusion  ener- 
gy- research 

Under  the  new  Federal  energy  orga- 
nization, provisions  ai^^aritle  for  con- 
tinuing the  work  of  pi^vate  business  and 
universities  in  energy  research,  and  I 
believe  these  provisions  exhibit  a  great 
deal  of  foresight. 

Section  108a  of  the  bill  now  before  us 
provides  ample  authority  for  a  wide  se- 


ries of  grants,  loans  and  contractual 
agreements  to  include  all  parts  of  the 
American  economy,  in  the  expanding  en- 
ergy research  effort 

Experience  has  clearly  shown  us  that 
our  universities  and  private  businesses 
are  rich  breeding  grounds  for  scientific 
and  technological  innovation 

I  believe  we  are  wise  to  include  these 
institutions  in  America's  new  and  re- 
vitalized energy  organization  By  doing 
so.  we  bolster  our  basic  economic  struc- 
tures while  acceleraUng  the  energj-  re- 
search effort  which  will  one  day  make 
our  country  self-sufficient  in  its  energy- 
needs. 

Mr  PREN2UEL  Mr  Chairman.  I  be- 
lieve that  H  R.  11510.  the  bUl  creating  a 
new  Energy  Research  and  Development 
Administration  may  be  the  most  Impor- 
tant energy  bill  we  will  pass  during  the 
93d  Congress.  Nothing  is  more  needed 
right  now  than  coordination  and  con- 
solidation of  energy  development.  We 
can  only  be  successful  in  developing  new 
technologies  if  we  coordinate  our  efforts. 

The  committee  has  taken  a  good  ad- 
ministration propossLl  and  improved  it 
greatly.  Not  only  do  we  get  through  it 
a  concentration  of  resources  and  efforts. 
we  get  in  addition  a  separation  of  nu- 
clear safety  regulations  and  licensing 
from  nuclear  development 

We  shall  surely  need  to  fund  this  ad- 
ministration on  a  basis  proportionate 
to  its  importance.  As  soon  as  House  and 
Senate  agree  on  the  organization  and  op- 
erations of  ERDA,  we  must  raise  our 
sights  and  provide  the  heavy  fimding 
needed  to  achieve  the  capability  of  ener- 
gy self-sufficiency. 

The  cost  of  fimding  has  been  esti- 
mated at  figures  ranging  from  $10  bil- 
lion over  5  years  to  much  higher  figures, 
I  hope  this  House,  or  at  least  those 
Members  who  support  this  bill,  is  will- 
ing to  make  a  financial  commitment  of 
that  magnitude.  It  simply  has  to  be 
done. 

I  am  pleased  also  that  the  bill  in- 
cludes development  of  most  energy 
sources  anyone  has  ever  heard  of.  and 
that  the  bill  does  not  exclude  research 
and  development  of  sources  unlisted,  or 
even  unknown,  at  this  time, 

I  think  its  a  great  bill.  I  hope  it  passes. 

Mr  OBEY.  Mr.  Chairman,  the  bill  now 
on  the  floor  of  the  House  establishes  an 
Energy  Research  and  Development  Ad- 
ministration which  will  have  admin- 
istrators In  five  areas:  fossil  energy  de- 
velopment; nuclear  energy  development: 
environment,  safety  and  conservation: 
research  and  advanced  energy  systems 
and  national  security. 

The  bill  transfers  to  this  new  agency 
energy  research  from  the  Department  of 
Interior,  primarily  on  coal  research,  with 
a  1974  budget  of  $106  million;  solar  and 
geothermal  energy-  research  from  the 
National  Science  Foundation,  with  a  1974 
budget  of  Just  over  $24  million;  and  air 
pollution  and  other  energy  research  from 
the  Environmental  Protection  Agency 
with  a  1974  budget  of  another  $24  mil- 
lion. In  addition,  the  ERDA  will  contain 
all  nonregulatory  functions  of  the  Atomic 
Energy  Commission  Overall,  the  Agency 
will  allocate  about  $3  billion  in  funds. 

As  those  figures  indicate.  Mr  Chair- 
man, at  least  Initially  the  overwhelming 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42587 


majority  of  funds  this  new  agency  will 
spend  will  be  targeted  for  nuclear-re- 
lated research  and  development  now  fall- 
ing within  the  realm  of  the  Atomic 
Energy  Commission. 

That  is  hardly  surprising  since  our  re- 
search and  development  efforts  to  date 
have  largely  been  concentrated  in  the  nu- 
clear area  If  that  is  to  be  faulted,  the 
blame  lies  with  a  Congress  which  has  not 
funded  wide-ranging  and  Imaginative 
energy  research  programs  in  the  past  at 
anywhere  near  adequate  levels,  and  with 
a  President  who  has  impounded  some  of 
the  funds  which  the  Congress  has  pro- 
vided. My  concern  over  this  bill,  which  is 
after  all  just  a  reorganization  measure, 
is  that  it  not  be  viewed  as  a  signal  that 
the  Congress  Intends  to  put  the  lion's 
share  of  our  future  energy  development 
resources  in  the  nuclear  basket. 

Atomic  power  has  had  its  dedicated 
advocates  since  the  dawn  of  the  nuclear 
ago  30  years  ago.  and  in  terms  of  fund- 
ing, nuclear  research  is  receiving  top  pri- 
ority by  our  Government.  Unfortunately, 
almost  all  of  this  money  has  gone  toward 
research  on  the  liquid  metal  fast  breeder 
reactor  and  other  fission  reactors  which 
produce  a  great  deal  of  waste — in  the 
form  of  heat  and  radioactive  products 
which  must  be  permanently  stored.  Very 
little  is  being  spent  on  fusion  research, 
which  promises  to  produce  cleaner  smd 
safer  energy-  with  far  less  waste  than 
those  produced  by  nuclear  fission. 

Now.  I  am  sure  that  some  people  would 
and  could  go  on  for  sometime  giving  us 
reasons  for  that,  and  the  Atomic  Energy 
Commission  Is  not  entirely  at  fault.  But 
after  30  years  of  research,  our  energy 
output  today  from  nuclear  sources  alxjut 
equals  that  from  firewood  Given  that 
record,  I  do  think  it  would  be  short- 
sighted at  best  to  rely  heavily  on  nuclear 
power,  and  especially  fission,  to  meet  our 
future  energy  needs. 

The  fact  is  that  while  we  have  been 
told  time  and  again  that  nuclear  power 
is  safe,  and  that  no  major  accidents  af- 
fecting the  public  health  and  safety  have 
occurred,  a  number  of  scientists  have 
raised  serious  questions  about  the  safety 
of  nuclear  powerplants.  and  I  know  from 
experience  in  my  own  district  that  a 
great  many  people  are  tremendously 
leery  of  them. 

Look  at  what  has  happened  in  the  past 
month.  A  newly  installed  evaporator 
spewed  7.000  gallons  of  radioactive  waste 
onto  the  ground  at  the  AEC  nuclear  facil- 
ity in  Richland.  Wash.  A  supersecret  de- 
vice for  making  uranium  for  weapons 
and  power  was  destroyed  in  an  experi- 
mental run  at  Oak  Ridge  Term  Scien- 
tists have  discovered  an  earthquake  fault 
just  2  miles  from  a  half  finished  nuclear 
powerplant  in  California.        (• 

Mr.  Chairman.  I  do  not  pretend  to  be 
expert  enough  to  say  that  nuclear  power 
Is  safe  or  that  It  is  unsafe.  But  I  do 
know  that  our  first  concern  must  be  pub- 
lic safety,  that  the  stakes  involved  are 
exceedingly  high,  and  that  if  we  make  a 
mistake  the  disaster  could  be  almost  be- 
yond comprehension. 

What  It  all  bolls  down  to  is  that  we 
would  be  shorUslghted  and  stupid  to 
neglect  to  significantly  increase  our  re- 
search budgets  for  nonnuclear  forms  of 


energy  such  as  solar,  geothermal.  tidal, 
and  wind.  So.  Mr.  Chairman,  while  I  am 
voting  for  this  bill,  I  do  so  with  the  hope 
that  the  research  and  development  ef- 
forts of  the  ERDA  will  be  balanced  be- 
tween nuclear  and  other  types  of  re- 
search, and  that  nuclear  technology  will 
not  dominate  the  time,  and  the  energy 
and  the  financial  resources  of  this  agency. 

We  have  to  realize,  too.  that  a  re- 
organization of  government  to  more  effi- 
ciently and  logically  deal  with  our  energy 
research  efforts — as  badly  needed  as  that 
Is — will  not  get  us  through  what  is  a 
long-run  energy  crisis  if  we  have  an  "off- 
again-on-again"  administration  down- 
town. 

It  is  bad  enough  that  the  past  year  we 
have  had  four  different  energy  "czars" 
supposedly  leading  whatever  policymak- 
ing there  has  been  in  the  energy  field. 
What  Is  even  worse  is  that  after  every 
assertion  by  technical  experts  that  the 
situation  is  bad  and  belt  tightening  is  in 
order,  some  higher  up — like  the  Chair- 
man of  the  Council  of  Economic  Advisers 
or  even  the  President  himself — holds  a 
press  conferece  and  cheerily  guesses  that 
things  are  not  so  bad   after  all. 

That  pattern  is  disconcertingly  fa- 
miliar. For  2  years  we  have  been  told  that 
the  economy  is  getting  better,  when,  of 
course,  it  has  been  getting  worse.  Shades 
of  Herbert  Hoover — he  felt  prosperity 
was  just  around  the  comer  too! 

What  are  they  running  at  the  other 
end  of  Pennsylvania  Avenue,  a  govern- 
ment or  an  optimist  club? 

The  American  people  simply  do  not 
believe  predictions  that  infiation  is  being 
licked  and  that  the  economy  is  improv- 
ing. We  have  had  too  many  rosy  predic- 
tions, such  as  the  President's  speech  to 
the  longshoremen,  that  the  energy  crisis 
might  only  last  a  year  or  two. 

That  is  pure  100-percent  tmadulter- 
ated  baloney.  How  can  the  public  be 
expected  to  do  what  the  Nation's  welfare 
demands,  if  its  lesiders  do  not  level  with 
them.  The  simple  truth  is  that  the  energy 
crisis  is  real,  and  that  it  Is  not  going  to 
go  away  in  a  year  or  two.  It  will  be  with 
us  for  a  decade.  It  is  going  to  be  incon- 
venient for  everyone  and  darned  painful 
for  some.  People  have  a  right  to  know 
that,  before  it  hits — not  after. 

There  is  one  group  around  which 
would  like  to  convince  us  all  that  we 
could  solve  this  crisis  by  eliminating  our 
environmental  protection  laws.  That  may 
sound  easy,  and  I  think  most  of  us  agree, 
for  example,  that  a  1-year  extension  may 
be  necessary  for  car  makers  to  comply 
with  auto  emission  standards.  But  a 
wholesale  repeal  of  our  recently  enacted 
environmental  laws  will  not  significantly 
help  us  alleviate  the  shortages  f£u;lng 
us — not  when  we  have  been  energy  glut- 
tons for  years. 

Some  people  point  to  the  present  crisis 
and  would  like  to  blame  the  whole  thing 
on  the  oil  companies,  I  am  certainly  not 
going  to  excuse  them.  They  have  con- 
sistently refused  to  give  the  Government 
almost  every  type  of  Information — from 
their  major  stockholders  to  Information 
which  would  allow  us  to  determine  the 
degree  of  competition  in  the  industry — 
which  may  have  heU>ed  us  predict  and 
deal  with  this  situation. 


But  it  was  the  President  who  kept 
plentiful  foreign  oil — which  was  then 
cheap — out  of  the  country-  under  the  as- 
sumption that  it  was  somehow  better  to 
"drain  America  first,"  That  policy  en- 
couraged the  draining  of  our  domestic 
resources  and  it  discouraged  oil  com- 
panies from  investing  in  oil  refineries  at 
home  and  we  are  paying  dearly  for  that 
today.  But  the  Congress  did  nothing  to 
reverse  it.  Neither  did  the  Congress  nor 
the  President  do  anything  to  eliminate 
our  Government's  reliance  on  oil  com- 
panies for  statistics  on  oil  and  gas  re- 
serves. 

Mr,  Chairman,  finding  scapegoats  at 
this  point  is  not  going  to  help  us  at  all. 
We  are  going  to  see  higher  prices,  and 
quite  possible  higher  taxes,  for  gas,  and 
shortages  are  going  to  get  a  lot  worse 
before  they  get  any  better  But  this  does 
not  mean  that  Government  has  to  stand 
by  while  gas  prices  go  through  the  roof 
or  oil  company  profits  triple. 

If  prices,  taxes,  profits,  or  unemploy- 
ment goes  up.  our  citizens  deserve  an  ac- 
counting for  it.  And  to  do  that  we  are 
going  to  need  far  more  information  about 
ail  aspects  of  the  energy  cninch  than 
Government  has  available  today. 

We  al.so  owe  people  some  guarantees, 
that  higher  prices  will  not  mean  price 
gouging  and  that  higher  profits  will  not 
mean  windfall  profits.  People  should  be 
guaranteed  that  shortages  will  not  be 
used  by  the  oil  companies  to  drive  their 
competition  out  of  business;  that  in- 
creased taxes  will  be  used  not  for  allo- 
cating fuel  to  the  rich,  but  to  give  gov- 
ernment additicMxal  funds  for  energy  re- 
search and  development;  and  that  ra- 
tioning, when  we  finally  do  have  it,  will 
not  assure  adequate  fuel  only  to  those  in- 
genious enough  to  cheat  "the  system." 

Above  all,  our  people  must  be  guaran- 
teed that  the  oil  industry,  which  did  a 
great  deal  to  get  us  into  this  mess,  will 
not  be  entrusted  to  get  us  out  of  It, 

Thirty  years  ago.  Mr,  Chairman,  when 
speaking  about  the  depression.  Will 
Rogers  said  that  kids  did  not  believe  that 
politicians  could  get  the  country  out  of 
the  mess  it  was  in,  Rogers  disagreed. 
He  remarked: 

If  Ignorance  got  us  in,  why  can't  It  get  us 
out? 

That  pretty  much  seems  to  be  the  at- 
titude of  those  in  Grovemment  who  want 
to  rely  on  oil  company  judgments  to  get 
us  out  of  the  energy  crunch. 

It  .seems  that  the  energy  crisis  hfiis  cre- 
ated a  .situation  where  Industn'-doml- 
nat.ed  advLsory  committees  may  be  mak- 
ing, quite  possibly  in  secret.  Government 
decisions  which  guide  our  actions  in 
dealing  with  energy  shortages.  That  may 
make  sense  if  you  could  expect  oil  com- 
pany executives  to  distribute  their  oil 
solely  on  the  basis  of  what  was  good 
for  the  country.  But,  alas,  what  is  good 
for  the  country  is  sometimes  not  what  is 
good  for  Standard  Oil  Because  business 
executives  will  feel  great  pressure  to 
make  decisions  which  will  maximize 
profits  and  maximize  retum.«  to  stock- 
holders, they  cannot  be  allowed  to  cypter- 
mlne  what  Government  policy  will  be 

It  is  for  ihi.s  reason  that  I  intend  and 
urge  my  colleagues  to  support  an  amend- 
ment by  my  colleague  Mr  Ski BKR LING,  to 


12588 


CONGRESSIONAI    RECORD  —  HOUSE 


December  19,  1973 


limit  membership  In  advisory  commit- 
tees created  under  this  bill  so  that  no 
more  than  one -third  of  the  total  will  be 
composed  of  representatives  of  indus- 
tries which  produce,  develop  or  research 
energy  sources. 

Mr.  Chairman,  in  my  judgment  con- 
servation of  fuel  is  the  only  assurance 
we  have  that  we  can  ride  out  our  short- 
ages in  the  short  run.  smd  research  and 
development  of  a  wide-ranging  host  of 
energy  resources  is  really  the  only 
answer  in  the  long  run.  Unfortionately. 
I  am  not  convinced  that  this  House  has 
the  commitment  to  put  our  energy  re- 
search resources  where  they  belong.  Only 
passage  of  a  bill  similar  to  that  intro- 
duced by  Senator  Jackson  and  passed 
recently  by  the  Senate — committing  us 
to  a  $20  billion  and  10-year  effort  in 
energy  research  and  development — will 
prove  that.  This  reorganization  bill,  as 
needed  as  it  is,  will  not  solve  much  unless 
it  is  accompanied  by  that  kind  of 
commitment. 

Mr.  EDWARDS  *of  California.  Mr. 
Chairman.  I  welcome  the  enactment  of 
the  Energy  Research  and  Development 
Act.  The  present  energy  crisis  has 
pointed  up  all  too  clearly  the  need  for  a 
well-managed,  centrally  directed  attack 
on  our  energy  problems  Only  through 
careful,  coordinated  and  appropriate 
planning  can  we  bring  the  United  States 
as  close  to  energy  self-suflBciency  as  pos- 
sible in  the  years  ahead. 

I  am  also  pleased  to  note  that  this  bill 
includes  an  office  of  Research  and  Ad- 
vanced Energy  Systems,  to  be  headed 
by  an  Assistant  Administrator,  with  the 
responsibility  for  exploring  new  areas  of 
energy  potential:  solar,  geothermal. 
tides  and  wind.  In  developing  these  new 
energy  resources,  ingenuity  will  be  of  the 
greatest  importance.  We  can  no  longer 
rely  on  traditional  energy  plans  involv- 
ing fossil  fuels,  programs  which  have  led 
to  the  Inevitable  depletion  of  limited 
resources.  Our  attention  must  turn  to- 
ward new.  clean,  abundant  and  largely 
untapped  forms  of  energy. 

The  United  States  has  always  prided 
Itself  on  our  technological  know-how 
and  expertise,  our  ability  to  solve  mech- 
anistic problems,  «md  our  Ingenuity 
and  creativity  The  San  Francisco  Bay 
a»ea,  of  which  I  have  the  privilege  of 
representmg  part,  is  particularly  Itnown 
for  its  wealth  of  talent  and  expertise  in 
sophisticated  technological  areas.  A 
number  of  the  Nations  leading  uni- 
versities, research  institutes,  and  aero- 
space mdustnes  located  around  San 
Francisco  Bay  have  recently  experienced 
job  cutbacks,  but  now  have  the  oppor- 
tumty  to  focus  their  attention  and  skills 
on  energy  problems.  Congressional  in- 
terest is  evident  in  this  legislation  and 
we  will  soon  be  appropriating  moneys  to 
finance  research  grants  in  this  critical 
area 

While  I  am  certainly  not  qualified  to 
judge  the  feasibility  of  any  particular 
energy  system,  one  concept  has  caught 
my  attention  and  stirred  my  imagina- 
tion— harnessing  the  wind.  Wind  power 
Is  not  only  clean,  but  also  abundant,  and 
limitless  In  some  areas  like  the  San 
Francisco  Bay.  winds  are  consistent,  con- 
stant and  prevailing  Statistics  from  the 


n.S.  Deptu-tment  of  Commerce,  National 
Oceanic  and  Atmospheric  Administra- 
tion, on  wind  velocitj-  at  the  San  Fran- 
cisco Bay  Airport  for  1972  show  that  the 
mean  speed  of  the  wind  there  is  10.5 
miles  per  hour,  with  a  mean  low  of  6.8 
miles  per  hour  in  December  and  a  mean 
high  of  14  miles  per  hour  in  June,  indi- 
cating remarkable  consistency.  On  the 
Great  Plains  of  the  Western  United 
States,  the  potential  is  even  greater. 

While  much  of  the  research  and  ex- 
perimentation in  this  area  sounds  like 
GuUiver's  Travels  or  Alice  in  Wonder- 
land, the  January  1973  issue  of  Environ- 
ment has  a  fascinating  artiel^  on  wind- 
mills, citing  significant  dev^pments  in 
the  Isist  50  years,  particularly  the  work 
of  Professor  Heronemus  of  the  Univer- 
sity of  Massachusetts  A  number  of  other 
sources  indicate  that  the  potential  for 
developing  wind  power  is  far-reaching. 
Although  there  are  obvious  drawbacks  in 
each  unexplored  field — harnessing  the 
wind  may  require  the  erection  of  aesthet- 
ically displeasing  wind-catching  struc- 
tures, for  example — I  would  hope  that  we 
can  remain  as  openminded  as  possible, 
entertaining  a  variety  of  new  and  inno- 
vative concepts  for  energy  research  and 
development.  The  use  of  wind  power  is 
certainly  only  one  example  of  what  we 
might  do. 

Therefore.  I  urge  my  colleagues  not 
merely  to  join  me  in  supporting  the  pas- 
sage of  this  important  legislation,  but  in 
encouraging  their  constituents,  universi- 
ties and  research  institutes,  and  private 
businesses  to  use  this  legislation  and  their 
own  creative  powers  as  the  starting  point 
for  innovative  and  successful  solutions  to 
the  challenge  of  the  energy  crisis. 

Mr.  MOORHEAD  of  Pennsylvania.  Mr. 
Chairman,  I  rise  In  support  of  H.R. 
11510.  a  most  important  piece  of  legis- 
lation, designed  to  manage  our  nation- 
wide technical  scientific  capabilities  for 
the  achievement  of  that  degree  of  en- 
ergy self-sufficiency  so  obviously  needed 
today. 

Our  subcommittee  and  the  full  com- 
mittee, led  by  the  gentleman  from  Cali- 
fornia I  Mr.  HoLiriELD>  worked  dili- 
gently on  this  crucial  bill  and  I  want  to 
congratulate  my  friend  for  his  guidance. 

It  is  essential  that  we  establish.  In 
this  country,  an  organization  to  assure 
the  future  availability  of  enough  energy 
at  a  reasonable  cost  to  our  economy  and 
to  our  environment.  It  is  clear  to  all  who 
attended  the  recent  hearings  on  this  bill, 
that  there  is  a  consensus  throughout  this 
country  in  favor  of  the  creation  of  the 
Energy  Research  and  Development  Ad- 
ministration— ERDA.  I  can  see  at  least 
three  valid  and  independent  reasons  for 
the  creation  of  ERDA  now:  First,  to 
organize  an  efficient  and  directed  na- 
tional effort  in  energy  research;  second, 
to  set  limits  on  energy  cost  and  thus  re- 
establish price  elasticity;  and  third,  to 
assure  our  continued  independence  as  a 
sovereign  nation. 

The  Increasing  dependence  of  the 
Western  World  on  foreign  sources  of 
crude  oil  has  recently  become  a  political 
weapon  of  some  oil-rich  nations  The 
American  people  cannot  and  will  not 
submit  to  such  blackmail.  In  contrast  to 
the  unfortunate  situation  of  other  in- 


dustrialized nations  of  the  West,  this 
attack  on  our  independence  finds  us 
ready  and  able  to  face  the  challenge  The 
energy  crisis  was  not  an  unexpected 
event.  Its  symptoms  have  been  known 
to  us  for  years,  and  had  nothing  to  do 
with  our  foreign  policy.  But  It  took  the 
recent  embargo  by  some  Arab  nations, 
to  galvanize  our  determination,  and  to 
quickly  reach  a  consensus  on  what  other- 
wise would  have  taken  years  to  accom- 
plish. 

The  public  should  not  be  mislead  to 
believe  that  the  establishment  of  ERDA 
can  solve  our  energy  shortage  overnight. 
There  is  no  doubt  that  the  remainder  of 
this  decade  will  entail  a  certain  degree 
of  hardship  for  all  of  us.  But  ERDA 
allows  us  to  look  forward  to  the  1980s 
and  beyond  with  a  new  hope  for  an 
abundant  supply  of  energy,  a  clean  and 
healthful  environment,  and  a  better 
quality  of  life. 

The  sooner  we  start  on  this  great  en- 
deavor the  better  the  chance  to  mini- 
mize the  discomfort  and  economic  dis- 
location; the  better  chance  for  early 
success. 

The  good  Lord  has  blessed  this  Nation 
with  resources  in  oil.  gas,  coal  and  urani- 
um whose  total  energy  potential  is  more 
than  20  times  that  of  all  the  Middle 
Eastern  oil  fields.  More  importantly,  the 
United  States  is  blessed  with  enormous 
Industrial,  technological  and  scientific 
capabilities.  ERDA  will  marshal  these 
capabilities  into  a  coordinated  whole. 
The  United  States  can  point  with  pride 
to  a  history  of  precedents  of  such  na- 
tional efforts:  the  Manhattan  Project 
during  the  dark  days  of  World  War  n, 
and  more  recently  our  national  effort  to 
place  a  man  on  the  Moon.  There  should 
be  no  doubt,  that  this  Nation,  once  mo- 
tivated as  we  now  are,  can  reach  the 
technological,  managerial  and  institu- 
tional greatness  that  Congress  and  the 
administration  expect.  The  mission  Is 
clear,  the  plans  are  ready;  let  us  not 
delay. 

It  is  well  to  point  out  that  western 
Pennsylvania,  including  my  home  dis- 
trict, occupies  a  very  special  position  in 
energy  research  and  development  of  en- 
ergy resources.  Western  Pennsylvania  is 
the  cradle  of  the  coal  industry,  the  oil 
industry  and  the  nuclear  power  industry. 
In  addition,  this  region  has  led  the  Na- 
tion in  pollution  control  since  the  pio- 
neering days  of  the  now  famous  Pitts- 
burgh Renaissance  With  such  a  history, 
and.  furthermore,  with  the  second  larg- 
est concentration  of  universities  and  re- 
.search  laboratories  In  this  country,  the 
Pittsburgh  region  should  play  a  highly 
significant  part  In  the  planning  and  im- 
plementation of  ERDA. 

Because  of  our  deep  Interest  in  both 
fossil  as  well  as  nuclear  energy  and  be- 
cause  of  our  historical  position  in  re- 
source development  of  both  kinds,  fossil 
as  well  as  nuclear,  we  can  present  a  fair 
and  impartial  position  on  the  question 
of  development  priorities. 

There  Is  a  real  concern  over  the  lack 
of  cwlequate  funding  and  achievement  in 
the  search  for  safe  and  clean  utilization 
of  fossil  fuel.  Let  us  no  longer  place  coal, 
our  most  abundant  domestic  fuel  In  a 
poor  second  place. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42589 


Unforiunat-eiy.  current  expertise  is  not 
sufficient  to  cope  wiih  the  need  to  use 
much  greater  quantlUe.s  of  coal  than  we 
have  been  using  and  to  burn  that  coal  in 
a  clean  almost -pollution  free  way. 

In  Lhia  regard.  I  v,a.s  heartened  by  the 
testimony  of  Roy  .Ai;h  Director  of  the 
Office  of  Managenieni  and  Budget. 

During  our  hearings.  I  asked  him 
about  the  disproportionate  funding,  in 
the  past,  of  coal  research  to  nuclear 
energy   research. 

I  explained  to  him  that  my  hope  In 
supporting  Uie  ERDA  bill  was  that  under 
ERDA,  coal  research  would  not  be 
treated  as  an  orphan  but  with  special  Im- 
portance. 

Acknowledging  the  need  for  greater 
emphasis  on  and  funds  for  coal  research. 
Ash  said: 

There  is  plenty  to  be  done  and  as  the 
Chairman  has  said,  we  have  been  remlsb  and 
have  not  been  doing  what  might  have  been 
done.  Now  is  the  time  to  concentrate  all  of 
the  resources  that  can  be  effectively  em- 
ployed to  get  at  the  nonnuclear  fuel  poten- 
tials and  that  this  country  has. 

I  am  certain  that  the  management 
of  ERDA  will  recognize  the  merit  of  this 
concern,  and  promptly  Initiate  an  un- 
precedented expansion  of  the  necessity 
research  and  development  in  coal  tech- 
nology, and  follow  through  with  the  as- 
sociated demonstrated  plants. 

Lastly.  I  would  like  to  mention  the 
concurrent  formation  of  the  Nuclear 
Energy  Commission — NEC — which  will 
henceforth  be  the  regulatory  agency  for 
the  nuclear  Industry.  I  hope  that  the 
large  effort  In  standardization,  and  the 
streamlining  of  the  licensing  process,  so 
well  under  way.  will  continue  without 
loss  of  momentum.  The  Nation  can  ill 
afford  to  have  these  expensive  and  neces- 
sary generating  capacities  sit  idle  while 
the  call  for  power  is  heard  throughout 
the  land.  Neither  can  the  NaUon  afford 
to  take  chances  with  the  health  and 
safety  of  the  public  and  the  long  range 
quality  of  the  environment.  We  have 
confidence  that  the  new  NEC  wUl  pursue 
the  public  interest  and  the  naUonaJ  ob- 
jective with  due  consideration  to  the 
above  concerns. 

I  urge  the  immediate  passage  of  H.R. 

Mr  BOLAND.  Mr.  Chairman.  I  rise  In 
support  of  H.R.  11510.  a  bUl  to  "reorga- 
nize and  consolidate  certain  functions  of 
the  Federal  Government  In  a  new  Energy 
Research  and  Development  Administra- 
tion and  in  a  Nuclear  Energy  Commis- 
sion in  order  to  promote  more  efficient 
management  of  such  functions." 

I  commend  the  distinguished  chair- 
man and  members  of  the  Committee  on 
Government  Operations  for  its  fine  work 
in  bringing  this  proposal  so  expeditiously 
to  the  floor. 

Mr.  Chairman,  while  the  energy  crisis 
is  upon  us  now.  It  Is  not  new.  There  have 
been  warnings  of  Its  coming  for  the  past 
25  years. 

A  report  to  the  President  was  made  in 
1952  by  the  President's  Materials  Policy 
Commission,  commonly  called  the  Paley 
Commission  after  Its  chairman.  William 
8.  Paley. 

Volume  3  of  this  5-volume  study  Is 
devoted  to  the  outlook  for  energy  sources. 


It  looks  at  energy  as  a  single  resource  re- 
quirement for  our  Nation,  and  breaks 
this  down  into  four  studies  of  oil,  natu- 
ral gas,  coal,  and  electric  energy. 
It  said  then : 

A  supply  of  energy  sufficient  to  meet  the 
total  demand  of  the  United  SUtes  can  be 
achieved  without  prohibitive  increases  in 
real  costs  only  if  the  Nation  looks  at  Its  ener- 
gy resources  as  a  whole:  only  if  It  exploits 
fully  the  shifting  interrelationships  among 
various  sources  of  energy;  only  if  it  takes 
the  fullest  economic  and  technical  advantage 
of  the  flexibilities  In  end-use.  in  distribution. 
In  drawing  on  each  energy  source  for  lU  best 
and  most  efficient  contribution. 

The  study  made  clear  projections  of 
U.S.  energy  demands  for  1975  that  are 
proving  to  be  exceptionally  valid.  The 
situation  today  is  essentially  that  pro- 
jected by  the  Paley  Commission  almost 
25  years  ago. 

Since  then,  we  have  continued  our  re- 
search aggressively  in  only  one  area — 
nuclear  energy,  but  we  have  devoted  in- 
sufficient research  efforts  to  other  kinds 
of  energy. 

By  1962,  when  Joe  Swidler  became 
Chairman  of  the  Federal  Power  Com- 
mission, the  growing  demands  for  all 
kinds  of  energy  were  reaching  critical 
proportions  and  alarms  were  sounded  by 
the  FPC  that  we  had  to  act  aggressively 
on  many  fronts  in  order  to  meet  rising 
energj-  demands  In  timely  fashion. 

Early  In  1967  In  a  message  to  the  Con- 
gress, "Protecting  Our  Natural  Heritage," 
President  Johnson  asked  the  Office  of 
Science  and  Technology  and  his  science 
advisor.  Dr.  Homlg.  to  make  recom- 
mendations relating  to  energy  policy 
analysis  and  coordination.  The  Presi- 
dent's message  stated  that: 

The  number  and  complexity  of  Federal  de- 
cisions on  energy  issues  have  been  Increasing, 
as  demand  grows  and  competitive  situations 
change.  Often  decisions  In  one  agency  and 
under  one  set  of  laws— whether  they  be 
regulatory  standards,  tax  rules  or  other  pro- 
visions—have implications  for  other  agencies 
and  other  laws,  and  for  the  total  energy 
industry.  V?e  must  better  undersUnd  our 
future  energy  needs  and  resources.  We  must 
make  certain  our  policies  are  directed  to- 
wards achieving  these  needs  and  developing 
those  resources. 

Mr.  Johnson  went  on  to  say  that  he 
was  "directing  the  President's  Science 
Adviser  and  his  Office  of  Science  and 
Technolog>-  to  sponsor  a  thorough  study 
of  energ>-  resources  and  to  engage  the 
necessary  staff  to  coordinate  energj- 
pollcy  on  a  Government- wide  basis." 

Then  In  1970,  only  3  years  ago.  Presi- 
dent Nixon's  blue-ribbon  Cabinet-level 
task  force,  after  considerable  study,  rec- 
ommended that  oil  import  quotas  be 
abolished  to  provide  more  adequate  sup- 
plies at  lesser  prices.  But  this  recommen- 
dation was  not  adopted  until  the  spring 
of  1973  in  the  face  of  strong  opposition 
from  the  domestic  oil  Industry. 

Mr  Chairman,  there  is  no  further  need 
for  study.  There  is.  however,  a  need  for 
effective  action  on  energy  matters — now. 
Recriminations  and  excuses — from  any 
sector  of  our  national  society— will  not 
aid  us  now.  What  we  must  do  is  utilize 
the  recommendations  of  our  distin- 
guished commissions  and  experts  and  in- 
vest heavily  in  areas  of  energj  research 


that  offer  hope  for  tomorrow's  needs.  To- 
day's problems  will  center  on  allocating 
pieces  of  the  shrunken  energy  pie  fairly 
and  equitably— until  tomorrow's  re- 
search can  bear  fruit.  I  trust  this  direc- 
tion can  be  achieved  by  the  direction, 
authorities  and  funding  provided  by  this 
bill. 

Mr.  RHODES.  Mr.  Chairman,  I 
strongly  support  the  bill  under  considera- 
tion. We  need  it.— and  it  comes  In  the 
nick  of  time— to  enable  us  to  respond  to 
our  long-range  energy  problem  with  full 
national  focus,  effectiveness,  and  wiU. 

I  commend  the  chairman  of  the  Gov- 
ernment Operations  Committee.  Chet 
HoLiFiELD.  and  the  able  ranking  minority 
member  of  that  committee,  Frank  Hor- 
TON.  for  their  excellent  work  on  this  im- 
portant measure  and  for  the  fine  ex- 
planatory report  accompanying  this  bill. 

I  note,  for  example,  on  page  20  of  the 
r^ort.  the  committee's  comment  that 
ERDA  should  be  able  to  use  to  good  ad- 
vantage the  types  of  cooperative  arrange- 
ments that  the  AEC  has  successfully 
employed.  I  am  familiar  with  this  cate- 
gory of  relaUvely  complex  but  highlj- 
effecUve  agreements  that  the  AEC  has 
pioneered  so  successfully.  An  excellent 
example  is  the  study  now  underway  pur- 
suant to  a  cooperaUve  agreement  by  the 
AEC.  the  Arizona  Atomic  Energy  Com- 
mission, the  Water  Commission  of  the 
State  of  Arizona,  the  Arizona  Pubhc 
Service  Co..  Tucson  Gas  &  Electric  Co 
and  Salt  River  Project  Agricultural 
Improvement  and  Power  District. 

"Through  an  effective  pooling  of  the 
techmcal  expertise  of  these  agencies  de- 
tailed geological  and  seismological  in- 
vestigations of  mutual  interest  are  being 
conducted,  at  modest,  shared  cost  in  the 
vicinity  of  Yuma  to  ascertain  basic  data 
that  wiU  contribute  to  sound  determina- 
tions respecting  long-range  solutions  to 
water  and  power  needs  of  Arizona  and 
the  Southwest.  The  AEC  has  a  particular 
taterest  m  nuclear  desalting,  to  which 
the  results  of  this  study  may  relate  in 
some  respects,  and  in  a  possible  coordl- 
natlve  relationship  between  aspects  of 
Planning  for  the  power  requirements  of 
Arizona  and  the  discussions  between  the 
umted  SUtes  and  Mexico  regarding  po- 
tential nuclear  desalting  proiects  I  take 
It  that  ERDA  will  continue  with  this 
study,  which  it  will  inherit  as  part  of  the 
functions  transferred  from  the  AEC 

I  endorse  the  validity  and  soundness  of 
the  committee's  comments  in  the  report 
accompanying  this  major  piece  of 
legislation. 

Mr.  ALEXANDER.  Mr.  Chairman  first 
I  would  like  to  commend  the  gentleman 
from  California  (Mr.  Holitiild)  whose 
leadership  is  directed  toward  the  esub- 
llshment  of  an  Energj-  Research  and  De- 
velopment Administration.  His  impor- 
tant work  In  this  field  has  caused  the 
Congress  to  consider  this  Important  mat- 
ter. The  current  energy  shorUge  presents 
a  short-run  crisis  and  a  long-run  chal- 
lenge. 

Most  citizens  cheerfully  accept  a  policy 
of  equal  sacrifice  when  confronted  with 
the  energy  shortage.  And.  Amencans  are 
at  their  best  when  challenged  to  engage 
In  a  grand  enterprise  We,  as  a  Nation 
must  accept  the  challenge. 


42590 


CONGRESSIONA!    KnORP       IK^USE 


December  19,  1973 


One  abundant  source  of  energy  that 
is  available  as  a  substitute  for  foreign 
petroleum  for  power  generation  and  en- 
ergy extraction  is  the  ocean. 

Major  power  generating  concepts  to 
exploit  the  ocean's  potentials  fall  in  two 
categories.  First,  those  which  employ  the 
advantages  of  the  sea  environment,  and 
second,  those  which  derive  pwwer  from 
the  various  forms  of  abundant  energy 
found  in  the  sea.  The  first  category  in- 
cludes powerplants — conventional  and 
nuclear — Installed  on  the  oceam  floor,  on 
artificial  islands,  or  possibly  on  large 
stable  surface  or  subsurface  platforms 
moored  off  the  coast  This  category  also 
would  include  powerplants  built  on  shore 
with  their  cooling  water  intakes  and  dis- 
charges located  seaward  to  minimize 
thermal  or  antiesthetlc  effects. 

The  second  category  encompasses  gen- 
eration of  electric  power  from  the  energy 
of  ocean  tides,  waves,  currents,  thermal 
gradients,  winds,  geothermal  sources, 
and  other  sources.  The  leading  oceans' 
energy  source  now  and  for  the  foreseeable 
future,  however,  is  offshore  oil  and  gas 

The  following  topics  are  briefly  dis- 
cussed: 

1    Offshore  Oil  and  G«s 

2.  Offshore  Nuclear  Powerplants. 

3  Tld*!  Power  Project* 

4  Offshore  Wind  Power  Concept 

5.  Sea-Based  Solar  Power  System  (Thermal 
Or»dlent) 

6  Wave  Energy  Converters 

7  Nuclear  Fusion  Using  Deuterium  From 
Sea  Water 

1.  orrsHORZ   ou.    and   gas 

Geologists  regard  the  Outer  ConUnen- 
tal  Shelf  and  slope  of  the  United  States 
and  offshore  Alaska  to  be  generally  fa- 
vorable prospective  areas  for  oil  and  gas 
Recoverable  hydrocarbon  resources  on 
our  Outer  Continental  Shelf  have  been 
estimated  by  the  US.  Geological  Siirvey 
to  be  upwards  of  160  billion  barrels  of 
crude  oil — four  times  proven  reserves  at 
year-end  1972 — and  upwards  of  800  tril- 
lion cubic  feet  of  natural  gas — 3  times 
proven  reserves  at  year-end  1972  Com- 
parable amounts  are  also  possible  on  the 
Continental  Slope  How  much  will  even- 
tually be  found  or  produced  from  either 
of  these  areas  will  depend  on  technical, 
economic,  and  political  factors.  Offshore 
production  is  already  established  in 
Louisiana.  Alaska,  and  California. 

Offshore  oil  and  gas  drilling  and  pro- 
ducing operations  encounter  substan- 
tially different  environmental  conditions 
from  those  onshore  In  addition  the  off- 
shore, being  in  the  public  domain,  sup- 
ports a  complex  and  varied  mix  of  ac- 
ti\ities— f^hing.  shipping,  recreation, 
and  defense  as  well  as  exploitation  of 
the  mineral  and  petroleum  resources  be- 
neath the  sea. 

New  technology  must  be  developed  to 
place  well  heads  and  production  systems 
on  the  sea  bottom,  thus  allowing  a  break- 
away from  the  surface  to  concentrate  on 
totally  submerged  operations  In  an  en- 
vironment unaffected  by  weather  This 
technology'  should  cause  the  curves  that 
show  costs  rapidly  rising  with  depth  to 
be  discarded  and  replaced  by  ones  that 
Increase  only  moderately  with  depth. 
The  near  term  goal  is  to  have  wells  eco- 
nomical in  1.000  feet  of  water.  Such  sys- 
tems will  be  beyond  the  reach  of  stomu. 


high  seas,  and  ship  traffic — hazards  to 
which  fixed  production  platforms  that 
extend  above  sea  level  are  now  exposed. 
Subsea  systems,  of  course,  have  potiential 
hazards  of  their  own,  but  there  seems  to 
be  no  fundamental  reason  why  they 
could  not  be  handled. 

It  should  be  noted  that  of  the  more 
than  17.000  wells  drilled  in  our  offshore 
only  a  handful  caused  problems,  and 
there  seems  to  be  little  hard  evidence  of 
long-term  environmental  damage  from 
those  that  did  Prom  experience  in  oil 
production  in  the  Gulf  it  is  argued  that 
less  contamination  of  the  ocean  results 
from  offshore  drilling,  production,  and 
pipelining  to  shore  than  by  shipping  in  a 
like  amount  of  oil  by  tankers. 

Pinancmg  offshore  exploration,  drill- 
ing, and  production  can  and  should  be 
done  by  the  petroleum  industry.  How- 
ever, since  such  operations  will  be  done 
in  areas  largely  under  Federal  jurisdic- 
tion, it  will  be  necessary  for  Government 
to  establish  regulations  that  will  pro- 
vide protection  for  the  ocean  environ- 
ment and  compatibility  of  petroleum  op- 
erations with  other  activities  within  the 
coastal  zone,  while  allowing  proper  in- 
centives for  capital  funds  required  to  de- 
velop these  offshore  petroleum  resources. 
Also,  regulation  should  not  be  such  as  to 
Jeopardize  other  international  positions 
on  offshore  questions. (1) 

The  combination  of  SPMs  and  accel- 
erated offshore  leasing  offers  the  shortest 
leadtime  for  increasing  crude  oil  capac- 
ity It  has  been  recommended  that  as  a 
quick  fix  the  United  States  have  at  least 
one  deepwater  single-point  mooring 
terminal  operational  in  the  gulf  by  1976. 
and  have  at  least  one  deepwater  single- 
point  mooring  terminal  operational  off 
the  east  coast  by  1978  Some  such  facility 
will  eventually  be  needed  on  the  west 
coast,  but  its  nature,  because  of  the  dif- 
ferent alternatives  and  different  condi- 
tions, is  not  as  easily  determined.*  1  > 
2.   orrsHoas   NtrciCAS   powibpi^nts 

Siting  is  a  problem  for  energy-related 
facilities  Terminals  associated  with  im- 
ports or  offshore  development  must  be  in 
the  coastal  zone  While  other  facilities, 
such  as  refineries  and  powerplants,  can 
be  located  elsewhere,  cooling  water  avail- 
ability and  reasonable  access  to  the  con- 
sumer make  the  coastal  zone  attractive 

Nuclear  generating  plants  are  destined 
to  play  an  increasmgly  important  role  in 
meeting  the  Nation's  electrical  energy 
needs  Today,  there  are  34  operable  nu- 
clear powerplants  in  the  United  States: 
they  provide  a  capacity  of  about  19  giga- 
watts — billions  of  watts — which  Is  ap- 
proximately 4  percent  of  the  Nation's 
electric  power  capacity  Fifty-seven  new 
nuclear  plants  are  under  construction, 
and  80  more  have  been  ordered  Nuclear 
plants  are  expected  to  proliferate  for  the 
balance  of  the  century  at  a  rate  ap- 
proaching 20  percent  per  year  By  the 
year  2000.  Installed  nuclear  capacity  Is 
expected  to  be  1.200  glga watts  and  to 
make  up  roughly  half  of  our  total  elec- 
trical generating  capacity. 

One  of  the  unavoidable  byproducts  of 
electrical  generating  systems,  whether 
fueled  by  nucleon.  coal.  oU.  or  gas.  is 
waste  heat  In  general  the  conversion  of 
Btu  into  electrical  energy  requires  the 


release  of  2  Btu's  to  the  environment  as 
discarded  or  waste  energy.  The  rejected 
heat  i.s  normally  trajisferred  to  a  supply 
of  cooling  water  taken  from  and  returned 
to  a  river,  lake,  or  the  ocean,  or  recycled 
through  a  cooling  tower  or  pond  where 
some  of  the  water  is  consumed  by  evapo- 
ration. 

The  point  Is.  the  waste  heat  must  be 
dissipated  somewhere  into  the  environ- 
ment or  used  for  purposes  other  than 
conversion  to  electricity  Improved  pow- 
erplant  efficiency  can  help  extend  our 
fuel  supplies  and  also  lessen  cooling  re- 
quirements. Since  the  oceans  contain 
over  97  percent  of  the  worlds  water, 
their  use  as  a  heat  sink  should  have  the 
least  noUceable  effect  on  the  environ- 
ment. Many  electrical  generating  plants 
should  thus  be  sited  to  take  advantage 
of  the  excellent  heat  absorbing  capacity 
provided  by  the  oceans.  The  heat  capac- 
ity of  the  world  oceans  is  estimated  to 
be  54  X  10"  Btu  per  degree  centi- 
grade.i2i  Nine  nuclear  powerplants  In 
the  United  States  are  presently  in  oper- 
ation at  sites  on  bays  or  tidal  rivers.  The 
influence  of  their  cooling  water  dis- 
charges into  the  ocean  can  be  mini- 
mized with  detailed  knowledge  of  the 
existing  physical  and  biological  factors. 

If  upward  of  1.000  nuclear  plants  are 
required  by  the  end  of  the  century,  as  Is 
anticipated  by  some  projections,  some 
fraction  should  and  will  be  situated  in 
the  coastal  zone  To  accommodate  them, 
new  approaches  to  coastal  siting  are 
being  explored  with  an  eye  to  conserving 
land.  One  is  the  construction  of  so- 
called  nuclear  parks  in  which  a  num- 
ber of  nuclear  generating  stations  would 
be  clustered  at  a  single  location.  Another 
sites  nuclear  powerplants  offshore  on 
floating  'islands"  inside  protective  break- 
waters. Other  energy  generation  and  en- 
ergy conversion  facilities  can  be  envi- 
sioned that  would  benefit  by  ocean 
sitings. 

Several  advantages  of  offshore  siting 
of  nuclear  powerplants  can  be  identified. 
First,  most  coastal  land  could  be  re- 
tained for  recreation  or  for  wildlife  pre- 
serves. Second,  adequate  cooUng  water 
could  be  obtained  without  the  often 
severe  problems  associated  with  thermal 
discharges  in  restricted  water  Third. -by 
placing  the  facilities  remote  from  people 
and  in  many  cases  placing  them  on  the 
bottom,  well  below  the  turbulent  environ- 
ment of  the  surface.  It  is  possible  to  de- 
sign in  much  improved  safety  features. 
In  short,  progress  does  not  have  to  mean 
a  degraded  environment  <  1) 

3.    TIDAL    POWKX    PBOJICTS 

The  concept  of  harnessing  tides  as  a 
commercial  source  of  electrical  pwwer  has 
been  studied  by  several  countries  in  close 
proximity  to  large  tidal  channels,  spe- 
cifically In  Prance.  Australia.  Siberia. 
Canada,  and  the  United  States  One  ex- 
ample dramatizing  feasibility  of  such  a 
project  Ls  the  International  Passama- 
quoddy  tidal  power  project  between 
Maine  and  New  Brunswlck.i3>  Tidal 
power  has  not  been  as  economically  suc- 
cessful as  hydroelectric  power  One  rea- 
son Is  that  capital  costs  of  tidal  plants 
have  been  considerably  higher  Two  full- 
scale  modem  tidal  powerplants  have  been 
built.  One.  at  the  estuary  of  the  Ranee 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


River  on  the  coast  of  Brittany  in  France, 
was  built  in  1966  with  a  capacity  of  20() 
megawatts.  Another  is  at  Kislaya  Guba 
in  the  Soviet  Union.  1 9 ) 

The  total  tidal  power  dissipated  by  the 
Earth  is  estimated  at  1  4  bUlion  kilowatts, 
of  which  1.1  billion  kilowatts  is  accounted 
for  by  oceanic  tidal  friction  in  bays  and 
estuaries  around  the  world  and  can  be 
captured  and  converted  to  electric  power. 
In  spite  of  the  huge  potential,  this  en- 
ergy source  is  scarcely  utilized  because 
practical  development  is  very  difficult. 
However,  various  possibilities  have  been 
and  are  being  studied  in  geographic  areas 
where  the  tidal  behavior,  range,  and 
water  displacement  are  most  favorable 
<4' 

PASSAMAQUODDT    POWEB    PROJECT 

t-'NmrD    STATES 'CANADA 

An  eminent  American  engineer.  Dex- 
ter P.  Cooper,  proposed  a  plant  in  1919 
to  harness  the  high  tides  in  the  Passa- 
maquoddy  area.  Electric  power  was  to  be 
generated  by  building  dams  and  sluice- 
ways in  the  openings  Into  the  Bay  of 
Pundy  and  a  powerhouse  between  Pas- 
samaquoddy  Bay  and  Cobscook  Bay.  The 
proposal  lay  dormant  until  1956  when 
the  International  Passamaquoddy  E^ngl- 
neering  Board  was  appointed  jointly  by 
Canada  and  the  United  States.  The  board 
determined  that  a  tidal  power  project 
could  be  built  and  operated  in  the  Pas- 
samaquoddy area  and  that  a  two-pool 
arrangement  was  best  suited  for  the  site 
and  water  conditions  of  Passamaquoddy 
and  Cobscook  Bays. 

In  April  1961.  the  International  Joint 
Commission— IJC— declared  that  the 
Passamaquoddy  Tidal  Power  Project  was 
not  economically  feasible  under  present 
conditions.  However,  the  IJC  said  that 
the  combination  of  the  Passamaquoddy 
Tidal  Power  Project  with  incremental 
capacity  at  Rauben  Rapids  on  the  Upper 
St.  John  appeared  feasible.  In  May  1961, 
the  Secretary  of  the  Interior  was  re- 
quested by  the  President  to  review  and 
evaluate  the  report. 

In  December  1961,  the  Passamaquoddy 
Upper  St.  John  Study  Committee  of  the 
Department  of  Interior  had  a  load-and- 
resources  study  made  In  the  New  Bruns- 
wick. Canada-New  England  areas.  Its 
study  clearly  Indicated  that  the  Passa- 
maquoddy Tidar  Power  Project  would  be 
feasible  if  developed  as  a  peaking  power 
plant  sized  for  1,000  megawatts  Instead 
of  300  megawatts  as  studied  in  the  IJC 
report.  This  is  consistent  with  current 
pracUces  In  the  electric  utility  industry 
that  tends  increasingly  to  use  large 
thermal  conventional  nuclear  electric 
generating  units  to  meet  the  base  load 
and  to  use  conventional  and  pumped- 
storage  hydroelectric  power  to  meet 
peak  demands.  The  study  concluded  that 
the  project  was  economically  feasible— 
beneflt-cost  or  B/C  ratio  of  1  27/1  0— 
and  should  be  initiated. 

In  order  to  validate  the  recommenda- 
tions, a  review  of  power  values  used  in 
the  Department  of  the  Interior  report 
was  made  by  the  Federal  Power  Com- 
mission at  the  request  of  the  Bureau  of 
the  Budget.  Due  to  the  then-lower  power 
values  published,  the  benefit-cost— 
B/C— ratio  dropped  from  1.27/1  to 
CXnC 3683— Part  33 


42591 


0.89/1.  As  a  result,  further  action  of  the 
project  was  stopped. (3) 

The  Passamaquoddy  project  has  been 
carefully  investigated  and  analyzed  as 
long  ago  as  1922  and  again  in  the  eariy 
1960s.  However,  the  latest  report  pub- 
lished in  1965,  indicated  an  unfavorable 
benefit/cost  ratio  of  .86  to  1. 
Some  of  the  problems  include: 
Meshing  the  output  generated  during 
periods  of  high  tide  with  periods  of  maxi- 
mum needs;  that  is.  peaking  power 
requirements. 

The  average  high  tide  is  18  feet  but 
only  12  feet  of  this  head  can  be  used. 
Designing  turbines  to  operate  cheaply 
enough  at  low  heads  is  still  a  problem. 
The  dikes  necessary  to  form  a  high 
pool  are  expensive  in  that  they  must  ex- 
tend 300  feet  through  unconsolidated 
material  to  hit  bedrock. 

Political  problems  arise  from  the  fact 
that  Passamaquoddy  would  be  a  Federal 
development  In  a  non-Federal,  that  is. 
private  utility  area— and  also  its  inter- 
national location.*  4) 

In   October   1969,   the  Atlantic   Tidal 
Power  Programming  Board  submitted  a 
report  to  the  Government  of  Canada  and 
the    Provincial    governments    of    New 
Brunswick  and  Nova  Scotia  on  the  feasi- 
bility of  tidal  power  development  in  the 
Bay  of  Fundy.  Twenty-three  sites  were 
examined  and  the  three  sites  which  ap- 
peared to  offer  the  best  posslbDities  for 
economic      power      development      were 
studied  in  detail.  It  was  found  that  the 
three  sites  could  be  developed  to  produce 
in  excess  of  13  million  megawatt-hours 
of  electric  energy  annuaUy,  but  that  de- 
velopment  would   not   be   economically 
feasible  under  prevailing  circumstances. 
The  board  recommended  that  additional 
detailed  studies  of  tidal  power  develop- 
ment in  the  Bay  of  Pimdy  be  authorized 
when:  First,  the  interest  rate  on  money 
drops  sufficiently  to  suggest  the  possi- 
bility of  an  economic  development;  sec- 
ond, a  major  breakthrough  in  construc- 
tion costs  or  in  the  cost  of  generating 
equipment  suggests  the  possibility  of  de- 
signing an  economic  tidal  power  develop- 
ment;   third,    pollution    abatement   re- 
quirements magr^y,   substantially,   the 
cost  of  using  alternative  sources  of  pow- 
er;  or,  fourth,  alternative  sources  of  a 
more  economic  power  supply  become  ex- 
hausted.<5) 

RANCX    TffiAL    PROJECT — FKANCK 

The  only  actual  development  for  tidal 
electric  power  under  full-scale  construc- 
tion is  the  Ranee  tidal  project  in  Prance, 
the  largest  such  project  in  the  world! 
The  capital  Investment  is  estimated  to 
be  over  $100  million.* 4)  It  has  an  Initial 
power  installation  of  240  megawatts  in 
24  turbine  sets  and  could  have  an  ulti- 
mate installation  of  320  megawatts.  It 
represents  the  continued  effort  of  French 
engineers  over  a  20 -year  period  to  har- 
ness the  tides  at  San  Malo  where  ideal 
conditions  exist — a  narrow  estuary  with 
a  tidal  range  of  IS'^  meters — about  44 
feet.  The  Ranee  tidal  project  is  operated 
for  peaking  capacity  or  energy.  Since 
the  units  are  reversible,  the  project  is  de- 
signed to  take  maximum  advantage  of 
the  fiood  and  ebb  tides  to  supply  power 
to  the  French  electric  system. i3) 


4.   OFFSHORE   WIND  POWER  CONCEPT 

Solar  energy  sustains  the  winds  It  is 
calculated  that  the  power  potential  In 
the  winds  over  the  continental  United 
States,  the  Aleutian  arc,  and  the  East- 
em  seaboard  is  about  10  "  kilowatts  elec- 
tric. Winds  are  remarkably  r^>eatable 
and  predictable.  The  momentum  in  mov- 
ing air  can  be  extracted  by  momentum- 
interchange  machines  located  in  suitable 
places  such  as  plains,  valleys,  and  along 
the  continental  coastal  shelves. 

A  desirable  windpower  svstem  incor- 
porates Its  own  storage  and  its  own  peak- 
ing capability.  It  is  thus  able  to  span 
between  variable  wind  to  patterned  elec- 
tricity consumer  demand.  This  system 
could  be  nearly  pollution-free.  The  elec- 
trical energy  generated  by  the  aerotur- 
blnes  located  offshore  Is  used  to  electro- 
lyze  water.  The  hydrc^en  thus  produced 
is  transmitted  by  pipeline  to  shore  or 
compressed  and  stored  for  use  during 
calm  periods.  In  such  a  manner  hydro- 
gen can  be  supplied  on  a  continuous  basis 
to  fuel  cell  or  thermal  electric  generating 
stations.  It  should  be  emphasized  that 
the  offshore-hydrogen  storage  approach 
is  only  one  of  several  worthv  of  explora- 
tion. 

There  was  a  mature  technology  for 
wind-power  60  years  ago.  Steadv  im- 
provement was  made  through  the  1950's 
directed  toward  large-scale  applications. 
In  1915,  100  megawatt  of  electricity  were 
being  generated  by  windpower  in  Den- 
mark. 

Today  electricity  brought  in  by  cable 
from  Sweden's  hydroelectric  plant  is  less 
expensive.  In  the  1940's  a  1.25-mega- 
watt  machine  was  built  and  operated  at 
Grandpa's  Knob,  Vt..  but  was  shut  down 
by  a  materials  failure  of  the  blade  A 
conc^tual  design  using  aeroturbines  to 
produce  160  bUlion  kilowatt  hours  of 
electricity  per  year  has  recenUv  been 
completed  for  the  offshore  New  England 
region. (15)  TWs  prellmlnarv  study  shows 
that  the  electrical  power  when  used  to 
produce  hydrogen  which  is  then  piped 
ashore  for  consumption  in  powerplants 
Is  cost  compeUUve  with  conventional 
methods  of  producing  electric  power 

The  limiting  factors  in  the  large  scale 
application  of  windpower  are  a  combina- 
tion of  available  wind  energy  and  weath- 
er modification.  The  effect  of  large  num- 
bers of  closely  spaced  windmills  has  not 
been  assessed.  There  are  no  known  tech- 
nological limitations  to  the  application  of 
windpower.  (10). 

MAXIMUM    ELECTRICAL    ENERGY    PRODOCTION    FROM 
WIND  POWER 
nOowJtt-ttoursI 


AniHMl 


Sits 


praduction 


Maiimufn 

possibk 

by  )r»»f- 


0)  Offshore,  New  EngUnd 159x10* 

(2)  Offstiori,  New  Engtind 3ltxlOi 

(3)  Offshore,    Etstern    Seibotrd. 

ilonj  the  100m  contouri 
Ambrose  shippini  chinnej 
south  to  ChirWston,  S.C    ..      283xl0> 

(4)  Alonj  the  !■*  Aus.  Lake  Su- 

perior (»Oni) 35X10* 

(5)  Aioni    the    N-S    Axis,    Lak* 

MidHfin  (220m) 29X10* 

(8)  AloritU    N-S    Am.    LJii 

Huron(160m) 23X10* 

(7)Ak»|   the    W-E    Axis,    Ltkt 

Erw(200m) 23xlO» 


1990 
2000 


2000 
2000 

2000 
2000 

2000 


42590 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


One  abundant  source  of  energy  that 
is  a%'ailable  as  a  substitute  for  foreign 
petroleum  for  power  generation  and  en- 
ergy extraction  Is  the  ocean. 

Major  power  generating  concepts  to 
exploit  the  ocean's  potentials  fall  in  two 
categories:  First,  those  which  employ  the 
advantages  of  the  sea  environment,  and 
second,  those  which  derive  power  from 
the  various  forms  of  abundant  energy 
found  in  the  sea.  The  first  category  in- 
cludes powerplants — conventional  and 
nuclear — Installed  on  the  ocean  floor,  on 
artificial  Islands,  or  possibly  on  large 
stable  surface  or  subsurface  platforms 
moored  off  the  coast.  This  category  also 
would  include  powerplants  built  on  shore 
with  their  cooling  water  intakes  and  dis- 
charges located  seaward  to  minimize 
thermal  or  antlesthetlc  effects. 

The  second  categor>-  encompasses  gen- 
eration of  electric  power  from  the  energy 
of  ocean  tides,  waves,  currents,  thermal 
gradients,  winds,  geothermal  sources, 
and  other  sources.  The  leading  oceans' 
energy  source  now  and  for  the  foreseeable 
future,  however,  is  offshore  oil  and  gas. 

The  following  topics  are  briefly  dis- 
cussed: 

1  Offshore  Otl  and  Gas 

2  Offshore  Nuclear  Powerplants. 

3  Tidal  Power  Projects 

4  Offshore  Wind  Power  Concept 

5.  Sea-Based  Solar  Power  System  (Thermal 
Gradient). 

6  Wave  Energy  Converters. 

7  Nuclear  Fusion  Using  Deutertum  Prom 
Sea  Water 

1    orrsHoar   on.    A^^>   gas 

Geologists  regard  the  Outer  Continen- 
tal Shelf  and  slope  of  the  United  States 
and  offshore  Alaska  to  be  generally  fa- 
vorable prospective  areas  for  oU  and  gas 
Recoverable  hydrocarbon  resources  on 
our  Outer  Continental  Shelf  have  been 
estimated  by  the  U.S.  Geological  Survey 
to  be  upwards  of  160  billion  barrels  of 
crude  oil — four  times  proven  reserves  at 
year-end  1972 — and  upwards  of  800  tril- 
lion cubic  feet  of  natural  gas — 3  times 
proven  reserves  at  year -end  1972  Com- 
parable amounts  are  also  possible  on  the 
Continental  Slope  How  much  will  even- 
tually be  found  or  produced  from  either 
of  these  areas  will  depend  on  technical, 
economic,  and  political  factors  Offshore 
production  is  already  established  In 
Louisiana.  Alaska,  and  California. 

Offshore  oil  and  gas  drilling  and  pro- 
ducing operations  encounter  substan- 
tially different  environmental  conditions 
from  those  onshore.  In  addition  the  off- 
shore, being  in  the  public  domain,  sup- 
ports a  complex  and  varied  mix  of  ac- 
tivities—flshing.  shipping,  recreation, 
and  defense  as  well  as  exploitation  of 
the  mineral  and  petroleum  resources  be- 
neath the  sea. 

New  technology-  must  be  developed  to 
place  well  heads  and  production  systems 
on  the  sea  bottom,  thus  allowing  a  break- 
away from  the  surface  to  concentrate  on 
totally  submerged  operations  In  an  en- 
vironment unaffected  by  weather  This 
technology  should  cause  the  curves  that 
show  costs  rapidly  rising  with  depth  to 
be  discarded  and  replaced  by  ones  that 
Increase  only  moderately  »1th  depth. 
The  near  term  goal  is  to  have  wells  eco- 
nomical in  1.000  feet  of  water  Such  sys- 
tems will  be  beyond  the  reach  of  storms. 


high  seas,  and  ship  traffic — hazards  to 
which  fixed  production  platforms  that 
extend  above  sea  level  are  now  exposed. 
Subsea  systems,  of  course,  have  potential 
hazards  of  their  own.  but  there  seems  to 
be  no  fundamental  reason  why  they 
could  not  be  handled. 

It  should  be  noted  that  of  the  more 
than  17.000  wells  drilled  In  our  offshore 
only  a  handful  caused  problems,  and 
there  seems  to  be  little  hard  evidence  of 
long-term  environmental  damage  from 
those  that  did.  From  experience  in  oil 
production  in  the  Gulf  it  is  argued  that 
less  contamination  of  the  ocean  results 
from  offshore  drilling,  production,  and 
pipelining  to  shore  than  by  shipping  in  a 
like  amount  of  oil  by  tankers. 

Financing  offshore  exploration,  drill- 
ing, and  production  can  and  should  be 
done  by  the  petroleum  Industry.  How- 
ever, since  such  operations  will  be  done 
in  areas  largely  under  Federal  jurisdic- 
tion, it  will  be  necessary  for  Government 
to  establish  regulations  that  will  pro- 
vide protection  for  the  ocean  environ- 
ment and  compatibility  of  petroleum  op- 
erations with  other  activities  within  the 
coastal  zone,  while  allowing  proper  in- 
centives for  capital  funds  required  to  de- 
velop these  offshore  petroleum  resources. 
Also,  regulation  should  not  be  such  as  to 
jeopardize  other  international  positions 
on  offshore  questions. (1) 

The  combination  of  SPMs  and  accel- 
erated offshore  leasing  offers  the  shortest 
rtlme  for  Increasing  crude  oil  capac- 
It  has  been  recommended  that  as  a 
quick  fix  the  United  States  have  at  least 
one  deepwater  single-point  mooring 
terminal  operational  in  the  gulf  by  1976. 
and  have  at  least  one  deepwater  single- 
point  mooring  terminal  operational  off 
the  east  coast  by  1978  Some  such  facility 
will  eventually  be  needed  on  the  west 
coast;  but  its  nature,  because  of  the  dif- 
ferent alternatives  and  different  condi- 
tions, is  not  as  easily  determined.d) 
».  orrsHOKX   nuci.£a«  powsapxjkNxs 

Siting  is  a  problem  for  energ>'-related 
facilities.  Terminals  associated  with  im- 
ports or  offshore  development  must  be  in 
the  coastal  zone.  While  other  facilities, 
such  as  refineries  and  powerplants.  can 
be  located  elsewhere,  cooling  water  avail- 
ability and  reasonable  access  to  the  con- 
sumer make  the  coastal  zone  attractive. 

Nuclear  generating  plants  are  destined 
to  play  an  increasingly  important  role  In 
meeting  the  Nations  electrical  energy- 
needs.  Today,  there  are  34  operable  nu- 
clear powerplants  In  the  United  States; 
they  provide  a  capacity  of  about  19  glga- 
watts — billions  of  watts — which  is  ap- 
proximately 4  percent  of  the  Nation's 
electric  power  capacity.  Fifty-seven  new 
nuclear  plants  are  under  construction, 
and  80  more  have  been  ordered  Nuclear 
plants  are  expected  to  proliferate  for  the 
balance  of  the  century  at  a  rate  ap- 
proaching 20  p>ercent  per  year.  By  the 
year  2000.  Installed  nuclear  capacity  Is 
expected  to  be  1.200  glga watts  and  to 
make  up  roughly  half  of  our  total  elec- 
trical generating  capacity. 

One  of  the  unavoidable  byproducts  of 
electrical  generating  systems,  whether 
fueled  by  nucleon.  coed,  oU.  or  gas,  Is 
waste  heat.  In  general  the  conversion  of 
Btu  into  electrical  energy  requires  the 


release  of  2  Btu's  to  the  environment  as 
discarded  or  waste  energy.  The  rejected 
heat  is  normally  transferred  to  a  supply 
of  cooling  water  taken  from  and  returned 
to  a  river,  lake,  or  the  ocean,  or  recycled 
through  a  cooling  tower  or  pond  where 
some  of  the  water  is  consumed  by  evapo- 
ration. 

The  point  Is,  the  waste  heat  must  be 
dissipated  somewhere  into  the  environ- 
ment or  used  for  purposes  other  than 
conversion  to  electricity  Improved  pow- 
erplant  efficiency  can  help  extend  our 
fuel  supplies  and  also  lessen  cooling  re- 
quirements. Since  the  oceans  contain 
over  97  percent  of  the  world's  water, 
their  use  as  a  heat  sink  should  have  the 
least  noticeable  effect  on  the  environ- 
ment. Many  electrical  generating  plants 
should  thus  be  sited  to  take  advantage 
of  the  excellent  heat  absorbing  capacity 
provided  by  the  oceans.  The  heat  capac- 
ity of  the  world  oceans  is  estimated  to 
be  54X10"  Btu  per  degree  centi- 
grade.(2>  Nine  nuclear  powerplants  in 
the  United  States  are  presently  in  oper- 
ation at  sites  on  bays  or  tidal  rivers.  The 
Influence  of  their  cooling  water  dis- 
charges Into  the  ocean  can  be  mini- 
mized with  detailed  knowledge  of  the 
existing  physical  and  biological  factors. 

If  upward  of  1,000  nuclear  plants  are 
required  by  the  end  of  the  century,  as  Is 
anticipated  by  some  projections,  some 
frsurtion  should  and  wUl  be  situated  in 
the  coastal  zone.  To  accommodate  them, 
new  approaches  to  coastal  siting  are 
being  explored  with  an  eye  to  conserving 
land.  One  is  the  construction  of  so- 
called  nucleair  parks  In  which  a  num- 
ber of  nuclear  generating  stations  would 
be  clustered  at  a  single  location.  Another 
sites  nuclear  powerplants  offshore  on 
floating  "islands"  inside  protective  break- 
waters Other  energy  generation  and  en- 
ergy converslMi  facilities  can  be  envi- 
sioned that  would  benefit  by  ocean 
sitings. 

Several  advantages  of  offshore  siting 
of  nuclear  powerplants  can  be  identified. 
First,  most  coastal  land  could  be  re- 
tained for  recreation  or  for  wildlife  pre- 
serves. Second,  adequate  cooling  water 
could  be  obtained  without  the  often 
severe  problems  associated  with  thermal 
discharges  in  restricted  water.  Third,  by 
placing  the  facilities  remote  from  people 
and  in  many  cases  placing  them  on  the 
bottom,  well  below  the  turbulent  environ- 
ment of  the  surface.  It  Is  possible  to  de- 
sign In  much  Improved  safety  features. 
In  short,  progress  does  not  have  to  mean 
a  degraded  environment. ( 1) 

3.    TIDAL    POWZX    PBOJBCTS 

The  concept  of  harnessing  tides  as  a 
commercial  source  of  electrical  power  has 
been  studied  by  several  countries  In  close 
proximity  to  large  tidal  channels,  spe- 
cifically in  France.  Australia.  Siberia. 
Canada,  and  the  United  States.  One  ex- 
ample dramatizing  feasibility  of  such  a 
project  is  the  international  Passama- 
quoddy  tidal  power  project  between 
Maine  and  New  Brunswick  (3 >  Tidal 
power  has  not  been  as  economically  suc- 
cessful as  hydroelectric  power  One  rea- 
son Is  that  capital  costs  of  tidal  plants 
have  been  considerably  higher  Two  full- 
scale  modem  tidal  powerplants  have  been 
built.  One.  at  the  estuary  of  the  Ranee 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


River  on  the  coast  of  Brittany  in  France, 
was  built  In  1966  with  a  capacity  of  200 
megawatts.  Another  is  at  Kislaya  Cuba 
In  the  Soviet  Union.  1 9 ) 

The  total  tidal  power  dissipated  by  the 
Earth  is  estimated  at  1  4  billion  kilowatts, 
of  which  1.1  billion  kilowatts  is  accounted 
for  by  oceanic  tidal  friction  in  bays  and 
estuaries  around  the  world  and  can  be 
captured  and  converted  to  electric  power. 
In  spite  of  the  huge  potential,  this  en- 
ergy source  Is  scarcely  utilized  because 
practical  development  Is  very  difficult. 
However,  various  possibilities  have  been 
and  are  being  studied  in  geographic  areas 
where  the  tidal  behavior,  range,  and 
water  displacement  are  most  favorable. 
i4> 

PASSAMAQDOOOT    POWER    PROJECT 

UNmn    STATES  ^CANADA 

An  eminent  American  engineer.  Dex- 
ter P.  Cooper,  proposed  a  plant  In  1919 
to  harness  the  high  tides  in  the  Passa- 
maquoddy  area.  Electric  power  was  to  be 
generated  by  building  dams  and  sluice- 
ways In  the  openings  into  the  Bay  of 
Fimdy  and  a  powerhouse  between  Pas- 
samaquoddy  Bay  and  Cobscook  Bay.  The 
proposal  lay  dormant  until  1956  when 
the  International  Passamaquoddy  Engi- 
neering Board  was  appointed  jointly  by 
Canada  and  the  United  States.  The  board 
determined  that  a  tidal  power  project 
could  be  built  and  operated  in  the  Pas- 
samaquoddy area  and  that  a  two-jxxjl 
arrangement  was  best  suited  for  the  site 
and  water  conditions  of  Passamaquoddy 
and  Cobscook  Bays. 

In  April  1961.  the  International  Joint 
Commission — IJC — declared  that  the 
Passamaquoddy  Tidal  Power  Project  was 
not  economically  feasible  under  present 
conditions.  However,  the  IJC  said  that 
the  combination  of  the  Passamaquoddy 
Tidal  Power  Project  with  incremCTital 
capacity  at  Rauben  Rapids  on  the  Upper 
St.  John  appeared  feasible.  In  May  1961, 
the  Secretary  of  the  Interior  was  re- 
quested by  the  President  to  review  and 
evaluate  the  report. 

In  E)ecember  1961,  the  Passamaquoddy 
Upper  St.  John  Study  Committee  of  the 
Department  of  Interior  had  a  load-and- 
resources  study  made  in  the  New  Brims- 
wlck,  Canada-New  England  areas.  Its 
study  clearly  indicated  that  the  Passa- 
maquoddy Tidar  Power  Project  would  be 
feasible  if  developed  as  a  peaking  power 
plant  sized  for  1.000  megawatts  Instead 
of  300  megawatts  as  studied  in  the  IJC 
report.  This  is  consistent  with  current 
practices  in  the  electric  utility  industry 
that  tends  Increasingly  to  use  large 
thermal  conventional  nuclear  electric 
generating  units  to  meet  the  base  load 
and  to  use  conventional  and  pumped- 
storage  hydroelectric  power  to  meet 
peak  demands.  The  study  concluded  that 
the  project  was  economically  feasible — 

benefit-cost  or  B/C  ratio  of  1.27/1.0 

and  should  be  initiated. 

In  order  to  validate  the  recommenda- 
tions, a  review  of  power  values  used  in 
the  Department  of  the  Interior  report 
was  made  by  the  Federal  Power  Com- 
mission at  the  request  of  the  Bureau  of 
the  Budget.  Due  to  the  then-lower  power 
values  published,  the  benefit-cost— 
B,C— ratio  dropped  from  1.27/1  to 
CXIX 2982— Part  33 


42591 


0.89/1.  As  a  result,  further  action  of  the 
project  was  stopped.O) 

The  Passamaquoddy  project  has  been 
carefully  Investigated  and  analyzed  as 
long  ago  as  1922  and  again  in  the  early 
1960's.  However,  the  latest  report,  pub- 
lished in  1965,  indicated  an  unfavorable 
benefit/cost  ratio  of  .86  to  1. 
Some  of  the  problems  include: 
Meshing  the  output  generated  during 
periods  of  high  tide  with  periods  of  maxi- 
mum needs;  that  is.  peaking  power 
requirements. 

The  average  high  tide  is  18  feet  but 
only  12  feet  of  this  head  can  be  used. 
Designing  turbines  to  operate  cheaply 
enough  at  low  heads  Is  still  a  problem. 
The  dikes  necessary  to  form  a  high 
pool  are  expensive  in  that  they  must  ex- 
tend 300  feet  through  unconsolidated 
material  to  hit  bedrock. 

Political  problems  arise  from  the  fact 
that  Passamaquoddy  would  be  a  Federal 
development  In  a  non-Federal,  that  is, 
private  utility  area— and  also  its  inter- 
national location.  (4  > 

In  October   1969.   the   Atlantic   Tidal 
Power  Programming  Board  submitted  a 
report  to  the  Government  of  Canada  and 
the    Provincial    governments    of    New 
Brunswick  and  Nova  Scotia  on  the  feasi- 
bility of  tidal  power  development  in  the 
Bay  of  Fundy.  Twenty-three  sites  were 
examined  and  the  three  sites  which  ap- 
peared to  offer  the  best  posslbUitles  for 
economic      power      development      were 
studied  in  detail.  It  was  found  that  the 
three  sites  could  be  developed  to  produce 
in  excess  of  13  million  megawatt-hours 
of  electric  energy  annually,  but  that  de- 
velopment  would    not    be    economically 
feasible  under  prevailing  circumstances. 
The  board  recommended  that  additional 
detailed  studies  of  tidal  power  develop- 
ment in  the  Bay  of  Fundy  be  authorized 
when:  First,  the  interest  rate  on  money 
drops  sufficiently  to  suggest  the  possi- 
bility of  an  economic  development;  sec- 
ond, a  major  breakthrough  in  construc- 
tion costs  or  in  the  cost  of  generating 
equipment  suggests  the  possibility  of  de- 
signing an  economic  tidal  power  develop- 
ment;   third,    pollution    abatement    re- 
quirements magnify,   substantially,   the 
cost  of  using  alternative  sources  of  pow- 
er; or,  fourth,  alternative  sources  of  a 
more  economic  power  supply  become  ex- 
hausted.(5) 

BANCS    TIDAL    P«OJBCT FRANCZ 

The  only  actual  development  for  tidal 
electric  power  under  full-scale  construc- 
tion is  the  Ranee  tidal  project  in  France, 
the  largest  such  project  In  the  world. 
The  caplttd  investment  is  estimated  to 
be  over  $100  million. <4)  It  has  an  initial 
power  Installation  of  240  megawatts  in 
24  turbine  sets  and  could  have  an  ulti- 
mate installation  of  320  megawatts.  It 
represents  the  continued  effort  of  French 
engineers  over  a  20-year  period  to  har- 
ness the  tides  at  San  Malo  where  ideal 
conditions  exist — a  narrow  estuarv  with 
a  tidal  range  of  13  »^  meters — about  44 
feet.  The  Ranee  tidal  project  Ls  operated 
for  peaking  capacity  or  energy.  Since 
the  units  are  reversible,  the  project  Is  de- 
signed to  take  maximum  advantage  of 
the  flood  and  ebb  tides  to  supply  power 
to  the  French  electric  system. (3> 


4.   OFFSHORE   WIND  POWER  CONCEPT 

Solar  energy  sustains  the  winds.  It  is 
calculated  that  the  power  potential  in 
the  winds  over  the  continental  United 
States,  the  Aleutian  arc.  and  the  East- 
em  seaboard  is  about  10  "  kilowatts  elec- 
tric. Winds  are  remarkably  repeatable 
and  predictable.  The  momentum  in  mov- 
ing air  can  be  extracted  by  momentum- 
interchange  machines  located  in  suitable 
places  such  as  plains,  valleys,  and  along 
the  continental  coastal  shelves. 

A  desirable  windpower  system  incor- 
porates its  own  storage  and  its  own  peak- 
ing capability.  It  is  thus  able  to  span 
between  variable  wind  to  patterned  elec- 
tricity consumer  demand.  This  system 
could  be  nearly  pollution-free.  The  elec- 
trical energy  generated  by  the  aerotur- 
bines  located  offshore  is  used  to  electro- 
lyze  water.  The  hydrogen  thus  produced 
is  transmitted  by  pipeline  to  shore  or 
compressed  and  stored  for  use  during 
calm  periods.  In  such  a  manner  hydro- 
gen can  be  supplied  on  a  continuous  basis 
to  fuel  cell  or  thermal  electric  generating 
stations.  It  should  be  emphasized  that 
the  offshore-hydrogen  storage  approach 
is  only  one  of  several  worthy  of  explora- 
tion. 

There  was  a  mature  technology  for 
wind-power  60  years  ago.  Steady  im- 
provement was  made  through  the  1950's 
directed  toward  large-scale  applicatlcxis. 
In  1915.  100  megawatt  of  electricitv  were 
being  generated  by  windpower  in  Den- 
mark. 

Today  electricity  brought  in  bv  cable 
from  Sweden's  hydroelectric  plant  is  less 
expensive.  In  the  1940's  a  1.25-mega- 
watt  machine  was  built  and  operated  at 
Grandpa's  Knob.  Vt..  but  was  shut  down 
by  a  materials  failure  of  the  blade.  A 
conceptual  design  using  aeroturbines  to 
produce  160  billion  kilowatt  hours  of 
electricity  per  year  has  recently  been 
completed  for  the  off.shore  New  England 
region.!  15)  This  preliminan.-  study  shows 
that  the  electrical  power  when  used  to 
produce  hydrogen  which  is  then  piped 
ashore  for  consumption  in  powerplants 
is  cost  compeUUve  with  conventional 
methods  of  producing  electric  power 

The  limiting  factors  in  the  large  scale 
application  of  windpower  are  a  combina- 
tion of  available  wind  energy  and  weath- 
er modification.  The  effect  of  large  num- 
bers of  closely  spaced  windmills  has  not 
been  assessed.  There  are  no  known  tech- 
nological limitations  to  the  application  of 
windpower.  (10  >. 

MAXIMUM    ELECTRICAL   ENERGY   PRODUCTION    FROM 
WIND  POWER 

noiowttt-hounl 


AfmMl        Manmum 

VOmtf  possiUt 

»'<•  production        by  y^m— 

(1)  Olhhofe.  New  En(tind 1S9X10*  1990 

(2)  Othhore.  Ne»  Englind 31gxlO>  nOO 

(3)  Offshore.    Eastern    SMbMrd. 

»lonj  fh«  1 00m  contour. 
Ambros*  shipptn|  channel 
south  to  Charleston.  SO     .-       ZSaxIO"  2000 

(4)  Akmi  the  EW  Axis.  L«kt  Su- 

p«nor(320in) 3$XI0>  TOM 

(5)Alo«t    the    N^    AxB.    Uki 

Michigan  a20m) nxlO*  2000 

(B)  Atont    tW    N-S    Aiit.    Lake 

Huron(160m) 23xl9»  2000 

0)Mon^    the    W-E    Aus.    Lake 

tntOOOm) MXI0»  2000 


4259: 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


MAXIMUM   ELECTRICAL   ENERGY   PRODUCTION    FROM 
WIND  POWER 

IKikMin-tiounJ 


snt 


Annual        Maxinuni 

pow«r  possibto 

productioa        by  yMi— 


(8)  Along    the    W-E    Axis.    Like 

Ontano(l60m) 23xl0»  2000 

(9)  Thiough  the  Gieal  PUinj  trom 

Dallas.  Tex.,  lurth  in  i  path 

300  oil  wKle  W-E.  and  1,300 

mi  long  S  to  N.  Wind  sta- 
tions   to    t>e    dusteied    m 

groups  ol  165.  at  least  60  mi 

between     groups     (sparse 

coverage) 210X10*  2000 

(10)  Offshore  the  Texas  Gult  Coast, 

along  a  length  ol  400  mi  trom 

the  Mexican  border,  east- 
ward,   along    the    100    m 

contour 190xl0«  2000 

(U)  Along    the    Aleutian    Cham. 

1,260  mi.  on  transects  each 

35  mi  long,  spaced  at  60- 

mi  intervals,  between  100  m 

contours.  Hydrogen  is  to  b« 

liquehed  and  transported  to 

Catitoinia  by  tanker «21Xl0»  2000 

Note:  Estimated  total  production  possiWe:  l,S3SxlO>i  kWh 
by  year  2000. 

5.   SEA-BASZO   SOLA*    POWXH   STSTKMS 

Between  the  Tropics  of  Cancer  and 
Caprlcom  where  the  intensity  of  incom- 
ing solar  energy  reaches  its  peak,  90  per- 
cent of  the  Earth's  surface  is  water.  That 
surface  layer  is  in  thermal  equilibrium 
at  a  temperature  that  never  drops  below 
82'  Fahrenheit.  To  the  far  north  and 
south  the  intensified  summer  insulation 
melts  down  the  previous  winter's  ac- 
cumulation of  frozen  precipitation.  That 
meltdown  slides  to  the  depths  of  Che 
oceans  and  slowly  moves  toward  the 
Equator,  forming  the  cold  waterways  of 
the  oceans.  It  is  thus  possible  under  sev- 
eral hundred  million  square  miles  of 
ocean  to  find  a  nearly  infimte  heat  sink 
at  35'  to  38'  Fahrenheit,  at  a  level  as 
little  as  2.000  feet  directly  beneath  a 
nearly  infinite  surface  heai^eservolr  at 
82°  to  85  Fahrenheit.  Both  heat  reser- 
voir and  heat  sink  are  replenished  an- 
nually by  solar  energy  A  heat  engine 
operating  across  at  50"  Fahrenheit  tem- 
perature difference  in  and  85  Fahren- 
heit heat  source  would  be  able,  theoreti- 
cally, to  convert  to  useful  work.  9  percent 
of  the  heat  flowing  across  It.  (10) 

A  device  to  extract  power  from  ocean 
thermal  gradients  would  look  like  a  large 
submerged  pipe,  and  would  take  in  hot 
water  from  the  upper  end  to  supply  a 
boiler  and  cold  water  from  the  lower  end 
to  cool  a  condenser  A  secondary  fluid 
such  as  ammonia  or  freon  would  circu- 
late between  the  boiler  and  condenser  to 
turn  a  turbine.  No  plants  with  a  second- 
ary working  fluid  have  been  built,  but 
an  earlier  design  called  the  Claude  cycle, 
in  which  evaporated  seawater  Is  used  to 
turn  a  turbine,  has  been  successfully 
tested.' 9'  In  1929  the  Claude  cycle  was 
demonstrated  in  Cuba:  22  kilowatts  of 
useful  power  were  produced  in  an  engine 
whose  actual  overall  efficiency  was  lesj; 
than  1  percent  Two  experimental  units 
of  3.500  kilowatts  net  output,  each  work- 
ing in  the  Claude  cycle  were  Installed  off 
the  Ivory  Coast  In  1956  by  the  French. 
Due  to  mechanical  failure  and  other 
problem.s  the  plants  were  abandoned 
after  a  short  time  TTiere  Is  a  small  con- 
tinuing French  R.  &  D  effort  In  this  field. 
'10- 

a 


Powerplants  that  utilize  the  ocean 
thermal  gradients  are  projected  to  cost 
very  little  more  than  conventional  power- 
plants,  because  the  sea  acts  as  the  me- 
dium for  both  collection  of  sunlight  and 
storage  of  energy.  Undoubtedly  many 
problems  would  have  to  be  solved  before 
It  would  be  possible  to  generate  elec- 
tricity on  a  massive  scale  from  ocean 
plants.  Just  the  problem  of  transmitting 
energy  from  a  plant  at  sea  to  the  shore  is 
formidable.  However,  the  potential  ad- 
vantages from  the  utilization  of  the  sea 
are  great  enough  that  the  solar  sea 
power  concept,  which  originated  with  the 
French  physicist  Jacques  D'Arsonval  in 
1881,  has  recently  been  rediscovered  and 
at  least  three  groups  of  US.  researchers 
are  now  actively  studying  solar  sea 
power.  (11) 

POWWl   CII^UUTTON 

In  1964  Hubert  and  James  Anderson 
suggested  the  economic  viability  of  a 
powerplant  operated  by  the  ocean  ther- 
mal gradient.  They  considered  a  design 
with  a  submerged  powerplant  that  would 
be  neutrally  buoyant  at  a  depth  of  100 
or  200  feet.  Because  of  the  small  tempera- 
ture differential  provided  by  the  ocean, 
the  maximum  possible  efliclency  would  be 
about  5  percent  and  the  actual  efficiency 
would  probably  be  only  2  or  3  percent. 
The  flow  of  warm  water  required  would 
be  very  great,  but  comparable  to  the  flow 
through  a  hydroelectric  plant  with  the 
same  output.  The  energy  derived  from  1 
kilogram  of  water  flowing  through  an 
ocean  gradient  powerplant  with  hot 
water  at  25^  centigrade  and  cold  water 
at  5°  centigrade  would  be  the  same  as 
the  energy  produced  from  a  hydroelec- 
tric plant  with  a  pressure  differential 
corresponding  to  93  feet  of  elevation. 

Anderson  and  Anderson  have  esti- 
mated that  182x12"  kilowatt-hours  of 
electricity,  or  about  75  times  the  expected 
U.S.  demand  In  1980,  could  be  generated 
from  the  thermol  gradients  of  the  Gulf 
Stream,  which  has  a  flow  of  2,200  kilo- 
meters per  day  and  a  temperature  differ- 
ential varying  from  16°  centigrade  to 
22'  centigrade. 

At  the  University  of  Massachusetts, 
Amherst.  William  Heronemus  and  his 
associates  are  preparing  preliminary  de- 
signs for  a  submerged  plant  to  produce 
power  from  the  Gulf  Stream.  In  the 
Straits  of  nortda.  between  the  coastline 
and  Little  Bahama  Bank,  the  Gulf 
Stream  flows  very  close  to  the  shore,  and 
one  proposed  site  for  testing  the  ocean 
thermal  gradient  concept  would  be  at 
the  western  edge  of  the  Gulf  Stream, 
about  25  kilometers  from  Miami  The 
configuration  currently  proposed  Is  a 
modular  design  with  six  turbines  in  each 
of  two  hulls,  hooked  together  to  look 
something  like  a  submarine  catamaran. 
Each  hull  would  be  480  feet  long  and  100 
feet  in  diameter,  probably  made  of  rein- 
forced concrete.  The  axis  of  the  hulls 
would  be  at  a  depth  of  250  feet,  providing 
clearance  over  the  top  for  protection 
from  wave  motion  and  hurricanes 

Towers  to  the  surface  would  provide 
ventUatlon  suid  stccess  to  the  crews  that 
would  man  such  a  power  station,  but 
would  probably  not  be  visible  from  the 
shore.  The  station  would  be  slightly 
buoyant  and  ride  up  against  two  or  more 


tethers,  which  could  carry  the  cold  water 
conduit,  and  would  probably  caury  the 
electrical  or  hydrogen  transmission  line 
for  connection  to  the  shore  The  station 
would  generate  approximately  400  mega- 
watts of  electricity.!  ID 

Under  a  $190,000  grant  from  the  Na- 
tional Science  Foundation.  Caimegie- 
Mellon  University  is  now  seeking  a  prac- 
tical wsky  to  harness  ocean  heat. 

Says  Clarence  Zener.  a  physicist  who  is 
in  charge  of  Camegie-Mellon's  project. 
(14)  : 

Our  study  Is  designed  to  determine  with- 
in 18  months  whether  solar  sea  power  plants 
can  Indeed  compete  on  a  strictly  economic 
basis  with  nuclear  power  or  gasified  coal. 

POWZR    DCUVEBT 

The  important  technical  benefits  of 
sea-basing  a  solar  energy  conversion  sys- 
tem are  these :  First,  proximity  to  an  ex- 
cellent thermal  sink  find  source  of  work- 
ing mass — viz  the  ocean,  particularly  the 
depths;  second,  mobihty  of  rotation  and 
translation;  third,  space  availability  for 
large  solar  collector  areas;  and  fourth, 
logistical  ease  in  initial  construction, 
servicing,  and  in  the  distribution  of  prod- 
ucts from  the  macro  system  on  a  world- 
wide basis. 

Proceeding  from  the  fourth  point,  the 
energy  form  to  be  produced  Is  required 
to  be  both  storable  and  transportable 
over  significant  duration  and  distance  by 
way  of  delivering  the  energy  to  the  ulti- 
mate consumer.  It  is  proposed  that  solar 
energy  be  used  to  convert  water — puri- 
fied set  water — Into  cryogenic  liquid 
hydrogen  and  oxygen.  In  this  form  the 
stored  energy  of  the  sun  can  be  readily 
shipped  to  points  of  use  on  a  worldwide 
basis  via  "cryolankers."  Once  unloaded 
at  port,  the  cr>'ogenlc  liquids  can  be 
stored  and  eventually  transported  by 
rail,  over-the-road  trailers,  or  by  pipe- 
lines. Alternatively,  the  hydrogen  and 
oxygen  can  be  gasified  and  piped  in  the 
manner  of  naturatl  gas.  The  energy  form 
can  be  finally  consumed  in  the  process  of 
heat  release  or  It  can  be  converted  Into 
an  electrical  form  by  fuel  cells  or  their 
shaftpower-produclng  equivalents. 

Technology  deriving  from  the  aero- 
space sector  over  the  past  several  dec- 
ades, and  particularlj'  that  from  the 
Apollo  effort,  has  made  consideration  of 
the  cryogeiilc  form  of  hydrogen — liquid 
oxygen  development  and  mass  use  came 
much  earlier — eminently  pr£u:ticable  for 
large-scale  system  applications.  Liquid 
hydrogen,  despite  Its  extreme  physical 
characteristics — viz  0  07  specific  gravity, 
21'  kilometer  boiling  point — has  been 
demonstrated  to  be  a  tractable,  desirable 
chemical  fuel  and  working  fluid.'7> 

An  economy  in  which  offshore  gener- 
ated electric  power  is  used  to  electrolyze 
sea  water,  and  the  resulting  hydrogen 
and  oxygen  gas  is  then  piped  iriland  to 
fuel  the  economy,  is  now  known  as  the 
■'hydrogen  economy."  In  a  hydrogen 
economy  the  off.shore  nuclear  plants  must 
compete  with  solar  sea  powerplants. 
Such  tropically  based  plants  could  elec- 
trolyze water  at  depth,  thereby  produc- 
ing hydrogen  and  oxygen  at  high  pres- 
sure. These  gases  would  be  fed  Into  sub- 
merged tankers,  which  would  then  be 
towed  underwater  to  the  appropriate 
cockstal  areas.  (13) 


December  19,  1973 


CONGRESSIONAL  RECORD— HOUSE 


42593 


6.    WAVZ-ENKXGT    CONVXRTKRS 

Ocean  waves,  generated  mostly  by 
winds,  possess  tremendous  kinetic  energy. 
A  4-foot  wave  striking  the  coast  every 
10  seconds  expends  more  than  35,000 
horsepower  per  mile  of  coastline,  but 
only  an  extremely  small  fraction  Is 
usable.  In  an  attempt  to  harness  such 
energy  on  the  Algerian  coast,  waves  are 
funneled  through  a  V-shaped  concrete 
structure  into  a  reservoir.  Water  flowing 
from  the  reservoir  operated  a  turbine  to 
generate  power. 

The  best  known  devices  to  harness 
ocean- wave  energy  on  a  small  scaie  have 
been  in  use  for  years — bell  buoys  and 
whistle  buoys,  simple  mechanisms  that 
convert  ocean-wave  energy  to  sound  en- 
ergy. A  few  other  small  test  projects  have 
been  conducted,  but  no  significant  tech- 
nical breakthroughs  have  been  accom- 
plished. <  3, >  Studies  indicate  little  pos- 
siblhty  of  developing  power  in  commer- 
cial quantities  from  these  sources  except 
for  ocean  buoys  to  supply  signals  and 
light.  (4) 

7.    NVCXEAX   roSION    USING    DEUTERIUM    FBOM 
SEA     WATEB 

The  estimated  thermal  energy  content 
of  the  deuterium  in  the  worlds  sea  water, 
which  would  be  released  through  ther- 
monuclear fusion,  is  7.5  x  10'"  Btu,  an  es- 
sentially limitless  supply.*  2)  The  princi- 
ple of  the  fusion  process  has  been  dem- 
onstrated In  thermonuclear  weapons. 
Considerable  experimental  work  has  been 
done  in  the  United  States  and  in  the  So- 
viet Union,  but  controlled  fusion  has  not 
yet  been  demonstrated  in  the  laboratory. 
Fusion  is  an  ultra  high  temperature  proc- 
ess which  yields  much  less  radioactive 
wastes  than  does  nuclear  fission. (8) 

Etesplte  progress  in  recent  years  on 
both  magnetic  confinement  and  on  laser 
fusion  research,  the  probability  of  com- 
mercial fruition  of  fusion  power  by  the 
year  2000  Is  estimated  to  be  very  low. (2) 

The  sources  are  as  follows : 

SOUBCKS 

(1)  NACOA  Second  Annual  Report. 
6/29/73. 

(2)  VS.  Energy  Issues,  R.  H.  Shatz,  Hudson 
Institute.  10  10/73. 

(3)  Panel  Reports  of  the  Commission  on 
Marine  Science.  Engineering  and  Resources, 
Vol.  2,  Part  VI,  Industry  and  Technoloay, 
2  9/69. 

(4)  Ibid,  Vol.  3,  Part  VH,  Marine  Re- 
sources and  Legal-Political  Arrangements 
for  Development. 

(5)  1970  National  Power  Survey,  Federal 
Power  Commission 

(6)  "The  Control  of  the  Water  Cvcle".  J  P 
PeUoto  and  M.  All  Kettanl,  Scientific  Amer- 
ican, 4/73. 

(7>  "A  Macro  System  for  the  Production  of 
Storable,  Transportable  Energy  from  the  Sun 
and  the  Sea".  W.  J.  D.  Escher,  Escher  Tech- 
nology Associates. 

(8)  "The  Environmental  Issues — Con- 
straints on  the  Production  and  Use  of  Energy 
Resources".  Dr  Joseph  A.  Ueberman.  En- 
vironmental Prot»ctlon  Agency,  Appendix 
3t2.  EneT(ry  and  Public  Policy— 1972  The 
Conference  Board. 

(9)  Energy  and  the  Future.  A.  L.  Ham- 
mond, et  al..  American  Association  for  the 
Advancement  of  Science,  1973. 

(10)  Solar  Energy  as  a  National  Energy 
Resource,  NSP/NASA  Solar  Energy  Panel, 
tJnlTerslty  of  Maryland.  December  1972. 

(11)  "0;ean  Temperature  Gradients:  Solar 
Power  From  the  Sea",  W.  D.  Metz.  In  Science 
8/22/73. 


(12)  "Conceptual  Design  of  a  Ranklne 
Cycle  Powered  by  the  Ocean  Thermal  Dif- 
ference", J.  O.  McCiowan,  et.  al..  Univer- 
sity of  Massachusetts,  8/13-16/73. 

(13)  "Solar  Sea  Power",  Clarence  Zener, 
Physics  Today,  1/73. 

(14)  "First  Was  Steam,  Then  Nuclear,  and 
Now  Sea  Solar  Power".  Q.  J.  McManus  Iron 
Age.  7/19/73. 

(15)  "Power  F^om  the  Offshore  Winds", 
W.  E.  Heronemus,  Marine  Technology  So- 
ciety Conference,  8/72. 

Mr.  OV^^NS.  Mr.  Chairman.  I  rise  In 
support  of  the  amendment  to  be  offered 
by  Mr.  Udall  to  create  the  position  of 
Assistant  Administrator  of  ERDA  for 
Technology'  Assessment. 

I  feel  that  the  amendment  makes  two 
very  significant  and  valuable  contribu- 
tions to  the  act. 

First,  it  ensures  that  there  will  be  a 
comprehensive  assessment  of  the  impact 
of  new  technologies  and  programs  on 
the  commimltles  and  regions  affected. 
The  Assistant  Administrator  is  directed 
to  analyze  and  evaluate  not  just  en- 
vironmental impacts,  but  economic  and 
social  Impacts  as  well.  Such  a  broad  base 
of  data  will  enable  policymakers  to 
weigh  in  an  informed  manner  what  may 
be  competing  considerations  in  arriving 
at  a  decision  as  to  the  desirability  of  a 
given  project.  In  short,  the  amendment 
would  greatly  aid  raUonal  planning. 

Second,  by  requiring  such  assessments 
of  existing  projects,  the  amendment 
would  help  Insure  that  past  mistakes  be 
not  repeated.  Such  retrospective  analyses 
would  also  indicate  whether  existing 
projects  deserved  continued  funding.  It 
is  well  known  that  Government  projects 
and  bureaucracies  tend  to  perpetuate 
themselves  once  In  existence,  regardless 
of  their  merits.  I  see  this  amendment  as 
offering  a  counterforce  to  this  kind  of 
waste,  and  I  expect  that  It  will  result  in 
substantial  savings  through  the  elimina- 
tion of  inefficient  or  otherwise  imdesira- 
ble  programs. 

Mr.  DONOHUE.  Mr.  Chairman,  as  the 
author  of  slmUar  legislation  and  as  a 
member  of  the  House  Government 
Operations  Committee  which  recom- 
mended this  Energy  Reorganization  Act 
of  1973,  I  most  earnestly  urge  and  hope 
that  H.R.  11510,  now  before  us,  wiU  be 
overwhelmingly  adopted  by  the  House 
this  afternoon. 

As  I  indicated  In  expressing  my  sup- 
port for  the  original  Emergency  Energy 
Act  earlier  this  month,  the  logical  and 
absolutely  essential  compliment  to  that 
act  Is  the  creation  of  a  special  agency 
with  the  full  power  and  resources  to  im- 
plement Its  provisions  so  that  this 
Government  can  move  forward  as 
speedily  as  possible  toward  the  effecUve 
long-range  solution  of  our  energy  short- 
ages. 

In  simple  summary,  Mr.  Chairman 
this  bill  will  reorganize  and  consoUdate 
major  energy  research  and  development 
functions  currently  performed  by  the 
Atomic  Energy  Commission,  the  Depart- 
ment of  the  Interior,  the  NaUonal  Sci- 
ence Foundation,  and  the  Environmental 
Protection  Agency  through  the  estab- 
lishment of  a  new  Energy  Research  and 
Development  Administration.  This  Ad- 
ministration would  be  responsible  for 
conducting  and  coordinating  programs 


of  research  and  development  on  all  en- 
ergy resources  and  utilization  processes 
including  fossil  fuel,  nuclear  energy,  and 
advanced  energy  systems  such  as  solar 
and  geothermal  projects.  In  addition, 
this  new  agency  will  conduct  research  In- 
volving the  conversion  of  co£il  into  other 
energy  forms,  oil  shale  recovery,  develop- 
ing alternative  automotive  engines,  de- 
velopment and  production  of  nuclear 
weapons,  research  into  physical  and  bio- 
medical sciences,  management  of  nu- 
clear waste,  health  and  safety  research 
and  a  variety  of  related  technological 
programs. 

The  measure  also  renames  the  Atomic 
Energy  Commission  the  Nuclear  Energy 
Commission  and  provides  that  it  will 
continue  to  perform  licensing  and  re- 
lated regulator  functions  to  insure  the 
protection  of  the  public  and  environment 
against  nuclear  health  and  safety  risks 
associated  with  the  use  of  nuclear  ma- 
terials and  facilities.  The  Commission 
will  be  an  independent  regulatorj-  agency 
responsible  for  licensing  of  civilian  use 
of  nuclear  power  and  materials. 

Mr.  Chairman,  our  purpose  in  estab- 
lishing this  new  Energy  Research  and 
Development  Administration  is  to  pro- 
vide a  central  agency  to  get  under  way 
with  the  vitally  important  task  of  utlllz- 
mg  all  our  technologies  to  produce  long- 
range  solutions  to  the  energj'  shortage 
crisis  now  plaguing  our  Nation  and  to 
keep  this  country  forever  free  and  in- 
dependent of  the  political  pressure 
whims  and  threats  of  our  oil  supplving 
sources  in  the  Mideast,  or  elsewhere. 
Mr.  Chairman,  the  purposes  and  objec- 
tives I  have  outlined  are  unquestionably 
in  the  national  interest  and  this  bill  is 
designed  to  accomplish  these  good  objec- 
tives. Therefore,  I  hope  the  House  wiU 
register  its  resounding  aproval  of  HM 
11510  without  extended  delay 

Ms.  HOLTZMAN.  Mr.  Chairman  I 
wholeheartedly  support  the  idea  of  a  na- 
tional crash  program  on  energy  research 
This  bill,  which  consolidates  the  re- 
search and  development  functions  of  a 
number  of  programs  of  the  Federal  Gov- 
ernment under  a  new  Energv  Research 
and  Development  AdministraUon.  marks 
an  important  step  in  the  right  direction, 
perefore.  I  will  vote  for  H.R,  11510  on 
final  passage. 

I  am  troubled,  however,  by  a  number 
of  aspects  of  this  leglslaUon.  This  biU 
places  top  priority  on  research  Into  fos- 
sil fuels  and  nuclear  fission.  It  delib- 
erately downgrades  research  Into  other 
sources  of  energy  such  as  solar  energy 
geothermal  energy.  I  think  this  is  a  mii- 
take.  I  think  it  is  essential  that  we 
make  clear  our  commitment  to  discover- 
ing new  waj's  of  meeting  the  Nation's 
growing  energy  requirements. 

If  we  faU  to  make  a  real  commitment 
to  developing  these  new  and  promising 
technologies  we  may  find  ourselves  at  a 
real  disadvantage  very  soon.  For.  there 
are  serious  problems  uith  putting  all  our 
eggs  in  the  nuclear  or  fossil  fuel  basket 
First,  as  recent  studies  have  shown] 
nuclear  power  cannot  supply  a  \iable  al- 
ternaUve  source  ol  energy  until  late  Into 
this  century.  Also,  there  are  v-ery  serious 
problems  of  saf  :tj-  hazards  that  are  yet 
to  be  solved  in  nuclear  energy  genera- 


42594 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  197$ 


tion.  And.  we  still  do  not  have  a  real 
answer  to  safe  disposal  of  nuclear  wastes. 
Second,  we  must  seriously  reevaluate 
our  relisuice  on  fossil  fuels  for  energy. 
Petroleum  products  will  be  an  increas- 
ingly scarce  commodity  In  the  future; 
some  even  predict  that  the  world's  oil 
supply  will  be  nearly  exhaiisted  by  the 
end  of  the  century.  Petroleum  Is  essen- 
tial for  the  production  of  a  number  of 
crucial  items  such  as  synthetic  fibers  and 
fabrics  and  plastics.  The  more  we  use 
petroleum  for  energy  production — espe- 
cially if  other  sources  are  avsiUable — the 
less  we  will  have  for  these  other  essen- 
tial commodities. 

Finally.  I  think  it  is  very  important 
that  the  consumers'  voice  be  heard  in  the 
membership  of  the  ERDA.  I  hope  this 
agency  will  not  become  the  captive  of 
special  interests. 

Therefore,  while  I  support  the  Energy 
Reorganization  Act.  I  think  it  should  be 
amended  to  insure  a  balanced,  open- 
minded  approach  to  the  tremendous 
challenge  that  confronts  us. 

Mr.  RANDALL.  Mr.  Chairman.  I  rise 
in  enthusiastic  support  of  H.R.  11510.  I 
have  reached  that  conclusion  not  because 
I  happen  to  be  a  member  of  the  Commit- 
tee on  Government  Operatioris,  but  be- 
cause I  recognize  that  this  bill  Is  an 
effort  to  consolidate  and  reorganize  the 
most  important  functions  of  the  Federal 
Government  in  a  new  Energ>-  Research 
and  Development  Administration  to  pro- 
mote more  efiQclent  management  of  those 
functions  to  truly  get  us  on  the  road  to 
a  status  of  Independence  from  any  other 
country  in  the  world  for  our  energy 
needs 

Someone  has  said  that  this  divided 
country  of  ours  is  united  on  at  least  one 
issue  or  one  objective  smd  that  Is  to  try 
to  arrive  at  a  solution  for  our  long-term 
energ>-  needs. 

During  all  of  the  preliminary  discus- 
sions and  during  the  debate  on  the  floor, 
the  bill  today  has  become  best  known  as 
EIRDA.  Elnergy  Research  and  Develop- 
ment Administration.  The  objective  of 
that  Administration  is  to  coordinate 
nearly  all  of  the  energy  research  and  de- 
velopment functions  now  scattered  about 
in  other  Federal  agencies  and  also  to  as- 
sign to  ETIDA  the  responsibility  for  the 
nonregulatory  functions  of  the  present 
Atomic  Energy  Commission  The  AEC 
would  be  renamed  the  Nuclear  ESiergy 
Commission  under  the  bill  and  would 
continue  to  perform  its  licensing  and  re- 
lated regulatory  functions. 

Mr  Chairman,  the  really  important  as 
well  as  the  interesting  and  hopefully  pro- 
ductive provisions  of  this  bill  are  found 
In  title  I  which  provides  for  the  appoint- 
ment of  an  Administrator  and  five  assist- 
ant administrators.  Each  of  these  five 
administrators  is  given  Jurisdiction  over 
a  separate  field  of  research  including, 
first,  fossil  energy;  second,  nuclear  en- 
ergy; third,  environment  safety  and  con- 
version; fourth,  research  and  advanced 
energy  systems:  and  fifth,  national 
security 

The  Office  of  Coal  Research  Is  taken 
from  the  Department  of  Interior  and 
quite  properly  put  Into  this  new  agency. 
It  will  be  recalled  that  the  purpose  of 
OCR  was  to  conduct  research  on  conver- 
sion of  coal  to  cleaner  fuel  forms.  An- 


other function  taken  from  the  Bureau  of 
Mines  of  the  Department  of  Interior  Is 
fossil  fuel  research  and  development  in- 
cluding the  very  Important  pilot  coal 
gasification  plant  now  under  construc- 
tion. 

Title  I  also  selects  those  programs  now 
under  the  Science  Foundation  and  places 
them  in  this  new  agency  that  have  to  do 
with  solar  heating  and  cooling  of  build- 
ings and  geothermal  research,  and 
finally,  in  title  I  Is  a  provision  which  p>er- 
mits  the  Environmental  Protection 
Agency  its  present  functions  that  are 
working  on  the  development  of  alterna- 
tive automotive  power  systems. 

What  wiU  we  achieve  when  this  bill 
becomes  law?  One  answer  Is  to  make 
ERDA  into  a  central  energy  research 
policy  and  planning  agency  empowered 
to  conduct  and  coordinate  research  into 
all  forms  of  energy  development  and  to 
encourage  such  research  outside  of  ERDA 
by  private  institutions.  My  chief  regret 
concerning  this  legislation  is  that  no 
fundmg  is  authorized  and  that  these  au- 
thorizations will  be  left  to  the  regular 
authorizing  committees.  Certainly  the 
exciting  results  from  ERDA  will  not  come 
about  without  cost  and  certainly  not  low 
cost.  ERDA  IS  a  beautiful  lady  but  it  will 
take  money  to  make  her  something  more 
than  a  paper  doll. 

Mr  Chairman,  I  suppose  the  principal 
reason  that  I  am  so  enthusiastic  about 
ERDA  Is  that  I  am  convinced  the  time 
has  come  and  even  past  due  for  a  new 
crash-type  program  to  solve  our  long- 
range  energy  needs.  I  foresee  in  E31DA 
the  vehicle  to  accomplish  such  an  ob- 
jective. 

Oh,  there  are  so  many  proposals  that 
may  ver>-  well  have  merit.  Between  the 
sensible  and  the  ridirulous  there  are 
many  expedients  which  should  be  ex- 
plored— which  means  researched.  One  Is 
the  burning  of  industrial  wastes  Including 
boxing  crates,  used  wrrapplng  paper, 
broken  wooden  pallets,  et  cetera.  That 
will,  of  course,  require  some  plant  con- 
version. Then  we  hear  such  other  in- 
teresting and  thought-provoking  propos- 
als as  stretching  heating  oil  10  percent 
by  adding  used  crankcase  oil.  It  is  not 
beyond  the  realm  of  man's  imagination 
that  there  may  be  developed  something 
close  to  the  once  ridiculed  perpetual 
motion  machine  m  the  form  of  a  per- 
manent magnet  to  produce  needed  power. 
It  has  been  suggested  that  it  may  lie 
possible  to  perfect  an  installation  of  con- 
version units  enabhng  motor  cars  to  bum 
animal  wastes  and  other  organic  mate- 
rial to  produce  methane  gas  fuel. 

The  field  of  research  that  may  redeem 
us  all  from  fuel  shortages  In  the  future 
Is  the  development  of  solar  energy.  While 
this  source  of  energy  has  been  scoffed 
at  In  the  past  It  is  today  considered  a 
feasible  and  major  source  of  power  The 
President  of  the  Society  of  Automotive 
Engineers  In  a  recent  speech  said  that 
we  should  not  give  up  schemes  to  harness 
both  the  winds  and  tides  such  as  the 
Passamaquoddy  to  produce  hydroelectric 
power.  Of  course,  this  is  no  time  to  let 
up  on  research  and  development  of  nu- 
clear "breeder"  plants 

While  I  have  no  idea  whether  this  new 
research  administration  can  accomplish 


It  or  not.  one  of  the  most  truly  grave 
problems  is  the  eCQclent  storage  of  en- 
ergy in  order  to  use  intermittent  energy 
sources.  What  does  this  mean?  There 
must  be  developed  some  yet  undiscovered 
Improvement  in  metallurgy  that  would 
permit  the  efQcient  storage  of  energy. 
We  could  thus  save  simllght  that  could 
not  be  used  or  consumed  at  the  moment 
the  energy  source  becomes  available.  If 
this  could  be  accomplished — some  way 
to  store  energy — we  might  very  well  have 
made  a  giant  step  toward  the  ultimate 
solution  of  our  long-range  energy  prob- 
lem. 

All  of  the  beautiful  talk  of  what  we 
are  doing  today  will  not  amount  to  much 
unless  ERDA  can  someway  be  able  to 
bring  forth  a  national  energy  plan  of 
action  and  that  means  an  annual  com- 
mitment to  Invest  some  money  on  the 
scale  of  a  NASA  program  that  resulted 
in  the  Apollo  moon  landing  or  of  the 
magnitude  of  the  Manhattan  project 
which  resulted  in  the  creation  of  the 
atomic  bomb. 

Money  is  needed  for  mass-transit  pro- 
grams, Intercity  commuter  rail  and  bus 
systems,  and  incentives  for  the  produc- 
tion of  more  buses.  In  the  field  of  coal 
research  alone  well  over  a  billion  dollars 
could  be  used  productively  to  convert 
coal  as  a  usable,  eCQcient,  and  clean  re- 
placement for  gasoline  fuel  and  other 
petroleum  products  We  need  funding  for 
better  recovery  methods  of  oil  shale  and 
some  kind  of  Incentives  for  homeowners 
and  small  business  people  to  improve 
their  insulation  to  provide  heating  and 
reduce  fuel  consumption.  We  cannot  for- 
get the  Incentives  necessary  to  expand 
domestic  oil  and  gas  exploration 

A  lot  of  funding  will  be  needed  fo. 
solar,  nuclear  and  thermal  energy  re- 
search. It  is  my  judgment.  Mr  Chair- 
man, that  the  lion's  share  of  this  should 
be  spent  on  solar  research  and  develop- 
ment. This  may  well  be  the  ultimate 
answer  to  our  problems.  Energy  from 
the  Sim  is  abundant  and  inexhaustible 
and  nonpollutlng.  Every  day  enough  en- 
ergy falls  on  the  United  States  in  the 
form  of  sunlight  to  supply  our  power 
needs  for  an  entire  year.  Every  day  we 
delay  the  funding  of  solar  energy  as  a 
top  priority  will  prolong  the  problems 
that  we  face 

All  of  us  who  support  this  bill  can  go 
home  proud  that  we  have  done  something 
productive  about  our  grave  energy  situ- 
ation. With  a  present  energy  research 
program  operating  among  several  agen- 
cies, we  can  point  with  pride  to  our  vote 
to  consolidate  these  efforts  and  direct 
them  toward  the  goal  of  energy  self-suffi- 
ciency for  our  great  country. 

Mr  BROYHILL  of  North  CaroUna. 
Mr.  Speaker.  I  rise  to  support  HJl.  11510, 
the  Energy  Reorganization  Act  of  1973. 
and  to  urge  my  colleagues  to  join  with 
me  in  voting  for  the  swift  passage  of  this 
measure. 

This  legislation  will  bring  together  the 
research  and  development  ew'tivlties  In 
the  field  of  energy  presently  conducted 
by  the  Department  of  the  Interior,  the 
Atomic  Energy  Commission,  the  National 
Science  Foundation,  and  the  Environ- 
mental r»rotectlon  Agency.  The  activities 
of  these  various  agencies  would  be  con- 
solidated into  one  single  agency.  This 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


^595 


consolidation  would  enable  us  to  provide 
a  direct.  Litenslve.  and  unified  approach 
to  developing  new  and  more  effective 
energy  sources. 

I  am  quite  sure  I  do  not  iieed  to  re- 
mind you  of  the  critical  need  for  the 
United  States  to  develop  a  self-sufficient 
energy  supply.  Our  present  petroleum 
shortage  and  the  curtailment  of  oil  from 
the  Middle  East  have  made  us  painstak- 
ingly aware  that  we  as  a  nation  have 
grown  too  dependent  on  petroleum  as  a 
source  of  energy  and  that  we  must  de- 
velop our  owm  domestic  sources.  We  can 
no  longer  afford  to  depend  on  other  na- 
tions to  supply  a  major  part  of  our  en- 
ergy needs. 

The  creation  of  an  Independent  Energy 
Research  and  Development  Administra- 
tion would  provide  a  more  streamlined 
and  concerted  national  research  effort 
with  regard  to  our  energy  needs.  Testi- 
mony during  the  hearings  on  this  legis- 
lation clearly  demonstrated  the  need  for 
reorganization  of  energy  research  and 
development  functions.  The  establish- 
ment of  a  single  agency  to  coordinate 
these  activities  will  provide  more  com- 
prehensive and  systematic  direction  to 
solving  the  Nation's  energy  problems.  It 
will  provide  a  more  positive  approach  to 
developing  long-range  solutions  to  this 
problem. 

The  present  severity  of  our  energy 
problems  requires  that  the  Nation's  tech- 
nicians combine  their  talents  and  explore 
to  the  fullest  extent  a  variety  of  sources 
of  energy.  American  technology  has 
never  let  us  down  and  I  am  convinced 
that  united  efforts  wiU  again  solve  the 
present  problem.  Through  stepped-up 
research  programs,  I  feel  sure  we  can  de- 
velop other  sources  of  energy  by  the  bet- 
ter utilization  of  fossil  fuels,  solar,  geo- 
thermal. and  atomic  energy.  At  the  same 
time,  this  research  must  be  directed  at 
developing  energy  sources  that  are  en- 
vironmentally safe  Only  through  this 
concerted  effort  can  we  be  assured  of  an 
economic  and  plentiful  energy  future. 

I  hope  that  you  will  join  with  me  in 
endorsing  H.R.  11510  as  a  construcUve 
step  forward  In  our  Nation's  attempt  to 
maximize  its  existing  and  potential  en- 
ergy resources 

Mr.  JOHNSON  of  California.  Mr. 
Chairman,  I  have  listened  attentively  to 
the  debate  on  HR  11510,  to  reorganize 
and  consolidate  certain  fxmctions  of  the 
Federal  Government  in  a  new  Energy 
Research  and  Development  Administra- 
tion and  in  a  Nuclear  Energy  Commis- 
sion. In  order  to  promote  more  efficient 
management  of  such  functions. 

I  fully  support  the  objectives  of  this 
measure  and  feel  that  the  creation  of  a 
centralized  management  structure  for 
energy  research  Is  a  clear  step  In  the 
right  direction.  However,  It  is  not  the 
entire  answer  for  results  are  achieved  by 
dedicated  and  qualified  people  operating 
under  imaginative  leadership.  So.  the  ef- 
fectiveness of  ERDA  will  be  controlled  to 
a  large  extent  by  the  quality  and  com- 
petence of  those  chosen  to  lead  It  In  the 
days  ahead 

There  is  one  aspect  of  the  ERDA  leg- 
islation that  gives  me  some  cause  for 
concern  Throughout  the  bill  and  the 
House  consideration  of  It  I  have  searched 


for  some  recognition,  on  the  part  of  the 
administration  and  on  the  part  of  the 
managers  of  the  legislation,  of  the  ab- 
solutely crucial  role  of  water  manage- 
ment programs  in  the  attainment  of  our 
energy  goals.  I  am  sorry  to  say  I  do  not 
find  this  recognition.  Perhaps  it  could  be 
argued  that  this  is  merely  a  reorganiza- 
tion bill  and  substantive  details  of  re- 
search need  not  be  enumerated  in  it; 
or  that  program  emphasis  should  be  left 
to  some  other  bill.  I  cannot  accept  this 
argument  in  Its  entirety  for  the  fruits  of 
research,  hopefully  to  flow  from  the  sev- 
eral assistant  administrators  cre- 
ated by  this  legislation,  will  not  occur 
unless  there  Is  attention  given  to  related 
essential  programs  of  which  water  sup- 
ply and  availability  is  probably  the  most 
significant. 

One  of  my  major  concerns  with  the 
orgsmizatlon  proposed  to  be  established 
by  H.R.  11510  is  UiC  lack  of  recogni- 
tion of  a  continuing  role  for  hydroelec- 
tric power  production  and  management 
in  our  overall  energy  budget  of  the  fu- 
ture. 

Now.  admittedly,  hydroelectric  power 
does  not  represent  a  major  fraction  of 
our  energy -producing  capability;  and 
in  recent  years  it  has  been  the  practice 
to  dowmgrade  its  significance  and  Im- 
portance— this,  apparently,  out  of  the 
misguided  conception  that  the  water  im- 
poundments essential  to  the  functioning 
of  a  hydroelectric  plant  are  environ- 
mental abominations,  not  to  be  toler- 
ated under  any  circumstances.  This  is, 
of  course,  not  completely  true  as  I  shaD 
point  out  later.  What  is  true,  however, 
is  that  we  do  not  have  a  large  backlog 
of  potential  Hoover  Dams  and  Grand 
Coulee  Dams  capable  of  producing  power 
for  2  or  3  mills  per  kilowatt  hour — which 
seems  to  be  the  standard  that  people  use 
to  measure  hydro  feasibility.  In  the  long- 
gone  days  when  crude  oil  was  less  than 
$2  per  barrel,  many  of  our  hydroelectric 
sites  were,  indeed,  competitively  unat- 
tractive. In  the  emerging  energj-  market 
of  today  these  previously  marginal  proj- 
ects become  increasingly  viable  and  use- 
ful In  meeting  our  energy  budget.  They 
should  not  be  totally  overlooked  in  or- 
ganizing our  research  management 
structure — as  has  apparently  been  the 
case. 

While  I  do  not  seek  to  amend  the  lan- 
guage of  H.R.  11510  at  this  stage  of  its 
consideration  I  feel,  Mr.  Chairman,  it  is 
imperative  to  mandate — insofar  as  prac- 
ticable through  the  floor  discussion — 
some  continuing  concern  for  the  role  of 
hydroelectric  power  and  other  aspects 
of  water  management  in  our  energj'  re- 
search structure. 

Let  us  consider,  briefly,  what  we  are 
now  doing  in  the  hydroelectric  field 
which  represents  about  12  to  15  percent 
of  our  total  installed  electric  generating 
capacity.  The  Bureau  of  Reclamation 
and  the  Corps  of  Engineers  are  the  two 
principal  agencies  of  Government  in- 
volved In  the  development  of  hjdroelec- 
trlc  power.  Between  the  two  of  them 
they  are  now  working  at  about  10  sites — 
most  of  them  in  the  Western  United 
SUtes  The  vast  majority  of  the  work 
now  underway  is  in  the  nature  of  in- 
creasing the  installed  capacity  at  exist- 


ing dams.  These  types  of  projects  pro- 
duce no  additiomJ  kilowatt-hours  of 
electricity  but  enable  the  project  to  pro- 
duce more  power  over  a  shorter  period  of 
time.  This  is  the  classic  and  emerging 
role  of  hydroelectric  power — as  short- 
term  peaking  power.  Since  a  hydroelec- 
tric plant  can  be  turned  on  or  off  In  a 
matter  of  seconds,  it  is  uniquely  suited  to 
short-term  use.  It  has  no  requirement 
to  maintain  steam  in  the  boilers  such 
as  we  find  with  thermal  plants,  either 
fossil  or  nuclear-fired.  As  loads  grow 
and  patterns  of  use  diversify,  peaking 
power  becomes  increasingly  attractive 
and  man  has  not  yet  devised  a  system  as 
well  suited  to  peaking  as  Is  hydroelectric 
power. 

Additionally,  hydroelectric  power  has 
certain  distinct  environmental  advan- 
tages. It  is  completely  pollution-free.  It 
does  not  heat  the  water,  it  does  not  con- 
taminate the  air.  It  requires  no  mining 
and  transporting  of  fuel  nor  does  it  re- 
quire disposal  of  solid  wastes  such  as 
ashes  or  slsig.  The  Federal  Power  Com- 
mission estimated  in  1970  that  there 
could  be  an  Increase  in  hydroelectric 
power  by  1990  of  100.000  megawatts — 
and  that  our  total  electrical  production 
at  that  time  could  still  represent  about 
12  percent  of  our  national  total  This 
is  surely  of  sufficient  consequence  to 
warrant  specific  research  and  develop- 
ment attention  in  the  soon-to-be  created 
Energy  Research  and  Development  Ad- 
ministration. 

I  would  like  to  continue.  Mr.  Chair- 
man, and  discuss  a  related  aspect  of 
energy  research  as  it  affects  the  water 
resources  field.  Much  has  been  made, 
lately,  of  the  increased  role  of  coal  in  our 
total  energy  picture.  In  fact,  one  of  the 
Assistant  Administrators  created  by  this 
bill  will  be  involved  in  the  coal  business 
in  a  big  way.  I  assume  that  the  assistant 
for  fossil  energy  development  will  be 
concerned  with  all  of  the  ways  that  coal 
can  be  used  more  effectively  in  balancing 
our  total  energy  budget.  Whether  he  con- 
centrates on  moving  coal  energy  by  wire 
or  converting  the  energy  to  gaseous  or 
liquid  form,  he  is  going  to  be  deeply  Im- 
mersed in  Waaler  supply  considerations. 
Coal-flred  steam  plants,  oil  sliale  extrac- 
tion plants,  coal  liquefaction  plants,  and 
cosd  gasification  plants  use  substantial 
quantities  of  either  process  or  cooling 
water  at  their  present  stage  of  techno- 
logical development.  TTie  preponderance 
of  these  fuel  resources  are  found  In  areas 
of  the  United  States  where  water  is  not 
only  scarce  in  a  physical  sense,  but  is 
frequently  of  poor  quality  and  invarlabUv 
conmiltted  by  law  and  tradition  to  other 
purposes. 

It  is  no  exercise  in  rhetoric.  Mr.  Chair- 
man, to  state  that  if  the  technology  we 
seek  10  years  hence  through  centralized 
man8ig«nent  of  energy  R.  &  D.  were  al- 
ready available,  we  would  find  it  of  lim- 
ited applicability  simply  because  our 
water  management  systems  improve- 
ments had  not  kept  pace.  In  our  consid- 
eration of  HR.  11510  we  cannot  hope  to 
do  more  than  to  create  an  awareness  on 
the  part  of  the  executive  branch  persons 
who  will  be  running  EUDA  that  most  of 
their  efforts  will  come  to  naught  If  they 
ignore  the  role  of  water  management  in 
their  day-to-day  activities.  When  sub- 


12596 


CONGRESSIONAL  RECORD  — HOUSE 


stantlve  legislation,  to  authorize  specific 
research  programs,  comes  before  the 
House  we  must  be  vlgUant  to  assure  that 
the  concomJtant  programs  of  water  re- 
source research  not  be  overlooked. 

Many  emerging  energy  processes  find 
process  water  quality  to  be  of  equal  im- 
portance to  avjaJabUity.  In  assuring  the 
capability  to  provide  high  quality  proc- 
ess water  we  are  fortunate  that  the  Office 
of  Saline  Water.  In  the  Department  of 
the  Interior,  is  on  the  threshold  of  pro- 
ducing commercially  available  technol- 
ogy through  which  large  quantities  of 
very  high  quality  water  can  be  produced 
at  a  reasonable  cost.  This  program  is  ap- 
parently being  allowed  to  wither  away 
at  this  point  in  our  history  when  Its  role 
Is  more  crucial  than  ever.  I  see  no  sug- 
gestion that  its  role  is  recognized,  con- 
ceptually. In  the  ERDA  legislation  and 
further.  I  see  no  suggested  coordinating 
mechanism  for  assuring  that  demlneral- 
izatlon  and  other  water  resource  tech- 
nology keep  pace  with  the  pure  energy 
conversion  research  undertakings. 

Much  the  same  can  be  said  for  the  role 
of  waste  water  renovation  and  re-use  In 
meeting  the  massive  water  demands  im- 
plicit In  conversion  of  oil  shale  and  coal 
to  liquid  or  gaseous  forms.  I  am  par- 
ticularly appreheiaslve  that  in  our  rush 
from  one  crisis  to  another  that  we  lose 
sight  of  the  fact  that  one  of  the  products 
of  our  concern  for  water  qiiallty.  m  the 
environmental  sense,  now  has  the  capa- 
bility to  save  our  skins  In  the  energy 
crisis.  Technologj-  emerging  for  predis- 
charge  treatment  of  municipal  and  In- 
dustrial wastes,  if  not  permitted  to  get 
lost  In  the  energy  dialog,  can.  indeed, 
make  it  possible  to  realize  the  more  ex- 
citing benefits  of  energy  R.  Ii  D.  by  pro- 
viding reuseable  quantities  of  process 
and  cooling  water  I  find  no  inherent 
awareness  of  this  fact  in  the  skeleton 
outline  set  forth  in  the  ERDA  bill. 

Last  but  not  the  least,  by  any  means. 
IS  the  utilization  of  geoLhermal  resources 
This  resource  is  totally  renewable  but 
little  or  nothing  is  known  about  It.  Esti- 
mates  of  geothermal  energy  potential  run 
into  the  tens  of  thousands  of  mega- 
watts— admittedly  a  small  part  of  our 
needs  but  one  which  should  not  be  over- 
looked. The  administration's  attention  to 
tliis  potential  has  been  marked  by  delay 
and  lack  of  financial  support.  For  in- 
stance, it  has  taken  more  than  3  years 
to  develop  the  rules  for  leasing  public 
lands  for  geothermal  exploration  and 
research  funds  have  been  grossly  Uiade- 
quate  One  can  only  hope  that  the  As- 
sistant Administrator  for  Advanced  En- 
ergy Systems  will  be  more  Inclined  to 
move  forward  in  this  area  of  study  than 
has  been  the  case  In  the  past.  I  would 
also  encourage  him  to  pay  some  atten- 
tion to  the  use  of  the  water  content  of 
geothermal  resources  We  know,  for  ex- 
ample, that  it  is  quite  highly  mineralized 
and  must  be  treated  extensively  to  per- 
mit beneficial  use  This  Is  another  area 
where  coordination  with  ongoing  pro- 
grams of  other  departments  and  agen- 
cies will  be  of  crucial  Importance 

In   closing.    Mr    Chairman.    I    believe 
ERDA  Is  a  step  In  the  right  direction 
What  I  have  been  saying  Is  that  It  Is 
not  and   should   not  be  viewed  as   the 


December  19,  1973 


be-all  and  end-all  of  our  energy  research 
effort.  The  people  selected  to  run  ERDA 
must  understand  that  there  are  other 
things  that  are  as  Important  to  our  over- 
all success  as  the  things  that  are  being 
specifically  transferred  to  them.  If  they 
fail  to  so  understand  and  the  high  levels 
of  the  administration  do  not  give  mean- 
mg  to  thissajjderstandlng  with  fiscal  sup- 
port, then  the  enactment  of  H.R.  11510 
will  not  achieve  our  expectations  for  It 

Mr.  BINOHAM.  Mr.  Chairman.  I  rise 
In  support  of  H.R.  11510.  the  Energy  Re- 
organization Act  of  1973.  which  is  de- 
signed to  reorganize  and  consolidate  cer- 
tain functions  of  the  Federal  Govern- 
ment Into  a  new  Eiiergy  Research  and 
Development  Administration  'ERDA' 
and  a  Nuclear  Eiiergy  Commission 
<  NEC ) .  ERDA  will  be  put  In  charge  of  all 
the  energy  research  and  development  ac- 
tivities of  the  Federal  Government.  In- 
cluding those  presently  managed  by  the 
Department  of  the  Interior,  the  Atomic 
Energy  Commission,  the  National  Sci- 
ence Foundation,  and  the  Environmen- 
tal Protection  Agency  The  new  NEC  will 
retain  control  over  the  regulatory  and 
licensing  functions  of  the  Atomic  Eiiergy 
Commission,  and  will  be  charged  with 
insuring  the  protection  of  the  public  and 
the  environment  against  nuclear  health 
and  safety  risks  associated  with  the  use 
of  nuclear  materials. 

This  legislation  is  primarily  a  reor- 
ganization bill,  although  it  does  give  the 
ERDA  Administrator  broad  authority  to 
conduct  research  and  development  of  ex- 
isting and  experimental  energy  sources. 
It  meets  a  real  need.  In  that  the  present 
Federal  Government  organization  to 
meet  the  energy  crisis  is  characterized 
by  lack  of  coordination  overlap  In 
responsibilities,  and  confusion.  The 
United  States  clearly  needs  a  new  or- 
ganizational base  for  a  well-managed, 
centrally  directed  attack  on  developing 
new  sources  of  clean  energy.  Only  such 
an  organization  will  allow  us  to  remain 
strong,  independent,  and  safe  from  any 
foreign  threat  to  destroy  our  economy  or 
subvert  our  foreign  policy  by  manipulat- 
ing energy  exports  EIRDA  can  provide 
the  structure  for  bringing  to  bear  the 
abilities  of  American  science  and  tech- 
nology to  create  new  energy  sources  in 
the  next  decades.  The  development  of  oil 
shale,  coal  gasification,  geothermal 
steam,  solar  energy,  tidal,  wind,  and  nu- 
clear power  sources  will  be  within  the 
jurisdiction  of  this  new  agency 

Reorganization  of  the  Government  Is 
only  the  barebones  of  the  crash  program 
we  need,  however.  This  structure  will 
have  to  be  fieshed  out  with  the  specific 
authorizations  for  research  and  develop- 
ment which  various  committees  of  the 
Congress  will  be  recommending  In  the 
coming  months.  For  example,  I  have  re- 
cently joined  with  other  members  of  the 
Subcommittee  on  Mines  and  Mining  to 
Introduce  H  R  12014.  which  would  au- 
thorize a  major  development  of  oil  shale 
through  a  TVA-type  public  corporation 
Other  proposals  for  solar  energy  develop- 
ment and  coal  gasification  giving  specific 
direction  and  funding  for  energy  research 
will  also  be  forthcoming,  and  will  have  to 
be  integrated  with  ERDA  The  develop- 
ment of  a  Federal  oil  and  gas  corporation 


which  would  undertake  exploration  and 
production  of  oil  and  gas.  perhaps  on  fed- 
erally owned  lands,  is  another  Idea  In 
which  I  and  many  other  Members  of 
Congress  have  a  continuing  Interest  and 
which  should  not  be  ruled  out  by  passage 
of  this  legislation.  Further,  proposals  for 
new  methods  of  financing  the  develop- 
ment of  new  energy  resources,  such  as 
the  creation  of  an  energy  trust  fund 
through  user  charges  on  oU  and  gas.  are 
yet  to  be  given  the  careful  attention  they 
deserve.  All  these  proposals  underline  the 
point  that  the  creation  of  this  new  Fed- 
eral agency  to  coordinate  energy  research 
and  development  Is  only  one  part  of  what 
must  be  a  much  broader  response  to  the 
energy  crisis. 

Many  questions  remain  to  be  answered. 
I  share  the  concern  expressed  by  many  m 
the  Congress  that  ERDA  must  undertake 
a  balanced  approach  to  the  development 
of  new  and  more  efficient  sources  and 
uses  of  energy  We  cannot  allow  this  new 
agency  to  overemphasize  nuclear  or  fossil 
fuel  research  to  the  detriment  of  solar 
energy  or  geothermal  energy,  or  to  better 
methods  of  conserving  the  energy  we  al- 
ready have.  I  offered  an  amendment  to 
this  bill  which  would  have  required  such 
a  balanced  policy,  but  the  House  rejected 
it  with  the  understanding  that  this  Is  the 
Intention  of  the  committee  which  re- 
ported the  bill  and  that  the  Congress  will 
Insist  on  such  a  balanced  research  pro- 
gram. This  Is  an  extremely  Important 
matter,  as  there  is  a  real  danger  that  the 
experts  and  the  expertise  of  the  Atomic 
Energy  Commission  which  Is  being  trans- 
planted to  this  new  agency  will  complete- 
ly dominate  the  orientation  of  Its  policies. 

I  must  add  two  other  cautionary  notes 
First.  It  is  increasingly  clear  that  the  en- 
ergy research  and  development  projects 
which  will  be  undertaken  by  this  new 
agency  will  reqjire  massive  amounts  of 
Federal  spending. 

The  prtorlUes  to  be  followed  in  spend- 
ing these  funds  have  yet  to  be  set  by  the 
Congress  or  the  executive  branch.  The 
House  did  not  accept  an  amendment  I 
proposed  which  would  have  required 
ERDA  to  submit  its  budget  requests  di- 
rectly to  Congress  as  well  as  the  Presi- 
dent's Office  of  Management  and  Budget, 
so  that  Congress  would  be  able  to  evalu- 
ate the  direction  of  our  energy  policies 
with  all  the  facts  available.  Those  facts 
should  Include  the  agency's  requests  for 
funding  before  they  have  been  sifted 
through  and  rearranged  by  OMB  bureau- 
crats. Without  such  a  provision,  the  au- 
thorizing and  appropriations  committees 
of  the  Congress  will  have  to  probe  and 
oversee  the  budget  of  ERDA  with 
great  care,  so  that  Federal  energy  dollars 
are  employed  In  the  most  effective  pos- 
sible ways. 

I  must  also  caution  my  collea*;uefi  and 
the  Nation  not  to  expect  too  much  too 
soon  from  this  new  agency  The  develop- 
ment of  new  sources  of  clean  >>v.frsr--  \n  a 
lengthy  task.  We  cannot  fx;)ert  Ameri- 
can technological  genius  Ui  bail  as  .'it  of 
the  energy  crisis  in  the  immediate  fu- 
ture, if  ever  While  it  Is  quite  possible 
that  major  new  sources  of  energy  from 
the  sun,  the  wind,  the  waves  coal  or  oU 
shale  can  be  developed.  It  l.s  extremely 
unlikely  that  such  discoveries  will  sup- 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42597 


ply  enough  energy  to  allow  this  Nation 
to  continue  its  profligate  use  of  power. 
Conservation  and  more  efficient  uses  of 
energy  must  become  the  watchwords  of 
this  Nation.  With  less  than  a  sixth  of  the 
world's  population,  we  account  for  one- 
third  of  the  world's  use  of  energy,  and 
our  use  of  energy  has  been  climbing  at 
the  rate  of  5  percent  a  year  for  the  past 
decade.  Such  explosive  growth  could  not 
continue  indefinitely.  Hopefully  the  pres- 
ent crisis  will  Instill  a  new  conservation 
ethic  in  the  American  pubhc,  so  that 
whatever  new  sources  of  energy  ERDA 
may  help  develop  will  be  used  wisely  and 
efficiently. 

Finally,  I  am  pleased  that  this  bill  In- 
corporates a  proposal  I  first  made  on 
October  27.  1969.  to  separate  the  author- 
ity to  promote  and  develop  nuclear  power 
from  the  authority  to  regulate  that 
power.  I  have  long  pointed  to  the  Incon- 
sistency and  conflict  created  by  one 
agency,  the  Atomic  Energy  Commission, 
being  charged  with  both  encouraging  the 
use  of  nuclear  power  and  at  the  same 
time  trying  to  regulate,  Ucense.  and  in- 
sure the  safe  operation  of  that  power.  I 
pointed  to  a  considerable  weight  of  evi- 
dence that  these  contradictory  roles  led 
In  many  cases  to  less  stringent  safety 
standards,  for  example,  than  many  ex- 
perts thought  wise,  for  fear  that  more 
stringent  standards  would  discourage  the 
development  of  such  things  as  nuclear 
power  plants.  I  am  gratified  that  the  leg- 
islation before  us  todaj-  finally  recognizes 
the  merit  of  my  proposal,  and  separates 
the  development  of  nuclear  power  from 
the  promotion  of  Its  use. 

This  is  Important  legislation,  and  I  am 
confident  that  It  can  help  reverse  the 
growing  dependence  of  this  Nation  on 
foreign  sources  of  energy.  I  urge  the 
House  to  approve  it. 

Mr.  BROWN  of  Ohio.  Mr,  Chairman, 
this  bUl,  H.R.  11510,  is  needed  now  as 
part  of  the  response  to  meet  the  energy 
crisis.  I  do  not  have  to  belabor  the  point 
that  there  Is  a  crisis  and  that  the  Con- 
gress must  provide  the  programs  and 
organization  required  to  respond  to  that 
crisis.  This  bill  Is  part  of  that  response, 
and  a  very  Important  part. 

The  reason  Is  this  crisis  will  not  dis- 
appear once  we  resume  oil  Imports.  We 
need  to  develop  new  energj'  sources  as 
well  as  Increase  the  production  of  exist- 
ing energy  resources.  Increase  the  effi- 
ciency of  our  generation  sj-stems,  and 
conserve  what  energv  we  ran  produce.  Li 
the  short  run.  we  will  need  the  emergency 
allocation  and  oorLser\-ation  programs 
which  we  approved  ye.sterday  In  the  Na- 
tional Emergency  Act  In  the  longer  term, 
we  need  to  vastly  e.xpand  our  energy  re- 
search and  development  and  provide  a 
capable  organization  to  develop  and  co- 
ordinate energy  R  &  n  programs  and 
policies 

The  bill  before  u.s  today  l.s  an  enerK>- 
R  4  D  reorganization  bill  There  are 
other  bills  being  worked  on  which 
would  provide  the  additional  funding 
and  programs  for  energy-  R  t  D  Thl.'s 
bill  gives  u.*;  the  organization  without 
prejudice  to  policies  and  program.^  con- 
tained In  other  legislation 

The  advantages  of  this  reorganization 
are  as  follows    First,  it  consolidates  ex- 


isting energy  research  and  development 
programs  into  a  single  independent  En- 
ergy Research  and  Development  Admin- 
istration: second.  It  provides  a  strong 
management  and  policymaking  capabil- 
ity to  lead  this  effort;  third,  it  will  en- 
courage balance,  comprehensive  and  co- 
ordinate programing  of  energy  R.  &  D. 
No  one  energy  source  will  be  slighted 
because  each  will  have  a  Presidential 
appointee,  who  Is  confirmed  by  the  Sen- 
ate, responsible  for  its  development. 

In  addition  to  the  changes  being  made 
In  the  energy  research  and  development 
area,  this  bill  would  split  the  regulatory 
responsibility  from  nuclear  energy  away 
from  the  developmental  or  advocacy 
role  that  in  the  past  have  been  the  joint 
mission  of  the  AEC.  This  change  should 
end  the  charges  that  the  regulators  of 
nuclear  energy  are  inappropriately 
biased. 

I  would  also  like  to  take  note  of  a 
study  on  the  best  way  to  organize  all  en- 
ergy related  regulatory  activities  which 
was  ordered  by  the  President  in  his  Jime 
29  energy  statement.  Mr.  Ash  sent  me 
a  letter  on  August  13  describing  how 
the  study  was  to  be  undertaken,  and  I 
would  like  to  include  it  in  the  Record  at 
this  point.  I  think  there  are  opportuni- 
ties for  further  improvements  In  the  or- 
ganization of  energy  regulatory  pro- 
grams, and  I  hope  this  study  will  be 
the  basis  for  such  changes. 

My  opinion  is  that  this  bill  before  tis 
today  is  landmark  legislation.  I  think 
every  Member  must  agree  that  the 
President's  goal  of  self-sufficiency  In 
clean  energy  for  1980  is  worthy  of  our 
support.  We  will  need  policies  and  pro- 
grams to  achieve  that  goal.  We  also  need 
this  organization.  I  urge  my  colleagues 
to  support  H  R.  11510. 
The  letter  follows: 

Executive   OmcE 
OF   TH«   Prksidbnt, 
Omc«  or  Managemikt  and  Bttdctt. 

Washington.  DC.  Augwst  13,  1973. 
Hon.  Clakencx  J.   Bsown, 
House  of  Rtpresentatives, 
Washington.  D.C. 

Dsab  Me  Brown:  I  was  pleased  to  learn 
of  your  interest  In  the  energy  regulatory 
study  described  in  the  Presidents  June  39 
energy  statement.  As  you  luiow,  the  state- 
ment requested  that  "a  comprehensive  study 
be  imdertaken.  in  full  consultation  with  the 
Congress,  to  determine  the  best  way  to  or- 
ganize all  energy -re  la  ted  regiUatory  activi- 
ties of  the  Oovernment  This  letter  la  to 
outline  the  essential  elements  of  our  regu- 
latory study  plan  In  fuiaument  of  the  com- 
mitment I  made  during  testimony  before 
the  House  Government  Operations  Commit- 
tee on  July  24. 

ORGANIZATTON     Or     THI     STTTDT 

William  O  Doub  has  been  named  Chair- 
man of  the  Energy  Regulatory  Study  Com- 
mittee He  is  eminently  qualified  to  lead  this 
effort  Formerly  Mr  Dcub  was  Chairmari  of 
the  Maryland  P\:b'.:c  Service  Commission, 
the  People  s  Co.insel  of  the  State  c'  Maryland 
and  "a  member  of  the  Exerutlve  Advisory 
Committee  to  the  Federal  Power  Commission 

The  Committee  wll!  Include  senior  per- 
sonnel from  the  Energy  PcUcy  Office  and  key 
IVderal  organlzatlorxs  performing  energy- 
re;8t»d  regulatory  activities  It  will  be  sup- 
ported by  a  fu;:-tlme  study  team  of  per- 
s.,nnel  from  OMB  KEC.  FPC  Interior,  EPA 
and  CEXJ  ThLs  team  will  draw  upon  the  per- 
sonnel   rest.uxces    from    ot^e^   agencies   such 


as  DOT,  Justice,  and  ^TC  on  an  ad-hoc  basis 
when  their  expertise  Is  required  on  specific 

Issues 

Mr  Ijoub  will  be  requesting  a  number  of 
Members  of  Congress  to  identify  points  of 
contact  with  whom  the  Committee  can  dis- 
cuss the  direction  of  the  study,  generally,  as 
well  as  the  specific  issues  raised  during  the 
conduct  of  the  study. 

We  also  plan  to  solicit  opinions  and  views 
from  the  public  durlri^  the  conduct  of  the 
study  to  ensure  that  public  lntere.sts  are 
expressed  and  given  adequate  consideration. 

METHODOLOGY    OF    CONDrrCTING    THE    STTTDT 

The  Objective  of  the  study  Is  to  identify 
alternatives  for ,  organizing  Federal  energy 
regulatory  activities  and  to  identify  the  ad- 
vantages and  disadvantages  of  these  alterna- 
tives. Each  alternative  will  be  evaluated 
against  a  framework  developed  by  the  Com- 
mittee that  recognises  the  economic,  envl- 
ronmentai,  health  and  safety  and  other  in- 
terests as  well  as  objectives  of  adequate  and 
reliable  energy  supply.  In  addition,  the  Com- 
mittee wUl  be  expected  to  provide  its  recom- 
mendatlorw  as  to  the  best  organizational 
alternative.  The  product  of  the  study  wUl  be 
a  repMjrt  to  Governor  L<ove  and  me. 

The  study  will  deal  primarily  with  orga- 
nizational alternatives  for  carrying  out  ex- 
isting regulatory  authority  and  objectives. 
Energy  regulatory  activities,  broadly  defined, 
are  now  carried  on  by  many  agencies  as  a 
part  of  their  overall  missions.  Initially,  the 
study  team  will  survey  all  Federal  agency 
regulatory  activities  before  decisions  are 
made  on  the  regulatory  functions  and  agen- 
cies to  be  focused  upKsn  in  detaU. 

In  addition  to  our  plans  for  frequent  Con- 
gressional consultation  during  the  study,  we 
plan  to  provide  interested  Members  of  Con- 
gress with  the  opportunity  to  review  and 
comment  on  the  conclusions  and  recommen- 
dations of  the  study  before  developing  the 
Administration's  position.  Similarly,  we  plan 
to  obtain  public  review  and  comment  to  the 
study's  conclusions  and  recommendations. 

MAJOS    PHASES    OF    THB    STtTST 

The  following  Is  a  preUmlnary  description 
of  the  study's  major  phases  and  the  time- 
table for  completing  each.  One  of  the  first 
tasks  to  be  addressed  after  formation  of  the 
study  team  wlU  be  to  finalize  the  schedule 
and  develop  the  necessary  details : 

Phase  I— Develop  detailed  descriptions  of 
Federal  energy-related  regtUatory  activities 
being  performed  by  Federal  agencies,  depart- 
ments and  commissions — (Septeml>er  1973); 

Phase  n — Develop  general  conception  of 
organizational  alternatives;  refine  and  estab- 
lish tentative  Judgments  on  the  merits  of 
each— ( October  1973) ; 

Phase  m — Meet  with  appropriate  public 
groups  (Industry.  State,  envtronmentaUst 
and  consumer)  to  obtain  public  participa- 
tion—  (December  1973) ; 

Phase  rv — Analyze  alternatives  in  consid- 
eration of  Congressional  and  public  partici- 
pation to  arrive  at  conclusions  and  recom- 
mendations—  (  January  1974> ; 

Phase  V — Prepare  the  study  report — (Feb- 
ruary 1974) ; 

Phase  \T — Obtain  Congressional  and  pul>- 
llc  review  and  comment  to  the  report's  con- 
clusions and  recommendations —  May  1974): 

Phase  VII — Formulate  Executive  Branch 
Position— I  June  1974); 

Let  me  reiterate  that  I  welcome  this  oppor- 
tunity to  exchange  ideas  with  the  Congreas 
on  the  conduct  of  the  energy  regtilatcM^' 
study.  I  hope  that  the  elements  of  the  regu- 
latory study  plan  which  I  have  described  ad- 
dress your  questions.  If  you  have  a;  y  addi- 
tional questions  about  the  regulatory  study 
plan.  I,  as  well  as  Mr.  Doub,  wUl  be  happy  to 
answer  them. 

Sincerely. 

Rot  L.  Ash, 

Dirtctof. 


42598 


CONGRESSIONAL  RECORD  —  HOUSE 


Mr.  DANIELSON.  Mr.  Chairman,  for 
the  ptist  10  months.  I  have  strongly  ad- 
vocated a  study,  by  the  Department  of 
Transportation,  of  the  relationship  be- 
tween car  size  and  fuel  consimiptlon.  as 
well  as  air  pollution,  highway  safety,  and 
other  Important  factors  For  this  reason, 
I  am  very  pleased  that  the  Committee  on 
Interstate  and  Foreign  Commerce  has 
included  a  provision  for  such  a  study  in 
section  209  of  H.R.  11450.  I  note  that, 
in  many  respects,  section  209  closely 
parallels  the  legislation  I  introduced  on 
this  subject  on  February  6  of  this  year. 
House  Joint  Resolution  301.  which  has 
13  cosponsors. 

In  this  time  of  a  fuel  shortage,  when 
many  car  buyers  are  choosing  small  cars, 
and  many  Members  of  Congress  are  ad- 
vocating a  mandatory  reduction  in  car 
size,  it  is  necessary  that  we  study  the 
potential  consequences  of  a  switch  to 
small  cars,  both  good  and  bad,  so  that  we 
will  have  all  the  information  we  need  to 
take  action  on  this  vital  subject. 

SecUon  209  imposes  upon  the  Environ- 
mental Protection  Agency,  the  duty  of 
conducting  a  study  to  determine  whether 
a  mandator>-  increase  of  20  percent  In 
fuel  economy  for  all  motor  vehicles  would 
be  feasible  or  practical.  Certainly,  this 
approach  should  receive  study,  but  it 
would  be  imwise  to  limit  the  scope  of  the 
study  to  this  one.  out  of  several,  options. 
I  question,  for  example,  whether  a 
Chevrolet  Vega,  or  a  Ford  Pinto,  already 
getting  over  20  miles  to  the  gallon,  needs 
any  improvement,  or  whether  such  cars 
as  Cadillacs  or  Oldsmobiles  need  an  im- 
provement of  only  20  percent,  which 
would  raise  them  from  perhaps  8  miles 
per  gallon,  to  9  6  miles  per  gallon.  The 
proposed  20-percent  approach  would  re- 
quire the  least  Improvement  from  the 
worst  gas-guzzlers,  and  the  greatest  im- 
provement from  the  most  economical 
cars.  This  problem  is  demonstrated  by 
the  following  uble.  which  is  based  on 
mlles-per-galion  figures  determined  by 
the  Environmental  Protection  Agency: 

njEL  ECOHOMY  IN  MILES  PER  (ULLON-REWESENTAT.VE 
EXAMPLES 


December  19,  1973 


Mantif  acnirtr  and  no(M 


S.S<10-tb  citts: 
Oldtmabilc  Toronade 
ChevrflM   C  20  >«bur6an 
B««k   Ekcira    .. 

fail)    LilXOin 

CMiilac  eiOondt 

S.SOO-lb  dau: 

C»fr««f:  OadfiFS 

Ford    Montafi 
4J00-«e    dan.  OMiaMWita 

fM^t  dau,  Ferrifi    365 

Ja«itar  E-tfp*  Mfics  lit  .. 
Aflwrcan  Mgton  Hofnal. . 
Fwj    Mavvnck 

UMvnIfi        V«faHal£it- 

badi 
F«r«  PMO 


PrBJtflt 

20- 

Proiactad 

miles 

»«rcert 

mil«s 

9*' 

improve- 

per 

gallon 

ment 

falton 

6.S 

1.36 

9.16 

7  1 

1.42 

S.  S2 

7.S 

1.52 

9.12 

7.9 

I.&8 

9  44 

1.0 

l.S 

9  6 

7  9 

1  S8 

9  4« 

».  I 

1  12 

10  92 

7  3 

1.46 

176 

6.3 

1  26 

7  5« 

9  7 

1  94 

11.64 

II  0 

2.20 

13  2 

12  1 

I  42 

14  M 

24  6 

4.92 

29  W 

22.1 

4.M 

27  36 

Many  Members  of  Congress  have  ad- 
vocated another  approach  to  fuel  econ- 
omy, such  as  a  miles-per-gailon  sUnd- 
ard  of  efficiency,  which  would  require 
th«  moBt  Improvement  from  the  worst 
gajj-gu2zler8.  and  no  Improvement  from 


those  cars  already  getting  over  18  or  20 
mUes  per  gallon.  That  approach  should 
be  studied  as  well.  Moreover,  from  the 
standpomt  of  economy  in  government, 
If  the  EPA  Is  going  to  take  the  time  and 
expense  to  study  automobile  fuel  econ- 
omy, then  It  should  study  the  entire  sub- 
ject, not  just  part  of  It. 

Mr.  Chairman,  were  there  not  so  many 
amendments  waiting  at  the  Speaker's 
desk  for  action  by  the  House,  with  no 
opportunity  under  the  rule  for  full  dis- 
cussion and  debate.  I  would  offer  an 
amendment  to  section  209  to  expand  the 
scope  of  the  study,  which  reads  as  fol- 
lows: 

In  section  209.  on  page  26,  line  22.  strike 
the  period  and  insert  In  Ueu  thereof:  ".  and 
the  energy  conservation  potential  and  prac- 
ticality of  developing  standards  pertaining 
to  weight,  engine  size,  and  accessory  equip- 
ment of  new  gasoline -powered  automobiles 
so  as  to  achieve  an  average  fuel  consumption 
rate  for  all  automobiles  operated  in  the 
United  SUtes  of  18  or  more  miles  per  gal- 
lon by  the  model  year  1979.  and  20  or  more 
miles  per  gaUon  by  the  model  year  1984  • 

This  amendment  would  make  it  clear 
that  the  EPA  Is  not  to  limit  the  scope 
of  the  study  to  a  single  area.  However, 
because  of  the  late  hour  In  the  consid- 
eration of  H.R.  11450,  and  the  absence 
of  opportimity  for  full  debate,  I  will  not 
offer  this  amendment. 

If  section  209  survives  final  passage 
of  this  legislation  and  any  subsequent 
conference  committee  action,  I  am  hope- 
ful that  the  EPA.  in  conducting  this 
study,  wUl  not  unnecessarily  limit  the 
scope  of  its  research  and  recommenda- 
tions. If  the  EPA  concludes  that  a  man- 
datory fuel  efficiency  improvement  of 
20  percent  for  all  cars  Is  not  practical.  I 
very  much  hope  they  will  consider  al- 
ternative methods  of  bringing  about  an 
improvement  In  fuel  economy,  and  in- 
clude in  their  report  some  recommenda- 
tions on  those  alternatives. 

Mr.  PRICE  of  Texas.  Mr.  Speaker,  I 
strongly  oppose  the  intolerable  and  un- 
workable emergency  energy  bill,  pri- 
marily because  It  will  work  to  extend, 
not  shorten,  our  period  of  shortage.  The 
House.  In  an  eagerness  to  prevent  pro- 
ducers from  reaping  what  some  feel 
would  be  excess  profits,  has  used  as  a 
base  period,  years  In  which  little  oil  was 
being  produced  due  to  an  already  insuffi- 
cient profit  incentive  That  measure  re- 
mained In  the  bill  through  conference 
The  result  will  be  that  this  Nation's 
10.000  independent  producers,  who  sink 
some  80  percent  of  the  exploratory  wells 
In  this  country,  will  be  disinclined  to 
explore   for   new   oU   supplies 

We  are  In  a  period  of  energy  shortage. 
We  need  to  conserve  energy,  stimulate 
supply  and  boost  research  Into  new  po- 
tential energy  fields.  I  must  stress  here 
the  Importance  of  stimulating  energy 
production.  Legl'»laUon  which  works 
against  a  legitimate  profit  Incentive  for 
energy  production,  which  this  bill  now 
does,  will  simply  extend  our  period  of 
shortage  because  producers  will  have  no 
reaaon  to  expand  their  exploration  op- 
era tl(Ru, 

I  am  opposed  to  this  bill  If  It  Is  parsed. 
I  am  hopeful  the  President  will  veto  It; 
and  in  the  meantime,  I  hope  that  the 


Members  of  this  body  will  take  a  rational 
look  at  the  real  situation  of  energy  pro- 
duction and  its  problems  in  this  country. 

I  feel  that  this  legislation  does  not  ad- 
dress the  problem.  It  Is  discriminatory 
and  completely  unworkable  administra- 
tively; it  would  cause  only  more  con- 
fusion. 

Mr.  HOLIFIELD,  Mr.  Chairman,  I 
have  no  further  requests  for  time. 

The  CHAIRMAN.  Pursuant  to  the  rule, 
the  Clerk  will  now  read  the  amendment 
in  the  nature  of  a  substitute  recommend- 
ed by  the  Committee  on  Government  Op- 
erations now  printed  in  the  bill  as  an 
original  bill  for  the  purpose  of  amend- 
ment. 

The  Clerk  read  as  follows: 

Be  it  enacted  by  the  SenaU  and  House  of 
Representatives    of    the    United    States    of 
America  in  Congress  assembled, 
SHORT  Trru: 

Section   1.  This  Act  may  be  cited  as  the 
Energy  Reorganization  Act  of  1973". 

DECLAaATION    OF   DEFENSE 

Sec.  2.  (a)  The  Congress  hereby  declares 
that  the  general  welfare  and  the  common 
defense  and  security  require  effective  action 
to  develop,  and  Increase  the  efficiency  and 
rellabUlty  of  use  of,  aU  energy  sources  to 
meet  the  needs  of  present  and  future  gen- 
erations, to  increase  the  productivity  of  the 
national  economy  and  strengthen  lt«  posi- 
tion In  regard  to  International  trade,  to  make 
the  Nation  self-sufflclent  in  energy,  to  ad- 
vance the  goals  of  restoring,  protecting,  and 
enhancing  envlromnental  quality,  and  to 
assure  public  health  and  safety. 

(b)  The  Congress  finds  that,  to  best  achieve 
these  objectives,  improve  Oovemment  opera- 
tions, and  assure  the  coordinated  and  effec- 
tive development  of  all  energy  sources.  It  is 
necessary  to  establish  an  Energy  Research 
and  Development  Administration  to  bring 
together  and  direct  Federal  activities  relating 
to  research  and  development  on  the  various 
sources  of  energy,  to  Increase  the  efficiency 
and  rellabUlty  In  the  use  of  energy,  and  to 
carry  out  the  performance  of  other  functions. 
Including  the  Atomic  Energy  Commission's 
military  and  production  activities. 

(c)  The  Congress  further  declares  and 
flnds  that  It  is  in  the  public  Interest  that  the 
licensing  and  related  regulatory  functions  of 
the  Atomic  Energy  Commission  be  separated 
from  the  performance  of  the  other  functions 
of  the  Commission  transferred  pursuant  to 
this  Act,  and  that  this  separation  be  effected 
In  an  orderly  manner  assuring  adequacy  of 
technical  and  other  resources  necessary  for 
the  performance  of  each. 

TITLE    I— ENERGY    RESEARCH    AND    DE- 
VELOPMENT  ADMINISTRATION 
establishment 

Sec.  101  There  Is  hereby  established  an 
Independent  executive  agency  to  be  known 
as  the  Energy  Research  and  Development  Ad- 
ministration (hereinafter  in  this  Act  re- 
ferred to  as  the  "Administration"). 
omcE«s 

S«c.  102.  (a)  There  shall  be  at  the  head  of 
the  Administration  an  Administrator  of 
Energy  Research  and  Development  (here- 
inafter In  this  Act  referred  to  as  the  ■Ad- 
ministrator"), who  shall  be  appointed  by  the 
President,  by  and  with  the  advice  and  con- 
sent of  the  Senate  The  Administrator  shall 
receive  compensation  at  the  rate  now  or 
hereafter  prescribed  for  offices  and  positions 
at  level  II  of  the  Executive  Schedule  (6 
U  S  C  5313)  The  Administration  shall  be  ad- 
ministered under  the  supervUlon  and  di- 
rection of  the  Administrator,  who  shall  be 
responsible  for  the  efficient  and  coordinated 
management  of  the  Admin Utratlon 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42599 


(b)  There  shall  be  In  the  Administration 
a  Deputy  Administrator,  who  shall  be  ap- 
pointed by  the  President,  by  and  with  the 
advice  and  consent  of  the  Senate,  and  who 
shall  receive  compensation  at  the  rate  now 
or  hereafter  prescribed  for  offices  and  i>osl- 
tlons  at  level  III  of  the  Executive  Schedule 
(5  V3.C.  5314). 

(c)  There  shall  be  In  the  Administration 
five  Assistant  Administrators,  one  of  whom 
shall  be  responsible  for  fossU  energy,  another 
for  nuclear  energy,  another  for  environment, 
safety,  and  conservation,  another  for  re- 
search and  advanced  energy  systems,  and 
another  for  national  security.  The  Assistant 
Administrators  shall  be  appointed  by  the 
President,  by  and  with  the  advice  and  con- 
sent of  the  Senate  and  shall  receive  compen- 
sation at  the  rate  now  or  hereafter  pre- 
scribed for  offices  and  positions  at  level  IV 
of  the  Executive  Schedule  (5  U5.C.  5315). 

(d)  There  shall  be  In  the  Administration 
a  General  Counsel  who  shall  be  app>olnted  by 
the  Administrator  and  who  shall  serve  at 
the  pleasure  of  and  be  removable  by  the  Ad- 
ministrator. The  General  Counsel  shall  re- 
ceive compensation  at  the  rate  now  or  here- 
after prescribed  for  offices  and  positions  at 
level  V  of  the  Executive  Schedule  (5  U.S.C. 
5316). 

(e)  There  shall  be  In  the  Administration 
not  more  than  seven  additional  officers  ap- 
pointed by  the  Administrator,  who  shall  re- 
ceive c»mpensatlon  at  the  rate  now  or  here- 
after prescribed  for  offices  and  positions  at 
level  V  of  the  Executive  Schedule  (6  U.S.C. 
5316).  The  positions  of  such  officers  shall  be 
considered  career  p)osltlons  and  be  subject  to 
subsection  161d.  of  the  Atomic  Energy  Act. 

(f)  The  Division  of  MUltary  Application 
transfered  to  and  established  in  the  Ad- 
ministration by  section  104(a)  of  this  Act 
shall  be  under  the  direction  of  a  Director 
of  Military  Application,  who  shall  be  ap- 
pointed by  the  Administrator  and  who 
shall  serve  at  the  pleasure  of  and  be  re- 
movable by  the  Administrator  and  shall  be 
an  active  commissioned  officer  of  the  Armed 
Forces  serving  In  general  or  flag  officer  rank 
or  grade  The  functions,  qualifications,  and 
compensation  of  the  Director  of  Military  Ap- 
plication shall  be  the  same  as  those  provided 
under  the  Atomic  Energy  Act  of  1954.  as 
amended,  for  the  Assistant  General  Manager 
for  Military  Application. 

fg)  Officers  appointed  pursuant  to  this 
section  shall  i>erform  such  functions  aa  the 
Administrator  shall  specify  from  time  to 
time. 

(h)  The  Deputy  Administrator  (or  In  the 
absence  or  disability  of  the  Deputy  Admin- 
istrator, or  In  the  event  of  a  vacancy  In  the 
office  of  the  Deputy  Administrator,  an  As- 
sistant Administrator,  the  General  Counsel 
or  such  other  official,  determined  according 
to  such  order  as  the  Administrator  shall  pre- 
scrlbel  shall  act  for  and  perform  the  func- 
tions of  the  Administrator  during  any  ab- 
sence or  disability  of  the  Administrator  or  in 
the  event  of  a  vacancy  In  the  office  of  the 
Administrator 

REspoNsran-rnKS  or  the  administrator 

Sec.  103.  The  responsibilities  of  the  Ad- 
ministrator shall  Include,  but  be  limited  to — 

(1)  exercising  central  responsibility  for 
policy  planning,  coordination,  support,  and 
management  of  research  and  development 
programs  respecting  all  energy  sources,  in- 
cluding a-saesslng  the  requirements  for  re- 
search and  development  In  regard  to  various 
energy  sources  In  relation  to  near-term  and 
long-range  needs,  policy  planning  in  regard 
to  meeting  those  requirements,  undertaking 
programs  for  the  optimal  development  of  the 
varloxiB  forms  of  energy  soxirces.  managing 
such  programs,  and  disseminating  informa- 
tion resulting  tberefrmn; 

(2)  encouraging  and  conducting  research 
and  development   to  demonstrate   the  com- 

CXIX  — 2M3— Partes 


merclal  feasibility  and  practical  applications 
of  energy  sources  and  utilization  tech- 
nologies; 

(3)  undertaking  research  and  develop- 
ment In  the  extraction,  conversion,  storage, 
transmission,  and  utilization  phases  related 
to  the  development  and  use  of  energy  from 
fossil,  nuclear,  solar,  geothermal.  and  other 
energy  sources; 

(4)  engaging  In  and  supi>ortlng  environ- 
mental, biomedical,  physical,  and  safety  re- 
search related  to  the  development  of  energy 
sources  and   utilization   technologies; 

(5)  taking  into  account  the  existence, 
progress,  and  results  of  other  public  and 
private  research  and  development  activities 
relevant  to  the  Administration's  mission  in 
formulating  its  own  research  and  develop- 
ment programs; 

(6)  participating  In  and  supporting  co- 
operative research  and  development  projects 
which  may  Involve  contributions  by  public 
or  private  jjcrsons  or  agencies,  of  financial 
or  other  resources  to  the  performance  of 
the  work; 

(7)  developing,  collecting,  distributing, 
and  making  available  for  distribution,  scien- 
tific and  technical  Information  concerning 
the  manufacture  or  development  of  energy 
and  Its  efficient  extraction,  conversion,  trans- 
mission, and  utilization;  and 

(8)  encouraging  and  conducting  research 
and  development  for  the  conservation  of 
energy. 

TBANSTKB    OF   FUNCTIONS 

Sec.  104.  (a)  There  are  hereby  transferred 
to  and  vested  In  the  Administrator  all  func- 
tions of  the  Atomic  Energy  Commission, 
the  Chairman  and  members  of  the  Commis- 
sion, and  the  officers  and  components  of  the 
Commission,  except  as  otherwise  provided 
In  this  Act. 

(b)  The  General  Advisory  Committee  es- 
tablished pursuant  to  section  26  of  the 
Atomic  Energy  Act  of  1964.  as  amended 
(42  U.S.C.  2036),  the  Patent  Compensa- 
tion Board  established  pursuant  to  section 
157  of  the  Atomic  Energy  Act  of  1954.  as 
amended  (42  U.S.C.  2187).  and  the  Divisions 
of  Military  Application  and  Naval  Reactors 
established  pursuant  to  section  25  of  the 
Atomic  Energy  Act  of  1954.  as  amended 
(42  U.S.C.  2035),  are  transferred  to  the 
Energy  Research  said  Development  Adminis- 
tration and  the  functions  of  the  Commission 
with  respect  thereto,  and  with  respect  to 
relations  with  the  Military  Liaison  Commit- 
tee established  by  sectloln  27  of  the  Atomic 
Energy  Act  of  1954,  as  amended  (42  VS.C. 
2037),  are  transferred  to  the  Administrator. 

(c)  There  are  hereby  transferred  to  and 
vested  in  the  Administrator  such  functions 
of  the  Secretary  of  the  Interior,  the  Depart- 
ment of  the  Interior,  and  officers  and  compo- 
nents of  such   department — 

( 1 )  as  relate  to  or  are  utilized  by  the  Office 
of  Coal  Research  estaMished  pursuant  to  the 
Act  of  Julv  1,  1960  (74  Stat.  336;  30  VSC 
661-668): 

(2)  as  relate  to  or  are  utilized  in  connec- 
tion with  fossil  fuel  energy  research  and 
development  progranvs  and  related  activities 
conducted  by  the  Bureau  of  Mines  "energy 
centers"  and  svnthane  plant  to  provide  great- 
er efficiency  In  the  extraction,  processing. 
and  utilization  of  energy  resources  for  the 
purpose  of  conserving  those  resources,  devel- 
oping alternative  energy  resources  svich  as 
oil  and  gas  secondary  and  tertiary  recovery, 
oil  shale  and  synthetic  fuels,  Improving 
methods  of  managing  energv-reiatwl  wastes 
and  pollutants,  and  providing  technical 
guidance  needed  to  establish  and  adminis- 
ter national  energy  policies:  and 

(3)  as  relate  to  or  are  utilized  for  under- 
ground electric  power  transmission  research. 

(d)  There  are  hereby  transferred  to  and 
vested  In  the  Administrator  such  functions 
of  the  National  Science  Foundation  as  re- 
late to  or  are  utuiaed  in  connection  with — 


( 1 )  solar  heating  and  cooling  development: 
and 

(2)  geothermal  jjower  development. 

(e)  There  are  hereby  transferred  to  and 
vested  in  the  Administrator  such  functions 
of  the  Environmental  Protection  Agency  and 
the  officers  and  components  thereof  as  re- 
late to  or  are  utilized  In  connection  with — 

(1)  the  development  and  demonstration 
of  alternative  automotive  power  systems;  and 

(2)  the  development  and  demonstration 
of  precombustlon,  combustion,  and  post- 
combustion  technologies  to  control  emis- 
sions of  pollutants  from  stationary  sources 
using  fossil  fuels. 

(f)  To  the  extent  necessary  or  appropri- 
ate to  perform  functions  and  c&rry  out  pro- 
grams transferred  by  this  Act.  the  Adminis- 
trator may  exercise,  in  relation  to  the  func- 
tions so  transferred,  any  authority  or  part 
thereof  available  by  law.  Including  appro- 
priation Acts,  to  the  official  or  agency  from 
which  such  functions  were  transferred. 
tbansfer  or  personnel  and  other   matters 

Sec.  105.  (a)  Except  as  provided  In  the 
next  sentence,  the  personnel  employed  In 
connection  with,  and  the  personnel  positions, 
assets,  liabilities,  contracts,  property,  records, 
and  unexpended  balances  of  appropriations, 
authorizations,  allocations,  and  other  funds 
employed,  held,  used,  arising  from,  available 
to  or  to  be  made  available  In  connection  with 
the  functions  and  programs  transferred  by 
this  Act.  are,  subject  to  section  202  of  the 
Budget  and  Accounting  Procedures  Art  of 
1950  (31  U.SC.  581c),  correspondingly  trans- 
ferred for  appropriate  allocation.  Person- 
nel positions  expressly  created  by  law,  per- 
sonnel occupying  those  positions  on  the  ef- 
fective date  of  this  Act,  and  personnel  au- 
thorized to  receive  compensation  at  the  rate 
prescribed  for  offices  and  p>osltions  at  levels 
n.  in,  rv.  or  V  of  the  Executive  Schedule 
(5  V&.C.  5313-5316)  on  the  effective  date  of 
this  Act  shall  be  subject  to  the  provisions  of 
subsection  (c)  of  this  section  and  section 
301  of  this  Act. 

(b)  Except  as  provided  In  subaection  (c), 
transfer  of  nontemporary  p>ersonnel  pur- 
suant to  this  Act  shall  not  cause  any  such 
employee  to  be  separated  or  reduced  in  grade 
or  compensation  for  one  year  after  such 
transfer. 

(c)  Any  person  who,  on  the  e;Tectlve  date 
of  this  Act,  held  a  position  eonu>ensated  in 
accordance  with  the  Executive  Schedule  pre- 
scribed in  chapter  53  of  title  5  cf  the  United 
States  Code,  and  who,  without  a  break  in 
service.  Is  aopwlnted  In  the  Administration 
to  a  position  having  duties  comparable  to 
those  performed  immediately  preceding  his 
appointment  shall  continue  to  be  compen- 
sated in  his  new  oosltlon  at  not  less  than 
the  rate  nrorlded  for  his  previous  t>cs'.t;on 

ADMINTFTRATI^T     PROVISIONS 

Sec.  106.  la)  The  AdmlnlstrattM"  Is  author- 
ized to  prescribe  such  policies,  standards. 
criteria,  procedures,  rules,  and  regulations 
as  he  may  deem  to  be  necessary  or  appro- 
priate to  perform  functlon.s  now  or  hereafter 
vested  in  him 

(b)  "n^e  Administrator  shall  engage  In 
such  policy  planning,  and  perform  such  pro- 
gram evaluation  analvses  and  other  stiidles. 
as  may  be  necessary  to  promote  the  efficient 
and  coordinated  administration  of  the  Ad- 
ministration and  properly  assess  proirress  to» 
ward   the   achievement   of   •:.■=   missions 

(C)  Except  as  other*  Ise  eipre?«:y  provided 
by  law.  the  .\dmlnl.«Trator  mav  delfica;^  a.r.T 
of  his  functions  to  such  o»c*rj  and  em- 
ployes of  the  AdnUnlstratlon  as  he  may  des- 
ignate, and  may  authorize  such  successive 
redelegatlons  of  such  functions  as  he  may 
deem  to  be   necessary  or  appro|»lats. 

td)  Except  as  provided  in  section  102  and 
In  sscUoQ  I04<b).  the  Administrator  may 
organlBS  the  Admlnistratloc  as  b&A*y  <ir*a. 
to  be  nscBwary  or  ai^troprlate/ 

(e)  The  Administrator  is  autkorti^d  to  es- 


>£5 


42tm 


CONGRFSSIONAI    RFC  ORD— HOUSE 


t*bllah.  inAait4Lln.  alter,  or  dlicontlnue  •ucb 
State.  regionaJ,  diatrlct.  local,  or  other  Held 
offlcea  aa  he  may  (le««i  to  be  neceasary  or 
appropriate  to  perfom  functloiw  now  or 
hereafter  vested  In  him. 

(f)  The  Adminiatrator  shall  cause  a  seal 
of  offloe  to  be  made  for  the  Administration  of 
ruch  device  as  he  shall  approve,  and  Judicial 
notice  shall  be  taken  of  such  seal 

ig)  The  Administrato*-  la  authorized  to  m- 
tablish  a  working  capital  fund,  to  be  avaU- 
able  without  flacal  year  limitation,  for  ex- 
penaea  neceaaary  for  the  maintenance  and 
operation  of  «ich  common  administrative 
services  as  he  shall  find  to  be  dealrable  in 
the  Interesta  of  economy  and  efficiency  There 
shall  be  transferred  to  the  fund  the  stocks 
of  supplies,  equipment,  aaaets  other  than 
real  property.  UabUltlee.  and  unpaid  obliga- 
tions relating  to  the  servlcee  which  he  deter- 
mines will  be  performed  through  the  fund. 
Appropriations  to  the  fund,  in  such  amounts 
as  may  be  neceaaary  to  provide  additional 
working  capital,  are  authoriaed  The  work- 
ing capital  fund  shall  recover,  from  the  ap- 
propriations and  funds  for  which  serrlcea  are 
performed,  either  in  advance  or  by  way  of 
reimbursement,  amouata  which  will  approx- 
imate the  coats  incxirred.  including  the  ac- 
crual of  annual  leave  and  the  depreciations 
of  equipment  The  fund  shaU  also  be  credited 
with  receipts  from  the  sale  or  exchange  of 
Its  property,  and  receipts  in  payment  for 
losB  or  damage  to  property  owned  by  the 
fund 

(h)  Each  department,  agency,  and  Instru- 
mentality of  the  executive  branch  of  the 
Government  is  authorized  to  furnish  to  the 
.Administrator,  upon  his  request,  any  Infor- 
mation or  other  data  which  the  Administra- 
tor deems  necessary  to  carry  out  his  duties 
under  this  title 

msomrEi.  ntn  sxbvtcss 

Sec  107  (a)  The  Administrator  is  author- 
ized to  select,  appoint,  employ,  and  Ox  the 
compensation  of  such  officers  and  employees. 
Including  attorneys,  pursuant  to  section 
161d  of  the  Atomic  Energy  Act  of  1954  as 
amended  (42  V3C  aaoifd))  as  are  neces- 
sary to  perform  the  functions  now  or  here- 
after vested  in  him  and  to  prescribe  their 
functions. 

(b)  The  Administrator  Is  authorized  to  ob- 
tain semces  as  provided  by  section  310B  of 
title  5  of  the  United  States  Code 

<ct  The  Administrator  Ls  authorized  to 
provide  for  participation  of  military  person- 
nel In  the  performance  of  hla  functions 
Members  of  the  Army,  the  Navy,  the  Air 
Force,  or  the  Marine  Corps  may  be  deUUed 
for  service  In  the  Administration  by  the  ap- 
propriate military  Secretary  pursuant  to 
cooperative  agreements  with  the  Secretary, 
for  service  in  the  Administration  in  positions 
other  than  a  position  the  occupant  of  which 
must  be  approved  by  and  with  the  advice 
and  consent  of  the  Senate 

Id)  Appointment,  detail,  or  assignment  to. 
acceptance  of.  and  service  In.  any  appointive 
or  other  position  in  the  Administration 
under  this  section  shall  in  no  way  affect  the 
statu*,  offlce.  rank,  or  grade  which  auch  offl- 
cers  or  enlisted  men  may  occupy  or  h<rid.  or 
any  emolument,  perquisite  right.  prlvUege 
or  benefit  incident  to  or  arising  out  of  any 
such  status,  offlce,  rank,  or  grade  A  member 
so  appointed,  detailed,  or  assigned  shall  not 
•  be  subject  to  direction  or  control  by  hta 
armed  force,  or  any  officer  thereof,  directly 
or  indirectly,  with  respect  to  the  respon- 
MMlltles  exercised  in  the  position  to  which 
appointed.  deUlled.  or  assigned 

(e)  The  Administrator  u  authorized  to  pay 
transportation  expenses,  and  per  diem  in  lieu 
of  subsistence  expenses,  in  accordance  with 
chapter  57  of  title  8  of  the  United  States 
Code  for  travel  between  places  of  recruit- 
ment and  duty,  and  whUe  at  places  of  duty. 
of  pervons  appointed   for  emw^ency.   tern- 


December  19,  1973 


porary.  or  leaaonal  services  In  the  field  serv. 
Ice  of  the  Administration. 

(f)  The  Administrator  Is  authorlred  to 
utUiae.  on  a  reimbursable  basis,  the  services 
of  any  personnel  made  available  by  any  de- 
partment, agency,  or  instrumentality,  hiclud- 
ing  any  Independent  agency,  of  the  Oovem- 
ment. 

(g)  The  Administrator  is  authorlaed  to 
esUbliah  advisory  boards,  in  accordance  with 
the  provisions  of  the  Federal  Advisory  Com- 
mittee Act  (Public  Law  93-463).  to  advise 
with  and  make  recommendations  to  the  Ad- 
ministrator on   legislation,   policies,   admln- 

-J«ration.  research,  and  other  matters 

(h)  The  Administrator  is  authorized  to 
employ  persons  who  are  not  citizens  of  ths 
United  States  In  expert,  scientific,  technical 
or  professional  capacities  whenever  be  deems 
It  In  the  public  interest. 

rowns 
3«c.  loe.  (a)  The  Administrator  U  author- 
laed to  exercise  his  powers  in  such  manner  as 
to  Insure  the  continued  conduct  o*  research 
and  development  and  related  activities  In 
areas  or  fields  deemed  by  the  Administrator 
to  be  pertinent  to  the  acquisition  of  an  ex- 
panded fund  of  scientific,  technical  and 
practical  knowledge  in  energy  matters  Tto 
this  end,  the  Administrator  la  authorized  to 
make  arrangemenU  (including  contracts 
agreements,  and  loans)  for  the  conduct  of 
research  and  develo^jment  activities  with  pri- 
vate or  public  Institutions  or  persons,  includ- 
ing participation  in  joint  or  cooperative 
project*  of  a  reaearch.  developments  or  ex- 
perimental nature;  to  make  payments  (in 
lump  sum  or  installmenU.  and  in  advance 
or  by  way  of  reimbursement,  with  necessary 
adjustmenu  on  account  of  overpaymenu  or 
underpaymenU):  and  generally  to  take 
such  steps  as  he  may  deem  necesenry  or  ap- 
propriate to  perform  functions  now  or  here- 
after vested  in  htm  Such  funcuons  of  the 
Administrator  under  thU  Act  aa  are  ap- 
plicable to  the  nuclear  aotlvitlea  transferred 
pursuant  to  this  tlUe  shall  be  subject  to  the 
provisions  of  the  Atomic  Energy  Act  of  1954 
as  amended,  and  to  other  authority  ap- 
plicable to  such  nuclear  activities.  The  non- 
nuclear  responslbUltlea  and  funcUons  of  the 
Administrator  referred  to  in  sections  103  and 
104  of  thU  Act  shall  be  carried  out  pursuant 
to  the  provisions  of  this  Act,  applicable  au- 
thorlty  existing   Immediately   before  the  ef- 

L?,k", >,'**'•   °'    '*""   '^    <*   ''^   accordance 
with    the    provisions    of    chapter    4    of    ttie 

v't^T^^^T  ""  '"**•  -  ^"^^   <*^ 

(b)  Except  for  public  buUdlngs  as  defined 

in    the    Public    Buildings    Act    of    1959     as 

wnended.   and   with   respect   to   leased  s^ 

^.i"^^  '^J^*  P™'^o'i»  #f  Reorganisation 
Plan  Numbered  18  of  I950)|the  Administrator 
13  authorized  to  acquire  (by  purr:hase  lease 
condemnation,  or  otherwise ) .  construct  Im- 
prove, repair,  operate,  and  maintain  facul- 
ties and  real  ptrjperty  as  the  Admlnlstjatoc 
deems  to  be  necessary  In  and  outside  of  the 
District  of  Columbia.  Such  authority  shall 
apply  only  to  faculties  required  for  the  main- 
tenance and  operation  of  laboratories  re- 
March  and  testing  sites  and  faculties  quar- 
t«r5.  and  related  aooommodatlons  for  em- 
ployees and  dependenu  of  employees  of  the 
Administration,  and  such  other  special -pur- 
pose real  property  as  the  Administrator 
deems  to  be  necessary  in  and  outside  the  Dis- 
trict of  Columbia  Title  to  any  property  or 
interest  therein,  real,  personal,  or  mixed  ac- 
quired pursuant  to  this  section,  shall  be  In 
the  United  States 

<  c » ( 1 )  The  AdmlnUtrator  U  authorlssd  to 
provide,  construct,  or  maintain,  as  neces- 
sary and  when  not  otherwise  available,  the 
following  for  employees  and  their  depend- 
enu stationed  at  remote  locations 

(A)  emergency  medical  services  and  sud- 
plles;  ' 


(B)  food  and  other  subsistence  supplies; 

(C)  messing  facilities: 

(D)  audiovisual  equipment,  accessories 
and  supplies  for  recreation  and  training; 

(B)  reimbursement  for  food,  clothing,  med- 
icine, and  other  supplies  furnished  by  such 
employees  in  emergencies  for  the  temporary 
relief  of  dUtreseed  persons; 

(F)  living  and  working  quarters  and  fa- 
culties; and 

(O)  transportation  for  school-age  depend- 
enu of  employees  to  the  nearest  appropriate 
educational  faculties 

(2)  The  furnishing  of  medical  treatment 
under  subparagraph  (A)  of  paragraph  (1) 
and  the  furnishing  of  services  and  supplies 
under  paragraphs  (B)  and  (C)  of  paragraph 
(1)  shall  be  at  prices  reflecting  reasonable 
value  as  determined   by   the  Administrator, 

(3)  Proceeds  from  relmbursemenu  under 
this  section  shall  be  deposited  In  the  Treas- 
ury and  may  be  withdrawn  by  the  Adminis- 
trator to  pay  directly  the  cost  of  such  work 
or  services,  to  repay  or  make  advances  to 
appropriations  or  funds  which  do  or  wUl  bear 
all  or  a  part  of  such  cost,  or  to  refund  excess 
sums  when  necessary;  except  that  such  pay- 
menu  may  be  credited  to  a  service  or  work- 
ing capital  fund  otherwise  esUbllshed  by 
law.  and  used  under  the  law  governing  such 
funds.  If  the  fund  la  available  for  use  by  the 
Administrator  for  performing  the  work  or 
services   for  which   payment   is  received 

(d)  The  Administrator  U  authorized  to 
acquire  any  of  the  following  described  rlghu 
if  the  property  acquired  thereby  is  for  use 
In.  or  Is  useful  to.  the  performance  of  func- 
tlona  vested  in  him 

(1)  copyrlghU,  patenu.  and  applications 
for  patenu.  designs,  processes,  specifications 
and  data; 

(2)  licenses  under  copyright.  patenU.  and 
applications   for   patenU;    and 

(3)  releases,  before  suit  U  brought,  for 
past  Infringement  of  patenU  or  copyrlghU. 

(e)  Subject  to  the  provisions  of  chapter 
12  of  the  Atomic  Energy  Act  (42  U5  C  2181- 
2188).  and  other  applicable  law,  the  Admin- 
istrator shall  disseminate  scientific,  tech- 
nical, and  practical  information  acquired 
pursuant  to  thU  title  through  Information 
programs  and  other  appropriate  means,  and 
shall  encourage  the  dissemination  of  scien- 
tific, technical,  and  practical  Information 
relating  to  energy  so  as  to  enlarge  the  fund 
of  such  Information  and  to  provide  that 
free  Interchange  of  Ideas  and  criticism 
which  Is  essential  to  scientific  and  Industrial 
progress  and  public  understanding 

(f)  The  Administrator  Is  authorized  to 
accept,  hold,  admlnUler,  and  utUlze  glfu. 
and  bequesu  of  property,  both  real  and 
personal,  for  the  purpose  of  aiding  or  fa- 
ciuutlng  the  work  of  the  AdmlnUtraUon. 
Olfu  and  bequesu  of  money  and  proceeds 
from  sales  of  other  property  received  as  glfu 
or  bequesu  shall  be  deposited  In  the  Treas- 
ury and  shall  be  disbursed  upon  the  order 
of  the  Administrator.  For  the  purposes  of 
Federal  Income,  esUte.  and  gift  taxes,  prop- 
erty accepted  under  thU  section  shall  be 
considered  as  a  gift  or  bequest  to  the  United 
SUtes 

Mr  HOLIFTELD  id ujing  the  reading). 
Mr  Chairman,  I  a^k  unanimous  consent 
that  the  committee  amendment  In  the 
nature  of  a  substitute  be  considered  as 
read  and  open  to  amendment  at  any 
point 

The  CHAraMAN  Is  there  oblectlon  to 
the  request  of  the  gentleman  from  Cali- 
fornia? 

Mr  OR088  Mr  Chairman,  reserving 
the  right  to  object,  does  that  apply  to  the 
entire  blip 

Mr  HOLIFIELD  It  applies  to  the  en- 
tire bill  because  it  la  a  clean  bill. 


December  19,  197^ 


CONGRESSIONAL  RECORD  — HOUSE 


42601 


Mr  QROvSS  Does  not  the  rule  provide 
that  the  bill  he  read  by  title' 

The  CHAIRMAN    Tliat  Ls  rtght, 

Mr  HOLIFII-TLID  Then  I  sugge.«;t  Mr. 
Chairman,  that  I  will  a.«;k  unanimous 
consent  thi.s  title  be  ron.'^ldered  a.":  read 
and  open   t,o  amendment  at  any   point 

Mr  HORTO.N-  Mr  Chairman  the  rule 
does  .say — 

It  shall  be  in  order  to  consider  the  amend- 
ment In  the  nature  of  a  substitute  recom- 
mended by  the  Committee  on  Government 
C>peratlons  now  printed  In  the  bill  as  an 
original  bill  for  the  purpose  of  amendment 
under  the  flve-mlnute  rule.  Said  substitute 
shall  be  read  for  amendment  by  titles  In- 
stead of  by  sections.  ,    . 

The  CHAIRMAN.  Is  there  objection  to 
the  request  of  the  gentleman  from  CtUl- 
fomia? 

There  was  no  objection. 

The  CHAIRMAN.  Are  there  any 
amendments  to  title  I? 

Mr.  ROSENTHAL  Mr.  Chairman.  I 
make  the  point  of  order  that  a  quorum  is 
not  present 

The  CHALRM.'VN  The  Chair  will  count. 
(After  counting  1  Plfty-two  Members 
are  present,  not  a  quorum. 

The  call  will  be  taken  by  electronic 
device. 

The  call  was  taken  by  electronic  de- 
vice, and  the  following  Members  failed 
to  respond: 

|RoU  No.  706] 

Addabbo  Prellnghuysen  Rangel 

Alexander  Fulton  R&rlck 

Anderson,  ni.  Ooldwater  Reld 

Armstrong  Gray  Roncallo.  NY. 

Aspln  Ortfflths  Booney.  N.T. 

Blester  Oubser  Ruppe 

Blatnlk  Hanna  Ryan 

Boiling  Hansen.  Wash  Scherle 

BreckUuldge  Harsha  Shipley 

Brooks  Harvey  Shrlver 

Buchanan  Hubert  Bisk 

Burke.  Calif.  Jarman  Stokes 

Burton  Jones.  Ala.  Stuckey 

Carney.  Ohio  Kemp  Taylor.  Mo. 

Clancy  Landrum  Teague.  Tex. 

Clark  MalUlard  Thompson,  N.J. 

Clay  Martin.  Nebr  Tlernsn 

Conyers  Mills.  Ark.  Van  Deerlln 

Delaney  Murphy.  N.Y.  Veysey 

Dent  Nedzl  Walsh 

Dlggs  Parrls  Wilson. 

Esch  Passman  Charles  H, 

Evlns,  Tenn.  Pettis  Calif. 

Fisher  PoweU.  Ohio  Wilson. 

Flowers  Qulllen  Charles.  Tex. 

Accordingly  the  Committee  rose;  and 
the  Speaker  having  resumed  the  chair, 
Mr.  RosTENKowsKj.  Chairman  of  the 
Committee  of  the  Whole  House  on  the 
State  of  the  Union,  reported  that  that 
Committee,  having  had  under  considera- 
tion the  bill  H.R.  11510,  and  finding  Iteelf 
without  a  quorum,  he  had  directed  the 
Members  to  record  their  presence  by 
electronic  device,  whereupon  360  Mem- 
bers recorded  their  presence,  a  quorum, 
and  he  submitted  herewith  the  neimes  of 
the  absentees  to  he  spread  upon  the 
Journal. 

The  Committee  resumed  Its  sitting. 

The  CHAIRMAN  When  the  Commit- 
tee rose,  the  Clerk  had  read  through  title 
I  ending  at  page  46,  line  14. 

Are  there  any  amendments  to  title  I? 

•vrv-VClN^     orrrRED     BT     Ml.     KOSXNTHAI, 

Mr  ROSENTHAL  Mr.  Chairman.  I 
ofTer  an  amendment 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Rostnthal:  On 
page  30.  line  21,  delete  "five"  and  insert  in 


it^  p;a<-e  'six  ■■  On  llnee  23  and  24  delet*  tiie 
»'i>rd«     anot^^er  for  environment    safety    and 
conservation."    and    Insert    w.    theL'    placF 
"another      for      environment      and      .■'afety, 
anoUier  for  coriiervallon," 

The  section  aliould  now  read 

"Sxc  102  ict  There  shall  be  in  the  Admin- 
istration six  AsslstARt  Admlnlsirstors.  one  of 
whom  shall  be  .'■esponslble  for  fossil  energy, 
another  for  nuclear  energ-y  another  for 
environment  and  safety,  another  for  conser- 
vation, another  for  research  and  advanced 
energy  systems,  and  another  fcr  national 
security.' 

Mr.  ROSENTHAL  Mr  Chairman,  I 
rise  in  support  of  this  bill  and  ofifer  this 
amendment  on  fc»ehalf  of  Mr  Gude.  of 
Maryland,  and  myself 

This  bill  has  a  major  flaw,  which  I 
believe  we  mast  correct  As  written.  It 
proposes  one  a&sLstant  administrator  for 
environment,  safety  and  conservation. 
Structurally  thi,s  proposal.  In  my  judg- 
ment, does  not  make  seru-e  There  is  no 
reason  to  lump  environment  and  safety 
research  together  with  research  and 
energy  conservation.  They  are  not  direct- 
ly related,  even  though  they  are  both 
Important  areas  of  research  By  joining 
these  two  area.s  under  one  a&sistant  ad- 
ministrator, both  area.s  will  suffer 

Important  research  must  be  done  in 
the  area  of  environment  and  .safety  re- 
search on  waste  management  systems 
and  transportation  of  nuclear  material 
would  come  under  this  area 

TTiis  kind  of  research  i.s  becoming  in- 
creasingly Important  a-s  we  develop  more 
and  more  nuclear  wastes.  We  must  push 
this  research  so  that  we  wHl  have  a  viable 
disposal  solution  of  these  extremely  toxic 
wastes. 

Other  areas  under  environment  and 
safety  which  deserve  study  are  biomedi- 
cal and  environmental  research  and  op- 
erational safety  research.  But  energy 
conservation  also  deserves  an  assistant 
administrator  of  Its  owti  Becaase  of  the 
energj'  crisis  we  have  been  forced  to 
conserve  by  lowering  thermoctaUs  and 
driving  speeds,  but  these  mea.sures  are 
only  temporary  and  cosmetic.  TTiey  do 
not  strike  to  the  heart  of  the  problem. 

We  need  to  undertake  massive  re- 
search into  different  mean5  of  conserving 
energy.  The  Ford  energ>-  pohcy  project 
has  estimated  that  we  could  save  30 
percent  over  our  present  energy  use  by 
the  year  2000.  Even  more  than  ihLs  could 
be  saved  by  an  aggressive  energy  con- 
servation research  program 

Too  long  has  Federal  funding  con- 
centrated on  increasing  supplv-  We  now 
need  a  Manhattan  type  project  which 
would  finance  research  designed  to  curb 
energy  demand  and  to  Increase  the  ef- 
ficiency of  existing  technologj- 

Alcoa  Aluminum  has  recently  devel- 
oped a  pollution -free  process  of  making 
aluminum  which  could  cut  the  use  of 
electricity  by  30  percent  or  more.  We 
must  foster  more  research  of  this  kind  if 
we  want  to  conserve  our  dwindling  sup- 
plies of  natural  resources 

It  is  of  paramount  importance  that  we 
give  full  attention  to  the  tremendous  re- 
search potential  of  energy  conservation. 

Since  environment  and  safety  research 
and  energy  conservation  research  are 
not  directly  related,  there  would  be  little 


benefit  from  placing  this  under  the  same 
-Assistant  Administrator  In  fact,  join- 
ing them  wo-old  have  a  negative  effect, 
because  it  would  necessarily  diminish  the 
efTo.'^  of  concentration  the  As.'^lstanl  Ad- 
ministrator could  bring  to  each  one. 

This  amendment  would  establLsii  an 
assistant  administrator  for  each  effort. 
There  would  t>e  an  .Assistant  Admir.istra- 
tor  for  Environment  and  Safety,  another 
for  Energy  Conservation.  There  is  no 
question  but  that  we  must  put  a  mas- 
sive effort  in  production,  but  at  the  same 
time  we  must  raise  the  level  of  interest 
and  the  level  of  accomplishment  on 
energj-  conservation 

What  this  would  do,  would  be  to  create 
an  Assistant  Administrator  for  Elnergy 
Conservation,  spin  the  one  that  is  listed 
in  here  as  Eriergy  Administrator  for  En- 
vironment. Safety,  and  Energy  Conserva- 
tion, I  think  ihis  is  a  very,  very  useful 
amendment  It  has  been  supported  by 
large  numbers  of  private  groups  around 
the  country.  It  is  an  area  that  has  been 
deeply  neglected,  the  question  of  con- 
.servation.  and  :f  instead  of  having  these 
five  we  add  another  one  to  raise  the  level 
of  interest,  we  would  improve  the  bill. 

Mr,  Chairman.  I  said  earher  in  general 
debate  was  that  while  this  is  not  the 
time  to  authorize  or  appropriate  funds 
or  mandate  programs,  but  it  is  the  time 
to  state,  when  we  establish  the  struc- 
ture, we  Inferentially  make  policy;  when 
we  give  titles  to  each  of  these  areas,  we 
indicate  that  Congress  wants  serious 
work  done  in  each  of  these  areas.  If  it 
wants  .serious  work  done  in  the  area  of 
energy  conservation,  It  is  highly  appro- 
priate that  we  upgrade  the  energy-  con- 
servation. 

Mr.  Chairman  I  urge  the  adoption  of 
this  amendment 

Mr.  HOLIFIELD.  Mr.  Chairman,  I  rise 
in  opposition  to  the  amendment. 

Mr  Chairman,  we  had  extensive  hear- 
ings on  this  bill,  and  the  chsul  that  is 
before  the  Members  here  in  the  well 
shows  how  we  divided  the  organizational 
structure  and  direction  of  management. 
We  put  what  we  considered  were  related 
matters  together 

As  the  gentleman  knows.  19  or  20 
groups  around  the  country  all  think  their 
particular  interest  is  paramount.  Peo- 
ple who  have  an  intorest  in  solar  heat 
think  they  ought  to  have  a  solar  agency. 
People  interested  m  geoLhermal  technol- 
ogy think  they  ought  to  have  an  agency. 
People  Interested  m  environmental  safety 
think  they  ought  to  have  one:  and  also 
the  people  m  conservation. 

What  we  have  done,  we  have  placed  on 
ihe  assistant  administrator  level,  with 
level  4  salary,  an  assistant  administrator 
for  environment,  .safety  and  conserva- 
tion, because  we  feel  that  all  of  those 
things  go  together  and  ihat  they  can  be 
handled  together  In  that  box  we  have, 
in  addition  to  the  others,  operational 
safety  and  energy  conservation.  11  we 
move  over  to  nuclear  development,  we 
will  find  envirormientaJ  safety  and  con- 
sen'atlon.  In  the  fossH  fuel  component, 
we  have  environment  safety  and  conser- 
vation. 

Why  did  we  do  that?  In  the  place  of 
multiplying  the  divisions  in  this  organi- 
zation, we  put  those  functions  which  we 


IJ..02 


CONGRESSIONAL  RjbCURD  —  HOUSE 


thought  important  where  they  belong; 
in  research  and  development  in  the  fos- 
sil fuel  area  we  have  coal  liquefaction. 
coal  gasification,  gas  and  oil  technology-, 
mining  technology,  combustion.  All  these 
matters  also  have  to  do  with  environ- 
mental safety  and  conservation  For  re- 
search in  advanced  energy  systems,  we 
have  to  be  concerned  about  envirorunent. 
safety,  and  conservation. 

In  other  words,  in  going  forward  in 
these  five  different  fields  of  research  and 
development,  we  feel  environment,  safe- 
ty, and  conservation  research  should  be 
Joined  with  the  several  component  ad- 
ministrations. 

We  want  each  one  of  them  to  have 
responsibility  in  that  area,  and  at  the 
same  Ume  we  have  one  of  the  five  admin- 
istrators who  can  coordinate  in  environ- 
mental and  related  concerns  In  these  dif- 
ferent fields. 

We  did  put  this  function  additionally 
In  the  different  fields  because  we  want 
each  one  of  these  administrators  to  be 
particularly  aware  of  the  fact  that  the 
public  is  interested  in  environment, 
safety,  interested  in  safety,  and  inter- 
Coted  m  conser\-.Ttion. 

We  believe  that  coordination  can  be 
effected  without  the  proLferation  all 
over  the  map  of  divisions  setting  up  a 
big  bureaucracy.  We  have  grouped  the 
functions  in  the  divisions  which  are  im- 
portant and  where  they  can  be  carried 
out. 

We  had  testimony  from  the  Office  of 
Management  and  Budget,  from  the  De- 
partment of  the  Intenor.  and  from  mani- 
private  witnesses,  including  people  hke 
the  head  of  the  National  Coal  Associa- 
tion, and  they  are  approved  of  this  orga- 
nizational setup. 

Therefore.  I  do  thmk  that  the  gentle- 
man should  be  mformed  that,  while  I 
know  he  has  great  interest  in  this  matter, 
we  think  that  his  amendment  is  unneces- 
sary It  is  adequately  taken  care  of  in  an 
orderly,  organizational  manner,  and  I 
would  ask  that  the  amendment  be  voted 
down. 

Mr  GUDE  Mr.  Chairman,  I  rise  In 
support  of  the  amendment. 

Mr.  Chairman,  I  do  not  believe  that 
ani-  Member  in  this  House  has  to  be  told 
we  have  some  tough  years  ahead,  and  the 
toughest  years  are  going  to  be  the  first 
ones.  These  are  going  to  be  the  years 
when  the  type  ot  research  that  Is  going  to 
go  on  in  this  organization  to  develop  the 
potential  of  coal  and  to  develop  the  po- 
tential of  solar  energy  and  geothermal 
energy  will  not  bear  fruit  for  at  least  3 
to  5  years,  and  In  some  cases  20  to  30 
or  even  50  years 

What  we  can  do  immediately  In  this 
country,  and  the  only  thing  we  can  do 
In  order  to  have  enough  energy  to  go 
around  in  the  next  1  to  3  years.  Is  to  con- 
serve, and  I  think  we  need  an  AsslsUnt 
Administrator  for  Conservation  on  this 
baAls 

wfcretary  Morton  talked  to  ua  a  few 
days  ago  and  told  us  of  the  tremendous 
cooperation  which  he  had  received  from 
commercial  enterprises  all  across  this 
country  who  have  found  that  they  could 
effect  conservation  measures  In  the  run- 
ning of  their  businesses  of  5  to  20  per- 
cent. . 


December  19,  1973 


With  such  spontaneous,  voluntary  sup- 
port in  a  very  short  period  of  time,  it  is 
clear  to  me  we  can  well  justify  an  Assist- 
ant Administrator  for  Conservation 
alone  In  this  new  organization.  As  the 
Chairman  of  the  Committee  has  well 
pointed  out.  approximately  one- third  of 
the  energy  which  this  country  Is  now 
consuming  is  wasted.  Under  the  leader- 
ship of  one  man,  with  his  attention  fo- 
cused only  on  conservation,  we  can  make 
great  headway  In  mitigating  the  short- 
ages which  confront  us  In  the  immediate 
future. 

I  again  urge  the  adoption  of  this 
amendment  which  would  establish  an 
Assistant  Administrator  for  ConservaUon 
and  another  for  Environment  and  Safetv 
Mr.  HORTON.  Mr.  Chairman,  I  rise 
m  opposition  to  the  amendment. 

Mr.  Chairman,  I  do  not  want  to  repeat 
what  the  chairman  of  the  committee  has 
already  said,  but  I  do  think  it  is  impor- 
tant for  us  to  esUblish  at  the  outset  of 
the  debate  on  these  amendments  that 
this  organizational  bill  has  been  very 
carefully  structured. 

What  we  have  done  is  to  provide  for 
five  Assistant  Administrators  with  cer- 
tain responsibilities,  and  now  we  are  hit 
with  an  amendment  to  create  another 
Assistant  Administrator  for  Conserva- 
tion. The  gentleman  from  New  York  (Mr. 
Rosenthal)  has  Informed  me  that  he  is 
also  going  to  offer  another  amendment 
a  little  later  to  provide  an  AsslsUnt  Ad- 
ministrator for  Solar  Energy  and  still 
another  amendment  to  provide  an  As- 
sistant Administrator  for  other  types  of 
research. 

We  are  at  the  point  where  we  can  go 
on  and  on  ad  infinitum. 

Mr  Chairman,  let  me  say  that  we  have 
very  carefully  structured  this  biU  so  that 
we  can  provide  the  maximum  research 
on  an  annual  basis  In  each  of  these  areas. 
We  have  also  shown  concern  for  the 
conservation  of  energy,  because  we  es- 
tablished an  Administrator  for  Environ- 
ment, for  Safety,  and  for  Conservation. 
As  the  chairman  of  the  committee  has 
pointed  out.  under  each  one  of  these 
Administrators,  for  fossil  energy  develop- 
ment, for  nuclear  energy  development, 
and  for  research  and  advance  energy 
systems,  there  is  a  responsibility  for  en- 
vironment, safety,  and  conservation. 

Conservation  of  energy  should  be  de- 
veloped together  with  the  energy  re- 
source being  developed.  Therefore  I 
oppose  an  Assistant  Administrator  'for 
that  purpose. 

I  think  that  it  is  very  Important  for  us 
to  maintain  the  organization  that  we 
have  here  and  not  to  open  the  gates  for 
all  these  additional  administrators.  I 
think  it  is  very  ImporUnt  for  us  to  keep 
the  structure  of  the  organization  that  we 
have  brought  before  the  committee 

Mr  HOSMER.  Mr.  Chairman.  wUl  the 
gentleman  yield? 

Mr.  HORTON  Yes.  I  yield  to  the  gen- 
tleman from  California 

Mr  HOSMER  Mr.  Chairman,  I  think 
the  gentleman  is  exactly  right  In  what  he 
says.  There  is  a  possibility,  as  we  all 
know,  that  we  can  create  an  Assistant 
Administrator  for  night  and  day  and  for 
summer  and  winter  and  for  Republicans 


and  Democrats,  and  we  could  proliferate 
these  things  ad  Infinitum 

However,  there  is  some  logic  In  putting 
together  from  a  scientific  standpoint  cer- 
tain functional  acUvltles.  What  the  com- 
mittee has  done  is  to  lump  together  en- 
vironment, safety,  and  conservation  un- 
der tlie  same  assistant  administrator 
In  the  scientific  modus  operandi  those 
three  categorical  endeavors  are  ap- 
proached on  a  common  basis  They  logi- 
cally belong  together.  It  is  totally  il- 
logical to  .separate  them.  There  Is  waste 
and  inefficiency  in  separating  them. 
There  is  a  diminution  of  scientific  effort 
in  separating  them.  There  Is.  as  I  said 
total  Uloglc  in  separaUng  that  which  Is 
logically  together. 

As  a  consequence,  this  amendment,  as 
well-meaning  as  it  might  be.  Is  in  Its 
last  and  final  analysis  scientific  heresy 
and  ought  to  be  voted  down  rapidly  by 
this  body. 

Mr.  GROSS.  Mr  Chairman,  I  rise  In 
opposition  to  the  amendment. 

Mr.  Chairman,  whatever  the  merit 
or  demerit  of  this  bill— and  I 
seriously  question  the  merit  of  It^thLs  is 
real  plush  m  terms  of  employees  and  pay 
in  the  top  layer.  It  starts  out  with  an 
Administrator  who  Is  paid  $42,500  a  year, 
a  Deputy  Administrator  at  $4iW>00  a  year. 
and  five  assistant  admiimtmors  at  $38  - 
000  a  year  each.  (/^ 

Now  the  gentleman  from  New  York 
want  to  add  another  assistant  ad- 
minLstrator.  and  I  might  ask  him  why 
he  did  not  just  ask  for  one  for  every 
day  in  the  week. 

Then  there  Is  a  General  Counsel  at 
$36,000  a  year  and  seven  additional  of- 
ficers appointed  by  the  Administrator  at 
$36,000  a  year  each.  Yes;  thLs  bureauc- 
racy starts  out  with  a  real  fancy  pay- 
roll in  the  top  bracket 

Mr.  Chairman.  I  oppose  the  amend- 
ment  I  think  It  Is  overloaded  now 

Mr  HORTON  Will  the  gentleman 
yield? 

Mr   GROSS   Yes.  I  yield. 

Mr.  HORTON  I  want  to  commend  the 
gentleman  because  I  think  he  is  making 
a  very  vaUd  point. 

One  of  the  things  we  were  considering 
when  we  were  structuring  the  bill  was 
the  very  point  that  the  gentleman  made. 
We  certainly  do  have  a  large  number  of 
supergrades  already  In  this  area,  which 
I  think  are  necessary,  but  we  did  pare  It 
down  as  much  as  we  could.  I  agree  with 
the  gentleman  that  this  Is  an  addition 
which  is  not  needed. 

Mr.  HOLIFIELD.  Will  the  gentleman 
yield? 

Mr  GROSS  Yes  I  yield  to  the  gen- 
tleman 

Mr  HOLIFIELD  I  want  to  say  to  the 
gentleman  in  this  ERDA  administration 
here 

Mr  GROSS.  What  Is  ERDA?  Male  or 
female? 

Mr.  HOLIFIELD.  Well.  It  can  be  both. 
It  is  the  Energy  Research  Development 
Administration,  which  in  effect  takes 
over  an  agency  which  has  more  officials 
in  it.  and  therefore  these  are  not  added 
on  to  the  existing  ones  but  these  are  of- 
ficers that  In  most  instances  are  already 
In  the  AEC.  that  is.  the  salary  level  of 
these  oflJcers  Is  already  In  the  AEC.  So 


December  19,  1973 


CONGRESSIONAT    KfrORD— HOUSE 


what  the  gentleman  from  Iowa  points 
out  Is  factual ;  namely,  that  the  Admin- 
istrator will  receive  $42,500  and  the 
Deputy  Administrator  $40,000  and  the  as- 
sistants $38,000  and  the  five  administra- 
tive officials  will  receive  high  levels,  still 
this  foUows  pretty  well  the  pattern  of 
every  large  agency,  and  this  will  be  a 
large  agency.  In  the  large  agency  now 
existing  they  ha\'e  something  like  8,000 
employees. 

Mr.  GROSS  I  would  like  to  ask  the 
gentleman  how  much  money  he  believes 
this  new  bureaucracy  will  save  the  tax- 
paj-ers  hut  I  am  almost  afraid  to  do  so 
Mr.  HOLIFIELD.  I  vHU  be  very  honest 
with  the  gentleman,  if  the  gentleman 
will  yield. 

Mr.  GROSS.  I  yield 

Mr.  HOLIFIELD.  We  are  not  going  to 
save  the  taxpayers  $1  by  setting  this  up. 
We  are  going  to  try  to  solve  a  problem 
that  will  cause  the  country  to  have  a 
complete  financial  collapse  unles  we  solve 
it.  but  we  have  to  have  the  tools  to  do  it 
with. 

Mr.  GROSS.  That  is  what  I  was  afraid 
of.  The  answer  is  that  it  will  not  save 
the  taxpayers  any  money. 

Let  me  ask  the  gentleman  from  Cali- 
fornia a  question  concerning  this  chart 
in  the  report  accompanying  the  bill  as 
compared  with  the  chart  here  on  the 
House  floor. 

In  the  appendix  3-A,  it  lists  an  Office 
of  Public  Affairs,  whereas  the  chart  on 
the  floor  lists  It  as  External  Affairs.  What 
is  the  difference  between  Public  Affairs 
and  External  Affairs? 

Mr.  HOLIFIELD.  That  Is  a  matter  of 
title.  There  are  affairs  that  are  external 
to  the  Nation  in  thLs  administration.  For 
instance,  we  have  quite  a  number  of 
international  agreements  In  the  sharing 
of  nuclear  material  with  the  different 
nations  like  we  do  in  Europe  and  other 
groups  such  as  NATO.  We  have  agree- 
ments with  NATO  that  involve  some  of 
the  material  that  is  being  used  In  this, 
and  It  could  well  come  under  that,  or  It 
could  come  under,  as  far  as  the  line  or- 
ganization is  concerned,  over  on  the 
nght-hand  side  there,  the  Assistant 
Administrator  for  National  Security,  and 
that  has  national  security  affairs 

The  CHAIRMAN.  The  time  of  the 
gentleman  has  expired. 

<By  unanimous  consent,  Mr.  Gross  was 
allowed  to  proceed  for  one  addlUonal 
minute. ) 

Mr.  GROSS.  Then  Public  Affairs  Is 
more  confining  or  restrictive  than  Exter- 
nal Affairs.  I  take  It  that  is  the  reason 
you  changed  it  from  Public  Affairs  to 
External  Affairs. 

Now,  let  mc  go  to  the  next  bracket  on 
the  chart  here  on  the  floor  which  is  civil 
rights.  In  the  report  on  the  bill  It  is  des- 
ignated as  equal  opportunity.  What  is 
the  difference  between  equal  opportunity 
and  civil  rights? 

As  the  gentleman  knows,  I  like  to  read 
and  understand  the  fine  print 

Mr.  HOLIFIELD.  The  subject  matter 
of  civil  rights  does  include  equality  of 
opportunity. 

Mr.  GROSS.  Which  is  more  embracing. 
clvU  rights  or  equal  opportunity? 

Mr.  HOLIFIELD.  ThU  Nation  is  very- 
conscious  of  the  civil  rights  of  our  people. 


and  we  feel  that  one  individual  appointed 
at  that  level  in  the  office  to  look  after  and 
to  see  that  the  civil  rights  of  this  agency 
are  handled  correctly  is  a  very  modest 
contribution  toward  a  very  desirable  goal. 
Mr.  GROSS.  I  could  only  wonder  why 
it  was  changed,  and  I  still  do 

The  CHAIRMAN.  The  time  of  the  gen- 
tleman has  again  expired. 

Ms.  ABZUG.  Mr.  Chairman.  I  move  to 
strike  the  requisite  niunber  of  words. 

Mr.  Chairman,  what  we  are  trj-ing  to 
do  is  set  up  a  structure  which  will  real- 
istically deal  with  our  problems  in  this 
difficult  moment. 

In  the  discussion  o;  the  other  day 
on  the  Emergency  Energy  Act.  it  became 
quite  clear  that  there  are  very  distinct 
problems  in  dealing  with  the  energy 
field  relating  to  the  question  of  environ- 
ment and  safety,  and  as  they  relate  to 
the  question  of  energy  conservation. 

We.  in  the  bill  the  other  day.  were 
dealing  with  energy  conservation.  The 
issues  raised  concerning  the  environment 
and  safety  were  discussed  in  a  way  w-hlch 
illustrates  the  reason  this  amendment 
should  be  supported.  Our  primary  ob- 
jective in  that  emerge.ncy  legislation 
was  to  conserve  energy.  In  the  process, 
regrettably,  I  believe,  many  important 
rafeguards  for  the  welfare  of  the  en- 
vironment and  safety  were  abandoned 
in  the  ene.gj'  emergency  legislation  we 
adopted. 

The  discussion  of  the  amendment  on 
the  floor  also  makes  clear  that  we  were 
dealing  with  two  distinct  categories. 
What  this  amendment  does  is  the  same 
thing.  It  says,  let  us  be  reflective  of  the 
reality,  that  is.  that  we  have  two  prob- 
lems. We  are  dealing  with  energy  con- 
servation and  we  are  dealing  with  the 
problem  of  environment  and  safety. 

In  order  for  us  to  be  able  to  make 
valuable  short-term  and  long-term  con- 
tributions in  both  of  these  arenas  It  Is 
important  that  we  set  up  a  structure 
which  reflects  this  reality  so  that  there 
will  be  no  confusion  or  conflict  between 
them. 

TTie  amendment  now  before  us  is  an 
attempt  to  provide  structural  safeguards 
to  reflect  a  sane  policy  which  relates  to 
the  conservation  of  energy.  Our  energy 
problems  are  not  likely  to  end  in  the  near 
future.  Even  with  the  development  of 
newer  forms  of  energy  supplv,  or  with 
the  exploration  and  development  of  fos- 
sil and  other  energy  forms,  we  can  no 
longer  afford  to  be  wasteful  of  energy  If 
our  approach  to  solving  the  fuel  short- 
age problem  is  to  be  comprehensive,  we 
must  begin  in  our  proverbial  "own  back- 
yard." By  developing  more  energj-  effi- 
cient systems  we  will  go  a  long  way  to- 
ward saving  fuel  supplies. 

If  we  are  to  have  a  sane  energy  policy, 
It  must  be  based  upon  an  aggressive 
energy  conservation  program.  Therefore 
we  must  have  the  structure  in  the  new- 
Energy  Research  and  Development  Ad- 
ministration to  allow  massive  research 
into  energy  conservation.  For  this  reason 
I  urge  my  colleagues  to  support  this 
amendment. 

By  establishing  a  separate  department 
for  the  environment  and  safety  matters 
as  they  relate  to  energy,  separate  from 
conservation,     the    confusion     between 


these  two  areas  will  be  resolved.  The  en- 
vironment and  safety  division  would  be 
able  to  concentrate  upon  the  effects  of 
present  and  future  energy  technologies. 
Key  to  environment  and  safety  are  mat- 
ters concerning  nuclear  waste  manage- 
ment and  nuclear  material  transporta- 
tion. These  areas  are  of  such  importance 
that  they  necessitate  a  great  deal  of  re- 
search, requiring  a  separate  division  con- 
cerned solely  with  environment  and 
safety. 

I  beUeve  that  if  we  are  to  have  a  sane 
energy  policy,  then  we  have  got  to  have 
the  kind  of  structure  that  will  allow  that 
poUcy  to  operate.  U  we.  therefore,  recog- 
nize this,  we  would  structure  the  Energy 
Research  and  Development  Administra- 
tion to  allow  massive  research  into  en- 
ergy conservation  and  massive  research 
into  the  question  of  the  environment  and 
safety,  and  not  aUow  each  of  these  areas 
to  negate  each  other  or  force  an  ad- 
ministrator or  an  assistant  administra- 
tor to  concentrate  on  one  as  against  the 
other.  We  saw  the  other  day  that  both  of 
these  areas  require  very  equal  and  im- 
portant concentration.  Although  they  re- 
late, they  each  must  answer  separate 
questions. 

We  will  only  be  successful  in  develop- 
ing our  policy  if  the  structure  reflects 
that. 

Mr.  Chairman,  I  urge  very  strongly  the 
support  of  this  amendment 

Mr.  ERLENBORN.  Mr.  Chairman  I 
TTi&e  m  opposition  to  this  amendment  I 
tlilnk  some  good  reasons  to  oppose  the 
amendment  have  already  been  ex- 
pressed. But  let  us  look  for  a  moment  at 
what  a  raUonal  person  does.  He  learns 
by  his  mistakes.  I  think  we  have  made 
some  mistakes  in  the  field  of  environ- 
ment and  energy  conservation  in  the  past 
b«^use  we  have  viewed  them  separately. 
That  has  been  the  problem. 

There  have  been  those  "who  fought 
the  Alaskan  pipeline  because  of  their 
concern  for  the  envirorunent.  and  they 
foiight  it  very  successfully  in  the  courts 
to  the  point  where  we  finally  had  to  pass 
special  legislaUon  here  to  see  that  our 
concern  for  energy  resources  had  at  least 
equal  billing  with  concern  for  the  en- 
vironment. In  the  field  of  euviromr.e-ial 
protection  with  automobiles  we  have 
passed  laws  that  have  required  that  de- 
vices be  built  on  automobiles  to  reduce 
emissions,  but  without  an.v  concern  about 
conservation  of  our  energy  resources, 
without  any  concern  about  gasoline  con- 
servaUon.  Now  I  see  that  the  other  body 
is  contemplating  legislaUon  which  would 
mandate  that  not  only  shall  we  reduce 
emissions,  but  we  shall  also  increase  the 
mileage  of  automobiles.  We  cannot  look 
at  these  things  separately  if  we  want  to 
have  a  rational  policy. 

I  think  our  concern  with  conservation 
of  energy  must  be  balanced  w-ith  our  con- 
cern for  the  environment  and  our  con- 
cern for  safety.  We  sliould  not  build  into 
this  administraUon  compeUUon  We 
should  not  build  into  the  administraUon 
one  arm  devoUng  aU  of  its  efforts  to 
getUng  the  safest  energy-  sources  but 
without  any  Idea  of  conservaUon  of  our 
resources.  So  let  us  defeat  this  amend- 
ment. Let  us  see  that  we  have  a  rational 
policy  to  balance  these  several  concerns. 


iZhiM 


CONGRESSIONAL  R£CORD  — HOUSE 


December  19,  197S 


and  that  will  be  done  if  we  have  the  one 
administrator  responsible  for  these  sev- 
eral different  areas. 

I  think  the  very  opposite  of  what  the 
gentleman  from  New  York  (Mr.  Roskn- 
THAi.)  has  said  Is  true.  He  has  indicated 
that  there  Is  no  connection  among  these 
several  areas  of  interest.  I  think  they 
must  be  considered  a  rational  whole.  I 
think  we  must  consider  them  together  or 
else  this  legislation  will  be  self-defeating. 
Mr  PHASER.  Mr.  Chairman.  I  rise  In 
support  of  the  amendment. 

Mr.  Chairman,  the  last  speaker 
I  think  put  his  finger  on  the  prob- 
lem that  we  face  in  this  bill.  There 
is  a  problem  with  safety  with  respect  to 
how  energy  Is  produced  and  how  it  is 
used.  There  is  a  problem  with  conserva- 
tion. If  we  put  the  two  under  the  same 
assistant  administrator,  we  are  saying 
that  the  one  person  will  have  to  make 
the  reconciliation  with  the  public  mter- 
est  with  respect  to  these  competing  in- 
terests This  is  exactly  the  problem  we 
have  been  trying  to  get  away  from  in 
the  Atomic  Energy  Commission.  The 
Atomic  EInergy  Commission  was  both  the 
designer  and  the  promoter  of  atomic  en- 
ergy and  also  had  the  responsibility  for 
regulation.  Increasingly  across  this  coun- 
try It  was  recognized  that  these  functions 
ought  to  be  split  if  the  public  interest  is 
going  to  be  preserved. 

We  have  precisely  the  same  problem 
here  One  of  the  ways  to  conserve  energy, 
for  example,  is  to  use  high  voltage  trans- 
mission lines.  It  turns  out  that  the  higher 
the  voitage.  the  more  elHcient  the  trans- 
mission of  energy 

But  what  are  the  safety  factors  in- 
volved with  respect  to  those  kinds  of 
transmission  lines?  Do  the  Members 
want  one  person  to  be  reconciling  these 
considerations  or  do  they  want  both  con- 
siderations to  have  full  voice  within  the 
Oovemment?  If  the  Members  think  both 
points  of  view  deserve  a  full  hearing, 
then  they  will  vote  for  this  amendment 
because  It  will  take  these  functions  and 
give  them  to  different  assistant  adminis- 
trators to  represent  the  competing  pub- 
lic interests  so  they  are  sure  the  recon- 
cillaUon  is  made  at  the  highest  level  in 
the  public  Interest. 

Let  me  make  one  other  point.  The 
most  effective  way  we  can  increase  the 
effecUve  energy  supply  In  the  United 
States  Is  by  increasing  the  effectiveness 
of  the  use  of  it.  under  the  term  conserva- 
tion, whether  it  is  through  improved 
buildings,  more  efficient  gasoline  engines, 
or  whatever. 

But  let  me  make  the  point  that  the 
technologies  Involved  here  range  all  over 
the  landscape  and  unless  we  concentrate 
on  the  development  of  these  technologies 
we  are  going  to  say  we  are  not  really 
going  to  get  to  these  technologies  until 
the  price  of  energy  Ls  so  high  that  we 
literally  force  the  new  technologies 
through  the  market  system.  I  think  that 
Is  an  unreaAODAble  burden  to  put  on  the 
American  people.  We  ought  to  encourage 
the  development  of  the  new  technologies 
as  early  as  possible. 

Mr  PISH-  Mr  Chairman,  will  the 
gentleman  yield "' 

Mr  PHASER  I  yield  to  the  gentle- 
man from  New  York. 


Mr.  FISH.  Mr.  Chairman.  I  associate 
myself  with  the  remarks  of  the  gentle- 
man in  the  well  and  congratulate  the 
gentleman  from  New  York  for  offering 
this  amendment.  It  will  Improve  the  bill 
not  only  structurally  but  this  amend- 
ment also  will  underscore  the  policy  of 
this  Congress. 

Mr  GUDE.  Mr  Chairman,  will  the 
gentleman  yield? 

Mr.  PRASER.  I  yield  to  the  genUeman 
from  Mar>-land. 

Mr.  OUDE.  Mr  Chairman.  I  thank  the 
gentleman  for  yielding. 

I  think  the  gentleman  has  made  an 
excellent  point  In  differentiating  between 
conservation  that  conserves  the  energies 
we  are  presently  wasting  around  the 
country  as  opposed  to  conserving  of 
energy  in  the  new  sources  we  are  going 
to  develop.  I  think  that  is  exactly  why 
we  need  this  amendment. 

Mr.  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  PRASER.  I  yield  to  the  gentleman 
from  California. 

Mr.  HOSMER.  Mr.  Chairman,  al- 
though the  gentleman  may  allege  the 
conservation  of  energy  is  being  neglected 
and  therefore  this  separate  thing  should 
be  set  up.  I  think  if  the  gentleman  had 
read  this  bill  carefully  and  studied  the 
proposed  financial  set  up  of  the  Nations 
energy  program,  he  would  see  we  have  a 
$10  billion  proposal  submitted  by  Dr. 
Dixy  Lee  Ray.  It  gives  22  percent  of  the 
recommended  $10  billion  to  be  spent  pre- 
cisely in  the  energy  conservation  area. 
There  is  no  neglect  of  it.  We  do  not 
need  an  amendment  to  this  structure 
for  the  Government's  scientific  research 
m  order  to  allay  the  gentleman's  concern. 
We  do  not  have  to  change  that  structure 
m  order  to  accomplish  what  the  gentle- 
man wants.  All  the  gentleman  has  to  do 
is  come  to  the  floor  when  it  is  time  to  vote 
the  money  for  the  appropriation  and  see 
to  it  that  the  money  he  wants  is  in  the 
appropriation. 

Mr.  PRASER.  The  genUeman  is  mak- 
ing our  case,  because  he  Is  saying  one- 
fifth  of  the  money  is  to  be  spent  for  con- 
servation, and  I  agree  with  him  on  the 
importance  of  that  objective,  but  the 
administrator  of  that  program  is  limiped 
in  with  the  safety  and  so  on.  and  in  view 
of  the  budget  allocated  to  conservation 
it  deserves.  In  my  Judgment,  a  separate 
Administrator.  We  are  going  to  have  con- 
tentious issues  which  are  going  to  have 
to  be  resolved  and  they  should  be  resolved 
at  the  highest  level. 

The  areas  of  environment  and  safety, 
and  conservation  techniques  are  critical 
to  our  objective  of  self-sufBclency  in  en- 
ergy To  lump  these  areas  under  one  As- 
.slstant  Administrator,  as  is  done  in  this 
bill,  would  not  give  each  the  attention  it 
must  have. 

In  the  past  we  have  erred  in  two  ways. 
Plrst,  we  have  In  effect  equated  all  energy 
R.  k  D.  with  the  supply  question.  And 
second,  we  have  given  a  disproportionate 
share  of  Federal  funding  to  the  develop- 
ment of  nuclear  fission  power 

This  blU.  for  the  first  time,  gives  em- 
phasis to  energy  supply  sources  other 
than  nuclear  power.  But  It  still  gives 
short  shrift  to  the  two  enormously  Im- 
portant areas  of  environment  and  safety, 


smd  energy  conservation  by  lumping 
them  under  one  division. 

David  Freeman  who  heads  the  Ford 
Foundation's  Energy  Policy  Project  has 
said: 

There's  »  hell  of  k  lot  that  caa  and  ahould 
be  done  to  curb  the  amount  of  energy  we  uae 
and  to  Increaae  the  efflclency  of  energy  con- 
version   systenu. 

A  few  of  the  areas  that  could  and 
should  be  given  special  encouragement  in 
future  R.  L  D.  programs  are:  more  ef- 
ficient techniques  of  electricity  transmis- 
sion, more  efficient  building  construction 
techniques,  battery  storage  of  energy, 
and  heat  pumps  that  could  Increase 
home-heating  efficiency  by  as  much  as 
one-third  or  one- half . 

Also  enormously  Important  is  the  re- 
sponsibility to  make  nuclear  fission 
plants  safe  and  environmentally  ac- 
cepUble  And  It  is  essential  that  we  make 
a  massive  commitment  to  develop  clean- 
ing tecimology  for  existing  dirty  fuels. 
Gas  stack  cleaning  technologj-.  for  In- 
stance, could  well  have  an  impact  on 
energy  supplies  by  the  early  1980's. 

The  Washington  Post  editors  re- 
marked with  some  Justice  that: 

The  Houae  in  paaalng  the  Energy  Emer- 
gency Act  had  Included  amendzaents  that 
disingenuously  used  the  energy  shortages  as 
pretext  for  drlTtog  holes  in  present  social  and 
environmental  legislation 

The  past  few  weeks  have  resulted  in 
serious  Inroads  In  the  gains  that  have 
been  made  in  protecting  and  improving 
the  environment.  If  we  agree  that  these 
inroads  are  necessary  to  get  us  by  the 
short-term  crisis,  then  we  should  also 
agree  for  the  long  nm  to  make  the  nec- 
essary commitment  to  environmental 
values. 

Members  have  an  opportunity  today 
to  give  a  clear  directive  that  as  a  nation 
we  are  committed  to  research  designed  to 
cut  energy  demands,  to  Increase  efflclen- 
cy of  existing  techiiiques.  and  to  Improve 
the  quality  of  air  and  water  and  of  life  In 
this  country.  Friends  of  the  Earth,  En- 
vironmental Action,  the  Environmental 
Policy  Center,  and  Ralph  Nader's  Cit- 
izens Action  are  supporting  this  amend- 
ment. 

Energy  and  economic  growth,  as  we  all 
know,  are  Inextricably  linked.  What  we 
are  doing  here  today  will  determine  the 
future  course  of  economic  growth  as  well 
as  the  quality  of  life  in  this  country. 

I  hope  the  House  will  adopt  this 
aunendment. 

The  CHAIRMAN  The  question  Is  on 
the  amendment  offered  by  the  gentle- 
man from  New  York  (Mr.  Rosenthal K 

The  question  was  taken;  and  on  a 
division  (demanded  by  Mr.  Rosenthal) 
there  were — ayes  21,  noes  58 

R«COtDK)    VOTX 

Mr  FP„\5ER.  Mr.  Chairman.  I  de- 
mand a  recorded  vote. 

A  recorded  vote  waa  ordered. 

The  vote  »  -s  taken  by  electronic  de- 
vice, and  there  were — ayes  112,  noea  271. 
not  voting  49.  as  follows : 


Abeux 
Adams 
Addabbo 


(Roll  No.  7081 

ATK8— 112 

Anderson.  BadUlo 

Calif.  Barrett 

Andrews,  N.C.     Berglaad 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


Bingham 

Blatnlk 

Boggs 

Brademas 

Brasco 

Breckinridge 

Brlnkley 

Brown,  Calif. 

Carey.  N.Y. 

Chlsholm 

Clay 

Conyers 

Coughlln 

Cul  ver 

Dellenback 

Dell  urns 

Denholm 

Olggs 

Drlnan 

du  Pont 

Eckbardt 

Edwards,  Calif. 

EUberg 

Pascell 

Findley 

Pish 

Foley 

Pord, 

WUllam  D. 
Praser 
Oaydos 
Qlbbons 
Oonzalez 
Orasso 
Green,  Pa. 
Oude 
Hamilton  - 


Harrington 

Hastings 

Hawkins 

Hechler,  W  Va 

Heckler,  Mass. 

Heinz 

Helstoskl 

Hlcka 

Holtaman 

Howard 

Hungste 

Jordan 

Karth 

Kastenmeler 

Koch 

Kyros 

Lehman 

McDade 

Madden 

MazzoU 

Meeds 

Melcher 

Mezvlnsky 

Miller 

Mink 

Mitchell,  Md. 

Moes 

Nedzl 

Obey 

O'Hara 

Owens 

Patten 

Podell 

Preyer 

RaUsback 

Randall 

Rangel 

NOBS— 271 


42605 


Rees 

Reuss 

Rlegle 

Rlnaldo 

Roe 

Roncallo,  Wyo. 

Rosenthal 

R<^ish 

Roy 

Roybal 

Sar  banes 

Schroeder 

Belberllng 

Stanton. 

James  V. 
Stark 
Steele 
Studds 

Thompson,  N.J. 
Thone 
Tleman 
Udall 

Vander  Jagt 
Vanlk 
Waldle 
Whalen 
WUson, 

Charles  H., 

Calif. 
WUson. 

Charles.  Tex. 
Wolff 
Yates 
Yatron 
Toung,  Qa. 


Abdnor 

Annunzlo 

Archer 

Arends 

Armstrong 

Ash  brook 

Ashley 

Bsfalts 

Baker 

Bauman 

B«ard 

Bell 

Bennett 

BevUl 

Blaggl 

Blester 

Blackburn 

Boland 

Bowen 

Bray 

Breaux 

Broomfleld 

Brotzman 

Brown,  Mich. 

Brown,  Ohio 

BroyhUl,  N.C. 

Broyhlll,  Va. 

Burgener 

Burke,  Pla. 

Burke,  Mass 

Burleson,  Tex. 

Burllson,  Mo 

Butler 

Byron 

Camp 

Carney.  Ohio 

Carter 

Casey.  Tex. 

Cederberg 
Chamberlain 
Clark 
Clauaen, 
Don  H. 
Clawson,  Del 
Cleveland 
Cochran 
Cohen 
Collier 
Collins,  m. 
Collins.  Tex. 
Conable 
Com  an 
Conte 
Corman 
Cotter 
Crane 
Cronln 
Daniel,  Dan 
Daniel,  Robert 

W..  Jr. 
Daniels, 

Domlnlck  V. 
Daniel  son 
Davis.  Oa. 
Davis,  S.C 


Davis,  Wis 
de  la  Garza 
Dennis 
Derwlnski 
Devlne 
Dickinson 
Dlngell 
Donobue 
Dom 
Downing 
Duncan 
Edwards.  Ala. 
Erlenborn 
Esch 

Eshleman 
Evans.  Colo 
Plsher 
PI  cod 
Flynt 
Porsythe 
Fountain 
Prenzel 
Prey 

Proehllch 
Pulton 
Puqua 
Oettys 
Olalmo 
Oilman 
Olnn 
Goodllng 
Green,  Oreg. 
Gross 
Drover 
Gunter 
Quyer 
Haley 
Hammer- 
schmldt 
Hanley 
Hanrahan 
Hansen,  Idaho 
Harsha 
Hays 

Henderson 
HUlls 
Hlnshaw 
Hogan 
Hollfleld 
Holt 
Horton 
Hosmer 
Huber 
Hudnut 
Hunt 

Hutchinson 
Ichord 

Johnson.  Calif. 
Johnson.  Colo. 
Johnson.  Pa 
Jones,  Ala. 
Jones.  N  C. 
Jones,  Okla 
Jones.  Tenn. 
Kazen 


Keating 

Kemp 

Ketchum 

King 

Kluczynskl 

Kuykendall 

LAndgrebe 

Latta 

Leggett 

Lent 

Litton 

Long.  La. 

Long,  Md. 

Lott 

Lujan 

McClory 

McCloskey 

McColUster 

McCormack 

McEwen 

McPall 

McKay 

McKlnney 

McSpadden 

Macdonald 

BCadlgan 

Mahon 

Mallary 

Mann 

Marazltl 

Martin.  N.C. 

Mathlas.  Calif. 

ktathU,  Oa. 

Matsunaga 

Mayne 

Metcalfe 

Michel 

MUford 

Mlnlsh 

Mitchell,  N.Y. 

Mlzell 

Mollohan 

Montgomery 

Moorhead, 

Calif. 
Moorhead,  Pa. 
Morgan 
Mosher 
Murphy,  ni. 
Murphy,  N.Y. 
Myers 
Natcher 
Nelsen 
Nichols 
Nix 

O'Brien 
O'NetU 
Parru 
Passman 
Patman 
Pepper 
Perkins 
Peyser 
Pickle 
Pike 


Poage 

Powell.  Ohio 

Price,  m. 

Price,  Tex. 

Prltchard 

Qule 

Quill  en 

Regula 

Rhodes 

Roberts 

Robinson,  Va. 

Roblaon,  N.Y. 

Rodlno 

Rogers 

Roncallo,  N.Y. 

Rooney,  Pa. 

Rose 

Rostenkowskl 

Runnels 

Ruppe 

Ruth 

St  Germain 

Sandman 

Sarasln 

Satterfield 

Schneebell 

Sebellus 

Shipley 


Shoup 

Shuster 

Slkes 

Skubltz 

Slack 

Smith,  Iowa 

Smith.  NY. 

Snyder 

Spence 

Staggers 

Stanton. 

J.  WUllam 
Steed 

Stelger,  Ariz. 
Stelger,  Wis. 
Stephens 
Stratton 
Stubblefleld 
Stuckey 
Sullivan 
Symms 
Talcott 
Taylor,  N.C. 
Teague.  Calif. 

Teague,  Tex.       

Thomson,  Wis.  zion 
Thornton 
Towell.  Nev. 


Treen 

nilman 

Vlgorlto 

Waggonner 

Wampler 

Ware 

White 

Whltehurst 

Whltten 

Wldnall 

Wiggins 

WUllams 

WUson,  Bob 

Winn 

Wright 

Wyatt 

Wydler 

Wylle 

Wyman 

Young,  Alaska 

Young.  Pla 

Young,  ni 

Young,  B.C. 

Young,  Tex. 

Zablockl 


Alexander 
Anderson,  Hi. 
Andrews. 
N  Dak 
Aspln 
Boiling 
Brooks 
Buchanan 
Burke,  Calif 
Burton 
ChappeU 
Clancy 
Delaney 
Dent 
Dulskl 
Bvins,  Tenn. 
Flowers 


NOT  VOTINO — 49 
Prellnghuysen    Rarlck 


Qoldwater 
Gray 

Grlfflths 

Gubser 

Hanna 

Hansen,  Wash 

Harvey 

H«bert 

Jarman 

Land  rum 

MaUllard 

Martin.  Nebr. 

MUls.  Ark.  , 

MlnshaU,  Ohio  Walsh 
Moakley  Zwach 

Pettis 


Reld 

Rooney,  N.Y. 

Rousselot 

Ryan 

Scherle 

Shrlver 

Slsk 

Steelman 

Stokes 

Symington 

Taylor,  Mo. 

Van  Deerlln 

Veysey 


So  the  amendment  was  rejected. 
The  result  of  the  vote  was  announced 
as  above  recorded. 

AJltNDME.NT   ..rrERED  BT   MR     EOSKNTHAI. 

Mr.  ROSENTHAL.  Mr.  Chairman,  I 
offer  an  amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr  Rosenthai.-  On 
page  30,  line  21.  delete  "five'  and  Insert  In  Its 
place  -seven."  On  lines  24  and  25  delete  the 
words  "another  for  research  and  advanced 
©ner^'  systems."  and  insert  in  their  place; 
"another  for  solar  energy  research,  another 
for  geotbermal  research,  another  for  re- 
search and  advanced  energy  systems  ■ 

(Mr.  ROSENTHAL  asked  and  was 
given  permission  to  re\^.se  and  extend 
his  remarlc.<;  and  to  proceed  for  5  addi- 
tional mmule.s 

Mr.  ROSENTHAL.  Mr.  Chairman,  ivxycn. 
the  vote  that  immediately  preceded  the 
offering  of  thi5  amendment  one  can 
make  some  judgments.  The  judgment  l-^ 
that  the  ^Members  of  the  Houie  some- 
whiat  fee!  constrained  not  to  tamper  with 
an  organizational  chart  that  has  been 
reported  out  by  a  committee  and  which 
has  been  sent  up  here  by  the  adminis- 
tration. 

Also  Members  such  as  Mr.  Gross  of 
Iowa  have  a  tendency  not  to  iiu^rease  the 
number  of  mdividuais  or  personnel  or  the 
areas  of  respon-sibiiity.  I  can  understand 
that,  but  we  are  falling  Into  an  enor- 
mous trap  by  doin«  precLsel:,-  t^.at  Let 
me  tell  you  what  It  is 

This  bill  Ls  a  good  bill  and  I  s'app<irt 
It,  but  unless  It  is  substantially  improved 
It  makes  the  terrible  mistake  of  being 
overly  traditional  The  bUI  lumps  to- 
gether all  the  traditional  sources  of  en- 
ergy and  all  the  traditional  opportuni- 


ties for  research  and  all  the  traditional 
ways  of  establishing  these  goals. 

We  are  either  in  a  crisis  situation,  an 

urgent  situation,  or  a  demanding  situa- 
tion, and  the  public  response  demands 
that  we  meet  the  challenge  We  caroiot 
meet  this  challenge  by  falling  uito  the 
traditlona]  pattern  of  putting  these  cate- 
gories together- 
Let  me  tell  you  what  I  mean  by  mj' 
amendment  This  bill  as  presentlj-  writ- 
ten provides  inadequate  emphasis  on  the 
promismg  technologies  of  solar  and  geo- 
thermal  energy,  in  this  bin  the  techiiol- 
ogies  are  lumped  together  with  all  other 
advanced  research  like  magiietohvdJocLv- 
namics.  wmds  ai:d  tide?  transmission 
and  storage  research,  alternative  auto- 
motive power  systems,  and  other  re- 
search. 

What  do  the  experts  say  about  this? 
The  National  Science  Foundation  Mr. 
Guyford  Stever.  stated  solar  energj-'is  an 
Inexhaustible  source  capable  of  meeting 
a  significant  proportion  of  the  Nations 
future  needs  with  a  minimum  of  adverse 
environmental  consequences.  He  also 
said:  Indications  are  .solar  energ>'  ls  the 
most  promismg  of  the  nonconventlonal 
energ>-  sources,  and  it  is  not  gomg  to  be 
explored  or  allowed  or  investigated  in  a 
traditional  conventional  fashion." 

Yet  for  fiscal  year  1974 — and  remem- 
ber organization  makes  pohcv— the  total 
amount  estimated  to  be  spent  on  solar 
and  geothermal  energv-  research  is  $16 
miihcwi. 

One  of  the  mast  important  uses  of 
solar  energ>-  is  obviously— and  even  we 
can  understand  this— for  the  heating  and 
cooling  of  residences  and  commercial 
buildmgs 

Solar  heating  is  already  scientifically 
feasible  and  is  used  by  manv  people  in 
the  United  States  today,  but  most  of 
these  people  are  not  traditionalists  they 
are  inventors  Generally  thev  have  buil't 
these  .solar  units  themselves  There  are 
major  deterrents  to  commercial  manu- 
facture and  sale  of  solar  heating  svstems 
Some  of  It  is  due  to  insufficient  design 
information,  liigh  imtial  capital  cost, 
and  uncertainty  of  a  profitable  market 
system  We  need  in  this  Nation  a  vast 
amount  of  research  and  development  into 
system  design  studies  economic  evalu- 
ations, components  development  and 
improvement,  cost  reduction  studies,  and 
engineering  development  and  marketing 
studies. 

-Aj?  for  solar  cooling,  no  solar  cooling 
residence  has  yet  been  operated  in  the 
United  States,  but  It  is  scientifically  fea- 
sible Estimates  are  that  if  we  spend  $20 
million  on  research  into  all  facets  of  solar 
heating  and  cooling,  we  could  have  wide 
use  of  solar  units  within  less  than  10 
years 

Now.  if  we  develop  an  economic  means 
for  ;x)wer  generation  from  central  station 
solar  units,  we  wnll  have  an  envtronmen- 
tally  safe  means  of  cheap  and  abundant 
energy  Some  of  this  sounds  so  ab.<;urd 
that  many  of  the  Members  are  not  pay- 
ing very  much  attenUon  to  it,  but  it  "is 
exciting,  it  is  new.  it  is  non traditional. 
Most  of  'OS  do  not  undei-stand  it.  but  yet 
it  brings  a  glimmer  of  hope— that  an  op- 
port'onity  can  present  itself  on  this  planet 
in  the  years  1973    1974,  and  1975  to  f^c 


(2606 


CON(.Kl  SSIONAL   KI(  ORD—  HOUSE 


December  19,  1973 


unconventional  means  of  energy  to  fuel 
the  Nation's  needs.  We  are  not  going  to 
find  this  by  conventional  and  traditional 
means,  as  is  submitted  to  us  by  this  com- 
mittee. 

The  possibilities  are  enormous,  and 
that  Is  why  we  must  look  to  them.  We 
must  change  our  policy  of  meager  sup- 
port and  meager  organizational  support 
for  solar  research  and  development. 

A  similar  situation  exists  with  respect 
to  geothermal  energy  The  National 
Science  Foundation  estimated  that  40 
percent  of  our  power  needs  in  1985  could 
be  provided  by  geothermal  energy. 

Right  now  the  geysers  at  Imperial  Val- 
ley In  California  provide  more  than  40 
percent  of  San  Francisco's  electric  en- 
ergy. But  the  potential  for  geothermal 
power  Ls  enormous  We  do  not  have  to  he 
confined  to  areas  of  natural  geysers.  We 
could  use  the  heat  of  the  earth  to  gener- 
ate electricity  by  experimenting  with  hot 
rock  geothermal  power.  But  we  must 
provide  adequate  organizational  author- 
ity and  funding.  Unfortunately — and 
this  Is  the  point — unfortunately,  this  bill 
does  not  provide  an  adequate  structure 
to  accomplish  these  kinds  of  objectives. 
These  alternatives  differ  from  fossil 
fuels  and  nuclear  energy,  which  have 
vested  economic  Interests  pushing  for 
their  development.  The  people  who  sup- 
port fossil  fuels  and  nuclear  energy  re- 
sources have  a  constituency.  There  are 
no  constituencies  pushmg  for  these  ad- 
vanced systems  because  the  constituen- 
cies have  not  been  formed  yet. 

Who  is  going  to  speak  for  these  promis- 
ing alternatives  without  strong  agency  or 
industry  support ''  The  answer  obviously 
is  that  there  is  a  grave  chance  they  will 
be  negleclPd.  And  they  will  be  neglected 
if  this  aEmendment  is  defeated  We  need. 
I  believe,  an  assistant  administrator  In 
each  of  these  technologies  to  give  them 
the  opportimlty  to  push  them  from  de- 
velopment to  the  consumer  stage  where 
they  then  can  have  a  constituency,  and 
to  develop  It  to  that  point  where  it  will 
foster  support  by  private  Industry.  Why 
do  you  think  that  nuclear  power  devel- 
oped so  quickly^  Because  it  had  a  con- 
stituency. Part  of  the  reason  has  been 
the  existence  of  a  Government  agency 
which  single-mindedly  pushed  for  its  de- 
velopment. 

This  amendment  will  split  the  AssL-tt- 
ant  Admmis:rator  for  Resources  and  Ad- 
vanced Energ>-  System.*  into  an  As- 
sistant Administrator  for  geothermal  and 
an  .Assistant  Administrator  for  solar  and 
an  Assistant  Administrator  for  advanced 
systems.  This  is  a  unique  opportunity  we 
have  today,  the  most  exciting  opportunity 
that  I  can  recall  on  the  House  floor.  .All 
the  traditional  arguments  will  be  made 
against  the  amendment  Why  have  more 
positions?  Why  split  up  the  pie^  We  have 
enough  scientists  In  one  admLiistrator  to 
solve  It. 

If  we  just  reflect  for  a  moment.  If  we 
put  them  all  in  one  administrator,  the 
fossil  fuel  crowd  and  the  atomic  energy 
crowd  will  squeeze  out  all  of  the  excit- 
ing and  Intellectually  gifted  scientists 
who  want  to  work  In  this  other  field. 
They  vrill  not  be  given  a  fair  share  of  the 
pie  either  administratively  or  financially 


unless  they  have  their  own  administra- 
tor. 

I  know  that  this  Is  a  nontraditional  ap- 
proach. It  is  asking  the  Members  to  do 
what  we  usually  do  not  do.  We  do  not 
know  how  to  break  up  organizations;  the 
administration  tells  us.  They  say: 
"Whatever  we  send  up  there,  that  is  what 
you  should  vote  on." 

Now  is  the  time  to  reject  that  concept, 
that  tired,  old  theory.  If  we  want  to  make 
this  Nation  great  In  the  seventies,  we 
should  reject  that  theory. 

Mr  HOSMER  Mr.  Chairman.  wUl  the 
gentleman  yield? 

Mr.  ROSENTHAL.  I  yield  to  the  gen- 
tleman from  California. 
Mr.  HOSMER.  I  thank  the  gentleman. 
Despite  the  gentleman  s  statement 
that  there  is  not  much  support  lor  solar 
research,  according  to  the  criterion  for 
spending  money  wisely  that  was  put  out 
by  Dr.  Ray  in  her  $10  billion  stud>-,  it 
does  state  that  both  solar  and  geo- 
thermal energj-  have  high  public  sup- 
port but  low  probability  for  anything  ex- 
cept a  long-range  payout. 

The  CHAIRMAN.  The  time  of  the  gen- 
tleman has  expired. 

Mr  HOLIFIELD.  Mr.  Chairman.  I  rise 
in  opposition  to  the  amendment. 

Mr  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield .' 

Mr.  HOLIFIELD.  I  yield  to  the  gentle- 
man from  California. 

Mr.  HOSMER.  I  want  to  add  that  de- 
spite the  fact  that  solar  energy  and  geo- 
thermal energy  have  high  public  support 
In  a  scientific  assessment  of  how  we 
spend  money  on  research  and  develop- 
ment wisely,  these  two  particular  pets 
that  we  are  talking  about  now  carry  the 
lowest  priorities  of  any  of  the  endeavors 
listed  for  energy  research  and  develop- 
ment. They  do  so,  Mr.  Chairman,  simply 
because  they  are  assessed  and  are  the 
farthest  way  in  terms  of  leadtime  to  suc- 
cess. They  are,  indeed.  ad%  anced  systems, 
and  they  should  t)e  categorized  &s  such 
and  treated  as  such,  because  the  ad- 
vanced systems  are  the  ones  that  get  the 
largest  proportion  of  public  money  In 
relation  to  private  money. 

Mr.  HOLIFIELD  The  gentleman  Is 
right,  and  what  we  are  dealing  with  here 
is  an  attempt  to  make  two  additional 
divisions  In  the  box  to  add  to  the  five 
that  we  have  there,  one  for  solar  energy 
and  another  for  geothermal  research. 

I  know  something  about  geothermal 
research,  and  so  does  the  gentleman  from 
California  iMr.  HosiaRt .  He  had  the  bill 
in  on  that.  We  have  geothermal  produc- 
tion in  steam  in  California.  We  have  been 
working  for  years  on  it  out  there,  both  In 
northern  California  and  in  the  Yampa 
Valley,  and  we  have  never  yet  been  able 
to  solve  the  problem  of  taking  the  cor- 
rosion qualities  out  of  the  steam  that 
comes  up.  We  get  low-pressure  steam 
from  the  bottom,  emd  it  corrodes  the 
turbines.  It  Is  not  efficient,  and  It  does 
not  work.  It  makes  a  few  kilowatts  and. 
therefore,  this  Is  relegated  to  the  bottom 
of  the  totem  pole. 

What  we  are  Interested  In  now  Is  the 
Immediate  present  when  we  have  a  real 
energy  crunch  on  In  this  country,  and  we 
want  to  put  the  money  where  the  action 


Is.  We  had  better  get  action  quickly,  or 
this  country  Is  going  to  be  in  bad  shape. 
Mr.  Chairman.  I  ask  for  a  "no"  vote  on 
the  amendment. 

Mr  FRASER.  Mr.  Chairman,  I  rise  In 
support  of  the  amendment. 

Mr.  Chairman,  let  me  just  acknowl- 
edge first  the  very  fine  work  that  the 
committee  has  done,  the  hard  work  of 
the  chairman  of  the  committee.  In  of- 
fering and  supporting  amendments,  I  do 
not  want  In  any  way  to  underrate  the 
enormous  usefulness  of  this  measure. 
What  we  are  trying  to  do  here,  I  think, 
is  make  the  measure  more  responsive  to 
the  energy  crises  we  have. 

The  gentleman  from  California  says 
that  the  solar  energy  concept  Ls  an  ad- 
vanced system  and  that  It  does  not  rate 
much  support.  The  Honeywell  Corp.  in 
mjr-  area  has  a  research  contract  with  the 
University  of  Minnesota. 

One  of  the  Honeywell  officials  made 
the  statement  that  "our  enthusiasm  for 
heating  and  cooling  applications"— and 
he  was  referring  here  to  solar  energy — 
"Is  reflected  In  the  belief  that  commer- 
cialization can  be  accomplished  within 
the  current  decade  "  Those  who  are  In- 
volved In  this  do  believe  it  can  be  moved 
along,  and  the  emphasis  that  this 
amendment  will  give  to  It  is  fully  Justi- 
fled  In  view  of  the  enormous  energy 
problem  we  will  face  lor  some  years  to 
come. 

The  reason  we  find  ourselves  in  our 
present  predicament  is  that  we  did  not 
make  the  necessary  commitment  years 
ago  to  provide  us  with  alternate  sources 
of  energy  for  the  time  when  we  would 
begin  to  nm  out  of  oil.  Although  develop- 
ment of  possible  substitutes  for  fossil 
fuels  will  take  years  and  cannot  ease  the 
current  shortage,  we  must  not  delay  get- 
ting this  effort  underway. 

It  Is  Important  that  we  do  not  hobble 
this  effort  at  the  start  with  a  research 
and  development  framework  that  will 
Impede  development  of  two  highly  prom- 
ising, clean  sources  of  energ>- — geo- 
thermal and  solar.  To  lump  these  two 
technologies  together  with  all  advanced 
energy  systems  would  not  accord  each 
the  attention  it  merits.  This  House 
should  make  certain  that  these  two 
sources  of  energy  are  given  every  en- 
couragement. 

SOLAB     CNXXCT 

Solar  heating  has  been  known  In  thla 
country  since  the  1920s  Yet  It  is  stUl.  for 
all  practical  purposes,  unavailable  to  us 
in  the  present  crisis.  Two  million  new 
housing  units  are  constructed  in  this 
country  each  year.  The  Impact  of  solar 
heating  on  our  energy  use  could  be  enor- 
mous. With  sufficient  encouragement, 
solar  cooling  could  also  prove  feasible  in 
the  very  near  future. 

Central  station  power  generation  Is 
further  down  the  road:  yet  this  too  could 
be  commercially  practicable  by  1985. 

CCOTHEXMAI.    SNEROT 

The  Immediate  potential  for  wlde- 
ran!7e  devekprncnt  of  eeoth^rmal  energy 
Is  with  us.  In  a  report  for  the  University 
of  Alaska  In  1972.  former  Secretary  of 
the  Interior  Walter  Hlckel  expressed  con- 
fidence that  the  United  States  could  pro- 
duce at  least  IJS.OOO  megawatts  in  1985 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


from  Its  geothermal  resources  and  al- 
most 400,000  megawatts  by  the  year  2000. 
Fossil  fuels  and  nuclear  fuels.  In  this 
bill,  have  each  been  placed  under  an  in- 
dependent assistant  administrator.  Both 
geothermal  and  solar  energy  warrant  the 
attention  of  a  separate  office  under  the 
Energy  Research  and  Development  Ad- 
ministration we  are  creating  here.  Sub- 
merging the  administration  of  these  re- 
search efforts  with  all  advanced  systems 
research  In  one  office  could  hinder  their 
development  and  unnecessarily  delay  the 
achievement  of  our  goal  of  Independence 
in  energy  resources. 

I  urge  Members  to  adopt  this  amend- 
ment. 
Mr.  UDALL.  Will  the  gentleman  yield? 
Mr  FRASER.  I  yield  to  the  gentleman 
from  Arizona. 

Mr.  UDALL.  Mr.  Chairman,  I  do  not 
know  how  many  administrators  we  need 
In  this  agency  and  I  have  an  open  mind 
on  the  amendment,  but  one  of  the  things 
that  concerns  me  is  putting  adl  our  eggs 
In  the  nuclear  basket.  I  am  a  little  afraid 
these  people  In  ERDA  are  going  to  have 
a  nuclear  bias  and  what  Just  happened 
Illustrates  this.  It  reminds  me  of  the 
remark  In  the  debate  earlier  today,  of  a 
friend  of  mine  who  said  that  we  ought 
to  get  into  the  research  on  the  erotic 
uses  of  energy,  and  I  think  he  meant  to 
say  "exotic."  We  talk  as  though  solar 
and  geothermal  are  exotic  things  dec- 
ades away. 

This  year,  30  miles  from  Mexican- 
American  border  I  stood  in  a  plant  pro- 
ducing electrical  energy  from  geothermal 
steam.  It  was  built  by  the  Japanese  for 
the  Mexican  Government.  Some  think 
of  Mexico  as  a  backward  country.  Yet 
here  is  a  functioning  electric  plant  pro- 
ducing about  half  the  electricity  they 
need  In  this  part  of  Baja  California. 
Here  Ls  the  Mexican  Government  and 
the  Japanese  10  or  15  years  ahead  of  us 
In  geothermal  energy.  Yet  the  structure 
of  this  new  organization  is  going  to  be 
In  the  hands  of  people  who  think  the 
geothermal  and  solar  applications  are 
the  exotic  things  we  are  not  readv  for 
Mr.  FUQUA.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  FRASER.  I  yield  to  the  gentleman 
from  Florida. 

Mr.  FUQUA.  In  the  Science  and  As- 
tronautics Committee  this  morning  It 
seemed  there  was  still  a  great  deal  going 
on  as  far  &s  energy  research.  They  re- 
ported out  a  bill  for  a  demonstration 
project  in  solar  heating  and  cooling.  The 
National  Science  Foundation  can  still  do 
work  In  solar  and  geothermal  energy, 
and  I  hope  It  stays  that  way  and  that  we 
will  not  put  all  our  eggs  In  one  basket. 
Mr.  FRASER.  We  are  leaving  some 
basic  research  In  the  National  Science 
Foundation,  but  the  R.  &  D.  will  come 
under  this  new  agency.  We  are  lumping 
all  of  this  into  one  catchall  category 
without  giving  the  new  energy  sources 
the  emphasis  I  think  we  ought  to  give 
them  within  the  administrative  structure 
established  by  this  bill. 

Mr.  VANIK.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  FRASER.  I  yield  to  the  gentleman 
from  Ohio. 


42607 


Mr.  VANIK.  Mr.  Chairman,  I  Join  my 
colleagues  in  supporting  this  amend- 
ment. I  have  the  same  concern  as  the 
gentleman  from  Arizona  (Mr.  Udall)  ex- 
pressed a  moment  ago.  The  emphasis 
under  this  plan  as  designed  will  pretty 
much  put  this  vital  area  of  R.  &  D.  Into 
the  hands  of  an  agency  that  is  pretty  well 
oriented  only  one  way. 

Someone  asked  awhile  ago  about  what 
other  agencies  could  contribute.  I  think 
the  Space  and  NASA  and  other  agencies 
have  a  great  contribution  to  make.  I  cer- 
tainly think  we  ought  to  defer  this  whole 
Issue  until  we  resolve  the  question  wheth- 
er or  not  this  country  Is  going  to  estab- 
lish a  trust  fund  to  solve  the  energy 
problem.  I  think  this  whole  Issue  Is  pre- 
mature until  we  get  to  the  fimding  Issue 
because  that  will  spell  out  what  we  ought 
to  do  much  more  clearly. 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman,  will  the  gentleman  yield? 

Mr.  FRASER.  I  yield  to  the  genUeman 
from  Wyoming. 

Mr.  RONCALIO  of  Wyoming.  Mr. 
Chairman.  I  described  the  process  of 
nuclear  weaponry  being  used  for  stimu- 
lation of  gas  fields,  as  scientific  erotica. 
I  should  like  to  suggest  if  I  may,  to  my 
friends  on  the  Atomic  Energy  Joint  Com- 
mittee that  we  avoid  the  charge  that 
we  are  nuclear  top-heavy  by  allowing  and 
accepting  this  amendment.  It  would  do 
much  to  help  heal  all  Irritations  and 
bring  us  together  on  the  question,  so  I 
speak  In  support  of  the  amendment. 

Mr.  GUDE.  Mr.  Chairman,  I  rise  in 
support  of  the  amendment. 

It  has  been  pointed  out  that  the  fruits 
of  this  research  Into  the  21st  century 
sources  of  energy  are  a  long  way  down 
the  road;  but  there  Is  no  need  to  short- 
change the  energy  crunch,  that  is  go- 
ing to  come  when  our  fossil  fuel,  coal, 
runs  out  In  20  or  30  years.  Let  us  look 
at  what  is  going  to  happen  when  these 
fossil  fuels  nm  out.  I  think  we  should 
get  these  new  advanced  forms  of  energy 
moving  with  everything  we  can  muster  in 
this  legislaUon,  so  I  urge  adoption  of  this 
amendment. 

Mr.  SEIBERLING.  Mr.  Chairman,  I 
move  to  strike  the  last  word. 

I  Just  want  to  correct  the  record  here. 
I  think  It  Is  misleading  to  say  solar 
energy  Is  a  giant  beyond  reach  and  only 
to  be  achieved  in  the  next  century.  In 
Japan  today  over  1  million  homes  are 
being  heated  by  solar  energy  and  even 
more  people  are  using  It  to  heat  their  hot 
water  supply. 

Pilot  projects  have  been  built  by  peo- 
ple at  the  University  of  Arizona  for  so- 
lar powerplants  using  existing  tech- 
nology, not  something  up  In  space  cir- 
cling around,  but  right  here  on  the 
ground. 

I  think  the  emphasis  on  solar  energy 
that  is  stressed  in  this  amendmant  Is 
an  absolute  must  and  I  support  the 
amendment. 

Ms.  ABZUG.  Mr.  Chairman,  we  are 
dealing  with  a  verj-  intelligent  amend- 
ment and  I  support  It.  We  must  recog- 
nize that  fossil  and  nuclear  fuels  are 
rapidly  being  depleted. 

The  reason  I  think  this  amendment  Is 
sound  is  because  it  recognizes  the  need 


for  an  emphasis  upon  renewable  energy 
sources,  which  by  the  way  have  the  add- 
ed benefit  of  being  environmentally  ac- 
ceptable. 

I  think  an  emphasis  on  the  develop- 
ment of  solar  and  geothermal  energy, 
provide  the  only  real  hope  for  long-range 
energy  solutions.  We  cannot  assure  this 
unless  we  establish  an  administrative  ais- 
slstant  who  will  concentrate  in  these 
areas. 

It  has  been  stated  that  the  popular 
use  of  these  forms  of  energy  Is  a  long 
way  off.  That  argues  for  the  amend- 
ment to  develop  solar  and  geothermal 
energj-  uses  much  more  quickly  than  the 
projections  that  we  have  at  present.  We 
can  only  do  this  if  we  have  this  kind  of 
administrative  separation. 

The  CHAIRMAN.  The  question  Is  on 
the  amendment  offered  by  the  gentle- 
man from  New  York  <Mr.  Rosenthal). 

The  amendment  was  rejected. 

AMENDMENT    OFFERED    BT     MR.    UDALL 

Mr.  UDALL.  Mr.  Chairman,  I  offer  an 
amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Udall:  Page  33, 
lines  11-15.  strike  subsection  (3i  and  insert 
in  lieu  thereof  a  new  subsection  (3)  as  fol- 
lows: 

(3)  conducting  an  aggressive  and  fully 
funded  program  of  energy  research  and  de- 
velopment. Including  demonstration  proj- 
ects. In  unconventional  energy  sources  and 
technologies  including  but  not  limited  to 
solar  energy,  geothermal  energy,  magnetohy- 
drodynamlcs.  fuel  cells.Jow  head  hydroelec- 
tric power,  use  of  agricultural  products  for 
energy,  tidal  power  and  thermal  gradient 
power,  wind  pwwer.  automated  mining  meth- 
ods, In  situ  conversion  of  fuels,  cryogenic 
transmission  of  electric  power,  electric  ener- 
gy storage  methods,  alternatives  to  the  in- 
ternal combustion  engine,  solvent  refined 
coal,  shale  oil.  coal  gasification  and  lique- 
faction, utilization  of  waste  products  for 
fuel,  hydrogen  gas  systems,  advanced  power 
cycles  Including  gas  turbines,  and  stack  gas 
cleanup; 

POINT    op    ORDER 

Mr.  HOSMER.  Mr.  Chairman,  a  point 
of  order.  t 

The  CHAIR^L\N.  The  gentleman  will 
state  it. 

Mr.  HOSMER.  Mr.  Chairman,  I  make  a 
point  of  order  against  the  amendment  on 
the  ground  it  is  not  germane,  and  seeks 
to  Invade  the  province  of  another  com- 
mittee, to  wit,  the  Committee  on  Appro- 
priations and  an  authorizing  committee. 
In  that  It  requires  that  such  programs  as 
are  listed  be  fully  funded,  Eind  fuU  fund- 
ing is  the  province  of  another  committee, 
or  partial  funding  or  no  funding. 

The  CHAIRMAN.  Does  the  genUeman 
from  Arizona  desire  to  comment  on  the 
point  of  order? 

Mr.  UDALL.  Mr.  Chairman.  I  think  It  is 
clearly  germane. 

The  CH.AIRMAN.  The  Chair  will  rule 
the  amendment  goes  to  the  sources  of  en- 
ergy and  to  the  t>-pes  of  research  and 
development  that  are  In  the  bill  and 
delineates  further  sources  and  programs. 
In  view  of  the  broad  scope  of  the  legisla- 
tion, the  amendment  Is  germane. 

The  Chair,  therefore,  overrules  the 
point  of  order. 

Mr.  UDALL.  Mr.  Chairman,  this  di- 
vided country,  I  think.  Is  unanimous  on 


12608 


CONGRESSIONAL  RECORD  —  HOUSE 


I 
December  19,  1973 


at  least  one  point;  that  Is.  we  simply  have 
to  get  on  Immediately  with  the  bitsinesa 
of  a  large- range  energy  development 
program.  We  are  all  for  whatever  It  U 
called.  Project  Independence,  or  what- 
ever title  that  may  be  suggested  But  the 
members  of  the  committee  should  not  de- 
lude themselves  that  the  legislation  be- 
fore us  today  is  going  to  maice  us  Inde- 
pendent In  terms  of  energy  sources 

Not  one  new  program  Is  authorized. 
Not  one  new  laboratory  Is  authorized  for 
research  and  development.  This  bill,  as 
the  chairman  of  the  committee  has  sug- 
gested. Is  simply  an  attempt  at  etBclency 
by  reshuffling  of  existing  agencies  and 
existing  programs  Into  something  new 
called  ERDA.  Perhaps  we  ought  to  go  this 
route,  and  I  do  not  luaow  whether  I  am 
going  to  vote  against  this  bUl  or  not.  but 
we  should  not  kid  ourselves  here  tonight 
that  we  are  solving  the  energy  crisis  or 
producing  one  new  kilowatt  of  power  or 
one  new  barrel  of  oil 

All  we  are  talltlng  about  is  organiza- 
tion All  this  amendment  does  is  to  try 
to  meet  the  argument  of  nuclear  bias 
The  whole  thrust  of  the  bill  before  us  to- 
night Is  that  we  are  going  to  take  the 
Atomic  Energy  Commission  and  turn  It 
into  an  energy  research  and  development 
agency  It  will  bring  under  the  umbrella 
of  the  Atomic  Energy  Commission,  with 
its  very  large  staff  and  budget,  some 
agencies  from  Interior  and  other  depart- 
ments now  dealing  with  the  subject 

The  basic  fear  we  have  all  had.  or 
many  of  us  have  had.  at  any  rate,  is  that 
we  are  going  to  put  solar  and  geothermal 
and  coal  gasification  and  all  these  other 
programs  in  the  hands  of  an  agency.  In 
the  hands  of  administrators  who  have 
spent  their  lives,  their  careers — and  these 
are  fine  and  dedicated  people — working 
on  nuclear  energy 

We  made  a  long  range  mistake  when 
we  put  most  of  our  eggs  for  the  1970  s  and 
1980s  In  the  nuclear  basket 

The  sad  fact  Is  that  this  year.  1973.  as 
we  near  the  end  of  the  third  decade  of 
the  nuclear  age.  nuclear  electric  energy 
Is  providing  about  1  percent  of  the  Na- 
tion's power  requirements,  the  same  per- 
centage of  energ>-  that  firewood  provides 
for  the  .American  people  this  year 

There  are  some  reasons  for  this  We 
have  had  some  necessary  delays  in  nu- 
clear power,  but  it  slmplj-  demonstrates 
the  fallacy  of  frying  to  load  down  this 
research  and  development  agency  on  a 
nuclear  basis  If  we  are  really  serious,  if 
ERDA— formerly  the  Atomic  Energy 
Commission — is  really  gomg  to  look  at 
all  the  exotic  and  new  energy  sources,  If 
It  is  really  going  to  give  a  fair  shake  to 
solar  and  geothermal  energy,  let  us  say 
so.  because  on  page  33.  In  the  middle  of 
the  page,  all  It  says  is — 

tTndertalung  rea**rch  BncJ  development  In 
lh«  extr»ctlon,  conversion,  »tormge,  tr»n«- 
miaslon.  and  utilization  phases  related  to  the 
development  and  uae  of  energy  from  foaaU. 
nuclear  »olar.  geothennat.  and  other  energy 
sources 

There  are  about  four  lines  and  that 
is  all  they  tell  us 

An  admlrustrator  can  say.  •Well,  under 
this  general  mandate,  we  are  not  really 
interested  in  solar,  we  do  not  think  it  is 


serious  until  the  next  century.  We  are 
not  really  Interested  in  MHD." 

This  spells  out  every  one  of  the  con- 
ventional and  unconventional  techniques 
and  says  to  the  administrator.  "Take  a 
look  at  each  of  them,  go  Into  them 
deeply:  spend  some  money  and  time  on 
them." 

If  the  committee  which  produced  this 
bill  really  maintains  that  we  are  going 
to  have  an  unbiased  research  and  de- 
velopment agency  and  look  at  all  the 
techniques,  then  let  us  say  so.  Some  of 
us  want  to  vote  for  this  bill  I  would 
like  to  strengthen  it  I  would  hope  the 
ranking  minority  member  and  the  chair- 
man of  the  committee  could  see  fit  to  ac- 
cept this  amendment 

Mr  HOSMER  Mr  Chairman,  will  the 
gentleman  yield? 

Mr  UDALL  Mr  Chairman.  I  yield  to 
the  gentleman  from  California 

Mr  HOSMER  Mr  Chairman.  I  hope 
the  gentleman  recognizes  that  in  strik- 
ing out  subsection  <  3 '  of  section  103  and 
substituting  his  language,  he  absolutely 
and  totally  eliminates  any  responsibility 
of  the  administrator  for  nuclear  re- 
search These  things  that  the  genUe- 
man  has  listed  may  be  fine,  but  if  at 
the  same  time  the  administrator  is 
denied  the  authority  to  conduct  nuclear 
research,  which  is  another  Important 
function,  certainly  we  will  have  not  only 
an  unbalanced  national  energy  program, 
but  we  will  have  a  totally  self-defeating 
national  energy  program  and  the  gen- 
tleman will  be  responsible  for  it  if  his 
amendment  carrlea. 

Mr  UDALL  Mr  Chairman.  I  am  for 
nuclear  I  have  high  hopea  for  nuclear, 
but  I  think  we  ought  to  have  research 
in  other  fields 

Mr.  HOSMER.  That  Is  the  problem, 
he  has  left  it  out  entirely. 

Mr.  UDALL.  Nuclear  Is  all  through 
the  bill,  on  every  page. 

Mr  HORTON  Mr.  Chairman,  I  rise 
m  opposition  to  the  amendment. 

Mr  Chairman.  I  certainly  respect  the 
views  of  the  gentleman  from  Arizona, 
but  here.  In  a  sense,  we  are  quibbling 
over  language 

The  bill.  I  think.  Is  much  broader; 
that  is,  the  provisions  in  paragraph  1 3 » , 
on  page  33.  are  a  much  broader  mandate 
to  the  ERDA  Agency  than  that  which 
the  gentleman  from  Arizona  provides  in 
his  amendment-  For  example,  this  is 
what  we  say  in  the  bill : 

undertaking  r«aearch  and  development 
In  the  extraction,  conversion,  ttorage,  trana- 
mtsslon.  and  utUlxatlon  phases  related  to 
the  development  and  use  of  energy  from  fos- 
sil, nuclear,  solar,  geothermal.  and  other  en- 
ergy sources: 

And  in  the  report,  on  page  10.  we  try 
to  emphasize  that  by  saying  as  follows: 

The  tcope  of  poaalbte  energy  sourc«a  and 
utuizatton  techniques  that  EROA  may  ex- 
plore wUl  be  virtually  unt>ounded.  It  wUl  in- 
clude, but  not  be  limited  to.  solar,  tidal, 
wind,  hydrogen,  geothermal  (using  natural 
■t*am.  hot  dry  rock,  water  Injection  and 
other  techniques),  and  nuclear  fusion  It 
will  corer  new  directions  as  yet  unvlsuallsed 
The  vigorous  pursuit  of  all  proc&lalng  energy 
sources  and  technologies  wUl  tM  a  major 
EROA  mlaslon  under  this  bUl. 


I  submit,  Mr  Chairman,  that  the  lan- 
guage of  the  bill  Is  very  broad  and  the 
language  of  the  gentleman  from  Arizona, 
with  all  due  respect  to  what  his  position 
is.  is  much  more  limited. 

Mr  Chairman.  I  think  we  should  vote 
down  the  amendment 

Mr.  UDALL.  Mr.  Chairman,  will  the 
gentleman  yield  ' 

Mr  HORTON  I  yield  to  the  genUe- 
man  from  Arizona. 

Mr  UDALL.  Mr  Chairman.  I  am  go- 
ing to  vote  for  the  bill,  because  I  believe 
we  need  an  Energy  Research  Agency 
But  if  the  gentleman  is  willing  to  men- 
tion these  things  In  the  report  and  if  the 
gentleman  Is  willing  to  list  all  of  these 
exotic  sources  of  energy  in  the  report, 
why  does  he  not  say  so  in  the  bill? 

That  Is  all  I  am  asking  I  am  asking 
that  we  square  the  language  of  the  bill 
with  the  language  of  the  report  which 
the  gentleman  has  read  from. 

Mr  HORTON  Mr  Chairman,  we  can- 
not put  the  entire  report  in  the  bill 

What  I  am  saying  is  that  the  bill  does 
not  need  it  It  has  been  brought  out  by 
the  colloquy,  and  we  have  indicated  In 
the  report  exactly  what  we  mean,  and 
we  are  indtcaUng  that  all  the  things 
which  the  gentleman  is  talking  about 
will  be  covered 

The  bill  itself  provides  a  much  broader 
mandate  to  ERDA  than  what  the  gentle- 
mans  language  is  In  his  amendment. 

Mr  HOLIPIELD  Mr  Chairman,  will 
the  gentleman  yield? 

Mr  HORTON  I  yield  to  the  genUe- 
man  from  California. 

Mr  HOLIFIELD  Mr  Chairman,  the 
gentleman  has  pointed  out  the  provision 
in  paragraph  (3>  on  page  33  of  the  bill. 
I  would  also  like  to  point  out  the  provi- 
sions in  paragraph  (2i  on  that  same 
page,  on  page  33.  which  reads  as  follows: 
encouraging  and  conducting  research  and 
development  to  demonstrate  the  commer- 
cial feasibility  and  pracUcal  applications  of 
energy  sources  and  utUl^ation  technologlee; 

Mr.  Chairman,  the  gentleman  has 
pointed  out  that  everything  the  gentle- 
man from  Arizona  has  covered  In  his 
amendment  is  covered  in  the  language 
of  paragraph  i2>  and  paragraph  (3)  on 
page  33  of  the  bill. 

I  would  like  to  put  to  rest  Just  for  1 
minute  the  assertion  that  this  Is  a  nu- 
clear-oriented research  and  development 
organization.  We  have  deliberately  put 
on  the  same  level  fossil  fuel  and  all 
these  other  things,  as  far  as  the  organi- 
zational structure  Is  concerned. 

We  cannot  authorize  in  this  blU  and 
we  cannot  fully  fund,  we  carmot  ptu-- 
tlally  fund,  we  cannot  fund  at  all  any  of 
these  exotic  sources  of  energy  Some  of 
them  are  exotic,  such  as  the  wind. 

We  have  had  windmills  in  this  country 
ever  since  It  started. 

As  far  as  tidal  power  is  concerned  I 
have  voted  for  every  tidal  power  legisla- 
tion that  came  before  us.  including  the 
Passamaquoddy  operaUon  up  in  Maine. 
As  far  as  fuel  cells  are  concerned,  we 
are  financing  fuel  cell  research  and  de- 
velopment in  the  Atomic  Energy  Com- 
mission. 

As  far  as  magnetohydrodynamlca  Is 
concerned,  where  have  they  gotten  their 


December  19  y  1973 


CONGRESSIONAL  RECORD— HOUSE 


42609 


money  in  the  past?  They  have  gotten  it 
out  of  the  Atomic  Energy  Commission, 
and  It  came  out  of  the  committee  that 
authorized  it. 

These  are  the  things  that  have  been 
supported  in  the  past. 

Where  has  the  gentleman's  committee 
been  in  all  these  years  on  all  these  exotic 
energy  sources?  Where  has  the  gentle- 
man been? 

Why  is  it  that  coal  has  not  had  an 
adequate  amount  of  support  as  it  should 
have  had.  the  support  that  we  are  now 
going  to  try  to  give  it?  We  are  giving  it 
an  organizational  status,  the  same  as 
nuclear  energy,  and  if  the  gentleman's 
Committee  on  Interior  and  Insular  Af- 
fairs will  fund  it  and  will  authorize  it.  It 
will  b^ there. 

If  the  committee  does  not  authorize  It, 
who  else  can? 

That  is  his  statutory  responsibility, 
and  he  has  not  fulfilled  it.  and  his  com- 
mittee has  not  fulfilled  it. 

The  CHAIRMAN  The  question  is  on 
the  amendment  offered  by  the  gentleman 
from  Arizona  iMr   Udall). 

The  amendment  wm  rejected. 

AMKNDMXWT  OrTKRED  BT    ICE.   UDALL 

Mr.  UDALL.  Mr.  Chairman,  I  offer  an 
amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Udall:  Page  34. 
lines  9  through  10.  strike  subsection  (8)  and 
Insert  In  lieu  thereof  a  new  subsection  (8) 
as  follows: 

(8»  encouraging  and  conducting  research 
and  development  in  energy  conservation, 
which  shall  be  directed  toward  the  goals  of 
reducing  total  energy  consumption  to  the 
maximum  extent  practicable,  and  toward 
maximum  possible  improvement  In  the  effl- 
clency  of  energy  use.  Development  of  new 
and  Improved  conservation  measures  shall  be 
conducted  with  the  goal  of  the  most  ex- 
peditious possible  application  of  these 
measures. 

Mr.  UDALL.  Mr.  Chairman,  the 
scenario  is  pretty  well  written  here  on 
this  blU. 

Mr.  HOLIFIELD  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  UDALI    Yes:  of  course. 

Mr.  HOLIFIELD.  As  I  understand  it. 
the  gentleman  is  just  trying  to  use  more 
words  to  do  the  same  thing  we  do  In 
section  8  I  see  nothing  wrong  In  the 
purpose  of  this  amendment  and.  as  far 
as  I  am  concerned.  I  will  accept  the 
amendment. 

Mr.  UDALL  I  thank  the  chairman  for 
that  statrmfr.t 

Mr  HOSMER  wiU  the  genUeman 
yield? 

Mr.  UDALL.  I  yield  to  the  gentleman. 

Mr.  HOSMER.  I  should  add  that  If 
the  amendment  Is  going  to  be  accepted, 
for  the  purposes  of  the  Ricord  I  would 
like  to  state  that  all  U  doe.<;  Is  add  a  lot 
of  redundant  adJecUves  to  what  the  sec- 
tion already  says  and  It  should  be  In- 
terpreted a.<:  doing  absolutely  nothing 
further  or  different  than  that. 

Mr  UDALL.  Thi.s  1.-;  an  attempt  to 
meet  the  fears  and  ronrem.<;  -and  I  con- 
gratulate the  chairman  on  hi.";  flexibility 
on  this — that  were  expre.s,sed  by  the  (gen- 
tleman from  New  York  'Mr  Rosen- 
thal) . 

For  the  next  fe%    years  coiiservaticai 


Is  going  to  save  us.  We  have  to  have  con- 
servation of  energy  I  voted  for  the 
amendment  for  a  special  assistant  ad- 
ministrator; I  think  we  ought  to  have 
one.  What  this  amendment  does  is 
strengthen  the  emphasis  on  energy  con- 
servation. 

Mr.  HOLIFIELD.  Will  the  gentleman 
yield? 

Mr.  UDALL.  Yes;  I  yield  to  the  chair- 
man. 

Mr.  HOLIFIELD  The  amendment  of- 
fered by  the  genUeman  does  nothing  but 
add  additional  verbiage  to  the  very  con- 
cise language  we  have  in  .serlion  8  But 
if  It  make.';  the  gen-Lleman  from  Arizona 
feel  better,  I  am  willing  to  accept  it  How- 
ever. I  do  not  know  about  the  other  .side 

Mr.  UDALL  I  believe  m  quitting  when 
I  am  ahead,  but  it  does  a  lot  more  than 
merely  make  this  Member  feel  gcxxi. 

The  CH.A.IRMAN  The  question  is  on 
the  amendment  offered  by  the  gentle- 
man from  Arizona. 

The  amendment  was  agreed  to. 

AMENOMXNT    OfTXaED    BT    ME.    USALL 

Mr.  UDALL  Mr  Chairman.  I  offer  an 
amendment. 

The  Clerk  read  as  follows : 

Amendment  offered  by  Mr.  Udall:  Page  30, 
line  21.  strike  the  word  -flve"  and  substi- 
tute In  lieu  thereof  the  word  "six". 

Page  30.  line  26.  strike  the  word  "and  ". 

Page  30.  line  26.  Insert  between  "security" 
and  the  period,  the  following  provision: 
"and  another  for  technology  assessment". 

Page  34.  line  11.  insert  a  new  subsection 
( 9 )  to  read  as  follows : 

"(9)  through  the  AsslsUnt  Administrator 
for  Technology  Assessment,  analyzing  and 
evaluating  the  immediate  and  long-range  di- 
rect and  indirect  social,  environmental  and 
economic  effects  of  existing  and  proposed 
research    and   development   programs." 

Mr.  UDALL.  Mr.  Chairman.  I  have 
some  doubts  about  whether  we  really 
need  special  assisUnt  administrators  for 
solar  and  geothermal  energy  on  the  same 
level  as  the  administrators  for  nuclear 
and  fossil  fuels.  I  do  think  we  need  one 
other  additional  administrator,  and  that 
Is  an  administrator  for  technology  as- 
sessment. 

With  so  many  of  these  new  develop- 
ments in  our  scientific  age  we  have  foimd 
we  did  not  look  down  the  road  far  enough 
and  did  not  assess  the  impact  of  a  new 
invention  on  society  and  did  not  look  far 
enough  ahead  to  see  what  it  was  going 
to  do  with  the  total  situation  and  how  it 
would  Interact  with  other  things 

For  example,  we  simply  went  down  the 
road  with  the  automobile  without  look- 
ing Into  this  new  technology  and  assess- 
ing what  it  would  do  to  our  land,  our 
cities  and  our  lives. 

So  we  are  starting  down  a  new.  un- 
charted path  here  and  are  trying  out  all 
kinds  of  new  energy  sources  The  amend- 
ment says  that  in  addition  to  the  other 
assistant  adminLstrators  we  will  have 
one  assistant  administrator  for  technol- 
ogy assessment,  who  will  be  charged  with 
the  mLs,slon  of  analyzing  and  evaluating 
the  long-range  direct  and  indirect  Im- 
pacts and  the  immediate  Impacts  of  the 
road  we  are  following 

This  amendmient  has  very  strong  sup- 
port in  the^ientifir  community  A  num- 
ber of  Meml)ers  have  expressed  interest 


in  It.  I  am  offering  it  on  behalf  of  my- 
self and  those  Members.  I  hope  the  com- 
mittee will  see  fit  to  accept  It 

Mr.  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  UDALL.  I  yield  to  the  gentlemar. 
from  California. 

Mr.  HOSMER  Mr.  Chairman,  may  I 
say  that  I  rnther  disagree  with  the  state- 
ment of  the  gentleman  claiming  that  this 
has  wide  support  in  the  scientific  com- 
munity. 

What  the  gentleman  wants  to  do  Is 
to  set  up  an  assessment  of  research  and 
development.  But.  research  and  devel- 
opment is  in  and  of  itself  a  beginning. 
It  is  a  time  of  experimentation,  of  feel- 
ing a  way,  and  it  always  comes  in  an 
ambiguous  and  amorphous  form  that 
cannot  be  technically  asse.ssed  and  an- 
alyzed with  any  accuracy,  it  can  onJv  be 
evaluated  in  a  very,  very  wide  and  "un- 
certain manner  This  kind  of  an  olBce 
would  simply  be  a  redundancy  and  an 
attempt  to  do  the  impcxssible  at  a  time 
too  early  for  the  forwarding  of  the  pur- 
poses that  the  gentlem^an  from  Arizona 
seeks  to  accomplish 

Mr  UDALL  The  gentleman  from  Cal- 
ifornia was  with  me  Ln  our  committee 
yesterday  when  we  heard  Mr  David 
Freeman,  who  had  been  on  the  'White 
Hou5e  slcentlflc  staff,  and  he  has  been 
quite  a  student  of  these  kinds  of  pro- 
gram .And  the  one  piece  of  advice  he  left 
with  LIS  was  to  take  1  or  2  percent  of 
our  energy  research  and  development 
budget  and  have  somebody  m -house  tc- 
conduct  an  ongoing  technological  as- 
sessment 

Mr.  HOSMER  If  the  genUeman  will 
yield  further,  that  might  be  all  right  but 
not  inside  this  agency  that  is  to  be  set 
up  here  This  is  a  function  that  l?  going 
to  be  done  an.vway  or  I  should  say.  if 
at  all,  by  the  authorizing  and  appropn- 
ations  process 

It  has  to  be  done  on  the  outside  of 
the  Agency,  if  it  Ls  done  or  tried  to  be 
done  at  all.  to  gel  a  feel  for  whether  m 
general,  thlng.^  are  fitting  into  the  Na- 
tion's overall  need  for  energy- 
Mr.  LT)ALL  I  disagree  viith  the  gen- 
tleman. 

Mr  HOLIFIELD  Mr  Chaii-man  if  the 
gentleman  v\\\  yield,  the  gentleman  from 
Arizo.na  i.s  aware  that  Congress  h&^s  al- 
ready set  up  a  congTe.s,sjonaI  agencv  by 
the  name  of  Technoloiricai  A.ssessment 
Board,  and  we  gave  it  $2  million  to  do 
exactly  what  the  gentleman  from  An- 
zona  is  talking  about  I  suggest  that  we 
let  it  do  the  work  m  thLs  Technologlca. 
Assessment  Board  and  make  iu<;  recom- 
mendations to  this  Administrator. 

Mr,  LDALL  I  have  the  honor  of  serv- 
ing on  the  Board  of  the  Office  of  Tech- 
nology .Vs&essment  and  I  hope  that  that 
Board  will  be  looking  into  this  I  think 
^  e  also  need  this  function  handled  in  the 
Agency   itself 

Mr  HOLIFIELD  But  when  thev  get 
around  to  making  some  recommendauons 
there  Is  plenty  of  room  in  the  b:":  for 
them  to  come  In  and  make  the  recom- 
mendation to  this  Federal  Administratrjr 

TTie  CHAIRM,AN  The  question  is  on 
the  amendment  offered  by  the  gentleman 
from.  .Arizona    Mr  Udall 

The  amendment  was  '-ejected. 


IJhlO 


OtWTGRJESSIONAL  RECORD— HOUSE 


AitUTDMEirr  ormiD  bt  mm.  amoRAM 

Mr  BmOHAM.  Mr.  Chairman.  I  offer 
an  amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Bingham: 
Amend  section  103  on  page  34  after  line  3 
by  addl"g  the  following  new  paragraph,  and 
thereafter  renumbering  subsequent  para- 
graphs accordingly : 

■•(7i  Insuring  that  the  responslbUltieA 
specified  la  paragraphs  ( 1 )  through  ( 6 » 
shall  b«  carried  out  on  a  balanced  baals,  so 
that  i>o  one  euerg;-  scurce  or  utilization 
technology  is  given  disproportionate  priority 
to  the  detriment  or  exclusion  of  other  alter- 
natives:" 

Mr.  BINGHAM  Mr  Chairman.  I  am 
aware  that  the  committee  fully  intends 
that  the  work  of  ERDA  be  balanced,  and 
not  be  disproportionate  in  an>-  direction. 
It  is  so  stated  in  the  committee  report, 
and  it  is  entirely-  clear  that  that  is  the 
intention  of  the  committee.  But  I  think 
it  is  valuable  to  put  this  idea  right  into 
the  law. 

I  think  this  will  reassure  people.  I 
think  there  is  going  to  be  some  public 
discussion  of  the  fact  tliat  what  we  are 
doing  here  is  taking  essentlalli'  the  AEC 
and  giung  it  larger  responsibilities.  And 
people  are  going  to  be  afraid  that  this 
new  agency  will  have  a  bias  towards  the 
development  of  nuclear  energy.  I  know 
that  Ls  not  the  intention  of  the  commit- 
tee. I  think  that  the  members  of  the 
committee  and  the  chairman  liave  done 
a  Sne  job  on  it.  and  as  I  say.  it  is  stated 
in  the  committee  report  that  they  expect 
these  various  areas  to  be  fully  consid- 
ered, but  I  think  it  is  valuable  from  the 
pomt  of  view  of  public  confidence.  Lf  for 
no  other  reason,  that  it  be  quite  clear  in 
the  law  that  this  is  what  the  Congress 
intends. 

And  if  you  will  look  at  section  103.  in 
subsections  1  through  6.  these  are  the 
responsibihties  that  the  Administrator 
has  in  the  various  fields. 

Paragraph  3  particularly  spells  out: 
extraction,  conversion,  storage,  trans- 
mission, and  so  on.  use  of  energy  from 
fossil,  nuclear,  solar,  geothermal.  and 
energ>-  sources,  and  so  on.  These  are  the 
various  responsibilities  that  the  admin- 
istrator has  in  the  field  of  R.  &  D.  What 
I  am  suggesting  is  to  add  a  new  para- 
graph (7)  on  page  34  which  would  sim- 
ply say : 

(7i  lns\irlng  that  the  responslblUUes  spec- 
ified In  paragraphs  di  through  (6i  shall  be 
carried  out  on  a  balanced  basts,  so  that  no 
one  energy  source  or  ut'.matlon  technology 
Is  plven  disproportionate  prloritv  to  the  det- 
riment or  exclusion  of  other  alternatives; 

I  am  sure  that  Is  the  committee's  In- 
tention. It  would  seem  to  me  that  the 
onlj-  objection  to  the  amendment  might 
be  that  it  is  unnecessary,  but  why  not 
put  it  in  the  law?  If  that  is  what  we  mean 
let  us  have  it  right  there  in  the  law. 

Mr  HORTON.  Mr.  Chairman,  I  rise  In 
opposition  to  the  amendment.  We  have 
tried  to  stress  not  only  during  this  de- 
bate but  in  the  report  and  In  the  or- 
ganizational chart  an  equal  status  ob- 
tamed  for  each  one  of  these  disciplines. 
The  amendment  that  the  gentleman 
from  New  York  proposes  I  think  would 
create  a  problem. 

First  of  all,  when  he  says  that  they 


shall  be  carried  out  on  a  balanced  basis. 
I  am  not  siare  that  I  know  what  that 
means.  Is  he  talking  about  equal  amounts 
of  appropriations?  This  Is  something  that 
will  have  to  come  up  to  the  Congress 
later  on.  The  Congress  will  have  to  make 
that  determination  at  a  later  date  The 
question  of  whether  or  not  certain  funds 
should  be  authorized  or  the  program 
should  be  authorized  again  would 
come  up  in  the  appropriate  committee. 
That  would  not  be  determined  here 

I  think  that  this  amendment  Is  out  of 
order,  and  I  think  it  would  cref.te  con- 
fusion. We  have  tried  to  demonstrate 
that  we  do  want  a  balance  Insofar  as  is 
possible,  and  the  balancing  that  the  gen- 
tleman is  talking  about  I  think  has  to 
come  later  through  the  actions  of  the 
Congress  through  its  authorizing  and  ap- 
propriating committees. 

Mr.  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  HORTON.  I  yield  to  the  gentleman 
from  California. 

Mr.  HOSMER  I  thank  the  gentleman 
for  yielding. 

I  ask  this  question  for  the  purpose  of 
inserting  in  the  Record  here,  where  there 
is  either  the  existing  language  or  the 
language  offered  by  the  gentleman  from 
New  York  regarding  a  balanced  basis 
and  disproportionate  priority,  I  want  to 
make  certain  that  that  kind  of  language 
either  In  the  report  or  in  the  bill  itself 
does  not  prevent  adequate  emphasis  on 
a  particular  line  of  R.  &  D.  at  a  time 
when  that  line  appears  particularly  pro- 
ductive, and  the  added  effort  in  it  would 
promise  to  bring  forth  at  an  early  date 
an  accomplishment  that  would  actually 
provide  energy  for  which  the  R.  St  D.  is 
being  carried  on. 

Mr.  HORTON.  The  gentleman  is  mak- 
ing the  very  point  I  make.  The  lansuage 
of  the  bill  provides  that  this  determina- 
tion can  be  made  later  by  the  Congress. 
The  determination  will  be  made  on  the 
floor  today  if  this  amendment  is  adopted. 
Therefore,  I  feel  that  the  amendment 
ought  not  to  be  adopted. 

Mr.  BINGHAM.  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  HORTON.  I  yield  to  the  gentle- 
man from  New  York. 

Mr.  BINGHAM.  I  thank  the  gentle- 
man. 

Obviously  the  word  "balanced"  is  not 
intended  to  be  equal.  We  use  the  word 
"balance"  in  all  kinds  of  references  to 
mean  that  we  want  appropriate  atten- 
tion to  the  various  fields,  and  let  it  be 
like  the  word  "motherhood."  If  we  may. 
I  do  not  understand  why  the  gentleman 
objects  to  putting  into  the  bill  the  same 
sentiments  that  are  expressed  In  the 
committee  report. 

Mr.  HOLIFIELD.  Mr.  Chairman,  I  rise 
in  opposition  to  the  amendment. 

Mr.  Chairman.  I  have  studied  this  lan- 
guage carefully,  and  it  leaves  much  to  be 
desired  from  the  standpoint  of  being 
specific  It  uses  phrases  such  as  'bal- 
anced basis '  and  "disproportionate 
priority  to  the  detriment  or  exclusion  of 
other  alternatives."  These  are  all  mat- 
ters of  subjective  Judgment  as  to  what 
Ls  priority. 
In  the  report  we  say  as  follows: 


December  19,  1973 

The  development  of  foMU  fuels,  for  ex- 
ample, will  get  the  same  degree  of  leader- 
ship, drive,  and  direction  that  will  be 
bestowed  on  continuing  efforts  to  advance 
nuclear  technology. 

Let  us  stop  right  there  and  look  at 
that  We  are  doing  all  we  can  do  In  the 
report,  unless  we  want  to  fund  the  same 
amount  of  money  for  each  energy  area 
in  this  bill  and,  of  course,  we  cannot  do 
•hat  This  is  a  reorganization  bill.  "At  the 
same  time  solar,  geothermal,  and  other 
energy  sources  and  advanced  energy  sys- 
tems will  be  investigated  with  the  re- 
quired lntea<=ity  and  motivation.  Your 
committee  does  not  expect,  of  course 
that  all  energy  progrpms  will  be  equally 
funded." 

Would  there  be  any  Member  of  this 
House  who  would  get  up  and  say  todav 
that  solar  energy  should  have  as  much 
research  and  development  as  coal?  Mav- 
be  it  should.  But  would  there  be  anyone 
who  would  take  that  pa^itlon?  We  can 
not  equally  fund  these  things.  They  have 
to  be  looked  at  and  investigated  and  the 
reports  made  to  the  respective  commit- 
tees of  the  Congres.'i.  They  have  to  go 
through  the  budget  process  and  all  the 
other  processes  of  legislation. 

We  cannot  use  language  in  the  bill 
which  might  be  all  right  in  a  speech,  or 
even  In  a  report,  but  I  think  the  wording 
of  the  report  is  judicious.  We  say: 

The  budget  requests  should  be  based  on 
the  best  available  Information  and  Judgment 
as  to  the  relative  marlta  and  posslbUlUes  for 
gaining  uMble  energy  within  given  time 
frames  and  within  economically  and  environ- 
mentally acceptable  bounds. 

We  know  that  we  can  make  energy,  but 
some  way  may  cost  us  50  times  as  much 
as  it  would  cost  in  another  way.  We  can 
make  energy  that  Is  not  as  acceptable  en- 
vironmentally as  other  energy.  So  there 
Ls  a  balance  of  judgment  that  has  to  be 
made,  and  on  the  basis  of  investigation 
and  study  we  must  determine  the  fund- 
ing of  these  different  programs.  There 
will  come  a  time  when  a  committee  of 
the  Congress,  a  committee  that  Is  Inter- 
ested in  solar  energy,  will  come  up  with 
a  suggestion  of  so  many  millions  of  dol- 
lars for  solar  energy,  and  then  the  Con- 
gress wiU  work  Its  will  on  that.  But  we 
cannot  write  general  and  imprecise  lan- 
guage in  the  legislation,  as  the  gentle- 
man from  New  York  seeks  to  do. 

The  gentleman  now  speaking  believes 
that  the  paragraph  he  has  just  read  on 
page  8  of  the  report  on  the  administra- 
tive organization  of  ERDA  is  verj-  precise 
and  very  clear  and  covers  in  detail  what 
the  gentleman  seeks  to  accomplish,  and 
therefore  the  amendment  offered  by  the 
gentleman  from  New  York  should  be 
voted  down. 

The  CHAIRMAN.  The  question  Is  on 
the  amendment  offered  by  the  gentleman 
from  New  York    (Mr.   Bingham). 

The  amendment  weis  rejected. 

AMXKUMEI^T  OFFERXD   BT    MB.   SXISZaLING 

Mr.  SEIBERLING.  Mr.  Chairman.  I 
offer  an  amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Scibkbumg: 
Page  31.  after  line  6.  Insert  the  foUowlng  and 
renumber  succeeding  sections  accordingly: 

"(d)  The  Administrator,  the  Deputy  Ad- 
ministrator, and  the  Assistant  Admlnlstra- 


December  19,  197S 


CONGRESSIONAL  RECORD  —  HOUSE 


/. 


tore  shall  be  appointed  with  due  regard  to 
their  fitness  to  perform  the  duties  vested  In 
each  such  ofBce  by  this  Act.  Each  such  per- 
son shall  be  a  citizen  of  the  United  States 
No  such  person  shall  hold  office  In.  have  any 
pecuniary  Interest  in.  or  own  any  stock  In 
or  bonds  of  any  enterprise  which  engages  In 
the  production  or  development  <j(.  or  research 
In  any  energy  source  which  Is  subject  to  the 
provUlons  of  this  Act.  nor  shall  any  such 
person  engage  In  any  other  business,  voca- 
tion, or  employment  " 

Mr.  SEIBERLING  Mr.  Chairman,  this 
Is  a  very  simple  amendment  and  I  hope 
a  noncontroversial  one.  The  bill  does  not 
contain  any  standard  for  the  selection 
of  the  Administrator  and  the  Deputy 
Administrator  and  the  assistant  admin- 
istrators. This  amendment  would  merely 
require  that  certain  basic  standards  be 
observed. 

Most  Importantly,  it  requires  that  the 
Administrator  and  his  Deputy  and  assist- 
ants divest  themselves  of  financial  in- 
terest In  any  enterprise  which  engages 
In  the  production,  development,  or  re- 
search in  any  energy  source  subject  to 
the  act. 

We  have  had  a  great  many  revelations 
In  recent  months  about  connicts  of  in- 
terest and  people  appointed  to  various 
boards  having  divided  Interests.  It  does 
seem  to  me  that  If  we  are  going  to  re- 
organize our  whole  energy  research  pro- 
gram in  this  country  we  ought  to  start 
out  by  making  it  absolutely  clear  that 
the  people  in  charge  of  this  project  are 
devoted  entirely  to  the  public  interest 
and  do  not  have  any  conflicting  interest 
in  connection  with  the  research  fields 
over  which  they  have  authority. 

That  is  the  purpose  and  I  believe  the 
sole  effect  of  this  amendment  and  I  hope 
it  can  be  accepted  by  the  Committee 

Mr  HORTON  Mr  Chairman  I  rise  in 
opposition  to  the  amendment.  I  think 
much  of  what  the  gentleman  Is  offering 
here  is  covered  in  the  report  and  in  the 
conflict  of  interest  statutes  involved. 

I  do  want  to  make  a  point  in  opposi- 
tion to  the  amendment.  Part  of  the 
amendment  the  gentleman  offers  states 
that  each  person  shall  be  a  citizen  of  the 
United  States.  Such  a  restriction  would 
have  excluded  Wemher  von  Braun  from 
the  space  program.  I  do  not  think  we 
ought  to  lay  down  that  type  of  restric- 
tion. 

For  this  and  other  reasons.  I  believe 
we  should  oppose  the  amendment 

Mr.  SEIBERLING.  Mr.  Chairman  if 
the  gentleman  wishes,  he  may  offer  an 
amendment  striking  that  section  of  my 
amendment. 

Mr.  HORTON.  Mr.  Chairman,  I  yield 
to  the  gentleman  from  Illinois 

Mr.  ERLENBORN  Mr.  Chairman.  I 
understand  there  are  already  provisions 
In  the  law  generally  relative  to  conflicts 
of  Interest  that  have  application  to  these 
appointments,  as  well  as  appointments 
generaUy  to  the  executive  branch  I  am 
not  really  all  that  familiar  with  It.  but  in 
our  discussions  in  the  committee  todav 
we  had  some  reference  to.  I  think  title 
XVrn,  sections  201  and  298.  that  set 
dou-n  standard.-;  relative  to  conflicts  of 
Interest,  allowing  judgments  to  be  made 
and,  of  course,  all  of  these  appointments 
must  be  confirmed  by  the  Senate  where 
these  matters  of  conflicts  of  interest  are 


42611 


gone  into  and  a  judgment  Is  made  by  the 
other  body  as  to  whether  there  is  such 
a  conflict  of  Interest  that  would  disqual- 
ify the  person  from  holding  the  office. 

It  seems  to  me  we  are  setting  up  a 
double  second  standard  for  these  par- 
ticular offices.  If  that  is  true,  I  think  that 
that  really  would  not  be  a  very  good  idea 
at  this  point. 

Mr.  HORTON.  Mr.  Chairman,  I  think 
the  gentleman  is  absolutely  correct 

Mr.  SEIBERLING.  Mr.  Chairman, 
would  the  gentleman  yield?  The  gentle- 
man is  correct  that  there  are  existing 
statutes,  section  208  of  Utle  18  for  one. 
But  they  allow  exceptions  where  the  in- 
dividual concerned  certifies  as  to  his  in- 
terest In  particular  matters  and  it  is 
deemed  insubstantial,  or  where  he  cer- 
tifies he  will  not  participate  in  deciding 
a  particular  matter  on  which  he  has  a 
conflict.  Unfortunately,  this  does  not 
solve  the  problem.  We  have  a  perfect  ex- 
ample right  now  In  the  controversy  that 
Is  going  on  over  the  Assistant  Secretary 
of  Defense.  Mr.  Clements,  who  says  he  Is 
not  passing  on  certain  matters  in  which 
he  has  a  conflict  of  interest,  and  yet  the 
allegation  has  been  made,  that  he  is  do- 
ing so. 

So  why  not  nail  It  down  In  this  statute, 
that  we  will  start  on  a  basis  that  there 
will  be  no  exceptions. 

I  might  Just  add  a  point  to  the  gentle- 
man from  New  York  that  Dr  Wernher 
von  Braun  is  a  citizen  of  the  United 
States.  He  is  simply  not  a  native-born 
citizen. 

Mr.  HORTON.  Mr.  Chairman,  I  think 
this  lang:inge  Is  Inarticulate  and  might 
override  statutes  basic  to  this  bill.  I  hope 
the  amendment  is  defeated. 

The  CHAIRMAN.  The  question  is  on 
the  amendment  offered  by  the  gentle- 
man from  Ohio  (Mr.  SEiBERLfNc) . 
The  amendment  was  rejected. 
Mr.  UD.'VLL.  Mr.  Chairman.  I  move  to 
strike  the  requisite  number  of  words 

Mr.  Chairman.  I  think  It  is  clear  this 
bill  is  going  to  be  pas5ed  this  evening  I 
want  to  call  attention  of  the  committee 
to  the  fact  that  by  tomorrow  we  will  have 
in  the  other  body  the  pas,sape  of  this 
bill  with  one  kind  of  research  and  devel- 
opment act.  We  have  also  in  the  House 
the  bUl  the  Senate  passed  week  before 
last  by  a  vote  of  82  to  0,  which  Is  an 
entirely  different  energy  and  research 
development  bill.  That  bill.  S.  2183.  Is 
before  the  House  Committee  on  Interior 
and  Insular  Affairs.  Sooner  or  later  the 
Congress  will  have  to  work  out  the  con- 
flict. We  are  all  trying  to  find  the  best 
solution  for  the  Nation's  most  pressing 
problems. 

I  had  a  couple  other  amendments  I 
was  going  to  offer.  I  will  relieve  my  col- 
leagiies  by  telling  them  I  will  repair 
One  of  them  dealt  with  solar  energy- 
having  specific  authorization  for  a  solar 
program.  We  have  in  Arizona  strong 
support  for  electrical  power  from  .<;olar 
energy.  We  believe  if  we  put  $100  million 
or  so  in  it  and  start  now,  we  could  have 
it  in  a  decade  or  so.  The  gentleman  from 
Washington  (Mr.  McCobmack)  in  his 
fine  subcommittee  has  produced  a  new 
bill  today  and  we  wlU  have  It  before  us 
shortly,  so  I  wi^l  not  press  this  issue 
One  final  matter  I  have  discussed  with 


the  chairman  of  the  Committee  on  Gov- 
ernment Operations.  In  the  reorganiza- 
tion bill,  the  committees  finally  decided 
to  leave  in  ERDA  the  weapons  produc- 
tion functions  of  the  Atomic  Energy 
Commission.  Going  back  to  page  1946 
for  some  reasons  that  were  valid  and 
adequate  at  the  time,  we  wanted  civilian 
control  and  we  put  all  atomic  energy 
functions  in  this  one  civilian  agency. 

A  number  of  people — I  am  one  of 
them — think  we  ought  to  take  these 
functions  out  eventually,  and  the  sooner 
the  better,  and  transfer  them  into  the 
Defense  Department. 

Mr.  Chairman,  I  wanted  to  ask  the 
chairman  of  the  Committee  on  Govern- 
ment Operations,  is  it  not  correct  that 
the  bill  has  a  provision  for  a  1-year  study 
on  this  question,  with  the  final  policy 
decision  reserved  untU  the  results  of  that 
study  were  in? 

Mr.  HOLIFIELD.  The  gentleman  is 
right.  We  do  not  treat  the  basic  question 
of  the  military  development  functions  in 
this  bill.  We  retain  them  where  they  are 
for  what  we  think  are  good  and  sufficient 
reasons.  Those  good  and  sufficient  rea- 
sons are  that  we  have  successfully  de- 
veloped weapons,  submarine  engines, 
surface  ship  engmes.  nuclear  engines  in 
an  agency  which  has  also  developed 
1.500  peacetime  applications  of  atomic 
energy.  But,  realizing  that  this  was  a 
matter  of  interest,  we  say  in  the  bill  on 
page  54.  line  17,  subsection  (b)  : 

During  the  first  year  of  operation  of  the 
Administration,  the  Administrator.  In  col- 
laboration with  the  Secretary  of  Defense, 
shall  conduct  a  thorough  review  of  the  de- 
sirability and  feasibility  of  transferring  to 
the  Department  of  Defense  or  other  Federal 
agencies  the  functions  of  the  Administrator 
respecting  military  application  and  restricted 
dau.  and  within  one  year  after  the  Admin- 
istrator first  takes  office  the  Administrator 
shall  make  a  report  to  the  President,  for 
submission  to  the  Congress,  setting  forth 
his  comprehensive  analysis,  the  principal  al- 
ternatives, and  the  specific  recomir.endatlons 
of  the  Administrator  and  the  3ecret*ry  of 
Defense. 

Now.  when  that  comes  to  the  Congress, 
that  will  undoubtedly  go  to  the  commit- 
tee of  jurisdiction.  We  cannot  in  this 
bill— we  cannot  nullify  existing  law 
which  has  been  long  on  the  statute  books 
and  which  prescribes,  as  far  as  the  weap- 
ons syst«m  is  concerned,  that  the  Presi- 
dent of  the  United  States  decrees  how 
many  weapons  we  should  have,  what 
kind  of  weapons  we  should  have  and 
where  they  .should  be  located. 

Mr.  UDALL.  Mr  Chairman.  I  do  not 
want  my  time  to  run  out,  but  can  the 
Chairman  assure  me  that  when  this  re- 
port comes  back,  to  the  extent  that  he  is 
in  charge  of  the  situation,  we  will  have 
an  adequate,  fair  and  open  hearing  so 
that  the  Congress  can  make  a  decision 
on  where  to  permanently  place  produc- 
tion of  nuclear  weapons. 

Mr  HOLIFIELD  As  far  as  it  is  within 
n\y  poT^er.  I  shall.  Of  course,  asking  for 
the  report  means  that  we  will  seriously 
con^ader  it  and  we  will  look  into  it. 

Mr  UDALL  It  raises  very  basic  ques- 
tions. 

Mr.  HOLIFIELD.  It  does,  whether  we 
are  going  to  put  over  in  the  Department 
of  Defense  ftincUoDs  which  had  hereto- 


42fil2 


CONGRESSIONAL  RECORD— HOUSE 


December  19,  197  S 


fore  been  handled  successfully  and 
within  budget  limits,  or  whether  we 
should  give  up  the  clvlUan  control. 

The  CHAIRMAN.  The  time  of  the 
gentleman  from  Arizona  has  expired. 

Mr  HOLIFIELD  Mr  Chairman.  I 
move  to  strike  the  requisite  number  of 
words. 

Mr.  UDALL.  Mr.  Chairman,  will  the 
gentleman  jrield? 

Mr  HOLIFIELD  I  yield  to  the  gen- 
tleman  from  Arizona. 

Mr  UDALL.  Mr  Chairman,  I  said  that 
I  had  an  amendment  prepared,  and  I  am 
not  going  to  offer  It.  on  the  strength  of 
the  study  being  made  and  on  the 
strength  of  the  Chairman's  assurance 
that  this  is  going  to  have  a  fair,  adequate, 
and  open  hearing  I  recognize  that  tlUs 
is  a  vital  policy  matter  and  there  are 
strong  feelings  on  both  sides  of  it,  Eind 
it  Is  a  matter  that  Congress  ought  to 
eventually  decide  on  the  basis  of  adequate 
mvestigation. 

Mr  HOLIFIELD  Insofar  as  I  am  per- 
sonally able  to  assure  the  gentleman,  and 
I  do  this  frankly  and  honestly,  I  will  cer- 
tainly do  my  part  to  see  that  there  Is  a 
fair  hearing  on  this  very  important 
question 

Mr  UDALL  Mr.  Chairman,  for  my 
own  part,  I  hope  the  final  decision  would 
be  made  to  take  this  weapons  function 
out  of  what  will  be  essentially  a  civilian 
research  and  development  agency.  I  aun 
willing  to  await  the  study. 

Mr.  HOLIFIELD  It  is  a  scientific 
problem  and  it  is  fraught  with  matters 
of  security. 

It  has  heretofore  been  thought  desir- 
able to  retain  it  in  a  limited  hand  and 
not  throw  it  out  into  the  public,  because 
of  national  security  questions,  and  I  am 
sure  that  all  these  matters  will  have  to 
be  considered  at  the  time. 

Also  I  participated  in  1946  in  a  very 
vigorous  fight  and  mobilized  the  scientists 
at  the  universities  and  people  through- 
out this  country  to  fight  for  civilian  con- 
trol of  atomic  energy  I  think  that 
civilian  control  of  atomic  energy  has 
been  wl.se  I  think  it  has  brought  us 
security  and  I  think  it  has  brought  to 
us  1.500  peacetime  applications  up  to 
date  and  I  can  say  to  the  gentleman  that 
practically  50  percent  of  the  atomic 
energy-  budget  is  now  concerned  with 
peacetime  research  and  development  and 
peacetime  application. 

Mr  HOSMER.  Mr.  Chairman.  wlU  the 
gentleman  yield  ' 

Mr  HOLIFIELD  I  yield  to  the  gentle- 
man from  California. 

Mr.  HOSMER  Mr.  Chairman,  the  re- 
port .No  93-707,  p.  15'  states  that  the 
matter  of  continuing  the  nuclear  weap- 
ons effort  in  ERDA  will  be  reviewed  In  a 
year  to  determine  if  any  changes  should 
be  made  This  is  the  most  rational  way  to 
handle  this  matter. 

The  professional  and  technological 
cross-fertilization  between  the  various 
scientific  disciplines  of  weapons  and  non- 
weapons  scientists  has  made  both  pro- 
grams a  success;  our  first  reactors  were 
conceived  by  weapons  people:  our  reac- 
tor technology  is  being  adopted  by  every 
Nation  In  the  world,  even  the  United 
Kingdom  and  Prance  Techniques  devel- 
oped  in   weapons    programs   for   fabri- 


cating nuclear  material,  production,  re- 
processing, et  cetera,  has  also  placed  us 
In  the  forefront  concerning  these  proc- 
esses In  the  clvUian  field.  The  same  feed- 
back has  occurred  In  other  fields  such  as 
environmental  controls,  quality  controls. 
In  manufacturing  and  the  like. 

Also  of  considerable  Importance  Is  that 
between  weapons  and  nooweapons  nu- 
clear research  there  occurs  common 
usage  of  research  and  development 
equipment  and  facilities,  such  as  com- 
puters, accelerators — for  analytical  and 
test  work — mass  spectographs.  machine 
tools,  basic  research  labs  in  chemistry, 
physics,  biology,  and  the  like.  This 
avoids  massive  duplication  of  effort  and 
Investments  In  rare  and  expensive  sci- 
entific equipment. 

Only  two  AEC  labs  have  nuclear 
weapons  work  In  significant  degree,  the 
Los  Alamos  and  Llvermore  Scientific 
Laboratories,  whose  efforts  are  supple- 
mented by  the  Sandla  Co.  s  hardware 
development  facilities  operated  by  the 
Western  Electric  Co. 

These  labs  have  the  physical  facilities 
to  isolate  the  classified  aspects  of  the 
work  in  such  a  way  that  access  and  work 
in  the  civilian  sector  are  not  interfered 
with.  For  example,  the  LASL  lab  con- 
ducts many  research  efforts  in  nonclassi- 
fied fields  with  the  peirtlclpatlon  of  for- 
eign nations.  Of  course.  U.S.  nationals 
engage  In  many  peaceful  areas  of  re- 
search; for  example,  reactor  design,  ac- 
celerators, biology,  medicine,  fusion, 
geothermal.  lasers,  coal  gasification  us- 
ing reactors. 

Mr.  McCORMACK.  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  HOLIFIELD.  I  yield  to  the  genUe- 
man  from  Washington. 

Mr.  McCORMACK.  Mr  Chairman.  I 
thank  the  gentleman  for  yielding. 

I  wish  to  congratulate  the  chairman 
of  the  committee,  not  only  for  his  re- 
marks but  for  the  leadership  he  has  pro- 
vided over  the  years  and  his  work  in  pro- 
viding for  a  continual  separation  be- 
tween civilian  and  military  control  of 
nuclear  weapons 

I  want  to  say  that  I  agree  with  him.  I 
could  not  agree  with  him  more,  and  I 
wish  to  offer  him  the  highest  compli- 
ment and  the  highest  words  of  praise  on 
this  point. 

Mr.  Chairman.  I  do  want  to  make  one 
point  for  the  record,  and  that  is  this: 
There  is  a  third  option  available.  In  ad- 
dition to  the  two  which  the  gentleman 
has  suggested.  Rather  than  putting  nu- 
clear weapons  under  ERDA.  on  the  one 
hand,  or  the  Department  of  Defense  and 
under  the  military  on  the  other.  I  sug- 
gest, that  nuclear  weapons  R.  L  D.  may 
be  placed  in  the  Nuclear  Energy  Com- 
mission as  proposd  In  this  bill.  Thus 
weapons  control  would  still  be  under  ci- 
vilian authority 

I  make  this  point  at  this  time.  Mr. 
Chairman,  so  that  It  Is  not  foreclosed 
In  further  debate,  because  I  think  that 
further  consideration  of  this  matter  must 
also  include  that  possibility. 

Mr.   HOLIFIELD.    Mr    Chairman,   of 

course  this  would  be  a  very  controversial 

section  to  put  in  a  regulatory  agency,  the 

nuclear  energy  section. 

This  will  be  a  nuclear  section,  Includ- 


ing the  safety  and  organlzatlor.al  aspects, 
and  before  we  consider  puttiTig  this  Into 
a  regulatory  agency,  we  will  have  to  de- 
iMite  the  advisability  of  that.  It  is  a  pos- 
slbUity.  and  there  are  many  other  pos- 
sibilities We  wUl  dPbate  that  Issue  at 
some  appropriate  time  in  the  future 

Mr  VANTK  Mr  Chairman,  will  the 
gentleman  yield? 

Mr  HOLIFIELD  I  yield  to  the  genUe- 
man  from  Ohio 

Mr.  VANIK.  Mr  Chairman,  this  new 
plan  which  Is  evolving  this  afternoon  Is 
In  many  respects  like  to  the  prototype 
of  a  new  airplane;  It  has  to  be  tried  and 
tested. 

I  was  wondering  what  opportunity 
there  will  be  to  have  further  discussion 
to  help  clear  up  some  of  the  problems  we 
have  raised  this  afternoon  that  concern 
us  Will  there  be  an  opportunity  sis  time 
goes  on.  during  the  first  year  of  this  new 
agency? 

The  first  year  of  this  new  agency,  as  I 
understand  it.  will  terminate  on  June  30, 
1975.  Is  there  a  provision  to  check  some- 
where along  the  line  to  see  how  it  Is 
working  out? 

The  CHAIRMAN  The  time  of  the  gen- 
tleman from  California  <Mr.  Holifikld) 
has  expired 

I  By  unanimous  consent,  Mr.  Holifikld 
was  allowed  to  proceed  for  2  additional 
minutes  » 

Mr  HOLIFIELD.  Mr.  Chairman,  the 
answer  to  the  gentleman's  question  is 
■Yes." 

On  page  54  of  the  reporting  section,  we 
have  a  long  line  there  of  two  paragraphs, 
ia>  and  ibi,  which  calls  upon  the  Ad- 
ministrator to  make  reports  "to  the  Pres- 
ident for  submission  to  the  Congress  on 
the  activities  of  the  administration  dur- 
ing the  preceding  fiscal  year.  Such  re- 
port shall  Include  a  statement  of  the 
short-range  and  long-range  goals,  pri- 
orities, and  plans  of  the  administration 
together  with  an  assessment  of  the  prog- 
ress made  toward  the  attainment  of  those 
objectives  smd  toward  the  more  effective 
and  eflQcient  management  of  the  admin- 
istration and  the  coordination  of  Its 
functions." 

We  go  on  then  Into  the  part  that  I 
resul  before. 

Mr.  VANIK.  So  there  will  be  an  oppor- 
tunity to  fine-tune  it  after  the  year  Is 
out? 

Mr.  HOLIFIELD  The  gentleman  Is 
correct. 

Mr.  ROSENTHAL  Mr.  Chairman,  I 
move  to  strike  the  last  word. 

Mr  Chairman,  the  gentleman  from 
Arizona  in  the  colloquy  with  the  distin- 
guished chairman  of  the  committee,  has 
raised  a  very  deep  and  profound  and 
basic  Issue,  the  question  of  the  nuclear 
weapons  function  of  the  Atomic  Energy 
Commission  as  transferred  to  the  ERDA 
Administration. 

I  want  to  remind  our  colleagues  that 
earlier  today  the  following  colloquy  took 
place  between  the  gentleman  from  New 
York  (Mr   Horton>  and  myself: 

I  said  as  follows : 

I  would  like  to  inquire  oX  the  gentleman 
from  New  York  (Mr  Boston),  whether  it  U 
not  the  purpose  of  thla  provision,  th»t  !«. 
section  30«(b)  on  page  54.  whether  it  \a  not 
the  purpose  of  thla  proTlalon  that  there  l>e 


December  19,  197S 


CONGRESSIONAL  RECORD  —  HOUSE 


a  thorough  independent  and  objective  eval- 
uaOon  of  the  various  arguments  on  both 
sides  of  thla  issue  and  that  It  la  not  the 
Intention  of  this  legislation  to  prejudge  In 
any  way  the  menus  ol  the  argument  on  either 
side  of  the  Issue. 

Mr.  HoRTONs  response  was: 

The  gentieman  is  correct 

The  legislative  history  of  this  after- 
noon and  evening  a.s  I  understand  It 
Is  that  the  House  of  Repre.sentatives  by 
Including  .section  306ib>.  which  wa.«  of- 
fered. If  I  re<-all  correctly,  as  a  compro- 
mise between  the  gentleman  from  New 
York  'Mr  Horton  > ,  the  chairman,  and 
my.self,  meant — and  we  all  agreed  to  it 
in  the  offering  of  it-  -that  the  admin- 
istrator wouJd  take  a  fair.  uiibla.sed  and 
objective  view  of  all  the  concem.s  that 
were  articulated  and  expre.ssed  bv  the 
gentleman  from  Arizona  (Mr.  Udall) 
and  the  concern.'^  which  many  of  us 
share. 

By  the  passage  of  this  leglslaUon  and 
the  Inclusion  of  section  306 ib)  In  the 
blU.  no  one  is  to  draw  any  Inferences 
or  make  any  prejudgments  on  this 
issue. 

When  this  report  comes  back  to  the 
Congress,  the  gentleman  from  Cali- 
fornia assures  the  gentleman  from 
Arizona,  then  we  will  hold  open  hearings 
on  this  issue 

Mr^  HORTON.  WlU  the  gentleman 
yield? 

Mr.  ROSENTHAL.  I  yield  to  the  gen- 
tleman 

Mr  HORTON.  I  want  to  say  again 
that  what  the  gentleman  from  New  York 
has  just  said  is  absolutely  correct  That 
is  the  understanding 

Mr.  HOLIFIELD  As  far  a.s  I  am  con- 
cerned, I  will  concur  with  the  statement 
of  the  gentleman  from  New  York  (Mr 
HoRTON' .  We  did  di.sru.ss  It  and  came  to 
an  agreement  and  made  what  we  thought 
was  a  reasonable  compromLse  at  this 
time  in  view  of  the  mission  we  had  to 
perform  legislatively  We  did  set  that  up 
particularly  to  get  the  advantage  of  the 
administrator's  performing  hi.s  duties 
and  making  his  studies  which  would 
then  be  brought  back  to  the  Congress  I 
suppose  it  will  then  be  referred  to  our 
committee.  If  it  is  not.  however  under 
our  broad  jurisdiction  In  our  committee 
we  can  have  some  hearings  on  it  any- 
way. 

Mr.  McCORMACK  Mr.  Chairman  I 
move  to  strike  the  requisite  number  of 
words 

Mr  Chairman,  I  would  like  to  offer 
some  critical  comments  with  respect  to 
H.R.  11510.  The  basis  for  my  comments 
Ues  in  my  conviction  that  this  Nation 
must  have  a  systems  approach  to  an  In- 
tegrated national  energj-  policy.  This  Is 
an  absolutely  e.s,sentlal  minimum  require- 
ment if  we  really  intend  to  do  anvthing 
to  help  solve  the  energy-  crisis:  and  any 
research  and  development  agency  must 
be  built  on  thLs  principle  if  it  is  to  accom- 
plish anything  that  cannot  be  done  Just 
as  well  with  existing  agencies. 

A  systems  approach  to  an  Integrated 
national  energy  policy  must  Include, 
along  with  the  ad.TilnLstratlon  of  all  en- 
ergy research,  development  and  demon- 
stration, all  a^ssessment  and  management 
of  all  fuels,  an  understanding  o!  the  sup- 


42613 


ply  and  demand  for  each  t;.-pe  of  energy 
and  fuel  for  each  region  of  the  countn-, 
and  managerial  determination  of  the 
conservation  potential  and  economic  and 
environmental  feasibility  of  any  energy- 
related  propasal  This  is  basic  to  anv 
other  action  we  may  desire  to  take  with 
respect  to  the  energy  crisis,  and  it  is 
essentia]  that  we  establish  wiihm  the 
executive  branch  a  .single  administrative 
agency  with  the  authority  to  implement 
such  an  energy  policy 

In  this  crisis  situation  we  face,  it  is  not 
acceptable  to  have  any  energy  research 
and  development  administration  work- 
ing in  some  areas  of  energy  R&D  if 
other  Federal  agencies  are  indeT)endently 
doing  the  same  thing,  unless,  of  course, 
these  efforts  are  actively  coordinated 
through  some  single  administrator  to 
whom  all  report 

It  does  not  serve  the  best  interests  of 
our  society  to  attempt  to  direct  any  re- 
search and  development  separately  from 
the  assessment  and  management  of  our 
fuels.  A  systems  approach  would  demand 
that  the  two  be  Integrated  w  Ithln  a  single 
authority.  For  instance,  a  research,  de- 
velopment, and  demom^t ration  program 
for  coal  ga-^ificalion  and  liquefaction 
should  be  related  as  much  as  is  possible 
to  accurate  information  concerning 
available  resources  of  petroleum  and  nat- 
ural gas.  Including  the  amount  available 
at  various  prices,  the  dates  available  and 
the  logistics  involved  It  must  also  be  co- 
ordinated with  programs  that  determme 
with  certainty  how  much  coal  can  be 
made  available  at  any  given  point  in  time 
in  any  region  of  the  country  The  sulfur 
content,  the  noncombustible  content, 
and  the  coking  characteristics  of  the  coai 
must  be  known  along  with  the  availability 
of  process  water  and  the  environmental 
impact  of  developing  a  specific  process 
wliich  would  depend  upon  coal  from  a 
specific  area. 

It  does  not  serve  this  Nation's  best  In- 
terest to  undertake  a  nuclear  develop- 
ment program,  including  various  tj-pes 
of  breeder  reactors  and  burners  using 
different  types  of  fuel,  without  a  thor- 
ough understanding  of  our  uranium 
and  thorium  reserves,  their  location,  the 
cost  of  extracting  and  refining  them,  as 
well  as  the  cost  and  leadtime  required 
to  provide  adequate  enrichment  This  is 
an  area  wherein  the  AEC.  with  oversight 
from  the  Joint  Committee  on  Atomic 
Energy,  has  done  an  outstanding  job  co- 
ordinating re.^earch.  development  and 
demonstration  wnth  fuels  as.sessment  and 
management  However,  this  has  been 
bmited  to  nuclear  energy  What  thL=  Na- 
tion needs  now  is  the  same  integrated 
management  for  ail  energy  policy,  in- 
cluding research  and  development  ' 

Tlie  same  applies  to  understanding 
supply  and  demand  Until  we  know  how 
much  electrical  enerjc  and  how  much 
fossil  fuel  will  be  required  m  each  region 
erf  the  country,  we  cannot  possibly  set 
out  to  manage  our  fuel  programs  or  ulti- 
mately to  determine  policies  for  research 
and  development. 

Nor  Is  this  enough.  We  must  under- 
stand the  conservation  potential,  and  the 
environmental  and  economic  feasibility 
of  any  proposed  program  for  energy  con- 
version,  transmission,   or  consumption. 


Let  me  cite  an  example.  A  recent  study 

by  my  staff  shows  that  if  this  Nation 
were  tx3  develop  an  economically  viable 
system  for  the  gasification  of  coal  bv 
the  mid-1980's,  and  :f  we  were  to  under- 
take to  m.ake  up  with  synthetic  ga.'^  the 
deficiency  that  is  presently  anticipated 
m  our  natural  ga.s  supply  at  that  time 
the  anticipated  cost  for  the  coaJ  gasifi- 
cation plants  alone  would  amount  to  ap- 
proximately $200  billion.  This  Ls  of 
course,  a  rough  figxire  but  it  is  a  good 
approximation.  It  applies  onlv  to  the 
gasification  plants,  ignoring  the  cost  of 
opening  and  developing  more  mines  and 
of  transporting  coal  to  the  gasificaUon 
plants.  It  also  completely  Ignores  the 
availability  of  process  water  and  the  en- 
vironmental considerations  of  such  an 
undertaking. 

This  example  can  be  multiplied  many 
times  a.s  one  considers  such  programs  as 
the  increase  In  the  number  of  nuclear  re- 
actors, the  breeder  program,  svnthetic 
liquid  fuels  from  coal,  solar  and  geother- 
mal energy  development,  transmission 
of  electricity,  human  transportation  de- 
sulfurization  technolog>-,  and  the  envi- 
ronmental impact  of  any  of  these. 

The  question  logically  arises-   Would 
the  ERDA.  as  set  forth  in  H.R.  11510 
respond  to,  or  fit  Into  the  need  for  a  sys- 
tems approach  to  an  Integrated  national 
energy  policy? 

I  respectfully  submit  that  it  would  re- 
spond only  in  part  to  the  need :  and  that 
to  make  It  respond,  one  must  assume  that 
all  the  major  policy  decisions  concerning 
pr^ergy  research  would  not  be  made  with- 
in ERDA  at  all,  but  within  the  new  Fed- 
eral Energj-  Agency— which.  In  spite  of 
protestations  to  the  contrary— would— 
along  with  the  OMB— have  to  assume 
this  responsibility  So  I  think  it  Is  Im- 
portant to  recognize  what  we  are  doing 
here.  Fundamentally,  we  are  just  shuffl- 
ing organizational  boxes.  It  does  little 
harm  to  do  this  imless  we  Inhale  too 
much  of  the  rhetoric  and  act  as  if  we 
actually  believe— or  teU  the  folks  at 
home— that  we  can,  with  this  bill  solve 
the  energy  crisis  any  better  than  we  can 
without  the  bUl.  In  short.  I  think  the  bill 
should  be  criticized  for  what  It  Is  not- 
more  than  for  whaf  it  Is— for  what  It 
would  not  do  more  than  for  what  It 
would. 

Mr.  Chairman,  the  second  major 
weakness  of  H.R  11510  as  I  see  it  is  that 
nuclear  weapons  research,  development, 
and  demonstration  would  be  transferred 
from  AEC.  along  with  energy  research 
and  development,  to  '.he  ERDA.  I  believe 
Lhis  to  be  highly  inadvisable,  not  onlv  be- 
cause the  verv-  large  weapons  budget 
would  tend  to  blur  the  perspective  of  our 
energ>-  effort,  and  not  only  because  of 
the  distorted  attention  that  such  a  large 
block  :n  the  budget  would  cause  in  the 
mind  of  management,  but  also  because  1 
believe  ver>-  strongly  that  we  must  in 
every  way  that  we  can.  help  the  average 
citizen  distinguish  between  the  safe, 
peaceful,  uses  of  nuclear  energy  on  the 
one  hand,  and  nuclear  weapons  on  the 
other. 

H.R.  11510  would  transfer  solar  heat- 
ing and  cooling  development,  and  geo- 
thermal power  development  from  the  Na- 
tional Science  Foundation.  It  would  also 


42614 


CONGRESSION A 1    }  !  CORD  —  HOUSE 


transfer  alternative  automobile  power 
systems  and  emission  research  from 
EPA 

While  this  seems  to  be  a  start  In  the 
direction  of  integrating  energj-  R.  &  D..  I 
fail  to  perceive  the  logic  in  this  particular 
delineation.  Lf  some  energy  R.  &  D.  from 
NSF  is  to  be  included,  why  not  all? 
Should  not  other  solar  related  R.  &  D.  be 
included?  What  about  battery  R  tt  D. 
and  wind  energy,  and  fuel  cells?  Most 
Important  of  all  Is  materials  research. 
This  is  the  most  Important  area  of  all 
energy  research,  as  our  Tsisk  Force  on 
Energy  pointed  out  this  spring.  If  some 
automotive  research  is  to  be  Included, 
why  not  that  outstanding  work  being 
done  by  NASA?  If  we  include  some  trans- 
portation R.  ti  D.  why  not  all.  at  least 
Insofar  as  it  is  energy  related?  If  solar 
heating  and  cooling  is  included,  why  not 
housing  design  and  standards  for  energy 
efficiency?  These  are  all  important  areas 
of  energy  research,  and  I  believe  that 
any  energy*  research  and  development 
agency  must  consider  them  all  In  an  Inte- 
grated manner. 

FTnally.  Mr.  Chairman.  I  want  to  em- 
phasize that  any  energy  R.  &  D  agency 
must  be  responsible  to  Congress,  as  much 
as  to  the  administration,  for  developing 
and  Implementing  energy  policies  and 
R.  ii  D.  programs.  I  have  asked  mj-self — 
could  H.R.  11510  be  amended  to  make 
the  ERDA  meet  the  criticism  I  have  of- 
fered. My  judgment  is  that  we  should  also 
consider  the  concept  of  an  Interagency 
Energy  Council  such  as  was  Included  In 
S  1283  by  Senator  Jackson,  which  was 
passed  82  to  0  by  the  Senate,  and  which 
is  now  before  the  interior  committee. 
This  Agency  would,  as  I  understand  it. 
be  directed  by  an  administrator  ap- 
pointed by  the  President,  and  approved 
by  the  Senate.  The  Agency  would  co- 
ordinate the  energy  research,  develop- 
ment and  demonstration  activities  of 
NASA.  NSF.  AEC.  Department  of  the 
Interior.  FPC.  NBS.  and  EPA.  However, 
even  with  such  a  council.  I  would  include 
an  automatic  destruct  provision,  with  a 
long-range  study  for  the  creation  of  a 
Cabinet-level  agency  to  determine  energy 
policy  and  manage  all  energy  program*. 
Mr  Chairman.  I  make  these  philo- 
sophical points  at  this  time  simply  to 
establish  them  for  the  record,  and  to  get 
this  bill  into  perspective. 

AirENOMENT     OrrXXXD     8T     itM.     SEIBnUXNC 

Mr.   SEIBERLTNG    Mr    Chairman.   I 
offer  an  amendment 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  SnaeKLOtG 
PtiKb  32  lines  20  through  21.  strike  out  The 
respooBlbUltles  of  the  Administrator  shall 
Include,  but  not  be  limited  to— ••  and  Inaert 
In  lieu  thereof  -lai  The  Administrator  shall 
consider  the  public  interest  whenever  he 
exercises  his  functions  and  responslbUltles 
under  this  Act.  Including,   but  not  U^jlted 


December  19,  1973 


Page  34,  between  lines  10  and  11.  Insert 
the  following 

•(b)  In  the  exercise  and  perTormance  of 
his  powers  and  duties  under  this  section,  the 
Administrator  shall  consider  the  following, 
among  other  things  as  being  In  the  public 
Interest 

(1)  The  development  of  a  plan  for  energy 
research  and  development  that  defines  the 
essential  energy  needs  of  preaent  and  future 


generations    and    the    probable    alternatives 
for  meeting  such  needs: 

(2)  The  research  and  development  of  en- 
ergy resources  to  provide  adequate,  reliable, 
economical  and  environmentally  acceptable 
energy  systems  that  support  the  essential 
needs  of  society  with  minimum  loss  of  scarce 
resources. 

(3)  The  development  of  the  technology 
and  Information  base  necessary  to  encoiir- 
age  a  wide  range  of  option*  for  future  energy 
policy  decisions; 

(4)  The  development  of  methods  for  the 
conservation  of  energy  resources  which  maxi- 
mize the  efficiency  of  energy  development, 
transportation,  production,  conversion  and 
use: 

(5)  Prevention  of  adverse  environmental, 
health  and  safety  effects  associated  with  the 
dl-scovery.  production,  conversion,  transpor- 
tation and  use  of  energy  sources: 

(6)  Investigation  of  the  capability  for  en- 
ergy self-sufficiency  for  the  United  States 
through  the  development  of  socially  and  en- 
vironmentally acceptable  methods  of  utiliz- 
ing domestic  energy  sources: 

(7)  Priorities  for  research  and  develop- 
ment of  conventional  and  unconventional 
energy  systems  In  which  adverse  social,  eco- 
nomical and  environmental  impacts  are 
minimized: 

(8)  Promotion  of  competition  among  cor- 
porations engaged  In  the  exploration,  de- 
velopment and  production  of  energy  re- 
sources." 

Mr.  HOLIFIELD.  Mr.  Chairman,  would 
the  gentleman  yield? 

Mr.  SEIBERLING.  I  yield  to  thd 
gentleman  from  California. 

Mr.  HOLIFIELD.  Mr.  Chairman,  I 
have  been  unable  to  find  a  copy  of  the 
amendment  offered  by  the  gentleman 
from  Ohio. 

Mr.  SEIBERLING.  There  is  a  copy  at 
the  desk  in  front  there.  Mr.  Chairman. 

Mr.  HOLIFIELD.  Is  the  amendment  in 
the  CoNCREssioNAt  Record? 

Mr  SEIBERLING.  Yes,  it  is  in  the 
CoNCRissioNAL  Rkcord.  It  Is  amendment 
No.  2.  

Mr.  HOLIFIELD.  In  the  Congression- 
al  Record   of   December   12? 

Mr  SEIBERLING.  On  page  41203. 

Mr.  HOLIFIELD.  I  have  the  amend- 
ment. 

I  thank  the  gentleman. 

Mr.  SEIBERLING.  Mr.  Chairman,  I 
think  that  the  committee  report  does  an 
excellent  job  of  outlining  the  basic  goals 
of  this  proposed  new  administration,  but 
it  is  perhaps  an  indication  of  the  func- 
tional approach  of  the  bill  that  Section 
103.  while  it  sets  forth  In  functional 
terms  the  responsibilities  of  the  adminis- 
trator, does  not  really  give  any  guidelines 
as  to  the  particular  areas  that  the  ad- 
ministrator is  to  give  attention  to  in 
terms  of  fulfilling  the  public  Interest.  In 
fact,  it  does  not  even  say  that  the  ad- 
ministrator is  supposed  to  consider  the 
public  Interest  in  discharging;  his  func- 
tions under  this  bill. 

My  amendment  does  two  basic  things: 
One.  it  says  that  in  discharging  his  re- 
sponsibilities and  functions,  the  adminis- 
trator shall  consider  the  public  interest; 
and,  two.  it  sets  forth  certain  matters 
which  are  to  be  considered  In  deciding 
what  Is  In  the  public  interest. 

The  Members  have  heard  them  read, 
and  I  am  not  going  to  repeat  them,  but 
let  me  Just  highlight  a  few  First  of  all. 
It  says  that  In  the  exercise  of  the  per- 


formance of  his  duties,  he  shall  consider 
as  being  In  the  public  Interest  the  devel- 
opment of  plan  that  defines  the  essential 
energy  needs  of  present  and  future  gen- 
erations and  the  probable  alternatives,  a 
plan  for  research  and  development  that 
Is  in  the  context  of  our  overall  needs  and 
capabilities. 

It  says,  among  other  things,  that  he 
shall  consider  the  importance  of  the 
prevention  of  adverse  environmental 
health  and  safety  effects  associated  with 
various  types  of  energy  research,  devel- 
opment, and  production.  It  says — and 
this  is  a  goal  stated  by  the  President  him- 
self—that  Investigation  of  the  capability 
for  energy  self-sufficiency  Is  one  of  the 
matters  he  Is  to  consider.  Also  setting 
priorities  for  research  and  development 
of  energy  systems  that  avoid  adverse  so- 
cial, economic,  and  environmental  Im- 
pacts. Finally,  he  must  be  concerned  with 
the  promotion  of  competition  among  pri- 
vate corporations  engaged  In  the  explo- 
ration, development,  £ind  production  of 
energy.  These  are  elementary  matters, 
and  yet  If  we  are  going  to  have  a  bill 
that  has  the  proper  orientation  and  con- 
vinces the  public  that  we  are  really  set- 
ting up  an  unbiased,  objective  adminis- 
tration, we  ought  to  set  forth  such  guide- 
lines in  the  bill.  That  Is  the  purpose  of 
this  amendment. 

Mr  Chairman,  I  yield  back  the  balance 
of  my  time. 

Mr.  HORTON.  Mr.  Chairman,  I  rise 
In  opposition  to  the  amendment. 

Mr.  Chairman.  I  will  not  take  but  a  few 
minutes  I  do  want  to  point  out  that  we 
could  be  here  all  night  If  we  try  to  add 
each  Members'  language  to  this  bill.  The 
committee  worked  on  this  bill  very  care- 
fully and  spent  a  lot  of  time,  not  only 
the  subcommittee,  but  the  full  commit- 
tee, as  well  as  the  members  of  the  staff. 
This  language  is  already  covered  in  the 
responsibilities  section  of  the  bill,  and  it 
Is  covered  in  the  report. 

Also  the  gentleman  has  indicated  there 
ought  to  be  some  sort  of  statement  about 
what  the  administrator  is  going  to  do. 
We  require  specifically  in  the  bill  on  page 
54.  which  has  been  read  before,  that  the 
administrator  shall  furnish  a  report  to 
the  President  for  submission  to  the  Con- 
gress each  year,  which  will  Include  a 
statement  of  his  short-range  and  long- 
range  goals,  et  cetera. 

Mr.  Chairman,  I  am  opposed  to  the 
amendment   I  hope  It  is  defeated 

Mr  PERKINS.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr  HOLIFIELD  I  yield  to  the  genUe- 
man  from  Kentucky. 

Mr.  PERKINS.  I  thank  the  gentleman 
for  yielding. 

Mr.  Chairman,  I  rise  in  support  of  H  R 
11510. 

It  Is  wise  that  the  proposed  legislation 
provides  for  an  Assistant  Administrator 
for  Fossil  Energy  Development,  and  that 
will  receive  the  s^pune  recognition  as  Nu- 
clear Energy  Development. 

Coal  llquefactlot\  and  coal  gasification 
on  a  commercial  ^ale  can  become  an 
actual  reality  within  the  next  3  or  4 
years  if  we  are  really  serious  about  this 
energy  problem.  It  would  be  my  hope 
that    the    Congress    and    the   executive 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42615 


branch  of  the  Government  are  deter- 
mined to  make  this  country  self-suffi- 
cient on  energy  developed  within  this 
country,  instead  of  depending  upon 
other  countries  to  meet  our  energy  re- 
quirements. 

I  must  say  that  I  am  disappointed 
about  the  amount  of  money  that  has 
already  been  appropriated  for  research 
in  this  area,  because  It  Is  entirely  inad- 
equate. We  should  proceed  in  the  same 
fashion  that  we  proceeded  in  the  de- 
velopment of  such  projects  as  the  atomic 
bomb. 

Coal  production  today  Is  lagging  be- 
hind the  demand,  which  Is  at  a  produc- 
tion rate  of  590  million  tons  annually.  We 
are  not  even  producing  the  coal  neces- 
sary to  supply  the  electric  utilities  that 
desire  to  switch  from  oil  to  coal.  In  other 
words,  we  are  short  10  miUion  tons  In 
fullfUllng  the  demand  for  coal  today, 
and  this  Is  not  considering  coal  for  gasi- 
fication and  liquefaction. 

Throughout  the  Appalachian  coal 
fields,  we  find  that  In  many  Instances  the 
coal  Industry  is  having  difficulty  In  ob- 
taining railway  cars  to  deliver  their 
orders.  It  has  been  stated  that  we  only 
have  adequate  railway  cars  to  take  care 
of  an  expanded  coal  production  of  4  per- 
cent above  our  present  production. 

On  the  other  hand,  we  know  that  many 
of  the  largest  raUway  car  shops  in  the 
country  have  equipment  that  is  Idle,  and 
not  being  utilized  at  the  same  time  we 
have  unemployment  rates  as  high  as  20 
percent. 

In  the  district  that  I  am  privileged  to 
represent,  at  Raceland,  Greenup  County, 
Ky.,  we  had  2.300  men  working  In  the 
shop,  building  railway  cars  during  1971 
and  early  1972. 

Today,  we  have  very  few  men  work- 
ing— the  number  Is  In  the  low  hundreds 
If  that  high— but  thankfully  the  yards 
will  start  working  on  300  new  cars  In 
1974,  and  employment  will,  of  course, 
rise.  The  figure  of  300  more  cars,  how- 
ever. Is  far  less  than  the  actual  needs  of 
the  Nation.  We  must  get  the  transporta- 
tion constructed  to  solve  the  energy 
crisis,  because  without  the  deliver>-  means 
we  have  not  solved  the  problem  at  all. 
I  know  this  legislation  is  not  the  ap- 
propriate place  for  an  amendment  of  this 
t>T)e.  but  somewhere  along  the  line  we 
must  create  the  Incentive  for  the  railway 
companies  to  get  on  with  this  job  and 
conduct  several  thousand  railway  cars  to 
alleviate  an  emergency  of  the  present 
type.  We  certainly  cannot  afford  to  have 
idle  equipment  such  as  we  have  at  Race- 
land  and  Russell.  Ky.  Several  thousand 
railway  cars  must  be  built.  Likewise,  we 
have  to  create  the  incentive  for  more 
deep  mining,  considering  the  necessity 
for  coal  liquefaction  and  coal  gasifica- 
tion. 

It  would  be  my  hope  that  the  Govern- 
ment would  provide  a  subsidy — even  if 
we  have  to  stockpile  coal — and  make 
loans  available  on  a  massive  scale  to 
coal  miners  at  a  subsidized  rate  of  inter- 
est and.  If  necessary,  a  subsidized  price 
per  ton,  to  provide  the  coal  necessary  for 
the  utilities  In  the  countr>-  that  have 
been  using  oil.  and  for  coal  liquefaction 
and  coal  gsislflcatlon. 

Mr  Chairman,  If  we  are  really  serious 


about  having  adequate  fuel  in  this  coun- 
try and  letting  this  country  become  self- 
sufficient  from  a  fuel  standpoint,  it  is 
necessary  that  we  make  available  enough 
billion  dollars  in  additional  money,  other 
than  the  funds  already  recommended, 
for  co€il  liquefaction  and  coal  gasifica- 
tion. 

Mr.  Chairman,  I  also  hope  that  some 
strong  attention  wiU  be  paid  to  the  need 
for  additional  technicians,  additional 
mining  engineers,  additional  chemists 
who  know  coal,  additional  training  pro- 
grams for  miners,  because  they  wUl  be 
needed,  badly  needed,  and  they  are  in 
short  supply. 

Mr.  HOLIFIELD.  Mr.  Chairman.  I  op- 
pose the  amendment  of  the  gentleman 
for  the  ample  reasons  stated  by  the  gen- 
tleman from  New  York  iMr.  Horton). 

The  CHAIRMAN.  The  question  is  on 
the  amendment  offered  by  the  gentle- 
man from  Ohio  (Mr.  Seiberling). 

The  amendment  was  rejected. 

AMINBMENT  OTTtXED  BY   MR.  SEIBERLING 

Mr.  SEIBERLING.  Mr.  Chairman,  I 
offer  an  amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr.  Seiberling:  On 
page  36,  between  lines  21  and  22.  insert  the 
following  new  subsection: 

"(g)  There  are  hereby  transferred  to  and 
vested  In  the  Administrator  of  the  Environ- 
mental Protection  Agency  such  functions  of 
the  Atomic  Energy  Commission  and  the  offi- 
cers and  components  thereof  as  relate  to  or 
are  utilized  In  connection  with  establishing 
generally  applicable  environmental  stand- 
ards for  the  protection  of  the  general  en- 
vironment from  radioactive  material.  As  used 
herein,  the  term  "radioactive  material"  In- 
cludes all  material  which  U  subject  to  the 
licensing  and  regulatory  functions  of  the  Nu- 
clear Energy  Commission.  As  us©d  herein,  the 
term  "standards"  means  both  emission  and 
ambient  limits  on  radiation  exposures  or 
levels,  or  concentrations  or  quantities  of 
radioactive  material.  In  the  general  environ- 
ment outside  the  boundaries  of  locations  un- 
der the  control  of  persons  possessing  or  using 
radioactive  material.  In  establishing  such 
standards  to  protect  the  public  health  and 
environment,  the  AdnUnlstrator  of  the  En- 
vironmental Protection  Agency  may  take  Into 
account  the  cost  and  the  effectiveness  of 
emissions  controls  and  other  control  systems. 
and  he  may  set  different  standards  for  differ- 
ent classes  and  sizes  of  activities  and  facili- 
ties Involved." 

Mr.  SEIBERLING.  This  is  an  amend- 
ment that  has  been  made  necessar>'  by  a 
recent  action  of  the  Office  of  Manage- 
ment and  Budget  interpreting  the  exist- 
ing law  with  respect  to  the  authority  to 
set  radiation  standards  in  the  air  and 
water  surrounding  nuclear  plants.  In 
1970  a  reorganization  act  transferred 
from  the  Atomic  Energy  Commission  to 
the  Environmental  Protection  Agency 
the  authority  and  responsibility  of  estab- 
lishing generally  applicable  environmen- 
tal standards  for  the  protection  of  the 
general  environment  from  radioactive 
material. 

Recently  the  Director  of  OMB  made 
an  interpretation  in  which  he  ruled  that 
law  as  giving  to  EPA  only  the  authority 
to  establish  what  are  called  ambient 
standards,  which  refer  to  the  general 
quality  of  air  and  water  surrounding  a 
particular  source  of  pollutant,  and  that 
the  authority  to  set  emissions  standards, 
which  is  the  amount  of  radioactive  pol- 


lutant that  can  emanate  from  a  par- 
ticular source,  would  be  left  to  AEC.  The 
later  authority  would  undoubtedly  end 
up  in  the  hands  of  the  new  nuclear 
energy  agency  to  be  established  by  this 
bill. 

It  seems  to  me  that  to  leave  this  au- 
thority in  the  agency  that  is  responsible 
for  licensing  nuclear  powerplants  is  to 
allow  a  confiict  of  interest  to  continue, 
because  the  NEC  wiU  have  as  its  object 
promoting  nuclear  energy  whereas  the 
EPA  has  as  Its  object  protecting  our 
health. 

Hardly  a  month  passes  but  what  those 
of  us  in  northeastern  Ohio,  and  I  am  sure 
other  Congressmen,  receive  visits  from 
delegations  of  people  who  are  all  upset 
about  the  possible  siting  of  an  atomic 
plant  in  their  neighborhood.  There  is  no 
way  we  can  ass'ire  them  that  the  AEC  is 
going  to  be  objective  about  this  situation. 

It  seems  to  me  one  way  to  give  that 
assurance  is  to  have  a  separate  independ- 
ent body,  whose  sole  responsibility  is 
protecting  our  environment,  to  have  this 
responsibility.  And  so  the  purpose  of  this 
amendment  would  be  to  make  it  clear 
that  we  intend  that  authority  to  con- 
tinue in  the  Environmental  Protection 
Agency  where  I  believe  the  Congress 
thought  it  was  lodging  it  in  1970. 

Someone  might  argue  that  this  will 
cause  a  loss  of  time  in  establishing 
standards.  Let  me  simply  say  that  the 
EPA  has  already  drawn  up  such  stand- 
ards and  they  were  about  to  issue  them 
when  this  little  end  run  was  made  on 
them  through  the  OMB. 

Mr.  Chairman.  I  think  the  regulatory 
and  licensing  authority  of  the  NEC  must 
be  separated  from  any  environmental 
standard  setting  authority. 

Mr.  HOLIFIELD.  Mr.  Chairman,  will 
the  gentleman  yield? 

Mr.  SEIBERLING.  I  yield  to  the  dis- 
tinguished gentleman  from  California 

Mr.  HOLIFIELD.  Mr.  Chairman,  is 
the  gentleman  aware  that  this  bill  di- 
vorces the  Commission  on  Regulation 
and  Licensing  from  the  old  Atomic  Ener- 
gy Commission  and  sets  it  up  in  a  com- 
pletely separate  independent  commis- 
sion, such  as  the  Federal  Power  Com- 
mission and  the  Federal  Trade  Commis- 
sion, and  that  they  will  have  charge  of 
those  standards. 

The  standards,  by  the  way.  as  the  gen- 
tleman does  know,  permit  from  1  to  2 
percent  of  the  Federal  allowable  stand- 
ards and  they  have  been  that  way.  There 
has  been  no  problem  in  this  field.  It  is 
working  well.  Let  us  leave  it  where  it  is 
at  the  present  time  because  we  have  title 
I  which  gives  us  the  Energ>-  Research 
and  Development  Administration,  and 
title  II  which  will  give  us  the  Nuclear 
Energy  Commission,  which  is  what  the 
gentleman  has  advocated  for  a  long  time 
and  we  have  finally  arrived  at  his  goal 
In  setting  it  up  in  a  separate  way.  I  do 
not  think  the  gentleman  has  any  worr>-. 

(By  unanimous  consent.  Mr.  Seuex- 
LiNG  was  allowed  to  proceed  for  1  addi- 
tional minute.) 

Mr.  HOSMER.  Mr.  Chairman,  will  the 
gentleman  yield? 

Mr.  SEIBERLING.  I  yield  to  the 
gentleman  from  California. 

Mr  HOSMER  Mr.  Chairman,  we  have 


42616 


CONGRESSIONAL  RECORD  —  HOUSE 


December  19,  1973 


service  stations  In  :he  plan  No.  3  re- 
organization. In  the  plan  No.  3,  1970 
estimate,  there  was  a  division  between 
EPA  and  AEC  giving  EPA  broad  author- 
ity for  setting  standards  for  the  total 
amount  of  radiation  In  the  general 
atmosphere  and  giving  AEC  the  respon- 
sibility for  standards  relative  to  a  nuclear 
control  site.  This  is  a  logical  thing.  This 
Is  what  the  plan  said. 

I  believe  the  gentleman  from  Ohio 
may  be  just  quibbling  over  words. 

I  UKe  the  defeat  of  the  gentleman's 
amencment 

Mr.  S^JBERLING.  Mr.  Chairman,  the 
gentlemaA^says  this  is  quibbling.  If  it 
were  just  quibbling  why  did  the  AEC  run 
to  OMB  to  get  this  interpretation  made? 
I  would  like  to  say  one  further  word. 
I  commend  the  committee  and  the  chair- 
man of  the  committee  for  separating  the 
licensing  fimctions  of  the  AEC  from  the 
R.  ii  D.  functions.  I  think  that  was  need- 
ed. But  I  also  believe  that  the  licensing 
agency  should  be  separate  from  the  en- 
vironmental standard  setting  agency. 

Mr.  HECHLER  of  West  Virginia.  Mr. 
Chairman.  I  fail  to  understand  why  the 
committee  has  recommended  that  re- 
search and  development  on  emission 
control  technology  for  stationar>'  sources 
and  on  alternate  automotive  power  sys- 
tems should  be  transferred  from  EPA  to 
the  new  ERDA  agency.  I  feel  that  this 
research  should  be  kept  under  the  En- 
vironmental Protection  Agency  to  insure 
that  EPA  can  effectively  implement  the 
clean  air  standards  and  can  require  the 
use  of  particular  types  of  emission  con- 
trol technology  based  on  sound  research 
data.  ' 

In  the  past,  EPA's  attempts  to  force 
compliance  of,  the  big  automakers  with 
auto  emission  standards  have  been  ham- 
stnmg  by  the  fact  that  the  automakers 
have  controlled  much  of  the  technical 
expertise 'concerning  such  devices.  This 
transfer  of  R.  k  D.  work  to  ERDA  will 
fragment  the  clean  air  effort.  Moreover. 
ERDA  Is  designed  with  an  energy  de- 
velopment and  production  orientation. 
The  development  of  emission  control 
technology  more  properly  belongs  with  an 
agency  whose  mission  is  pollution  con- 
trol. Retaining  a  significant  technology 
assessment  capability  is  simply  not 
enough.  The  authority  of  EPA  has  been 
eroded  considerably  by  recent  emergency 
energy  legislation,  and  the  administra- 
tion threatens  to  use  the  energy  crisis  to 
fragment  It  further.  The  Confess 
should  not  rush  In  peU-mell  against  the 
public  Interest  and  fragment  authority 
even  further  by  unnecessary  transfer  of 
valuable  R  ti  D.  capabilities  to  ERDA. 

The  CHAIRMAN   The  question  Is  on 
the  amendment  offered  by  the  gentleman 
from  Ohio  iMr  SciBERLiNct. 
The  amendment  was  rejected. 

AMXNDMZNT    OVTXKKO    BT    MB      SETBZXLINO 

Mr.  8EIBERLING.  Mr  Chairman,  I 
offer  an  amendment. 

The  Clerk  read  as  follows: 

Amendment  offered  by  Mr  SrrBKSi.tNo: 
P«ge  42.  line  3.  Immediately  after  ■•m*ttera," 
Inaert  "No  more  than  one-third  of  th«  total 
membership  of  each  advisory  board  shall  be 


composed  of  representatives  of  any  Indus- 
tries which  engage  Ln  the  production  or  de- 
velopment of,  or  research  In,  energy  sources 
which  are  subject  to  the  provisions  of  thl« 
Act.  For  the  purposes  of  this  section,  any 
person  who  has  been  retained  as  a  consul- 
tant or  employed  by  any  such  Industry  dur- 
ing the  two-year  period  preceding  his  ap- 
pointment to  such  a  board,  shall  be  deemed 
to  be  a  representative  of  such  Industry." 

Mr.  SEIBERLING.  Mr.  Chairman,  this 
Is  a  very  simple  amendment.  Again  it  is 
an  effort  to  give  a  thrust  to  this  admin- 
istration so  that  it  is  not  captive  of  cmy 
particular  industry  or  any  particular  seg- 
ment of  our  economy.  It  simply  provides 
that  advisory  committees  shall  be  com- 
posed so  that  not  more  than  one-third  of 
the  total  membership  will  consist  of  rep- 
resentatives of  the  industries  which  en- 
gage in  the  production  or  development  o/ 
or  research  in  any  energy  sources  sub- 
ject to  the  act. 

In  other  words,  the  general  public  and 
interested  groups  in  the  public  should 
also  be  represented.  That  is  the  sole  pur- 
pose of  this  amendment. 

Mr.  HORTON  Mr.  Chairman.  I  rise  in 
opposition  to  the  amendment.  I  will  not 
take  the  5  minutes. 

I  woula  like  to  point  out  this  would  tie 
the  hands  of  the  Administrator.  There 
may  be  instances  in  which  they  want 
the  advlsor>-  board  to  consist  of  say  just 
coal  producers.  This  is  unnecessary.  It 
would  be  tying  the  hands  of  the  Admin- 
istrator. 

Mr.  OBEY.  Mr.  Chairman.  I  rise  li 
support  of  the  amendment  of  the  gentle- 
man from  Ohio. 

Mr.  SEIBERLING.  Mr.  Chairman.  Vlll 
the  gentleman  yield? 

Mr.  OBEY.  I  yield  to  the  gentleman 
from  Ohio. 

Mr  SEIBERLINa.  Mr.  Chairman,  that 
is  just  the  point,  responding  to  the 
gentleman  from  New  York,  that  we  do 
not  want  advisory  committees  advising 
this  organization  that  are  just  composed 
of  coal  producers.  That  is  one  of  the 
troubles  with  the  whole  advisory  set  up. 
If  the  public  Is  not  to  think  this  Is 
just  a  big  grab  bag  for  the  private 
Interests,  we  should  have  the  public  rep- 
resented. This  Is  the  very  purpose  of  the 
amendment.  I  am  astcHiished  that  the 
gentleman  from  New  York  opposes  It. 

Mr  OBEY.  Mr.  Chairman,  if  I  can  use 
the  remainae'-  of  my  time.  I  would  like 
to  recall  what  Will  Rogers  said  during 
the  great  depression.  He  looked  around 
the  country  and  looked  at  the  kids  and 
was  disturbed  because  he  said  the  kids 
did  not  leave  the  politicians  to  get  the 
country  out  of  the  mess  they  were  in.  He 
disagreed  with  that.  He  said: 

If  Ignorance  could  get  us  into  the  mess 
we  are  In.  it  could  get  us  out. 

I  think  Will  Rogers'  response  Is  being 
applied  today  by  those  people  who  want 
to  put  the  industrial  producers  of  the 
sources  of  energy  In  charge  of  trying  to 
get  this  country  out  of  our  energy  crisis 

I  do  not  know  how  many  Members 
have  followed  what  has  be^i  happening 
with  the  advisory  committees  of  this  city 
for  the  last  2  years,  but  I  have.  They  are 
fast  becoming  another  branch  of  Gov- 
ernment, an  invisible  branch  of  Govern- 


ment. We  are  In  danger  of  having  a  mul- 
tiplicity of  advisory  committees  spring- 
ing up  all  over  the  place.  Most  of  the 
advice  which  Is  being  given  on  the  ad- 
visory committees — at  least  a  good  deal 
of  it — is  being  given  in  secret,  behind 
closed  doors.  I  ran  a  survey  in  Septem- 
ber and  checked  in  the  Federal  Regis- 
ter. Every  advisory  committee  meeting 
which  was  announced  there  for  that 
week,  47  pjercent  of  those  committee 
meetings  were  held  behind  closed  doors. 
In  toto  or  in  part,  in  spite  of  the  Free- 
dom of  Information  Act  and  In  spite  of 
the  Advisory  Committee  Act. 

I  think  that  fact  makes  It  all  the  more 
Important  that  we  pass  an  amendment 
along  the  lines  of  the  amendment  offered 
by  the  gentleman  from  Ohio.  People 
have  a  right  to  know  what  kind  of  policy 
Is  being  recommended  to  the  Govern- 
ment. I  do  not  know  where  the  arrogance 
comes  from  which  assumes  that  the  only 
people  In  this  country  who  know  any- 
thing about  energy  are  the  people  who 
produce  the  energy,  produce  the  prod- 
ucts in  this  country.  That  is  just  not  the 
fact.  There  are  plenty  of  engineers,  sci- 
entists, academics,  all  around  the  coun- 
try who  know  just  as  much  about  energy 
as  the  people  who  serve  on  corporate 
boards  or  in  Government  oflQces. 

Mr.  Chairman,  I  would  submit  that  we 
ought  to  have  their  tidvic*  in  Govern- 
ment in  full  measure,  the  same  as  we 
have  the  advice  of  people  who  stand  a 
chance  to  make  a  buck  by  whatever  rec- 
ommendation they  made  to  the  Govem- 
mait. 

Mr.  Chairman.  I  would  urge  the  Mem- 
bers to  support  the  amendment.  It  is  a 
very  reasonable  amendment,  and  I  would 
predict  that  if  we  do  not  do  something 
to  limit  the  access  of  the  producers  and 
Industrial  people  to  advisory  boards,  that 
we  are  going  to  have  the  day  come  when 
people  are  going  to  say.  "Toss  them  all 
out  because  they  are  nothing  but  vested 
interests." 

Mr  Chairman.  I  think  they  have  a  role 
to  play,  but  we  are  running  the  danger 
that  they  are  going  to  run  out  of  credi- 
bility in  this  country  unless  we  do  some- 
thing about  It 

Mr  HOLIFTELD  Mr.  Chairman.  I  re- 
gret that  I  have  to  oppose  this  amend- 
ment, but  cwi  page  41.  at  line  21.  it  says; 

igi  The  Administrator  Is  authorized  to 
establish  advisory  boards.  In  accordance  with 
the  provisions  of  the  Federal  Advisory  Oom- 
mlttee  Act  (Public  Law  92-463).  to  advise 
with  and  make  recommendations  to  the  Ad- 
ministrator on  legislation,  policies,  admin- 
istration, research,  and  other  matters. 

That  act  was  enacted  by  the  Congress 
last  year  to  provide  specific  guidelines, 
not  only  as  to  the  operation  of  advisory 
committees,  but  also  as  to  the  procedure 
governing  the  conduct  of  committee  ac- 
tivities. For  example.  It  re<jul.'-es  news- 
paper publicizing  aiid  requires  that  the 
public  have  dlrei-l  access  to  committee 
meetings.  The  restrict! on.s  are  ciwefully 
spelled  out  In  that  act.  and  If  I  may  say 
so.  In  broader  and  more  practical  re- 
quirements than  tliis  amendment  would 
seek  to  Impose 

Therefore.  I  oppose  the  amendment. 

Mr.  OBEY.  Mr.  Chairman.  vriU  the 
gentleman  yield? 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42617 


Mr.  HOLLFIELD.  Mr.  Chairman,  I 
yield  to  the  gentleman  from  Wisconsin. 

Mr.  OBEY.  Mr.  Chairman.  I  wonder 
If  the  genUeman  is  aware  that  some  of 
the  advisory  comrmttee  devices  used  to 
get  around  the  Advisory  Committee  Act 
are  those  such  a.s  announcing  in  the  Fed- 
eral Register  meetings  which  are  held 
and  open  the  day  after  the  announce- 
ment that  they  are  being  held  appeau^; 
they  are  being  held  in  the  Executive  Of- 
fice Building  downtown,  where  no  mem- 
ber of  the  public  can  even  get  in. 

Mr.  SEIBERLING  Mr.  Chairman,  will 
the  gentleman  yield.' 

Mr.  HOLIFIELD.  I  yield  to  the  gentle- 
man from  Ohio. 

Mr.  SEIBERLING.  Mr.  Chairman,  onlv 
last  week  we  adopted  a  bill,  the  Federal 
Energy  Administration  Act,  which  made 
very,  very  widespread  changes  In  the  ad- 
visory committee  law  with  respect  to  the 
antitrust  restrictions  of  the  law.  So  that, 
when  the  energy  interests  want  to  change 
the  law  on  advisory  committees,  they 
get  their  way.  but  when  we  try  to  change 
it  so  that  the  public  interest  is  repre- 
sented, we  are  met  with  the  argument 
that  we  cannot  change  the  law. 

Mr.  Chairman.  I  do  not  think  it  Is  true, 
and  I  think  it  is  about  time  we  start 
making  the.se  changes. 

Mr.  HOLIFIELD.  Mr,  Chairman,  I  ask 
the  amendment  be  voted  down 

The  CHAIRMAN  The  questlc«i  is  on 
the  amendment  offered  by  the  gentle- 
man from   Ohio    'Mr.   Seiberling). 

The  question  was  taken;  and  on  a  dl- 
vLsion  (demanded  by  Mr.  Seiberling) 
there  were — ayes  19:  noes  50. 

So  the  amendment  was  rejected    | 

The  CHAIRMAN.  Are  there  any  fur- 
ther amendments  to  title  I?  If  not.  the 
clerk  wiU  read 

The  clerk  read  as  follows: 

TITLE  n— NUCLEAR  ENERGY 
COMMISSION 

CHANGE    IN    NAMK 

Sec.  201.  The  Atomic  Energy  Commission 
la  hereby  renamed  the  Nuclear  Energy  Com- 
mission and  shall  continue  to  perform  the 
licensing  and  related  regulatory  functions  of 
the  Chairman  and  members  of  the  CommLs- 
slon.  the  general  counsel,  and  other  officers 
and  components  of  the  Comml.sslon,  which 
functions,  officers,  componenta,  and  person- 
nel are  excepted  from  the  transfer  to  the 
Administrator  by  section  104(a)  of  this  Act. 

UCENSING  AND  RXl^TtD  REGtTLATOBT  ITTNCTIONS 
KX8FCCTING     SELTCTKD      ADMINISTRATION      TA- 

ciunxs 

S*c.  202.  Notwithstanding  the  exclusions 
provided  for  in  section  11  Da.  or  any  other 
provisions  of  the  Atomic  Energy  Act  of  1954 
as  amended  (42  U.8,C.  2140(a) ) ,  the  Nuclear 
Energy  Commission  shall  except  as  other- 
wise specifically  provided  by  section  llOb.  of 
the  Atomic  Energy  Act  of  1954,  as  amended 
(42  use,  2140(b)  ) ,  or  other  law,  have  licens- 
ing and  re:ated  regular.,  r.'  authority  pur- 
suant to  chapters  6  7  8  and  10  of  the  Atomic 
Energy  Act  of  1954  as  amended  as  to  the 
following    facintle.s    or    the    Administration 

(\^  demonstration  liquid  metal  fast 
breeder  reactors  when  operated  as  part  of 
the  power  generation  faculties  of  an  electric 
utility  system; 

(2)  other  demonstration  nuclear  reactors 
when  operated  as  part  of  the  power  trenera- 
tlon  facilities  of  an  electric  utility  system. 
except  those  In  exLstence,  under  construction 
or  authorized  or  appropriated  for  by  the 
Congress  on  the  date  this  part  becomes  effec- 
tive;  or 


(3)  faculties  used  prlmarUy  for  the  receipt 
and  storage  of  high-level  radioactive  wastes 
resulting  from  activities  licensed  under  such 
Act.  except  those  in  existence,  under  con- 
struction, or  authorized  or  appropriated  for 
by  the  Congress,  on  the  date  this  Act  becomes 
effective. 

RESEASCH 

Sec.  203.  (a)  The  Nuclear  Energy  Commis- 
sion may  engage  In  or  contract  for  research 
which  the  Commission  deems  necessary  for 
the  discharge  of  Its  licensing  and  related 
regulatory  functions, 

(b)  In  order  to  achieve  the  objectives  and 
carry  out  the  purposes  of  subsection  (a),  the 
Energy  Research  and  Development  Admin- 
istration and  every  other  Federal  agency 
shall — 

( 1 )  cooperate  with  respect  to  the  establish- 
ment of  priorities  for  the  furnishing  of  such 
research  services  requested  by  the  Nuclear 
Energy  Commission  as  the  Commission  deems 
necessary  for  the  conduct  of  Its  functions; 
and 

(2)  furnish  to  the  Nuclear  Energy  Com- 
mission, when  requested,  on  a  reimbiu^able 
basis,  through  its  own  facilities  or  by  con- 
tract or  other  arrangement,  such  research 
services  as  the  Commission  deems  necessary 
for  the  conduct  of  Its  functions. 

Mr.  HOLIFIELD  (during  the  reading) . 
Mr.  Chairman,  I  ask  unanimous  consent 
that  title  n  of  the  bill  be  considered  as 
read,  printed  in  the  Record,  and  open  to 
amendment  at  any  point. 

The  CHAIRMAN.  Is  there  objection 
to  the  request  of  the  gentleman  from 
California? 

There  was  no  objection. 

The  CHAIRMAN.  Are  there  any 
amendments  to  title  n  of  the  bill?  If  not. 
the  Clerk  will  read  title  m  of  the  bill. 

The  Clerk  read  as  follows : 

TITLE  in— MISCELLANEOUS  AND  TRANSI- 
TIONAL PROVISIONS 

TRANSITIONAL    PROVISIONS 

Sec.  301.  (a)  Except  as  otherwise  provided 
In  this  Act.  whenever  all  of  the  functions  or 
programs  of  an  agency,  or  other  body,  or  any 
component  thereof,  affected  by  this  Act.  have 
been  transferred  from  that  agency,  or  other 
body,  or  any  component  thereof  by  title  I  of 
this  Act.  the  agency  or  other  body,  or  com- 
ponent thereof  shall  lapse  If  an  agency,  or 
other  body,  or  any  component  thereof,  lapses 
pursuant  to  the  preceding  sentence,  each  po- 
sition and  office  therein  which  was  expressly 
authorized  by  law,  or  the  Incumbent  of  which 
was  authorized  to  receive  compensation  at 
the  rate  prescribed  for  an  office  or  position 
at  level  II  III  rv.  or  V  of  the  Executive 
Schedule  i5  UjSC    5313-6316).  shall  lapse. 

(b)  All  orders.  determlnatlotiB,  rulee,  regu- 
lations, permits,  contracts,  certificates,  li- 
censes, and  privileges— 

(1)  which  have  been  issued,  made,  grajited, 
or  aUowed  to  become  effectu-e  by  the  Presi- 
dent, any  Federal  department  or  agency  or 
offlflal  thereof,  or  by  a  court  of  competent 
Jurisdiction,  in  the  performance  of  functions 
which   are   transferred    under  this   Act,  amd 

(2)  which  are  in  effect  at  the  time  this 
Act  takes  effect. 

shall  continue  in  effect  acoordlnp  to  their 
terms  until  modified,  terminated,  superseded. 
set  aside,  or  revoked  by  the  President  the 
Administrator  or  other  authorized  officials 
a  court  of  competent  Jurisdiction,  or  by  oper- 
ation of  law. 

fc)  The  provisions  of  thLs  Act  shall  not 
affect  any  proceeding  pending  at  the  time 
this  section  takes  effect,  before  any  depart- 
ment or  agency  (or  component  thereof  i 
functions  of  which  are  transferred  by  this 
Act.  but  such  proceedings  to  the  extent  that 
they  relate  to  functions  so  transferred,  shail 
be  continued   Orders  shall  be  Issued  in  such 


proceedings,  appeals  shaU  be  taken  there- 
from, and  payments  shall  be  made  pursuant 
to  such  orders,  as  If  this  Act  had  not  been 
enacted;  and  orders  Issued  in  any  such  pro- 
ceedings shall  continue  In  effect  untU  modl- 
fled,  terminated,  superseded,  or  revoked  by 
a  diUy  authorized  official,  by  a  court  of  com- 
petent Jurisdiction,  or  by  operation  of  law. 
Nothing  In  this  subsection  shall  be  deemed 
to  prohibit  the  discontinuance  or  modifica- 
tion of  any  such  proceeding  under  the  same 
terms  and  conditions  and  to  the  same  extent 
that  such  proceeding  could  have  been  dis- 
continued If  this  Act  had  not  been  enacted, 
(d)   Except  as  provided  in  subsection  (f)  — 

(1)  the  provisions  of  this  Act  shall  not 
affect  suits  commenced  prior  to  the  date  this 
Act  takes  effect,  and 

(2)  in  all  such  stilt*  proceedings  shall  be 
had.  appeals  taken,  and  Judgments  rendered, 
in  the  same  manner  and  effect  a«  If  this  Act 
had  not  been  enacted, 

le)  No  suit,  action,  or  other  proceeding 
commenced  by  or  against  any  officer  in  his 
official  capacity  as  an  officer  of  any  depart- 
ment or  agency,  functions  of  which  are 
transferred  by  this  Act.  shall  abate  by  reason 
of  the  enactment  of  this  Act,  No  cause  of 
action  by  or  against  any  department  or 
agency,  functions  of  which  are  transferred 
by  this  Act.  or  by  or  against  any  officer 
thereof  in  his  official  capacity  shall  abate  by 
reason  of  the  enactment  of  this  Act,  Causes 
of  actions,  suits,  actions,  or  other  proceed- 
ings may  be  asserted  by  or  against  the  United 
States  or  such  official  as  may  be  appropriate 
and.  in  any  litigation  pending  when  this  sec- 
tion takes  effect,  the  court  may  at  any  time, 
on  Its  own  motion  or  that  of  any  party  enter 
any  order  which  will  give  effect  to  the  pro- 
vUions  of  this  section. 

(f)  If.  before  the  date  on  which  this  Act 
takes  effect,  any  department  or  agency  or 
officer  thereof  in  his  official  capacity,  is  a 
party  to  a  suit,  and  under  this  Act  any  func- 
tion of  such  department,  agency,  or  officer 
Is  transferred  to  the  Administrator,  or  any 
other  official,  then  such  suit  shall  be  con- 
tlned  as  If  this  Act  had  not  been  enacted, 
vrtth  the  Administrator,  or  other  official  as 
t.le  case  may  be.  substituted. 

(g)  Pinal  orders  and  actions  of  any  official 
or  component  in  the  performance  of  func- 
tions transferred  by  this  Act  shaU  be  subject 
to  Judicial  review  to  the  same  extent  and  In 
the  same  manner  as  If  such  orders  or  actions 
Imd  been  made  or  taken  by  the  officer,  de- 
partment, agency,  or  Instrumentalitv  in  the 
performance  of  such  functions  immediately 
preceding  the  effective  date  of  this  Act  Any 
statutory  requirements  relating  to  notices, 
hearings,  action  upon  the  record,  or  adminis- 
trative review  that  applv  to  any  function 
transferred  by  this  Act  shall  apply  to  the 
performance  of  those  functions  by  the  Ad- 
ministrator, or  any  officer  or  component, 

(h)  With  respect  to  any  function  trans- 
ferred by  this  Act  and  performed  after  the 
effective  date  of  this  Act.  reference  In  any 
other  law  to  any  department  or  agency,  or 
any  officer  or  office,  the  functions  of  which 
are  so  transferred,  shall  be  deemed  to  refer 
to  the  Administration,  the  Administrator,  or 
other  office  or  official  in  which  this  Act 
vests  such  functions 

(U  Nothing  contained  In  this  Act  shall  be 
construed  to  limit,  curtail,  abolish,  or  ter- 
minate any  function  of  the  President  which 
he  had  immediately  before  the  effective  date 
of  this  .^ct  or  to  Umit,  curuall,  abolish,  or 
terminate  his  authority  to  perform  such 
function,  or  to  limit  curtail  abolish  or  tw- 
mmate  his  authority  to  delegate  redelegate 
or  terminate  any  delegation  of  functions 

'j'  Any  reference  \r.  this  Act  to  any  pro- 
vision of  law  shall  be  deemed  to  include,  as 
appropriate  reference*  thereto  as  nx>w  or 
hereafter  amended  or  supplemented 

'  k  I  Except  as  may  be  otherwise  expressly 
provided  In  this  Act  all  functions  expreasly 
conferred  by  tills  Act  shall  b*  m  addition  to 
and  not  in  substitution  for  functions  exist- 


42618 


CONGRESSIONAL  RECORD  —  HOUSE 


Ing  ImmedJately  before  the  effective  date  of 
this  Act  and  transferred  by  this  Act. 

INCITENTAI.     DISPOSITIONS 

S«c.  302.  The  Director  of  the  Office  of 
Management  and  Budget  Is  authorized  to 
make  such  additional  Incidental  dispositions 
of  personnel,  personnel  positions,  assets, 
liabilities,  contracts,  property,  records,  and 
unexpended  balances  of  appropriations,  au- 
thorizations, allocations,  and  other  funds 
held.  used,  arising  from,  available  to  or  to 
be  made  available  In  connection  with  func- 
tions transferred  by  this  Act.  as  he  may  deem 
necessary  or  appropriate  to  accomplish  the 
intent  and  purpose  of  this  Act. 
DEnnmoNs 

Sec.  303.  As  used  In  this  Act— 

(1)  any  reference  to  "function"  or  "func- 
tions' shall  be  deemed  to  include  references 
to  duty,  obligation,  power,  authority,  respon- 
slbUity.  right.  prlvUege  and  activity,  or  the 
plural  thereof,  as  the  case  may  be:  and 

(2)  any  reference  to  "perform"  or  "per- 
formance", when  used  in  relation  to  func- 
tions, shall  be  deemed  to  Include  the  ex- 
ercise of  power,  authority,  rights,  and  privi- 
leges. 

ADTHORIZATION     rOB     APWOPSIATIONS 

Sec.  304.  Except  as  otherwise  provided  by 
law.  appropriations  made  under  this  Act 
shall  be  subject  to  annual  authorization. 

COSll»TmOLl.Z»    CENrEAL    Auort 

Sec.  305.  Section  166.  "Comptroller  Gen- 
eral Audit"  of  the  Atomic  Energy  Act  of  1954 
as  amended,  shall  be  deemed  to  be  applicable' 
respectively,  to  the  nuclear  and  nonnuclear 
activities  under  Utle  I  and  to  the  activities 
under  title  n. 

aXPOBTS 

Sec.  306.  (a)  The  Admlntetrator  shall  as 
soon  as  practicable  after  the  end  of  each 
fiscal  year,  make  a  report  to  the  President 
-or  submission  to  the  Congress  on  the  ac- 
tivities of  the  Administration  during  the 
preceding  fiscal  year.  Such  reoort  shall  in- 
clude a  statement  o-  the  short-range  and 
long-range  goals,  priorities,  and  plans  of  the 
Administration  together  with  an  assessment 
of  the  progress  made  toward  the  attainment 
of  those  objectives  and  toward  the  more 
effective  and  efficient  management  of  the  Ad- 
ministration and  the  coordination  of  its 
functions 

(b)  During  the  first  year  of  operation  of 
the  Administration,  the  Administrator  in 
coUaboration  with  the  Secretary  of  Defense 
shall  conduct  a  thorough  review  of  the 
desirability  and  feasibUitv  of  transferring  to 
the  Department  of  Defense  or  other  Federal 
agencies  the  functions  of  the  Administrator 
respecting  mUitar-  application  and  restricted 
data,  and  within  one  year  after  the  Admin- 
istrator first  takes  office  the  Administrator 
shall  make  a  report  to  the  President,  for  sub- 
mission to  the  Congress,  setting  forth  his 
comprehensive  analysis,  the  principal  alter- 
natives, and  the  specific  reccmmendatlons 
or  the  Administrator  and  the  Secretary  of 
Defense. 

DrrOaifATION    TO    COMICITTSKS 

Sec   307.  The  Administrator  shall  keep  the 
approprute   congressional    committees   fully 
and  currently  informed  with  respect  to  all  of 
the  Administration's  activities. 
TUAHSTKR  or  rrrsoa 

Sbc.  308.  The  Administrator,  when  author- 
u«<l  In  an  appropriation  Act.  may  in  any 
ascal  year,  transfer  fund.-  from  one  appropri- 
ation to  another  within  the  Administration 
provided.  That  no  appropriation  shall  be 
either  Increased  or  decreased  pursuant  to 
this  section  by  more  than  5  per  centum  of 
trie  appropriation  for  such  fiscal  year 
coNroBMiNc  AMrsomznn  to  cmtain  otheb 

'..AWS 

Sec  309  Subchapter  U  (relating  to  Execu- 
tive Schedule  pay  .ateei  of  chapter  63  of 
title  5.  United  States  Code  is  amended 
as  follows 


December  19,  1973 


(1)  Section  5313  Is  amended  by  striking 
out  "(8)  Chairman.  Atomic  Energy  Commis- 
sion." and  inserting  in  lieu  thereof  "(8) 
Chairman.  Nuclear  Energy  Commission",  and 
by  adding  at  the  end  thereof  the  foUowlng: 

"(22)  Administrator  of  Energy  Research 
and  Development.". 

(2)  Section  5314  Is  amended  by  striking  out 
"(42)  Members.  Atomic  Energy  Commission  " 
and  inserting  in  lieu  thereof  "(42)  Members. 
Nuclear  Energy  Commission  ".  and  by  adding 
at  the  end  thereof  the  following: 

"60)  Deputy  Administrator.  Energy  Re- 
search and  Development  Administration.". 

(3)  Section  5315  is  amended  by  striking  out 
paragraph  (50),  and  by  adding  at  the  end 
thereof  the  foUowlng: 

"(99)  Assistant  Administrators,  Energy  Re- 
search and  Development  Administration (6)  " 

(4)  Section  5316  Is  amended  by  striking 
out  paragraphs  (29),  (69),  and  (102)  by 
striking  out  "(62)  Director  of  Regulation. 
Atomic  Energy  Commission."  and  Inserting 
In  lieu  thereof  "(62)  Executive  Director  of 
Operations,  Nuclear  Energy  Commission  "  by 
striking  out  "(81)  General  Counsel  of  the 
Atomic  Energy  Commission."  and  Inserting 
in  lieu  thereof  "(81)  General  Counsel  of  the 
Nuclear  Energy  Commission",  and  by  addine 
at  the  end  thereof  the  following : 

"(133)  General  Counsel.  Energy  Research 
and  Development  Administration. 

"(134)  AddlUonal  officers.  Energy  Research 
and  Development  Administration   (7).". 
separabiutt 

Sec  310  If  any  provision  of  this  Act.  or  the 
application  thereof  to  any  person  or  circum- 
stance. Is  held  invalid,  the  remainder  of  this 
Act,  and  the  application  of  such  provision  to 
other  persons  or  circumstances,  shall  not  be 
affected  thereby. 

EfTECrrVE    DATE    AND    INTERIM    APPOINTMENT 

Sec  311.  (a)  The  provisions  of  this  act 
shall  take  effect  one  hundred  and  twenty 
days  after  the  Administrator  first  takes  offic« 
or  on  such  earlier  date  as  the  President  mav 
prescribe  and  publish  in  the  Federal  Reelster 
except  that  any  of  the  officers  provided  for  In 
title  n  of  thU  Act  may  be  nominated  and 
appointed,  as  provided  In  that  title,  at  any 
time  after  the  date  of  enactment  of  this  Act 
Punds  avaUable  to  any  department  or  agency 
(or  any  official  or  component  thereof)  any 
functions  of  which  are  transferred  to  the  Ad- 
ministrator by  this  Act.  may.  with  the  ap- 
proval of  the  President,  be  used  to  pav  the 
compensation  and  expenses  of  any  officer  ap- 
pointed pursuant  to  this  subsection  until 
such  time  as  funds  for  that  purpose  are 
otherwise  avaUable. 

(b)  In  the  event  that  any  officer  required 
by  this  Act  to  be  appointed  by  and  with  the 
advice  and  consent  of  the  Senate  shall  not 
have  entered  upon  office  on  the  effective  date 
of  thU  Act.  the  President  mav  designate  any 
officer,  whose  appointment  was  required  to  be 
made  by  and  with  the  advice  and  consent  of 
the  Senate  and  who  was  such  an  officer  Im- 
mediately prior  to  the  effective  date  of  this 
Act  to  act  in  such  office  until  the  office  Is 
filled  as  provided  In  this  Act  While  so  acting 
such  persons  shall  receive  compen.«atlon  at 
the  rates  provided  by  this  Act  for  the  respec- 
tive offices  m  which  they  act 

Mr  HOLIFIELD  f during  the  reading  K 
Mr.  Chairman.  I  ask  unanimous  consent 
that  title  m  be  considered  as  read. 
printed  In  the  Record,  and  open  to 
amendment  at  any  point. 

The  CHAIRMAN  Is  there  objection  to 
the  request  of  the  gentleman  from  Cal- 
ifornia? 

There  was  no  objection 

AMENDMENT  OmtED  BT   MB     OELLENBACK 

Mr    DELLENBACK.  Ii4r.  Chairman,  I 
offer  an  amendment 
The  Clerk  read  as  follows ; 


Amendment  offered  by  Mr.  Dxixenback: 
Page  56.  Une  8,  insert  a  new  section  308  to 
read  as  follows : 

"Sec.  308.  (a)  The  Council  on  Environ- 
mental Quality  Is  authorized  and  directed  to 
carry  out  a  continuing  analysis  of  the  con- 
duct of  research  and  development  of  energy 
technologies  to  evaluate — 

"(1)  the  adequacy  of  attention  to  the 
probable  environmental  effects  of  the  ap- 
plication of  energy  technology,  and 

"(2)  the  adequacy  of  attention  to  envlron- 
tlnued  as  U  this  Act  had  not  been  enacted 
processes. 

"(b)  The  CJouncll  on  Environmental 
Quality,  la  carrying  out  the  provisions  of 
this  section,  may  employ  consultants  or  con- 
tractors and  may  by  fund  transfer  employ 
the  services  of  other  Federal  agencies  for  the 
conduct  of  studies  and  investigations. 

"(c)  The  Council  on  Environmental  Qual- 
ity shall  hold  annual  public  hearings  on  the 
conduct  of  energy  research  and  development 
and  the  probable  environmental  conse- 
quences of  trends  In  the  appUcatlon  of  en- 
ergy technology,  and  the  transcript  of  the 
hearings  shaU  be  published  and  made  avail- 
able to  the  public. 

"(d)  The  Council  on  Environmental  Qual- 
ity shall  make  such  reports  to  the  President, 
the  Administrator,  and  the  Congress  as  It 
deems  appropriate  concerning  the  conduct  of 
energy  research  and  development,  and  the 
President  as  a  part  of  the  annual  Environ- 
mental Policy  Report  shaU  set  forth  the  find- 
ings of  the  Council  on  Environmental  Qual- 
ity concerning  the  conduct  of  energy  research 
and  development  and  the  probable  environ- 
mental consequences  of  trends  In  the  ap- 
plication of  energy  technology," 
Renumber  the  subsequent  sections. 

Mr.  DELLENBACK  'during  the  read- 
ing). Mr.  Chairman,  I  ask  unanimous 
consent  that  the  amendment  be  consid- 
ered as  read  and  printed  in  the  Record 

The  CHAIRMAN.  Is  there  objection  to 
the  request  of  the  gentleman  from  Ore- 
gon? 

There  was  no  objection. 

POIST  OF  ORDER 

Mr.  HOSMER.  Mr.  Chairman,  I  make  a 
point  of  order  against  the  amendment. 

The  CHAIRMAN.  The  gentleman  will 
state  his  point  of  order. 

Mr.  HOSMER.  Mr.  Chairman,  I  make 
a  point  of  order  against  the  amendment 
on  the  ground  that  it  goes  beyond  the 
authority  of  this  committee  and  goes  to 
the  authority  of  other  committees. 

It  seeks  to  authorize  money,  and  it  goes 
beyond  the  committees  authority. 

I  do  not  have  the  amendment  in  front 
of  me.  but  I  was  listening  to  it  as  the 
gentleman  was  reading  it.  There  are  a 
number  of  things  In  It  relative  to  the 
duties  of  the  Council  on  Environmental 
Quality,  pending  the  authorization  for 
the  funding  of  the  Council  on  Environ- 
mental Quality,  the  hiring  of  consult- 
ants by  the  Council  on  Environmental 
Quality,  as  well  as  others. 

It  ranges  all  over  the  jurisdiction  of 
almost  everj-  Members  committee  In  this 
Congress  besides  the  one  that  Is  handling 
the  blU  here.  and.  therefore,  the  amend- 
ment should  be  stricken  down  as  non- 
germane. 

Mr.  HORTON  Mr  Chairman,  may  I 
be  heard  on  the  point  of  order? 

The  CHAIRMAN  The  gentleman  will 
be  heard  on  the  point  of  order 

Mr.  HORTON.  Mr  Chairman,  before 
the  Committee  on  Rules  a  certain  sec- 
tion of  the  Senate  bill  S.  1283  was  at- 
tempted to  be  offered  as  an  amendment. 
The    Committee    on    Rules    refused    to 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


make  in  order  a  substitute  on  the  Senate 
bill  S.  1283  or  a  similar  bill  with  four 
amendments. 

Therefore.  I  would  assume  that  it  is 
not  proper  to  insert  portions  of  the  Sen- 
ate bill  S.  1283  as  amendments  to  this 
bill. 

The  CHAIRMAN.  Does  the"  gentleman 
from  Oregon  (Mr.  Dellenback)  desire  to 
be  heard  on  the  point  of  order? 

Mr.  DELLENBACK.  I  do.  Mr.  Chair- 
man. I  would  like  to  be  heard. 

As  the  chairman  Is  aware,  the  bill 
which  is  before  us  deals  expressly  with 
the  question  of  the  responsibilities  of  the 
Administrator  engaging  In  and  support- 
ing environmental  and  other  research 
related  to  the  development  of  energy 
sources  and  utilization  technologies. 

I  submit  to  the  Chairman  that  this 
particular  amendment,  while  it  does,  of 
course,  on  its  face  deal  with  the  respon- 
sibilities of  the  Council  on  Environ- 
mental Quality.  Is  deaUng  with  this  criti- 
cally important  field  of  environmental 
research,  and  it  Is  within  the  scope  of 
the  bill. 

This  is  not  submitted  as  an  excerpt 
from  any  other  bill  in  the  other  body  or 
anywhere  else.  It  Is  submitted  to  stand 
on  Its  ovm  feet  as  an  important  respon- 
sibility. 

If  we  are  going  to  open  up  the  field  of 
environmental  research,  as  this  bill  does 
open  it  up,  we  should  be  able  to  deal  with 
It  in  this  way  and  Insure  that  that  which 
is  done  is  analyzed,  researched,  and  re- 
ported back  to  the  Congress. 

The  CHAIRMAN  (Mr.  Rostenkow- 
sKi» .  The  Chair  Ls  prepared  to  rule. 

The  Chair  feels  that  the  language  on 
page  33  of  the  bill  beginning  at  line  16, 
covers  this  point.  It  reads : 

(4)  engaging  m  and  supporting  environ- 
mental, biomedical,  physical,  and  safety  re- 
search related  to  the  development  of  energy 
sources  and  utilization  technologies. 

The  bill  thus  authorizes  the  Adminis- 
trator of  ERDA  to  engage  in  precisely 
the  type  of  environmental  research 
which  the  amendment  would  confer 
upon  the  Council. 

The  Chair  would  like  to  cite  from  the 
House  Manual,  page  445: 

To  a  proposition  to  accomplish  a  certain 
purpose  by  one  method,  an  amendment  to 
achieve  the  same  fundamental  purpose  by 
another  closely  related  method  may  be  ger- 
mane. Thus,  to  a  bill  proposing  to  regulate 
certain  activities  through  the  use  of  a  gov- 
ernmental agency,  an  amendment  proposing 
to  regulate  such  activities  by  another  gov- 
ernmental agency  Is  germane  (Dec.  16.  1937. 
p.  1572^9;  June  9.  1941,  p.  4905). 

The  Chair  overrules  the  point  of  order. 

Mr.  DELLENBACK.  I  thank  the  Chair- 
man. 

Mr.  Chairman,  this  amendment  would 
direct  the  Council  of  Environmental 
Quality  to  carry  on  a  continuing  analy- 
sis of  the  conduct  of  research  and  de- 
velopment of  energ\-  technologies  to  as- 
sure that  there  is  an  adequacy  of  atten- 
tion to  the  environmental  effects  of  the 
processes  and  technologies  developed. 

KR.  11510,  as  reported  out  of  commit- 
tee, lists  among  the  responsiblltles  of  the 
Administrator  the  engaging  in  and  sup- 
porting of  environmental  research  as  it 
relates  to  the  development  of  energy 
technologies.  These  are  responsibilities 
which    the   Administrator   should   bear 


42619 


Amendment  offered  by  Mr.  Bincham  On 
page  56  line  4  strike  the  word  "Committees" 
and   In   Its  place  add   the  words  "the  Con- 


However,   In   these   important  fields   It 
would  be  highly  desirable  to  have  the  ex- 
pert Input  which  the  CEQ  can  provide.     —  "*  ""*  v"'^  t^aa  me  woros   -the  con- 
In  our  rush  to  overcome  the  energy  ,^^^  '  ^^  ^^^  ^  redesignate  section  307  as 
shortages  which  are  now  occurring  we  T^"i?'^  ^°'''*'  ^'^^  *^  "°^  ^  '^^  ^^*  fouow- 
raust  not  put  aside  environmental  con-     ^^  '^^^  Paragraph 
slderations.  This  summer  the  Alaskan 
pipeline  bill  was  passed  with  a  provision 
which  overrode  the  National  Environ- 
mental Policy  Act.  Many  of  us  feared 
then  that  it  was  just  the  start  of  a  trend 
which  might  lead  to  an  eventual  nulllQ- 
cation  of  all  the  work  that  has  been  done 
In  the  past  to  protect  the  environment. 
We  must  not  let  that  happen  . 

The  shortage  of  fuel  should  bring  home 
to  us  even  more  the  importance  of  pro- 
tecting our  natural  resources  from  unre- 
stricted use.  Not  only  are  our  oil,  gas 
and  coal  reserves  limited  but  so  too  are 
our  clean  air  and  clean  water  reserves. 
We  must  be  sure  to  take  into  considera- 
tion the  environmental  effects  of  energy 
technologies  and  processes  which  we  de- 
velop. 

This  amendment  would  provide  the 
Administrator  of  Energy  Research  and 
Development  Administration  with  this 
kind  of  useful  information  by  directing 
the  CEQ  to  study  the  environmental 
ramifications  of  new  energy-  technologies 
and  to  report  them  to  the  Administrator 
as  well  as  to  the  President  and  the  Con- 
gress. A  proposal  like  this  is  included  in 
the  energy  research  and  development 
bill  recently  passed  by  the  Senate  and  is 
also  found  in  H.R.  11857,  which  I  cospon- 
sored,  and  which  would  establish  a  Fed- 
eral nonnuclear  research  and  develop- 
ment program. 

Part  of  the  reason  we  are  experiencing 
such  fuel  shortages  today  is  because  of 
the  fragmented  and  uncoordinated  plan- 
ning that  has  been  done  previously.  As 
we  make  a  step  toward  putting  order 
back  into  this  chaos  by  establishing 
ERDA  we  must  not  neglect  environ- 
mental concerns  and  thereby  create 
chaos  in  another  field.  A  study  such  is 
authorized  by  mj'  amendment  would  as- 
sure that  we  take  these  environmental 
concerns  Into  consideration. 

Mr.  HOLIFIELD.  Mr.  Chairman,  I 
move  to  strike  the  last  word. 
I  rise  in  opposition  to  the  amendment. 
This  amendment  in  substance  has  been 
lifted  from  Senate  bill  1283.  a  bill  on  pol- 
icies and  priorities  which  passed  the  Sen- 
ate on  December  7,  1973. 

H.R.  11510  is  a  reorganization  bill;  It 
is  not  a  policy  and  priority  bill. 

The  proper  forum  for  amendments  of 
this  nature  is  before  the  Committee  on 
Interior  and  Insular  Affairs. 

I  have  no  doubt  the  objective  of  this 
amendment  Is  worthy,  because  we  all 
favor  environmental  studies,  but  It  re- 
fers to  the  Council  on  Environmental 
Quality  and  purports  to  authorize  duties 
which  they  have  now  under  a  very  broad 
statute. 

Therefore.  Mr.  Chairman.  I  urge  that 
the  amendment  be  voted  dowTi. 

The  CHAIRMAN.  The  question  is  on 
the  amendment  offered  by  the  gentle- 
man from  Oregon  «Mr.  Dellenback>. 
The  amendment  was  rejected. 

AMENDMENT     OFTERED     BT     MR      BINGHAM 

Mr.  BINGHAM.  Mr.  Chairman.  I  offer 
an  amendment. 

The  Clerk  read  as  follows: 


"(b)  On  or  before  the  date  the  Admin- 
istrator transmits  his  estimates  or  requests 
for  appropriations  to  the  President  or  Office 
of  Management  and  Budget.  Including  any 
requests  for  Increases  therein,  he  shaU  trans- 
mit copies  of  the  same  directly  to  the  Sen- 
ate and  House  of  Representatives.  Such  esti- 
mates and  requests  shall  refiect  the  sole 
Judgment  of  the  Administrator  and  shall  not 
be  modified  In  any  manner  at  the  direction 
or  request  of  any  other  agency  of  the  Gov- 
ernment." 

Mr.  BLNGHAM.  Mr.  Chairman,  this 
amendment  would  very  simply  require 
that  the  agency  at  the  time  it  submits  its 
requests  to  the  Office  of  Management 
and  Budget  also  send  them  along  to  the 
Congress. 

I  think  in  a  matter  of  this  importance 
where  we  are  deeply  concerned  that  suf- 
ficient effort  and  sufficient  energy  and 
sufficient  funds  be  expended  in  trj'lng  to 
solve  the  energy  crisis  in  tills  country 
and  in  trying  to  develop  new  sources  of 
energy  the  Congress  wants  to  be  sure 
that  the  agency  is  fully  funded. 

We  do  not  want  to  be  short-circuited 
by  the  bureaucrats  in  the  OMB.  We  know 
they  have  a  job  to  do.  and  they  are  al- 
ways Interested  In  cutting,  and  that  Is 
their  job.  and  maybe  their  cuts  will  be 
all  right.  But  let  the  Congress  make  that 
determination  after  they  have  found  out 
what  It  was  that  the  new  agency  was  ask- 
ing for  in  the  first  place. 

I  realize  that  this  is  a  rather  novel 
concept.  It  may  be  said  that  this  is  some- 
thing that  should  apply  to  other  agencies. 
I  would  not  quarrel  with  that.  But  I  think 
that  It  is  important  In  an  undertaking  of 
this  kind  that  the  committees  of  the 
Congress  that  are  concerned  with  the 
problem  should  be  advised  what  the  re- 
quests made  by  the  agency  were  at  the 
time  that  those  requests  were  submitted 
to  the  OMB 

Mr.  HOSMER.  Mr.  Chairman,  wUl  the 
gentleman  yield? 

Mr.  BINGHAM.  I  yield  to  the  genUe- 
man  from  California. 

Mr.  HOSMER.  Mr.  Chairman,  does  the 
gentleman  from  New  York  feel  that  the 
various  authorizing  and  appropriating 
committees  of  this  Congress  are  so  inade- 
quate and  so  incompetent  and  so  lacking 
in  resources  and  capabilities  that  they 
are  incapable  of  doing  the  job  that  the 
Constitution  imposes  upon  them  in  con- 
nection with  the  research  and  develop- 
ment of  the  energj-  resources  of  this 
countrj'?  I  can  only  conclude  from  the 
amendment  offered  by  the  genUeman 
from  New  York  that  that  is  exactly  what 
the  gentleman  believes. 

Mr  BINGHAM.  No.  not  at  aU.  AU  I 
am  saying  is  that  the  committees  of  this 
Congress  should  have  before  them  all 
the  facts,  and  the  facL^  would  include 
what  the  requests  were  from  tlie  agency 
as  submitted  to  the  OMB  The  Men.bere 
all  know  very  well  that  theToMB  in  the 
past  has  had  \-arlous  ways  qT  putting  the 
lid  on  the  agencies  so  that  they  are  not 
allowed  to  t^U  what  the  facts  are  vsith 
regard  to  the  requests  Uiat  the>-  make. 
So  what  I  am  suggesting  15  that,  not 
that  we  are  interfering  with  the  func- 


12820 


CONGRESSION A !    !^  i  f  or n       noi  v [ 


tioos  and  the  recommendations  that  the 
OMB  wUl  make  to  the  Congress,  the 
Congress  will  take  those  Into  account, 
but  let  us  at  least  know  here  in  the  Con- 
gress what  it  was  that  the  agency  request 
of  the  OMB  was  In  the  flrst  place 

Mr.  HORTON.  Mr,  Chairman,  I  rise 
in  opposition  to  the  amendment. 

Mr.  Chairman,  this  Is  contrary  to  the 
Budget  and  Accounting  Act.  And  as  the 
gentleman  from  New  York  has  indicated, 
this  Is  a  novel  approach.  I  do  not  think 
we  ought  to  start  breaking  new  ground 
in  this  area  at  this  time.  Therefore.  I 
urge  that  we  defeat  the  amendment. 

The  CHAIRM.VN  The  question  is  on 
the  amendment  offered  by  the  gentleman 
from  New  York  iMr  Bingham  > 

The  amendment  was  rejected. 

AMEMDM&NT    orTKRXD    BT     MX      HOUTIXU) 


Mr.  HOLIFIELD.  Mr.  Chairman.  I  of- 
fer a  technical  amendment. 
^  The  Clerk  read  as  foUows: 

Amendment  offered  by  Mr.  Hounzu):  On 
p«^  57.  Une  12.  change  "title  II"  to  "Utle  I". 

Mr.  HOLIFIELD.  Mr.  Chairman.  I  am 
asking  consent  to  correct  a  technical  er- 
ror on  page  57.  line  12,  by  changing  "title 
n"  to  "title  L"  This  is  purely  a  technical 
change,  to  correct  an  error  in  printing. 
And  does  not  aflect  the  substance  of  the 
bill. 

The  CHAIRMAN.  The  quesUon  Is  on 
the  amendment  offered  by  the  gentle- 
man from  California  ( Mr.  Houfuld  > . 

The  amendment  was  agreed  to 

The  CHAIRMAN.  Are  there  further 
amendments  to  title  m?  If  not.  the  Clerk 
will  read. 

The  Clerk  read  as  follows: 

TITLE  IV-^EX  DISCRIMINATION 

Sec  401.  No  person  shall  on  the  ground 
of  sex  be  excluded  from  participation  In  be 
denied  a  Ucense  under,  be  denied  the  bene- 
nts  of.  or  be  subjected  to  discrimination 
under  any  program  or  activity  carried  on  or 
receiving  Federal  assistance  under  any  title 
of  this  Act.  This  provision  wUl  be  enforced 
through  agency  provisions  and  rules  similar 
to  those  already  established,  with  respect  to 
racial  and  other  dlacrlmlnatlon.  under  title 
VI  or  the  Civil  Rights  Act  of  1904.  However, 
this  remedy  is  not  exclusive  and  wui  not 
prejudice  or  cut  off  any  other  legal  remedies 
available  to  a  dlscrlminatee. 

Mr.  HOLIFIELD  'during  the  reading) . 
Mr.  Chairman,  I  ask  unanimous  cMisent 
that  title  IV  be  considered  as  read, 
printed  in  the  Record,  and  open  to 
amendment  at  any  point. 

The  CHAIRMAN  Is  there  objection  to 
the  request  of  the  genUeman  from  Cali- 
fornia' 

There  was  no  objection. 

The  CHAIRM.AN.  Are  there  any 
amendments  to  title  rv?  If  not.  the  ques- 
tion is  on  the  committee  amendment  In 
the  nature  of  a  substitute,  as  amended. 

The  committee  amendment  In  the  na- 
ture of  a  substitute,  as  amended,  was 
agreed  to. 

The  CHAIRMAN.  Under  the  rule  the 
Committee  rises 

Accordingly  the  Committee  rose:  and 
the  Speaker  having  resumed  the  chair, 
Mr.  RosTEifKowsKi.  Chairman  of  the 
Committee  of  the  Whole  House  on  the 
State  of -the  Union,  reported  that  that 
Committee  having  had  under  considera- 
tion the  bin  (HR.  11510)   to  reorganize 


and  consolidate  certain  functions  of  the 
Federal  Government  in  a  new  Energy 
Research  and  Development  Administra- 
tion and  in  a  Nuclear  Energy  Commis- 
sion in  order  to  promote  more  efficient 
management  of  such  functions,  pursuant 
to  House  Resolution  745,  he  reported  the 
bill  back  to  the  House  with  an  amend- 
ment adopted  by  the  Committee  of  the 
Whole. 

The  SPEAKER.  Under  the  rule,  the 
previous  question  Is  ordered. 

Is  a  separate  vote  demanded  on  any 
amendment  to  the  committee  amend- 
ment in  the  nature  of  a  substitute 
adopted  In  the  Committee  of  the  Whole? 
n  not,  the  question  is  on  the  amend- 
ment. 

The  amendment  was  agreed  to. 
.The  SPEAKER.  The  question  is  on  the 
Engrossment  and  third  reading  of  the  bill. 

The  bill  was  ordered  to  be  engrossed 
and  read  a  third  time,  and  was  read  the 
third  time. 

The  SPEAKER  The  question  Is  on  the 
passage  of  the  bill. 

The  question  was  taken;  and  the 
Speaker  announced  that  the  ayes  ap- 
■penred  to  have  it. 

axcoaoKD  vers 

Mr.  HORTON.  Mr.  Speaker.  I  demand 
a  recorded  vote. 

A  recorded  vote  was  ordered. 

The  vote  was  taken  by  electronic  de- 
vice, and  there  were — ayes  355,  noes  25, 
not  voting  52.  as  follows: 


December  19,  197S 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


Abdnor 

.\bzug 

Adams 

Addabbo 

Andrews,  N.C. 

Annunzlo 

Archer 

Arends 

Armstrong 

Ash  brook 

Ashley 

BadlUo 

Bafalls 

Baker 

Barrett 

Bauman 

Beard 

Bell 

Bennett 

Bergland 

Bevtll 

Blaggl 

Blester 

Bingham 

Blackburn 

Blatnik 

Boggs 

Boland 

Bo  wen 

Brademas 

Brasco 

Bray 

Breauz 

Breckinridge 

Brinkley 

Broomfleld 
Brt.tzman 
Brown.  Calif. 
■Bruwn.  Mich. 
Brown.  Ohio 
BroyhlU.  N  C. 
BroyhlU.  Va. 
Buchanan 
Burgener 
Burke.  Pla. 
Burke.  Majs. 
Burleson.  Tex. 
BiWllaon.  Mo. 
Butler 
Byron 
Camp 
Carey.  NT. 
Carney.  Ohio 
Carter 


[Roll  No.  7071 
AYES — 366 


Dan 

Rjbert 


Casey.  Tex. 

Cederberg 

Chamberlain 

CtaappeU 

Chlsholm 

Clark 

Clausen. 
Don  H. 

Clawson.  Del 

Clay 

CleTeland 

Cochran 

Collier 

CoUlns.  ni. 

Collins.  Tex 

Conable 

Conlan 

Conte 

Corman 

Cotter 

Cougblln 

Crane 

Cronln 

Culver 

Daniel 

Daniel 

W..  Jr 
Daniels. 
Domtnlck  V. 

Danlelson 

Davis.  Oa. 

Davis.  S  C 

DsTls.  Wis. 

de  la  Oarsa 

Dellenback 

Dennis 

Derwtnskl 

Devine 

Dickinson 

Dlggs 

Donohue 

Dom 

Downing 

Drlnan 

Dulski 

Duncan 

du  Pont 

Edwards.  Ala 

Edwards.  Calif 

Eilberi? 

Erienbom 

Esch 

Eshlemsn 

Evans.  Colo. 


Pascell 

Plndley 

Pish 

Pisher 

PlooJ 

Pord, 

William  D 
Porsythe 
Fountain 
Praser 
Prenzel 
Frey 

Ppoehllch 
Puqua 
Odvclos 

Oettys 
Oiaimo 
Otbbons 
Gi:man 
Olim 

Ooldwater 
Oonxalaa 
Ooodllng 
Qrasso 
Gray 

Oreen.  Oreg. 
Green.  Pa 
O  rover 
Oude 
Ouyer 
Haley 
Hamilton 
Hammer- 
■chmidt 
Hanloy 
Hanmhan 
Hansen.  Idaho 
Uarrtncrton 
Har&hii 
Hastings 
Hawkins 
Kays 
Heckler. : 
Heinz 
Helstoskl 
Henderson 
Hicks 
KlUla 
Hlnshaw 
H-gan 
Hollfleld 
Holt 

Uoltzmao 
Rorton 


Hoamer 

Howard 

Huber 

Hudnut 

Hungate 

Hunt 

Hutchinson 

Ichord 

Johnson.  Calif 

Johnson,  Colo. 

Johnson.  Pa 

Jones,  N  C 

Jones.  Okla. 

Jones.  Tenn. 

Jordan 

Karth 

Kaatenmeler 

Kazen 

Kemp 

Ketch  um 

King 

Kluczynskl 

Koch 

KuykendaU 

Kyroa 

Landgrebe 

Latu 

I*tfgett 

Lent 

Litton 

Long.  La. 

Long.  Md. 

Lott 

Lujan 

McClory 

McCIoakey 

McCollister 

McDade 

UcXwen 

McPaU 

McKay 

McKloney 

McSpadden 

Macdonald 

Madden 

MadUan 

Mahon 

MaUary 

Mann 

Maraxltl 

Martin.  N.C 

Mathlas.  Calif 

MathU.  Oa. 

Mataunaga 

Mayne 

MazzoU 

Meeds 

Mezvinsky 

Michel 

MiUord 

MUler 

Mlnlsh 

Mlnshall.  Ohio 

MItcheU.  Md 

MltcheU.  N.T. 

Mlzell 

MoUohan 

Montgomery 


Anderson. 

Calif. 
DelJums 
Denholm 
Dlngell 
Eckhardt 
Plynt 
Poley 
Orofis 


Moorhead. 

Cam. 
Moorhead.  Pa 
Morgan 
Moaber 
Murphy,  ni 
Murphy,  W.Y. 
Myers 
Natcher 
Nedzl 
Nelsen 
NU 
Obey 
O'Brien 
O-Hara 
ONeUi 
Owens 
Parru 
Passman 
Patman 
Patten 
Pepper 
Perkins 
Peyser 
Pickle 
Pike 

Powell,  Ohio 
Preyer 
Price.  111. 
Price.  Tex. 
Pritchard 
Qule 
QulUen 
Randall 
Rangel 
Ree« 
Regula 
Reuss 
Rhodes 
Rlegle 
Rlnaldo 
Roberts 
Robinson,  Va. 
Roblson.  N.T. 
Rodino 
Roe 
Rogers 

Roncailo,  Wyo. 
Roncallo.  NT. 
Rooney,  Pm. 
Rose 

Rosenthal 
Roatenkowakl 
Roush 
Roy 
Roybal 
Runnels 
Ruppe 
Ruth 

St  Germain 
Sandman 
Sarasln 
Sar  banes 
Satterfleld 
Schneebell 
SebeUus 
Shipley 
Shoup 

NOKS— 26 

Ounter 

Hechler,  W.  Va 

Lehman 

McCormack 

Melcher 

Mlr\k 

Moos 

Poage 

Schroeder 


SUtes 
Slack 

Smith.  Iowa 

Smith.  N.Y. 

Snyder 

Spence 

Staggara 

Stanton, 
J.  WUllam 

Stanton. 
James  V. 

Stark 

Steed 

Steele 

Steelman 

Stelger.  Ariz. 

Stelger.  Wla. 

Stokes 

Stratt-n 

Stubbletleld 

Stuckey 

Studds 

Sullivan 

Symington 

TaJcott 

Taylor.  N.C. 

Teague.  Calif. 

Thomson.  Wis. 

Thone 

Thornton 

Tleman 

ToweU.  Ney. 

Treen 

Ullman 

Vander  Jagt 

Vlgorlto 

WagK'-.nner 

Waldle 

Wampler 

Ware 

Whalen 

White 

Whltehurst 

Whltten 
WIdnall 
Wlwlna 
WlUlams 
Wlls<jn.  Bob 

Calif. 
Wilson. 

Charles  H.. 
W.nn 
Wolff 
Wright 
Wyatt 
Wydler 
Wylie 
Wyman 
TatM 
Tstron 

Toung.  Alaska 
Toung,  Pla. 
Toung.  Oa. 
Toung.  lU. 
Toung,  8.C. 
iSablockl 
Zlon 


Selberllng 

Shuster 

Skubltz 

Symms 

Teague,  Tex. 

Thompson.  N.J. 

UdaU 

Vantk 


42621 


Alexander 
.\nderaon,  lU. 
.\ndrew8, 
N  Dak. 
Aspin 
Boiling 
Brooks 
Burke.  Calif. 
Burton 
Clancy 
Cohen 
Ccnyers 
DManey 
Dent 

Evins.  Tenn. 
Flowers 
Prelinghuysen 
Pulton 


NOT  VOTING — 63 


OrUBths 

Gubser 

Hanna 

Hansen.  Wash. 

Harvey 

H«bert 

Jarman 

Jones,  Ala 

Keating 

Landrum 

Ma  Ul  lard 

Martin.  Nebr 

Metcalfe 

Mills.  Ark. 

Moakley 

Nichols 

Pettis 

Podell 

So  the  bill  was  passed. 

The  Clerk   announced 
pairs: 


Rallsback 

Rarlck 

R«ld 

Rooney,  N.T. 

Rousselot 

Ryan 

Scherle 

Shrlver 

SIsk 

Stephens 

Taylor.  Mo. 

Van  Devlin 

Veysey 

Walsh 

Wilson. 

Charlea,  Tex. 
Toung.  Tex. 
Zwach 


the    following 


Mr  He  Den  with  Mr.  Obarles  Wilson  of 
Texas. 

Mr.  Rooney  of  New  York  with  Mr.  Rarlck. 

Mrs.  Burke  al  OaiUocnl*  with  Mr.  Toiuig 
of  Texas 

Mr.  Alexander  with  Mr.  Erlns  of  Tenneeaee. 

Mr.  Brooks  with  Mr.  Zwach. 

Mr.  Dent  with  Mr.  Metcalfe. 

Mi.  Landrum  with  Mr.  Walsh. 

Mrs.  Qrlfllths  with  Mr.  Pettis. 

Mr.  Ryan  with  Mr.  Taylor  of  MLaaourl, 

Mr.  Hanna  with  Mr.  Rallsb«ck, 

Mr.  Van  D«erlln  with  Mr.  Shrtver. 

Xn.  Hansen  of  Washington  with  Mr.  An- 
derson of  nilnots. 

Mr.   Aspln   with  Mr.  Conyers. 

Mr.  Burton  with  Mr.  Scherle. 

Mr.  MUls  of  Arkansas  with  Mr.  Andrews  of 
North  Dakou. 

Mr.  Delaney  with  Mr.  Qubeer 

Mr.  Jonee  of  Alabama  vyith  Mr.  Harvey. 

Mr.  Nichols  with  Mr.  Clancy. 

Mr.  PodeU  with  Mr.  Keating. 

Mr.  Slak  with  Mr.  Prelinghuysen. 

Mr.  Stephens  with  Mr.  MallUard. 

Mr.  Moakley  with  Mr.  Cohen. 

Mr.  Reld  with  Mr.  Rousselot. 

Mr.  Jarman  with  Mr.  Martin  of  Nebraska. 

Mr.  Fulton  with  Mr.  Flowers. 

The  resist  of  the  vote  was  announced 
as  above  recorded. 

A  motion  to  reconsider  was  laid  on  the 
table. 


GENERAL  LLAVE 

Mr.  HOLIFIELD.  Mr.  Speaker,  I  ask 
unanimous  consent  that  all  Members 
may  have  5  legislative  days  in  which  to 
revise  and  extend  their  remarks  and  In- 
clude extraneous  material  on  the  bill  just 
passed. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from  Cali- 
fornia? 

There  was  no  objection 


CONFERENCE    REPORT    ON    S.    1983. 
CONSERVATION,  PROTECTION, 

RESTORATION.  AND  PROPAGA- 
TION OF  THREATENED  AND  EN- 
D.\NGERED  SPECIES  OF  FISH, 
WILDLIFE,  AND  PLANTS 

Mrs.  SULLIVAN  submitted  the  fol- 
lowing conference  report  and  statement 
on  the  bill  (S.  1983)  to  provide  for  the 
conservation,  protection,  restoration, 
and  propagation  of  threatened  and  en- 
dangered species  of  fish,  wildlife,  and 
plants,  and  for  other  purposes : 
CoNrKaENCE   Report    (H.   Reft.   No.  93-740) 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bUl  (8. 
1983).  to  provide  for  the  conservation,  pro- 
tection, restoration,  and  propagation  of 
threatened  and  endangered  species  of  flsh, 
wildlife,  and  plants,  and  for  other  purp>oses, 
having  met,  after  full  and  free  conference, 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Houses  as  follows: 

That  the  Senate  recede  from  Its  disagree- 
ment to  the  amendment  of  the  House  to 
the  text  of  the  bill  and  agree  to  the  same 
with  an  amendment  as  follows: 

In  lieu  of  the  matter  proposed  to  be  in- 
serted by  the  House  amendment  Insert  the 
following: 

That  thU  Act  may  be  cited  as  the  "Endan- 
gered Spocles  Act  of  1973". 


TABLE     OF    CONTXKTS 

2    Findings,  purposes,  and  poUcy. 


Sec 

Sec.  3.  Definitions. 


Sec.  4.  Determination  of  endangered  species 

and  threatened  species. 
Sec.  5.  Land  acquisition. 
Sec.  6.  Cooperation    with    the    States. 
Sec.  7.  Interagency  cooperation. 
Sec.  8.  International  cooi)eratlon. 
Sec.  9.  Prohibited  acts. 
Sec.  10.  Exceptions. 
Sec.  11.  Penalties  and  enforcement. 
Sec.  12.  Endangered  plants. 
Sec.  13.  Conforming  amendments. 
Sec.  14.  Repealer. 

Sec.  16.  Authorization  of  appropriations. 
Sec.  16.  Effective  date. 
Sec.  17.  Marine  Mammal   Protection  Act  of 

1972. 

nimiNGs.  FuaposEs,  and  polict 
Sec.  2.  (a)  Findings. — The  Congress  finds 
and  declares  that — 

(1)  various  species  of  flsh,  wildlife,  and 
plants  In  the  United  States  have  been  ren- 
dered extinct  as  a  consequence  of  economic 
growth  and  development  untempered  by  ade- 
quate concern  and  conservation; 

(2)  other  species  of  flsh,  wildlife,  and 
plants  have  been  so  depleted  In  numbers 
that  they  are  in  danger  of  or  threatened  with 
extinction; 

(3)  these  species  of  flsh,  wildlife,  and 
plants  are  of  esthetic,  ecological,  educational, 
historical,  recreational,  and  scientific  value 
to  the  Nation  and  Its  people; 

(4)  the  United  States  has  pledged  Itself 
as  a  sovereign  state  In  the  International 
community  to  conserve  to  the  extent  prac- 
ticable the  various  species  of  flsh  or  wildlife 
and  plants  facing  extinction,  pursuant  to— 

(A)  migratory  bird  treaties  with  Canada 
and  Mexico; 

(B)  the  Migratory  and  Endangered  Bird 
Treaty  with  Japan: 

(C)  the  Convention  on  Nattire  Protection 
and  Wildlife  Preservation  in  the  Western 
Heml^here: 

(D)  the  International  Convention  for  the 
Northwest  Atlantic  Fisheries; 

(E)  the  International  Convention  for  the 
High  Seas  Fisheries  of  the  North  Pacific 
Ocean; 

(P)  the  Convention  on  International 
Trade  in  Endangered  Species  of  Wild  Fauna 
and  Flora;  and 

(G)    other  International  agreements. 

(5)  encouraging  the  States  and  other  In- 
terested parties,  through  PederaJ  financial 
assistance  and  a  system  of  Incentives,  to  de- 
velop and  maintain  conservation  programs 
which  meet  national  and  International 
standards  Is  a  key  to  meeting  the  Nation's 
International  commitments  and  to  better 
safeguarding,  for  the  benefit  <Atil  citizens, 
the  Nation's  heritage  In  flsh  i^d  wildlife. 

(b)  PtTRposES. — The  purposes  of  this  Act 
are  to  provide  a  means  whereby  the  ecosys- 
tems upon  which  endangered  species  and 
threatened  species  depend  may  be  conserved, 
to  provide  a  program  for  the  conservation  of 
such  endangered  species  and  threatened 
species,  and  to  take  such  steps  as  may  be  ap- 
propriate to  achieve  the  purposes  of  the 
treaties  and  conventions  set  forth  In  sub- 
section (a)  of  this  section. 

(c)  Policy. — It  is  further  declared  to  be 
the  policy  of  Congress  that  all  Federal  de- 
partments and  agencies  shall  seek  to  con- 
serve endangered  species  and  threatened 
species  and  shall  utUlze  their  authorities  In 
furtherance  of  the  purposes  of  this  Act. 

DETINmoNS 

Sec.  3.  For  the  purposes  of  this  Act — 

(1)  The  term  "commercial  activity"  means 
all  activities  of  industry  and  trade,  includ- 
ing, but  not  limited  to,  the  buying  or  selling 
of  commodities  and  activities  conducted  for 
the  purpose  of  facUltatlng  such  buying  and 
selling. 

(2)  The  terms  "conserve",  "conserving", 
and  "conservation"  mean  to  use  and  the  use 
of  all  methods   and  procedures  which   are 


necessary  to  bring  any  endangered  species 
or  threatened  species  to  the  point  at  which 
the  measures  provided  pursuant  to  this  Act 
are  no  longer  necessary.  Such  methods  and 
procedures  include,  but  are  not  limited  to, 
all  activities  associated  with  scientific  re- 
sources management  such  as  research,  cen- 
sus, law  enforcement,  habitat  acquisition 
and  maintenance,  propagation,  live  trapping, 
and  transplantation,  and,  in  the  extraordi- 
nary case  where  population  pressures  within 
a  given  ecosystem  cannot  be  otherwise  re- 
lieved, may  Include  regulated  taking. 

(3)  The  term  "Convention"  means  the 
Convention  on  International  Trade  in  En- 
dangered Species  of  WUd  Fauna  and  Flora, 
signed  on  March  3,  1973,  and  the  appendices 
thereto. 

(4)  The  term  "endangered  sf>ecles"  means 
any  species  which  Is  In  danger  of  extinction 
throughout  all  or  a  significant  portion  of  Its 
range  other  than  a  species  of  the  Class  In- 
secu  determined  by  the  Secretary  to  consti- 
tute a  pest  whose  protection  under  the  pro- 
visions of  this  Act  would  present  an  over- 
whelming and  overriding  risk  to  man. 

(5)  The  term  "fish  or  wildlife"  means  any 
member  of  the  animal  kingdom,  including 
without  limitation  any  mammal,  fish,  bird 
(Including  any  migratory,  nonmlgratory.  or 
endangered  bird  for  which  protection  Is  also 
afforded  by  treaty  or  other  International 
agreement  i ,  amphibian,  reptUe,  molusk,  crus- 
tacean, arthropod  or  other  Invertebrate,  and 
Includes  any  part,  product,  egg.  or  offspring 
thereof,  or  the  dead  body  or  parts  thereof. 

(6)  The  term  "foreign  commerce"  includes, 
among  other  things,  any  transaction— 

(A)  between  persons  within  one  foreign 
country; 

(B)  between  persons  In  two  or  more  for- 
eign countries; 

(C)  between  a  person  within  the  United 
States  and  a  person  in  a  foreign  country;  at 

CD)  between  persons  within  the  United 
States,  where  the  flsh  and  wildlife  in  ques- 
tion are  moving  in  any  country  or  countries 
outside  the  United  States. 

(7)  The  term  "import"  means  to  land  on, 
bring  into,  or  Introduce  into,  or  attempt  to 
land  on.  bring  Into,  or  introduce  Into  any 
place  subject  to  the  Jurisdiction  of  the  United 
States,  whether  or  not  such  landing,  bring- 
ing, or  introduction  constitutes  an  importa- 
tion within  the  meaning  of  the  customs  laws 
of  the  United  States. 

(8)  The  term  "person"  means  an  indi- 
vidual, corporation,  partnership,  trust  asso- 
cution,  or  any  other  private  entity,  or  any 
officer,  employee,  agent,  department,  or  in- 
strumentality of  the  Federal  Government  of 
any  State  or  political  subdivision  thereof,'  or 
of  any  foreign  government. 

(9)  The  term  "plant"  means  any  member 
of  the  plant  kingdom.  Including  seeds  roots 
and  other  parts  thereof. 

(10)  The  term  "Secretary"  means,  except 
as  otherwise  herein  provided,  the  Secretary 
of  the  Interior  or  the  Secretary  of  Commerce 
as  program  responslbUltles  are  vested  pur- 
suant to  the  provisions  of  Reorganization 
Plan  Numbered  4  of  1970;  except  that  with 
respect  to  the  enforcement  of  the  provisions 
of  this  Act  and  the  Convention  which  per- 
tain to  the  importation  or  exportation  of  ter- 
restrial plants,  the  term  means  the  Secre- 
tary of  Agriculture. 

( U )  The  term  "species"  Includes  anv  sub- 
species of  fish  or  wildlife  or  planta  and  any 
other  group  of  fish  or  wildlife  of  the  same 
species  or  smaUer  taxa  In  common  spatial 
arrangement  that  interbreed  when  mature. 

(12)  The  term  "Stata"  means  any  of  the 
several  States,  the  District  of  Columbia,  the 
Commonwealth  of  Puerto  Rico,  American 
Samoa,  the  Virgin  Islands,  Guam,  and  the 
Trust  Territory  of  the  Paclflc  Islands. 

(13)  The  term  "State  agency"  means  the 
State  agency,  department,  board,  commis- 
sion, or  other  governmental  entity  which  Is 


42622 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


respoaslble  for  the  m&nagvmeat  and  con- 
servation of  fUb  or  wildlife  r«eourcea  wtthln 
a  Stale. 

(141  The  term  "take'  meana  to  haraaa. 
hArm.  pursue,  hunt,  shoot,  wound,  kill,  trap, 
capture,  or  collect,  or  to  attempt  to  enga^ 
In  any  such  conduct. 

(151  The  term  threatened  apeclea"  me»n« 
any  speclea  which  Is  likely  to  become  an  en- 
dangered speclea  within  the  foreaeeable  fu- 
ture throughout  all  or  a  significant  portion  of 
Its  range 

( 16)  The  term  •United  States",  when  uaed 
in  a  geographical  context.  Includes  all  States 
orruiMiNATioN    or    endanoxeeo    spscixa    and 

THkXATCNED    SPXCIZS 

Skc.  4.  (a)  OkNEBAi,.— (1)  The  Secretary 
shall  by  regulation  determine  whether  any 
species  Is  an  endangered  species  or  a  threat- 
ened species  because  of  any  of  the  following 
factors: 

( 1 1  the  present  or  threatened  destruction, 
modlflcatlon.  or  curtailment  of  Ita  habitat  or 
range: 

lai  overutlllzatlon  for  commercial,  sport- 
ing, scientific,  or  educational  purposes; 

(3i   disease  or  predatlon: 

til  the  inadequacy  of  exUtlng  regulatory 
mechanisms:  or 

1  S 1  other  natural  or  manmade  factors  af- 
fecting Its  continued  existence 

,2i  With  respect  to  any  species  over  which 
program  responsibilities  have  been  vested  in 
the  Secretary  of  Commerce  pursuant  to  Re- 
organization Plan  Numbered  4  of  1970 — 

(A)  In  any  case  In  which  the  Secretary  of 
Commerce  determines  that  such  species 
should — 

111  be  listed  as  an  endangered  speclea  or 
a  threatened  species,  or 

lUi    l)e  changed   In  status  from  a  threat- 
ened species  to  an  endangered  species, 
he  shall  so  inform  the  Secretary  of  the  In- 
terior, who  shall  list  such  species  m  accord- 
ance with  this  section; 

I  B I  m  any  case  In  which  the  Secretary  of 
Commerce  determines  that  such  species 
should — 

111  be  removed  from  any  list  published 
pursuant  to  subsection  ici  of  this  section,  or 

1 11 1  be  changed  in  status  from  an  endan- 
gered species  to  a  threatened  speclea. 
he  shall  recommend  such  action  to  the  Sec- 
retArj-  of  the  Interior,  and  the  Secretary  of 
the  Interior,  if  Ife  concurs  In  the  recommen- 
dation, shall  Implement  such  action;  and 

iCi  the  Secretary  of  the  Interior  may  not 
list  or  remove  from  any  list  any  such  species, 
and  may  not  change  the  status  of  any  such 
species  which  are  lusted,  without  a  prior  fa- 
vorable determination  made  pursuan:  to  this 
section  by  the  Secretary  of  Commerce 

(bt  Basis  Foa  Dttsbminations — ili  The 
SacretATV  shall  make  determinations  re- 
quired by  subsection  (a)  of  this  section  on 
the  basts  of  the  best  scientific  and  commer- 
cial data  available  to  hun  and  after  consult*- 
ilon.  as  appropriate,  with  the  affected  States. 
Interested  persons  and  orgaxazatlons.  other 
Interested  Federal  agencies,  and.  In  coopera- 
tion with  the  Secretary  of  St«te.  with  the 
country  (yr  countries  in  which  the  speclea 
concerned  Is  normally  found  or  whose  citi- 
zens harvest  such  species  on  the  high  seas: 
except  that  In  any  case  In  which  such  de- 
terminations involve  resident  species  of  fish 
or  wildlife,  the  Secretary  of  the  Interior  may 
not  add  such  species  to.  or  remove  such 
species  from,  any  list  published  purstiant  to 
sut>3ectlon  (ci  of  this  section,  unless  the 
Secretary  has  first — 

I  K  \  published  notice  in  the  Federal  Regis- 
ter and  notified  the  Oovemor  of  each  Stat» 
within  which  such  species  Is  then  known  to 
occur  that  such  action  is  contemplated: 

(Bi  Billowed  each  such  State  90  days  after 
noitlflcatlon  to  submit  its  comments  and 
recommendations,  except  to  the  extent  that 
such  period  may  be  shortened  by  agreement 


between  the  Secretary  and  the  Oovemor  or 
Oovemors  concerned,  and 

(C)  published  in  the  Federal  Register  a 
summary  of  all  comments  and  recommenda- 
tions received  by  him  wblcb  relate  to  such 
propoeed  action. 

(2)  In  determining  whether  or  not  any 
species  Is  an  endangered  species  or  a  threat- 
ened species,  the  Secretary  shall  take  Into 
consideration  those  efforts.  If  any.  being 
made  by  any  nation  or  any  political  sub- 
division of  any  nation  to  protect  suet 
species,  whether  by  predator  control,  protec 
tlon  of  habitat  and  food  supply,  or  othei 
conservation  practices,  within  any  area 
under  the  Jurisdiction  of  any  such  nation 
or  political  subdlvuion.  or  on  the  high  seas 

1 3)  Species  which  have  been  designated 
as  requiring  protection  from  unrestricted 
commerce  by  any  foreign  coun'-ry.  or  pursu- 
ant to  any  International  agreement,  shall 
receive  full  consideration  by  the  Secretary 
to  determine  whether  each  Is  an  endangered 
species  or  a  threatened  species. 

(CI  Lists. —  (li  The  Secretary  of  the  1  - 
terlor  shall  publish  In  the  Federal  Register, 
and  from  time  to  time  he  may  by  regulation 
revise,  a  list  of  all  species  determined  by 
him  or  the  Secretary  of  Commerce  to  be  en- 
dangered speclea  and  a  list  of  all  species  de- 
termined by  him  or  the  Secretary  of  Com- 
merce to  be  threatened  species  Each  list 
shall  refer  to  the  species  contained  therein 
by  scientific  and  common  name  or  namee. 
If  any.  and  shall  specify  with  respect  to  each 
such  species  over  what  portion  of  Its  range 
It  Is  endangered  or  threatened. 

(3)  The  Secretary  shall,  upon  the  petition 
of  an  interested  person  under  subsection 
553(e)  of  title  5.  United  States  Code,  con- 
duct a  review  of  any  listed  or  unlisted  species 
proposed  to  oe  removed  from  or  added  to 
either  of  the  lists  published  pursuant  to 
paragraph  ( 1 1  of  this  subsection,  'but  only 
If  he  makes  and  publishes  a  finding  that  such 
person  has  presented  substantial  evidence 
which  In  his  judgment  warrants  such  a 
review 

(31  Any  list  in  effect  on  the  day  before  the 
date  of  the  enactment  of  this  Act  of  species 
of  fish  or  wildlife  determined  by  the  Secre- 
tary of  the  Interior,  pursuant  to  the  En- 
dangered Species  Conservation  Act  of  1968. 
to  be  threatened  with  extinction  shall  be 
republished  to  conform  to  the  classification 
for  endangered  species  or  threatened  species, 
as  the  case  may  t>e.  provided  for  in  this  Act. 
but  until  such  republication,  any  such 
species  so  listed  shall  be  deemed  an  endan- 
gered species  within  the  meanin?  of  this  Act 
The  republication  of  any  species  pursuant 
to  this  paragraph  shall  not  require  public 
hearing  or  comment  under  section  653  of 
Utie  5.  United  States  Code. 

(d|  Protecttvx  RtccLATioNs — Whenever 
any  species  is  listed  as  a  threatened  species 
pursuant  to  subsection  (c)  of  this  section, 
the  Secretary  shall  Issue  such  regulations 
as  he  deems  necessary  and  advisable  to  pro- 
vide for  the  conservation  of  such  species. 
The  Secretary  may  by  regulation  prohibit 
with  respect  to  any  threatened  species  any 
act  prohibited  under  section  9(a)  ( 1).  In  the 
case  of  fish  or  wildlife,  or  section  9ia)(a). 
In  the  case  of  plants,  with  respect  to  en- 
dangered species;  except  that  with  respect 
to  the  taking  of  resident  species  of  fish  or 
wildlife,  such  regulations  shall  apply  In  any 
State  which  has  entered  into  a  cooperative 
agreement  pursuant  to  section  8(a)  of  this 
Act  only  to  the  extent  that  such  regulations 
have  also  been  adopted  by  such  State. 

le)  Srxn.ABrrT  or  Appxakamcx  Casks. — The 
Secretary  may.  by  regulation,  and  to  the  ex- 
tent he  de«ms  advisable,  treat  any  specle<i  as 
an  endangered  sp«cles  or  threatened  species 
even  though  it  is  not  listed  pursuant  to  sec- 
tion 4  of  this  Act  If  he  finds  that — 

(A)  such  species  so  closely  resembles  In 
appearance,  at  the  point  In  question,  a  species 
which  has  been  listed  pursuant  to  such  sec- 


tion that  enforcement  personnel  would  have 
substantial  difficulty  In  attempting  to  differ- 
entiate between  the  listed  and  unlisted 
species; 

iBi  the  effect  of  this  substantial  difficulty 
Is  an  additional  threat  to  an  endangered  or 
threatened  species;  and 

(C)  such  treatment  of  an  unlisted  species 
win  substantially  facilitate  the  enforcement 
and  further  the  policy  of  this  Act. 

(f)  Rrcc^LATiows. — (1)  Except  as  provided 
In  paragraphs  (2)  and  (3)  of  this  subsection 
and  subsection  (b)  of  this  section,  the  pro- 
visions of  section  563  of  title  5.  United  States 
Code  (relating  to  rulemaking  procedures), 
shall  apply  to  any  regulation  promulgated  to 
carry  out  the  purposes  of  this  Act 

(2)  (A)  In  the  case  of  any  regulation  pro- 
posed by  the  Secretary  to  carry  out  the  pur- 
poses of  this  Act — 

(I)  the  Secretary  shall  publish  general 
notice  of  the  propnjsed  regulation  (Including 
the  complete  text  of  the  regulation)  In  the 
Federal  Register  not  leas  than  60  days  before 
the  effective  date  of  the  regulation;  and 

(U)  If  any  person  who  feels  that  he  may  be 
adversely  affected  by  the  propoeed  regulation 
files  (within  45  days  after  the  date  of  publica- 
tion of  general  notice)  objections  thereto  and 
requests  a  public  hearing  thereon,  the  Sec- 
retary may  grant  such  request,  but  shall,  if 
he  denies  such  request,  publish  his  reasons 
therefor  In  the  Federal  Register. 

(Bi  Neither  subparagraph  (A)  of  this  para- 
graph nor  section  553  of  title  5.  United  States 
Code,  shall  apply  In  the  case  of  any  of  the 
following  regulations  and  any  such  regula- 
tion shall,  at  the  discretion  of  the  Secretary, 
take  effect  Immediately  upon  publication  of 
the  regulation  In  the  Federal  Register: 

1 1)  Any  regulation  appropriate  to  carry  out 
the  purposes  of  this  Act  which  was  originally 
promulgated  to  carry  out  the  Endangered 
Species  Conservation  Act  of  1969 

(II)  Any  regulation  (Including  any  regula- 
tion Implementing  section  eig)  (2)  (B)  (11)  of 
this  Act)  Issued  by  the  Secretary  In  regard 
to  any  emergency  posing  a  significant  risk 
to  the  well-t>elng  of  any  species  of  fish  or 
wildlife,  but  only  If  (I)  at  the  time  of  pub- 
lication of  the  regulation  In  the  Federal 
Register  the  Secretary  publishes  therein  de- 
tailed reasons  why  such  regulation  Is  neces- 
sary, and  (II)  In  the  case  such  regulation  ap- 
plies to  resident  species  of  fish  and  wildlife. 
the  requirements  of  subsection  (bMA).  (B). 
and  (Ci  of  this  section  have  been  compiled 
with.  Any  regulation  promulgated  under  the 
authority  of  this  clause  (U)  shall  cease  to 
have  force  and  effect  at  the  close  of  the  120- 
day  period  following  the  date  of  publication 
unless,  during  such  120-day  period,  the  rule- 
making procedures  which  would  apply  to 
such  regulation  without  regard  to  this  sub- 
paragraph are  compiled  with. 

(3)  The  publication  In  the  Federal  Register 
of  any  proposed  or  final  regulation  which  Is 
necessary  or  appropriate  to  carry  out  the 
purp>oses  of  this  Act  shall  Include  a  state- 
ment by  the  Secretary  of  the  facts  on  which 
such  regulation  Is  based  and  the  relation- 
ship of  such  facts  to  such  regulation. 
LAND    ACQtnsrnoN 

Sbc  5.  (a)  PaoGEAM — The  Secretary  of  the 
Interior  shall  establish  and  implement  a 
program  to  conserve  (A)  fish  or  wildlife 
which  are  listed  as  endangered  species  or 
threatened  species  pursuant  to  section  4  of 
this  Act;  or  (B)  plants  which  are  Included  in 
Appendices  to  the  Convention.  To  c«rry  out 
such  program,  he — 

(1)  shall  utilize  the  land  acquisition  and 
other  authority  under  the  P^sh  and  Wild- 
life Act  of  1956.  as  amended,  the  Fish  and 
Wildlife  Coordination  Act.  as  amended,  and 
the  Migratory  Bird  Conservation  Act.  as  ap- 
propriate; and 

(2)  Is  authorized  to  acquire  by  purchase. 
donation,  or  otherwise,  lands,  waters,  or  In- 
terest therein,  and  such  authority  shall  be 


December  19,  1973 


in  addition  to  any  other  land  acquisition  au- 
thority vested  In  him. 

(b)  AcotrisrrioKs —Funds  made  available 
pursuant  to  the  Land  and  Water  Conserva- 
tion Fund  Act  of  1965.  as  amended  may  be 
used  for  the  purpose  of  acquiring  lands 
waters,  or  Interests  therein  under  subsection 
(a)  of  this  section. 

COOPEkATIOK   Wn-H  THE  STATES 

S«c.  B.  (a)  OiNKEAL.— In  carrying  out  the 
program  authorized  by  this  Act.  the  Secre- 
tary shall  cooperate  to  the  maximum  extent 
pracUcable  with  the  States.  Such  oooperaUon 
shall  include  consultation  with  the  States 
concerned  before  acquiring  any  land  or 
water,  or  InlP-^st  '-rrnn.  for  the  purpose  of 
conserving  a;.  e,.da:.Kered  species  or  threat- 
ened speclei  ■-"i'-*- 

(b)  Manacemknt  AcaxiMXNTS.— The  Sec- 
retary may  enter  into  agreemenu  with  any 
Sute  for  the  administration  and  manage- 
ment of  any  area  esUbllshed  for  the  con- 
servation of  endangered  ^.pecle8  or  threatened 
species.  Any  revenues  derived  from  the  ad- 
ministration of  such  areas  under  these  agree- 
menu shall  be  subject  to  the  provisions  of 
^tlon  401  of  the  Act  of  June  15.  1935  (49 
SUt.  383;  18U£.C.  7158).  -»«<« 

(c)  CooPKRATivk  AeaxEMiNTs  — In  further- 
ance of  the  purposes  <jf  this  Act,  the  Secre- 
tary Is  authorised  to  enter  into  a  cooperative 
agreement  in  accordance  with  this  section 
with  any  Stat*  which  establishes  and  main- 
tains  an  adequate  and  active  program  for 
the  conservation  of  endangered  species  and 
threatened  species.  Within  one  hundred  and 

I?i^^***y*  *^^''  ^*^«  Secretary  receives  a 
™^  ^'^l  °^  '""^^  ■  proposed  sute  pro- 
gram, he  shall  make  a  determination  whether 
^llfi  '"^'!i™  ^  ^  accordance  with  this  Act. 
L!iif  he  determines,  pursuant  to  this  sub- 
s^on.  that  the  SUte  program  Is  not  in  ac- 
cordance with  this  Act,  he  shaU  enter  into 
a  cooperative  agreement  with  the  State  for 
the  purpose  of  assUtlng  m  Implemenutlon  of 
the  state  program.  In  order  for  a  State  pro- 
gram to  be  deemed  an  adequate  and  active 
^^^ST^  '^"^  ^^'  conservation  of  endangered 
r^^lt^  "h  "^  threatened  species,  the  Secretary 
^.^  ^°  H.'^'*  annually  thereafter  reconflrS 
™    _5^       ^'    '*"*'    ""***'■    ^'    sute    pro- 

(1)  authority  resides  In  the  SUte  agency 
to  conserve  resident  species  of  fish  or  wSdlUe 
determined  by  the  Sute  agency  or  the  Secre- 
Ury  to  be  endangered  or  threatened- 

12)  the  SUte  agency  has  esUbllshed  ac- 
l^.^i'^L*  conservation  programs,  consistent 
with  the  purposes  and  policies  of  thU  Act 

in  the  Sut«  Which  are  deemed  by  the  Secre- 
tary to  be  endangered  or  threatened,  and  has 
furnished  a  copy  of  such  plan  and  program 
together  with  all  pertinent  deuils.  informa- 
tion, and  data  requested  to  the  Secretary 

(3)  the  Stau  agency  u  authorized  to  con- 
duct investigations  to  determine  the  sutus 
and  requirement.,  for  survival  of  resident  spe- 
cies of  fish  and  wildlife; 

(4)  the  State  agency  is  authorized  to  esUb- 
Uh  programs.   Including  the  acquisition   of 

land  or  aquatic  hablut  or  Intereeu  therein 
for  the  conservation  of  resident  endangered 
species  or  threatened  species-  and 
t,l'*.  PIP'V'""  ^  made  for  public  partlclpa- 
»n^.^  designating  resident  species  of  fish  or 
wildlife  as  endangered  or  threatened 

(d)  AixocATiON  OF  Funds.— (1)  The  Secre- 
tary Is  authorized  to  provide  financial  assist- 
ance to  any  State,  through  Its  respective 
SUte  agency,  which  has  entered  Into  a  coop- 
erative agreement  pursuant  to  subsection  (c) 
of  this  section  to  assist  in  development  of 
programs  for  the  conservation  of  endangered 
and  threatened  species.  The  Secreurv  shall 
make  an  allocation  of  appropriated  funds  to 
such  Sutes  based  on  consideration  of— 

(A)  the  International  commitments  of  the 
United  sutes  to  protect  endangered  species 
or  threatened  species; 

CXIX 2684— Part  33 


CONGRESSIONAL  RECORD  — HOUSE 


(B)  the  readiness  of  a  SUte  to  proceed 
with  a  conservation  program  consistent  with 
the  objectives  and  purposes  of  this  Act 

IC)  the  number  of  endangered  species  and 
threatened  species  within  a  SUte; 

(D)  the  potential  for  restoring  endangered 
species  and  threatened  species  within  a  State 
and 

(E)  the  relative  urgency  to  Initiate  a  pro- 
gram to  restore  and  protect  an  endangered 
species  or  threatened  species  in  terms  of  sur- 
vival of  the  species 

8o  much  of  any  appropriated  funds  aUo- 
cated  for  obligation  to  any  StaU  for  any  fis- 
cal year  as  remains  unobligated  at  the  close 
thereof  Is   auihorlzed   to   be   made   available 

to  that  .su^e  until  the  c;,^  of  the  succeed- 
ing  fiscal  year  Any  amount  allocated  u.  any 
8UU  whlrh  i.s  unobligated  at  ihe  end  of  the 
period  during  which  it  is  available  fur  ex- 
penditure is  authorized  u,  be  made  avail- 
able for  expenditure  by  the  Secretary  In  con- 
ducting programs   under  this  section 

(2)  Such  cooperative  agreements  shall  pro- 
vide for  (A)  the  actlo;..s  t.,  -^  taken  bv  the 
Secretary  and  thp  states,  b  the  benefits 
that  are  expected  ?/.  be  derived  Ir.  connec- 
tion with  the  conservation  of  endangered  or 
threatened  species.  iCi  the  estimated  c<:.st 
of  these  actions,  and  iD^  the  share  of  -uch 
costs  to  be  borne  by  the  Federal  Government 
and  by  the  States    except  that^- 

(1)  the  Federal  share  of  such  program  costs 
shall  not  exceed  66 ^  per  centum  of  the  eetl- 
mated  program  cosu  sUted  In  the  agree- 
ment, and 

(ID  the  Federal  Rhare  .mav  be  Increased  to 
75  per  centum  whenever  two  or  more  SUtes 
having  a  cmmon  interest  In  one  or  more  en- 
dangered or  threatened  species,  the  conserva- 
tion of  which  may  be  enhanced  by  coopera- 
tion of  such  States,  enter  jointly  Into  an 
agreement  with  the  Secretary 
The  Secretary  may,  in  his  discretion,  »  nd  un- 
der such  rules  and  regulations  as  he  mav  pre- 
Bca-lbe.  advance  funds  U>  the  Slate  'or  fi- 
nancing the  United  Stores  pro  rata  share 
agreed  upon  in  the  cofiperative  afreemeni 
I^>r  the  purposee  of  this  section  the  non- 
Federal  share  may.  m  the  discetion  of  the 
Secretary,  be  in  the  form  of  money  or  real 
property,  the  value  of  which  will  be  deter- 
mined by  the  SecreUry.  whose  decision  shall 
be  final. 

(e)  Rxvixw  OF  Stati  Programs.— Any  ac- 
tion taken  by  the  Secretary  under  this  sec- 
tion shall  be  subject  to  his  periodic  review 
at   no   great,er   -.han   annual    LnterraLs 

(f)  CoNn.i(-rs  BrrwcKN  Ftoeral  a.nd  Statx 
Laws— Any  State  law  or  regulation  which 
applies  with  respect  to  t:,e  Importation  or 
exportation  of,  or  interstate  or  foreign  com- 
merce in,  endangered  species  or  threatened 
species  is  void  to  the  extent  that  It  may  ef- 
fectively I  I  !  permit  what  is  prohibited  by 
this  Act  or  by  any  regulatio;.  which  Imple- 
ments this  Act.  or  .2.  prohibit  what  Is  au- 
thorized pursuant  t-o  an  exemption  or  permJt 
provided  for  In  this  Act  or  In  any  reg-ulatlon 
which  implements  this  Act  This  Act  shall 
not  otherwise  t>e  construed  to  void  anv  state 
law  or  regu.atioii  which  Is  intended  to  con- 
serve ralgrau:>ry.  resident  or  Introduced  fish 
or  wildlife  or  to  permit  or  prohibit  sale  of 
such  fish  or  wildlife.  Any  SUte  law  or  regula- 
tion respecting  the  Uklng  of  an  endangered 
specips  or  threatened  species  mav  be  more 
r«€trtrtlve  than  the  exemptlo:,s  r,r  permits 
provided  f,>r  In  this  Act  or  l:.  anv  rei?i:latlon 
which  Implements  th!.-;  Aci  but  not  lesi  re- 
strictive than  the  prohlbltio.'-is  so  defined. 

(gi  TRANsrrioN  — !  1 ,  For  purposes  of  this 
subsection,  the  term  -establishment  period" 
means,  with  respect  to  any  State,  the  period 
beginning  on  the  date  of  enactment  of  this 
Act  and  ending  on  whichever  of  the  follow- 
ing dates  f.rst  -ccurs:  .A:  the  date  of  the 
close  of  the  120-day  period  following  the  ad- 
journment of  the  fli-st  reg'jlar  session  of  the 
legislature  of  such  State  which  ccromences 
after  such  date  of  enactment,  or  i  B )  the  date 


42623 

suchd^ir*,"'  ""•  15-month  period  foUowlng 
such  date  of  enactment 

tHr^^"  P^'o^l^Wons'  set  forth  In  or  au- 

thortzed  pursuant  to  section*  4(d)  and  8(a) 
(1)  (B)   of  this  Act  shall  not  apply  with  re- 

gered    species    or    threatened   species    (other 
than  species  listed  m  Appendix  ItTthe^" 

I^v  oth.f.°''l'^'**  specifically  covereTSy 
M^^er  treaty  or  Federal  law)   within  any 

(A)  which  U  then  a  party  to  a  cooueratlve 
agreement  with  the  S^crelary  p^S^t  ^ 
section  0(c)  of  thus  Act  , excipt  to  tSi  .x^ 
tent  that  the  taiung  of  any  such  spe^^ 
contrary  to  the  law  of  such  SUU)  ^ 

llshment  period  when— 
to*.',Lh^*'^'***^  *PP"*»  ^"ch  prohlbltton 

afLr  he  fln^."  t'-  ^^^"^"  ""'^  prohibition 
^  /Ji  ^'  ^"""^  P"^;i*faes  hU  finding,  that 
a.,  emergency  extst^  posing  a  s.gn;ficu.*i  7^ 

W  "  ^^fi}:^^  °^  ''''■■  «P*cl"  and  tSTt 
the  prohibition  must   be   ap^ed   •.,   oro^  • 

nubncir'*^  '^'  SecretaPfs  findl/g  .^<i 
publication  may  be  made  with-  u-   reelrd^ 

^£f  i'.V^r^^  ""'  =^^^^*°»  provUK  r^  ^f 
section  553  of  title  5    r,  ited  .States  Code    or 

any   other   provision   of    this   Act     bur'uc^ 

further.^  imposition  unless  the  Secretary 
!^^  ^,"**"'^  ""*=*'  prohibition  bv  publUh- 
sC^h^ex^^sTn."  •^^'"•^^  °'  Jun.«-t,o^^of 
.v,'^*    Rmulations  — The    Secretarv    Is    au- 

(1)    APPROPRIATIONS— For  the  purposes  of 

3^  1^7  ^"^^  '^'  ^^'^  ^^"^  ending  June 
30,   1977,  not  to  exceed  $10,000,000. 

INTERACrNCT     COOPEEATION 

Sec.  7  Tht  Secretarv  shall  review  other 
program..  admu.Ls.,.red  by  him  and  u^to 
such  programs  In  furtherance  of  the  p'^nxxj^ 
Of  this   Act.   All   other   Federal   dep^S^ 

^ir^H^^,'^'-  "^  ^'^""'^t.on'^wlth^d 
tVl,  ^^*  •«»l«t»nce  ot  the  Secretary.  utUlze 
their  authorities  In  furtherance  of  the  pur- 
I^  of  this  Act  by  carrying  out  p^,^ 
Lnrt^^  conservation  of  endanpered^ies 
a^  threatened  species  luted  pumiaSt  to 
^^rV  "'  '*''-'  ^"  ^■■■''  ^^  -akinTsu^  ac^ 
iz«l.  funded,  or  carried  out  by  them  do  not 
e  r'^i^.''^'"  continued  exlLnce  o?  si^ 
orl^'^t'^,''  :r'r  r''  '»>^*'^"«l  «P«c«e8 
of  ^Mt  J  f  df  ^ruction  or  modification 
^,  i,  w"  ""^  ^"^"^  species  which  Is  deter- 
"--l.-^ed  bv  the  Secretarv  aft^^  consulUtVcTn 
^appropriate  with  the  a-fected  Sutes.  to^ 


INTERNATIONAI,    COOPERATION 

Sec    8     (a)    FmAjfciAL    Assistanc*  — As   a 

n*r,'?J^l'^"°"  "^  *^*  con-.mltment  of  the 
United  St^t«  t^  the  worldwide  protecUon 
of  endangered  species  and  tl.-eatened  soectes 

the  President  .-r^y  .sub-e^t  t.  the  So'^S 
of  section  1415  of  the  Suppleme.^,il  Appro^ 
prlatlon  .\ct,  1953  (31  US  C  724  use  'oretoi 
ci.rrencles  accr^.Ung  to  the  Cn;-^  ?'ta^ 
f^yernment  under  the  Agnc-.::t  iral  T-ade 
Development  and  -Assistance  ,\ct  of  ]or,4  p, 
any  oth.er  law  to  provide  to  ;^-.v  fore-g-  ■^-  . 
try  with  Its  coi^nt  assl5Unce  Ir  'the  de- 
velopment and  management  of  programs  In 
that  countn-  which  the  Secretary  deWm!n« 
to  be  nec-essarv  or  useful  f<^  the  co.-<^"-a- 
tion  of  ar.v  endangered  species  or  threatened 
species  listed  by  the  Se-retarv  pursuant  to 
se«-tio:.  4  of  this  Act  Th.e  President  shall 
provide  assistance  which  includes,  but  Is 
not  limited  to  the  acquisition,  by  lease  or 
otherwLse  of  lands  waters,  or  mterestji  tJiere. 
ini  to  fcrrelgn  countrlee  unider  this  section 
■inder  ruch  terms  and  -ondlUans  as  he 
deems  appropriate   Whenever  foreign  curT»n. 


L162i 


CONGRESSIONAL  RECORD  —  HOI  SE 


December  19,  1973 


cl«6  *n  avkUable  for  the  provision  of  asstst- 
»nc«  under  this  section,  such  currencies  shall 
b«  usMl  la  preference  to  funds  appropriated 
under  the  authority  of  section  15  of  this 
Act. 

(b)  BifcouiAOSMXirr  of  Pdsdck  Pso- 
G*A»« — In  order  to  carry  out  further  the 
provisions  of  this  Act.  the  Secretary,  through 
the  Secretary  of  State,  shall  encourage — 

( 1 )  foreign  countries  to  provide  for  the 
conservation  of  flsh  or  wUdllfe  including 
endangered  species  and  threatened  species 
listed  pursuant  to  secUon  4  of  this  Act; 

(2)  the  entering  into  of  bilateral  or  multi- 
lateral agreements  with  foreign  countrle*  to 
provide  for  such  conservation;  and 

i3i  foreign  persons  who  directly  oc  In- 
dlrecUy  take  flsh  or  wildlife  In  foreign  coun- 
tries or  on  the  high  seas  for  imporutlon  into 
the  United  States  for  commercial  or  other 
purposes  to  develop  and  carry  out  with  such 
assistance  as  he  may  provide,  conservation 
practices  designed  to  enhance  such  ttah  or 
wUdllfe  and  their  habiut. 

( c )  Pbisontjd.  — After  consxUtatlon  with 
the  Secretary  of  State,  the  Secretary  may— 

(I )  assign  or  otherwise  make  available  any 
officer  or  employee  of  his  department  for  the 
purpose  of  cooperating  with  forwign  coun- 
tries and  international  organizations  In  de- 
veloping personnel  resources  and  programs 
which  promote  the  conservation  of  flsh  or 
wlldUfe:  and 

( a )  conduct  or  provide  financial  assistance 
for  the  educational  training  of  foreign  per- 
sonnel, in  this  country  or  abroad,  in  flsh. 
wUdllfe.  or  plant  management,  research  and 
law  enforcement  and  to  render  professional 
assistance  abroad  in  such  matters 

'd)  I^rvla»TICA■^o^f8— After  consulUUon 
with  the  Secretary  of  SUte  and  the  Secretary 
of  the  Treasury,  as  appropriate,  the  Secre- 
tary may  conduct  or  cause  to  be  conducted 
such  law  enforcement  Investigations  and 
research  abroad  as  he  deems  necessary  to 
carry  out  the  purposes  of  this  Act. 

1  e  t  CoNvxNTTON  Imflkmintation  —The 
President  is  authorised  and  directed  to  des- 
ignate appropriate  a<?encle8  to  act  as  the 
B^anagement  Authority  at  Authorities  and 
the  Scientific  Authority  or  Authorities  pur- 
suant to  the  Convention  The  agencies  so 
designated  shall  thereafter  be  authorized  to 
do  all  things  assigned  to  them  under  the 
Convention,  including  the  Issuance  of  per- 
mits and  oertlflcates  The  agency  designated 
by  the  President  to  communicate  with  other 
parties  to  the  Convention  and  with  the 
Secrerarlat  shall  also  be  empowered,  where 
appropriate,  in  consulUOon  with  the  SUte 
Department,  to  act  on  behalf  of  and  rep- 
Pewnt  the  United  States  In  aU  regards  as 
required  by  the  Convention.  The  President 
shal  also  designate  those  agencies  which 
shall  act  on  behalf  of  and  represent  the 
United  States  In  all  regards  as  required  by 
J^.*;.F''°''*""°°  °^  Nature  Protection  and 
WUdllfe  Preservation  in  the  Woetem  Hemi- 
sphere. 

P«ORlBrrKD    ACTS 

Sec  9  (a)  a«3cnAL.— (n  Except  as  pro- 
vided in  section  «(g)(a)  and  10  of  this  Act 
with  respect  to  any  endangered  species  of 
flsh  or  WUdllfe  listed  pursuant  to  section  4 
of  this  Act  it  U  unlawful  for  any  person  sub- 
ject to  the  jurisdiction  of  the  United  SUtas 


( Ai  Import  any  such  species  into,  or  export 
any  such  species  from  the  United  States- 

tt'.?'^^*  ^^"^  '^'^^  species  within  'the 
United  States  or  the  territorial  sea  of  the 
United  States: 

<C)   take  any  such  species  upon  the  high 


iD)  pouew.  seU.  deliver,  carrv.  transnort 
or  ship,  by  any  means  whatsoever,  any  such" 
^>ecies  taken  In  rtoUtlon  of  subparairanhs 
(B»  and  (Ck 

'E»  deliver,  receive,  carry,  transport,  or 
•hip   In  Interstate  or  foreign  commerce,   by 


any  means  whatsoever  and  In  the  course  of  a 
commercial  activity,  any  such  species; 

(P)  seU  or  offer  for  sale  In  Interstate  or 
foreign  commerce  any  such  spelces;  or 

(O)  violate  any  regulation  pertaining  to 
such  species  or  to  any  threatened  species  of 
flsh  or  wildlife  listed  pursuant  to  section  4  of 
this  Act  and  promulgated  by  the  Secretary 
pursuant  to  authority  provided  by  this  Act. 

(3)  Except  as  provided  in  sections  6(g)  (2) 
and  10  of  this  Act,  with  respect  to  any  en- 
dangered species  of  plants  listed  pursuant  to 
section  4  of  this  Act,  it  is  unlawful  for  any 
person  subject  to  the  Jurisdiction  of  the 
United  States  to — 

(A)  Import  any  such  species  Into,  or  ex- 
port any  such  species  from,  the  United 
States; 

(B)  deliver,  receive,  carry,  transport,  or 
ship  In  Interstate  or  foreign  commerce,  by 
any  means  whatsoever  and  in  the  course  of  a 
commercial  activity,  any  such  species; 

(C)  sell  or  offer  for  sale  in  interstate  or 
foreign  commerce  any  such  species;  or 

(D)  violate  any  regulation  pertaining  to 
such  species  or  to  any  threatened  species  of 
plants  Usted  pursuant  to  section  4  of  this 
Act  and  promulgated  by  the  Secretary  pur- 
suant to  authority  provided  by  this  Act. 

(b)  Spk-ixs  Hmj)  in  C*j>ttvttt  oa  Cow- 
raoLixD  ENvnoNMXKT  — The  provisions  of 
this  section  shall  not  apply  to  any  flsh  or 
wildlife  held  in  captivity  or  In  a  controlled 
environment  on  the  effective  date  of  this  Act 
If  the  purposes  of  such  holding  are  not  con- 
trary to  the  purposes  of  this  Act  ;  ex- 
cept that  this  subsection  shall  not  apply  In 
the  case  of  any  flsh  or  wUdllfe  held  In  the 
cour^  of  a  commercial  acavlty.  With  respect 
to  any  act  prohibited  by  this  section  which 
occurs  after  a  period  of  180  days  from  the 
effective  date  of  this  Act.  there  shaU  be  a 
rebuttable  presumption  that  the  flsh  or 
WUdllfe  Involved  In  such  act  was  not  held 
in  captivity  or  in  a  controlled  environment 
on  such  effective  date 

(c)  Viot.ATioi»  OP  Coiiry»imoN — (1)  It  is 
unUwfuJ  for  any  person  subject  to  the 
Jurisdiction  of  the  United  States  to  engage 
In  any  trade  In  any  specimens  contrary  to 
the  provisions  of  the  Convention,  or  to  pos- 
se«  any  specimens  traded  contrary  to  the 
provisions  of  the  Convention.  Including  the 
definitions  of  terms  in  article  I  thereof. 

(2)  Any  lmport,itlon  Into  the  United 
States  of  flsh  or  wildlife  shall,  if— 

(A)  such  flsh  or  wildlife  Is  not  an  en- 
dangered species  listed  pursuant  to  section  4 
of  this  Act  but  Is  listed  In  Appendix  n  to  the 
Convention. 

(B)  the  taking  and  exportaUon  of  such 
flsh  or  wildlife  is  not  contrary  to  the  pro- 
visions of  the  Convention  and  all  other  ap- 
pUcable  requirements  of  the  Convention 
have   been   satisfied. 

(C)  the  applicable  requirements  of  sub- 
sections (d)  (e).  and  (f)  of  this  section  have 
been  satisfied,  and 

(D)  such  Importation  is  not  made  In  the 
course  of  a  commercial  activity. 

be  presumed  to  be  an  Importation  not  In 
violation  of  any  provision  of  this  Act  or  any 
regulation  issued  pursuant  to  this  Act. 

(d)  Impokts  A>n)  Expoars— (i)  it  is  un- 
lawful for  any  person  to  engage  In  business 
as  an  Importer  or  exporter  of  flsh  or  wUdllfe 
(other  than  shellfish  and  fishery  producU 
which  (A)  are  not  listed  pur«\iant  to  section 
4  of  this  Act  as  endangered  species  or  threat- 
ened species,  and  (B)  are  Imported  for  pur- 
poses of  human  or  animal  consumption  or 
taken  In  waters  under  the  Jurisdiction  of  the 
United  SUtes  or  on  the  high  seas  for  recrea- 
tional purposes)  or  planto  without  flrst  hav- 
ing obtained  permission  from  the  Secretary. 

(2)  Any  person  required  to  obtain  permis- 
sion under  paragraph  (1)  of  this  subsection 
shall — 

(A)  keep  such  records  as  will  fuUy  and 
correctly  disclose   each   Importation  or  ex- 


portation of  flsh.  wUdlife,  or  plant,s  mad- 
by  him  and  the  subsequent  dlsposlti.jn  inAUe 
by  him  with  respect  to  such  flsh.  wUdllfe.  or 
plants. 

(B)  at  all  reasonable  times  upon  notice  by 
a  duly  authorised  represenUtlve  of  the  Sec- 
retary, afford  such  representative  access  to 
his  places  of  business,  an  opportunity  to 
examine  his  inventory  of  Imported  flsh.  wUd- 
llfe. or  plants  and  the  records  ret,u:red  to  be 
kept  under  subparagraph  (A)  of  this  para- 
graph, and  to  copy  such  records;  and 

(C)  file  such  reports  as  the  Secretary  may 
require. 

(3)  The  Secretary  shall  prescribe  such 
regulations  as  are  necessary  and  appropriate 
to  carry  out  the  purposes  of  this  subsection. 

(e)  Rn«oRTs  — It  is  urUawful  for  any  person 
Importing  or  exporting  fish  or  wUdllfe  (other 
than  shellfish  and  fishery  products  which 
(1)  are  not  listed  pursuant  to  section  4  of 
thU  Act  as  endangered  or  threatened  species, 
and  (2)  are  Imported  for  purposes  of  human 
or  animal  con-sumptlon  or  taken  in  waters 
under  the  Jurisdiction  of  the  United  States 
or  on  the  high  seas  for  recreational  pur- 
poses) or  plants  to  faU  to  file  any  declara- 
tion or  report  as  the  Secretary  deems  neces- 
sary to  facUltate  enforcement  of  this  Act 
or  to  meet  the  obligations  of  the  Convention. 

(f)  DsBiCNATioN  Of*  Ports.— ( 1 )  it  is  un- 
lawful for  any  person  subject  to  the  Juris- 
diction of  the  United  States  to  Import  Into 
or  export  from  the  United  States  any  flsh 
or  wildlife  other  than  sheUfish  and  fishery 
products  which  (A)  are  not  listed  pursuant 
to  section  4  of  this  Act  as  endangered  species 
or  threatened  species,  and  (B)  are  imported 
for  purposes  of  human  or  animal  consump- 
tion or  taken  in  waters  under  the  Jurisdic- 
tion of  the  United  States  or  on  the  high  seas 
for  recreational  purposes)  or  plants,  except 
at  a  port  or  ports  designated  by  the  Secretary 
of  the  Interior.  For  the  purpose  of  facUltat- 
Ing  enforcement  of  this  Act  and  reducing 
the  costs  thereof,  the  Secretary  of  the  Inte- 
rior, with  approval  of  the  Secretary  of  the 
Treasury  and  after  notice  and  opportunity 
for  public  hearing,  may.  by  regulation,  desig- 
nate ports  and  change  such  designations. 
The  Secretary  of  the  Interior,  under  such 
terms  and  conditions  as  he  may  prescribe, 
may  permit  the  Importation  or  exportation  at 
nondeslgnated  ports  in  the  interest  of  the 
health  or  safety  of  the  flsh  or  wUdllfe  or 
plants,  or  for  other  reasons  If.  In  his  discre- 
tion, he  deems  It  appropriate  and  consistent 
with  the  purpose  of  this  subsection 

(2)  Any  f>ort  designated  by  the  Secretary 
of  the  Interior  under  the  authorltv  of  sec- 
tion 4(d)  of  the  Act  of  December  5.  1969  (16 
vac.  fl8«cc-4(d) ) .  shall.  If  such  designation 
is  In  effect  on  the  day  t>efore  the  date  of  the 
enactment  of  this  Act,  be  deemed  to  be  a 
port  designated  by  the  Secretary  under  para- 
graph (1)  of  this  subsection  until  such  time 
as  the  Secretary  otherwise  provides. 

(g)  Violations —It  Is  unlawful  for  any 
person  subject  to  the  Jurisdiction  of  the 
United  States  to  attempt  to  commit.  soUclt 
another  to  commit,  or  cause  to  be  committed, 
any  offense  defined  in  this  section. 

SXCXPTIONS 

Sxc.  10  (a)  PxsMrrs — The  SecreUry  may 
p>ennlt.  under  such  terms  and  conditions  as 
he  may  prescribe,  any  act  otherwise  pro- 
hibited by  section  9  of  this  Act  for  sclentlflc 
purposes  or  to  enhance  the  propagation  or 
survival  of  the  affected  species. 

(b)  Hakdship  ExtMPTioNs. — (I)  If  any 
person  enters  Into  a  contract  with  respect  to 
a  species  of  flsh  or  wildlife  or  plant  before 
the  date  of  the  publication  In  the  Federal 
Register  of  notice  of  consideration  of  that 
species  as  an  endangered  species  and  the  sub- 
sequent listing  of  that  species  as  an  endan- 
gered species  pursuant  to  section  4  of  this 
.\ct  will  cause  undue  economic  hardship  to 
such  person  under  the  contract,  the  Secre- 
tary, In  order  to  minimize  such  hardship. 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42625 


may  exempt  such  person  from  the  applica- 
tion of  section  S(a)  of  this  Act  to  the  extent 
the  Secretary  deems  ^proprlate  If  such  per- 
son applies  to  him  for  such  exemption  and 
Includes  with  such  application  such  Informa- 
tion as  the  Secretary  may  require  to  prove 
such  hardship;  except  that  (A)  no  such 
exemption  shall  be  for  a  duration  of  more 
than  one  year  from  the  date  of  publication  In 
the  Federal  Register  of  notice  of  consider- 
ation of  the  species  concerned,  or  shall  apply 
to  a  quantity  of  flsh  or  wUdUfe  or  plants  In 
excess  of  that  specified  by  the  Secretary;  (B) 
the  one-yetu-  period  for  those  species  of  flsh 
or  wildlife  Usted  by  the  Secretary  as  endan- 
gered prior  to  the  effective  date  of  this  Act 
shall  expire  in  accordance  with  the  terms  of 
section  3  of  the  Act  of  December  5.  1969  (83 
Stat.  275);  and  (C)  no  such  exemption  may 
be  granted  for  the  importation  or  exporta- 
tion of  a  specimen  Usted  in  Appendix  I  of 
the  Convention  which  Is  to  be  used  In  a  com- 
mercial activity. 

(2)  As  used  In  this  subsection,  the  term 
"undue  economic  hardship"'  shall  Include, 
but  not  be  Umlted  to: 

(A)  substantial  economic  loss  resulting 
from  inability  caused  by  this  Act  to  per- 
form contracts  with  respect  to  species  of 
flsh  and  wildlife  entered  Into  prior  to  the 
date  of  publication  in  the  Federal  Register 
of  a  notice  of  consideration  of  such  species 
as  an  endangered  species; 

(Bi  substantial  economic  loss  to  persons 
who.  for  the  year  prior  to  the  notice  of 
consideration  of  such  species  as  an  endan- 
gered species,  derived  a  substantial  portion 
of  their  Income  from  the  lawful  taking  or 
any  listed  species,  which  taking  would  be 
made  unlawful  under  this  Act;  or 

(C)  curtailment  of  subsistence  taking 
made  unlawful  under  this  Act  by  persons  (1 1 
not  reasonably  able  to  secure  other  sources 
of  subsistence:  and  (11)  dependent  to  a  sub- 
stantial extent  up>on  hunting  and  fishing 
for  subsistence;  and  (lU)  who  must  engage 
In  such  curtailed  taking  for  subsistence  pur- 
poses. 

(3)  The  Secretary  may  make  further  re- 
quirements for  a  showing  of  undue  econom- 
ic hardship  as  he  deems  fit.  Exceptions 
granted  under  this  section  may  be  limited 
by  the  Secretary  In  his  discretion  as  to  time, 
area,  or  other  factor  of  appUcablllty. 

(e)  Noncx  And  Revibw. — The  Secretary 
shall  publish  notice  In  the  Federal  Register 
of  each  application  for  an  exemption  or  per- 
mit which  Ls  made  under  this  subsection. 
Each  notice  shall  invite  the  submission  from 
Interested  parties,  within  thirty  days  after 
the  date  of  the  notice,  written  data,  views, 
or  arguments  with  respect  to  the  application. 
Information  received  by  the  Secretary  as  a 
part  of  any  appUcatlon  shall  be  available  to 
the  public  as  a  matter  of  public  record  at 
every  stage  of  the  proceeding. 

(d)  Permit  and  Exxmption  Pouct. — The 
Secretary  may  grant  exceptions  under  sub- 
sections (a)  and  (b)  of  this  section  only  If 
he  finds  and  publishes  his  finding  in  the 
Federal  Register  that  (1)  such  exceptions 
were  appUed  fof  In  good  faith.  (2)  If  granted 
and  exercised  will  not  operate  to  the  dis- 
advantage of  such  endangered  species,  and 
(3)  will  be  consistent  with  the  purposes  and 
policy  set  forth  In  section  2  of  this  Act. 

(e)  ALASKA  Nattvxs. —  (1)  Except  as  pro- 
vided In  paragraph  (4)  of  this  subsection  the 
provisions  of  this  Act  shall  not  apply  with 
respect  to  the  taking  of  any  endangered 
species  or  threatened  species,  or  the  Impor- 
tation of  any  such  ^>ecle8  taken  pursuant  to 
this  section,  by — 

(A)  any  Indian,  Aleut,  or  Eskimo  who  Is  an 
Alaskan  Native  who  resides  in  Alaska:  or 

(B)  any  non-native  permanent  resident  of 
an  Alaskan  native  village; 

if  such  taking  Is  prtmarlly  for  subsistence 
purposes  Non -edible  by-products  of  species 
taken  pursuant  to  this  section  may  be  sold 


In  Interstate  commerce  when  n.ade  inuj  au- 
thentic nat.ve  articles  • ,'  ;.a:.dicraft,c  and 
clothing;  except  that  the  provlsione  of  this 
subsection  shal'i  not  apply  t*j  any  non-native 
resident  of  an  Alaskan  native  vUlage  found 
by  the  Secretary  Uj  be  not  prlmarUy  de- 
pendent upon  tiie  taking  of  fl-sh  and  wUd- 
llfe for  consumption  or  for  the  creation  and 
sale  of  authenuc  native  articles  of  handi- 
crafts and  clothing. 

(2)  Any  taking  under  this  subsection  may 
not  be  ttC(<implLshe>d  In  a  wasteful  manner. 

(3)  As  used  In  this  subsection — 

(I)  The  term  "subsistence "  Includes  selling 
any  edible  portion  of  flsh  or  wildlife  in  na- 
tive villages  and  towns  in  Alaska  for  native 
consumption  within  native  vUlages  or  towns; 
and 

(II)  The  term  "authentic  native  articles  of 
handicrafts  and  clothing"  means  Items  com- 
posed whoUy  or  In  some  significant  respect 
of  natural  materials,  and  which  are  produced, 
decorated,  or  fashioned  In  the  exercise  of 
traditional  native  handicrafts  without  the 
use  of  pantographs,  multiple  carvers,  or  other 
mass  copying  devices.  Traditional  native  han- 
dicrafts Include,  but  are  not  Umlted  to,  weav- 
ing, carving,  stitching,  sewing,  lacking,  bead- 
ing, drawing,  and  painting. 

(4)  Notwithstanding  the  provisions  of 
paragraph  (1)  of  this  subsection,  whenever 
the  Secretary  determines  that  any  species  of 
fish  or  wildlife  which  Is  subject  to  taking 
under  the  provisions  of  this  subsection  Is  an 
endangered  species  or  threatened  species, 
and  that  such  taking  materially  and  nega- 
tively affects  the  threatened  or  endangered 
species,  he  may  prescribe  regulations  upon 
the  taking  of  such  species  by  any  such 
Indian.  Aleut,  Eskimo,  or  non-Native  Alaskan 
resident  of  an  Alaskan  native  vUIage.  Such 
regulations  may  be  established  with  refer- 
ence to  species,  geographical  description  of 
the  area  Included,  the  season  for  taking,  or 
any  other  factors  related  to  the  reason  for 
establishing  such  regulations  and  consistent 
with  the  policy  of  this  Act.  Such  regiUatlons 
shaU  be  prescribed  after  a  notice  and  hear- 
ings In  the  affected  Judicial  dUtrlcts  of 
Alaska  and  as  otherwise  required  by  section 
103  of  the  Marine  Mammal  Protection  Act  of 
1972,  and  shall  be  removed  as  soon  as  the 
Secretary  determines  that  the  need  for  their 
Impositions  has   disappeared. 

PENALTBtS  AND     KNFORCXMINT 

Sec.  11.  (a)  Civn.  Penalttxs. — (1)  Any  per- 
son who  knowingly  violates,  or  who  know- 
ingly commits  an  act  in  the  course  of  a  com- 
mercial   activity    which    violates,    any    pro- 
vision of  this  Act,  or  any  provision  of  any 
permit  or  certificate  Issued  hereunder,  or  of 
any  regulation  Issued  In  order  to  Implement 
subsection   (a)(1)    (A).   (B).   (C).   (D),   (E). 
or    (F),    (a)(2)    (A).    (B).  or    (C).    (c),    (d) 
(other  than  a  regulation  relating  to  reccatl- 
keeplng  or  flllng  of  reports),   (f)   or  (g)   of 
section  9  of  this  Act.  may  be  assessed  a  clvU 
penalty  by  the  Secretary  of  not  more  than 
810.000  for  each  violation.  Any  person  who 
knowingly  violates,  or  who  knowingly  com- 
mits an  act  In  the  course  of  a  commercial  ac- 
tivity  which  violates,  any  provision  of  any 
other  regulation  Issued  under  this  Act  may 
be  assessed  a  clvU  penalty  by  the  Secretary 
of  not  more  than  $5,000  for  each  such  viola- 
tion. Any  person  who  otherwise  violates  any 
provision  of  this  Act.  or  any  regulation,  per- 
mit. Of  certlflcate  Issued  hereunder,  mav  be 
assessed  a  civil  penalty  by  the  Secretary  of 
not  more  than  $1,000  for  each  such  violation. 
No  penalty  may  be  assessed  under  this  sub- 
section unless  such  person  is  given  notice  and 
opportunity   for  a   hearing  with  req>ect  to 
such    violation.    Each    violation    shall    be    a 
separate  offense.  Any  such  clvU  penalty  may 
be  remitted  or  mitigated  by  the  Secretary 
Upon  any  faUure  to  pay  a  penalty  assessed 
under  this  subsection,  the  Secretary  may  re- 
quest the  Attorney  Oeneral   to  Institute  a 


ClvU  action  in  a  district  court  of  the  United 
States  for  any  district  In  which  such  per- 
son Is  found,  resides,  or  transacts  business  to 
collect  the  penalty  and  such  court  shall  have 
Jurisdiction  to  hear  and  decide  any  such 
action.  The  court  shall  hear  such  action 
on  the  record  made  before  the  Secretary  and 
shall  sustain  his  action  If  It  is  supported  by 
substantial  evidence  on  the  record  consid- 
ered as  a  whole. 

(2)  Hearings  held  during  proceedings  for 
the  assessment  of  clvU  penalties  authorized 
by  paragn^h  ( 1 )  of  this  subsection  shall  be 
conducted  In  accordance  with  section  654  of 
title  5,  United  States  Code  The  Secretary 
may  Issue  subpenas  for  the  attendance  and 
testimony  of  witnesses  and  the  production  of 
relevant  papers,  books,  and  documents,  and 
administer  oaths.  Witnesses  summoned  shall 
be  paid  the  same  fees  and  mileage  that  are 
paid  to  witnesses  in  the  courts  of  the  United 
States.  In  case  of  contumacy  or  refusal  to 
obey  a  subpena  served  upon  any  person  pur- 
suant to  this  paragraph,  the  district  court 
of  the  United  SUtes  for  any  district  In  which 
such  person  is  found  or  resides  or  transacts 
business,  upon  application  by  the  United 
States  and  after  notice  to  such  person,  ahaU 
have  Jurisdiction  to  Issue  an  order  requiring 
such  person  to  appear  and  give  testimony  be- 
fore the  Secretary  or  to  appear  and  produce 
documents  before  the  Secretary,  or  both,  and 
any  faUure  to  obey  such  order  of  the  court 
may  be  punished  by  such  court  as  a  con- 
tempt thereof. 

(b)  CTriminal  Violations. — (1)  Any  person 
wno  willfully  commits  an  act  which  violates 
any  provision  of  this  Act.  of  any  permit  or 
certlflcate  Issued  hereunder,  or  of  any  regu- 
lation Issued  In  order  to  implement  subsec- 
tion (a)(1)(A),  (C).  (D).  (E),  or  (P);  (a) 
(2)  (A) ,  (B) ,  or  (C) ,  (c) .  (d)  (other  than  a 
regulation  relating  to  recordkeeping  or  flllng 
of  reports,  (f),  or  (g)  of  section  9  of  this 
Act  shaU,  upon  conviction,  be  fined  not  more 
than  $20,000  or  Imprisoned  for  not  more  than 
one  year,  or  both.  Any  person  who  wlUfully 
commits  an  act  which  violates  any  provision 
of  any  other  regulation  issued  under  this 
Act  shall,  upon  conviction,  be  fined  not  more 
than  $10,000  or  imprisoned  for  not  more 
than  six  months,  or  both. 

(2)  The  head  of  any  Federal  agency  which 
has  issued  a  lease,  license,  permit,  or  other 
agreement  authorizing  the  use  of  Federal 
lands.  Including  grazing  of  domestic  Uve- 
stock,  to  any  person  who  Is  convicted  of  a 
criminal  violation  of  this  Act  or  any  regula- 
tion, permit,  or  certificate  issued  hereunder 
may  Immediately  modUy.  suspend,  or  revoke 
each  lease.  Ucense  permit,  or  other  agree- 
ment. Tht)  Secretary  shall  also  suspend  for 
a  period  of  up  to  one  year,  or  cancel,  any 
Federal  hunting  or  fishing  permits  or  stamps 
Issued  to  any  person  who  is  convicted  of  a 
criminal  violation  of  any  provision  of  this 
Act  or  any  regulation,  permit,  or  certificate 
issued  hereunder.  The  United  States  shaU 
not  be  Uable  for  the  payments  of  any  com- 
pensation, reimbursement,  or  damages  In 
connection  with  the  modification,  suspen- 
sion, or  revocation  of  any  leases,  licensee, 
permits,  stamps,  or  other  agreements  pur- 
suant to  this  section. 

(c)  District     Coust    Jitxisdiction The 

several  district  courts  of  the  United  States 
including  the  courts  enumerated  in  section 
460  of  title  28.  United  States  Code,  shall 
have  Jurisdiction  over  any  actions  arising 
under  this  Act.  For  the  purpose  of  this  Act 
American  Samoa  shall  be  Included  within  the 
Judicial  district  of  the  District  Court  of  the 
United  States  for  the  District  of  HawalL 

(d)  RxwAXDS. — Upon  the  recommendation 
of  the  Secretary,  the  Secretary  of  the  Tr«as- 
ury  Is  authorized  to  pay  an  amount  equal  to 
one-half  of  the  c!vU  penalty  or  fine  paid, 
but  not  to  exceed  $2,500.  to  any  person  who 
furnishes  Information  which  leads  to  a  find- 
ing of  ClvU  violation  or  a  conTlctlon  of  a 


12626 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  197S 


crimloAl  vlolAtton  of  any  provision  of  this 
Act  or  kny  raguJ*tion  or  p«rmlt  tasuad  thsrs- 
undsr.  Any  officer  or  eiaploy««  of  the  United 
States  oc  of  sny  State  or  locai  goTwrninent 
who  furnishes  information  or  renders  serr- 
lc«  In  the  performance  of  his  official  duties 
ahaU  not  be  eligible  for  payment  under  this 
section. 

(e)  KNTORCKiajrr. — (I)  The  provisions  of 
this  Act  and  any  regulations  or  permits  la- 
sued  pursuant  thereto  ahaU  be  enforced  by 
the  Secretary,  the  Secretary  of  the  Treaaxiry. 
or  the  Secretary  of  the  Department  In  which 
the  Coast  Ouard  Is  operating,  or  all  such 
Secretaries.  Each  such  Secretary  may  utilise 
by  agreement,  with  or  without  reimburse- 
ment, the  personnel,  services,  and  facilities 
of  any  other  Federal  agency,  or  any  State 
agency  for  purposes  of  enforcing  this  Act. 

( a )  The  Judges  of  the  district  courts  of  the 
United  States  and  the  United  States  magis- 
trates may.  within  their  resj>ectlve  Jurisdic- 
tions, upon  proper  oath  or  affirmation  show- 
ing probable  cause.  Issue  such  warrants  or 
other  process  as  may  be  required  for  enforce- 
ment of  this  Act  and  any  regulation  issued 
thereunder. 

(3 1  Any  person  authorized  by  the  Secre- 
tary, the  Secretary  of  the  Treasxiry. 
or  the  Secretary  of  the  Department  In 
which  the  Coast  Ouard  Is  operating, 
to  enforce  this  Act  may  detain  for  Inspec- 
tion aud  Inspect  any  package,  crate,  or  other 
container,  including  its  contents,  and  all 
accompanying  documents,  upon  Unportatton 
or  exportation.  Such  persoii  may  execute  and 
serve  any  arrest  warrant,  search  warrant,  or 
other  warrant  or  cIvU  or  criminal  process 
issued  by  any  officer  or  court  of  oompeteat 
Jurisdiction  for  enforcement  of  this  Act. 
Such  person  so  authorised  may  search  and 
setae,  with  or  without  a  warrant,  as  author- 
ized by  law  Any  flah.  wildlife,  property,  or 
Item  so  seized  shall  Cm  held  by  any  person 
authorized  by  the  Secretary,  the  Secretary 
of  the  Treasury,  or  the  Secretary  of  the  De- 
partment In  which  the  Coast  Ouard  Is  op- 
erating pending  dispoaltlon  of  clvU  or 
criminal  proceedings,  or  the  InsUtutlon  of 
an  action  In  rem  for  forfeiture  of  such  flsh. 
wUdUfe.  property,  or  item  pursuant  to  para- 
graph (4)  of  this  subsection,  except  that  the 
Secretary  may.  in  lieu  of  holding  such  dsh. 
wildlife,  property,  or  Item,  permit  the  owner 
or  (-onalgnee  to  post  a  bond  or  other  surety 
■atlsfactory  to  the  Secretary 

(4)  (A)  All  fish  or  wUdllfe  or  plAnU  taken. 
posMsaed.  sold,  purchased,  offered  for  sale 
or  purchase,  transported,  delivered,  received. 
cjuTled.  shipped,  exported,  or  imported  con- 
trary to  the  provisions  of  this  Act.  any  reg- 
ulation made  pursuant  thereto,  or  any  per- 
mit or  oertlflcate  Issued  hereunder  shall  be 
•ubJwCt   to  forfeiture   to   the   United   States 

(B)  All  guns,  trapa.  nets,  and  other  equlp- 
mant.  veaaala.  vablclea,  aircraft,  and  other 
rrwann  of  transportation  uaed  to  aid  the  tak- 
Inc.  pri— iisslim  selling,  puichaalnc.  offanng 
for  sale  or  purchase,  transporting,  deltrertnc 
receiving,  carrying,  ihtpping.  exporting,  or 
Importing  of  any  flsh  or  wildlife  or  plants  In 
violation  of  this  Act.  any  raguJaUon  mad* 
pursuant  thereto,  or  any  permit  or  cartUl- 
cata  Issued  tberaunder  shaU  be  subject  to 
forfeiture  to  the  United  Statea  upon  oon- 
vtctlOD  of  a  cnmlnal  violation  pursuant  to 
section  11(b)  (1)  of  this  Act 

(5)  AU  provisions  of  law  relating  to  the 
setBure.  forfeiture  and  condemnation  ot  a 
vessel  for  violation  of  the  customs  laws,  the 
disposition  of  such  vessel  or  the  proceeds 
from  the  sale  thereof,  and  the  remission  or 
mingmtlfi  of  such  forfeiture,  shall  apply  to 
Um  aelsuras  and  forfetturaa  incurred,  or  al- 
ls(cd  to  have  been  incurred,  under  the  pro- 
vtetons  a<  this  Art.  insofar  as  such  provisions 
at  law  are  applicable  and  not  Inconsistent 
with  the  provisions  of  this  Act:  except  that 
aD  powers,  rights,  and  dnUes  conferred  or 
Imposed  by  the  custotns  laws  upon  any  offi- 
osr  or  employee  of  the  Treasury  Depsirtment 


ahaU.  for  the  purpose  of  this  Act,  be  exer- 
cised or  performed  by  the  Secretary  or  by 
such  persons  as  he  may  designate 

(f)  R»oxnjiTToirs — The  Secretary,  the  Sec- 
retary of  the  Treasury,  and  the  Secretary  of 
the  Department  In  which  the  Coast  Ouard  Is 
operating,  are  authorized  to  promulgate  such 
regulations  as  may  be  appropriate  to  enforce 
this  Act.  and  charge  reasonable  fees  for  ex- 
penses to  the  Oovemment  connected  with 
permits  or  certificates  authortaed  by  this  Act 
Including  processing  applications  and  raa- 
sonable  Inspections,  and  with  the  transfer, 
board,  handling,  or  storage  of  flsh  or  wUdllfe 
or  plants  and  evidentiary  Items  seised  and 
forfeited  under  this  Act.  All  such  fees  col- 
lected pursuant  to  this  subsection  shall  be 
deposited  In  the  Treasury  to  the  credit  of 
the  appropriation  which  Is  current  and 
chargeable  for  the  cost  of  furnishing  the 
services.  Appropriated  funds  may  be  ex- 
pended pending  reimbursement  from  parttea 
in  intereet 

(g)  CmzjtN  Strrrs — (1)  Kxcept  as  pro- 
vided In  paragraph  (3)  of  this  subaectloa 
any  person  may  commence  a  clvU  suit  on  his 
own  behalf — 

(A)  to  enjoin  any  person.  Including  the 
United  States  and  any  other  governmental 
Instrumentality  or  agency  (to  the  extent  per- 
mitted by  the  eleventh  amendment  to  the 
Constitution),  who  Is  alleged  to  be  In  viola- 
tion of  any  provision  of  this  Act  or  regula- 
tion Issued  under  the  authority  thereof:  or 

(B)  to  compel  the  Secretary  to  apply,  pur- 
suant to  section  8(g)  (3)  (B)  (U)  of  this 
Act,  the  prohibitions  set  forth  In  or  author- 
ized pursuant  to  section  4(d)  or  section  0(a) 
(1)  (B)  of  this  Act  with  respect  to  the  taking 
of  any  resident  endangered  species  or  threat- 
ened species  within  any  State. 

The  district  courts  shaU  have  Jurisdiction, 
without  regard  to  the  amount  in  controversy 
or  the  clOcenshlp  of  the  parties,  to  enforce 
any  such  provision  or  regulation,  as  the  case 
may  be  In  any  clvU  suit  commenced  under 
subparagraph  (B)  the  district  court  shall 
cooopel  the  Secretary  to  apply  the  protubiuon 
sought  If  the  court  finds  that  the  allegaUon 
that  «n  emergency  exists  Is  supported  by  sub- 
stantial evidence 

(3)  (Ai  No  action  may  be  commenced 
under  subparagraph  (1)  (A)  of  this  section — 

(I)  prior  to  sixty  day*  after  written  notice 
of  the  violation  has  been  given  to  the  Secre- 
tary, and  to  any  alleged  violator  of  any  such 
provision  or  regiuatlon: 

(II)  If  the  Secretary  has  commenced  action 
to  Impose  a  penalty  pursuant  to  subsection 
I  B I  of  this  section :  or 

(III)  If  the  United  States  has  commenced 
and  Is  diligently  prosecuting  a  crtmlnal  ac- 
tion In  a  court  of  the  United  StatM  or  a 
State  to  redress  a  violation  of  any  such  pro- 
vision or  regulation 

I  B I  No  action  may  be  cotnmenced  under 
subparagraph  (1)  (B)  of  this  section — 

(I)  prior  to  sixty  days  after  written  notice 
has  been  given  to  the  Secretary  setting  forth 
the  reasons  why  an  emergency  Is  thought  to 
exist  with  respect  to  an  endangered  species 
or  a  threatensd  species  in  tbs  Stats  con- 
cerned: or 

<  11)  If  the  Secretary  has  commencsd  and  Is 
diligently  prosecuting  action  under  section 
Sig)  i3i  (B>  I  til  of  this  Act  to  determine 
wbsttier   any   such   emergency   exM«. 

(3)  (A)  Any  suit  under  this  subsection  may 
be  brought  m  the  Judicial  district  In  which 
the  violation  occurs 

(B)  In  any  such  suit  under  this  subsection 
in  which  the  United  States  Is  not  a  party, 
the  Attorney  General,  at  the  request  of  the 
Secretary,  may  intervene  on  behalf  of  the 
United  States  as  a  matter  of  right 

1 41  The  court.  In  Issuing  any  final  order 
m  any  suit  brought  punuant  to  paragraph 
1 1 1  of  thU  subasctlon.  n>ay  award  costs  of 
Uitgatton  (Including  reasonable  attomsy  and 
expert  witness  f ess  i    to  any  party,  whenever 


the      court     determines     such     award      la 
appropriate 

(S)  The  Injunctive  relief  provided  by  this 
subsection  shall  not  restrict  any  right  which 
any  person  (or  class  of  persons)  may  have 
under  any  statute  or  common  law  to  seek 
enforcement  of  any  standard  or  limitation  or 
to  seek  any  other  relief  (including  relief 
against  the  Secretary  or  a  State  agency.) 

(h)  CooaotNATioN  Wrrii  Othek  Laws.— The 
Secretary  of  Agriculture  and  the  Secretary 
shall  provide  for  appropriate  coordination  of 
the  admlnlstraUon  of  this  Act  with  the  ad- 
ministration of  the  animal  quarantine  laws 
(31  Uac.  lOl-lOS  lll-13fib.  and  613-614) 
and  section  306  of  the  Tariff  Act  of  IWO  (19 
U.S.C.  1306).  Nothing  In  this  Act  or  any 
amendment  made  by  this  Act  shall  be  con- 
strued as  superseding  or  limiting  In  any  man- 
ner the  functions  of  the  Secretary  of  Agri- 
culture under  any  other  law  relating  to  pro- 
hibited or  restricted  ImporUUons  or  posses- 
sion of  animals  and  other  articles  and  no 
proceeding  or  determination  under  this  Act 
shall  preclude  any  proceeding  or  be  consid- 
ered determinative  of  any  Issue  of  fact  or  law 
In  any  proceeding  under  any  Act  adminis- 
tered by  the  Secretary  of  Agriculture.  Nothing 
In  this  Act  shall  be  construed  as  superseding 
or  limiting  in  any  manner  the  functions  and 
responsibilities  of  the  Secretary  of  the  Treas- 
ury under  the  Tariff  Act  of  1930.  Including, 
without  limitation,  section  637  of  that  Act 
(10  use  1837).  relating  to  the  Importation 
of  wuailfe  taken,  killed,  possessed,  or  ex- 
ported to  the  United  SUtes  In  violation  of 
the  laws  or  regulations  of  a  foreign  country. 
DroAMOKaxD  puurrs 

8«c.  13.  The  Secretary  of  the  Smithsonian 
InsUtutlon.  In  conjunction  with  other  af- 
'•«*•<*  agencies,  u  authorlnd  and  directed 
to  review  ( 1 )  species  of  plants  which  are  now 
or  may  become  endangered  or  threatened 
and  (3)  methods  of  adequately  conserving 
such  species,  and  to  report  to  Congress,  with- 
in one  year  after  the  date  of  the  enactment 
of  this  Act.  the  results  of  such  review  In- 
cluding reconunendatlons  for  new  legisla- 
tion or  the  amendment  of  existing  legisla- 
tion 

coNrosMXKO  AMKifOMcirra 

8k:  13  (a)  Subsection  4(c)  of  the  Act  of 
October  16.  1066  (80  Stat  938.  16  UB.C. 
6fl8dd(c)).  Is  further  amended  by  revising 
the  second  sentence  thereof  to  read  as  fol- 
lows: "With  the  exception  of  endangered 
spectea  and  threatened  species  listed  by  the 
Secretary  pursuant  to  section  4  of  the  En- 
dangered Species  Act  of  1073  in  States  whsrs- 
In  a  cooperative  agreement  does  not  exist 
pureuant  to  section  6(c)  of  that  Act,  nothing 
In  this  Aot  shall  be  oonstrued  to  authorize 
the  Secretary  to  control  or  regulate  hunting 
or  fishing  of  resident  fish  and  wildlife  on 
lands  not  within  the  system  " 

(b)  Subssctlon  10(a)  of  the  Ulgratory 
Bird  Conaervatlon  Act  (4fi  Stat  1334.  16 
UB.C  7iai(a)  )  and  subsection  401(a)  of  the 
Act  of  June  15.  1935  (40  Stat  383,  16  U£,C 
716a(a)).  are  each  amended  by  striking  out 
"threatened  with  extinction."  and  inserting 
in  lieu  thereof  the  following  "listed  pur- 
suant to  section  4  of  the  Endangered  Species 
Act  of  1073  as  endangered  species  or  threat- 
ened spades,". 

(c)  Section  7(a)(1)  of  the  Land  and  Water 
Conservation  Fund  Act  of  1966  (16  V&C. 
4401 — e(a)(l))    Is  amended  by  striking  out: 

"TKEKAmrKD    Srscixs  — Par   any    national 
area  which  may  be  authorized  for  the  pree- 
ervatlon  of  species   of  fish   or  wildlife  that 
are  threatened  with  extinction." 
and  Inserting  in  lieu  thereof  the  following: 

"EwnANcnum  Spxciks  Ai>n>  TKXXATurxD 
Sfxcibb. — For  lands,  watsn.  or  interests 
therein,  the  acquisition  of  wT.leh  Is  »  :tr.  .r- 
Izsd  imdsr  aaetton  8(a)  of  the  Eri4a.i<f«r«wi 
Species  Act  ot  1078.  needed  for  the  purp<j«t«> 
of  oonasrving  endangered  or  threatened 
apaclss  of  flsh  or  wildlife  or  plants." 


December  J9,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


4262 


(d)  The  first  sent«nce  of  seftlon  2  of  the 
Act  of  September  28.  itt62,  ac  amended  1 78 
8Ut  653,  xr,  rsr  4fl0k-l),  i.c;  an.eiided  U, 
read  &8  follows 

"The  Secretary  is  authorized  to  acquire 
areas  of  land,  or  InterestR  therein,  which  are 
suitable  for — 

"(1)  IncldeiiU;  fish  and  wlld]lfe-orlent»d 
recreational  deve;  .pment, 

"(3)    the  prot^-llon   of   tiatura;    rpsources, 

"(3)  the  cons<'rvatl()K  of  endangered  spe- 
Clss  or  threatened  species  U.sted  by  the  S«< - 
retary  puniuaiit  \o  se<-;ion  4  of  the  Endan- 
gered Species  Act  <jf  1U73,  or 

4  I  ca.T^ing  out  two  or  more  of  the  pur- 
poKeF  set  forth  In  pars+jraph?  :  i  through 
(3)  of  this  section,  and  are  adjacent  to,  or 
within,  the  said  coa-ierratlrm  area-s.  ei-ept 
that  the  acquisition  of  any  land  or  Interest 
therein  pursuant  t<.>  this  section  shaJl  bo  ac- 
complished only  with  such  funds  aa  may 
be  appropriated  thprefor  by  the  Conjcn^ss 
or  donated  for  s\ich  purp<i«e'i.  hut  'Xich  prcp- 
erly  shall  not  be  acquired  with  funds  ob- 
tained from  the  sale  of  Federal  migratory 
bird   hunting  stamps." 

(e)  The  Marine  Mammal  Protection  Act  of 
1073  (16  UJ3.C.  1361-1407)  Is  amended— 

(1)  by  striking  out  "Endangered  Species 
Oonaervatton  Act  of  1969"  In  section  3(1)  (B) 
thereof  and  Inserting  in  lieu  thereof  the  fol- 
lowing:   "Endangered  Species  Act  of   1073"; 

(3)  by  striking  out  "pursuant  to  the  En- 
dangered Species  Conservation  Act  of  19fl8" 
In  section  101(a)(3)(B)  thereof  and  insert- 
ing In  lieu  thereof  the  following :  "or  threat- 
ened species  pursuant  to  the  Endangered 
Spec  lee  Act  of  1973"; 

(3)  by  striking  out  "endangered  under  the 
Endangered  Species  Conservation  Act  of 
1969"  In  section  102(b)(3)  thereof  and  in- 
serting In  lieu  thereof  the  following:  "an  en- 
dangered species  or  threatened  species  pursu- 
ant to  the  Endangered  Species  Act  of  1973"; 
and 

(4)  by  striking  out  "of  the  Interior  such 
revUloxis  of  the  Endangered  Species  List,  au- 
thorized by  the  Endangered  Species  Con- 
servaUon  Act  of  1968."  In  section  302(a)(6) 
thereof  and  Inserting  In  lieu  thereof  the  fol- 
lowing: "such  revisions  of  the  endangered 
q>ecles  list  and  threatened  species  list  pub- 
lUhed  pursuant  to  section  4(c)  (I)  of  the  En- 
dangered Speclee  Act  of  1973", 

(f)  Section  3(1)  of  the  Federal  Environ- 
mental Pesticide  Control  Act  of  1973  (Public 
Law  93-616)  U  amended  by  striking  out  the 
words  "by  the  Secretary  of  the  Interior  un- 
der Public  Law  91-135"  and  Inserting  In 
lieu  thereof  the  words  "or  threatened  by  the 
Secretary  piu^uant  to  the  Endangered 
Species  Act  of  1973". 

■rpcALxa 
Sbc.  14.  The  Endangered  Species  Conserva- 
tion Act  of  1969  (sections  1  through  3  of  the 
Act  of  October  16.  1966.  and  aectlotjs  1 
through  6  of  the  Act  of  December  5.  1969."46 
vac   668aa — 668cc-6).  Is  repealed.  \ 

ACTHoaiZATTON    OF    APPBOPHLATIONS 

Sic  16.  Except  as  authorized  in  section  6 
of  this  Act.  there  are  authorized  to  be  ap- 
propriated— 

(A)  not  to  exceed  $4,000,000  for  fiscal  year 
1974.  not  to  exceed  $8,000,000  for  fiscal  year 
1976  and  not  to  exceed  $10,000,000  for  fiscal 
year  1976.  to  enable  the  Department  of  the 
Interior  to  carry  out  such  functions  and 
responsibilities  as  it  may  have  been  given 
under  this  Act;  and 

(B)  not  to  exceed  $2,000,000  for  fiscal  year 
1974.  $1,500,000  for  fiscal  year  1976  and  not 
to  exceed  $3,000,000  for  fiscal  year  1976,  to 
enable  the  Department  of  Commerce  to  carry 
out  such  functions  and  res|>onslbllltles  as  It 
may  have  been  given  under  this  Act 

xrr xcTivi,  dat* 
Sxc.  16.  ThU  Act  shall  take  effect  on  the 
date  of  Its  enactment. 


MMINF       MAMMAL      FEOTK-TION      ACT      OF       197» 

Sic  17  Except  as  otherwise  provided  in 
this  A<n.  no  pnjvlaion  of  this  Act  shall  take 
precedence  over  any  more  restrictive  confllct- 
ing  provision  of  the  Marine  Mammal  Protec- 
tion Act  of  1972 

And  the  Hi  case  agree  to  the  same 

That  the  .Se:.Bte  recede  from  Its  disagree- 
ment to  the  amendment  of  the  Hccose  to 
the  tlUe  of  the  bUl.  and  agree  to  the  .«tme 
with   an   amendment   as   follows 

In  lleo  of  the  matter  proposed  to  be  In- 
se.'-ied  by  the  amendment  of  the  House  to  the 
t:i:e  of  the  bUI,  Insert  the  following-  "An 
Act  to  pr<:)vide  for  the  conservation  of  en- 
dangered av.d  threatened  species  of  flsh  wild- 
life, and   p.aril.s    and   for  other  purpose-s  ' 

An<^  the   Ho  ;.se   agree  to  the   same 
LioNOB  K    Strr-LrvAN, 
John  D  DrNCXLi. 

Gsoacx  A    OCXSDLING. 

Managers  on  the  Part  of  the  House. 

Philip  A  Haxt, 

John  V.  Tonnxt, 

TxD  Htxvfns. 

FliANK  E   Moss. 

MA*i«w  W.  Cook. 
Managert  on  the  Part  of  the  Senate. 

Joint   Explanatoet    Stattmen-t   or  thx 

COIUUTTBZ    OF    CONVERTNCX 

The  managers  on  the  jsart  of  the  House 
and  the  Senate  at  the  conference  on  the 
disagreeing  votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bill 
(S.  1083)  to  provide  for  the  conservation, 
protection,  restoration,  and  propagatton  of 
threatened  and  endangered  species  of  flah, 
wUdllfe.  and  plants,  and  for  other  purposes 
submit  the  following  Joint  statement  to  the 
House  and  the  Senate  In  explanation  of  the 
effect  of  the  action  agreed  upon  by  the 
managers  and  recommended  In  the  accom- 
panying conference  report: 

The  Hou*e  struck  out  all  of  the  Senate  bill 
after  the  enacting  clause  and  Inserted  a  sub- 
stitute amendment.  The  committee  of  con- 
ference has  agreed  to  a  substitute  for  both 
the  Senate  bill  and  the  House  amendment. 
Except  for  technical,  clarifying  and  con- 
forming changes,  the  following  statement 
explains  the  resolution  of  differences  be- 
tween the  Senate  bill  and  the  House  amend- 
ment thereto. 

PmOVISIONS     OF     THX     COKFXRCNCZ     STTBSTTTtrr* 

4»  Section  3.  Deflnitiona 

The  Senate  bUl  contained  language  de- 
fining the  term  'conservation  and  manage- 
ment" as  these  concepts  relate  to  endan- 
gered species:  the  House  bill  did  not.  In 
view  of  the  varying  responsibilities  assigned 
to  the  administering  agencies  In  the  bill. 
the  term  was  redefined  to  Include  generally 
the  kinds  of  activities  that  might  be  en- 
gaged in  to  improve  the  status  of  endangered 
and  threatened  species  so  that  they  would 
no  longer  require  special  treatment.  The 
^concept  of  conservation  covers  the  full 
spectrum  of  such  activities:  from  total 
"hands-off"  policies  involving  protection 
from  harassment  to  a  careful  and  Intensive 
program  of  control  In  extreme  circum- 
stances, as  where  a  given  speclee  exceeds  the 
carrying  capacity  of  Its  particular  ecosystem 
and  where  this  pressure  can  be  relieved  in 
no  other  feasible  way.  this  "conservatic  n" 
might  Include  authority  for  carefully  con- 
troUed  taking  of  surplus  memberB  of  the 
species.  To  state  that  this  possibility  exists, 
however.  In  no  way  Is  Intended  to  suggest 
that  this  extreme  situation  Is  likely  to  oc- 
cur— It  la  Just  to  say  that  the  authority  exists 
In  the  unlikely  event  that  It  ever  becomes 
needed. 

The  Senate  added  an  exception  allowing  an 
exclusion  from  the  protection  provided  by 
the  Act  where  an  otherwise  endangered  or 


threatened  species  of  Insect  presented  an 
■ve.-whelmlng  and  overr:dlng  risk  to  man; 
the  House  had  no  such  exception.  The  oon- 
rprees  accepted  the  Senate  language  with  a 
technical  change,  acknowledged  that  the 
likelihood  of  this  exception  ever  being  used 
was  vanlshlngly  small  h  ;t  being  unwUllng  to 
•le  the  Secretary's  hands  If  si;ch  an  xinllkely 
event  •«-ere  ever  to  come  to  pass. 

Also  added  to  the  section  was  a  new  defini- 
tion of  "commercial  activity",  to  delineate 
the  types  of  activities  which  would  qualify 
for  special  treatme.-it  under  the  Act  It  In- 
cludes t.-adefi  a:,d  exchanges  of  animals  or 
products  from  those  animals  wherever  those 
trades  or  exchanges  are  undertaken  In  the 
pursuit  of  any  gain  or  profit. 

There  was  considerable  discussion  In  the 
conference  as  to  the  proper  assignment  of 
responslbUltles  between  the  Departmenu  of 
Oommerce  and  the  Interior  with  respect  to 
marine  species,  general  authorltv  for  the 
management  of  which  had  been  transferred 
to  the  Department  of  Commerce  under  Re- 
organization Plan  No  4  of  1970.  The  roles 
of  the  Departments  had  not  been  specifically 
set  out  In  either  bill,  whereas  the  legislative 
history  of  the  bills  Included  much  language 
that  was  ambiguous  and  some  that  was  con- 
tradictory. The  conferees  re6<rived  the  Issue 
by  placing  general  management  and  regula- 
tory responsibility  for  such  species  In  the 
Department  of  Commerce,  in  most  respects 
parallel  to  that  which  has  resided  in  the  In- 
terior Department  for  other  species  of  flsh 
and  wildlife. 

The  physical  act  of  maintaining  the  list 
Is  In  the  Department  of  the  Interior.  That 
Department  continues  to  be  solely  responsi- 
ble for  determining  of  status  of  species  not 
assigned  to  Commerce  under  the  1970  Reor- 
ganization Plan.  If  Commerce  conciudes 
that  any  species  under  its  authority  should 
be  put  on  the  list  of  endangered  or  threat- 
ened species,  or  that  any  such  species  now 
listed  as  threatened  should  be  relisted  as 
endangered.  It  may  take  the  necessary  steps 
under  Section  4  and  then  Inform  the  Secre- 
tary, who  wUl  promptly  and  automatically 
revise  the  lists  under  his  contrcrf.  If  Com- 
merce concludes,  on  the  other  hand,  th*t 
.species  should  be  taken  off  the  present  or  any 
later  list  or  changed  In  status  from  en- 
dangered to  threatened.  It  must  so  rectxn- 
mend  to  Interior,  after  having  taken  the 
necessary  procedural  steps:  Interior  may  con- 
cur, In  which  case  the  lists  will  be  revised  ac- 
cordingly, or  It  may  disagree.  In  which  case 
no  action  will  t*  taken  unless  and  until  the 
deadlock  Is  subsequently  broken. 

The  Secretary  of  the  Interior  will  continue 
to  have  sole  authority  to  designate  ports  of 
entry  under  Section  9(f)  of  the  blU  and  to 
handle  the  processing  of  imported  and  ex- 
ported goods.  It  Is  expected  that  there  wUl 
be  adequate  coordination  with  the  Depart- 
ment of  Commerce  In  order  to  see  that  no 
violations  of  the  law  wUl  take  place  with 
respect  to  the  species  over  which  Commerce 
has  Jurisdiction.  The  Secretary  of  the  Interior 
will  also  continue  to  have  sole  responalbUlty 
for  the  responsibilities  outlined  In  Section  5 
of  the  Act,  dealing  with  land  acquisition 
with  funds  from  the  Land  and  Water  Con- 
servation Act.  In  all  other  respects,  the  re- 
sp>ons;bUlties  and  authorities  for  different 
species  will  be  controlled  by  the  1970  Re- 
organization Plan,  except  insofar  as  the 
agencies  may  themselves  later  elect  to  ad- 
just their  responsibilities  by  mutual  agree- 
ment. When  and  if  a  Department  of  Natural 
Resources  is  ever  created,  then  of  course 
these  two  lines  of  authority  will  merge  and 
this  problem  will  cease  to  exist.  In  this  re- 
gard, the  conferees  expect  that  every  effort 
will  be  made  by  both  agencies,  and  Indeed 
all  agencies  of  government,  to  ellmlnata 
wasteful  duplication  of  effort  and  unneces- 
sary dual  regulatory  programs. 


42628 


CONGRESSIONAL  RECORD— HOUSE 


Section  4.  Determination  of  endangered 

rpeciea  and  t^reatened  rpecita 
Prior  to  determining  the  status  of  *  given 
species,  both  bills  require  the  Secretary  to 
engage  In  extensive  consultatlona  with  all 
affected  parties  In  addition  the  Senate  bill 
required  consultation  with  a  special  Advis- 
ory Committee  created  for  that  purpose:  the 
House  had  no  such  body  The  conferees 
agreed  upon  language  which  eliminated  the 
need  for  such  a  body,  by  requiring  special 
notification  of  the  Governor  of  each  state 
within  which  the  species  under  consideration 
la  then  known  to  occur,  simultaneous  with 
public  notification  that  such  a  review  was 
In  process,  and  requiring  a  minimum  of  90 
days  for  the  state  to  respond  unless  that 
period  was  shortened. 

If  a  given  species  were  found  and  taken  In 
two  or  more  states  each  state  should  be  con- 
sulted: In  the  case  of  sn  emergency  the 
Secretary  could,  upon  the  agreement  of  all. 
or  with  respect  to  any  Individual  state  with 
the  consent  of  the  Governor  of  that  state, 
declare  the  existence  of  that  emergency  and 
publish  appropriate  regulations,  as  provided 
in  the  regulations  subsection.  The  comments 
of  the  state  would  have  to  be  published  in 
summary  form  prior  to  the  time  the  Sec- 
retary made  his  final  determination. 

The  Senate  bill  followed  In  part  and  dif- 
fered In  part  from  the  otherwise  controlling 
Administrative  Procedures  Act;  the  House 
V^*>'"  did  not  discuss  the  issue  and  thereby 
adopted  the  APA  Some  apprehensions  were 
expressed  by  the  enforcement  agencies  that 
the  variations  required  from  normal  practice 
might  make  day-to-day  operations  extremely 
complicated  WhUe  little  disagreement  was 
expressed  In  conference  as  to  the  ultimate 
objectives  of  the  Senate  provision  of  notice 
of  proposed  actions,  coupled  with  an  oppor- 
tunity for  full  public  participation,  the 
means  which  had  been  proposed  was  criti- 
cized as  unnecessarily  cumbersome 

The  conferees  rewrote  Section  9  of  the  Sen- 
»t«  bill  and  included  It  as  subsection  4(f) 
The  new  subsection  extends  the  period  of 
public  notice,  prflvides  for  discretionary  hear- 
ings,   and    establishes    procedures    whereby 
emergency  action  may  be  uken  for  a  short 
period,  which  period   may  be  extended  onlv 
If  the  Secretary  Later  goes  through  the  pre- 
scribed regulatory  procedures.  The  subsection 
also  requires  the  Secretary  to  state  in  detail 
the  basis  for  proposed  regulations,  and  the 
reaaon  for  denial  of  requested  hearings 
Section  5.  Land  acquisition 
Any  effective  program  for  the  conservation 
of   endangered   species   demands   that   there 
be  adequate  authority  vested  in  the  program 
managers  to  acquire  habitat  which  Is  critical 
U>   the   sxirvival   of   thoee   species    Both   the 
Houae   and    the   Senate   bills   provided   such 
authority,  but  the  Senate  bill  restricted  that 
authority    to    habitat    for    flsh    and    wildlife 
alone.    The    conferees    accepted    the    House 
version,    which    extended    the    authority    to 
acquire  plant  habitat,  but  expect  that  this 
authority    wlU    be    used   sparingly,    in    cases 
where  the  needs  of  the  situation  are  clear 
TTils  authority  is  restricted  to  the  Secretary 
of  the  Interior  alone,   but   It   Is  anticipated 
that  he   will  consxUt  with  the  Secretary  of 
Commerce    in    cases    involving    the    marine 
species  ever  which  Commerce  has  sole  juris- 
diction under  Reorganization  Plan  No,  4, 
Section  S.  Cooperation  with  the  States 
The    House    placed    the    fundamental    re- 
•ponslbUlty  for  establishing  and  overaeelng 
an  end*ngered  species  program  in  the  federal 
government,    but   provided  for   the  develop- 
ment of   cooperative   programs   upon  agree- 
ment with  the  agencies  concerned.  The  Sen- 
ate provided  for  cooperative  state  and  federal 
pro«ranis  but  gave  the  mitlal  reaponstblllty 
to  the  states  in  section  18  of  Ita  bill. 

Aa  finally  approved,  the  Act  will  have  the 
effect  of  giving  the  states  fimdamental  roles 


December  19  y  197S 


with  regard  to  resident  species  for  a  given 
period  of  time  ( 16  months,  or  130  days  after 
adjournment  of  the  first  legUlatlve  session 
of  any  state  which  commences  after  passage 
of  the  Act)  The  conferees  hope  that  this 
device  will  impel  the  states  to  develop  strong 
programs  to  avoid  the  alternative  of  federal 
preemption. 

Following  the  establishment  period,  during 
which  It  Is  expected  that  the  states  will  ad - 
Just  to  the  new  federal  program,  the  law  wUl 
apply  aa  it  would  have  under  the  House  bill. 
Where  cooperative  agreements  are  In  fcree. 
these  win  of  course  direct  and  control  the 
enforcement  of  endangered  and  threatened 
species  programs  Where  none  are  then  in 
effect.  It  wUi  be  the  responslbUity  of  the 
states  to  develop  workable  programs  and  to 
secure  cooperative  agreements  with  the  Sec- 
retary, 

Both  bills  provided  for  a  grant  program  to 
enable  the  states  to  develop  systems  for  con- 
serving endangered  and  threatened  species. 
The  House  blU  provided  open-ended  appro- 
prtatlons  whereas  the  Senate  bill  authorized 
the  sum  of  110  million  over  a  3  "4  year  period' 
the  House  authorized  a  Unrer  federal  share 
of  assistance;  and  the  Senate  bUl  restricted 
unoblleated  grant  authority  to  other  grant 
programs  under  the  section.  The  confertijs 
accepted  the  Senate  version  in  all  respects 
save  that  relating  to  the  federal  percentage 
of  cost-sharing  agreements. 

During  the  establishment  period,  the  states 
retain  authority  to  regulate  the  taking  of 
resident  endangered  and  threatened  species 
of  flsh  and  wUdllfe  ( which  are  not  otherwise 
covered  by  treaty  or  federal  law).  The  only 
exoepuons  to  this  are  found  where  the  state 
has  entared  Into  and  Is  operating  under  a 
valid  cooperative  agreement,  which  then 
controls,  or  the  state  has  requested  the  fed- 
eral government  to  extend  federal  protection 
to  one  or  more  ^>ecles  under  the  Act.  or  the 
Secretary  finds  that  an  emergency  exists  re- 
quiring immediate  and  unilateral  action  to 
re^ond  In  this  last  case,  the  Secretery  has 
discretion  to  suspend  the  state  laws  for  90 
days,  or  longer  If  extended  pursuant  to  Sec- 
tion 4(f),  pending  an  agreement  on  how  mat- 
ters are  to  be  handled  in  the  future 

It  should  be  noted  that  the  succeoaful  de- 
velopment of  an  endangered  speclee  program 
will  ultimately  depend  upon  a  good  working 
arrangement  between  the  federal  agencies, 
which  have  broad  policy  perspwstlve  and  au- 
thority, and  the  state  agencies,  which  have 
the  physical  facilities  and  the  per3onnel  to 
see  that  state  and  federal  endangered  species 
policies  are  properly  executed.  The  grant  pro- 
gram authorized  by  this  leglalauon  U  essen- 
tial to  an  adequate  program.  Since  the  fed- 
eral government  is  directing  new.  Innovative 
and  perhaps  expensive  prognims.  it  seems 
only  fair  that  it  should  also  bear  a  significant 
portion  of  their  costs.  The  conferees  wish  to 
make  It  clear  that  the  grant  authority  must 
be  exercised  if  the  high  purposes  of  thu  leg- 
islation are  to  be  met. 

Section  «  International  cooperation 
Both  bills  authorized  International  en- 
dangered species  programs  but  the  Senate 
restricted  thoee  programs  to  countries  in 
which  counterpart  funds  are  available  while 
the  House  stipulated  that  where  such' funds 
were  avaUable.  they  should  be  used  In  prefer- 
ence to  appropriated  funds  under  Section  15 
of  the  Act,  The  Senate  receded  on  thU  l«ue 
The  House  allowed  foreign  assistance  pro- 
grams which  reUted  to  planu  as  well  as  to 
flah  and  wUdllfe:  the  Senate  blU  did  not  ex- 
tend to  planw.  The  House  receded  on  this 
Issue. 

Section  9.  Prohibited  acts 
Both  bUls  prohibit  certain  actions  which 
relate  to  endangered  or  threatened  species, 
or  to  products  or  parts  from  such  spedes! 
These  prohibitions  are  carried  Into  the  con- 
ference bUl. 

While  the  House  bUI  extended  the  prohibi- 
tions of  the  Act  to  actions  of  person*  subject 


to  XJA.  Jurisdiction  wherever  they  might  oc- 
cur, the  Senate  Mil  did  not  reach  quite  so 
far.  since  It  did  not  make  Illegal  such  actions 
If  performed  entirely  within  one  or  more 
foreign  countries.  The  House  accepted  the 
Senate  bill  In  the  absence  ot  a  demonstrated 
need  for  such  exieivaive  coverage. 

The  Senate  bui  restricted  the  prohibitions 
of  the  Act  so  as  not  to  apply  them  to  species 
held  In  captivity  or  m  a  controlled  environ- 
ment as  of  the  date  of  enactment:  the  House 
blU  was  silent  on  the  subject  and  hence  in- 
cluded such  animals.  As  drafted,  the  Senate 
language  may  have  made  It  very  difficult, 
and  perhaps  even  impossible,  to  enforce  the 
action.  The  real  problems  envisioned  by  the 
Senate  had  to  do  with  live  animals  in  cap- 
tivity, such  as  zoos  and  privately-owned  ani- 
mal parks,  and  the  conferees  agreed  that 
these  animals  are  rarely  transferred  for  com- 
mercial purposes. 

The  conferees  rewrote  the  provision  to 
create  an  affirmative  defense  with  respect  to 
noncommercial  activities,  permitting  a  quali- 
fied person  to  plead  In  defense  to  a  charge  of 
violation  of  the  Act  that  the  goods  or  animals 
themselves  were  In  their  hands  or  under  con- 
trol on  the  effective  date  of  the  Act.  Only 
persons  holding  such  goods  and  animals  for 
other  than  commercial  purposes  would  be 
enabled  to  plead  this  subsection  as  a  de- 
fense, such  as  noncommercial  zoos,  private 
collectors  of  animals  and  the  owners  of  fur 
coats  and  rugs.  The  section  would  not  apply 
In  the  case  of  later  bom  progeny  of  animals 
alive  at  the  time  of  enactment. 

The  section  was  also  rewritten  In  part  to 
clarify  the  situation  with  respect  to  en- 
dangered or  threatened  species  of  plants. 
Under  the  terms  of  the  Convention,  this 
country  la  obligated  to  control  Importa- 
tions and  exportatlons  of  plants  as  well  as 
flsh  or  wUdlUe.  Accordingly  the  prohibitions 
of  the  Act  relate,  with  resipect  to  plants,  to 
Import  and  export  situations  alone,  as  well  as 
to  associated  actions.  The  determination  of 
what  further  must  be  done  In  cormectlon 
with  Internal  activities  relating  to  endan- 
gered or  threatened  species  of  plants  must 
await  the  outcome  of  the  study  to  be  con- 
ducted under  Section  13  In  the  coming  year. 
Section  10.  Exceptions 
The  Senate  bill  contained  extensive 
language  providing  exceptions  for  certain 
Alaskan  native  and  nonnatlve  residents,  to 
take  endangered  or  threatened  species  for 
purposes  of  subsistence  or  for  native  handi- 
crafts The  Hgnie  bill  provided  no  similar 
exception     , 

The  con#r^s  -ewrote  the  section  and  pro- 
vided an  Aiti-ina  native  and  nonnatlve  excep- 
tion: the  House  receded  on  the  basis  of  the 
language  in  Section  6  which  would  allow  the 
State  of  Alaska  to  restrict  native  and  non- 
native  taking  as  a  part  of  or  Independent 
from  a  state  endangered  species  program 
This  appears  to  meet  the  principal  state 
objection  to  special  language  for  groups  of 
citizens,  since  the  state  may  impose  addi- 
tional restrictions  upon  thoee  or  other 
groups.  If  It  chooses  to  do  so.  The  definition 
of  natives  is  considered  to  be  that  con- 
tained In  the  recent  .^'wica  Native  Land 
Claims  Settlement  Act. 

Section  11  Penalties  and  enforcement 
The  House  bill  carried  a  two-tiered  civil 
penalty  provision,  with  a  limit  of  $10,000  for 
violations  of  certain  specified  requirements, 
and  a  lesser  penalty  for  violation  of  other 
requirements  of  a  regulatory  nature  The 
Senate  followed  the  same  general  pattern, 
but  varied  the  requirements  somewhat.  The 
conferees  developed  new  language,  subject- 
ing knowing  or  commercial  violators  to  the 
full  tlO.OOO  penalty,  where  specified  offenses 
were  proven,  and  to  a  (6,000  penalty  to  cases 
where  regulatory  violations  wer*-  p'  «■:,  » 
third  penalty  of  » 1,000  may  ;><  a,s«ess»>!^i 
against  an  Ignorant  violator,  such  fui  &  a.^ua. 
hunter  or  tourut.  although  the  conferees  e\- 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42629 


pect  that  this  penalty  will  seldom  be  Invoked, 
coupled  as  it  would  be  with  automatic  for- 
feiture of  the  goods  concerned,  unleos  special 
circumstances  were  shown  warranting  such 
action  by  the  Secretary.  For  a  casual  tourist 
who  bought  an  Item  with  no  hint  of  Us  Il- 
legality or  impropriety,  simple  forfeiture 
should  prove  to  be  an  ample  deterrent. 

The  House  bill  provided  authority  to  agents 
of  the  Secretary  to  Inspect  packages  and 
crates  upon  Importation  or  exportation;  the 
Senate  bill  did  not.  This  authority  \s  parallel 
to  that  which  already  Is  exercised  by  cus- 
toms agents  and  which  has  even  been  as- 
sessed by  Interior  agents  under  existing  law. 
The  Department  of  the  Interior  claims  such 
authority  Is  a  practical  requirement  If  the 
law  is  to  be  enforced  and  that  it  will  be  no 
more  abused  in  the  future  than  it  has  In  the 
past. 

The  conferees  accepted  the  House  language 
but  stressed  that  they  were  prepared  to  re- 
examine that  decision  In  the  future  If  It 
should  appear  that  the  authority  was  being 
abused. 

Section  12.  Endangered  plants 
While  the  Act,  as  finally  approved,  Is  broad 
enough  to  comply  fully  with  this  country's 
obligations  under  the  recently  approved 
Convention,  It  was  felt  that  further  efforts 
should  be  undertaken  to  ensure  adequate 
controls  upon  Interstate  commerce  In  en- 
dangered species  of  plants,  as  well.  Both  bills 
provided  for  a  study  of  the  problems,  with 
recommendations  as  to  how  beet  to  proceed 
to  come  from  the  agency  charged  with  re- 
sponsibility for  the  study.  The  conferees 
accepted  the  House  version,  which  assigned 
this  function  to  the  Smithsonian,  as  an 
Institution  with  no  bias  In  the  eventual  out- 
come of  the  study. 

Section  IS.  Authorization  of  Appropriations 
Both  bills  carried  authorization  authority 
for  a  three-year  period,  ending  with  fiscal 
year  1976,  The  House  celling  was  somewhat 
higher  than  the  Senate  ceUlng.  and  divided 
the  authorizations  between  the  two  depart- 
ments principally  concerned.  The  conferees 
accepted  the  House  ceilings,  but  assigned  13 
million  of  the  authorizations  which  had  orig- 
inally been  earmarked  for  the  Interior  De- 
partment for  fiscal  year  1974  to  the  Com- 
merce Department  for  the  stmie  year. 
Section  17.  Marine  Mammal  Protection  Act 
of  1972 
The  Senate  bUl  contained  a  section  which 
stated  that,  wherever  a  conflict  between  the 
Endangered  Species  Act  and  the  recent 
Marine  Mammal  Protection  Act  might  occur, 
the  stricter  of  the  two  wui  prevail.  This 
would  allow,  for  pxainple,  stat-e  regulation 
of  the  taking  of  marine  mammals  once  these 
were  declared  endangered  or  lhr«itened 
without  the  state  having  a  fully  approved 
marine  mammal  program,  as  It  would  other- 
wise be  required  to  do  under  the  Marine 
Mammal  Protection  Act,  The  House  accept- 
ed the  Senate  provision 

Kentucky  National  Forest  Rrnid 
The  Senate  bill  contained  a  section  added 
on  the  Floor  by  Senator  Cook  which  would 
have  had  the  effect  of  prohibiting  the  con- 
struction of  a  public  road  through  the  Pio- 
neer Weapons  Hunting  Area  In  the  Daniel 
Hoone  National  Forest  Opponents  of  the  road 
fesj-  that  Its  construction  wD!  do  irreparable 
damage  to  the  area  and  urge  the  construction 
of  a  more  expjenslve  road  to  go  aro\md  the 
H.mtlng  Area,  Proponents  of  the  road  re- 
spond that  It  will  not  destroy  the  character 
of  the  area  and  will  be  desirable  The  House 
recently  adopted  an  amendment  t-o  the  Wa- 
ter Reeour'-e«  Development  Act  which  if  er, - 
acted,  would  allow  oonstructlon  of  the  road 
after  public  review  of  the  final  NTPA  envi- 
ronmental Impact  statement 

In  light  of  the  con.slderable  controversy  on 
the  subject,  the  conferees  felt  that  this  issue 


ought  not  to  be  resolved  by  inclusion  of  this 
section  in  the  bUl,  but  that  It  would  be  more 
appropriate  for  full  hearings  to  be  held  on 
the  question  by  the  proper  Committees  of 
Congress.  Accordingly  the  section  was  strick- 
en from  the  bill  with  the  understanding  and 
hope  that  such  hearings  might  be  expedi- 
tiously completed, 

Leonob  K    StnxiVAN, 
John  D   Dingkll, 
Geobgz  a.  Oooolxng, 
Managers  on  the  Part  of  the  House. 
Phujp  a.  Hajit, 
John  V   TrmtrFr 
Ted  Stfvens, 
Pr.\nk  E  Moss, 
Marlow  W.  Cook, 
Managers  on  the  Part  of  the  Senate 


PERMISSION  FOR  COMMITTEE  ON 
INTERSTATE  AND  FOREIGN  COM- 
MERCE TO  FILE  A  CONFERENCE 
REPORT  ON  S  2589,  EMERGENCY 
PETROLEUM  ACT 

Mr.  STAGGERS.  Mr.  Speaker,  I  ask 

unanimous  con.'*nt  that  the  managers 
may  have  ixntil  midnight  tonight  to  file 
a  conference  report  on  the  Senate  biU 
S,  2589,  to  provide  for  the  development 
of  contingency  plans  for  reducing  petro- 
leum consumption. 

The  SPEAKER  Is  there  objection  to 
the  request  of  the  gentleman  from  West 
Virginia? 

There  was  no  objection. 


LEGISLATIVE  PROGRAM  FOR  THE 
REM  A  INT)  ER  OF  THE  WEEK  OP 
DECEMBER   17,   1973 

(Mr.  RHODES  asked  and  was  given 
permission  to  address  the  House  for  1 
minute.) 

Mr  RHODES.  Mr.  Speaker,  I  ask  for 
this  time  in  order  to  inquire  of  the  dis- 
tinguished majonty  leader  as  to  the  pro- 
gram for  tomorrow  and  also  as  to  the 
remainder  of  this  week. 

Mr  O'NEILL-  Mr.  Speaker,  will  the 
di.slinguished  minority  leader  vield'' 

Mr  RHODES  I  yield  to  the  distin- 
guished majority  leader 

Mr,    O'NEILL.    Mr     Speaker     if    the 
gentleman  ha.';  no  objection,  I  would  like 
first  to  make  some  unanimous-consent 
requests. 
Houx  OF  icxxmrG  on  trttssdat,  DBCEicBKS  so, 

1973 

Mr     O'NEILL     Mr.    Speaker,    I    ask 

unanimous  con.sent  that  when  the  House 
adjourns  today,  it  stands  adjourned  to 
meet  at  10  30  a.m  tomorrow  morning, 
Thursday,  December  20,  1973 

The  SPEAKER  L*;  there  objection  to 
the  request  of  the  gentleman  from  Mas- 
sachusetts? 

There  wa'^  no  objection, 

A'TH  'R.IZI.NG  THE  SPEAKjai  TO  DKCLAaE  KECCS&ES 
□  raiNG  THE  BALA.VCE  OF  THE  WEEK  OF  M - 
crMaER     I-       1973 

Mr  O'NEILL  Mr  Speaker.  I  ask 
unanimous  consent  that  for  the  balance 
of  this  week,  it  be  in  order  for  the  Speak- 
er to  declare  recesses  at  any  time,  sub- 
ject to  the  call  of  the  Chair. 

The  SPEAKER  Is  there  objection  to 
the  request  of  the  gentleman  from  Mas- 
sachusetts' 

There  was  no  objection. 


MAKING  IN  ORDKB  CONSIDERATION  OF  CONTEB- 
KNCX  RKPOSTS  ON  SAMX  DAT  UFOXTXD  DUXUTO 
THE  BALANCE  OP  THE  WEEK  OF  DECKKBIB  17, 
1973 

Mr.  OT>JEILL.  Mr.  Speaker.  I  ask 
unanimous  consent  that  during  the  re- 
mainder of  this  week  it  shall  be  in  order 
to  consider  conference  reports  on  the 
same  day  reported,  notwithstanding  the 
provisions  of  clause  2  of  rule  XXVTLI 

The  SPE.AKER,  Is  there  objection  to 
the  request  of  the  gentleman  from 
Mas.sachasetts? 

There  was  no  objection. 
Mr.  O'NEILL.  Mr.  Speaker,  I  take  this 
opportunity  to  announce  that  It  is  our 
intention  to  consider  tomorrow  under 
suspension  of  the  rules,  HJR.  8449,  the 
flood  insurance  bUl,  and  concur  with  the 
Senate  amendment  with  an  amendment. 
I  am  sure  that,  with  the  amendment, 
this  will  take  care  of  the  problems  that 
some  of  the  Members  of  the  Congress 
have  spoken  to  us  about. 

I  am  directing  my  remarks  to  the  gen- 
tleman from  Iowa.  I  think  that  he  is 
satisfied  with  it. 

Mr.  GROSS.  Mr.  Speaker,  ulll  the  gen- 
tleman from  Arizona  yield? 

Mr.  RHODES.  I  yield  to  the  gentleman 
from  Iowa 

Mr.  GROSS.  Mr.  Speaker,  I  appreciate 
very  much  the  announcement  that  the 
distinguished  majority  leader  has  just 
made. 

However,  I  would  like  to  ask  the  gentle- 
man If  It  is  his  intention  to  work  to  the 
end  that  we  adjourn  sine  die  tomorrow 
evening? 

Mr.  O'NEILL  Mr.  Speaker,  I  am  on  the 
time  of  the  minority  side,  and  if  I  may 
follow  along  with  the  inquiry  of  the  gen- 
tleman, I  will  be  delighted  with  that, 
Mr.  Speaker,  I  thank  the  gentleman. 
Mr.  Speaker,  we  have  left  for  the  re- 
mainder of  the  session  the  following 
items: 

I  would  anticipate  that  the  flood  insur- 
ance bill  will  be  called  tom.orrow. 

The  following  legislation  is  left  to  be 
completed,  either  tomorrow  or  on  early 
Friday,  and  I  would  hope  we  could  com- 
plete them  tomorrow 
These  are  all  conference  reports: 
Department  of  Defense  appropriations 
for  fiscal  year  1974; 

Foreign  a-ssistance  appropriations  for 
fiscal  year  1974 

The  National  Emergency  Energj-  Act; 
and  the  conference,  I  understand,  has 
just  asked  for  permis-sion  to  flJe; 

The  Northeast  Railroad  .Assistance  Act, 
on  which  I  understand  the  conference 
has  reported 

Then  we  will  consider  House  Resolu- 
tion llu88  emergency  security  assist- 
ance for  Israel,  which  possibly  could  be 
back  tomorrow. 

However,  it  is  my  understanding:  that 
the  Senate  is  going  to  accept  tlie  House 
bill,  and  .so  there  is  a  great  probability 
ihL^  may  not  have  to  be  acted  on. 

Then  we  will  consider  the  Comprehen- 
sive Manpower  Act.  which  1"=  aisc  a  con- 
ference report. 

Then  we  will  consider  the  social  se- 
curity increase  bill  They  have  been 
meeting  m  conference,  and  I  really  can- 
not respond  as  to  what  is  taking  place 
concerning  the  social  secunty  Increase 


12630 


CONGRESSIONAL  RECORD  — HOUSE 


Mr.  Speaker,  I  would  then  presume, 
with  these  matters  out  of  the  way,  the 
final  item  that  would  be  left  for  the 
House  to  dispose  of  would  be  the  supple- 
mental appropriations  conference  report, 
which  was  recommitted  today. 

That  is  the  entire  legislative  program 
for  the  weeli.  We  will  have  a  sine  die  ad- 
journment until  the  date  of  our  return 
on  January  21 

I  would  anticipate,  if  we  want  to  stay 
with  this  until  late  tomorrow  evening, 
we  could  finish  it  That  would  be  subject 
to  a  discussion  amongst  the  leadership. 
Or  else  we  may  go  into  Friday  and  ad- 
journ then. 

However,  that  Is  the  entire  program  as 
I  understand  it. 

Mr.  HALEY  Will  the  gentleman  yield? 

Mr.  RHODES.  If  I  have  any  time  left.  I 
will  be  glad  to  yield  to  the  gentleman 
from  Florida. 

Mr.  HALEV  May  I  inquire  as  to  what 
you  think  of  the  situation?  Can  we  get 
away  here  tomorrow  or  Friday  night  or 
when?  A  lot  of  us  have  commitments. 

Mr.  O'NEILL.  May  I  say  to  the  distin- 
guished gentleman  from  Florida  I 
have  a  6:55  p.m.  plane  to  Boston  tomor- 
row night  which  I  will  probably  cancel  in 
the  morning  and  hope  that  I  can  make  a 
reservation  for  Friday.  I  have  every  ex- 
pectation we  can  be  through  at  a  reason- 
able hour  on  Friday. 

Mr.  HALEY  If  the  gentleman  will  yield 
further,  as  far  as  I  am  concerned.  I 
would  be  glad  to  stay  here  tomorrow  and 
I  will  be  glad  to  stay  here  until  Friday 
afternoon,  but  I  think  we  should  get  away 
from  here  and  get  back  to  oiir  ccmgres- 
sional  districts  at  least  sometime  after 
Friday  If  the  gentleman  can  assure  me 
we  will  get  out  of  here  at  whatever  time 
we  can 

Mr  O'NEILL  All  I  can  say  to  the 
gentleman  from  Florida  Is  there  is  noth- 
ing along  that  line  I  will  do  to  prevent  it. 
As  a  matter  of  fact,  I  will  be  In  there 
pushing   as   hard   as   I   possibly   can. 

Mr.  HALEY  I  thank  the  gentleman 
very  much,  and  I  hope  he  can  get  his 
plane  tomorrow  afternoon. 

Mr.  GROSS.  WIU  the  gentleman  yield' 

Mr  RHODES  I  wlU  yield  If  I  have  any 
time  left 

Mr  GROSS  I  only  wish  to  say  that  I 
am  glad  the  distinguished  majority 
leader  of  the  other  body  set  October  15 
as  the  adjournment  date,  because  if  he 
had  not  done  that,  I  am  sure  we  would 
have  been  finished  in  this  session  about 
next  Easter. 

Mr.  O'NEILL.  In  response  to  the  gen- 
tleman. I  have  always  said  there  were 
two  parties  In  this  House — the  good  fel- 
lows and  the  other  fellows — and  I  want 
the  gentleman  to  know  he  and  I  are  still 
on  the  same  sldf 


December  19,  1973 


PERMISSION  TO  FILE  CONFERENCE 
REPORT  ON  H.R   9142 

Mr.  STAGGERS    Mr    Speaker,   I  ask 

unanimous  consent  that  the  managers  on 
the  part  of  the  House  have  permission  to 
file  a  conference  report  on  the  bill  iHR 
9142)  to  restore,  support,  and  maintain 
modem,  efficient  rail  service  in  the 
northeast  region  of  the  United  States:  to 
designate  a  system  of  essential  rail  lines 
in  the  northern  region,  to  provide  finan- 


cial assistance  to  certain  rail  carriers; 
and  for  other  purposes,  by  midnight  to- 
night. 

The  SPEAKER.  Is  there  objection  to 
the  request  of  the  gentleman  from  West 
Virginia? 

There  was  no  objection. 


WITH  BLEAK  OUTLOOK  AHEAD  CON- 
GRESS MUST  CONSIDER  LEGIS- 
LATION TO  PREVENT  RECUR- 
RENCE OF  THE  1930'S 

I  Mr.  HANLEY  asked  and  was  given 
permission  to  address  the  House  for  1 
minute  and  to  revise  and  extend  his 
remarks.  > 

Mr.  HANLEY.  Mr.  Speaker.  I  am  very 
heavj'-hearted  this  afternoon  as  I  rise 
to  share  some  thoughts  with  my  col- 
leagues on  the  future  of  the  American 
economy  I  have  never  considered  myself 
a  prophet  of  doom  and  gloom,  but  the 
situation  looks  so  bleak  for  the  months 
ahead,  that  I  would  be  remiss  if  I  did  not 
express  my  pessimism  about  where  we 
are  headed. 

The  energy  crunch,  which  we  are  just 
beginning  to  experience  with  some  sever- 
ity, is  the  icLng  on  the  cake.  The  ingredi- 
ents of  our  economic  faltering  are  far 
broader  and  far  less  apparent.  Not  the 
least  of  these  ingredients  Is  a  growing 
malaise  In  our  society,  a  growing  distnist 
of  the  Instrxrnients  and  the  instrumen- 
talities of  our  Government.  This,  In  turn, 
has  seriously  battered  the  confidence  of 
the  American  people;  and,  of  course, 
shaken  confidence,  whether  justified  or 
not,  has  its  first  Impact  on  the  economy. 
Investors  will  not  Invest:  producers  will 
not  produce;  distributors  will  not  dis- 
tribute, and  buyers  will  not  buy  unless 
they  have  confidence  in  the  future  of  the 
economy.  We  have  already  heard  the 
rumblings  of  recession  Automobile  deal- 
ers by  the  thousands  across  the  Nation 
are  up  against  the  wall  Hundreds  of 
thousands  of  small  businesses  cannot  get 
supplies;  construction  is  down;  tourism 
is  way  off;  and  the  ceiling  on  prices  is 
so  shot  through  with  loopholes  that  it 
looks  like  a  giant  piece  of  swiss  cheese. 

As  bleak  as  this  picture  looks,  however 
there  is  one  ray  of  hope,  and  that  Is  the 
indomitable  American  spirit,  that  mysti- 
cal capacity  to  meet  adversity  face  on 
and  master  it  But  that  spirit  has  to  be 
mustered  and  nurtured  by  America's 
leaders,  most  Importantly,  the  President 
of  the  United  States  and  the  Congress. 
We  have  a  solemn  obligation  to  the  peo- 
ple who  sent  us  to  Washington,  and  to 
our  own  consciences,  to  provide  the 
framework  for  economic  stability.  Bear- 
ing this  burden  squarely  in  mind,  I  want 
at  this  time  to  offer  a  few  pointed  sug- 
gestions for  this  body  to  consider  in  the 
early  weeks  and  months  ahead. 

Most  of  the  Members  of  the  House  can 
remember  with  painful  clarity  the 
ravages  of  the  great  depression  None  of 
us  ever  wants  to  witness  again  the  de- 
moralizing and  paralytic  impact  that 
economic  collapse  brought  m  its  wake  I 
propose  that  the  Congress,  Immediately 
upon  reconvening  in  January,  take  up 
the  question  of  legislation  aimed  at  pre- 
ventmg  a  recurrence  of  the  1930s  I  pro- 
pose that  we  enact  legislation  patterned 
alter   the   old   Reconstruction    Finance 


Corporation,  which  will  help  to  carry 
hundreds  of  thousands  of  businesses  over 
the  hump  In  the  next  year  or  two.  We 
know  how  beneficial  the  original  RFC 
was  In  putting  business  back  on  its  feet ; 
but  the  hard  plain  fact  was  the  RFC  was 
after  the  fact.  It  was  curative  rather 
thai!  preventive.  The  mipact  of  such  leg- 
islation would.  I  believe,  be  twofold.  First, 
it  would  provide  a  buffer  against  what 
almost  surely  promises  to  be  a  rough 
year  for  most  businesses,  thereby  saving 
millions  upon  millions  of  American  jobs; 
and  second,  it  would  reassure  the  Ameri- 
can people  that  their  Government  had 
not  been,  as  Pranklm  Roosevelt  said, 
"frozen  in  the  ice  of  its  own  indifference' 

The  second  feature  of  this  package, 
Mr.  Speaker,  is  an  extension  and  broad- 
ening of  the  Emergency  Public  Employ- 
ment Act.  Just  as  surely  as  we  are  here 
today,  many  business  enterprises  are 
going  under  in  the  next  few  months  no 
matter  what  the  Government  does.  The 
telegraphic  impact  this  will  have  Into  the 
labor  market  could  prove  disastrous  un- 
less we  act  to  prevent  it.  We  have  used 
this  vehicle  satisfactorily  In  the  past  and 
we  can  do  It  again.  Congress  must  take 
the  InltlaUve. 

Mr.  Speaker,  I  am  hopeful  that  my  pre- 
dictions are  more  dire  than  the  future 
really  will  be.  I  remain  hopeful  that  we 
can  get  over  the  economic  crunch  with  a 
minimum  of  instabihty.  But  I  feel  we 
have  to  be  ready  for  the  worst  The  sig- 
nificant value  of  this  preparatory  legis- 
lation is  that  it  might  never  have  to  be 
used,  but  it  wiD  be  there.  Let  us  face  it. 
America  got  caught  In  the  great  depres- 
sion; let  us  not  make  the  same  mistake 
agEiin. 

Let  us  begin  now  to  provide  the  Ameri- 
can people  with  preventive  tools.  Let  us 
provide  the  vehicles  whereby  the  Gov- 
ernment can  move  swiftly  and  smoothly 
to  avert  an  economic  collapse  And  most 
of  all.  let  us  provide  a  rallying  point  for 
the  American  dream.  It  Is  not  too  late 
today,  but  it  might  be  in  6  months. 


EQUAL  JUSTICE  FOR  THE  RICH  AND 
THE  POOR.  THE  BLACK  AND  THE 
WHITE:  WHEN? 

(Mr.  KOCH  asked  and  was  given  per- 
mission to  address  the  House  for  1  min- 
ute, and  to  revise  and  extend  his  re- 
marks i 

Mr.  KOCH.  Mr  Speaker,  yesterday  in 
the  city  of  New  York  646  Individuals  were 
charged  as  welfare  cheats — 100  of  these 
Individuals  were  actually  arrested  and 
appeared  In  the  criminal  court  of  the 
city  of  New  York  where  they  were  fin- 
gerprinted, booked,  and  later  arraigned 
on  felony  and  mlsdeameanor  charges. 
They  were  charged  with  having  fraud- 
ulently received  welfare  payments  in  the 
total  amount  of  $250,000.  If  the  charges 
are  proved  they  should  Indeed  suffer  the 
consequences  of  having  defrauded  the 
government. 

There  Is  not  a  Member  of  Congress 
who  would  not  agree  with  my  statement. 
And  tliere  are  many  Memtiers  of  Con- 
gress who  uill  undoubtedly  point  to  the 
alleged  welfare  cheats  and  talk  about 
government  giveaway  programs  and  how 
we  have  to  crack  down  on  those  receiv- 
ing welfare. 


December  19,  1978 


CONGRESSIONAL  RECORD  —  HOLTSE 


42631 


At  the  same  time  there  are  few  Mem- 
bers of  Congress  who  are  willing  to  point 
the  same  kind  of  denouncing  finger  at 
the  wheat  farmers  who  this  year  have 
received  one-half  billion  dollars  In  over- 
subsidization  payments  by  the  Depart- 
ment of  Agriculture  Our  distinguished 
colleague,  Sidney  Yates  of  Chicago, 
brought  this  matter  to  the  attention  of 
the  House  and  pointed  out  that 

Sulwldles  wer^  paid  last  summer  on  the 
basis  of  the  then  current  rate  of  »2  40  p«r 
bushel.  Subsequently,  at  least  in  part  be- 
cause of  massive  Brain  export.s.  prices  sijared 
to  •3.99  per  bushel,  but  by  then  massive 
preliminary  payments  had  alread;.  been 
made.  The  Agriculture  Department  passes  It 
all  off  as  a  simple  "mlsjudgmenf  and  has 
cited  a  part  of  the  agricultural  act  which 
stipulates  that  farmers  do  not  have  to  re- 
turn overpayments  to  the  Government. 

How  many  Members  in  this  House  have 
received  letters  from  elderly  constituents 
who  received,  without  any  fraud  on  their 
part,  a  social  security  overpayment,  spent 
it  without  knowing  that  they  were  not 
entitled  to  it.  and  then  were  hounded 
month  after  month  by  the  Social  Secu- 
rity Administration  for  a  return  of  the 
moneys?  In  many  cases  the  money  I',  de- 
ducted from  the  recipient's  meager  cur- 
rent monthly  social  security  allowance. 

Why  should  wheat  farmers  not  be  re- 
quired to  return  the  overpayments  made 
to  them  which  total  one  half  bilhon  dol- 
lars? Are  wheat  farmers  to  be  treated 
more  advantsigeously  than  the  elderly 
citizens  of  our  countrj'  who  are  not  able 
to  maintain  even  minimum  living  stand- 
ards on  the  existing  social  security  pay- 
ments? 

Regrettably  we  must  face  the  fact  that 
there  are  different  standards  of  justice  in 
our  country  and  too  often  the  rich  and 
powerful  are  protected  by  our  laws  while 
the  poor  and  defenseless  are  harrEissed. 
Until  we  have  one  standard  of  justice  af- 
fecting the  rich  and  the  poor,  the  white 
and  the  black,  we  have  no  justice. 


END  OF  SESSION  REPORT 

The  SPEABIER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  Iowa  'Mr.  SMrrnt  is  recog- 
nized for  5  minutes. 

Mr.  SMITH  of  Iowa.  Mr.  Speaker,  on 
December  4  of  this  year  I  placed  in  the 
Record  a  summsiry  of  legislation  passed 
by  Congress,  as  of  that  time.  In  order 
to  provide  a  complete  summsuy,  I  wish 
to  describe  additional  measures  passed 
by  Congress,  or  pending  for  further 
action. 

ENERGY    CKISI8 

In  1970  a  House  subcommittee,  of 
which  I  am  chairman,  held  the  first 
:;ongressional  hearings  on  the  energj' 
crisis  and  warned  in  a  report  that  im- 
mediate action  we  needed  to  prevent 
what  would,  within  a  few  years,  become 
an  energy  crisis  Among  the  recommen- 
dations In  that  report  were  the  follow- 
ing: 

First,  that  a  single  Federal  agency  be  desig- 
nated the  responsibility,  authority,  and  Jur- 
isdiction to  establl.ih  a  national  energy  pol- 
icy directed  at  the  production  and  efflclent 
use  of  our  country's  total  energy  resources; 

Second,  that  action  be  taken  to  Increftse 
the  production  of  all  energy  sotirces; 


Third,  that  the  mandatory  oil  import 
quuta  program  be  changed  to  provide  a  con- 
tinuing adequate  supply  of  fuel; 

Fourth,  that  the  President  suspend  the 
operation  of  the  Connally  Hot  Oil  Act  under 
authority  contained  In  15  U.S.C.  715(d): 

Fifth,  that  the  Canadian  crude  oil  and  fin- 
ished petroleum  products  Import  quotas  be 
eliminated; 

Sixth,  the  import  quota  on  No.  2  fuel  oil 
be  suspended; 

Seventh,  that  Import  quotas  on  residual 
oil  be  suspended; 

Eighth,  that  the  Office  of  Emergency  Pre- 
paredness Institute  procedures  to  expedite 
the  distribution  of  oU  export  quota  tickets; 

Ninth,  that  the  Interstate  Conmierce  Com- 
mission take  whatever  action  Is  necessary 
to  Insure  that  transportation  will  be  avail- 
able to  move  coal  from  mines  to  final  des- 
tination; and 

Tenth,  that  the  Department  of  the  In- 
terior and  other  agencies  establish  long-term 
projections  on  future  coal  usage  and  assure 
that  adequate  production  faculties  wlU  be 
available  to  handle  future  needs. 

Thereafter  my  subcommittee  held 
hearings  and  made  investigations  and 
Issued  several  more  reports  reiterating 
these  warnings  and  refining  the  recom- 
mendations of  action  needed  but  neither 
the  administration  nor  most  of  the  Amer- 
ican people  would  believe  that  such  a 
severe  situation  was  developing.  As  late 
as  1  year  ago.  a  chief  administration 
spokesman,  OEP  Deputy  Elmer  Bennett, 
stated: 

We  have  enough  of  a  refinery  capacity  to- 
day, but  .  .  .  problems  .  .  .  could  arise  3,  3,  4, 
years  from  now. 

Finally  both  the  administration  and 
the  Congress  are  convinced  that  we  must 
l)ecome  more  self-sufficient  and  catchup 
actions  of  various  kinds  are  now  being 
taken.  Many  of  them  are  temporary  and 
are  very  disruptive  of  our  normal  distri- 
bution system"  and  the  freedoms  of  indi- 
viduals generally. 

PubUc  Law  93-28  and  Public  93-159 
authorized  the  President  to  establish 
priorities  and  allocations  of  certain  pe- 
troleum products. 

Public  Law  93-97  provided  $10.6  mil- 
lion to  fund  research  in  nuclear,  solar 
and  geothermal  energv-  but  so  far  the 
administration  has  not  'osed  ihase  funds. 
An  Emergency  Energy  Act  provides  broad 
authority  for  energy  conservation  and  to 
encourage  or  direct  .some  utilities  and  big 
industries  to  use  coal  in.stead  of  ^bs  and 
oil.  Had  this  been  done  2  years  ago, 
many  of  them  would  not  have  converted 
from  coal  to  oil. 

Public  Law  93-153  permits  construc- 
tion of  the  trans-.'Ma'^kan  oil  pipeline 

Pubhc  Law  93-182  provides  daylight 
savings  time  on  a  year-rotmd  basis  for  a 
2-year  period. 

Public  Law  93-  sets  a  55  mile  per 
hour  maximum  speed  limit  for  sdl  ve- 
hicles. The  President  had  propased  50 
miles  per  hour  for  autos  and  55  miles  per 
hour  for  truck.s  and  buses. 

Vario'Li^  other  bills  dealt  with  research 
and  development  programs  and  the  es- 
tablishment of  new  agencies  or  transfers 
of  authority  deemed  nece.ssary  1.0  ad- 
minister these  laws. 

SOCIAL  SEcmrrr 

Public  Law  93-66  Increases  social 
security  benefits  by  5.9  percent  effec- 
tive June  1,  1974.  Other  bills  provide  a 
total  of  an  additional  11  percent  have 


passed  both  the  House  and  Senate  and  I 
feel  sure  will  become  law  and  effective 
about  that  ssune  time. 


VKTXBANS 

Fhiblic  Law  93-177  provides  for  an  in- 
crease of  at  least  10  percent  in  non-serv- 
ice-connected disability  veterans  pen- 
sions. 

FOBEION     AD) 

Congress  continued  the  foreign  aid 
program,  but  at  a  funding  level  consid- 
erably below  the  administration's  request 

Public  Law  93-  provides  an  emer- 

gency authorization  of  $2.2  million  for 
Israel  to  help  replace  equipment  de- 
stroyed in  the  Mideast  war. 

GENEBAL    GOVERNMENT 

Public  Law  93-113  establishes  ACTION 
as  a  consoUdated  agency  to  administer 
such  volunteer  programs  as  VTSTA  and 
extends  the  authority  for  the  programs 
through  1976. 

Public  Law  93-190  authorizes  the  Sen- 
ate Watergate  Committee  to  sue  in  Fed- 
eral court  to  secure  Information  from 
the  White  House.  President  Ni.xon  wa** 
against  the  bill  but  let  It  become  law 
without  his  signature. 

VICE  -  PKESIDENCT 

Acting  for  the  first  time  under  the 
25th  amendment  to  the  Constitution. 
the  House  and  Senate  confirmed  the 
nomination  of  Gerald  R.  Ford  to  be  Vice 
President.  He  was  nominated  by  Presi- 
dent Nixon  after  former  Vice  President 
Agnew  resigned. 

ELXcnoN  axroRM 

High  on  the  agenda  next  session  will 
be  proposals  for  Presidential  campaign 
financing  reform.  The  Watergate  disclo- 
sures have  Increased  support  for  financ- 
ing with  public  fimds  to  prevent  the 
dangers  which  accompany  vast  contri- 
butions by  a  few  individuals.  Such  legis- 
lation may  pass  next  year. 

COMMODITT    laCCHANGKS 

There  has  been  a  vast  increase  in  the 
volume  of  business  done  by  commodity 
futures  markets.  It  now  stsuids  at  nearly 
$400  billion  per  year  or  nearly  twice  the 
volume  conducted  by  the  stock  ex- 
changes. These  commodity  exchanges 
are  supposed  to  provide  a  place  where 
producers,  country  elevators  and  others 
can  hedge  or  reduce  their  risk  as  they 
plan  and  invest  in  the  production,  mar- 
keting, or  utilization  of  commodities.  Ex- 
cessive speculation,  squeeze?,  or  manipu- 
lations can  result  in  Increased  nsk 
instead  of  reduced  risk.  A  commodity  ex- 
change agency  is  supposed  to  monitor 
and  police  these  markets,  but  a  House 
subcommittee,  of  which  I  am  chairman, 
heid  extensive  hearings  into  their  opera- 
tion and  found  that  they  had  not  been 
doing  an  adequate  job  t>oth  because  they 
needed  additional  authority  and  al.so  be- 
cfiiise  they  had  not  fullj-  used  the  author- 
ity they  now  have.  We  prodded  them  Into 
being  more  active  and  I  am  sponsoring  a 
bill.  H.R.  11195.  to  provide  the  additional 
regulatory  authority  needed  and  set  up 
an  Independent  Commodity  Exchange 
Commission.  I  believe  this  legislation  will 
pass  early  next  session. 

m  ANSI»CI«T  ATIOl* 

Production  has  been  Increasing  faster 
than  the  ablUty  to  transport  these  prod- 


CXIX- 


-2685— Part  33 


i2^^V2 


ucts  around  the  country.  In  my  opinion, 
a  transportaUon  crisis  has  been  bulldln« 
up  and  Is  a  serious  problem  which  we 
must  face  more  realisUcally  in  the 
future. 

HR.  9142  passed  the  House  and  Sen- 
ate and  I  am  sure  will  be  signed  Into  law 
It  started  out  as  a  Northeastern  Rail- 
road Federal  assistance  bill.  Many  peo- 
ple seem  to  believe  that  all  the  trans- 
portation problems  in  the  country  are 
centered  In  the  Northeast.  The  bill  as 
passed  Includes  an  amendment  which  I 
promoted  to  extend  benefits  ot  the  leffls- 
latlon  to  the  Midwest  and  specifically  for 
Oie  purpose  of  permitting  a  loan  to  the 
Rock  Island  and  a  few  other  railroads 
whl<^  have  a  serious  capital  flow  prob- 
lem but  should  become  a  profitable  oper- 
ation in  the  future. 

PASAXO    CONCBESS 

Listed   below   are   bills   which   passed 
Congress  at  the  very  end  of  the  session 
These  may  or  may  not  be  signed  Into 
law  by  the  President. 

S.  1435  would  provide  a  home  rule 
charter  to  the  District  of  Columbia 

S.  2482  would  Increase  the  Small  Busi- 
ness Administrations  lending  authority 
would  expand  the  disaster  loan  program' 
and  would  make  It  a  crime  to  Improperly 
influence  theawardlng  of  a  SBA  loan 

S  14  would  Improve  medical  care  by 
providing  Federal  assistance  for  health 
maintenance  organizations,  or  HMO's. 

S  1559  would  authorize  assistance  to 
State  and  local  agencies  for  comprehen- 
sive manpower  training  programs  and 
would  authorize  a  program  of  pubUc 
service  jobs  to  combat  unemployment. 

fXXDUfO  ILKGISLATTON 

Below  are  bills  which  have  not  cleared 
Congress  In  final  form.  After  passing 
both  Houses,  bills  go  to  a  conference 
committee  to  resolve  differences  In  the 
two  versions. 

HR.  10710 — passed  House,  pending  in 
Senate— would  provide  the  President 
with  5-year  authorltv.  under  certain 
limitations,  to  negotiate  new  trada 
agreements. 

H  R.  7824 — passed  House,  pending  in 
Senate— would  establish  an  Independent 
legal  services  corporation  to  replace  the 
program  now  under  the  OflBce  of  Eco- 
nomic Opportunity. 

HR.  7130 — passed  House,  pending  In 
Senate— would  set  up  a  LegislaUve 
Budget  OfHce  and  make  other  provisions 
to  Improve  congressional  control  over 
budgeting  outlays  and  receipts. 

S.  373 — pending  in  conference  com- 
mittee—would place  restrlcUons  on  the 
authority  President  Nixon  claims  he  has 
tc  Impound  congressional  authority. 

VTtOED    nXLM 

u  ^Jt^^U^^  Constitution,  a  bUl  vetoed 
by  the  President  can  become  law  only  If 
two-thirds  of  the  Members  In  the  House 
and  Senate  vote  to  override  the  veto  As 
*  pracUcal  matter,  it  Is  very  difHcult  to 
h^i?,  ffnlli''^  a  majority  The  foUowlng 
bUls  fal  ed  to  become  law  this  session 

w'd      ^*  vetoed  by  the  President 
-„         -.^H*^'    ^^^   sw-ond   supplemental 
approprlattons    bUl.    which    Included    a 
provision  for  an  Immediate  end  to  US 
mlllUry  action  in  Indochina 

8,  7.  which  would  have  extended  and 
unproved  programs  for  the  handicapped- 


CONGRESSIONAL  RECORD  —  HOUSE 


HJl.  3298.  which  would  have  restored 
the  program  for  grants  to  build  water 
and  sewer  systems  In  rural  communities. 
The  program  had  been  terminated  by 
the  administration. 

S.  518.  which  would  have  required  Sen- 
ate confirmaUon  of  present  and  future 
Directors  of  the  Office  of  Management 
and  Budget. 

S.  504.  which  would  have  set  up 
emergency  health  care  service  programs 
and  kept  open  PubUc  Health  Service  hoe- 
pltals. 

H.R.  7935.  which  would  have  Increased 
the  minimum  wage,  by  stages,  from 
$1.60  to  12.20  an  hour. 

8.  1672,  which  would  have  increased 
smaU  business  a^sslstance.  provided  for 
more  disaster  loan  aid  and  banned  sex 
discrimination  In  certain  areas. 

S.  1317.  which  authorized  funds  for 
the  U.S.  Information  Agency  and  which 
contained  a  provision  conflictmg  with 
President  Nixon's  concept  of  executive 
privilege 

Also.  President  Nixon  vetoed  the  so- 
called  war  powers  bill,  but  Congress 
passed  it  into  law  over  his  veto. 

AJ»PmOP«t»TIOI»« 

It  Is  estimated  that  the  final  amount 

*i',?'i?P'^'*^  ^^  Congress  this  session 
will  be  about  J2  8  billion  below  what  was 
requested  by  the  admlnistraUon  The 
exact  figure  will  not  be  available  until 
all  approprtaUons  bills  become  law 

The  reduction  was  achieved  by  trim- 
ming down  the  military  and  foreign  aid 
programs  more  than  the  amount  re- 
quired to  restore  funds  for  domestic  pur- 
poses,   mainly    health,    education,    and 


December  19,  1973 


Introducing  a  modificaUon  of  the  previ- 
ous measure.  By  doing  so  I  hope  to  Indi- 
cate to  the  charities  that  we  are  inter- 
ested In  their  problem  and  want  to  try  to 
work  something  out.  The  bill  will  pro- 
tect the  right  of  public  charities  to  com- 
municate with  their  own  membership  in 
matters  of  legislative  interest  and  to 
elect  an  expenditures  test  for  some  types 
of  lobbying  acUvlUes.  None  of  the  spon- 
sors considers  himself  "cast  in  brass' 
with  this  particular  bill.  Rather,  our  pur- 
pose In  sponsoring  it  is  to  try  to  bring 
about  some  movement  in  a  necessary 
area  of  legislation. 

The  role  of  the  charities  in  a  pluralis- 
tic society— something  we  are  aU  dedi- 
cated to— is  construcUve  and  the  chari- 
ties should  not  be  muzzled.  While  some 
restramt  on  their  lobbying  activities 
may  be  necessary,  the  restraint  Imposed 
by  the  uncertainty  resulting  from  the 
present  situaUon  is  almost  complete  We 
should  do  something  about  this  and  the 
bill  we  are  Introducing  today  provides  a 
reasonable  course  for  action. 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42633 


CHARmES  IN  A  PLURALISTIC 
SOCIETY 


The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  New  York  (Mr.  Conablx.  Is 
recognized  for  5  minutes 

Mr.  CONABLE  Mr  Speaker,  under 
present  law.  a  charity  loses  its  Ux  ex- 
empUon  and  Its  quallflcaUon  to  receive 
deductible  contrlbuUons  If  It  engages  In 
substantial  leglslaUve  activity.  This  rule 
largely  forecloses  communlcaUon  by 
charitable  groups  with  dty  and  county 
councils.  State  legislatures,  and  Con- 
gress In  contrast,  the  tax  laws  grant  a 
great  many  classes  of  noncharltable  or- 
ganizations broad  latitude  to  apply  tax 
deducUble  or  tax  exempt  funds  to  the 
Influencing  of  legislation.  Businesses  la- 
bor unions,  trade  associations,  veteran 
groups,   fraternal   societies,   and   others 

S^a^vnr ""  ""'^  "^  '"'''~'*  "^''■ 
The    past    several    years    have    seen 
broad  bipartisan  efforts  to  reduce  this 
discrepancy  by  relaxing  somewhat  the 
tax  restrictions  on  public  charlUes'  par- 
ticipation   In    discussions    of    legislative 
matters.  A  number  of  different  bills  have 
been    introduced    with    that    goal     The 
Ways  and  Means  Committee  held  hear- 
ngs  on  the  subject  last  year  and  again 
this  sprtng  These  hearings  revealed  dif- 
ficulties  with   the  measures   previously 
Introduced. 

Today  along  with  five  other  members 
of  the  Ways  and  Mean*  Committee  I  am 


SCHOOLBUS  SAFETY:   SOME 
TIMELY  ARTICLES 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gen- 
tleman from  Illinois  (Mr.  Young i  Is  rec- 
ognized for  5  minutes. 

Mr.  YOUNG,  of  Illinois  Mr  Speaker 
the  Subcommittee  on  Commerce  and  Pi- 
nance  of  the  Committee  on  Interstate 
and  Foreign  Commerce,  on  which  I  serve 
has  been  conducting  hearings  on  the 
need  for  improved  safety-  laws  pertaining 
to  schoolbuses.  We  hope  to  have  legls- 
laUcDn  ready  shortly  for  presentaUon  to 
the  House 

In  the  meanUme,  Charles  Nicodemus 
a  reporter  for  the  Chicago  Dally  News' 
has  prepared  two  well -documented  and 
timely  articles  on  the  subject  of  school 
bus  safety  for  his  newspaper's  "Inslghf 
column.  They  appeared  on  December  10 
and  11.  I  insert  these  articles  In  the 
RxcoRB  for  the  benefit  of  my  colleagues 
and  In  support  of  the  need  for  Improved 
school  bus  safety. 

SCHOOLBt-g     SArXTT:      D.ADLT     Mtth— FAm-TT 

HTATiancs   Hmi   Alaxuino   Rim   ut   acci- 

DDfTB    DT7»    to    Foot    iNaFtCTTON,    ICNOHVC 

or  Basic  Rttlb 

(By  Charles  Nicodemus) 
When   peppery.   hin<toome   Jefferv   K»iSer- 

behind  the  «:hool  bus  thst  had  Just  dropped 

t^fit       '  "'^  ^'^  ^^'^^  "°«  »»>•" 

An^.1'!^  minute,  later  la  the  arms  of  his 
anguished,  outraged  f.ther-kUled  just  as 
««ly  by  the  taction  of  the  stTL  of  ni" 
noto  and  the  federal  government  as  by  the 

Evanston  youth  with  three  speeding  con vlc- 

The  story  of  Jeffery  Kaiserman's  death  sU 

ntt^.T,l\^'  "^'y  °^  '°  •«:W«nt  that 
never  should  have  been. 

It  happened  largely  because  riding  m  a 
•choolbus  had  been  widely  touted  L  the 
8aie«  form  of  motorized  transportation 

In  reality,  school  bus  accidents  in  njl- 
nou  are  soaring  Accidents  have  more  than 
doubled,  and  deaths  tripled  since  loae-niu- 
though  the  statUtlcs  are  moaUy  hidden  from 
the  public  The  same  situation  almost  cer- 
Ulnly  prevaUs  nationwide 


Under  Illinois  regulations  gi  vernlr.g  schcol 
bus  operations  JeSery  Kalserniac  ui-dlnarlly 
would  have  been  ;et  out  of  the  bus  on  the 
same  side  of  the  streei  as  his  home  at  3045 
Davis.  If  pxifislble  There  was  nothing  to  pre- 
vent 11   B\it  he  was  n^'t 

Alternatively,  when  croeslag  to  his  house 
under  the  drivers  watchful  eye.  he  should 
have  walked  up  t.^e  curb  10  feet  In  front  of 
tba  bus,  then  stayed  there  until  the  driver 
checJced  traffic  and  gave  him  the  signal  to 
croes. 

But  Jeffery  had  never  been  taught  this. 
Neither  had  the  youthf-,;:  school  bus  driver, 
a  second-year  Northwestern  University  grad- 
uate student  from  North  Carolina,  driving 
here  with  an  out-of-st,ate  license 

Another  factor  ordlnartly  ml^ht  have  saved 
Jeff.  Thoee  big  re<l  lights  on  the  school  bus. 
flashing  on  and  off  dvirlng  unloading,  might 
have  alerted  the  onrush tng  cab 

But  the  bus  signal  lights  weren't  working. 
The  owner  later  said  he  had  ;>een  directed  to 
disconnect  them  by-  <3i  all  people — an  In- 
spector at  a   state-supervised   safety   lane. 

The  bus.  a  remodeled  !4-pa.s8enger  van.  did 
not  measure  up  to  in.'ipei-tu.n  standards  as 
a  fuUy  equipped  school  bus.  There  were  only 
three  lights  instead  of  four.  plu.s  other 
deficiencies. 

80  the  lights  were  ordered  disconnected, 
and  the  vehicle  was  passed  through  the  lane 
as  a  truck. 

However,  chances  are  that  this  particular 
sequence  of  events  never  would  have  hap- 
pened— and  Jeffery  ECalsennan.  one  of  the 
best-liked  boys  In  his  4tb  grade  class  at 
Skokle's  Walker  School  might  be  alive  to- 
day— if  it  bad  been  a  public  school  bus  from 
which  he  alighted. 

But  Jeff  had  been  coming  home  from 
Tuesday  afternoon  Hebrew  school,  and  the 
bus  was  a  private  vehicle,  owned  by  a  school 
bus  contractor,  Howard  Becker  of  Skokle. 

Federal  safety  standards  require  the  state 
of  Illinois  to  supervise  Beckers  three  buses 
and  their  part-time  drivers,  just  as  It  Is  sup- 
posed to  supervise  public  school  buses  and 
drivers.  i" 

But  because  school  bus  transportation  is 
supposed  to  be  super  safe,  there  has  been  no 
apparent  sense  of  urgency,  and  Illinois  has 
not  yet  passed  the  federally  required  law 
that  would  have  brought  Howard  Becker's 
bus  fully  under  state  control. 

Furthermore,  because  school  bxxa  trans- 
portation IS  presumed  to  be  so  safe,  the 
federal  government  has  not  preasured  Illinois 
or  any  other  state  into  speedy  full  compliance 
with  Its  school  btis  operating  safety  standard 
No.  17.  This  despite  the  fact  that: 

The  content  of  meet  of  the  propoeed  stand- 
ard was  first  publicized  In  June,  1070. 

It  was  formally  naade  effective  In  May.  1972. 
18  months  ago. 

Illinois'  faUure  to  enact  the  required  law 
la  not  entirely  characteristic  Ironically, 
nilnols  Is  one  of  the  more  progressive  states 
In  school  bus  safety. 

Just  last  week.  State  Bupt.  of  Public  In- 
struction Michael  Bakalls  published  an  up- 
dated manual,  effective  April  1,  1974,  that 
■eta  toughened-up  requirements  for  the 
manufacture,  equipping  and  operation  of  ail 
types  of  .school  buses,  sold  In  Illinois. 

Only  a  handful  of  other  states  have  gone 
as  far  or  farther 

•We're  proud  of  our  record  In  Illinois," 
tald  Ralph  Sarto.  Bakalls'  state  dlrectcx'  of 
public   transportation 

Sarto  Is  a  hardworking  public  servant  who 
says  he  took  considerable  heat  from  certain 
sections  of  the  school  bus  Industry  in  ptish- 
Ing  through  sereraJ  of  the  new  and  updated 
regulations. 

"We  carry  more  than  a  million  students 
a  year,  in  more  than  10,000  buaea,"  he  points 
out. 

"In  1872.  there  were  just  3  achool  bus- 
oonnected    tipath.s   in   Illinois,   and  only   223 


reported  school   bus  accidents."  he  wrote  In 
a  recent  state  publication 

U:. fortunately,  through  no  fault  of  Sarto, 
his  key  statistics  are  substantially  In  error. 

The  state's  Department  of  Transportation, 
which  compiles  its  statistics  directly  from 
police  accident  refxsrts.  says  the.-e  were  10 
school  bus  related  deaths  In  1972,  not  3,  and 
l.eve  school  bus  accidents,  not  223 

Why   the  staggering   discrepancy' 

Sarto  L<>  dependent  for  his  statistics  on 
reports  submitted  by  school  principals 
through  school  districts  and  county  super- 
intendents That  system  apparently  has  two 
serlciUj  shortcomings; 

In  must  st.ales,  Includitig  Illinois,  only  ac- 
cldents.  injuries  and  deaths  involving  public 
school  bu-ses  ur  bus  contractors  serving  public 
schools,  get  reported  ae  the  "official"  pub- 
lished statistics,  compiled  and  publicized  by 
the  National  Safety  Council 

Accidents  Involving  parcKThlal  and  private 
school  buses  of  all  sizes  are  left  out. 

Since  the  number  of  nonpublic  school 
buses  Is  by  no  means  that  sizable,  a  signif- 
icant part  of  the  disparity  must  come  from 
the  failure  of  Irjoal  6<-hools  and  school  dls- 
trlcts  to  report  all  accidents  and  injuries 
The  police,  however,  learn  the  true  picture-— 
because  they  either  axe  called  x-o  the  sf^ene 
Cv  are  notified  for  Insurance  purposes 

But  Bakalls'  office  Is  not  told 

ACCmE.VT    N-IVJOl    HAPPENED 

This  means  for  instanfe,  that  JefTery 
K&lserman  will  never  be  dead — In  the  eyes 
of  the  su[>erlntendent's  "official"  tabulators 

This  means  that  even  though  two  stand- 
ard-alze<l  parochial  school  b',i6a6  got  bejiner 
headlines  when  they  slammed  Into  each 
other  Sept.  26  In  southwest  suburban  Worth, 
Injuring  10  people,  the  accident  never  hap- 
pened— as  far  as  Illinois'  "official"  statistics 
are  concerned. 

Ttiis  means  that  when  an  erring  motor- 
cyclist crashed  he&don  Into  the  small  yel- 
low school  bus  serving  west  suburban  Qlen 
EUyn's  Junior  VUlage  private  nursery  school, 
the  bus  driver,  Mrs  Doris  Mercer,  41,  of 
Wheaton — who  was  killed  by  the  impact — . 
wasn't  an  "nilnols  school  bus  fatality." 

The  Importance  of  thoee  omissions — and 
the  hundreds  of  others  like  them  in  lUlnoiB. 
and  the  thousands  In  other  states — cannot 
he  over-stated. 

For  the  purportedly  low  rate  of  accidents. 
injuries  and  deaths  claimed  for  school  bus 
transportation  is  widely  hailed  by  the  school 
bus  "establishment." 

Most  (but  not  all)  of  the  major  manufac- 
ttu-ers;  virtually  all  of  the  private  school 
bus  contractors  (who  operate  more  than 
one-third  of  the  nation's  some  310.000  school 
busee) ;  public  pupil  transportation  officials 
and,  moat  important,  key  f«leral  officials 
trumpet  the  "outstanding"  safety  record  of 
the  buses,  which  carry  more  than  20  million 
youngsters  a  year,  as  justification  for  the 
unconscionably  slow  pa-^  at  which  school 
bus  safety  measures  have  been  ptahed. 

The  School  Bus  Manufart  irers  Institute. 
in  testimony  submit t.ed  la-st  May  to  a  Hotise 
subcommittee  weigh  ine  new  school  bus 
safety  legislation,  wart^ed  several  times 
against  "panic"  measures,  saying  school 
buses  were  the  "safest  form  of  transporta- 
tion" known  to  man  and  should  not  be 
crttldaed  by  the  news  media,  members  erf 
Congress  and  others  who  lack  "understand- 
ing " 

A  task  force  of  experts  with  the  National 
Highway  Traffic  Safety  Administration. 
(NHTSA) — a  branch  of  the  Department  of 
Transportation — reported  six  months  ago 
that  school  buses  are  eight  times  safer  than 
cars. 

Top  officials  of  the  agency,  testifying  before 
a  House  Commerce  subcoinmlttee.  said  ac- 
cident statistics  establish  that  school  buses 
"are  40  times  safer"  than  auttxnobilea. 


Baaed  on  such  "facts"  NHTSA  traditionally 
has  given  low  priority  to  setting  and  enforc- 
ing school  bus  safety  standards 

Not  onJy  are  those  statistics  perhaps 
drastically  understated  but  a  new  type  of 
analysis  Indicates  that  even  acrord'Lng  tt  the 
accepted,  under-rep>orted  statistics,  schcx  : 
buses  actually  may  be  as  dangerous  as  aut<* 

WHAT'S      WBONC      WITH     nCt-RES 

Thomas  J  Grenchlk  of  Greenbelt  Md.,  a 
tracking  data  analyst  with  the  federal  space 
agency,  has  taken  a  hard  look  at  long-ac- 
rcpted  methods  of  computing  school  bus 
safety  <:t.atlstlcs. 

He  decided  that  computlnp  accident/!  'per 
passenger  mile"  really  told  UUle  about  school 
buses  themselves,  m  comparison  with  auto- 
mobiles, since  the  large  number  of  students 
carried  by  each  bus  ballooned  the  percentages 
to  favor  the  school  bus. 

Instead,  he  compared  nationally  accepted 
figures  on  school  bu=  accidents  per  vehicle 
mile  against  the  totals  of  auto  accidents  per 
vehicle  mile,  and  concluded  that  'school 
buses  are,  by  that  more  meaningful  standard. 
in  reality  no  safer  than  cars — and  perhaps 
slightly  less  safe." 

Orenchik  .has  submitted  his  study  to  the 
NHTSA.  which  Is  analyzing  it. 

MeanwhUe,  the  National  Safety  CotincC. 
which  accumulates  the  "official"  nationwide 
school  bus  statLstics  from  the  states,  acknowl- 
edges the  obvious  margm  for  error  in  Its  data. 

And  the  NirrSA  task  fCM'ce  has  conceded 
the  Inadequacy  of  current  school  bus  ac- 
cident repKjrting  procedures. 

More  accurate,  complete  figtires  are  "es- 
sential." the  task  force  said  Standard  17  calls 
on  the  states  to  produce  them^  but  It  doesn't 
say  how  or  when. 

School  btis  defenders  and  critics  alike  agree 
on  one  key  fact: 

Nearly  two-thirds  of  the  children  who  die 
In  school  bus-related  accidents  are  killed — as 
was  Jeffery  Kaiserman — just  outside  the  bus, 
either  by  cars  or  trucks,  or  by  the  school 
buses  themselves. 

That  phenomenon,  which  baa  been  appar- 
ent for  more  than  five  years,  would  .se«m  x->-> 
have  called  for  a  "crash"  program  of  pupil 
and  bus  driver  education  to  reduce  avoidable 
fatalities 

Yet,  while  Standard  17  calls  for  pupil  and 
driver  education  programs,  NHTSA  gave  the 
states  five  years,  until  mld-1977,  in  comply 

In  Illinois,  a  broad  smattering  of  studenU 
and  drivers  receive  quality,  state -sponsored 
guidance,  through  "workshops'  suid  newly  re- 
quired in-service  training  programs  Many  of 
the  larger  contract  operators,  like  WUlet  in 
Chicago  and  Scholastic  Transit  In  North- 
brook,  have  excellent  pro-ams  for  dr-.vers  So 
do  some  parochial  school?^  But  many  don't. 
.^.nd  pupil -rider  education  is  badiy  lacking 

Before  he  died,  Jeffery  Kaiserman  and  hl.« 
father  had  been  planning  the  family's  first 
camping  trip,  and  JefTen.'  was  permitted  to 
buy  a  small  sheath  knife  that  set  his  eyes 
shining    The  knife  was  buried  with  the  boy 

"I  iust  hope  my  son's  deatJ-.  w'j;  at  least 
serve  as  a  warning,  so  that  lives  of  other 
children  can  be  spared,  said  Kaiserman, 
tears  welling  In  his  eyes. 

But  if  experience  is  any  indicator.  It's  more 
likely  that  Kalaerman's  hopes  for  swifter  ac- 
tion in  the  field  of  school  bus  safety  will  be 
burled,  too 

A  school  bus  CKT^ened  down  a  mountain 
highway  from  Colorado's  Monarch  Pass  and 
finally  rolled  over  at  a  fining  station  spew- 
ing victims  from  the  bus  like  rag  dolls 

Of  39  children  thrown  from  the  bus,  0  died 
Of  nine  passengers  who  remained  Inside,  only 
one  even  required  hospitalization.  "Seat  belt? 
would  have  saved  ll'ves."  federal  investigator? 
said, 

SU  weeks  ago.  five  children  died  near  Madi- 
son, Ind-,  when  a  tractor-trailer  carrying  40 
tons  of  railroad  ties  plowed  into  the  side  of 


42634 


CONGRESSIONAL  RECORD  — HOUSE 


a  school  bus  trying  to  cross  ralnsweDt  US 
421. 

Investigators  said  s«st  b«iu  doubtless 
would  have  saved  two  boys  who  were  killed 
after  being  buffeted  in  the  bus  "lUte  they 
were  inside  a  washing  machine/' 

The  chronicles  are  long  on  school  bus  ac- 
cidents In  which  children  have  died  when 
flung  from  buses,  or  battered  inside  bv  im- 
pact with  seats  or  sides,  or  were  slashed  by 
ripped  metal  panels  or  glass. 

Seat  belu  would  have  saved  lives,  the  fed- 
eral government's  accident  Investigator,  the 
National  Transportation  Safety  Board,  keeps 
saying. 

But  no  school  buses  are  equipped  with  seat 
belts. 

In  fact,  the  well-known  yellow  bus — touted 
as  the  safest  vehicle  In  the  motor  transport 
world— Is  so  relatively  weak  In  places  that  the 
•eat  anchorages  and  flooring  of  most  models 
are  not  guaranteed  strcing  enough  to  take 
the  emergency  stress  of  seat  belt*. 

And  the  seat  backs  in  most  of  the  nation's 
310.000  school  buses  are  such  blatant  safety 
hazards  that  even  IT  seat  belts  could  be  in- 
stalled, their  use  m!ght  jack-knife  the  chil- 
dren's upper  torsos  forward  during  sudden 
stops,  smashing  teeth,  noses,  necks  or  fore- 
heads Into  the  tubular  handgrip  or  metal 
edging  found  along  the  tope  of  meet  seat 
backs. 

The  seats  and  anchorage*  all  should  have 
been  redesigned  and  replaced  years  a<ro.  and 
the  metal  handrails  and  edging  banned. 

The  fact  that  they  were  not  has  been  no- 
body's fault.  It  seems 

E%ery  year,  more  than  4.500  children  are 
severely  bruised  or  cut:  hare  teeth  knocked 
out.  are  crushed,  maimed  or  mangled:  Incur 
mashed  cheeks  or  noses,  or  suffer  other  In- 
juries on  school  buses— and  that.  too.  ap- 
parently Is  nobodv's  fault  or  somebody  else's 
fault. 

That's  because.  If  there  Is  one  thing  the 
nation's  school  bus  establishment  can  do 
better  than  transport  20  million  children  a 
day.  It  Is  passed  the  buck  on  safety 

That  Is  one  of  the  main  conclusions  of  a 
two-month  long  Dallv  News  survey  that  In- 
volved mere  than  lOO  interviewers  with  school 
bus  chassis  and  bodv  njakers:  contractors:  lo- 
cal, state  and  federal  officials;  congressmen 
and  legl3lat<^rs:  school  board  members:  ad- 
ministrators   bus  drivers  and  parents 

For  years,  the  NaUonal  Transportation 
Safety  Board  has  been  running  deUlled  poet- 
morteme  of  major  school  bus  accidents  and 
has  been  reporting  that 

School  bus  bodies  are  poorly  put  together 
In  severe  accidents,  they  come  apart  at  the 
seams  because  they  are  not  sufllcter'tly 
riveted,  bolted  or  screwed 

The  safety  board  said  that  because  of  this 
•long  standing  faUure  to  employ  (even) 
normal  engineering  practices  in  school  bus 
construction.'-  the  vehicles'  metal  panels  are 
ripped  apart,  permitting  children  to  be 
thrown  from  the  bus  or  sliced  up  on  lapsed 
-•r  knife-life   metal    edges 

Gas  tanks  should  be  moved  away  from 
their  present  side  just  to  the  left  and  beneath 
the  front  door  of  the  bus.  where  their  loca- 
tion Is  an  inviutlon  to  disaster  And  the 
tanks  should  be  strengthened,  or  crash 
shields  should  be  added. 

High-backed,  well  padded  seats  would  have 
prevented  countless  Injuries 

The  reaction  of  the  "school  bus  eetabllsh- 
ment"— with  the  exception  of  two  body  man- 
ufacturers—usually  has  been  to  point  at 
somebody  else  when  confronted  bj  these 
reports 

Itoet  school  bus  body  manufacturers  em- 
phasize that  they'd  be  happy  to  put  aU  kinds 
of  safety  options  In  their  products 

But  they  complain  that  the  nation's  chron- 
icaUy  underfinanced  school  boards  buy  most 
buses  through  state -required  competitive 
bids,    which    means    they    buy    vehicle*    at 


December  19,  1973 


the  lowest  cost  available  and  setUe  for  bare 
minimum  construction  and  equipment 
standards. 

"If  the  federal  government  would  promul- 
gate reasonable,  comprehensive  performance 
standards  that  applied  to  the  entire  Industry. 
»e  would  welcome  it.  "  said  Berkely  Sweet! 
School  Bus  Manufacturers  Institute  execu- 
tive director. 

Private  contractors,  who  run  about  one- 
third  of  America's  school  buses  also  insist 
they  would  welcome  uniform  federal  stand- 
ards. 

Meanwhile.  If  one  firm  buys  better-buUt 
buses  or  too  many  safety  options,  another 
Arm  operating  with  minimum  standard  buses 
can  cut  cost*  and  take  all  the  business,  they 
oomplaln. 

Coet-consclous  school  board  members  often 
contend  they  are  unaware  of  safety  options 
available,  or  are  convinced  by  dealern  that 
minimum  standard  buses  are  adequate 

As  for  those  unsafe  seat  tiacks.  moat  school 
offlclaJs  queried  said  they  had  never  heard 
that  there  are  relatively  Inexpensive  retrofit 
kits  avallabtle  for  padding  seat  back  tops. 
Maryland  made  such  retroflttlng  mandatory 
two  years  ago 

State  legislators,  such  as  Illinois'  Rep  Peter 
Pappaa  (R-Rock  Island),  chairman  of  the 
House  Motor  Vehicles  Committee,  often  say 
they  are  marking  time  on  new  school  bus 
safety  laws  "l)ecause  we  dont  want  to  do 
something  and  then  have  the  feds  come 
along  and  require   something  different." 

Pappas.  a  loni^tme  friend  of  most  vehicle 
industry  lobbyists,  has  all  school  bos  safety 
legislation  bottled  up  "under  study"  in  his 
committee.  It's  been  there  since  i-«t  spring, 
even  though  only  one  rew  federal  safety 
standard  Is  pending  that  would  relate  to  any 
of  those  proposals 

One  bottled  measure,  sponsored  by  Rep 
Susan  Catania  (R-Cnlcagoi,  calls  for'safety 
belts  In  new  school  buses.  Another.  Intro- 
duced by  Rep  Sam  McGrew  (D-Geneeeo) 
would  require  use  of  laminated  safety  glass 
throughout  the  bus;  the  um»  of  safety  gas 
tanks  I  no*  mandatory  in  New  Jersey)  plus 
padded  seats  and  side-rails. 

The  school  bus  industry  denies  that  It  ever 
fights  such  measures 

The  School  Bus  Manufacturer's  InsUtute 
(SBMI)  describes  the  Industry  as  self  regu- 
lating with  a  proven  concern  for  safe  buses. 
But  the  Industry's  performance  seems  some- 
what at  a  variance  with  Its  assertions. 

By  the  almost- universal  estimate  of  the 
safety  board,  reform-minded  legislators,  and 
Ralph  Nader's  Center  for  Auto  Safety  only 
two  bus  body  makers— Wayne,  of  Richmond 
Ind  .  and  Ward  headquartered  In  Conway 
Ark  —have  initiated  significant  structural 
changes  to  enhance  vehicle  strength  and 
safety 

Both  Wayne  and  Ward  also  have  cam- 
paigned vigorously  for  tougher  federal  safety 
standards. 

In  contrast,  the  manufactxirer's  Institute 
"warris  Congress  and  the  National  Highway 
Traffic  Safety  Administration  (NHTSA)  not  to 
push  for  "piecemeal"  adoption  of  new  safety 
requlremenU.  saying  that  standards  must  be 
considered  for  the  whole  bus  .\nd  then,  only 
after  lengthy  research  and   testing. 

MeanwhUe,  the  school  bus  manufacturing 
group  this  year  beUtedly  set  up  a  task  force 
of  its  own.  to  study  such  overall  standards 
But  the  Industry  has  failed  to  provide  suf- 
ficient financing  and  government  funds  are 
being  sought 

At  the  center  of  the  school  bus  controversy 
Is  the  National  Highway  TraiBc  Safety  Ad- 
ministration 

The  National  Highway  Safety  Act  of  19fl« 
required  the  safety  administration  and  Its 
predecessor  agency  to  set  safety  standards  for 
all  motor  vehicles — Including  school  buses. 
But  for  years,  the  agency  concentrated  most- 
ly on  passenger  cars,  almost  ignoring  school 


buses,  because  accident  statistics  Indicated 
school  buses  were  "40  time  safer  than  cars  "' 
Now  those  often-trumpeted  statistics  ap- 
pear open  to  serious  question.  School  bus 
accldenu  are  soaring.  In  Illlnoto.  The  Dally 
News  found  the  totals  were  8  times  higher 
than  those  formally  reported  by  the  state  to 
the  National  Safety  Council,  the  only  agency 
that  compiles  and  publicizes  them  Similar 
problems  have  t)een  found  in  other  states. 
The  safety  administration's  reaction  to 
mounting  pressure  from  Capitol  Hill  and  the 
public  has  been  to  give  more  Up  service  to 
progress,  while  Increasing  the  actual  speed 
of  Its  efforts  from  the  pace  of  a  snail  to 
that  of  a  turtle 

Initially.  NHTSA  ""met"'  Its  obligations  to 
school  buses  by  promulgating  some  40  safety 
standards— most  of  them  for  autoe — and 
then  announcing,  much  later,  that  21  ap- 
plied to  school  buses.  However,  only  five 
dealt  primarily  with  school  buses"  unique 
problenw.  And  most  of  the  buses'  crucial 
problems  were  Ignored 

Here  Is  a  breakdown  on  the  agency's  action 
and  Inaction  on  school  bus  safety,  as  of  early 
December: 

Joint  and  seam  structural  strength:  The 
Issuance  of  a  proposed  standard,  belatedly 
adopting  the  tougher  Joint  strength  require- 
ments recommended  two  years  ago  by  the 
federal  Vehicle  Equipment  Safety  Commis- 
sion, has  been  promised  by  NHTSA  for  ""thla 
calendar  year  '"  But  it  Is  not  out  yet:  Its  final 
effective  date  remains  a  mystery  .  .  and 
probably  Is  far  off 

Seating:  A  long -delayed  standard — calling 
for  padded,  high-backed,  safely  anchored 
»*■*» — finally  was  proposed  In  February.  1973. 
and  scheduled  for  "Issuance""  this  year,  to  be 
effective  In  September.  1974  But  It  hasn't 
been  Issued  yet.  and  NHTSA  aides  privately 
concede  the  padded  seats  probably  won't  be 
required  until  January.   1975 

Operational  safety — beet  known  as  Stand- 
ard 17  First  promised  by  the  agency  for  July, 
1»«7,  It  was  eventually  proposed  In  July. 
1970.  and  finally  made  effective  In  June. 
1972 — then  the  sutes  were  given  an  Incred- 
ible five  years  to  Implement  It 

Eighteen  months  later.  NHTSA  still  has 
not  even  sent  the  states  a  model  training 
currlcxilum — of  the  sort  that  repeatedly 
stresses  defensive  driving,  where  It  is 
drummed  Into  the  bus  drivers  that  they  must 
never  take  chances — such  as  venturing 
rashly  Into  speeding  cross-traffic  on  a  rainy, 
murky  afternoon  That"s  what  rau«ed  the 
Madison.  Ind.  crash 

Brakes,  whose  malfunction  the  safety 
board  found  to  be  the  most  frequent  cause 
of  ""catastrophic"  school  bus  accidents.  The 
effective  dates  for  Implementing  2-year-old 
standards  requiring  improved  air  and  hy- 
draulic brakes  are  September  of  1B74  and 
197B.  respectively,  for  all  heavy  vehicles  In- 
cluding school  biivs  Yet  Detroit  Is  pushing 
to  delay  the  air  brake  standard  until  Sep- 
tember. 197S 

Now.  having  finally  lost  patience  with 
NHTSA'9  documented  history  of  procrastina- 
tion and  obfuscatlon.  Congress  is  preparing 
to  move  under  the  leadership  of  the  House 
members  such  as  John  Moss  (D-Oallf,).  Lea 
Aspin  (D-Wls  )  and  Fred  Rooney  (D-Pa). 
and  Senators  Warren  Magnuson  (D-Washlng- 
ton).  Oaylord  Nelson  (D-Wis).  Jacob  Javits 
(R-NT  ),  and  Charles  Percy   (R-ni). 

Moss'  House  Commerce  subcommittee  al- 
ready has  approved  a  new  auto  recall  hill 
that  Includes  flat  requirements  that  NHTSA 
promptly  issue  certain  school  bus  safety 
standards  And  Magnuson's  Senate  Com- 
merce Committee  opens  hearings  on  a  sim- 
ilar measure  next  month. 

I"  preparation  for  the  Senate  hearings. 
NHTSA  submitted  daU  on  the  progress  It  la 
achieving  in  making  the  yellow  school  btis 
safer 

The  agency  once  more  said  It  Is  moving 
ahead     rapidly" — which,  Percy  notes.  Is  Just 


December  19,  197S 


CONGRESSIONAL  RECORD  —  HOUSE 


42635 


wbat    the    agency    has    been    saying    since 
1967  .  .  .  many,  many  deaths  ago. 

I  wi&h  to  commend  Mr.  Nicodemus  and 
the  Chicago  Daily  News  for  their  public 
service  In  preparing  and  publishing  these 
articles  on  school  bus  safety. 


THE  FINITENESS  OF  OUR  NATURAL 
RESOURCES 

The  SPEAESni  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  Alabama  (Mr.  Edwards)  Is 
recognized  for  10  minutes. 

Mr.  EDWARDS  of  Alabama.  Mr. 
Speaker.  1973  has  been  a  year  of  in- 
creased awareness  of  the  flniteness  of 
our  natural  resources.  It  has  been  a  year 
in  which  we  have  learned,  perhaps  just 
In  the  nick  of  time,  that  we  continue  to 
accelerate  consumption  at  our  peril 
unless  we  apply  proper  thought  and 
action  to  conservation  and  development 
of  new  sources. 

The  assumption  of  unlimited  goods 
and  materials  has  come  to  a  screeching 
halt  as  item  after  item  is  Included  on  a 
growing  list  of  scarce  commodities. 
Shelley's  "pleasure  of  believing  that 
what  we  see  is  boundless"  can  no  longer 
be  indulged  in  with  respect  to  many  of 
our  resources. 

One  area  which  holds  great  promise 
in  coping  with  diminishing  natural  re- 
sources is  recycling.  I  am  today  intro- 
ducing a  bill  which  will  allow  a  tax 
credit  of  $10  for  every  ton  of  postcon- 
sumer  wastepaper  processed  in  the 
United  States  by  the  taxpayer  during  the 
taxable  year  into  new  commercially 
marketable  pulp,  paper,  paperboard,  or 
other  similar  products. 

Paper  is  just  one  target  for  recycling 
but  it  is  an  important  one.  We  generate 
about  4  billion  tons  of  solid  waste  every 
year  in  America.  Paper  is  the  largest 
single  component  of  this  waste,  compris- 
ing 40  percent  by  weight  and  70  percent 
by  volume.  Recycling  would  remove  a 
significant  portion  of  this  waste  from 
the  disposal  system  and  in  effect  plow  it 
back  into  our  supply  of  natural  resources. 
It  is  imperative  that  the  volume  of 
our  solid  waste  be  curtailed,  because  not 
only  are  we  running  short  of  timber  but 
we  are  also  literally  running  out  of 
places  to  dump  our  trash. 

Recycling  paper  would  relieve  some  of 
the  demands  on  our  valuable  forest  re- 
sources. It  would  reduce  the  amount  of 
paper  we  are  importing  and  thereby  im- 
prove our  balance  of  trade. 

Mr.  Speaker,  some  technological  snags 
remain  In  the  paper  recycling  industry, 
but  the  chief  hurdles  are  economic  ones. 
We  should  begin  at  once  to  build  a  bridge 
across  the  gap  between  what  we  know 
should  be  done  in  the  area  of  resource 
recycling  and  what  we  are  actually  do- 
ing. I  believe  my  bill,  a  tax  incentive  for 
paper  recycling,  will  help  remove  some 
of  the  economic  hurdles  and  get  us  mov- 
ing In  the  right  direction. 

Paper  consumption  will  about  double 
by  1985.  We  are  skating  on  very  thin 
Ice  if  we  continue  to  deplete  our  forests, 
adhering  to  a  once-only  use  of  paper 
products.  But  If  we  begin  a  strong  re- 
cycling program.  If  we  curb  waste.  If  we 


construct  original  paper  products  in  the 
way  most  conducive  to  later  recycling, 
we  can  avoid  the  problems  with  paper 
products  that  we  are  now  facing  with 
the  energy  shortage. 

Certainly  recycling  should  be  pursued 
diligently  with  all  our  natural  resources. 
Tax  incentives,  such  as  the  one  in  this 
bill,  need  not  be  permanent,  but  they 
are  needed  to  kick  off  the  initial  effort 
until  recycling  becomes  economically 
feasible. 

Mr.  Speaker,  it  is  our  responsibility  to 
pass  wise  legislation  to  give  recycling  a 
shot  in  the  arm.  Also,  the  Federal  Gov- 
ernment should  take  the  lead  in  usiiig 
recycled  materials  to  the  greatest  extent 
possible.  The  General  Services  Adminis- 
tration has  made  a  good  start  in  this 
regard.  I  have  previously  introduced  leg- 
islation calling  for  maximum  use  of 
recycled  paper  by  the  Federal  Grovern- 
ment  in  the  mountains  ol  paper  products 
it  consumes. 

I  am  confident  that  if  America  dedi- 
cates itself  to  conservation  of  natural 
resources,  we  can  call  a  hcJt  to  the 
mounting  number  of  shortages  facing  our 
country. 

REPORT     OP     A     SPECIAL     STUDY 
MLSSION  TO  THE  MIDEAST 

The  SPEAKER  pro  tempore.  Under 
a  previous  order  of  the  House,  the  gen- 
tleman from  Connecticut  iMr.  Steele) 
is  recognized  for  45  minutes. 

Mr.  STEELE.  Mr.  Speaker,  the  Com- 
mittee on  Foreign  Affairs,  in  its  continu- 
ing concern  for  the  foreign  policy  impli- 
cations of  the  energj-  crisis,  recently  au- 
thorized a  study  mission  to  seek  first- 
hand information  on  the  dimensions  of 
U.S.  dependence  on  oil  from  the  Middle 
East  and  the  Impact  of  the  October 
Israeli-Arab  war  on  U.S.  energy  supplies. 

I  had  the  opportunity  to  participate 
in  that  mission  alon^  with  Representa- 
tive Leo  J.  Ryan  of  California,  Mr. 
Robert  K.  Boyer,  staff  consultant,  Com- 
mittee on  Foreign  Affairs,  and  Mr.  E.  H. 
Steven  Berg,  of  my  own  congressional 
staff.  In  Saudi  Arabia,  the  study  mission 
was  joined  by  Dr.  William  A.  Johnson, 
chief  energy  adviser  to  William  Simon, 
the  Deputy  Secretary  of  the  Treasury 
and  newly  appointed  Administrator  of 
the  Federal  Energy  Administration.  The 
mission  was  cond-acted  between  Octo- 
ber 22  and  November  3. 1973. 

The  study  mission  visited  six  Middle 
Eastern  countries.  Including  Lebanon, 
Israel.  Jordan,  Kuwait,  S..udi  Arabia, 
and  EgjTDt.  as  well  as  Italy  and  the 
Netherlands,  which  are  two  of  the  larg- 
est oil-refining  countries  in  Europe.  Dr. 
Johnson  also  visited  Spain.  In  addition 
to  consultations  with  our  ou-n  Ambassa- 
dors and  key  Embassy  officers,  the  mis- 
sion's schedule  included  meetings  with 
King  Hussein  of  Jordan,  Israeli  Foreign 
Minister  Abba  Eban,  King  Faisal  and 
Minister  of  Petroleum  Sheikh  Z  .ki  Ya- 
mani  of  Saudi  Arabia,  First  Secretary 
Hafes  Ohanem  of  Egj'pfs  Arab  Socialist 
Union,  and  numerous  other  government 
ofBcIals  and  petroleum  experts. 

I  want  to  take  this  opportunity  to  ex- 
press my  personal  appreciation  for  the 
assistance,  cooperation,  and  hospitality 


extended  to  the  study  mission  by  officials 
of  the  U.S.  Departments  of  State  and 
Treasury,  and  the  U.S.  missions  in  the 
countries  visited. 

*HB    DEVSLOPINC    ENERCT    CRISIS 

Representative  Silvio  Contk,  of  Massa- 
chusetts, and  I  held  congressional  hear- 
ings on  New  England's  emerging  energy 
problem  in  Middletown,  Conn.,  last  May. 
Our  focus  then  was  on  the  looming  gaso- 
line shortages  which  threatened  to  hit 
parts  of  New  England  during  the  sum- 
mer, but  most  of  our  witnesses  agreed 
that  the  outlook  was  even  more  serious 
for  fuel  oil  supplies  during  the  coming 
winter. 

The  furf  oil  picture  became  clearer 
and  bleaker  in  July  of  this  year  when 
the  f>etroleum  industry  research  foun- 
datlOTi  issued  a  report  which  described 
the  outlook  for  \^inter  fuel  oil  supplies 
as  "quite  precarious"  and  stated  flatly 
that  fuel  oil  shortages  could  be  expected 
to  develop. 

By  September,  it  was  clear  that  unless 
the  Northeast  had  an  unusually  mild 
winter,  the  country  would  face  a  fuel  oil 
shortfall  of  between  2  and  5  percent  dur- 
ing the  winter  months. 

Then  in  October,  war  erupted  in  the 
Middle  East  and  the  Arab  oil  producing 
states  adopted  a  policy  of  using  oil  as  a 
weapon  to  force  the  United  States,  and  to 
a  lesser  extent  America's  allies,  to  reduce 
their  support  for  Israel  and  press  the 
Israeli  Government  to  accept  a  settle- 
ment favorable  to  the  Arab  States.  Spe- 
cifically, the  Arabs  reduced  their  oil  ex- 
ports to  Europe  and  Japan  and  cut  off 
all  oil  shipments  to  the  Netherlands  and 
to  the  United  States. 

The  Arab  oil  boycott  against  the 
United  States  was  first  met  by  expres- 
sions of  confidence  by  administration  of- 
ficials that  the  coimtry  could  survive  the 
boycott  with  relatively  little  difficulty. 
For  example.  In  order  to  minimize  the 
seriousness  of  the  boycott,  administra- 
tion officials  repeatedly  cited  figures  in- 
dicating that  the  U:uted  States  was  de- 
pendent on  the  .Aj-ab<;  for  onli"  6  to  8  per- 
cent of  Its  oil.  On  October  16,  OD  Daily, 
the  bible  of  the  U.S.  oil  industry,  ran  a 
banner  headline  quoting  no  less  a  per- 
sonage than  Charles  Di  Bona,  the  Dep- 
uty Director  of  the  White  House  Energy 
Policy  Council,  as  stating  that  the  Mid- 
east oil  loss  was  "manageable."  Accord- 
ing to  the  article,  Di  Bona  repeated  that 
the  United  States  was  dependent  on  the 
Arabs  for  only  6  to  8  percent  of  its  oil 
and  expressed  the  view  that  there  would 
not  be  any  need  for  rationing. 

THE    DIMENSIONS   OT    VS.    DEPENDENCE   ON    ARAB 

on. 

The  study  mission  quickly  found  these 
statistics  to  be  Inaccurate.  Moreover,  it 
concluded  that  the  general  acceptance 
of  these  statistics  by  the  administratlori. 
Congress,  and  the  public  not  only  slowed 
our  Govemments  respor^se  to  the  oil  cut- 
offs, but  did  a  disser\ice  to  the  Ameri- 
can people  by  leading  them  to  believe 
that  the  cutoffs  would  not  significantly 
affect  them. 

Even  during  the  prellir.lr.ary  stud,v  for 
our  trip,  we  concluded  that  the  United 
States  was  more  than   10  percent  de 
pendent  on  Arab  oil.  Further  inquiry 


42636 


CONGRESSIONAL  RECORD  — HOUSE 


revealed    that   the   true   proportion    of 
dependence  Is  not  measured  by  the  ship- 
ments of  crude  oil  to  the  United  States 
alone.  The  extent  of  that  dependence  Is 
established  by  combining  four  factors: 
First,    direct    crude    shipments    to    the 
United    States,    second.    Indirect   ship- 
ments of  crude  which  are  transshipped 
through  other  countries;  third.  Imports 
of  refined  petroleum  products  from  both 
Arab  refineries  and  refineries  of  tiiird 
countries  which  process  Arab  crude  for 
U.S.  Markets;  and  finally ,  fourth,  by  add- 
ing  barter  shipments    which    represent 
trades  of  oil  with  countries  such  as  Can- 
ada, which  is  enabled  to  pursue  such 
transactions  due  to  its  Imports  of  Arab 
oil.  The  addition  of  these  factors  shows 
that  the  United  States  depends  on  Arab 
sources  for  between  14  and  18  percent 
of  Its  total  petroleum  use.  The  percent- 
age could  be  larger  If  one  takes  Into  ac- 
count that  several  of  the  Arab  countries 
were  scheduled  to  greatly  increase  their 
shipments  to  the  United  States  begin- 
ning in  late  19^13  in  order  to  meet  a  sharp 
increase  in  U.S.  demand  and  to  offset 
declining  U.S.  domestic  crude  oil  pro- 
duction. In  direct  shipments  alone,  the 
United  States  was  taking  as  much  as  300 
percent  more  oil  per  day  in  the  months 
preceding  the  cutoff  than  it  had  in  1972. 
In  all,  the  United  States  imports  more 
than  30  percent  of  the  petroleum  it  needs 
for  domestic  consumption.   During  the 
shortages  last  winter,  it  became  appar- 
ent that  our  domestic  oil  industry  was 
no  longer  capable  of  Increasing  produc- 
tion   to   meet   our   peak   domestic   de- 
mand. In  fact,  some  analysts  were  not 
even  sure  that  the  United  States  could 
Import  enough  crude  oil  and  finished 
product  to  satisfy  demand  for  tills  win- 
ter. Domestic  production  of  petroleum 
for  1973  had  been  estimated  by  the  US. 
Bureau  of  Mines  to  be  10,961.000  barrels 
per  day.  compared  with  a  demand  of 
17.455,000  barrels  per  day.  Of  the  6.494.- 
000  barrels  per  day  shortfall  between 
domestic  demand  and  supply.  6,251.000 
barrels  per  day  were  to  be  made  up  by 
Imports,   leaving  a  shortage  of  223.000 
barrels  per  day.  Domestic  production  was 
expected  to  drop  to  10.788,000  barrels  per 
day,  though,  before  the  end  of  the  year. 
This  drop  would  have  left  a   7.737.000 
barrels-per-day  deficit  forecast  between 
domestic  supply  and  demand.  Before  the 
Arab  cutoff,  oil  Industry  officials  pro- 
jected that  they  could  Import  7.435  000 
barrels  per  day  of  the  shortfaJl.  but  even 
this  level  of  imports  would  have  left  a 
net  shortage  of  302.000  barrels  per  day 
The  full  effects  of  the  cutoff  have  not 
and  will  not  be  felt  unUl  late  January 
The  world  trade  In  oU  is  based  upon  a 
myriad    of    factors    including:     tanker 
availability,  refining  capacity,  types  of 
crude  oil  available,  the  actions  of  major 
oU  companies  and  actions  of  Individual 
governments — to  name  only  a  few.  Small 
additional  amounts  of  oil  can  probably 
be  purchased  from  other  countries  such 
as  Iran  and  Indonesia,  both  of  which 
have  stepped  up  production.  But  one  fact 
remains  painfully  clear:   there  Is  abso- 
lutely no  other  source  of  oil  which  can 
replace.    In   the   Immediate   future,    the 
tremendous  amounts  of  petroleum  the 
United  States  and  other  Industrial  na- 


December  19,  197S 


uons  have  lost  because  of  the  Arab  ac- 
Uona.  To  clearly  understand  the  dimen- 
sions of  the  cutback,  we  analyzed  both 
the  past  and  present  direct  and  indirect 
shipments  in  detail. 

OtXZCr  OEPKNDKNCE  ON  AKAB  OIL 

Today  the  countries  of  the  non-Com- 
munist world  have  proved  reserves  of 
crude  oil  which  will  last  a  little  more 
than  30  years  at  current  rates  of  con- 
sumption. By  a  quirk  of  geography,  65 
percent  of  these  known  reserves  are  to 
be  found  In  the  Middle  East:  by  includ- 
ing North  Africa,  the  figure  expands  to 
71  percent.  The  Western  Hemisphere  ac- 
counts for  only  12  percent  of  the  total 
proved  world  reserves. 

These  figures  make  it  evident  that  in 
terms  of  oil,  most  of  the  western  indus- 
trialized nations  and  Japan  must  look  to 
the  Middle  East  and  North  Africa  for 
their  Increased  requirements  as  fields  In 
non-Arab  regions  begin  to  peak  out.  In 
fact,  Europe  now  gets  87.8  percent  of 
Its  oU  from  Arab  States. 

The  importance  of  the  Middle  East 
and  North  Africa  Is  established  not  only 
by  the  fact  that  they  account  for  almost 
one-half  of  the  average  dally  production 
of  petroleum  by  non-Communist  nations, 
but  also  that  consimiing  nations  are  ac- 
tually dependent  on  a  very  few  of  them 
For  Instance,  Saudi  Arabia,  with  esti- 
mated reserves  of  over  138  billion  barrels, 
has  roughly  21  percent  of  the  total  re- 
serves of  the  world.  Algeria,  Iran,  Iraq, 
Kuwait,  and  Libya  together  have  an  ad- 
dlUonal  236  billion  barrels.  By  compari- 
son, Soviet  Russia  has  75  billion  barrels- 
China  has  19  billion  barrels;  Indonesia 
10  billion  barrels;  the  United  States,  37 
billion  barrels;  and  Canada  10  billion 
barrels. 

Until  1967.  the  United  States  was 
largely  self-sulHclent  in  energy  sources 
especially  in  oil.  For  Instance,  In  1950, 
America  Imported  only  8  percent  of  the 
crude  oil  required  for  domesUc  consump- 
tion. By  1973.  Imports  accounted  for 
about  one-third  of  our  oU  requirements. 
Until  recently,  the  overwhelming  amount 
of  U.S.  oU  Imports  came  from  Western 
Hemisphere  suppliers  But  Increasingly, 
the  source  of  Incremental  crude  oil  Im- 
ports has  been  the  Middle  Eastern  and 
North  African  oil  producing  countries. 

Since  the  mld-1960's.  sources  such  as 
the    Caribbean.     South     America,     and 
Canada  have  been  peaking  out  In  rates 
of  production,  or  have  been  requiring 
more  of  their  output  for  domestic  con- 
simiptlon  because  of  Increasing  internal 
demand    At  the  same  time,  the  United 
States  has   been  increasing  its   annual 
consumption  of  oil  by  more  than  5  per- 
cent each  year,  and  Its  volume  of  Im- 
ports by  more  than  13  percent  each  year 
During  the  period  of  1967-72.  US.  do- 
mestic production  of  crude  oil  was  In- 
creasing by  a  slight  1.8  percent  per  year. 
For  Americans,  the  confllcUng  trends 
of  downward  domestic  production  and 
skyrocketing  domestic  consumption  were 
not    fully    appreciated    until    major    oU 
companies  announced  tn  1969  that  some 
of  the  richest  oil  fields  In  America  had 
been  overestimated  In  terms  of  reserve 
capacity.  The  oU  fields  of  Southern  Loui- 
siana and  Eaat  Texaa  had  been  some  of 
the  richest  In  the  North  American  con- 


tment.  However,  they  were  very  old  fields 
which  began  declining  when  they  were 
opened  to  full  producUon  capacity.  This 
discovery  pushed  Americans  to  Import 
large  supplies  of  oil,  in  order  to  satisfy 
their  increasing  consumption. 

The  logical  source  of  this  oil  was  the 
Middle  East  and  North  Africa.  Major 
American  oil  companies  were  the  princi- 
pal producers  in  countries  witii  the  rich- 
est fields  and  the  largest  reserves,  and 
these  countries  were  willing  to  ship  in- 
creasing amounts  of  oil  to  the  United 
States.  In  addition,  some  Middle  East 
crude  oil  was  selling  for  as  little  as  $1  25 
per  barrel  in  1970.  at  a  time  when  some 
U.S.  crude  oU  was  triple  that  price  The 
trend  was  augmented  because  oU  had 
become  the  most  desirable  fuel  for  en- 
vironmental purposes,  cost  and  conveni- 
ence In  the  United  States. 

The  foUowlng  table  illustrates  the  im- 
portance to  the  United  States  of  Arab 
crude  oil  Imports  In  relaUon  to  other 
suppliers; 

U.S.  CRUDE  OIL  IMPORTS.  1973 
III)  ttiouundi  of  barrels  ptr  d«y| 


1st  half 
0*1973 


July         August 


Arib  supplien: 

Siudi  AratMt 

Libya 

Al^aru 

Unitad  Arab  Emiratai.. 

Kuwait 

Tunisia 

E»pt 

Oman 

Sy1!a"r""III"".'": 
Qatar 

Subtotal 

Non-Arib  suppliarj: 

Iraa 

Niniia 

Otnar    Eastarn    Hamt- 

iplMra .... 

Canada 

V«n«iu«la     

Other    Mtstarn    Hami-' 

•pfiara 110.2 

110.2 


322  8 

349.7 
81.6 
65.7 
46.4 
.1 
30.2 

638.S 
197.6 
162.5 
100.1 
K.7 
32.0 
36.8 

164  g 

143  9 

87.2 
48. 1 

21.6 
16.3  . 

12.2 
S.7  . 
14  . 

S2.2 

14. 5 
ILl 

3.1  . 

5.3 

819.1 

625.9 

1,285.1 

160.3 
370.1 

252.4 

1. 176. 1 
503.1 

135.3 
303.3 

250.4 

1. 194.  3 

465.7 

230.5 
605.8 

348.5 

908.6 

704.4 

66.8 
66.8 


181.5 
181.5 


Subtotal. 
Total.... 


2. 572. 2     2. 416. 0       2. 979. 3 

3. 391. 3     3.041.9       4.26<4 


tNDIKSCT    IMPORTS    OW    AKAB    OIL 

Underestimates  of  the  impact  of  the 
Arab  embargo  on  the  United  States  are 
largely  due  to  a  failure  to  recognize  the 
extent  to  which  the  United  States  is 
dependent  on  foreign  refineries  for 
essential  refined  petroleum  products  The 
study  mission  found  that  many  refined 
petroleum  products  which  are  essential 
to  the  United  States  have  been  produced 
primarily  abroad  and,  to  a  great  extent, 
from  Arab  crude  oil.  because  the  United 
States  has  not  built  domestic  refineries 
In  the  last  6  years. 

With  the  onset  of  the  winter  heating 
season  in  the  United  SUtes  the  loss  of 
foreign  sources  leaves  the  United  States 
particularly  vulnerable  to  shortages  of 
two  basic  fuels,  residual,  and  distUlate 
oil.  Residual  oil  Is  used  mainly  as  a  boiler 
fuel  in  industrial  processes  and  for 
generating  electricity.  DLstiilate  oil 
is  used  for  space — home— heating  and  as 
a  fuel  for  diesel  engines. 

In  addition  to  causing  general  eco- 
nomic dislocations,  the  shortage  of 
residual  oil  will  have  an  immediate  ef- 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42637 


feet  on  two  areas  of  the  country.  These 
regions  will  be  New  England  and  to  a 
lesser  degree,  the  upper  Midwest. 

Roughly,  one-fourth  of  the  residual 
fuel  oil  imported  by  the  east  coast  is  re- 
fined from  Arab  oil  Residual  oil  is  used 
as  a  primary  fuel  to  produce  72.8  per- 
cent of  the  electricity  produced  In  New 
EIngland  and  37  percent  of  the  electricity 
generated  in  the  Mid-Atlantic  States  of 
New  York,  Pennsylvama,  and  New  Jersey. 
U.S.  stocks  of  residual  fuel  oil  on  Novem- 
ber 30,  1973  were  54.403.000  barrels  as 
compared  with  55.77.5,000  barrels  a  year 
ago.  This  reflected  a  situation  which  was 
not  yet  significantly  affected  by  the  em- 
bargo. With  greatly  increased  demand 
pressures  and  lower  stocks  threatened  as 
a  result  of  the  cutoff  of  Arab  oil,  a  serious 
shortage  appears  Inevitable  To  com- 
pound the  problem,  most  of  the  residual 
oil  used  on  the  east  coa.st  of  the  United 
States  is  imported,  and  the  production 
of  residual  oil  in  U.S.  refineries  is  limited 
because  of  our  nearly  complete  depend- 
ence m  that  region  in  recent  years  on 
imported  supplies  The  demand  for 
residual  oil  in  1972,  for  example,  was 
925,647,000  barrels:  of  this,  over  two- 
thirds,  or  637,401,000  barrels,  was  im- 
ported. 

Even  before  the  Arab  embargo,  the 
United  States  was  facing  a  serious  short- 
fall in  its  supply  of  distillate  fuel.  Stocks 
of  distillate  fuel  in  the  first  week  of  No- 
vember—203,656.000  barrels— for  in- 
stance, were  only  slightly  higher  than 
stocks  a  year  before — 197,750,000  barrels. 
The  3-percent  gain  In  supply  was  more 
than  offset  by  an  estimated  increase  of 
demand,  which  was  put  at  more  than  10 
percent  during  1972. 

Furthermore,  even  before  the  Arab 
embargo,  the  U.S.  DepEirtment  of  the 
Interior  was  predicting  that  a  cold  winter 
in  the  United  States  would  force  us  to 
Import  an  additional  800,000  barrels  per 
day  of  distillate  oil  to  meet  the  demand 
for  heating.  During  the  shortages  last 
winter,  distillates  were  imi»orted  at  an 
average  rate  of  400,000  barrel.^;  per  daj- 
and  most  of  the  distillates.  80-85  percent. 
came  from  reflnenes  m  the  Caribbean, 
with  the  remainder  coming  from  E\irope. 
Nearly  all  of  the  European  distillate  and 
more  than  one  half  of  the  Caribbean 
distillate  were  based  on  crude  oil  from 
the  Middle  East  or  North  Africa. 

For  this  heating  .season,  oil  marketers 
In  the  United  States  were  planning  to  in- 
crease their  imports  of  distillates  from 
several  countries  in  Europe  that  were 
thought  to  have  excess  refining  rapacity. 
These  plans  were  spurred  by  the  Presi- 
dent's announcement  in  April  that  com- 
panies in  the  United  States;  would  be  free 
to  import  unlimited  amounts  of  crude, 
residual,  and  distillate  oil  with  only  min- 
imal license  fees  on  that  oil 

Several  factors  figure  into  the  in- 
creased US  dependency  on  Imported 
residual  oil  and  distillate  oil  in  recent 
years.  Among  these  factors  are: 

The  Increasing  demand  for  diesel  fuel 
by  trucking,  farming,  shipping,  and  pub- 
lic transportation  users ; 
The  use  of  dlstiUate  oil  as  a  backup 


fuel  during  periods  of  natural  gas  inter- 
ruptions which  have  been  occurring  with 
greater  frequency  during  colder  .Tionths; 
The  growing  use  of  both  residual  oil 
and  distiyate  oil  by  electric  utilities; 

The  almost  total  emphasis  by  U.S,  re- 
finers en  more  profitable  products  such 
as  gasoline; 

The  switch  by  several  heavy  industries, 
such  as  the  steel  Industry,  from  coal  to 
oil  for  environmental  considerations; 

The  overall  convemence  and  relatively 
lov  cost  of  oil  as  a  feedstock  for  many 
chemical  processes. 

The  April  18,  1973,  exemption  of  re- 
sidual oil  from  import  quotas;  and 

Lack  of  suCBcient  new  refining  capacity 
in  the  United  States  for  the  last  5  or 
6  years. 

From  a  practical  standpoint,  I  was 
particularly  concerned  about  the  depend- 
ence on  imports  of  refined  oils,  because 
any  disruption  m  a  tight  market  could 
leave  certain  areas  of  the  country  drasti- 
cally short  of  basic  energy  sources.  For 
instance.  New  England,  with  6  percent  of 
the  Nation's  population,  uses  almost  21 
percent  of  the  Nation's  requirement  of 
No.  2  home  heating  oU.  and  is  almost 
totally  dependent  on  foreign  sources  for 
this  fuel.  A  disruption  of  this  supply 
could  leave  New  England  without  heat  in 
the  coldest  months  of  the  year  unless  a 
distribution  system  was  established  to 
meet  its  demand  with  domestic  oU. 

Although  it  was  difficult  to  gage  the 
exact  effects  of  the  Arab  threats  during 
our  mission,  .subsequent  events  have 
shown  that  the  threats  have  been  very 
effecUve  and  have  broken  the  unity  and 
cooperation  both  between  the  United 
States  and  Europe  and  between  members 
of  the  European  Common  .Market  Itself 
It  appears  that  many  of  the  nations  of 
Europe  live  in  fear  of  each  new  Arab  re- 
quest and  will  accept  almost  any  demand 
the  Arabs  make  of  them  in  terms  of  re- 
stricting movement  of  either  crude  oil  or 
refined  products. 

Even  Canada,   one  of  the  previously 
supfxjsed  secure  sources  of  crude  oil  and 
refined  products  has  been  affected   The 
Canadians  are  already  limiting  oil  ex- 
ports to  the  United  States  Until  recently 
Canada  found  It  expedient  to  sell  the 
surplus  oil  and  gas  produced  in  Western 
Canada  to  the  United  States,  rather  than 
transport  it  to  Eastern  Canada   In  turn, 
the  Canadians  bought  large  quantities  of 
Middle  East  oU.  part  of  which  has  been 
shipped  through  a  pipeline  which  starts 
at  Portland,  Maine,  and  carries  the  im- 
ported oil  to  Montreal  T?ie  United  States 
could  lose  up  to  500.000  barrels  per  day 
of  oil  if  the  Arabs  are  successful  In  their 
demands  that  the  Canadians  halt  all  ex- 
ports to  the  United  States  in  return  for 
continued  Arab  oil  shipment  to  Canada. 
Finally,  all  of  the  cutoffs  of  indirect 
shipments  wUl  Increase  the  competition 
for  limited  supplies  from  other  produc- 
ing  areas   such   as  Venezuela,   Nigeria, 
Iran,  and  Indonesia   To  determine  some 
of  the  effects  of  the  embargo  and  cuts  in 
production,  we  spoke  with  governmental 
leaders  and  oil  industry  officials  tn  tliree 
European  countries,   which  would  have 
been  principal  sources  of  Imported  re- 
fined  products  for  the  Eastern  United 
States  this  winter. 


THE  smjATION  IN  TttXt 

Paced  with  cutbacks  of  oil  which  pro- 
vide ItaUans  with  74  percent  of  their  en- 
ergy, the  ItaUan  Government  responded 
to  warnings  from  the  National  Inde- 
pendent Petroleum  Distributors  Associa- 
tion—Assopetroll— and  put  all  heating 
oils  under  export  licensing  restrictions  in 
mid-October.  The  restrictions,  as  they 
now  stand,  will  allow  oil  to  be  exported 
to  other  Common  Market  countries — ex- 
cluding Holland— but  not  to  the  United 
States.  Assopetroll  is  also  calling  for  the 
Government  to  compel  oil  companies  to 
market  a  set  percentage  of  their  refined 
products  in  Italy  to  meet  domesUc  de- 
mands. It  has  urged  further  that  Gov- 
ernment 'discipline"  distribution  and 
consumption  of  liquid  heating  oils  in 
relation  to  their  confirmed  availabmty. 

Italy's  Minister  of  Foreign  Trade  ac- 
knowledged in  a  recent  press  conference 
that  export  licensing  measures  are  main- 
ly "psychological'  witii  litUe  practical 
hkelihood  of  resolving  domestic  supply 
problems.  Reports  indicate  that  an  over- 
whelming share  of  Italy's  heating  oil  ex- 
ports— about  75  percent — go  to  Common 
Market  countries,  leaving  only  about 
one-quarter  of  heating  oil  exports  sub- 
ject to  Government  management. 

The  Italian  petroleum  market  tradi- 
tionally has  been  open  and  relatively 
free  of  Government  controls  with  respect 
to  the  Importation  and  exportation  of  pe- 
troleum products.  The  Government  does 
control  the  pricing  of  products  as  well  as 
the  authorization  of  additional  refining 
capacity  and  sen-ice  station  outlets. 

While  Government  sources  point  to 
the  relative  openness  of  the  Italian  mar- 
ket, there  were  In  recent  months  signs  of 
growing  support  for  a  larger  Government 
role  In  securing  supplies  in  a  tight  seU- 
er's  market.  Itahan  concern  is  based  on 
the  belief  that  the  international  com- 
panies can  no  longer  be  rehed  upon  to 
supply  the  needs  of  the  countr>-  This 
concern  has  led  to  suggestions  of  direct 
Government  relationships  with  producer 
countries. 

All  of  these  observations  lead  us  to  be- 
lieve that  even  though  Italy  has  the 
largest  refining  capacity  in  Europe, 
American  fuel  dealers  would  not  have 
been  able  to  buj'  all  the  heating  oil  thev 
needed  on  the  ItaUan  market  because  the 
Italian  Government  wanted  to  stabilize 
both  supply  and  prices  by  restricting  ex- 
ports. Thus,  even  without  the  embargo. 
U.S.  purchases  from  Italy  would  prob- 
ably have  been  limited. 

Up  until  the  time  of  the  Arab  embargo, 
Italy  was  exporting  about  134.000  barrels 
per  day  of  oil  to  the  U.S.  market,  but 
could  have  hicreased  exports  greatly.  As 
of  December  1972.  Italy's  36  refineries 
had  a  total  authorized  annual  capacity 
of  150  million  tons  but  had  only  proc- 
essed 123  5  mllhon  tons  of  oil,  oi  which 
27.4  million  tons  were  exported 

Because  Arab  countries  have  cut  off  all 
oil  shipments  to  individual  Italian  refin- 
eries which  shipped  oil  products  to  the 
United  States,  we  can  expect  no  products 
frcwn  Italy  until  the  Arab  States  agree  to 
lift  the  embargo  E^'en  then,  the  ^jecter 
of  future  Italian  Government  control 
over  the  oil  Industry  will  probably  re- 


42638 


CONGR£SSION.\L  RiLURD  —  HOUSE 


December  19  y  1973 


strict  the  free  movement  of  products  to 
the  United  States. 

TBX     SITUATION     tN     THX     irETHXaLjt]«T)8 

Holland.  UJte  the  United  States,  has 
been  totally  cut  ofT  from  its  supplies  of 
crude  oil  from  the  Arab  States.  The  Arab 
embargo  will  deprive  Holland  of  1.470.000 
barrels  per  day,  or  about  71  percent  of 
its  total  daily  imports.  But  the  impor- 
tance of  the  embargo  goes  far  beyond  the 
borders  of  the  Netherlands. 

Because  port  cities  of  the  Netherlands 
serve  both  as  transshipment  points  for 
other  areas  of  Europe  and  as  major  re- 
fining centers  for  northern  Europe,  the 
embargo  will  have  an  impact  on  many 
coimtries.  Nearly  60  percent  of  the  pro- 
duction of  Dutch  refineries  is  exported 
by  ship  or  through  pipelines.  Few  ports 
in  Europe  can  handle  the  sizable  tankers, 
not  to  mention  storing  or  reflnlhg  the 
crude  oil  in  the  volume  that  Rotterdam 
handles.  So  the  embargo  on  Holland  af- 
fects the  whole  delivery  .<;ystem  of  oil  in 
Europe  and  will  aggravate  shortages  in 
countries  which  have  been  cut  back  to  a 
lesser  degree. 

Although  there  was  considerable  con- 
fusion as  to  why  the  Arab  States  em- 
bargoed Holland,  an  October  22  dispatch 
from  the  Iraqi  News  Agency  said  that 
certain  facts  relating  to  Dutch  aid  to 
Israel  had  been  made  known  in  Baghdad. 
Those  ostensible  Arab  grievances  are  as 
follqj^: 

The  Netherlands  w»«  tnuiafonned  Into  a 
bridgehead  for  assistance  sent  to  the  enemy. 
and  at  the  same  time  it  was  carrying  out  a 
vicious  campaign  against  the  Arabs.  It  was 
also  proved  beyond  any  doubt  that  the  Fioyal 
Dutch  Airlines  (BXAI)  made  continuous 
flights  to  trajisport  mercenaries  and  assist- 
ance to  the  enemy  or  to  supply  centers  desig- 
nated In  various  places  by  the  enemy: 

The  Netherlands  opposed  the  Issue  of  a 
rational  and  unbiased  awimunlque  by  the 
member  countries  of  the  European  Economic 
Community  calling  for  the  end  of  the 
hostmtles; 

The  declaration  by  the  Dutch  ^>relgn 
MltUster  to  Arab  diplomatic  missions  at  a 
meeting  in  the  Hague  clearly  supports  Israel 
agalnA  the  Arab  statee: 

The  personal  participation  of  the  Dutch 
Minister  of  Defense  In  a  demonstration 
staged  In  the  Dutch  capital  to  express  sup- 
port for  Israel:  and 

The  participation  of  various  Dutch  eatah- 
llahm«nts  and  companies  upon  the  outbreak 
of  the  present  w»r  in  collecting  funds  and 
contributions  for  the  Israeli  war  effort,  and 
the  supply  by  Holland  to  Israel  of  crude  oU 
from  Its  Imported  stocks. 

The  Iraqis  also  used  the  reasons  listed 
above  for  the  pa.ssage  of  a -nationalization 
law  which  allowed  the  Iraqi  Government 
to  nationalize  the  Dutch  share  of  the 
Basrah  Petroleum  Co.  as  It  had  earlier 
with  the  US.  share. 

The  singling  out  of  Holland  by  the 
Arab  States  also  added  another  dimen- 
sion to  the  energy  policies  of  the  Euro- 
pean nations.  The  embargo,  according  to 
Mr  L.  G.  Wanslnk.  the  Dutch  Director 
General  for  Energy  Supply,  was  causing 
a  crisis  of  sorts  among  the  member  na- 
tions of  the  European  Economic  Com- 
munity who  had  agreed  last  spring  that  a 
common  energy  policy  for  the  10  coun- 
tries should  be  worked  out  A  resolution 
to  this  effect  was  passed  by  the  EEC  min- 
isters, but  was  something  which  they  pre- 
ferred to  ignore  during  the  crtsia. 


Portiinately,  the  Ehitch  will  probably 
be  able  to  restrict  domestic  demand 
through  conservation  measures  and  meet 
their  necessary  energy  needs  through  in- 
creased imports  from  Iran.  Venezuela, 
Nigeria,  and  Gabon.  The  Netherlands 
also  had  emergency  storos  of  petroleiun 
which  amounted  to  more  than  70  days 
of  demand,  slightly  more  than  the 
amount  required  by  all  Common  Market 
countries  for  emergencies.  However,  the 
oil  marketers  in  the  United  States  c£in- 
not  hope  to  buy  the  200.000  barrels  per 
day  of  distillate  oil  which  they  had 
planned  on  bujring  for  this  winters  needs 
from  Holland.  Instead,  they  should  brace 
themselves  to  bid  against  the  Dutch  deal- 
ers In  a  spiraling  price  market  for  other 
limited  supplies  of  oil  elsewhere. 

THE    SITUATION    IN    SPAIN 

Two  days  after  the  Middle  East  war 
began,  Spain  restricted  the  unlicensed 
exportation  of  petroleum  products  In  an 
effort  to  increase  stocks  and  meet  grow- 
ing domestic  demand.  A  Commission  of 
Fuels  was  established  to  review  applica- 
tions and  has  granted  no  licenses  to  date 
on  the  grounds  that  it  Is  not  yet  clear 
that  Spanish  needs  are  being  satisfied.  No 
preference  is  being  shown  by  country, 
and  the  only  exceptions  to  the  export  re- 
strictions are  the  provision  of  jet  fuel  for 
international  carriers  landing  in  Madrid 
and  other  relatively  specialized  export 
uses. 

According  to  Dr.  Jose  Luis  Diaz  Fer- 
nandez, the  EHrector  General  of  Energy 
in  the  Spanish  Ministry  of  Industries,  the 
export  controls  are  a  general  measure  di- 
rected at  all  exports  and  were  developed 
before  the  fighting  in  the  Middle  East  be- 
gan. The  reason  for  their  adoption  has 
been  the  extraordinarily  rapid  growth  in 
Spanish  demand  for  oil  which,  according 
to  Fernandez,  has  been  X^  percent  per 
year  during  the  last  2  yeaf$.  This  has  re- 
sulted from  an  unprecedented  16  percent 
per  year  growth  in  industrial  ^reduction. 
The  result  has  been  conversion  of  a  num- 
ber of  export  refineries  to  production  for 
domestic  needs.  Because  shortages  of  fuel 
oil  are  particularly  severe  at  present,  ex- 
ports of  heating  oil  and  other  distillates 
are  most  likely  to  be  prohibited  for  the 
foreseeable  future. 

If  a  company  needs  to  export  to  main- 
tain its  refinery  runs  or  to  meet  a  con- 
tractual obligation.  It  must  first  confer 
with  the  Ministry  of  Industries.  The 
Ministry  will  examine  existing  stock 
levels,  the  needs  of  the  Spanish  market, 
and  other  factors  before  It  can  decide 
to  license  the  exports.  The  Government 
of  Spain  has  assured  the  United  States 
that  these  controls  are  nondiscrimina- 
tory as  to  destination  and  that  no  sup- 
plies have  been  denied  because  they  are 
Iwund  for  the  United  States  or  U.S. 
forces  in  Europe 

Spain  Is  also  requiring  "restitution": 
that  Is,  oil  exports  by  a  company  must 
be  offset  by  oil  Imports  of  a  type  needed 
by  the  Spanish  economy.  Spain  insists 
on  trading  products  that  are  relatively 
abundant  for  products  that  are  not.  Fuel 
oil  is  especially  tight  in  this  regard  be- 
cause 2  years  of  drought  have  forced 
a  partial  switch  from  hydroelectric 
power  production  to  oil-fired  generation 
of  electricity. 


This  appears  to  be  an  academic  point, 
however,  because  the  Spanish  Govern- 
ment has  simultaneously  made  it  clear 
that  Spain  will  not  ship  to  the  United 
States  as  long  as  the  Arabs  continue 
to  cut  off  crude  oU  shipments  in  retalia- 
tion. 

TH«   KZPOSTINO   COtTNTRIKS A    NXW   SOUDAUTT 

Even  before  the  October  Mideast  war. 
the  Arab  oil  producers  were  coming  into 
Increasmg  conflict  with  the  major  oil 
companies  and  the  consuming  countries. 
Although  political  motivation  led  to  the 
1973  boycott,  it  was  economic  considera- 
tions that  originally  brought  oil  produc- 
ing countries  together,  and  it  is  the 
economics  of  oU  that  has  changed  the 
whole  pattern  of  oil  pricing  and  market- 
ing for  the  future. 

Two  organizations,  the  Organization 
of  Petroleum  Exporting  Countries — 
OPEC— founded  in  1960.  and  the  Or- 
ganization of  Arab  Petroleum  Exporting 
Countries — OAPEC— founded  in  1968, 
were  formed  so  that  the  oil  producing 
countries  could  present  a  united  front 
against  the  international  oil  companies. 
Until  the  1970's.  neither  organization  at- 
tempted to  restrict  oil  supplies,  but  they 
did  seek  a  voice  in  setting  the  price  of 
their  oU.  In  1971.  the  increasing  world- 
wide demand  for  oil.  the  OPEC  threat 
of  nationalization  in  some  of  the  coun- 
tries, and  the  declining  or  no-longer- 
increasing  production  of  oil  in  certain 
non-Arab  areas  of  the  world,  especially 
the  United  States,  led  to  the  conclusion 
of  an  Important  new  agreement  in  Te- 
heran between  the  major  oil  companlee 
and  several  OPEC  members. 

Although  most  news  media  accounts  of 
the  Teheran  agreement  concentrated  on 
the  new  price  increases  and  higher  in- 
come for  the  producing  countries,  the  oli 
producing  states  gained  other  more  im- 
portant  long-term  advantages.  First,  the 
major  oil  companies  agreed  to  -collective 
bargaining  rather  than  unilateral  price 
actions."  Previously,  the  companies  alone 
determined  the  price  of  oil  without  prior 
negotiation  with  the  producing  countries. 
Second,  the  price  of  oil  was  tied  to  an 
escalator  clause,  which  reflected  the  ris- 
ing value  of  oil.  and  to  a  parity  adjust- 
ment which  allowed  payments  to  the 
producing  countries  to  Increase  with  in- 
flation. And.  third,  the  major  oil  com- 
panies several  months  later  accepted  the 
principle  of  participation  by  the  oil  pro- 
ducing countries  In  oil  company  assets 
and  profits. 

In  the  last  2  years,  however,  the 
oil  producing  countries  have  become  dis- 
enchanted with  the  Teheran  agreement. 
The  devaluation  of  the  U.S.  dollar  re- 
duced the  countries'  income  relative  to 
other  major  world  currencies.  Another 
loophole  in  the  Teheran  and  ether  agree- 
ments revolved  around  the  unrealistlcally 
low  percentage  compensation — 2.5  per- 
cent— that  was  meant  to  compensate  for 
inflation.  Lastly,  the  producing  countries 
believed  that  an  oil  scarce  industrialized 
world  was  paying  too  little  for  •precious" 
crude  oil.  These  and  other  questions  were 
raised  at  a  series  of  meetings  between 
OPEC  members  and  major  oil  companies 
in  Vienna.  Austria,  during  the  first  week 
in  October  1973. 

At  the  October  9  Vienna  meeting  the 
major  oil  companies  submitted  an  offer 


December  19,  1978 


CONGRESSIONAL  RECORD  — HOUSE 


426.39 


to  the  OPEC  members  providing  for  a  15- 
percent  increase  in  posted  prices — the 
price  upon  which  government  revenues 
in  the  form  of  taxes  are  computed — and 
an  adjustment  of  the  inflation  factor  in 
line  with  an  appropriate  index. 

The  OPEC  countries  refused  the  offer 
and  came  forward  with  a  counterpro- 
posal for  a  100-percent  increase  in 
posted  prices,  coupled  with  a  mechanism 
for  keeping  the  posted  prices  40  percent 
above  the  actual  selling  price  at  all  times. 
The  OPEC  memljers  also  asked  for  an 
Inflation  escalator,  in  line  with  an  In- 
dex of  wholesale  prices,  and  requested 
that  the  agreement  apply  retroactively  to 
October  1,  1973. 

The  companies  asked  for  time  for  con- 
sultation which  the  OPEC  members 
granted,  and  then  on  October  12,  insisted 
on  a  2-week  adjournment.  Negotiations 
were  then  broken  off  by  the  OPEC  min- 
isters without  a  date  being  set  for  con- 
tinuation. When  the  oil  minLsters  of  the 
six  Gulf  State  members  of  OPEC  met  In 
Kuwait  on  October  16.  they  all  had 
clearance  from  their  governments  for 
a  unilateral  announcement  of  new  posted 
prices.  The  six  ministers,  representing 
Saudi  Arabia.  Iraq.  Kuwait.  Abu  Dhabi. 
Qatar,  and  Iran,  were  to  decide  whether 
to  resume  negotiations  with  the  oil  com- 
panies or  post  their  own  price  unilater- 
ally. 

There  has  been  widespread  confusion 
as  to  exactly  what  the  Gulf  States'  OPEC 
ministers  decided  upon  in  Kuwait.  The 
facts  are  as  follows : 

In  a  single  move,  the  Ministers  an- 
nounced new  posted  prices  for  Gulf 
crudes  effective  October  16.  represent- 
ing an  Increase  of  70  percent  over  the 
previous  price  levels.  The  posted  price  of 
Arabian  Light — the  main  market  crude 
In  the  Gulf — thus  rose  from  $3.011/bar- 
rel  to  $5.119/barrel.  while  the  govern- 
ment's share  rose  from  $1.770/barrel  to 
$3.048/barrel. 

The  new  posted  prices  and  futiu-e  ad- 
justments are  to  be  based  on  a  new  for- 
mula. Under  this  formula,  the  posted 
price  for  each  crude  is  to  be  maintained 
at  a  level  40  percent  above  the  appli- 
cable market  price  as  determined  by  di- 
rect sales  of  crude  oil  to  independent 
third  parties  by  the  governments  con- 
cerned. Thus,  the  initial  market  price — 
known  as  the  realized  price  base — 
RPB — for  Arabian  Light  crude  was  set  at 
$3.65/barrel.  This  price  represents  an 
increase  of  17  percent  over  prices 
realized  in  recent  sales  of  the  same  crude, 
but  it  is  expected  that  future  prices 
are  Ukely  to  be  substantially  higher.  It 
was  reported  in  early  December  that 
open  market  bidding  for  Iranian  oil 
reached  $16  per  barrel. 

The  RPB  will  be  reviewed  from  time  to 
time  in  the  light  of  government  sales  to 
third  parties  and  wUl  be  adjusted  when- 
ever it  rises  above  or  drops  below  the 
previous  RPB  by  1  percent  or  more.  Th~e 
posted  price  wlU  then  automatically  be 
adjusted  to  maintain  the  ratio  RPB  plus 
40  percent. 

The  sulfur  premiums  for  the  various 
low-sulfur  crudes  are  to  be  determine 
individually  by  each  member  state  on 
the  basis  of  actual  market  trends.  The 
oil  producers  added  the  sulfur  premium 


in  1971  to  take  advantage  of  the  de- 
mand for  low  sulfur,  and  hence  less  pol- 
luting, oil. 

In  the  event  the  companies  refuse  to 
take  crude  oil  on  the  basis  of  the  past  fi- 
nancial arrangements,  the  governments 
of  the  Gulf  producing  coimtries  "will 
make  available  to  any  buyer  the  various 
crudes  at  prices  computed  on  the  basis 
of  Arabian  Light  at  $3.65/barrel  f.o.b. 
Ras  Ttinura." 

Very  simply  stated,  the  new  price 
mechanism  established  at  the  Kuwait 
meeting  means  that  the  posted  price  of 
of  the  Gulf-producing  countries  "will 
the  upward  or  downward  trend  of  the 
market.  The  Iranian  Finance  Minister. 
Dr.  Jamshid  Amouzegar,  explained  it  by 
saying: 

I  would  like  to  tell  the  consumers :  we  will 
wait  and  see  what  the  market  prices  are  and 
then  calculate  posted  prices  on  this  basis 
keeping  the  same  ratio  between  the  two 
sets  of  prices  that  exited  in  1971. 

In  terms  of  bargaining  power,  the 
Arab  States  were  able  to  greatly  increase 
the  amount  of  money  they  made  on  each 
barrel  of  oil  and  prepare  the  way  for  a 
different  type  of  decision  that  was 
reached  the  next  day  in  Kuwait. 

THE    KTTWAIT    AGREEMENT    TO    EMBABCO    OH, 

On  October  17,  In  Kuwait,  oil  minis- 
ters of  the  10  member  Organization  of 
Arab  Petroleum  Exporting  Countries — 
OAPEC — agreed  on  a  plan  to  limit  oil 
production  and  thereby  reduce  exports 
to  certain  countries  until  Israel  was 
forced  to  withdraw  from  the  territories 
occupied  since  the  1967  Mideast  War.  The 
decision  hinged  on  the  cooperation  of 
Saudi  Arabia,  the  most  influential  and 
largest  producer  of  the  Arab  oil  States. 

Saudi  Arabia  agreed  to  the  plan  for 
an  immediate  reduction  of  oil  shipments 
to  the  industrial  states,  but  opposed  more 
radical  plans  for  a  complete  embargo  on 
the  United  States  or  nationalization  of 
the  assets  of  the  major  oil  companies. 

The  main  points  outlined  In  the  Octo- 
ber 17  plan  were: 

The  10  countries  agreed  to  cut  oil  pro- 
duction by  a  minimum  of  5  percent  using 
the  September  1973  level  as  a  base.  Ad- 
ditional 5 -percent  cuts  were  to  be  mside 
each  month,  but  each  country  was  al- 
lowed to  raise  the  percentage  higher. 

Any  countries  which  remained  friendly 
with  the  Arab  States  or  which  extended 
or  may  in  the  future  extend  effective  con- 
crete assistance  to  the  Arabs  were  to 
continue  receiving  the  same  quantity  of 
oil  as  before  the  cutback.  Moreover,  the 
same  exceptional  treatment  wsis  to  be  ex- 
tended to  any  state  which  would  take  a 
slgnlflcsuit  measure  against  Israel  with 
a  view  to  obliging  it  to  end  its  occupation 
of  usurped  Arab  territories. 

The  oil  producers  decided  on  a  for- 
mula that  would  allow  them  to  choose 
Individually  whether  or  not  to  cut  off  oil 
to  the  United  States. 

Each  country  wsis  to  notify  Its  operat- 
ing companies  of  its  desired  pattern  of 
exports  for  any  given  month.  The  com- 
panies were  then  to  be  held  responsible 
for  carrying  out  the  government's  in- 
structions or  were  to  face  a  penalty. 

ESCALAnON  OF  THE  CVlXirm  AND  THE  DOABOO 

Beginning  on  October  18.  several  Arab 
oil  States  redefined  their  use  of  the  "oil 


weapon."  First,  they  increased  the  pro- 
duction cutbacks  from  5  percent  to  10 
percent  for  the  first  month.  Second,  thev 
announced  total  cutbacks  of  all  ship- 
ments to  the  United  States  and  several 
Arab  States  stopped  shipments  to  Hol- 
land as  well.  Third,  they  warned  that  na- 
tions caught  transhipping  oil  to  the 
Uruted  States  would  also  be  embargoed. 

In  combination,  these  three  additional 
levers  made  the  Arab  embargo  much 
more  severe  than  first  expected.  By  No- 
vember, several  Arab  States  had  cut  their 
September  production  by  20  percent.  The 
Arab  boycott  took  4  million  barrels  per 
day  of  oU  out  of  world  commerce,  or 
nearly  12  percent  of  the  total  volume  of 
oil  moving  in  world  trade.  Other  disrup- 
tions, also  contributed  to  the  reduction 
in  oil  supplies.  For  example,  during  the 
war  several  oil  port  facilities  were  dam- 
aged, a  Syrian  refinery  was  closed  and 
major  oil  pipeUnes.  such  as  the  Trans- 
Arabian  pipeline— loading  terminal  In 
Sidon.  Lebanon— were  operating  well  be- 
low capacity  because  tankers  were  not 
available  in  the  area  for  loading  of  crude. 

During  our  discussion  with  Arab 
spokesmen  a  week  after  the  Arab  price 
hikes  and  production  curtailments,  we 
were  told  repeatedly  that  one  of  the  main 
reasons  for  the  additional  actions  against 
the  United  States  was  President  Nixon's 
request  for  $2.2  billion  in  milltarv  as- 
sistance for  Israel.  It  is  interesting  to 
read  some  of  the  official  communiques 
that  were  released  by  Arab  governments 
during  that  week. 

Saudi  Arabia,  for  instance,  had  been 
a  moderating  influence  in  the  Kuwait 
meetings  and  had  opp)osed  immediate 
cutbacks  to  the  United  States.  But  the 
Saudi  attitude  changed  after  the  Presi- 
dent's arms  request,  as  reflected  in  the 
following  statement  released  by  the 
Royal  Cabinet: 

In  accordance  with  the  statement  issued 
by  the  Royal  Cabinet  on  22  Ramaden  1393 
(corresponds  to  October  18,  1973).  wher*by 
His  Majesty's  Government  announced  an  Im- 
mediate reduction  In  Its  oU  production  by 
10  percent  and  that  It  would  continue  to 
review  developmer.ts  In  the  situation,  and  In 
view  of  the  Increase  In  American  military  aid 
to  Israel,  the  Kingdom  of  Saudi  Arabia  has 
decided  to  halt  oU  eicports  to  the  crmied 
States  of  America  for  taking  this  position 

On  October  25,  Kuwait's  Finance  and 
Oil  Minister,  Mr.  'Abd  al-Rahman 
'Atlqui,  was  quoted  as  saying: 

Kuwait  took  the  Initiative  in  caUlng  for  a 
meeting  of  Arab  Oil  Ministers  to  conslde.- 
the  role  of  oU  In  the  battle.  OU  has  t>oth  a 
negative  and  positive  role  to  play.  The  nega- 
tive role  of  the  oil  weapon  Is  to  make  t;.e 
world  feel  the  bitterness  and  pain  we  are  ex- 
periencing ...  we  can  accept  a  reduction  In 
production  at  the  same  time  denying  sup- 
plies totally  to  any  country  which  supports 
Israel  materially  and  practically.  This  has 
certainly  proved  possible  as  far  as  the  U.S.  Is 
concerned. 

On  October  21,  the  Iraq  News  Agency 
carried  a  much  more  radical  message 
which  stated  the  position  of  the  Iraq 
delegation : 

The  attitude  of  the  IraquJ  delegation  .  .  . 
can  be  summarized  In  the  foUowlng  three- 
point  prc^Msal: 

(1)  The  complete  Uquldatlon  of  VS.  eco- 
nomic Interests,  particularly  oU  Interest,  by 
natlonaUzing  all  U.S.  companies  operating 
In  the  Arab  homelaiid. 


42W0 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


(3)  Th«  wlth(lr»w»l  of  kll  funds  taveated 
by  the  Arab  st*tea  ta  the  Uolted  States 

(3)  Br«&ktc«  off  diplomatic  and  economic 
relations  between  all  the  Arab  oU  productn^ 
countries  and  the  United  States  of  America. 


On  October  7.  Iraq  nationalized 
American  Interest  in  the  Basrah  Petro- 
leum Co — Dutch  Interests  were  nation- 
alized later. 

cnrtNO  oif  THX  "aicHT  list" 


A  drop  of  31  7  ipercent,  or  roughly  2  63 
million  biirrels  per  day  below  the  actual 
American  Arabian  Oil  Co — Aramco — 
production  average  for  September— 
8,290,589  barrels  per  day 

A  drop  of  35  4  percent,  or  3  1  million 
barrels  per  day,  below  planned  Aramco 
output  for  October — 8,780,000  barrels  per 
day; 
A  drop  of  37  8  percent,  or  3  44  million 
During  the  first  week  of  the  Arab  em-     barrels  per  day,  t)elow  planned  Aramco 
bargo.  many  critics  were  quick  to  point     output  for  November 
out  that  "past  embargoes  did  not  work"        Saudi  Arabian  cuts  of  this  magnitude 
and   that  the  Arabs     cannot  stop  the     set    the   stage    for   the   second   Kuwait 
major  oil  companies  from  getting  the  oil     meeting  on  November  4. 
to   the   United   States  '    Unfortunately.       th«  skono  kuwut  mrrtNo — NOTKicBn  4 
they  were  not  prepared,  nor  were  the  in-         At  the  urging  of  the  Saudia  Arabian 
dustrlal  countrt^^  for  the  sophisUcated     Government,  a  second  meeting  was  heS 
planntog  behind  the  embargo  m   Kuwait   on    November   4  To   dLcS? 

Saudi  Arabia,  for  Instance  ha^  as  a  ways  of  strengthening  the  "ofl  weapon  " 
matter  of  course  kept  detailed  Informa-  The  Arab  oil  States  agreed  to  a  standard 
tlon  on  eveiT  gaUon  of  oU  which  It  ex-  production  cutback  of  25  percent-based 
ports  Even  before  the  October  17  meet-  on  September  production  level-and  em- 
ing  In  Kuwait.  Saudi  Arabia  required  bargoed  shipments  of  crude  to  refineries 
tankers  loading  oU  in  its  ports  to  pro-  which  supplied  U  S  markets  The  25  per- 
vide  certificates  of  destination  which  cent  cutback  Included  the  volumes  de- 
were  foUowed  up  by  certificates  of  un-  ducted  as  a  result  of  embaj-goes  against 
loading  at  a  certain  destinaUon.  which  the  United  States  and  HoUand  father 
gave  Saudi  Arabia  the  mechanism  to  en-  than  being  added  to  such  volum'es 
force  a  very  tight  embargo  During  our  At  least  three  other  important  deci- 
trlp.  many  oil  officials  commented  that  slons  were  reached  at  the  meeting 
the  "Saudis  know  more  about  oil  Imports  Pirrt,  the  Arab  States  decided  to  take 
Into  the  United  States  than  the  US  explanaUons  of  their  acUons  directly  to 
Government  does."  the  affected  countries.  To  this  end  Mr 

Saudi  Arabia  also  took  steps  not  only  Belaid  Abdesselam.  the  oU  minister  of 
to  enforce  a  ban  on  direct  shipments  to  Algeria,  and  Mr.  Ahmad  Zakl  Yamani  oU 
the  United  States,  but  on  Indirect  ship-  minister  of  Saudi  Arabia  went  to  several 
™®,?^nn2^  *^"^?^  °^  refined  products  as  European  capitals  and  Washington  to 
well.  Thus,  the  Arabs  have  cut  off  or  explain  the  Arab  acUons 
reduced  shipments  to  a  long  list  of  destl-  Second,  they  set  up  a  special  commit- 
natlons  which  previously  transshipped  tee.  composed  of  the  oU  ministers  of 
oU  to  U.S.  markets  The  destinations  In-  Saudi  Arabia.  Algeria  Kuwait  and  Libya 
elude  Trinidad,  the  Bahamas.  Dutch  to  Insure  the  ImplementaUon  and  en- 
Antille«--Curacao--Canada.  Puerto  Rico,  forcement  of  the  decisions  reached  at 
Bahrain — 50.000  barrels  per  day  nor-  the  Kuwait  meetings 
mallj-  suppUed  to  US,  Navy— Ouam.  and  Third,  they  decided  to  convene  a  meet- 
Singapore— also  suppUes  U.S.  Navy  tag  In  the  future  to  decide  on  specific  and 
Shipments  have  also  been  cut  back  to  uniform  qualifications  for  the  countries 
certain  specific  refineries  which  supply  that  are  classified  as  "friendly"  or  "most 
US.  markets,  including  ones  In  Italy,  favored"  so  that  no  disparity  will  exist 
Greece— which  supplies  the  US,  6th  between  the  definitions  of  various  Arab 
Fleet — and  one  plant  In  southern  Prance,     nations. 

In  dealing  with  other  countries  of  the  As  of  November  5  the  cutbacks  were 
world,  the  Saudis  and  other  Arab  States  estimated  by  the  Middle  East  Economic 
have   divided   oU   customers   tato   three     Survey  to  be  as  follows-  "^onomic 

categories;    those  countries  allied  with 
Israel   in   any   direct   way   were   totally  (Thouund  tarr^s  lUiiyi 

embargoed;  those  countries  which  were 

relatively    neutral    received    percentage  s«ortm- 

cutbacks;   those  countries  favorable  to       country  outSTi    cutiMck 

the  Arab  cause  received  oil  shipments  at 

pre-war  levels.  s«id.  *r.b.,  g  290 

To  get  on  the  most  favored  list,  a  par-     Kuw»iri.  3  200 

tlcular  country  must  fulflU  one  or  more     aJJoj,,^,  fJSS 

of  the  following  conditions:  First,  break     Oitir. ...::':;"'        m 

off    diplomatic    relations    with    Israel:     N«utriiziit SM 

second,    apply    one    or    more    economic     AifSnaV:  foso 

sanctions  against  Israel;  or  third,  give     Ott«fi> i  050 

some   military   assistance   to  the   Arab 

States.  During  November,  Saudi  Arabia's  ■  Kuwiu  h»  Ktuaii,  t««rt  ,h  production  cuttaek  on  their 
most  favored  list  tacluded  Arab  countries  .'•""' "'•y;j«'»r»i  of  looo,ooo  bw/d  ram«r  m*n  mt  s«pt»«nb«r 
such  as  Lebanon.  Jordan.  Egypt,  and  ^Vl.^^,oZl?,:^TiT"JZ!t"'' '''''"*''' ''"' 
Tunisia:  Islamic  countries  which  Import       'CompnsM  Egypt  Sym  Bannm.  oupai  tna  omtn.  oub*. 

Saudi  cnirip  mirh  a^a  PaVtcfon  TS^-k-OTr  '  JU*"  7"*  ""  '^'"•'  "  •"•  '^''•»"  <»«i»on  but  in- 
OaUOI    cruae.    SUCn    as    Pakistan.    Turkey.       nouncwl  Mnbarvras  on  the  Un,t«d  Slat«s  and  th«  UnrtBd  Statei 

and  Malaysia:  all  African  countnes  which  '"''"'^'•"<*™">«:»'»«'»  t** overall  cutback  tor  th«s«countf,« 

have  broken  off  diplomatic  relations  with  wt"^:2S.nTSl?^w':;T.S;/:ii.Z?~S'r«^^^ 

Israel;   and  France.  Spain  and  Britain.  •' 'pp'o'i^wy 2S P«n»nt 

By  Noveml)er  4.  Saudi  production  was  baudi  amakia — th«  on.  uubxm 

?^  ^  ^"^^.^  ^^""^  ^^^  September  1973  According  to  Americas'  Ambassador  to 

level.  This  drop  represented:  Saudl  Arabia,  the  Honorable  James  E. 


!.  S30 
9M 
MO 
3S0 
ISO 
US 
S75 
263 
263 


Percent 
cut 


31.7 
30.0 
25.0 
25.0 
2S.0 
25.0 
25.0 
25.0 
2S.0 


output 


5. 660 

2,250 

1. 500 

1,050 

450 

135 

1,725 

787 

787 


AJdns.  Arab  oil  earnings  will  top  $10  bil- 
lion this  year  and  could  go  as  high  as  $50 
billion  by   1980.  Considering  the  recent 
price  hikes  and  the  effects  of  the  embar- 
go on  prices  In  other  parts  of  the  world, 
his  figures  are  probably  conservative  But 
in  any  case,  the  huge  .sums  of  money 
flowing  toward  the  Arab  States  in  return 
for  their  flow  of  crude  oU  will  be  a  factor 
affecttag  the  politics  of  the  whole  region, 
Saudi  Arabia  is  assured  of  a  prominant 
role  in  future  Middle  Eastern  politics  be- 
cause of  Its  rich  oil  deposits  and  Its  ac- 
cumulation of  capital.  The  huge  sums  of 
money  gotag  to  the  Arab  oU-produclng 
States  continue  to  spill  over  to  the  other 
Arab  countries  and  add  a  new  dimension 
to  the  political  decisions  of  Arab  leaders 
ta   the  area.   The  Saudis,   for  instance, 
have  reportedly  promised  Syria  substan- 
tial sums  for  reconstruction  and  develop- 
ment to  rebuild  and  resupply  after  the 
current   confilct    Saudi    Arabia's    King 
Faisal  also  promised  an  outright  grant 
last  summer  of  $500  million  to  Egypt's 
President  Anwar  Al-Sadt  American  dip- 
lomats see  the  grants  fulfilltag  dual  pur- 
poses for  the  Saudis.  The  first  centers 
around  the  sense  of  Arab  solidarity  and 
unity  which  Faisal  hopes  to  tasplre  by 
spreading  the  oil  wealth  to  the  have-not 
Arab  States   The  second,  which  Is  more 
speculative,  is  believed  to  be  an  attempt 
to  head-off  political  or  military  threats 
from  the  have-not  Arab  States  Whatever 
the  case,  the  present,  and  potential  im- 
pact of  Saudi  policy  Is  extremely  Impor- 
tant to  the  prospects  for  a  lasting  peace 
ta  the  Mideast  To  understand  thLs  pol- 
icy, though.  Americans  must  look  beyond 
the  role  of  oil  and  consider  other  factors 
such  as  the  way  the  Saudis  view  them- 
selves. 

A  Saudi  view  of  Its  foreign  relations 
might  be  likened  to  standtag  in  the  cen- 
ter of  four  concentric  circles.  The  first 
Is  the  Arabian  Peninsula  and  encom- 
passes Saudi  relations  with  its  Immediate 
neighbors,  tacludtag  its  relations  with 
Iran,  with  which  It  shares  an  Interest  ta 
a  trouble-free  Persian  Gulf  The  second 
circle  Is  the  Arab  world,  in  which  the 
Saudi  position  Is  one  of  a  moderate, 
wealthy,  elder  statesman,  able  to  finance 
Arab  development  and  Identified  with 
the  Arabs  cultural  heritage  Whatever 
the  contest  for  leadership  among  other 
Arabs  ta  Damascus.  Cairo,  or  Baghdad. 
Saudi  Arabia  Is  accorded  a  revered  place 
at  Arab  councils.  The  third  circle  Is  Is- 
lam, for  which  Saudi  Arabia  feels  a  par- 
ticular responsibility  as  the  guardian  of 
Mecca  and  Medtaa.  The  pan-Islamic  ties 
extend  to  the  Philippines.  Indonesia. 
Senegal,  Nigeria,  Kenya,  Turkey.  Cen- 
tral Asia,  and  Chtaa— literally  to  everv 
Muslim  ta  the  world.  The  fourth  circle  i^ 
the  rest  of  the  world,  with  which  Saudi 
Arabia  appears  to  seek  favorable  if  some- 
what distant  relations. 

Saudi  foreign  policy  is  directed  toward 
the  protection  of  these  circles,  with  high- 
est priority  to  the  protection  of  Saudi 
Arabia's  tadependence  and  security. 
Thus,  the  Saudis  supported  the  "royal- 
ists" ta  the  Yemen  civil  war  against  the 
"republicans"  supported  by  Egypt,  an 
Arab  nation  but  one  alien  to  the  Arabian 
Peninsula.  Saudi  Arabia  gave  financial 
support  to  the  Palesttae  resistance  move- 
ment both  to  assist  Arabs  ta  thp  conflict 


December  I9,  1973  CONGRESSIONAL  RECORD- HOUSE 


with  Israel  and  also  to  contribute  to  the 
goal  of  Arab  unity  Saudi  Arabia  has 
hosted  several  pan-Islamic  conferences, 
and  Is  in  the  process  of  establishtag  an 
Islamic  development  bank. 

The  policy  of  restricttog  Arab  oU  pro- 
duction adopted  by  the  Arab  oU  produc- 
tag  nations  on  October  17,  1973,  cota- 
cldes  with  Saudi  foreign  policy  and  the 
reason  overlaps  into  three  of  the  circles 
cf  policy.  In  the  first.  Saudi  Arabia  felt 
they  had  to  join  with  Peninsula  Arab 
states  ta  .supportmg  the  Arab  nations 
particlpattag  directly  In  the  war  Sec- 
ondly, while  the  Saudis  did  not  partici- 
pate In  the  flghUng,  they  saw  the  oil 
reductlon3  as  a  means  of  particlpattag 
and  malntalntag  a  solid  Arab  front 
Third.  Ktag  Faisal  sees  his  role  ta  the 
world  of  Islam  as  one  of  protecttag  the 
holy  clUes  of  the  region,  two  of  which 
are  ta  his  country  and  third  of  which 
he  considers  to  be  old  Jerusalem, 

In  considering  Saudi  Arabia's  various 
roles  and  relattag  them  to  Its  relations 
with  the  United  States.  Saudi  leaders 
reject  the  idea  that  the  boycott  pri- 
marily Is  designed  to  hurt  the  United 
States,  but  contend  that  It  Is  aimed  at 
Israel.  The  fact  that  the  boycott  may 
adversely  affect  the  United  SUtes. 
Saudi  Arabia's  foremost  friend  outside 
of  the  pan-Arab  find  pan-Islamic  circles, 
is  ta  Saudi  eyes,  unfortunate  But  how- 
ever unfortunate,  the  Saudis  emphaslxed 
that  Saudi  Interests  are  more  important 
to  Saudi  Arabia  than  American  taterests. 

UNrrSD    STATM    BXLATION8    WTTH    SAtTDl    ARABIA 

As  British  tafluence  ta  the  Middle 
East  decltaed  after  Worid  War  n,  Saudi 
Arabia,  recalltag  its  favorable  relations 
with  the  United  States,  its  profitable 
experience  with  American  oil  men.  and 
particularly  the  amicable  meettag  be- 
tween Ktag  Abdul  Aziz  Ibn  Saud  and 
President  Roosevelt  ta  1945.  turned  to 
the  United  States  for  a.ssl£tanre  and 
friendship.  Saudi  Arabia  had  two  pri- 
mary concerns  ta  the  World  War  n 
period,  both  of  which  remain  current 
today. 

First,  the  Saudis  need  a  defensive 
capabmty  to  protect  their  tadependence 
Toward  this  end.  the  United  States  has 
and  conttoues  to  furnish  military 
equipment  and  tralntag  for  the  Saudi 
armed  forces.  The  Importance  of  this 
factor  cannot  be  overemphasized,  stace 
the  Saudis  clearly  fear  foreign  hegemonv 
In  their  area,  partlruJarly  the  expan.sion 
of  Soviet  and  rhtae.se  commur.Ls.ii 
which  they  con.slder  to  be  thp  a.-itiUu'-i'. 
of  their  Lslamir  faith 

Second,  the  Saudis  need  revenues  f.'-om 
their  oil  operations  for  the  development 
of  their  country  American  oil  companies 
produce  the  oil  and  the  pronf;  for  the 
Saudis  and  the  Saudis  seek  American 
advice  and  technology-  for  their  devel- 
opment projecus  and  ta  vestment  pro- 
grams 

In  the  last  2  monihs.  however,  the 
Saudis  have  clearly  developed  a  third 
major  l.nt.ere.'^t  in  their  relations  with  the 
United  State^  This  i.s  their  interest  m 
using  boUi  their  Reopolitlrai  position  and 
their  oU  to  influence  the  United  State.-;  to 
pressure  Lsrael  to  accept  a  Middle  t^.vt 
peace  agreement  acceptable  to  the  Arab 
SUtej;  -Hie  question  for  U.S.  relaUons 
With  Ssiud:  Arabia  1^  whether  we  can  ac- 


commodate this  newly  articulated  Saudi 
mterest  without  changing  our  historical 
and  firm  support  for  the  security  of 
Israel. 

THE  SlCNinCANC*  Or  8AUDl-AJ»nUC4N 
RELATtONS 

While  the  continuation  of  good  rela- 
tions between  Saudi  Arabia  and  the 
United  States  may  seem  difficult  because 
of  the  current  boycott.  It  Is  of  great  im- 
portance that  we  attempt  to  c.arr\  on  the 
close  relaUonshlp  developed  over  the  last 
30  yeai-s  while  simultaneously  pursutag 
our  policy  of  support  lor  the  Integrity  of 
Israel.  Saudi  Arabia  matatalns  a  pres- 
tigious position  ta  the  Arab  world  and 
among  the  Islamic  nations,  and  this  in- 
fluence will  grow  a5  Saudi  Arabia  de- 
velops Its  own  tadustr>'  and  that  of  sis- 
ter Arab  States. 

The  importance  of  Saudi  Arabia  also 
lies  ta  a  combtaatlon  of  other  factors 
which  taclude: 

In  an  era  when  the  number  of  coun- 
tries friendly  to  the  United  States  ap- 
pears to  be  declining  ta  the  Middle  E&si 
It  Is  Important  that  the  United  States 
maintata  close  ties  with  Saudi  Arabia  ir 
order  to  matatata  U.S.  communications 
with  the  Arab  world.  This  contact  may  be 
especially  Important  ta  the  upcomtag  ne- 
gotiations. 

Saudi  Arabia  tends  to  be  much  more 
conservaUve  than  other  Arab  States 
When  this  factor  Is  considered  ta  com- 
bination with  the  prestige  Saudi  Arabia 
has  with  other  Arab  States,  It  is  certata 
that  the  Saudis  are  a  moderating  ta- 
fluence ta  Arab  countries  as  evidence  in 
ite  opposition  to  Iraq's  nationalization 
efforts. 

Because  of  Its  huge  oU  resources  Saudi 
Arabia  Is  the  recognized  leader  of  the 
block  of  Arab  oil-produclnc  States  and 
^  also  a  leader  of  the  Organization  of 
Petroleum  Exporting  Countries  The  fu- 
ture policies  and  actions  of  these  two 
blocs  are  likely  to  be  strongly  influenced 
by  the  decisions  of  the  Saudi.^ 

Disposing  of  oil  revenue.'^  mav  not  be 
a  problem  for  most  of  the  oil-producing 
states  with  large  populations  and  devel- 
opment needs,  but  Saudi  Arabia  will  have 
large  amount.^  of  capita]  to  inve.-^t  which 
will  create  problems  If  .suitable  Invest- 
ment mechanisms  are  not  found  TTie 
United  States  can  help  Saudi  Arabia 
make  those  Inve-^tments  and  in  the  proc- 
ess create  good  economic  relations  with 
all  the  nation.^  of  the  Middle  Ea.'^t 

Expanded  markets  for  American  goods 
and  .services  will  partially  offset  the  un- 
iortunate  balance  of  payments  created 
by  our  energ>-  resources  purchases.  In 
thl'^  regard  it  l^  significant  to  note  that 
American  firms,  and  contractors  operat- 
ing In  Saudi  Arabia  repatriated  over 
$1  billion  ta  profits  to  the  United  States 
last  year.  This  gigantic  sum  offers  a 
healthy  contribution  to  the  United 
States  balance  of  payments.  With  $2  2 
billion  In  oil  profits  last  vear  and  even 
larger  .sums  this  year.  Saudi  Arabia  wlU 
also  be  the  mvestment  broker  for  many 
other  non -oil -producing  Arab  States 

At  present,  the  Persian  Gulf  Is  under 
the  mutual  protection  of  Saudi  Arabia 
and  Iran,  both  of  which  are  pro- Western 
and  anti-Communist,  It  Is  ta  the  toterest 
of  the  United  States  to  insure  that  no 


42W1 

great  power  seize  control  of  the  Persian 
Gulf  and  its  oil. 

Until  such  time  &s  the  United  States  is 
able  to  tacreaBe  Its  reflntag  capacity  and 
develop   Its  offshore  oil   depoMis    Saud 
oil  could  fill  much  of  the  current  gap  be- 
tween U.S.  supplies  and  demand. 

Prom  the  conversatio.-Ts  the  studv  mis- 
sion  had   with   King  Faisal   and  "other 
Saudi  leaders.  I  have  no  reservations  ta 
saying  that  the  Saudis  would  prefer  to 
contmue  to  deaJ  wnth  the  United  States 
not  only  in  oil  production  and  sales  but 
in  the  indust.-ialization  and  rr.ode'-^iza- 
tion   of   Saudi   Arabia.   The   leader's   we 
spoke  with  all  expressed  the  hope  that 
the  Umted  Stat^-s  wUl  make  great  effort^s 
to  understand  the  complex  enuronment 
In  which  the  Saudis  now  find  themselves 
We  would  also  point  out  once  again  that 
the   role   of   Saudi   Arabia  in   the  Arab 
world  is  one  of  several  differing  and  con- 
flicting respor^ibHiUes.  These  responsi- 
bilities should  be  understood  and  weighed 
carefully  m  formulating  a  flexible  foreign 
policy  for  the  United  Siate.-Saudi  rela- 
tions of  the  future 

Shaikh  Yamani  told  us  privately  what 
he  has  smce  confirmed  ta  public  that 
Saudi  Arabia  would  work  to  relax  the  oii 
embargo  prior  to  a  complete  settlement 
of  the  Arab-Israeli  dispute.  Flelaxlng  the 
embargo  and  increastag  Saudi  oil  pro- 
duction may  depend  upon  the  willingness 
of  the  United  States  to  assist  In  the  ta- 
dustrializatlon  of  Saudi  Arabia  par- 
ticularly m  pro\1dmg  the  technology-  for 
a  petrochemical  tadustn-  Shaikh 
Yamani  furthermore  led  us  to  believe 
that  Saudi  Arabia  would  be  willing  to 
accept  whatever  agreement  is  reached 
dunng  the  peace  negoUations  bv  the 
main  combatants. 

It  should  be  noted  that  the  rationale 
behind  the  Arab  oU  production  cutbacks 
involves  a  much  larger  issue  than  just 
Israel.  The  Saudis  recognize  that  oU  Is  a 
perishable  commodity  and  they  cannot 
expect  their  oil  reserv-es  to  last  forever 
Moreover,  the  economics  of  the  situation 
today  demonstrate  that  their  oil  is  as 
va.uable  in  the  ground  as  it  is  being  pro- 
duced. For  mst,ance.  even  with  a  37-'ier- 
cer.t  cutback  In  production,  the  Saudis 
will  matatata  their  revenues  as  a  result 
of  the  subsequent  increase  ta  oil  prices 
Thus,  even  with  a  resolution  of  the  oU 
embargo  and  the  poliUcal  situation  in  the 
Mideast,  It  Is  most  doubtful  whether  the 
SauaLs  would  be  willing  to  produce  more 
than  12^15  million  barrels  per  dav  m  the 
foreseeable  future  de.spite  US  deiires  for 
production  increases  to  20  million  barrels 
per  day 


A  FRIENDLY  CANADLAN 

EDITORIAL 


The  SPE.AKER  pro  tempore  Under  a 
prevlou-s  order  of  the  Ho'ose.  the  genUe- 
w-oman  from  Massac hu-setts  'Mrs  Hbck- 
LER>  is  recognized  for  ,5  minutes 

Mrs,  HECKLER  o!  Massachusetts.  Mr. 
Speaker,  I  would  like  to  submit  to  the 
Record  an  editorial  written  by  a  Ca- 
nadian journalist  and  reprinted  ta  the 
Pall  River  Herald  News  m  my  district. 
I  ftad  It  very  refreshmg  that  this  neigh- 
bor to  the  north  has  befriended  us  ta  this 
time  of  multiple  crises. 


42642 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  1973 


(Prom   the  P&U   River.   Mass..  Herald   News. 

Dec.  5.  1973] 
CoMx  ON.  Let's  Hxak  It  rok  thi  tTirrrxD  9tatsb 

Tbls  Canatllan  thlaks  It  Is  time  to  speaJc 
up  (or  the  Americans  as  the  most  geaercnis 
and  probably  the  least  appreciated  people  on 
all  the  earth. 

Germany.  J«pan.  and  to  a  lesser  extent, 
Britain  and  Italy  were  lifted  out  or  the  debris 
oT  war  by  the  Americans  who  poured  In  bil- 
lions of  dollars  and  forgave  other  blUtons  in 
debts.  None  of  these  countries  Is  today  pay- 
ing even  the  Interest  on  Its  remaining  debts 
to  the  United  States. 

When  the  franc  was  In  danger  of  col- 
lapsing In  1956.  It  was  the  Americans  who 
propped  It  up,  and  their  reward  was  to  be 
insulted  and  swindled  on  the  streets  of  Paris. 

I  was  there.  I  saw  tt. 

When  distant  cities  are  hit  by  earthquakes, 
it  Is  the  United  States  that  hurries  In  to 
help.  This  spring  59  American  communities 
were  flattened  by  tornadoes.  Nobody  helped 

The  Marshall  Plan  and  the  Truman  policy 
pumped  billions  upon  billions  of  dollars  Into 
discouraged  countries.  Now  newspapers  in 
these  countries  Skre  writing  about  the  deca- 
dent,  warmongering   Americans 

I'd  like  to  see  Just  one  of  those  countries 
that  Is  gloating  over  the  erosion  of  the 
United  States  dollar  buUd  Its  own  airplanes. 

Come  on.  let's  hear  It. 

Does  any  other  country  in  the  world  have 
a  plane  to  equal  the  Boeing  Jumbo  Jet,  the 
Lockheed  Trlstar  or  the  Douglas  10? 

If  so.  why  don't  they  fly  them?  Why  do 
all  the  International  lines  except  Russia  fly 
American  planes?~~Njl 

Why  does  no  other  land  on  earth  even 
consider  putting  a  man  or  woman  on  the 
moon? 

You  talk  about  Japanese  technocracy,  and 
you  get  radios.  You  talk  about  German  tech- 
nocracy, and  you  get  autonwblles 

You  talk  about  American  technocracy,  and 
you  find  men  on  the  moon — not  once  but  sev- 
era!  times — and  safely  home  again. 

You  talk  about  scandals,  and  the  Ameri- 
cans put  theirs  right  In  the  store  window  for 
everyone  to  look  at. 

Even  their  draft -dodgers  are  not  pursued 
and  hounded.  They  are  here  on  our  streets, 
and  most  of  them — unless  they  are  breaking 
Canadian  laws — are  getting  American  dollars 
from  Ma  and  Pa  at  home  to  spend  here. 

When  the  railways  of  France.  Germany  and 
India  were  breaking  down  through  age.  It 
was  the  Americans  who  rebuilt  them.  When 
the  Pennsylvania  RaUroad  and  the  New  York 
Centra]  went  broke,  nobody  loaned  them  an 
old  cabooae.  Both  are  still  broke. 

I  can  name  you  5.000  times  when  the 
Americans  raced  to  help  other  people  In  trou- 
ble Can  you  name  me  even  one  time  when 
someone  else  raced  to  the  Americana  In 
trouble? 

I  don't  think  there  wasjxltslde  help  even 
during  the  San  Franctseo  earthquake. 

Our  neighbors  have  faced  it  alone,  and  I'm 
one  Canadian  who  Is  damned  tired  of  hear- 
ing them  kicked  around. 

They  will  come  out  of  this  thing  with  their 
flag  high.  And  when  they  do.  they  are  entitled 
to  thumb  their  nose  at  the  landa  that  ar« 
gloating  over  their  present  troubles. 

I  hope  Canada  Is  not  one  of  them. 

This  editorial  was  written  by  Gordon  Sin- 
clair, a  radio  and  television  commentator  in 
Toronto,  and  has  been  widely  reprinted  In 
newspapers  of  both  this  country  and  Canada 
as  well  as  the  Congressional  Record. 


TRAGEDY   IN  THE   MIDDLE   EAST 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  Illinois  (Mr.  F^dley)  la  rec- 
ognized for  5  minutes. 

Mr.  FINDLEY.  Mr.  Speaker,  the  sense- 


less violence  at  airports  In  Rome  and 
Greece  has  strained  the  fra^e  peace  In 
the  Middle  East  for  which  all  peoples  of 
the  world — Including  Arabs  and  Is- 
raelis— have  worked  so  hard. 

Only  time  will  tell  whether  the  brutal 
killings  will  permanently  rent  the  thin 
fabric  of  peace  The  Geneva  peace  con- 
^ei;^pe  appears  as  if  it  will  begin  on  an 
uncertain  note,  to  say  the  least. 

Most  diflBcult  of  all  now  Is  the  decision 
faced  by  Kuwait.  Rather  than  deal  with 
Palestinian  guerrillas,  Kuwaiti  oflflcials 
attempted  to  block  their  landing  and  to 
force  them  to  seek  refuge  elsewhere.  At 
least  in  part  their  reason  was  that  ap- 
pro.xlmately  half  the  people  who  occupy 
that  tiny  Arab  country  are  Palestinians. 

But  the  terrorists  landed  nevertheless, 
and  Kuwtiit  now  must  deal  with  them. 

Such  are  the  responsibilities  of  nation- 
hood. If  the  Kuwaitis  wish  for  the  rest  of 
the  world  to  accord  to  the  Arabs  justice 
In  their  efforts  to  regain  occupied  Arab 
lands,  then  the  Kuwaitis  must  be  ready 
to  accord  justice  to  these  terrorists. 

The  world  will  wait  for  that  Judgment, 
and  doubtlessly  many  will  judge  the  Arab 
pleas  for  justice  in  the  Middle  East  on 
the  basis  of  the  standard  of  justice  ap- 
plied to  these  guerrillas. 

That  is  Indeed  a  strict  standard  to  ap- 
ply to  Kuwait,  but  no  one  can  say  that  It 
Is  an  unfair  standard. 

Guerrilla  tactics  carried  out  against 
innocent  civilians  In  a  country  which  has 
not  become  Involved  in  the  Israeli-Arab 
conflict  hurt  the  Arab  cause  most  of  all. 
Arabs  then  should  be  the  first  to  do  some- 
thing about  It. 


ISRAELI  POWS  NEW  DEVELOP- 
MENTS: FAMILIES  BRIEF  MEM- 
BERS OF  CONGRESS 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
woman from  New  York  (Ms.  AbzuO  Is 
recognized  for  10  minutes. 

Ms.  ABZUG.  Mr.  Speaker,  today's  news 
reports  indicating  the  possibility  that 
Israeli  soldiers  captured  by  Syria  have 
been  murdered  are  extremely  disturbing. 

The  reports  from  CBS  News — Decem- 
ber 18  and  19 — cited  unldenUfled  U.S.  In- 
telligence sources  who  reported  that 
Syria  may  be  refusing  to  participate  In 
the  Geneva  peace  conference  and  refus- 
ing to  release  a  list  of  L^raeli  nationals  it 
is  holding  because  these  prisoners  have 
been  killed  while  in  custody.  The  report 
Indicated  that  Moroccan  and  Iraqui 
soldiers  may  have  been  responsible  for 
these  new  murders. 

This  morning  I  asked  the  State  De- 
partment for  confirmation  of  these  re- 
ports. Roger  Davies,  Acting  Assistant 
Secretary  for  Middle  and  Near  East  Af- 
fairs said  the  reports  were  of  "imknown 
reliability."  He  said, 

These  are  third  and  fourth  hand  reports 
and  Intelligence  sources  pick  up  these  stories 
and  pass  them  on  without  evaluation.  We 
have  no  basis  for  evaluating  them  yet. 

It  is  my  firm  hope  that  these  reports 
prove  groundless.  But  the  fsict  remains 
that  torture  and  murder  of  some  Israeli 
prisoners  has  already  taken  place  and 
that  Syria  has  yet  to  turn  over  to  the  In- 
ternational Red  Cross  a  Ust  of  the 
POW'8  it  la  holding. 


Last  Thursday  Congresswoman  Pat 
ScHROBDKR  and  I  convened  a  briefing  for 
Members  of  Congress  and  their  staffs  on 
the  serious  and  pressing  problem  of 
Israeli  soldiers  who  are  being  held  by 
Syria. 

The  Members  of  Congress  heard  di- 
rectly from  a  young  wife,  a  father  and  a 
mother  of  three  Israeli  soldiers  who  are 
in  Syria.  It  should  be  made  clear  that 
these  three  courageous  people  know  that 
their  relatives  are  prisoners  only  because 
they  Identified  them  from  photographs 
taken  by  international  news  agencies. 

At  the  congressional  briefing  the  three 
Israeli  citizens  gave  those  attending  a 
glimpse  of  what  the  last  3  '/^  months  has 
been  like  for  them  Because  they  are  wor- 
ried about  retaliation  against  their  rela- 
tives the  families  have  requested  that 
their  names  not  be  used.  But  the  story 
they  had  to  tell  needs  no  names. 

In  the  group  wsis  the  21-year-old  wife 
of  an  Israeli  pilot  who  himself  is  only  24. 
Her  husband's  plane  was  shot  down  and 
he  was  shot  at  and  wounded  while  para- 
chuting to  the  ground.  He  is  now  ap- 
parently in  a  Damascus  hospital  but  as 
she  herself  said  "there  is  every  reason  to 
oe  worried." 

Also  describing  her  experience  was  the 
mother  of  a  young  Israeli  soldier  who  was 
captured  on  the  first  day  of  the  war.  This 
mother  said: 

I  recognized  my  son  through  a  picture  re- 
leased by  the  Syrians.  Perhaps  they  wanted 
to  show  how  superior  they  were  by  showing 
they  could  capture  Israelis.  At  flrst  I  didn't 
want  to  believe  that  It  was  my  son  but  my 
hu.oband  convinced  me  that  I  must. 

The  last  member  of  the  group  to  tell 
his  story  was  the  father  of  a  detained 
Israeli  soldier.  He  summarize  the  situa- 
tion most  eloquently  when  he  appealed  to 
all  the  Members  of  Congress.  He  said: 

This  Is  our  last  hope.  For  us  It  Is  a  human- 
itarian situation.  They  (the  Syrians)  are 
taking  themselves  out  of  the  family  of 
nations. 

For  us  In  America,  each  morning's 
newspaper  and  each  night's  news  broad- 
cast gives  us  more  information  about 
the  tragic  situation  in  the  Middle  East 
and  the  negotiations  leading  to  the  up- 
coming Geneva  talks.  Each  story  makes 
references  to  the  refusal  of  Syria  to  re- 
lease a  list  of  the  soldiers  It  is  detaining 
and  their  refusal  to  allow  the  Interna- 
tional Red  Cross  to  examine  the  deten- 
tion facilities  or  to  begin  any  discussions 
leading  to  an  immediate  exchange  of 
wounded  prusoners. 

Today's  news  accounts  give  little  en- 
couragement that  Syria  will  release  a  list 
of  the  prisoners.  When  Secretary  of  State 
Henry  Kissinger  made  his  first  trip  to 
the  Middle  East  capitals  one  of  the  ele- 
ments Involved  in  getting  all  sides  to  the 
conference  table  was  an  agreement  that 
the  POW  issue  would  be  resolved.  No 
resolution  of  Uils  problem  has  yet  oc- 
curred. 

The  issue  must  be  resolved  and  we  In 
Congress  must  do  all  that  we  can  to  help. 
In  this  regard,  Representative  Marjofh 
Holt,  Representative  Pat  Schrokher,  and 
I,  who  had  all  been  to  Israel  during  the 
Thanksgiving  congressional  recess  and 
received  firsthand  information  on  this 
Issue,  circulated  a  letter  to  Secretary 
of    State    Kissinger   asking   the   United 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


42^43 


states  to  introduce  a  United  Nations 
Security  Council  resolution  calling  on 
Syria  to  release. a  list  of  the  prisoners, 
live  up  to  the  Geneva  Conventions  re- 
quirements allowing  the  International 
Red  Cross  to  examine  the  facilities,  and 
callmg  for  an  immediate  exchange  of 
wounded  prisoners. 

I  am  pleased  to  say  that  132  House 
members  signed  the  letter  to  Dr.  Kis- 
singer. At  this  point  I  would  like  to 
include  the  text  of  the  letter  and  a  list 
of  cosigners. 

Housx  or  Rephesentattves, 

Washington,  D.C. 
E*Aa  Mh.  Stoxtkri  .  As  members  of  the 
UB.  House  of  Representatives,  we  want  to 
raise  with  you  an  Issue  of  great  humanitarian 
concern  that  has  developed  as  a  result  of 
the  war  In  the  Middle  East. 

The  governments  of  Israel  and  Egypt  have 
recently  completed  an  exchange  of  prison- 
ers, and  it  Is  widely  recognized  that  this  ex- 
peditious action  has  made  a  significant  con- 
tribution to  the  prospect  for  peace  talks  be- 
tween Israel  and  Arab  nations. 

A  similar  exchange  of  prisoners  with  Syria 
has  been  proposed  by  the  government  of 
Israel.  To  date,  the  government  of  Syria  has 
not  only  refxised  to  agree  to  such  a  procedure, 
but  It  has  also  neglected  to  fulfill  its  obliga- 
tions under  the  Geneva  Convention  and  In- 
ternational law  with  regard  to  the  treatment 
of  prisoners.  The  government  of  Syria  has 
failed  to  provide  the  International  Red  Cross 
access  to  the  Israeli  prisoners  and  has  also 
denied  a  request  for  an  Immediate  exchange 
of  wounded  prisoners. 

The  Syrians  are  believed  to  be  holding  ap- 
proximately 125  Israeli  prisoners.  It  Is  our 
imderstandlng  that  Israel  has  given  the  Red 
Cross  a  Ust  of  approximately  360  Syrian  cap- 
tives It  Is  holding  and  has  given  this  orga- 
nlzaUon  au  opportunity  to  Inspect  prisoner 
and  hospital  facilities  and  to  Ulk  with  pris- 
oners of  Syrian  nationality. 

Unfortunately,  there  Is  cause  for  great  con- 
cern as  to  the  treatment  of  Israeli  soldiers 
detained  In  Syria.  A  group  of  House  members 
which  recently  visited  Israel  was  shown  docu- 
mentation and  photographs  indicating  that 
Israeli  soldiers  captured  by  Syrian  forces  have 
been  bound,  blindfolded,  mutilated,  and  shot 
or  stabbed  to  death.  The  bodies  of  approxi- 
mately 30  Israeli  soldiers,  apparently  killed 
after  their  capture,  were  located  at  various 
sites  In  the  GoUin  Heights 

War  Is  in  Itself  tragic  and  Inhumane.  How- 
ever, there  are  well-established  law  and  In- 
ternational agreements  with  respect  to  the 
handling  of  prisoners  of  war.  and  it  is  as- 
sumed that  responsible  governments  will 
honor  these  obligations. 

We,  therefore,  are  calling  on  you  to  in- 
struct the  VS.  Representative  to  the  United 
Nations  to  Introduce  a  Sectirlty  Council  res- 
olution asking  S'.Tla  to  fulfln' Geneva  Con- 
vention requirements  by  providing  the  In- 
ternational Red  Cross  with  a  list  of  prison- 
ers of  Israeli  nationality  and  permitting  the 
Red  Cross  to  contact  the  captives  and  to 
visit  POW  facilities  The  resolution  should 
al.so  call  for  an  Immediate  exchange  of 
wounded  prl.soners 

The    United    States   should    appeal    to   all 
members  of   the   UN.   Securltv  Council    re- 
gardless  of    their   position    on    the   political 
Issues   Involved   in   the   Israeli-Arab  dispute. 
to  siippcirt  such  a  resolution  on  the  erounds 
of  simple  humanlUrlanlsm  and   respect  for 
International    law     Certainly,    there    can    be 
no  doubt  that  action  by  the  U.N   on  this  is- 
sue would  be  an  important  step  toward  re- 
lieving world  tensions  and  achieving  peace. 
Sincerely. 
Patricia  Schroeder,  Bella  Abzug.  Marjorle 
Holt,  Barbara  Jordan,  Robert  O.  Tier- 
nan.  Donald  W  Rlegel,  Jr  ,  Phillip  Bur- 


ton.  Joseph  J.   Marazltl.  Dan  Daniel, 
and  Robert  A.  Roe 
Donald  E.  Young,  Benjamin  A.  GUman, 
Clarence  D.  Long,  E.  G.  Shuster.  C    V. 
Montgomery.  John  P.  Selberllng,  BUI 
Lehman,  Benjamin  S.  Rosenthal,  W.  L. 
Armstrong,  and  Ken  Gray. 
Ella    Grasso.    Robert    W.    Kastenmeler. 
FVank  J.  Brasco,  Jo.seph  M    Gaydos,  J. 
J.  Pickle,  Robert  P.  Hanrahan,  Donald 
J.  Mitchell,  William  A.  Stelger    Henry 
P.  Smith,  III.  and  Claude  Pepper. 
Thomas    P.    CNeUl,    Jr  ,    Peter    Peyser, 
Wayne  Owens,  Mendel  J.  Davis,  Nor- 
man F.  Lent,  John  J    Duncan,  Hamil- 
ton   Fish,    Jr.,    Richard    W.    Mallary, 
John  Himt,  and  Ronald  A.  Sarasln. 
Jack  Kemp,  Dick  Shoup,  Bertram  Podell, 
William   S.   Moorhead,    Dante   Pascell. 
Wayne  L.  Hays.  Herman  Badlllo,  Llndy 
Boggs.  and  oigden  Reld. 
Peter  Rodlno,  Jonathan  B.  Bingham,  Ro- 
mano   L.    Maz7-ol1,    Edward    I.    Koch, 
Matthew    J.    Rln&ldo,    Prank    Horton, 
Harold  Collier,  Prank  Thompson,  Jr., 
Alphonzo  Bell,  and  Charles  Rose. 
Edward  Mezvlnsky.  Leo  J.  Ryan,  Robert 
P.  Drlnan,  Wm.  J.  Bryan  Dorn,  Edward 
J.    Patten,    Lester    L.    Wolff,    Charles 
Vanlk,   Robert  N.   C.   Nix.   Thomas  S. 
Foley,  and  Margaret  M.  Heckler. 
Vernon  W.  Thomson,  John  H   Heinz,  m, 
Don  H.  Clausen.  Paul  Plndley,  Michael 
Harrington,   Samuel   Stratton,   Joseph 
P.  Vlgorlto,  Shirley  Chlsholm.  Angelo 
D.  Roncallo,  and  Peter  H.  R.  Preltng- 
huysen. 
James  Abdnor.  Paul   W.  Cronln.  Robert 
McEwen.    Barber    B     Conable.    Louis 
Prey,   Albert   H.    Qule.   James   W.   Sy- 
mington, Larry  Winn,  Antonio  B.  Won 
Pat. 
Prank   E    Evans.   George  E.   Brown,   Jr., 
Mike   McCormack.   James  J.   Howard, 
Ronald     V.     Delums.     Jack     Brooks, 
Charles     Wilson     (Texas).     John     M. 
Murphy.   Elizabeth   Holtzman,   Robert 
Price,  and  Joseph  G    Mlnt<!h. 
Jerome    R.    Waldle.    Dominlck    Daniels, 
John   Breckinridge.   Gerry   E    Studds, 
Sidney  R.  Yates,  Pete  Stark,  Sam  Gib- 
bons, Joseph  P.  Addabbo,  Paul  S.  Sar- 
banes.   Patsy  T.   Mink,  and  Spark  M. 
Matsunaga. 
Daniel  J.  Flood.  Lloyd  Meeds.  Marvin  L. 
Ksch.  Gene  Synder.  Samuel  H.  Young. 
John   N.    Erlenbom.    William   R,   Cot- 
ter.   Don    Praser.    WUIIam    S.    Cohen, 
Alan   Steelman,   and   Edward  R    Roy- 
bal 
Joshua  Ellberg.  Clair  W.  Burgener,  Pete 
Du    Pont     Joel    Prttchard.    Robert    J. 
Huber.  WUUam  J    Keating.  Geoj^je  M 
O'Brien,    John    B     Anderson.    Walter 
Pauntroy,  Thomas   Rees    and   Charles 
B.  Range! 

It  Is  quit-e  evident  that  this  i.=;  a  serious 
problem.  The  .=;afety  and  well-being  of  In- 
dividuals 1.'=  at  stake  The  Syrians  by  not 
releasing  the  names  of  tho."^e  captured 
are  causing  unnecessary  hardship  for 
tha^^e  families  concerned.  It  is  my  sln- 
cerest  wish.  Mr  Speaker,  that  before 
Congress  adioums  and  before  we  enter  a 
New  Year,  that  we  do  all  we  can  to  re- 
solve this  situation. 


SELECT  L.^BOR  CH.^IRM.AN  INTOO- 
DUCES  BILL  TO  OUTL.\W  AIRLINES 
MUTUAL  AID  PACT 

The  SPE,^KER  pro  tempore  Under  a 
pre\-lous  order  of  the  House,  the  gentle- 
man from  New  Jersey  (Mr.  DAi>nxLs)  is 
recognized  for  5  minutes 

Mr.  DOMINTCK  V.  D.^NIELS.  Mr, 
Speaker,   It   is   axiomatic   that   a   strike 


rarely  helps  either  labor  or  management. 
If  it  lasts  any  time  it  is  rare  that  gains 
equal  the  loss  in  wages  and  profit  that 
are  part  and  parcel  of  any  protracted 
strike. 

Certainly  nothing  is  gained  by  encour- 
aging one  side  to  assume  a  hard  nosed 
posture  and  avoid  reaching  agreement. 
Such  a  device  is  the  so-called  mutual  aid 
agreement  under  which  airlines  not  be- 
ing struck  c.-in  provide  financial  aid  to  an 
airline  whose  employees  are  engaged  in 
a  strike.  Obviously  this  discourages  the 
spirit  of  collective  bargaining.  For  this 
reason  I  have  Introduced  legislation  to- 
day to  terminate  the  mutual  aid 
agreement. 


"CHE.'^P  SHOT"  AT  AF  BOOMERANGS 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  South  Carolina  (Mr.  Davis)  is 
recognized  for  5  minutes. 

Mr,  DA\'IS  of  South  Carolina.  Mr. 
Speaker,  in  these  days  of  money  bills  in 
the  millions  and  billions  of  dollars,  a 
figure  like  $100,000  does  not  stand  out 
ver>-  far.  While  this  figure  is  small,  I  am 
sure  the  newspaper,  TV.  radio  media 
would  quickly  seize  such  a  figure  if  they 
could  prove  it  had  been  taxpayers'  money 
which  has  been  wantonly  squandered. 
Furthermore,  the  crime  uould  be  ccn:- 
pounded  if  it  were  a  member  of  the 
Armed  Forces  unfortimate  enough  to  be 
responsible. 

Well.  Mr.  Speaker,  $100,000  has 
been  wasted — wantonly  squandered — 
and  there  is  not  one  cr>-  from  the  media, 
not  one  outraged  editorial,  not  one  bold 
headline  decrying  this  affront  to  justice. 
Perhaps  the  fact  that  a  member  of  the 
press  fraternity  is  the  cause  of  the  waste 
could  be  the  reason  the  story  has  been 
muzzled. 

I  certainly  believe  in  "freedom  of  the 
press,"  but  this  does  not  include  the  be- 
lief that  journalists  can  be  irresponsible 
in  their  methods.  I  also  do  not  believe  a 
newspaper,  even  a  major  daily  Uke  the 
Washington  Post,  has  the  right  to  pub- 
lish a  sensational  charge  and  then  Ignore 
the  fact  that  it  does  not  check  out  to 
truth.  The  foUowlng  article  by  Col.  R.  D. 
Heinl,  Jr..  a  writer  with  the  Detroit  News, 
more  than  bears  out  this  belief.  I  offer  it 
now  for  you  and  mj-  colleagues. 

"CHXAP    SHOT"    AT    AF    BOOMOLANCS 

(By  Col.  R.  D.  Helnl,  Jr..  USMC   iRet.)  \ 

Washington.— The  kind  of  a  bum  rap  the 
armed  forces  are  accustomed  to  getting  from 
the  media  could  hardly  be  more  forcefully 
exemplified  than  In  a  recent  case  of  Jovir- 
nallstic  malpractice  Involving  the  Washing- 
ton Post  and  the  VS.  Air  Force. 

Last  Aug.  15.  In  a  Page  One  story,  the  Post 
alleged  that  authorities  at  Charleston  Air 
Force  Base  in  South  Carolina  had  secreUy 
buried  "thousands  of  dollars  worth"  of  costly 
gear  In  the  base  dump  and  a  nearby  pond  to 
fool  a  team  of  visiting  Inspectors. 

Crediting  au  official  of  the  base  employes' 
union.  Post  reporter  William  Claiborne  listed 
'electronic  equipment,  aircraft  parts  and 
other  new  usable  equipment  ...  27  rolls  of 
stalr.less  steel  cable,  new  and  used  engine 
parts,  printed  electrical  circuits,  scores  of 
cans  of  paint,  desks,  chairs  and  file  cabinets, 
new  shower  stalls,  transistor*  and  new  OI 
cans." 


426-4-1 


CONGRESSIONAL  RECORD  —  HOUSE 


All  these  and  more  the  Poet  reported,  had 
for  reaaona  never  altogether  clear  been 
burled   or  dumped   In  the  pond. 

Claiborne's  41  column-lnchee  lon^  story 
wa«  headed:  "Cleanup  or  Cover-up?  Supplies 
Burled  In  Dump  Prior  to  Inspection."  The 
piece  was  syndicated  by  the  Lcb  Angeles 
Times-Washington  Post  News  Service  and.  as 
nolght  be  expected,  generated  Instant  fallout 
from  Indignant  readers. 

Picking  up  the  cry,  the  LA  Times  edito- 
rialized: "PunlHhment  Is  In  Order  .  .  .  The 
best  way  to  stop  this  needless  waste  would 
be  to  start  punishing  the  officers  who  gave 
the  orders." 

That  reaction  of  the  LA  Times  to  what — 
from  Claiborne's  story — seemed  to  be  In- 
credible brass-hat  stupidity  spoke  typically 
for  news  and  electronic  media  across  the 
country. 

At  Charleston,  however,  the  reaction  that 
mattered  most  was  a  storm-front  of  investi- 
gators and  Inspectors  that  swept  down  on 
the  base  amd  Its  commander.  Brig.  Oen.  R  L. 
Moeller. 

The  day  the  Post's  story  ran,  the  deputy 
Inspector-general  of  the  Air  Force,  a  mkjor 
general.  Jetted  down  from  Washington  to 
direct  a  probe  already  launched  by  the  in- 
spector-general. Military  Airlift  Command 
(Who  had  flown  In  from  Illlnolsi.  Backing 
the  inspectors  was  a  task  force  from  the  Air 
Porce  Office  of  Special  Investigation. 

For  four  days  sleuths  and  Inspectors  took 
sworn  testimony  from  every  known  source 
for  Claiborne's  article.  Marshaling  an  array 
of  earth-moving  equipment,  they  dug  and 
sifted  the  entire  dump  and  even  drained 
the  pond. 

Examined  on  oath  In  the  presence  of  union 
representatives,  employes  named  by  the  Poet 
denied  words  put  in  their  mouths  by  report- 
er Claiborne,  or.  In  one  partlcxilar  regarding 
electrical  equipment,  said  he  bad  misunder- 
stood. 

Dump  and  pond  proved  barren.  Although, 
m  the  words  of  CBS-News  reporter  David 
Henderson,  who  Aimed  the  dig,  "they  dug  up 
the  entire  dump."  the  recovery  amounted 
to  one  scraper-blade,  a  few  runway  sweeper 
brushes,  nine  old  QI  cans,  several  moldy 
mattreaees  and  30  sacks  of  damaged  fertilizer. 
The  four  days'  probing,  trenching  and 
pumping  that  produced  this  meager  return 
was  carried  out  under  the  eyes  of  CBS  (which 
gave  up  on  the  story),  local  reporters  and 
wire-service  men  who  stayed  to  the  end. 

The  only  reporter  who  didn't  stay  for  the 
dig  was  from  the  Washington  Post  On 
Aug  14.  soon  after  Oen  Moeller  had  already 
started  excavation,  Claiborne  as  he  admitted, 
announced  he  had  a  plane  reeervatlon  to 
make."  and  departed  for  Washington  where 
his  article  started  so  much  trouble  next 
morning.  (Aaked  why  he  had  not  stayed  to 
watch  the  diggings  which  would  prove  or 
disprove  his  story  Claiborne  replied.  "They 
dldnt  decide  to  dig  untu  they  knew  I  had 
plane  reservations  and   had   to  leave.") 

MoeUer  tells  it  differently  "I  told  Clai- 
borne." he  stated,  we're  digging  this  whole 
thing  up  and  I  can  get  you  a  comfortable 
chair  to  sit  in  the  shade  of  a  tree  and  you 
can  w»tch  this  entire  dump  being  dug  irp." 
One  who  did  stay  was  Henderson  from 
CBS-News.  "We  simply  couldnt  back  up  the 
Poet  story  ■•  Henderson  said  afterward,  a  fact, 
he  added,  that  gave  him  problems  with  New 
York,  which  insisted  to  the  end  that  If  It 
was  Page  One  Washington  Poet  it  had  to  be 
■o 

When  nothing  more  was  left  to  dig.  drain 
or  investigate,  the  wire  services  duly  re- 
ported negative  resuiu,  as  well  as  official 
exoneration  of  Oen.  Moeller  and  tb«  fact 
that  Air  Force  headquarters  allowed  the  base 
to  retain  its  original  rating  as  best  such 
command. 


December  19,  197S 


Neither  the  Post  nor  LA  Times  could  And 
that  they  ran  any  wire-service  stories  that 
would  have  balanced  the  Poet's  original  un- 
fair report.  Having  launched  a  sensational 
story  with  highly  adverse  national  reverbera- 
tion for  the  Air  Force,  the  Post  undertook  no 
foUow-up  and  dropped  the  story  as  did 
the  LA  Times, 

(On  Nov.  30,  over  three  months  late,  the 
Post,  belatedly  aware  of  Inadequacies  in 
Claiborne's  story,  ran  a  grudging,  d«eply 
burled  report  that  Air  Force  Izispector-gen- 
erals  had  cleared  the  base  but  gave  no  hint 
of  this  nonstory's  original  Insubstantlallty. 

Of  all  radio-TV  stations  that  ran  the 
dump  story  nationwide,  only  KMOX-TV  (St. 
Louis)  Is  known  to  have  given  the  Air  Force 
time  to  refute  the  original  charges  had  been 
demolished. 

Claiborne  nevertheless  stands  by  his  story. 
"I  think  the  Air  Force  got  a  fair  shake."  he 
Insists. 

One  party  who  did  not  get  a  fair  shake  on 
the  Posts  expose"  was  the  taxpayer.  Cost- 
ing out  the  thousands  of  gallons  of  now- 
scarce  jet  fuel  wasted  In  Aylng  investigators 
from  Washington  and  Illinois,  travel-ex- 
penses and  per  diem  for  them  and  air  crews, 
aircraft  operating  coats,  thousands  of  man- 
hours'  labor  and  investigation,  heavy  equip- 
ment tied  up  and  all  other  charges  associated 
with  the  probe.  Oen.  Moeller  glumly  put  the 
total  at  "cloae  to  $100,000." 

What  the  irresponsible  reportorlal  caper 
may  have  cost  the  Armed  Forces  other  than 
In  dollars  Is  Intangible  and,  therefore 
Incalculable. 

On  the  part  of  the  U£  Air  Force,  a  proud 
and  competent  service  victimized  by  the 
Post's  cheap  shot.  It  Is  worse  than  incalcul- 
able: it  Is  unforgivable. 


HEARING  SPONSORED  BY  THE  CO- 
ALITION FXDR  HUMAN  NEEDS  AND 
BUDGET  PRIORITIES 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  genUe- 
man  from  Washington  (Mr.  Adams)  Is 
recognized  for  5  minutes. 

Mr.  ADAMS.  Mr.  Speaker,  during  a  re- 
cent trip  to  my  district.  I  attended  a  spe- 
cial hearing  sponsored  by  the  Coalition 
for  Human  Needs  anc'  Budget  Priorities. 
The  purpose  of  this  hearing  was  to  hear 
testlmonj-  from  many  individuals,  who 
represent  a  variety  of  community  pro- 
grams, concerning  the  functioning  of 
their  program  within  the  community  and 
the  Impact  of  Federal  funding,  priorities, 
and  policies  on  the  program  s  effective- 
ness 

I  was  very  impressed  by  the  dedication 
and  involvement  of  the  many  individ- 
uals who  participated  In  the  hearing 
The  conclusions  which  can  be  drawn 
from  the  testimony  presented  should  be 
of  great  Interest  to  all  of  us  who  are  con- 
cerned about  unmet  social  needs  at  the 
graasroots  level  and  the  necessary  st«ps 
that  must  be  taken  to  meet  these  needs 
at  the  Federal  level. 

The  hearing  was  divided  Into  a  number 
of  subject  areas  each  represented  by  a 
variety  of  organizations  and  groups.  I 
have  prepared  as  sximmary  of  the  views 
preswited  at  the  hearing  I  attended,  and 
I  would  like  to  share  this  with  my  col- 
leagues. Director  of  the  hearing  was  Alice 
Paine  of  the  American  Friends  Service 
Committee.  Chairing  the  meeting  was 
Roberta  Byrd  Barr.  principal  of  Lincoln 
High  School  In  Seattle. 


J.  socLLL  jTjsncK  Fos  rTHKic  MiKoamxs. 

TOtJTH    AND    WOtCXN 

Patricia  Kemlghan  Feminist  Coordinat- 
ing Council.  Ms  Kemlghan  singled  out  fed- 
eral fundmg  cutbacks  In  child  catc.  health 
care,  and  legal  servieH  for  parLlcular  crit- 
icism as  to  their  negative  impact  on  women. 
She  cited  recent  legislation  that  requires  wel- 
fare mothers  to  work  while  at  the  same  time 
funds  for  day  care  are  cutback  Health  care 
for  Infants  and  mothers  in  this  area  '.s  in- 
adequate as  evidenced  by  the  fact  '.hat  the 
dlpthena  rate  in  Seattle  Is  the  highest  In  the 
nation.  WhUe  60  t^  of  Legal  Services  clients 
are  women,  funds  are  being  cutback  and 
Legal  Services  is  currently  threatened  with  a 
proposed  prohibition  against  advocating 
changes  In  legislation  or  government  policies. 
This,  coupled  with  cutbikcks  which  virtually 
eliminated  the  Women's  Rights  Office,  will 
result  m  a  great  reduction  of  effective  ad- 
vocacy of  women's  rights. 

Eddie  Rye:  Executive  Director.  Central 
Area  Motivation  Program.  Mr  Rye  stressed 
the  lack  of  funds  and  the  overabundance  of 
red  tape  and  paperwork.  He  is  particularly 
concerned  about  the  lack  of  funds  for  on- 
going youth  programs  and  He€Ml  Start  pro- 
grams, which  have  been  taken  over  by  King 
Coimty  since  the  demise  of  the  Seaitle-Klng 
County  Economic  Opportunity  Board  He 
does  not  feel  that  we  should  or  can  look  to 
the  public  schools  to  solve  all  Juvenile  prob- 
lems. He  had  expected  that  revenue  sharing, 
with  Its  Implied  increase  In  local  control  over 
how  public  funds  are  used,  would  mean  that 
more  funds  would  be  avaUable  for  these  pro- 
grams, but  this  has  not  happened.  He  called 
for  greater  citizen  participation  In  decisions 
regarding  the  use  of  revenue  sharing  funds. 

S.     XDUCATION 

Carol  Rlchman:  Central  Seattle  Commu- 
nity Council  Federation  Ms  Rlchman  is  con- 
cerned about  reduced  levels  of  federal  fund- 
ing, and  stressed  the  changing  and  expand- 
ing role  of  education  in  today's  society. 
There  is  a  need  for  greater  equality  of  edu- 
cation for  mmorltles  and  the  disadvantaged, 
and  more  attempts  to  meet  the  changing 
needs  of  youth,  particularly  problems  relat- 
ing to  alcohol,  drugs,  and  criminal  offenses. 
Increased  financial  aid  and  student  loans 
for  higher  education  are  also  needed.  She 
feels  It  is  necessary  now  for  federal  programs 
and  admmistratlon  to  be  reviewed  and  re- 
evaluated In  order  to  make  them  more  effi- 
cient, responsive  and  accountable.  In  con- 
clusion, she  urged  the  setting  of  policy  and 
guidelines  at  the  national  level,  but  Imple- 
mentation at  the  lowest  possible  level. 

Milton  Karr:  Councu  on  Planning  Affili- 
ates. Mr.  Karr  foctised  on  the  problems  of 
"wandering  youth  " — which  In  Its  current 
magnitude  is  a  relatively  modem  problem — 
and  the  alienation  and  almlessness  of  a  high 
proportion  of  them.  He  urged  Congressional 
action  in  three  areas: 

1)  Hostels  and  similar  accommodations  for 
youth  should  be  provided  across  the  coun- 
try, as  has  been  done  in  many  other  coun- 
tries 

2)  Legislation  sponsored  by  Senator  Birch 
Bayh  to  provide  housing  and  services  for 
runaway  youth  should  be  passed  Mr  Karr 
stressed  the  Increasing  magnitude  of  this 
problem  In  the  Seattle  area,  and  the  Increas- 
ing number  of  young  women  In  this  group. 
In  19fl7  the  Seattle  Police  Department  had 
runaway  reports  on  869  yovmgsters;  In  1972 
the  number  had  risen  to  3348 

3  I  LegUlative  action  u  needed  to  increase 
employment  opportunities  for  youth  He 
cited  the  high  unemployment  rate  among 
youth  According  to  the  1970  census,  29  4% 
of  high  school  graduates  are  out  of  school 
and  out  of  work.  Among  black  female  grad- 
uates, the  percentage  is  57  e"".  More  oppor- 
tunitlee  for  significant  work  must  be  found, 
and  he  suggesto  a  federal  program  that  would 


December  19,  197S 


CONGRESSIONAL  RECORD  — HOUSE 


enable  youth  to  participate  In  the  designing 
of  their  own  work  projects. 

June  Shlmakawa  Special  Counseling  in 
Continuation  Schf»l  Ms.  Shlmakawa  is  con- 
cerned about  the  problems  of  teenage  par- 
ents Contraceptives  and  abortion  liberaliza- 
tion have  reduced  the  number  of  unwanted 
pregnancies,  but  the  percentage  of  young 
people  In  this  position  la  Increasliig  Nation- 
wide there  are  600. (X)0  teenage  mothers  and 
80'*  keep  their  children  The  Department  of 
Health  Education,  and  Welfare  has  in  the 
past  supported  programs  in  this  area,  but 
these  have  now  bee:i  cutback  She  feels  that 
an  Ideal  way  of  reaching  these  people  is 
through  the  education  system,  but  to  do  so 
effectively  funding  Is  needing  on  a  stable, 
continuing  basis. 

3.  EMPLOTMrNT 

Ed  Good:  former  Executive  Director. 
Seattle  Joint  Manpower  Board  Mr  Crood  is 
very  critical  of  the  lack  of  a  national  man- 
power policy  and  focus  the  bureaucratic 
duplication  and  proliferation  of  administra- 
tive agencies  aid  lines  of  authority  He  cited 
statistics  to  emphasize  the  urgent  need  for 
concerted  federal  action  there  are  85.000 
poor  or  near-poor  in  the  Seattle-Everett  area, 
and  only  12.000  of  these  are  being  reached  by 
existing  manpower  services  Between  Octo- 
ber 1972  and  October  1973,  unemployment 
In  this  area  was  reduced  .1'^,  while  at  the 
same  time,  the  manpower  budget  was  re- 
duced 21  %.  In  this  area,  outside  of  the  aero- 
space sector,  only  lOOO  new  Jobs  are  created 
yearly. 

WUma  Ooss:  Klnatechltapl  Indian  T>ro- 
gram.  Ms.  Ooss  points  out  that  Indians  are 
the  "minority  of  all  minorities  and  that 
existing  employment  plans  for  this  area 
exclude  them.  There  is  currently  a  65%  un- 
employment rate  among  Indians  Programs 
to  reduce  this  percentage  must  Include  edu- 
cation and  on-the-job  training  programs  to 
bring  up  skills,  and  efforts  to  deal  with  alco- 
holism problems,  a  major  barrier  to  employ- 
ment among  Indians 

Arron  Balr:  Client.  Renton  Vocational 
Technical  Institute  Mr  Balr  gave  his  f)er- 
aonal  testimony  as  to  the  effectiveness  of  the 
adult  vocational  training  he  has  experienced 
and  the  need  to  expand  the  program  to  reach 
more  people  He  quit  school  in  the  eth 
grade  and  wa-s  a  well-paid  truck  driver  until 
he  had  an  accident  and  was  laid  up  for  two 
years  He  Is  highly  motivated  and  anxious 
to  take  advantage  of  the  schooling  now 
available  to  him.  and  he  beUeves  other  adults 
In  his  program  feel  the  same. 

4.  HOtrSINC 

Josephine  Osby  Seattle  Housing  Develop- 
ment. Ms.  Osby  stressed  the  shortage  of 
housing  In  thU  area  for  low  income  families. 
The  235  home  ownership  program  has  had  Its 
funds  frozen  by  the  Administration  since 
January  1973.  and  leased  housing  is  currently 
available  only  for  families  of  five  or  more' 
While  there  are  currently  3000-4000  vacant 
houses  In  this  area  that  have  been  taken 
over  by  the  Federal  Housing  Administration 
most  are  too  expensive  for  low  Income  fam- 
ilies In  addition,  there  Is  no  funding  for  a 
minor  home  repair  program,  and  this  Is 
essential. 

Donna  L Instead :  Board  Member.  Klna- 
techltapl Indians.  According  to  Ms  Llnstead, 
Indians  have  the  worst  economic  plight  of 
any  U.S.  group,  and  there  is  an  immediate 
nesd  for  an  emergency  housing  program  for 
Indians  in  urban  areas  The  Indian  life  style 
makes  them  mobile,  and  when  they  find 
themselves  In  an  urban  area  cut  off  from 
their  tribe,  they  often  do  not  know  where  to 
go  for  assistance  Her  group  is  currently  run- 
ning a  volunteer  housing  program,  but  there 
is  a  real  need  for  a  more  permanent  program 
for  both  general  and  short  term  housing.  A 
permanent   Indian   housing   advisory   board 


4264i; 


should   be  organized  and   staffed   In   Seattle 
with  a  listing  and  referral  system. 

Dick  Mclver  National  Association  of  Hous- 
ing and  Redevelopment  OfOclals.  Mr  Mclver 
stressed  the  urgent  need  for  passage  of  the 
Communlly  Development  Special  Revenue 
Sharing  legislation,  which  must  include  a 
hold  harmless  provision  for  Mode!  Cities 
funds,  by  fiscal  year  1975,  or  some  Interim 
funding  There  must  be  more  funding  for 
a  redevelopment  program  In  the  housing  area, 
especially  for  the  Central  Area  where  Impact 
funding  Is  needed  for  the  rejuvenation  of 
existing  housing 

Don  Krum  Puget  Sound  Governmental 
Conference  and  Low  Income  Housing  Coali- 
tion Mr,  Kram  Is  very  crltlcaj  of  what  he 
termed  a  drastic  cutback  In  the  low  income 
housing  p.-ograms^y  the  Nixon  Administra- 
tion The  Seattle  Housing  Authority  could 
currently  flu  6000  additional  units  for  the 
elderly  alone  To  participate  In  the  private 
housing  market  In  this  area,  a  famllv  must 
have  at  least  a  salary  of  $13,000  In  the  face 
of  a  record  defen.se  budget,  and  higher  cor- 
porate profits,  national  budget  priorities 
must  be  reorganized  to  better  meet  human 
needs. 

6.    COMMUKITT     DITVZLOPltXITT/SOClAI.    SIKVICkS 

Don  NorwDod  King  County  Youth  Action 
Councu.  Mr  Norwoods  program  currently 
depends  on  O  E  O  funding  for  their  U  youth 
service  agencies  and  20  job  training  poel- 
tlons.  As  O.E©.  is  phased  out  he  Is  afraid 
that  they  will  not  be  alxe  to  find  continuing 
funding.   In  spite  of   revenue   sharing. 

Carl  Fisher:  Center  for  Addiction  Services. 
Mr.  Fisher's  agency  is  the  umbrella  agency 
for  addiction  help  groups  Thev  are  stli: 
seeing  70-100  clients  per  month  and  heroLn 
Is  the  major  problem  He  is  afraid  that  be- 
cause the  Immediate  driig  sca.'-e  is  gone  the 
concern  Is  gone  and  funds  are  be:ng  c.,i  back 
He  Is  particularly  concerned  about  the  Sup- 
plemental Security  Inccane  Prcvram,  under 
which  addicts  will  be  excluded'  from  dlsa- 
bUlty.  He  Is  afraid  that  under  the  new  reg- 
ulations, an  addict  must  be  made  physicaUy 
sick  before  he  can  be  served 


6      MIVTAL    HEALTH 

James  Becker  Chairman  Kings  County 
Mental  Health  Board  Mr  Becker  indicated 
that  funding  for  mental  health  progTam5  m 
this  area  \s  running  out  Mental  health  is  not 
being  funded  under  special  revenue  sharing 
and  demand.',  t^-r  their  services  is  increasing' 

Bemadlne  Mathlson  Hlghllne-West  Seat- 
tle Mental  Health  Center  Ms  Mathlaon's 
center  has  served  J>0O0  client.^  m  four  years 
but  now  are  facing  loss  of  ^mdlng  through 
Administration  lmp<:>undmer,t  and  what  was 
termed  a  reversal  of  federal  policies  She  sees 
an  Increased  demand  for  their  services  and 
the  need,  f-.r  example,  of  a  24-hoiu-  emergency 
treatment  center  However,  funding  is  not 
currently  available 

LorettA  Flesrh  Client  Hlghl'ne-Weist  Se- 
attle MentAl  Health  C<-nter  Ms  Flesoh  gave 
her  persona!  testimony  as  to  the  help  she 
received  when  she  was  going  through  a  pe- 
riod of  emotional  problems  She  1^  extremely 
grateful  for  what  the  center  was  able  to  do 
for  her. 

7.  BtTDcrr  i»BioRrTrr8 
Robert  Doupe  National  Association  of  So- 
cial Workers,  Mr  Doupe  L<^  ertarmelv  critical 
of  the  Nixon  .^dmlnlstrhtlon  s  priorities  and 
cutbacks  and  characterized  the  Admlnlstra- 
Uon  as  misguided,  deceptive,  stingy  and 
hearUess  The  upshot  of  revenue  sharing 
he  feels,  is  that  social  programs  suffer  He  U 
cntlcal  of  federal  cutbacks  in  fr.ndlng  far 
a  variety  of  social  programs  in  thU  area  and 
outlined  Jive  proposals  for  which  he  tiiged 
Oongresslonal  support: 

(1)  Restoration  of  budget  cuts  In  health, 
welfare,  educaUon,  housing  and  urban  de- 
velopment. 

(2)  Passage  of  new  legislation  such  as  the 


social  services  amendments  sponsored  by 
Senator  Mondaie  the  National  HealtJQ 
-Vet,  the  Health  Maintenance  Organization 
Act.  and  the  Child  Development  Act 

I  3  I  Creation  of  the  necessary  Congression- 
al coalition  to  override  the  President  s  vetoes 
of  Important  legislation 

4  I    Tax  reform  to  close  loopholes  and  cor- 
rect the  present  unfair  schedule  of  taxation. 

'5i  Redirection  of  excessive  military 
spending  to  social  needs. 

Jerry  Sharp:  Washington  Federation  of 
SUte  Employees  Local  843  Mr  Sharp  pointed 
to  the  gap  between  the  AQmlnistratio-  s 
rhetoric  and  the  actual  impact  on  social 
needs  at  the  grassroots  level  He  does  not 
feel  that  revenue  sharing  is  meeting  the 
needs  which  exist  and  social  programs  must 
receive  a  higher  national  prlorltv.  He  urges 
passage  of  social  sen-ic*s  legislation  K>on- 
soped  by  Senator  Mondaie.  S   2526 

Thorun  Robel  Seattle  Women  Act  for 
Peace  and  Coalition  for  Peace  and  Ju.stlce 
Ms  Robe]  attended  the  recent  World  Con- 
gress for  Peace,  held  m  Moscow,  She  feels 
that  peaceful  coexistence  Is  both  possible 
and  essential,  and  universal  disarmament  la 
a  major  goal. 

8      LEGAL    SZEVTCXfi 

Rita  Galer  Director,  Seattle  Legal  Serv-lces 
.Ms  Gaier  stressed  the  necessity  of  roalntatn- 
ing  a  vUble  legal  services  program  If  there  is 
to  be  equal  justice  under  the  law  without 
.-^gard  to  wealth,  power  or  privilege  It  Is 
essential  that  the  National  Legal  Services 
Corporation  Bill  be  passed  without  the  crip- 
pling floor  amendment*  added  m  the  House 
She  supports  the  version  of  this  legislation 
as  reported  by  the  Senate  committee  There 
must  be  no  restrictions  as  to  the  legal  ac- 
tions that  can  be  taken  in  the  cases  of  the 
poor  by  the  LegaJ  Services  attorneys 

John  Darrah  Director,  Seattle  Pub'lc  De- 
fender Office  The  Seattle  Public  De'fender 
program  has  been  a  m.cxlel  one,  but  now  their 
funding  Is  being  reduced  and  thev  are  being 
forced  to  cutback  Mr  Darrah  sUfssed  that 
It  is  essential  to  have  a  program  for  defense 
that  balances  the  prosecution  if  there  is  to 
be  Justice  under  our  system. 

8      XKIRCT    ALLOC  ATIOK 

Chip  Marshall  There  l.s  an  energy  crisis 
and  Mr.  Marshall  Is  concerned  that  fuel  costs 
wui  be  so  high  that  the  poor  will  be  priced 
out  of  the  market  He  also  feels  that  the 
crisis  Is  producmg  fear  among  the  public 
which  the  Administration  is  trying  to  manip- 
ulate Watergate  Illustrates  the  abu.se  of 
power  when  it  Is  concentrated  in  the  hands 
of  a  few  He  opposes  stronglv  giving  sweep- 
ing^ unilateral  powers  to  the  President  re- 
garding energy  allocation  What  we  need  are 
positive  solutions  to  the  energy  crisis 

10,    STMMAnON 

r^.^'^x^''   Hundley      Director,    Seattle    Model 
City   Program.   There   are   numerous    federal 
programs  that   have   been   designed   to   meet 
.he  needs  of  the  people  and  these  have  most- 
ly  come   from   the   Congress    However    there 
is  a  need  for  funding  to  continue  the   basic 
services  as  the  needs  have  not  vet  been  met 
If    improvements    cad    occur    m    these    pro- 
grams.  Mr    Hundley   calls   for   modifications 
and    mnovauons,    but    not    the    "meat    ax  " 
Congress  needs  to  work  to  bring  about  a  re- 
organization of  federal  budget  priorities   and 
this  has  not  been  done    He  sees  the  counu-r 
approaching  another  crisis  as  social  programs 
«-.nd  down  and  end    Pnr  example    80  people 
have  been  laid  off  from  M.-xle!  Cltl«.  -^-  date 
and  20  projects  have  been  closed  down    The 
EEA    program    ends    L-.    December    1873     U 
something  does  not  happen  to  meet  the  newls 
which  exist  and  reverse  the  current  process, 
Mr.  Hundley  fears  a  return  to  the  earlier" 
crisis  period  of  the   1960's  when  there  were 
riots,  burnings  and  bombings  In  the  fact  of 
frustration. 


42&16 


CONGRESSIONAL  RECORD  — HOUSE 


December  19,  197S 


HEARINGS  BEGIN  ON  BAYH-DRINAN 
CONSTITUTIONAL  AMENDMENT 
TO  LOWER  THE  AGE  AT  WHICH 
INDIVIDUALS  MAY  COME  TO 
CONGRESS 

The  SPEAKER  pro  tempore.  Under  a 
previous  order  of  the  House,  the  gentle- 
man from  Masschusetts  'Mr  DriKan)  Is 
recognized  for  15  minutes. 

Mr.  DRINAN  Mr.  Speaker,  this  morn- 
ing, the  Senate  Judiciary  Committee. 
Subcommittee  on  Constitutional  Amend- 
ments, held  hearings  on  a  constitutional 
amendment  proposed  by  Senator  Bath. 
the  distinguished  chairman  of  that  sub- 
committee, and  m>self,  designed  to  re- 
duce the  age  for  eligibility  m  the  Senate 
and  the  House  from  30  to  27.  and  25  to 
22  years,  respectively. 

I  testified  at  those  hearings,  and  am 
pleased  at  this  time  to  insert,  for  the 
consideration  of  my  colleagues,  my  testi- 
mony In  the  Rbcoro  I  am  also  pleased 
to  Insert  the  excellent  testimony  of  Sen- 
ator Birch  Bath  on  thLs  proposed  con- 
stitutional amendment  In  his  testimony. 
Senator  Bayh  states: 

In  the  10  years  I  hare  served  as  chairman 
of  the  Senate  Subcommittee  on  Constitu- 
tional Amendments.  I  have  seen  few  pro- 
posals supported  by  such  compelling  logic 
and  reason  as  this  one. 

Mr.  Speaker,  the  Subcommittee  on 
Constitutional  Rights  of  the  House  Judi- 
ciary Committee  will  be  holding  hear- 
ings on  this  matter  shortly  after  the  re- 
cess. This  morning,  Russell  D  Hemen- 
way.  national  director  of  the  National 
Committee  for  an  Effective  Congress, 
testified,  on  behalf  of  his  organization, 
in  support  of  this  constitutional  amend- 
ment. I  am  pleased  that  Mr.  Hemenway 
will  also  appear  before  the  House  Sub- 
committee. 

Mr.  Karl  Rove,  natlonsil  chairman  of 
the  college  Republicans,  as  well  as  Mr. 
Larry  Friedman,  president  of  the  U.S. 
National  Student  Association,  and  Mr. 
Charles  Schollenberger.  a  well-Informed 
student  from  Wooster.  Ohio  also  testi- 
fied 

The  text  of  Senator  Bath's  and  my 
own  testimony  follows: 

Tbstimont  or  RosraT  P.  D«n»4ic 

I  wish  to  thank  the  distinguished  Chair- 
man of  the  Subcommittee  on  Constitutional 
Amendments  of  the  Senate  Judiciary  Com- 
mittee for  this  opportunity  to  begin  formally 
what  I  hope  will  be  an  historic  succession 
of  events  leading  to  the  ratification  of  an 
Amendment  to  the  Constitution  of  the 
United  States  The  dlstlnputshed  Chairman 
of  this  Subcommittee.  Senator  Birch  Bayh. 
and  I  have  Jointly  Introduced  a  proposal  to 
amend  the  Constitution  to  provide  that 
.American  citizens  may  be  eligible  to  become 
Memtjers  of  the  House  of  Repreaentattvee  If 
they  have  attained  the  age  of  33.  rather  than 
35  as  the  Constitution  now  requires,  and  may 
be  eligible  to  become  a  Member  of  the  United 
States  Senate  upon  attaining  the  age  of  37. 
rather  than  the  present  required  age  of  30 
years 

My  enthusiasm  for  the  success  of  this 
Amendment  is  enhanced  by  the  determina- 
tion of  the  Subcommittee  on  Constitutional 
Amendments  of  the  House  Judiciary  Com- 
mittee to  hold  bearings  on  this  very  same 
Amendment  when  the  93rd  Congresa  recon- 
venes for  \^  3nd  Session.  I  shall  have  the 
honor  to  preside  at  those  hearings  before 
the  House  Subcommittee  on  Constitutional 
Amendments  of  which  I  am  a  member 


There  are  many  reasons  why  I  propoae  ttUa 
Amendment,  but  the  principal  reason  Is  to 
permit  the  young  people  of  the  United  States 
to  participate  as  Representatives  and  Sen- 
ators in  the  formation  of  the  policies  by 
which  all  Americans  wUl  be  governed.  I  look 
upon  the  exclusion  of  young  people  as  both 
arbitrary  and  unwise. 

The  people  of  America  took  only  a  few 
months  to  ratify  the  lowering  of  the  voting 
age  from  31  to  18  years.  Although  Congress 
delayed  this  particular  measure  for  several 
years,  the  people  demonstrated  their  readi- 
ness to  act.  They  know  that  the  young  people 
In  this  country  deserved  the  right  to  vote 
at  the  age  of  18,  because  young  people  were 
adequately  prepared  aud  sufficiently  mature 
to  exercise  the  franchise  lysponslbUlty. 

It  Is  my  hope  and  expectation  that  the 
Congress  and  the  p>ecple  of  the  United  States, 
having  lowered  the  voting  age  which  had 
been  set  by  the  founding  fathers,  will  fol- 
low this  course,  and  provide  that  the  ages  of 
35  and  30  set  forth  In  the  Constitution  as 
requirements  for  membership  In  the  House 
and  the  Senate  respectively,  should  be  com- 
parably lowered  by  three  years. 

Some  might  argue  that  any  American  cltl- 
ren  should  be  eligible  to  run  for  the  House 
or  the  Senate  If  he  or  she  has  attained  the 
age  of  31  or  even  18.  The  Amendment  which 
the  distinguished  Chairman.  Senator  Bayh. 
and  I  propose,  however,  does  not  seek  any 
alteration  of  the  logical  symmetry  of  the 
Constitutional  pattern,  but  only  seeks  to 
bring  the  age  at  which  a  p>er8on  can  t>ecome 
a  Member  of  Congress  into  line  with  the 
new  age  at  which  young  people  may  become 
voters. 

I  believe  that  the  Amendment  which  we 
propose  today  wUl  have  a  great  Impact  on 
the  perception  of  and  participation  In  gov- 
ernment of  mUliooB  of  young  people  who 
now  constitute  that  half  of  the  nation  whose 
average  age  is  under  37  jrears  This  Amend- 
ment will  say  to  those  35  million  young  peo- 
ple who  received  the  franchise  under  the 
Twenty-SUth  Amendment  that  we  not  only 
want  them  to  participate  as  voters  In  our 
democracy,  but  we  also  want  them  to  aspire 
while  they  are  stUl  young  adults  to  be  Mem- 
bers of  the  Congress  of  the  United  States. 

The  proposed  Amendment  does  nothing  to 
alter  the  minimum  age  requirement  of  35 
years  required  by  Article  n.  Section  1  of  the 
Constitution  for  any  (>erson  to  l)e  eligible  for 
the  office  of  President  The  distinguished 
Chairman,  Senator  Bayh.  and  I  ixith  feel 
that  the  minimum  age  for  the  Presidency 
presents  separate  cotLslderatlons.  It  Is  our 
Judgment  that  the  citizens  of  America 
should  be  able  to  vote  on  the  minimum  ages 
required  for  Brfembers  of  Congress  without 
having  this  question  Joined  with  the  altera- 
tion of  a  Constitutional  prerequisite  for  the 
Presidency. 

I  would  like  to  turn  to  the  legislative  his- 
tory of  the  ages  of  35  and  30  as  these  are 
found  In  the  Conatltutlon.  and  then  discuss 
the  age  limits  In  the  50  states  as  well  as  In 
foreign  nations. 

LTGISLATTVX    HISTOtT    WHICH   FOB  MS   THE    BASTS 

or  THE  ormiMrNATioi*  to  trai  *ors  25  and 
10  AS  PBCBxqinsmn  fob  CLiciBii.rrr  to  the 

CONCBXSS 

The  seven  principal  contemporary  and  his- 
torical descriptions  of  the  Constitutional 
Convention — thoee  of  Elliot.  Farand,  Hunt. 
Preacott.  Story.  Tucker,  and  the  PederaUst 
Papen — reveal  little  of  the  underlying  rea- 
sons for  the  age  limits  prescribed  by  the 
Constitution  On  lufay  39.  1787,  it  was  de- 
cided that  Senators  should  be  of  a  definite 
minimum  age  On  June  13.  1787.  a  Motion  to 
Strike  that  Reaolutlon  failed  by  a  vote  of 
6  to  3  Massachusetts.  New  York,  Deleware, 
Maryland.  Virginia  and  South  Carolina  fa- 
vored an  age  limitation,  whUe  Connecticut, 
New  Jeraey  and  Pennsylvania  did  not.  North 
Carolina  and  Georgia  were  divided. 


On  June  33  a  motion  to  aet  the  age  of  35 

as  a  qualification  for  membership  in  the 
House  of  Representatives  carried  by  a  divided 
vote  of  7  to  3.  Connecticut,  New  Jersey.  Dela- 
ware. Maryland,  Virginia,  North  Carolltia  axul 
South  Carolina  favored  the  36-year  limita- 
tion whUe  Massachusetts,  Pennsylvania  and 
Georgia  were  against  it,  with  New  York 
divided. 

Prom  the  foregoing  legislative  history.  It 
is  very  clear  that  the  writers  of  the  Con- 
stitution had  no  overwhelming  consensus 
among  themselves  about  the  age  limitations 
of  25  and  30  which  finally  were  inserted  into 
the  Constitution.  At  no  time  during  the 
Constitutional  Convention  was  the  idea  ex- 
tensively considered  that  either  house  ought 
to  have  no  age  limit  Nor  is  there  any  in- 
dication that  the  delegates  to  the  Constitu- 
tional Convention  ever  debated  the  question 
whether  the  House  and  the  Senate  should 
have  the  same  or  different  age  limits.  Sim- 
ilarly, the  States,  in  their  ratification  pro- 
ceedings, gave  the  matter  scant  If  any  at- 
tention. 

A  good  deal  of  speculation  has  occurred 
In  the  course  of  American  history  with  re- 
gard to  the  rationale  and  motivation  for  the 
establishment  of  the  minimum  ages  in  the 
Constitution.  Since  all  of  the  pre-1789  State 
constitutions  followed  the  British  practice 
of  lower  house  ellglblUty  at  age  21,  it  would 
appear  that  the  delegates  to  the  Constitu- 
tional Convention  felt  that  a  Member  of  the 
House  of  Representatives  needed  more  ma- 
turity than  the  members  of  a  State  legis- 
lature. 

The  entire  question  Is,  however,  filled  with 
ambiguities  and  la  not  susceptible  to  any 
generalisations. 

What  Is  very  clear  and  almost  amazing, 
however,  is  that  no  one  In  the  entire  his- 
tory of  the  Congress  has  previously  proposed 
an  amendment  to  follow  the  British  prac- 
tice of  lower  house  eligibility  for  member- 
ship in  the  Congress 

The  amendment  proposed  today  does  not 
question  the  good  Judgment  of  those  who 
wrote  the  Constitution  but  simply  states 
that,  in  view  of  the  fact  that  the  voting  age 
has  been  lowered  by  3  years,  an  identical  al- 
teration m  the  ages  of  eligibility  for  mem- 
ber»hii>  In  the  Congress  would  be  a  logical 
step.  I  believe  that  a  verv  strong  case  can 
be  made  that  the  Pounding  Pathera.  who 
measured  legislative  ellirlbllltv  In  Itttht  of 
voting  eligibility,  would  have  supported  this 
amendment  if  the  voting  age  In  1787  had 
been  18 

AGS   BEQCTBElfENTS   IN    STATE   UKIBUlTTTREa   AND 
IN  OTKER  NATIONS 

Although  the  ages  at  which  citizens  may 
become  members  of  State  legislatures  are 
steadily  decreasing  In  the  wake  of  the  en- 
actment of  the  18-year  old  vote,  only  seven 
States  require  members  of  the  State  senate 
to  be  30  years  old.  Onlv  five  States  require 
members  of  their  lower  house  to  have  at- 
tained the  ace  of  25.  The  mlnlmtim  ages, 
therefor©  which  now  exist  In  the  Pederal 
Constitution  are  among  the  very  highest  of 
all    of    the    50    SUtes 

If  the  age  limit  for  membershto  in  the 
U  S.  Hou«e  of  Representatives  were  decreased 
from  25  to  33  it  would  5till  be  higher  than 
the  current  are  limit  for  membership  In  the 
lower  house  of  42  State  legislatures. 

What  Is  Dropo(«ed.  therefore,  today  In  this 
constitutional  amendment  would,  if  enacted, 
still  leave  the  Con(rre««  of  the  United  States 
having  amoncr  the  highest.  If  not  the  high- 
est, age  ouallflcatlotw  of  any  legislature  In 
the  United  States 

The  Constitution  not  only  requires  eon- 
grensional  age  limits  which  are  substantially 
higher  than  those  of  the  States,  but  also  Im- 
poses a  minimum  age  which  excludes  young 
people  from  Congress  for  a  longer  period  than 
most  major  nations  throughout  the  world. 
Individuals   younger   than  33   may   serve   in 


December  19,  19  73 


CONGRHSSIONAL  RECORD  — HOUSE 


42W7 


any  legislative  capacity  In  Australia,  Canada, 
mainland  China.  Prance,  Oreat  Britain,  In- 
donesia, New  Zealand,  Switzerland,  Finland. 
Sweden,  and  Denmark — to  name  only  a  very 
small  fraction  of  similar  nations. 

There  has  been  In  the  20th  century  a 
worldwide  trend  toward  reduction  of  the  agee 
of  eligibility  for  election  to  the  national  as- 
semblies of  many  nations.  Research  has  in- 
dicated that  this  reduction  has  resulted  In 
large  part  from  the  worldwide  trend  of  reduc- 
ing  constitutional    age   limits   for    voting. 

SUPPORT     rOB     THX     PBOPOStO     COWS  1 1 1  U  1  lOW  At 
AMENDMENT 

I  have  spoken  with  many  Members  of 
Congress  concerning  this  proposed  Amend- 
ment. More  than  50  have  co-sponsored  the 
Resolution  in  the  House.  I  have  spoken  with 
the  Speaker  of  the  House  of  Representatives 
who  has  Indicated  no  difficulty  whatsoever 
and  Indeed  app>ears  to  approve  the  Resolu- 
tion. 

I  have  solicited  the  views  and  testimony 
of  many  groups  who  have  been  active  In  the 
reform  of  the  Congress  and  in  artlciUatlng 
policy.  Many  of  them  will  have  an  oppor- 
tunity to  submit  their  statements  and  testi- 
mony before  this  Committee  and  its  coun- 
terpart  in   the  House   Judiciary  Committee. 

This  Amendment  is  propoeed  to  young  peo- 
ple, for  young  people,  and  hopefully,  with 
young  people  However,  the  beneficiaries  will 
be  all  of  the  people. 

I  understand  well  the  dissatisfaction  which 
so  many  young  people  have  with  the  world 
that  their  elders  have  made.  I  understand 
the  voicelessness  and  hopelessness  which  so 
many  young  people  feel  when  they  realize 
their  powerlessness  to  change  the  decisions 
of  a  Congress  In  whose  deliberations  they  are 
not  eligible  to  participate 

I  do  not  want  young  people  to  withdraw 
from  the  world  which  they  behold.  I  want 
to  Invite  them  Into  the  process  of  stopping 
man's  Inhumanity  to  man  and  man's  destruc- 
tion of  his  own  environment.  I  want  to  give 
to  young  people  the  opportunity  to  exemplify 
In  their  own  lives  and  In  ttietr  ix>lltlcaj 
careers  man's  humanity  to  man  and  man's 
reverence  for  the  place  In  which  he  lives. 

I  want  to  say  to  young  people  of  this  coun- 
try that  they  can  be  Members  of  the  House 
at  the  age  of  23  and  of  the  U.S.  Senate  at 
the  age  of  27. 

I  want  to  remove  from  young  people  the 
temptation  to  resist  a  ptoUtlcal  career  on  the 
allegation  that  the  world  they  experience  has 
been  corrupted  and  that  If  they  enter  Into 
It  they  too  will  be  corrupted.  I  want  to  give 
to  these  young  Individuals  the  opportunity 
to  take  upon  their  shoulders  at  an  early  age 
the  responsibility  for  man  and  for  his  des- 
tiny. They  have  a  right  not  to  be  locked  out 
of  the  decisionmaking  of  the  Congress  of  the 
United  States  because  of  a  now  archaic  re- 
quirement that  they  must  have  attained  the 
age  of  25  or  30  before  they  can  be  seated  In 
this  distinguished  body. 

I  hope  that  this  Amendment,  wherein  Sen- 
ator Birch  Bayh  and  I  are  proposing  a  funda- 
mental alteration  In  the  Constitution  of  the 
United  States,  will  be  helpful  In  restoring 
to  the  young  people  of  this  country  their 
faith  in  otir  Institutions  and  their  desire  to 
utilize  their  talents  and  their  aspirations  at 
an  early  age  as  Members  of  the  Congress  of 
the  United  States 

Statement  or  Senatob  Bibck  Bath,  on 
Senate  Joint  RKSOLtmoN  5 
Today  we  are  beginning  hearings  on  a  pro- 
posed constitutional  amendment.  Senate 
Joint  Resolution  6.  which  I  first  Introduced 
In  1971  and  reintroduced  In  .Tanuary  nf  this 
year.  This  propo»uil  would  lower  the  age  of 
ellglbUity  for  service  Ir.  the  .Senate  and 
House  by  3  year'  the  same  reduction  as 
the  lowering  of  the  voting  a^-e  ratified  dur- 
ing the  last  CongresB   in   the   aeth   Amend- 


ment. In  the  10  years  I  have  served  as  chair- 
man of  the  Senate  Subcommittee  on  Con- 
stitutional Amendments,  I  have  seen  few 
proposals  supported  by  such  compelling  logic 
and  reason  as  this  one. 

Young  pei.ple  today  are  mature  and  well- 
educated  TTjey  have  earned  the  r.ght  to  serve 
In  our  legislative  bodies  by  their  partici- 
pation In  ai:  Hitp^i:'^  n;  t<xlay  6  society — 
from  paying  taxes  and  the  draft  to  respon- 
sible p>olltlca;  and  rommunlty  activity  And 
perhaps  rpoet  important,  they  have  some- 
thing construrtlvp  to  of?er  by  serving  In  the 
Congress — courage  and  ener^  creatlveness 
and  Idealism — attributes  always  in  short 
supply  anywhere  !n  our  society 

Despite  the  fundamenta;  recosnitlon  In 
our  Declaration  of  Independence  that  all 
men  are  created  equal,  we  know  that  our 
original  Constitution  was  not  quite  so  egali- 
tarian. Many  people  were  not  deemed  to  be 
citizens  Many  others  were  barred  from  vot- 
ing— or  from  holding  offirC' — for  reasons 
totally  unrelated  to  their  talents  and  abili- 
ties. Over  the  years  we  have,  of  course,  done 
much  to  remedy  thL'^  problem  Indeed,  the 
most  conunon  subject  of  constitutional 
amendments  ratified  since  the  Bill  of  Rights 
has  been  to  expand  the  democratic  process. 
The  14th  Amendment  made  ail  native-born 
persons  citizens  The  15th  Amendment  out- 
lawed racial  discrimination  in  voting  The 
19th  Amendment  granted  the  franchise  to 
women.  The  24th  Amendment  struck  down 
the  poll  tax.  And  Just  two  years  ago,  the 
26th  Amendment  reduced  the  voting  age  In 
all  elections  to  18. 

Now  is  the  appropriate  time  to  turn  to 
the  question  of  eligibility  for  service  In  the 
Congress.  By  enfranchising  11  miUlon 
younger  voters,  we  have  shown  them  that 
we  have  confidence  In  them.  We  have  said 
that  they  deserve  to  participate  fully  In  the 
political  process.  But  one  vitally  Important 
part  of  that  process  remains  constitutlonaUy 
out  of  their  grasp;  none  of  them  can 
become  a  Congressman  until  age  2.5  nor  a 
Senator  tintll  age  30.  We  tapped  a  va-^t  reser- 
voir of  talent  and  Initiative,  industry  and 
Imagination,  by  lowering  the  voting  age.  But 
unless  Pederal  elective  offices  themselves  are 
opened  up  to  younger  people,  I  feel  we  will 
not  gain  the  full  benefit  we  can  realize  from 
their  talents. 

Of  course,  relatively  few  people  actually 
have  the  honor  of  serving  In  the  Congress. 
And  I  suspect  that  relatively  few  younger  peo- 
ple would  be  elected  because  of  this  amend- 
ment But  that  Is  beside  the  point.  Younger 
citizen^  ought  to  have  the  constitutional 
right  to  try  for  Federal  office 

This  proposal  lowers  but  does  not  totally 
eliminate  the  constitutional  age  barrier.  A 
cogent  argument  can  be  made  for  the  prop- 
osition that  we  should  eliminate  all  such 
barriers:  If  the  voters  feel  that  a  15 -year-old 
Is  the  candidate  best  qualified  to  represent 
them,  they  should  be  Jdlowed  to  select  him 
to  serve.  But  I  am  not  now  prepared  to  say 
that  the  Pounding  Fathers  wer<>  wrong  when 
they  established  a  minimum  Kpe  for  Members 
of  Congress  higher  than  the  minimum  age 
of  thoee  entitled  to  vote  for  those  same 
Members.  All  age  limits  l)e  they  for  voting 
or  for  holding  office — are  arbitrary.  But  there 
Is  logic  and  reason  in  requiring  some  addi- 
tional maturity  of  those  we  elect  to  the 
Congress 

For  these  reasons  my  proF>osa!  lowers  the 
existing  age  limitations — SO  for  the  Senate 
and  35  for  the  House  of  Representatives — by 
3  years.  Just  as  we  lowered  the  generally 
prevailing  voting  age  by  3  years  In  ratifying 
the  26th  Amendment. 

This  proposal — like  the  26th  Amendment — 
Is  fully  Justified  by  physical  and  Intellectual 
changes  since  the  Constitution  was  first  writ- 
ten. For  example,  physical  m»tv;r:ty  now 
comes  much  earlier   Less  than  a  century  ago. 


men  tended  to  reach  their  full  height  at  age 
(26:  now  most  American  males  are  fully 
grown  at  18  or  19,  The  distinguished  anthro- 
pologist Margaret  Mead,  testified  before  my 
subcommittee  that  the  age  of  maturity  hae 
declined  by  3  years  over  the  past  century. 
Young  people  are  much  better  educat,ed  to- 
day: In  1920  less  than  20  percent  KTaduated 
from  high  schoc'. ,  now  almost  80  perce:.t 
graduate — and  more  than  half  of  these  go 
on  to  at  least  a  year  of  college  The  simple 
fact  Is  that  our  younger  citizens  are  mentally 
and  emotionally  capable  of  fu'.;  participation 
In  all  aspects  of  our  democratic  form  of  gov- 
ernirent. 

We  cannot  afford  the  luxury  of  barring 
highly  qualified  people  from  serving  In  Con- 
gress "The  Interesting  fact  1b  that  despite 
the  bar  at  least  five  men  have  been  elected 
to  the  Senate  'oefore  their  30th  bL'thday  Just 
a  year  ago  one  of  our  distinguished  cor.e&g-.:es 
Senator  Bider.  wa.s  elected  even  •.h-ue.h  ,'-.* 
had  yet  tc  attain  the  minimum  age  of  30. 
Henry  Clay  was  actually  5  months  short  of 
use  30  when  he  took  his  seat  In  the  Senate — 
apparently  in  violation  of  the  constitutional 
limitation  It  Is  likely  that  even  more  Mem- 
bers of  the  House  were  elected  at  age  25  or 
below  The  youngest  ever  to  serve  In  the 
House  was  elected  at  the  age  of  22  Surely 
these  figures  Indicate  that  the  existing  age 
limits  are  too  high. 

Moreover,  the  great  majority  of  our  States 
and  a  number  of  the  major  countries  of  the 
world  have  taken  steps  to  lower  the  age  of 
eligibility  for  legislative  service,  and  this 
trend  has  greatly  accelerated  in  the  20th 
century.  If  the  membership  age  for  the  House 
wrere  decreased  by  3  years,  as  we  are  today 
proposing,  there  would  still  be  18  States  In 
which  even  younger  citizens  could  serve  In 
either  House  of  the  legislature,  and  42  States 
In  which  younger  citizens  would  be  eligible 
to  serve  In  the  lower  House.  Individuals  be- 
low the  age  of  22  may  serve  In  the  legislatures 
of  many  of  the  leading  nations  of  the  world. 
Including,  for  example,  Australia.  Canada, 
the  People's  Republic  of  China.  Oreat  Bri- 
tain. Indonesia,  New  Zealand,  Switzerland. 
Costa  Rica.  Finland,  Sweden,  and  Denmark. 

The  26th  Amendment  was  ratified  In  Just 
100  days  after  It  was  sent  to  the  States  by 
the  Congress.  I  believe  that  the  Incredible 
speed  of  this  ratification  and  the  enthusiasm 
with  which  the  proposed  amendment  was  met 
In  Congress  and  In  the  States  demonstrates 
the  trust  and  confidence  Americans  across 
the  land  have  In  our  younger  clUzens. 

Congressman  Drlnan  has  Introduced  an 
identical  proposal  In  the  House  to  lower  the 
eligibility  age  for  service  In  Congress  and 
I  am  hopeful  that  this  legislation  will  be  able 
to  receive  consideration  In  lx)th  Houses  of 
Congress  during  the  2nd  Session  of  the  93d 
Congress. 

CONTINUED     SOVIET     REPRESSION 
OF  VALERY  AND  GALISA  P.'LNOV 

(Mr.  KOCH  asked  :\nd  was  given  per- 
mission to  extend  his  remarks  at  this 
point  In  the  Record  and  to  Include  ex- 
traneous niatter  > 

Mr.  KOCH  Mr  Speaker,  several 
months  ago  I  reported  to  this  Chamber 
a  particularly  tracic  instance  of  the 
cruelty  suffered  by  Soviet  Jews  I  spoke  of 
the  case  of  VaJen'-  and  Galina  Panov, 
brilliant  Rus-sian  ballet  dancers  who  were 
denied  pernil5;sion  lo  emigrate  to  Israel. 
The  Par.ovs  were  merribers  of  the  pres- 
tigious Kirov  Ballet  .Vft^r  applying  for 
emlgraUon  privileges,  they  were  dis- 
missed from  the  ballet  85  "traitors  "  Mr. 
Panov  has  since  beer,  refu.'^d  permission 
to  dance  anjw.here  and  denied  a  place  to 
practice  Last  month  he  began  a  hunger 
.'Strike  that  lasted  lor  20  days. 


42648 


CONGRESSIONAL  RECORD— HOUSE 


Since  I  spoke  about  the  Panovs.  their 
case  has  taken  an  even  more  brutal  turn. 
Valery  Panov  has  been  granted  permis- 
sion to  leave  for  Israel,  but  only  If  Galina 
remains  in  Russia.  He  has  refused  and  Is 
planning  another  fast  unless  he  and  his 
wife  are  allowed  to  leave  together.  Mr. 
Speaker.  I  have  difficulty  expressing  the 
cUsgust  I  feel  toward  the  cynicism  re- 
flected in  this  tactic  of  the  Soviet  Gov- 
ernment. Valery  Panov  has  been  put  in 
the  position  of  having  to  choose  between 
his  wife  and  his  life  s  work  as  a  dancer 
How  reprehensible  of  Soviet  offlcials  to 
force  a  man  into  such  a  dilemma.  The 
Soviet  Union  appears  to  regrard  no  means 
as  too  severe  to  be  used  against  its  Jewish 
citizens. 

The  Kirov  Ballet  Is  scheduled  to  make 
a  nationwide  tour  of  the  United  States 
in  1974.  Given  the  repression  incurred  by 
the  Panovs.  It  would  be  appalling  for  the 
Kirov  to  receive  the  acclaim  of  American 
audiences.  If  the  Panovs  are  not  allowed 
to  emigrate.  American  sponsors  of  the 
tour  should  cancel  the  Kirov's  appear- 
ances. If  they  refuse,  the  American  public 
should  resolve  to  boycott  the  ballet's 
performances.  The  first  responsibility  of 
the  artist  is  to  insure  the  creative  free- 
dom of  other  artists.  No  degree  of  artistic 
excellence  shown  by  the  Kirov  can  com- 
pensate for  its  subversion  of  this  princi- 
ple. We  must  not  allow  international  cul- 
tural cooperation  to  represent  compUclty 
with  artistic  oppression. 


MAYOR-ELECT  BE.\ME  OP  NEW 
YORK  CITY  REAPPOINTS  JOHN  E 
ZUCCOTTI 

'Mr.  BARRETT  asked  and  was  given 
permission  to  extend  his  remarks  at  this 
point  in  the  Record  and  to  Include  ex- 
traneous matter.) 

Mr  BARRETT.  Mr  Speaker,  yesterday 
mayor-elect  of  New  York  City.  Abraham 
D  Beame,  reappointed  one  of  the  most 
experienced  and  knowledgeable  public  of- 
flcials in  the  area  of  housing  and  urban 
planning  as  chairman  of  the  New  York 
City  Planning  Commission. 

When  Mayor  Lindsay  appointed  John 
Zuccottl  to  be  chairman  of  the  city  plan- 
ning commission.  I  rose  on  this  House 
floor  to  commend  Mayor  Lindsay  for  the 
excellent  appointment  and  today  I  com- 
mend Mayor-elect  Beame  for  keeping 
John  Zuccottl  In  one  of  the  most  Influen- 
tial and  important  city  positions  in  the 
New  York  City  government. 

John  Zuccottl  served  as  special  coun- 
sel to  my  Housing  Subcommittee  In  1970- 
71.  and  I  know  from  firsthand  experi- 
ence of  John's  immense  abilities  and  his 
expertise  In  the  field  of  housing  and  ur- 
ban planning  So  I  am  pleased.  Mr. 
Speaker,  that  John  Zuccottl  can  continue 
his  exceUent  work  for  the  citizens  of  New 
York  City,  and  for  that  matter,  for  the 
citizens  of  our  country,  since  I  hope  to 
continue  to  avail  myself  of  his  counsel 
and  advice. 

An  article  from  the  New  York  Times  of 
December  19.  1973.  follows: 

Crrr  8    Puannkk    a    Bcame-Ttpi    or    Hah 

JoBM  Erctifi  Zuccom 
(By  JoMph  P.  Pried) 

To  OMjct  New  Yortter*.  city  pl*nnlng  ijid 
toning     mre     lntrlc*t«.     abetruae     lubj^cta 


siirouded  In  such  ieemlngly  bloodies*  exotic* 
as  floor-area  ratioe"  and  -Joint  interest  dis- 
tricts." 

but  to  John  Eugene  Zuccottl,  »  son  of 
Greenwich  VUlage  and  a  disciple  of  the  ur- 
ban planning  critic  Jane  Jacobs,  planning 
and  zoning  are  people— and  the  people  of 
New  York  have  every  right  to  expect  their 
public  offlcials  to  translate  the  planning  and 
zoning  processes  Into  concepts  the  layman 
can  readUy  gra^. 

As  chairman  of  the  City  Planning  Com- 
mission for  the  last  10  months,  Mr.  Zuccottl 
has  endeavored  to  do  Just  this — to  opien  to 
public  understanding  and  view  the  complex 
procedures  under  which  the  "tone"  and 
■feel"  of  the  city's  neighborhoods  are  shaped 

And  now.  in  the  oomlng  Beame  adminis- 
tration, Mr  Zuccottl  wUl  have  the  oppor- 
tunity to  continue  his  approach.  For  the 
man  who  was  John  Undsay's  choice  to 
prealde  over  the  Planning  c3ommlsslon  is 
also  Mayor-elect  Abraham  D.  Beame's  choice, 
a  fact  Mr.  Beame  made  known  when  he  an- 
nounced that  he  was  retaining  Mr  Zuccottl 
as  the  city's  top  planning  official. 

BXAMB-TTPK    MAN 

Actually,  Mr.  Beame's  decision  was  not  a 
complete  siirprtse.  Aside  from  the  fact  that 
Mr  Zuccottl  has  made  little  secret  of  his  de- 
sire to  remain  In  the  poet,  the  planning  of- 
ficial U  in  many  ways  Mr.  Beame's  type  of 
man— a  New  Yorker  with  strong  ethnic  ties 
and  a  detailed  sense  of  what  makes  the  city 
and  its  people  tick. 

Despite  a  background  of  college  days  at 
Princeton  and  a  law  degree  from  Yale,  the 
36-year-old  Mr  ZucoottI  leaves  no  ioubt 
that  he  Is  the  son  of  a  cloee-knlt.  New  York 
Italian  famUy. 

Weekends,  he  notes,  are  often  spent  In  an 
"extended  famUy  kind  of  situation"— mean- 
ing that  he  and  his  wife  and  two  small  chil- 
dren head  from  their  Brooklyn  brownstone 
to  Manhattan  to  spend  an  afternoon  In  the 
Greenwich  VUlage  buUdlng  where  Mr  Zuc- 
cottl's  parents,  an  aunt  and  several  cousins 
are  scattered  In  various  apartments. 

The  building,  on  Waverly  Place.  Is  not  far 
from  Perry  and  Pourth  Streets,  where  Mr 
Zuccottl  grew  up  One  of  his  early  Jobs  was 
*a  a  hat-checker  at  Kl  Morocco,  where  his 
father.   Angelo.   Is   today   the   maitre  d' 

The  younger  Zuccottl  attended  St.  Jo- 
seph's Academy  In  the  Village  and  then  the 
LaSalle  Military  Academy  in  OakdaJe.  L-I . 
before  graduating  from  Princeton  as  a  history 
major  In  1959  and  receiving  his  Tale  law 
degree  In  1963 

ONCX  AXDZ  TO  jAvrrs 

Even  before  finishing  his  law  studies  at 
Yale.  Mr.  Zuccotu  had  a  taste  of  government 
service  as  an  Intern  in  Senator  Jacob  K. 
Javlts'  Office  In  1962.  where  he  worked  under 
Richard  R.  Aurello.  then  the  Senator's  top 
aide  and  later  Deputy  Mayor  In  the  Lindsay 
administration. 

Also  on  the  Federal  level.  Mr.  Zuccottl 
served  as  a  special  assistant  in  the  Depart- 
ment of  Housing  and  Urban  Development, 
helping  in  1966  to  draft  legislation  for  the 
Model  Cities  program. 

In  New  York  Mr  Zuccottl  engaged  in  pri- 
vate law  practice  and  one  of  his  partners  was 
Peter  Tufo.  who  had  been  the  Undaay  ad- 
mlnlstrauon's  leglslaUve  aide  In  Washington 

When  Mr  Zuccottl  was  first  appointed  as 
a  part-time  member  of  the  Planning  Com- 
mission in  1971.  City  Councilman  Eldon  R 
Cllngan  charged  that  there  would  be  a  con- 
filct  of  interest  between  Mr.  ZuccotU's  part- 
time  planning  port  and  his  contlnuaUon  of 
Ms  law  practice    Mr    Zuocotu  denied  this 

In  an  interview  yesterday,  the  bespectacled 
planner,  who  often  exudes  an  air  of  soft- 
spoken  though  tfulne*.  made  clear  that  he 
would  oonttnue  efforts  to  bring  the  planning 
prooeaa  clowr  to  the  people  through  such 
methods  as  workshop*  on  zoning  and  dewl- 
opment  and  by  holding  Planning  Comnai^ion 


December  19,  1973 


meetings    in    the    varlotis    boroughs    rather 
than  solely  at  City  Hall. 

Mr.  Zuccotu  and  his  wlf»— the  former 
Stiaan  Sessions,  who  is  writing  her  doctoral 
dissertation  on  the  Italian  entry  into  World 
War  I— live  with  their  daughter.  Glanna.  6. 
and  their  son.  Andrew,  4.  on  Second  Place 
In  CarroU  Gardens— the  kind  of  neighbor- 
hood that  Ms.  Zuccotu  beUeves  planners 
should  preserve. 


THE  BLACKMAIL  OP  AN  OIL 

EMBARGO 

(Mr.   PEPPER  asked   and   was   given 

permission   to   extend    hla   remarks   at 

this  point  in  the  Record  and  to  include 

extraneous  matter.) 

Mr.  PEPPER.  Mr.  Speaker,  Arthur  H. 
Courshon,   chairman   of   the   board   of 
Washington    Federal    Savings    &    Loan 
Association  of  Miami  Beach,  Fla.,  and 
an  outstanding  clUzen  of  Florfda  put  In 
the  New  York  Times  of  Sunday,  Decem- 
ber 2,  1973.  and  the  Washington  Post  of 
December  3,  1973,  a  call  to  cooperation 
against  the  oil  embargo  blackmail  of  the 
eight  Arab  nations  who  Initiated  such 
arrogant  embargo  at  the  Kuwait  Confer- 
ence October   17,   1973.  Mr.   Courshon's 
editorial  entitled  "Has  the  Free  World 
Lost  Control  of  Its  Destiny  to  the  Black- 
mall  of  an  Oil  Embargo?  We  Can  Regain 
Control    Through    Collective    Counter- 
Embargo,"  appearing  In  the  two  papers 
and  at  the  times  mentioned,  calls  upon 
Canada.  Western  Europe,  Japan,  and  the 
United  States  to  act  In  concert  in  retali- 
ation against  this  Arab  blackmail  em- 
bargo by  denying  to  such  Arab  nations 
the  Industrial  products,  food,  and  medi- 
cines of  such  free  nations  suffering  by 
such  embargo,  rather  than  bow  to  hu- 
miliation  and   dishonor   to   these   Arab 
nations'  demands. 

Mr.  Courshon  Is  right.  We  should  teach 
these  nations  who  have  violated  all  the 
principles  of  decency  in  international 
trade  that  they  cannot  attempt  to  black - 
maU  the  nations  of  the  free  world  who 
purchase  their  products  Into  becoming 
tools  of  the  will  of  such  nations.  I  think 
Congress  should  pass  a  sense  of  Con- 
gress resolution  calling  upon  our  Gov- 
ernment and  such  free  nations  to  ent^r 
Into  such  a  concert  against  such  Arab 
nations  and  effectively  deny  to  them  the 
Industrial  products  and  the  food  supplies 
and  medicines  such  Arab  nations  must 
have.  I  am  introducing  such  a  sense  of 
Congress  resolution.  I  conunend  Mr. 
Courshon's  challenging  proposal  to  my 
colleagues  and  to  my  fellow  countrymen 
as  the  most  effective  way  by  which  we 
and  other  such  free  nations  can  preserve 
our  honor  and  at  the  same  time  protect 
our  interest. 

Mr   Speaker,  I  Include  the  article  by 
Mr.  Courshon  to  which  I  have  referred 
following  my  remarks  In  the  Ricord: 
Has  the   P»xi   Wouj)  Lost  Conteol  of   Its 

DiSTTNT    TO    THE   BLACKltAn.  OF  AN   On,  KM- 
BA«0O? 

WX   CAN    aXGAXN   CONTS.   I     THROUGH    COLXrCTIV* 
COnNTT«-lMBA*«J<:) 

A  group  Of  small  Arab  naUons.  who  throxi^jh 
accidents  of  history  and  geology  cijr.trol  a 
major  part  of  the  wor'.d  s  oU  reservee  are 
denying  acceas  to  ihU  resource  vitai  to  the 
economic  and  military  •eourlty  r,f  t.atlon*  of 
the  free  world 


December  19,  1973 


CONGRESSIONAL  RECORD  — HOUSE 


42f>19 


The  Arabs  accomplished  through  coUec- 
tJve  aotlon  what  they  could  not  have  accom- 
plished singly.  Without  firing  a  shot,  they 
now  threaten  the  economies  and  the  free- 
doms of  England,  countries  of  Western 
Europe,  Japan,  and  to  an  extent,  the  United 
States. 

Profiting  from  their  lesson  In  collective 
action,  they  could  realize  further  mutual 
objectives  were  they  so  Inclined.  Tyranny 
always  begins  with  a  first  step.  What's  next? 
Disruption  of  free  world  productive  and  eco- 
nomic stability;  repeated  denials  for  what- 
ever purpose  of  access  to  basic  world  energy 
sources? 

Their  lesson  should  be  our  lesson.  I 
strongly  urge  that  we,  as  Americans,  assume 
the  lead  in  creating  an  effective,  collective 
counter-embargo  and  thus  show  the  Arabs 
they  are  swinging  a  two-edged  sword. 

The  Arab  nations  cannot  survive  without 
food.  Industrial  products,  transportation 
equipment,  medicine.  Industrial  services  and 
other  commodities  available  to  them  only 
from  the  free  world. 

The  United  States  hlstorlcaUy  has  taken 
the  lead  In  protecting  the  Integrity'  of  sov- 
ereign nations  against  blackmail  by  mili- 
tary force.  We  should  now  take  the  lead 
against  oil  blackmail. 

No  one  nation  can  succeed  with  such  a 
course  through  unUateral  action.  The  United 
States  Is  not  the  only  source.  In  many  com- 
modities not  even  the  major  source,  of  Arab 
supply.  But  the  free  world — England,  Can- 
ada, Australia,  Western  Europe,  Japan, 
LAtln  America  and  others — could  succeed 
quickly  through  mutual  solidarity  In  a  col- 
lective counter-embargo. 

Would  a  collective  counter-embargo  work? 
Examine  the  Arabs'  alternatives  as  they  push 
for  their  own  objectives  contrary  to  the 
peace  and  order  of  the  rest  of  us.  Without 
free  world  goods,  they  could  look  only  to  the 
Communist  world  for  food  and  Industrial 
products.  Those  nations,  principally  the 
Soviet  Union  and  the  People's  Republic  of 
China,  produce  only  marginally  for  their  own 
people.  Moreover,  the  Arab  countries  have 
shown  clearly  that  while  toey  may  accept 
Communist  arms  they  fear  and  reject  both 
dependency  on  and  domination  by  the  Com- 
munist powers. 

The  possible  costs  of  Inaction  are  high  and 
are  becoming  more  visible  dally.  The  cosr«  to 
the  oil  embargo  victims  could  Include  eco- 
nomic disruption,  weakened  currencies,  un- 
employment, severely  lowered  standards  of 
living,  reduced  productivity,  limited  sources 
of  fuel  for  defense  purp<'S*>fi  and  further 
alienation  of  friendly  nation.^  a.s  each  moves 
for  Its  own  rather  than  for  mutual  tnterwfits. 
Collect!^  action  now  ran  prevent  these 
problems.  Through  collective  counter-em- 
bargo the  nations  of  the  fre^e  world  can  re- 
gain control  over  their  own   destinies 

Of  all  the  free  nations,  the  U3  mav  t)e 
the  most  Independent  of  outside  energy 
sources  and.  In  time,  probably  could  survive 
alone  If  we  had  to  But  as  a  world  leader 
and  as  a  bulwark  of  mternatlonai  moral 
force,  we  should  take  the  initiative  toward 
collective  action  against  coercion  and  black- 
maU. 

What's  required?  Only  the  wUl.  the  capac- 
ity to  aot  In  unison  with  other  free  nations 
whose  prxxlucts  keep  the  Arab  people  alive. 
The  Arabs  cant  eat  or  drink  oil  ...  or 
money!  If  suddenly  no  ships,  no  planes,  no 
wheat,  no  spare  parts,  no  Industrial  products 
reached  the  8  nations  that  created  the  oil 
embargo,  we  would  see  an  Immediate  change 
in  attitude  on  their  part 

We  do  not  have  to  wait  for  political  leaders 
to  take  the  Initiative  We  can  write  our  con- 
gressmen, our  senators,  our  President,  We 
can  encourage  our  friends,  business  asso- 
ciates, 8up>pller8  and  customers  throughout 
the  free  world  to  Insist  that  their  leaders  set 
aside  fruitless  rivalries  and  unite  In  this 
common,  critical  purpoae 


We  can  urge  that  the  U.N..  though  we 
recognize  the  dlfScultles  of  resolution  In  that 
body,  certify  oil  and  other  major  resources 
aa^world  treasures  open  to  the  world  market- 
place In  fair  trade;  resources  not  to  be  used 
to  wage  a  war  that.  whUe  absent  of  buUets, 
may  be  as  catastrophic  as  arms  to  peace  and 
tranquility. 

Rather  than  supinely  retreat  and  divided 
suffer  losses  we  previously  fought  wars  and 
spent  fortunes  to  prevent,  let  us  Join 
together  and  fight  fire  with  fire.  coUectlve 
embargo  with  coUectlve  embargo. 

On  October  17,  1973  at  Kuwait  eight  na- 
tions created  a  Joint  poUcy  aimed  at  bend- 
ing the  free  world  to  their  will.  They  were 
Saudi  Arabia.  Libya,  Algeria,  Kuwait,  Abou 
Duran,  Iraq,  Sudan,  Yemen. 

Against  that  line  up,  the  free  world 
through  collective  counter -embargo  could 
quickly  regain  control  of  Its  destiny,  deal 
fairly  with  everyone  and  protect  our  mutual 
national  interests.  With  courage  and  a  strong 
wUl,  it  can  be  done. 


MILDRED  PEPPER  PALM 
PLANTING  DAY 

(Mr.  PEPPER  asked  and  was  given 
permission  to  extend  his  remarks  at  this 
potot  in  the  Record  and  to  Include  ex- 
traneous matter.) 

Mr.  PEPPER.  Mr.  Speaker,  all  who 
have  visited  Miami  will  remember  that 
our  palms  are  one  of  our  most  outstand- 
ing symbols  of  beauty  Very  much  to 
the  concern  of  our  people  who  love  our 
palms  and  appreciate  the  beauty  they 
contribute  to  the  Greater  Miami  area. 
as  to  many  other  parts  of  Florida,  a  dis- 
ease which  is  merely  called  lethal  yellow- 
ing, the  nature  of  or  the  remedy  for 
which  we  have  not  yet  determined,  has 
caused  us  to  lose  thousands  of  our  lovely 
palms.  In  order  to  replace  these  fc>eau"- 
tlful  palm.s.  my  wife,  MUdred,  one  of  the 
vice  chairmen  of  the  Miami  Ecology 
and  Beautificatlon  Committee  headed  by 
the  Honorable  Al  Pallot  who  has  done 
so  much  for  the  beautificaUon  of  the 
area,  at  a  dinner  meeting  of  the  com- 
mlttw  sugge.sted  that  the  city  of  Miami 
and  the  citizens  start  replanting  new 
palms  to  replace  those  being  lost  bv  this 
yellowing  disease  Mrs  Rose  Gordon,  a 
distinguished  member  of  the  Miami  City 
Commi,s,sion,  recommended  to  the  Hon- 
orable Maurice  Ferre,  the  distinguished 
mayor  of  Miami  and  members  of  the 
commission,  that  the  City  Commission 
adopt  Mrs  Pepper's  recommendation  to 
have  a  palm  planting  day.  The  Honor- 
able Mayor  Maurice  Ferre  thereupon 
Issued  a  proclamation  designating  De- 
cember 17  as  Mildred  Pepper  Palm 
Planting  Day.  Mr.  Speaker,  the  procla- 
mation of  Mayor  Ferre  Hpi>ears  in  the 
Record  following  m^'  remarks : 

PBOCUiMATION,    ClTT    OF    MUMI,    Pljk, 

Whereas,  Mildred  Pepper  wife  of  our  dis- 
tinguished CongTessn-.ah,  Claude  Pepper, 
selflessly  has  lent  her  time  and  talent  to 
improving  the  community  through  innumer- 
able civic  Interests  and  charitable  acts;  and 

Whereas,  Mildred  Pepper  has  been  a  de- 
vote<l  patron  of  Miami's  natural  beauty, 
seeicing  to  :mprove  and  pre?«rve  this  city's 
many  aesthetic  attributes,  and 

Wherea-!  Mildred  Pepper  has  once  more 
demonstrated  her  devotion  to  the  City  of 
Miami  and  the  pursuit  of  beauty  by  suggest- 
ing a  maasive  planting  in  order  to  preserve 
this  area's  famous  ooconut  p>alms:   and 

Whereas,    it    is    all    togetber    fitting    and 


proper  that  this  renown  civic  leader  be  hon- 
ored for  proposing  such  a  community-wide 
program; 

Now,  therefore,  I.  Maurice  A.  Ferre,  M.ivor 
of  the  City  of  Miami,  Florida,  do  herebv  de- 
clare Monday,  December  17,  1973  as  MUdred 
Pepper   Palm   Planting  Day. 

In  observance  therefore  of,  I  urge  all  the 
residents  of  Miami  to  Join  with  me  In  honor- 
ing Mildred  Pepper  for  her  manv  contribu- 
tions to  this  area  and  I  call  upon  the  people 
of  this  city  to  contribute  to  the  beauty  of 
Miami  by  planting  the  coconut  sprouts  which 
are  being  distributed  today,  thus  reaffirming 
the  growth  of  one  of  Miami's  most  famous 
and  l)eautlful  symbols  and  serving  as  a  trib- 
ute to  one  of  Miami's  most  outstanding  and 
most  gracious  women. 

The  honorable  Miami-Metro  Depart- 
ment of  Publicity  and  Tourism  issued  a 
release  describing  the  significance  of  this 
palm  planting  day  and  armoxmced  that 
the  city  of  Miami  was  to  make  300  coco- 
nut palm  seedlings  available  to  residents 
who  would  like  to  plant  new  palms  at  the 
ceremony.  It  was  announced  that  repre- 
sentatives of  the  Miami  Park  Service 
would  also  exhibit  to  those  present  how 
to  plant  a  palm  so  that  it  would  grow 
and  flourish.  These  notices  appear  fol- 
lowing my  remarks : 

CocoNtJT  Palm  Trees 

WhUe  many  other  cities  simply  remove 
their  dlsease-rldden  trees,  the  City  of  Miami 
is  doing  something  to  replenish  lU  dimin- 
ishing coconut  palm  trees. 

The  city  wUl  distribute  more  than  300 
coconut  palm  seedlings  Dec.  17  to  Interested 
residents  desiring  to  replace  those  palm 
trees  that  were  victims  of  lethal  yeUowlng. 

Anyone  who  wants  to  get  In  on  this  city 
give-away,  which  is  being  sponsored  by  the 
City  of  Miami  Parks  and  Recreation  Depart- 
ment and  the  City  of  Miami  Committee  on 
Ecology  and  Beautificatlon.  can  go  to  bay- 
front  Park,  north  of  the  library,  at  10  am. 
on  Dec.  17. 

The  event  Is  officially  known  as  "MUdred 
Pepper  Palm  Planting  Day."  in  honor  of  the 
wife  of  Congressman  Claude  Pepper. 

City  officials.  Mrs.  Pepper  and  representa- 
tives from  the  city  Committee  on  Ecology 
and  Beautificatlon  wui  take  gold  shovels  in 
hand  and  plant  20  to  25  coconut  palms  Just 
north  of  the  library  near  the  sidewalk 

"We'll  be  planting  coconut  paJm  trees 
around  the  walk  where  we  have  lost  them  " 
said  Al  Howard  director  of  the  Miami  Parks 
and   Recreation  Department 

Taking  part  m  the  ceremony  will  be  Mayor 
Maurice  A  Perre.  Vice  Mayor  Manolo  Reboso, 
Commis.<;iorier  Theodore  Gibson,  Commis- 
sioner Rose  Oordor.  Commissioner  J.  L 
Plummer  Jr  ,  Al  Howard,  Mrs.  Pepper,  and 
E  Albert  Pa'lot  chairman  of  the  Committee 
on  Ecology  and  Beautificatlon. 

In  addition  Robert  Schuyt,  a  City  of  Mi- 
am:  parks  co-ordinator,  wUl  give  a  demon- 
stration on  the  planting  and  caring  of  coco- 
nut palms. 

In  announcing  plans  for  "Mildred  Pepper 
Palm  Planting  Day"  Miami  Mayor  Ferre 
said.  -We  must  replenish  the  beautiful  palm 
trees  that  are  so  symbolic  of  Miami" 

According  to  a  spHjkesman  for  the  Florida 
Department  of  Agriculture,  approximately 
22,000  coconut  palms  have  be«n  lost  In  the 
past  two  years  be<-au.ie  of  le'Oia:  yeUowlng 
disease. 

The  disease  is  first  characterized  by  a  mas- 
sive falling  of  coconuts  within  a  short  period. 
Next,  flower  spikes  in  the  heart  of  the  bud 
wut  and  tu.'n  brown  Within  three  montlis 
the  lower  layers  of  fronds  start  yellowing. 
Gradually  the  yellow  pallor  encompasses  the 
whole  tree  and  causes  shedding  Flnaily  only 
a  trunk  is  left  and  the  tree  mutt  be  removed 


CONGRESSIONAL  RECOR  D  —  I  iOUSE 


December  19,  1978 


^UiirnMG  AKD  Caunc  or  Coconttt  Pau« 
Spmoura 

Motat\m  »nd  light  ar«  the  neceaaary  In- 
greUlente  for  growing  coconut  palms  In  South 
Plortda's  temperate  cUxnate,  acconlLng  to 
Robert  Schuyte.  the  City  of  Miami  parka 
coonUaator  who  will  demoi^trate  the  plant- 
ing and  caring  of  coconut  palm  sprouta  at 
10  ajn.  Monday  (Dec.  17)  In  Bayfront  Park, 
Juat  north  of  the  Ubrary. 

Schuyte  wlU  appear  during  the  tree -plant- 
ing ceremony  for  •Mildred  Pepper  Palm 
PlaaUng  Day.'  which  wlU  Include  planting 
of  20  to  25  coconut  palma  in  Bayfront  Park 
and  distribution  of  300  free  coconut  palm 
sprouta  to  those  persona  present. 

Schuyte  said  the  plinUng  procedure  for 
coconut   palm   sprouts   la   relatively   simple. 

"It  doesn't  matter  if  it  la  planted  at  an 
angle."  Schuyte  said.  "But  make  sure  It  gets 
light.  The  coconut  sprout  ahould  be  half 
burled  under  the  soil  ao  that  it  can  stay 
moist  and  stUl  have  light  " 

The  massive  palm  tree  planting  la  being 
sponsored  by  the  City  of  Miami  Parka  and 
Recreation  Department  and  the  Committee 
on  Ecology  and  BeautUlcatlon  Mildred  (Mrs. 
Claude  >  Pepper  Is  being  honored  because  abe 
originally  siiggested  the  Idea  of  a  maaolve 
coconut  palm  planOng  at  an  installation 
dinner  of  the  Committee  on  Ecology  and 
Beautlflcatlon. 

Mayor  Maurice  A.  Perre,  Vice  Mayor  Man- 
olo  Reboeo  and  Commissioners  Theodore  R. 
CMbaon.  Roae  Gordon  and  J.  L.  Plummer  Jr 
will  participate  In  the  ceremony.  Also  par- 
ticipating wUl  be  Mrs.  Pepper.  Albert  H. 
Howard,  director  of  the  Department  of  Parks 
and  Recreation;  and  E.  Albert  PaUot.  chair- 
man of  the  Committee  on  Ecology  and  Beau- 
tlfl  cation. 

Lew  Price,  director  the  Miami-Metro  De- 
partment of  PubUclty  and  Tourism,  will  be 
master  of  ceremonies. 

At  10  ajn.  on  E>ecemb€r  17  in  beauti- 
ful Bayfront  Park  a  crowd  gathered  and 
the  following  program,  with  background 
of  the  occasion  explained  In  the  program 
took  place.  Mr.  Speaker,  the  program 
15  as  follows : 

Mn.n«m  Pxppxa  Palm  Planting  Dat.  10  a.m., 
DscxMBSB   1.   1973.  Battkont  Paek 

BACXGBOUNO 

The  coconut  paim.  with  its  graceful  llmbe 
rwaylng  in  the  breeze,  long  has  serred  aa  a 
symbol  of  our  subtropical  envu^)nment.  At 
a  recent  Installation  dinner  of  the  City  of 
Miami  Committee  on  Ecology  and  Beautl- 
ncatlon.  Mildred  (Mrs.  Claude)  Pepper  a 
champion  of  natures  beauty,  suggested  a 
maaaive  palm  tree  planting  to  preMrve  this 
South  Plorldlan  trademark  which  haa  come 
under  artack  by  dlaeaae. 

Lethal  yeUowlng.  the  disease  which  de- 
•troys  coconut  palms,  baa  spread  lU  blight 
acroaa  South  PI  or  Ida— leaving  only  alcWy 
trrjRks  where  once  luah,  green  palma 
*oounded  m  coconuta. 

Because  the  coconut  palm  la  euch  an  In- 
•-egral  part  of  this  area's  scenic  beauty  the 
Cr.y  of  Miami  la  seeking  to  preserve  it  to- 
day The  City  of  Miami  Parka  and  Recrea- 
tion Department  la  replacing  several  coconut 
P*lnia  In  Bayfront  Park  and  adding  aoae 
addJUonal  ones  The  Parka  Dep«^ment  also 
la  dlatrlbutlng  300  coconut  palm  aeedllnga 
w>  be  planted  throughout  the  Miami  area. 

Thua.  the  palm  trees  planted  today  wUl 
aerve  aa  living  tributes  to  Mrs.  Pepper,  not 
only  today  but  also  in  yeara  to  come.  And 
Miami's  famoua  coconut  palms  will  continue 
to  fJourlah  under  the  sua. 

Welcome  Lew  Price.  Director.  Department 
of  Publicity  and  Tovjrtam 

Invocation  The  Reverend  Canon  Theodore 
K   OlbaoQ,  Com^alaaloner. 


Introductlona:  Lew  Price,  Master  of  Cere- 
monlea. 

Remarka :  Maurice  A.  Perre,  Blayor:  Mildred 
Pepper.  Claude  Pepper.  Representative  Man- 
olo  Reboeo.  Vice  Mayor  Theodore  R.  Olbaon. 
Commissioner;  Rose  Gordon.  Commissioner; 
J.  L.  Plummer.  Jr..  Commissioner;  P.  W.  An- 
drews. City  Manager;  E.  Albert  Pallet,  Chair- 
man of  the  Committee  on  Ecology  and 
Beautlflcatlon:  Albert  H.  Howard.  Director 
of  the  Department  of  Parks  and  Recrea- 
tion. 

Tree-Planting  Ceremony. 

Demonstration  of  coconut  palm  sprout 
planting 

Distribution  of  seedlings. 

Maurice  A.  Perre.  Mayor. 

Manolo  Reboeo.  Vice  Mayor. 

The  Reverend  Theodore  Gibson,  Com- 
missioner. 

Rose   Gordon.   Commissioner. 

J  L.  Plummer.  Jr..  Commissioner. 

P    W.  Andrews.  City  Manager. 

Mrs.  Rose  Gordon  who  initiated  this 
program  has  expressed  the  hope  that 
Governor  Askew  and  members  of  the 
Florida  Legislature  will  encourage  the 
planting  of  new  palms  in  other  parts  of 
Florida  where  the  beautiful  palms  grow 
and  where  disease  Is  taking  a  terrible  toll 
of  that  lovely  tree.  We  are  hopeful  that 
the  concerted  efforts  of  local.  State,  and 
national  authorities  wlU  establish  the 
cause  of  the  lethal  yellowing  of  the  palms 
and  will  be  able  to  stop  this  sad  impair- 
ment of  our  cherished  Florida  beauty. 

I  commend  Mrs  Pepper's  suggestion  to 
all  who  love  and  admire  our  Florida 
palms. 

EXPLANATION  OF  VOTES 

(Mr.  BRADEMAS  asked  and  was  given 
permission  to  extend  his  remarks  at  this 
point  in  the  Record  and  to  include  ex- 
traneous matter. ) 

Mr.  BRADEMAS.  Mr.  Speaker,  because 
I  was  unavoidably  detained  in  returning 
to  the  floor  of  the  House  on  Tuesday, 
November  13.  1973.  for  two  roUcalla,  I 
Insert  at  this  point  In  the  Record  a  list 
of  these  votes,  with  an  Indication  of  my 
position  on  them : 

Rollcall  No.  581  was  on  final  passage 
of  the  conference  report  on  the  Emer- 
gency Fuel  Allocation  Act.  I  was  paired 
for  the  conference  report,  and  had  I  been 
present,  would  have  voted  in  favor  of  it. 
The  conference  report  was  passed  348  to 
46,  with  three  voting  present. 

Rollcall  No.  594  was  on  final  passage  of 
H.R.  11238,  a  bill  to  provide  for  an  im- 
proved system  of  adoption  of  children 
in  the  EHstrlct  of  Columbia  I  was  paired 
for  this  bill,  and  had  I  been  present, 
would  have  voted  in  favor  of  it.  The  bill 
was  passed  350  to  0 


EXPLANATION  OP  VOTES 

I  Mr  BRADEMAS  asked  and  was  given 
permission  to  extend  his  re.Tiarks  at  this 
point  in  the  Record  and  to  include  ex- 
traneous matter  > 

Mr  BRADEMAS  Mr  Speaker.  I  was 
unavoidably  detained  In  returning  to  the 
floor  of  the  House  on  Friday.  Decem- 
ber 14.  to  vote  on  the  following  amend- 
ment* to  HR  11882.  an  amendment  in 
the  nature  of  a  substitute  to  H.R.  11450. 
the  National  Emergency  Energy  Act. 


I  insert  at  this  point  In  the  Record  a 
list  indicating  my  position  on  the  amend- 
ments on  which  I  was  unable  to  vote: 

Rollcall  No.  667 — the  Adams  smiend- 
ment  to  strike  section  114  of  the  bill,  re- 
lating to  antitrust  exemptions — the  pur- 
pose of  this  amendment  was  to  strike 
provisions  in  the  bill  which  exempted  oil 
companies  and  retail  business  establish- 
ments from  Federal,  State,  and  local  an- 
titrust laws.  The  amendment  was  re- 
jected 170  to  223.  Had  I  been  present,  I 
would  have  voted  in  favor  of  this  amend- 
ment. 

Rollcall  No.  668 — the  Wyman  amend- 
ment to  rescind  the  requirement  for 
emission  control  devices  on  vehicles 
throughout  the  Nation  until  January  1. 
1977.  except  for  certain  areas  which  have 
significantly  high  pollution  levels— large 
metropolitan,  urban  areas.  The  amend- 
ment was  rejected  180  to  210.  Had  I  been 
present,  I  would  have  voted  against  this 
amendment. 

Rollcall  No.  669— the  Eckhardt  amend- 
ment that  sought  to  allow  for  the  alloca- 
tion of  fuel  for  school  busing  where  a 
busing  plan  has  been  ordered  by  the  ap- 
propriate school  board  The  amendment 
was  rejected  185  to  202.  Had  I  been  pres- 
ent, I  would  have  voted  in  favor  of  this 
amendment. 

Rollcall  No.  670 — a  motion  to  limit  de- 
bate on  the  substitute  amendment  (H.R. 
11882)  and  all  amendments  thereto.  The 
motion  was  carried  197  to  196.  and.  had  I 
been  present.  I  would  have  voted  in  favor 
of  it. 

Rollcall  No.  671— a  motion  that  the 
Committee  rise  and  report  the  bill  back 
to  the  House  with  the  enacting  clause 
stncken.  The  motion  was  rejected  56  to 
335.  Had  I  be«i  present,  I  would  have 
voted  against  the  motion. 


December  19,  1973 


CONGRESSIONAL  RECORD  —  HOUSE 


426.")! 


OIL  SUPPLIES  SQUEEZED— MOTOR- 
IST FORCED  TO  PAY  EXORBITANT 
PRICES 

(Mr.  PRICE  of  Illinois  asked  and  was 
given  permission  to  extend  his  remarks 
at  this  point  in  the  Record  and  to  Include 
extraneous  matter. ) 

Mr  PRICE  of  Illinois.  Mr.  Speaker,  the 
American  people  are  being  asked  to  make 
sacrifices  to  see  our  Nation  through  the 
energy  crisis.  There  is  no  question  of 
their  willingness  to  do  their  part.  There 
must,  however,  be  equity  smd  fairness  In 
these  efforts. 

I  am  concerned  that  such  is  not  the 
case.  Today,  in  O'Fallon,  m.,  one  of  the 
smaller  communities  in  the  23d  IMstrict. 
regular  gas  is  selling  for  48  9  cent*  per 
gallon  and  premium  gas  is  between  51.9 
cents  and  55  cents  per  gallon.  The  aver- 
age motorist  is  expected  to  pay  these  In- 
flated prices  because  supplies  are  being 
squeezed. 

The  reports  of  soaring  oil  company 
profits  and  Increased  exports  of  oil  prod- 
ucts at  a  time  of  reported  shortages  does 
not  aufifur  well  It  Is  time  for  the  Federal 
Government  to  see  that  the  American 
people  are  protected,  not  exploited  by  the 
energy  crisis 

To  place  this  economic  imbalance  in 
better  perspective  I  include  the  following 
table: 


OIL  COMPANY  PROFITS  AND  SALES,  31  LARGEST 
COMPANIES,  1973 

IDolUr  amounts  in  biilionsl 


Incrsisc  Increase 

oysr  over 

1972  3d             1972 

9  mo    (psrcaoO  quarttr      (parcent) 


Sain.. 

Profib. 


{81.  S 
6.4 


22 

47 


»9.2 

2.4 


36 

63 


OIL  COMPANY  PROFITS  AND  SALES.  8  URGEST  COMPANIES 
lOotlar  amounts  in  btUionsI 


SalM 
9  mo 


3d 

quarter 

profit 

Profits  incraasa 

9  mo        (percent) 


tuon . 

Mobil 

Taxaco . 

Gulf 

SUndard  (California).. 

StNll 

SUndard  (Indiana).... 
ARCO 

ToW 58.96 


$18. 10 
8.96 

Jl.65 
57 

81 

8.2S 

.84 

48 

7.00 

.57 

91 

5.45 

.56 

51 

4.15 

.25 

21 

3.90 

.39 

37 

3.15 

.18 

16 

5.01 


Source:  Business  Week,  Nov.  10, 1973. 

The  31  largest  oil  companies  had  sales 
of  just  under  S82  billion  in  the  first  9 
months  of  1973,  up  22  percent  from  the 
same  period  last  year.  Nearly  three- 
quarters  of  those  sales,  or  $59  billion, 
were  made  by  the  eight  largest  com- 
panies. 

According  to  a  ri'cent  FTC  study. 
those  same  eight  compaiiit-  l.ave  a  vir- 
tual monopoly  on  the  ou  iiidu-stry  at 
every  stage.  They  control:  64  percent  of 
domestic  crude  reserves,  51  percent  of 
net  crude  production,  58  percent  of  re- 
fining capacity,  and  55  percent  of  the 
gasoline  market. 

As  the  table  shows,  the  energy  short- 
ages this  year  have  been  very  profitable 
for  the  oil  industry. 

For  the  industry  as  a  whole,  profits 
reached  $6  4  billion  during  the  first  9 
months  of  the  year,  up  47  percent  over 
the  comparable  period  last  year.  And 
third-quarter  profits  were  $2.4  billion,  up 
63  percent. 

Clearly,  it  Is  time  to  stop  squeezing  the 
American  people  who  are  to  bear  the 
burden  of  the  energy  debacle. 


HON.  CARL  VINSO.N 

( Mr.  PRICE  of  Illinois  asked  and  was 

given  permission  to  extend  his  remarks 
at  this  point  in  the  Record  and  to  in- 
clude extraneous  matter.) 

Mr.  PRICE  of  Illinois.  Mr.  Speaker,  it 
was  my  privilege  to  attend  the  90th 
birthday  celebration  of  former  House 
Armed  Services  Chairman  Carl  Vinson 
in  Macon.  Oa.,  on  November   18 

At  the  conclusion  of  his  remarks  on 
the  occasion.  President  Nixon  announced 
that  the  yet-to-be-built  nuclear  carrier 
CVN-70,  win  be  named  the  Carl  Vinson. 
This  Is  the  first  aircraft  carrier  named 
for  a  Congressman. 

I  can  think  of  no  one  more  fitting  or 
deserving  than  Carl  Vinson  to  receive  this 
singular  honor.  No  man  who  has  served 
In  the  Congress  has  done  more  to  see 
that  our  country  has  a  strong  national 
defense  structure. 


I  include  the   article   from   the  De- 
cember 5  ^ue  of  the  Navy  Times  about 
the  honor  bestowed  upon  Carl  Vinson: 
CVN-70  Naiod  fob  Vinson 

Macon.  Ga. — Breaking  one  longstanding 
Navy  tradition — If  not  more — President  Nix- 
on has  announced  that  the  yet-to-be-bullt 
nuclear  carrier  CVN-70  will  be  named  the 
Carl  Vinson. 

Nixon,  speaking  here  at  a  celebration  of 
the  90th  birthday  of  the  former  Georgia  con- 
gressman and  the  100th  annlversarv  of  the 
Walter  F.  George  School  of  Law  at  Mercer 
University,  ended  his  remarks  with  the  sur- 
prise announcement. 

Vinson,  who  retired  in  1964  after  serving 
50  years  and  62  days  In  Congress  (the  longest 
House  service  in  history) .  was  first  chairman 
of  the  Naval  Affairs  Committee  and  later  was 
chairman  of  the  Armed  S<'rvlces  Committee 

During  the  Revolutlonan.-  War.  Contlne:.- 
tal  Navy  ships  were  named  for  living  per- 
sons— among  t.hem.  WashUigton,  FYanklln, 
Hancock  and  Oage  H<iwevpr.  since  1797.  the 
tradition  has  been  otherwise 

A  second  tradition  nas  oeen  that  aircraft 
carriers  are  named  mostly  for  historical 
Naval  vessels  or  battles.  Exceptions  have 
been  the  Fy>rre8tal  named  for  the  first  De- 
fense Secretary:  the  Prankim  D.  Roosevelt, 
the  John  V  Kennedy  and  the  Dwlght  D. 
Elsenhower,  all  named  for  i»esldents,  and 
the  Nlmltz,  honoring  Fleet  Adm.  Chester  A 
NlmltE. 

CVN-70  wUl  be  the  first  named  for  a  con- 
gressman. Traditionally,  congressmen  have 
been  grouped  with  those  for  whom  destroyers 
are  named. 

•Next  to  his  country,  and  next  to  his  state 
of  Georgia,  Carl  Vinson  loved  the  Navy  most  " 
Nixon  said. 

•'I  have  discussed  with  Chairman  John 
Stennls  of  the  Armed  Services  Committee  of 
the  Senate  and  Congressman  Ed  Hebert  from 
Louisiana  ...  a  proposal,  and  they  have 
given  me  permission,  because  we  must  do 
this  thing  Jointly,  to  make  this  announce- 
ment today. 

"Aa  you  know,  we  have  just  begxin  to 
develop  nuclear  carriers.  The  first  one  was 
named  the  Elsenhower,  the  second  one  was 
named  the  Nlmltz,  the  great  Naval  com- 
mander of  World  War  n.  The  third  Is  Just 
beginning,  and  it  wUl  be  named  the  Car] 
Vinson. 

Usually  names  for  new  Navy  ships  a.-e 
selected  by  the  Navy  History  Division  ar,d 
approved   by  the  Navy  Secret&rv 

A  Navy  spokesman  said  that  there  are  now 
no  definite  guidelines— such  as  batUeshtfj.- 
for  states — and  that  each  is  named  on  an  in- 
dustrial   basis. 

Advance  procurement  funds  were  approved 
for  CVN-70  In  fiscal  year  1974  and  the  money 
to  begin  construction  Is  in  this  year's  budget. 

The  ship  Is  planned  to  have  a  length  oi 
1092  feet  and  a  134-foot  beam 

She'll  be  propelled  by  two  nuclear  reactors 
with  vlrtuaUy  unlimited  endurance  and  wUl 
have  a  complement,  including  air  wing,  of 

o335. 


ENOOXJRAGEMENT  OF  M.\SS  TRMV- 
STT  USE  THROUGH  T.^X  LEGIS- 
LATION 

<Mr.  BINGH.'^M  asked  and  was  given 
permission  to  extend  his  remarks  at  this 
point  in  the  Record  and  to  include  ex- 
traneous matter  > 

Mr.  BINGHAM  Mr  Speaker,  ve.ster- 
day  I  introduced  HR  11992  to  amend 
the  Internal  Revenue  Code  to  encourage 
the  ase  of  public  ma-vs  ti-an.<;rx>rt4inon 
by  allowing  a  deduction  or  tax  credit  for 
expen.'^s  incurred  by  the  taxpayer  com- 
muting   to    and    from    work    on    public 


transportaUon.  The  other  major  feature 
of  this  bill,  which  is  enUtled  the  'Com- 
muters' Tax  Act,"  is  the  recognition  that 
the  handicapped,  many  of  whom  are  un- 
able to  use  mass  transit,  should  be  al- 
lowed to  deduct  their  reasonable  ex- 
penses incurred  commuting  to  and  from 
work  without  regard  to  the  mode  of 
transportation  employed 

The  exploding  automobile  population 
has  clogged  our  city  streets,  contributed 
to  dangerous  air  poDution  levels,  and 
drained  our  energy  resources.  Trans- 
portation problems  aCfect  each  of  us 
whether  directly  or  mdirectlv  The  truck 
that  does  not  get  to  the  food  market  on 
time,  thereby  causing  the  emptv  spaces 
on  the  grocer'.s  shelves,  affects  us  as 
much  a.s  the  ru.sh  hour  trafSc  jam  on  the 
mam  road  into  the  city. 

Our  cities  and  their  surrounding  bed- 
room communities  have  grown  m  i-^aps 
and  bounds  over  the  past  t«o  decade'^ 
far  outdistancing  the  ability  of  road";  lo 
accommodate  the  volume  of  traffic  The 
cycle  is  complete  when  we  add  one  ad- 
ditional factor— the  automobile  Itsel' 
tends  to  stimulate  the  traveling  pro- 
pensity of  the  average  American  We 
have,  therefore,  in  our  desire  to  plav  the 
American  mobility  game,  jammed  the  en- 
tire circulatory  system  of  our  major  com- 
munities to  a  poLnt  wher*  it  has  become 
highly  inconvenient,  costlv.  and  even 
dangerous  to  move  about. 

Our  profligate  ua.-^te  of  energy  can 
at  least  in  substantial  part,  be  tr^ed  to 
the  use  of  the  com.muters  automobile 
It  is  astonishing,  but  true,  that  90  pe-- 
cent  of  all  passenger  miles  acrumulated 
each  year  is  attributable  to  private  auto- 
mobile use.  while,  for  e.xample  airr'an^s 
only  account  for  5  percent  of  the  lot,:^' 
Of  all  the  miles  traveled  bv  Am.erican'- 
commuting  to  work  each  vear  8-  •>e--er-' 
IS  by  automobile,  while  onlv  h"  percent 
use  public  transportation. 

Automobiles  consume  100  biUion  gal- 
lons of  gasoline  each  year,  or  6  million 
r^a.-rels  a  day  This  repre.^ents  the  coun- 
Vq-I  ^'^^^^^'"c^ipated  daily  shortfaU  in 
19-4.  Of  the  83  milhon  registered  cars 
in  the  United  SUtes,  the  Departjr.ent  of 
rran-sportation  estimates  that  42  per- 
cent are  used  to  carry  commuters  to 
work.  But  this  need  not  be  the  case 

Though  It  hjvs  been  .said  that  we  are 
wedded  to  the  door-to-door  convemence 
of  the  automobile,  studies  have  shown 
that  many  commuters  would  abandon 
their  automobiles  when  the  available 
public  transportation  altemaUve  is  made 
attractive.  A  recent  study  conducted  by 
Montgomery  County  Md  showed  that 
If  only  9.000  cars  were  taken  off  the  com- 
muter corridors  12.000  barrels  of  oU 
would  be  saved  a  year.  Imagine  the 
enormous  .<;avlnps  in  gasoline  that  would 
be  realized  if  we  could  divert  10  percoit 
of  the  people  comm.uting  by  car  to  mass 
transit 

Proponents  of  free-  or  low-cost  sub- 
sidized mass  transportation  contend 
that  as  fares  are  lowered  there  is  an  ob- 
serv-able  increase  in  r.dershlp. 

Supporters  of  Increased  utilization  of 
msiss  transit  also  point  out  that  there 
would  be  clear  advantages  for  the  low- 
income  and  handicapped  worker  if  farrs 


12652 


CON(  R  t  -  SIGNAL  RECORD  —  HOUSE 


were  either  subsidized  or  eliminated.  The 
greater  mobility  afforded  the  poor  and 
disabled  because  of  the  minimum  Im- 
pact low  transit  fares  would  have  on 
their  disposable  Income  would  act  £is  an 
Incentive  to  seek  available  work  outside 
the  immediate  neighborhood  and  con- 
tribute to  reduced  dependence  on  public 
assistance.  It  would  also  widen  their 
social  horizons  and  enable  them  to  ob- 
tain vital  services  where  they  choose. 

For  many  years,  the  worker  who  de- 
pends upon  his  automobile  for  legitimate 
business  purposes  has  been  able  to  deduct 
his  transportation  expenses.  The  allow- 
able deduction  served  a  deserved  need. 
So.  too.  would  the  t&x  advantages  pro- 
vided under  the  Commuters'  Tax  Act.  In 
an  age  when  energy  resources  have  be- 
come scarce  and  must  be  conserved,  the 
most  eflflcient  transportation  method 
should  be  used  wherever  possible.  I  be- 
lieve that  if  the  mass  transportation 
commuter  were  allowed  to  deduct  from 
his  taxes  the  aunount  spent  on  fares  to 
travel  from  and  to  work,  many  jjeople 
living  within  the  Nation's  cities  endowed 
with  \-lable  mass  transit  facilities  would 
opt  for  its  use  over  the  car. 

Critics  of  the  tax  credit  plan  saj-  that 
no  matter  how  low  the  fares,  the  more 
affluent  American  will  not  abandon  his 
car  for  the  bus  or  train.  I  have  consid- 
ered this  possibility  and  concluded  that 
the  best  way  to  make  mass  transit  at- 
tractive to  all  Americans  is  to  provide  a 
choice.  The  mass  transit  commuter,  un- 
der my  proposal,  would  be  allowed  to 
elect  either  a  tax  cfedlt  up  to  $200  each 
year,  or  deduct  the  actual  expenses  in- 
curred by  using  public  transportation  to 
and  from  work,  up  to  a  maximum  of 
$800  This.  I  believe,  will  entice  the  per- 
son who  normally  itemizes  his  deductions 
to  use  mass  transit  also. 

Moreover,  if  funds  are  not  forthcom- 
ing to  stave  off  a  fare  Increase  in  New 
York  Cltj-.  the  realizable  tax  savings  for 
the  New  York  commuter  under  this  bill 
could  act  as  insulation  from  its  economic 
impact. 

No  matter  how  attractive  mass  transit 
Is  made  there  sur,  unfortionately.  citizens 
unable  because  of  physical  handicaps  to 
use  public  transportation.  These  people 
would  be  severely  discriminated  against 
if  the  Commuters'  Tax  Act  were  to  make 
no  provision  for  them. 

The  disabled  commuter  not  able  to  use 
public  transportation  spends,  on  the 
average,  between  $50  and  $75  each  week 
to  get  to  and  from  work.  For  the  average 
worker  this  represents  an  Intolerably 
large  slice  of  the  weekly  paycheck.  The 
Commuters'  Tax  Act  Includes  provisions 
which  will  not  only  provide  for  equitable 
treatment  of  the  handicapped  but  will 
encourage  them  to  seek  and  hold  em- 
ployment instead  of  relying  on  public  as- 
sistance. Mv  bill  would  allow  a  disabled 
individual  to  take  a  credit  against  the 
normal  income  tax  imposed  et^ual  to  the 
reasonable  expenses  Incurred  by  that  In- 
dividual up  to  $750  each  taxable  year  for 
trarjportation  expenses.  The  bill  aL;o 
provides  for  a  deduction  for  the  handi- 
capped commuter  up  to  a  maximum 
of  $3  000.  should  he  elect  to  take  It 
instead  of  the  tax  credit. 
I  consider  passage  of  the  CommutetB' 


December  19,  1973 


Tax  Act  a  priority  matter.  This  Is  not  to  provide  th»t  it  tbe  individual  U  a  veuran 


say  that  there  are  not  other  Important 
steps  that  must  be  taken  to  combat  the 
energy  shortage  We  will  have  to  provide 
operating  subsidies  for  mass  transit,  for 
example,  and  seek  new  energy  supplies. 
However,  each  progressive  measure  that 
Is  proposed  to  contribute  to  the  overall 
effort  to  conserve  fuel  deserves  serious 
consideration.  The  Commuters'  Tax  Act 
is  such  an  effort.  ^ 

The  text  of  the  bill  foUows: 
A  blU  to  amend  the  Internal  Revenue  Code 
of  1954  to  provide.  In  the  case  of  an  indi- 
vidual, a  credit  (not  to  exceed  $300)  or  a 
deduction  (not  to  exceed  WOO)  for  public 
transit  fare  expenditures  Incurred  in 
traveling  to  and  from  work,  and  In  the 
caw  of  a  handicapped  Individual  unable  to 
use  public  transportation,  a  credit  (not  to 
exceed  $750 )  or  a  deduction  ( not  to  exceed 
$3,000)  for  reasonable  transportation  ex- 
penses Incurred  In  traveling  to  and  from 
work 

Be  it  enacted  by  the  Senate  and  Hoiue  of 
Representative*  of  the  United  State*  of  Amer- 
ica In  Congress  assembled.  That  this  Act  may 
be  cited  as  the  "Ckjmmuters'  Tax  Act' . 
Sf:c.  2.  AxxowANcs  of  Credits  roa  Public 
TaAKsrr  EzpuforruRxs  akd  roa 
T«ANsi»oRT4TiON  AND  ExprNDmnixs 

OF  DlSABLXD  LNDrVmCAU 

(a)  Subpart  A  of  part  IV  of  subchapter  A 
of  chapter  1  of  the  Internal  Revenue  Code  of 
1954  (relating  to  credits  aUowablei  la 
amended  by  redesignating  section  42  as  sec- 
tion 44  and  Inserting  m  Ueu  thereof  tbe 
following  new  sections : 
"S«c.  42.  Public  TaANsrr  KxpaNDrrtra^ 

"(ai  General  Rule.— lu  the  case  of  an  In- 
dividual, there  shall  be  allowed  as  a  credit 
against  the  tax  imposed  by  this  chapter  an 
amount  equal  to  the  amounts  paid  by  sucb 
individual  during  the  taxable  year  for  reason- 
able public  transit  transportaUon  between 
his  or  her  place  of  residence  and  place  of 
employment. 

■■(b)  Mailmiiin  Credit.— The  credit  al- 
lowed by  subaecUon  (a)  for  a  taxable  year 
shall  be  limited  to  saoo. 

■■(c)  Public  Transit  Defined —For  purposes 
of  this  section  and  section  43  the  term  pub- 
lic transit'  means  all  public  transportatton 


with  a  service -connected  dlsabUlty.  a  oerUfl- 
catlon  from  the  Veterans^  Admialstratlon 
that  his  dlsabUlty  ( to  the  extent  based  upon 
or  attributable  to  loss  or  loss  of  use  of  one  or 
more  of  his  extremities  i  has  a  rating  of  40 
percent  or  more  under  the  Schedule  for  Rat- 
ing DlsabUltles  of  tbe  Veterans'  Administra- 
tion (Federal  Register,  vol.  29.  No  101,  part 
H)  shall  be  deemed  conclusive  proof  that  be 
Is  a  disabled  individual  for  purpoaes  of  this 
section." 

(b)    Tbe  table  of  sections  for  sucb  sub- 
part  Is  amended   by  striking  out   tbe  (tern 
relating  to  section  42  and  inserting  In  lieu 
thereof  the  following  new  items 
"Sec.  42.  Public  transit  expendlturea. 
■'Sec.  43.  Transportation  expenditures  of  dis- 
abled Individuals. 
"Sec.  44.  Overpayments  of  tax."'. 
S»c.  3  DfDtrcnoN  IN  LiXD  or  CaEDrr. 

(a)  Part  vn  of  subchapter  B  of  chapter  1 
(relating  to  additional  itemized  deduction* 
for  Individuals)  Is  amended  by  redesignating 
section  219  as  section  221,  and  by  Inserting 
after  section  218  the  following  new  sections: 
"Sec  219.  Dtdctction  foe  Prrsuc  TaANsrr 
EiPCNorTTjais. 

"(a)  Allowance  of  Deduction. — In  the  case 
of  an  Individual,  there  shall  be  allowed  as  a 
deduction  any  expenditure  made  by  such  In- 
dividual during  the  taxable  year  for  reason- 
able public  transit  transportation  between 
his  or  ber  place  of  residence  and  place  ot 
employment. 

"(b)  Maximum  Deduction.— The  deduc- 
tion under  subsection  (a)  for  a  taxable  yeajr 
shall  be  limited  to  $800 

"(c)  Election  to  Take  Credit  In  Ueu  of  De- 
ducuon.— This  section  shaU  not  apply  in 
the  case  of  any  taxpayer  who.  for  the  tax- 
able year,  elects  to  Uke  the  credit  against 
tax  provided  by  section  42  (relating  to  credit 
against  tax  for  public  transit  expenditures) 
Such  election  shall  be  made  in  such  man- 
ner and  at  such  time  as  the  Secretary  or  bis 
delegate  shall  prescribe  by  regulaUons. 

"8«C.  220.    DXDOCnON        FOa        TaAJtSPOSTATION 

BxprNDrruaxs  of  I>iaABi.KD  Indi- 

VIDCAL.S. 

"(a)  Allowance  of  Deduction — In  the  case 
of  a  disabled  individual,  there  shall  be  al- 
lowed as  a  deduction  any  expenditure  made 
by  such  Individual,  during  the  taxable  year 
for  reasonable  transportation  between  his  or 


elevated  trains,  streetcars,  trains,  ferry  boat,      ment  "^'u/ 


and    other    slmUar    public    conveyances    in 

general  use  for  mass  tranalt. 

■'Sec.  43    TaANsporrATioN    ExFomrrtTaxs    of 

DlSABLXO    iNOrVTDPAl*. 

•<a)  General  Rule —In  the  case  of  a  dis- 
abled individual,  there  shall  be  allowed  as  a 
<:Tedlt  against  the  tax  imposed  by  this 
chapter  an  amount  equal  to  the  reasonable 
amounts  paid  by  such  Individual  during  tbe 
taxable  year  for  reasonable  transportation 
between  hu  or  her  place  of  residence  and 
place  of  employment. 

"(b)  Maximum  Credit— Tbe  credit  al- 
lowed by  subsection  (a)  for  a  taxable  year 
shall  be  Umlted  to  $750. 

•ic)  Disabled  Individual  Defined —For 
purposes  of  this  section  the  term  'disabled 
individual"  means  an  Individual  who  Is  blind 
las  defined  Ln  ■e<-tlon  151(d)  (3)  >  or  who  has 
lost  the  uie  of  one  or  more  of  his  extremi- 
ties, or  l3  otherwise  disabled,  to  such  an  ex- 
tent that  tn  order  to  avoid  undue  hardship  or 
ilan^r  he  must  during  the  entire  taxable 
Tear  use  other  than  public  transit  las  de- 
fined In  section  42  r  c )  ) .  in  whole  or  In  part, 
for  transportation  between  bis  or  her  place 
of  residence  and  place  of  employment.  A 
taxpayer  claiming  a  deducUon  under  thU 
section  shall  submit  such  proof  that  be  Is  a 
disabled  individual  as  tbe  Secretary  of  tbe 
Treasury  or  his  delegate  may  by  regulations 
prescribe  The  regulations  so  prescribed  «>'fi| 


"(b)  MaxUnum  Deduction.— The  deduc- 
tion under  subsection  (a)  for  a  taxable  year 
shall  be  limited  to  $3,000. 

'•(c)  Disabled  Individual  Defined -For 
the  purpoeee  of  this  section  the  term  "dis- 
abled individual"  has  the  same  meaning  as 
contained  In  section  43(c). 

"(d)  Election  to  Take  Credit  in  lieu  of  De- 
duction.— 

""This  section  shall  not  apply  in  the  case  of 
any  taxpayer  who.  for  the  taxable  year,  elects 
to  take  the  credit  against  tax  provided  by 
section  43  (relating  to  credit  against  tax  for 
transportation  expenditures  of  disabled  indi- 
viduals). Sucb  election  thaU  be  made  In 
such  manner  as  the  Secretary  or  bis  delegate 
siiail  prescribe  by  regulations." 

lb)  The  table  of  sections  of  such  part  ts 
amended  by  strUclng  out  the  Item  relating  to 
section  219  and  inserting  In  Ueu  thereof  the 
following  new  Items: 

"Sec  210  Deduction  for  public  transit  ex- 
pendtt^u-es. 

""Sec  220  Deduction  for  transportation  ex- 
pend Itxires  of  disabled  Individ- 
uals. 

"Sec.  221.  Cross  references." 

8»c.  4.  Efitctivt  Date 

Tbe  amendments  made  by  sections  2  and  3 

shall  apply  to  taxable  years  ending  after  the 

date  of  tbe  enactment  of  his  Act  with  respect 

to  amounts  expended  after  sucb  date. 


December  i.'v,  7/y;.y 

PHIL  L    ROOF.  DISTINGUISHED 
PVBl.lC  SERVANT 


COiNGRESSIONAL  RECORD  — HOUSE 


(Mr  M.-^HuN  asked  and  was  given 
I)ermission  to  extend  his  remarks  at  this 
point  in  the  Record  and  to  Include  ex- 
traneous matter.) 

Mr.  MAHON.  Mr.  Speaker,  on  October 
27.  Mr.  Philip  L.  Roof,  executive  assist- 
ant to  the  Architect  of  the  Capitol,  con- 
cluded a  distinguished  career  in  the  Fed- 
eral Government. 

PhU  began  his  career  with  the  Depart- 
ment of  Agriculture  in  1935.  He  became 
associated  with  the  Architect's  Office  In 
1940  when  he  was  appointed  to  the  posi- 
tion of  chief  clerk  of  the  Botanic  Garden 
He  transferred  to  the  Capitol  in  1941, 
and  in  1955  he  was  appointed  by  the  late 
J.  George  Stewart,  eighth  architect  of 
the  Capitol,  to  the  posiUon  of  executive 
assistant. 

During  his  tenure.  Phil  demonstrated 
an  exceptionally  high  degree  of  ability 
as  an  administrator.  His  specialized 
knowledge  and  judgment  regarding  the 
activities  of  the  Architect  of  the  Capitol 
and  their  relationship  to  the  Congress 
brought  him  into  frequent  contact  with 
Members  of  the  House  and  Senate  offi- 
cers of  the  Congress,  and  staffs  He 
worked  very  closely  with  Speaker  Ray- 
burns  office  and  with  members  of  the 
Commission  for  the  Extension  of  the 
U.S.  Capitol  during  the  period  of  con- 
sideration and  construction  of  the  exten- 
sion of  the  east  front  of  the  Capitol  He 
was  intimately  associated  with  Speaker 
McCormack  and  with  the  members  of 
the  House  Office  Building  Commission 
during  construction  of  the  Raybum 
Building.  He  worked  closely  with  and 
provided  staff  services  to  the  Senate 
Office  BuUding  Commission  during  the 
construction  of  the  Dlrksen  Building  He 
conUnued  to  serve  the  Commission  in 
connection  with  other  projects  until  his 
retirement. 

In  1970,  at  Speaker  McCormack 's  re- 
quest. Phil  served  as  personal  representa- 
tive of  the  Speaker  in  developing  details 
that  would  insure  an  acceptable  process 
for  selection  of  an  engineering  firm  to 
determine  the  feasibility  of  restoring  the 
west  front  of  the  Capitol. 

Phil  Roof  cherishes  a  deep  sentiment 
for  the  Capitol  and  Its  environs  His  de- 
votion to  duty  brought  him  recognition 
as  an  authority  In  the  appropriation  and 
legislative  processes  as  these  affected  the 
programs  and  actUltles  of  the  Architect 
No  doubt  the  high  point  In  his  career 
came  m  1970.  As  a  result  of  his  adminis- 
trative and  leadership  capabilities,  Mr 
Stewart,  with  whom  he  worked  closely 
recommended  legislation  which  was  sub- 
sequently approved  that  authorized  Phil 
Roof  as  executive  assistant,  to  serve  as 
Architect  of  the  Capitol  during  the  ab- 
sence of  the  Architect  and  Assistant 
Architect  of  the  Capitol. 

The  Honorable  George  White,  who  be- 
came Architect  of  the  Capitol  in  1971 
has  spoken  in  terms  of  highest  commen- 
dation of  the  work  of  Phil  Roof  Phil  will 
be  missed  by  the  Architect  and  he  will  be 
missed  by  many  of  us  who  have  worked 
with  him  through  the  years.  Phil  wUl  be 
missed  in  the  Capitol,  but  I  know  he  wUl 
continue  to  be  busy  serving  his  com- 
munity and  his  fellow  man. 


My  congratulations  for  a  job  weil  dore 
and  my  very  best  wishes  to  Phi]  ancj  his 
wife  Beriiia  for  continued  health  and 
happiness. 


42653 


LEAVE  OF  .A.BSENCE 

By  unanimous  consent,   leave   ot   a.t- 
sence  was  grant^i  to- 

Mr.  ANDREWS  of  North  Dakota  lat 
the  request  of  Mr.  Rhodes  ,  from  4  3C 
p.m.  today  and  the  balance  of  the  week 
on  account  of  ofBclal  b-osmess 


SPECIAL  ORDERS   GRANTED 

By  unanimous  consent,  permission  to 
address  the  House,  foilowiiig  the  legis- 
lative program  and  any  special  orders 
heretofore  entered,  was  granted  to: 

(The  following  Members  lat  the  re- 
quest of  Mr.  Thoke)  to  revise  and  extend 
their  remarks  and  Include  extraneous 
material : » 

Mr.  CoNABLE.  :or  5  minutes,  today 

Mr.  Young  of  Illinois,  for  5  minutes 
today. 

Mr.  Edwards  of  Alabama,  for  10  min- 
utes, today. 

Mr.  Kemp,  for  15  minutes,  today. 

Mr.  Steele,  for  45  minutes,  today. 

Mrs.  Heckler  of  Massachusetts,  for 
5  minutes,  today. 

Mrs.  Heckler  of  Massachusetts,  for  5 
minutes,  December  20. 

Mr.  FoTOLEY.  for  5  minutes,  today. 

Mr.  Du  Pont,  for  60  minutes  Thurs- 
day, December  20. 

(The  following  Members  (at  the  re- 
quest of  Mrs.  ScHROEDEH)  to  revlse  and 
extend  their  remarks  and  include  ex- 
traneous material:) 

Ms.  Abztjg,  for  10  minutes,  today. 

Mr.  Daniels  of  New  Jersey,  for  5  min- 
utes, today. 

Mr.  Carey  of  New  York,  for  10  min- 
utes, today. 

Mr.  Davis  of  South  Carolina,  for  5 
minutes,  today. 

Mr.  Gonzalez,  for  5  minutes,  today. 

Mr.  Adams,  for  5  minutes,  today. 

Mr.  Drinan.  for  15  minutes,  today. 
Mr.  GuNTER,  for  5  minutes.  December 
20. 

Mr.  Mann,  for  5  minutes,  December 
20. 


EXTENSION    OF    REMARKS 

By  unanimous  consent,  permission  to 
revise  and  extend  remarks  was  granted 
to: 

Mr.  Mahon,  and  to  Iwilude  extrjmeous 

matter. 

Mr.  Gray,  and  to  Include  extraneous 
matter. 

(The  following  Members  (at  the  re- 
quest of  Mr.  Thone).  and  to  include  ex- 
traneous matter:) 

Mr.  Hastings. 

Mr.  HiLLis. 

Mr.  Steicer  of  Wisconsin  in  three  in- 
stances. 

Mr.  YotJNG  of  Illinois  in  two  instances. 

Mr.  Young  of  South  Carolina. 

Mr.  Myers  in  two  instances. 

Mr.  Baker. 

Mr.  Wyman  In  two  instances. 

Mr.  Roncallo  of  New  York. 

Mr.  Minshall  of  Ohio. 

Mr.  CoNLAN  in  two  instances. 


Mr  Pow  ELL  of  Ohio. 

Mr.  Erlenborn. 

Mr  HosMiR  in  two  instances. 

Mr    WiDNALL. 

Mr.  Frenzel. 

Mr.  Kemp. 

Mr  Derwinski  In  three  instances 

Mr  Shoup. 

Mr.  MizELL  in  five  instances. 

Mr.  Whitehurst. 

Mrs.  Heckler  of  Massachusetts  in  six 
mstances. 

Mr.  Nelsen. 

Mr.  Brotzman. 

(The  following  Members  (at  the  re- 
quest of  Mrs.  ScHROEDER)  and  to  Include 
extraneous  matter: ) 

Mr.  DoNOHUE. 

Mr  Gaydos  in  Ave  instances. 

Mr.  Anderson  of  California  in  four  In- 
stances. 

Mr.  Hebert. 

Mr.  GUNTER. 

Mv  .^Bzrc  in  10  instances. 
Mr  (30.VZALEZ  in  three  instances. 
XL'.  Rarick  in  three  instances 
Mr.  Downing. 
Mr.  Edwards  of  California. 
Mr.  Nichols. 

Mr,  Harrington  in  three  Instances 
Mr.  RooNEY  of  New  York  in  10  in- 
stances. 

Mr.  Drinan  in  three  instances 

Mr.  Patten. 

Mr.  Fascell  in  five  instances. 

Mrs.  Grottths. 

Mr.  Danielson  In  five  Instances 

Mrs.  Sullivan. 

Mr.  Hamilton. 

Mr.  Wolff  in  two  instances. 

Mrs.  Chishoi.m 


SENATE  BILLS  AND  CONCURRENT 
RESOLUTIONS  REFERRED 

*'^J'"i  ■'°^"^  ^^  concurrent  resoluUons 
of  the  Senate  of  the  foUowing  titles  were 
taken  from  the  Speaker's  table  and  un- 
der the  rule,  referred  as  foUows: 

S.  1868.  An  act  to  amend  the  United  Na- 
tions Participation  Act  of  1945  to  halt  the 
importation  of  Rhodeslan  chrome-  to  tte 
Committee  on  Foreign  Affairs. 

S.  2432.  An  act  to  esUbllah  a  procedure 
assuring  Congress  the  full  and  pninpt  pm- 
ductlon  of  informauon  requested  from  p!ed- 
era:  officers  and  employees,  to  the  Committee 
on  Rules.  ^^"»x^uiin«c 

«s^h?^K-  ^^  ^^  Concurrent  resoluUon  to 
estabUsh  a  procedure  assuring  Congress  the 
fuU  and  prompt  producUon  of  Information 
requested  from  Federal  officers  uxOem- 
ployees:  to  tbe  Committee  on  Rules. 


ENROLLED  BELLS  SIGNED 

Mr.  HAYS,  from  the  Committee  on 
House  Administration  reported  that  that 
committee  had  examined  and  found  trulv 
enrolled  bills  of  the  House  of  the  foUow- 
ing tiUes,  which  were  thereupon  signed 
by  the  Speaker : 

HJl.  655.  An  act  to  provide  for  the  naming 
of  tbe  lake  to  be  c.-^ted  bv  the  Buchanan 
Dam.  Chowchllla  River.  Calif orrja; 

HJi.  S334.  An  act  for  the  relief  of  Maria 
Lourdes  Rlos; 

H.R.  3758.  An  act  for  the  relief  of  Isabel 
KugeiUa  Serrane  Maclas  Perrter: 

H.R.  7352.  An  act  to  amend  section  40S2ic) 
of  UUe  18.  United  States  Code,  to  extend  tbe 
Umite  of  confinement  of  Federal  priaontn; 
and 


12654 


CONGRESSIONAL  RECORD  —  Hi  I  SE 


December  19,  197  S 


HH.    11441.   An   »ct   to  po«tpon«  th«   ta- 
plecnentatloa  of  the  Headst»rt  fee  schedule 


SENATE  ENROLLED  BILLS 
SIGNED 

The  SPEAKER  announced  his  signa- 
ture to  enroUed  bills  of  the  Senate  of 
the  following  titles . 

S.  1435.  An  »ct  to  reorganlz*  th«  goTem- 
ment*l  structure  of  the  District  of  Colum- 
bia, to  provide  •  charter  for  '.ocal  government 
In  the  District  of  Columbia  subject  to  ac- 
ceptance by  a  majority  of  the  registered 
qualified  electors  In  the  District  of  Colum- 
bU.  to  delegate  certain  legUlaUve  powers  to 
the  local  government,  to  implement  certain 
recommendaUona  of  the  Commlaalon  on  the 
Organization  of  the  Oovemment  of  the  Dis- 
trict of  ColumbU.  and  for  other  purpoeea: 

S  1529  An  act  to  authorl»  the  Secretary 
of  the  Interior  to  enter  into  agreemenU  with 
non-Federal  agencies  for  the  replacement  of 
the  exlsUng  American  Falls  Dam.  Minidoka 
project.  Idaho,  and  for  other  purpoaae; 

S.  1945  An  act  to  amend  the  Agrlcioltural 
Adjustment  Act.  as  reenacted  and  amended 
by  the  Agricultural  Marketing  Agreement  Act 
of  1937  so  as  to  authorize  certain  grapefruit 
marketing  orders  which  provide  for  an  as- 
sessment against  handlers  for  the  purpose  of 
financing  a  marketing  promotion  program  to 
also  provide  for  a  credit  against  such  as- 
■eaament  In  the  case  of  handlers  who  expend 
directly  lor  marketing  promotion: 

3.  3413.  An  act  to  authorize  the  disposal  of 
aiumlniim  from  tHe  national  stockpUe  and 
the  supplemental  stockpUe.  and  for  ottier 
purposes; 

S.  24fi3.  An  act  to  authorize  the  dtepoaal 
of  silicon  carbide  from  the  national  stockpile 
and  the  supplemental  stockpUe; 

3.  2498.  An  act  to  authorize  the  disposal 
of  zinc  from  the  national  stockpile  and  the 
supplemental  stockpile;  and 

3  2551  An  act  to  authorize  the  disposal 
of  molybdenum  from  the  national  stockpUe 
and  from  the  supplemental  stockpUe.  and 
for  other  purpoeea. 


1044  A  letter  from  the  Secretary  at  tb»  In- 
terior, transmitting  a  draft  of  proposed  leg- 
islation to  provide  for  the  addition  of  certain 
lands  in  the  State  of  Alaska  to  the  National 
Park.  National  WUdllXe  Refuge.  National 
Forest,  and  the  Wild  and  Scenic  Rivers  Sys- 
tems, and  for  other  purposes;  to  the  Com- 
mittee  on  Interior   and   Insular   Affairs 

1«47  A  letter  from  the  Comptroller  Gen- 
eral of  the  United  States,  transmitting  two 
d-afts  of  proposed  legislation  to  revise  and 
restate  certain  functions  and  duties  of  the 
Comptroller  General  of  the  United  States 
and  for  other  purpoees;  to  the  Committee  on 
Government  Operations. 


BILL   PRESENTED  TO   THE 
PRESIDENT 

Mr.  HAYS,  from  the  Committee  on 
House  Administration,  reported  that  that 
committee  did  on  this  day  present  to  the 
President  for  his  approval  a  bill  of  the 
House  of  the  following  title: 

H  R.  10717.  To  repeal  the  act  terminating 
Federal  supervision  over  the  property  and 
members  of  the  Menominee  Indian  Tribe  of 
Wisconsin;  to  relnstltute  the  Menominee 
Indian  Tribe  of  Wisconsin  as  a  federally  rec- 
ognized sovereign  Indian  tribe;  and  to  re- 
store to  the  Menominee  Tribe  of  Wisconsin 
those  Federal  services  furnished  to  American 
Indians  liecause  of  their  status  as  American 
Indians,   and  for  other  purpoees. 


Mrs 


ADJOUR.SMENT 
SCHROEDER     Mr.    Speaker,    I 


move  that  the  House  do  now  adjourn. 
The  motion  was  agreed  to;  accordingly 
fat  7  o'cloclc  8ind  42  minutes  p.m.),  un- 
der Its  previous  order,  the  House  ad- 
journed until  tomorrow,  Thursday.  De- 
cember 20.  1973.  at  10  30  a.m. 


EXECUTIVE  COMMUNICATIONS. 
ETC. 

Under  clause  2  of  rule  XjAv,  executive 
communications  were  taken  from  the 
Speakers  table  and  referred  as  follows: 


REPORTS  OF  COMMITTEES  ON  PUB- 
LIC   BILLS    AND    RESOLUTIONS 

Under  clause  2  of  xm.  reports  of 
committees  were  delivered  to  the  Clerk 
for  printing  and  reference  to  the  proper 
calendar,  as  follows: 

Mr.  POAQE:  Committee  on  Agriculture. 
3.  3481.  An  act  to  repeal  the  provisions  of 
the  Agriculture  and  Consumer  Protection 
Act  of  1973  which  provide  for  payments  to 
farmers  In  the  event  of  crop  faUures  with 
respect  to  crops  planted  In  lieu  of  wheat 
or  feed  grains  (Rept.  No.  93-739).  Referred 
to  the  Committee  of  the  Whole  House  on 
the  State  of  the  Union. 

Mrs.  STJIXTVAN :  Committee  of  conference. 
Conference  report  on  S.  1983  (Rept.  No.  93- 
740)    Ordered  to  be  printed 

Mr  MAHON;  Committee  of  conference.  A 
conference  report  to  accompany  HJl.  11 575 
(Rept    No    93-741).  Ordered   to   be  printed. 

Mx.  PASSMAN:  Committee  of  conference. 
A  conference  report  to  accompany  H.R.  11771 
(Rept.  No   93-742'    Ordered  to  be  printed. 


PUBLIC    BILLS    AND    RESOLXmONS 

Under  clause  4  of  rule  XXn,  public 
bills  and  resolutions  were  Introduced  and 
severally  referred  as  follows: 

By  Mr.  DOMTNICK  V.  DANIELS: 

HJl.  12030  A  bill  to  terminate  the  airlines 
mutual  aid  agreement:  to  the  Committee  on 
Interstate  and  Foreign  Commerce. 

By  Mr   EDWiVRDS  of  Alabama: 

HR  12021  A  bill  to  amend  the  Internal 
Revenue  Code  of  1954  to  provide  income  tax 
Incentives  to  Improve  the  economics  of  re- 
cycling wastepaper:  to  the  Committee  on 
Ways  and  Means 

By  Mr   FAUNTROY: 

H  R.  12033  A  bUl  to  establish  an  urban 
homesteadlng  program  to  refurbish  aban- 
boned  real  estate  in  the  District  of  Columbia, 
and  for  other  purposes:  to  the  Committee  on 
the  District  of  Colixmbla. 
By  Mr  FRET: 

HR  12033.  A  bill  to  esUbllsh  the  Con- 
trolled Substances  Administration  to  admin- 
ister all  Federal  programs  relating  to  the 
regulation  of  narcotic  and  other  dangerous 
drugs,  the  treatment  and  rehabilitation  of 
abusers  of  such  drugs,  and  education  and 
training  respecting  such  drugs:  to  the  Com- 
mittee on  Interstate  and  Foreign  Commerce. 

HJl.  13034.  A  bill  to  amend  title  38  of  the 
United  States  Code  to  make  certain  that 
recipients  of  veterans'  pension  and  compen- 
sation will  not  have  the  amount  of  such 
pension  or  compensation  reduced,  or  entitle- 
ment thereto  discontinued,  because  of  In- 
creases In  monthly  sodal  security  benefits; 
to  the  Committee  on  Veterans'  Affairs. 

By  Mr.  FBOEHLICH  (for  himself  Mr. 
Coim.  Mr.  Cbowiw,  and  Mr.  Lsh- 
MAN)  : 

HR.  1303S.  A  bill  to  amend  the  Export 
Administration  Act  of  19«e  to  prohibit  ex- 
ports of  groundwood  and  chemical  paper- 
making  pulps  and   wastepaper  above  a  cer- 


tain   lev«l,    to   the  Committee   on   Banking 

and  Currency.  

By  Mr  QOLDWATKR: 
H.R.  13036.  A  bUl  to  amend  the  Federal 
Aviation  Act  of  1958,  as  amended,  to  delay 
by  S  months  the  Installation  of  emergency 
locator  transmitters  on  flxed-wlng  powered 
clvU  aircraft:  to  the  Committee  on  Inter- 
state and  Foreign  Commerce. 

By  Mrs  0RAS80  (for  heraeU.  Mr. 
Patman.  and  lii.  McKurirrr)  : 
HJl.  13037  A  bill  to  establish  a  National 
Energy  Development  Bank  to  provide  loans 
and  grants  to  finance  urgently  needed  re- 
search, exploration,  development,  produc- 
tion, and  delivery  of  energy  resources  with- 
in the  United  States;  to  the  Committee  on 
Banking  and  Currency. 

By  Mr  LEHMAN  (for  himself,  Mr. 
CaoNiN.  Ms.  Bcnuu  of  California, 
Mr.  THOJrt.  Mr.  RoaxNTHAL.  Mr.  Hkl- 

•TOBKl.     Mr.     WOLTT.     Mr.     STaATTON, 

Mr.  WnxiAM  D.  Foao,  Mr.  Snuts,  Mr. 
Hassincton,  Mr.  Ouds,  Mr.  Wau>ix, 
Mr.   CoNTDLB,   and   Mr.    Buacsi'rxB)  : 
HJL  13038.  A  bill  to  direct  the  Secretary 
of  Conuneroe  to   research   and   develop  new 
building  designs  and  construction   methods 
which  utUlae  solar  energy  and  to  authorize 
the  Secretary  of  Housing  and  Urban  Devel- 
opment  to   increase   the   maximum   amount 
of  nxortgages  Insured   under  title   II  of  the 
National   Housing   Act   for   certain   faculties 
utULzlng  solar  energy;   to  the  Committee  on 
Banking  and  Ctirrency. 

By  Mr.  McCORMACK  (for  himself.  Mr. 
Tkacub   of  Texas.   Mr.   Mosiuai,   Mr. 
GoLDWATKa.  Mr.  Bixsm,  Mr.  Danocl- 
soN,   Mr    Rot,   Mr.  Hasvxt,  Mr.  Rl- 
NAUOo.  and  Mrs.  Booos)  : 
HJl.  13029.  A  bill  to  further  the  conduct  of 
reee«Lrch,  development,  and  oommerclal  dem- 
onstrations   In    geotbermal    energy    technol- 
oglee,  to  direct  the  National  Science  Founda- 
tion to  fund  basic  and  applied  research  re- 
lating to  geothermal  energy,  and  to  direct  the 
Nation^  Aeronautics  and  Space  Administra- 
tion to  carry  out  a  program  of  demonstra- 
tions In  technologies  for  commercial  utUlza- 
tlon  of  geothermal  resources  Including  hot 
dry  rock  and  geopreasured  fields:  to  the  Com- 
mittee on  Science  and  Astronautics. 
By  Mr  MYERS: 
HJl.  13030   A  bUl  to  amend  title  XI  of  the 
Social  Seciu-lty  Act  to  repeal  the  provision  for 
the  establishment  of  Professional  Standards 
Review  Organization  to  review  services  cov- 
ered under  the  medicare  and  medicaid  pro- 
grams; to  the  Committee  on  Ways  and  Means 
By  Mr.  STEELE: 
HR.  13031.  A  bill  to  provide  a  special  pro- 
cedure for  the  eetabllahment  of  safety  and 
health  standards  for  fire  fighters;  to  the  Com- 
mittee on  Education  and  Labor. 
By  Mr  THONE: 
HJl.   13033.  A  toUl  to  amend  the  Occupa- 
tional Safety  and  Health  Act  of  1970  to  ex- 
tend   Its    protection    to    firefighters;    to    Vtf 
Committee  on  Education  and  Labor. 

HJl.  13033.  A  bUl  to  amend  the  Interna: 
Revenue  Code  of  1964  to  provide  that  in  thp 
case  of  certain  corporations  net  losses  from 
farming  shall  not  be  deductible;  to  the  Com- 
mittee on  Ways  and  Means. 

By  Mr  YOtJNQ  of  South  Carolina: 
H  R.   13034    A   bUl  to  prevent  further  In- 
creases In  1974  flue-cured  tobacco  marketing 
quotas:  to  the  Committee  on  Agriculture. 
By  Mr.  YOUNO  of  Georgia: 
HJl.  13036    A  bUl  to  suspend  for  a  l-year 
period   the  duty  on   certain   carboxymethyl 
cellulose  salU;    to  tbs  Committee  on   Ways 
and  Means. 

By  Mr  ASPIN  (for  himself  and  Mr. 
Har«inoton)  : 
HJl  13036  A  bUl  to  Impose  certain  taxes 
on  energy  Industries  and  create  certain  In- 
centives for  energy  Investment,  and  for  other 
purposes;  to  the  Committee  on  Ways  and 
Means. 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


S 


By   Mr.   CONABLE    (for    himself,    Mr. 
UiXMAN.   Mr.   ScHNntBXLi.   Mr.   Cos- 
maw.  Mr.  Gibbons,  and  Mr.  Prms)  : 
HJl.   12037.  A  bUl   to  amend  the  Internal 
Revenue  Code  of  1864  with  respect  to  lobby- 
ing by  certain  types  of  exempt  organizations- 
to  the  Committee  on  Ways  and  Means 
By  Mr.  EDWARDS  of  CallfomU: 
HJl.  13038   A  bUl  to  terminate  the  airlines 
mutual  aid  agreement;  to  the  Committee  on 
Intersute  and  Foreign  Commerce 

By  Mr.  FROEHLICH  (for  himself,  Mr. 
CONTK.  Mr  Cbokin,  Mr.  Baoman,  Mr. 
BLACKBuaN,  Mr.  Bitkkk  of  Massachu- 
setts. Mr.  Crakk,  Mr.  DmwuiSKi,  Mr. 
HuBEB,  Mr.  KiMp,  Mr  Kitchum,  Mr. 
LoTT.    Mr.    MiNSHALi    of    Ohio,    Mr. 
Osrr,    Mr     PAJaais,    Mr.    Rottbsklot, 
Mr.  Stxiceb  of  Arizona,  Mr.  Stugek 
of  Wisconsin.  Mr.  Stmms,  Mr.  Treen 
Mr.  Wtmam.  and  Mr.  Young  of  South 
Carolina) : 
H^.  12039.  A  bill  to  amend  the  Economic 
StabUlzatlon  Act  of  1970  to  exempt  ground- 
wood  and  chemical  papermaklng  pulps  from 
coverage  under  the  act;  to  the  Committee  on 
Banking  and  Currency. 
By  Mr.  MOSS: 
H.R.  12040.  A  bin  to  amend  the  Sectirltles 
Exchange  Act  of  1934  to  prevent  control  by 
foreign  persons  of  American  companies  en- 
gaged In  vital  Industries;  to  the  Committee 
on  Interstate  and  Foreign  Commerce 
By  Mr.  O'BRIEN : 
HJl.  13041.  A  bUl  to  amend  the  Economic 
StabUlzatlon  Act  of  1970  to  exempt  StabUlza- 
tlon   of    the    price    of    petrochemicals    from 
coverage  under  the  act;  to  the  Committee  on 
Banking  and  Currency. 


By  Mr.  RElD  of  New  York : 
HJl.  12042.  A  bUl  to  improve  the  conduct 
and  reguUtlon  of  Federal  election  campaign 
activities  and  to  provide  public  financing  for 
such  campaigns;  to  the  Committee  on  House 
Administration. 

By  Mr.  ROSE: 
HR.   13043.  A  bUl  to  prevent  further  In- 
creases in  1974  flue-ru.t^  tobacco  marketing 
quotas;  to  the  Comiriitu*  on  Agriculture 
By  Mr.  MATHLAS  of  California- 
HJl.   13044.  A  bm  to  modUy  section   201 
of  the  Flood  Control  Act  of  1962   (76  Stat 
1193)  to  change  the  name  of  the  lake  to  be 
created  by  such  project  from  Hidden  Lake 
to  Hensley  Lake;  to  the  Committee  on  Pub- 
lic Works. 

By  Mr.  PEPPER: 
H.R.  12045.  A  bill  to  Increase  the  produc- 
tion, transportation,  and  conversion  of  ooal 
as  a  source  of  energy:  to  the  (^ammlttee  on 
Intersute  and  Foreign  Commerce 
By  Mr   RIEGLE: 
HJl.  12(H6    A  bill  to  amend  the  Social  Se- 
curity  Act   to   establish    a   program  of  food 
allowances  for  older  .Mnerlcans;  to  the  Com- 
mittee on  Ways  and  Means 

By  Mr.  WHITEHrRST: 
HJl.  12047.  A  bii:  to  provide  assistance  to 
zoos  and  aquariums,  to  establish  standards 
Of  accredlUtlon  for   such   faculties    and  to 
establish  a  Federal  Zoological  and  Aquarium 
Board,  and  for  other  purposes:  to  the  Com- 
mittee on  Merchant  Marine  and  Fisheries 
By  Mr.  GAYD06 
H.   Con.   Res.   404.    Concurrent    resolution 
PWtalnlng  to  the  methods  used  on  animals 
in  research;    to  the  Committee  on  Science 
and  Astronautics. 


By  Mr.  PEPPER: 
H.  CTon.  Res   405   Conctirrent  resolution  ex- 

^^^^V^  ^"^  "'■  '^^  C<»gr««  that  the 
United  States.  Car^a,  Great  Britain,  West- 
em  Europe  and  Japan  should  act  in  concert 
--  re.-asLog  to  seii  essential  Industrial  and 
ro«l  products,  and  medicines  to  Arab  nations 

leum;   to  the  Committee  on  Foreign  Affairs. 
By  Mr   VEYSEY- 
H.  Con.  R«  406  Concurrent  resolution  ex- 

s,^^  t',^^  ''"'^  °'  '^^  Congress  with  re- 
spect to  the  urgent  need  for  reMorch  devel- 
opment and  demonstration  of  alten^te 
sources  of^energy;  to  the  Committee  on  ^^ 


PRIVATE  BILLS  AND  RESOLUTIONS 
Under  clause  1  of  mie  XXn,  pnvate 
DUls  and  reso.-ution5  were  introduced  and 
severally  referrec  as  follows: 

By  Mr   BROYHILL  of  Vlrctnla- 

I^vi^t^'t^.^   '''-'   '''  '^""^  ^'^^  °f  David 
Levi,  to  the  Committee  on  the  Judiciary 

By  Mr.  EDW.VRX>S  of  Alabama 
H^R.  12049.  A  bu:  for  ti:e  relief  of  Jack  k: 
McHenry;  to  the  Committee  on  the  Judiciary 

By  Mr   ROY  •'' 

H.R.  12050^  A  bUl  for  the  relief  of  WUnia 
Selle,  Gary  Selle,  and  Deborah  SeUe;  to  the 
Committee  on  the  Judiciary 

By  Mr.  SISK  • 
.f5f^  12051.  A  bUl  to  provide  for  the  rein- 
statement and  validation  of  U.S.  oU  and  eas 
lease  No.  U^140571,  and  for  other  purpo^ 
to  the  Committee  on  Interior  and  insuLr 
An  airs. 


The  Senate  met  at  10  ajn.  and  was 
called  to  order  by  Hon.  James  B.  Allen 
a  Senator  from  the  State  of  Alabama 


SENATE— .77zz/r.s</az/,  December  20,  1973 


PRAYER 

The  Chaplain,  the  Reverend  Edward 
L.  R.  Elson.  D.D.,  offered  the  following 
prayer: 

Almighty  God,  the  source  of  all  wis- 
dom and  strength,  grant  that  we  who 
shoulder  the  burdens  of  this  <3overnment 
may  accept  the  Christmas  promise  that 
•  the  government  shall  be  upon  His  shoul- 
der: and  His  name  shall  be  called  Won- 
derful Counselor,  the  Mightv  God  the 
E\erlastlng  Father,  the  Prince  of  Peace 
Of  the  increase  of  His  government  and 
peace  there  shall  be  no  end  •  •  •"(Isa- 
iah 9,  6,  7a) .  May  v  e  so  yield  ourselves  to 
His  spirit  that  the  promised  kingdom  of 
truth  and  rlghteou.sness  may  become 
the  kingdom  of  aU  mankind,  and  that 
He  shall  reign  forever  and  ever  Amen 


to  perform  the  duties  of  the  Chair  durlns  mv 
absence.  ' 

James  O.  Eastland, 
Presulent  pro  tempore. 

Mr.  ALLEN  thereupon  took  the  chair 
as  Acting  President  pro  tempore. 


^^\}^^\  An  act  to  postpone  the  Unple- 
mentotlon  of  the  Headstart  fee  schedu^ 

,1.^  K™^?."^r  ^^  "^^^^  subsequenUy 
signed  by  the  Vice  President. 


APPOINTMENT    OF    ACTING    PRESI- 
DENT PRO  TEMPORE 

The  PRESIDING  OFFICER.  The  clerk 
will  please  read  a  communication  to  the 
Senate  from  the  President  pro  tempore 
(Mr.  E>stland). 

The  second  assistant  legislative  clerk 
read  the  following  letter: 

U.S.  Skn.\tk, 

PRESnjKNT  PSO  TEMPOftK, 

Washington,  D.C..  December  20  1973 
To  the  Senate: 

Being  temporarily  absent  from  the  Senate 
on  official   duties,  I  appoint  Hon.  James  B. 
Allen,  a  Senator  from  the  State  of  Alabama. 
CXIX 368d— Part  33 


MESSAGE    Fl^OM    THE    HOUSE— EN- 
ROLLED BILLS  SIGNED 

A  message  from  the  House  of  Repre- 
sentatives, by  Mr.  Hackney,  one  of  its 
reading  clerks,  announced  that  the 
Speaker  had  affixed  his  signature  to  the 
following  enrolled  bills : 

S.  1435.  An  act  to  reorganize  the  govern- 
mental structure  of  the  District  of  Colum- 
bia, to  provide  a  charter  for  local  govern- 
ment in  the  District  of  Columbia  subject  to 
acceptance  by  a  majority  of  the  registered 
qualified  electors  In  the  District  of  Colum- 
bia, to  delegate  certain  leglslaUve  powers  to 
the  local  government,  to  Implement  certain 
recommendauons  of  the  Commission  on  the 
Organization  of  the  Ooverrunent  of  tiie  Dis- 
trict of  Columbia,  and  for  other  purposes- 
S.  1529.  An  act  to  authorize  the  Secretary 
of  the  Interior  to  enter  Into  agreements  with 
non-Federal  agencies  for  the  replacement  of 
the  existing  American  Palls  Dam,  Minidoka 
project,  Idaho,  and  for  other  purposes: 

S.  2493.  An  act  to  authorize  the  disposal 
of  slUcon  carbide  from  the  national  stock- 
pile and   the  supplemental  stockpile; 

HJl.  3334.  An  act  for  the  relief  of  Maria 
Lourdes  Rlos; 

HR.  3768  An  act  for  the  relief  of  Isabel 
Eugenia  Serrane  Maclas  Perrler; 

H  R.  7352.  An  act  to  amend  section  4082(C) 
of  title  18,  United  States  Code,  to  extend  the 
limits  of  confinement  of  Federal  prisoners- 
and 


THE  JOURNAL 

Mr.  MANSFIELD.  Mr.  President  I  ask 
unaiilmous  consent  that  the  reading 
w J^^  Journal  of  the  proceedings  of 
Wednesday,  December  19.  1973  be  dis- 
pensed with.  ' 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection,  it  Is  so  ordered. 


COMMITTEE    MEETINGS    DURING 
SENATE    SESSION 

Mr.  M-\NSFIELD  Mr.  President,  I  ask 
unanunous  consent  that  ail  committees 
may  be  authorized  to  meet  during  the 
session  of  the  Senate  today 

The  ACTING  PRESIDENT  pro  tem- 
pore. Without  objection.  It  Is  so  ordered. 

REPORT    OF    THE    D.M'GHTERS    OP 
THE  ANfERICAN  REVOLUTION 

Mr.  MANSFIELD.  Mr.  President  I  ask 
unanimous  consent  that  the  Senate  pro- 
ceed to  the  consideraUon  of  Calendar 
No.  613.  Senate  Resolution  221 

The  ACTING  PRESIDKNT  pro  tem- 
pore The  resolution  wlU  be  stated  by 
title. 

The  second  assistant  leglslaUve  clerk 
readasfoUows: 

S.  Res.  221,  authorlBlng  the  printing  of  the 
seventy-fifth  annual  report  of  the  National 


42656 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  197 S 


Society  of  the  Daugbt«n  of  tb«  American 
R«701utlon  as  a  S«ziat«  document. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Is  there  objection  to  the  present 
consideration  of  the  resolution? 

There  being  no  objection,  the  resolu- 
tion was  considered  and  agreed  to.  as 
follows : 

Reiolved,  That  the  Seventy-Ofth  Annuai 
R»port  of  the  NaUoaal  Society  of  the 
Daughters  of  the  American  Revolution  for 
the  year  ended  March  I,  1973,  be  printed, 
with  an  Uiustr&tlon,  as  a  Senate  document. 


NATIONAL      DIABETES      RESEARCH 
AND  EDUCATION  ACT 

Mr.  MANSFIELD.  Mr.  President  I 
move  that  the  Senate  proceed  to  the  con- 
sideration of  calendar  No.  629.  S.  2830. 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  question  Is  on  agreeing  to  the 
motion  of  the  Senator  from  Montana. 

The  motion  was  agreed  to. 

The  ACTINO  PRESIDENT  pro  tem- 
pore. The  bin  wlU  be  stated  by  title. 

The  second  assistant  legislative  clerk 
read  as  follows : 

3.  2830.  to  amend  the  Public  Health  Serv- 
ice Act  to  provide  for  greater  and  more  effec- 
tive efforts  In  research  and  public  education 
with  regard  to  diabetes  mellltus. 

The  ACTING  PRESIDENT  pro  tem- 
pore. Is  there  objection  to  the  present 
consideration  of  the  bill? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  bill. 

Mr.  SCHWEEKER.  Mr.  President,  the 
passage  of  the  National  Diabetes  Re- 
search and  Education  Act.  S.  2830  Is  a 
landmark  by  the  Congress  and  repre- 
sents a  major  first  step  in  dealing  with 
a  chronic  disease  which  afflicts  more  than 
5  mlUlon  Americans  It  will  be  the  first 
legislation  designed  to  deal  with  this 
major  health  problem.  Passage  of  8  2830 
will  assure  that  for  the  first  time  a  na- 
tional program  will  be  limugurated.  For 
some  time.  I  have  been  involved  In  efforts 
to  bring  this  issue  to  the  forefront  of 
congressional  activity  I  was  pleased  to 
introduce  the  first  Senate  bill  to  deal 
exclusively  with  diabetes,  and  on  Febru- 
ary 26.  1973.  I  chaired  the  first  hearings 
Into  the  problem. 

The  bill  recommended  by  the  Labor 
and  Public  Welfare  Committee  would 
provide  for  the  establishment  by  the 
Secretary  of  HEW  of  a  national  task 
force  on  diabetes  to  formulate  a  long- 
range  plan  to  combat  diabetes  The  task 
force  also  will  develop  a  prtjgram  to  ex- 
pand and  coordinate  the  activities  of  the 
National  InsUtute  of  ArthrltLs.  Metabo- 
lism a«id  Digestive  Diseases  with  re.<;pect 
to  diabetes  and  related  endocrine  and 
metabolic  diseases.  Coordination  with 
the  programs  of  other  research  Institutes 
of  the  National  Institutes  of  Health  is 
emphasized  The  report  and  recommen- 
dation of  the  task  force  will  be  the  basis 
for  the  Director  of  the  NIAMDD  to  sub- 
mit through  NIH  and  HEW  to  the  Presi- 
dent for  transmittal  to  Congress  a  report 
outlining  the  action  required  and  the 
staff  requirements  to  carry  out  the  plan 
with  a  request  for  such  additional  ap- 
propriations sls  may  be  needed. 

The  bill  requires  the  Director  of 
NIAMDD  to  establiih  such  programs  as 
may  be  necessary  In  cooperation  with 


other  Federal  health  agencies.  State,  lo- 
cal and  regional  public  health  agencies, 
and  nonprofit  agencies  for  the  control 
of  diabetes. 

The  Director  of  NIAMDD  is  to  provide 
for  the  development  of  research  and 
training  centers  to  be  established  geo- 
graphically on  the  basis  of  population 
density  so  that  satisfactory  dlabetjs 
teaching  for  both  professional  and  lay 
personnel  will  be  available  throughout 
the  Nation.  These  centers  will  conduct 
basic  and  clinical  research  into,  training 
In.  and  demonstration  of  advance  diag- 
nostic, prevention,  detection,  and  treat- 
ment methods  for  diabetes. 

Within  NIAMDD  the  bill  creates  the 
position  of  Associate  Director  for  Dia- 
betes who  wUl  be  responsible  for  pro- 
grams In  diabetes  In  the  Institute. 

The  Associate  Director  for  Diabetes 
will  act  as  chairman  of  an  Inter-Insti- 
tute Diabetes  MelUtus  Coordinating 
Committee  established  to  coordinate  the 
total  NIH  research  activities  relating  to 
diabetes.  The  committee  will  be  com- 
posed of  representatives  of  each  of  the 
research  Institutes  and  divisions  in  NIH 
Involved  in  diabetes  related  research. 
Finally  the  bill  requires  the  Secretary 
of  HEW  to  establish  an  Interagency 
Technical  Committee  of  Diabetes  Mel- 
Utus to  be  responsible  for  coordinating 
those  aspects  of  all  Federal  health  pro- 
grams and  activities  relating  to  diabetes 
mellltus.  Mr.  President,  may  I  emphasize 
again  my  strong  support  for  the  National 
Ettabetes  Research  and  Educaticxi  Act. 

Mr.  President,  the  need  for  a  national 
diabetes  program  as  embodied  In  S.  2830. 
the  National  Diabetes  Research  and 
Education  Act  of  1973  is  clear.  I  am 
especlaUy  pleased  that  the  Senate  has 
taken  the  Initiative  and  lead  In  inaugu- 
rating legislation  to  provide  for  a  massive 
national  effort  to  combat  diabetes. 

My  Interest  In  introducing  diabetes 
legislation  began  some  time  ago  and 
reached  fruition  on  Augiist  4.  1972,  when 
I  Introduced  S.  3880.  This  was  the  first 
legislative  proposal  in  recent  hlstorv  to 
address  Itself  to  the  problem  of  diabetes. 
I  was  prompted  to  Introduce  this  bill 
because  as  ranking  Republican  member 
of  the  Senate  Health  Subcommittee.  I 
was  becoming  increasingly  aware  that  as 
our  population  was  becoming  older,  fat- 
ter, more  affluent,  and  urbanized  the  in- 
cidence of  diabetes  was  increasing  at  an 
alarming  rate.  I  was  stunned  to  learn  it 
is  estimated  that  by  1980  1  In  5 
Americans  will  have  diabetes  or  its  trait, 
and  that  diabetes  is  the  second  or  third 
leading  caus§  of  death  in  the  United 
States  if  you  consider  it  Is  the  major 
factor  causing  many  chronic  and  dis- 
abling Illnesses.  These  illnesses  are  pri- 
marily cardio-vascular.  renal,  hyper- 
tensive and  neurological  Illnesses  The 
man  who  dies  of  a  heart  attack,  for  In- 
stance. Is  listed  In  the  death  statistics 
as  a  victim  of  heart  disease,  but  many 
times  he  has  actually  died  from  diabetes 
which  caused  the  heart  atuck  and  the 
vascular  disease  The  same  is  probably 
true  in  cases  of  kidney  disease,  stroke, 
and  so  forth. 

.^t  that  point,  it  became  clear  to  me 
that  we  needed  much  more  adequate  In- 
formation on  the  origin  of  diabetes.  Its 
effect*  on  the  human  body  and  the  best 


methods  of  treating  It  to  prevent  long- 
term  complications  from  developing.  In 
developing  my  legislation,  it  became 
more  and  more  apparent  that  a  vastly- 
expanded  diabetes  research  program  was 
needed  I  learned  that  diabetes  is  not  a 
reportable  disease.  Like  other  major 
diseases  it  should  be  studied  according  to 
population  and  geographical  area  so  the 
Impact  of  incidence  and  heredity  can  be 
noted.  With  the  discovery  of  Insulin,  dia- 
betics are  living  longer  than  ever  before. 
But  with  that  longe\'lty  has  come  com- 
plications. The  most  notable  Is  blindness, 
of  which  diabetes  Is  a  major  cause.  I 
found  one  of  the  tnily  tragic  ironies  of 
our  time  was  the  fact  that  diabetes  dom- 
inates the  medical  scene,  yet  little  was 
being  done  to  solve  its  mysteries. 

Therefore,  with  the  convening  of  the 
93d  Congress  on  January  4.  1973.  I  re- 
Introduced  my  bill  with  Improvements 
as  S.  17.  the  National  Diabetes  Research 
and  Education  Act  of  1973.  to  expand 
and  coordinate  the  research  effort 
against  diabetes.  It  was  also  designed  to 
advance  patient,  professional,  and  pub- 
lic education  activities  to  alert  Ameri- 
csins  to  early  Indications  of  diabetes,  and 
emphasize  the  significance  of  early  de- 
tection, proper  control,  and  the  compli- 
cations which  evolve  from  the  disease. 

On  February  26.  1973,  I  was  happy  to 
chair  hearings  of  the  Senate  Health  Sub- 
committee on  S.  17  and  S.  648  introduced 
by  Senator  Gale  McGee.  This  hearing 
was  the  first  in  the  history-  of  the  U.S. 
Senate  to  deal  with  diabetes.  At  that 
time,  a  broad  cross  section  of  witnesses 
reiterated  the  great  need  for  diabetes 
legislation.  Experts  in  the  field  pointed 
again  and  again  to  studies  which  show 
there  Is  a  9  percent  increase  each  year 
In  the  diabetic  population  which  is  an 
accelerating  increase  because  each  year 
the  diabetic  population  becomes  9  per- 
cent larger.  An  important  factor  In  this 
Increase  are  our  diabetic  children.  In 
1921.  diabetic  children  died.  After  the 
discovery  of  Insiilin  In  1921.  children  and 
young  adults  survived,  grew  to  maturity 
and  have  been  producing  ciiildren  with 
diabetes  or  with  a  strong  inherited  fac- 
tor for  diabetes.  There  are  now  approxi- 
mately 6  to  8  million  diabetics  with  a 
chance  of  producing  diabetic  children. 

Last  October,  the  Senate  Appropria- 
tions Committee,  on  which  I  serve,  ap- 
proved a  series  of  my  amendments  to 
Increase  Federal  funding  for  diabetes  re- 
search as  part  of  H.R.  8877.  the  Labor/ 
HEW  AppropriaUons  bill  for  fiscal  year 
1974.  These  provisions  were  included  in 
final  passage  of  this  legislation  and  in- 
cluded a  recommendation  that  the  Na- 
tional Institutes  of  Health  utilize  its  re- 
sources for  InterlnsUtute  studies  of  dia- 
betes, since  diabetes  afflicts  the  eyes, 
heart,  brain,  and  muscular  structure.  The 
committee  recommended  an  Increase 
over  1973  operating  levels,  including  a 
significant  increase  In  funding  for  dia- 
betic retlairf)athy.  an  increase  for  the 
National  Heart  and  Lung  Institute,  a 
significant  portion  of  this  to  be  used  for 
expanded  diabetes  vascular  research 
and  an  increase  for  the  National  Insti- 
tute of  Arthritis.  Metabolism,  and  Diges- 
tive Diseases  In  approving  this  $22  8  mil- 
lion Increase,  the  committee  gave  Its  sup- 
port to  NIAMDD  efforts  to  support  dla- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


426.-7 


b^-tes  research  centers,  .^nd  speclcally 
provided  additional  lund.s  for  the  estab- 
Li.^liment  of  diabet.es  renters  throughout 
the  Nation  The  committee  also  accepted 
my  recommendation  that  a  new  position 
of  .A..s.soclaie  Director  for  Diabete?  be  cre- 
at<'d  within  the  Ln.stltute  During  markup 
on  H.R.  8877.  the  committee  also  ac- 
cepted my  recommendation  that  a  com- 
rsTJttee  witiun  the  National  In.'=titute  of 
Health,  comixjsed  of  representiitives  of 
eai-h  of  the  In.stitute.<  concerned  with 
health  problems  rel.aing  to  diabetes  be 
created  Tlie  committee  would  be  chaired 
by  the  A.ssociate  Director  for  Diabetes  in 
NIAMDD. 

I  was  particularly  pleased  that  the  Ap- 
propriations Committee  supported  my 
recommendation  that  the  Director  of  the 
National  Institute  of  Arthntis.  Metabo- 
lism, and  Dig&stive  Diseases  create  a  po- 
sition for  an  Associate  Director  of  Dia- 
betes, a  provision  included  in  the  pending 
bill.  In  accepting  my  recommendation, 
the  committee  commented; 

It  Is  felt  that  because  of  the  wide  range  of 
side  effects  from  diabetes  that  there  should 
be  programs  on  an  Interlnstltute  basis  to 
research  the  effects  within  the  appropriate 
Institute. 

Further,  the  committee  recommended 
that  the  Associate  Director  for  Diabetes 
chair  the  Interlnstltute  Committee 
which  was  also  included  in  the  bill  by 
the  labor  and  Public  Welfare  Committee. 

Mr.  President.  I  also  vns,h  to  point  out 
that  the  Committee  stated  in  its  report. 

Research  in  diabetes  Is  focused  on  the  pre- 
vention of  such  complications  of  the  dl.sease 
as  accelerated  hardening  of  the  arteries,  pre- 
mature heart  disease,  kidney  failure  and 
bimdnesa.  Diabetic  retinopathy  a.'Hlcts  ab-ut 
one-third  of  the  long-term  diabetes  patients 
and  Is  the  second  leading  c-ause  of  biindnes." 
In  the  United  States  today.  Because  of  the 
national  Impact  of  all  aspects  c.f  diabetes, 
the  Institute  Is  embarking  on  a  pr-ieram  of 
support  for  Diabetes  Research  Centers  It 
also  supports  a  wide  range  of  other  metabolic 
diseases,  including  cystic  fibrosis.  The  Com- 
mittee supports  this  new  initiative  and  has 
provided  for  the  estabUshment  of  Dlabetee 
Centers  throughout  the  nation  to  aid  In 
treating  and  caring  for  a  condition  that  has 
such  wide  ranging  social  and  economic 
effects. 

Recognizing  the  Importance  of  these 
recommendations,  the  Senate  conferees 
Included  In  their  report  the  following 
statement: 

The  Conferees  are  aware  tr.at  diabetes  is  a 
prime  example  of  a  dUea.-^e  which  affects 
the  work  of  many  of  the  Institutes.  It  may 
afflict  the  eyes,  heart,  brain,  and  muscular 
and  vascular  systems.  The  Ck>nference  urges 
the  NIH  to  establish  mechanisms  to  assure  a 
coordinated  program  of  research  by  the  In- 
stitutes concerned  with  the  various  aspects 
of  diabetes. 

This  brings  to  mind  the  entire  question 
of  the  economic  Impact  of  diabetes  The 
loss  from  disability  and  premature  death 
and  sickness  In  the  diabetic  population 
Is  conservatively  considered  to  be  at  least 
S2  bllUon  annually  Yet  we  have  spent 
less  than  $10  million  annually  In  support 
of  all  aspects  of  research  In  diabetes. 
During  the  Senate  hearing  on  my  bill,  it 
was  stated  that  we  are  spending  apprfixl- 
mately  $1  60  per  diabetic  per  yesir  A 
statement  prepared  bv  th^  National  In- 
stitute of  Arthritis.  Metabolism  and  Di- 


gestive Diseases  for  initial  presentation 
to  the  House  Appropriatlon.s  Committee 
last  spring  contained  the  sentence: 

Today,  with  pnjper  treatment,  moet  dia- 
betics can  lead  a  normal  life 

Mr.  President.  I  have  received  numer- 
ous letters  from  physicians,  biomedical 
scientists,  researchers  in  the  field  of  dia- 
betes and  diabetics  challenging  that 
statement.  Some  con.slder  It  "an  extra- 
ordinary lack  of  imdersLanding."  Others 
hiive  referred  to  i:  a.-  a:  oc.-:  debatable 
and  at  lea,st  incorrect." 

Mj-  point  is  that  from  the  Federal  per- 
spective diabetes  has  been  neglected.  The 
customar,-  method  in  recent  years  to 
create  an  affirmative  program  involving 
a  greater  national  commitment  has  been 
to  allocate  more  money  to  the  task.  In 
the  case  of  specific  health  problems,  the 
recommendation  is  often  "more  money 
for  research."  Since  adequate  funds  were 
not  available,  research  in  diabetes  was 
neglected.  Consequentlj',  our  knowledge 
of  the  causes  or  origins  of  diabetes  and 
its  long-term  effects  on  the  human  body 
is  defflcient. 

Mr.  President,  as  serious  as  the  prob- 
lem of  diabetes  is  now,  there  is  every  In- 
dication that  It  wUl  become  even  more 
so  In  the  years  ahead.  We  cannot  legis- 
late a  cure  for  diabetes,  but  we  can  cer- 
tainly establish  a  framework  for  a  more 
effective  diabetes  program  and  pro\-ide 
the  support  necessary  to  carry  out  such 
a  program. 

Mr.   JAVTTS.   Mr.   President,  I   urge 
the  Senate  to  support  the  "National  Dia- 
betes Research  and  Education  Act,"  an 
original  bill  reported  by  the  Senate  Com- 
mittee on  Labor  and  Public  Welfare — of 
which  I  am  the  ranking  minority  mem- 
ber— which   combines   and   incorporates 
the  best  features  of  diabetes  legislation 
carefully  considered  by  the  committee. 
The  needs  of  diabetic  patients  in  the 
United  States  are  not  being  met  at  the 
present  time  and  I  believe  these  needs 
cannot  be  met  in  the  future  unles.s  the 
Federal  Ooveniment  expands  Its  leader- 
ship role  in  this  area  and  provides  the 
financial  support  that  is  essential  to  com- 
batting the  problems  related  to  diabetes. 
Diabetes   meUitus  is   a  major  health 
problem  in  the  United  States.  The  disease 
afflicts   approximately   5.000.000   Ameri- 
Icans  and  there  are  about  325.000  new 
cases  of  diabetes  diagnosed  each  year. 
It  is  the  fifth  leading  cause  of  death  from 
disease,  and  35.000  deaths  are  attributed 
to  it  annually.  Diabetes  is  the  real  under- 
l>'ing  cause  of  many  thousands  of  deaths 
that   are   ofQclally    counted   imder   the 
heading  of  "heart  disease,"  "stroke,"  and 
"kidney  disease."  It  is  the  second  leading 
cause  of  new  cases  of  blindness,  and  it 
produces  blindness  almost  20  j-ears  ear- 
lier than  the  leading  cause  of  blindness. 
The  complications  of  diabetes  mellltus 
lead  to  many  other  serlotis  health  prob- 
lems and   uncontn.)l]ed  diabetes  signifi- 
cantlj'  shortens  life  expectancy. 

To  establish  the  appropriate  national 
commitment  to  launch  an  attack  on  dia- 
betes— one  of  the  most  i.-nportant  chronic 
diseases  Uoat  afaicti  mankind — the  bill 
provides: 

First  A  ta-sk  force  to  develop  a  plan 
to  combat  diabetes  under  the  National 


In-'^tltute  of  Health  Is  established  in 
HEW  The  plan  to  be  developed  within  9 
months,  will  include  re^search,  drug  de- 
velopment, field  studies,  manpower  train- 
ing and  data  analyses. 

Second  The  task  force  is  tc^  be  com- 
posed of  10  persons — 6  experts  and  4  con- 
sumers— 2  of  whom  must  be  parents  of 
children  with  diabetes— and  $500,000  Is 
authorized  for  the  task  force 

Third.  The  Arthritis  Institute  at  NIH 
Is  also  required  to  establish  a  prevention 
and  control  p-opram  t/D  combat  diabetes 
and  $17.5  million  over  3  years  Is  author- 
ized for  this  purpose. 

Fourth  The  Arihritls  Institute  is  re- 
quired to  establish  research  and  training 
centers  of  excellence  throughout  the 
United  States  and  $45  million  is  author- 
ized for  this  purpose  over  3  years. 

I  urge  my  colleagues  to  support  S.  2830 
and  provide  the  necessary  funding — a 
total  of  $63  million  over  3  years — to  as- 
sure the  Federal  Government  mounts  an 
effective  attack  on  diat>etes  and  estab- 
lishes the  necessary  coordinated  research 
effort  in  the  field  of  diabetes — as  well  as 
in  the  closely  related  fields  of  metaboU&m 
and  endocrinology  from  which  much  of 
the  newer  knowledge  concerning  the 
mechanisms  underlying  the  disease  is  ex- 
pected to  evolve. 

Mr.  KENNEDY.  Mr.  President.  I  rise  In 
strong  support  of  the  Diabetes  Research 
and  Education  Act  now  pending  before 
the  Senate.  This  legislation  is  essentia! 
if  the  Nation  is  to  effectively  cop>e  with 
the  magnitude  and  severity  of  diabetes. 
Following  the  discovery  of  insulin,  vir- 
tually everyone  believed  that  a  cure  for 
diabetes  had  been  discovered  and  that 
diabetes  had  been  eliminated  as  a  sig- 
nificant medical  problem.  Indeed,  the 
physicians  of  the  1920s  were  unaware 
that  many  of  the  patients  whose  lives 
were  saved  by  insulin  woiild  develop  the 
serious  compUcations  involving  the  eyes, 
kidneys,  heart,  nervous  system,  skin,  and 
blcxxl  vessels  that  we  now  recognize. 

The  medical  community  adopted  an 
unrealistically  optimistic  point  of  view. 
"Follow  your  diet  and  take  your  instillii 
every  day,  and  you  will  lead  a  normal^ 
life."  Even  after  the  long-term  compli- 
cations of  diabetes  were  recognized  and 
even  today  there  is  a  tendency  to  present 
an  overlj-  optimistic  picture  of  the  prob- 
lems facing  the  patient  with  diabetes. 
Although  this  is  understandable  from 
the  standpoint  of  the  doctor  relating  to 
the  individual  patient,  it  has  not  moved 
diabetes  into  its  proper  place  in  the 
public  eye  in  comparison  to  some  of  the 
more  dramatic,  though  far  less  prevalent, 
diseases. 

Mr.  President,  this  Nation  is  pre- 
eminent in  biomedical  research.  And  to 
a  considerable  extent  that  preeminence 
is  a  direct  result  of  the  success  of  the 
National  Institutes  of  Health.  The  Ar- 
thritis Institute  of  the  Nm  has  become 
the  central  focus  for  diabetes  research 
and  training.  The  committee  s  bill  is  de- 
signed to  enhance  the  resources  of  the 
Arthritis  Institute  In  order  to  assure  a 
more  substantial  and  hopefully  more 
effective  program  to  combat  diabetes. 
The  Health  Subcommittee  conducted 
hearings  la^t  February  on  S.  17  and 
S  648.  S   17  was  introduced  by  the  rank- 


42658 


CONGKl    MONAL  RBOORD  —  SEN  ATE 


December  20,  197 S 


ing  minority  member  of  my  subcommit- 
tee and  my  friend  and  colleague.  Senator 
ScHWKixra.  And  S.  648  was  Introduced 
Jointly  by  the  distinguished  Senator 
Oalx  McGek  and  the  distinguished  chair- 
man of  the  Laix>r  and  Public  Welfare 
Committee.  Senator  WiixiAMs. 

The  bill  now  before  the  Senate  Ls  an 
original  bill  which  mcorporates  the  pro- 
vlsiorLs  from  both  3.  17  and  8.  648 

The  principal  features  of  the  bill  are 
as  f oUows :  A  task  force  is  authorized  for 
the  purpose  of  creating  a  national  plan 
to  combat  diabetes  to  be  carried  out  by 
the  National  Institute  of  Arthritis  and 
Metabolic  Diseases.  Tbe  task  force  Is 
comprised  of  10  mdlviduals.  6  of  whom 
art  to  be  experts  and  4  of  whom  are  to 
be  consumers.  The  plan  of  the  task  force 
IS  to  be  completed  in  9  months  and  is  to 
include  recommendations  respecting  bio- 
medical research,  drug  development,  field 
studies,  manpower  training,  and  data 
analyses. 

In  addition,  the  bill  requires  the  In- 
stitute to  establish  prevention  and  con- 
trol programs  to  combat  diabetes.  These 
programs  are  to  be  analogous  to  the  pre- 
vention and  control  programs  which  my 
committee  has  previously  included  in  the 
Conquest  of  Cancer  Act  and  the  Nation- 
al Heart.  Lung.  Blood,  and  Blood  Vessel 
Act.  For  these  purposes  the  bill  author- 
izes $17  5  million  on  a  3-year  period. 
Finally.  Mr.  President,  the  bill  requires 
the  Institute  to  establish  research  and 
training  centers  of  excellence  throughout 
the  United  States  to  unprove  research, 
training,  and  treatment  programs  in  dia- 
betes. In  this  regard  the  bill  authorizes 
a  total  of  $45  million  of  a  3-year  period. 
The  total  cost  of  this  biU.  Mr  President, 
is  $63  million  which  I  believe  to  be  a 
prudent  amount  given  the  fact  that  this 
dread  disease  affects  10  million  Ameri- 
cans. And  the  incidence  of  diabetes  Is  In- 
creasing The  complications  of  diabetes 
are  too  frequently  catastrophic.  For  ex- 
ample, many  diabetics  suffer  blindness  as 
a  consequence  of  the  disease  And  a 
statistical  projection  Indicates  that  this 
complication  will  soon  become  the  No  1 
cause  of   blindness   in   the  Nation. 

Mr.  President,  every  witness  who  tes- 
tified before  my  subcommittee  supported 
necessity  for  legislation  In  this  area,  ex- 
cept the  administration.  After  having  re- 
viewed the  hearmg  record  and  after  hav- 
ing analyzed  the  administration's  bud- 
get request  for  the  National  Institutes 
of  Health  for  the  last  several  years,  I 
cannot  accept  the  administration's  argu- 
ment. As  a  matter  of  fact.  I  am  mcreas- 
ingly  concerned  that  the  administra- 
tion's budget  priorities  may  very  well 
seriously  restrict  and  harm  the  bio- 
medical research  and  training  programs 
of  several  of  the  Institutes  at  the  Na- 
tional Institutes  of  Health,  including 
NIAMD 

Lastly.  Mr  President.  I  want  to  com- 
mend the  fine  cooperation  and  diligent 
effort  which  have  been  made  by  my  col- 
leagues on  this  measure  Senators 
ScHwnxzR.  McOf«.  and  Williaj*s  have 
been  pioneers  in  this  effort.  They  de- 
serve great  credit  for  their  effort.  I  be- 
lieve this  to  be  an  excellent  bill  And. 
as  chairman  of  the  Senate  Health  Sub-^ 
committee.  I  urge  its  adoption. 


Mr.  McOEE.  Mr.  President,  today  the 
Senate  will  be  considering  S.  2830.  a  bill 
which  the  distinguished  Junior  Senator 
from  Pennsylvania  (Mr.  Schwxixm)  and 
I  Introduced  to  launch  a  nationwide  at- 
tack on  diabetes. 

My  dlstlngiilshed  colleague  and  I  have 
been  Joined  by  30  other  Senators  in  the 
sponsorship  of  this  legislation. 

It  is  our  hope  that  the  Senate  could 
move  quickly  on  this  leglslaUon.  We 
could  lose  valuable  ground  already 
gained  in  coming  to  grips  with  this  dis- 
ease if  we  do  not  provide  the  resources 
necessary  to  carry  on  the  research  which 
has  brought  us  to  the  brink  of  significant 
breakthroughs. 

Diabetes  Is  a  major  health  problem  in 
our  Nation,  alBlctlng  some  5  to  10  mii- 
lion  Americans  Each  year  325,000  new 
cases  are  diagnosed.  Although  35.000 
deaths  are  officially  attributed  annually 
to  the  disease,  diabetes  is  the  underlying 
cause  of  many  thousands  of  deaths  that 
are  ofQcially  classified  under  heart  dis- 
ease, stroke,  and  kidney  disease.  It  is  the 
second  leading  cause  of  blindness,  pro- 
ducing blindness  nearly  20  years  earlier 
than  glaucoma,  the  leading  cause 

With  this  In  mind,  there  Is  consider- 
able optimism  that  a  discovery  of  a  cure 
for  the  dlsea.se  in  the  foreseeable  future 
will  be  found.  If  we  devote  the  necessary 
resources  to  such  a  search  This  hope  Is 
not  based  upon  a  single  research  project, 
but  on  the  work  of  a  number  of  American 
scientists  In  California.  Massachusetts. 
Minnesota,  Missouri.  New  York,  Penn- 
sylvania,   and    Texas. 

Probably  the  most  promising  avenue 
of  research,  according  to  the  American 
Diabetes  Association.  Is  the  work  on  the 
transplantation  of  beta  cells,  the  cells 
of  the  pancreas  which  produce  insulin. 
Some  diabetics  seem  to  have  too  few  beta 
cells  to  meet  the  insulin  demand  of  their 
tKxiles. 

Others  may  have  a  normal  nimiber, 
but  the  cells  do  not  release  enough  in- 
sulin Still  others  do  not  adequately  uti- 
lize the  insulin  their  beta  ceUs  produce. 
The  goal  of  the  transplants  is  to  restore 
the  body's  ability  to  manufacture  and 
release  the  hormone  In  sufficient 
amounts. 

Another  area  of  research  being  imder- 
taken  In  several  laboratories  focuses 
upon  new  systems  for  treatment  of  dia- 
betics that  will  Insure  normal  blood 
sugar  levels  on  a  moment-to-moment 
basis.  The  goal  is  to  produce  an  artificial 
pancreas  or.  more  acciuately,  an  artifi- 
cial beta  cell,  the  insulin -producing  cell 
of  the  pancreas. 

Once  again,  according  to  the  American 
Diabetes  Association,  two  devices  already 
have  been  developed  which  would  be 
components  of  such  an  artificial  beta  cell 
that  would  regulate  the  blood  sugsu-  au- 
tomatically In  diabetics  as  It  is  done 
physiologically  in  nondlal)etics. 

One  of  these  Is  a  small  Implantable 
sensor  capable  of  measuring  the  blood 
sugar  continuously,  Animal  studies  are 
underway  now  to  determine  the  accu- 
racy, sensitivity  and  longevity  of  this 
component.  The  other  is  a  minicomputer 
that  can  be  programed  to  deliver  insu- 
lin when  the  blood  sugar  rises  and  glu- 
cose when  the  blood  sugar  falls.  As  soon 


as  this  j>hase  Is  completed,  hopefully  by 
mid-l&74,  trials  will  be  begim  in  human 
patients. 

The  computer  and  the  sensor  would  be 
linked  with  a  power  supply,  an  Insulin 
pump  and  a  refUlable  insulin  reservoir 
in  a  totally  Implantable  system  It  Is  con- 
ceivable that  such  an  artificial  beta  cell 
would  be  available  to  diat>etlC8  by  1976. 
Thus,  with  continued  research  scien- 
tists believe  that  Insulin -taking  diabetics 
may  be  relieved  of  the  necessity  for  daily 
Injections  of  the  hormone  sooner  than 
many  people  thought  possible. 

Another  area  of  research  has  revealed 
the  possibility  that  what  some  diabetics 
Inherit  Is  the  tendency  to.  first.  l>ecome 
Infected  with  a  specific  virus,  and.  sec- 
ond, to  respond  to  that  virus  with  a  spe- 
cific reaction,  such  as  becoming  diabetic. 
Here  again,  the  American  Diabetes 
Association  reports  that  this  raises  the 
possibility  that  as  the  genetics  of  diabetes 
are  studied  and  the  knowledge  of  Its  re- 
lationship to  viral  infection  lncrea.sed. 
It  would  be  possible  to  prevent  diabetes 
by  Immunizing  the  individual  against 
certain  viruses 

Yet.  In  spite  of  the  critical  need  to  pro- 
vide adequate  resources  for  continued 
research  In  finding  a  cure  for  the  disease 
and  in  spite  of  the  fact  that  we  stand 
on  the  brink  of  significant  break- 
throughs, the  administration  has 
launched  a  Oovemment  spending  pro- 
gram which  drastically  cuts  kjack  our 
medical  research  programs. 

Today  we  are  spending  a  maximum  of 
only  $1  60  per  dlabeUc  per  year  In  this 
country  on  research  With  the  projected 
administration  cutbacks  In  medical  re- 
search, the  sum  will  drop  below  $1  per 
diabetic  per  year.  In  1969,  for  example, 
we  spent  $5.9  million  on  diabetes  re- 
search. In  terms  of  1969  dollars,  only  $4 
million  was  spent  in  fiscal  1973. 

This  diminution  In  fxmding  for  re- 
search Ls  very  detrimental  to  our  efforts 
to  find  a  cure.  Funding  cuttjecks  hurt  in 
the  areas  of  research  and  training  fellow- 
ships for  doctors  who  would  specialize 
in  work  with  diabetics  where  the  fimd- 
Ing  for  such  programs  is  already  entirely 
Inadequate.  These  people  who  are  con- 
ducting the  research  projects  cannot  go 
anywhere  else  for  funding  because  there 
Is  no  diabetes  fund  like  the  Heart  F^md 
or  the  Cancer  Fund.  The  tragedy  Is  that 
untold  millions  of  Americans  will  pay 
the  price  for  a  lack  of  wisdom  and  fore- 
sight on  the  part  of  the  Federal  Gtovem- 
ment  in  unleashing  our  resources  to  find 
a  cure  for  diabetes. 

Under  Senator  Schwiikers  and  my 
bill.  $17.5  million  would  be  authorized 
for  a  3-year  period  for  diabetes  epide- 
miology prevention  and  control  These 
funds  will  be  used  In  an  effort  to  halt  the 
growing  incidence  of  diabetes  through 
prevention,  control,  diagnosis,  and  treat- 
ment of  diabetes  In  children. 

In  addition.  $45  million  would  be  au- 
thorized under  our  bill  to  establish  a  to- 
tal of  15  national  diabetes  research  and 
training  centers.  These  centers  would  be 
located  geographically  around  the  coun- 
try by  population.  The  centers  would  en- 
gage in  basic  reaearca  and  training  of 
physicians  and  allied  health  persormel. 
Another  function  would  be  one  of  public 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


426.59 


education.  It  Is  hoped  that  eventually 
some  50  centers  could  be  established  with 
comparable  funding. 

In  the  estimation  of  Senator  Schwhk- 
ER  and  myself,  we  believe  the  total  fund- 
ing package  of  $62.5  million  Is  very 
modest  when  compared  to  funding  for 
cancer  research,  and  also  heart  and  lung 
dlsea.se  under  recently  ptissed  legislation. 
In  essence,  under  our  bill,  an  attack  on 
diabetes  will  be  launched  on  four  fronts: 
resesLrch,  professional  education,  patient 
education,  and  public  education  and  de- 
tection. 

Patient  education  is  Important  to  keep 
diabetics  fully  informed  on  the  need  for 
the  methods  of  proper  mtmagement  of 
the  disease. 

Professional  education  is  important  to 
keep  physicians  and  allied  health  per- 
sonnel abreast  of  the  latest  devel(H)ments 
in  order  to  assure  continuing  improve- 
ment in  the  care  and  treatment  of  pa- 
tients with  diabetes. 

Public  education  and  detection  are 
Important  to  increase  public  imder- 
standlng  and  awareness  of  the  problem, 
and  to  discover  the  unknown  diabetic 
and  alert  him  to  the  need  for  proper 
treatment. 

And.  of  course,  research  is  important 
to  learn  more  about  the  nature  and 
causes  of  diabetes  and  its  care  and  treat- 
ment. The  ultimate  goal  is  to  discover  a 
cure  for  and  prevention  of  the  disease. 
The  bill  would  focus  efforts  more 
sharply  on  the  problems  of  diabetes  with 
not  only  Increased  emphasis  within  the 
National  Institutes  of  Health,  but  also 
with  significant  Increased  funding.  The 
allocation  of  funds  for  the  national  cen- 
ters in  the  four  areas  of  concentration 
would  be  determined  by  the  national 
task  force  which  is  created  in  the  bill, 
together  with  the  Director  of  NIH.  The 
task  force  would  be  composed  of  10 
eminently  qualified  persons.  6  of  whom 
would  be  scientists  and  physicians  and 
4  from  the  general  public. 

It  is  our  hope  that  the  Senate  wUl  move 
quickly  on  what  we  believe  to  be  a  very 
critical  piece  of  leglslaUon.  We  believe 
our  bill  to  be  sound  in  Its  approach  and 
one  which  can  enable  us  to  attack  the 
disease  In  a  more  adequate  manner. 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  bill  is  open  to  amendment.  If 
there  be  no  amendment  to  be  proposed, 
the  question  Is  on  the  engrossment  and 
third  reading  of  the  bill. 

The  bill  <S.  28301  was  ordered  to  be 
engrossed  for  third  reading,  was  read  the 
third  time,  and  passed,  as  follows : 

Be  it  enacted  by  the  Senate  and  House 
of  Representatives  o/  the  United  States  of 
America  in  Congress  assembled.  That  this 
Act  may  be  cited  as  the  -National  Diabetes 
Research  and  Education  Act". 

FINDINGS  AND  DSCLAKATION  OF  PUKP08X 

8«c.  a.  (a)  The  Congress  hereby  Onds  and 
declares  that — 

(1)  diabetes  mellltus  Is  a  major  health 
problem  In  the  United  States; 

(2)  diabetes  mellltus  is  the  fifth  leading 
cause  of  death  from  disease  and  the  second 
leading  cause  of  blUidneas  In  the  United 
SUtes; 

(3)  uncontrolled  diabetes  mellltus  signifi- 
cantly decreases  life  expectancy; 

(4)  the  citizens  of  the  United  States  do 
not  hare  a  full  understanding  of  the  nature 
and  Impact  of  diabetes  mellltus; 


(6)  there  is  convincing  evidence  that  the 
known  prevalence  of  diabetes  melllttos  has 
increased  dramatically   In   the   past   decade; 

(6)  the  determination  of  the  meet  eflectlve 
program  for  discovering  the  mag:.;iude  of 
the  disease,  its  causes,  cures,  and  treatments 
must  be  given  Immediate  attention, 

(7)  there  Is  great  poLentLii  for  advance- 
ment against  diabetes  mellltus  in  the  Na- 
tional Institute  of  Arthritis,  Metabolism,  and 
Digestive  Diseases,  of  National  Institutes  of 
Health  in  concert  with  public  and  private 
organizations  capable  of  necessa.ry  research 
and  public  education  In  diabetes  meUltus 
and 

(8)  the  establishment  of  regional  diabetes 
research  and  training  centers  throughout  the 
country  is  e^^eatlal  for  the  development  of 
sclentlflo  information  and  appropriate  ther- 
apies to  deal  with  diabetes  mellltus. 

(b)  It  Is  the  purpose  of  this  Act  to  expand 
the  authority  of  the  National  Institute  of 
Arthritis,  Metabolism,  and  Digestive  Diseases 
la  order  to  advance  the  national  attack  on 
diabetes  meUltus. 

OIABZTES  PROGRAM 

Sbc.  3.  Part  D  of  title  IV  of  the  Public 
Health  Service  Act  (42  Ufi.C.  201 )  Is  amended 
by  adding  at  the  end  thereof  the  following 
new  sections: 

"NATIONAL  TASK  FORCE  ON  DIABXTSS 

"Sec.  436.  (a)  The  Secretary  within  sixty 
days  after  the  date  of  enactment  of  this  sec- 
tion shsai  establish  a  National  Task  Force  on 
Diabetes  (hereinafter  referred  to  as  the  task 
force)  to  formulate  a  long-range  plan  to 
combat  diabetes  meUltus.  Such  plan  shall 
develop  recommendations  for  (1)  the  utUl- 
zatlon  and  organization  of  national  re- 
sources for  that  purpose,  and  (2)  conducting 
a  comprehensive  study  and  survey  Investigat- 
ing the  magnitude  of  diabetes  melUtus,  Its 
epidemiology.  Its  economic  and  social  conse- 
quences, and  an  evaluation  of  available 
scientific  Information  and  the  national  re- 
sources capable  of  dealing  with  the  prob- 
lem. Such  plan  shall  also  Include  related 
endocrine  and  metabolic  diseases  and  basic 
biologic  processes  and  mechanisms,  the  bet- 
ter understanding  of  which  is  essential  to  the 
solution  of  the  problem  of  diabetes  mellltus. 
"(b)  The  task  force  shall  also  develop  a 
program  to  expand.  Intensify,  and  coordi- 
nate the  activities  of  the  National  Institute 
of  Arthritis.  Metabolism,  and  Digestive  Dis- 
eases respecting  diabetes  mellltus  and  re- 
lated endocrine  and  metabolic  diseases.  Such 
program  shaU  be  coordinated  with  the  other 
programs  conducted  or  administered  by  the 
research  Institutes  of  the  National  Institutes 
of  Health  to  the  extent  that  such  Institutes 
have  responsibility  respecting  such  diseases. 
The  program  shall  provide  for — 

"(i)  Investigation  in  the  epldemlologv. 
etlologj-,  prevention,  and  control  of  diabetes 
mellltus.  Including  Investigation  Into  the 
social,  environmental,  behavioral,  nutri- 
tional, biological,  and  genetic  determinants 
and  Influences  Involved  In  the  epldemlologj-. 
etiology,  prevention,  and  control  of  diabetes 
mellltus; 

"(2)  studies  and  research  Into  the  basic 
biological  processes  and  mechanisms  involved 
in  the  underlying  normal  and  abnormal 
phenomena  associated  with  diabetes  meUltus 
Including  abnormalities  of  the  skin,  gastro- 
intestinal tract,  kidneys,  eyes,  and  nervous 
system,  and  shall  also  include  evaluation  of 
Influences  of  other  endocrine  hormones  on 
the  etiology,  treatment,  and  oompUcatlons 
of  diabetes  mellltus; 

"(3)  research  Into  the  development,  trial, 
and  evaluation  of  techniques  and  drugs  used 
In.  and  approaches  to,  the  diagnosis,  treat- 
ment, and  prevention  of  diabetes  meUltus; 
"(4)  establishment  of  programs  that  wUl 
focus  and  apply  sclenUflc  and  technological 
efforts  Involving  bl<«oglca]  phrsira:,  and  en- 
gineering science  to  aU  faoeu  of  diabetes 
mellltus; 


"(6)  establishment  ol  programs  for  the 
conduct  and  dlrectton  of  fleld  studies,  large- 
scaie  testaig  and  evaluation,  and  demonstra- 
Uon  of  preventive,  diagnostic,  therapeutic, 
rehabUlt*tlve,  and  control  approaches  to  dia- 
betes melUtus; 

"(6)  the  education  and  training  of  scien- 
tists, clinicians,  educators,  and  allied  health 
personnel,  in  the  fields  and  specialties  req- 
uisite to  the  conduct  of  programs  respect- 
ing diabetes  meUltus;  and 

"(7)  a  system  for  the  coUectlon.  analysis 
and  dissemination  of  all  data  useful  in  the 
prevention,  diagnosis,  and  treatment  of  dia- 
betes meUltus. 

(c)  In  the  development  of  the  plan,  re- 
quired under  subsection  (a),  attention  will 
be  given  to  means  to  assure  continued  de- 
velopment of  knowledge  and  dissemination 
of  such  knowledge  tc  the  public,  which  would 
form  the  basis  of  future  advances  in  the 
understanding,  treatment,  and  control  of 
diabetes.  Specific  recommendations  shall  be 
made  on  the  proportion  of  the  eflon  devoted 
to  Individual  basic  research  projects  under- 
taken in  the  biomedical  research  laborat<Mies 
of  this  Nation. 

"(d)  The  Task  Force  shall  be  composed  of 
ten  members  who  are  eminently  qualified  to 
serve  on  such  Task  Force,  as  follows: 

"(1)  six  members  shall  be  scientists  or 
physicians  representing  the  various  special- 
ties and  disciplines  Involving  diabetes  mel- 
Utus and  related  endocrine  and  metabolic 
diseases;  and 

"(2)  Potir  members  from  the  general  pub- 
lic, two  of  whom  shaU  be  parents  of  chUdren 
suffering  from  diabetes  meUltus. 

"(e)  (1)  The  Task  Force  shall  publish  and 
transmit  to  the  Congress  an  interim  report 
within  six  months  after  the  date  of  enact- 
ment of  this  section  and  a  final  report  not 
later  than  three  months  thereafter.  Such 
report  shall  contain  a  national  program  as 
required  by  subsection  (b). 

"(2)  The  Task  Force  may  hold  such  hear- 
ings, take  such  testimony,  and  sit  and  act 
at  such  times  and  places  as  the  Task  Force 
deems  advisable  to  develop  a  national  pro- 
gram to  eradicate  diabetes  meUltus. 

"(f)  The  Director  of  the  National  InsU- 
tute  for  ArthrttlB,  Metabolism,  and  Dlees- 
tlve  Diseases  shall — 

"(1)  designate  a  member  of  the  staff  of 
such  Institute  to  act  as  Executive  Secretary 
of  the  Task  Force;  and 

"(2)  make  available  to  the  Task  Force 
such  staff.  Information,  and  other  asalstanca 
as  It  may  require. 

"(g)  Members  of  the  Task  Force  who  are 
officers  or  employees  of  the  Federal  Oovem- 
ment shaU  serve  as  members  of  the  Task 
Force  without  compensation  in  addition  to 
that  received  In  their  regtilar  public  em^ 
ployment.  Members  of  the  Task  Force  who 
are  not  ofBcere  or  employees  of  the  Federal 
Government  shall  each  receive  compensation 
at  the  rate  of  $ioo  per  day  for  each  day  they 
are  engaged  in  the  performance  of  their 
duties  as  members  of  the  Task  Force.  All 
members  of  the  Task  Force  shall  be  entlUed 
to  reimbursement  for  travel,  subsistence,  and 
other  necessary  expenses  Incurred  by  them 
In  the  performance  of  their  duties  as  mem- 
bers of  the  Task  Force. 

"(h)  There  are  authorized  to  be  appro- 
priated to  carry  out  the  purposes  of  this 
section  $500,(X)0  for  the  fiscal  year  ending 
June  30,  1974,  and  such  sums  shall  remain 
avaUable  untU  expended. 

"ntPLEMrNTATION    OF    DIABKTKS    nOGaAlf 

"Sec  436.  Not  later  than  sixty  days  after 
the  Task  Farce  submits  Its  report  and  rec- 
ommendations to  the  Congress  (as  required 
under  section  435).  the  Director  of  the  Na- 
tional Institute  for  Arthritis.  Metabolism, 
and  Digestive  DUieases  shall,  throtigh  the 
National  Institutes  of  Health  and  the  De- 
partment of  Health,  Education,  and  Welfare, 
submit  to  the  President  for  transmittal  to 
ttM  Congress  a   report   outlining  the  actloo 


42660 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


required  and  the  •taff  requlrementa  to  c*rry 
out  the  recommended  program  with  a  re- 
quest for  such  additional  appropriations  (In- 
cluding Increased  authorizations)  In  such 
amounts  as  may  be  required  to  pursue  Im- 
mediately the  full  implementation  of  the 
program  recommended  by  the  Taak  Force  for 
which  regularly  appropriated  funds  are  not 
available 

"DtABETZS    CPIDElflOLOGT    PaCVXITnOM    AKD 
CONTROL    PSOCRAM 

"Stc.  437.  I  a)  The  Director  of  the  National 
Institute  of  ArthrltU.  Metabolism,  and 
Digestive  Diseases,  under  policies  established 
by  the  Director  of  the  National  Institutes  of 
Health,  and  after  consultation  with  the  Ad- 
visory Council  (established  under  section 
434(b)).  shall  establish  programs  as  neces- 
sary in  cooperation  with  other  Federal  health 
agencies.  State,  local,  and  regional  public 
health  agencies,  and  nonprofit  private  health 
agencies,  in  the  epidemiology,  prevention, 
control,  and  evaluation  of  dlagnoels  and 
treatment  of  diabetes,  appropriately  em- 
phasizing the  prevention,  control,  diagnosis, 
and  treatment  of  such  diseases  in  children. 

"(b)  There  ar»  authorized  to  be  appropri- 
ated to  carry  out  the  purpoaes  of  this  section 
$2,500,000  for  the  flscal  year  ending  June  30. 
1976,  $5,000,000  for  the  fiscal  vear  ending 
June  30.  1976,  $10,000,000  for  the  fiscal  year 
ending  June  30,  1977. 

■■N.\T10NAI,     DIABTTtS     RXSZARCH     AND    TKAINTNO 
C«NT«BS 

"Ssc  438.  (a)  The  Director  of  the  National 
Institute  of  Arthritis,  Metabolism,  and  Diges- 
tive Diseases,  under  policies  established  by 
the  Director  of  the  National  Institutes  of 
Health  and  after  consultation  with  the  Ad- 
visory Council  (established  under  secUon  434 
(b))  and  consistent  \»lth  the  recommenda- 
tion of  the  task  force  will  provide  for  the 
development  of  research  and  training  cen- 
ters for  the  study  of  diabetes  and  related 
endocrine  and  metabolic  disorders.  Such  cen- 
ters shall  be  established  geographically  on 
the  basis  of  population  density  throughout 
the  Nation  in  an  environment  with  proven 
research  capabilities.  A  center  may  utilize 
the  facilities  of  one  institution  or  could  be 
formed  from  a  consortium  of  cooperating 
Institutions.  Each  center  shall  encompass  the 
research  and  training  continuum  from  fun- 
damental studies  to  applied  clinical  Investi- 
gation and  education  of  physicians  and  allied 
health  personnel  In  optimal  methods  of  di- 
agnosing and  treating  diabetes  and  Its  com- 
plications. Each  center  shall  develop  effective 
mechanisms  for  training  biomedical  Investi- 
gators needed  for  research  Into  diabetes  and 
related  diseases,  clinicians  and  allied  health 
personnel  to  deal  with  fundamental  and 
clinical  problems  presented  by  diabetes  and 
Its  complications.  Each  center  shaU  also  de- 
velop effective  mechanisms  for  disseminating 
contemporary  information  about  diabetes  to 
physicians  and  allied  health  personnel  who 
provide  primary  care  for  patients  with  dia- 
betes that  live  In  the  geographic  area  served 
by  the  center. 

"(b)  There  are  authorized  to  be  appro- 
priated to  carry  out  this  section  $10,000,000 
for  flscal  year  ending  June  30,  1975.  $15,000.- 
000  for  flscal  year  ending  June  30.  1976.  and 
$30,000,000  for  fiscal  year  ending  June  30 
1977. 

"ASSOCIATX  OntXCTOR  rOR  DLABETXS 

"Sec  439.  (a)  There  Is  established  within 
the  National  Institute  of  Arthritis.  Metabo- 
lism, and  Digestive  Diseases  the  position  of 
Associate  Director  for  Diabetes  who  shall  re- 
port directly  to  the  Director  of  such  Institute 
and  who.  under  the  supervision  of  the  Direc- 
tor of  such  Institute,  shall  be  responsible 
for  programs  with  regard  to  dUbetes  within 
such  Institute. 

'  (b)  The  Director  of  the  National  Insti- 
tute of  Arthritis.  Metabolism,  and  Digestive 
Disease*  working  through  the  Associate  Di- 


rector for  Diabetes  shall  (1)  carry  oiit  pro- 
grams of  support  for  research  and  training 
In  the  diagnosis,  prevention,  and  treatment 
of  diabetes  melUtus  and  related  endocrine 
and  metabolic  diseases,  and  (3)  establish 
programs  of  evaluation,  planning,  and  dis- 
semination of  knowledge  related  to  research 
and  training  in  diabetes  mellltus  and  re- 
lated endocrine  and  metabolic  diseases 

"DIABXTTS  COOROINATTNO  COMMiTTU 

"3«c  439A.  In  order  to  better  coordinate 
the  total  National  Institutes  of  Health  re- 
search activities  relating  to  diabetes  mellltus. 
the  Director  of  the  National  Institutes  of 
Health  shall  establish  an  Inter -Institute 
Diabetes  Mellltus  Coordinating  Committee. 
This  committee  will  be  composed  of  represen- 
tatives who  can  speak  for  each  of  the  In- 
stitutes and  divisions  Involved  In  diabetes- 
related  research  The  committee  will  be 
chaired  by  the  Associate  Director  for  EHa- 
betes.  Such  committee  will  prepare  a  report 
as  soon  after  the  end  of  each  flscal  year  as 
possible  for  the  Director  of  the  National  In- 
sUtutes  of  Health  deUUlng  the  work  of  the 
committee  in  coordinating  the  research  ac- 
tivities of  the  National  Institutes  of  Health 
relating  to  diabetes  mellltus  during  the  pre- 
ceding year. 

"INTTRAGINCT   TECHNICAL   COMMrmX 

'Sec  439B.  (a)  The  Secretary  aball  estab- 
lish an  Interagency  Technical  Committee  on 
Diabetes  Mellltus  which  shall  be  responsible 
for  coordinating  those  aspects  of  all  Federal 
health  programs  and  activities  relating  to 
diabetes  melUtus  to  assure  the  adequacy  and 
technical  soundness  of  such  programs  and 
activities  and  to  provide  for  the  full  commu- 
nication and  exchange  of  Information  neces- 
sary to  maintain  adequate  coordination  of 
such  programs  and  activities. 

"(b)  The  Director  and  Associate  Director 
for  Diabetes  of  the  National  Institute  on 
Arthritis.  Metabolism,  and  Digestive  Diseases 
shall  serve  as  chairman  and  cochalrman  re- 
spectively of  the  committee,  and  the  commit- 
tee shall  Include  representation  from  all  Fed- 
eral departments  and  agencies  whoee  pro- 
grams involve  health  functions  or  respon- 
slbtlltlea  as  determined  bv  the  Secretary.". 


THE  VIETNAM  REPORT 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  a  commentary 
entitled  "Vietnam  Budget:  Between  the 
Lines."  wTltten  by  Gabriel  Kolko.  pro- 
fessor of  history  at  York  University,  In 
Canada,  and  published  In  the  New  York 
Times  of  December  7.  1973,  be  printed 
In  the  Record. 

There  being  no  objection,  the  com- 
mentary was  ordered  to  be  printed  in 
the  Record,  as  follows: 

ViXTNAM  BtnxjET:  Betwein  the  Lines 
(By  Gabriel  Kolko) 

ToBONTO— The  Senate  Armed  Services 
Committee  and  House  Appropriations  Com- 
mittee hearings  on  the  Pentagon  budget  un- 
tU  July  1974  are  now  out.  and  the  tradi- 
tionally diligent  censors  released  alarming 
new  Information  on  the  Nixon  Administra- 
tion's plans  for  Indochina. 

The  facts  shatter  Its  claims  to  have  ended 
the  Vietnam  war.  much  less  to  bear  no  re- 
sponsibility for  the  Thleu  Government's 
violations  of  the  Paris  Agreements.  And  If 
the  Administration  Implements  all  the  con- 
tingencies for  which  the  Pentagon  has  budg- 
eted, as  It  often  did  in  the  past,  at  the  very 
least  It  has  assured  that  the  existing  bloody 
conflict  wUl  drag  on— and  the  worst  we  can 
expect  Is  an  escalation  to  direct  VS.  partici- 
pation In  the  air  war. 

Last  Aug.  1  a  Pentagon  spokesman  dis- 
closed to  the  House  that  It  had  put  aside 
$275  mUllon  for  the  direct  use  of  U.S.  air- 
power,  including  B-52'3.  through  June  1974. 


Bombing  In  Cambodia  until  the  Aug.  1 S  cut- 
off consumed  $50  million,  but  the  rest  was 
"to  keep  the  area  established."  and  the 
censor  "s.inltized"  out  the  number  of  possible 
sorties. 

The  Senate  hearings,  however,  contain  the 
air  war  cost  d»t\  that  allow  anyone  to  esti- 
mate the  missing  Information  quite  accu- 
rately: $225  mUllon  will  buy  about  130,000 
bombs  delivered  by  3.800  B  62  and  16.700 
fighter-bomber  sorties — an  amount  far  in 
excssa  of  1966  air  munitions.  Meanwhile,  the 
Pentagon  budgeted  the  Seventh  Pleat  to  keep 
77  ships  and  331  aircraft  In  Southeast  Asia 
as  part  of  the  "less  than  350.000  men"  now 
remaining  m  the  East  AsU-Paclflc  area. 

The  hearings  also  contain  much  new  data 
on  "civilian  advisers."  Contrary  to  far  lower 
Pentagon  claims  at  the  time,  as  of  last  March 
31  there  were  8.003  American  clvUlans  In 
Vietnam,  and  8.100  are  projected  to  be  there 
at  the  end  of  this  year.  In  addition,  an  un- 
disclosed number  of  non -Vietnamese  foreign- 
ers on  the  Pentagon  payroll  until  mld-1973. 
a  group  that  has  declined  only  sllghUy  since, 
provide  11.337  "man-years."  "I  could  not  put 
any  termination  date  on  It."  then  Secretary  of 
Defense  Richardson  confesses  when  queried 
about  all  these  advisers,  but  estimates  of 
three  to  five  years  were  later  mentioned  de- 
spite the  fact  the  exact  date  remains  classi- 
fied. But  contracts  for  such  services  increased 
$63  million  in  two  months  to  $218  million 
last  May  31. 

Meanwhile,  Preeldent  Thleu's  army  Is  now 
scheduled  to  spend  an  annual  $277  million 
on  munitions,  "a  continuation  of  the  level 
of  recent  consumpUon"  that  the  Pentagon's 
officials  on  Aug.  3  assured  the  House  they 
fully  controUed  That  sum  will  buy  nearly 
140.000  tons  of  explosives 

The  cost  of  Saigon  and  Laotian  forces  to 
the  US  this  year  will  come  to  $1.8  billion 
In  ouUays.  one-third  more  than  the  Nixon 
Administration  asked  Congress  to  appropri- 
ate. The  balance  will  be  taken  from  earlier, 
unexpended  budgets,  and  the  total  will  in- 
clude 71  F-5E  aircraft  for  Thleu's  aviators. 
This  plane,  which  the  Administration  insists 
U  legal  under  the  replacement  proviso  In 
the  Paris  Agreement,  nevertheless  costs  over 
t*ice  as  much  as  the  earlier  model  and  Is  far 
more  advanced. 

PuU  Southeast  Asia  outlays  for  the  XSS. 
this  fiscal  year.  Including  only  military  costs 
for  Itaelf  and  Its  three  dependents,  will 
amount  to  $4  6  billion  should  the  Congress 
approve  the  Pentagon's  requests.  And  what 
Congress  wUl  not  appropriate  for  Indochina, 
provisos  such  as  Section  736  of  the  1973 
Defense  Appropriation  Act  allow  the  Penta- 
gon Itself  to  determine  when  the  "national 
Interest'  requires  shifting  additional  funds 
to  the  war.  In  1973  It  obtained  $492  mUllon 
In  this  maiuier. 

Last  September,  when  Western  Journalists 
confirmed  that  Saigon  was  using  its  vast 
supply  of  arms  to  Initiate  the  current  up- 
surge of  fighUng  In  Vietnam,  the  danger  of 
renewed  VS.  air  war  Increased  as  well.  If 
American  men  are  also  called  upon  to  utilize 
the  contingency  plans  and  equipment  the 
Nixon  Administration  has  In  place,  then  our 
worst  fears  will  come  to  pass. 


WHY  THE  ARMS  RACE'' 

Mr.  MANSFIEL1>.  Mr.  President.  I  ask 
unanimous  consent  that  an  article  en- 
titled "Why  the  Arms  Race?"  written  by 
David  R.  Inglis.  and  published  in  War/ 
Peace  Report,  be  printed  in  the  Record. 
Mr.  Inglis  is  one  of  the  generation  of 
physicists  who  created  the  atomic  bomb, 
and  is  professor  of  ph>sics  at  the  Uni- 
versity of  Massachusetts. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Ricord. 
as  follows: 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42661 


Wht  the  Arks  Race? 


(By  David  R.  Inglis) 
(The  need  to  provide  Jobs,  not  security,  Is 
now  the  primary  spur  for  the  U.S.  In  the 
arms  race,  argrues  this  physicist.  But  this 
Is  imnecessary.  he  says,  for  there  are  many 
better  alternatives.  Including  programs  to 
solve  the  Impending  energy  crisis.) 
The  Cold  War.  and  the  great  arms  race 
that  grew  out  of  It,  have  dominated  inter- 
national politics  for  the  last  quarter  of  a 
century.  Perhaps  beginlng  with  the  Cuban 
missile  crisis  of  1962.  when  the  world  realized 
that  nuclear  deterrence  might  Indeed  fall  and 
bring  on  Ineffable  destruction,  and  the  above- 
ground  nuclei  test  ban  of  the  following  year. 
when  It  became  evident  that  serious  arms 
control  agreements  were  possible  between  the 
two  super-adversaries,  there  has  been  wide- 
spread hope  that  the  tide  might  turn  against 
the  uncontrolled  arms  race,  the  effort  by  both 
sides  to  achieve  "superiority"  over  the  other. 
But  now.  a  decade  later,  the  trend  of  the 
arms  race  stUl  seems  to  be  ominously  upward, 
only  slightly  deflected  by  recent  agreements. 
The  broad  range  of  possibilities  Is  easy  to 
outline:  at  the  Idealistic  end  Is  G.CX).  (gen- 
eral and  complete  disarmament);  In  the 
middle  Is  some  form  of  stabilized  deterrence, 
or  balance  of  terror;  and  at  the  other,  hawk- 
ish end  Is  an  arms  race  not  seriously  Inhibited 
by  the  SALT  agreement,  with  the  opponents 
seeking  to  gain  the  upper  hand  through 
qualitative  Improvements  of  weapons  under 
control  and  through  research  and  new  de- 
ployment of  weapons  not  covered  by  the 
agreement.  The  basic  question  may  be 
whether  the  form  of  balance  of  terror  moves 
lower  m  the  direction  of  G  CD.,  or  higher,  to- 
ward a  renewal  of  stiff  mUltary  competition, 
with  the  two  superpowers  leading  the  way 
and  all  the  other  nations  following  at  their 
own  maximum  potential. 

Adam  Roberts,  writing  In  the  Jan.  Feb  is- 
sue of  WPR,  comments  on  the  lip  service 
given  to  G.CX).  in  the  preamble  of  the  SALT 
agreement  as  follows:  "It  Is  a  strange  para- 
dox that  the  ritual  promise  to  achieve  gen- 
eral and  complete  disarmament  .  .  .  occurs 
In  the  very  treaty  which  .  .  .  enshrines  the 
principle  that  the  road  to  security  lies 
through  a  controlled  and  Institutionalized 
system  of  mutual  terror."  While  the  beauti- 
ful dream  of  C.  C  D  remains  valid  as  an  tUtl- 
mate  goal,  there  are  also  Important  historical 
reasons  for  this  reference. 

In  the  early  years  of  the  nuclear  age.  dis- 
armament conferences  seem  In  retrospect  to 
have  served  mainly  as  an  artificial  showcase 
for  competing  good  Intentions  while  the  two 
major  nuclear  powers  pursued  the  serious 
competition  of  getting  the  nuclear  race  well 
under  way.  The  showpiece  of  the  U.S.  was 
the  Barueh  plan  for  avoiding  a  nuclear  arms 
race  by  Internationalizing  atomic  know-how 
under  a  system  of  strict  control.  It  was  orig- 
inally proposed  seriously,  not  as  a  showpiece. 
If  accepted  It  could  have  meant  much  to  the 
world,  but  It  was  kept  as  a  showpiece  long 
after  it  became  apparent  that  It  was  unac- 
ceptable to  the  USSR,  and  doubtful  If  It  was 
acceptable  even  to  the  US. 

The  countervailing  showpiece  of  the 
U.S5R,  was  G.CX).  In  a  world  newly  faced 
with  the  nightmare  of  possible  nuclear  devas- 
tation. It  seemed  to  friendly  observers  per- 
haps the  only  reasonable  course.  However,  to 
Westerners  haunted  by  fears  of  communist 
aggression  m  the  early  phases  of  the  Cold 
War.  It  appeared  to  be  a  trap  proposed  by 
a  would-be  agpressor.  After  years  of  propa- 
ganda for  G.CX)..  Soviet  leaders  gradually 
have  come  to  appreciate  the  magnitude  of  the 
disarmament  problem  and  the  desirability  of 
measures  short  of  G  CD.  Nevertheless,  It 
would  be  difficult  for  them  to  abandon  com- 
pletely their  earlier  stated  goal. 

It  is  diplomatically  realistic  for  the  U.S.  to 
recognize  that  any  arms  control  agreements 
It  makes  are  quite  consistent  with  G.C.D.  as 


an  ultimate  goal,  even  though  it  has  no  ex- 
pectation that  OCX),  will  be  achieved  within 
the  lifetime  of  living  men.  Other  goals  as 
well,  short  of  G.CX).,  are  recognized  in  the 
SALT  I  preamble:  "cessation  of  the  nuclear 
arms  race  and  .  .  .  effective  measures  toward 
reductions  In  strategic  arms,  nuclear  dis- 
armament and  GC.D  ■■  Such  recognition  In  a 
preamble  need  not  detract  in  the  lea.«t  from 
the  serious  Intent  and  practical  effect  of 
the  articles  of  agreement  The  effectiveness  of 
SALT  I  can  be  Judged  on  Its  own  merits,  and 
as  a  real  limitation  on  one  link  of  the  chain 
reaction  of  the  arms  race  It  has  some  merit. 
If  It  proves  to  t>e  a  step  toward  further  meas- 
ures really  stopping  the  arm.'^  race,  its  merit 
will  be  much  greater  Beyond  Just  stopping 
the  arms  race,  there  lies  the  prospect  of  mov- 
ing down  to  a  controi:ed  balance  at  lower 
levels  of  nuclear  wraponry.  with  the  attend- 
ant reduction  of  tensions  resulting  from 
greater  stability  and  reduced  useless  ex- 
penditures. All  this  should  have  the  Im- 
portant effect  of  making  nuclear  war  less 
likely.  The  very  real  difficulties  of  achieving 
and  maintaining  O.CX).  might  seem  less 
formidable  from  the  perspective  of  a  low- 
level  stabilized  deterrent. 

DITFEEING    WILLS 

It  has  frequently  been  said — for  example, 
by  the  Swedish  representative  at  the  Geneva 
disarmament  conference,  Mrs.  Alva  Myrdal — 
that  there  Is  no  disarmament  because  there 
Is  no  will  to  disarm.  Indeed,  there  generally 
has  been  no  national  will  to  disarm  on  the 
part  of  the  superpowers.  But  a  nation  Is 
made  up  of  many  people  and  on  few  subjects 
Is  there  a  truly  national  will.  In  each  of  the 
two  superpowers  there  are  people  with  a  will 
to  disarm,  either  partially  or  completely. 
They  are  opposed  by  people  with  a  will  to 
carry  on  the  arms  race.  The  statement  of  a 
wUl  to  dlsartn  In  a  treaty  preamble  Is  to 
some  extent  a  compromise  between  these 
groups  of  people,  and  may  serve  the  useful 
purpose  of  advertising  the  concept  of  steps 
toward  disarmament  and  thus  perharw 
spreading  the  will  to  disarm. 

The  will  of  the  Nixon  administration  with 
regard  to  the  arms  race,  while  ambivalent, 
seems  generally  to  be  for  business  as  usual. 
True,  the  sUghtly  restrictive  terms  of  the 
SALT  I  agreements  were  forged  during 
Nixon's  presidency,  but  they  came  very  slowly 
largely  because  great  care  was  taken  not  to 
transgress  unduly  on  the  Pentagon's  desires. 
The  Arms  Control  and  Disarmament  Agency 
has  been  seriously  cut  back  and  Its  new  head, 
Fred  Charles  BUe,  has  expressed  views  favor- 
ing development  of  far  more  sophisticated 
nuclear  weaponry. 

During  the  recent  summit  meetings  with 
Leonid  Brezhnev.  President  Nixon  signed 
documents  Including  some  lofty  platitudes, 
such  as  the  declaration  of  the  obvious  in- 
tention to  avoid  nuclear  war.  At  least  one 
point,  however,  may  have  Important  sub- 
stance— the  Instruction  to  the  SALT  II 
negotiators  to  consider  limitations  on  devel- 
oping strategic  mlssUes,  presumably  meaning 
MiRVs  (multiple  warhead  missiles).  The 
most  troublesome  of  the  Pentagon  require- 
ments backed  by  the  administration  was  the 
Insistence  on  development  of  MIRVs  even 
while  the  SALT  talks  were  In  progress;  the 
negotiation  might  have  been  much  more 
fruitful  If  the  administration  had  held  back 
on  MIRV  development.  Both  sides  had  cooled 
on  ABMs  and  the  agreement  not  to  deploy 
them  widely  was  the  solid  achievement  of 
SALT  I.  But  the  whole  purpose  and  orlgl- 
nally-stated  motivation  for  MIRVs  was  to 
penetrate  widespread  ABM  deployment.  Now 
that,  from  the  amis  control  p>olnt  of  view, 
the  administration  has  made  the  mistake  of 
developing  and  even  to  some  extent  deploy-^, 
Ing  this  unnecessary  complication  of  the 
arms  race.  It  remains  to  be  seen  whether 
anything  can  come  of  the  Nixon-Brezhnev 
declaration  on  the  subject. 


SALT  I  places  a  temporary  numerical  Ud 
on  most  strategic  weapons  considerably 
above  present  levels.  It  may  be  that  the 
administration's  goals  for  SALT  n  go  no  fvir- 
ther  than  to  confirm  this  celling.  Lacking 
more  far-reaching  accords,  the  arms  devel- 
opment race  continues  unabated,  leaving 
each  side  striving  for  the  technological 
breakthrough  that  could  destabilize  deter- 
rence and  perhaps  even  bring  on  nuclear  war. 
As  an  Indication  of  the  administration's  lack 
of  will  to  cut  back  on  arms.  It  Is  slgnlflcanl 
that  many  established  civilian  programs 
have  been  eliminated  to  make  way  for  enor- 
mous military  demands  on  the  budget,  in- 
cluding those  perpetuating  the  arms  race. 
James  R,  Schleslnger,  the  new  secretary  of 
defense,  told  a  Senate  committee  hearing 
on  his  confirmation  that  ;t  wo-ald  be  "Im- 
possible" to  reduce  the  defense  budget  In 
the  years  ahead  and  it  would  probably  have 
to  rise  "Just  to  stay  even." 

Indeed,  It  has  become  Increasingly  appcu-- 
ent  that  these  large  ezpendlttires  are  the 
main  purpose  and  motivation  of  the  arms 
race,  as  the  military  Justification  has  become 
more  and  more  questionable  In  the  recent 
years  of  overkii:  capabilities.  The  huge  arms 
expenditures  have  a  large  constituency  In 
American  politics,  in  both  business  and 
labor.  It  Is  very  difficult  politically  for  legis- 
lators to  resist  the  pressure  for  tirms  race 
spending  In  their  home  districts.  Paper  plans 
for  reconversion  of  plants  and  Jobs  to  non- 
military  production  are  less  convincing  than 
continued  dependence  on  Department  of  De- 
fense procurement. 

Here  among  the  American  people  Is  where 
the  will  to  disarm  Is  perhaps  most  seriously 
lacking.  The  Department  of  Defense  quite 
naturally  has  a  will  to  continue  arming  and 
Is  in  a  well-heeled  position  to  saturate  the 
populace  with  a  mixture  of  conjecture,  In- 
formation and  misinformation,  favorable  to 
Its  point  of  view.  The  opposing  argument 
that  funds  released  from  military  expendi- 
tures could  benefit  the  civilian  needs  by 
creating  other  Jobs,  has  no  such  powerful  ad- 
vocate. 

Perhaps  the  primary  culprit  Is  the  produc- 
tivity of  technology,  a  phenomenon  that 
should  be  a  boon  to  mankind.  In  spite  of  the 
Just  claim  that  technology  creates  many  new 
types  of  employment,  such  as  the  building 
and  servicing  of  computers,  many  of  these 
Jobs  require  specialized  training,  and  the 
overall  effect  is  to  eliminate  more  employ- 
ment than  Is  created.  Many  of  the  marvelous 
labor-saving  devices  do  save  l(Ux>r — and  put 
people  out  of  work.  "How  are  you  going  to 
keep  them  down  on  the  farm"  when  agricul- 
tural machines  are  so  efficient?  This  Is  the 
nature  of  rapidly  advancing  technology,  un- 
less it  \B  matched  by  equally  rapid  changes 
In  dls^.nbutlng  goods  among  people.  To  some 
extent,  the  per  capita  time  saved  by  tech- 
nology could  be  distributed  more  or  less 
evenly  to  all  workers,  keeping  roughly  the 
same  percentage  of  the  people  doing  the  Jobe 
that  need  to  be  done,  but  doing  them  in  fewer 
working  hours  so  that  everyone  enjoys  more 
leisure.  The  length  of  the  shorter  average 
work  week  should  be  adjusted  to  keep  pro- 
ductivity high  enough  so  that  everyone  can 
work  at  a  living  wage.  This  wage  needs  to 
provide  Incentive  enough  to  get  the  work 
done,  and  people  need  to  learn  to  enjoy  more 
leisure  alternating  with  a  moderate  amount 
of  work. 

But  that  is  not  what  Is  happening.  In  real 
life,  in  which  everyone  is  looking  out  first 
for  himself,  that  Ideal  Is  not  achieved.  Those 
who  have  good  Jobs  have  more  Influence  In 
politics  than  those  who  do  not.  With  our 
present  system  of  Incentives,  the  person 
with  a  Job  wants  a  fairly  long  work  week  so 
as  to  receive  a  good  wage.  This  shuts  others 
out  and  means  unemployment  arising  from 
technological  productivity.  If  one's  work  is 
even  remotely  associated  with  military  pro- 
duction, one  wants  continued  military  pro- 


"^6^2  CONGRESSIONAL  RECORD  —  SENATE  December  20,  1973 

auction    U  there  should  b«  gsaeral  recoa-  it   faUed  structurally   but   not   until  it  lutd  matlon  study   many  of  the  weaoonj.  svstami. 

'J^kl?  i^t"?^  ThiVll^'^f  fr^'.:  provld^l  u«rul  exp^lenc.  At  Just  th,  tlm.  are  ^^^^^^1^^^^  ^^t'^t^y To  n^ 

^^t^li^L  ^;,w   nnt  a^»,^       t    '^-  °^  ^^  '*""'"•   ""•  *"'y   '^'^  overoptlmlsuc  add  to  current  UB.  oiUltiUT  stren^h.  Their 

H    ;^i^  «kilJa  would  not  give  him  priority  prospect  of  power  from  the  atomic  nuoieus  total  cost  for  fiscal  1874  alone  is  Mfl  bllll^ 

and  other,  might  get  his  Job.  The  virtues  of  aro«i  and  has  alnce  absorbed  almost  all  the  TTv^u^  19^1^  wUl  re^u^  s^endl^^ 

arm^  control  and  disarmament  are  far  from  country's  efforts  In   the  power  development  e^i^t*d  to^^  wTbUlton         '^"'"'''^  '"^ 

the  average  worker's  thoughts.  Qeld.  so  a  third  generation  wlndmlU  has  yet  iTpirtlc^l^    the  (>nt^r  recommends  re 

As  long  as  remuneration  U  based  on  per-  to  be  buUt.  Then,  have  been  a  few  somewhat  ap^aS^oTt^'foUowm^       recommends  r«- 

formaace  of  a  fun  work  week,  the  produc  smaller  windmills  of  the  second  generation  ''^^r^'^  oiintiouowMx% . 

Uvlty  of  machines  places  a  premium  on  so-  set  up  In  Europe.  Strategy  weapon  systems 

clAlly  useless  output.  As  make-work  of  thl«  There   has    thus   been   experience    with    a  [Amounts  requested  for  1974  In  mUllons] 

sort.  mUltary  production  is  attractive.  It  In-  quite    large    windmUl.    but   not   enough    ex-  Poeeldon  submarine  conversion  and 

volves  technic«U  skills  and  large  erpendltxires.  perlence  to  justify  constructing  thousands  of         mlssUos   M98  a 

Directly  or  I  directly.  It  Involves  large  num-  much  larger  wlndmUls  to  talte  over  a  serious     Minuteman  in  mlssUes 768  1 

b^rs  of  people,  large  enough  to  be  politically  part    of    the    national    power   load.    What   is  Trident  submarine  and  missiles           1  713  0 

effective,   but   not   large  enough   to   prevent  needed  now  is  the  design  and  construction  of     Safeguard    ABM 401  6 

widespread  unemployment.  at    least    one    very    large    power-generating     B-l  bomber. 473  6 

AS  things  stand,  there  are  so  many  soclaUy  windmill  to  serve  as  a  prototype  for  future     SCRAM  mlssUes 139   i 

nec^aary  tasks  waiting  to  be  done  that  we  extensive   production.   Construction   of  sev-     SCAD  mlssUes 73  2 

could  do  much  more  than  simply  cut  back  era!  prototype  windmills  of  different  designs     Strategic  cruise  missiles "         153 

on   military  expenditures  and   carry  on   the  would  be  stUl  better,  as  a  part  of  a  compre-  Site  defense  of  Minuteman  .                   170  1 

Mime  production  in  the  civilian  sector— but  henslve  effort,  Including  construction  of  pro-      Airborne  warning  aircraft aofl  6 

with  more  people  doing  the  identical  work  In  totype  solar   plants  and  other  energy   pro-  Airborne  command  poet                             83  1 

jobs    of   shorter    hours    and    higher    wages,  ducers.  to  determine  soon  what  would  be  the                                                                      _ 

There  are  Immense  opportunities  to  Improve  most  satisfactory  power  sources  for  the  future  Total                                                 4  542  6 

our  way  of  Uvlng  through  efforts  In  the  fields  as  our  present  fuels  run  low  and  the  power                                           

of  health    education,  transportation,  nutrl-  prices  rise.   It  is  far  from  a  foregone  con-  ConventUmcd  weapon  systems 

!™°.Knr».        environment,  to  mention  a  few  elusion  that  plutonlum  wUl  be  the  best  an-  cVN-70  carrier                                             a«i;7  n 

posslbUltlee.  A*  an  example  of  the  kind  of  swer.  Indeed.  If  the  vested  InteresU  !n  the     p^  air^t     """     ^12 

program  that  might  be  undertaken.  let  me  plutonlum    route    can    be    circumvented    to      Phoenix    missile inn'  I 

^^^  Of e  major  area  In  which  an  Impor-  obtain   support    for   broadly    based   develop-      s^Ta^c^     ^l 

tant   part   of   the   resources   going   into    the  mental  work,  it  seems  likely  that  at  least  one      lha   »hin         " Toon 

^^^  .T"^"^  J.°''^'^  "*  '"'^^   usefully  ab-  of  these  others  wUl  be  better  and  permit  us     i^  ^cni't ~ 1    1!^  o 

sorbed-the  production  of  energy.  to  avoid  the  dangers  of  plutonlum  ^wer            c-6A                ^-  ^Jf  \ 

A  Mou  LntXLT  DANcn  With  cxcltlng  prospects  like  these  before  tTTTAS   heUcopter                                         108  1 

A  highly  probable  danger— far  more  likely  "'■  *^y  **>ould  we  still  be  using  the  trumped-      SAM-D   mlssUe       " 1940 

than  some  of  the  perils  adumbrated  bv  the  "^  ?       ./".I.*"  *""*  ^^^  ^  provide  make-     sSN-688  submarlne8.„r"" Qai'e 

Pentagon-is  a  future  serious  power  short-  ''O'"'^  activities  to  bolster  the  economy  and     DD-963  destroyers '       690 '  9 

*ge.   Thte   does   not   require   any^poetulated  '""P'o^  '*'»'■■  ^^a'  ^t**'  ''»y  ^  provide  for                                                            '               " 

suicidally  mad   and   omnipotent  dictator   to  f^*  '"^*^  strength  of  our  country  than  to  Total                                                 s  117  •* 

make  the  threat  a  reality    Yet  to  meet  thia  '***  *  '**  billions  Into  competing  power                                              o.  in.a 

threat  we  are  expending  onlv  a  small  frac  sources,  so  as  to  find  the  right  source  for  the  The  Center  also  recommends  reappraisal 

tlon  of  the  effort  spent  on   the  arms  race*  fu'^re.  not  Just  the  one  that  arises  naturally  of  the  following  as  Defense  Department  data 

Furthermore,  we  are  DuahlnB  onlv  twn  nt  tv,.  '™™  present  vested  Interests?  With  reason-  remains    inadequate    for    determining    their 

possible  solutions,  onlv   one  of  them   «.*llv  *"'   Initiative,    the    present    vested-Interest  utility: 

hard,  and   neither   Is  without   objectionable  ^^"P*    should    themselves    be    able    to   Join  Strategic  iceapon  systems 

featuree  T.ev  are  nuclear  fission  and  fusion  '°.°°  "^*  °*^  developmenU,  Think  of  res-  (Amounts  requested  for  1974  In  mUllonsl 

The  former  brings  with  it  a  variety  of  dan-  ""av^^^T^^^^^^^^ ^"^^T^  .I™'"  i^  '=«'*-  Advanced  ballistic  mIssUe  reentry 

gers  and  the  latter  remains  a  gleam  In  the  °''f™°  "1°^'*°?^  "^  ^"^^  '*  contracts  to  systems                                                         495  3 

scientists  eye.                                  Ki«m  m  ine  design  and  build  a  nozen  or  more  prototype  aaI^^   •ti^\\^Uc"mi:^K\^",\Vtl^'^ 

Amon.    th%   dan^rs   Of   the   fission    route  -°<^-u;-ach  much  bigger  than  any  b^^^  '^:.T£^'!^:^'1.^:^^:..'^:'!!^.       100.0 

to  future  power,  the  one  most  eloeelv  asso-  «'^ii  «ver  buUt!  ""  " 

elated  with  the  arms  rare.  Is  the  likelihood  »k      ^^           opportunity  Is  upon  us  to  slow  Total                                                      195  3 

that    the   Plutonium    that   it   will    c^^S^  the  .u-ms  race  drastically  and  to  channel  our                              -^----- —       195.3 

e^a^on^Tn^l^i^ar-^^a^ornTon^ino^rn';      ''^^'^^X'^^Z^^^t^lT^L^T^;.      „  Con^nUon.  weapon  systems 

S;^ps^a;rtl^  c'  rw'^S're  ^^hTthTv         «'^^'--'^'  '^^--^-ces  are  good  to  put     t^\^ ^^^^^^ " -       ^^^ 

could  be  m  a  future  DIut3m^J-   a,,!!^  '     »  workable  freeze  en  the  arms  race  through     ^^  *«  torpedo... 191.3 

scenario  Is  no  mo«  ^plausible  th^n  the  J^,.*  ^'^'^  "'  ^'  "''*■  agreement  should  include  P»"°'    ''f'^V':-, «■  « 

cldallv  mvl  dictator  wh^Lh^^f^  stopping    MIRVs.     eliminating    klUer    sub-  l^^  "Eect   ships „..  73. 8 

th7nuc^^arm«  ™...                ^           "P""  °"  nmrlnes    .which   if  buUt  could  possibly  de-  ^  "''^'^'•o'  «*'?« »•  3 

Lu^  S^trwlTd%v>w.r                 .K  stabilize  deterrence,,  control  ml^lletes'^"-  P-3C  patrol  aircraft 166.  6 

po^Tlt^r  arT^^J^  ?°    *^''™'"      ^^  ^""^  establish   a  complete   nuclear  test  ^      ,  

power— inese  are  possible  ways  to  meet  our      ban.  Total   741.9 

limits ^^ce8°o7?ne^rrto^f^f!!'"°'  ynllaterally,  the  US  could  abandon  futUe  The     Center     for     Defense     Information, 

tunes    Oeotherm.iVn-^       M        ?  ^^'^"  '"'»«*nr  expenses  for  the  Trident  submarine.  Washington.    DC.    is    associated    vrtth    the 

tTon  \«^,v            ..       ^  "^'^  ""^^  gaslflca-  B-l  bomber,  new  carriers,  and  other  redun-  Fund  for  Peace. 

«on   are   other  option*   that   could   be   very  dant  and  superfluous  weaponry  having  little 

unportant  in  meeting  our  needs  for  the  next  significance  for  the  balance  of  terror    which                              

century  or  so.  although  they  are  based  on  already  has  unimaginable  overkill  weighted 

more    limited    sources.    Any    one    of    these  on  both  ends  of  the  scale  And  the  funds  and  THv  rwTK x  T-WAnir 

given  intense   research,   might  be   ready   to  ^^°^  '*'*'*   «'"'=!    **   directed   toward    the  '-rxiixA   in,AJj£, 

take  over  the  load  on  a  time  scale  as  short  ™*ny  other  problems  cited  earUer— partlcu-  Mr.  MANSFIELD.  Mr.  President    one 

as  that  for  the  plutonlum  breeder  reactor—  If"'  ^^^  question  of  future  energy,  for  which  of     the     most     valuable,     succinct  '  and 

some  of  them  In  less  than  a  decade  '***  sector  of  industry  now  devoted  to  the  worthwhile  reoorts  to  romp  nut  nf  rhino 

consider   wind-generated   electricity,    per-  ^''^  ^'^^'^  ^  ^^^'"^'^  -"  "^^-^PP*^-  JTfu^t^enTompl^tedT  Mr  K T? 

^t^  %  «  „""l!!'^***    through   electrolysis  '''^  ^Hr  ^s.  spsnd  set  biluon  roa  Clarke,  It  Is  enUUed  "The  China  Trade  •' 

S^  fne^t'on^Zl'^is   '""•  S''^"  ^     «       ''"'^"  '"*'"~''  "  ^^  presented  at  the  National  ™dm- 

liTth'^uXy  J^^n  ?he  Teth  •.In."'^  aiJStmr'  T'  ''"  '''"'•«°"  "^  ""'"«  '°'  *^*^   Conference   in   San   Francisco   on 

h„f  rw^rV             tested  in  the  16th  century.  •18.8  bUlion  for  procurement  of  new  weap-  Seotember  20    IQ?*?   It  rnntalne  on  pnnr 

but  not  for  generating  electricity.  The  sec-  ons.  $1  bUUon  more  than  last  year   Research  mmJf^^u^h  of  flof  Ihf  k  k       ^\^^°^- 

ond    generation    prototype    In    this    country  and  development  is  also  up  ab^ut  hSl^U^  f^.^.Zl^^f^!  ^*^'  7^^?^  ^^  "°'  ^"^ 

(If  we  skip  over  smaU  farm  windmills)   did  lion  for  new  weapons,  to  a  total  of  M  7  bU-  f"^,^^}"^^  ^  ^  country  In  any  great  de- 

J^erate  useful  amounts  of  electrlcitv  and  Uon.  R&D  is  up  50  per  cent  as  a  prowition  '^^  "  ^^^^  historical  material  rela- 

feed   into  a  commercial   power   grid.   It   was  of  the  funds  provided  for  procurement  In  the  "^®  ^  *^^  ^^^*  ^^^^  ^  ^^  P^^'  BOlng 

?^_Jf  T  °P*^*'*^  '"  Vermont  in  the  period  1970  fiscal  year   The  RAT  programs  deserve  ^^^^  almost  4,000  years, 

i^f^  .kI  T**  tv°"'  ^°^  '^^  ^'^^  ^"^  ^''-  <*«t»"e«l  attention  because  of  their  Influence  Mr.  President.  I  ask  unanimous  con- 

oT^^otsu^ZZTLl°I^'^^r  °V"'^!  procurement  spending.  sent,  because  of  the  Increasing  Interest  In 

th.  use  Of  subaatu^  mater «»is  in  wartime.  Accordln*  to  a  Center  for  Defense  Infor-  relations  between  the  People's  Republic 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42663 


of  China  and  the  United  States  of  Amer- 
ica, and  the  need  for  a  better  understand- 
ing on  our  part  of  just  what  China  is  and 
Is  not.  that  the  text  of  the  report  be 
printed  at  this  point  in  the  Record. 

There  being  no  objection,  the  report 
was  ordered  to  be  printed  in  the  Record, 
as  follows : 

The   Chin*    Trade 

(By  K.H.J.  Clarke) 

(AU  figures  referred  to  do  not  appear  In  the 

Record.) 

I  THE  PAffr 
(o)  To  1949  AH. 
The  Chinese,  with  a  civilization  which  Is 
one  of  the  oldest  In  the  world,  having  a  docu- 
mented history  of  almost  4,000  years,  have 
been  trading  with  the  Western  World  for  a 
long.  long  time.  The  first  trade  caravans  from 
China  to  Iran  over  the  "Old  Silk  Road"  date 
from  106  B.C. 

SUk,  which  was  a  Chinese  secret  and  mo- 
nopoly, untU  the  sUk  worm  was  smuggled 
Into  Europe  In  660  AD,  was  traded  for 
■•bloodsweatlng"  thoroughbred  horses,  col- 
oured glass,  myrrh,  wool  and  linen.  Cara- 
vans destined  for  Rome,  carrying  mainly  sUk, 
but  also  skins,  cmnamon  bark  and  rhubarb  ' 
set  out  at  Slnae  Metropolis  (Loyang)  in  the 
lower  TeUow  River  region.  The  road  led,  by 
diverse  routes,  across  the  deadly  desert  of 
Slnklang  and  over  the  Pamir  range  of  Af- 
ghanistan through  the  forbidding  plains  and 
mountains  of  Central  Asia,  converging  In 
Persia,  and  then  on  to  Syria  and  hence  by- 
ship  to  Rome,  a  hazardous  step-by-step  Jour- 
ney of  over  5,000  miles.  (Figure  1.  page  6). 
Very  few  Chinese  made  It  all  the  way  to 
Rome;  the  Persians,  by  any  means  at  their 
disposal.  Including  forcible  restraint,  being 
very  successful  In  keeping  the  Chinese  from 
direct  contact  with  the  ultimate  Roman  cus- 
tomers. To  the  Persians,  as  middle  men,  the 
"sUk"  trade  was  a  most  profitable  business. 
An  interesting  facet  of  the  trade  was  a  large 
Imbalance  In  China's  favour  made  up  by 
bullion  or  specie  payments  with  which  Per- 
sian merchants  bartered  their  local  goods 
for  delivery  to  China  in  lieu  of  cash  returns. 
In  120  AD.  and  again  In  166  A.D..  the 
Romans  sent  missions  of  Jugglers  and  mer- 
chants by  sea  directly  to  Peking  with  a  wide 
variety  of  trade  merchandise. 

Subsequently.  Chinese  trade  relations  were 
opened  directly  with  all  the  major  ports  along 
the  southern  coast  of  Asia.  Along  with  the 
opening  of  trade  came  increasing  knowl- 
edge of  the  outer  world  and  this  developed 
rapidly  to  the  seventh  century  A.D.  Chinese 
embassies  were  opened  in  many  countries  In 
the  Mediterranean  and  the  Middle  East  and 
a  brisk  two-way  trade  In  art  objects  began  In 
turn  to  Influence  Chinese  art  design.  During 
this  period,  Persian  merchants  were  particu- 
larly active  dealing  in  "magical"  gems,  car- 
pets and  aromatlcs. 

Strangely,  the  period  from  900  AD  to 
1200  AD.  was  one  In  which  trade  with  the 
outer  world  Increased  very  rapidly  but  Chi- 
nese travel  decreased.  The  greatly  expanded 
and  thriving  overseas  trade  during  this  pe- 
riod coincided  with  the  rtse  of  the  Islamic 
Arab  shipmasters  and  for  the  most  part  v^as 
conducted  directly  by  Arab  merchants  The 
Arabs  continued  to  hold  a  most  Important 
position  In  Chinese  commerce  with  colonies 
estabUshed  at  major  trading  points. 

Chinese  trade  with  Japan,  Korea,  Asia  and 
India  began  to  play  a  greater  role  in  the  Chi- 
nese economy  than  at  any  time,  exceeded 
only  by  development  of  trade  with  Europe  in 
the  late  seventeenth  century. 

In  the  first  half  of  the  thirteenth  century 
Ohengls  Khan  conquered  the  whole  of  China. 


'  For  more  than  2.000  years  the  Chinese 
have  considered  rhubarb  to  be  a  powerful 
aphrodisiac. 

CXIX 2687— Part  33 


Under  him  and  his  successors,  the  most 
famous  being  his  graridsoi,  Kublal  who 
foimded  the  Mongol  or  Yuan  dynasty  in  1280, 
all  of  China,  Korea,  Centrai  Asia.  India, 
Persia,  much  of  Asia  Minor  and  most  of  Rus- 
sia were  consolidated  into  one  empire  Ex- 
tensive and  safe  travel  under  the  protection 
of  the  firm  rulershlp  of  the  Khan  became 
possible  and  envoys  from  the  entire  world 
headed  for  Peking.  This  was  the  time  of 
Marco  Polo  who.  with  his  father.  Nlccolo, 
and  his  uncle,  Mafflo.  travelled  overland  from 
Venice,  stayed  for  17  years  in  the  court  of 
Kublal  Khan,  and  returned  by  sea  along  the 
coasts  of  India  and  Persia  Hi.s  famous  ac- 
count of  the  great  court  and  China  s  pe<^le 
and  Its  thriving  cities  was  the  first  major 
record  of  .^la  by  a  Europeaii  It  was  thor- 
oughly dl.sbelleved  and  Marco  Polo  fell  into 
disgrace  "A  prophet  Is  not  without  honour, 
save  In  his  own  country." 

At  this  time.  China  was  ahead  of  most 
parts  of  the  world  in  technology.  Among  the 
profusion  of  technical  developments  attrib- 
utable to  China  are  the  horizontal  warp  loom 
and  silk  fabricating  machinery,  the  cross 
bow,  the  wheelbskrrow,  the  kite,  the  mastery 
of  cast  Iron,  (1,000  years  ahead  of  Europe), 
canal  lock  gates,  gunpowder  and  cannons, 
the  magnetic  compass,  paper,  porcelain,  and 
printing  and  movable  type 

In  1368  AD  the  Mliig  dynasty  overthrew 
the  Mongols  and  launched  large  overland 
explorations.  The  early  part  of  the  fifteenth 
century  also  saw  great  sea-going  Chinese 
expeditions  of  discovery  and  trade  develop- 
ment under  the  leadership  of  brilliant  eu- 
nuch admirals.  These  explorations  included 
Malaya,  Java,  Sumatra,  Ceylon.  Burma  and 
the  coasts  of  India,  the  PhUlppines,  the  Per- 
sian Gulf,  the  south  coasts  of  Arabia  and 
Aden.  Into  the  Red  Sea  and  down  the  coast  of 
East  Africa  to  Zanzibar.  Many  overseas  trad- 
ing bases  were  established.  At  the  mld-polnt 
of  the  fi/teenth  century,  China,  as  a  result  of 
Mandarin  Jealousy  of  the  admirals  and 
clvU  service  and  administration  conserva- 
tism, turned  Inwards  and  lost  Its  opportunity 
for  trade  and  political  leadership  in  the  ex- 
plored areas,  opening  the  way,  a  mere  75 
years  later,  to  Portuguese  exploration  and 
political  Initiative.  This  would  appear  to  be 
one  of  the  tximlng  points  In  world  history. 

Vasco  da  Gama  reached  India  In  1498  via 
the  Cape  and  a  direct  route  to  the  Elast  was 
opened.  The  Spaniards,  Dutch  and  English 
set  their  sights  on  Asia. 

The  Portuguese  capture  of  Ooa  in  1510  and 
Malacca  In  1511  gained  control  of  the  gate- 
way to  the  spice  lands  of  Malaya  and  the 
East  Indies.  Contact  with  Chinese  traders 
who  had  come  with  silk,  satins,  chlnaware 
and  pearls  to  exchange  for  spices,  ginger. 
Incense  and  gold  thread  led  the  Portuguese 
to  turn  their  attention  to  China. 

In  1516,  Perestrello,  a  Portuguese  sea 
trader,  arrived  In  Kwangchow  (Canton)  and 
the  long  and  contentious  era  of  Eiiropean 
Involvement  in  China  began.  The  Porttiguese 
who  foUowed  made  a  very  unfavourable  Im- 
pression and  the  response  of  the  Chinese  was 
conservative  and  aloof  The  Mings  limited 
trade  to  one  port,  Kwangchow  (Canton) 
which  viras  closely  controlled  by  the  Portu- 
guese by  virtue  of  their  established  base  at 
Macao.  Diplomatic  relationships  were  refused 
and  embassies  unwelcome  The  opportunity 
at  hand  to  learn  about  Europeans  and  their 
civilization  was  lost. 

The  Spanish,  after  having  conquered  Mex- 
ico, had  direct  access  from  Pacific  ports  from 
which  they  attacked  the  Portuguese  colonies, 
finally  seizing  the  Philippine  Islands.  Prom 
this  base  Spanish -Chinese  trade  flourished 
using  Mexican  and  Spanish  dollars  as  ex- 
change, resulting  In  an  Influx  of  these  ctxr- 
rencles  Into  China. 

The  Dutch  arrived  In  China  in  1604.  thirty 
years  after  the  Spanish  and  ninety  years 
behind  the  Portuguese  Though  tuTlvlng  late 
they  achieved  great  success  In  trade  and  em- 


pire building.  Ttt^Wgm^llHmmtn..  Java  and 
Malacca  from  ^ttt  VStOJ^ItHlte.  and  m  iei9 
the  Batavian  Oovemment  was  established 
In  Java  which  then  became  the  centre  of 
Dutch  activities  in  the  Eaet 

After  the  Mar.chus  conquered  the  Mings 
in  1644  they  went  further  In  ct>structlng 
foreigners  and  prohibiting  travel  and  emigra- 
tion, to  some  extent  due  to  distrust  of  their 
subjects  m  the  south  It  was  not  until  the 
early  part  of  the  r.n.eteerith  century  that 
lalX)urers.  mostly  from  southern  areas,  were 
allowed,  under  European  political  pressure, 
to  emigrate  ic  I:idonesia,  Malaysia  a.-id  ir.do- 
chlna.  and  not  until  late  In  the  nineteenth 
century  that  China  estabUshed  diplomatic 
missions  m  Europe  and  the  tTnlted  States 
and  that  the  first  ChlEese  students  were  per- 
mitted to  study  abroad. 

Because  of  conflicts  of  Interest  with  the 
Dutch  In  the  East  Indies  and  the  Portuguese 
In  Macao,  the  British  had  fcKu-^d  their  ac- 
tivities In  India,  However,  in  1637.  in  open 
defiance  of  the  Portuguese,  direct  contact 
was  made  with  Kwangchow  i  Canto:,  i  but 
without  much  commercial  or  political  suc- 
cess. It  was  not  until  1685  that  the  ban  on 
sea  trade  was  lifted  and  1:.  :'J9i'  formal 
British-Chinese  trading  relationships  were 
established 

By  the  late  eighteenth  century  there  was 
an  extremely  active  three-way  trade  between 
England,  China  and  India.  .Ninety-five  per- 
cent of  the  exports  t-o  England  consisted  of 
tea,  with  raw  silk,  chlnaware,  rhubarb,  lac- 
quered ware  and  cassia  making  up  the  bal- 
ance. Imports  from  England,  although  lim- 
ited In  quantity.  Included  woollens,  lead,  tin, 
iron,  copper,  furs  and  linen.  Exports  to  India 
consisted  of  Nankeen  cloth,  altim,  camphor, 
pepper,  vermUlon,  sugar,  drugs  and  china- 
ware,  whUe  Imports  Included  raw  cotton. 
Ivory,  and  sandalwood,  sliver  and  opium. 

Because  of  the  small  demand  for  British 
goods  In  CThlna  the  balance  of  trade  was  un- 
favourable to  Britain  It  was  at  this  time 
that  the  British  realized  that  opium,  which 
had  been  Introduced  by  the  Arabs  and  which 
could  be  grown  readily  in  India,  was  being 
used  increasingly  in  China,  mostly  for 
medicinal  purposes.  The  hablt-formlng  ef- 
fects of  the  drug  Increased  the  demand  so 
rapidly  that  the  trade  balance  changed  dra- 
matically. Opium  purchases  more  than 
quadrupled  between  1817  and  1830.  By  1830 
the  share  of  opium  in  total  Imports  was  66  "^r , 
cotton  21 '^,  woollen  goods  ll'^r,  and  metals 
3%.  Tea  accounted  for  60 ""r  of  the  exports 
and  raw  sUk  and  silk  goods  23 '^r.  Total  value 
of  exports  was  17.60  mUllon  Spanish  sliver 
dollars,  and  Imports  26.81  mUllon,  resulting 
In  an  unfavourable  balance  of  trade  of  9.21 
mUllon.  (Table  1,  below). 

To  greatly  oversimplify  a  most  compli- 
cated sittiation,  the  large  outflow  of  sliver 
which  had  developed,  and  the  debilitating 
efTects  of  opium  on  the  people,  led  to  the 
Manchua  banning  the  opium  trade.  Smug- 
gling became  rampant  and  the  Chinese  began 
to  seize  contraband  shipments.  The  Brltlsto 
aotight  compensation  and  Increased  trade 
access.  The  Chinese  refused  and  the  'Opium 
War"  of  1840  began.  The  Chinese  capitulated 
and  In  1842  the  optimistically  named  "Treaty 
of  Eternal  Peace"  or  the  Treaty  of  Nanking 
was  signed 

One  of  the  most  important  results  of  the 
Opium  War  settlement  was  the  ceding  to 
the  British  of  the  Island  of  Hong  Kong  which 
has  continued  for  over  100  years  as  a  base 
for  engaging  In  the  China  trade  The  real 
era  of  the  Treaty  Ports  had  started  The 
United  States  and  Prance  signed  their  own 
separate  treaties  with  China  In   1844 

Twenty-one  million  ounces  of  sliver  which 
were  paid  to  the  British  by  the  terms  of  the 
Treaty  of  Nanking  and  many  additional  fac- 
tors relating  to  the  decline  of  the  court 
prestige  and  power,  resulted  In  high  taxes 
and  internal  weakness  and  unrest.  In  1850,  as 
a  result  of  the  aftermath  of  the  Opium  War 


{_''»r>i 


CONGRESSIONA I    K  i  (  (   K  D 


\.\  IT 


December  20,  1973 


and  suboequent  poverty,  tb«  T»l  P'lng  Re- 
bellion broke  out.  After  many  years  of  severe 
Internal  strife,  Ute  rebellion  was  over,  but 
the  Manchu  government  had  been  severely 
weakened  and  tbe  process  of  economic  de- 
cline and  Influence  was  accelerated. 
Table  I — Kwangchcrw  {Canton)  Trade.  1830 
(Millions  of  Spanish  sUver  dollars) 

Exports:  17  60  Imports:  36  81  Balance: 
-9.21 

Exports  (Commodity  Composition)  1>a: 
60'T  Raw  aUk:  10'"r  Silk  Ooods:  13'-r  Other: 
IT-, 

Imports:     Opium':      56"-      Cotton:'     31  "o 
Woollen  Goods:   U -"c  Metals:  3%  Other:  9'^r 
(Source:  Eckstein). 

In  1856  Britain  and  France,  dlasatlsfled 
with  the  resulte  of  the  Treaty  of  Nanking. 
and  as  a  restilt  of  many  clashes,  bombarded 
and  captured  Kwangchow  (Canton).  In  1858 
the  Manchu  Court  agreed  to  the  Treaty  of 
Tientsin  and  ten  more  Treaty  Ports  were 
opened  to  trade  In  1859  the  Chinese  tried  to 
repudiate  the  Treaty.  At  the  same  time,  the 
Russians  had  become  active,  particularly  In 
poUtlcaJ  Intrigue,  and  In  1859  laid  claim  to 
the  Maritime  region  of  Siberia  with  the 
capital  Vladivostok. 

The  "Middle  Kingdom"  was  now  thorough- 
ly on  the  defensive  caught  in  a  north-south 
plncer  movement.  In  I860  the  British  and 
the  French  atucked.  captured  Peking  and 
burned  the  Sununer  Palace  By  a  new  peace 
settlement  with  Britain  and  France  and  the 
suppression  of  the  Tal  Ping  Rebellion  In 
1864.  the  dynasty  obtained  a  momentary 
reprieve  With  stability  and  the  opening  of 
the  new  Treaty  Ports,  trade  began  to  Im- 
prove. The  Chinese  launched  their  "self- 
strengthening"  program.  The  Suez  Canal  was 
flnlshed  in  1869  and  the  route  to  Europe 
shortened  Telegraphic  communication  was 
established  between  Shanghai  and  London  In 
1871  These  developments  greatly  facilitated 
trade. 

The  period  of  the  1870s  and  1880's  coin- 
cided with  Intensified  foreign  activity.  The 
Japanese  invaded  Formosa  In  1874  and  In 
1879  annexed  the  Lul-chlu  Islands  The 
RussUns  occupied  111  In  Slnklang  from  1871- 
1881  and  the  French  seized  Annam  or  Viet- 
nam In  1884-1885. 

However.  In  spite  of  the  trouble,  both  Im- 
ports and  exports  doubled  between  1870- 
1895  At  this  time  India  and  Japan  began  to 
compete  with  Chin*  for  the  world  tea  trade. 
but  silk  exports  continued  to  Increase,  and 
by  1890  silk  displaced  tea  as  China's  leading 
export  product  New  export  products  such 
as  raw  cotton,  vegetable  oils,  hog  bristles. 
skins,  hides  and  egg  products  were  now 
added  The  1890  trade  pattern  was  exports— 
»Uk  and  silk  goods  33  9'"..  tea  30  8%.  and  raw 
cotton  3.4'-r:  and  Imports — cotton  goods  and 
cotton  yams  355%.  opium  195%.  cereaU  and 
flour  9  6%.  and  metals  57%.  (Table  3,  page 
12)  By  1895  Imports  amounted  to*  tl40 
miUlon  and  experts  to  HIS  million  Another 
Important  development  was  the  rise  of  Im- 
port* of  kerosene  for  household  Illumina- 
tion— "Oil  for  the  Lamps  of  China  ' 

The  Increase  In  foreign  trade  generated  a 
demand  for  modem  banking  facilities,  an  In- 
crease In  shipping,  and  the  construction  of 
ahlp  repair  and  shipbuilding  yards. 

Foreign  trade  and  other  economic  actlv- 
itles  in  the  Treaty  Ports  were  dominated  by 
foreign  firms:  however  the  Chinese  merchant 
class  was  accumulating  wealth,  much  of 
which  found  outlets  In  real  estate,  ware- 
bousing  and  speculation. 

In  18T7  China  establuhed  In  London  its 
first  foreign  legation  abroad.  In  the  next  two 


'  Opium  probably  higher  percentage  due  to 
smuggling 

•Dollar  figures  In  this  tract  are  expressed 
In  Untied  States  currency  unless  otherwise 
stated 


years  legations  were  established  In  Paris, 
Berlin,  Madrid.  Washington.  Tokyo  and  St. 
Petersburg  By  1890  China  had  taken  her 
place  In  the  family  of  nations. 

On  the  eve  of  the  Japanese  aggression  In 
Korea    and    the    1894-1895    Sino-Japan    war. 
In  spite  of  the  self-strengthening  program. 
there    was   very   little    modem    industry    In 
China,  and  the  turning  point  In  China's  eco- 
nomic   growth    can    be    traced    to    the    1895 
Treaty  of  Shlmonosekl  by  which  the  Japanese 
received  the  rights  to  own  and  operate  In- 
dustrial establishments  In  the  Treaty  Ports. 
The  other  powers  also  exercised  their  rights 
and  as  a  result  industrial  capacity,  railroads, 
shipping  and  foreign  trade  grew 
Table  2. — Commodity  compotition  of  China's 
exporti  and  imports.  1890 
Exports 
Silk    and   SUk   Ooods:    33  9%    Tea:    30.6% 
Raw  Cotton:    34%    Other:   32.1% 
Imports 
Cotton    Ooods    and    Cotton    Yarn:    36.6% 
Opium    19  5% 

Cereals   and    Wheat    Flour:    9  6%    Metals 
57%  Other:  297% 
(Source:  Eckstein). 

In  1900  there  was  another  violent  uprising. 
The  Boxer  Rebellion  began  mostly  as  a  re- 
action to  the  Germans  The  Boxers  killed  the 
German  minister  and  laid  selge  to  the  foreign 
ministries  In  Peking.  An  International  force. 
Including  the  United  States,  captured  Peking 
and  an  eight-power  occupation  took  over. 
The  Manchus.  although  maintained  In  office, 
were  reduced  In  Influence  and  power  even 
more.  In  1908  the  contentious  Empress 
Dowager  Tz'u-hsl  died.  She  had  ruled  for 
fifty  years.  A  new  rebellion  under  the  leader- 
ship of  Sun  Yat-sen  broke  out  In  1911.  and 
In  1913  the  dynastic  system  wm  abolished 
for  the  flrst  time  In  4000  years  In  spite  of  all 
the  strife,  foreign  trade  had  trebled  between 
1895  and  1913 

Trade  expansion  was  slowed  by  World 
War  I  and  In  general  the  rate  of  growth  was 
considerably  slower  from  this  point  onwards. 
China  had  an  unfavorable  balance  of  trade 
during  the  overall  period  1895-1936.  financed 
by  capital  Importa  in  the  form  of  foreign 
loans  and  Investments. 

Growing  diversification  was  the  most  Im- 
portant change  in  China's  foreign  trade  In 
the  first  half  of  the  twentieth  century.  By 
1931  sUk  and  tea  exports  fell  to  17%  from 
nearly  95%  in  1868  They  were  replaced  by 
soy  beans  and  cake,  vegetable  oils,  hides  and 
skins,  eggs  and  egg  products,  coal,  and  ores 
of  antimony  and  tungsten  The  textile  In- 
dustry demands,  consisting  of  raw  cotton, 
finished  textiles  and  textile  machinery. 
dominated  the  Import  pattern  Additional 
Impwrt  Items  were  cereals  and  flour,  sugar, 
chemicals,  metals,  tobacco  and  kerosene 
(Table  3.  below). 

From  the  fall  of  the  Manchus  in  1913  to 
the  founding  of  the  Peopt<>'s  Republic  of 
China  In  1949.  China  was  in  a  troubled  and 
violent  state  In  1916  after  abortive  attempta 
to  reinstltute  a  monarchy,  the  warlord  era 
began.  It  lasted  from  1916  to  1925  and  re- 
sulted In  the  almoet  complete  collapse  of 
the  country  Trade  was  conflned  to  the 
Treaty  Porta 

In  1931  the  Japanese  attacked  and  In  five 
months  kad  taken  over  all  of  ManchurU 
In  1932  the  Japanese  opened  a  second  front 
In  Shanghai  to  divert  attention  from  Man- 
churU, resulting  In  a  truce  later  that  year 
The  struggle  for  power  between  the  Na- 
tlonallsta  and  the  Communlsta.  resulting  in 
1934  In  the  Communlsta'  6000  mile  "long 
march  "  of  indescribable  hardship,  left  the 
coGntry  weakened 

Taslx  3  — Commodity  romposition  of  Chinas 
exports  and  imports.  1931 
Kxroars 
Soy    Beans    and    Bean    Cake:    314%.    SUk 
and  SUk  Goods    133%. 


Seeds  and  OU:  8.4%.  Raw  Cotton  and  Cot- 
ton Ooods:  7.8%. 

Hides  and  Skins:  4.1%.  Eggs  and  Egg 
Producta:  4  1%    Tea    37%. 

Co«l:  S.0%.  Ores  and  Metals:  1.6%.  Other: 
32.8%. 

UCPOSTS 

Raw  Cotton  and  Cotton  Ooods:  ao.6%. 
Cereal  and  Flour:  13.6%. 

Chemicals  and  Pigments:  8.0%.  Sugar: 
6  0%.  Metals:  6.2%. 

Tobacco:  4  4%.  Kerosene:  4.5%.  Machin- 
ery:  3.1%.  Other:  34.7%.  , 

(Source:  Eckstein.) 

In  1937  the  Japanese  attacked  In  force  In 
the  Peking  region.  For  the  Chinese,  World 
War  n  had  started.  August  1946  ended  the 
war  against  Japan  but  the  war  for  control  of 
China  continued.  By  the  middle  of  1946  Civil 
War  between  the  Natlonalista  under  Chiang 
Kai-shek  and  the  Communlsta  led  by  Mao 
Tse-tung  was  In  full  force.  In  two  years 
the  Nationalists  had  been  driven  from  the 
mainland  to  Taiwan  In  Peking  on  October  1, 
1949.  the  Peoples  Republic  of  China  was 
proclaimed. 

(b)    1949  A.D.-1972  AJ). 

When  the  Chinese  Communlsta  took  over 
In  1949,  China  was  a  war  torn,  devastated  and 
Inflation -ridden  economy  with  a  ONP  of 
possibly  JSO  per  capita,  a  population  of  be- 
tween 500-550  mUllon  with,  at  most.  3  mU- 
llon  workers  employed  In  modern-t>-pe  In- 
dustry. Most  of  the  economy  was  In  agricul- 
ture, with  very  low  labour  productivity.  In- 
dustrial production  was  small,  constituting 
about  10%  of  the  national  product  Trans- 
portation and  communication  facilities  were 
badly  disorganized  and  the  country  had  little 
accumulated  capital  The  economy  was 
divided  Into  three  separate  and  distinct 
broad  entitles  One,  the  traditional  under- 
developed agricultural  based  5ector;  two. 
the  modem  Treaty  Porta.  Shanghai  and  con- 
tiguous areas:  and  three.  Industrialized 
Manchuria. 

Within  a  year  of  Ita  founding,  the  Peoples 
Republic  of  China  was  Involved  In  the 
Korean  War  In  spite  of  the  effecta  of  this 
war.  the  economy  was  restored  to  working 
order  In  a  relatively  short  period  of  time  By 
1951  the  rate  of  Inflation  was  under  control 
and  fiscal  and  monetary  stability  was  re- 
stored. Tlje  basis  for  increased  Industrializa- 
tion had  been  established 

By  1953  the  Chinese  were  "ready  to  launch 
their  first  5-year  plan,  but  long  term  plan- 
ning on  a  comprehensive  scale  did  not  com- 
mence until  about  mid- 1955  By  the  end  of 
1956  the  process  of  nationalization  of  the 
economy  was  completed  During  this  period 
stress  was  placed  on  industrialization,  par- 
ticularly heavy  Industry  Following  comple- 
tion of  the  first  5-year  plan,  during  which 
Industrial  production  Is  estimated  to  have 
doubled,  reaching  a  level  of  four  times  that 
of  1949.  the  'Great  Leap  Forward"  was 
launched  This  plan  emphasized  labour  In- 
tensive efforta  to  improve  Irrigation,  flood 
control  and  land  reclamation  to  Improve 
agricultural  yields  with  minimum  capital 
Input  First  resulta  led  to  over  optimism,  but 
bad  harvesta  In  1969  and  1960  caused  eco- 
nomic problems 

Up  to  this  point,  Soviet  credlta.  technical 
assistance  and  capital  equipment,  includ- 
ing more  than  150  comnlete  industrial  nianta 
on  10-year  credlta.  had  helped  considerably 
In  the  promotion  of  Industrial  growth,  but 
developing  quarrels  led  to  Soviet  withdrawals 
of  technical  aid  In  1960-1961  The  Soviet 
credlta  were  paid  In  full  by  delivery  of  com- 
modities at  a  time  when  the  economy  was 
severely  strained 

The  causes  and  short  and  long  term  eco- 
nomic effecta  of  the  "Cultural  Revolution" 
of   1966-1967  are   too  recent  to  fully  assess 

The    second   and    third    6-year    programs 


December  20. 


CONGRtsMONAL   RIXORD  —  SKN ATI: 


42605 


were  comp,et<>,-i  ar.ci  t;,e  f.  •,.,-■: h  ?-yeaj  pn- 
gra.T.  wa^  «ta.-t«Kl  ii,  iw":  Ti.r.^xigh  UieBe 
pr  v-rt::.-  '/.f.  :.H-:  i.h,  (_■■_  _-:.un:j  ^  m,  cuxi,- 
pletely  -^  ;a.;/»v;  and  emphasis  has  again 
been  p.».  .-d  ;.  .-.-cent  years  on  industrial 
development,  particularly  et*^;  }»  trochem- 
ical  and  fertilizer  production 

In  tarms  of  ••:  a:  Chinese  Communist 
policy,  foreign  tratie  has  three  objectives: 
to  facUUata  rapid  Industrial  growth;  to  pro- 
mota  self-reliance,  for  example,  If  neces- 
sary, by  Importing  entirf  plant  faculties  In 
order  in  turn  to  develop  Independent  do- 
mesUc  Boiux;es  of  supply;  and  to  serve  as 
an  Instrument  for  implementation  of  for- 
eign policy  objectives. 

There  has  been  a  noted  change  In  China's 


irttUiU(5  pai.i«nis  since  the  early  days  o'  the 
Communist  regime.  For  example,  there  has 
been  an  almost  continual  decline  in  China- 
U.S.SJi.  trade,  which  was  at  Ita  peak  in  1959. 
The  trading  pattam  has  changed  fron.  .>  > 
dependency  on  the  communist  b.  .  u  waj^c 
expanded  trade  with  non-commui^.s:  lu.-^- 
trles.  In  addition,  a  need  for  Increased  im- 
porta of  foods  and  raw  materials  cha.-.up<1 
China  from  a  net  exportar  of  foodsttxfls  :  a 
net  Importer.  This  has  required  a  .arge 
amount  of  foreign  exchange,  Impeding  Im- 
porta of  capital  goods.  External  trade  began 
to  level  off  from  1956-1957,  but  began  to 
climb  again  In  1968.  It  decUned  in  1960-1962, 
due  In  large  part  to  the  economic  setback 
caused  by  poor  harvesta  and  the  suspension 


of  Soviet  economic  and  technological  assist- 
ance. A  sharp  upturn  took  place  In  1963. 

China's  Intamatlonal  trade  was  at  a  peak 
of  »4,270  mmion  In  1959.  It  fell  to  »2,676  mll- 
ion  In  1962  but  recovered  by  1970  to  H,225 
miUion  consisting  of  $2,060  mUllon  exporta 
and  $2,166  mUJion  of  Importa.  By  1970  two- 
way  trade  between  China  and  the  Soviet 
Union  was  reduced  to  a  mere  $47.0  mlUlon. 
In  November  1970  a  payments  and  trade 
agreement  resulted  In  an  Increase  In  China- 
Soviet  trade  to  »154.1  mUllon  In  1971  and  an 
estimated  $300  mUllon  In  1972.  However,  since 
the  early  1960s  China  has  been  placing  In- 
creasing importance  on  her  trading  relation- 
ships with  non-communist  countries.  (Table 
4,  below.) 


TABLE  4.-TRENDS  IN  CHINA'S  TRADE  WITH  COMMUNIST  AND  NON-COMMUNIST  COUNTRIES,  1951-72 

IMJHwRS  U  S.  doNars) 


Non-(k>mmunist  countries 


Trade 


Percent 


1.26S 

47,3 

1,S10 

54  8 

2,120 

65  3 

2.570 

69,5 

3,105 

73.8 

3,060 

79  3 

2,910 

78.4 

3,100 

79  8 

3,385 

80.5 

3.550 

77.2 

'4,350 

79.1 

■  Estimated 


In  1969,  Chinese  trade  with  Japan  and 
western  Industrialized  countries.  West  Ger- 
many. Britain.  France.  Italy  and  Switzerland 
reached  $1,499.6  mUllon,  with  a  trade  bal- 
ance unfavorable  to  China  of  $196.6  mUllon. 


Sources:  1951-69-JETRO  197fr-72-pnv8te  estimates. 


The  wheat  exporting  countries  of  Australia 
and  Canada,  on  sales  to  China  of  $244.5  mU- 
llon and  Importa  of  $67.5  miuion,  had  a  posi- 
tive trade  balance  of  $187.0  mUllon.  (Table  5 
below) . 


Trade  with  Southeast  Asian  countries 
Hong  Kong.  Singapore.  Malaysia.  Ceylon  and 
Pakistan  reached  a  peak  level  of  $890.3  mll- 
hon  due  to  large  increases  in  export  of  food- 
stuffs, with  a  balance  favourable  to  China 
of  $622.1  mllUon.  (Table  5,  below) . 


TABLE  5.-CHINA  TRADE  AND  TRADE  BALANCES  MAJOR  COUNTRIES  AND  AREAS,  1969-Continued 


(Millions  U.S.  dollani 


Eiporl       Import         Total      Balance 


Percent 
trade 

non-Com- 
munist 

countries 


'»9*" 234.5 

Brrtain gg  g 

West  Gensany .".".'.".■.■:.'".■  88.2 

France 71  9 

luiy ::::;:;::  mi 

Belgium-Luienibourg 12  4 

Switzerland '"  19' q 

Denmark '"" 9  | 

Net^crlands '.'.'.'.'.'.'. 27' 9 

S*»den. li  3 

Norway 5  9 

Austria    "'"  99 

Yufoslavia '."""""["  .9 

Total     Western     indusUializad 

countries 652.0 

Arfentina o_  7 


390.8 

124.6 

157.9 

41.9 

56.3 

16.4 

14.4 

1.3 

23.0 

11.6 

4.8 

4.0 

.6 


625.3 

215.2 

246.1 

113.1 

120.4 

28.8 

33.4 

10,4 

50.9 

29.9 

10.7 

13.9 

1.5 


-156.3 

23,2 

-34.0 

80 

-69.7 

-(-29.3 

-f-7.8 

-4.0 

+4.6 

-(-7.8 

-(-4.9 

-H6.7 

-(-1.1 

-(-5.9 

+.3 

847.6     1,499.6      -1916 


55.7 


Export       Import  Total      Balance 


Percent 

trade 

non-(^m- 

munist 
countries 


0.3 


-H).4 


Canada 15  4 

Australia '.'.'.'..'.'.'. 34' 7 

New  Zealand ...III'.'.'....  5.  7 

Total  wheal  exporting  countries 

and  others 57.5 

Hong  Kong 445l5~ 

S'"«fpo™ -■"":::::  lae.? 

Ceylon 45  4 

Pakistan ""II 26  4 

Maylaysia IIIIIIIIII""  57,2 

Total  (South  East  Asian  countries).  706. 2 

Total    1  415  7 

Total  foreign  trade 2I060I0 


122.4 

117.2 

4.6 


138.8 

151.9 

10,3 


-106.0 
-82.5 
-(-1.1 


5.2 

5.6 

.4 


244.5        302.0      -187.0 


11  2 


6.1 

57.1 

47.4 
28  9 
44.6 


451.6 
198.3 

87.8 

55.3 

101.8 


[-439.4 

16.8 

+79.6 

7.2 

-7.0 

3.3 

-2.5 

2.0 

+12.6 

3.8 

184.1 


890.3      -i-522.1 


1,276.2 
1.82S.0 


2.691.9 
3.885.0 


+139.5 
+1K.0 


33.1 

"iooTo 


Source'  JETRO 


China's  domestic  economy  under  the 
5-year  plan  Is  making  staady  progress  and 
the  9cale  of  her  foreign  trade  Is  on  a  rising 
curve. 

China  competes  with  the  Soviet  Union  for 
second  place  behind  the  United  States  In  the 
value  of  agricultural  commodities  produced. 
It  produces  more  rice.  mUlet.  sweet  potatoes, 
sesame  and  rapeseed  than  any  other  nation 
and  ranks  second  or  third  In  soy  beans,  to- 
bacco, wheat  and  cotton  It  Is  the  world's 
largest  consumer  of  cotton,  and  Is  the  larg- 
est producer  of  cotton  textiles.  \*-ith  more 
than  200  mllU.  155  mllUon  spindles  and 
460,000  weaving  machines.  1971  textile  pro- 
duction was  9  3  bUllon  yards.  More  hogs  are 
raised  In  China  than  In  any  other  country. 

The  composition  of  Chinese  goods  Imported 
and  exported  Is  determined  by  demands  of 
economic  development  based  In  turn  on  the 


principles  of  self-sufl3clency  and  Industrial 
and  agricultural  growth.  Therefore,  Importa 
are  conflned  to  absolute  necessities  that  meet 
the  stated  criteria.  As  a  rule,  consumer  goods 
are  not  Imported,  but  capital  goods  and  In- 
dustrial materials  In  short  supply  receive  a 
priority  against  foreign  exchange  avallabUlty. 
There  are  some  exceptions,  for  example, 
emergency  food  supplies,  some  re-export 
Items  and  occasional  Importa  for  poUtlcal 
reasons. 

The  pattern  of  Importa  and  exporta  has 
changed  with  changing  conditions.  During 
t^e  1960's.  machinery  and  eqiUpment  ranked 
flrst,  foUowed  by  Iron  and  steel,  non-ferrous 
metals,  textiles,  chemical  producta,  petro- 
leum and  petroleum  producta.  rubber  and 
foodstuffs.  During  the  1960's  there  was  an 
overall  decrease  In  machinery  and  equipment 
as  weU  as  Industrial  raw  matertals,  particu- 


larly mineral  fuels  and  petroleum  producta 
whereas  the  agricultural  sector  received  a 
priority  resulting  in  Increased  Imports  of 
cereals  and  chemical  fertlUzers  In  very  large 
quantities,   (Table  6.) 

With  regard  to  the  composition  of  exporta 
during  the  1960's,  foodstuffs  accounted  for 
20-30%  of  total  exports.  Major  Items  were 
pork,  beef,  poultry,  canned  meat  and  mush- 
rooms, rice,  com,  fruit,  vegetables,  fish,  dairy 
producta.  sugar,  tea  and  feed.  TextUes,  In- 
cluding raw  sUk  and  wool  and  clothing  prod- 
ucte  lire  Important  exporta  although  drop- 
ping from  40%  to  close  to  20%  of  the  total 
during  the  decade  Pig  iron  Is  an  important 
export  Item  and  exporta  of  Iron  and  steel 
producta  have  increased  The  position  of  oU- 
bearlng  seeds  such  as  soy  beans,  peanuta  and 
sunflowers  has  been  maintained,  (Table  7.) 


42666 


CON  I  K  f  ^>IONAL  RECORD  —  SENATE 


By  1M»  the  composition  of  ChUi»»  Unportx 
was:  iron  wid  steel  17  0%.  wheat  16.1%. 
chemicals  and  fertilizers  16  1%,  machinery 
13  7  ; .  non-ferrous  metals  8.8%.  rubber 
6  e*",  .  and  textile  yam  and  fibre  6  6%  i Table 
8)  (Figure  4).  1969  exports  Included.  textUaa 
and    clothing    28.9%.    foodstuffs    and    anl- 


December  20,  197S 


mala  38 J%.  and  industrial  product*  16  7% 
(Table  »)   (  Figure  5) 

Trade  balance  is  particularly  Important 
In  China's  international  payments  Prin- 
ciple revenue  Items  are  proflu  from  trade 
balanoM  (mortly  faTourable)  with  Hong 
Kong  and  Southeast  Asia,  and  remittances 


from  expatriate*  Because  China  has  main- 
tained Its  freedom  from  external  or  Internal 
debta.  foreign  trade  has  been  kept  roughly 
In  balance,  although  China  has  Imported  food 
on  a  deferred  payment  basis  and  Industrial 
plants  are  currently  being  negotiated  on  the 
same  basis. 


TABU  1-C0MPAR1S0N  COMPOSlTlOM  OF  CHINA'S  IMPOrTS,  U«H6 
IMillNfB  of  u^  da«sn| 


Food.  Iivt  animjis,  ctfMb... 3J  3 

Mxhirttry 561  7 

Chemicals  ind  lertiluerj.J gg' g 

Teitiles  and  textile  products '.'.'.'.'.  166  8 

Rubber  and  rubber  products                  *  95  9 

I ron  ar>d  steel '.'.'.'.'.'.'.  183.6 


2.5 

37.4 

5.8 

11.1 
6.4 
12.2 


436.6 

3SI.7 
211.3 
149.9 
105.3 
206.3 


26.1 
21.0 
12.6 
8.9 
6.3 
12.3 


+398.3 

-210.0 

+124.  5 

-16.9 

+9.4 
+22.7 


Nonftrrouj  metalj gl  | 

Mineral  lueh  and  petraiMm  and  petie- 

leum  products 115.9 

Undassifted '..'.'.  \vLi 

Totil 1.S012 


5.4 

7.7 
11.5 


57.7 

2.9 
153.7 


3.4 

.2 
9.2 


-24.1 

-113.0 
-18.7 


100.0      1,675.4         100.0       +172.2 


'  **P™»«"<»  '<  percent  of  estimated  total  imports. 
'  Represents  82  percent  of  estimated  total  imports 


Source:  JETRO. 

TABU  7.-C0MPARIS0N  COMPOSITION  OF  CHINA'S  EXPORTS,  1960-66 
IMilliORS  of  US.  dflllarsi 


1960  > 


Value      Percent 


1966  > 

Plus  Of 

Value      Percent  minus 


Foodstuffs  including  live  animals,  rice 

cereals.  Ifuit,  lea 351  5 

Textiles  and  textile  products    ...."....'.'  609  6 

Animal  and  legetaMe  materisls.  102  9 

Seeds  and  oil  seeds. '...  113  g 

Chemicals 34'  5 

°'*^       m:::::::::::  7^3 


21 9 

5902 

37.9 

4005 

6.4 

127.2 

7.1 

102.2 

2.1 

63.3 

4.7 

57.0 

30.1 
20.5 
6.5 
5.2 
12 
2.9 


+2317 
+209.  I 
+24.3 
-11.4 
+2S.8 
-19.3 


I960> 


1966  > 


Value      Ptrcent 


Value      Percent 


Plus  or 
minus 


Ironandsteel 22.8            1.4 

Nonferrous  metals 74  2             47 

Building  materials ".".  20  1             12 

Undassified '."_  2010          12!6 

Total 1.608.5  100.0      1,958.8 


50.8 

22.6 

16.1 

528.9 


2.6 

1.2 

08 

27.0 


+28.0 

-51.6 

-4.0 

+325.9 


100. 0        +350.  3 


'  Represents  82  percent  of  estimated  total  exports 
-  Represents  90  percent  of  estimated  laul  exports. 


TABU   8     COMPOSITION    OF   CHINAS    IMPORTS.    1969 
[Millions  Of  US.  dollarsi 


Scarce:  JETRO. 


TABU  9. -COMPOSITION  OF  CHINAS  EXPORTS,  1969 
(MiliMns  U.S.  doHarsI 


Value        Percent 


Ironandsted 310 

Wheat ;.  295 

ChemicaJs  and  chemical  fertilinrt 295 

Machinery  and  equipment 250 

•Nonferrous  metals |60 

Rubber \'^  \jf^ 

Textile  yarn  and  fibre... "Ill""  120 

Other  crude  materials 120 

0«»« I  155 

Total 1,J25 


Value        Percent 


17.0 
16.1 
16.1 
117 
8.8 
&6 
6.6 
&6 
15 


100.0 


Source:  JETRO. 

As  far  aa  detailed  current  imports  are 
concerned,  China  has  rapidly  Increased  her 
self-supporting  capability  regarding  ma- 
chinery. Although  a  wide  range  of  mechani- 
cal equipment  has  been  imported  over  the 
years,  emphasis  has  been  placed  of  late  on 
aircraft,  office  machines,  power  transporta- 
tion and  distribution  equipment.  Also,  China 
13  giving  particular  support  to  truck  and 
tractor  production  and  to  shipbuilding. 

Agriculture-supporting  chemical  products, 
such  as  fertUlzer,  account  for  the  largest 
part  of  chemical  Imports.  Although  fertUlzer 
production  Is  growing.  It  will  likely  be  a  long 
time  before  the  country  is  self-sufHclent. 

China  has  become  the  world's  largest  Im- 
porter of  nitrogenous  and  other  fertilizers 
and.  as  a  consumer,  is  exceeded  only  by  the 
Soviet  Union  and  the  United  States.  A  re- 
cent estimate  has  pUced  Chinas  needs  for 
fertilizers  at  more  than  50  million  tons  per 
year  compared  with  1970  availability  of  14 
mUllon  tons.  China's  soU  Is  said  to  be  potas- 
sium rather  than  nitrogen  deficient. 


Textiles  including  yarn  and  dotbing 595  2g  9 

Foodstuffs  and  animah Jgo  28  2 

Other  industrial  products '.'..'."  345  117 

Crude  animal  matariats.. 110  i  1 

otiie«js :.: M       x\ 

Chemicals "  w  44 

Iron  and  steel "  15  07 

Non-ferrous  metals '. iq  "5 

^^^<^ 225  109 

Tow Tom       ioao 

Source  rlfrRO. 

Iron  and  steel  imports  will  continue  to  be 
an  area  of  intensive  competition.  Non- 
ferrous  Imports  have  increased  rapidly,  with 
nickel,  copper,  aluminum,  platinum  metals 
and  zinc  continuing  to  be  In  good  demand, 
probably  due  to  a  steady  and  substantial 
growth  In  Industrialization.  The  wheat  sit- 
uation Ls  complicated  and  the  future  unclear. 
China'  has  Imported  4-7  million  tons  of 
wheat  each  yew  since  1962  except  for  1971 
when  3.2  mUllon  tons  were  purchased  With 
2  million  tons  from  the  VS..  over  2  6  million 
tons  from  Canada,  and  1  mUllon  tons  from 
Australia  already  purchased,  it  Is  clear  that 
China  s  wheat  Imports  In  1973  will  be  signif- 
icantly above  the  4.5  mlUlon  ton  average 
for  the  1960s.  Concurrently  with  wheat 
Imports,  China  has  been  exporting  fairly 
large  quantities  of  rice,  with  a  higher  unit 
price  than  wheat,  and  processed  food  with 
value  added. 

And  now  we  have  come  to  the  end  of  a 
2,000-year  Journey  through  Chinas  trade 
and  economic  history.  The  big  questions  now 


are:  What  la  China's  position  today?  What 
are  the  prospects  for  future  import-export 
trade  with  China? 

n    THK    PaZSENT 

(Conduct  of  trade  betxceen  China  and  for- 
eign countries — Today  and  in  Prospect) 
The  foreign  trade  of  China  Is  a  state 
monopoly  and  is  completely  controUed  by 
the  state-owned  trading  corporations  and  the 
Bank  of  China — aU  government  organiza- 
tions. China's  trade  policy  Is  highly  protec- 
tionist and  Is  designed  to  protect  and  de- 
velop domestic  Industries.  Priority  Is  given 
to  those  imports  which  will  aid  in  rapidly 
building  China's  industrial  capacity 

Regarding  operating  detail,  the  Ministry 
of  Foreign  Trade  sots  Import  and  export 
quotas  and  operates  a  network  of  nine  state 
trading  corporations  organized  by  com- 
modltlee.  It  has  exclusive  reaponslbUlty  In 
this  area.  (Figure  6).  All  external  relations  In 
China's  planned  economy  are  under  State 
control.  Each  trading  corporation  has  a  head 
office  In  Peking  with  branch  offices  In  various 
Industrial  centres  near  their  major  end  users 
In  the  case  of  lmp>orts.  or  supply  sources  for 
exports.  Each  corporation  Is  totaUy  respon- 
sible for  the  Import  and  export  of  Its  par- 
ticular commodities.  Import  procurements 
are  based  entUely  on  specific  end  user  needs 
as  approved  by  the  Ministry  of  Foreign  Trade. 
In  addition  to  the  nine  trading  oorpora- 
tlons,  there  are  several  organizations  provid- 
ing support  8er\'lces  such  as  foreign  trade  re- 
lations, shipping.  Insurance  and  banking,  for 
example:  the  Office  for  Economic  Relatione 
with  Foreign  Countries,  the  China  Committee 
for  the  Promotion  of  International  Trade,  the 
China  National  Chartering  Corporation,  the 
China  National  Foreign  Trade  Transporta- 
Uon  Corporation,  the  China  C>oe«ui  Shipping 
Company,  the  China  Ocean  Shipping  Agency, 


December  20,  1973 


the  People's  Insurance  Company  of  China 
and  the  Bank  of  China  which  h^-^dlas  aU 
>»">f'"g  arrangementa  and  has  offlcas  in 
commercial  centres  stich  as  London,  Singa- 
pore, Karachi  and  Hong  Kong. 

The  first  step  lu  making  busUiess  contacts 
In  China  is  to  determine  the  trading  oofpora- 
tlon  handling  sptici&c  prodacus  of  interest 
and  to  make  formal  propoaals.  Major  deci- 
sions regarding  Imports  and  export*  aj-e  miide 
by  the  bead  office  of  the  corporation.  The 
oofjx>rattona  require  comprehensive  InXor- 
matlon  regarding  the  seUlng  company  and  its 
products  In  order  to  be  able  to  propw:  v  evalu- 
ate propositions. 

With  nine  central  trading  corporations 
handUng  all  of  the  import  and  export  busl- 
naas  with  more  than  100  countries  and  slmul- 
tanaously  coordinating  Import  demands  and 
eiq?ort  programs  of  hundreds  of  producers 
and  end  users,  possible  delays  In  replies  can 
be  «4>preclated. 

Once  a  corporation  shows  a  real  Interest 
In  a  firm  and  its  commodities,  communica- 
tions become  easier  and  business  expedited 
Visits  to  China  for  direct  negotiations  are 
InlUated  by  the  trading  corporations  and 
generally  begin  with  visits  to  the  twice- 
yearly  Kwangchow  (Canton)  Export  Com- 
modities Trade  Pair,  which  runs  from  April 
16-May  15  and  from  October  15-November 
16.  The  "Canton  Pair"  was  designed  to  be 
a  showpiace  for  Chinese  agricultural  and 
Industrial  achievements  and  products  for 
export,  but  in  actual  fact  It  Is  an  Interna- 
tional market  place  bringing  together  buvers 
and  sellers  from  all  comers  of  the  world  to 
compete  for  Chinese  import  and  export  busi- 
ness. It  presents  a  unique  opportunity  to 
meet  In  person  representatives  of  the  Chi- 
nese trading  corporations  and  to  engage  In 
practical  business  discussions.  Trade  officials 
Indicated  that  there  were  about  23.000  for- 
eign visitors  from  almost  100  countries  in 
attendance  at  the  1973  Spring  Pair  and  there 
were  over  30.000  Chinese  product*  on  view 
Indications  are  that  up  to  50%  of  Chinas 
annual  foreign  trade  is  negotiated  at  the 
combined  Spring  and  Pall  Fairs. 

Attendance  at  the  fair  is  by  "invitation 
only  "  from  a  trading  corporation.  Owing  to 
the  great  Increase  in  the  number  of  requests 
for  invitations,  they  are  confined  to  firms 
with  which  the  trading  corporations  either 
have  working  relationships  or  consider  the 
development  of  relationships  to  be  desirable 
Contracu  are  Important  In  trading  with 
China  and  because  the  Chinese  insist  on 
using  their  own  standard  forms,  the  terms 
contained  give  maximum  protection  to  the 
trading  corporations.  Strict  adherence  Is  re- 
quired Chinese  Import  and  export  contracts 
usually  conform  to  norma]  business  practice 
AlteraUons  or  addition  of  new  terms.  If  reas- 
onable, can  be  negotiated. 

Trade  settlements  are  made  chiefly 
through  letters  of  credit  but  rarely  letters 
of  guarantee.  The  Bank  of  China  handles 
the  settlement  of  accounts  in  accordance 
with  correspondence  agreements  concluded 
with  the  foreign  exchange  banks  of  the 
trading  countries 

Under  normal  conditions  it  is  not  pos- 
sUile  to  obtain  a  confirmed  letter  of  credit 
because  China  does  not  foUow  the  accepted 
international  practice  of  having  its  credits 
confirmed  by  a  bank  in  the  seller's  country 
But  the  Bank  of  China  has  eeUblUhed  a 
reputation  for  scrupulously  honouring  its 
commitments.  Documents  are  usually  neeo- 
tlated  in  China  by  the  exporter's  bank 

Por  Imports  from  China,  the  terms  usuaUy 
specify  payment  by  confirmed  Irrevocable 
letter  of  credit  without  recourse,  with  pay- 
ment In  a  Western  currency,  often  pounds 
sterling  or  Swiss  francs.  The  letter  of  credit 
may  be  negotiated  through  the  Bank  of 
China  against  presentation  of  documents.  In 
some  lnstar>oe«  the  Chinese  trading  corpora- 
Uona    wUl    accept    payment    by    confirmed 


CONGRESSIONAL  RECORD  — SENATE 


42667 


letter  of  credit  through  the  Bank  of  China 
In  London  or  Hong  Kong 

China's  reputation  for  meeting  its  flnancia. 
obUgatlons  is  among  the  highest  In  the 
world.  China  has  Deen  moving  toward  more 
fiexible  settlement  lormulae.  including  par- 
tial adoption  of  long-range  barter  trade,  de- 
ferred Installment  payments  for  large  wheat 
imports  and  deferred  medlum-raiige  pavmei.: 
contracts  for  purchase  or  piam,  machinery 
and  equipment.  Contracts  are  o.'ten  nego- 
tiated In  Chinese  currency  and  several  char- 
tered banks  have  made  arrangements  with 
the  Bank  of  China  to  handle  Renminbi  ac- 
counts. 

China.  In  implementing  its  protectionist 
trade  policy,  has  numerous  regiUatlons 
covering  all  customs  matters  Including  inter- 
national shipping  and  raU  and  air  freight 
cargo  m  transit  and  tourism.  Complete  and 
proper  documentation  Is  of  great  Importance 
In  accomplishing  satisfactory  trade  relations 
China  IS  now  concentrating  on  movement  of 
goods  by  sea  In  its  own  vessels  and  In  direct 
charters,  due  probably  to  the  great  increase 
In  trade  with  non-communist  coimtrles. 

A  Commodity  Inspection  and  Testing 
Bureau  operating  under  the  Ministry  of 
Foreign  Trade  checks  both  Imports  and  ex- 
ports. It  has  over  50  offices  in  major  ports  and 
trade  centers. 

The  Chinese  prefer  claims  to  be  settled  if 
possible,  by  consultation  and  agreement  be- 
tween the  parties  to  a  contract.  If  the  dispute 
cannot  be  resolved  through  consultation  the 
contract  usually  caUs  for  It  to  be  referred  to 
arbitration  conducted  by  the  Foreign  Trade 
Arbitration  Committee  of  the  China  Council 
for  the  Promotion  of  International  Trade. 

Under  certain  conditions,  the  trading  cor- 
porations WUl  accept  arbitration  In  the  coun- 
try of  the  defendant  or  In  a  third  country 
Past  experience  shows  the  Chinese  are  fair 
with  claims,  which  can  usually  be  negoti- 
ated. ^ 

WhUe  no  International  commercial  prac- 
tices have  been  established  for  the  overall 
protection  of  "Uitellectual  property"  such  as 
patents  and  Industrial  design,  recently  China 
has  entered  into  several  bUateral  agreements 
which  enable  foreign  firms  to  register  trade- 
marks. 

Entry  into  and  exit  out  of  China  are  all 
rigidly  controlled.  No  market  research  ac- 
tivities can  be  carried  out  within  China 

As  to  current  economic  conditions.  In  spite 
of  bad  weather  which  adversely  affected  agri- 
culture last  year.  China  appears  to  have  made 
considerable  economic  progress  in  1972  and 
to  date  this  year.  There  has  been  a  concerted 
effort  to  develop  trade  and  economic  rela- 
tions vinth  practically  all  countries  of  the 
world. 

Although  precise  sUtlstlcs  are  difficult  to 
obtain,  the  Chinese  economy  U  continuing  to 
develop  at  a  satisfactory  rate  Record  pro- 
duction levels  have  been  indicated,  particu- 
larly in  Industry.  Significant  expansion  of 
the  country's  energy  resources  has  been  re- 
corded, with  coal  production  in  1971  esti- 
mated at  325-350  mUllon  tons;  petroleum  at 
23-25  mUIlon  tons:  and  electric  power  at 
70-75  bUUon  KW  hours  Steel  production 
reached  an  estimated  23  mlUlon  tons  and  dIk 
Iron  24  mUllon  tons 

As  indicated,  the  one  area  in  which  prog- 
ress slowed  was  agriculture,  which  suffered 
an  estimated  four  per  cent  decline  in  pro- 
duction in  1972  This  resulted  In  Increased 
Imports  of  wheat,  with  Canada  again  the 
main  stippiier.  although  additional  tonnage 
was  purchased  from  the  United  States  and 
Atistralia.  Wheat  Import*  which  tota'led  3  2 
mlUlon  tons  in  1 971.  and  5  mlUlon  tons  In 
in  1973*''*  ^^^"^^  exceeded  5  5  mU!lon  tons 

Chlneae  authorities  continue  to  emphasize 
the  general  principle  of  "self-reliance".  In- 
creasing emphasl."  ts  being  placed  on  ef- 
flelencv  \xi  .TianaKement,  quality  control  and 


adherence  to  the  c&i:  for  "realism"  in  eco- 
nomic planning,  TTie  central  auihorltles 
inaer  the  current  fourth  6-year  economic 
piar.  a.-^  concntratir^-  on  developing  those 
seciors  consicered  vitai  to  the  economic  suc- 
cess of  the  country  These  include  expansion 
of  iron  aad  steel  procuclion  capability,  in- 
creasei  in  coal  and  petroleum  production; 
development  of  nrurieral  reaouxces  and  Im- 
provement of  transport  faculties;  air,  marine 
r.>ad  and  rail  a;:c  petrochemicals,  synthetics 
and   fertilizer 

P-orchases  of  let  aircraft  from  Britain,  the 
United  States  and  the  Soviet  Union  have 
equipped  CT.:.ia  to  ajjera'^  an  tnternational 
aL'  service  \iz  agreements  have  been  reached 
with  a  number  of  countries  and  it  Is  ex- 
pected that  China  wUl  rapldlv  expand  over- 
seas operations 

in  the  marine  sector  the  Chinese  have 
been  buyix:^  large  numbers  of  general  cargo 
ships  and  they  a.-e  having  ships  buUt  In 
many  countries,  pnmaj-ilv  m  Europe  and 
Japan.  Improvements  of  the  countrv's  com- 
munications systems  also  ha.s  a  high"  priority 
under  current  planning  -Hie  most  significant 
abject  of  this  program  is  the  purchase  of 
teleoommunlcations  equipment  and  the  es- 
tablishment of  satellite  communication  sta- 
tions in  Shanghai  and  Peking. 

Oilna's  economic  aid  to  other  countries 
oontlnues  to  expand  and  now  exceeds  %\2 
bUUon.  This  usually  takes  the  form  of  10-30 
year.  Interest-free  loans  with  repavment 
after  5-10  year  g.-^ace  periods  through  deUvery 
to  China  of  goods  or  equipment. 

China's  foreign  trade  In  1971  reached  »4  6 
bUllon.  In  1972  trade  reached  an  all  time 
high  of  »S.6  bUlion.  a  19.5%  Increase  over 
1971.  This  included  «l.l  bUllon  two-way 
trade  with  Japan  and  $92  mUllon  with  US 
Although  in  1971  exports  grew  by  15  per  cent 
to  «2.36  bUllon.  Imports  increased  only  3  per 
cent  to  $2.24  bUUon  The  main  reason  for  this 
would  seem  to  be  China's  efforts  to  balance 
trade  after  incurring  an  estimated  deficit  of 
approximately  |100  mUlion  in  1970. 

With  a  population  expanding  by  approxi- 
mately 2  per  cent  annuallv  and  airricultural 
and  industrial  output  channelled  first  to 
meet  domestic  requirements.  :t  can  be  ex- 
pected that  the  avaUability  of  foreign  ex- 
change for  purchase  of  imports  wUl  develoD 
slowly.  It  is  unlikely  that  the  Chines  wm 
change  their  policy  of  depending  as  much 
as  possible  on  their  ovra  resources.  Therefore 
Chma's  ability  to  import  more  wlU  depend 
largely  on  its  export  performance  and  the 
goods  which  can  be  made  available  for  ex- 
port from  industry  and  agriculture 

■Hie  main  Chinese  expf>rt5  will  'continue 
to  be  agricultural  prod'jr-..s  such  as  rice  sov 
beans,  walnutt,  groundcute.  fresh  'and 
canned  fruits  and  vegetables,  oiLs  and  seeds 
meat  and  fish  products  Other  major  export 
Items  include  textiles  clothing,  silks  n^- 
ferrous  metals  such  a.'  antimony,  tungsten 
manganese,  mercury  and  tin.  chemicals  arts 
and  crafts  and  consumer  goods  of  aU  kinds 
The  demand  for  Chinese  porcelain.  Jade  and 
ivory  carvings,  glassware  furnishing  toys 
sporting  goods,  cameras,  hand  tools  and 
radios  u  high  However  dealings  at  the  mort 
recent  Pair  m  Kwangchow  i  Canton)  indi- 
cates that  production  units  have  been  un- 
able to  meet  the  fvill  demand. 

Imports  should  continue  to  foUow  baslcaUy 
the  same  pattern  estabUsh.ed  during  the  last 
few  years  Purchases  of  raw  materials  such 
as  wheat,  sugar,  rubber,  cotton  fibre  Jute 
synthetic  fibres  and  wool  should  Increase' 
Purchases  rf  traditional  items  such  as  scien- 
tific and  medical  equipment  wood  pulp  syn- 
thetic rubber,  jade  -.alicw  and  animals  for 
breeding  purposes  should  continue  to  In- 
crease Despite  ir.creased  local  p.'-oducUon  of 
chen-.i.-al  fertilizers,  Lmports  of  fertUlaers  will 
conUhue  Imports  of  plastic  materials,  dye- 
stuffs,  pharmaceuticals.  lubrtcaats  and  agri- 
culture chemlctOs  should  continue  at  p.-^sent 


42668 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  197 S 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42669 


levels.  Importa  of  machinery  and  transport 
equlpmenc  sbouid  Increase.  Tbese  will  in- 
clude diesel  and  electric  locomottvea,  heavy 
duty  and  specialty  trucics.  shipe,  aircraft, 
power  generation  equipment,  machine  toola, 
electrical  machinery  and  mining  equipment. 
Purchases  of  metals  and  minerals.  Including 
nickel,  aluminum,  oopper.  zinc.  lead,  plati- 
num, and  diamonds  should  Increaae.  with 
steel  and  steel  products  continuing  In  a  ma- 
jor position.  The  market  should  also  remain 
steady  for  pulp,  paper  and  liner  board.  There 
will  be  little  foreign  exchange  available  for 
the  purchase  of  consumer  goods  from  abroad. 
China  gets  all  of  its  imports  of  grain,  rub- 
ber, textiles,  fibres  and  yarn  and  06%  of  Its 
Iron  and  steel,  non-ferrous  metals  and  chemi- 
cal fertilizers  from  non-communist  countries. 
Also,  these  countries  are  the  sources  of  moat 
of  the  Imports  of  machinery  and  technology, 
including  precision  instrximents  and  special 
alloys.  Prom  the  communist  countries  China 
Imports  machinery  and  equipment,  food- 
stuffs other  than  grain  and  crude  materials 
other  than  rubber  and  textile  fibres. 

Prom  1963  to  1966  China  contracted  for 
more  than  50  complete  plants  from  the  de- 
veloped non-communist  countries.  In  1973 
China's  foreign  trade  has  featured  an  Im- 
port expansion  program  of  whole  plant  Im- 
ports purchased  on  a  deferred  payment  basis. 
Since  December  1973  the  Chinese  have  pur- 
chased 13  whole  plants  in  the  petrochemical 
field  with  an  estimated  total  value  of  $300 
million.  Included  are  three  ammonia  plants 
valued  at  $75  million  and  three  urea  plants 
valued  at  t34  million,  supplied  by  U^.  and 
Dutch  firms.  The  remainder  have  been  pur- 
chased from  various  Japanese  companies,  and 
It  Is  anticipated  that  contracts  for  addltlonSl^ 
plants  and  equipment  could  be  completed 
this  year: -probably  concentrated  In  chemical 
fertilizer,  synthetic  fibre,  synthetic  rubber. 
Iron  and  steel,  vehicle  production,  mining 
and  metallurgy,  power  generation  and  tele- 
communications. Re -establishment  of  the 
China  National  Technical  Import  Corpora- 
tion as  a  separate  entity  confirms  China's 
Interest  In  this  field  and  the  development  of 
this  program.  Much  could  depend  on  whether 
the  Chinese  make  use  of  the  medium  and 
long  term  credit  facilities  which  are  being 
offered  to  them.  These  are  indications  that 
the  Chinese  are  considering  again  the  ad- 
visability of  entering  Into  longer  term  3-6 
year  contract*  covering  both  purchases  and 
sales. 

Before  World  War  n  the  United  SUtes 
accounted  for  30%  of  China's  foreign  trade. 
Current  U3. -China  trade  began  with  the 
1971  mid-year  lifting  of  the  U.S.  embargo. 
VS.  Imports  were  valued  at  only  (5  million 
In  1971  with  no  exports.  In  1973  US  sold  a 
82  9  million  communications  satellite  ground 
station  for  Installation  In  Shanghai,  some 
aerial  navigation  and  railway  safety  electronic 
equipment.  In  addition,  technical  expertise 
in  connection  with  the  manufacture  of  vinyl 
chloride  and  synthetic  fibres  was  Initiated. 
In  1973  Chlna-US  trade  wUl  increase 
many  times  A  figure  In  excess  of  t900  mil- 
lion was  recently  Indicated.  China  will  prob- 
ably Import  at  least  $535  million  worth  of 
VS.  agricultural  commodities:  2  million  tons 
of  wheat  at  $240  million:  SOO.OOO  tons  of  com 
at  1225  million:  360  000  tons  of  soybeans  at 
$160  mUllon;  700,000  bales  of  cotton  at  $105 
million,  and  500.000  tons  of  soybean  oil  at 
$15  million.  In  addition.  US.  will  export  to 
China  $75  million  In  aircraft  and  $35  mU- 
llon In  other  Items  U-S  Imports  from  China 
should  reach  $60  mUUon 

Hong  Kong's  Importance  to  the  China 
trade,  p3xtlcularly  as  a  source  of  foreign 
exchange,  la  highlighted  by  its  huge  Imbal- 
ances on  trading  account,  amounting  to 
$5393  million  In  1971.  Substantial  quantities 
of  foodstuffs  and  consumer  goods  are  ex- 
ported to  Hong  Kong  which  also  acts  as  the 
"clearing  house"  for  banking,  insurance,  and 


shipping  services.  It  Is  also  the  major  take-off 
point  by  rail  to  Kwangchow  (Canton)  and 
■'The  Pair"  Many  thousands  of  visitors  travel 
through  Hong  Kong  each  year 

It    Is    Japan,    however,    currently    China's 
principal  trading  partner,  accounting  in  1971 
for   13<"<,    of  China's  exports  and  38  "r   of  Its 
Imports,   which   Is  making  a   major   bid   for 
increased  trade  relations.  China  can  expand 
Imports  only   to  the  extent  exports  can   be 
expanded  or  credit  accepted.  China  has  huge 
resources  of  Iron  ore.  coal,  hydro  electric  po- 
tential and  crude  oil.  Japan  has  high  tech- 
nology,   cultural   affinity    with    the   Chinese, 
geographical   proximity    and    an    almost   In- 
satiable need  for  raw  materials.   In   August 
1972   China  and  Japan   agreed   to  use  their 
own   currencies   to   settle   accounts,    making 
large    scale    capital     transactions     possible. 
Japan  has  offered  long  term  loans  and  de- 
ferred payment  arrangements  at  fixed  Inter- 
est   rates     Negotiations   are   under    way   for 
petrochemical  plants,  equipment  and  tech- 
nological assistance   In  oil  and  resource  de- 
velopment   projecU    and    undersea    drilling 
rigs.   A  proposal  Is  under  study  to  build  an 
express  n.Uway  from  Peking  to  Kwangchow 
(Canton)    which.   Including   technology   and 
equipment,  will  cost  over  $200  million  Japan 
Is  In  turn  promoting  increased  Imports  from 
China.  Included  are  bicycles,  soybeans,  meat, 
raw    silk,    metals,    lumber,    pulp    and    large 
quantities    of    semi-processed    and    finished 
textile  products.  One  of  the  most  important 
long   range  projects  Is  the  proposal   to  Im- 
port 1.000,000  tons  of  crude  oil,  the  possible 
forerunner  of  regular  large  scale  shipments 
Some  optimistic  Japanese  predict  a  doubling 
of  1971  China-Japan  two-way  trade  to  $1,800 
million   In   1973.  $5,000  mUllon  by   1977  and 
almost  unbelievable  $10,000  million  by  1980. 
Recently  China  has  launched  a  major  drive 
to  earn  more  foreign  exchange,  both  by  In- 
creasing the  volimie  and  quality  of  Its  ex- 
ports, and  by  increasing   Its  prices.  China's 
world  trade  during  the  first  quarter  of  1973 
has  shown  marked  Increaae  over  1972.  Trade 
with  Japan.   Hong  Kong,   Germany,   Britain 
and   Prance   combined   has  shown   Increases 
In  two-way  trade  of  43%.  Exports  to  these 
countries   rose   39%    and   Imports   Increased 
by  46 '"r  over  last  year. 

The  People's  Republic  of  China  does  not 
regularly  publish  Internal  economic  or 
demographic  data  but  a  consensus  seems  to 
Indicate  a  1972  Gross  National  Product  of 
about  $140-150  billion,  with  a  population  of 
825  million,  plus  or  minus  36  million,  and 
foreign  exchange  reserves  of  about  $860  mil- 
lion, with  a  GNP.  caplU  range  of  $166-186. 
The  potential  of  the  China  Import  market 
Is  hard  to  assess.  As  mentioned  previously, 
volumes  of  imports  will  be  determined  by 
Chinas  Internal  economic  activities,  earn- 
ings from  experts  and  acceptability  of  short 
and  long  term  credits.  Estimates  for  maxi- 
mum Internal  growth  Indicate  potentials  of 
6-8  per  cent  during  the  1970'8.  The  degree  of 
dependency  on  Imports  in  relation  to  Gross 
National  Product  is  around  4  per  cent,  al- 
most the  same  level  as  that  of  the  Soviet 
Union.  China's  Imports  are  necessities  to 
meet  needs  and  national  objectives,  already 
well  screened  by  the  Ministry  of  Foreign 
Trade  and  the  trading  corporations,  and  It  Is 
expected  that  the  ratios  Indicated  should 
continue. 

Although  all  the  Indicators  lead  to  the  con- 
clusion that  China  trade  growth  can  be  quite 
rapid,  the  export  mix  of  foodstuffs,  textiles, 
light  manufactures,  and  agricultural  prod- 
ucts such  as  meat,  pig  bristles,  hog  CASlngs 
and  canned  fruits  and  vegetables  is  limited. 
Therefore,  a  major  effort  will  be  required  by 
the  Chinese  to  Increase  production  of  indus- 
trial raw  materials  such  as  coking  coal,  pe- 
troleum and  specUl  metals  and  minerals 
Also,  and  most  significant  of  all.  to  what  ex- 
tent, and  at  what  rate  will  the  Chinese  be 
wUUng  to  accept  readUy  available  short  and 
long-term  credits. 


Some  predictions  baaed  on  recent  trade 
patterns  indicate  compounded  annual  aver- 
age trade  growth  levels  of  about  9  per  cent 
through  the  1970's  and  1980*s. 

In  summary,  trading  with  China  takes 
time,  patience  and  understanding,  the  future 
Is  unknown,  but  the  subject  Is  fascinating, 
the  potential  Is  enormous  and  the  rewarxls 
can  be  most  gratifying. 

Fiffure  6. — China's  foreign  trade  corpora- 
tions—their principal  exports  and  imports 
China  National  Cereals,  Oils  and  Foodstuffs 
Import  and  Export  Corporation,  82  Tung 
An  Men  Street,  Peking.  Cable:  Cerollfojd 
Peking 

Cereals.  vegeUble  oils  both  edible  and  In- 
dustrial. oU  seeds,  seeds,  oil  cakes  and  feed- 
ing stuffs,  salt,  livestock  and  poultry,  meats 
and  meat  products,  animal  fata,  eggs  and  egg 
products,    fresh    fruits    and    fruit    products, 
fresh  and  dried  and  deep  frozen  vegetables, 
salted  and  preserved  vegetables,  aquatic  and 
marine   products,   canned   goods,  sugar   and 
sweets,  wines,  spirits,  beverages,  dairy  prod- 
ucts, rice  products  condiments,  etc. 
China  National  Native  Produce  and  Animal 
By-Products  Import  and  Export  Corpora- 
tion. 83  Tung  An  Men  Street,  Peking.  Cable: 
Chlnatuhsu  Peking 

Tea,  coffee,  cocoa,  tobacco,  bast  fibre,  tim- 
ber, resin,  feeding  stuffs,  forest  produce, 
spices,  essential  oils,  nuts  and  dried  vegeta- 
bles, patent  medicines  and  medicinal  herbs 
and  other  native  produce,  bristles,  tall  hairs, 
castings,  hides,  leathers,  furmatress.  fur 
products,  bristle  brushes,  carpets,  w(X)l,  goat 
hair,  goat  wool,  camel  wool,  rabbit  hair, 
feather  and  feather  products  and  other  ani- 
mal by-products,  animals  for  breeding  pur- 
poses. 

China  National  Textiles  Import  and  Export 
Corporation.  83  Tung  An  Men  Street, 
Peking.  Cable:  Chlnatex  Peking 
Raw  cotton,  cotton  yarn,  raw  silk,  tussah 
silk,  wool,  man-made  fibres,  grey  sheetings, 
bleached  sheetings,  dyed  goods,  printed  and 
yam-dyed  fabrics,  various  kinds  of  blended 
fabrics  of  polyester  and  other  materials, 
worsted  and  woollen  goods,  plush.  Interlining 
woollens,  silk  piece  goods,  rayon  piece  goods, 
mixed  silk-rayon  piece  goods,  tussah  silk 
piece  goods,  synthetic  fibre  piece  goods,  spun 
rayon  piece  goods,  garmente  for  men  and 
women  and  children,  suits,  overcoats,  shirts, 
overalls,  embroidered  blouses,  pajamas,  morn- 
ing gowns,  woollen  sweaters,  vests,  cotton  In- 
terlock singlets  and  trousers,  cotton  sweaters 
and  trousers,  swim  suits,  socks,  bath  towels, 
bed  sheets,  woollen  blankets,  cotton  blankeU, 
kerchiefs,  woollen  knitting  yams,  various 
kinds  of  sewing  threat,  drawn-work  and  em- 
broidered table  cloths,  pillowcases,  hand- 
kerchiefs, gloves,  table  towels,  woollen  needle- 
pKilnt  tapestry,  etc. 

China  National  Light  Industrial  Products. 
Import  and  Export  Corporation,  82  Tung 
An  Men  Street.  Peking.  Cable:  Industry 
Peking 

General  merchandise,  paper  and  paper 
boards,  building  materials,  electrical  appli- 
ances, radio  and  TV  sets,  photographic  and 
cinematographic  equipment  and  supplies, 
stationery,  musical  Instruments,  sport  goods, 
toys,  leather  shoes  and  other  leather  goods, 
pottery  and  porcelain,  human  hair,  pearls, 
precious  stones  and  Jewelery,  Ivory  and  Jade 
carvings,  lacquer  ware,  cloisonne,  plaited 
articles,  furniture,  artistic  and  other  handi- 
crafts for  dally  use. 

China  National  Chemicals  Import  and  Export 

Corporation.  Erh  LI  Kou,  Hsl  Chlao.  Peking. 

Cable :  Slnochem  Peking 

Chemicals,  rubber,  rubber  tires  and  other 

rubber  products,  petroleum  and  petroleum 

products,    chemical    fertUlzers,    agricultural 

chemicals  and  insecticides,  pharmaceuticals 

and   medicines,   chemical   reagents,   medical 

Instruments    and    supplies,    surgical    dress- 


ings,   dyestuffs,    pigments,    paints,    printing 
Inks,  etc. 

China  National   Machinery   Import   and   EIx- 
port  Corporation,  Erh  LI  Kou.  Hsl  Chlao, 
Peking,   Cable:    Machlmpex   Peking 
Mechanical   processing  equipment,  metal- 
lurgical     machinery,      mining      equipment, 
transportation     equipment,     building     ma- 
chinery, agricultural  machinery  and  Imple- 
ments,  hoisting   equipment,   tools,   ball   and 
roUer  bearings,  machinery  for  light  Industry, 
electric  equipment  and   materials,   telecom- 
munication equipment  and  devices,  various 
kinds  of  measuring  and  testing  Instruments 
and  meters  and  other  industrial  equipment 
and  supplies. 

China  National  Metals  and  Minerals  Import 
and  Export  Corporation.  Erh  LI  Kou,  Hsl 
Chlao,    Peking,   Cable:    Mlnmetals   Peking 
Tungsten  ore.  antimony  regulus,  antimony 
sulphide    (crude   antimony),   antimony  tri- 
oxlde   (antimony  white),  antimony  ore.  tin, 
mercury,   pig    iron,   steel   products,    cement, 
anthracite  coal,  bituminous  coal,  borax,  non- 
ferrous  metals,  precious  rare  metals,  ferrous 
and  non-ferrous  mineral  ores,  hardware,  etc. 
China  National  Complete  Plant  Export  Cor- 
poration, An  Ting  Men  Wal.  Peking.  Cable: 
Complant  Peking 

Export  of  complete  planu  and  construc- 
tion projects. 

China  National  Technical  Import  Corpora- 
tion. Erh  U  Kou.  Hsl  Chlao.  Peking,  Cable : 
Techimport  Peking 

Import  of  complete  Industrial  plants  and 
technical  know-how;  organization  of  tech- 
nical exchanges. 


CHRISTMAS  MESSAGES 

Mr.  HUGH  SCOTT.  Mr.  President,  the 
Christmas  cards  we  are  receiving  this 
year  as  Members  of  the  Senate  contain, 
it  seems  to  me,  many  more  messages 
than  usual— messages  of  hope  or  mes- 
sages of  despair,  messages  indi- 
cating the  public  concern  with  the 
state  of  the  Union,  messages  desiring 
better  days  for  us  to  come,  messages 
adjuring  us  to  do  our  duty.  But  I  think 
I  have  never  seen  so  many  messages  as 
there  are  this  year  on  the  Christmas 
cards. 

Of  course,  a  few,  missing  the  spirit  of 
the  times,  use  the  gentle  sentiments  of 
the  Christmas  message  to  add  some  note 
of  hostility,  or  worse;  but  these,  fortu- 
nately, are  rare  indeed. 

There  is  an  occasional  message  which 
has  an  especial  meaning,  as  one  does  to 
me  which  I  received  from  a  Mrs.  E.  J. 
Spratt,  Jr.  I  submit  it  now  as  evidence 
of  what  our  constituents,  it  seems  to  me, 
wish  for  us  In  the  pursuit  of  our  often 
diflBcult  duties.  She  writes: 

May  God  make  your  year  a  happy  one 

not  by  shielding  you  from  sorrow  and  pain, 
but  by  strengthening  you  to  bear  It  If  it 
comes;  not  by  making  your  path  easy,  but 
by  making  you  sturdy  enough  to  tread  any 
path. 

Mr.  MANSFIELD.  Mr.  President,  will 
the  Senator  yield? 
Mr.  HUGH  SCOTT  I  am  glad  to  yield 
Mr.  MANSFIELD.  Mr.  President,  I 
have  noticed  the  same  phenomenon  this 
year  in  the  Christmas  cards  which  have 
been  coming  in.  They  quite  often  contain 
messages  beyond  messages  covering  the 
season  of  good  cheer — and  I  use  those 
words  advisedly.  But  I  do  think  it  indi- 
cates an  interest  on  the  part  of  the  people 


and  a  concern  about  the  way  tJiings  are 
going  in  this  most  troublous  of  years  I 
point  out  that  that  concern  applies  to 
Democrats  as  well  as  to  Republicans  The 
people  are  looking  ai  us.  watching  what 
we  are  doing,  taking  note,  toting  up  the 
figures — and  I  think  it  is  ail  to  the  good. 

Mr  HUGH  SCOTT.  So  do  I.  I  thank 
the  distinguished  majority  leader. 

There  is  a  considerable  emphasis  In 
many  of  these  messages  on  the  almost 
universal  yeamuig  toward  peace  in  the 
world  and  a  yearning  for  better  times 
and  better  conditiGn.s.  and  olten  in  a  very 
warm  aiKj  sympathetic  understanding  of 
the  problems  we  lace 

So  Christmas  has  a  special  meaning  for 
us  this  year. 


ORDER  OF  BUSINESS 

The  ACTING  PRESIDENT  pro  tem- 
pore. At  this  time,  in  accordance  with 
the  previous  order,  the  Chair  recognizes 
the  distingul.'^hed  senior  Senator  from 
Oregon  iMr.  Hatfield)  for  not  to  exceed 
15  minutes. 


SENATE  JOINT  RESOLUTION  IBS- 
NATIONAL  DAY  FOR  HUMILIA- 
TION, FASTING,  AND  PRAYER 

Mr.  HATFIELD.  Mr.  President,  I  send 
to  the  desk  a  joint  resolution. 

The  ACTING  PRESIDENT  pro  tem- 
pore. The  joint  resolution  will  be  stated 
by  title. 

The  second  assistant  legislative  clerk 
read  as  follows : 

A  Joint  resolution  to  proclaim  April  30, 
1974,  as  a  National  Day  for  Humiliation, 
Fasting,  and  Prayer. 

Mr.  HATFIELD.  Mr.  President,  I  have 
sent  to  the  desk  a  joint  resolution  which 
is  modeled  primarily  after  a  resolution 
adopted  in  1863  and  as  written  by 
Abraham  Lincoln,  because  I  believe  we 
have  been  living  through  days  that  try 
the  soul  of  the  Nation  and  test  the 
resiliency  of  the  RepubUc.  We  are  all 
troubled  by  the  continual  erosion  of  the 
American  people's  faith  and  trust  in 
their  leadership  in  all  parts  of  life.  The 
current  fuel  shortage  has  caused  us  to 
reevaluate  the  legitimacy  of  our  exces- 
sive use  of  the  world's  natural  resources. 
We  witness  a  country  torn  apart  with 
division  and  lacking  the  spiritual  foun- 
dation that  would  restore  its  vision  and 
purpose.  We,  as  a  people,  through  our 
own  acquiescence  to  corruption  and 
waste,  have  helped  to  create  a  moral 
abyss  that  produces  a  disdain  for 
honesty  and  humility  in  high  levels  of 
national  leadership. 

Those  of  us  who  hold  positions  of 
leadership,  and  the  people  whom  we 
represent,  must  confront  these  tragic  af- 
fairs and  learn  their  meaning  for  us  as 
a  nation.  These  are  not  matters  that  can 
be  covered  up  in  the  hope  they  will  be 
forgotten,  even  though  it  is  always 
easier  to  hide  our  wounds  than  to  heal 
them. 

It  is  more  comfortable  to  believe  in 
the  spiritual  sj-mbols  of  righteousness 
presence  of  evil,  in  ourselves  and  in  our 
than    to   acknowledge   the   resdity   and 


corporate  life.  So  we  become  eidroil  at 
manipulating  religious  impulses  in  our 
land  to  sanctify  our  national  life. 

We  tend  to  put  our  country  beyond  the 
reach  of  God's  judgment.  The  words  on 
back  of  our  Great  Seal  read.  "God  hath 
ordained  our  undertakings  "  Our  money 
is  emblazoned  with  "In  God  We  Trust." 
Our  leaders  solemnly  mvoke  the  name  of 
God  in  their  political  speeches.  We 
earnestly  want  to  believe  that  ours  Is 
God's  chosen  land,  that  we  are  His 
chosen  people,  and  that  the  leaders  we 
have  are  divinely  chosen  and  given  spe- 
cial wisdom. 

This  impulse  is  bom  out  of  our  own 
lives.  We  would  rather  believe  that  we 
merit  God's  blessing  than  admit  that 
we  stand  under  His  judgment,  and  in 
need  of  His  forgiveness.  But  however 
difficult  it  is  to  admit  our  sin,  the  evi- 
dence of  it  is  all  around  us,  in  the  per- 
sonal dilemmas  of  our  lives  and  in  the 
crises  that  afflict  our  nation.  St.  John 
reminds  us  that — 

//  IPC  refuse  to  admit  that  tee  are  sinners, 
then  tee  live  in  a  icorld  of  illtision  and  truth 
becomes  a  stranger  to  us.  (I  John  1:  18). 

Continued  belief  in  national  self- 
righteousness,  therefore,  no  matter  what 
we  as  a  nation  do.  only  leads  us  into 
greater  peril. 

We  acknowledge  that  God  requires 
justice,  but  we  have  tended  to  turn  our 
corporate  backs  to  the  injustices  of 
racism  that  continues  to  threaten  the 
very  fabric  of  our  society.  We  condone 
by  our  inaction  inhuman  conditions  in 
our  cities  and  rural  areas  where  millions 
are  trapped  in  ever  deepening  ruts  of 
poverty. 

We  have  become  gluttons  of  the 
world's  resources  at  a  time  when  much 
of  the  world  does  not  know  the  source 
of  Its  next  meal.  This  nation,  composing 
only  6  percent  of  the  world's  population, 
last  year  consumed  40  percent  of  all 
energy  used  on  this  planet. 

Many  believe  that  our  security  comes 
through  our  materialism,  our  wealth,  and 
our  gross  national  product.  So  we  de- 
spoil our  environment  and  neglect  the 
quality  of  man's  spirit  in  order  to  expand 
our  materialistic  self-indulgence 

We  are  now  capable  of  destroying  most 
of  the  world's  population  in  a  few  mo- 
ments through  the  power  of  nuclear  war- 
fare. We  operate  on  the  assumption  that 
human  life  is  expendable,  and  rationalize 
this  axiom  on  the  sole  basis  that  this 
is  what  our  enemy  believes,  so  this  must 
be  our  beUef  also. 

We  are  in  need  of  repentance.  Our 
claims  of  righteousness,  sis  individuals, 
and  as  a  Nation,  deceive  only  ourselves. 
We  should  remember  the  words  of  the 
prophet  Amos; 

/  hate,  I  despise  your  feasts,  and  pour  sol- 
emn assemblies.  I  tcdll  not  accept  them:  nrt- 
ther  tcill  I  regard  the  peace  offerings  of  your 
fat  beasts.  Take  away  from  me  the  notse  of 
your  songs,  for  I  tciU  not  hear  the  melody  oj 
your  viols.  But  let  justice  roU  dotcn  like 
xcater,  and  righteotisness  like  an  ever-flotcing 
stream.  (Amos,  5:    21-34) 

President  Abraham  Lincoln  had  a  pro- 
found sense  of  the  sovereignty  of  God.  He 
knew  how  the  Nation  stood  accountable 
to  Gods  judgment.  In  the  midst  of  the 
CivU  War,  the  U.S.  Senate  requested,  and 
Lincoln  responded  on  three  separate  oc- 


42670 


CONGRESSIONAL  RECORD  — SENATE 


December  20,  1973 


casioos  to  a  resolution  setting  aside  a  day 
for  national  humiliation,  fasting,  and 
prayer. 

One  such  occasion  was  on  April  30. 
1863,  3  months  after  the  Emancipation 
Proclamation,  amd  3  months  before  the 
battle  of  Gettysburg.  The  resolution  grew 
out  of  bitter  disappointments  and  dark 
days  of  1863.  the  crushing  defeat  at  Fred- 
ericksburg only  a  few  days  past.  The 
whole  land  was  burdened  with  taxes, 
stricken  with  sorrow,  and  harrowed  by 
treason.  Public  credit  had  reached  the 
lowest  point  In  our  history  as  a  result  of 
an  ever-Increasing  national  debt.  Many 
regiments  in  the  Army  of  the  Potomac 
had  gone  without  pay  for  6  months.  Its 
morale  was  lost  and  600  desertions  were 
reported  daily.  Any  hope  for  an  early  end 
to  the  hostilities  had  been  virtually  de- 
stroyed. Northern  newspapers  were  de- 
manding peace  at  any  price.  Horace 
Greeley  reflected  national  sentiment 
when  he  sent  the  President  a  note : 

I  venture  to  remind  you  that  the  bleeding, 
bankrupt,  almost  dying  country  longs  for 
peace. 

Seeing  the  effects  of  a  nation  torn 
apart,  President  Lincoln  did  not  appeal 
to  any  pretentious  image  of  national  self - 
righteousness,  rather,  he  called  the  Na- 
tion to  repentenaxice.  He  believed  that 
only  through  the  acknowledgement  of 
our  corporate  guilt  and  confession  of  na- 
tional sins  that  the  country  could  regain 
Its  national  purpose  and  unity.  Lincoln 
recognized  that  though  the  Nation  had 
prospered,  "we  have  forgotten  God."  Be- 
cause the  Nation  had  begun  to  believe 
that  It  had  flourished  through  its  own  su- 
perior wisdom  and  virtue.  Lincoln  stated. 

It   behooves  U8  .to  humble  ourselves 

before  the  offended  Power,  to  confess  our  na- 
tional sins,  and  to  pray  for  clemency  and  for- 
giveness. 

Today  our  Nation  has  once  again  been 
torn  apart  by  a  crisis  from  which  there 
appears  little  relief.  Our  refusal  to  ac- 
knowledge our  dependence  and  need  for 
a  power  beyond  ourselves  has  severely 
damaged  our  national  soul  I  beUeve  that 
only  a  national  confession  of  corporate 
guilt  can  save  us  from  the  worship  of 
our  own  finite  power  and  the  tragedies 
that  this  worship  creates.  Therefore,  to- 
day I  am  introducing  a  congressional 
joint  resolution  calling  for  a  National 
Day  of  Humiliation.  Pasting  and  Praver 
This  resolution  is  modeled  after  that 
declared  by  Abraham  Lincoln  on  April 
30.  1863.  and  incorporates  much  of  his 
origlfial  wording 

I  would  suggest  that  April  30,  1974, 
be  chosen  for  that  day,  which  would  coin- 
cide with  the  same  date  when  President 
Lincoln  issued  his  historic  proclamation. 
Our  Government  and  the  other  Institu- 
tions of  our  society  would  all  cease  busi- 
ness as  usual,  as  I  envision  it.  so  that 
we  all  would  be  free  to  consider  actions 
appropriate  to  a  time  that  would  sjrm- 
bollze  national  repentance. 

It  \s  my  firm  conviction  that  a  genuine 
spirit  of  repentance,  infecting  the  cli- 
mate of  our  Nation  at  all  levels,  can  heal 
the  wounds  that  presently  aflllct  us.  Rec- 
onciliation of  the  divisions  and  animosi- 
ties that  exist  among  our  people  can  oc- 
cur once  there  is  a  mutual  acknowledg- 


ment of  this  need  for  contrition,  which 
allows  human  compassions  to  grow. 

There  is  hope  for  a  land  and  a  people 
who  have  the  capacity  to  recognize  their 
sins  and  their  faults,  and  turn  from  them. 
Repentance  means  precisely  this — to 
turn  the  other  way.  In  so  doing,  we  rec- 
ognize that  past  events  find  present  con- 
ditions cannot  be  rationalized  or  Justi- 
fied: rather,  they  must  be  repented  of. 
so  a  whole  new  way  can  be  sought.  This 
is  how  individuals  and  how  our  land  as 
a  whole  can  seek  authentic  renewal  and 
transformation.  So  it  is  with  this  hope 
that  I  commend  to  the  Senate  this  reso- 
lution calling  for  a  Day  of  Humiliation. 
Pastmg.  and  Prayer  in  our  land 

Mr.  President.  I  ask  unanimous  con- 
sent to  have  printed  in  the  Record  a 
very  succinct  and  poignant  statement 
written  by  Richard  C.  Haiverson.  pub- 
lished in  Perspective  on  December  12. 
1973.  which  emphasizes  the  situation  of 
the  moment  and  why  this  resolution 
would  have  a  very  Important  bearing  on 
solving  some  of  these  confUcts  of  the 
day. 

There  being  no  objection,  the  state- 
ment was  ordered  to  be  printed  in  the 
Record,  as  follows: 

STATEBcrjrr 

DxcxjfBKa  13,  1073. 

Dka«  Fniun.  What  if  the  U.S.A.  does  not 
survive  what  are  your  alternatives  .  .  . 

where  does  your  hope  He? 

You  say  It  cant  happen  here? 

Rome  fell  .  .  . 

Historians  have  pointed  out  often  that 
conditions  which  led  to  the  fall  of  Rome  are 
present  In  our  laud  today. 

Edward  Olbbon  gave  his  life  to  the  sub- 
ject .  .  . 

He  wrote  that  It  was  "Impossible  to  re- 
place Rome's  greatness  on  a  permanent  basis, 
without  restoring  public  virtue,  ancient  prin- 
ciples and  maniters.  and  the  oppressed  maj- 
esty of  the  laws  " 

great  numbers  of  provincials  rather 
chose  to  live  as  exiles  and  outlaws  than  to 
support  the  weight  of  clvU  society  " 

"The  citizens  of  the  Roman  repubUc  first 
abandoned  leadership  responslbUlty  to  an 
aristocratic  and  eventually  autocratic  class 
and  then  that  class  gradually  lost  its  moral 
and  Intellectual  distinction  and  capacity  to 
lead." 

C.  L.  Sulzberger  of  the  New  York  Times 
(7/16/71)  commenting  on  the  above  wrote. 
"Almost  mevltably  decadence  follows  an  era 
when  a  country  has  become  excessively  pros- 
perous and.  consequently  overconfident,  has 
extended  Its  authority  beyond  the  realm  of 
Its  capacity  " 

(Iniagine  if  the  followers  of  Christ  in  apos- 
tolic days  had  pinned  their  hopes  on  Rome ! ) 

Do  you  have  any  hope  outside  the  survival 
of  the  U.S.A  ? 

Is  your  religion— if  you  have  any — only  a 
clvU  religion  which  depends  on  the  success 
of  a  particular  nation? 

Then,  whatever  you  call  It,  it  Is  not  the 
faith  of  our  Lord  and  Savior  Jesus  Christ! 

"Seek  first  the  Kingdom  of  Heaven  and  its 
Hghteousness    .  .  ,"  (Matthew  6    33) 
OordlaUy. 

RlCHAkO  C.  Halvxrson. 

The  PRESIDINO  OFFICER  (Mr. 
Chilks  I  Does  the  Senator  wish  to  have 
the  resolution  referred  to  committee? 

Mr.  HATFIELD.  Yes. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  following  Senators  be  added 
as  cosponsors  of  the  Joint  resolution: 
Senators   Hughss,  Randolph.   Bartlxtt, 


Chilis,  Fanwin.  Stewwis.  Allew,  Jcvhn- 
STON,  Ntjnn,  Domenici.  and  Hansen. 

The  PRESIDINa  OFFICER  Without 
objection,  it  is  so  ordered. 

Mr.  HATFIELD,  Mr.  President,  how 
many  more  minutes  do  I  have  remain- 
ing? 

The  PRESIDING  OFFICER.  The  Sen- 
ator has  2  minutes  remaining. 

Mr.  HATFIELD  Mr.  President,  I  yield 
the  remainder  of  my  time  to  the  Senator 
from  Michigan. 

Mr.  GRIFFIN.  Mr.  President,  I  reserve 
the  time. 

The  PRESIDING  OFFICER.  Under  the 
previous  order,  the  Senator  from  Mary- 
land is  recognized  for  not  to  exceed  15 
minutes. 

Mr.  HATFIELD  Mr.  President,  if  the 
Senator  will  yield.  I  have  cleared  the 
following  request  with  the  leadership. 
I  would  like  to  ask  for  the  Immediate 
consideration  of  the  joint  resolution. 

Will  the  Senator  yield  for  that  pur- 
pose? 

Mr.  MATHIA3  I  am  happy  to  yield. 

Mr.  HATFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  the  Senate  pro- 
ceed to  the  consideration  of  the  Joint 
resolution. 

The  PRESIDING  OFFICER  (Mr. 
Chiles)  Without  objection,  it  is  so  or- 
dered and,  without  objection,  the  Joint 
resolution  wUl  be  considered  to  have  been 
read  the  second  time  at  length. 

The  Joint  resolution  (S.J.  Res.  183) 
was  ordered  to  be  engrossed  for  a  third 
reading,  wtis  read  the  third  time,  and 
passed. 

The  preamble  was  agreed  to. 

The  joint  resolution,  with  its  preamble, 
is  as  follows : 

Whereas.  It  Is  the  duty  of  nations,  as  we^J 
as  of  men  to  owe  their  dependence  upon  the 
overruling  power  of  Ood.  to  confess  their 
sins  and  transgressions.  In  humble  sorrow. 
yet  with  assxired  hope  that  genuine  repient- 
ence  will  lead  to  mercy  and  pardon,  and  to 
recognize  the  sublime  truth,  announced  In 
the  Holy  Scriptures  and  proven  by  all  history, 
that  those  nations  are  blessed  whose  Ood  is 
the  Lord:  and 

Whereas,  we  know  that  we  have  been  the 
recipients  of  the  choicest  boxmtles  of  Heaven: 
we  have  been  preserved  these  many  years  '.n 
peace  and  prosperity;  we  have  grown  In  num- 
bers, wealth  and  power  as  no  other  nation 
has  ever  grown:  but  we  have  forgotten  Ood: 
and 

Whereas,  we  have  forgotten  the  gracious 
hand  which  preserved  us  In  peace,  and  multi- 
plied and  enriched  us,  and  we  have  vamiy 
Imagined.  In  the  deceltfulness  of  our  hearts, 
that  all  these  blessings  were  produced  by 
some  superior  wisdom  and  virtue  of  our  own; 
and 

Whereas,  Intoxicated  with  unbroken  suc- 
cess, we  have  become  too  self-sufficient  to  feel 
the  necessity  of  redeeming  and  preserving 
grace,  too  proud  to  pray  to  the  Ood  that 
made  us;  and 

Whereas,  we  have  made  such  an  idol  out  of 
our  pursuit  of  "national  security"  that  we 
have  forgotten  that  only  God  can  be  the  ulti- 
mate guardian  of  our  true  livelihood  and 
safety:  and 

Whereas,  we  have  failed  to  respond,  per- 
sonally and  collectively,  with  sacrlflco  and 
uncompromlsed  commitment  to  the  unmet 
needs  of  our  fellow  man.  both  at  home  and 
abroad:  as  a  people,  we  have  become  so  ab- 
sorbed with  the  selfish  pursuits  of  pleastue 
and  profit  that  we  have  blinded  ourselves  to 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42671 


Ood  s  standard  of  Justice  and  righteousness 
for  this  society;  and 

Whereas,  It  therefore  behooves  us  to  hima- 
ble  ourselves  before  Almighty  Ood.  to  con- 
fess our  national  sins,  and  to  pray  for  clem- 
ency and   forgiveness:    Now,  therefore  be  It 

Retolved  by  the  Senate  and  Houte  of  Rep- 
ntentaUve*  of  the  Vn^trd  states  of  America 
in  Congress  Assembled  that  the  Congress 
hereby  proclaims  that  April  30,  1974  be  a 
National  Day  of  Humllitatlon.  Fasting  and 
Prayer;  and  calls  xipoa  the  (>eople  of  our  na- 
tion to  humble  ourselves  as  we  see  fit,  t>efore 
our  Creator  to  acknowledge  our  final  depend- 
ence upon  Him  and  to  repent  of  our  national 
sins. 

Mr.  HATFIELD.  Mr.  President.  I  thank 
the  distinguished  majority  leader,  the 
distinguished  acting  minority  leader,  and 
the  Senator  from  Maryland. 

The  PRESIDING  OFFICER,  The  Sen- 
ator from  Maryland  is  recognized. 


THE  CONSTITUTION  VERSUS  THE 
NATIONAL  SECURITY  STATE 
AND  SOME  PROPOSALS  TO 
STRENGTHEN     DEMOCRACY 

I.   WATERGATE   AND    NATIONAL   SXCtntrTT 

Mr.  MATHIAS  Mr.  President.  I  am 
happy  to  follow  the  eloquent  and  deeply 
felt  statement  of  the  distinguished  Sen- 
ator from  Oregon.  I  join  vfith  him  In  the 
very  moving  appeal  he  has  made  to  both 
the  Senate  and  the  Nation.  Although  we 
did  not  plan  it  this  way,  what  I  wanted 
to  say  to  the  Senate  this  morning  very 
logically  follows  the  appeal  he  has  made. 

I  think  we  very  properly  have  adopted 
in  the  Senate  this  resolution  which  calls 
for  a  day  of  fasting,  humiliation,  and 
prayer,  but  we  also  need  to  perform  works 
of  grace. 

I  wish  to  discuss  a  little  bit  some  of 
the  things  we  can  do.  One  of  our  greatest 
predecessors  in  the  Senate,  one  of  the 
towering  figures  who  served  in  this  body, 
was  Daniel  Webster.  On  the  occasion  of 
the  birthday  of  the  centennial  of  the 
birth  of  George  Washington  February 
22.  1832,  Webster  said: 

Other  misfortunes  may  be  borne,  or  their 
effects  overcome.  If  disastrous  war  should 
sweep  our  commerce  from  the  ocean,  another 
generation  may  renew  it;  if  it  exhaust  our 
treasury,  future  Industry  may  replenish  It; 
If  It  desolute  and  lay  waste  our  fields,  still 
under  a  new  cultivation,  they  will  grow  green 
again,  and  rtpen  to  future  harvests.  It  were 
but  a  trifle  even  if  the  walls  of  yonder  Capitol 
were  to  crumble,  if  its  lofty  pillars  should 
fall,  and  Its  gorgeous  decorations  be  all 
covered  by  the  dust  of  the  valley.  All  these 
might  be  rebuUt.  But  who  shall  reconstruct 
the  fabric  of  demolished  government?  Who 
shaU  rear  again  the  well-proportioned 
columns  of  constitutional  liberty?  Who  shall 
frame  together  the  skillful  architecture 
which  unites  national  sovereignty  with  State 
rights,  individual  sec\irlty,  and  public  pros- 
perity? No,  If  these  columns  fall,  they  wili  be 
raised  not  again.  Like  the  Coliseum  and 
the  Parthenon,  they  will  be  destined  to 
be  a  mournful,  a  melancholy  Immortality. 
Bitterer  tears,  however,  wUl  flow  over  them 
than  were  ever  shed  over  the  monuments  of 
Roman  or  Grecian  art;  for  they  wUl  be  the 
remnants  of  a  more  glorious  edlflce  than 
Greece  or  Rome  ever  saw,  the  edlflce  of  con- 
stitutional American  liberty. 

We  approach  the  end  of  the  year  and 
the  end  of  a  session  of  Congress.  It  has 
been    a    tragic    year    and    a    turbulent 


session.  But  the  focus  of  our  attention 
must  now  be  on  what  we  can  dn  next  vear 
and  next  session  We  cannot  wait  to  begin 
thinking  abdut  what  we  shall  do  when  we 
return  to  the  Capitol  next  month  We 
cannot  put  off  even  for  a  month  what 
mu.st  be  done  TTie  pa.st  may  haunt  u.s. 
but  the  future  crowd.s  us  We  must  look 
forward  to  the  decisions  that  must  be 
taken  in  January  and  the  succeeding 
months  The  tragic  past  Ls  our  road  lo  the 
future  and  m.u.«;t  be  taken  into  account 
a.s  we  make  our  plan.-^ 

From  the  rhetoric  of  the  inaugural  ad- 
drees  last  January  20  to  the  courtroom 
confessions  of  the  summer  and  autumn 
has  been  a  stead>-  descent  into  political 
crisis  of  such  depth  that  we  now  are 
faced  with  serious  constitutional  ques- 
tions. The  Intensity  of  the  problems  that 
have  beset  us  have  caused  serious  men 
to  consider  seriously  whether  democracy 
can  survive  or  whether  national  security 
as  narrowly  defined  will  supersede  the 
Constitution.  This  debate  must  be  re- 
solved and  the  Issue  must  never  be  In 
doubt. 

As  we  look  to  a  new  opportunity  for 
doing  better  in  the  future  we  can  take 
some  comfort  from  the  durability  of  our 
Institutions  despite  the  unprecedented 
pressures  that  could  not  have  been  antic- 
ipated, much  less  prepared  for. 

n.    THE     CONSTTrUTlON     VZRSDS    THE     NATIONAL 
SBCUKITT    STAT* 

The  fourth  amendment  to  the  Con- 
stitution of  the  United  SUtes  of  America 
provides: 

AMENDicEirr  rv 

The  right  of  the  people  to  be  sectire  In 
their  persons,  houses,  papers,  and  effects, 
against  unreasonable  searches  and  seizures! 
shall  not  be  violated,  and  no  Warrants  shall 
Issue,  but  upon  probable  cause,  supported 
by  Oath  or  affirmation,  and  particularly 
describing  the  place  to  be  searched,  and  the 
persons  or  things  to  be  seized. 

Many  constitutional  lawyers  believe 
that  for  5  days  this  fundamental  guar- 
antee of  the  Bill  of  Right-s  wa.*;  suspended 
by  the  mandate  given  the  ,<;ecret  Houston 
plan.  Some  legal  .'scholars  think  that  for 
5  days  between  July  23  and  July  28  1970, 
authoritarian  decisions  had  sui>erseded 
the  Constitution.  There  Ls  some  uncer- 
tainty as  to  whether  the  pron.sions  of 
the  Bill  of  Rights  were  .saspt-nded  for  a 
longer  period  of  time,  but  there  seems 
to  be  little  dispute  about  the  violation  of 
article  IV  of  the  Bill  of  Rights  between 
these  dates,  because  we  have  the  Presi- 
dent's own  word  for  It  In  his  .statement 
of  May  21,  1973,  the  President  said: 

On  July  23  1 19701.  the  agencies  were  noti- 
fied by  memorandum  of  the  options  ap- 
proved. After  reconsideration,  however 
prompted  by  the  opposition  of  Director 
Hoover,  the  agencies  were  notified  five  days 
later,  on  July  28.  that  the  approval  had  been 
rescinded  The  options  inltlaUy  approved  had 
included  resumption  of  certain  Intelligence 
operations  which  had  been  suspended  in 
1966.  These  In  turn  had  Included  authoriza- 
tion of  surreptitious  entry — breaking  and 
entering,  in  effect — on  speclfled  categMies  of 
targets  in  speclfled  situations  related  to  na- 
tional sectirlty. 

This  apparent  Invasion  of  article  IV 
of  the  BUI  of  Rights  was  done  in  secrecy. 
Th&t  It  was  concealed  from  open  public 


scrutiny  and  not  subject  to  constitu- 
tional accountability  msOces  it  doubly 
dangerous. 

A  .somewhat  similar  stispension  of  a 
provision  of  the  Constitution  comes  to 
mind  that  took  place  dunne  the  Civil 
War.  An  attempt  was  made  to  den>-  the 
right  of  habeas  corpus  even  in  those 
area."?  that  were  not  in  the  immediate 
theater  of  war  That  denial  of  the  consti- 
tutional protection  of  habea.^  corpa^  so 
aroused  Chief,  Justice  Taney  that  he 
overcame  ob«Uicle.=;  of  ape,  difficult 
travel,  and  severe  political  hasuiity  to  go 
to  Baltimore  to  hear  the  petition  of 
John  Merrvman,  whose  nghts  had  been 
abridged.  In  striking  down  the  abridg- 
ment of  this  constitutional  guarantee. 
Chief  Justice  Taney  said : 

I  had  supposed  It  to  be  one  of  those  points 
In  constitutional  law  upon  which  there  was 
no  difference  of  opinion,  that  the  privilege 
of  the  writ  could  not  be  suspended,  except 
by  act  of  Congress 

With  such  provisions  In  the  constitution, 
expressed  In  language  too  clear  to  be  misun- 
derstood by  any  one.  I  can  see  no  ground 
whatever  for  supposing  that  the  president. 
In  any  emergency,  or  In  any  state  of  things, 
can  authorize  the  suspension  of  the  priv- 
ileges of  the  writ  of  habeas  corpus,  or  the 
arrest  of  a  citizen,  except  In  aid  of  the  Judi- 
cial power.  He  certainly  does  not  faithfully 
execute  the  laws,  if  he  takes  upon  himself 
legislative  power,  by  suspending  the  writ  of 
habeas  corpus,  and  the  Judicial  power  also, 
by  arresting  and  Imprisoning  a  person  with- 
out due  process  of  law. 

Nor  can  any  arg\iment  be  drawn  from  the 
nature  of  sovereignty,  or  the  necessity  of  gov- 
ernment, for  self-defense  In  times  of  tumult 
and  danger.  The  government  of  the  United 
States  is  one  of  delegated  and  limited  pow- 
ers: It  derives  Its  exUtence  and  authority  al- 
together from  the  constitution,  and  neither 
of  Its  branches,  executive,  legislative  or  Judi- 
cial, can  exercise  any  of  the  powers  of  gov- 
ernment beyond  those  speclfled  and  granted; 
for  the  tenth  article  of  the  amendments  to 
the  constitution,  m  express  ttrms  provides 
that  "the  powers  not  delegated  to  the  United 
States  by  the  constitution,  nor  prohibited 
by  It  to  the  states,  are  reserved  to  the  states, 
respectively,  or  to  the  people." 

We  in  the  Senate  and  the  Congress  are 
faced  ^ith  the  following  situation:  Presi- 
dent Nixon  by  his  own  statement  ap- 
proved a  plan  in  eCfect  for  at  least  5 
days — the  plumbers'  activities  went  on 
for  much  longer — which  illegally 
abridged  a  basic  constitutional  guaran- 
tee and  gave  authority  to  deprive  citizens 
of  the  United  States  of  their  legal  birth- 
right without  due  process. 

In  my  view,  this  action  constitutes  a 
most  serious  assault  against  our  demo- 
cratic system. 

This  attempt  to  suspend  the  basic 
rights  of  our  citizens,  requires  the  Sen- 
ate, the  Hoiise  of  Representatives,  and 
aU  our  people  to  consider  what  correc- 
tive action  should  be  taken  to  prevent 
such  an  Ulegal  abridgment  of  the  Con- 
stitution from  occurnr^  again. 

The  potential  suspension  of  article  IV 
of  the  Bill  of  Rights  by  Presidential  order 
smd  the  abridgment  of  our  cojistitutional 
government  for  at  least  5  days  was  Justl- 
fted  as  being  In  the  interest  of  national 
security. 

We  must  first  consider  If,  in  fact,  our 
national  security  was  In  jeopardy  Na- 
tional security  Is,  of  course,  a  prime  ob- 


42672 


CONGRESSIONAL  RECORD  —  SENATE 


ligation  of  the  Government,  but  this  ob- 
Ucstion  means  different  things  to  differ- 
ent people.  I  think  national  security 
means  the  preservation  of  the  well-being 
and  safety  of  our  Nation  and  all  our  peo- 
ple It  means  protecting  against  arbitrary 
rule  by  one  man  or  cabal. 

Further,  it  Is  my  beUef  that  what  is 
necessary  to  assure  domestic  tranquility 
or  to  preserve  national  security,  or  in- 
deed, even  to  determine  what  national 
security  Is,  in  the  Jomt  responsibility  of 
the  Congress,  the  President,  the  courts, 
and  all  others  charged  with  a  public 
trust.  It  is  specifically  the  joint  duty  of 
the  legislative  and  executive  branches  to 
decide,  in  accordance  with  their  respec- 
tive established  procedures  of  due  proc- 
ess, what  is  necessary  to  protect  the  in- 
tegrity and  well-being  of  the  Nation. 

The  discovery  of  the  Watergate  bur- 
glary laid  bare  a  much  larger  threM  to 
our  basic  rights.  Consequently,  the 
broader  Watergate  scandal  has  raised 
vital  questions  about  the  fundamental 
duty  of  our  Government  to  preserve  our 
national  security.  But  the  main  ques- 
tion that  arises  is:  Should  any  single 
authority  be  allowed  to  transgress  the 
boundaries  of  the  law  and  to  violate  pro- 
visions of  the  ConsUtution  in  order  to 
carry  out.  largely  in  secrecy,  what  Is  per- 
ceived by  a  particular  ofDdal  to  be  nec- 
essary for  national  security?  A  related 
question.  In  new  of  the  revelations  that 
have  been  brought  to  light  by  Watergate 
Is :  Do  our  present  laws  provide  adequate 
means  to  assure  our  national  security 
and  at  the  same  time  maintain  our  con- 
stitutionally guaranteed  system  of  due 
process,  deliberation  and  consultation 
between  the  two  branches  of  Govern- 
ment? 

The  term  "national  security,"  as  it  has 
been  used  in  recent  years,  has  in  fact 
the  opposite  of  its  real  mearung  of  peace 
or  tranquillity.  The  evocation  of  national 
security  as  it  has  been  used  in  recent 
times  has  as  its  purpose,  the  dramatizing 
of  tension,  which  in  turn  induces  fear, 
fear  of  some  foreign  or  domestic  threat 
whose  dimensions  are  unknown  but 
whose  magnitude  Is  hinted  at  darkly  as 
being  beyond  existing  sUtutory  or  con- 
stitutional capabilities  to  meet  that 
threat. 

The  most  extreme  form  that  this 
emotional  technique  has  taken  is  In  the 
familiar  formula,  "If  you  knew  what  I 
know,  then  you  would  realize  that  it  was 
necessary  to  do  what  I  have  done  "  Wa- 
tergate has  revealed  that  exhortations 
to  protect  national  security  all  too  often 
are  based  on  flimsy  grounds  and  are  jus- 
tified not  by  reason  but  through  the 
techniques  of^emotionaj  persuasion 

In  my  vlew\the  preservation  of  the 
integrity  of  the  Nation  Is  a  legitimate 
ccncem  of  the  Government,  but  only  If 
It  is  provided  and  maintained  through 
proper  due  process  esteblished  by  the 
body  of  laws  built  upon  the  Constitu- 
tion. 

Secrecy  and  national  security  are  not 
the  same  thing.  As  the  unfolding  Water- 
gate revelations  tell  us.  and  as  the  rec- 
ord of  the  Pentagon  papers  have  in- 
formed us.  secrecy  can.  In  fact,  damage 
the  Integrity  of  our  Nation.  Very  few 
would  argue   that  we  can   do  without 


December  20,  1973 


some  measure  of  secrecy.  The  role  of 
secrecy  as  a  tool  of  national  security, 
when  used  properly,  has  a  necessary 
place  in  our  democracy.  But  secrecy  used 
to  further  bureaucratic  or  political 
power,  has  proven  to  be  one  of  the  great- 
est threats  to  our  democratic  govern- 
ment. In  fact,  one  of  this  country's  most 
respected  advocates  of  a  strong  defense 
establishment.  Dr.  Edward  Teller,  the 
Inventor  of  the  hydrogen  bomb,  has  de- 
clared repeatedly  in  recent  years  that 
secrecy  as  it  is  now  practiced  by  the 
Government  of  the  United  States  has 
adversely  affected  scientific  progress  and 
military  technology,  and  in  some  cases, 
has  only  served  to  benefit  our  potential 
ei^emles. 

One  posiUve  benefit  of  Watergate  has 
been  to  strengthen  and  reaffirm  the  view 
so  powerfully  expressed  In  Chief  Justice 
Taney  s  decision  In  the  Merryman  case 
that  whatever  Is  done  in  the  name  of  na- 
tional security  should  be  carried  out  only 
in  conformity  with  the  ConstltuUon  and 
the  body  of  statute  law  and  through 
properly  designated  InstrumentaliUes. 

Mr.  President,  the  decision  of  the  Su- 
preme Court  in  the  Youngstown  Steel 
Seizure  case  of  1952,  that  even  though 
the  United  SUtes  was  at  war  in  Korea 
the  President  could  not  seize  the  steel 
mills  to  act  on  his  own  perception  of  a 
danger  to  national  security  when  rem- 
edies and  procedures  in  law  to  settle  dis- 
putes were  already  in  existence,  further 
supports  the  view  that  what  national  se- 
curity Is  can  be  determined  only  by  the 
several  branches  of  the  Government  act- 
ing jointly. 

Our  system  of  maintaining  order  by 
legal  means  is  accepted  by  the  people. 
First,  our  military  forces  are  authorized 
and  organized  to  protect  the  Nation 
against  the  threats  posed  by  foreign 
military  forces  They  are  not  to  be  used 
m  any  way  against  the  American  people. 
We  have  created  the  Federal  Bureau  of 
Investigation,  the  FBI,  to  protect  our 
people  in  carefully  prescribed  ways 
against  foreign  espionage,  organized 
crime,  and  domestic  violence:  the  CIA 
and  related  intelligence  organizations  In 
other  agencies  have  as  their  main  func- 
tion the  gathering  of  information  about 
the  various  activities  of  foreign  nations. 
They  are  authorized  by  our  laws  with 
careful  UmlUtions  to  counteract  espio- 
nage efforts,  and  to  undertake  some  co- 
vert operations  abroad. 

From  the  time  of  the  Constitution,  the 
citizens  of  the  United  States  have  agreed 
that  domestic  order  should  be  maintain- 
ed in  all  cases  except  those  rare  In- 
stances of  overwhelming  danger  by  State 
and  local  police  in  accordance  with  ex- 
plicit State  and  local  laws.  In  order  to 
meet  the  exigencies  of  some  situations  of 
violence,  the  National  Guard  can  be  call- 
ed out  by  States  or  the  President,  but 
only  when  local  or  State  police  cannot 
meet  a  partlciilar  situation  and  only  in 
accord  with  statutory  guidelines. 

These  are  the  main  ways  in  which  we 
maintain  our  national  security.  A  fail- 
ure to  use  these  agreed  upon  means  of 
assuring  domestic  tranquility  and  an  ef- 
fective defense  against  potential  foreign 
enemies  as  prescribed  by  law.  and  to 
create  other  secret  mechanisms  outside 


the  law  can  only  lead  to  a  loss  of  national 
security  and  toward  a  national  security 
state  Watergate  serves  as  a  severe 
warning  of  the  dangers  implicit  In  the 
use  of  arbitrary  power. 

Watergate  indicates  how  a  failure  to 
adhere  to  the  Constitution  and  the  law 
and  the  proper  due  process  of  full  con- 
sultation and  deliberation  between  the 
branches  of  government  has  resulted  in 
severe  damage  to  the  structure  of  our 
democratic  government.  The  actions  of 
highly  placed  and  powerful  officials  as 
we  now  know  from  documentary  evi- 
dence, in  conscious  violation  of  the  law, 
has  weakened  our  democracy. 

Under  the  security  blanket  of  "na- 
tional security."  attempts  were  made  to 
subvert  the  FBI  and  CIA.  A  private  force 
was  created  in  the  White  Hooie  and 
given  authority  by  the  President,  with- 
out any  constitutional  or  statutory-  basis, 
to  bug,  burgle  and  to  act  in  other  unlaw- 
ful ways.  It  Is  without  question  that  the 
creation  of  'the  plumbers,"  and  their 
direction  by  highly  placed  officials,  have 
done  much  to  destroy  the  credibility  of 
the  administration  and  undermine  its 
positive  achievements. 

We  know  that  a  powerful  group  with- 
in the  White  House  launched  a  frontal 
attack  upon  the  FBI  and  its  Director.  J. 
Edgar  Hoover  We  know  that  J.  Edgar 
Hoover  resisted  and  the  secret  police 
force  w£is  not  able  to  carry  out  its  plans 
although  both  the  FBI  and  the  CIA  were 
seriously  undermined  by  the  pressures 
brought  upon  them  by  a  group  of  high 
officials  in  the  White  House. 

Two  principal  custodians  of  our  law. 
the  Directors  of  the  FBI  and  the  CIA, 
were  asked  to  act  illegally  for  reasons  de- 
termmed  by  a  single  authority  alone. 
The  consequences  of  this  attempt,  suc- 
cessful for  a  time,  to  subvert  the  FBI 
and  the  CIA.  are  becoming  more  clear 
each  day. 

Given  this  serious  state  of  affairs.  It 
would  seem  that  our  genuine  concern  for 
national  security— that  our  democratic 
insUtuUons  remain  free  and  responsive 
to  the  public  will— requires  not  only  im- 
mediate action  to  puiush  those  who 
have  abridged  our  rights,  but  It  will  re- 
quire the  closest  cooperation,  trust  and 
respect  for  the  law  by  both  the  legisla- 
tive and  executive  branches  In  the  fu- 
ture. Respect  for  the  law  is  a  primary 
requirement  because  In  recent  years 
extra-legal  approaches  have  split  the 
Government  apart.  Because  the  people 
do  not  trust  their  leaders,  this  growing 
series  of  unlawful  acts  has  demonstrably 
weakened  the  ability  of  our  public  offi- 
cials to  lead  our  people  when  genuine 
danger  or  emergencies  In  fact  occur. 

There  are  constructive  measures  to 
prevent  the  abuse  of  power  and  the  mis- 
use of  the  public  trust  that  can  be  taken 
now  by  the  Congress  and  the  executive 
branch  Jointly.  They  are  measures  that 
should  be  taken  as  soon  as  possible  if 
we  are  to  restore  public  confidence  in 
our  Government.  The  first  Is  to  re- 
examine the  statutory  guidelines  of  our 
naUonal  security  instrumentalities.  The 
Constitution  provides  that  the  Congress 
shall  make  rules  and  regulations  for  the 
use  of  our  military  forces.  TTie  War 
Powers  Act.  I  am  hopeful,  will  provide 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42673 


effective  and  constitutionally  proper 
guidelines  for  the  future  use  of  our 
Armed  Forces  in  hostilities. 

The  former  Attorney  General,  Mr. 
Elliot  Richardson,  in  his  hearings  before 
the  Senate  prior  to  his  conflrmatlon,  said 
that  he  would  work  with  the  Congress 
to  establish  clear  .statutory  g\iidelines  for 
the  operations  of  the  FBI  with  regard  to 
domestic  surveillance.  Mr  Kelley,  the 
FBI  EHrector,  has  also  agreed  to  work 
with  the  Congress.  The  Attorney  General 
designate.  Senator  Sajcbk,  has  recognized 
this  problem  and  has  given  his  pledge 
to  do  his  best  to  correct  the  situation.  In 
my  view,  it  would  be  extremely  helpful 
for  the  Judiciary  Committees  of  both 
Houses,  to  examine  a  number  of  Sen- 
ators' suggestions  that  the  FBI  be  given 
statutory  character  so  that  It  is  more 
Insulated  from  political  pressure  from 
whatever  source,  but  responsive  to  over- 
sight and  direction  from  both  the  execu- 
tive branch  and  the  Congress. 

The  public  exposure  of  recent  illegal 
activities  by  the  CIA  in  domestic  affairs 
has  caused  profound  dismay  in  the  coun- 
try. The  investigations  that  have  been 
conducted  thus  far  will  result,  I  am  con- 
fident. In  legislation  to  Insure  that  the 
CIA  and  other  intelligence  agencies  do 
not.  in  the  future,  become  involved  in 
any  way  in  domestic  matters.  It  is  al- 
ready evident  that  the  operations  of  the 
Intelligence  agencies  are  now  being  more 
carefully  monitored  by  the  existing  over- 
sight committees  of  the  Congress. 
Equally  important,  legislation  proposed 
by  Senator  Ervin,  Senator  Mansfield 
and  myself  has  been  Introduced  and  will 
be  sent  to  the  Senate  floor  for  action 
early  next  session  which  will  insure  that 
the  valuable  Information  gathered  by  the 
CIA  and  all  of  the  Departments  and 
Agencies  of  the  Government  will  be 
available  to  the  Congress  as  a  matter  of 
legal  right  so  that  the  Congress  can  bet- 
ter carry  out  its  responsibilities  of  mak- 
ing the  law  and  sharing  in  the  setting  of 
national  goals  for  this  Nation. 

Watergate  has  underlined  the  view 
that  anything  that  undermines  confi- 
dence In  our  established  institutions,  of 
necessity,  weakens  our  true  national  se- 
curity. There  Is  a  skepticism  and 
csmicism  about  our  electorsil  process. 
There  Is  a  widespread  belief  that  our 
campaign  and  election  procedures  are 
corrupt  and,  by  direct  transference,  that 
those  Involved  in  the  political  process  are 
corrupt  as  well.  Electoral  and  campaign 
reform  legislation  are  vitally  needed  to 
prevent  future  Watergates.  At  a  mini- 
mum, laws  must  be  enacted  which  will 
assure  full  disclosure  of  the  source  of  all 
contributions:  there  must  be  a  limitation 
on  the  amount  that  can  be  received  from 
any  person  or  organization,  and  we  must 
have  an  equitable  system  of  public  fi- 
nancing of  all  elections.  I  Intend  to  con- 
duct my  own  campaign  for  reelection  in 
accordance  with  these  guidelines. 

While  secrecy  cannot  be  equated  with 
national  security,  a  workable  system  of 
protecting  from  potential  enemies  those 
matters  which  should  be  protected  Is  an 
urgent  legislative  and  executive  priority. 
We  need  a  valid  classification  system, 
yet  it  should  be  so  structured  that  it 


protects  our  national  secrets  from  our 
enemies  but  does  not  deny  necessarj-  In- 
formation to  those  in  public  office.  A 
democratic  government  such  as  ours  re- 
quires full  and  open  dLscusslon  on  all 
policy  matters.  It  is  both  an  advantage 
and  a  disadvantage  of  democracy  that 
government  by  cabal  is  difficult  to 
achieve;  democratic  gove.Timent  is  some- 
times slow  and  cumbersome  and  it  is 
difficult  to  carr>'  on  secret  negotiations, 
but  such  shortcomings  are  a  price  worth 
paying  for  an  open  and  free  society. 

These  are  the  main  areas  in  which 
the  legislature  and  the  executive  must 
work  together  and  work  together  now  to 
strengthen  our  national  security.  Our 
natlonU  security  is  no  stronger  than 
the  confidence  our  people  have  in  our 
Government  of  laws  and  in  *hose  elected 
and  appointed  to  carry  out  the  laws 
agreed  upon  by  the  people. 

So  we  must  act,  and  act  now,  to  re- 
store that  confidence. 

The  Government  of  the  United  States 
has  often  been  described  as  the  best 
exeimple  of  the  contract  theory,  that  all 
powers  of  the  CJovernment  derive  from 
The  people.  The  ultimate  contract  of 
every  offlcial.  whether  he  is  a  President  or 
a  general  or  a  Senator,  is  to  obey  the  Con- 
stitution and  the  laws  of  the  land.  This 
Is  a  contract  which  no  official  In  con- 
science or  in  law  can  evade.  Yet,  in 
Watergate  we  have  witnessed  a  blatant 
example  of  high  officials  violating  their 
public  trust.  Watergate  has  revealed  the 
necessity  for  all  our  people  and  all  our 
officials  to  redefine  for  themselves  our 
hierarchy  of  values. 

The  oath  of  office  to  defend  the  Con- 
stitution is  the  highest  obligation  of  all 
those  who  serve  in  the  Government  and 
it  is  the  obligation  of  all  citizens.  It  is 
a  higher  duty  than  loyalty  to  one's  su- 
perior no  matter  who  he  may  be.  Water- 
gate illustrated  in  a  painful  if  very  hu- 
man way,  a  conflict  of  loyalties.  As  we 
have  learned  from  Watergate,  personal 
loyalties,  all  too  often  subverted  the  oath 
to  defend  the  Constitution. 

Watergate  should  be  a  forceful  if  dis- 
turbing and  continuing  reminder  that 
the  American  Revolution  took  place 
when  the  government  of  laws  under 
which  the  American  colonists  agreed  to 
abide  was  not  observed  by  George  m 
and  his  ministers.  The  American  Revolu- 
tion was  fought  to  reestablish  a  govern- 
ment of  agreed  laws  under  which  both 
the  governors  and  the  governed  are 
bound. 

The  tragic  insights  Into  the  iimer 
workings  of  the  highest  reaches  of  our 
Government  that  Watergate  has  given 
us.  provides  at  the  same  time  a  purpose 
and  an  opportunity  to  rebuild  oiu-  na- 
tional security  system.  We  can  work  to 
provide  real  security  and  to  reestablish 
confidence  in  our  „ystem  of  justice.  We 
can  work  together  to  insure  once  again 
that  the  purpose  of  our  Government  is 
not  to  perpetuate  the  poUtical  power  of 
any  group  but  to  exteno  domestic  tran- 
quihty  to  all  our  people,  to  provide  for 
the  common  defense,  and  promote  the 
general  welfare  through  the  due  process 
of  our  Grovemment  of  laws  derived  from 
the  consent  of  the  governed. 


m.  som  raoposALs  to  strxncthxn  otm 

DKMOCEACT 

Whether  Richard  Nixon  is  cleared  of 
all  charges,  or  if  the  facts  warrant  im- 
peaciunent  or  if  he  resigns  the  Presi- 
dency, the  United  States,  nonetheless, 
will  be  faced  with  the  question  of  estab- 
lishing goals  for  the  next  3  years  and  the 
next  tliree  decades  The  present  failure  of 
leaders  m  the  executive  brancl-i  and  in 
the  Congress,  to  lead  the  United  States  to 
meet  the  great  challenges  that  face  our 
country-  and  the  subsequent  loss  of  faith 
and  trust  in  government  by  tiie  people 
of  the  United  States  has  called  into  ques- 
tion the  purposes  of  our  couritry  O^or 
people  have  lost  confidence  and  trust  m 
our  leaders  and  our  basic  mstiiutioris  are 
in  doubt.  This  loss  of  faith  and  confidence 
constitutes  the  most  serious  crisii  faced 
by  our  demcx:ratic  Republic  throughout 
all  its  history- — certainly  since  the  Civil 
War. 

As  we  approach  the  200th  anniversary 
of  the  founding  of  this  democratic  Re- 
public we  are  measuring  our  progress 
against  the  facts  of  history  to  see  how  far 
we  have  come  in  the  two  centuries  of  our 
national  existence.  As  one  citizen,  I  would 
like  to  set  forward  some  conclusions  I 
have  about  the  present  state  of  our  demo- 
cratic government. 

In  my  view-,  the  first  and  most  crucial 
question  we  must  answer  is  whether  we 
have  preserved  and  strengthened  our 
democracy  as  envisaged  by  the  Pounding 
Fathers.  Despite  some  very  significant 
gains  over  the  years  in  universal  suffer- 
age,  civil  rights,  and  breathtakmg  eco- 
nomic and  technological  progress,  it  is 
arguable  that  we  have  less  democracy 
today  than  in  1776.  Tne  mathematics  of 
our  system  of  representation  alone  con- 
firms this  assertion.  In  1776,  each  Repre- 
sentative spoke  for  23.000  people.  Now 
each  Representative  speaks  for  a  half 
million  people.  Our  Nation  now  numbers 
211  miUion  and  this  vast  number  is  rep- 
resented by  537  elected  officials,  that  Is, 
100  Senators.  435  Representatives,  a 
President  and  a  Vice  President  This 
growing  disproportion  between  those  tiiat 
hold  office  and  those  who  elect  them  is 
reflected  on  the  State,  county,  and  local 
level  as  well  This  circumstance  dictates 
that  the  Representatives  of  our  people 
are  increasingly  distant  from  those  who 
elect  them  If  we  are  to  remain  a  demcx;- 
racy.  there  must  be  more  participation 
by  the  people  of  the  United  States  in 
their  government  at  all  levels  than  is 
presently  the  case. 

The  inability  of  our  federal  system  to 
meet  the  needs  of  our  people  Is  increas- 
ing even  though  the  United  States  has 
become  the  most  powerful  nation  in  the 
world.  It  has  created  through  the  ex- 
ploitation of  its  intellectual  and  natural 
resources,  the  most  advanced  technolog- 
ical industrial  base  in  the  history  of  the 
world.  Through  the  beneflts  of  economic 
afiBuence.  has  molded  a  ci\ilization  of 
imparaileled  wealth  with  the  potential 
ability  to  provide  for  all  its  citizens  the 
means  to  a  life  of  physical  well-being, 
peace  and  domestic  tranquility,  as  hoped 
for  by  the  patriots  who  created  the 
United  States  in  1776.  Yet  despite  these 


42674 


CONGRESSIONAL  RECORD  —  SEN  ATE 


resources,  despite  this  awesome  ca- 
pability, a  large  proportion  of  our  cit- 
izens are  In  great  want.  We  have  failed 
to  provide  for  all  of  our  citizens  adequate 
health,  education,  housing,  food,  law  and 
order,  care  for  the  aged,  disabled  and  in- 
firm: In  short,  sdl  of  our  social  services 
have  proved  Inadequate  to  the  need. 

It  has  been  evident  for  decades  that 
oxir  Government  has  failed  to  devise  a 
system  of  providing  from  the  Federal 
level  through  State  and  local  constituen- 
cies the  means  to  adequate  health  serv- 
ices, education,  housing,  food,  care  for 
the  aged,  disabled  and  infirm,  and  ef- 
fective law  and  order.  Even  though  we 
have  long  recognized  the  challenging 
needs  of  our  people  and  even  though  we 
possess  the  means  to  meet  these  chal- 
lenges, why  have  we  failed  to  meet  so  ap- 
parent a  need':'  Why  have  we  permitted 
our  cities  to  decay  and  choke  in  the  pol- 
lution of  the  environment  and  the  hos- 
tility of  violence,  bred  by  desperation  and 
need?  Why  have  we  ignored  the  discon- 
tent registered  with  Increasing  concern 
by  our  people  who  call  upon  the  Gov- 
ernment to  correct  these  and  other  ob- 
vious fallings? 

If  our  Government  has  become  more 
remote  from  the  people,  it  has  also  be- 
come more  complex  and  secretive.  In 
both  the  Congress  and  the  executive 
branches,  there  is  a  compelling  necessity 
to  make  government  more  open.  The 
JJnited  States,  if  it  is  to  remain  a  demo- 
cracy rather  than  an  authoritarian  na- 
tional security  state,  cannot  tolerate  any 
longer  the  making  of  decisions  in  sec- 
recy; it  cannot  continue  to  pem^it  vital 
national  policies  to  be  made  by  a  few  In 
secrecy;  nor  can  we  tolerate  any  longer 
practices  which  remove  high  ofiBcials 
from  accountability  to  the  Congress,  the 
courts  and  the  people. 

FVom  the  earliest  days  of  the  Republic, 
Indeed,  sis  forcefully  expressed  in  the  de- 
bates of  the  constitutional  convention, 
there  has  been  a  struggle  between  what 
is  known  as  the  King's  party,  those  who 
have  for  various  and  as  the  years  have 
gone  on.  for  changing  reasons,  believe 
the  Chief  EScecutive  alone  should  make 
the  vital  decisions,  challenged  only  by 
those  who  through  two  centuries  have 
believed  that  a  representative  democratic 
government  can.  through  reasoned,  col- 
lective Judgment,  arrive  at  sound  judg- 
ments. This  latter  view,  of  course.  Is  the 
essence   of  our   constitutional   govern- 
ment. Yet.  the  King's  party,  through  the 
years  and  in  various  forms,  has  t)een  a 
powerful  force  In  our  Government   The 
King's  party  maintains  that  Congress  Is 
too  slow,  too  diffuse  and  cumbersome  to 
rule  effectively.  It  has  supported  policies 
that  would  enable  a  single  mjm  or  a  few 
men  to  make  the  crucial  national  de- 
cisions  because   they    believe   that   the 
complexity  and   the  speed  required  by 
these  perilous  modem  times  can  only  be 
made  by  a  small  ruling  elite.  This,  of 
course,  is  the  argument  that  has  been 
used  by  all  cabals  and  dictatorships  In 
the  past  and  It  must  be  resisted.  Thomas 
Jefferson    warned    against    the    King's 
party  Influences  saying  that: 

Even  under  the  best  forms  of  Government 
thoee  enlruated  with  power  have  in  time 
and  by  slow  operations  have  perverted  It 
Into  tyranny. 


December  20,  1973 


Watergate  has  revealed  the  preten- 
tions of  the  King's  party  and  how  close 
we  have  come  to  the  perversion  Jefferson 
feared.  The  turn  of  fate  called  Water- 
gate makes  It  possible  for  those  who  con- 
tinue to  believe  in  representative  demo- 
cratic government  to  take  the  steps  nec- 
essary to  return  the  Government  of  the 
United  States  to  a  rule  of  law. 

The  return  of  the  Government  of  the 
United  States  to  a  rule  of  law  under  con- 
stitutional process  will  not  be  realized  un- 
less the  Congress  acts  decisively  to  meet 
its  obligations  prescribed  by  the  Consti- 
tution. As  Members  of  the  Confess  and 
Senate  our  first  and  fundamental  con- 
stitutional duty  is  to  make  the  law.  It  Is 
distressing,  but  nonetheless  true,  and  we 
must  acknowledge  this,  that  most  of  the 
laws  passed  by  the  Congress  are,  in  fact, 
drafted  by  the  executive  branch.  Under 
present  circumstances,  it  would  be  very 
difficult  for  the  Congress  to  do  other- 
wise. For  It  is  also  unfortunately  true 
that  the  Congress  has  failed  to  Insist 
upon  receiving  from  the  executive  branch 
the  necessary  information  to  be  able  to 
make  the  law  as  the  Constitution  in- 
tended. Unless  the  Congress  makes  it  a 
matter  of  law,  a  matter  of  legal  right, 
that  it  shall  receive  whatever  informa- 
tion is  necessary  to  write  the  law.  none 
of  the  obvious  reforms  that  the  United 
States  must  have  to  survive  as  a  democ- 
racy can  be  carried  out. 

As  one  Senator,  I  know  that  it  is  not 
enough  to  point  out  the  fact  that  we  are 
in  a  deep  constitutional  crisis,  that  our 
Government  must  choose  between  con- 
tinued existence  as  a  democratic  consti- 
tutional state  or  decline  into  autocracy — 
I  know  that  it  is  not  enough  to  exhort  my 
colleagues  to  action,  for  I  know  that  if 
the  Congress  is  to  be  something  more 
than  an  empty  cave  of  winds,  we  must 
both  prescribe  and  administer  specific 
remedies.  So  I  Intend  to  introduce  In  the 
next  session  a  number  of  proposals  which 
I  believe  will  help  meet  our  needs  and  I 
would  like  today,  before  this  session  ends, 
to  discuss  some  of  these  proposals  which 
include  some  basic  reforms  which  I  ex- 
pect to  Introduce  as  legislation  early  next 
year. 

In  order  to  remedy  some  of  the  most 
blatant  abuses  of  the  law  revealed  by 
Watergate,  I  intend  to  Introduce  early 
in  the  next  session  a  Bill  of  Rights  Pro- 
cedures Act.  This  act  would  strengthen 
the  guarantees  of  the  first,  fourth,  fifth, 
and  ninth  amendments  and  limit  excep- 
tions to  court  orders  Issued  upon  prob- 
able cause  of  crime  In  accordance  with 
strict  procedures  and  reporting  require- 
ments. It  is  my  view  that  Congress  has 
a  constitutional  duty  to  protect  the 
national  security  and  that  national  secu- 
rity would  not  be  Impeded  in  any  way  by 
the  requirement  that  any  exception  to 
the  fourth  amendment  and  other  con- 
stitutional protections  must  be  based 
upon  a  court  order  Issued  upon  probable 
and  reasonable  cause. 

I  will  Introduce  as  a  bill  early  next 
year  a  plan  for  a  pilot  program  that  em- 
bodies a  proposal  made  by  Thomas  Jef- 
ferson for  the  creation  for  a  new  basic 
unit  of  government  that  he  called  "Little 
Republics"  Watergate  surrounds  us  adl 
with  the  reminder  of  the  danger  our 
country  Is  In,  and,  yet.  we  Intend  to  cele- 


brate the  Bicentennial  of  our  Republic 
as  though  our  Government  was  function- 
ing in  the  spirit  hoped  for  by  Washing- 
ton, Jefferson,  Madison.  Mason,  and  the 
other  Founding  Fathers.  Great  plans  are 
underway  for  new  coins  to  be  minted, 
parades  with  colonial  costumes  and  elab- 
orate fanfare;  visitor  centers  are  being 
readied  for  the  celebrations  to  be  held 
throughout  the  50  States.  But  these  cele- 
brations will  be  empty  trappings  If  we 
fail  to  shore  up  our  democratic  institu- 
tions. 

There  is  a  growing  desire  throughout 
the  country  among  the  people  to  be  in- 
volved In  government:  it  is  a  desire  so 
deep  that  it  has  sometimes  unfortunately 
resulted  In  acts  of  violence  such  as  have 
occurred  during  some  antiwar  protests 
and  civil  rights  demonstrations:  but  it 
is  a  hope  as  old  as  the  Republic  itself. 
This  desire  has  grown  as  our  country 
has  grown  almost  in  direct  proportion 
to  the  rise  in  education,  wealth,  and 
leisure,  and  as  these  benefits  have  been 
extended  to  a  larger  and  larger  segment 
of  the  people.  And  yet  it  is  distressingly 
true  that  the  ability  of  the  people  to 
participate  in  their  own  government  has 
lessened.  Correspondingly,  the  ability  of 
those  elected  to  office,  to  respond  to  local 
desires  and  needs,  has  lessened,  too.  The 
mathematics  of  our  system  of  repre- 
sentation is  evidence  of  this,  but  another 
more  fundamental  factor  is  the  failure 
of  both  Houses  of  Congress  to  adj^jt 
their  procedures  and  structures  to  the 
necessities  of  making  laws  and  oversee- 
ing the  execution  of  the  laws  In  a  super- 
state of  growing  size,  complexity,  and 
power. 

What  is  at  Issue  here  is  how  to  give 
citizens  in  local  constituencies  the  ability 
to  Involve  themselves  directly  in  and  have 
a  meaningul  voice  in  the  matters  that 
most  affect  their  everyday  lives. 

Growing  unrest  and  the  prevalence  of 
an  attitude  of  general  distrust  of  gov- 
ernment in  the  country  reflected  in  every 
poll  indicates  that  an  increasing  number 
of  people  believe  that  their  interests  are 
not  adequately  served  in  the  White  House 
or  in  the  HaUs  of  Congress  nor  in  the 
statehouses  across  the  land,  nor  In  the 
county  seats  of  government  or  in  the 
courthouses,  nor  In  any  of  the  tradi- 
tional seats  of  power  that  have  grown 
up  in  the  course  of  the  Nation  s  history. 
There  is  only  one  exception— a  romantic 
vestige  perhaps— and  that  is  the  system 
found  in  towns  and  villages  that  have 
remained  relatively  constant  In  size. 

I  have  been  struck  by  an  experience 
which  I  am  sure  has  been  shared  by  tens 
of  millions  throughout  the  coimtry  that 
the  place  where  poUtical  life  most  im- 
pinges upon  every  citizen  and  the  place 
where  ever>'  citizen  has  the  opportunity 
immediately  at  hand  to  affect  in  some 
small  way  the  quality  of  his  life  Is  at  the 
local  school.  An  increasing  number  of 
Americans  are  beginning  to  believe  that 
the  cities  are  too  big.  that  farm  life  too 
remote.  They  have  created  for  themselves 
a  new  middle  way.  In  a  sense,  modem 
technology  has  created  a  new  form  of 
life,  the  suburb  with  a  host  of  new  prob- 
lems. Unfortunately,  many  suburbs  have 
no  Integral  center  of  government  except 
insofar  as  they  are  attached  either  to  a 
city  or  to  a  rural  county  government.  In 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


4267r 


most  respects  Lhe.se  older  forms  of  gov- 
ernment do  not  meet  the  need  of  the 
modern  suburtis  and  because  of  the 
growth  of  the  cities  and  the  flight  from 
the  farms  do  not  serve  their  traditional 
constituencies. 

I  have  gone,  as  tens  of  millions  of 
others  have  gone,  to  PTA  meetings,  to 
Boy  Scout  meetings,  to  Cub  Scout  meet- 
ings, meetings  on  road.s,  sewers,  law  and 
order,  pollution,  parks,  recreation,  cele- 
brations, and  a  host  of  meetings  on 
small  incidents  that  go  into  everyday 
life.  Many  of  these  meetings  take  place 
at  the  local  school.  TTie  local  school  is 
most  often  the  polling  center  for  local. 
State,  and  National  elections.  It  is  cer- 
tainly the  one  communal  building  where 
the  citizen,  almost  all  citizens,  can  par- 
ticipate in  government. 

Over  the  past  4  years  I  have  also  wit- 
nessed in  Congress  and  particularly  in 
the  Senate,  the  struggle  over  the  issue  of 
getting  more  revenue  to  local  communi- 
ties either  through  revenue  sharing,  aid 
to  education,  or  a  host  of  specific  local 
projects,  ranging  across  the  whole  spec- 
trum of  American  life  from  sewers  to 
sex,  and  it  is  my  view  that  the  several 
6-inch  thick  bills  with  their  hundreds 
of  conflicting  amendments,  reflect  the 
lack  of  an  underlying  principle  of  how 
local  government  should  function  in  a 
modern  superstate  democracy. 

Sometime  ago  I  was  reading  Jefferson's 
letters  and  found  that  he,  too,  early  in 
the  19th  centur>-,  was  concerned  that  the 
Republic  needed  a  fundamental  reform 
to  give  to  the  people  the  means  to  have 
direct  participation  in  government.  In 
a  long  and  thoughtful  letter  to  Mr.  Sam- 
uel Kercheval,  written  in  1816,  on  the 
subject  of  necessary  reforms,  Jefferson 
wrote  of  the  dilemma  then  facing  demo- 
cratic government  in  the  United  States; 
it  is  a  dilemma  no  less  pertinent  now  than 
it  was  In  1816: 

This  corporeal  globe,  and  everything  upon 
It.  belong  to  its  present  corporeal  Inhabitants 
during  their  generation.  They  alone  have 
a  right  to  direct  what  is  the  concern  of 
themselves  alone,  and  to  declare  the  law  of 
that  direction;  and  this  declaration  can  only 
be  made  by  their  majority.  That  majority, 
then,  has  a  right  to  depute  representatives 
to  a  convention,  and  to  make  the  Constltu- 
.^  tlon  what  they  think  will  be  the  best  for 
,^  themselves.  But  how  collect  their  voice?  This 
is  the  real  difficulty.  If  Invited  by  private 
authority,  or  county  or  district  meetings, 
these  divisions  are  so  large  that  few  wtu 
attend;  and  their  voice  will  be  Imperfectly, 
or  falsely  pronounced. 

Jefferson's  solution  to  this  problem  was 
as  follows : 

But  foUow  principle,  and  the  knot  unties 
Itself.  Divide  the  counties  into  wards  of  such 
size  as  that  every  citizen  can  attend,  when 
caUed  on,  and  act  In  person.  Ascribe  to  them 
the  government  of  their  wards  In  all  things 
relatmg  to  themselves  exclusively.  A  Justice, 
chosen  by  themselves,  in  each,  a  constable,  a 
military  company,  a  patroU  a  school,  the 
care  of  their  own  poor,  their  own  portion  of 
the  public  roads,  the  choice  of  one  or  more 
Jurors  to  serve  in  some  court,  and  the  de- 
livery, within  their  own  wards,  of  their  own 
votes  for  all  elective  officers  of  higher  sphere, 
wlU  relieve  the  county  administration  of 
nearly  all  Its  business,  will  have  It  better 
done,  and  by  making  every  citizen  an  acting 
member  of  the  government,  and  In  the  offices 
nearest  and  most   Interesting  to  him,   will 


attarh  him  by  his  strongest  feehnt-s  to  the 
Independence  of  his  country,  and  Its  re- 
publican Constitution  The  Justices  thus 
chosen  by  every  ward,  would  constitute  the 
county  court,  would  do  its  Judiciary  business, 
direct  roads  and  bridges,  ievy  county  and 
poor  rates,  and  administer  all  the  matters  of 
common   interest    to   the   whole   country. 

These  wards,  called  townships  In  New  Eng- 
land, are  the  vita!  principle  of  their  govern- 
ments, and  have  proved  themselves  the 
wisest  invention  ever  devLsed  by  the  wit  of 
man  for  the  perfect  exercise  of  self-govern- 
ment, and  for  its  preservation.  We  should 
thus  marshal  our  government  Into,  1,  the 
general  federal  republic,  for  all  concerns 
foreign  and  federal,  2  that  of  the  State,  for 
what  relates  to  our  own  citizens  exclusively; 
3,  the  county  republics,  for  the  duties  and 
concerns  of  the  county,  and  4  the  ward  re- 
publics, for  the  small,  and  yet  numerous  and 
Interesting  concerns  of  the  neighborhood; 
and  In  government,  as  well  as  in  every  other 
business  of  life,  it  is  by  division  and  sub- 
division of  duties  alone,  that  all  matters, 
great  and  small,  can  be  managed  to  per- 
fection. And  the  whole  Is  cemented  by  giving 
to  every  citizen,  personally,  a  part  in  the  ad- 
ministration of  the  public  affairs, 

Jefferson  believed  that  the  "Little  Re- 
publics" would  be  the  best  way  to  address 
national  issues  to  the  people  and  provide 
a  method  of  referring  fundamental  ques- 
tions to  the  people  for  their  vole.  Imagine 
how  much  more  useful  than  opinion  polls 
Jefferson's  system  would  have  been  for 
determining  the  public  will  on  the  issue 
of  Vietnam  or  of  race  or  Impeachment? 
He  suggested : 

Here,  then,  would  be  one  of  the  advantages 
of  the  ward  divisions  I  have  proposed.  The 
mayor  of  every  ward,  on  a  question  like  the 
present,  would  call  his  ward  together,  take 
the  simple  yea  or  nay  of  Its  members,  convey 
these  to  the  county  court,  who  would  hand 
on  those  of  all  Its  wards  to  the  proper  gen- 
eral authority;  and  the  voice  of  the  whole 
people  would  be  thus  fairly,  fully,  and  peace- 
ably expressed,  discussed,  and  decided  by  the 
common  reason  of  the  society.  If  this  avenue 
be  shut  to  the  call  of  sufferance.  It  will  make 
Itself  heard  through  that  of  force,  and  we 
shall  go  on,  as  other  nations  are  doing.  In 
the  endless  circle  or  oppression,  rebeUlon, 
reformation,  again;  and  so  on  forever. 

In  Other  letters,  the  Idea  of  the  "Little 
Republics"  was  developed  in  somewhat 
more  detail.  Writing  Maj.  John  Cart- 
wright  In  1824,  commenting  on  some 
views  of  constitutional  theory,  Jefferson 
said: 

Our  Revolution  commenced  on  more  favor- 
able ground.  It  presented  us  an  album  on 
which  we  were  free  to  write  what  we  pleased. 
We  had  no  occasion  to  search  Into  musty 
records,  to  hunt  up  royal  parchments,  or  to 
Investigate  the  laws  and  Institutions  of  a 
seml-bart>arous  ancestry.  We  appealed  to 
those  of  nature,  and  found  them  engraved 
on  our  hearts.  Yet  we  did  not  avail  ourselves 
of  all  the  advantages  of  our  position.  We  had 
never  been  p)ermltted  to  exercise  self-govern- 
ment. When  forced  to  assume  It,  we  were 
novices  in  Its  science.  Its  principles  and  forms 
had  entered  little  Into  our  former  education. 
We  established,  however,  some,  although  not 
all  Its  Important  principles. 

The  constitutions  of  most  of  our  States  as- 
sert, that  all  power  Is  inherent  In  the  peo- 
ple; that  they  may  exercise  it  by  themselves. 
In  ei\  cases  to  which  they  think  themselves 
competent  (as  In  electing  their  functionar- 
ies executive  and  legislative,  and  deciding 
by  a  Jury  of  themselves.  In  all  Judiciary  cases 
In  which  any  fact  Is  Involved),  or  they  may 
act  by  representatives,  freely  and  equally 
chosen;   that  It  Is  their  right  and  duty  to 


be  at  all  times  armed;  that  they  are  entitled 
to  freedom  of  person,  freedom  of  religion, 
freedom  of  property,  and  freedom  of  the 
press. 

In  the  structure  of  our  legislatures,  we 
think  experience  has  proved  the  benefit  of 
subjecting  questions  to  two  separate  bod:e« 
erf  deliberants;  but  In  constltutuig  these, 
natural  right  has  been  mistaken  some  mak- 
ing one  of  these  bodies,  and  son.e  fc>oth,  the 
representatives  of  property  instead  of  per- 
sons: wheresLS  the  double  de;iberatlon  might 
be  as  well  obtained  without  any  violation  of 
true  principle,  either  by  requirUig  a  greater 
age  in  one  of  the  b.xlle«,  cr  by  e:ect;ng  a 
proper  number  of  representatives  of  persons, 
dividing  them  by  lots  Into  two  chambers, 
and  renewing  the  division  at  frequent  In- 
tervals, in  order  to  break  up  all  cabals 

Virginia,  of  which  I  am  myself  a  native 
and  resident,  was  not  only  the  first  of  the 
States,  but  I  believe  I  may  say,  the  first  of 
the  nations  of  the  earth,  which  assembled 
Its  wise  men  jseaceably  together  to  form  a 
fundamental  cciistitution.  to  commit  It  to 
writing,  and  place  ;t  among  their  archives, 
where  everyone  shcru.d  be  free  to  appeal  to 
Its  text    But  this  act  was  very  imperfect 

The  other  States,  as  they  proceeded  succes- 
sively to  the  same  work,  made  successive  Im- 
provements; and  several  of  them,  still  further 
corrected  by  experience,  have,  by  conventions, 
stlU  further  amended  their  first  forms.  My 
own  State  has  gone  on  so  far  with  its  premiere 
ebftuche;  but  It  Is  now  proposing  to  call  a 
convention  for  amendment.  Among  other  Im- 
provements. I  hope  they  will  adopt  the  sub- 
division of  our  counties  into  wards. 

The  former  may  be  estimated  at  an  aver- 
age of  twenty -four  miles  square,  the  latter 
should  be  about  six  miles  square  each,  and 
would  answer  to  the  hundreds  of  your  Saxon 
Alfred.  In  each  of  these  might  be,  first,  an 
elementary  school;  second,  a  company  of 
militia,  with  Its  officers;  third,  a  Justice  of 
the  peace  and  constable;  fourth,  each  ward 
should  take  care  of  their  own  poor;  fifth, 
their  own  roads;  sixth,  their  own  police; 
seventh,  elect  within  themselves  one  or  more 
Jurors  to  attend  the  courts  of  Justice;  and 
eighth,  give  In  at  their  folk-house,  their 
votes  for  all  functionaries  reserved  to  their 
election  Each  ward  would  thus  be  a  smaU 
republic  within  Itself,  and  every  man  In  the 
State  would  thus  become  an  acting  member 
of  the  common  government,  transacting  In 
person  a  great  pc«-tlon  of  its  rights  and  duties, 
subordinate  Indeed,  yet  Important,  and  en- 
tirely within  his  comF)etence.  The  wit  of 
man  cannot  devise  a  more  solid  basis  for  a 
free,  durable  and  well-admlnlstered  republic. 

Jefferson's  proposal  for  a  new  basic 
unit  in  American  government,  closer  to 
the  people  is  based  upon  his  ideas  for 
public  education  which  he  developed  In 
the  days  prior  to  the  Constitutional  Con- 
vention. The  germ  of  the  idea  is  in  "A  Bill 
for  the  More  General  Diffusion  of  Knowl- 
edge" presented  in  1788.  He  developed 
this  idea  further  in  a  letter  to  John 
Adams  dated  October  28,  1813.  He  wrote: 

At  the  first  session  of  our  legislature  after 
the  Declaration  of  Independence,  we  passed 
a  law  abolishing  entails.  And  this  was  fol- 
lowed by  one  abolishing  the  privilege  of 
primogeniture,  and  dividing  the  lands  of  In- 
testates equally  among  all  their  chUdren.  or 
other  representatives.  These  laws,  drawn  by 
myself,  laid  the  axe  to  the  foot  of  pseudo- 
aristocracy.  And  had  another  which  I  pre- 
pared been  adopted  by  the  legislature,  our 
work  would  have  been  complete.  It  was  a 
bill  for  the  more  general  diffusion  of  learn- 
ing. This  proposed  to  divide  every  county  Into 
wards  of  five  or  six  miles  square,  like  your 
townships;  to  establish  In  each  ward  a  free 
school  for  reading,  writing  and  common 
arithmetic;  to  provide  for  the  annual  selec- 
tion of  the  best  subject  from  these  schools. 


12676 


CONGRESSION  A I    RECORD  —  SEN  A  1  I 


who  might  receive,  at  the  public  expense,  a 
higher  degree  of  education  at  a  district 
school:  and  from  these  district  schools  to 
select  a  certain  number  of  the  most  promis- 
ing subjects,  to  be  completed  at  an  univer- 
sity, where  all  the  useful  sciences  should  be 
taught 

Worth  and  genius  would  thus  have  been 
sought  out  from  every  condition  of  life,  and 
completely  prepared  by  education  for  de- 
feating the  competition  of  wealth  and  birth 
for  public  trusts.  My  propoaitlon  had.  for  a 
further  object,  to  impart  to  these  wards 
those  portions  of  self  government  for  which 
they  are  best  qualified,  by  confiding  to  them 
the  care  of  their  poor,  their  roads,  police, 
elections,  the  nomination  of  Jurors,  admin- 
istration of  Justice  In  small  cases,  elementary 
exercises  of  mllltla:  In  short,  to  have  made 
them  little  republics,  with  a  warden  at  the 
head  of  each,  for  all  thoee  concerns  which. 
being  under  their  eye.  they  would  better 
manage  than  the  larger  republics  of  the 
county  or  State.  A  general  call  of  ward 
meetings  by  their  wardens  on  the  same  day 
through  the  State,  would  at  any  time  pro- 
duce the  genuine  sense  of  the  people  on  any 
required  point,  and  would  enable  the  State 
to  act  In  mass,  as  your  people  have  so  often 
done,  and  with  so  much  effect  by  their  town 
meetings  .  . 

There  are  two  subjects,  indeed,  which  I 
shall  claim  a  right  to  further  as  long  as  I 
breathe,  the  public  education  and  the  sub- 
division of  counties  Into  wards  I  consider 
the  continuance  of  republican  government 
as  absolutely  hanging  on  these  two  hooks. 
Of  the  first,  you  wUl.  I  am  sure,  be  an  advo- 
cate, as  having  already  refiected  on  it.  and  of 
the  last,  when  you  shall  have  reflected.  Ever 
affectionately  yours. 

I  think  the  country  Is  ready  now  In  a 
wa.v  that  it  has  not  been  for  200  years  for 
Jefferson  ■^  proposed  reform  of  American 
democratic  (?overnment  that  would  di- 
rectly embody  "the  genuine  sense  of  the 
people"  Jefferson  very  clearly  under- 
stood the  respective  roles  of  the  Federal. 
State,  and  county  governments  I  have 
drawn  upon  Jefferson  extensively  be- 
cause in  a  clear  and  a  foreslshted  way  he 
understood  the  necessity  for  the  creation 
of  a  new  basic  unit  of  government.  I 
suggest  that  Jefferson's  proposal  can  be 
practicably  adopted  and  it  would  do 
much  to  strengthen  the  fabric  of  partlcl- 
pator>-  democracy. 

There  are  those  who  maintain  that 
giving  power  to  the  people  would  be  dan- 
gerous. Inefficient  and  corrupt  Thev  base 
this  view  on  examples  of  Inefficiency, 
wastefulness  and  corniotion  that  have 
taken  place  at  local  government  in  the 
past  But  no  level  of  government  Is 
exempt  from  grievous  examples  of  in- 
efficiency, waste,  and  corruption  It  Is 
before  our  eyes  everyday  At  the  same 
time,  at  every  level  of  government  in- 
cluding the  local  level,  there  have  been 
examples  of  government  operating  ef- 
ficiently, in  an  economical  fashion  and 
with  full  probity  In  my  view,  a  govern- 
ment is  no  better  than  the  people  who 
are  in  the  Government  and  in  the  case 
of  the  United  States,  are  no  better  than 
the  people  who  elect  them  to  office. 
What  is  at  issue  here  1$  to  broaden  the 
ability  of  citizens  to  directly  control  the 
quality  of  their  own  lives. 

We  have  chosen  democracy  as  our 
political  system:  but  for  democracy  to 
be  a  reality  It  requires  the  maximum 
participation  of  the  people  In  ruling 
themselves. 


December  20,  1973 


The  Federal  Government  would  still 
establl.sh  laws  and  patterns  and  overall 
standards  for  every  citizen  below  which 
the  State  or  county  or  wards  could  not 
go.  For  example,  questions  of  civil  liber- 
ties, civil  rights,  ethical  standards  for 
dispensing  and  surcounting  for  funds, 
foreign  policy  and  defense.  £ire  a  proper 
Federal  concern.  The  States,  in  turn, 
have  their  area  of  responsibility  con- 
cerning matters  affecting  citizens  within 
a  State  Jurisdiction  There  Is  no  reason 
why  a  State,  a  county  or  a  ward  cannot 
establish  higher  standards,  but  it  cannot 
in  any  way  abridge  the  law  of  all  the 
land. 

There  is  no  reason  why  a  local  Juris- 
diction, in  size  somewhat  equivalent  to 
some  local  school  districts,  or  about  10.- 
000  people,  should  not  have  the  final  say 
in  peculiarly  local  concerns.  Our  country 
is  made  up  of  diverse  peoples  who  have 
come  from  every  country  in  the  world, 
our  geography  has  affected  the  way  in 
which  people  live;  and  in  an  age  of 
homogenization  and  uniformity,  many  of 
these  differences  are  of  value,  not  only  to 
the  individuals  who  hold  them,  but  eiIso 
to  the  heritage  of  the  country  as  a  whole. 
There  is  no  reason  why  the  most  demo- 
cratic, most  fortunate  suid  most  educated 
country  in  the  world  cannot,  for  its  own 
betterment,  have  effective  participatory 
local  government  Jefferson  provided  the 
formula  and  the  time  Is  right  now  for  the 
country  to  debate  and  consider  his  wise 
proposal. 

We  are  all  witnesses  to  the  twilight  of 
parliaments  and  the  decline  of  democra- 
tic representative  governments  in  the 
world.  Recent  histor>-  bears  out  the  con- 
tention that  democratic  governments  are 
becoming  the  exception  among  nations. 
We  are  all  gradually  awakening  to  the 
danger  that  the  United  States,  if  it  con- 
tinues In  the  pattern  of  the  last  40  years, 
could  become  an  authoritarian  state. 

Watergate  Is  the  turning  point  in  our 
Nation's  history.  If  we  turn  our  backs  to 
the  grievous  attacks  that  have  been  made 
on  the  Constitution  and  the  laws  of  the 
land  under  the  vague  incantations  of  one 
man's  view  of  national  security,  we  will 
have  lost  our  right  to  hold  the  precious 
gift  of  freedom  won  for  us  almost  200 
years  ago  by  men  of  courage,  integrity, 
and  intelligence. 

Mr.  HATFIELD.  Mr.  President,  will  the 
Senator  from  Maryland  yield' 
Mr  MATHIAS.  I  yield. 
Mr.  HATFIELD.  Mr.  President,  I  would 
just  like  to  commend  the  Senator  from 
Maryland  because,  as  he  indicated  in  his 
introductory  comments,  we  seem  to  be 
in  an  interesting  legislative  coupling  this 
morning.  Having  made  some  comments 
with  respect  to  our  having  made  an  idol 
of  national  security,  the  distinguished 
Senator  from  Maryland  has  probably  put 
together  one  of  the  most  scholarly  and 
careful  documents  I  have  retid  in  the  cur- 
rent day.  as  it  relates  to  the  things  that 
have  been  done  under  the  name  of  na- 
tional security,  which  have  really  In  ef- 
fect threatened  the  liberUes  of  the  peo- 
ple. And  in  addition  there  is  a  further 
evidence  of  our  Interest  in  a  national 
self-righteousness  However,  we  are  talk- 
ing about  the  faith  of  the  people  in  the 
comments  being  made  now  by  the  Sena- 


tor from  Maryland  and  evidences  where 
the  political  leadership  has  become  so 
arrogant  that  it  has  taken  unto  itself  not 
only  great  authority  to  challenge  the 
rights  of  the  people,  but  has  also  demon- 
strated in  a  very  strong  way  its  lack  of 
faith  In  the  people.  After  all.  complete 
truth  is  the  source  of  sovereignty  in  this 
country. 

And  there  has  been  this  sort  of 
a  patrcmizing.  paternalistic  attitude  that. 
"We  know  what  is  best  for  the  people, 
and  we  shall  do  as  we  please;  this  is  in 
the  best  interest  of  the  people." 

I  cannot  help  but  be  moved  to  say  at 
this  time  that  the  Senator  has  not  only 
set  forth  the  situation  in  a  very  clear 
way.  but  he  has  indicated  further  in  his 
presentation  some  of  the  answers.  It  is 
one  thing  to  identify  problems,  but  it  is 
another  thing  to  offer  solutions,  and  I 
commend  the  Senator  for  hLs  commit- 
ment to  decentralization  because  here 
again  it  shows  similarity— I  suppose  of 
like  minds — to  a  proposal  for  neighbor- 
hood government  that  I  have  made,  as  I 
see  his  proposal  coming  for  little  re- 
publics. 

I  think  this  document  should  not  only 
be  distributed  to  our  colleagues  through 
the  Congressional  Rkcokd.  but  as  a  for- 
mer educator  I  would  like  to  see  every 
student  in  our  universities,  colleges,  and 
high  schools  given  an  opportunity  to 
read  it.  I  do  not  know  when  I  have  been 
so  much  impressed  by  such  detail,  such 
scholarly  and  academic  preparation,  as 
that  which  has  gone  into  the  Senator's 
statement:  not  in  any  other  statement 
on  this  floor  in  my  memory. 

I  Just  wanted  to  express  my  apprecia- 
tion. 

Mr.  MATHIAS.  The  Senator  is  very 
kind  and  very  generous.  I  appreciate  his 
support,  and  feel  that  whatever  merit  Is 
contained  in  this  statement  is  an  expres- 
sion of  the  concerns  and  interests  that 
he  and  I  have  shared  over  many  years. 

Mr.  MAJ^SFIELD.  Mr.  President.  I 
»1sh  to  quote  a  sentence  from  the 
most  significant  and  highly  appropriate 
speech  Just  made  by  the  distinguished 
Senator  from  Maryland  (Mr.  Mathias>. 
as  follows : 

We  cannot  wait  to  begin  thinking  about 
what  we  shall  do  when  we  return  to  the 
Capitol  next  month.  We  cannot  put  off  even 
for  a  month  what  must  be  done.  The  past 
may  haunt  us.  but  the  future  crowds  us 

I  thank  the  distinguished  Senator 
from  Maryland 


ORDER  OF  BUSINESS 

The  PRESIDING  OFFICER.  Under 
the  previous  order,  the  Senator  from 
West  Virginia  <Mr.  Robert  C.  Byrd)  is 
recognized  for  not  to  exceed  15  minutes. 

Mr  ROBERT  C  BYRD  Mr.  President. 
I  yield  my  time  to  the  distinguished  ma- 
jority leader. 


TRANSACTION  OF  ROUTINE  MORN- 
ING BUSINESS 

The  PRESIDINO  OFFICER  Under 
the  previous  order  there  will  now  be  a 
period  for  the  transaction  of  routine 
morning  business  with  statements 
limited  therein  to  3  minutes. 


December  20,  1973 

REPORTS  OP  COMMITTEES 

The  following  reports  of  committees 
weresubmitL^'d 

By  Mr.  ROBERT  C.  BYRD  (for  Mr.  Can- 
wow).  from  the  Comxnittee  on  Rules  and 
Administration,  without  amendment: 

8 J.  R«s  178  Joint  resolution  to  provide 
for  the  estabiLshment  of  the  Lyndon  Balnea 
Johnaon  Memorial  Grove  on  the  Potomac 
(Kept.  No  83  «80i . 

By  Mr.  JACKSON  from  the  Committee  on 
Interior  and  lxi.suJar  Affairs,  with  amend- 
ments: 

S.  316.  A  bill  to  further  the  purpoees  of 
the  WUderness  Act  of  1964  by  designating 
certain  lands  for  Inclusion  In  the  national 
wllderneiV!  preservation  system,  and  for  other 
pur]:).>sfg  i  Rfpt.  No.  93-661 ) . 

By  Mr  I'KIX.  from  the  Committee  on  For- 
eign K«-.i»t:   ...s.  with  amendments: 

S.  2754.  A  bUl  to  prohibit  aU  military 
assistance  to  Greece  until  It  Is  determined 
that  Greece  Is  fulfilling  its  obUgatlons  under 
the  North  Atlantic  Treaty  (Rept.  No  93- 
063). 


CONGRESSIONAL  RECORD  —  SENATE 


42677 


EXECUTIVE  REPORT  OF  A 
COMMITTEE 

As  In  executive  session,  the  following 
executive  report  was  submitted : 

By  Mr.  ROBERT  C.  BYRD  (for  Mr.  East- 
land) ,  from  the  Committee  on  the  Judiciary: 

Charles  D.  Loos,  of  Indiana,  to  be  VS. 
marshal  for  the  Southern  district  of  Indiana. 

<The  above  nomination  was  reported 
with  the  recommendation  that  the  nom- 
ination be  confirmed,  subject  to  the 
nominee's  commitment  to  respond  to  re- 
quests to  appear  and  testify  before  any 
duly  constituted  committee  of  the  Sen- 
ate.) 


INTRODUCTION  OF  BILLS  AND 
JOINT   RESOLUTIONS 

The  following  bills  and  joint  resolu- 
tions were  introduced,  retid  the  first 
time  and,  by  unanimous  consent,  the 
second  time,  and  referred  or  passed,  as 
Indicated: 

By  Mr  ERVIN: 
8  3836.  A  bUl  to  protect  the  constitutional 
rights  of  citizens  of  the  United  States  and 
to  prevent  unwarranted  Invasion  of  their 
privacy  by  prohibiting  the  use  of  the  poly- 
graph for  certain  purposes  Referred  to  the 
Committee  on  the  Judiciary. 

By  Mr.  HART  (for  himself.  Mr.  Huoh 
Scott.  Mr.  Case,  and  Mr.  Clakk)  : 
S    2837    A   bill   to  regulate   the  Interstate 
and    foreign    commerce    tradmg    of    futures 
contracts    in    order    to    prevent    unfair    and 
deceptive    acts    and    practices.    Referred    to 
the  Committee  on  Agriculture  and  Forestry 
By  Mr  DOMINICK: 
S    2838.  A  bill  for  the  relief  of  Michael  D. 
Manemann.   Referred   tdk  the  Committee  on 
the  Judiciary. 

By  Mr'.  INOUYE : 
8.  2839.   A   blU   for   the  relief  of  Graclela 
Castillo.  Referred  to  the  C3ommltt*e  on  the 
Judiciary. 

S.  2840.  A  bill  to  authorize  the  Secretary 
of  Commerce  to  conduct  a  study  of  foreign 
direct  and  portfolio  Investments  In  the  United 
States  and  for  other  purposes.  Referred  to  the 
Committee  on  Commerce,  by  unanimous 
consent. 

By  Mr  BEALL  (for  himself  and  Mr. 
Mathias)  : 
S.  2841.  A  bill  to  amend  the  Chesapeake 
&  Ohio  Canal  Development  Act  so  as  to 
expand  the  boundaries  of  the  Chesapeake  & 
Ohio  Canal  National  Historic  Park  to  include 
oartaln  lands  within  the  areas  from  North 


Branch  to  Cumtjerlaiid  Md  Referred  to  the 
Committee  on  Interior  and  Insular  Affairs. 
By  Mr.  BEa^TSEN: 
S.  2842  A  bi:;  to  provide  for  the  continu- 
ing availab;!:ty  of  capital  for  economic  growth 
and  the  creation  of  ne*  jobs  and  to  provide 
for  greater  competitiveness  in  our  economy  by 
amending  the  Internal  Revenue  Code  of  19M 
to  Impose  limitations  on  institutions  hold- 
ings of  securities  and  to  encourage  individ- 
uals to  Invest  In  securities.  Referred  to  the 
Committee  on  Finance. 

By  Mr.  INOUYE   (for  himself  and  Mr. 

FoNO) : 

S     2843.    A    blU    to   declare    Kuapa    Pond, 

Hawaii,    as    not    a    navigable    water    of    the 

United  States.  Referred  to  the  Committee  on 

Public  Works. 

By   Mr.   BIBLE    (for  himself   and   Mr. 
Jackson) : 
S.   2844.  A   bUl  to  amend   the  Land   and 
Water  Conservation  Fund  Act.  as  amended, 
to   provide   for   collection  of  special   recrea- 
tion use  fees  at  additional  campgrounds,  and 
for  other  purposes.  Referred  to  the  Commit- 
tee on  Interior  and  Insular  Affairs. 
By  Mr.  NELSON : 
S.  2846.  A  bUl  to  amend  the  Federal  Pood. 
Drug,  and  Cosmetic  Act  In  c»tler  to  protect 
consumers  against  food  additives  which  have 
mutagenic  or  teratogenic  effects  on  man  or 
animals.  Referred  to  the  Committee  on  Labor 
and  Public  Welfare. 

By  Mr.  HART  (for  himself,  Mr.  Macntt- 
soN.  Mr.  Chtum,  and  Mr.  Eastland)  : 
8.  2846.  A  bUl  to  protect  the  flow  of  Inter- 
state commerce  from  unreasonable  damage  to 
environmental   health   by   assuring  an   ade- 
quate supply  of  chlorine  and  other  chemi- 
cals and  substances  which  are  necessary  for 
safe   drinking    water    and    for    waste    water 
treatment.   Referred   to   the   Committee   on 
Commerce,  by  unanimous  consent 
By  Mr.  BAYH : 
S.   2847.   A   bill   for   the  relief  of  Barbcu-a 
Olivia  York.  Referred  to  the  Committee  on 
the  Judiciary. 

By   Mr.   HATFIELD    (for   himself,   Mr. 
HuGHis,    Mr.    DoMKNici,    Mr     Han- 
sen, Mr.  NuNN,  Mr.  Johnston,  Mr. 
Allun,    Mr.    Fannin,    Mr.    Stennis. 
Mr.  Baktlett,  Mr.  Chuxs,  and  Mr. 
Randolph) : 
8J.  Res.  183.  Original  Joint  resolution  to 
proclaim  April  30.  1974,  as  a  National  Day  for 
Humiliation,  Pasting,  and  Prayer.  Considered 
and  passed. 


STATEMENTS       ON       INTRODUCED 
BILLS    AND    JOINT    RESOLUTIONS 
By  Mr.  ERVIN: 

S.  2836.  A  bill  to  protect  the  constitu- 
tional rights  of  citizens  of  the  United 
States  and  to  prevent  imwarranted  in- 
vasion of  their  privacy  by  prohibiting  the 
use  of  the  polygraph  for  certain  pur- 
poses. Referred  to  the  Committee  on 
the  Judiciary. 

Mr.  ERVIN.  Mr.  President,  on  June 
24,  1971,  I  introduced  S.  2156,  a  bill  to 
protect  the  American  people  against  the 
invasion  of  their  privacy  through  the 
use  of  the  polygraph.  Today  I  reintro- 
duce this  measure. 

The  technological  era  is  not  one  of  un- 
mixed blessings.  We  all  can  take  great 
pride  in  our  American  Ingenuity  which 
has  made  the  United  States  the  world's 
greatest  industrial  Nation.  However, 
only  recently  have  we  awakened  to  the 
dangers  of  permitting  expediency  to  dic- 
tate the  course  of  our  economic  and 
social  progress.  Our  great  industrial  and 
technological  revolution  has  been  not 
only  at  the  expense  of  the  quality  of  the 


air  we  breathe  and  water  and  food  we 
consume,  but  at  the  expense  of  the 
uniqueness  and  dignity  of  all  of  us  els  in- 
dividuals. 

I  refer  specifically  to  the  trend  to  use 
this  new  technology-  to  promote  contro- 
versial behavioral  science  iheones  which 
are  supposed  U)  heip  us  obtain  ana  meas- 
ure truth  One  such  theory  which  has 
found  currency  in  the  employment  field 
is  that  if  one  c-an  ordy  acquire  s'officlent 
information  m  advance  on  an  individual, 
then  one  can  predict  and  control  be- 
havior, so  "truth  venfication"  devices 
have  been  developed  The  most  widely 
used  device  is  the  polygraph  or  so-calied 
lie  detector 

Increasingly,  traditional  employment 
practices  are  being  abandoned  in  favor 
of  polygraph  exaniinal;on.<  ThL>=  instru- 
ment is  being  used  to  determme  the  fit- 
ness of  individual^  for  employment,  for 
promotion,  for  deainig  wTth  security  in- 
formation, or  to  determine  eti.ical  mis- 
conduct or  violations  of  personnel  reg- 
ulations. And  they  are  being  u.sed  despite 
the  fact  that  there  is  no  clear  scientific 
proof  that  they  prove  anything  or  predict 
anything  for  employment  purposes. 

During  a  polygraph  examination  it  is 
common  practice  for  the  operator  to 
probe  into  many  personal  details  of  an 
individual's  life,  unrelated  to  his  employ- 
ment. In  fact,  personal,  controversial,  or 
stimulating  questions  are  deliberately 
asked  in  order  to  form  a  basis  of  "norm" 
for  measuring  reactions  to  "relevant" 
questions.  Consequently,  polygraph  re- 
ports contain  such  personal  information 
as  how  the  subject  thinks:  how  he  be- 
haves in  his  personal  life;  what  he  reads; 
what  his  conduct  and  attitudes  are  in 
Sexual  matters;  how  he  relates  to  his 
parents  and  family;  and  what  he  dreams 
about. 

As  long  as  these  machines  are  per- 
mitted in  employment  situations,  they 
vrill  be  a  perpetual  danger  to  the  free- 
dom which  is  most  ch3feshed  by  us  all — 
our  right  to  privacy. 

The  Constitution  Itself  creates  a  right 
to  privacy  which  is  designed  to  assure 
that  the  minds  and  hearts  of  Americans 
remain  free.  The  bulwark  of  this  con- 
stitutional principle  is  the  first  amend- 
ment. The  first  amendment  was  designed 
to  protect  the  sanctity  of  the  individual's 
private  thoughts  and  beliefs.  It  protects 
the  individual's  right  to  free  exercise  of 
conscience;  his  right  to  assemble  to  peti- 
tion the  Government  for  redress  of 
grievances;  his  right  to  associate  peace- 
ably with  others  of  like  mind  in  pursuit 
of  a  common  goal;  his  right  to  speak 
freely  what;  he  believes;  and  his  right  to 
try  to  persuade  others  of  the  worth  of 
his  ideas. 

The  fourth  amendment  guarantees 
"the  right  of  the  people  to  be  secure  in 
their  persons,  houses,  papers,  and  effects, 
against  unreasonable  searches  and  sei- 
zures." In  addition  to  the  privacy  of 
one's  home  and  personal  effects,  the  pri- 
vacy of  his  person — or  bodily  integrity— 
and  even  his  private  telephone  conver- 
sations are  protected  by  the  fourth 
amendment.  The  fifth  amendment  guar- 
antees that  an  individual  shall  not  be 
forced  to  divulge  private  information 
which  might  incriminate  him.  It  also 


12678 


CONGRESSIONAL  RECORD  — SENATE 


protects  Individual  privacy  by  prevent- 
ing unwarranted  governmental  Interfer- 
ence with  the  Individual's  person,  per- 
sonality, and  property  without  due  proc- 
ess of  law. 

The  ninth  amendments  reservation 
that  "the  enumeration  m  the  Constitu- 
tion of  certain  rights,  shall  not  be  con- 
strued to  deny  or  disparage  others  re- 
tained by  the  people"  clearly  shows  that 
the  Pounding  Fathers  contemplated  that 
certain  basic  individual  rights  not  spe- 
ciflcaliy  mentioned  in  the  ConsUtution — 
such  as  privacy — should  nevertheless  be 
safe  from  governmental  interference. 

The  Supreme  Court  has  held  many  as- 
pects of  Individual  privacy  to  be  con- 
stitutionally protected.  In  recognizing 
that  "specific  guarantees  in  the  Bill  of 
Rights  have  pe'-umbras  formed  by 
emanations  from  those  guarantees  that 
help  give  them  life  and  substance" 
(Griswold  v.  Connecticut.  381  U.S.  479. 
484)  the  Court  has  found  that  those 
penumbras  protect  the  right  to  give  and 
receive  information,  the  right  to  family 
life  8Uid  child-rearing  according  to  one's 
conscience,  the  right  to  marriage,  the 
right  to  procreation,  the  right  to  con- 
traception, and  the  right  to  abortion. 

All  Americans  can  testify  to  the  power 
of  those  protections  of  the  individual's 
rights.  The  Constitution  assures  these 
.  rights  to  all  citizens  whether  their  exer- 
cise is  pleasing  to  Government  or  not. 
And  by  the  same  token.  It  assures  the 
individual  the  converse  of  these  rights: 
the  right  not  to  speak  what  he  believes, 
whether  his  silence  Is  pleasing  to  Oov- 
emment  or  not:  and  his  right  not  to  act. 
not  to  associate,  not  to  assemble, 
whether  his  Inaction  Is  pleasing  to  Gov- 
ernment or  not. 

During  the  study  of  privacy  which  the 
Constitutional  Rights  Subcommittee  has 
been  conducUng.  we  found  that  the  num- 
ber and  kinds  of  privacy  invasions  are 
limited  only  by  the  ingenuity  of  human 
beings  and  by  their  technical  capacity 
for  committing  them.  It  is  sometimes 
hard  to  And  rhyme  or  reason  to  some  ac- 
Uons.  This  Is  why  the  subject  of  privacy 
is  a  very  difHcult  field  in  which  to  draft 
legislation  to  protect  individual  rights. 

If  I  were  forced  to  find  one  comman 
denominator  for  all  of  these  techniques 
and  practices.  I  would  say  it  is  the  effect 
they  have  on  the  individual's  free  exer- 
cise of  his  mind  and  his  freedom  to  seek 
his  own  destiny. 

Probably  no  instrument  In  modem 
time  so  lends  itself  to  threats  to  constitu- 
tional guarantees  of  individual  freedom 
as  the  polygraph  or  so-called  lie  detector. 
The  threat  of  its  use  or  the  intimidation 
inherent  in  its  use  restricts  free  expres- 
sion and  communication  of  Ideas:  in- 
trudes on  an  individual's  subconscious 
thought:  makes  him  fear  to  speak  his 
thoughts  freely:  or  compels  him  to  speak 
against  his  wUl. 

To  my  mind  the  entire  purpose  of 
these  machines  is  to  invade  a  man's 
mind  and  find  what  lurks  in  the  inner- 
most part  of  his  mental  consciousness 
for  reasons  which  have  nothing  to  do 
with  his  ability  to  perform  a  job.  If  the 
right  of  privacy  means  anything  at  all. 
and  If  It  Is  a  right  to  be  cheri.shed  In  our 
society.  It  means  "lat  people  should  be 


December  20,  1973 


entitled  to  have  thoughts,  hopes,  desires, 
and  dreams  that  are  beyond  the  reach  of 
a  bureaucrat,  an  employer,  or  an  elec- 
tronic technician  This  Is  something 
which  enthusiasts  for  these  machines  do 
not  seem  to  understand.  They  do  not 
understand  and  they  do  not  appreciate 
how  Important  privacy  is  to  each  Amer- 
ican and  8LS  long  as  that  lesson  is  not 
understood,  we  all  will  find  our  right  to 
privacy  constricted,  if  not  abrogated 
entirely. 

I  propose  this  legislation  to  ban  the 
use  of  the  polygraph  for  employment 
purposes  in  the  hopes  that  Congress  will 
pause  for  a  moment,  step  back,  and  take 
a  long  look  at  the  issues  involved  in  the 
unrestrained  use  of  the  polygraph.  Leg- 
islation Is  necessary  to  bring  some  order 
and  control  to  the  practice. 

Just  what  Is  a  polygraph?  Contrary  to 
popular  belief.  It  Is  not  a  "lie  detector." 
Bells  do  not  ring  and  lights  do  not  flash 
automatically  when  a  person  lies  or  tries 
to  deceive.  A  polygraph  is  a  machine 
which  records  one's  physical  response 
sigainst  the  statements  he  makes.  A 
pneumatic  tube  is  placed  around  the  sub- 
ject's chest,  a  blood  pressure  cuff  arotmd 
his  upper  arm  and  sensors  are  attached 
to  his  palm  or  finger  tips.  The  recording 
units  track  the  subject's  blood  pressure 
and  pulsations,  his  breathing  patterns, 
and  his  galvanic  skin  responses  on  a  con- 
tinuous graph.  The  galvanic  skin  response 
or  GSR  L«  the  amount  of  electric  resist- 
ance in  the  skin  which  Is  affected  by  the 
subjects  sweat  gland  activity. 

The  premise  behind  the  use  of  the  poly- 
graph Is  the  assimiption  that  lying  leads 
to  conflict;  conflict  causes  tension:  this 
tension  can  be  accurately  recorded  and 
measured  by  the  polygraph:  and  the  op- 
erator by  studying  these  reactions  can 
tell  whether  the  subject  Is  being  decep- 
tive or  truthful.  However,  no  regular 
relationship  between  lying  and  physical 
responses  has  yet  been  established. 

What  Is  recorded,  therefore.  Is  not  the 
subject's  veracity,  but  his  physiological 
responses  to  the  examiner's  questions. 
The  graphs  recorded  by  the  "lie  de- 
tector" ire  worthless  unless  'interpreted" 
by  the  examiner 

In  interpreting  the  results,  the  exam- 
iner makes  personal  judgment  as  to  what 
may  have  produced  a  tension  response. 
A  tension  response  can  be  induced  by 
fear,  anxiety,  love,  hate,  hostility,  frus- 
tration, conflict,  or  physical  discomfort 
as  well  as  by  guilt.  A  negative  reaction 
can  be  caused  by  resentment  at  the  Im- 
pertinent questions  being  asked,  but  we 
must  rely  on  the  training  of  the  examiner 
to  decide  whether  the  response  indicates 
a  lie.  Furthermore,  differences  in  hered- 
ity, environment  and  background  will  in- 
fluence an  individual's  mental,  emotional 
and  motor  behavior,  further  obscuring 
the  reason  for  a  tension  reaction,  or  lack 
of  reaction,  during  a  polygraph  examina- 
tion. 

Thus,  the  interpretation  process  is  not 
the  mechanical  function  which  some 
would  have  us  believe  The  examiner  In- 
terprets the  recorded  tension  reactions 
based  upon  his  subjective  judgment  con- 
cerning the  subject's  motivation,  honesty, 
and  reliability  Since  another  examiner 
can  and  freqi^ently  does  reach  an  oppo- 
site conclusion  after  reviewing  the  same 


graph,  this  form  of  truth  verlflcatlon 
can  hsmlly  be  called  an  exact  science.  In 
fact,  I  have  likened  It  to  20th  century 
witchcraft  and  I  have  seen  no  documen- 
tation to  alter  my  view. 

There  are  too  many  variables  involved 
In  polygraphy.  There  are  too  many  sub- 
jective Judgments  required  In  polygraphy. 
Bear  in  mind  that  It  is  not  the  machine 
or  some  demonstrated  scientific  fact 
which  determines  that  the  subject  is  be- 
ing decepUve  It  Ls  solely  the  examiner's 
interpretation  of  the  readings.  As  such, 
the  polygraph  examination  Is  quite  dif- 
ferent from  the  types  of  comparisons  in- 
volved in  fingerprint  identifications,  bal- 
listic tests,  or  even  blood-alcohol  tests. 
The  late  J,  Edgar  Hoover  rejected  the 
Idea  that  the  polygraph  was  a  'lie  detec- 
tor" and  declared  that — 

Ninety  percent  of  the  polygraphs  useful- 
ness depends  on  the  careful  evaluation  of 
the  results  by  experienced  examiners. 

And  even  then  certain  categories  can 
fool  the  most  experienced  operators:  the 
brazen  liar  or  hardened  criminal;  the 
dull-witted  or  ''supercool ":  or  a  person 
with  no  cultiiral  belief  about  right  or 
wrong.  At  the  same  time,  an  Innocent, 
honest.  Introspective,  sensitive  person 
might  register  "deceptive"  reactions  be- 
cause he  Is  nervous  or  hostUe  to  the  test. 
Nevertheless,  proponents  of  the  poly- 
graph have  made  extravagant  claims  as 
to  Its  value  as  a  test  of  deception  In  rou- 
tine uses.  Attempts  at  proving  the  relia- 
bility of  the  polygraph  as  a  lie  detector 
have  not  sustained  the  virtual  Infallibil- 
ity claims  by  its  proponents 

First  of  all.  Independent  tests  to  verify 
polygraph  determinations  are  susceptible 
to  the  same  criticism  as  the  polygraph 
test  Itself.  Such  verification  generally 
consists  of  having  a  group  of  polygraph 
examiners  Independently  review  selected 
cases  to  determine  If  the  examining  oper- 
ator was  correct  in  his  judgment. 
Whether  running  the  actual  polygraph 
test  or  reviewing  test  results,  each  opera- 
tor brings  with  him  his  own  set  of  vtilues, 
Interpretation  and  methods  of  arriving 
at  his  conclusions.  Therefore,  any  such 
study  more  accurately  measures  the 
extent  of  agreement  or  consistency 
among  examiners  and  not  whether  the 
judgments  are  correct.  Unfortunately  It 
is  possible  to  be  both  consistent  and 
wrong. 

Despite  this  criticism,  the  accuracy 
rates  established  during  Independent  ver- 
lflcatlon studies  do  not  sustain  the  use 
of  the  polygraph  as  a  lie  detector.  In  1965 
the  Department  of  Defense  established  a 
joint  services  group  on  a  coordinated 
R.  L  D.  program  of  lie  detection  research 
to  study  the  reliability  of  the  poly- 
graph chart  as  the  sole  basis  for  judging 
deception.  Their  preliminary  findings  re- 
leased on  August  28,  1968,  indicated  a 
"reliability"  rate  between  30  and  93  per- 
cent depending  upon  the  type  of  poly- 
graph examination  reviewed.  It  Is  inter- 
esting to  note  that  during  this  same  pe- 
riod of  time  the  number  of  polygraph  ex- 
aminations given  by  the  Defense  Depart- 
ment in  criminal  cases  dropped  from 
5.626  in  1965  to  1,445  in  1967. 

However,  even  a  99-percent  accuracy 
fijrure  Is  of  little  comfort  to  an  individ- 
ual falsely  accused  as  a  result  of  "falling" 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SExNATE 


42679 


a  polygraph  test.  I  received  a  letter  from 
an  attorney  in  Seattle  who  described  the 
ur.reliabilUi  of  polygraph.s  in  lernLs  of  his 
own  personal  ex'^x-nence 

I  a.sk  unanimous  con.sent  u>  have  his 

letter  printed  at  this  point  m  the  Record. 

There  being  no  objection,  the  letter 

was  ordered  to  t)e  printed  in  the  Record. 

ha  follows; 

Skattlx,  Wash., 
January  29,  1973. 
Eon.  Sam  J.  Ebvin. 

US.  Senate  Old  Senate  Office  Building, 
Wathington.  D  C 

Dsiji  SxNATOB  Eevi.v:  I  happened  to  read 
In  the  Janiukry  13  Issue  of  Business  Week 
an  article  r«ganllng  pre-employment  screen- 
ing wltii  polygraphs,  and  I  noted  that  you 
ar«  sponsoring  a  BUI  to  severely  limit  or  pro- 
hibit the  use  of  that  device  for  screening  Job 
applicants.  I  would  first  lUce  to  applaud  your 
efforts  and  Indicate  my  strong  support  for 
the  BUI,  and  secondly,  relate  to  you  an  ex- 
perience I  recently  had  which  wUl  perhaps 
explain  my  attitude. 

F*lrst,  I  am  an  attorney  practicing  here  in 
Seattle.  Washington.  A  large  part  of  my  pr&c- 
tlc«  consists  of  representing  people  accused 
of  crimes.  In  AprU  of  1972,  I  was  represent- 
ing a  young  woman  Incarcerated  In  the  City 
JaU  and  charged  with  a  felony.  On  April  16, 
her  husband  came  Into  my  ofHce  and  asked 
If  I  might  be  going  over  to  see  his  wife  that 
afternoon.  I  Indicated  I  hoped  to.  and  he 
asked  me  if  I  would  drop  off  some  cigarettes 
for  his  wife.  He  toesed  two  sealed  packages 
of  cigarette*  on  my  desk  when  I  Indicated 
I  would  do  so.  We  talked  for  awhile  about  his 
wife's  caee  and  he  opened  one  of  the  packs 
of  cigarettes  and  smoked  several  cigarettes 
from  It.  Then  he  left. 

After  a  bit,  my  partner  came  down  to  the 
ofBce  (it  was  Saturday)  and  asked  what  I 
was  working  on  We  chatted  briefly  and  he 
mentioned  he  was  going  over  to  the  City 
Jail  later  that  afternoon.  I  asked  him  to 
check  with  me  before  he  went  as  I  might 
be  going  over  also  and  we  could  walk  over 
together. 

During  the  course  of  the  afternoon.  I 
smoked  two  or  three  cigarettes  from  the  open 
pack  that  my  client's  husband  had  brought 
In.  The  other  pack  remained  on  my  desk, 
sealed.  Later,  my  partner  c&me  back  into  my 
office  and  asked  tf  I  was  ready  to  go  to  the 
Jail.  I  told  him  I  stUl  had  work  to  do  and 
asked  if  he  would  drop  the  sealed  pack  of 
cigarettes  off  at  the  Jail  for  my  client.  He 
said  he  would  leave  them  with  the  matron 
for  the  woman,  and  I  said  that  would  be  fine. 
Re  left  them  with  the  matron,  and  during 
a  routine  check  of  the  package  of  cigarettes, 
the  matron  dlacovered  there  was  a  small  bal- 
loon of  heroin  Inside. 

When  my  partner  and  I  learned  of  this,  we 
cooperated  with  the  police  detectives  in  ev- 
ery way  we  could,  explaining  exactly  what 
had  happened,  and  Indicating  the  name  and 
Identity  of  the  person  who  brought  the  ciga- 
rettes Into  OUT  oflSce.  Then  the  Prosecuting 
Attorney  told  us  he  would  have  to  ask  us  to 
take  a  lie-detector  test  and  would  have  to 
ask  us  to  stipulate  that  it  could  be  used 
against  us  If  we  faUed  it.  We  agreed,  re- 
questing only  that  he  stipulate  that  If  we 
passed  the  polygraph,  there  would  be  no 
charges  filed.  This  he  said  he  couldn't  do. 
My  partner  and  I  agreed  to  their  conditions 
and  he  took  the  test  that  evening.  I  was 
scheduled  to  take  It  the  next  day. 

While  my  law  partner  was  tajtlng  the  test. 
I  became  somewhat  angry  that  they  had  re- 
quired him  to  go  through  this,  especially 
considering  that  he  had  practiced  In  this 
community  for  better  than  20  years  and  his 
reputation  for  Integrity  and  honesty  was  un- 
Impeached.  The  next  day  I  told  the  Prosecu- 
tor that  I  would  be  more  than  happy  to  take 
their  polygraph  test  and  would  stipulate  that 
It  be  used  against  me  If  I  failed  It.  but  that 


they  were  going  to  have  to  stipulate  that  IX 
I  passed  it  there  would  to  no  charges  filed. 
Again,  they  said  they  could  not  do  that.  I 
indiotad  to  them  that  I  knew  they  could  do 
that  becauM  they  iiad  done  that  before  with 
clients  of  niine,  some  of  whom  had  long  crim- 
inal records,  and  I  thought  that  it  was  only 
fair  that  we  be  treats  at  least  as  well  as 
they  were  wUllng  to  treat  cr.mi.ials  with  long 
rbcords.  They  told  me  they  couldn't  do  it, 
and  I  refused  u   take  their  test 

Later  that  day  they  offered  me  a  non- 
stipulated  test,  p<jl:.t;n^-  out  that  If  I  failed 
It,  It  couldn't  hurt  nie  or  be  used  against 
m«,  and  if  I  pa.ssed  it,  they  made  no  promises 
that  they  wouldn't  still  file  charges.  I  re- 
fused the  non-stipulated  'v^wit,  and  again 
told  them  the  only  kliid  of  p<j;ygraph  I  would 
take  was  oi.e  where  ;t  wae  stipuiated  that  if 
I  failed  It.  It  could  be  used  against  me  and 
If  I  passed  it.  there  would  be  no  charges 
filed.  Finally  they  agreed  I  took  the  test,  aiid 
the  j>olygraph  operator  failed  me  TTie  fol- 
lowing day  I  was  charged  with  attempting 
to  smuggle  heroin   Into  the  City  JaU 

It  was  at  that  point  that  I  finally  realized 
that  the  man  who  represents  himself  has  a 
fool  for  a  client,  so  I  hired  an  atuirney.  He 
ct)talned  the  Prosecutor's  agreement  to  re- 
t«6t  me.  given  the  (rreat  disparity  between 
the  facts  ajid  the  polygraph,  on  th*  single 
condition  that  they  pick  the  operator  to  be 
used  and  that  I  stipulate  that  the  exam 
could  be  Introd-uced  against  me.  They  chose 
a  man  In  New  York  City,  whom  I  paid  a 
rather  substantial  sum  of  money  to  fly  to 
Seattle  and  give  me  the  second  test.  He  did, 
and,  like  the  first  polygraph  operator,  failed 
me. 

It  is  extremely  dlfBciUt  to  explain  to  any- 
one the  mental  conflict  that  goes  on  inside 
a  person's  mind  when  he  Is  told  by  a  ma- 
chine that  he  lied  when  he  knows  he  was 
telling  the  absolute  truth.  The  conflict  be- 
comes even  clearer  when  a  second  polygj^ph 
man,  presumably  one  of  the  best  In  the  na- 
tion, tell^him  the  same  thing,  I  was  fortu- 
nate In  tnat  the  objective  facta  were  highly 
inconsistent  ■with  the  opinion  of  the  poly- 
graph operators. 

You  would  understand  that  if  an  attorney 
wished  to  smuggle  contraband  to  a  client  In 
the  City  Jail,  a  very  simple  and  absolutely 
fool-proof  method  exists:  all  he  has  to  do  Is 
to  go  to  the  Jail  and  ask  to  see  his  client  to 
confer,  and  his  client  is  brought  to  a  small 
Interview  room  where  he  can  speak  ■with  his 
client  In  absolute  privacy  ■with  no  bars  or 
other  impediments  separating  them  Any 
small  Item  of  contraband  can  be  nassed  to 
the  client  In  absolute  safety  as  the  clients 
are  never  searched  by  the  Jail  personnel  on 
the  way  back  to  their  cell.  Therefore,  If  an 
attorney  wished  to  smuggle  a  balloon  filled 
with  heroin  to  a  client,  a  slmnle  and  secure 
method  for  so  doing  exists.  On  the  other 
hand,  it  Is  standard  procedure  to  screen  every 
Item  of  clothing,  food,  cigarettes,  etc.  that 
they  receive  for  JaU  Inmates  and  so  an  at- 
torney who  gave  cigarettes  to  a  Jail  matron 
for  a  Jail  Inmate,  kno'wlng  there  to  be  con- 
traband Inside  the  cigarettes,  would  know 
the  chances  of  him  being  discovered  and 
prosecuted  were  extremely  high. 

T  asked  my  law  partner  to  take  the  ciga- 
rettes to  the  Jail,  knowing  full  well  that  he 
was  going  to  deliver  them  to  the  matron. 
Therefore.  If  I  had  known  there  was  contra- 
band In  the  cigarettes.  I  would  have  known 
that  I  was  going  to  be  discovered  and  proe- 
eoTited.  Thus,  you  can  see  the  absurd  conflict 
between  the  objective  facts  as  to  how  the 
cigarettes  were  delivered  and  what  the  polv- 
graph  operators  said  I  knew  at  the  time  the 
cigarettes  left  mv  ofBce.  Thev  said  that  I 
knew  there  was  heroin  in  the  cigarette  pack. 

To  shorten  this  story  somewhat,  after  slx- 
and-one-half  months  of  waiting,  my  case  was 
brought  to  trial  and  was  tried  for  six  days 
to  a  packed  cotirtrocwi.  The  Prosecutor  was 
allowed  by  the  Court  to  Introduce  every  shred 


of  evidence  that  they  could  muster.  I  and 
my  attorney  had  researched  the  polygraph 
and  its  c^ratlon  and  history  with  extreme 
thoroughness  during  the  months  Interven- 
ing my  being  charged  and  the  trial  and  were 
able  to  cross-examine  the  polygraph  c>;x-ra- 
tors,  one  of  whom  you  should  retaenit)er  is 
one  of  this  country's  most  highly  aoclaJjiied 
operators,  witi:  such  thoroughness  that  the 
Inconsistencies  and  absurdltlee  In  the  the- 
ories supporting  the  polygraph  became  crys- 
tal clear  to  everyone.  These  absurdities  and 
Inconsistencies  were  highl'.^hte<l  by  our  own 
case,  which  consisted  of  the  objective  facts 
surrounding  the  incident  and  an  expert  wit- 
ness from  the  University  of  Washington  I>e- 
partment  of  Physlopeychology,  Dr.  Ha-'»s 
Doerr. 

Dr  Doerr  Is  a  professor  In  the  tjniversity 
of  "Washlrigton  School  of  Medicine  and  Is  di- 
rector of  the  school's  Phy Biopsy chology  Lab- 
oratory. Physlopsychology,  as  you  know,  is 
the  medlcai  discipline  tliat  studies  tlie  rela- 
tionship between  psychology  and  physiology. 
In  his  research,  Dr  Doerr  -oaes  sixteen  ex- 
tremely sophisticated  polygraphs  to  meas- 
ure physiological  changes  which  occur  in 
conjunction  with  ptsychological  changes.  Even 
with  all  of  these  p>olygraphs  hooked  up  to- 
gether and  working  on  one  Individual,  and 
assisted  by  amplifiers,  filters,  and  computers 
to  analyze  results.  Dr.  Etoerr  testified  that 
only  a  fool  would  say  he  could  determine 
whether  or  not  a  person  was  telling  the  taruth 
or  not. 

After  hearing  all  the  evidence,  the  Judge 
■wasted  little  time  In  convicting  my  co-de- 
fendant, the  individual  who  had  brought  the 
cigarettes  Into  my  ofBce,  and  acquitting  me, 
Indicating  that  there  was  not  the  slightest 
shred  of  evidence  against  me,  including 
the  polygraph.  Since  that  time,  the  Prosecu- 
tor's office  has  indicated  to  me  that  their 
confidence  In  the  polygraph  was  so  shaken 
by  our  defense  In  my  case,  that  they  have 
decided  not  to  take  polygraphs  Into  con- 
sideration In  deciding  whether  to  file  charges 
or  not  In  the  future;  thus.  It  appears  that  m 
the  future,  others  will  not  have  to  suffer  as 
I  did  because  of  the  pseudosclentlfic  hocus 
pocuB  of  the  polygraph  hucksters. 

Another  positive  effect  that  my  trial  had 
was  to  educate  people  In  this  area  In  a 
rather  classic  confrontation  between  objec- 
tive facts  and  the  polyg^ph,  that  the  poly- 
graph is  Indeed  fallible  and  can  do  a  great 
deal  of  damage. 

I  might  mention  that  Dr.  Doerr  has  be- 
come so  interested  In  the  use  of  the  poly- 
graph as  a  lie-detector,  that  he  proposes  to 
call  a  symposiima  of  physlopsychologlsts  from 
around  the  country  In  the  near  future  to  ad- 
dress themselves  to  Just  this  question.  I 
mention  this  because  the  product  of  this 
sympKDsium  might  be  of  some  tise  to  you  in 
gaining  support  for  your  Bill. 

I  apologize  for  taking  so  much  of  your  time, 
but  would  again  like  to  Indicate  my  support 
and  offer  my  assistance.  If  I  can  be  of  help  to 
you  in  any  way  whatsoever,  please  do  not 
hesitate  to  let  me  know.  Anything  I  can  do 
to  prevent  or  minimize  the  damage  and 
heartache  the  polygraph  might  cause  to 
others.  I  will  do.  Thank  you  for  your  time. 
Sincerely  yours. 

RocEB  W.  Johnson. 

Mr.  ERVIN.  Mr.  President,  quite  apart 
from  the  unreliability  of  the  polygraph 
are  the  questions  of  necessity  in  employ- 
ment situations,  due  process  rights,  and 
basic  fair  play.  Industrial  use  of  the 
polygraph  both  for  preemplojTnent 
screening  and  for  on-going  surveillance 
of  its  work  force  has  become  more  wide- 
spread. A  report  by  the  Maritime  Trades 
published  in  1^  indicates  that: 

Industrial  firms  which  use  the  polygraph 
run  the  gamut  of  Aiaerlca's  economy. 

Many  use  po'  ygr&piis  In  an  attempt  to  halt 


42680 


CONGRESSIONAL  RECORD  —  SEN  ATE 


the  theft  of  such  sUte  and  federally  regu- 
lated   products    Ma    narcotics    and    alcohol 

hence,  drug  and  liquor  manufacturers,  hoe- 
pltals  and  even  doctors'  offices,  are  frequent 
clients  for  polygraph  agencies 

Businesses  such  as  electronic  and  chemical 
companies,  which  produce  expensive  products 
and  which  are  concerned  about  possible  theft 
of  material  or  Industrial  espionage,  fre- 
quenUy  employ  lie  detector"  Orms  or  main- 
tain their  own  staff  of  examiners. 

Banks  and  investment  Arms,  whose  em- 
ployees customarily  handle  large  sums  of 
money,  have  been  among  the  more  active 
users  of  polygraphs.  So  have  mall  order 
houses,  discount  shops,  clothing  and  shoe 
stores,  a  leading  restaurant  chain,  tobacco 
stores  and  supermarkets. 

Use  of  polygraphs  on  a  regular  basis  has 
been  found  among  delivery  companies  and 
freight  movers— where  pilferage  has  been  a 
common  complaint  for  years.  But  the  devices 
are  found,  as  well,  among  copper  refiners, 
steel  producers,  rubber  manufacturers,  food 
and  oU  processors  and  meat  packers. 

The  American  Polygraph  Association 
estimates  that  one-fourth  of  all  major 
corporaUons  now  use  the  polygraph  with 
between  200.000  and  300.000  tests  admin- 
istered last  year  In  the  United  States 
alone. 

However,  it  remains  to  be  shown  that 
the  use  of  polygraph  tests  actually 
"screens  out  potential  thieves'  or  "keeps 
workers  honest."  The  main  value  of  the 
polygraph  apparently  Ls  the  psycholog- 
ical pressures  it  brings  to  bear  upon  an 
employee  or  appUcant.  Whether  the  ma- 
chine actually  works  is  Irrelevant  to 
whether  the  subject  believes  it  works. 
That  Is  why  proponents  of  the  polygraph 
are  intent  on  preserving  Its  image. 

What  is  a  prospective  employee  to  do 
when  confronted  by  a  polygraph  exam- 
mation.  If  an  employee  refuses  to  submit 
to  the  test  then  he  Is  automatically  sus- 
pected of  "hiding"  something.  If  he  sub- 
mits he  is  faced  »1th  the  burden  of 
proving  his  "honesty"  to  the  satisfaction 
of  the  examiner.  What  has  happened  to 
our  cherished  presumption  of  innocence' 
For  example,  in  a  pubhshed  decision 
of  the  NLRB  in  the  Lone  Star  Co  and 
General    Drivers.    Warehousemen,    and 

Helpers  Local  Union  No    968  case No. 

23-CA-1563.  November  13.  1964 — the  fol- 
lowing polygraph  report  was  the  basis 
for  flrin^  an  employee. 

Subject  Oalles  has  many,  manv  gripes. 
Stated  that  his  pay  was  too  low.  that  he  had 
to  do  too  much  work.  Sutes  that  he  does  not 
know  Just  how  much  he  Is  making  per  hour 
States  that  he  does  not  like  the  Idea  of 
having  to  leave  hU  COD  payments  In  a  box 
to  be  counted  by  someone  else  the  next  day 
because  he  U  being  shorted.  Stated  that 
every  pay  day  there  Is  some  taken  out  of  hU 
check  because  of  errors  in  CX)D  payments 
States  that  the  only  way  the  company  has 
been  good  to  him  U  that  when  he  had  an 
emergency  they  loaned  him  some  money 
This  person  seemed  very  unhappy  with  the 
company  This  person  has  taken  the  teat 
about  5  or  6  times.  He  does  not  show  much 
response  to  the  relevant  questions  There 
could  be  reasons  for  this  (i)  he  Is  com- 
pletely Innocent  and  therefore  Is  uncon- 
cerned; (2)  he  has  taken  the  test  so  many 
times  that  It  does  not  bother  him  to  lie 
which  could  be  the  reason:  <3)  he  la  the  type 
of  person  who.  becaxjee  of  his  environment, 
has  learned  or  been  taught  that  stealing  wa« 
not  wrong  and  that  everything  that  a  per- 
son can  get  and  get  away  with  Is  theirs. 
There  (slc)  it  la  poeslble  that  a  combination 
of  thlng«.  hla  lack  of  concern  for  the  test. 


December  20,  1973 


and  hla  guUtleae  feelings  over  steaUng.  Could 
be  the  reason  for  his  lack  of  concern.  Con- 
slder  him  a  security  risk. 

Obviously  the  polygraph  examiner  re- 
jected out  of  hand  the  possibility  that 
Qailes  was  "completely  Innocent:  of 
stealing  from  the  company  despite  the 
lack  of  any  evidence  to  the  contrary.  In 
assessing  the  conclusions  of  the  poly- 
graph report,  the  trial  examiner  said: 

Of  course  the  moet  striking  thing  about 
thU  report  is  the  admission  that  OaUea 
might  be  "completely  innocent"  of  any 
wrongdoing.  But  If  he  was  not  Innocent, 
what  had  he  done?  The  report  does  not  say 
and  It  does  not  even  speculate  on  what  OaUes 
•might  possibly"  have  done.  There  is  no 
evidence,  however,  that  Lone  Star  Inquired 
of  Truth  VerlflcaUon  which  explanation — in- 
noc«nt  or  guilty — seemed  more  probable  or 
that  It  asked  what  Oalles  had  done  if  the 
"completely  Uinocent"  explanation  appeared 
the  leas  likely  of  the  two.  Instead.  Lone  Star 
automatically  accepted  the  concluding  sen- 
tence "Consider  him  a  security  risk." 

But  the  most  disturbing  statement  In  the 
OaUes'  report  Is  that  his  faUure  to  show 
"much  response"  to  Incriminating  (relevant) 
quesUons  may  indicate  "gxuit"  for  In  other 
reports' too  much  response  Is  said  to  Indicate 
guilt.  In  short,  it  would  seem  that  employees 
were  termed  security  risks  equally  for  giv- 
ing too  little  response  or  too  much  response 
to  relevant  questions. 

Fortunately  for  Gailes — and  nine  other 
individuals  who  also  "failed"  their  poly- 
graph tests  and  were  discharged— the 
trial  examiner  ordered  the  company  to 
offer  them  "Immediate  and  full  rein- 
statement to  their  former  or  substan- 
tially equivalent  posiUons  without  preju- 
dice to  their  seniority  of  other  rights  and 
privUeges  •  and  full  back  pay. 

However,  a  woman  in  Idaho  was  not 
as  fortunate  In  her  experience  with  a 
polygraph  examination.  She  was  fired 
from  her  job  for  refusing  to  submit  to  the 
test.  Since  then,  in  addition  to  being  un- 
able to  find  another  job.  she  has  also 
been  denied  unemployment  Insurance 
benefits  because  the  State  department  of 
employment  considers  her  refusal  to 
take  the  test  "Insubordination"  and 
"noncompliance"  with  company  policy. 
In  appealing  the  ruling  denying  her  un- 
emplo\-ment  benefits  on  the  basis  of  her 
"misconduct"— refusing  to  submit  to  the 
polygraph  test — wrote: 

When  I  agreed  to  work  at  the  store.  I  was 
faced  with  the  choice  of  starvation  or  sub- 
mission to  the  polygraph  examination.  I 
much  prefer  to  work  liitead  of  being  sup- 
ported by  the  government.  However.  I  refxise 
to  be  taken  advantage  of.  When  I  began  to 
work,  I  did  not  know  the  polygraph  exam- 
ination Included  questions  personal  and  In 
many  instances  unrelated  to  employment. 
The  test  Including  giving  the  examiner  an 
Itemized  lUt  of  my  bills  and  expenses  per 
month.  It  also  Included  questioning  work 
habits  and  ethics  of  other  employees — a  prac- 
tice I  consider  highly  unethical.  There  were 
also  questions  of  a  legal  nature— have  you 
ever  written  a  l»d  check?  Do  you  use  mari- 
juana or  narcotics?  Have  you  ever  driven 
while  drunk' 

Of  course.  I  was  recommended  for  employ- 
ment at  the  concluslcn  cf  the  test;  but  hav- 
ing experienced  a  polygraph  examination.  I 
decided  that  starvation  is  better  than  sub- 
nuttlng.tj)  personal  probes  of  circumstances 
unrelated  to  employment  I  feel  It  was  de- 
moralizing and  a  definite  Infringement  of  my 
rlghu.  I  believe  an  employee  should  not  be 
coerced  Into  giving  personal  Information  to 


an  employer  for  the  sake  of  being  able  to 
work  for  htm. 

Aft«r  learning  what  the  polygraph  exam- 
laaUon  Involved.  I  would  have  been  exceed- 
ingly stupid  to  consent  to  another  examina- 
tion of  thla  sort— especially  under  an  im- 
plied accusation  oonoeming  a  abortage  of 
money  In  the  store. 

You  determined  that  my  unemployment 
is  due  to  "having  been  discharged  for  miscon- 
duct In  connection  with  the  employment." 
Misconduct  U  defined  In  Webster's  Diction- 
ary as  "Improper  or  illegal  conduct."  I  really 
can't  understand  how  my  refusal  to  pub- 
Uclze  personal  Information  can  be  construed 
as  "Improper  conduct."  I  would  think  Instead 
that  being  asked  to  reveal  this  information 
Is  "Improper  conduct." 

I  am  angered  that  retaining  a  Job  requires 
the  sacrifice  of  principles  and  a  willingness 
to  reveal  personal  informaUon.  It  it  especial- 
ly disappointing  that  my  employer  should 
state  that  I  was  "an  honest  and  dependable 
employee"  and  say  that  he  found  that  I  went 
out  of  my  way  to  do  a  very  good  job  In  the 
store — and  yet  fire  me. 

The  statement  to  which  she  referred 
was  a  recommendation  given  her  by  her 
immediate  supervisor.  He  wrote: 

She  was  released  for  refusing  to  take  a 
polygraph  examination.  The  examination  Is  a 
company  policy  and  If  a  person  refuses  to 
take  It  then  (the  Company]  will  no  longer 
let  them  continue  employment. 

(The  woman)  refused  the  exam  because  of 
personal  principles  and  not  because  of  dis- 
honesty. 

It  Is  my  personal  opinion  that  (the  wom- 
an] was  an  honest  and  dependable  employee. 

Mr.  President,  in  my  opinion,  a  law- 
abiding  person  seeking  a  job  should  not 
be  coerced  by  means  of  a  lie  detector  to 
reveal  personal  Information  against  his 
will.  I  am  not  questioning  the  right  of 
an  employer  to  hire  whomever  he  feels 
would  be  the  best  candidate  for  a  posi- 
tion or  to  dismiss  an  employee  for  cause. 
However,  traditional  employment  screen- 
ing procedures  provide  companies  with 
ample  access  to  sources  of  information 
on  Individuals  without  sacrificing  the 
constitutional  rights  of  all  employees  or 
applicants  because  of  the  transgressions 
of  a  few. 

If  an  individual  chooses  not  to  respcxid 
to  reasonable  questions  in  a  traditional 
employment  interview  and  to  provide 
proper  Information  to  facilitate  inquiries 
about  himself,  then,  of  course,  he  should 
not  be  hired.  Business  must  be  able  to 
protect  itself.  Yet,  in  ttiis.  as  in  other 
areas,  expediency  must  not  be  permitted 
to  negate  the  liberties  of  all  Americans. 
Our  rights  should  never  be  measured  on 
a  dollar-£ind-cents  basis. 

Recently  I  received  a  sampling  of  poly- 
graph reports  from  the  President  of  a 
large  midwestem  company  which  were 
intended  to  demonstrate  how  valuable 
the  tests  are  In  effective  employee  screen- 
ing programs.  In  describing  the  results 
of  the  polygraph  examinations  he  wrote : 

In  practically  every  one  of  these  cases  the 
man  Involved  was,  from  appearances,  most 
acceptable,  and  It  was  only  after  a  revelation 
of  hU  past  history  that  we  could  make  a 
valid  decision  about  his  poaslbUlttes  as  an 
employee. 

Tou  will  notice  that  in  all  of  these  In- 
stances our  decision  was  made  on  the  evi- 
dence that  the  man  himself  gave.  We  did  not 
condemn  anyone  because  the  machine  or  the 
examiner  passed  an  opinion.  The  evidences 
here  are  based  upon  the  statements  made  by 
the  people  being  tested. 


December  20,  1973 


CONGRESSION.AL  RECORD  —  SENATE 


42681 


While  these  reports  were  sent  to  sup- 
port the  position  that  the  polygraph  was 
essential  in  employment,  I  submit  that 
they  may  in  fact  show  the  opposite.  If 
one  discounts  completely  the  evaluation 
of  the  examiner  as  to  the  subject's  suit- 
ability or  honesty,  or  the  machine  itself, 
the  justification  for  its  use  evaporates. 

Almost  all  of  the  case  histories  I  re- 
ceived contained  Information  pertaining 
to  previous  criminal  activities.  Many  of 
the  subjects  had  been  arrested  and  con- 
victed of  varied  offenses  Including  glue 
sniflang,  driving  while  intoxicated,  sell- 
ing drugs,  rape,  and  armed  robbery. 

Several  of  the  subjects  had  medical 
problems  which  would  have  prevented 
them  from  performing  the  duties  of  the 
position  for  which  they  were  applying. 

Some  had  poor  work  records. 

Several  had  taken  merchandise  or 
money  from  previous  employers. 

A  few  were  regular  users  of  narcotics. 

Since,  In  most  instances  such  informa- 
tion is  readily  revealed  and  verified  by 
traditional  employment  procedures,  the 
polygraph  Is  not  essential  In  ferreting  out 
this  Information. 

Yet.  these  polygraph  reports  also  con- 
tain a  wealth  of  extraneous  information 
unrelated  to  employment  such  as: 

He  was  arrested  once  for  sniffing  glue  at 
the  age  of  13  or  14  and  remanded  to  his 
mother's  custody. 

The  subject  states  that  he  had  received  a 
total  of  fifty  cents  In  tips  whUe  working  for 
(a  Company]. 

Subject  has  approxlmatelv  $158  In  fixed 
monthly  bills  of  which  «93  Is  his  car  pay- 
ment. His  Just  purchased  his  car  last  week 
and  the  first  payment  Is  due  on  10  20/72. 

Subject  was  arrested  In  671.  he  loaned 
his  vehicle  to  an  unlicensed  drive  (slc)  who 
was  involved  In  a  car  accident,  released  on 
bond.  Charges  dropped 

Subject  stated  that  between  the  age  of 
12  and  15,  he  occasionally  shoplifted  maga- 
zines, candy  bars. 

Subject  has  approximately  $268  In  fixed 
monthly  bUls,  all  current.  His  wife  Is  em- 
ployed and  has  a  monthly  Income  of  $450 
gross. 

At  the  age  of  13,  subject  was  kicked  In  the 
genitals  (Involved  In  a  fight)  which  resulted 
In  some  swelling.  Subject  has  never  seen 
a  doctor  for  this  and  states  no  residual  prob- 
lem. 

If  this  information  is  Irrelevant  why 
coUect  It?  Why  report  it?  One  answer 
is  that  Irrelevant  questions  are  required 
in  order  to  establish  reaction  patterns 
for  the  .relevant  questions.  However,  I 
must  admit  that  I  can  see  no  justifica- 
tion for  this  line  of  personal  Inquiry.  It 
Is  scarcely  compatible  with  the  rights  of 
privacy  guaranteed  our  citizens. 

And  finally,  what  uses  will  be  made  of 
a  polygraph  report?  In  this  computer 
age,  every  detail  acquired  from  such  in- 
vestigations about  a  persons  life,  habits, 
attitudes,  and  beliefs  can  be  made  avail- 
able in  seconds.  Therefore,  it  is  more  im- 
portant than  ever  that  the  Individual  be 
assured  that  Information  conveyed  about 
him  be  correct,  current,  and  relevant  to 
the  decisions  being  made  about  him. 

I  was  particularly  disturbed  to  see  that 
a  carbon  copy  of  one  of  the  "confi- 
dential reports  I  received  was  sent  to  a 
private  detective  agency.  Who  else  re- 
ceives the  information  from  polygraph 
reports?  Do  polygraph  companies  pool 
their  information?  If  the  judgment  and 


evaluations  of  the  polygraph  examiner 
is  made  part  of  an  Indiivdual's  personnel 
file,  will  It  then  find  its  way  into  credit 
files  and  the  like? 

These  are  not  idle  concerns.  In  view 
of  the  proliferation  of  the  use  of  the  poly- 
graph, and  other  truth  detection  devices 
such  as  the  Psychological  Stress  Evalua- 
tor  (PSE»  and  'wiggle  seat."  we  should 
all  be  concerned  about  the  use  of  ma- 
chines which  compel  people  to  reveal 
their  innermost  thoughts  about  their 
most  personal  matters  in  order  to  ob- 
tain employment. 

The  legislatures  of  our  land  have  be- 
gun to  express  themselves  against  the 
use  of  such  machines.  To  a  varying  de- 
gree 13  States  prohibit  the  use  of  poly- 
graph tests  in  connection  with  applica- 
tion for  employment  or  as  a  condition  to 
continuation  of  employment.  Of  the  re- 
maining States.  15  required  polygraph 
operators  to  be  licensed. 

In  conclusion,  Mr.  President,  I  would 
add  that  the  purpose  of  the  bill  I  intro- 
duce today  Is  to  protect  the  privacy  and 
first  amendment  rights  of  all  Americans. 
While  the  bill  would  not  affect  law  en- 
forcement or  State  or  local  governments, 
it  would  prohibit  the  compelling  of  Amer- 
icans to  submit  to  polygraphs  in  order 
to  obtain  or  to  hold  a  job  in  the  Federal 
Government  or  in  industries  whose  ac- 
tivities affect  interstate  commerce.  The 
wealth  of  considered  opinion  on  the  un- 
reliability of  he  detectors  and  the  un- 
fairness of  permitting  them  to  be  used  as 
a  test  of  employment  has  persuaded  me 
that  the  time  has  now  come  for  Congress 
to  express  itself  against  their  use. 

I  ask  unanimous  consent  that  the  text 
of  the  bill  be  printed  in  the  Record. 

There  being  no  objection,  the  bill  was 
ordered  to  be  printed  in  the  Record  as 
follows: 

S.  2836 

Be  it  enacted  by  the  Senate  and  House 
of  Representatives  of  the  United  States  of 
America  in  Congress  assembled, 

Section.  1.  It  shall  be  unlawful  for  any 
officer  or  employee  of  any  executive  depart- 
ment or  agency  or  any  Individual  acting 
under  the  authority  of  such  officer  and  em- 
ployee to  do  the  foUowlng : 

(a)  to  require  or  request,  or  to  attempt 
to  require  or  request,  any  officer  or  employee 
of  the  United  States,  or  any  individual  ap- 
plying for  employment  as  an  officer  or  em- 
ployee of  the  United  States,  to  take  any 
polygraph  test  In  connection  with  his  serv- 
ices or  duties  as  such  officer  or  employee, 
or  In  connection  with  such  Individuals  ap- 
plication for  employment; 

(b)  to  deny  employment  to  any  Individual, 
or  to  discharge  discipline,  or  deny  promotion 
to  any  officer  or  employee  of  the  United 
States,  or  to  threaten  to  commit  any  such 
act  by  reason  of  his  refusal  or  failure  to 
submit  to  such  requirement  or  request. 

Sec.  2.  It  shall  be  unlawful  for  any  person 
engaged  In  any  business  or  other  activity 
In  or  affecting  Interstate  commerce,  or  any 
Individual  acting  under  the  authority  of 
such  person  to  do  the  following: 

(a)  to  require  or  request,  or  to  attempt 
to  require  or  request  any  officer  or  employee 
employed  by  such  person  or  any  individual 
applying  for  employment  In  connection  with 
such  business  or  activity  to  take  any  poly- 
graph test  In  connection  with  his  services 
or  duties  or  In  connection  with  his  appli- 
cation for  employment. 

(b)  to  deny  employment  to  any  individual, 
or  to  discharge,  discipline,  or  deny  promo- 
tion to  any  officer  or  employee  employed  in 


connection  with  such  business  or  activity, 
or  to  threaten  to  commit  such  act  by  reason 
of  his  refusal  or  failure  to  submit  to  such 
requirement  or  request. 

Sec.  3.  Whoever  willfully  violates  or  will- 
fully attempts  to  violate  any  of  the  pro- 
visions of  this  Act  shall  be  guilty  of  a  mis- 
demeanor, aind,  upon  conviction,  shaU  be 
punlahed  by  a  fine  not  exceeding  $1,000.  or 
by  Imprisonment  not  exceeding  one  year,  or 
by  both  such  fine  and  Imprisonment. 

Sec.  4.  (a)  Whenever — 

(1)  any  officer  or  employee  of  any  execu- 
tive department  or  any  executive  agency  of 
the  United  States  Oovemment.  or  any  per- 
son acting  or  purporting  to  act  under  his 
authority,  or 

( 2 )  any  c<Hnnilssloned  officer  as  defined  In 
section  101  of  title  10,  United  Sutes  Code, 
or  any  member  of  the  Armed  Forces  acting 
or  purporting  to  act  under  his  authority,  or 

(3)  any  pieraon  engaged  in  any  business  or 
other  activity  In  or  affecting  interstate  com- 
merce, or  any  Individual  acting  tinder  the 
authority  of  such  person. 

violates  or  threatens  to  violate  any  of  the 
provisions  of  section  1  or  2  of  this  Act.  any 
employee  or  officer  of  the  United  States,  or 
any  person  applying  for  emploj-ment  In  the 
executive  branch  of  the  United  States  Gov- 
ernment, or  any  person  seeking  to  establish 
civil  service  status  or  eligibility  for  employ- 
ment in  the  executive  branch  of  the  United 
States  Oovemment,  or  any  Individual  apply- 
ing for  emplo\-ment  In  connection  with  any 
business  or  activity  engaged  In  or  affecting 
interstate  commerce,  or  any  employee  or  of- 
ficer employed  by  a  person  engaged  in  such 
business  or  activity,  who  Is  affected  or  ag- 
grieved by  the  violation  or  threatened  viola- 
tion, may  bring  a  civil  action  in  his  own 
behalf  or  In  behalf  of  himself  tnd  others 
similarly  situated,  against  the  offending  of- 
ficer or  employee  or  person  In  the  United 
States  District  Court  for  the  district  in  which 
the  violation  occurs  or  is  threatened,  or  lor 
the  district  In  which  the  offending  officer  or 
person  is  found,  or  in  the  United  Stales  Dis- 
trict Court  for  the  District  of  Columbia,  to 
prevent  the  threatened  violation  or  to  obtain 
redress  against  the  consequences  of  the  vio- 
lation. 

(b)  Such  United  sutes  district  court  shall 
have  Jurisdiction  to  try  and  determine  such 
civil  action  Irrespective  of  the  actuality  or 
amount  of  pecuniary  Injury  done  or  threat- 
ened, and  without  regard  to  whether  the  ag- 
grieved party  shall  have  exhausted  any  ad- 
ministrative remedies  that  may  be  provided 
by  law,  and  to  Issue  such  restraining  OTder, 
interlocutory  Injunction,  permanent  injunc- 
tion, or  mandatory  injunction,  or  enter  such 
other  Judgment  or  decree  as  may  be  necessary 
or  appropriate  to  prevent  the  threatened  vio- 
lation, or  to  afford  the  plaintiff  and  others 
slmUarly  situated  complete  relief  against  the 
consequences  of  the  violation. 

(c)  With  the  written  consent  of  any  person 
affected  or  aggrieved  by  a  violation  or  threat- 
ened violation  of  section  1  or  2  of  this  Act, 
any  employee  organization  may  bring  such 
action  on  behalf  of  such  person,  or  may  in- 
tervene In  such  action.  For  the  purposes  of 
this  section,  employee  organizations  shaU  be 
construed  to  Include  any  brotherhood,  coun- 
cU,  federation,  organization,  union,  or  profes- 
sional organization  made  up  In  whole  or  In 
part  of  employees  and  which  has  as  one  of 
Its  purposes  dealing  with  dep>artments.  agen- 
cies, commissions.  Independent  agencies  of 
the  United  Sutes.  or  with  businesses  and 
Industries  engaged  In  or  affecting  tntersute 
commerce,  concerning  the  conditions  and 
terms  of  employment  of  such  employees. 


By  Mr.  HART  (for  himself.  Mr. 
Hugh  Scott.  Mr.  Cask,  and  Mr. 
Clark  >  : 
S.  2837.  A  bill  to  regxilate  the  Inter- 
state and  foreign  commerce  trading  of 
futures  contracts  in  order  to  prevent  un- 


42682 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  197S 


fair  and  deceptive  acts  and  practices. 
Referred  to  the  Committee  on  Agricul- 
ture and  Forestry. 

FVTTTRXS    XXCHAJfCC    ACT 

Mr.  HART.  Mr.  President,  today,  with 
Senators  Hcch  Scott,  Republican  of 
Pennsylvania,  Clifford  Casi.  Republi- 
can of  New  Jersey,  and  Dick  Clark. 
Democrat  of  Iowa.  I  am  Introducing  a 
comprehensive  bill  to  regulate  the  trad- 
ing of  futures  contracts.  Senator  Hum- 
PHRSY  and  Senator  McOovkrn  previously 
Introduced  bills  to  strengthexi  regulation 
of  futures  contracts  as  did  some  Mem- 
bers of  the  House.  It  is  my  hope  that  all 
our  efforts  soon  will  result  In  action  in 
this  Important  field. 

To  the  uninitiated,  futures  contracts 
are  mystifying.  They  are  simple  in  the- 
ory- but  complex  in  fact.  Basically  a  fu- 
tures contract  Is  an  agreement  to  buy  or 
sell  a  good,  service  or  Intangible  for  de- 
livery in  the  future.  The  contract  Is  verb- 
al only.  It  is  traded  on  an  exchange 
much  like  a  stock.  The  contract  terms 
£u-e  set  forth  In  the  rules  and  regula- 
tions of  the  exchange  on  which  it  is 
traded  A  person  who  wants  to  buy  or  sell 
a  futures  contract  places  an  order  with  a 
broker,  who  may  sell  stocks  as  well  as 
futures  The  order  then  Is  executed  by 
a  floor  broker  on  one  of  the  exchanges 
where  the  particular  contract  is  traded. 
There  are  13  active  futures  exchanges 
which,  for  the  most  part,  trade  different 
contracts. 

The  exchange  rules  state  the  quantity, 
quality  and  delivery  places  of  the  under- 
lying good,  service  or  intangible  which  is 
covered  bv  a  contract.  Despite  the  fact 
that  futures  contracts  provide  for  de- 
livery, such  delivery  takes  place  less  than 
3  percent  of  the  time.  FutuPas  contracts, 
then,  are  not  a  device  to  buy\r  sell  pro- 
ducts, but  rather  a  paper  ti»nsactlon 
that  various  commercial  Interests  claim 
they  use  to  hedge  against  fluctuations  in 
prices.  Others  who  have  no  direct  in- 
terest In  the  product  also  trade  futures 
contracts  In  the  hope  of  making  a  profit 
Thev  are  called  speculators 

Futures  contracts  are  traded  on  a  va- 
riety of  things  Included  are  such  agri- 
cultural commodities  as  cotton,  com.  soy- 
beans and  wheat  and  food  products  pro- 
duced primarily  outside  the  United  SUtes 
such  as  cocoa,  sugar,  and  coffee.  Non- 
agricultural  products  also  are  involved. 
such  as  plywood,  propane,  silver  and  var- 
ious moneys,  for  example.  Japanese  yen. 
British  pound,  deutsche  mark.  U.S.  silver 
coins.  It  recently  has  been  announced 
that  trading  will  commence  in  ship  char- 
ters jmd  is  being  considered  on  home 
mortgages  and  petroleum.  Trading  has 
grown  enormously.  In  1972  the  volume  of 
trading  was  almost  $400  bUllon.  In  1973 
It  Is  expected  to  be  S500  billion.  In  1969 
It  was  $ai  billion. 

The  price  of  futures  contracts  poten- 
tia'ly  affects  everyone  for  they  serve  as  a 
basis  for  producer,  middleman  and  con- 
sumer prices.  For  example,  when  a 
farmer  brings  his  grain  to  the  country 
elevator  operator  for  sale,  the  country 
elevator  operator  often  will  pay  the 
farmer  based  on  the  futures  price,  less 
charges  for  handling,  storage,  and  trans- 
portation. A  company  selling  flour  to  a 
baker  to  be  delivered  some  months  hence. 


will  often  contract  with  the  baker  at  the 
futures  price  for  wheat  for  the  month 
nearest  delivery  time  plus  or  minus  a  dif- 
ferential for  processing  and  other  costs. 
As  the  futures  price  is  referred  to  In  the 
various  stages  of  processing,  the  price  to 
the  ultimate  consumer  Is  influenced  by 
the  futures  price. 

Commercial  interests  claim  that  they 
use  futures  contracts  to  shift  the  risk  of 
price  fluctuaUons  to  the  speculator.  They 
contend  that  without  futures  contracts 
consumers  would  have  to  bear  the  risk  in 
the  form  of  higher  prices.  This  Is  the  eco- 
nomic justiflcatlon  given  for  the  exist- 
ence of  futures  markets  Some  people 
contend  futures  trading  Is  merely  legal- 
ized gambling.  In  any  case,  it  appears 
futures  trading  is  here  to  stay.  Thus.  It 
is  crucial  that  it  be  adequately  regu- 
lated. 

Presently,  there  is  a  law — the  Com- 
modity Exchange  Act — which  Ifegulates 
specifically  listed  commodities.  It  is  ad- 
ministered by  the  Department  of  Agri- 
cultures Commodity  Exchange  Author- 
ity. The  act  does  not  apply  to  most  non- 
agrtcultural  products  such  as  money  and 
plywood  or  to  those  products  grown  out- 
side the  United  States  like  sugar,  coffee 
and  cocoa  or  the  anticipated  contracts 
in  home  mortgages  and  petroleum.  In 
1972  over  $130  billion  in  futures  con- 
tracts— or  30  percent  of  the  total — were 
completely  unregulated. 

The  attention  of  Congress  and  the 
press  hsis  focused  on  futures  contracts 
In  the  past  several  months  because  of 
the  volatility  of  the  markets  and  rising 
food  costs.  Well-publicized  Is  the  fact 
that  the  soybean  price  rose  about  $3  30 
to  $12.90  a  bushel  and  has  settled  at 
around  $6  today.  Com  and  wheat  also 
had  gigantic  price  rises  as  did  cocoa— 
which  more  than  doubled.  The  causes  of 
the  volatility  of  the  futures  markets, 
some  claim,  were  a  lax  Commodity  Ex- 
change Authority,  the  Russian  wheat 
deal,  manipulation  of  the  markets  by 
giant  grain  companies,  excessive  specula- 
tion, or  all  of  those  things.  Others  say 
merely  the  the  markets  reflected  supply 
and  demand.  To  me.  the  cause  is  un- 
clear. What  Is  important  Is  that  the  wild 
fluctuations  of  those  markets  brought 
them  to  the  public's  attention.  For  the 
first  time  many  people  became  aware  of 
futures  markets — and  aware  when  the 
CEA  was  referred  to.  It  did  not  neces- 
sarily mean  the  Council  of  Economic  Ad- 
visors, but  might  mean  the  Commodity 
Exchange  Authority. 

Scrutiny  of  the  futures  market  re- 
vealed many  disturbing  things — 

F*lrst.  Many  contracts  involving  prod- 
ucts essential  to  our  well  being  were  com- 
pletely unregulated. 

Second.  Contracts  that  were  regulated 
were  under  the  JurlsdlcUon  of  the  De- 
partment of  Agriculture  although  farm- 
ers seldom  trade  in  futures  and  although 
futures  contracts  are  much  more  like  an 
insurance  policy  or  a  security  than  they 
are  a  sale  of  agricultural  commodities 

Third.  The  Commodity  Exchange  Au- 
thority lacks  sufficient  personnel,  money 
and  legislative  authority  adequately  to 
regulate  the  markets. 

These  conditions  ln\ite  abuse  of  the 
markets 


The  ideal  market  Is  one  which  reflects 
economic  factors — supply,  demand,  fl- 
nanclal  conditions,  and  In  the  case  of 
agricultural  products,  weather  condi- 
tions, amd  crop  failures.  An  ideal  market 
is  one  not  subject  to  manipulation  by 
giant  corporations  or  unscrupulous  in- 
dividuals. The  thrust  of  this  bill  is  to  pre- 
vent any  form  of  distortion  of  the  mark- 
ets so  that  they  may  function  freely. 

To  date,  much  of  the  regulation  has 
been  left  to  the  exchanges.  While,  in- 
deed, some  of  the  exchanges  must  be 
complimented  on  their  self-regulation, 
one  cannot  expect  those  trading  in  this 
market  to  police  themselves  as  diligently 
as  is  necessary.  It  is  difflcult  to  act  both 
as  the  law  enforcer  and  the  accused. 

Certainly,  day-to-day  operations  of 
the  exchange  should  be  left  to  the  ex- 
changes. So  should  certain  functions — 
like  the  setting  of  margins — with  which 
the  exchange  may  be  more  intimately 
acquainted  than  a  Federal  agency. 

However,  a  Federal  agency  should  have 
broad  supervisory  powers  over  an  ex- 
change, even  as  to  something  like  mar- 
gins. It  is  conceivable  that  an  exchange 
might  set  a  margin  at  1  percent  or  2 
percent,  a  figure,  I  think,  everyone  would 
agree  is  too  low.  In  such  a  situation,  the 
Federal  Government  should  have  pjwer 
to  change  the  margin.  Thus,  while  var- 
ious sections  of  the  bill  give  the  exchange 
power  to  make  rules  and  regulations  re- 
garding many  functions  of  the  exchange, 
section  202  provides  that  the  Commission 
may  modify  rules  of  the  exchange,  after 
hearings  and  findings  supported  by  those 
hearings  Basically,  this  bill  gives  the 
initial  decisionmaking  power  to  the  ex- 
change, with  oversight  power  In  the 
Commission. 

The  bill  I  Introduce  today,  as  those  in- 
troduced by  Senators  Humphrey  and 
McGoviRN.  sets  up  an  Independent 
agency  to  regulate  trading  of  futures 
contracts.  This  is  essential  for  several 
reasons.  First,  some  futures  contracts 
cover  products,  services,  and  Intangibles, 
which  are  not  agricultural  In  nature. 
Second,  a  futures  contract  does  not  re- 
late directly  to  the  underlying  product 
but  rather  is  more  like  Insurance  or  a 
security  Third,  this  Is  an  Industrv  which 
has  grown  to  a  half  a  trillion  dollars  in 
volame — a  size  which  would  seem  to 
make  it  merit  a  special  agency  to  deal 
with  Its  problems.  Fourth,  not  only  is  the 
volume  of  trading  large,  but  a  fair 
market  is  essential  to  reasonable  con- 
sumer prices. 

This  bill  differs  from  tho.se  which  have 
been  introduced  in  the  Senate  in  several 
significant  ways: 

First.  It  is  a  comprehensive  bill. 
Rather  than  amending  the  Commodity 
Exchange  Act.  which  has  been  amended 
18  times  and  Is  now  almost  incompre- 
hensible, this  bill  begins  anew.  While  this 
may  cause  some  members  of  the  industry 
to  feel  Insecure,  surely  if  we  are  trying 
to  Improve  the  law  it  should  be  put  Into 
modem  Intelligible  language  Those 
parts  of  the  Commodity  Exchange  Act 
which  are  still  relevant  to  the  trading  of 
futures  contracts  are  Incorporated  in  the 
bUl. 

Second  It  requires  exporters  and  Im- 
porters to  report  to  the  Commission  In- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42G83 


formation  relating  to  the  initiation,  com- 
pletion or  termination  of  negotiations  for 
exports  or  imports.  The  purpose  Is  to 
keep  the  Ccxnmisslon  informed  of  the 
size  of  exports  or  Imports  so  that  if  the 
amount  is  so  substantial  that  it  may 
cause  a  chaotic  market  the  Commission 
may  take  action  in  the  public  interest. 
This  provision  is  aimed  at  preventing  the 
feverish  trading— and  distorted  prices — 
which  followed  announcement  of  the 
Russian  erain  sale. 

Third.  It  requires  the  clearinghouse 
or  the  exchange  to  make  a  daily  record 
showing  the  time  of  each  trade,  the  con- 
tract, the  price,  the  delivery  month,  and 
the  name  of  the  trader.  While  some  ex- 
changes make  part  of  this  liifommtlon 
available,  none  of  them  Identify  the 
trader  becaiase  the  broker  is  not  required 
to  give  the  name  of  the  trader  to  the  ex- 
change. This  bill  requires  him  to  do  so. 
Certainly  a  case  can  be  made  that  the 
name  of  the  trader  should  not  be  made 
public,  or  else  other  traders  might  take 
unfair  advantage  of  such  information. 
However,  it  seems  essential  that  the 
name  of  the  trader,  along  with  the  other 
information  required,  be  available  to  the 
Commission.  This  would  allow  the  Com- 
mission to  examine  who  had  made  what 
transactions  during  a  given  day  and 
might  well  alert  it  to  a  potential  manipu- 
lation of  the  market. 

Fourth.  The  bill  forbids  foreign  traders 
from  trading  on  American  futures  mar- 
kets unless  they  post  a  surety  bond  which 
will  be  forfeited  if  they  refuse  to  submit 
to  the  Jiu-isdictlon  of  the  courts,  the 
Commission  or  an  exchange.  Recently, 
increasing  numbers  of  foreign  individuals 
and  companies  have  begun  to  trade  on 
\5B.  futures  markets  If  those  companies 
do  not  do  business  In  the  United  States, 
there  Is  no  way  to  obtain  jurisdiction 
over  them  should  they  violate  a  law  of 
the  United  States.  This  provision  would 
insure  that  they  submit  to  the  Jurisdic- 
tion of  U.S.  authorities  or  forfeit  a  sum 
of  money. 

Fifth.  The  bill  requires  that  a  broker 
only  take  orders  from  persons  he  has 
reasonable  groimds  to  believe  are  finan- 
cially suited  to  deal  in  futures  contracts 
and  who  sign  a  statement  Indicating  that 
they  understand  the  high  probability  of 
loss.  Similarly,  it  requires  advertisements 
and  promotional  literature  to  state  that 
the  trading  of  futures  contracts  is  highly 
speculative.  Studies  Indicate  that  futures 
trading  is  highly  hazardous.  These  pro- 
visions would  discourage  anyone  from 
dealing  in  futures  contracts  unless  they 
are  financially  able  to  do  so.  This  pro- 
tects both  the  potential  trader  and  the 
marketplace  by  keeping  those  out  of  it 
who  are  not  financially  able  to  meet  its 
obligations. 

Sixth.  This  bill  requires  that  all  per- 
sons who  dead  with  the  public — brokers, 
salesmen  and  Investment  advisers — and 
contract  analysts,  take  examinations  to 
demonstrate  an  understanding  of  the  fu- 
tures market.  This  should  protect  the 
public  and  the  market  from  uninformed 
traders  so  the  marketplace  should  func- 
tion better. 

Seventh.  It  prohibits  any  person  from 
engEiging  in  unfair  and  deceptive  prac- 
tices. Some  are  defined  in  this  bill.  This 


provision  was  made  broad  so  that  the 
CommLsslon,  either  by  rule  or  In  court, 
would  have  the  power  to  prohibit  unfair 
and  deceptive  .schemes  as  they  are 
devised. 

Eighth.  It  prevents  the  fixing  of  Com- 
mission rates.  In  the  past,  members  of 
exchanges  have  price-fixed  the  amount 
of  comini.s.slon  rates.  This  practice  Is 
being  challenged  m  a  suit  by  the  Depart- 
ment of  Ju'-tice  It  also  w3l<;  challenged  In 
some  private  suits  which  have  been 
settled  and  would  phiuse  out  one  of  the 
three  t>-p«is  of  cx)mirus.sions  lii  4  years. 
This  provtsion  goes  further  and  makes 
price-flxinji  of  all  comnussloiis  illegal, 
which  would  seem  In  accordance  with  the 
antitrust  laws. 

Ninth.  It  permits  the  Commission  to 
make  exceptions  for  so-called  world  con- 
tracts— products  which  are  produced 
primarily  outside  the  United  Slates  and 
traded  on  foreign  and  U.S.  exchaiiges. 
Exchanges  trading  such  products  con- 
tend they  need  certain  exceptions  Lf  this 
Is  true,  the  Commission  may  make  such 
exceptions. 

Tenth.  It  requires  that  the  Commission 
approve  the  subject  matter  and  the  terms 
of  all  new  contracts  before  they  may  be 
traded.  This  provision  requires  the  Com- 
mission to  determine  whether  or  not  the 
good,  service  or  Intangible  is  economical- 
ly Justifiable  as  the  subject  of  a  futures 
contract  and  also  lets  the  Commission 
change  or  modify  terms  of  the  contract, 
including  the  nimaber  of  delivery  points. 
There  has  been  widespread  criticism  of 
the  exchanges  for  designating  too  few 
delivery  points — resulting  in  squeezes 
which  have  driven  prices  unjustifiably 
high. 

Eleventh.  It  prohibits  floor  brokers, 
salesmen  and  others  who  handle  cus- 
tomer accounts  from  trading  for  their 
own  accoimt.  This  would  prevent  manip- 
ulation of  the  market  by  floor  brokers 
and  others  for  their  own  benefit,  and  to 
the  detriment  of  their  customers  and  the 
public.  Some  people  contend  that  if  floor 
brokers  are  adequately  regulated  the 
problem  is  solved.  However,  because  it  is 
almost  impossible  to  secure  evidence  of 
such  abuses — other  than  by  admission — 
the  most  stringent  regulation  conceiv- 
able is  inadequate. 

Twelfth.  It  treats  clearinghouses  sepa- 
rately from  exchanges,  requiring  them  to 
register,  set  minimum  capital  require- 
ments for  their  members  and  adequate 
margins.  Although  a  clearinghouse  is  es- 
sential to  the  operation  of  an  exchange 
and  often  is  an  integral  part  of  it.  not  all 
members  of  the  exchange  are  members 
of  the  clearinghouse.  Its  members  have  a 
crucial  financial  function  and  should 
meet  standards  different  from  the  ex- 
change members.  Thus,  exchanges  and 
clearinghouses  are  treated  separately. 

Thirteen.  This  bill  permits  the  Com- 
mission to  charge  each  exchange  an  an- 
nual registration  fee  sufficient  to  cover 
75  to  85  percent  of  the  operating 
costs  of  the  Commission.  The  fee  is  to  be 
allocated  among  the  exchanges  in  pro- 
portion to  the  number  of  contracts  sold 
and  purchased  upon  It.  The  exchange 
may  collect  the  fee  from  traders.  The 
purpose  of  this  provision  Is  to  shift  sc«ne 
of  the  cost  of  regulation  from  taxpayers 


lo  the  people  who  benefit  most  directly 
from  fair  markets — traders,  11  a  lee  of  20 
cents  were  charged  each  buyer  and  seller 
of  a  contract,  and  the  number  of  con- 
tracts traded  is  near  to  25  million  as  it 
was  In  fiscal  1972.  the  amount  collected 
would  be  $10  million.  Since  the  appro- 
priation to  the  Commodity  Exchange  Au- 
thority for  fiscal  1974  wa^-,  about  $3.5  rml- 
lion,  $10  million  m.ay  well  be  adequate  to 
finance  a  suostantial  part  of  the  Com- 
mission s  expenditures.  A  lee  of  20  cents 
per  purcha.ser  and  .seller  of  a  contract  x& 
quite  minimal  when  one  recognizes,  for 
example,  that  1  contract  for  com  is  a 
transaction  Involving  about  $15,000  as 
the  contract  is  for  5,000  bushels  and  the 
futures  price  for  December  Is  roughly  $3 
per  bushel. 

This  bin  also  gives  the  Commission 
power  in  emergency  situations  to  stop 
trading  or  take  similar  action,  to  seek 
Injimctlons  through  Its  own  attorneys, 
and  to  Impose  administrative  penalties. 
It  requires  the  Commission  to  make  mar- 
ket surveys  of  products  which  are  the 
subject  matter  for  futures  contracts  and 
report  such  information  to  the  public. 
The  bill  authorizes  treble  damages  and 
a  minlmimi  jail  sentence  of  10  days  for 
certain  tmfair  and  deceptive  practices. 
All  proceedings  of  the  Comm.is.sion  are 
governed  by  the  Administrative  Proce- 
dure Act  which,  in  many  instances,  re- 
quires findings  based  on  public  hearings. 

Mr  President.  I  do  not  wish  to  burden 
the  Record  with  an  elaborate  explana- 
tion of  other  provisions  of  this  blil  I  a.sk 
unanimous,  consent  that  it.=  text  be  ;:nrt- 
ed  in  the  Record  along  with  some  selected 
and  highly  mfcrmiative  articles  from  the 
Des  Moines  Register  which  describe  the 
need  for  regulation  of  futures  contracts. 

There  being  no  objection,  the  bill  and 
material  were  ordered  to  be  printed  in 
the  Record,  as  follows : 

8.  2837 
A  bUl  to  regulate  the  Intersute  and  foreign 
commerce  trading  of  futures  contracts  in 
order  to  prevent  unfair  and  deceptive  act* 
and  practices 

Be  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  United  States  of 
America  in  Congress  Assembled,  That  this 
Act  may  be  cited  as  the  "Futures  Exchange 
Act". 

TABLE   OF  CONTENTS 
TITLE  I— FUTtTRES  EXCHANGES 
COMMISSION 
Sec.  101.  Findings  and  Purpose 
Sec.  102.  Definitions 
Sec.  103.  Establishment 
Sec.  104.  Commission  Membership 
Sec.  106.  Chairman 
Sec.  106.  Powers  of  Chairman 
Sec.  107.  Personnel  of  the  Commlaslon 

TITLE  n— REGISTRATION  AND 
REPORTING 

Sec.  201.  Eeglatratlon  of  Futures  Exchanges 

Sec    202.  Bzcbmnge  Rules 

Sec,  203.  Exchange  Disciplinary  Procedure* 

Sec.  204.  Regtsiratlon  of  Persons  Engaged  In 
Futures  Trading 

Sec.  205.  ReglstraUon  of  Clearinghouse 

Sec.  206.  Recordkeeping  and  Reporting  Re- 
quirements 

Sec.  207.  Reports  of  Traders 

Sec.  206.  Exchange  Dally  Trading  Reports 

Sec.  209.  Exporter  and  Importer  Report* 

Sec.  210.  Government  Agency  Repcarts 

Sec.  211.  Market  Information 

Sec.  212.  Warehouse  Reports 

Sec.  213.  World  Contracts 


42684 


CONGRESSIO.NAL  KILUKD       bLS.M'E 


December  20,  1973 


TITLB  III— RJEOULATION  ON  TRADINO 
S«c.  301.  Trading  of  Futures  Con trocte 
Sac.  30a.  Approval  of  New  Futures  Contracts 
Sec    303    Regulation  of  Traders 
Sec.  304.  Trading  Limits 
Sec.  300.  Emergency  Powers 
Sec.  306.  Regulation  of  Advertising 
Sec.  307.  Commission  Rates 
Sec.  308.  Unfair  or  Deceptive  Acta 

TTTLK  IV— INVESTIOATION  AND 
ADJUDICATIVE  PROCEKDINOS 
Sec.  401.  Institution  and  Investigation 
Sec.  403.  Subpoenas  and  Investigative  Orders 
Sec    403    Review  and  Enforcement  of  Inves- 
tigatory Subpoenas  and  Orders 
Sec    404.  Institution    of    Adjudicative    Pro- 
ceeding 
Sec    406.  Discovery.   Procedure 
Sec.  406.  Orders  In  Adjudicative  Proceedings 

TITLK  V— >rUDICIAL  PROCEKDINOS 
Sec    SOI.     Judicial   Review 
Sec    503.  ClvU    Enforcement   Prt)ceedlng 
Sec    503.  Criminal  Enforcement 
Sec.  504.  ClvU    Penalty    for    Disobedience    to 

Fln»l  Order 
Sec.  506    Civil  Action  tor  Damac«« 

TITLE  VI— MTSCELL.\NEOU9 

Sec.  801.  Registration  Pee 

Sec.  603.  Authorization  of  Appropriations 

Sec    eoa    Transfer  of  Functions  and  Property 

Sec    604    Effect  on  Existing  Law 

Sec.  606.  Conforming  Amendments 

Sec.  606.  Savings  Clause 

Sec    607    SeverabUlty 

Sec.  608    Effective  Date 

TITLE    I— FUTURES    EXCH-ANOB 
COMMISSION 

rtNOlNGS    MTO    PTTaPOSK 

Sk.      101.  (a)   Findings. — The      Congrvaa 

finds  that— 

(I)  The  trading  of  futures  contracts  sub- 
stantially affects  Interstate  and  foreign  oom- 
merce  and  ttae  public  Interest,  making  It 
neceseary  for  the  Congreea  to  regulate  and 
control  such  transactions. 

(3)  Futures  contracts  are  paper  trans- 
actions traded  on  exchangee,  by  buslneaamen 
to  hedge  against  price  changes  In  a  variety  of 
products  Including  grains  and  other  agricul- 
tural products,  moneys,  and  products  pro- 
duced outside  the  United  States  such  as 
coffee  and  sugar.  Speculators  also  trade  fu- 
tures contracts  In  the  hope  of  making  a 
profit. 

(3>  Some  exchangee  are  considering  trad- 
ing futures  contracts  on  Intangibles  such  as 
■hip  charters  and  home  oaortgagss. 

(4)  The  price  of  futures  contracts  has  a 
substantial  Impact  on  the  economy  and  the 
consumer  t)ecause  futures  contract  prices  are 
disseminated  and  quoted  throughout  the 
United  States  and  In  foreign  countries  as  a 
basis  for  determining  the  price  producers  re- 
ceive and  consumers  pay  for  goods,  products, 
and  services,  sold  In  intertaate  and  foreign 
commerce. 

(5)  In  1973  prices  of  some  futures  oon- 
tracts  fluctuated  so  widely  as  to  cause  public 
alarm  over  the  operation  and  regulation  at 
such  markets  and  arouse  fear  that  the  mar- 
kets were  minlptilated. 

(6)  The  number  of  persons  trading  futures 
contracts,  located  In  the  United  States  and 
abroad,  has  risen  significantly  In  the  last 
year  as  has  the  volume  of  tra<tlng  which  went 
from  $81  blUlon  In  1969  to  MOO  bUllon  In 
1973  with  an  anticipation  of  t600  bill  loo  In 
1973. 

(7)  Futures  contracts  In  a  number  of  tm- 
portAnt  consumer  products  such  as  ooCfes. 
sugar,  cocoa,  and  plywood,  aniountlng  to  a 
dollar  volume  of  1131  bUllon  in  1973,  are 
totally  unregxilated. 

(81  The  trading  of  futures  contracts  sub- 
stantially affects  Interstate  and  foreign  com- 
merce. The  purchase  or  sale  of  futures  con- 
tracts frequently  ortglnatee  outside  the 
states  In  which  the  exchanges  upon  which 


such  transactions  occur  are  located,  and  such 
traasacUons  are  frequenUy  carried  out  by 
means  of  the  telephone,  malls,  and  other  In- 
strumentalities of  Interstate  commerce  The 
transactions  Involve  the  use  of  credit  and 
directly  affect  the  financing  of  trade  and  In- 
dustry In  tnteratate  commerce 

(b)  Purposes — It  Is  therefore  declared  to 
be  the  purpoee  of  Congress  in  this  Act  to 
prevent  Improper  restraint  of  Intsrstate  and 
foreign  commerce  in  the  trading  of  futures 
contracts  by — 

(1)  regulating  all  futures  contracts  to  the 
full  extent  permissible  under  the  commerce 
clause: 

(3)  outlawing  unfair  and  deceptive  prac- 
tices that  are  likely  to  create  artificial  prices, 
volatile  markets,  or  both: 

(3)  outlawing  unfair  and  deceptive  prac- 
tices which  may  Injure  the  public  and  others 
who  trade: 

(4)  establishing  an  Independent  regula- 
tory agency  with  broad  powers  to  carry  out 
the  above  purposes. 

DOIWTTIOIfS 

8«c   103  For  the  purposes  of  this  Act — 
(1)   "person"  means  an  individual,  associ- 
ation,  partnership,   corporation.   Joint  stock 
company.  Joint  venture,  unincorporated  or- 
ganization or  trust,  or  other  legal  entity: 

(3)  Commission  '  means  the  Futures  Ex- 
chan4{e  Commission; 

(3)  "futures  contract"  means  an  agree- 
ment to  buy  or  sell  for  delivery  at  a  future 
time  any  specified  quantity  of  goods,  serv- 
ices, or  other  tangible  or  Intangible  things, 
other  than — 

(A)  an  ordinary  commercial  agreement  be- 
tween two  parties,  or  their  assignors  or  as- 
signees, for  the  actual  consumption,  use,  or 
■ale  of  goods,  services,  or  other  Ungible  or 
intangible  things,  commonly  known  as  a 
"deferred   sale"   or  "forward  contract":    and 

(Bi  a  seciuity  subject  to  reg\Uatlon  by 
the  Securities  and  Bxchan^^e  Commission; 

(4)  "futures  commission  merchant"  means 
a  person  engaged  In  soliciting  or  In  accepting 
orders  for  the  purchase  or  sale  of  futures 
contracts  for  other  persons  and  In  providing 
for  the  execution  of  such  orders; 

(5)  "futures  contract  salesman"  means  an 
Individual  employed  by  a  futures  commis- 
sion merchant  who  sollciu  or  accepts  orders 
to  buy  or  sell  futures  contracts: 

(6)  "floor  broker"  means  a  person  who 
executes  an  order  for  the  purchase  or  sale 
of  futures  contracU  on  an  exchange  for  the 
account  of  another; 

(7)  "floor  trader  ■  means  a  person  who  ex- 
ecutes an  order  on  the  Boor  of  an  exchange 
for  the  purchase  or  sale  of  a  futures  contract 
for  his  own  account; 

(8)  "futures  contract  advisor"  means  a 
person  who  offers  advice  to  any  other  person 
for  compensation  regarding  the  trading  of 
futures  contracU  other  than  a  person  de- 
scribed in  paragraph    (4).   (5).   (6).  or   (7); 

(91  •futures  contract  analyst"  means  an 
individual  who  engages  In  statistical  or 
analytical  work  rsgardlng  the  trading  of 
futvires  contracts: 

(10)  "exchange"  means  any  place  where 
futures  contracts  are  traded, 

(11)  "trader"  means  the  real  party  in  In- 
terest to  the  sale  or  purchase  of  a  futures 
contract; 

(13)  "to  trade"  meana  to  buy  or  sell  fu- 
tures  contracts: 

(13)  "hedger"  means  a  trader  who  pur- 
chases or  sells  futures  contracts  to  shift  the 
riak  of  price  fluctuations  of  his  own  p\u- 
chaaes  or  sales,  or  expected  purchases  or  sales 
of  actual  goods,  services,  or  other  tangible  or 
Intangible  things: 

(14)  "speoilator"  means  a  trader  who  Is 
not  a  hedger:  and 

(15)  "clearing  house"  means  a  central 
agency,  which  may  be  a  separate  entity  or 
part  of  an  exchange,  through  which  trans- 
actions for  ths  purchase  and  sale  of  futures 


oontracu  are  asUlsd  by  matching  purchases 
with  sales 

ISTABtJSHMXirr 

Itec.  108.  (a)  Thsre  Is  establUhed.  as  an 
Independent  agency  of  the  United  SUtes 
Oovemment,  the  Futures  Exchange  Com- 
mission . 

(b)  The  principal  office  of  the  Commission 
■haU  be  In  or  near  the  District  of  Columbia. 

(c)  The  Commission  shaU  have  an  official 
•eai  which  shall  be  Judicially  noUced. 

(d)(1)  The  Commission  shall  report  to 
the  Congress  within  ten  days  after  the  end 
of  the  fiscal  year  beginning  Julv  1,  1974. 
and  of  every  fiscal  year  thereafter,  the  action 
It  has  taken,  the  names,  salaries,  and  duties 
of  all  Individuals  In  its  employ,  and  the 
money  It  has  disbursed. 

(3)  The  Commlaston  shall  provide  to  the 
Senate  and  to  the  House  of  RepresenUtlves 
all  Information.  daU.  estimates,  and  sta- 
tistics which  any  Committee  of  the  Senate 
or  House  determines  to  be  necessary  la  the 
performance  of  Its  oversight  duties  and 
functions  with  respect  to  the  Commission. 
When  the  Commission  transfers  any  book, 
paper,  corre8f>ondence.  memorandum,  or 
other  record,  or  copy  thereof,  to  any  other 
agency  or  person.  It  shall  require  the  person 
who  receives  the  record  to  agree  to  return 
the  record  to  the  Commission  If  the  Com- 
mission receives  a  Congressional  request  un- 
der this  section. 

(3)  Reports  submitted  under  this  subsec- 
tion shall  be  in  addition  to  any  other  reporU 
required  to  be  submitted  by  the  Commission 
under  any  other  provision  of  law 

(e)  Notwithstanding  the  provUlons  of 
sections  516.  618  and  619  of  title  38.  United 
States  Code. — 

(1)  The  Commission  may  Initiate  any  clvU 
action  to  Implement  this  Act.  including  ac- 
tions for  Injunctions  or  declaratory  relief. 
In  Its  own  name  and  through  lU  own  at- 
torneys; 

(3)  Attorneys  for  the  Commission  shall 
supervise,  and  may.  In  the  discretion  of  the 
Commlaslon.  conduct  all  litigation  In  any 
clvU  action  to  which  the  Commission  La  a 
party;  and 

(3)  Attorneys  for  the  Commission  shall 
represent  the  Commission  before  the  Su- 
preme Court  m  any  civil  action  to  which 
the  Commlaslon  Is  a  party,  unless  the  Com- 
mission requests  the  Solicitor  General  to 
represent  It. 

(f)  The  provisions  of  the  AdmlnUtratlve 
Procedure  Act  (title  6,  United  SUtes  Code, 
chapters  6  and  7)  govern  all  proceedings  by 
or  before  the  Commission,  unless,  and  to  the 
extent,  this  Act  provides  to  the  contrary 

Sbc  104  (a)  The  Commission  shall  be  com- 
posed of  five  Commissioners  appointed  by  the 
President,  by  and  with  the  advice  and  con- 
sent of  the  Senate.  At  least  one  member  of 
the  Commission  shall  be  appointed  from 
among  persona  who  represent  the  interests 
of  the  consuming  public.  Not  more  than 
three  of  the  Commissioners  shall  be  members 
of  the  same  political  party.  Bach  Commla- 
sloner  shall  be  compensated  at  the  rate  pro- 
vided by  level  IV  of  the  executive  pay  rates 
(5  Xjac.  &314).  except  as  provided  by  sec- 
tion 108. 

(b)  Commlaaloners  shall  serve  for  terms  of 
five  years  except  that — 

(1)  The  first  five  Commissioners  to  take 
ofBce  shall  serve,  as  designated  by  the  Presi- 
dent at  the  time  of  appointment,  one  for  a 
term  of  one  year,  one  for  a  term  of  two  years, 
one  for  a  term  of  three  years,  one  for  a  term 
of  four  years,  and  one  for  a  term  of  five  years; 
(3)  Any  Commissioner  appointed  to  fill  a 
vacancy  occurring  before  the  expiration  of 
the  term  for  which  his  predecessor  was  ap- 
pointed shall  serve  for  the  remainder  of  such 
term:  and 

(3)  A  Commissioner  may  continue  to  hold 
office  for  alx  months  after  the  expiration  of 
his  term  or  until  his  successor  Is  appointed 


December  20,  1973 


rONGRF.SSIOXAL  RECORD  —  SENATE 


and  confirmed  by  the  Senate,  whichever  pe- 
riod la  shorter. 

(d)  Vacancies  in  the  membership  of  the 
Commission,  so  long  as  there  are  three  Com- 
missioners In  office,  shall  not  Impair  the 
power  of  the  Commission  to  execute  the  pur- 
poses, functions,  and  powers  of  the  Commis- 
sion. Three  Commissioners  shall  constitute 
a  quorum  for  the  transaction  of  business. 

(e)  No  Commissioner  shall  accept  employ- 
ment or  compensation  from  any  person,  ex- 
change, or  clearinghouse  subject  to  regula- 
tion by  the  Commission  under  this  Act  dur- 
ing his  term  of  office. 

(f )  No  Commissioner  shall  conduct  any  ex 
parte  discussion  with  any  person  concerning 
any  rulemaking  or  adjudicative  proceeding 
before  the  Commission.  Any  Commissioner 
who  receives  any  ex  parte  communication 
concerning  any  rulemaking  or  adjudicative 
proceeding  before  the  Conunlaslon  shall,  In 
writing,  report  the  communications  to  the 
other  commissioners  and  to  the  Oeneral 
Counsel. 

(g)  A  Commissioner  may  be  removed  from 
office  by  the  President  for  Inefficiency,  neglect 
of  duty,  or  malfeasance  In  office  and  for  no 
other  reason. 

CHAIRMAN 

Sbc.  lOS.  The  President  shall  appoint,  by 
and  with  the  advice  and  consent  of  the  Sen- 
ate, a  member  of  the  Oonunlsslon  as  Chair- 
man The  Chairman  Is  the  chief  administra- 
tive officer  of  the  Commission  and  presides 
at  hearings  before  the  Commission  He  Is 
compensated  at  a  rate  of  annual  oompensa- 
tlon  8600  In  excess  of  that  provided  for  the 
other  commissioners,  pursuant  to  section 
104(a)  of  this  Act.  The  President  may  at  his 
pleasure,  designate  a  different  rommlasloner 
as  Chairman,  and  the  oommissloner  previ- 
ously designated  Chairman  shall  complete 
his  term  as  an  ordinary  commissioner. 

POWXaS    OF    CHAISMAN 

Sbc.  106.  Subject  to  approval  thereof  by  a 
majority  of  the  Commlsalon,  the  Chairman 
Is  authorized  to — 

(a)  Establish  the  organizational  units  of 
the  Commission  and  determine  their  func- 
tions, or  modify  the  same; 

(b)  Appoint  or  remove  officers  or  employees 
to  head  such  units; 

(c)  Establish  Internal  procedures  of  the 
Conunlaslon; 

(d)  Delegate  any  power  granted  to  the 
Conunlaslon  or  any  officer  or  employee  there- 
of by  this  Act: 

(e)  Promulgate,  after  notice,  any  proce- 
dural rules  or  regulations  necessary  or  ap- 
propriate to  carry  out  the  provisions  of  this 
Act: 

(f)  Define  terms  In  this  Act  not  defined 
herein,  after  notice.  In  a  manner  consistent 
with  the  policies  of  this  Act;  and 

(g)  Take  any  other  action  necessary  to 
carry  out  the  provisions  of  this  Act. 

PXSSONKEL  OF  THS  COMMISSION 

Sec.  107.  (a)  The  President  shall  appoint, 
by  and  with  the  advice  and  consent  of  the 
Senate,  a  Oeneral  Counsel  of  the  Commla- 
slon, who  la  Its  chief  legal  officer. 

(b)  The  Ck>mmla8lon  may  appoint  and 
fix  the  comp>ensatlon  of  any  officers  and  em- 
ployees neceasary  to  carry  out  the  provlalona 
of  thiB  Act,  and  prescribe  their  functlona 
and  duties 

(c)  The  Commlsalon  may  obtain  the  serv- 
ices of  experts  and  consultants  In  accord- 
ance with  the  provisions  of  section  3109 
of  title  6.  United  States  Code. 

TITLE  n— REGISTRATION  AND 
REPORTING 

klOISTKATTON    OF    FtTTCTlM    XXCHANCES 

Sbc.  201.  (a)  It  Is  unlawful  for  an  exchange 
to  permit  futures  contracts  to  be  traded 
upon  It  unless  the  exchange  is  registered 
with  the  Commission. 

(b)  The  Commission  will  register  an  ex- 
change after  the  exchange  files  a  registration 


42685 


sutement  with  the  Commission,  in  the  form 
and  manner  the  Commission  prescribes, 
which  contains  the  following : 

(1)  An  agreement  to  comply  with,  and  to 
enforce,  so  far  as  is  within  Its  powers,  com- 
pliance by  lU  members  with  the  provisions 
of  this  Act  and  of  any  rule  made  by  the  Com- 
mission under  this  Act. 

(3)  A  copy  of  the  Constitution  and  rules  of 
the  exchange  which — 

(A)  provide  for  fair  representaUon  of 
members  of  the  public  on  the  Board  of  Di- 
rectors of  the  exchange; 

(B)  provide  for  minimum  financial  re- 
quirements for  futures  commlaslon  mer- 
chants; 

(C)  require  that  any  futures  commlaslon 
merchant,  floor  trader,  floor  broker,  futures 
contract  analyst,  or  futures  contract  sales- 
man who  has  not  acted  In  any  of  the  afore- 
said functions  for  at  least  one  year  prior  to 
the  effective  date  of  this  Act,  pass  a  written 
examination  testing  his  abUlty  to  perform 
that  function  before  he  may  trade  on  that 
exchange,  or  advise  any  person  who  trades 
on  that  exchange,  and  provide  for  the  ad- 
ministration of  such  examination; 

(D)  set  standards  of  conduct  for  members: 
(B)  provide  for  Investigation  and  audit  of 

members; 

(F)  provide  for  efficient  clearing  and  re- 
porting of  transactions; 

(G)  set  the  maxim imi  amount  the  price  of 

a   futures   contract    may    fluctuate    per   day 

above   or   below   the  previous  closing  price; 

(H)  set  minimum  margin  requirements  for 
traders; 

(I)  establish  a  procedure  for  the  settle- 
ment of  trader  claims  by  voluntary  arbitra- 
tion or,  at  the  election  of  the  trader,  by  a 
committee,  the  majority  of  the  membership 
of  which  are  members  of  the  public: 

(J)  require  prior  approval  by  the  exchange 
of    advertlalng    and    promotional    literature: 

(K)  prohibit  any  person  from  acting  as  a 
floor  trader  and  a  floor  broker,  except  to  cor- 
rect errors  made  by  that  person  within  one 
market  day  after  the  error  waa  made;  and 

(L)  provide  for  any  other  provisions  aa 
the  Commlaslon,  by  rule,  finds  necessary  or 
appropriate  to  Implement  the  pollclea  of  this 
Act. 

(3)  The  Commlsalon  ahall  notify  an  ex- 
change in  writing  if  the  reglatratlon  state- 
ment of  that  exchange  U  inadequate  and 
give  a  statement  of  reasons  for  that  deci- 
sion. Any  exchange  whose  registration  state- 
ment Is  rejected  U  entitled  to  a  determina- 
tion, on  the  record  after  opportunity  for 
public  hearing,  whether  it  Is  entitled  to  be 
registered 

(c)  The  Commission  may  suspend  or  with- 
draw the  registration  of  any  exchange,  after 
a  determination,  on  the  record  after  oppor- 
tunity for  public  hearing,  that  it  has  violated 
any  provision  of  this  Act  or  the  pollclea  of 
this  Act  so  require. 

(d)  The  Commission  may,  ex  parte  and 
without  notice,  suspend  the  registration  of 
any  exchange,  or  any  or  all  trading  therein 
for  up  to  Ave  business  days,  if  it  flnda  that 
the  policies  of  this  Act  require. 

(e)  Any  exchange  operating  on  the  effec- 
tive date  of  this  Act  shall  comply  with  the 
provisions  of  thU  section  within  180  days 
after  the  Commission  prescribes  registration 
requirements  under  subsection  (b)  It  may 
continue  to  operate  aa  an  exchange  unless 
the  Commission  denies  its  registration. 

XXCHANGE    tLXnXM 

Sbc.  202.  (a)(1)  z£th  exchange  shall  re- 
port to  the  Commission  any  change  In  its 
rules  or  regulations. 

(2)  Every  change  Ui  the  rules  or  regula- 
tions of  an  exchange  shall  be  effective  unless 
the  Oonunlsslon  disapproves  or  modifies  the 
rule  or  regulation  after  a  determination,  on 
the  record  after  opportunity  for  hearing, 
that  the  change  Is  Inconsistent  with  the 
policies  of  this  Act. 


(b)  The  Commlaslon  may  require  an  ex- 
change to  amend  an  exlatlng  rule,  or  adopt 
a  new  rule  or  regulation  by  order  after  a  de- 
termination, on  the  record  after  opportunity 
for  hearing,  that  such  change  Is  consistent 
with  the  policies  of  this  Act. 

kxchanob  disciplinaxt  procedurbs 

Sbc.  203.  (a,  (1)  Any  exchange  or  the  Com- 
mlaslon f  the  exchange  falls  to  act,  may  sus- 
pend, expel,  or  discipline  in  any  other  way, 
any  person  who  is  a  member  of  that  ex- 
change, or  deny  any  person  access  to  the 
exchange.  Any  such  action  shaU  be  taken 
solely  la  accordance  with  the  nUee  of  that 
exchange. 

(2)  Any  suspension,  expulsion,  discipli- 
nary, or  accesa  denial  procedure  established 
by  an  exchange  rule  shaU  provide  for  writ- 
ten notice  to  the  Commission  and  to  the  per- 
son who  Is  suspended,  expeUed,  or  disci- 
plined, or  denied  access,  within  thirty  days, 
which  Includes  the  reasons  for  the  exchange 
action  In  the  form  and  manner  the  Commls- 
alon prescribes.  Otherwise  the  notice  and  rea- 
sons shall  be  kept  confidential. 

(b)(1)  Any  person  suspended,  expelled, 
disciplined  by  an  exchange  or  denied  access 
to  It  la  entitled  to  Commission  review  of  that 
decision,  pursuant  to  such  regulatlona  as  the 
Commlaslon,  by  rule,  prescribes. 

(2)  The  Commission  may,  in  Its  discretion, 
upon  application  of  any  person  who  Is  ad- 
versely affected  by  any  other  exchange  ac- 
tion, review  that  action. 

(c)  The  Commission  may  affirm,  modify, 
set  aside,  or  remand  any  exchange  decision 
It  reviews  pursuant  to  subsection  (b),  after 
a  determination  on  the  record  whether  the 
action  of  the  exchange  was  in  accordance 
with  the  policies  of  this  Act.  Subject  to  Judi- 
cial review  pursuant  to  section  601,  any  or- 
der of  the  Commission  entered  pursuant  to 
subsection  (b)  shall  govern  the  exchange,  In 
its  further  treatment  of  the  matter. 

(d)  The  Commission,  Ln  Its  discretion,  may 
order  a  stay  of  any  action  taken  pursuant  to 
subsection  (a)  pending  review  thereof, 

(e)  Nothing  in  this  section  shall  require 
any  person  to  resort  to  the  procedure  set 
forth  In  subsection  (b),  or  prohibit  any  per- 
son from  seeking  ay  other  form  of  relief 
available  to  him  under  State  or  Federal  law 
or  limit  the  llabUlty  of  any  person  to  suit  by 
any  state  or  federal  regulatory  or  prosecu- 
torial agency. 

registration  of  persons  bncagbd  in 

fUlURES    TRADINO 

Sec,  204.  (a)  It  la  unlawful  for  any  per- 
son to  act  as  a  futures  commission  merchant 
floor  broker,  floor  trader,  futures  contract 
analyst,  futures  contract  advisor,  or  futtu-es 
contract  salesman  unless  he  has  registered 
with  the  Commission. 

(b)  The  Commlsalon  shaU  register  any 
person  as  a  futures  commission  merchant, 
floor  broker,  futures  contract  analyst,  fu- 
tures contract  adviser,  or  futures  contract 
salesman  after  he  files  a  registration  state- 
ment containing  the  Information,  and  In  the 
form  and  manner,  the  Commission  prescribes. 
The  Commlaslon  may  require  by  rule  that 
any  peraon  registered  under  this  section  shall 
periodically  update  information  in  his  regis- 
tration   statement. 

(c)  The  Commission  shall  establish  a  writ- 
ten qualifying  examination  for  any  person 
to  be  registered  under  thla  section  who  Is  not 
examined  by  an  exchange  under  section 
201(b)(2)(C),  and  minimum  financial  re- 
quirements for  any  futures  commission  mer- 
chant who  la  not  subject  to  an  exchange  rule 
under  section  201(b)(2)(B). 

(d)  The  Commission  may  suspend  or 
withdraw  the  reglatratlon  of  any  person  reg- 
istered under  this  section  after  a  determina- 
tion, on  the  record  after  opportunity  for 
public  hearing,  that  he  has  violated  any  pro- 
vision of  this  Act  or  the  poUdee  of  this  Act 
so  require. 

(e)  The  Commission  may,  ex    :&.'•«    ar.d 


42686 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  197S 


without  notice.  Biispend  the  rvglstratloa  of 
any  person  under  this  section  for  a  period 
not  tn  excess  of  five  business  days  If.  In  Its 
detennlnstlon,  the  policies  of  this  Act  so 
require. 

(f(  Every  person  who  Is  a  futures  com- 
mission merchant,  floor  broker,  floor  trader. 
futur«s  contract  analyst,  futurw  contract 
adviser,  or  futures  contract  salesman  on  the 
effective  date  of  this  Act  shall  flle  a  registra- 
tion statement  with  tb«  Commlaston  within 
180  days  after  the  Commlsalon  prescribes 
registration  requirements.  Any  such  person 
may  continue  to  do  business  unless  the  Com- 
mission refuses  to  register  blm. 

aXQIBTmATION  or  CLXAUNGHOUB 

Sec.  206.  (a)  It  Is  unlawful  for  any  clear- 
inghouse to  clear  futures  contracts  traded  on 
an  exchange  unless  It  shall  have  registered 
with  the  Commission  as  a  clearinghouse. 

(b)  The  Commission  shall  register  any 
clearinghouse  as  such  after  it  flies  a  regis- 
tration statement  with  the  ComnUsslon  con- 
taining the  Information,  and  in  the  form 
and  manner,  the  Commission  prescribes.  Any 
clearinghouse  shall  be  registered  by  the  Com- 
mission only  If  Its  rules  require  Its  members 
to  meet  adequate  minimum  capital  and  mar- 
gin requirements. 

I  c )  The  Commission  may  suspend  or  with- 
draw the  registration  of  any  clearinghouse 
after  a  determination,  on  the  record  after 
opportunity  for  public  hesulng.  that  It  has 
violated  any  provision  of  this  Act  or  the 
policies  of  this  Act  so  require. 

(d)  The  Commission  may.  ex  parte  and 
without  notice,  stispend  the  registration  of 
any  clearinghouse  under  this  section  for  a 
period  not  In  excess  of  Ave  business  days. 
If.  in  Its  determination,  the  policies  of  this 
Act  so  require 

(e)  Every  clearinghouse  In  existence  on  the 
effective  date  of  this  Act  shall  flle  a  regis- 
tration statement  with  the  Commission 
within  180  days  after  the  Commission  pre- 
scribes registration  requirements  Any  clear- 
inghouse may  continue  to  do  business  un- 
less the  Commission  refuses  to  register  that 
clearinghouse 

RECOROKCEPING     AND    aEPORIlNC 
aZqUIKZKXNTS 

Sec.  306  Every  exchange,  person,  and 
clearinghouse  registered  under  sections  301, 
204,  or  306  shall  establish,  preserve,  and 
provide  to  the  Commission  any  accotints, 
correspondence,  memoranda,  papers,  books, 
or  other  records,  which  the  Commission  re- 
quires by  rule  or  order  Every  such  exchange, 
person,  and  clearinghouse  shall  make  such 
regular  or  special  reports  to  the  Commission 
relating  to  the  trading  of  futures  contracts  or 
persons  engaged  In  such  trading  which  the 
Commission  require*  by  rule  or  order.  Theee 
reports  shall  be  In  addition  to  any  other 
report  required  by  this  Act. 

■KPOKTs   or  TEAoaw 

S«c.  207.  Every  trader  shall  report  to  the 
Commission  such  Information  as  the  Com- 
mission may  by  rule,  reqtilre  relating  to  the 
purchase  or  sale  of  futures  contracts  or  the 
purchase  or  sale  of  goods,  services  or  other 
tangible  or  Intangible  things  which  are  the 
subject  matter  of  futures  contracts. 

IXCHANCS    DAILT    TRAOtNO    RCPOSTS 

Sec.  206.  (a)  Each  future*  commission  mer- 
chant shall  report  to  his  floor  broker  the 
name  of  each  trader  to  a  transaction  Each 
floor  broker  and  floor  trader  shall  report  the 
name  of  the  trader  to  the  clearinghouse. 
The  name  of  the  trader  shall  be  kept  con- 
fidential except  as  provided  In  subsections 
(b)  and  (ci. 

'bl  Every  exchange,  or  Its  clearinghouse 
on  Its  behalf,  shall  prepare  a  dally  trading 
report  in  the  form  and  manner  which  the 
Commission  prescribes  by  rule.  The  dally 
trading  report  shall  Include — 

1 1 )  the  time  of  each  trade  made  on  the 
exchange  that  day; 


(2)  the  goods,  services,  or  other  tangible 
or  Intangible  things  which  are  the  subject 
matter  of  the  futures  contract  involved  In 
each  trade; 

(3)  the  number  of  futures  contracts  In- 
volved In  each  trade; 

(4)  the  price  of  the  futtires  contract  In 
each  trade; 

(5)  the  delivery  month  specified  In  the 
futures  contract  in  each  trade; 

(6)  the  name  of  the  traders  InTolved  In 
each  trade,  and 

(7)  any  other  Information  the  Commission 
requires. 

ic)  Dally  trading  reports  shall  be  made 
available  to  the  Commission  upon  Its  request. 
The  Commission  may  disclose  dally  trading 
reports,  or  information  from  those  reports, 
to  the  public  If.  In  the  determination  of  the 
Commission,  disclosure  will  further  the  poli- 
cies of  this  Act. 

(d)  Before  the  beginning  of  trading  each 
day  the  exchange  shall  make  public  the  vol- 
ume of  trading  on  each  type  of  contract  for 
the  previous  day  and  such  other  Information 
u  the  Commission  deems  necessary  in  the 
public  Interest. 

KXPOBTKB    AND    tMPO«TEB    ECPOBTa 

Sec.  309.  (a)  Any  person  who  negotiates  to 
buy  or  sell  goods,  services  or  other  tangible 
or  Intangible  things  from  sellers  or  to  buyers 
outside  the  United  States,  respectively,  which 
are  the  subject  matter  of  a  futures  contract, 
shall  flle  an  exporter-Importer  report  with 
the  Commission  upon  the  inltatlon.  comple- 
tion or  termination  of  any  negotiations  with 
a  person  outside  the  United  States  relating 
to  the  purchase  or  sale  of  such  goods,  serv- 
ices or  other  tangible  or  Intangible  things. 
The  reports  shall  contain  such  Information 
and  be  filed  In  the  form  and  manner  the 
ConamlBsion  prescribes.  The  Commission  may 
require  any  subsequent  reports  under  this 
section  necessary  to  update  the  information 
In  the  exporter- Importer  report. 

(b)  The  Commission  may.  by  rule,  estab- 
lish exceptions  from  the  requirement  of  sub- 
section (a)  for  Insubstantial  amounts  of  ex- 
ports or  Imports  or  for  certain  goods,  serv- 
ices or  other  tangible  or  Intangible  things 

(c)  Information  In  exporter-Importer  re- 
ports shall  be  confidential  except  as  provided 
in  sub8ectlon(d) . 

(d  I  The  Commission  may.  ex  parte  and 
without  notice,  suspend  trading  In  any  fu- 
tures contract  for  a  period  not  In  excess  of 
three  business  days,  make  public  any  infor- 
mation In  any  report  under  subsection  (a), 
or  take  other  appropriate  action.  If.  In  its 
determination,  the  mitlatlon.  completion  or 
termination  of  any  negotiations  reported  un- 
der subsection  (a)  may  cause  a  chaotic  mar- 
ket for  futures  contracts,  result  In  an  unfair 
advantage  to  any  trader,  or  otherwise  con- 
flict with  the  policies  of  this  Act. 

OOVERNlCnrT     ACKNCT     RXPOBTS 

Sec  310  I  a)  The  Department  of  Agricul- 
ture. Department  of  State,  Department  of 
Commerce,  and  any  other  government  agency 
which  has  Information  which  may  affect 
the  orderly  trading  of  futures  contracts,  shall 
Immediately  report  ruch  Information  to  the 
Commlsalon. 

(bi  The  Commission  shall  maintain  liaison 
with  any  government  agency  which  may  have 
Information  relating  to  the  trading  of  fu- 
tures contracts. 

UAKKrr     INTOaMATTON 

Sec  311  (a)  The  Commission  shall  conduct 
regular  Investigations  of  the  markets  for 
goods,  services,  or  other  tangible  and  Intang- 
ible thlnga  which  are  the  subject  of  futures 
contracts,  and  furnish  reports  of  the  findings 
of  these  Inveetlgatlons  to  the  public  on  a 
regular  basis.  These  market  reports  shall  In- 
clude Information  on  the  supply,  demand, 
prices,  and  other  conditions  In  the  United 
States  and  other  countries  In  respect  of  such 
goods,  services,  or  other  tangible  or  Intan- 


gible things,  and  Information  respecting  the 
futures  markets. 

(b)  The  Commission  shall  cooperate  with 
any  other  Federal  agency  which  makes  mar- 
ket Investigations  to  avoid  unnecessary  du- 
plication of  information  gathering  activities. 

(0)  The  Commission  shall  not  disclose  the 
names  of  Individual  companies  unless  It  de- 
termines that  such  disclosure  Is  In  the  pub- 
lic Interest. 

WAaKBOITBX     REPORTS 

8cc.  213.  Any  person  who  operates  a  deliv- 
ery facility  In  which  goods  deliverable  in  sat- 
isfaction of  a  futures  contract  are  stored 
shall  keep  any  records,  make  any  reports,  and 
permit  any  inspections  by  the  Commlsalon  as 
the  Commission  may  prescribe  by  rule  or 
order. 

WORU>    CONTRACTS 

S«c.  213.  To  the  extent  any  of  the  provi- 
sions of  Title  II  are  Inapplicable  to  world  fu- 
tures contracts  the  Commission  may  make  an 
exception.  A  "world  futures  contract"  means 
a  future  contract  for  a  good,  service,  or  other 
tangible  or  Intangible  thing  which  is — 

(a)  grown,  mined,  refined,  or  otherwise 
produced  both  In  the  United  States  and  In 
foreign  countries  or  exclusively  In  foreign 
countries,  and 

(b)  the  subject  of  active  trading  on  ex- 
changes located  both  In  the  United  States 
and  In  foreign  countries. 

TITLE  in— REGULATION  OF  TRADINO 

TRAOtNO  or  rtmTRRS  CONTRACTS 

Sec.  301  It  Is  unlawful  for  any  person  to 
buy  or  sell,  or  offer  to  buy  or  sell,  any  fu- 
tures contract  except  on  an  exchange  regis- 
tered under  section  201. 

APPROVAL    or    KRW    TXtTVUS*    CONTRACT 

Sec  303  (a)  (1)  It  Is  unlawful  to  trade  any 
futures  contract  unless  the  subject  matter 
and  terms  of  that  contract  are  approved  by 
the  Commission. 

(2)  Paragraph  (I)  does  not  apply  to  any 
futures  contract  which  was  traded  on  an 
exchange  during  the  year  preceding  the  ef- 
fective date  of  this  Act.  unless  the  Commis- 
sion disapproves  or  modifies  the  contract 
pursuant  to  subsection  (b). 

(b)  The  Commission  may  approve,  disap- 
prove, or  modify  the  terms  of  any  futures 
contract,  after  a  determination,  on  the  rec- 
ord after  opportunity  for  public  hearing  that 
there  Is  no  economic  necessity  for  a  futures 
contract  covering  the  subject  matter  of  the 
contract  or  that  the  terms  of  the  contract. 
Including  the  delivery  points  are  Inconsistent 
or  Impractical  in  light  of  the  policies  of  this 
Act. 

RXCTn.ATION    or    TRADERS 

Sec  303  (a)  It  Is  imlawful  for  a  futiu^s 
commission  merchant  or  futures  contract 
salesman  to  accept  an  order  from  any  person 
to  buy  or  sell  any  futures  contract  and  for 
a  futures  contract  advisor  to  advise  any  per- 
son to  buy  or  sell  a  futures  contract  unless 
he— 

( 1 )  has  reasonable  grounds  to  believe,  after 
adequate  Inquiry,  that  such  person  Is  a  suit- 
able buyer  or  seller  of  that  futures  contract 
in  light  of  the  risk  of  the  futures  contract 
and  the  financial  condition  of  that  person: 
and 

(21  obtains  a  signed  statement  from  such 
person,  In  such  form  the  Commission  pre- 
scribes, which  states  that  the  person  under- 
stands the  speculative  nature  of  futures  con- 
tract trading,  the  high  probabUlty  of  loss 
of  Initial  and  later  Investments  In  futures 
contracts,  and  any  other  Information  the 
Commission  prescribes 

(b)(1)  No  futures  commission  merchant 
shall  accept  an  order  to  ptirchase  or  sell  a 
futures  contract  from  any  person  who  Is  out- 
side the  United  States  or  any  country  unless 
he  has  first  obtained  a  surety  bond  from 
such  person  or  country  In  an  amount  to  be 
set  by  the  Commission.  The  bond  shall  be 
forfeited  to  the  United  States  If  such  person 


December  20,  1973 


CONCjRfcSblON AL  RECORD  —  SENATE 


42687 


or  country  falls  to  submit  to  the  Jurisdiction 
of  the  United  States  courts,  the  Commission, 
or  an  exchange,  for  the  purposes  of  enforce- 
ment or  administration  of  this  Act. 

(2)  The  futures  commission  merchant 
shall  be  the  agent  of  such  person  or  country 
for  service  of  process  in  matters  relating  to 
the  enforcement  or  administration  of  this 
Act,  unless  such  a  person  or  country  desig- 
nates another  person  residing  within  the 
United  States  for  that  purpose,  by  filing  a 
notice  with  the  Commission  so  stating. 

TRADIXa     UMTTS 

Sec.  304.  (a)  It  Is  unlawful  for  any  tradw 
to  purchase,  sell  or  hold  futures  contracts  In 
excess  of  any  limitations  which  the  Com- 
mission may,  by  rule,  set  on  the  amount  of 
trading  which  may  be  done  by  any  person 
In  one  day  and  on  the  number  of  contracts 
which  may  be  held  at  any  time  by  any 
person. 

(b)  The  Commission  may  set  different 
limits  for  bona  fide  hedgers  than  it  sets  for 
speculators.  It  may  require  that  a  bona  fide 
hedger  produce  proof  that  his  position  Is 
that  of  a  bona  fide  hedger.  The  Commission 
shall  define,  by  rule,  what  constitutes  a 
bona  fide  hedger. 

EMERCENCT      POWERS 

Sec.  305.  The  Commission,  ex  parte  and 
without  notice,  may  limit  or  8usp>end  trading 
In  any  or  all  futures  contracts,  modify  the 
terms  of  such  contracts  or  take  similar  ac- 
tion In  an  emergency  situation  An  emer- 
gency situation  may  exist  during  time  oi 
war,  a  natural  disaster  in  the  United  State* 
or  elsewhere,  a  severe  financial  crisis,  or 
when  an  event  occurs  which  threatens  or- 
derly trading  in  any  or  all  futures  contracts. 

RXGI7I.ATION      OF      AOVERTTSINO 

Sec.  306.  (a)  It  U  unlawful  for  any  person 
or  exchange  to  advertise  or  disseminate  pro- 
motional literature  concerning  the  trading 
of  futures  contracts  unless  It  states  that 
the  trading  of  futures  contracts  is  highly 
speculative,  and  that  the  danger  of  loes  of 
Initial  Investment  and  later  Investments  is 
substantial,  together  with  any  other  Infor- 
mation the  Commission  requires. 

(b)  The  Commission  may  require  prior  ap- 
proval of  advertising  or  promotional  litera- 
ture unless  the  advertising  has  been  approved 
by  an  exchange  registered  under  section  201 
of  this  Act. 

COMMISSION     RATES 

S«c.  307.  Neither  the  Commission  nor  any 
exchange  shall  set  commission  rates  charged 
for  the  purchase  or  sale  of  futures  con- 
tracts. 

tTNrAIR     OR     DECEPTIVE     ACTS 

Sec.  308.  (a)  It  Is  unlawful  for  any  person, 
clearinghouse,  or  exchange  to  engage  In  un- 
fair or  deceptive  acts  or  practices  in  the  trad- 
ing of  futures  contracts  in,  affecting,  or  that 
may  tend  to  afiect  conunerce. 

(b)  For  purpoees  of  this  section,  unfair 
or  deceptive  acts  or  practices  shall  include, 
but  not  be  limited  to,  the  following — 

(1)  wash  sales,  cross  trades,  accommoda- 
tion trades,  bucket  orders,  and  any  act  or 
practice  Intended  to  cause  or  the  effect  of 
which  Is  to  cause  any  price  to  be  reported, 
regutered  or  recorded,  that  Is  not  a  true  and 
bona  fide  price: 

(2)  prlvUeges.  Indemnities,  options,  bids, 
offers,  advance  guaranties,  and  decline  guar- 
anties; 

(3)  any  act  or  practice  Intended  to  ma- 
nipulate or  the  effect  of  which  Is  to  manipu- 
late any  price; 

(4)  any  trick,  scheme,  or  device  to  cheat 
or  defraud  any  p>erson; 

(6)  commingling  money  or  property  re- 
ceived for  margin  or  security  on  futures  con- 
tracts with  any  other  money  or  property: 

(6)   using  money  or  property  received  for 
margin    or   security    for   any   purpose   other 
than  that  for  which  It  Is  held; 
CXIX 2688— Part  33 


( 7 )  reporting  any  false  Information  to  the 
Commission  or  exchange: 

(8)  acting  as  a  trader  of  futures  con- 
tracts and  as  a  futures  commission  merchant, 
futures  sale.sman.  futures  contract  advisor  or 
futures  contract  analyst. 

(9)  acting  as  a  floor  trader  and  as  a  floor 
broker,  except  for  the  purpose  of  correcting 
errors  within  one  market  day  after  the  error 
was  made: 

(10)  for  a  person  or  exchange  to  make  false 
or  misleading  statements  In  an  advertise- 
ment or  promotional  literature: 

(11)  for  an  exchange,  clearinghouse,  or 
any  person  to  fall  to  obey  an  order  of  the 
Commission  made  pursuant  to  this  Act; 

(12)  for  any  person,  exchange  or  clearing- 
house required  to  register,  to  fall  to  register 
or  to  engage  in  the  trading  of  futures  con- 
tracts or  activities  related  thereto  whUe  his 
registration  Is  suspended  or  withdrawn: 

(13)  for  any  person,  exchange  or  clearing- 
house required  by  this  Act  to  make  any  re- 
port or  keep  any  record,  to  faU  to  do  so. 

(c)  The  Commislon  may  promulgate  rules 
consistent  with  the  policies  of  thU  Act,  de- 
fining the  terms  used  in  subsection   (b). 

(d)  (1)  The  Commission  has  the  power  to 
promulgate  substantive  rules,  declaring  acts 
or  practices  \n  futures  trading  unfair  or  de- 
ceptive, or  as  unfair  or  deceptive  under,  or 
except  under  specified  conditions  or  circum- 
stances. 

(3)  The  Commission  may  promulgate  such 
a  rule  only  after  It  has  determined,  on  the 
record  after  opportunity  for  public  hearing, 
that  the  act  or  practice  Is  Inconsistent  with 
the  policies  of  this  Act. 

(3)  A  final  rule  promulgated  pursuant  to 
this  subsection  (d),  from  which  no  appeal 
or  other  review  has  been  or  can  be  taken 
or  had.  pursuant  to  section  601  of  this  Act, 
has  the  force  of  law 

TITLE  IV— INVESTIGATION  AND 
ADJUDICATIVE   PR(X;KEDINGS 

INSTrTUTION     or    INVESTIGATION 

Sbc.  401.  If  the  head  of  the  organizational 
unit  within  the  Commission  to  which  has 
been  delegated  responsibility  for  enforce- 
ment of  or  compliance  with  the  requirements 
of  this  Act,  pursuant  to  section  106(a),  has 
reason  to  believe  that  any  person,  clearing- 
house, or  exchange  Is  violating  or  has  been 
violating  any  provision  of  this  Act,  or  regu- 
lation or  order  issued  thereunder,  or  Is  fall- 
ing or  has  failed  to  comply  therewith,  he  may 
cause  an  Investigation  thereof  to  be  made. 
He  may  do  so  whether  or  not  the  subject 
matter  of  the  Investigation  la  involved  in  any 
proceeding  before  the  Commission,  a  court, 
or  other  tribunal  or  body.  Such  Investigation 
shall  be  a  nonadjudicative  proceeding. 

SUBPENAS  AND  INVESTICATIVE  ORDERS 

Sec.  403.  (a)  The  head  of  the  organiza- 
tional unit  within  the  Commission  conduct- 
ing an  investigation  pursuant  to  section  401 
of  this  Act.  may  Issue  a  subpena  or  order. 
In  the  name  of  the  Commission,  to  any  jjer- 
8on.  clearinghouse,  or  exchange  within  the 
Jurisdiction  of  the  United  States,  requiring 
him — 

(1)  to  appear,  accompanied  by  counsel  if 
he  so  desires,  before  a  designated  officer  or 
employee  of  the  Commission,  in  a  non- 
adjudicative proceeding,  to  testify,  or  to  pro- 
duce documentary  evidence,  or  other  Infor- 
mation or  material;  or 

(3)  to  file  reports,  or  answers  in  writing 
to  specific  questions — relating  to  the  subject 
matter  of  such  investigation  or  which  might 
lead  to  the  discovery  of  Information  relevant 
thereto. 

(b)  A  person  required  to  appear  pursuant 
to  subsection  (a)(1)  Is  entitled  to  payment 
from  the  Commission  of  witness  fees  and 
expenses  as  prescribed  for  proceedings  in  the 
district  courts. 

(c)  The  manner  and  form  of  services  of 
such   subpenas   and    orders    and    of    agency 


review  of  such  subpenas  and  orders.  Is  as 
the  Chairman  shaU  by  regulation  prescribe, 
pursuant  to  section  106  of  this  Act. 

REVIEW     AND     ENTOaCnOHTr     OT     INVESTIGATORT 
6UBPOKNA8  AND  ORDERS 

Sec.  403.  (a)(1)  Any  person,  clearing- 
house, or  exchange  subject  to  a  subpoena  or 
order  pursuant  to  section  402(a)  may,  after 
exhaustion  of  administrative  remedies  pro- 
vided purusant  to  section  403(c),  secure  Ju- 
dicial review  thereof. 

(3)  The  exclusive  form  of  such  review  Is 
by  application  to  the  United  States  District 
Court  for  the  District  of  Columbia,  except 
as  provided  by  paragraph  (3)  of  this  sub- 
section, for  an  order  that  the  Commission 
show  cause  why  the  subpoena  or  order  should 
not  be  set  aside. 

(3)  If  the  order  to  be  reviewed  is  a  sub- 
poena pursuant  to  section  402  (a)  (1)  of  this 
Act.  commanding  a  person  to  appear  at  a 
place  more  than  100  miles  from  the  District 
of  Columbia,  the  application  may  be  made 
to  the  United  States  District  Court  for  the 
district  within  which  such  place  is  located. 

(b)(1)  If  any  person,  clearinghouse,  ot 
exchange  neglects  or  fails  to  comply,  in 
whole  or  in  part,  with  a  subpoena  or  order 
Issued  pursuant  to  section  402  o  of  this  Act. 
he  may  be  given  notice  thereof.  If  such  neg- 
lect or  failure  continues  thereafter,  the  Com- 
mission may  seek  judicial  enforcement  of  the 
subpoena  or  order 

(2)  Such  enforcement  may  be  by  applic«- 
tions  to  the  United  States  District  Court  for 
the  District  of  Columbia  or  to  the  United 
States  District  Court  for  the  district  within 
which  is  located  the  residence  or  place  of 
business  of  the  person,  clearinghouse  or  ex- 
change for  an  order  that  the  f>eraon  show 
cause  why  the  subpoena  or  order  should  not 
be  enforced  against  him. 

(3)  For  the  purposes  of  this  subsection, 
the  process  of  the  United  States  District 
Court  for  the  District  of  Columbia  runs 
throughout  the  Uni>ed- States  and  otherwise 
as  provided  by  Uj^  Federal  Rules  of  CivU 
Procedure.  ' 

(4)  Disobedience  to  any  court  order  en- 
tered pursuant  to  this  subsection  is  punish- 
able as  a  contempt. 

(c)  If  neglect  or  failure  to  comply  with  a 
subpoena  or  order  continues  for  more  than 
ten  days  after  notice  is  given  pursuant  to 
subsection  (b)(1)  of  this  section,  the  per- 
son, clearinghouse,  or  exchange  subject  to 
subpoena  or  order  will  become  liable  to  the 
United  States  for  a  clvU  penalty  not  to  ex- 
ceed »500  a  day  for  each  further  day  or  neg- 
lect or  faUure.  Such  forfeiture  may  be  re- 
covered by  the  United  States  whether  or  not 
an  enforcement  or  review  prcxeedlng  is  In- 
stituted pursuant  to  this  section,  but  the 
court  may,  at  any  time,  stay  accrual  of  fur- 
ther penalties  If  the  interests  of  JusUc*  so 
require. 

iNSTTTtrnoN  or  adjudicattvx  proceeding 
Sec.  404.  (a)  If  the  General  Counsel  or  the 
Commission  has  reason  to  believe  that  any 
person,  clearinghotise,  or  exchange  to  violat- 
ing or  has  been  violating  any  provision  of 
this  Act,  or  a  regulation  or  order  issued  there- 
under, or  Is  or  has  failed  to  comply  there- 
with, and  he  or  it  believes  that  a  proceeding 
In  respect  thereof  would  be  in  the  public  in- 
terest, he  or  it  may  cause  an  adjudicative  pro- 
ceeding to  be  Instituted. 

(b)  Such  proceeding  Is  commenced  by  a 
notice  or  complaint  issued  In  the  name  of 
the  Commission.  The  proceeding  is  to  be 
public,  and  all  determinations  must  be  made 
on  the  record.  Any  interested  person  la  to  be 
permitted  to  intervene  as  a  party. 

DISCOVERT;    PROCEDtnUE 

Sec.  405.  (a)  Any  party  to  an  adJudlcaUve 
proceeding  before  the  Commission  may  apply 
at  any  time  to  the  officer  presiding  over  the 
hearing  for  subpen^  oradlscovery  orders  to 
provide  testimony,  evidence,  depositions,  or 


42688 


CONGRESSIONAL  RJbCORD  —  SENATE 


December  20,  1973 


other  tnformatton  Th«  officer  Issues  the  Mjnt 
•X  parte,  in  the  name  of  the  Commission.  He 
may  also  Issue  such  subpenaa  or  orders  on 
bla  own  motion.  Subpenas  and  orders  may 
Issue  against  any  [>erson  within  the  Jurisdic- 
tion of  the  United  States,  whether  or  not  he 
la  a  party  in  the  proceeding. 

(b)(1)  The  Chairman  shall  prescribe  rules 
of  practice  for  discovery  and  other  procedures 
applicable  to  adjudicative  proceedings.  Such 
rules  will  parallel  the  Federal  Rules  of  Civil 
Procedure,  as  now  In  force  or  as  amended 
hereafter,  as  closely  as  Is  deemed  practicable. 
Such  rules  will  provide,  further,  for  the  pay- 
ment of  witness  fees  and  expenses  as  pre- 
scribed for  proceedings  in  the  district  courts 

(3)  Such  rules  may  provide  that,  unless 
the  Commission  finds  that  allowing  an  im- 
mediate Judicial  review  will  not  delay  the 
proceeding,  orders  (or  specified  categories 
thereof)  against  a  party  In  the  proceeding. 
or  actions  adverse  to  him.  may  be  reviewed 
Judicially  only  upon  review  of  the  final  de- 
dston  or  order  of  the  Commission. 

OaSKKS    IN    AOJUSICATTVX    PEOCXXSrNCS 

S«c.  408.  (a)  The  Commission  may,  upon 
finding  that  the  respondent  in  an  adjudica- 
tive proceeding  has  violated  or  failed  to 
comply  with  any  proviaion  of  this  Act,  or 
regulation  or  order  Issued  thereunder,  order 
any  or  all  of  the  following  forms  of  relief  It 
finds  to  be  In  the  public  lnt«reat: 

I  1 )  that  the  respondent  cease  and  desist 
from  such  vlcriatlon  or  noncompliance; 

(2)  that  the  respondent  take  affirmative 
action  to  dissipate  the  effects  of  such  vioJa- 
Uon  Or  noncompliance; 

(3)  that  the  respondent  make  restitution 
to  any  person  damaged  by  such  vlolaUon  or 
noncompliance; 

(4)  withdrawal  or  suspension  of  registra- 
tion of  the  respondent;  or 

(6)  any  relief  that  a  court  of  equity  would 
have  power  to  grant  In  the  circumstances. 

(b)  Any  relief  ordered  pursuant  to  subsec- 
tion (a)  of  this  section  may  be  made  subject 
to  any  condition,  or  withdrawn  subject  to 
any  condition,  unless  any  provision  of  law 
prohibits  the  Cocnmlssion  from  directly  Im- 
posing such  a  requirement  on  the  respondent. 

TITLE    V-^UDICIAL    PROCEEDINGS 

JUDICIAL     BEVIEW 

Sec  501.  (a)  Pinal  orders  of  the  Com- 
mission pursuant  to  sections  201(bM3)(B). 
201(c).  20a(a)(2).  202(b).  203(c),  204(d). 
205(C),  302(b).  308(di  or  406  are  reviewable 
as  provided  in  title  28.  chapter  158.  United 
States  Code 

(b)  Emergency  or  short-term  orders  of  the 
Commission  pursu.int  to  sections  201  (d) ,  204 
(e),  205(d).  209id)  or  305  are  not  review- 
able or  subject  to  stay,  except  upon  a  show- 
ing that  the  Commission  acted  wholly  with- 
out jurladtctlon  or  engaged  in  a  gross  abuse 
of  discretion.  Application  for  any  such  review 
or  stay  may  be  made  only  to  the  United 
States  District  Court  for  the  District  of  Co- 
lumbia pursuant  to  such  rules  as  It  pre- 
scribes 

(C)  Other  final  orders  of  the  Coounlsslon, 
e.Tcept  in  matters  confided  solely  to  Its  dis- 
cretion, may  be  reviewed  by  declaratory 
Judgnrtnt  action  in  the  United  States  Dis- 
trict Court  for  the  District  of  Columbia,  sub- 
ject to  the  standards  for  review  provided  In 
title  5.  chapter  7.  United  States  Code 

Crvn,    ENTORcrMTNT    P«nc«EDrNG 

Src.  502-  I  a)  Whenever  any  person,  clear- 
inghouse, or  excliange  appears  to  be  violat- 
ing or  falling  to  comply  with,  or  appears 
about  to  violate  or  faU  to  comply  with,  any 
provision  of  this  Act.  or  reg^llatlon  or  order 
Issued  thereunder,  or  reporting  or  record- 
keeping requirement  thereunder  or  pre- 
scribed pursuant  thereto,  the  Commission  or 
Its  Oeneral  Counsel  may  apply  to  anv  dis- 
trict court  of  the  United  States  having  Juris- 
diction of  such  person,  clearinghouse  or  ex- 
change  for   a   temporary   restraining   order. 


preliminary  injunction  or  permanent  injunc- 
tion. 

(b)  Any  such  action  may  also  be  brought 
In  any  district  In  which  the  person,  clear- 
inghouse, or  exchange  engaged  In  the  acts 
or  practices  alleged  to  constitute  such  viola- 
tion or  noncompliance  For  the  purposes  of 
this  subsection  the  sut>poenas  of  such  court 
may  be  served  throughout  the  United  States. 

(c)  Upon  a  proper  showing  that,  weighing 
the  equities  and  considering  the  Commis- 
sion's llkellbcod  of  ultimate  success,  such 
action  would  br  In  the  public  Interest,  the 
court  shall  gr»nt  iuch  relief  to  the  Commis- 
sion, without  bond,  subject  to  subsection  (d) 
of  this  section. 

(d)  If  an  administrative  complaint  is  not 
filed,  pursuant  to  section  404.  within  such 
period  (not  exceeding  20  days)  as  may  be 
specified  by  the  court,  after  Issuance  of  a 
temporary  restraining  order  or  preliminary 
Injunction,  the  order  or  Injunction  shall  be 
dissolved  by  the  court  and  be  of  no  further 
force  and  effect. 

CaiMINAL    ENroaCXMXNT 

Sec.  608  I  a)  Any  person,  clearinghouse, 
or  exchange  that  knowingly  and  wilfully 
violates  or  fails  to  comply  with  any  provi- 
sion of  this  Act.  regulation  or  order  Issued 
thereunder,  reporting  or  recordkeeping  re- 
quirement thereunder  or  prescribed  pursu- 
ant thereto.  Is  guilty  of  an  offense. 

(b)  Punishment  for  the  offenses  proscribed 
by  sutwectlon  (ai  of  this  section  shall  be. 
upon  conviction  thereof; 

(1)  If  the  violation  or  noncompliance  Is 
Intentional,  and  Is  of  section  308(b)  (11 
through  (4)  of  this  Act.  or  of  a  final  order 
of  the  Commission  pursuant  to  section  40« 
(a)  (1)  through  (2)  In  respect  to  a  violation 
of  or  noncompliance  with  section  308(b)  (1 ) 
through  (4).  the  offense  is  a  felony  and  Is 
punishable  by  Imprisonment  for  not  less 
than  ten  days  nor  more  than  five  years,  a 
fine  tiot  to  exceed  (500.000  or  both; 

(2)  for  any  other  violation  of  or  noncom- 
pliance with  section  308  of  this  Act.  the  of- 
fense Is  a  misdemeanor  and  Is  punishable 
by  a  fine  not  to  exceed  tlOO.OOO. 

(C)  Whenever  the  General  Counsel  has 
reason  to  believe  that  any  person,  clearing- 
house, or  exchange  has  committed  an  offense 
proscribed  by  this  subsection,  he  shall  report 
the  pertinent  facts  to  the  Attorney  General. 

CIVIL    PBNALTT    FOK    OnOBXHIXllCS    TO    FIKAL 


Sec  504.  Any  person,  clearinghouse,  or  ex- 
change that  violates  or  falls  to  comply  with 
an  order  of  the  Commission  pursuant  to  sec- 
tion 406.  after  the  order  has  become  final  and 
while  It  Is  In  effect,  shall  forfeit  and  pay  to 
the  United  States  a  civil  penalty  of  not  more 
than  tlOO.OOO  Such  penalty  shall  accrue  to 
the  United  States  and  may  be  recovered  bv 
It  In  a  civu  action.  Any  such  action  shall  be 
barred  unless  commenced  within  five  years 
after  the  cause  of  action  accrued. 

CrVTL    ACTION    TCm    DAMAGES 

Sec.  508  (a)  Any  person  who  Is  injured  by 
a  violation  of  any  provision  of  this  Act  or 
regiilatlon  or  order  Issued  thereunder  by  the 
Commission  or  any  exchange,  may  bring  a 
civil  action  for  reatltutlon  in  any  district 
court  having  Jurisdiction  of  the  party  who 
caused  such  injury  In  any  such  action,  an 
order  of  the  Commission  pursuant  to  sec- 
tion 40fl(a)(3)  of  this  Act  shall  constitute 
prima  facie  evidence  as  to  liability  between 
the  parties 

(b)  Any  person  who  Is  Injured  by  a  wUlfuI 
violation  of  any  provision  of  this  Act,  or 
regulation  or  order  Issued  thereunder,  may 
bring  a  cini  action  for  threefold  the  damages 
sustained  by  him,  and  the  cost  of  suit  Includ- 
ing reasonable  attorney's  fees.  In  any  dis- 
trict court  having  jurladtctlon  of  the  party 
who  caused  such  Injury. 

(c)  ( 1 )  A  final  Judgment  or  decree  rendered 
in  any  criminal  prosecution  brought  by  the 


United  States  or  In  any  civil  actlo.i  brought 
by  the  Commission  under  this  Act.  to  the 
effect  that  a  defendant  has  violated  a  pro- 
vision of  this  Act.  or  regulation  or  order 
lasued  thereunder  shall  be  prima  facie  evi- 
dence against  such  defendant  In  any  civil 
action  brought  against  blm  for  violation  of 
said  provision  of  this  Act  or  regulation,  as 
to  all  matters  respecting  which  saVd  jude- 
ment  or  decree  would  be  an  estoppel  as  be- 
tween the  parties  thereto 

(2)  This  subsection  shall  not  apply  to  con- 
sent Judgments  or  decrees  entered  before  any 
testimony  Is  taken. 

(d)  Whenever  a  civil  action  Is  brought  by 
the  Commission  or  a  criminal  prosecution  by 
the  United  States,  the  running  of  the  statute 
of  limitations  In  res|>ect  of  every  private  right 
of  action  baaed  In  whole  or  In  part  on  any 
matter  complained  of  in  said  action  or  pro- 
ceeding shall  be  suspended  during  the  pend- 
ency thereof. 

TITLE   VI— MISCELLANEOUS 

RZGISTaATION  FTE 

Sec.  601  (ai  The  Commission  shall  pre- 
scribe, by  rule,  an  annual  fee  to  be  charged 
each  exchange  to  continue  Its  registration 
and  furnish  other  services  provided  by  the 
Commission  pursuant  to  this  Act.  The  fee 
collected  from  all  exchanges  shall  be  designed 
to  effect  an  overall  recovery  75  percent  to  85 
percent  of  the  operating  cosU  of  the  Com- 
mission and  shall  be  allocated  among  the 
exchanges  In  proportion  to  the  number  of 
contracts  purchased  or  sold  on  the  exchange 
In  the  year  prior  to  assessment  cf  the  fee. 

AtTTHOaiZATION  OT  APPnOPEHTIONS 

Sec  602  (a)  Upon  the  completion  of  a  com- 
prehensive Investigation.  Including  a  hear- 
ing Into  the  operations  of  the  Commission  by 
the  Senate  Committee  on  Agriculture  or  the 
House  of  Representatives  Committee  on  Agri- 
culture, and  submission  of  a  report  to  the 
Congress  by  the  committee  which  conducts 
the  investigation,  there  are  authorized  to  oe 
appropriated  to  the  Commission,  for  the  pur- 
pose of  carrying  out  Its  functions  under  this 
Act  for  the  next  fiscal  year  ifter  the  sub- 
mission of  such  a  report,  such  funds  as  are 
necessary  for  that  fiscal  year 

(b)  (1)  The  condition  upon  authorization 
of  appropriations  In  subsection  (a)  shall  not 
apply  If  the  Chairman  of  either  committee 
certifies  to  the  Congress  that  an  Investlga- 
Uon  into  the  operations  of  the  Commission  Is 
not  neceosary  to  effective  Congressional  over- 
sight of  the  Commission  for  that  year 

(2)  The  condition  on  authorization  of  ap- 
propriations cannot  be  waived  under  para- 
graph (1)  for  more  than  two  consecutive 
years. 

T«ANSFKB     or     PUMCTIONS     Al*D      PEOPEXTT 

Sec  603  (a)(1)  There  are  transferred  to 
the  Commission,  and  the  Commission  shall 
perform,  those  functions  carried  out  by  the 
Commodity  Exchange  Commission. 

(2)  Any  function  carried  out  by  the  At- 
torney General,  the  Secretary  of  Agriculture, 
or  the  Secretary  of  Commerce  under  the 
Commodity  Exchange  Act  is  transferred  to 
the  Commission  and  the  Commission  shall 
perform  that  function. 

(b)  The  President  may,  within  a  period 
of  one  year  after  the  effective  date  of  this 
Act.  transfer  to  the  Commission  any  func- 
Uon  of  any  other  agency  or  office,  or  part 
of  any  agency  or  office,  in  the  executive 
branch  of  the  United  States  Government  If 
the  President  determines  that  such  function 
relates  primarily  to  the  primary  function  of 
the  Commission  or  to  functions  transferred 
to  the  Commission  under  this  section. 

(c)  On  the  effecUve  date  of  this  Act,  the 
Conunodlty  Exchange  Commission  shall 
cease  to  exist. 

(d)  All  asseU.  liabilities,  contracts,  prop- 
erty, and  records  that  the  Director  of  the 
Office  of  Management  and  Budget  determines, 
m  his  discretion,  are  employed,  held,  or  used 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42689 


primarily  In  connection  with  any  function 
transferred  to  the  Commission  under  this 
section  are  transferred  to  the  Commission. 


ETIXCT   ON    EXISTING   LAW 

Sec.  604.  (a)  The  enforcement  procedures 
specified  in  sections  602-603  are  cumulative, 
and  the  government  may  Institute  proceed- 
ings under  any  or  all  such  sections  concur- 
rently or  successively.  Those  procedures  are 
in  addition  to  any  and  all  other  rights  and 
remedies  that  may  exist. 

(b)  Nothing  In  this  Act  shall  be  con- 
strued to  limit  the  applicability  of  any  other 
provision  of  federal  or  state  law.  nor  to  re- 
quire the  United  States,  any  state  govern- 
ment or  any  person  granted  a  remedy  by 
another  federal  or  state  law  to  resort  to 
proceedings  before  the  Commission  as  a  con- 
dition, precedent  to  relief  under  such  federal 
or  state  law. 

CONFOBMING    AMENDMENTS 

Sec.  606.  (a)  Section  6314  of  title  6.  United 
States  Code.  Is  amended  by  adding  at  the  end 
thereof  the  following  new  paragraph: 

"(60)  Chairman.  Futures  Exchange  Com- 
mission." 

(b)  Section  5315  of  such  title  Is  amended 
by  redesignating  the  second  paragraph  (97) 
as  (98) .  and  by  adding  at  the  end  thereof  the 
following  new  paragraph : 

"(9fl)  Members,  Futures  Exchange  Oom- 
mlsslon  (4) ." 

(c)  Section  6316  of  title  6.  United  States 
Code.  Is  amended  by  redesignating  the  sec- 
ond paragraph  (133)  as  (134).  and  by  adding 
at  the  end  thereof  the  following: 

"(135)  General  Counsel.  Futures  Exchange 
Commission." 

SAVINGS    CLAUSE 

Sec.  606.  This  Act  does  not  affect  rights 
or  duties  that  matured.  p>enalttes  that  were 
Incurred,  and  proceedings  that  were  begun 
before  Its  effective  date. 

SrVKRABILITT 

Sec.  607.  If  part  of  this  Act  is  invalid,  all 
parts  that  are  severable  from  the  Invalid 
part  remain  In  effect.  If  a  part  of  this  Act  Is 
Invalid  lu  one  or  more  of  Its  applications, 
the  part  remains  in  effect  In  all  valid  applica- 
tions that  are  severable  from  the  InvaJlid  ap- 
plications. 

EFrXCTTVX    DATE 

Sec  608.  This  Act  shall  be  effective  180  days 
after  the  day  on  which  It  Is  enacted. 

[From    the    Des    Moines    Sunday    Register, 

Feb.    18.   1973) 
Lax  Commoditt  Recttlation — Frw  Controls 

rOB  PtJBLIC   IN   FtTTURES   MaBT;    RIGCED  MAR- 
KET  Can   Hcbt   Consumch 
(By    Clark    Mollenhoff.    James    Rlsser    and 
George  Anthan) 

(Note. — This  Is  the  first  story  In  a  series 
of  articles  examining  regulation  of  commod- 
ity trading.  The  series  was  prepared  by  the 
three  members  of  The  Register's  Washing- 
ton Bureau  who  conducted  a  two-month  in- 
vestigation In  Washington.  DC.  Chicago,  ni., 
and  Kansas  City.  Mo.) 

Washington,  D.C — The  $200-blUion-a-year 
commodity  futures  market  is  booming  along 
with  virtually  no  controls  to  protect  millions 
of  small  traders  and  the  consuming  public, 
which  eventually  buys  the  foodstuffs  traded 
there. 

The  U.S.  Commodity  Exchange  Authority 
(CEA) — the  federal  agency  charged  by  law 
with  responsibility  for  regulating  the  mar- 
ket— has,  in  part,  turned  this  task  over  to 
the  professional  traders  themselves,  who  op- 
erate In  a  club-Uke  atmosphere  at  the  vari- 
ous exchanges. 

There  are  strong  Indications  rigged  mar- 
kets In  wheat,  eggs  and  meats  have  cost  the 
public,  the  small  commodity-traders  and 
farmers  millions  of  dollars. 

For  example,  commodities  Industry  officials 
themselvee    agree    that   a   recent   suspected 


manipulation  of  the  egg  futures  market 
artificially  boosted  the  price  of  eggs  on  su- 
permarket shelves. 

At  the  same  time,  there  Is  little  evidence 
that  those  resfwnslble  for  market  manipu- 
lations and  other  serious  abuses  have  received 
much  more  than  a  slap  on  the  wrist. 

Seven  years  ago,  following  a  major  com- 
modities scandal,  the  General  Accounting 
Office  (QAO)  conducted  a  thorough  study 
of  the  CEA's  regulatory  activities  and 
termed  them  "Inadequate." 

The  prestigious  congressional  watchdog 
agency  Issued  a  set  of  strongly  worded  rec- 
ommendations to  the  CEA — moves  designed 
to  Insure  that  the  p'lbllc,  from  the  casual 
trader  trying  to  make  a  lew  dollars  pur- 
chasing comm(5dlty  futures  to  the  house- 
wife doing  her  weekly  grocery  shopping,  is 
adequately  protected. 

registeb  probe 
Now,  a  Des  Moines  Register  investigation 
shows  that  the  CEA.  a  UJS.  Department  of 
Agriculture  agency,  has  paid  little  or  no 
attention  to  the  recommendations  of  the 
GAO  auditors. 

In  fact,  the  level  of  CEA  regulation  of  the 
market  has  declined  during  the  seven  years, 
even  as  the  volume  of  commodity  trading  has 
soared  to  record  levels. 

As  a  result,  the  operation  of  these  markets 
is  open  to  serious  abuse.  Including  price  ma- 
nipulations and  other  collusive  and  decep- 
tive practices  by  those  who  specialize  in 
buying  and  selling  at  the  commodity  ex- 
changes. 

The  CEA  itself  acknowledges  that  "If 
trading  on  commodity  exchanges  Is  not  con- 
ducted according  to  equitable  rules  con- 
stantly enforced,  unfair  practices  may  distort 
or  depreos  farm  prices,  open  the  way  to  price 
manipulations  and  make  It  possible  for  ava- 
ricious dealers  to  'corner'  certain  markets 
and  exploit  them  to  their  profit." 

The  frantic  excitement  of  the  fioor  trading 
at  the  20  commodity  exchanges  in  Chicago, 
m..  Kansas  City.  Mo..  New  York.  NY.,  and 
other  cities  is  a  sharp  contrast  to  the 
serene  atmosphere  in  the  office  here  of  Alex 
C.  Caldwell,  the  CEA  administrator,  who  con- 
tends somewhat  complacently  that  the  small 
traders  and  the  public  are  being  adequately 
safeguarded. 

On  the  one  hand,  Caldwell  frankly  admits 
a  lack  of  manpower  to  police  the  rapidly  ex- 
panding commodity  markets  that  have  be- 
come, in  a  sense,  the  biggest  legal  gambling 
game  In  the  nation — and  probably  In  the 
world. 

no  requests 
At  the  same  time,  the  quiet  administrator 
admits  he  has  refused  to  ask  Congress  for 
more  resources  to  meet  the  criticisms  leveled 
In  the  GAO's  Indictment  of  his  agency. 

The  57-year-old  Caldwell  has  held  his 
Job  since  1960  and  has,  over  the  years,  had 
the  authority  to  act  against  frauds  and  to 
advise  Ck)ngre8s  of  the  inadequacies  of  his 
personnel  and  of  the  regulatory  law  Itself. 
ttpical  report 
But  his  report  to  Congress  last  year  was 
typical.  WhUe  admitting  to  the  House  Agri- 
culture Appropriations  Subcommittee  that 
the  CEA  workload,  customer  complaints  and 
evidence  of  serious  violations  were  rapidly 
increasing  and  were  "a  matter  of  concern." 
he  asked  Congress  for  no  help.  In  fact,  he 
noted  that  with  175  authorized  employees 
scattered  across  the  country  he  was  operat- 
ing with  22  fewer  authorized  employees  than 
two  years  earlier. 

While  Caldwell  speaks  of  his  confidence 
that  he  and  his  CEA  staff  are  doing  the  best 
they  can  to  regulate  the  commodity  futures 
market,  some  veterans  of  many  years  In 
active  trading  at  commodity  exchanges  con- 
tend the  CEA  concentrates  largely  on  minor 
offenders  who  lack  Infiuence  and  whose 
transgreesloQs  are  relatively  easy  to  detect. 


And  some  bonest-mlnded  commodities 
Insiders  who  have  questioned  the  way  the 
CELA  and  the  government-sanctioned  indus- 
try-policing system  operate  have  found 
themselves  subject  to  reprisals  by  their  col- 
leagues In  "star  chamber"  proceeding*. 
There  they  are  barred  from  being  repre- 
sented by  a  lawyer  or  subpoenaing  witnesses 
or  documents  they  believe  necessary  to  prove 
their  case. 

These  are  the  major  elements  In  a  long- 
standing situation  which  has.  for  the  most 
part,  escaped  public  attention  because  of 
the  close  ties  between  the  regtilatora  and 
the  regulated,  and  because  of  the  exceed- 
ingly complicated  nature  of  commodity 
futures. 

Only  recently  have  a  few  victims  begun 
to  strike  back  by  filing  lawsuits  demanding 
repayment  of  money  they  have  lost  In  al- 
leged   price -manipulation    schemes. 

Others  have  attempted  to  break  the  mo- 
nopoly that  exchange  members  hold  over  fees 
they  receive  from  the  public  for  buying  and 
selling    futures    contracts. 

The  CEA  dates  back  to  1936.  when  Con- 
gress passed  the  Commodity  Exchange  Act 
in  an  effort  to  strengthen  government  regu- 
lation over  futiu^  trading  on  agricultural 
products. 

rtrruKBs  trading 
Futures  trading  involves  the  sale  and  pur- 
chase of  contracts  to  deliver  farm  products 
at  some  time  in  the  future.  Without  such 
trading,  prices  for  farm  products  could  be 
expected  to  drop  disastrously  at  han'est 
times  when  supplies  are  great,  and  rise  to 
astronomical  levels  when  harvest  stocks  are 
depleted  and  supplies  are  short. 

Trading  begins  when  a  farmer  offers  his 
product  for  sale,  with  delivery  to  come  at 
some  future  date.  He  wants  to  receive  the 
highest  price  possible.  At  the  other  end  Is 
the  consumer  who  wants  to  pay  the  lowest 
price  possible. 

Contracts  to  purchase  the  farmer's  product 
are  entered  Into  not  just  one.  They  are  traded 
back  and  forth,many  times  at  the  commodity 
exchanges  by  speculators  who  constantly  ap- 
praise the  going  prices  for  the  farmers  goods 
and  other  market  Influences.  When  a  specu- 
lator believes  the  price  of,  say,  wheat  will 
rise,  he  buys  contracts  to  receive  delivery  of 
wheat  In  some  future  month.  If  the  price 
does.  In  fact,  rise,  he  can  later  sell  his  fu- 
tures contract  at  a  handsome  profit. 

On  the  other  hand,  If  the  speculator  be- 
lieves the  price  of  wheat  wlU  fall,  he  wUl  try 
to  sell  contracts  to  deliver  future  wheat  at  to- 
day's prices. 

Ninety-nine  times  out  of  a  100,  statistics 
show,  the  buyer  of  a  futures  contract  does  not 
receive,  nor  does  the  seller  deliver,  the  actual 
commodity.  Most  of  the  transactions  are 
paper  ones  In  which  much  money — but  little 
produce — is  Involved.  Much  of  the  buying 
and  selling  is  the  restUt  of  traders  "specu- 
lating," or  entering  into  "hedging"  contracts 
to  protect  their  positions  In  other  contracts, 
or  engaging  in  "spreading"  or  "straddling'" 
contracts,  or  a  variety  of  other  transactions 
whose  terminology  bewUders  those  not  In- 
itiated Into  the  complex  fraternity  of  the  big 
commodity  traders. 

Despite  the  complex  nature  of  the  com- 
modities markets,  a  rapidly  Increasing  num- 
ber of  small  investors  are,  as  one  Industry 
analyst  put  it,  "stumbling  pell-mell  Into  this 
thing." 

In  1967.  for  example,  there  were  0  million 
"contracts"  traded  at  the  nation's  20  com- 
modity exchanges.  By  1972  this  had  nearly 
doubled  to  a  total  of  17.8  million  trades.  And 
the  number  Is  Increasing  at  about  20  per 
cent  a  year. 

Commodities  traded  on  the  exchanges  In- 
clude  corn,   wheat,   soybeans,   cotton,   shell 
eggs,   cattle,   pork   bellies    (uncured   bacon) 
and  a  host  of  other  products. 
Hundreds  of  millions  of  dollars  In  futures 


42690 


CONGRESSIONAL  RECORD  —  SENA  1  Jb 


December  20,  1973 


contracts  are  entered  into  each  day  In  the 
noisy  trading  pita  on  the  floors  of  tbe  Chi- 
cago Bo*nl  of  Trade,  the  Chicago  Mercantile 
Exchange,  the  Kansas  City  Board  of  Trad* 
and  elsewliere. 

Floor  traders  and  brokers  about  back  and 
forth  In  a  frantic  effort  to  execute  buy  and 
sell  orders  from  their  customers,  or  even 
to  pick  up  a  quick  profit  for  themselves 

EXCHAMGX    PKOBLEMS 

Problems  can  arise  at  the  exchanges  when 
a  btg  trader,  the  price  of  a  commodity  by  buy- 
ing large  quantities  In  an  attempt  to  drive 
prices  up.  or  by  large-scale  selling  to  drive 
prices  down.  It  Is  Ln  such  circumstances  that 
an  effort  to  achieve  a  "comer"  or  "squeeze" 
on  the  market  may  develop — practices  which 
are  illegal  and  which  may  or  may  not  be  de- 
tected by  the  CEA. 

The  close  ties  between  the  CEA.  represent- 
ing the^pubUc.  and  the  commodity  markets, 
representing  the  brokers  and  traders,  waa 
Illustrated  recently  Ln  Kansas  City 

The  CEA  learned  of  allegations  that  a 
group  of  promment  grain  traders  on  the 
Kansas  City  Board  of  Trade  had  rigged  the 
wheat  futures  market  there  In  an  attempt 
to  drive  up  the  government's  wheat  export 
subsidy  at  the  time  of  last  year  s  huge  and 
unprecedented  wheat  sales  to  the  Soviet 
Union. 

Such  an  action,  if  successful,  could  result 
In  substantial  benefits  to  large  grain  export- 
ing firms  which  receive  the  subsidies. 

CaldweU  acknowledged  the  CEA  turned  the 
Informatton  on  alleged  rigging  over  to  the 
Kansas  City  Board  of  Trade  It  reported. 
after  an  Inquiry,  that  there  was  "no  basts  for 
complaint." 

The  board  and  Its  investigating  commit- 
tees are  made  up  of  the  commodity  traders. 
Because  the  case  could  Involve  Influential 
members  of  the  board  of  trade.  Caldwell 
agreed  the  CEAs  action,  in  effect,  may  have 
amounted  to  a  request  that  possible  wrong- 
doers Investigate  themselves. 

He  emphasized,  however,  that  the  CKA  is 
continuing  its  own  investlgaUon  in  the  caae. 

MAJOa   PmOBLXM 

CKA  administrator  Caldwell's  first  major 
problem  in  policing  the  burgeoning  industry 
came  in  1964  with  the  exposure  of  Ttao 
DeangelU's  spectacular  scheme  to  comer  the 
soybean  oU  and  cottonseed  oU  markets. 

Deangells  also  had  obUlned  mUllona  of 
doUars  in  loans,  using  non-existent  stocks  of 
salad  oils  as  collateral. 

A  Senate  investigating  committee  that 
probed  the  case  concluded  the  schemes  had 
been  made  possible  In  part  by  a  relucUnce 
of  the  CEA  to  fuUy  Investigate  the  trade 
practices  of  Deangella  and  others  engaged  Id 
salad  oU  futures  trading. 

Bven  now.  CaldweU  contends  the  CKA 
could  not  have  prevented  the  $150  million 
Deangells  swindle  that  affected  more  than 
50  of  the  moat  respected  banks,  brokerage 
houses   and    trading   companies   In   the   V3 

General  Nathan  Koasack.  the  Inspector 
general  later  issued  a  report  criticizing  CEA's 
handling  of  the  case  The  report  has  never 
been  made  pubUc  and  CaldweU  refused  a 
request  for  a  copy  Neither  would  he  talk 
about  Its  contents. 

Inspector  General  Nathaniel  Kossack  said 
he  would  not  produce  a  copy  of  the  report 
because  the  Agriculture  Department  takes 
the  position  his  reports  are  Internal  advl- 
aorlea  to  agency  heads  and  exempt  from 
mandatory  disclosure  under  the  Freedom  of 
Information  Act.  But  he  said  there  Is  legally 
nothing  to  prevent  CaldweU  from  releasing 
or  discussing  the  report. 

It  was  the  Deangells  caae  that  prompted 
the  investigation  by  the  OAO.  In  July.  1966. 
the  investigators  blasted  the  CEA  for  not 
doing  an  adequate  Job  of  ferreting  out 
abuses  in  futures  trading  which  then  totaled 
•40  bUllon  a  year 


Today,  the  volume  of  trading  la  more  than 
three  times  what  it  waa  In  1990 

But  by  any  standard  of  relative  measure- 
ment, the  CKA  actually  has  fallen  behind 
m  the  seven  years  since  the  OAO  recom- 
mended tougher  enforcement  And  whUe 
there  have  been  some  meager  additions  to 
the  CEA  staff  in  the  Interveoing  years,  the 
agency  has  been  virtually  submerged  by  the 
growth  of  the  industry  it  regulates  and  by 
the  added  responsibilities  Congress  haa 
given  It. 

In  1971,  for  example,  the  CEA  had  to 
process  some  876  000  reports  fUed  by  trading 
companies — nearly  3.000  each  market  day 

Because  the  CEA  has  done  UtUe  to  correct 
Its  faults  since  the  GAO  issued  Its  report, 
the  findings  of  the  OAO  study  are  Important 
In  assessing  CEA  activities  today. 

STTLL   NO   PBOBC 

The  GAO  found  that  CEA  was  not  making 
a  sufficient  number  of  over-aU  InvestlgaUona 
of  the  major  regulated  commodities— a  study 
of  the  sale  of  soybean  oil  futures,  for  ex- 
ample, to  uncover  abusive  trading  pracUces. 
At  that  time,  the  CEA  had  never  Investigated 
the  soybean,  soybean  oU  and  soybean  meal 
futures  which  then  had  a  total  annual  trad- 
ed volume  of  136  5  blUlon. 

There  stlU  has  not  been  an  overall  investi- 
gation   to   see    If   soybean    trading    is    being 
operated    honesUy.    because.    CaldweU    says 
"It  would  tie  up  our  whole  staff  for  a  year  • 

In  these  cases,  complaints  usuaUy  were 
Issued.  However,  the  CKA  then  faUed  to  per- 
form foUow-up  inveetigatlona  to  determine 
whether  the  abuses  had  been  correct«d  the 
report  said. 

The  GAO  decided  to  conduct  its  own  mar- 
ket InvestlgaUon  at  one  major  exchange 
and  during  a  three-month  period  tiirned  up 
47  cases  of  "questionable  trading  pracUcea " 
In  the  sale  of  wheat  and  flaxseed  futures. 

Informed  of  these  findings,  the  CKA  In- 
vestigated and  found  fictitious  and  non- 
competitive sales  to  have  occurred.  A  com- 
mission merchant  firm  was  put  on  proba- 
Uon  and  two  of  its  ofllclals  were  denied  trad- 
ing prlvuegaa  at  the  exchange  for  ao  and 
30  days. 

Caldwell  then,  as  now.  insisted  his  agency 
could  not  conduct  comprehensive  market 
probes  with  the  manpower  It  had.  But  the 
GAO  firmly  rejected  thU  argument,  stating 
that  the  regulatory  agency  "can  not  limit  its 
responsibility  to  properly  poUce  trade  prac- 
tices on  contract  markets  merely  because 
additional  manpower  and  funds  may  have 
to  be  requested  and  obUlned  for  this  our- 
poee."  "^ 

CaldweU  pleaded  In  1965  that  he  could  not 
do  a  useful  trade-practice  InvestlgaUon  un- 
less he  could  take  the  time  to  study  the  thou- 
sands of  trading  transactions  Involving  a 
particular   commodity   for   an   entire   week. 

Again  the  OAO  disagreed,  noting  that  a 
CEA  study  of  only  part  of  the  transactions 
during  a  single  days  trading  in  wheat  fu- 
tures had  turned  up  violations  that  resulted 
in  filing  of  complaints   against    ll   persona. 

LIlfmrD    BTtTDDCS 

Now.  CaldweU  says  the  CKA  has  decided 
to  abandon  the  orer-aU  trade-practice  in- 
vestigations In  favor  of  some  limited  probes 
of  trading  by  Individual  firms.  Even  one 
market-wide  InvestlgaUon.  said  CaldweU 
would  "overwhelm"  his  agency  in  the  c\ir- 
rent  era  of  high -volume  commodity  trading 

The  OAO  also  reported  In  19«»  that  the 
CKA  did  not  review,  on  a  periodic  basis,  the 
records  of  the  commodity  exchanges  and 
thus  had  no  way  of  knowing  whether  tro 
exchanges  were  enforcing  their  own  rules 
doslgnad  to  prevent  illegal  and  unethical 
practloea  by  exchange   members. 

This  "faUure"  by  the  CEA  to  inspect  re- 
cords and  check  on  the  adequacy  of  punish- 
ment of  violators  by  the  exchanges,  said  the 


GAO.  reduced  the  effectiveness  of  CKA'a 
administration  and  enforcement  of  the  pro- 
visions of  the  (Community  Exchange)   Act." 

Caldwell.  In  two  Interviews,  expressed  little 
concern  about  the  exchanges'  handling  of 
these  matters,  saying  he  U  all  for  self-poUc- 
Ing  '  by  the  exchanges. 

One  at  tbe  most  8«rlous  shortcomings  of 
the  CKA,  according  to  the  congressional 
agency,  was  Its  faUure  to  evaluate  the  effect 
on  futures  prices  of  "floor  trading."  where 
a  trader  on  a  commodity  exchange  Is  permit- 
tad  to  buy  and  leU  not  only  for  his  custom- 
ers, but  for  blmaell. 

""SPBC14I.    AOViU«TAGKS" 

The  OAO  pointed  out  that  professional 
floor  traders,  because  of  their  special  knowl- 
edge and  constant  presence  In  the  exchange, 
enjoy  special  advantages"  over  the  rest  of 
the  trading  public.  The  agency  said  this 
opens  the  door  for  such  abuses  aa  the  floor 
trader  obUlnlng  more  favorable  deaU  for 
himself  than  for  his  customers 

Thus,  said  the  GAO.  the  CKA  should  in- 
vesugate  floor  trading  to  see  whether  the 
practice  should  be  curtailed  as  the  Securi- 
ties and  Exchange  Commission  haa  done  with 
regard  to  brokers  at  the  regiilated  stock  ex- 
changes. 

CEA  chief  CaldweU  admits  "floor  trading 
Ing"",  could  result  In  serious  conflicts  of  Inter- 
est, where  the  trader  might  substitute  his 
own  unprofitable  trades  for  a  customer's 
profiUble  ones  He  also  admits  the  CEA  haa 
done  UtUe  to  regulate  this  activity. 

But  Caldwell  said  he  considers  any  such 
Investigation  "low  priority. '•  He  has  consist- 
ently refused  to  ask  Congress  for  funds  to 
carry  out  such  studies. 

DISrtJTXS    CALDWELL 

Caldwell's  lack  of  concern  about  the  prob- 
lem was  disputed  by  a  Chicago  lawyer  who 
for  30  years  was  a  trader  on  the  fioor  of  the 
Chicago  MercantUe  Exchange.  He  said  of  the 
fioor   traders: 

"If  a  fellow  handles  a  customer's  orders — 
say  you  wanted  me  to  buy  some  (hog)  bellies 
for  you— I  should  not  be  aUowed  to  trade 
for  myself.  All  sorts  of  things  can  happen 
You  lay  yourself  open  to  all  aorta  of  hanky- 
panky  " 

And  William  Phelan.  who  heads  the  Mer- 
cantile Exchange's  IS-member  Investigations 
staff,  aknowledged:  "There's  an  unbelievable 
temptation.  If  the  trader  sees  that  his  own 
account  shows  a  loss  and  the  customer's 
account  shows  a  profit."" 

Thx   Job   Thtt    PEaroRU 

Washinoton,  DC  -"The  naUon's  commod- 
ity exchanges — where  future  crope  of  grain 
are  traded,  where  young  cattle  and  hogs  stUl 
on  the  farm  are  bought  and  sold,  and  where 
fortunes  can  be  won  or  lost  In  an  Instant — 
are  a  complex  outgrowth  of  the  need  to  pro- 
vide a  place  for  the  orderly  marketing  of  ag- 
rtcultural  products. 

UntU  the  development  of  the  commodi- 
ties marketa  In  the  mld-l800"s.  trading  in 
grains,  partlctilarly.  waa  chaoUc,  as  com, 
wheat  and  oats  would  pour  Into  Chicago, 
ni.,  at  harvest  time  This  created  a  glut,  re- 
siUttng  In  low  prices  for  farmers  and  the 
dumping  of  bargeloada  of  grain  into  Lake 
Michigan. 

At  other  Omes  of  year,  the  situation  waa 
the  opposite.  Grain  stocks  were  depleted,  and 
demand  drove  prices  skyhlgh. 

Today,  the  main  business  at  the  30  com- 
modity exchanges  in  the  XJB.  Is  the  trading 
of  "commodity  futures'" —  contracts  tor  the 
sale  and  purchase  of  future  farm  products. 
Selling  crope  and  livestock  in  advance,  at 
definite  prices,  helps  stabUlze  prices  and 
provides  a  more  even  flow  of  products  to 
market. 

Commodity  exchanges  often  go  by  the 
name  of  "Board  of  Trade'"  or  "MercantUs 
Exchange""  They  are  located  In  Chicago. 
Kansas   aty.  Mo,  New  York.  N.Y..  Mlnne- 


December  20,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


42691 


apolls.  Minn,  and  a  number  of  other  key 
shipping  and  port  cltlea. 

The  futures  trading  Is  conducted  In  trad- 
ing "pita"  on  the  floors  of  the  exchanges,  by 
commodity  brokers  and  floor  traders  who 
have  purchased  a  membership  at  the  ex- 
change. They  buy  and  sell  commodity  fu- 
tures contracts  for  their  customers,  ranging 
from  giant  grain  companies  down  to  the  or- 
dinary smaUtlme  investor,  or  for  themselves 
When  acUng  for  ctiatomers,  they  are  paid 
oomxnlsslons  for  their  services 

The  exchanges  operate  under  a  two-part 
system  of  regulation — the  federal  Commod- 
ity Exchange  Act  passed  by  Congress  In 
1936,  and  the  exchangee'  own  rules  and  reg- 
ulations. 

The  Commodity  Exchange  Act,  an  out- 
growth of  the  earlier  Grain  Putiires  Act  of 
1923.  Is  administered  by  the  Commodity  Ex- 
change Authority,  an  agency  of  the  UB.  De- 
partment of  Agrlcultiu'e.  The  CEA  has  head- 
quarters In  Washington,  DC.,  and  reglonsJ 
offices  at  major  exchange  cities.  Alex  C. 
Caldwell  has  been  administrator  of  CEA  for 
the  past  13  years. 

Purpose  of  the  Commodity  Exchange  Act. 
said  Congress  at  the  Ume  of  Its  passage,  '"Is 
to  Insure  fair  practice  and  honest  dealing 
on  the  oonuDodlty  exchanges  and  to  provide 
a  measure  of  control  over  those  forms  of 
speculative  activity  which  too  often  demoral- 
ize the  marketa  to  the  Injxiry  of  producers 
and  consumers  and  the  exchanges  them- 
selves." 

A  prime  re^jonstblllty  of  the  CEA  Is  to  en- 
force the  act  and  to  guard  against  price 
manipulation  and  other  Illegal  market  ac- 
tivities In  which  a  trader  or  group  of  traders 
tries  to  unlawfuUy  "oomer"  or  "squeeze" 
the  market  in  a  particular  commodity  and 
thereby  influence  the  price  In  their  favor. 

The  line  between  such  lawful  tradlivg  prac- 
tices as  "hedging.""  "spreading,""  and  "strad- 
dling'" and  unlawful  manipulation  Is  not  al- 
ways a  distinct  one.  It  p>ose6  problems  for 
government    regiUators    and    the   courts. 

The  CEA  also  has  responsibility  under  the 
act  for  designating  exchanges  as  lawful  con- 
tract markets  where  futures  trading  may  be 
carried  on,  for  registering  commodity  broker- 
age firms  and  floor  traders,  for  setting  mini- 
mum fln&nclal  requirements  for  the  trading 
houses,  for  protecting  customers'  funds 
through  surprise  audits  and  other  means, 
and  for  dealing  with  violators  through  nego- 
tiation, administrative  complaint  or  crimi- 
nal prosecuUon.  Penalties  may  Include  ceasc- 
and  desist  orders,  temporary  or  permanent 
loss  of  trading  prlvUeges.  fines  or  prison 
sentences. 

The  voJume  of  futures  trading  regulated 
by  the  CEA  has  grown  steadily.  Fifteen  mU- 
llon  or  more  futures  contracts  are  expected 
to  be  transacted  this  year  with  a  total  value 
of  8200  bUllon — triple  the  figure  of  Just  seven 
years  ago. 

In  the  same  period  of  time,  the  size  of  the 
CEA  staff  has  remained  essentially  the  same, 
with  the  exception  of  the  addition  of  a  few 
employes  when  Congress  gave  the  agency 
more  responsibilities  In  1968 

The  General  Aooounting  Office,  which 
found  In  1965  that  the  CEA  was  doing  an 
Inadequate  Job  of  regulation,  recommended 
that  Caldwell  seek  more  funds  and  person- 
nel— an  tmusual  recommendation  from  the 
cost-conscious  congressional  watchdog 
agency. 

The  CEA  operates  on  an  annual  budget 
of  %2.9  million,  and  has  about  170  employes 
It  must  audit  the  activities  of  some  571  rep- 
istered  brokerage  firms  and  about  1.300  floor 
brokers. 

(From  the  Des  Moines  Register.  Feb.  19.  1973] 

Ten-Cxnt  Ribt  in  Egos  Ttro  to  "Ricoino'" 

(By  George  Anthan  and  James  Rlsser) 

Chicago.  Ill — An  alleged  price  rigging  of 

the  egg  futures  market  in  Chicago  In  1970 


oontlnuod  undetected  for  nearly  a  year  and 
boosted  the  superniajkei  price  of  eggs  by  ae 
much  as  10  cents  a  dozen.  The  Register  has 
learned. 

In  another  price  manipulation  case— this 
one  Involving  a  giant  grain  company's  un- 
lawful control  of  the  wheat  nxarket  In  1963 — 
the  Arm  got  off  without  any  penalty  o'^her 
than  a  meaningless  probation  pert;xl. 

MANZPtTLjlTKJN  POTENTIAL 

The  two  Incidents  lllustrat/e  the  enormous 
potential  for  manipulation  and  other  frauds 
In  the  nation's  conunodlty  markets,  and  the 
fact  that  the  U.S.  Oommodlty  Exchange  Au- 
thority (CEA)  often  moves  slowly  and  tim- 
idly against  violators. 

The  federal  law  governing  the  commodity 
markets.  a.s  well  as  the  publications  of  the 
CEA,  stress  that  future  trading  is  particu- 
larly '"suscepUble  to  speculation,  manipula- 
tion and  control." 

Attempts  by  Individuals  or  a  group  of  con- 
spirators to  artlflclaUy  raise  or  depress  the 
price  of  foodstuffs  traded  on  the  exchangee 
wlU,  if  aUowed  to  go  imchecked,  be  "detri- 
mental to  the  producer  (farmer)  or  the  con- 
sumer and  the  persons  handUng  commodl- 
Ues,"  the  law  warns. 

Yet  a  former  high  official  of  the  Chicago 
MeroantUe  Exchange  estimates  privately 
that  for  every  price  manipulation  case  pros- 
ecuted by  the  CEA,  eight  or  nine  other  price 
riggings  go  undiscovered. 

When  the  CEA  does  move  In,  it  does  so 
slowly.  A  Chicago  lawyer  familiar  with  the 
Inside  workings  of  the  commodity  markets 
said,  "A  regulatory  agency  like  the  CKA 
should  be  able  to  move  with  Ughtnlng  speed. 
But  they  drag  the  cases  out  and  then  Un- 
pose  relatively  meaningless  punishment." 

DEFEND    EECtTLATION 

CEA  and  trading  industry  officials  de- 
fended the  level  of  government  regulation 
In  Interviews  with  The  Register,  but  they 
could  provide  no  firm  assurance  that  most 
price  manipulations  are  detected. 

The  General  AccounUng  Office  (GAO)  more 
than  seven  years  ago  sharply  criticized  the 
CEA  for  lack  of  adequate  regulation,  saying 
In  a  1965  report  that  the  number  of  Investi- 
gations conducted  by  the  agency  was  "not 
sufficient  to  disclose  and  discourage  abusive 
trading  practices."'  The  GAO,  noting  the 
growing  size  of  the  commodity  marketa,  rec- 
ommended a  major  step-up  in  regulatory  ac- 
tivity, not  necessarily  to  detect  and  stop  every 
attempted  manipulation  but  to  provide  at 
least  a  higher  level  of  deterrence. 

Ironically,  the  number  of  market  manipu- 
lations alleged  by  the  CEA  has  declined  dur- 
ing a  period  of  time  In  which  commodity- 
futures  trading  has  quadrupled  In  volume. 

In  the  1950s,  the  CEA  filed  14  complaints 
charging  traders  with  prlce-rlgglng.  But  In 
the  19608.  under  the  new  leadership  of  CEA 
Administrator  Alex  C.  Caldwell,  only  six  such 
cases  were  filed. 

The  former  mercantUe  exchange  official 
who  contends  prlce-rlgglngs  ore  not  caught 
said  the  CEA  office  In  Chicago  "has  only  two 
or  three  p>eople  who  reaUy  understand  what's 
going  on  and  what's  Involved  In  commodity 
trading.  The  CEA  staff  Is  good  on  bookkeep- 
ing things  like  the  proper  segregation  of 
customers  funds  from  the  funds  of  the  brok- 
erage houses,  but  they  are  deficient  on  stop- 
ping manipulation." 

CaUClAL  OPERATION 

The  Chicago  operation  of  the  CKA  is  par- 
ticularly crucial  because  80  per  cent  of  all 
commodity  futures  trading  takes  place  at  the 
Chicago  Board  of  Trade  and  the  Chicago 
MercantUe  Exchange. 

It  was  in  Chicago  that  the  egg  and  wheat 
manipulation  cases  arose. 

In  May  1970,  a  group  of  people  who  had 
Invested  In  the  commodity  market  filed  suit 
In  US.  District  Court  In  Chicago  against 
the  mercantUe  exchange,  charging  they  had 


lost  money  because  of  a  manipulation  of  the 
March,  1970,  egg  futures  market. 

They  alleged  that  a  group  of  unknown  con- 
spirators had  forced  them  to  sell,  at  arU- 
flclally  depressed  prices,  contract*  they  held 
for  the  purchase  of  eggs  The  exrhar.ze  offi- 
cials, In  an  effort  to  stop  the  g'u.sf>ect©d 
manipulation,  actually  contributed  io  the 
plaintiffs"  losses  by  giving  adva.ice  notice  V: 
officials  of  big  brokerage  houses  "aho  served 
on  the  exchange's  business  conduct  commit- 
tee, the  complaint  al.eged 

ThK  lawsuit  asks  for  damages  of  $2  mlUlon, 
claiming  that  is  the  actual  loss  suffered  by 
the  plaintiffs  and  other*  who  were  hurt  by 
the  scheme 

In  October,  1970,  another  dvll  suit  was 
filed  by  a  different  group  of  egg  producers  and 
conunodlty  traders.  aUeglng  a  price  manip- 
ulation of  the  September.  1970,  egg  futures 
market. 

The  second  ca.se  charged  the  plaintiffs  had 
lost  $835,000  becaiise  Tyaon  Poods.  Inc  .  o: 
Sprlngdale,  Ark.,  and  other  defendants — in- 
cluding some  major  brokerage  houses — took 
part  in  an  Ulegal  plan  to  maintain  "a  false. 
fraudulent  and  Inflated  price  In  egg  futures.' 

BOUGHT    OONTRACTS 

The  defendants  bought  up  hundreds  of 
contracts  In  eggs  futiuw  (a  contract  equals 
23,500  dozen)  and  drove  the  wholesale  price 
of  eggs  up  to  a  season's  high  of  48  cec'..s  a 
dozen,  forcing  the  plaintiffs  to  pay  arti&ciaUy 
high  prices  In  order  to  fiUflU  their  own  con- 
tracts to  seU  eggs,  the  suit  charged 

Despite  the  warning  signals  raised  by  the 
two  private  lawsuits,  it  was  two  years  later — 
October,  1972 — before  the  CEA  f.led  a  com- 
plaint against  Tyson  Foods  and  others,  charg- 
ing them  with  manipulation  of  the  1970  egg 
futures  market. 

The  aUegatlons  of  that  government  com- 
plaint are  substantially  the  same  as  in  the 
second  civil  suit  filed  two  years  before. 

Private  lawyers  involved  Ln  the  cases  said 
CEA  investlgaters  did  not  find  out  about 
the  case  on  their  own,  but  got  most  of  their 
informaUon  fnxn  the  filing  of  the  private 
suits. 

CEA  administrator  CaldweU  Ba3rs.  however. 
that  his  Chicago  staff  was  Into  the  case  as 
early  as  September.  1970,  checking  on  oom- 
plalnts  of  an  egg  market  ""squeeze,"  through 
Its  ■"regular  surveillance  process."  But  CKA 
referred  the  situation  to  officials  of  the  Chi- 
cago MercantUe  Exchange  and  took  no  fur- 
ther action  for  two  years. 

This  was  fruitless,  according  to  the  alle- 
gations of  the  first  clvU  suit,  because  ex- 
change officials  charged  with  intentions  were 
connected  with  firms  trading  in  egg  futures. 

'"CX>1CPLKX     nxLD" 

As  for  the  two-year  delay  In  the  filing 
of  the  CEA  complaint.  CaldweU  said  "This  is 
a  complex  field.  It  takes  a  long  time  to  get 
the  evidence  for  prosecution."  Tbe  case  Is 
stUl  pending. 

Veteran  observers  of  the  commodities 
markets  acknowledge  the  alleged  egg  price 
manipulations  may  have  cost  consumers  and 
farmers  mlUlons  of  dollars. 

Harry  Fortes,  the  lawyer  who  filed  the  clvU 
suit  against  Tyson  Foods,  says  the  manipu- 
lation had  an  Impact  on  the  retaU  price  of 
eggs  because  It  lasted  for  some  time.  It  also 
hurt  egg  farmers,  he  sa\-s:  "The  guy  In  the 
country  with  eggs  says.  Heck,  futures  are  up 
to  47  cents.  I'm  not  going  to  seU  for  less.' 
Then  later,  the  price  collapses,  eggs  are 
dumped,    and    the    producer    gets    hurt." 

William  Phelan.  who  heads  the  Depart- 
ment of  Audits  and  Investigations  at  the  500- 
member  Chicago  MercantUe  Exchange,  said 
In  an  Interview  at  his  Chicago  office  that  the 
alleged  egg  manipulation  was  hard  to  detect 
because  "there  was  a  consort  of  Interests  in- 
volved, and  lt"s  a  very  difficult  thing  to 
police." 

It  is  tricky  to  keep  track  of  the  trading 
positions  of  all  traders  and  to  discover  if  a 


42692 


CONGRESSIONAL  RJECORD  —  SENATE 


December  20,  197S 


group  of  related  trmders  la  putting  togelber 
a  manipulation  effort,  he  said. 

"SICNinCANT  EmcT" 

"Theae  people  did  it  for  a  year  running," 
sakl  Pbelan.  It  definitely  had  an  effect  on 
the  price  of  eggs — a  slgolflcant  effect." 

The  impact  on  the  retail  cost  of  eggs  was 
to  raise  the  price  by  as  much  aa  10  cents  a 
doaen.  he  estimated. 

A  former  exchange  official  said  the  CEA 
could  guard  against  such  manipulation  bet- 
ter by  hiring  more  people  and  by  keeping  a 
more    direct   day-to-day    watch   on    trading. 

•It  U  parUy  a  matter  of  Just  being  there 
and  observing  what's  going  on,"  he  said.  "The 
CEA  should  have  a  man  on  the  floor  to  watch 
the  trading,  to  listen  to  rumors.  There  are  al- 
ways people  that  are  hurt  and  will  spill  their 
guts." 

[From  the  Des  Molnea  Register.  Feb.  20,  1673] 

"A  Suu»  ON  WaisT "  Fo«  Caxoux.  Inc. 
(By  Clark  Mollenhoff  and  Oeorge  Anthan) 
Washtngton.  DC. — CargUl.  Inc..  one  of  the 
nations     largest     grain      companies,      has 
emerged  from  a  major  wheat-price  manipu- 
lation case  with  what  federal  officials  them- 
selves concede  was  "only  a  slap  on  the  wrist." 
A  D.S.  Circuit  Court  of  Appeals  has  ruled 
that  CargUl  was  guilty  of  an  illegal  "squeeze" 
of  the    1963   wheat-futures  market   in  Chi- 
cago. 111.,  causing  prlcos  to  rise  to  artificial 
levels. 

But  the  D-S.  Commodity  Exchange  Au- 
thority (CEA).  after  a  deUy  of  7Vi  years. 
Qnally  imposed  its  penalty — a  two-year 
probation  for  the  company  and  some  top 
officers. 

CarglU  thus  continued  to  enjoy  trading 
privileges  at  the  nation's  commodltlea  ex- 
chanjjes. 

CEA  Director  Alex  C.  Caldwell  admitted 
to  The  Register  that  the  probation  given  to 
CargUl  was.  "in  effect,  no  sanction." 

CaldweU  said  he  recommended  the  com- 
pany be  barred  for  90  days  from  trading  in 
commodities,  but  be  said  the  former  CEA 
Judicial  officer  who  levied  the  penalty  against 
CargUl   "wasn't  a  tough  sanctions  man." 

CaldweU's  Judgment  Is  disputed,  however, 
by  the  now-retired  Judicial  officer.  Thomas 
Flavin,  who  hinted  that  the  US.  Agriculture 
Department  has  an  unofficial  poUcy  of  going 
easy  on  large  grain  traders  who  violate  the 
commodities  law 

Flavin  said  he  was  not  overtly  pressured, 
and  added.  "I  made  the  decision  on  the 
CargUl  case  by  myself." 

But  he  said  be  imposed  the  light  penalty 
"with  the  knowledge  that  no  secretary  of 
agriculture  has  ever  penalized  a  big  trader 
by  barring  him  from  trading." 

Al-TSKMSTIVZ    TO    riKS 

Flavin  continued.  "To  do  otherwise  would 
have  put  them  i CarglU)  out  of  business 
because  if  they  had  been  barred  from  trad- 
ing, it  would  have  been  worse  than  a  tb- 
.^lUllon  fine  " 

Caldwell  describes  the  CarglU  situation  as 
one  of  the  meet  important  market  manipula- 
tion cases  brought  by  his  agency. 

But  the  case,  which  began  In  1963.  also  is 
cited  by  CEA  critics  as  an  example  of  slow 
regulatory  action,  as  well  as  weak  punlsb- 
xnen'.. 

It  started  when  the  CEA  filed  a  formal 
complaint  in  June,  1964.  charging  the  big 
?rain  firm  with  a  massive  manipulation  of 
the  May.  1963.  wheat-futures  market  on  the 
Chrago  Board  of  Trade. 

CEA  records  show  that  hearings  on  the 
agency's  complaint  were  concluded  In  No- 
vember, 1966.  and  that  It  was  almost  four 
years  later  before  the  CEA  Judicial  officer's 
ruling  las  handed  down.  Then,  there  was 
delay  after  delay  as  the  company  appealed 
to  tho  courts 

It    was    December.    !971.    before    the    US 
Court  of  Appeals  finally  ruled  that  CarglU's 


control  of  wheat-futures  contracts  represent- 
ing two  mUllon  bushels,  only  15  minutes  be- 
fore trading  In  May.  1963  wheat  futures 
closed,  constituted  a  market  manipulation. 
This  was  because  the  court  said.  CargUl 
at  this  point  controlled.  Just  about  all  the 
avaUable  grain  Therefore,  traders  and  spec- 
ulators who  earlier  had  agreed  to  deliver 
grain  at  a  certain  time  were  faced  with  hav- 
ing to  pay  artificially  high  prices  In  order 
to  meet  their  obligations. 

A«TmCIAI.    PEICX 

The  court  held  that  CargUl  "exacted  an 
artificially  high  price"  from  those  who  had 
agreed  to  fulfill  the  firm's  futures  contracts. 

Also,  the  court  ruled  that  the  "squeeee  was 
Intentionally  brought  by  and  exploited  by" 
CarglU. 

Such  manipulation  Interferes  with  "basic 
supply  and  demand  factors"  which  should 
govern  the  grain  markets,  said  the  court. 

Such  an  action,  the  court  continued,  "pre- 
vents the  futures  market  from  performing  its 
basic  economic  function  and  hence  dimin- 
ishes its  utility  to  those  members  of  the 
trade  and  general  public  who  rely  on  its  basic 
purposes." 

When  a  buyer  of  futures  contracts  succeeds 
m  manipulating  the  market,  he  can  force 
holders  of  sale  contracts  to  fulfill  their  obli- 
gations "at  a  price  which  he  dicutes.  which 
of  course  Is  as  high  as  he  can  prudently 
make  it."  said  the  decision. 

CarglU "s  plea  that  it  was  simply  exercising 
good  business  Judgment  was  rejected  by  the 
coiirt  which  said.  "'CarglU  was  no  novice  In 
futures  trading  and  knew  of  market  condi- 
tions which  could  cause  a  squeeze."" 

CUUllS    CAaCIIX    HAD    tNrOBMATION 

The  company,  said  the  court,  "possessed 
a  very  valuable  piece  of  Information  un- 
known to  the  trade  at  large,  namely,  that  it 
owned  practically  all  the  wheat  avaUable  for 
delivery  .  CargUl  knew  exactly  what  was 
going  on."* 

Despite  the  court's  Judgment  of  the  sever- 
ity of  the  situation,  CargUl  was  given  no 
punishment  by  t»  e  CEA  other  than  the  two- 
year  probation. 

This  light  penalty  was  levied  by  former 
CEA  Judicial  officer  Flavin  and  affirmed  by 
the  court,  "because  of  the  undue  protrac- 
tions of  the  proceedings,  not  due  to  any  fault 
of"  CargUl. 

Flavin  had  found  that  the  offense  deserved 
punishment  of  CargUl  and  four  of  its  top  of- 
ficers by  denyUig  the  firm  and  the  officers 
trading  prlvUeges  on  aU  federaUy-regulated 
commodity  exchanges  for  three  months. 

But  Flavin  then  suspended  the  punish- 
ment and  put  the  firm  and  the  officers  on 
probation  for  two  years,  saying  that  if  the 
law  was  violated  again  during  that  time,  the 
punishment  might  be  re-Imposed. 

•"I"m  not  sure  we  had  a  legal  right  to  sus- 
pend the  penalty.""  Flavin  has  'old  The  Ree- 
Uter.  " 

However,  referring  to  the  CEA"s  traditional 
stance  in  sanctions.  Flavin  added.  ""We  did 
It  (suspended  penalties)  all  the  time.""  He 
said  It  was  the  only  practical  way  for  the 
CEA  to  find  a  violator  guUty  and  stUl  not 
"■virtually  put  him  out  of  business." 

NO  CHALXJCNCX 

FUvln  explained  that  although  there  may 
be  no  legal  right  to  suspend  the  penalties 
for  big  traders.  "It  U  apparent  that  these 
companies  wont  come  Into  court  and  chal- 
lenge It  by  saying.  "You've  been  too  soft  on 
me  You  should  have  put  me  out  of  busi- 
ness "  " 

Caldwell  says  Flavin's  successor.  Donald 
Campbell.  Is  expected  to  take  a  tougher  stand 
on  penalties  for  violators  in  the  future 

Caldwell  also  took  Issue  with  the  court's 
statement  about  delays  In  the  CarglU  case 
not  being  the  company's  fault. 

""There  was  every  legal  maneuver  possible 
by  CarglU  to  drag  It  out,""  he  said. 


Flavin  said  some  of  the  delay  in  the  CarglU 
case  was  because  the  Department  of  Agri- 
culture did  not  appeal  a  precedent-setting 
"bad  decision"  in  the  6th  UB.  Circuit  Court 
of  Appeals  involving  Volkart  Brothers,  a  big 
cotton  trader. 

Flavin  said  there  were  two  ways  the  Agri- 
culture Department  could  have  dealt  with  the 
adverse  r\Ulng  In  the  Volkart  case — appeal  It 
to  the  US.  Supreme  Court  where  he  said  It 
most  likely  would  have  been  reversed,  or  is- 
sue a  statement  deploring  the  circuit  court 
decision  and  announcing  thkt  the  department 
would  not  be  bound  by  it.  But  the  depart- 
ment did  neither. 

"Everyone  agreed  It  was  a  bad  decision,  but 
the  cotton  Industry  didn't  want  It  ap|>ealed, 
and  they  managed  to  put  together  the  politi- 
cal power  to  keep  the  solicitor  general  from 
appealing  It  and  to  keep  the  secretary  of  agri- 
culture from  making  a  statement  that  It  was 
bad  law  and  that  we  shouldn't  be  bound  by 
It,"  Flavin  said. 

WANTED  TO  APPEAL  COTTON  RULING 

He  continued:  "I  wanted  it  appealed,  but 
as  long  as  It  wasnt  appealed.  CarglU  had 
some  basis  for  contending  that  what  they  had 
done  was  not  a  violation  of  the  law  because  It 
wasn't  anything  that  the  VoUiart  Brothers 
hadn't  done.  That  was  also  one  of  the  miti- 
gating circumstances  In  the  CarglU  case." 

Flavin  emphasized,  ""There  wasn"t  any 
hanky-panky  on  the  CargUl  case  I  was  Just 
burled  under  work  with  this  and  several 
other  big  cases,  and  In  the  middle  of  It  they 
took  my  executive  assistant  away  from  me 
and  made  him  a  hearing  examiner,  and  It 
was  a  year  before  I  got  him  replaced."" 

The  US.  Supreme  Court,  in  refusing  last 
spring  to  review  the  circuit  court"s  nUlng  in 
the  CargUl  case,  in  effect  overturned  the 
Volkart  Brothers  ruling  and  imposed  a  more 
strict  standard  against  price  manipulation 
attempts. 

One  of  the  CargUl  officers  put  on  probation 
was  Walter  B  Saunders,  a  vice-president, 
who  testified  before  a  congressional  commit- 
tee last  September  that  he  did  not  know  If 
he  was  still  on  probation 

Saunders  was  before  Congress  in  connec- 
tion with  Cargurs  role  in  the  spectacular 
sale  of  US.  wheat  to  Russia  last  year 

CarglU  sold  some  two  mUllon  bushels  of 
wheat  to  the  Russians,  under  conditions 
which  permitted  CargUl,  Continental  Grain 
Co.  and  others  to  collect  relatively  high  U.S. 
government  subsidies  on  the  sale. 

Representative  John  Melchcr  (Dem.. 
Mont.)  pointed  out  to  Saunders  that  his  two- 
year  probation  period  from  the  wheat  futures 
manipulation  case  had  ended  a  month  ear- 
lier, in  August,  1972. 

"I  was  amazed,"  Melcher  told  Saunders, 
"that  you  did  not  seem  to  know  when  the 
probationary  period  ended  .  .  .". 

Lrm-E     STIGMA 

"There  does  not  seem  to  be  much  of  a 
stigma  attached  to  thU  ruling  on  the  part  of 
Mr  Flavin.  Indeed,  there  Is  very  little  pen- 
alty involved  since  you  are  not  aware  when 
the  probationary  period  ended."  said  Melcher 

The  congressman,  who  was  concerned  over 
evidence  that  the  Agriculture  Department 
gave  advance  tips  to  CargUl  and  some  other 
big  grain  firms  about  pending  changes  in  the 
government  wheat-export  subsidy,  also  noted 
that  at  the  time  CargUl  was  on  probation. 
the  White  House  hired  the  firm's  vice-presi- 
dent for  public  affairs.  William  R  Pearce,  to 
be  a  special  foreign  trade  adviser  to  President 
NUon. 

Melcher  also  pointed  out  that  CargUl  has 
used  the  New  York  City  law  firm  of  Mudge, 
Rose.  Outhrle  and  .Mexander  as  Its  attorneys 
m  various  legal  matters.  Former  UB.  Atty. 
Oen.  John  Mitchell  Is  a  member  of  the  firm, 
and  Mr.  Nixon  was  a  partner  there  before 
he  was  elected  president  In  1988 

The  wheat  manipulation  case.  In  which 
CargUl  drove  the  price  of  wheat  futures  up 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42693 


to  (2.28  a  bushel,  marked  the  fourth  time 
the  Minneapolis,  Minn. -based  firm  has  been 
In  formal  trouble  with  the  CEA  since  the 
Commodity  Exchange  Act  was  passed  In  1936. 

Three  of  the  cases  involved  alleged  market 
manipulations,  and  one  was  a  charge  that 
CarglU  and  its  Canadian  subsidiary  engaged 
In  a  series  of  bookkeeping  maneuvers  which 
permitted  CargUl  to  Ulegally  hold  large 
amounts  of  oats  futures  contracts. 

In  one  of  the  earlier  cases.  CarglU  was  pro- 
hibited from  trading  on  any  reg\Uat«d  com- 
modity market  for  several  years. 

■DNUStJALLT    LENIENT 

Examination  of  past  CEA  manipulation 
charges  indicates  that  CarglU's  recent  two- 
year  probation  was  unusually  lenient. 

In  the  past,  firms  and  their  officers  have 
been  barred  from  trading  for  three  months, 
six  months,  often  for  an  entire  year,  as  the 
result  of  price-fixing  schemes;  Criminal  pen- 
alties rarely  are  used  although  In  one  1946 
case  a  firm  was  fined  $25,000  and  each  of  its 
officers  91,000. 

The  stlffest  penalties,  such  as  the  six- 
month  or  one-year  suspensions,  came  in  the 
1940b  and  1950s.  Since  CaldweU's  reign  began 
In  1960,  the  toughest  jjenalty  for  prloe-rlg- 
ging  has  been  a  90-day  suspension,  but  the 
more  frequent  penalty  has  been  a  20-  or  30- 
day  suspension,  or  simply  probation — as  In 
the  CargUl  case. 

CEIA  director  Caldwell  concedes  that  penal- 
ties imposed  In  recent  years  have  not  been 
tough  enough,  but  he  declines  to  oommlt 
himself  to  a  crackdown  other  than  to  say, 
"We  may  have  to  toughen  them." 

But  any  crackdown  on  penalties  first  in- 
volves finding  the  market  manipulators.  And, 
as  the  court  stated  in  the  CargUl  case: 

""The  methods  and  techniques  of  manipu- 
lation are  limited  only  by  the  ingenuity  of 


I  Prom  the  Des  Moines  Register.  Feb.  21,  1973] 

Does  the  Job  Well:  It's  Scrapped 

(By  Oeorge  Anthan  and  James  Rlsser) 

Chicago.  Ill — An  Agriculture  Department 
computer  program  to  spot  possible  commod- 
ity market  violations  has  been  Judged  a 
failure  by  the  U.S.  Commodity  Exchange  Au- 
thority (CEA)  because  It  was  spotting  too 
many  cases. 

CEA  chief  Alex  Caldwell,  who  has  the  re- 
sponslbUlty  for  policing  the  »200-bUlion-a- 
year  commodity  market,  told  The  Register 
the  computer  kicked  out  so  many  cards  Indi- 
cating deceptive  or  manipulative  practices 
or  other  violations  that  it  was  impossible  for 
his  smaU  staff  to  process  them  adequately. 

Rather  than  seek  staff  Increases  or  have 
his  present  staff  fiounder  in  '"the  mountain 
of  paper  the  computer  kicked  out."  Caldwell 
simply  abandoned  that  computer  as  "un- 
needed"  and  "unworkable." 

CLAIMS  HE'S  NOT  EMPIRE  BUILDER 

"I'm  no  empire  builder,"  Caldwell  said  on 
explaining  his  rejection  of  General  Account- 
ing Office  (QAO)  recommendations  that  he 
Increase  his  staff  to  conduct  enough  Investi- 
gations to  proi>erly  police  the  market. 

The  OAO  recommendations  were  made  In 
1965  and  1966  when  the  commodity  market 
was  only  a  WO-bUUon-a-year  business.  Al- 
though the  trading  has  tripled,  the  CEA  staff 
is  essentially  the  same  size. 

Caldwell  admits  more  Investigators  would 
probably  turn  up  more  violators.  But  he 
contends  the  investigations  of  the  CEA  are 
adequate  as  a  deterrent  in  the  self-policing 
system  he  favors.  That  Is  where  Caldwell  Is  at 
odds  with  the  GAO  and  some  of  the  smaller 
commodity  traders  who  have  the  courage  to 
speak  out  about  a  system  that  the  big  traders 
admire. 

ActuaUy,  In  its  37  years  of  operation,  the 
CEA  has  issued  fewer  than  225  formal  com- 
plaints against  alleged  violators  of  the  Com- 
modlUes  Exchange  Act, 


And  the  CEIA,  especiaUy  In  recent  years, 
has  aUowed  most  offenders  to  continue  In 
business,  perhaps  after  a  short  su^ienslon 
of  trading  privileges  for  a  few. 

ThU  is  despite  the  CEAs  legal  authority 
to  permanently  deny  trading  rights  to  offend- 
ers, to  Impose  fines,  and  even  to  send  vio- 
lators to  JaU. 

DEFENDS    DECISION 

Caldwell,  who  has  been  critical  of  a  minor 
penalty  imposed  in  a  major  wheat  futures 
manipulation  case,  defends  his  sigency's  re- 
cent decision  to  Impose  a  light  sanction  in 
the  case  of  one  of  the  nation's  leading 
brokerage  houses  charged  with  violations  In- 
volving Its  customers'  funds. 

The  CEA  charged  In  August,  1972,  that 
Dean  Witter  &  Co.  had  faUed  to  properly  aUo- 
cate  up  to  »41 4,000  in  customer  funds,  a 
breach  of  the  law.  The  violations,  according 
to  the  agency's  complaint,  had  occurred  a 
year  earlier,  between  July  and  October,  1971. 

The  CEA  reported  that  Dean  Witter  &  Co 
"admitted  the  facts"  and  waived  a  hearing. 
The  agency  announced  that,  as  a  penalty,  it 
had  suspended  the  brokerage  firm's  prlvUeges 
as  a  floor  trading  merchant  for  10  days.  In 
effect  prohibiting  the  company  from  doing 
business  on  the  commodity  markets  for  that 
time. 

WITTEB    RECEIVES    SUSPENDED    SENTENCE 

But  at  the  same  time,  the  CEA  announced 
that  this  penalty  would  be  suspended,  and 
that  Dean  Witter  woiUd  be  placed  on  proba- 
tion for  three  years. 

(The  consent  order  suspending  De&n  Wlt- 
ter's  Ucense,  and  the  order  which  suspended 
the  sentence,  was  Issued  by  Donald  Campbell, 
the  CEA's  Judicial  officer  In  Chicago.  Camp- 
bell has  been  described  by  CaldweU  as  a  man 
expected  to  take  tougher  stands  on  vio- 
lators. ) 

In  defending  this  action,  CaldweU  said 
the  violation  by  Dean  Witter  &  Co.  "was  not 
wUlful.  The  problem  was  a  poor  set  of  rec- 
ords. It  Just  happened.  We  thought  the  best 
way  to  work  It  out  was  for  them  to  agree 
to  fix  up  their  bookkeeping." 

Caldwell  agreed,  however,  that  as  a  leading 
brokerage  firm,  Dean  Witter  &  Co.  shoiUd 
have  been  awaie  of  provisions  of  the  com- 
modities law. 

But  Caldwell  did  not  mention  that  exactly 
one  year  before  the  most  recent  complaint 
was  filed.  In  August.  1971,  the  CEA  had  Is- 
sued another  complaint  against  E>ean  Wit- 
ter &  (Do.,  this  time  charging  the  firm  had  Im- 
properly handled  up  to  $260,000  In  customer 
funds. 

In  that  case.  too.  Dean  Witter  &  Co.  Is 
listed  In  CEA  records  as  having  filed  a  stip- 
ulation in  which  "'It  admits  the  facts  .  .  .'". 

No  penalty  was  levied  In  the  1971  case. 
Dean  Witter  &  Co  was  directed  to  "cease  and 
desist  "  from  "falling  to  treat  and  deal  with 
ciistomers'  funds  as  belonging  to  such  cus- 
tomers .  .  ."".  Under  the  law.  the  CEA  could 
have  later  Imposed  fines  and  jaU  terms  for 
faUure  to  comply  with  a  cease  and  desist 
order. 

1988-67    DISCREPANCIIS 

CEIA  records  also  show  that  examination  of 
the  company's  records  in  1966  and  in  1967 
disclosed  the  firm  "had  not  satlsfactorUy 
complied  with  the  requirements"  of  the 
federal  law.  In  this  case,  according  to  CEA 
records,  "These  matters  were  called  to  the 
attention  of  the  corporation"  .  .  .  Eind  the 
firm    "promptly""  complied  with  the  law. 

There  U  little  question  but  that  Cald- 
weU's position  that  Dean  Wltter"8  later  viola- 
tions were  simply  a  result  of  "'bad  book- 
keeping practices"  would  be  challenged  by 
some  veteran  federal  regulatory  officials  in 
Washington  since  the  company  was  found  to 
have  been  involved  In  earlier  violations. 

JCSTITT    EXISTENCE    OK    AOENCT 

A  former  high  official  of  the  Chicago  Mer- 
cantUe  Exchange,  now  practicing  law  here. 


contends  the  CEA  Is  more  concerned  with 
Impressing  Congress  with  lis  modest  budget 
requests  than  with  adequately  regulating 
a  (200-bUllon-a-year  industry  that  is  grow- 
ing at  the  rate  of  20  per  cent  annually. 

"They  Just  want  to  Justify  their  exist- 
ence," said  the  lawyer,  a  former  commodi- 
ties trader  and  considered  a  market  expert. 

When  CEA  chief  Caldwell  asked  Congress 
for  money  to  be  used  on  the  computer  in- 
vestigations of  lUegal  price  manipulations, 
he  said  he  would  reduce  the  size  of  his  staff 
to  offset  the  $35,000  cost  of  the  computer 
programming. 

So  when  the  computer  investigations  faUed 
to  work  out,  the  agency  was  without  its 
planned  new  program  and  had  fewer  em- 
ployes than  when  It  started  the  project.  In 
fact,  as  the  volume  of  commodity  trading  has 
sweUed.  the  CEA  staff  has  been  steadUy 
shrinking. 

At  congressional  appropriations  hearings  a 
year  ago,  Caldwell,  anticipating  that  the  com- 
puter program  would  work,  boasted  that  "de- 
spite an  increase  of  1.5  mUllon  in  transac- 
tions supervised  and  a  corresponding  increase 
in  workload,  the  agency  is  curently  operating 
at  22  p>o6ltions  below  the  levrt  authorized  In 
the  fiscal    1970  budget." 

With  fewer  employes.  Caldwell  now 
acknowledges  that  one  major  Investigation 
of  trading  in  a  single  commodity — eoybeans, 
for  example — "'wotUd  tie  up  our  staff  for  a 
year." 

"NOT    IfT    THEORY"" 

Then,  he  adds  quickly.  '"That  doesnt  mean 
we  need  more  staff.  You  could  buUd  up  an 
empire  here,  but  that"s  never  been  my  theory 
of  regulation." 

WhUe  Caldwell  insists  CEA's  policy  of 
allowing  the  commodities  exchangee  to 
police  themselves  is  working,  the  U.S.  General 
Accounting  Office  (GAO)  has  urged  strongly 
that  the  CEA  beef  up  its  staff,  and  do  more 
of  this  work  Itself. 

SXEN  AS  UNUSUAL  STAND 

This  is  a  highly  unusual  stand  for  the 
GAO,  the  congressional  watchdog  agency  that 
rarely  advocates  increased  government 
spending  or  staff  expansions. 

The  CEA's  1973  budget  request  to  Congress 
is  indicative  of  Its  long-standing  approach 
to  its  regulatory  task. 

The  agency  reported  that  it  expects  to 
conduct  107  Investigations  this  year,  com- 
pared to  106  last  year.  It  expects  to  file  two 
criminal  proceedings  this  year,  the  same  as 
In  1972. 

The  CEA  said.  also,  that  it  bad  conducted 
188  audits  last  year  to  determine  If  brokerage 
firms  were  honestly  handUng  their  customers' 
money.  In  1973,  the  CEA  expecu  to  conduct 
195  such  audits. 

In  another  area,  the  agency  said  it  exam- 
ined 645  financial  statements  last  year,  and 
expects  this  to  drop  to  4&o  In  1973 

In  1972,  the  CEA  spent  $2,943,000.  The 
agency  is  requesting  a  $62,000  decrease  this 
year,  and  a  drop  to  $2,848,000  lor  1974. 

As  the  size  of  the  market  has  grown,  CEA 
employes  have  been  swamped  in  paperwork — 
they  expect  this  year  to  process  more  than 
700,000  reports  which  the  law  requires  the 
bigger  commodity  traders  to  file  daUy  and 
weekly. 

This  has  left  less  time  for  Investigations  of 
possible  market  abuses.  The  CEA  has  reduced 
the  scope  of  so-caUed  "trade  practice"  inves- 
tigations, changing  them  from  market-wide 
Investigations  of  a  particular  commodity  to 
Investigations  of  a  single  firm's  trading  activ- 
ities. It  did  only  15  of  the  new-style  Investi- 
gations last  year. 

BtTDCET  RSQUEST 

The  CEA'S  budget  requests  for  the  next 
fiscal  year  estimate  there  wUl  t>e  no  incr«ase 
In  the  number  of  employees.  A  steady  de- 
crease in  the  number  of  adinmistra-ive  pro- 


42694 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


ceedlngs  It  Initiates  In  cases  of  suspected  law 
violations  is  also  foreseen. 

Lon^lxne  Washington  observers  agree  It 
Isn't  clear  how  a  federal  regulatory  agency 
can  determine  In  advance  how  many  actions 
It  will  undertake,  unless  the  agency  has  de- 
termined in  advance  to  hold  its  activities  to 
an  arbitrary  level. 

Caldwell  has  reported  his  agency  In  recent 
years  has  doubled  the  number  of  customers' 
accounts  covered  In  CEA  audit  programs,  and 
he  said  the  unit  Increasingly  is  taking  steps 
to  prevent  market  abuses  by  issuing  warn- 
ings to  traders  suspected  of  engaging  In  price 
manipulation. 

In  order  to  giiard  against  traders  manlpu- 
^TStlng  market  prices,  or  "cornering"  the  mar- 
ket in  any  one  commodity,  the  CEA  has 
established  limits  on  the  amount  of  the  com- 
modity any  one  trader  can  hold. 

For  example,  a  trader  Is  limited  to  buying 
or  selling  three  million  bushels  of  corn  In  one 
day  Also,  he  Is  not  allowed  to  hold  for  any 
length  of  time  contracts  representing  more 
than  three  million  bushels.  And  anyone  who 
buys  or  sells  contracts  representing  more 
than  200.000  bushels  of  soybeans  must  report 
this  to   the  CEA. 

aXCKNT   SCHEMES 

But.  according  to  one  commodities  ex- 
change official,  some  recent  prlce-manlpula- 
tlon  schemes  have  gone  undetected  for 
months  because  many  persons  working  to- 
gether have  kept  their  purchases  Just  below 
the  reporting  limits.  He  agreed  that  a  major 
CEA  trade-pracUce  Investigation  is  the  only 
way  to  Insure  against  such  activities.  But  It  U 
this  type  of  investigation  the  CEA  has 
dropped  because  of  staff  shortages. 

Donald  L  Tendlck.  the  CEA's  deputy  re- 
gional director  here,  said  that  although  "we 
can't  ever  catch  everything.  I'm  pretty  com- 
fortable with  the  system  we  have." 

Terullck,  who  has  been  employed  by  CEA 
since  1964.  aald  he  doubts  the  Chicago  office 
with  Its  87  employes  misses  manv  price  ma- 
nipulations or  other  attempted  illegal  prac- 
tices at  the  Board  of  Trade  and  Mercantile 
Bzcbange. 

To  a  large  extent,  he  said,  the  CEA  reUes 
on  records  required  to  be  filed  by  large 
traders  showing  their  holdings  in  various 
commodities. 

KO     PtOBX     or     WHEAT     SAI.E8 

According  to  Tendlck.  the  CEA  did  no 
trade-practice  Investigation  of  wheat  sales  at 
the  time  of  the  recent  huge  export  deal  with 
the  Soviet  Union.  This  was  despite  reports 
that  some  persons  or  companies  had  advance 
tips  about  the  sale  and  had  used  the  com- 
modities markets  to  make  large  profits 

Said  one  observer  here  with  longtime  com- 
modities trading  experience:  'With  the  mar- 
ket going  like  It  was.  you  know  somebody 
bad  to  know." 

Tendlck  concluded  that  "gtven  the  re- 
sources we  have,  we're  doing  an  adequate 
Job"  But  he  acknowledged  that  the  agency 
could  us©  more  Investigators  and  then  would 
"perhaps  find  more  violations" 

Tendlck  and  other  CEA  officials  confirmed 
that  most  CEA  investigations  are  a  restilt 
of  complaints  from  traders  and  from  public 
investors  in  commodities. 

Tendlck  said  that  before  starting  an  inves- 
tigation, the  87-member  Chicago  office, 
largest  in  the  CEA.  clears  such  an  action 
with  officials  In  Washington. 

Herbert  Sheldy.  a  vice-president  of  the 
Chicago  Board  of  Trade  said  "The  regulation 
of  commodities  is  real  primitive  compared 
to  the  securities  Industry" 

Sheldy.  the  board's  director  of  compliance. 
was  a  securities  dealer  before  Joining  the 
Board  of  Trade 

He  said  of  the  CKA:  "Theyre  not  as  per- 
vasive as  is  the  Security  and  Exchange  Com- 
mission (SBC)."  which  regulates  the  coun- 
try's stock  exchanges. 


"sura      AOKNCT" 

The  Board  of  Trade's  Sheldy  said  there 
have  been  proposals  to  take  the  CEA  out  of 
the  Agriculture  Department,  turn  It  "Into  a 
super  agency,  like  the  SEC,  and  give  It  au- 
thority to  regulate  all  commodities." 

Currently,  the  CEA  does  not  regulate  trad- 
ing In  the  so-called  "world"  commodities,  in- 
cluding coffee,  silver,  cocoa,  platinum,  ply- 
wood and  sugar. 

There  have  been  mounting  reports  of 
abuses  in  trading  of  those  commodities,  and 
dealers  don't  have  to  follow  disclosure  pro- 
cedures or  observe  capital  reserve  require- 
ments. 

Caldwell  met  last  week  with  some  100  In- 
dustry leaders  to  discuss  the  growing  prac- 
tice of  selling  options  enabling  customers  to 
minimize  the  risks  of  buying  and  selling  in 
the  "world"  commodities.  The  customers  pay 
a  premium  for  the  option,  and  the  dealer  who 
sells  It  assumes  part  of  the  risk. 

But  there  have  been  reports  of  unscrupu- 
lous dealers  refusing  eventually  to  honor  the 
options  they  have  sold,  and  of  dealers  with  so 
little  financial  backing  that  they  are  un- 
able to  pay  their  customers  who  may  have 
profited  In  a  futures  trade. 

ASK  REGULATION  Or  OPTIONS  TRADING 

Caldwell  said  most  of  the  Industry  lead- 
ers called  for  federal  regulations  of  options 
trading,  but  were  unable  to  agree  on  how  It 
should    be   done 

Sheldy  said  Industry  officials  believe  the 
commodities  exchanges,  rather  than  the  CEA. 
should  be  given  authority  to  police  trading 
In  the  "world"  commodities. 

•The  Industry  l>elleves  we'd  rather  do  It 
ourselves. "  he  said,  "because  the  Industry 
would  not  be  as  inpractlcal  and  rigid  as  a 
legal  standard  might  be." 

There  Is  little  question  that  most  com- 
modities-trading professionals  would  like  the 
CEA's  regulatory  activities  to  conUnue  at 
the  present  level. 

Similarly,  among  the  CEA's  strongest  de- 
fenders are  persons  connected  with  trading 
commodities. 

Richard  Teweles.  a  Los  Angeles.  Calif.,  com- 
modities-market analyst,  agreed  that  the 
CEA  Is  "obviously  understaffed,"  but  he 
added.  "I'm  also  very  Impressed  with  them 
They  go  at  Just  about  the  rate  a  government 
bureau  should  go.  They're  not  like  the  SEC, 
or  the  ICC  (Interstate  Conmierce  Commis- 
sion). The  railroads  hate  the  ICC.  and  the 
sectirltles  Industry  hates  the  SEC  I  don  t 
know  of  anybody  In  our  business  that  dis- 
likes the  CEA " 

Teweles  believes  government  agencies,  as 
they  get  bigger,  ""go  from  a  necessary  evil. 
which  I  regard  all  government  bureaus,  to 
the  point  of  being  like  a  Russian  commis- 
sar.'" 

He  continued.  "But  the  CEA  Is  one  of  the 
few  I  think  Is  In  Just  about  the  right  posi- 
tion." 

[Prom  the  Des  Moines  Register.  Feb  22.  1973] 
Loose  Regulation  or  CoitMoorrT  Marts 

(By  Clark  MoUenhoff  and  James  Rlaser) 

Washinoton,  DC. — There  are  few  clubs 
that  could  provide  a  better,  more  congenial 
atmosphere  for  big  commodity  traders  to 
operate  in  than  the  one  which  exists  under 
the  approving  eye  of  the  VS.  Agriculture  De- 
partment. 

The  d0partment"s  Commodity  Exchange 
Commission  (CEO  and  Its  operations  arm, 
the  Commodity  Exchange  Authority  (CEA). 
nin  a  loose  regulatory  structure  that  per- 
mits the  big  traders  in  the  grain  and  livestock 
markets  to  pretty  much  regulate  themselves 

The  "club"  members  at  Chicago.  HI  .  Kan- 
sas City.  Mo.,  and  other  commodity  futures 
exchanges  are  permitted  to  sit  as  Jurors  and 
judges  In  cases  where  one  of  their  colleagues 
has  been  accused  of  Illegal  or  Improper  con- 
duct under  rtiles  which  exchange  members 
themselves  have  set. 


Tliey  also  set  minimum  commission  fe«ss 
to  be  charged  for  handling  the  buy  and  sell 
orders  of  their  Investing  customers,  although 
the  fees  admittedly  are  not  directly  related  to 
the  cost  of  the  service  A  member  who  steps 
out  of  line  and  trlee  to  charge  his  customers  a 
smaller  commission  may  find  himself  disci- 
plined by  his  fellow  club-members 

COURT    DECISION    CAUSES    TURIIOU. 

A  recent  D.S.  Supreme  Court  decision, 
ordering  an  exchange  member  who  allegedly 
was  defrauded  of  his  exchange  membership 
to  seek  relief  from  the  Commodity  Exchange 
Commission,  has  thrown  things  Into  some- 
what of  a  turmoil 

Justice  William  O.  Douglas,  dlseentlng  In 
the  6-to-4  high  court  decision  Jan.  9.  ob- 
jected that  It  was  a  'futile  gesture"  to  direct 
plaintiff  Thomas  Rlccl  to  the  CEC  "when  the 
agency  has.  by  its  Inaction,  already  .shown 
every  Indication  of  sanctioning  the  alleged 
violation.  ...  We  are  requiring  the  petitioner 
to  seek  from  the  regulator  an  admission  of 
their  failure  to  regulate' 

The  CEC.  made  up  of  the  secretary  of  ag- 
rlcxilture.  the  secretary  of  commerce,  and  the 
attorney  general,  has  no  staff  and.  according 
to  an  Agriculture  Department  official,  "meets 
no  more  than  once  a  year."" 

The  commission  has  generally  left  most  of 
the  regulatory  work  In  the  hands  of  the  re- 
lated agency— the  CEA— which  Is  headed  by 
administrator  Alex  C.  CaldweU,  Under  Cald- 
well the  CEA  refers  many  complaints  over 
to  the  exchanges  themselves  for  action. 

Since  the  exchange  committees  handling 
such  complalnu  are  made  up  of  Important 
traders  who  sit  as  members  of  the  exchange, 
the  regulatory  system  breaks  down,  according 
to  some  critics,  because  it  results  In  the  regu- 
lators and  regulated  being  one  and  the  same. 

"The  CEA's  feeling  toward  regulation  of 
what  has  grown  into  a  •200-bUllon-a-year 
business  Is,  "If  each  exchange  polices  Itself, 
that's  fine."  a  former  exchange  official  said. 

CEA  chief  Caldwell  contends  "the  ex- 
changes do  a  good  Job.""  but  admits  ""they 
don't  have  large  enough  Investigative  staffs 
to  police  themselves  as  well  as  they  should." 

Rather  than  solve  the  problem  by  beefing 
up  the  CEA  sUff.  Caldwell  prefers  to  seek 
more  self- regulation  by  the  exchanges. 

CALDWELL:     "1   AIC    FOR    SELT-POLICINO" 

"I'm  all  for  self-policing  as  far  as  it  can 
go.""  he  explained.  "I'm  not  a  great  one  to 
spend  public  funds." 

WUllam  Phelan.  vice-president  in  charge 
of  audits  and  Investigations  at  the  Chicago 
MerchantUe  Exchange,  like  most  commodities 
market  offlcUls.  agrees  with  the  approach 
taken  by  Caldwell 

Phelan  Is  happy  the  CEA  "In  effect  has 
relinquished  Its  power  to  govern  the  mini- 
mum financial  requirements'"  of  commodity- 
futures  brokerage  houses. 

Herbert  Sheldy.  vice-president  of  the  Chl- 
of  commodities  is  real  primitive  compared  to 
cago  Board  of  Trade,  noted  that  "Regulation 
regulation  of  the  securities  mdustry" 

Sheldy.  a  former  securities  broker.  Is  direc- 
tor  of   compliance   for   the   Board   of  Trade. 

He  noted  that  "John  Q.  Public  Is  getting 
out  of  the  stock  markets  and  into  our  com- 
modities market  more  and  more.  It  means 
our  entire  Industry  is  changing,  and  we  (the 
exchanges)    must  change,  too." 

But  Sheldy  agrees  with  most  commodity 
Industry  officials  that  these  changes  should 
not  be  dictated  by  the  government.  "The  in- 
dustry should  be  allowed  to  make  the 
changes."'  he  said 

tWOICATES  CREED   OF   INVESTORS 

Commodities  analysts  Charles  Harlow  and 
Richard  Teweles  of  Los  Angeles.  Calif.,  said 
of  the  rush  of  small-time  Investors  Into  buy- 
ing such  things  as  soybean  and  pork  belly 
futures: 

"It  Indicates  a  greediness  on  the  part  of 
people  to  make  money  fast;  It  Indicates  they 
have  more  money  to  spend,  and  it  indicates 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42695 


that  many  people  are  dissatisfied  with  the 
relatively  poor  stock  market  results  In  recent 
years.  If  you  win  In  commodities,  you  can 
win  big."' 

This  was  illustrated  last  week  at  the 
Chicago  Board  of  Trade  If  a  speculator  had, 
for  example,  put  up  the  »600  margin  required 
to  buy  a  single  contract  for  60.000  pounds  of 
soybean  oil  on  Peb.  12.  he  could  have  sold 
it  at  noon  the  following  day  and  turned  a 
profit  of  1 1.300. 

TAKES    DIVES 

But  commodity  futures  prices  also  have  a 
way  of  taking  sickening  dives,  and  analysts 
Harlow  and  Teweles  contend  their  research 
Indicates  the  'ordinary  little  guy"  who 
speculates  loses  "about  98  per  cent  of  the 
time." 

Harlow  and  Teweles  believe  that  If  the 
CEA  gained  strength.  It  could  stifle  the  com- 
modities Industry. 

But  seven  years  ago  the  General  Account- 
ing Office  ( GAO ) ,  which  Is  the  congressional 
Investigating  and  auditing  agency,  called  the 
CEA's  regulation  of  the  then  $60-bUllon-a- 
year  commodity  markets  "Inadequate.""  The 
CEA  was  not  making  enough  investigations 
to  curb  price  manipulations  and  other 
abuses,  was  not  policing  the  exchanges  to 
Insure  that  they  were  enforcing  their  own 
rules,  and  was  not  doing  anything  about  pos- 
sible abuses  and  confilcts-of -Interest  by 
traders  who  are  permitted  to  gamble  In  com- 
modities themselves  as  well  as  for  custom- 
ers'  accounts.  GAO  complained. 

The  size  of  the  CEA  staff  and  the  extent  of 
Its  regulatory  effort  has  changed  little  since 
the  time  of  the  GAO  rejxjrt. 

The  set-up  at  the  Chicago  Board  of  Trade, 
where  much  of  the  nation's  corn,  wheat  and 
soybeans  Is  bought  and  sold  through  com- 
modity futures  contracts,  provides  an  illus- 
tration of  the  exclusivity  of  the  commodity- 
trading  fraternity. 

The  1.400  members  of  the  Board  of  Trade, 
which  has  a  45-story  building  In  Chicago's 
loop,  hold  membership  seats  which  are  cur- 
rently valued  at  about  $30,000  (At  the 
Mercantile  Exchange,  which  has  500  members. 
a  seat  costs  about  «100,000  )  No  one  can  buy 
a  membership  unless  he  first  proves  his  fi- 
nanlcal  responsibility,  is  sponsored  by  two 
current  members,  and  Is  okayed  by  a  secret 
vote  of  the  Board  of  Trade  directors. 

SUBSTANTIAL  BEN  Em's 

Once  he  is  admitted  to  the  "club,"  the 
benefits  are  substantial.  He  gains  admission 
to  the  exchange  floor,  where  he  can  take 
advantage  quickly  of  subtle  Indications  of 
price  changes. 

As  a  floor  broker,  he  may  work  for  cus- 
tomers who  want  to  buy  and  sell  commod- 
ities, or  he  can  trade  in  commodities  hlmse;f. 

One  veteran  floor  broker  estimated  that 
"If  a  guy  Just  handles  cxistomers  accoun'jj.  he 
can  make  $45,000,  $50,000.  $60,000  a  year.  If 
he  trades  for  himself,  too.  there's  io  limit." 

RtFni   1  1  1  CASES  TO  KXCHANGES 

The  extent  to  which  the  CEA  relies  on  the 
commodities  exchanges  to  police  themselves 
is  indicated  by  the  fact  that  the  agency  last 
year  referred  111  possible  violations  to  the 
exchanges  for  action. 

CEA  deputy  regional  director  Donald  L. 
Tendlck  said  exchanges  must  report  back  to 
CEA  as  to  what  action  they  have  taken  on 
referrals  CEA  can  object  If  it  thinks  the  ex. 
change  has  been  too  lenient,  but  such  objec- 
tions are  "unusual,"  he  admitted. 

The  1965  GAO  report  scolded  tho  CBIA  In 
this  area,  saying  the  agency's  Infrequent  re- 
view of  exchange  records  leaves  the  CEA 
"unable  to  satisfy  itself  Independently  f\s  to 
the  adequacy  of  Investigations  by  the  con- 
tract markets   lexhanges)." 

This  "faUure."  as  the  GAO  termed  It.  Las 
"reduced  the  effectiveness  of  CEA's  admin- 
istration and  enforcement  of  the  provisions 
of  the  act." 


RECORD     KEEPING 

With  the  huge  Jump  in  the  size  of  the 
commodity  markets  since  the  1966  GAO  re- 
port, the  CEA  seems  no  better  off  now  as 
far  as  keeping  track  of  exchange  actions. 

However.  Mercantile  Exchange  official 
Phelan  Insists  his  15-member  staff  Is  able  to 
keep  tabs  on  the  dealings  of  the  500  ex- 
change members. 

ATTENTION    FOCUSED    ON    COMMISSION 

The  recent  Supreme  Court  decision  direct- 
ing Mercantile  Exchange  member  Thomas 
Rlccl  to  take  his  fraud  complaint  to  the 
Commodity  Exchange  Commission  focused 
some  unaccustomed  attention  on  that  mori- 
bund body. 

According  to  law,  the  three-member,  cabi- 
net-level CEC  is  required  to  set  speculative 
limits  on  the  amounts  of  trading  that  may 
be  done  by  any  person  In  commodity-futures 
contracts. 

It  also  Is  to  hold  hearings  on  appeals 
from  any  board  of  trade  which  has  been  de- 
nied status  as  a  legal  exchange,  and  Is  au- 
thorized to  suspend  exchanges  for  failure 
to  enforce  their  rules  In  addition,  the  secre- 
tary of  agriculture,  who  is  a  member  of 
the  commission,  is  given  broad  Individual 
powers  to  prescribe  trading  practices  and 
prevent  manipulation  and  other  abuses. 

In  practice,  most  of  these  activities  have 
been  delegated  to  the  CEA  headed  by 
Caldwell. 

The  Supreme  Court  majority  In  the  Rlccl 
case  said  the  petitioner  would  have  to  go  to 
the  commission  for  a  ruling  as  to  whether 
the  deprivation  of  his  exchange  member- 
ship Involved  a  violation  of  exchange  rules.    , 

Rlccl  contends  he  bought  a  membership 
on  the  Chicago  Mercantile  Exchange  In  1967. 
using  funds  he  borrowed  from  Slegel  Trad- 
ing Co.  He  also  routinely  signed  a  blank  form 
authorizing  transfer  of  his  membership  to 
someone  else  in  the  event  he  did  not  repay 
his  loan. 

Rlccl  alleges  Slegel  and  the  Chicago  Mer- 
cantile Exchange  conspired  In  violation  of 
federal  antitrust  laws  to  defraud  him  of  his 
seat  by  signing  the  transfer  of  his  member- 
ship over  to  Slegel.  He  said  the  $18,000  which 
Slegel  owed  him  for  brokerage  fees  exceeded 
the  amount  he  owned  on  the  loan,  and  that 
Slegel  had  no  lien  against  his  membership. 

The  high  court  said  the  complaint  should 
be  dealt  with  by  the  commission  because  It 
Is  "especUlly  famUlar  with  the  customs  and 
practices  of  the  Industry  and  of  the  unique 
marketplace  involved  in  this  case." 

DISSENTERS    HIT    POWER    OF    EXCHANGE 

But  the  four  dissenters.  In  addition  to 
Douglas'  comments  that  the  CEC  Is  not  like- 
ly to  declare  Itself  a  \&x  regulator,  argued 
that  the  unit  does  not  have  the  legal  jxjwer 
to  rule  on  Riccl's  complaint  of  an  antitnist 
conspiracy.  That  could  be  done  only  by  the 
courts,  they  pointed  out. 

The  dissent  also  noted  that  "although 
the  commission  and  the  secretary  (of  ag- 
riculture) have  some  general  policing  du- 
ties, day-to-day  regulation  has  been  large- 
ly left  to  the  Industry  Itself.  Where,  as  here, 
the  Industry  Is  given  the  power  to  control 
Its  own  affairs,  it  Is  particularly  Important 
to  make  certain  that  this  power  Is  not 
abused  for  the  purpose  of  ellmlnaUng  com- 
petition." 

Caldwell  expressed  no  concern  that  the 
Rlccl  case  will  foul  up  the  regulatory  proc- 
ess. But  those  who  have  undertaken  new 
legal  efforts  to  stop  anticompetitive  prac- 
tices at  commodity  exchanges  and  stock 
exchanges  are  worried  that  It  is  a  setback 
for  them. 

One  such  effort  to  break  up  the  "club" 
atmosphere  and  restore  competition  to  the 
commodity  exchanges  deals  with  the  com- 
modity brokers"  power  to  set  minimum 
commission  fees  they  charge  the  investing 
public. 


CXIX- 


-2689— Part  33 


In  December,  1971.  the  U.S.  Justice  De- 
partment's antitrust  division  filed  suit 
against  the  Chicago  Board  of  Trade,  whose 
minimum  rate  structure  now  requires  com- 
modity brokers  to  charge  $25  to  $30  for  ex- 
ecuting a  customer's  purchase  or  sale  of  a 
grain  futures  contract. 

At  about  the  same  time,  a  firm  of  Phila- 
delphia. Pa.,  law>-ers  filed  an  antitrust  ac- 
tion on  behalf  of  all  people  In  the  U.S.  who 
buy   and   sell   commodity   futures. 

Named  as  defendants  were  all  the  com- 
modity exchanges  in  the  country,  which, 
according  to  the  petition,  have  entered  Into 
"an  unlawful  combination  and  conspiracy" 
to  set  brokerage  commission  fees  at  "a  non- 
competitive and  Inflated  level."" 

In  the  Justice  E>epartment  case,  federal 
district  Judge  Richard  B.  Austin  asked 
CEA  administrator  Caldwell  to  do  a  study 
for  him  on  the  impact  of  abolishing  min- 
imum fees  and  restoring  competlUon  among 
brokers. 

AGREED  TO  STUDT 

Caldwell  agreed  to  do  so.  but  said  he  would 
not  be  able  to  say  whether  the  fixed  com- 
mission rates  are  reasonable,  because  "the 
commodity  futures  business  has  not  had  to 
report  on  Its  cost  of  doing  business  and  Jus- 
tify the  reasonableness  of  levels  of  commis- 
sions In  the  past,"" 

Like  the  traders  themselves,  CaldweU  and 
the  CEA  had  assumed  there  was  nothing 
wrong  with  the  brokers  being  aUowed  to  set 
their  fees  and  punish  those  who  tried  to 
charge  less. 

In  fact,  the  attorney  for  the  Board  of 
Trade  told  the  court  that  CaldweU  "requires 
us  to  enforce  our  minimum  commission  rules. 
He  fires  off  a  letter  to  us  and  says,  "Say.  I 
understand  so-and-so  out  In  Kansas  City  Is 
violating  your  rules,  and  I  want  you  to  In- 
vestigate that  and  Insure  that  it  Is  complied 
with,'  " 

EXCHANGES  ADOPT,  ENFORCE  RULES 

The  testimony  illustrates  the  cozy  atmos- 
phere that  has  grown  up  between  the  big 
traders  and  their  regulators  at  the  CEA.  The 
exchanges  can  adopt  nearly  anv  rule  they 
please,  as  long  as  it  is  not  in  direct  conflict 
with  the  Commodity  Exchange  Act.  Then, 
once  the  rule  is  adopted,  the  (TEA  requires 
that  the  exchange  enforce  the  rule,  without 
regard  to  whether  the  rule  is  really  in  the 
public  interest. 

•"The  CEA,"  said  the  Board  of  Trade's  Shel- 
dy, "Insists  that  an  exchange  observe  its  own 
niles.  and  It  isn't  too  Interested  In  what 
those  rules  are.  Just  so  long  as  they  are  con- 
sistent with  federal  regulation." 

CaldweU  completed  his  report  to  the  court 
last  August,  and  was  forced  to  conclude  that 
the  public  would  be  better  off  if  minimum 
commission   fees  were  outlawed. 

AUowlng  commodity  brokers  to  compete  In 
the  services  they  offer  and  the  commissions 
they  charge  would  result  In  "a  net  reduction 
In  commission  charges  paid  by  customers." 
he  tcrid  the  court. 

"The  trading  public  would  benefit  genera- 
aUy  because  charges  would  be  more  closely 
related  to  the  costs  Involved  in  servicing  an 
account."  he  said 

Caldwell  also  said  minimum  fees  "are  not 
now  necessary,  nor  wlU  they  In  the  foresee- 
able future  be  necessary,  to  achieve  the  ob- 
jectives of  the  Commodity  Exchange  Act.  " 
The  administrator  added  that  the  minimum 
fee  arrangement,  on  the  other  hand,  has  not 
hindered  CEA's  work,  and  urged  that  if  the 
minimum  fees  are  banned  the  Industry  be 
given  "a  reasonable  period  of  time  In  which 
to  develop  their  marketing  strategy,  pricing 
schedules  and  operating  procedures  before 
any  change  is  made." 

The  Board  of  TYade  is  opposing  any  change 
and  has  argued  that  the  minimum  commis- 
sion schedules  It  has  used  since  1919  have 
been  "essential  "  to  the  development  of  "effec- 


I_'fi96 


CX)NGR£SSIONAL  RECORD  —  SENATE 


December  20,  197 a 


ti'.e  and  efflclent  m*rketa  for  futures  trad- 
ing." 

Elimination  of  minimum  fe«s,  the  Board 
argues,     ■would    entaU    the    rUk    of   serious 
adverse  repercussions  on  the  Industry.' 
I  Prom  the  Des  MolQea  Register.  Feb  23.  1973 1 

CKA,  JuvcB  Pah.  to  Acacx 
(By  Clark   Mollenhoff  and  Oeorge   Anthan) 

Kansas  Crrr.  Mo  — Samuel  Gordon  has 
moved  steadily  upward  in  the  US  Com- 
modity Exchange  Authority  (CEA)  despite 
hla  Involvement  in  the  agency  s  falltire  to 
protect  one  small  trader  from  being  vic- 
timized by  some  commodities-market  pro- 
fessionals. 

Gordon  ts  the  CEA  s  »27.000-a-year  are* 
director  here,  but  a  decade  ago  he  was  an 
employe  in  the  ageneyg  office  In  Chicago.  Ill 
There,  an  elderly  Austrian  Immigrant  had 
been  telling  Jtiat  about  anybody  who  would 
Usten  that  he  had  been  Ulegally  deprtv«d  of 
his  livelihood 

Bernard  Rosee.  now  74.  had  been  a  member 
of  the  Chicago  Board  of  Trade,  and  a  floor 
trader  in  commodities  there 

But  Rosee  was  different  from  the  vast 
majority  of  Uislders  who  operate  the  na- 
tions commodities  markets,  a  taoO-blUlon 
industry  that  Is  growing  by  20  per  cent  a 
year 

TOLD    CONGRESS    OF    ICANIFULATIONS 

Since  the  middle  1940s.  Rosee  had  been 
telling  Congress  of  deceptive  practices  by 
certain  officials  of  the  VB.  Agriculture  De- 
partment, and  oif  efforts  by  big  traders  to 
manipulate  commodities  markets  at  the  Chi- 
cago Bc«rd  of  Trade 

As  a  result.  Roaee  had  a  few  friends  In  the 
Agriculture  Department  and  in  the  com- 
modities trading  establishment. 

••There  Isn't  any  question  but  that  a  lot 
of  people  could  hardly  wait  to  get  rid  of 
him."  said  one  market   insider  of  Rosee. 

By  the  early  1960s.  Rosee  had  been  de- 
frauded of  thousands  of  dollars  and  he  had 
lost  his  seat  on  the  Chicago  Board  of  Trade 
He  thus  lost  hu  means  of  making  a  living 

Through  all  this,  the  Agriculture  Depart - 
ments  CZA  maintained  consistently  that 
there  was  no  evidence  Rosee  was  the  victim 
of  any  illegal  activities 

This  oonduston  was  reached  by  Gordon, 
and  afflnned  by  his  superiors.  Including  CEA 
administrator  Alex  Caldwell   In  Washington 

AWAROrO    $700,000 

It  w»s  left  to  an  nunols  SUte  Court  to 
Tlndlcate  Rosee.  and  to  award  him  $700,000 
m  damages,  with  the  Judge  branding  his 
opiponents  as  "thoroughly  dishonest  " 

The  Rosee  case  which  has  dragged  on  for 
more  than  a  dozen  years,  is  perhaps  the 
most  ?larine  example  of  the  CEA*  reluctance 
to  tackle  influential  members  of  the  Indus- 
try It  Is  supposed  to  regulate 

It  also  shows  how  the  commodity  ex- 
changes' dlaclplinary  committees,  made  up 
entirely  of  exchanee  members,  conduct 
Star  Chamber"  proceedings  in  which  an 
accused  like  Rosee  is  denied  the  basic  rights 
of  due  process  which  he  would  recen-e  in  a 
oourt  of  law. 

CLAIMS    aOSXE'S    CHASGKS    L.VVALID 

Gordon,  during  an  interview  m  his  office 
here,  refused  to  discuss  the  Rosee  case,  ex- 
oe»'t  to  say  that  he  Investigated  Rosee's 
charges  and  decided  they  weren't  valid. 

He  would  not  discuss  his  reasons  for  the 
decision,  nor  would  be  explain  why  the  CEA 
failed  to  use  information  in  its  poMesV.on 
that  may  have  proved  that  a  Chicago  broker- 
age Arm  n-as  defrauding  Rosee 

Rosee  had  charged  that  Gordon.  Albert 
Klbby.  a  former  Chicago  CEA  employee  and 
now  of  Waukon.  la  .  and  other  agency  offi- 
cials took  part  in  the  conspiracy  to  drive  him 
out  of  busl.-^ess 

But  CEA  chief  Caldwell  maintains  In 
Washington  tliat  "our  actions  In  this 


have  been  proper  all  along."  Caldwell  defends 
his  promotion  of  Gordon,  saying  the  Kansan 
City  area  director  and  Klbby  "did  a  profes- 
sional Job"  In  the  Rooee  case 

An  examination  of  the  case  leaves  serious 
doubts 

The  case  against  Rosee  came  to  light  In 
19«1.  when  the  Chicago  Board  of  Trade  took 
away  his  membership,  depriving  him  of  his 
commodities  trading-floor  privileges,  and  re- 
ducing him  to  accepting  welfare  payments. 

TSAOINO  ACCOtTNT 

Roaee's  commodities  trading  account — the 
records  of  what  he  bought  and  sold  and  his 
profits  and  losses  on  these  trades — was  being 
bandied  by  the  brokerage  firm  of  Baggot 
and  Morrison. 

Baggot  and  Morrison  contended  that  Roaee 
owed  them  substantial  amounts  of  money, 
saying  Rosee  had  been  taking  losses  In  his 
commodities  trading,  and  that  the  firm  was 
using  it  own  money  to  make  up  these  losses 
ALLIGATIONS  A  rompaisx 

Rosee  said  these  allegations  took  him  by 
surprise,  that  he  bad.  in  fact,  been  making 
profitable  trades  in  the  commodities  market. 
Rosee  said  and  examination  of  hla  account. 
Ihs  record  of  which  was  maintained  at  the 
Baggot  and  Morrison  offices,  would  clearly 
show  this  was  true  He  said  CKA  records  re- 
quired by  law  to  prevent  the  kind  of  abuse 
he  was  facing  would  back  up  his  position 

But  Baggot  and  Morrison  presented  to  the 
Chicago  Board  of  Trade  a  set  of  recorxls  that 
showed  Rosee  owing  them  money  Rosee 
charged  the  records  were  not  of  his  account. 
He  said  they  were.  In  fact,  records  of  the 
Arm's  own  money-losing  dealings. 

Since  the  Star  Chamber  "  proceedings  In 
which  Rosee  lost  his  seat,  these  facts  have 
emerged  and  are  today  unchallenged: 

1.  In    November.    19«3.   Rosee   and   his   at- 
torney. Melvln  Brandt,  c      ght  the  office  man- 
ager for  Baggot  and  Morrison  cutting  onion- 
skin   pages    from   commodity   trading    books 
that  are  required  by  law  to  be  kept  and  reU. 
lalned.    These    records    that    office    managviT 
Harris  Haywood  now  admits  he  destroyed  are\ 
required  to  be  retained  for  a  five-year  mlnl-\ 
mum    period    by    Commodity -Exchange   Au- 
thorlty  rules  and  by  rules  of  the  Board  of 
Trade  for  use  by  authorities  In  connection 
with  Investigations. 

2.  Within  a  fews  days  of  finding  Haywood 
removing  pages  from  the  trading  book  in  the 
crucial  period.  Rosee  and  his  lawyer  told 
CEA  Investigators  CK>rdon  and  Klbby  of  the 
Incident  A  short  time  later  they  also  In- 
formed CEA   boas   CaJdweU    In   Washington 

3.  Gordon  and  Klbby  Investigated  the  In- 
cident and  reported  to  Caldwell  that  there 
was  nothing  to  Rosee  s  complaint  on  this 
or  on  his  general  charge  of  a  Board  of  Trade 
conspiracy  to  frame  him  Rosee  retorted  that 
CEA  officials  were  Involved  In  the  conspiracy 
because  examination  of  trading  records  would 
further  corroborate  his  allegations  that  he 
had  been  defrauded  He  also  charged  that  a 
report  GvKdon  and  Klbby  had  submitted  to 
the  federal  court  was  "fraudulent"  and  mis- 
led the  court. 

4  CEA  boss  Caldwell  continues  to  defend 
the  Gordon -Klbby  Investigations  and  the 
subsequent  promotion  of  Gordon.  In  the  fac» 
of  Haywood's  admissions  In  court  that  he 
did  destroy  the  records  Despite  the  nitnols 
State  court  •  •  •  awart'ing  a  •700.000  ver- 
dict to  Rosee  against  the  Baggot  and  Morri- 
son firm.  Caldwell  says  he  Is  still  not  certain 
that  Roeee  was  defrauded,  and  has  not  or- 
dered a  reinvestigation  He  says  that  Baggot 
and  Morrison  may  appeal  the  verdict,  and 
with  regard  to  Haywood's  admissions  that  he 
destroyed  the  onion-skin  pages  explains: 
"The  statute  of  limitation  has  probably  run 
out  on  any  criminal  charges." 

9.  Caldwell  continues  to  refuse  to  make 
commodity  trading  records  available  to 
Rosee  that  Rosee  and  hU  lawyer  contend 
wui  prove  beyond  doubt  the  f\ill  extent  that 


be   was   defrauded    and    the   role   played   by 
CEA  and  the  Board  of  "lYade  in  covering  it  up. 

Generally.  Caldwell  denies  direct  responsi- 
bility for  the  Rosee  matter  on  grounds  that 
the  CEA  policy  Is  to  permit  the  various  boards 
of  trade  to  police  themselves,  and  to  limit 
CEA  Investigations  to  cases  of  direct  frauds 
upon  the  public. 

Rosee  contended  his  money  had  been  used 
by  the  Baggot  and  Morrison  firm  to  make  up 
Its  own  losses,  but  the  Chicago  Board  of 
Trades  Arbitration  Committee,  made  up  of 
leading  exchange  members,  ruled  against 
him.  "The  committee  took  away  his  seat  In 
order  to  sell  it  and  pay  Baggot  and  Morrison 
the  money  they  claimed  Rosee  owed  them 

Rosee.  appealed  rep>eatedly  to  Gordon  and 
other  CEA  officials  in  Chicago,  and  to  CEA 
chief  Caldwell  in  Washington,  to  make  avail- 
able for  his  defense  Its  own  records  that 
would  indicate  whether  he  was  telling  the 
truth. 

The  CEA  consistently  refused,  saying  the 
records  were  private,  and  that  the  law  forbids 
the  agency  from  revealing  the  details  of  a 
person's  trading  In  commodities 

Roaee  asked  the  CEA  itself  to  investigate. 
and  to  determine  if  Baggot  and  Morrison  had. 
Indeed,  substituted  their  own  losing  accounts 
for  Roaee's  profitable  ones. 

BAaxED  raoM  trading 

Rosee  and  his  attorney,  as  they  pursued 
their  case  over  the  years,  pointed  out  numer- 
ous times  that  at  about  the  same  time  Bag- 
got  and  Morrison  allegedly  defrauded  Rosee 
the  firm  was  being  disciplined  by  the  CEA  In 
another  case.  After  admitting  In  May.  1960. 
that  It  had  Improperly  handled  customers' 
funds  and  had  used  them  to  margin  and 
guarantee  the  trades  of  other  customers,  the 
firm  was  barred  from  commodity  trading  for 
three  months  and  Baggot's  Individual  regis- 
tration as  a  floor  broker  was  suspended  for 
30  days 

The,  CEA  assigned  Gordon  and  Klbby  to  the 
^les*e   case,   and,   Gordon   recalls,   they  con- 
cluded  that  Baggot  and  Morrison  "had  not 
violated  any  federal  laws  " 

The  CEA  remained  steadfast  In  this  posi- 
tion, even  after  Roeee  and  his  lawyers  In- 
formed the  federal  officials  of  the  incident 
Involving  the  removal  of  pages  from  the  rec- 
ord books. 

"UlrlRLT    ABStnU},"    JtTDCE    RXMARK8 

Haywood  admitted  to  Judge  Cohen  that  he 
had  removed  the  onion-skin  pages — on  which 
were  recorded  details  of  commodities  trans- 
actions. But  he  did  so,  said  Haywood,  in  order 
to  save  space  in  the  Baggot  and  Morrison 
office. 

Judge  Cohen  said  of  Ha>'wood  s  explana- 
tion "The  man  sat  for  hours  cutting  pages 
out  of  a  book  to  save  three  inches  of  space 
In  a  room  that  has  some.  oh.  360  cubic 
feet  of  space  or  more    Utterly  absurd" 

Cohen  also  was  highly  critical  of  the  Board 
of  Trades  proceeding  against  Rosee.  in  which 
Roeee  was  not  permitted  to  have  his  lawyer 
present,  or  call  witnesses,  or  examine  the 
records  that  are  supposed  to  prevent  the 
very  abuses  he  contends  he  suffered. 

Cohen  called  the  Board  of  Trade's  hearing 
In  the  Rosee  case  a  travesty, ""  and  said  the 
session  was  run  by  the  lawyer  for  Baggot  and 
Morrison. 

In  fact.  Cohen  told  the  lawyer  later.  "The 
gentlemen  you  represent  were  thoroughly 
dishonest.  "They  secreted  records.  They  sup- 
pressed records    They  altered  records  "' 

The  CEA's  Gordon  said  Rosee's  allegation 
that  the  CEA  aided  Baggot  and  Morrison 
and  the  Chicago  Board  of  Trade  In  their 
attempts  to  deprive  him  of  his  membership 
was  proved  false  because  a  US  District 
Court  had  dismissed  another  suit  brought 
by  Roeee  against  Gordon  and  Klbby. 

CLAIMS  FALSK  OOeUMXIfTS 

But  Rosee  claims  that  CEA  officials  sub- 
mitted false  documents  to  the  federal  court 
In  that  case,  and  that  the  CEA  again  refused 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


•4269 


to  turn  over  records  that  would  supp<»"t 
Rosee's  position 

In  July,  1972.  Cohen  ordpred  Baggot  and 
Morrison  to  pay  Roeee  •26  000  for  the  loss 
of  trading  privileges.  •275.000  in  lost  earn- 
ings and  •99,000  represenung  the  amount 
Roaee  contends  he  was  defrauded. 

The  Judge  also  awarded  punitive  damages 
of  •160.000  each  against  Morrison  and 
against  Haywood.  The  Baggot  and  Morrison 
firm  now  is  defunct,  but  the  Chicago  Board 
of  Trade  continued  to  allow  the  partners 
to  hold  their  memberships  and  to  enjoy  floor 
trading  privileges 

The  CEA.  despite  Cohen's  findings,  contin- 
ues to  refuse  to  take  action  In  the  case. 

Caldwell  admits  his  agency  has  done  noth- 
ing to  follow  up  the  court's  decision,  even 
though  there  Is  Mttle  question  but  that 
Cohen's  findings  point  to  criminal  activities 
In  regard  to  the  case 

"We  haven't  lagged."  says  Caldwell.  "We 
have  done  what  we  think  is  right" 

Caldwell  admits  he  has  no  way  of  knowing 
If  reports  filed  by  Gordon  and  Klbby  with 
the  federal  court  early  In  the  Rosee  case  were 
accurate,  but  he  contends  that  reports  sent 
to  him  by  his  two  employees  were  accurate. 

Gordon  has  held  his  Job  In  Kansas  City 
since  1970,  and  he  oversees  trading  at  the 
Kansas  City  Board  of  Trade,  the  Minneapolis. 
Minn  ,  Grain  Exchange,  and  at  a  federally- 
regulated  commodities  market  In  California. 

fProm  the  Des  Moines  Register,  Mar.  18, 
1973) 
Sbcrxt  U.S.  CoMMoorrT  Rzport — 1871  Studt 
Urged  More  Strict  Rules  To  Avoid  Market 

RiGGINa 

(By  George  Anthan,  James  Rlsser,  and 
Clark  Mollenhoff) 

Washington.  DC — An  Internal  govern- 
ment report  outlines  a  massive  failure  bv  the 
VS.  Commodity  Exchange  Authortty  (CEA) 
to  protect  the  public  against  manipulation  of 
commodity  futures  prices  by  professional 
traders  and  brokers. 

The  report  was  prepared  late  In  1971  by 
the  Agriculture  Department's  Office  of  In- 
spector General  (CIO)  and  has  remained 
secret  until  a  single  copy  was  delivered  a  few 
days  ago  to  a  House  appropriations  subcom- 
mittee. 

Earlier,  CEA  officials  had  refused  to  dis- 
cuss the  contents  of  the  report  with  Register 
reporters.  Also,  they  had  retfused  to  admit 
that  the  report  Is  critical  of  their  office 

The  Inspector  general  declared  that  the 
CEA  conducts  only  "'minimal  surveillance" 
of  daUy  trading  in  commodity  futures  to 
detect   and    prevent    price    manipulations. 

The  report  notes  that  protection  of  the 
public  against  efforts  by  traders  to  manipu- 
late commodity  prices  to  their  own  ben^t 
Is  of  "vital  Importance." 

"Groups  of  brokers  can  combine  their  ef- 
forts In  violation  of  trading  rules  to  effect 
dally  price  fluctuations  for  their  own  bene- 
fit." the  report  declares,  and  a  much  heavier 
hand  is  needed  In  enforcment." 

A  RegUter  InvesUgatlon  of  the  CEA's  reg- 
ulation of  commodity  futures  trading  has 
found  that  rigged  markets  In  wheat,  eggs  and 
meau  may  have  cost  the  public,  small  com- 
modity traders  and  farmers  millions  of  dol- 
lars. 

regulate  tracing 

The  CEA  Is  directed  by  federal  law  to  regu- 
late tr-iding  In  commodity  futures  at  the 
nation's  major  exchanges  In  Chicago.  111.: 
Kansas  City,  Mo.,  New  York,  N  Y.,  and  other 
cities  The  exchanges  are  operated  by  their 
members — professional  commodities  traders 
and  brokers.  These  professionals  can  trade 
for  themselves  and,  for  a  commission,  buy 
and  sell  futures  contracts  for  customers  In 
the  public 

In  his  report,  the  Inspector  general  lists 


several  specific  Instances  of  possible  market 
manipulations  where  the  CEA  took  little  or 
no  effective  action. 

Also.  Inspector  General  Nathaniel  Kosaack 
was  crltlpal  of  the  CEA  for  taking  little  ac- 
tion to  see  that  violators  were  following  its 
directives  or  to  see  that  the  commodity  ex- 
changes were  adequately  policing  themselves. 

CEA  Administrator  Alex  Caldwell  has  em- 
phasized to  Congress  that  his  agency  Is  able 
to  regulate  commodity  trading  largely  as  a 
result  of  close  Inspection  of  thousands  of 
reports  that  It  receives  dally  from  the  pro- 
fessional  traders   and   brokers 

But  the  Inspector  general  stated  that 
"some  repori,s  aere  not  received  on  a  timely 
basis  or  not  received  at  all"  and  that  "even 
though  these  conditions  occurred,  the  report- 
filing  penalties  were  not  enforced" 

Kosaack's  review  states  that  only  rarely 
were  traders  penalized  for  refusing  to  file 
reports  or  for  filing  fraudulent  reports 

The  eastern  regional  administrator  for 
CEA,  the  OIG  report  continues,  ""could  recall 
no  insttmce  where  CEA  had  Invoked  penalties 
provided  by  law  for  failure  to  file  reports 
or  file  fraudulent  reports." 

"NOT    ASStTlED" 

As  a  result,  said  the  lnsi>ector  general,  "we 
could  not  be  assured  that  surveillance  wiw 
effective  or  that  Informational  releases  accu- 
rately depicted  the  happenings  in  the  market- 
place," 

The  Inspector  general,  who  is  the  VS.  De- 
partment of  Agriculture's  (USDA)  Internal 
watchdog,  concluded : 

"CEA  did  not  make  adequate  analyses,  In- 
quiries and  conclusions  on  maturing  futures 
when  there  were  strong  Indications  of  price 
manipulation. 

"Also,  the  (commodity)  exchanges  did  not 
have  sufficiently  effective  systems  to  prevent 
price  manipulations,  comers  or  squeezes  and 
were  not  fully  concerned  with  this  responsl- 
blUty." 

The  lnsp>ector  general  recommended  that 
the  CEA  ""no  longer  rely  primarily  on  self- 
regulation  by  commodity  exchanges." 

Caldwell  has  maintained  that  his  agency 
does  not  rely  ""primarily"  on  the  exchanges 
for  prevention  of  price  manipulation  and 
other  market  abuses  He  has  emphasized  that 
he  Is  for  "'seLf-poUclng  as  far  as  It  can  go."' 

WhUe  Caldwell  and  other  CEA  officials  have 
contended  their  surveillance  of  the  commod- 
ity markets  helps  prevent  abuses,  the  In- 
si>ector  general's  rep>ort  states: 

"'CEA  officials  told  us  that  the  only  deter- 
rent they  possessed  against  market  disrup- 
tion was  to  warn  prntentlal  violators  of  the 
consequences  of  their  acts. 

"NOT  KFTECnVX" 

"This  cannot  be  considered  an  effective 
measure  to  accomplish  the  primary  mission 
under  the  Commodity  Exchange  Act  of  pre- 
venting price  manipulations,  comers  and 
squeezes." 

Market  "corners"  and  "squeezes"  occur 
when  a  trader  or  group  of  traders  gain  con- 
trol of  a  sufficient  portion  of  available  sup- 
piles  of  a  commodltv  to  artificially  raise  or 
lower  the  price  to  their  benefit. 

The  Inspector  general  stated  that  when 
"market  disruptions  "  did  occur,  the  "CEA 
did  not  consider  whether  the  exchange  should 
or  could  have  prevented"  the  disruptions, 
"nor  did  they  take  action  against  the  ex- 
change." 

Willie  the  CEA  has  legal  authority  to  re- 
quire traders  and  commodity  brokerage  firms 
to  open  their  records  to  federal  inspectors, 
the  OIG  report  states  the  agency  "did  not 
make  full  use  of  its  authority  .  .  when  com- 
plaints were  received  about  possible  manip- 
ulations or  when  CEA  records  showed  the 
possibility  of  a  market  disruption." 

If  the  CEA  had  done  this,  the  Inspector 
general  declared,  "it  could  have  resulted  in 
a  better  deterrent  than  a  phone  call  or  warn- 
ing letter." 


The  OIO  noted  that  in  Its  examination  of 
the  commodity  exchange  records.  It  found 
serious  evidence  of  noncompetitive  trading 
In  commodity  futures. 

"There  were  a  significant  number  of  trades 
between  partners  or  members  of  the  same 
firm.  Although  exchange  rules  do  not  pro- 
hibit this,  there  Is  no  assurance  that  the 
trades  were  competitive  and  that  the  trades 
were  not  'wash'  trading  used  to  manipulate 
prices  and  deceive  other  traders." 

"wash"  TRADES 

"Wash"  trades  are  fictitious  transactions 
designed  to  deceive  other  traders  and  to  have 
an  artlflcl&l  Impact  on  market  prices,  caus- 
ing them  to  rise  or  fall  without  regard  to 
supply  and  demand  considerations. 

The  inspector  general  also  found  evidence 
of  "bucketing"  of  customer  onieTs,  Under 
this  setup,  a  customer's  order  to  buy  or  se.; 
commodities  Is  never  transmitted  to  the 
trading  floor  of  the  commodity  exchange,  but 
Is  handled  in  the  offices  ol  the  brokerage  firm. 
Thus,  the  customer  has  no  assurance  that 
his  trade  was  the  result  of  competitive 
trading. 

The  Inspector  general  noted  that  "it  was 
CEA  policy  not  to  review  clearing  house 
records  for  violations  of  dally  trading  specu- 
lative limits." 

The  OIG  conducted  Its  own  audit  and  dis- 
covered In  one  caee  that  actual  trading  in 
commodities  by  three  traders  was  In  excess 
of  what  they  had  reported  to  the  CEA. 

An  Important  function  of  the  CEA  Is  to 
Insure  that  no  trader  or  groups  of  traders 
buy  enough  futures  In  a  single  commodity 
as  to  "'comer  "  or  "squeeze  the  market.  The 
traders  are  supposed  to  re-port  their  holdings 
In  a  single  commodity  to  the  CEA. 

"We  found  transactions,"  Kosaack's  report 
states,  'Involving  trades  where  the  same 
broker  was  on  both  sides  of  a  trade  and  where 
trading  between  combinations  of  brokers  ap- 
peared to  be  Intentional. 

"Also,  a  number  of  trades  were  made  where 
associated  mem^bers.  acting  as  floor  brokers 
executing  customer  ca-ders  for  other  cleax- 
ing  members,  traded  between  themselves  to 
an  extent  great  enough  to  Indicate  that  such 
trading  was  pre-arranged." 

SAICX    FIRM 

The  OIG  recommended  that  the  CEA  "pre- 
vent members  of  the  same  firm  from  manip- 
ulating customer  orders  and  prices  for 
their  own  benefit." 

The  lnsp)ector  general  noted  that  the  trade 
practice  Investigation  has  been  the  govern- 
ment's primary  tool  with  which  to  disclose 
and  discourage  abusive  practices  In  com- 
modities trading. 

His  report  emphasizes  that  whUe  the  CEA 
budget  has  included  $250,000  a  year  for  such 
investigations.  "CEA  has  utilized  only  about 
•40.000  per  year  In  this  area"  In  one  year. 
1966.  the  CEA  spent  some  »6.000  for  trade 
practice  investigations,  the  report  states 

The  inspector  general  also  was  critical  of 
the  CEA's  longstanding  policy  of  referring 
violations  to  the  commodity  exchanges  for 
action.  Last  year,  for  example,  the  CEIA 
turned  over  to  the  exhcanges  a  total  of  111 
cases  Involving  possible  violations.  Under 
the  CEA's  ofllcial  p>ollcy.  the  exchanges  were 
to  Investigate  and  take  action  against  the 
violators. 

Caldwdl  and  other  CEA  ofllclals  have  In- 
sisted that  they  closely  watch  the  exchanges 
to  Insure  that  they  adequately  Investigate 
each  case  referred,  and  that  proper  acUon  ts 
taken  against  violators. 

But  the  Inspector  general  stated  in  his  re- 
port that  some  referrals  from  the  CEA  to  the 
exchanges  are  "not  being  responded  to  by 
the  exchange" 

There  was  no  assurance,  the  report  states, 
that  exchanges  were  complying  with  aiid 
carrying  out  their  resptonsibilttles  tjnder  the 
lai 


12698 


CX)NGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


QCSSnON    CXCHANCCS 

Also,  there  waa  no  assurance  that  practices 
In  violation  of  the  law  and  federal  regula- 
tions had  been  corrected. 

In  fact,  the  report  states,  the  CKA  "only 
rarely"  questions  the  actions  taken  by  the 
exchanges  In  regard  to  a  penalty  Imposed  on 
a  violator. 

"Nor  does  the  CEA  have  an  effective  system 
of  surveillance  that  would  bring  to  Its  atten- 
tion serious  deficiencies  in  the  self-regulatory 
functioning  of  an  exchange."  the  report  con- 
tinues. 

An  official  of  one  of  the  commodity  ex- 
changes reported  to  the  Inspector  general 
that  the  exchange  Initiated  investigations 
only  If  It  received  a  complaint  from  a  trader, 
but  the  report  states; 

"It  appeared  to  us  that  small  traders  would 
be  very  hesitant  to  file  complaints  against 
some  of  the  more  prominent  members  of  the 
exchanges." 

Also,  the  report  questions  whether  the  pro- 
fessional traders  who  make  up  the  exchange 
regulatory  committees  "could  render  an  ob- 
jective decision." 

The  OIG  notes  that  of  66  possible  viola- 
tions referred  to  the  Chicago  MercmntUe  Ex- 
change In  1970  and  1971,  the  CEA  questioned 
the  exchange's  action  In  only  one  case  and 
"there  was  nothing  on  file  to  show  whether 
actions  taken  were  appropriate  In  the  other 


The   Inspector  general  listed  several 

Indicating  the  CEA  was  not  adequately  pro- 
tecting the  public  against  price  manipula- 
tions. 

CAacnx  KOTX 

The  report  notes  that  during  trading  In 
May  1970,  wheat  futures  on  the  Chicago 
Board  of  Trade,  there  were  indications  of  a 
possible  market  "squeeze"  by  CargUl,  Inc. 

The  Office  of  Inspector  General,  the  report 
states,  could  find  no  evidence  that  CEA  was 
Investigating  or  watching  the  situation. 

"The  sequence  of  events  Indicated  that 
Carglll  had  a  squeeze  on  the  market  either  In 
the  normal  course  of  their  grain  business 
or  by  taking' advantage  of  a  favorable  situa- 
tion." the  report  states.  'Tt  appeared  that 
CargUl  intended  to  hold  the  prices  of  the 
May  wheat  future  and  the  cash  commodity 
above  what  they  would  have  been  In  a  nor- 
mal free  market." 

The  report  also  notes  strong  Indications 
that  two  traders  had  gained  control  of  nearly 
all  avaUable  supplies  of  oats  late  In  1970 
and  that  the  CEA  "could  have  confirmed  sus- 
picions" of  a  price  manipulation  as  early  as 
Sept  4.  1970  by  examining  the  traders"  rec- 
ords. 

Such  an  examination  "could  have  served  as 
a  deterrent  to  Improper  action."  the  OIQ 
stated. 

Inspector  General  Kossack  also  noted  that 
on  Sept  15.  1970  the  CEA  received  a  tele- 
phone complaint  that  four  traders  on  the 
Chicago  Mercantile  Exchange  "were  collabo- 
rating In  a  squeeze  to  manipulate  the  fresh 
shell  egg  market  .    ." 

He  said  the  CEA.  again,  could  have  ex- 
amined the  traders-  records  as  a  means  of 
deterring  them. 

CLAIMS    MANTPUIJITION 

The  report  states  that  an  official  of  the 
Chicago  Mercantile  Exchange  told  the  In- 
spector general's  auditors  that  he  was  cer- 
tain there  had  been  a  manipulation  of  the 
January.  1Q70.  egg  futures 

He  was  critical  of  CEA  inaction  on  cases 
In  which  manipulation  was  evident  "  the  OIO 
statM 

In  the  area  of  CEA  surveillance  of  the  ex- 
changes, the  CEA-s  Caldwell  replied  to  the 
OIO  report  by  stating:  "We  are  doing  as 
much  a«  we  feel  we  can  with  our  limited 
reso'irces  " 

He  believes  trading  among  associated  bro- 
kers   "c-ir.    be    adequately    supervised"    and 


that  prohibition  of  such  activity  could  drive 
smaller  exchanges  out  of  business  by  re- 
ducing the  liquidity  of  the  markets. 

He  said  the  CEA  had  not  been  able  to  step 
up  Its  activities  to  insure  its  directives  to 
violators  were  being  followed  "because  of  the 
press  of  higher  priority  work,  budgetary  lim- 
itations and  personnel  cellLngs." 

Caldwell  was  criticized  by  aome  congress- 
men at  a  House  hearing  Thursday  for  not 
asking  Congreea  to  give  him  additional  funds 
and  personnel  House  Appropriations  Com- 
mittee offlciAls  emphasized  to  the  CEA  ad- 
nunlstrator  that  Congress  In  recent  years 
had  never  refused  a  request  to  Improve  reg- 
ulation of  commodity  trading. 

Monday:  Another  government  report, 
secret  since  19«6.  teUs  how  the  CEA  faUed  to 
investigate  advance  tips  on  the  spectacular 
tlSO-mUUon  salad  oU  swindle  by  Tlno  deAn- 
gells. 

(Prom  the  Des  Moines  Register,  Mar  14,  1973 1 
Secarr  USDA   Rkport  Cms  Lax  Contkol — 

SKLT-RXCtJLATTON  BT   EXCHANGES  ASSAILXD 

I  By  George  Anthan  and  James  Rlaser) 
WASHmcTON,  DC— A  stUl-secret  Agricul- 
ture Department  report  raises  serious  ques- 
tions about  the  adequacy  of  federal  regu- 
lation of  commodity  futures  trading,  and 
recommends  strong  corrective  action. 

The  report  was  written  by  the  depart- 
ment's office  of  Inspector  general  and  Is  di- 
rected to  the  Commodity  Exchange  Author- 
ity (CEA),  the  agency  responsible  for  en- 
forcing federal  commodities  trading  laws. 

Officials  of  the  VS.  Department  of  Agri- 
culture (USDA  I  have  declined  to  make  the 
report  public,  but  a  summary  is  included  In 
a  lengthy  Justification  of  the  department's 
budget  request  to  Congress. 

A     SSOO     BnXION     A     YCAa 

The  report  questions  whether  the  CEA  Is 
doing  an  adequate  Job  of  guarding  against 
price  manipulations  and  other  market  abuses 
at  the  nation's  commodity  exchanges,  where 
trading  In  various  agricultural  commodities 
has  reached  a  volume  of  $200  billion  a  year 
Also,  the  study  indicates  the  CEA  Is  rely- 
ing too  heavily  on  self-regulation  by  pro- 
fessional commodity  traders,  and  that  It  falls 
to  follow  up  Its  own  findings  of  law  violations 
to  insure  the  penalties  It  Issues  are  carried 
out. 

A  Des  Moines  Register  Investigation  of  the 
CEA's  regulation  of  commodity  futures  trad- 
ing has  found  that  rigged  markets  In  wheat, 
eggs  and  meats  may  have  cost  the  public,  the 
small  commodity  traders  and  farmers  mil- 
lions of  dollars. 

Also,  there  Is  little  evidence  that  those 
caught  In  market  manipulations  and  other 
serious  abuses  have  received  much  more  than 
a  slap  on  the  wrist  from  the  CEA. 

Some  of  Inspector  General  Nathaniel  Kos- 
sack's  findings  are  similar  to  those  publlahed 
last  month  by  The  Register. 

Kossack  has  recommended  In  his  report 
that  the  CEA : 

"Vigorously  and  promptly  Investigate  sus- 
pected market  manipulation  or  other  viola- 
tions of  the  act. 

"No  longer  rely  primarily  on  self-regulation 
by  commodity  exchanges.  '  (The  report  notes 
that  the  commodity  exchanges  lack  effective 
systems  to  prevent  manipulating  prices  and 
cornering  markets  "t 

"Improve  follow-up  system  to  make  sure 
that  traders  comply  with  warning  letters, 
stipulations  of  compliance  and  cease-and- 
desist  orders,  and  enforce  trader  reporting 
requirements" 

Kossack  said  In  an  Interview  Tuesday  that 
he  cannot  publicly  release  a  copy  of  the  re- 
port because  "we  do  not  disseminate  our 
audita  outside  of  official  channeU." 

He  said  such  audiu  are  protected  from 
public  disclosure  under  an  exception  to  the 
U.S.   Freedom  of  Information   Act.  The  ex- 


ception deals  with  reports  that  are  In  th« 
nature  of  inter-offlce  memoranda,  advisortes 
and  similar  documents,  he  said. 

Koaaack  said,  however,  that  he  will  make  a 
copy  of  the  document  available  to  the  House 
appropriations  subcommittee  that  controls 
the  CEA's  budget. 

"STILL    n»    PKOCBESS" 

Kcsaack  would  not  comment  on  the  audit's 
criticism  of  the  CEA.  He  said  he  believes  the 
agency  has  attempted  to  "take  corrective  ac- 
tion." but  said  "that  U  stUl  In  progress." 

Koaaack  told  the  House  subcommittee 
Monday  that  the  report  was  delivered  to  the 
CEA  a  year  ago,  and  that  agency  officials 
"generally  agreed  with  our  audit  findings." 

Repreeentative  Neal  Smith  (Dem..  Ia.(,  a 
member  of  the  subcommittee,  has  asked  Kos- 
sack to  inform  the  subcommittee  specifically 
of  all  steps  taken  by  the  CEA  to  Implement 
the  Inspector  general's  recommendations. 

Smith  said  Tuesday  that  the  inspector  gen- 
eral "agrees  fully  that  something  Is  wrong 
with  the  commodity  futures  trading,  that 
corrective  action  is  needed  and  that  the  CEA 
needs  to  do  some  regulating  and  not  depend 
on  the  people  In  the  buslneas  to  regulate 
themselves." 

Representative  William  Scherle  (Rep., 
la.),  also  a  member  of  the  subcommittee, 
said  following  the  meeting  with  Koseack 
Monday  that  "even  though  the  CEA  appears 
to  be  implementing  this  report,  nothing  has 
changed.  No  corrective  measures  have  been 
taken," 

Scherle  said  Kosaack  Indicated  to  the  sub- 
committee "that  he  Isnt  satisfied  with  what 
the  CEA  Is  doing." 

Scherle  requested  that  Kossack  supply  the 
subcommittee  with  a  28-year-old  report  from 
the  Inspector  general  into  the  CEA's  han- 
dling of  the  spectacular  Anthony  (Tlno)  De- 
Angells  scheme  to  corner  the  soybean  oU  and 
cottonseed  oU  markets  and  to  swindle  «150 
million  from  lea<llng  banks  and  brokerage 
houses. 

Koaaack  said  he  would  supply  both  the  De- 
Angells  report  and  the  study  of  CEA  activi- 
ties to  the  subcommittee. 

CEA  administrator  Alex  Caldwell  also  de- 
clined Tuesday  to  make  the  Inspector  gen- 
eral's report  public,  saying.  "I'm  prohibited 
from  giving  copies  out." 


(Prom    the    Des    Moines    Sunday    Register 
Mar,  4.   1973 1 

CoMuoomxB     Mauuts — On      Wat     Oxtt? 

Fa«»«m  Mat  Skip  thx  Middlzman 

(By  Clark  MoUenhofr  and  George  Anthan) 

Washington.  DC —The  major  commod- 
ities market  may  be  anachronUms  on  their 
way  to  extinction,  the  president  of  the  Na- 
tional   Com    Growers    AssocUtlon    believes 

Walter  Goepplnger  of  Boone.  la.,  said  the 
recent  frenzied  trading  of  soybean  futures  on 
the  Chicago  Board  of  Trade.  In  which  con- 
tracts  traded  for  as  high  as  »fl.81  a  bushel, 
may  have  awakened  farmers  to  Inequities  of 
the  commodities  market  system 

"Most  of  the  farmers  sold  their  beans  for 
less  than  »3.50  a  bushel."  he  said  "It  was  the 
speculators  who  made  money  In  that  market." 

Many  farmers  contend  that  wide  fluctua- 
tions In  the  soybean  futures  market— the 
range  between  recent  lows  and  highs  was 
more  thtj  MOO  a  bushel— have  resulted  In 
a  lack  of  confidence  because  no  one  knows 
how  muc.i  of  the  high  price  was  based  on 
artificial  demand  created  bv  traders  and 
how  much  was  the  result  of  bona  fide 
demand. 

Farmers  are  concerned  because  the  high 
soybean  futures  prices  have  resulted  In  soy- 
bean meal  more  than  doubling  in  price. 
Farmers  need  the  meal  as  protein  for  feed- 
ing livestock  and  broUers.  and  they  report  a 
growing  fear  of  financial  disaster  If  they  feed 
expensive  meal  to  livestock  that  could  drop 
quickly  In  price. 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42699 


All  this  could  lead  to  smaller  herds,  and 
Increased  consumer  prices. 

Goepplnger  and  some  other  agricultural 
leaders  believe  farmers  will  begin  to  organize 
huge  marketing  co-operatives  to  sell  their 
producu  directly  to  proceosors  and  con- 
sumers, bypaaslng  the  traders  at  the  com- 
modities exclianges. 

Yet  there  is  little  outward  evidence  that 
the  exchanges  could  be  fading  as  nerve  cen- 
ters of  the  American  foodstuffs  industry. 

The  Chicago  Board  of  Tn.de  operates  In  an 
Imposing  46-story  building  that  sits  astride 
I^aSaUe  Street.  The  Chicago  Mercantile  Ex- 
change recently  moved  Into  a  modernistic 
structure  and  the  Kansas  City  Board  of  Trade 
has  moved  from  Its  old  downtown  headquar- 
ters Into  a  new  building  In  the  fashionable 
Country  Club  Plaza  area. 

But,  said  Goepplnger,  "'twenty  years  ago  If 
I  had  gone  to  the  Chicago  Livestock  Ex- 
change and  looked  out  over  those  acres  and 
acres  of  pens  and  loading  docks  and  railroad 
sidings  and  buildings  and  told  somebody,  'All 
this  will  be  empty  ground  some  day,'  he 
would  have  said  I  was  crazy.  Well,  It's  all 
empty  ground  now,  because  we  have  found  a 
better  system  of  marketing  livestock." 

He  continued :  "If  the  grain  trade  and  the 
commodities  exchanges  don't  change,  they 
could  evaporate  ,so  for  as  being  a  marketing 
tool.  Oh,  they  could  move  In  some  dice  tables 
out  there  on  the  trading  floor  and  make  It 
like  Las  Vegas,  but  It  won't  involve  the 
farmer." 

Harold  Kuehn  of  Du  Quoin.  HI.,  president 
of  the  American  Soybean  Association,  agrees, 
and  said  farmers  already  are  beginning  to  ex- 
plore dealing  directly  with  huge  grain-buy- 
ing organizations  In  the  European  Common 
Market  and  Japan. 

"More  and  more  farmers  are  going  Into 
direct  sales,  bypassing  the  speculators  and 
the  traders  by  entering  into  contracts  to 
deliver  the  actual  commodities  at  some  point 
In  the  future,  for  a  set  price,"  sedd  Goep- 
plnger. 

There  are  strong  Indications  the  federal 
government  may  help  farmers  accomplish 
this.  Congree  Is  considering  proposals  under 
which  farmers  oould  form  government-spon- 
sored collective  bargaining  associations.  Com- 
psuiles  that  buy  farm  products  would  be  di- 
rected by  federal  law  to  sit  down  and  bargain 
with  the  farmers  over  prices. 

Both  backers  and  opponents  of  the  plan 
have  testified  In  Congress  that  It  could  lead 
to  the  demise  of  the  commodity  exchanges. 
Kuehn  and  Goepplnger  said  many  farmers 
are  upset  over  soaring  soybean  prices  on  the 
Chicago  Board  of  Trade,  because  much  of 
the  profit  goes  to  speculators. 

Their  view  is  reflected  by  BlU  Happel,  a 
Sumner,  la.,  farmer  and  member  of  the  Board 
of  Governors  of  the  Farmers  Grain  Dealers 
Association. 

"I  hate  to  even  talk  about  that  soybean 
Situation,"  said  Happel  during  an  interview 
prior  to  his  testimony  before  the  Senate 
Agriculture  Committee  here. 

"I  had  about  3,000  bushels  of  soybeans 
last  fall,  and  I  got  from  $3.05  to  $3.20  a 
bushel  for  them.  I  thought  that  was  a  pretty 
good  price,  and  I  needed  the  storage  for  com. 
Then.  I  see  where  the  beans  are  selling  for 
$6.80  In  Chicago.  Boy,  I'd  sure  like  to  know 
who  was  making  that  money." 
MORZ  roB  i<eal 
Happel  echoed  many  livestock  farmers  by 
voicing  concern  that  artificially  high  prices 
on  the  commodity  exchange  floor  will  re- 
sult In  farmers  having  to  pay  more  for  soy- 
bean meal  thev  r.ped  t.  ■  mis*"  livpct/H-V:  Mph. 
prices  on  the  Chicago  Board  of  Tr»d»  haw 
advanced  from  less  than  $100  a  ton  to  more 
than  $225  a  ton  within  recent  weeks. 

Said  Happel:  "Sure,  right  now  we're  feed- 
ing this  expensive  meal  to  high-priced  live- 
stock. But  what  happens  when  those  hog 
prices  drop?" 


There  are  predictions  that  the  high  prices 
for  soybean  meal,  the  major  protein  supple- 
ment m  livestock  feed,  wUl  lead  both  do- 
mestic and  foreign  users  to  try  substitutes. 

A  paper  plant  In  Finland  has  announced  It 
will  produce  an  artificial  protein  supplement 
for  livestock  feed  from  paper  pulp  waste 
products,  and  a  Japanese  chemical  firm  is  ex- 
perimenting with  mass  production  of  protein 
feed  from  oil. 

Goepplnger  believes  the  commodities  ex- 
changes must  make  major  changes  to  sur- 
vive. Among  these  changes,  he  believes,  is 
curbing  speculators  to  prevent  artificial  highs 
and  lows  In  prices  for  agricultural  commodi- 
ties. 

Representative  Neal  Smith  (Dem.,  la.), 
whose  small  business  problems  subcommit- 
tee will  conduct  an  investigation  of  the  com- 
modities markets,  said  of  commodities  spec- 
ulators: 

"They  get  together  on  the  trading  floor 
every  morning  and  talk  among  themselves 
and  decide  whether  the  market  Is  going  to 
go  up  or  down  that  day.  Then,  they  start  buy- 
ing .  "They  don't  care  about  supply  and  de- 
mand. All  they  care  about  is  how  the  market 
U  reacting.  They  buy  In  the  morning,  drive 
up  the  prices,  and  they  sell  before  the  day 
ends.  It's  all  In  the  psychology  of  It." 

"HURTS  FARMERS" 

Smith  continued:  '"This  thing  In  the  soy- 
bean market,  it  can't  but  hurt  farmers.  Those 
speculators  drove  up  the  price,  and  they 
did  It  right  In  the  middle  of  the  marketing 
year.  That's  got  to  affect  soybean  consump- 
tion. Itll  drive  people  to  substitutes,  then 
the  farmer  wUl  make  up  for  It  later  by  pay- 
ing more  for  the  soybean  meal  he  has  to  buy 
from  the  processor,  and  getting  less  for  his 
raw  soybeans." 

Goepplnger  said  another  major  problem 
connected  with  the  commodity  exchanges  in- 
volves the  "dirtying  up"  of  com  shipped  by 
farmers. 

He  said,  "board  of  trade  contracts  Include 
grade  specifications  for  different  classes  of 
corn,  (^pending  on  the  quality.  Each  of  these 
classes  allows  a  certain  amount  of  'foreign 
matter'  and  adulterated  com." 

Goepplnger  continued:  "Various  people  In 
the  grain  distribution  system  know  this,  and 
they  know  that  when  the  farmer  ships  his 
corn  It's  usually  pretty  clean.  But  they're 
artisans,  almost  like  piano  tuners  In  the  way 
they  can  expertly  bler^  some  foreign  ma- 
terial and  adulterated  com  in  with  the 
farmer's  shipment  so  it  comes  Just  within  a 
gnat's  hair  of  exceeding  the  board  of  trade 
specifications." 

The  National  Corn  Growers  Association 
president  said  many  buyers  of  American 
grain,  especially  overseas  customers,  have 
complained  bitterly  that  American  ship- 
ments are  "dirty." 

"If  this  keeps  up,"  said  Goepplnger,  "a 
lot  of  farmers  are  Just  going  to  Ignore  these 
middlemen;  they're  going  to  go  over  their 
heads. 

"But  Its  going  to  be  hard  to  crack  these 
behemoths,  these  large  grain  companies. 
They  have  agents  overseas  and  they  wine  and 
dine  the  buyers.  But  ffwmers  are  fed  up. 
They're  traveling  more,  too.  and  they're  see- 
ing more  people  and  pretty  soon  they're  go- 
lug  to  be  making  their  own  deals." 

Goepplinger  continued:  "Maybe  the  grain 
sp>eculators  should  remember  what  happened 
to  the  Liverpool  Grain  Exchange.  I  can  re- 
member when  the  Liverpool  exchange  was 
the  world's  greatest,  the  same  nerve  center 
that  Chicago  Is  now. 

"We  used  to  listen  on  the  radio  for  the 
prices  from  Liverpool  and  we  knew  they 
would  be  reflected  later  that  morning  on  the 
Chicago  Board  of  Trade 

"But  the  last  t«me  I  \»-as  In  Liverpool  there 
were  only  15  or  20  guys  on  the  trading  floor, 
^nd  when  the  gong  rang  for  the  opening  of 


trading  nobody  even  got  up.  There 
trading  at  all,  to  SF>eak  of." 

(From  the  Des  Moines  Register,  June  3, 

1973) 

SoTBZAN  Prices  and  Pood  Costs 

(By  George  Anthan  and  James  Rlsser) 

Chicago,  Iix. — Chaotic  trading  dominated 
the  nation's  major  commodity  exchange  here 
last  week,  raising  new  questions  about  op- 
erations of  the  markets  and  causing  fears 
of  another  upward  spiral  In  retail  meat  and 
food  costs. 

Prices  of  grains — soybeans.  In  particular — 
soared  to  previously  unheard  of  levels,  and 
trading  on  the  floor  of  the  Chicago  Board 
of  Trade  was  so  frenzied  that  some  experts 
warned  of  a  p>os6lble  market  collapse. 
SE£  problems 

Some  Investors  and  brokerage  houses  were 
reported  In  flanclal  trouble  as  millions  of 
dollars  changed  hands  in  the  virtually  un- 
abated and  perhaps  artificial  boom  In  soy- 
bean prices. 

TTiese  high  prices — soybeans  hit  an  un- 
heard of  price  of  $11.34  a  bushel — wUl  be 
reflected  soon  In  higher  meat  prices  since 
soyt>eans  are  an  Important  part  of  the  Uve- 
stocK  reed 

But  many  farmers  and  grain  elevator  op- 
erators are  worried  that  the  futures  markets. 
having  been  driven  to  giddy  heights,  wU! 
collapse,  leading  to  severe  financial  losses  for 
many  segments  of  the  agricultural  economy. 

Critics  of  the  grain  futures  markets 
charged  that  excessive  qieculation  is  respon- 
sible. Some,  Including  Representative  Neal 
Smith  rDem  .  la  i .  demanded  a  brief  but 
total  suspension  of  trading  and  an  Investi- 
gation of  the  market's  unprecedented  be- 
havior. 

Smith  renewed  his  pledge  to  hold  congres- 
sional hearings  soon.  p>erhap6  as  early  as 
next  month,  to  determine  If  futures  prices 
are  Justified  by  actual  supply  and  demand 
conditions  or  whether.  In  his  words.  "It's  the 
biggest  legal  gambling  game  in  the  world." 

Senator  Henry  M.  Jackson  (Dem..  Wash  ), 
whose  permanent  Investigating  subcommit- 
tee has  been  probing  the  effectiveness  of  the 
Commodity  Exchange  Authority  (CEA),  de- 
clared he  is  "deeply  concerned  that  the  new 
and  unprecedented  rises  in  the  prices  of 
grains  could  result  In  food  prices  even  15 
to  20  per  cent  higher  this  year." 

He  was  sharply  crlUcal  of  CEA  Adminis- 
trator Alex  C.  Caldwell  for  his  "general  hands 
off  attitude  toward  futures  manipulation. 

"Until  we  started  looking  around,  thev 
were  doing  nothing,"  Jackson  said.  "Only 
since  we  become  Involved  In  an  Investigation 
did  they  turn  the  Kansas  City  Board  of 
Trade  case  (on  wheat  futures)  over  to  the 
Department  of  Justice. 

"Previously,  they  had  allowed  the  board 
to  give  Itself  a  clean  bill  of  health,"  he  said 

"OPE&ATINC    LECALLT" 

The  CEA  Insisted  throughout  the  week  that 
despite  the  unprecedented  prices,  the  markets 
were  operating  legally  and  that  federal  Inter- 
vention was  not  warranted. 

But  one  worried  broker,  noting  that  prices 
of  some  grains  had  Increased  by  more  than 
60  per  cent  In  recent  weeks  and  by  almost 
400  per  cent  over  a  year  ago,  said  the  CEA. 
should  quit  sitting  on  Its  hands"  and  move 
In  to  slow  the  advance*.  As  trading  in  soy- 
beans opened  Friday  in  Chicago,  one  broker 
said:  "I'm  afraid  to  go  Into  the  pit." 

The  CEA.  said  Senator  Harold  Hughes 
(Dem..  la  ).  is  "unbelievably  weak-kneed  and 
Ineffective." 

But  the  bigger  professional  commodity 
brokers,  ofllclals  of  the  Board  of  Trade  and 
Agriculture  Secretary  Earl  Butz  all  con- 
tended that  the  record  trading  simply  was 
the  result  of  domestic  and  foreign  demand 
for  the  products  of  American  farmers. 


TOO 


CONGRESSIONAL  REOORD  —  SENATE 


It  Is  Ironic  that  u  soybean  prtcea  hit  record 
levela,  many  farmer*  earlier  had  sold  their 
1972  crop  for  less  than  $3  50  a  bushel.  Now. 
having  seen  pricee  for  their  grain  driven  up 
by  traders,  big  export  and  procesalng  com- 
panies and  foreign  buyers,  many  farmers  are 
refusing  to  sign  contracts  to  sell  their  1973 
crop. 

However,  a  market  collapse  brought  about 
by  any  excessive  speculation  once  again 
would  lead  to  fanners  receiving  relatively  low 
prices. 

BACK  spccnrLAToas 
Butz.  along  with  officials  of  the  exchange*, 
insists,  however,  that  speculators  are  not 
driving  prices  up  artmclally  New  record 
prices  sUnpIy  reflect  market  conditions,  they 
say. 

And.  as  another  broker  put  It.  "They  cotild 
put  tighter  limits  on  price  Increases,  but  that 
would  effectively  stop  trading  and  the  boys 
over  at  the  Board  of  Trade  would  starve."  The 
traders  he  referred  to  depend  on  high  volume 
to  make  money,  since  they  are  paid  a  com- 
mission each  time  they  buy  or  sell  commodi- 
ties for  their  customers. 

A  halt  In  trading  also  would  stop  traders 
f*om  buying  and  selling  In  their  own  behalf, 
a  practice  that  has  been  condemned  by  many 
critics  as  representing  a  serious  conflict  of 
interest. 

These  were  some  of  the  highlights  of  a 
week  In  which  trading  in  the  Board  of  Trade 
"pits"  was  even  more  frantic  than  usual,  and 
newsmen  and  television  crews  Invaded  the 
powerfxil.  though  usually  Ignored,  center  of 
this  coxintry's  grain  trading  . 

Other  developments  during  the  week  In- 
cluded ; 

Constant  Increases  by  Board  of  Trade  offi- 
cials on  the  long-standing  legal  limits  on 
dally  price  movements — the  amount  a  com- 
modity can  rise  or  fall  In  price  In  any  on© 
day.  The  officials  said  their  move  wae 
designed  to  spur  then-stalled  trading,  but 
critics  said  it  only  fueled  the  price  increases. 
There  were  charges,  and  denials,  that  soy- 
bean trading  was  controlled  throiogh  a 
"comer"  of  the  market  by  three  giant  grain 
firms. 

The  Board  of  Trade  steadily  Increased 
"margins" — the  cash  down  payment  required 
to  buy  a  futirres  contract.  This  was  done  to 
help  brokerage  houses  remain  solvent  but 
it  also  forced  many  farmers,  small  grain 
elevators  and  other  investors  to  come  up 
with  more  and  more  cash  to  stay  In  the 
market. 

In  the  midst  of  this,  the  president  of  the 
Board  of  Trade.  Henry  Hall  Wilson,  officially 
announced  his  resignation  to  run  in  the 
North  Carolina  Democratic  primary  election 
next  year  against  Senator  Sam  Ervln 

Serious  questions  about  some  operations 
of  the  commodity  exchanges  and  the  CEA's 
ability  to  regulate  the  markets  have  been 
raised  in  recent  years  by  the  US  General 
Accounting  Office  and  the  Agriculture  De- 
partment's Inspector  general. 

A  recent  series  by  The  Des  Moines  Regis- 
ter concluded  that  the  CEA  has  ignored 
recommendations  of  these  agencies  and  can- 
not Insure  against  price  manlpiilatlon  and 
other  Illegal  market  activities 
wo  pioor 
However  Secretary  Butz,  even  as  he  ad- 
mitted soybean  trading  had  become  "wildly 
speculative."  insisted  last  week  there  Is  no 
proof  of  prlce-rlgglng 

CEA  Administrator  Caldwell  is  doing  a 
"remarkable  Job"  In  view  of  his  "limited" 
resources  and  manpower.  Butz  asserted.  The 
secretary  said  he  aees  no  need  for  tighter 
ledaral  regulation  or  for  strengthening  the 
CSA. 

Harry  Fortes,  a  Chicago  lawyer  and  former 
member  of  the  Board  of  Governors  of  the 
Chicago  Mercantile  Exchange,  disputed  Butz 


December  20,  1973 


"This  Is  all  based  on  exoeaalve  speculation." 
he  said,  adding  that  those  persons  who  had 
believed  there  would  be  a  price  drop  and 
who  agreed  to  deliver  grain  supplies — or  the 
equivalent  value  in  cash — "are  being  mur- 
dered." These  are  referred  to  as  "shorts"  in 
the  market  Those  who  contracted  cash  to 
satisfy  their  futures  contracts  are  called 
"longs."  and  they  speculated  successfuUy 
that  prices  would  Increase 

Fortes  said  moves  by  the  Board  of  Trade 
have  been  "counter-productive"  and  he  con- 
tends these  steps  were  taken  to  Insure  that 
trading  continued  "no  matter  what." 

An  independent  broker  called  this  past 
week  a  "period  of  crisis  '  and  said  there  were 
many  rumors  of  a  "squeeze"  by  large  grain 
companies.  A  "squeeze"  or  "comer"  would 
result  when  a  trade  or  combination  of  trad- 
ers gained  control  of  available  supplies  of  a 
commodity. 

NO   INTTaVXNTION 

"It's  beyond  me  how  this  week's  trading 
could  have  gotten  so  far  out  of  hand  without 
the  government's  stepping  in*  by  clamping 
down  on  trading  or  by  limiting  grain  exports 
which,  he  said,  are  causing  much  of  the  price 
spiral. 

But  he  believes  both  the  CEA  and  Boari  of 
Trade  officials  are  afraid  to  take  any  drastic 
steps  because  they  don't  want  to  knock  off 
the  goose  that  lays  the  golden  egg  " 

Another  broker  said  "the  big  companies  are 
behind  this.  They've  got  everything  tied  up 
and  the  Agriculture  Department  doeant 
know  what's  going  on.  They  should  have  sus- 
pended trading  a  long  time  ago  Why  they 
dont  do  It,  I  dont  know. 

"What  happened  was  that  somebody 
went  In  and  bought  up  all  the  soybeans  and 
the  futures  contracts  and  they're  holding 
them.  When  they're  ready  to  let  go.  they'll 
dump  the  stuff  and  the  market  wUl  collapse 
and  you  and  I  wont  know  a  thing  about  It 
before  It  happens." 

He  was  referring  to  reports  that  Continen- 
tal Gram  Co  .  CargUl.  Inc  ,  and  Cook  Indus- 
tries— all  large  grain  companies — control 
most  available  supplies  of  soybeans. 

Officials  of  Continental  refused  to  com- 
ment, but  a  spokesman  for  CargUl  salrl. 
"CargiU's  not  holding  any  soybeans  back  for 
higher  prices." 

He  said  the  Minneapolis,  Minn.,  firm  does 
have  large  stocks  of  soybeans,  but  already 
has  sold  the  products  it  makes  from  the 
grain  and  therefore.  "We  would  not  benefli 
from  any  higher  prices." 

The  CargUl  official  said  the  firm  also  Is 
heavUy  involved  In  the  futures  market  but 
emphasized  that  both  "long"  and  'siiort " 
contracts  would  be  affected  equaUy  by  price 
rises  or  declines. 

Warren  Lebeck,  chief  administrative  officer 
of  the  Board  of  Trade  here,  said  the  ex- 
changes actions  this  week  have  succeeded 
and  that  both  buyers  and  sellers  have  been 
able  to  fulflU  their  commitments. 

StUl,  soybean  prices  were  at  record  levels 
at  the  close  of  trading  Friday  But  Lebeck 
rejected  the  argument  that  high  futures 
prices  wtU  lead  to  higher  retail  food  costs 
He  maintained  that  futures  prices  only  re- 
flect demand 

Iowa  Representative  Smith  contends  this 
no  longer  la  true  "because  futures  trading 
has  gone  wUd"  and  traditional  relationships 
between  futures  prices  and  actual  cash  pur- 
chase prices  have  broken  down. 

"That's  Just  Mr  Smith's  opinion."  said  Le- 
beck   "He  doesnt  have  the  facts." 

Lebeck  said  "futures  prices  are  like  a  ther- 
mometer You  don't  blame  the  thermometer 
If  It's  00  degrees  outstde." 

He  also  defended  the  CEA  which  regula'ee 
his  exchange,  and  said  the  agency  "has  the 
tools  "  to  determine  if  there  has  been  any 
prioe- rigging. 

B*  acksowlsdged  th*t  board  officials  "are 
concerned  about  the  market  and  watching  it 


very  closely  We  want  to  be  sure  nothing  does 
get  out  of  hand." 

The  board  was  clearly  upset  that  the  week's 
aotlTltles  had  given  the  exchange  the  Image 
of  a  gambling  casino.  One  spokesman  dis- 
closed that  serious  thought  was  being  given 
to  changing  the  term  "speciUator'  to  some- 
thing milder  such  as  "market  investor." 
"SpeciUator"  connotes  gambling  and  "sounds 
bad. "  tald  the  spokesman. 

[From  the  Des  Moines  Register.  Aug.  2.  1973) 
Gambling  Dnlimitzd 
Is  the  grain  futures  market  necessary? 
Farmers  long  have  had  doubts,  even  before 
Frank  NorrU's  novel  "The  Pit"  told  of  the 
gambling  in  wheat  at  the  turn  of  the  cen- 
tury But  the  argument  of  the  grain  ex- 
changes always  has  been  that  they  provide  a 
service  to  farmers  and  others  through  "hedg- 
ing." 

A  farmer  or  dealer  In  grain  can  sell  a 
futures  contract  months  ahead  of  harvest 
and  thus  protect  himself  against  a  decline  In 
the  market.  A  buyer  can  buy  a  contract  and 
protect  himself  against  a  rise  The  hedger 
who  has  actual  grain  to  sell  or  buy  la  not 
gambling:  he  will  lose  on  the  commodity  sale 
or  purchase  whatever  he  makes  on  the  paper 
tranactlon. 

The  gamblers  In  the  pits,  however,  provide 
the  volume  of  trading  for  those  who  want  to 
hedge  That  Is  their  argument.  Also,  say  the 
defendars  of  the  futures  market,  this  buying 
and  selling  tends  to  "stabilize  "  prices  of  the 
commodltee  traded 

Not  much  has  been  said  about  sUblUzatton 
recently,  with  soybeans  and  grain  soaring 
out  of  all  normal  relationship  to  the  basic 
supply  and  demand  situation.  Runaway  spec- 
ulation, and  possibly  some  "cornering "  of 
the  market,  as  In  "The  Pit,"  seems  to  have 
occurred  In  1973. 

Instead  of  stabUlzlng  or  providing  reliable 
signals  to  buyers  and  sellers  of  grain,  the 
futures  market  has  distorted  the  signals.  The 
Department  of  Agriculture,  which  Is  charged 
with  regulating  the  exchanges,  has  done  tittle 
or  nothing  to  check  speculation.  The  policy 
of  the  0SDA  Commodity  Exchange  Adminis- 
tration has  been  to  rely  on  the  exchanges  to 
police  themselves.  The  result  has  been  such 
ridiculous  prices  as  more  than  $12  a  bushel 
for  soybeans. 

Representative  Neal  Smith  (Dem.,  la.)  Is 
conducting  an  Investigation  of  the  exchanges 
In  his  subcommittee  on  small  business.  He 
suggested  that  if  the  boards  of  trade  do  not 
And  ways  to  reform  their  practices,  they 
might  face  an  end  to  futures  trading. 

That  might  not  be  such  a  disaster  as  some 
traders  think.  Whether  there  U  any  social 
value  In  this  mechanism  for  gambling  in 
commodities  may  be  questioned,  and  we 
hope  the  Smith  subcommittee  will  do  some 
questioning  If  people  want  to  gamble.  let 
them  do  it  at  Las  Vegas  Instead  of  doing 
It  In  farm  commodities,  prices  of  which  are 
vital  to  farmers,  consumers  and  processors — 
the  whole  economy. 

If  stabUlty  and  forward  pricing  of  com- 
modities are  the  (sometime)  benefits  of 
futures  trading,  perhaps  they  can  be  gained 
In  other  ways  Even  wrong  guesses  by  the 
Department  of  Agriculture  on  future  prices 
would  not  be  so  disrupting  as  the  grain  ex- 
changes this  year 

Senator  Dick  Clark  (Dem..  la.)  suggested 
that  the  USDA  estimate  of  corn  stocks  may 
be  in  error  this  summer  He  said  that  Iowa's 
nonfarm  stocks  total  at  least  139  mUllon 
buahels.  though  USDA  rep>ort«d  only  8A  mU- 
Uon  (USDA  acknowledged  a  mistake  was 
made  »  The  com  futuire  prices  could  turn 
out  to  have  been  even  more  unrealistic  than 
we  had  thought  If  Senator  Clark's  figures  for 
Iowa  tum  out  to  be  typical  for  the  UB 

In  short,  the  farmer,  the  consumer  and 
the  processor  have  been  given  a  very  bum 
steer  by  the  grain  exchanges  this  year — and 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42701 


by  the  USDA.  through  failure  to  regulate 
and,  perhaps,  failure  to  pubUsh  accurate  data 
on  carryover  stocks 

If  the  carryover  data  are  Inaccurate,  how- 
ever, the  statisticians  and  economists  In 
USDA  should  not  be  blamed.  They  never 
have  been  given  the  financial  support  they 
need  to  do  a  complete  Job  of  crop  and  Uve- 
stock  reporting  A  year  like  the  1972-73  mar- 
keting year  shows  how  important  It  Is  to 
have  accurate.  unblEised  figures  on  storage, 
exports  and  other  Information. 

It  is  the  political  leadership  of  the  depart- 
ment which  must  assume  the  blame  for  the 
Inadequacies  of  Information  and  the  mess  In 
the  grain  markets  In  1973. 

(From  the  Des  Moines  RegUter.  Oct.  16,  1973 J 

CEA:    CoMMOurrY   Frmjais   Industbt   Nkkds 

Refobms 

(By  George  Anthan) 

Washington,  DC — The  Commodity  Ex- 
change Authority  (CEA)  acknowledged  pub- 
licly Tuesday  that  major  reforms  are  needed 
In  the  government's  regulation  of  the  com- 
modity futures  Industry  in  order  to  protect 
consumers,  farmers  and  the  trading  public. 

The  CEA.  an  agency  of  the  Agriculture  De- 
partment. Is  responsible  for  policing  of  the 
•268-bllllon-a-year  commodity  futures  in- 
dustry and  the  activities  of  market  brokers 
and  speculators. 

LASGELT    UNKNOWN 

UntU  recently,  the  CEA  was  largely  un- 
known outside  the  department  and  the  In- 
dustry, and  Congress  regularly  approved  Its 
relatively  meager  budget  with  few  questions 
asked. 

But  a  newspaper  ln%'estlgatlon  early  this 
year  revealed  serious  shortcomings  In  the 
agency's  regulatory  activities.  Then,  It  was 
shown  that  some  top  officials  of  the  AgrlcvU- 
ture  Department  had  raised  questions  In- 
ternally about  the  adequacy  of  government 
regulation  of  an  Industry  that  is  the  basis  for 
the  prices  paid  for  food  by  consumers  at  the 
supermarkets,  and  for  the  prices  received  by 
farmers  for  their  commodities. 

CEA  administrator  Alex  Caldwell  Tuesday 
gave  the  House  Agriculture  Committee  a  long 
list  of  recommendations  to  strengthen  his 
agency. 

He  also  revealed  the  department  Is  "ac- 
tively considering"  a  proposal  to  divorce  the 
CEA  from  the  Agriculture  Department  and 
recommend  to  Congress  that  It  create  an  In- 
dependent regrulatory  agency  modeled  after 
the  US.  Securities  and  Exchange  Commission 
(SEC),  which  regulates  the  securities  Indus- 
try. 

Caldwell  said  other  plans  being  studied  by 
the  department  Include  merger  of  the  CEA 
with  the  SEC.  and  retention  of  the  commodi- 
ties agency  within  the  USDA,  but  providing 
it  with  a  greater  degree  of  autonomy  than  It 
has. 

Some  members  of  the  committee  said  fol- 
lowing a  hearing  Tuesday  that  there  Is  Uttle 
question  but  that  Congress  mv)st  move  quick- 
ly to  Institute  reforms  In  the  government's 
regulation  of  the  industry 

Representative  Thomas  Foley  (Dem.. 
Wash.),  said.  "The  time  is  here  when  we're 
going  to  need  much  stronger  federal  controls. 
It's  not  a  question  of  whether  we  are  going 
to  do  something,  but  what  and  when." 

TEBMED    ESSENTIAt. 

Foley  said  he  agrees  that  trading  In  com 
modlty  futures — which  allovra  both   farmers 
and   processors   of   agricultural    products    to 
protect  themselves  against  future  losses — is 
an  essential   Industry 

"But  there  Is  great  danger  here."  he  said. 
"If  the  Industry  Is  not  subjected  to  reason- 
able regulation.  If  It  Isn't,  somebody  Is  going 
to  propose  soma  day  on  the  floor  of  the  House 
that  commodity  exchangee  be  abolished. 
There  could  be  an  over-reaction  by  the  pub- 
lic agaln&t  them." 


Foley  also  said  "there  Is  no  question  but 
that  the  CEA's  regulation  of  the  markets  has 
been  primitive  compar-^d  to  the  wav  the 
SEC  regulates  the  stock  exchanges." 

Caldwell,  who  had  told  reporters  early  this 
year  that  the  CEA  was  doing  an  "adequate" 
Job.  agreed  Ttiesday 

He  then  asked  the  agriculture  committee 
for  legislation  giving  his  agency  authority  to: 

Order  commodity  exchanges  to  change 
their  rules  and  practices  "as  determined 
necessary  for  the  protection  of  persons  pro- 
ducing, handling,  processing  or  consuming 
any  commodity  .  .  ." 

Regulate  advertising  by  firms  soliciting  In- 
vestors for  futures  markets. 

Regulate  trading  In  all  commodities 
(Trading  In  lumber,  sugar,  sliver,  copper,  co- 
coa, coffee  and  iced  broUers — chicken — are 
not  now  regulated) . 

Prohibit  floor  brokers  from  trading  for 
their  own  accounts  and  for  customers. 

Obtain  court  injunctions  to  stop  any  i>er- 
son  from  violating  commodities  laws.  (This 
Is  needed.  Caldwell  .-aid.  to  permit  the  CEA 
to  move  quickly  against  fraud,  cheating  and 
mishandling  of  customer  funds  and  against 
traders  who  are  in  a  position  to  manipulate 
commodities  prices  to  the)-  own  advantage. 

Require  markets  to  permit  delivery  of  com- 
modities at  mtUtlple  points  if  such  action 
Is  needed  to  prevent  or  diminish  price  ma- 
nipulation. 

Give  the  General  Accounting  Office  (GAO) , 
the  Investigative  agency  of  Congress,  access 
to  CEIA  records. 

These  reforms.  Caldwell  said,  "would  pro- 
vide the  basic  framework  for  a  more  compre- 
hensive and  aggressive  regulatory  program." 

(From  the  Des  Moines  Register,  Oct.  25,  1973) 

CoMMODFTY  Bbokess,  CAacnx  Back  New 
PtJTtJKKS  Agency 

Washington.  DC— An  organization  rep- 
resenting the  nation's  commodity  brokerage 
firms  Joined  with  one  of  the  world's  largest 
private  grain  companies  Wednesday  In  en- 
dorsing establishment  of  an  Independent 
federal  agency  to  regtUate  the  commodity 
futures  Industry. 

John  W.  Clagett.  president  of  the  Associa- 
tion of  Commodity  Exchange  Firms,  Inc., 
told  the  House  Agricultvire  Committee  that 
his  organization  was  seeking  the  change  even 
though  "it  may  seem  unusual  to  some  people 
for  a  person  who  represents  an  important 
segment  of  private  Industry  to  recommend 
more  federal  control  of  our  Industry." 

Claggett  said  Increased  surveillance  of  the 
futures  business  by  an  Independent  and 
strengthened  government  unit  was  being 
sought  "In  the  Interest  of  giving  the  public 
greater  protection  In  the  futures  markets." 

GOVERNING    BODY 

Walter  B  Saunders  a  vice-president  Of 
Carglll  Inc.  U/.a  the  committee  that  a  more 
effective  federal  regulatory  agency  Is  needed 
because  the  Agriculture  Departments  Com- 
modity Exchange  Commission  "Is  not  prop- 
erly constituted  to  provide  continuing  sur- 
veillance of  commodities  trading  on  futures 
markets." 

The  commission — composed  of  the  secre- 
taries of  agriculture  and  commerce  and  the 
attorney  general— is  the  governing  body  for 
the  Commodity  Exchange  Authority  iCE.\i 
the  agency  that  administers  the  federal  com- 
modities regulatorv  program 

"What  Is  needed."  said  the  CargUl  official. 
"Is  a  continuously  functioning,  professional 
regulatory  group  of  a  level  of  prestige  match- 
ing that  of  Its  Securities  and  Exchange  Ck)m- 
mlsslon  counterpart." 

CargUl  depends  on  futtires  markets,  said 
Saunders,  to  hedge  both  Its  purchases  and 
sales  of  grain,  to  Insure  against  major  losses 
caused  by  fluctuating  prices. 

He  said  the  company  believes  that  an  In- 
dependent  policing   agency    woiUd    "provide 


adequate  supervision  of  the  entire  futures 
marketing  system  In  a  comprehensive  man- 
ner rather  than  merely  piecemeal.  . .  ." 

Saimders  also  said  a  new  agency  would 
help  "to  re-establish  public  confidence  in 
futures  markets   ' 

The  committee  Wednesday  concluded  sev- 
eral days  of  public  hearings  held  to  deter- 
mine If  federal  laws  controlling  the  trading 
of  commodities  futures  contract*  are  ade- 
quate. 

The  committee  is  expected  to  consider  leg- 
islation to  create  a  new,  Independent  reg^'J- 
latory  agency,  or  to  greatly  strengthen  the 
CEA  with  additional  pKjwers,  expanded  staff 
and  more  autonomy  within  the  Agriculture 
Department. 

OPPOSE     AGXlfCT 

Officials  of  the  Chicago  Mercantile  Ex- 
change and  of  the  New  York  Mercantile  Ex- 
change testified  Wednesday  that  their  mem> 
bers  oppose  creation  of  an  Independent  reg- 
ulatory agency. 

Michael  Weinberg.  Jr.,  chairman  of  the 
Chicago  exchange,  said,  "Since  we  respect 
the  market  Information  and  gathering  activ- 
ities of  the  UB.  Department  of  AgrlciUture, 
and  the  close  Identity  of  the  commodities  It 
covers  and  most  exchanges  utilize,  we  feel 
that  It  would  be  a  reasonable  economy  of 
men  and  money  to  retain  the  CEA  under 
the  USDA. 

Weinberg  also  stated,  "And  we  feel  that 
the  CEA  has  done  Its  Job  with  Integrity. 
even  if  it  has  not  reflected  Industry  j"^.  wt'h 
In  Its  own  approaches,  as  much  as  many 
wovUd  prefer." 

Llewellyn  Watts.  Jr..  chairman  emerirua  of 
the  New  York  exchange,  said  he  beUeves  the 
CEA  currently  has  enough  authority  "to  ef- 
fect changes  it  believes  necessary  for  the  pro- 
tection of  participants  in  futtires  trading  on 
the  exchanges." 

The  New  York  and  CSilcago  commodities 
officials  strongly  opposed  prop>06als  to  pro- 
hibit commodities  floor  brokers  from  buying 
and  selling  for  their  own  accotmte  at  the 
same  time  they  also  are  handling  orders 
from  customers. 

They  contended  that  such  a  move  would 
force  out  of  the  market  speculators  who 
take  many  of  the  financial  riskF  enabling 
farmers  and  processors  of  commodities  to 
enter  Into  a  futures  aj-reemer.t  and  thus 
protect   themselves   against    major  losses 

The  Chicago  exchange  ofBcals  agreed.. 
however,  that  the  CE.\  should  be  substan- 
tially strengthened  and  given  broad  new 
regulatory  powers 

[Prom  the  Des  Moines  Register,  Feb  27.  1973) 
Sham  Policing  of  Markfts 

The  articles  by  The  Registers  Washington 
bureau  about  the  USDA  Commodity  Ex- 
change Administration  last  week  show  In 
penetrating  detaU  the  failures  of  this  agency 
to  regulate  the  exchanges  and  brokerage 
houses  It  Is  supposed  to  regulate 

The  articles  by  Cla.'k  MollenhofT  George 
.\::than  and  James  RL>4ser  rtresi  a  familiar 
condition  In  governmer.t  regulatory  bodies — 
at  all  levels  of  government  The  regulators 
have  t>e*n  taken  over  by  the  regulated.  In 
other  words  the  businesses  which  CEA  Is 
charged  with  supervising  to  protect  the  pub- 
lic are  very  much  on  the  Ir^slde  of  t.he  regnj- 
latory  agency  TT'.ere  L«  a  •'cory"  relationship 
which  permits  violations  of  the  law  aiid 
dubious    practices    which    gouge    the   public. 

CEA  Is  almost  m  a  c:as?  by  itself  however 
when  It  comes  to  letting  the  pe<3ple  to  be 
regulated  regulate  them-ielres  TTie  d'..-ector 
of  CE.\  .A'.ex  Caldwe!!  eve.-,  adv..-«tes  letting 
the  commodity  exchange*  aud  brokers  do 
their  own  regulating 

CEA  officials  and  Uheir  friends  In  the  com- 
modity exchange  firnis  always  talk  about  bow 
futures  market  trading  '  stablllxss"  prices 
and  levels  out  seasonal  upe  and  downs.  Actu- 
ally, this  trading  tends  to  accentuate  market 


i2702 


CONGRESSIONAL  RECORD  — SEN  A  it 


swings.  Traders  and  tbetr  brokers  over-«axi- 
maie  cbanges  In  supply  and  demand,  and 
sometimes  manipulate  the  markets  by 
rumormongering 

In  recent  years  every  Item  oX  news  about 
the  corn  crop,  such  as  the  Southern  leaf 
blight  or  a  spate  oi  dry  weather,  or  about 
exports,  such  as  the  dock  strike  which  held 
up  ahlpments.  has  sent  prices  up  or  down  far 
more  than  the  facts  Justified.  Futures  trad- 
ing Inevitably  affects  the  cash  market  Farm- 
ers, processors  and  even  the  USDA  are  given 
misleading  signals  by  speculative  excesses. 
The  value  of  commodity  futures  markets 
In  enabling  buyers  and  sellers  to  hedge 
against  the  future  Is  obvious.  But  unless 
the  trading  operations  axe  very  closely  reg- 
ulated, the  damage  to  farmers  and  to  deal- 
ers from  exaggerating  market  swings  could 
well  offset   the   beAeflts  from   hedging. 

The  encnisted  Department  of  Agriculture 
bureaucracy  all  the  way  through  has  tended 
to  become  the  captive  of  agri-business  firms, 
trade  associations  and  commercial  agricul- 
ture The  Forest  Service,  for  example,  has 
tended  to  adopt  policies  favorable  to  the 
timber  Industry,  as  against  the  public  In- 
terest. Cattle  ranchers  in  the  West  have  been 
favored  In  the  use  of  public  lands,  including 
national  forests. 

When  the  Department  of  Agriculture  was 
In  charge  of  regulating  the  chemical  pesti- 
cides used  In  farming  it  adopted  lenient  rules 
toward  the  chemical  companies  in  granting 
permits  The  general  policies  on  pesticides 
favored  the  sellers  and  users  of  pesticides  in 
farming,  with  relatively  little  attention  to 
the  pubUc  Interest  In  the  environment  and 
in   avoiding   contamination    of   foods 

The  researcli  and  educatloiuU  arms  of 
DSDA.  In  the  same  pattern,  have  become 
allies  of  commercial  farming  and  the  agri- 
business firms  that  sell  supplies  to  farmers 
or  buy  their  products  The  small  farmer,  the 
hired  farm  worker,  the  rural  community  and 
the  consuming  public  have  been  slighted. 
This  is  not  whoUy  the  fault  of  the  USDA 
bureaucracy. 

It  Is  a  failure  of  Congress,  whose  agri- 
culture committees  are  dominated  by  the 
Interests  DSDA  tends  to  favor  The  bureauc- 
racy Is  really  run  by  the  committees  of  Con- 
gress, and  many  a  Secretary  of  Agriculture 
has  been  frustrated  In  his  attempts  to  re- 
form old-line  agencies. 

To  reform  the  system  to  meet  the  needs  of 
rural  America  and  the  nation  as  a  whole. 
Congress  will  have  to  start  with  Itself 

(Prom  the  Washington  Post,  Mar.   ll.   1973| 

Tax  Furuaxs  Game    Suxikc  thx  Public 
SHorr 

(By  Clark  MoUenlioff.  Janses  R laser,  and 
George  An  than) 

The  MOO-bllllon-a-year  commodity  future* 
market  is  booming  along  with  vlrtuaUy  nn 
controls  to  protect  millions  of  small  trader* 
and  the  consuming  public,  which  eventualJv 
buys  the  foodstuffs  traded  there 

The  Commodity  Exchange  Authorltv 
(CEA) — the  federal  agency  charged  by  law 
with  responslbUUy  for  regulating  the  futures 
'*»*'■*** — »»*•.  In  part,  turned  this  task  over 
to  the  professional  traders  themselvee.  who 
operate  in  a  club-like  atmoaphere  at  the 
vanox»  commodity  exchanges 

There  are  strong  Indications  that  rigged 
markeu  In  wheat,  eggs  and  meato  have  cost 
the  public,  the  smaU  commodity  traders  and 
farmers  millions  of  dollars 

For  example,  commodities  Indxistry  officials 
themselves  agree  that  a  recent  suspected 
manipulation  of  the  egg  futures  market 
booated  the  price  of  eggs  on  supermarket 
shelve*  by  as  much  as  10  cenu  a  docen  Thia 
alleged  price  rigging  of  the  egg  futures  mar- 
ket In  Chicago  conunued  undetected  by  the 
CEA  foe  nearly  a  year  And  a  former  high 
offlclai  of  the  Chicago  MercantUe  Exchange 


December  20,  1973 


estimates  that  for  every  price  numlpulatlon 
case  prosecuted  by  the  CEA,  eight  or  nine 
other  price  riggings  are  never  discovered. 

At  the  same  time,  there  is  little  evidence 
that  those  caught  in  market  maxUpulations 
and  other  serious  abuses  have  received  much 
more  than  a  slap  on  the  wrist. 

Seven  years  ago,  foUowUig  the  spectacular 
Tlpo  DeAngells  salad  oil  swindle,  the  Gen- 
eral Accounting  Ofllce  (QAO)  conducted  a 
thorough  study  of  the  federal  government  s 
efforu  to  regulate  the  commodity  markets, 
and  found  them  "inadequate." 

The  congressional  watchdog  agency  issued 
a  set  of  strongly  worded  reconunendations 
to  the  CEA — an  Agriculture  Department 
agency — recommendations  designed  to  insure 
that  the  public,  from  the  casual  trader  try- 
ing to  make  a  few  dollars  purchasing  com- 
modity futures  to  the  housewife  doing  her 
weekly  grocery  shopping,  is  adequately 
protected. 

But  CEA  admlnutrator  Alex  C  Caldwell 
has  paid  little  or  no  attention  to  the  GAG 
recommendations.  In  fact,  the  level  of  CEA 
regulation  of  the  markeu  has  declined  dur- 
ing the  past  seven  years,  even  as  the  volume 
of  commodity  trading  has  soared  from  %6b 
billion  In  1966  to  more  than  taoo  billion  a 
year. 

As  a  result,  the  operaUon  of  these  markets 
is  open  to  serious  abuse,  including  price 
manlpulattous  and  other  collusive  and  de- 
ceptive practices  by  those  who  specialize  m 
buying  and  selling  at  the  commodity  ex- 
changes in  Chicago.  Kansas  City.  New  York 
and  other  cities. 

L,XGAL    CAlfBLINC 

The  exchanges — where  future  crops  of 
grain  are  traded,  where  young  cattle  and 
hogs  stUl  on  the  farm  are  bought  and  sold, 
and  where  fortunes  can  be  won  or  loat  in  eui 
Instant — are  a  complex  outgrowth  of  the 
need  to  provide  a  place  for  the  orderly  mar- 
keting of  farm  producu. 

Until  development  of  the  commodities 
markets  in  the  mld-1800e,  trading  in  grains, 
{>arucularly,  was  chaotic,  as  corn,  wheat 
and  oats  would  pour  into  the  big  marketing 
cities  at  harvest  time.  This  created  a  glut, 
low  prices  for  farmers,  and,  in  Chicago,  the 
dumping  of  bargeloads  of  grain  into  LAke 
Michigan. 

At  other  times  of  the  year,  the  situa- 
tion was  the  opposite.  Grain  stocks  were  de- 
pleted,  and   demand  drove  prices  sky-high 

Today,  the  main  business  of  the  20  com- 
modity exchanges  is  the  trading  of  com- 
modity futures" — contracts  for  the  sale  and 
purchase  of  future  farm  products  at  pre- 
viously agreed  prices  Selling  crops  and  live- 
stock In  this  manner  Is  supposed  to  help 
stabilize  prices  and  provide  a  more  even 
flow  of  products  to  market  And  eventually, 
todays  futures  prices  have  a  partial  impact 
on  the  retail  price  of  eggs,  meat,  bread  and 
other  g^aln  products,  several  months  hence. 

But  there  are  growing  Indications  that 
trading  In  the  major  commodities  has  lost 
all  touch  with  actual  supply  and  demand, 
and  Instead  has  become  dominated  by  spec- 
ulators who  have  UtUe  Interest  m  the  prod- 
ucts except  as  pawns  In  what  Rep  Neal 
Smith  (D-Iowa»  calls  the  biggest  legal 
gambling  game  in  the  world  " 

Recently,  for  instance,  a  frenay  of  trading 
on  the  Chicago  Board  of  Trade  saw  soybean 
futures  almost  double  In  price,  reaching  the 
unheard-of  figure  of  •«  81  a  bushel  Soy- 
beans are  a  booming  commodity,  but  this 
record  price  has  risen  far  above  any  real  re- 
flection of  soybean  demand,  market  obser- 
vers feel 

Walter  Ooepptnger.  president  of  the  Na- 
tional Corn  Growers  AssocUtlon.  »ald  of  the 
situation  "Most  of  the  farmers  had  sold 
their  sovbeans  for  lew  than  M  SO  a  bushel 
It  was  tue  speculators  who  made  money  In 
that  market  " 

The  ramifications  of  the  soybean  specula- 
tion may  hit  consiimers  hard  in  the  future. 


In  the  form  of  rapidly  rising  prices  for  salad 
oiis  and  even  for  meat,  as  the  price  of  live- 
stock feed  made  from  soybean  meal  reaches 
new  heights. 

Rep  Smith  Is  suspicious  that  the  recent 
soybean  trading  may  represent  an  attempt 
by  some  traders  to  corner  the  market.  Smith, 
whose  small  business  subcommittee  will  con- 
duct an  Investigation  of  the  markets  this 
spring  said  of  commodity  speculators : 

"They  get  together  on  the  trading  floor 
every  morning  anU  talk  among  themselves 
and  decide  whether  the  market  is  going  to 
go  up  or  down  that  day  Then  they  start 
buying  They  dont  care  about  supply  and 
demand  They  buy  in  the  morning,  drive 
up  the  prices,  and  they  sell  before  the  day 
ends    Ifs  all  in  the  psychology  of  it  " 

NXE>    ro«    ENrOKCnCXNT 

Hundreds  of  mUllons  of  dollars  In  futures 
contracts  are  entered  into  each  day  in  the 
noisy  trading  pits  on  the  floors  of  the  Chicago 
Board  of  TYade.  the  Chicago  Mercantile,  Ex- 
change, the  Kansas  City  Board  of  Trade  and 
elsewhere. 

Commodities  traded  include  com,  wheat, 
soybeans,  cotton,  eggs,  cattle,  pork  bellies 
(uncured  bacon  i  and  a  host  of  other  prod- 
ucts. Contracts  to  buy  or  seU  the  farmers 
future  product  are  traded  back  and  forth  by 
brokers  and  speculators,  who  try  to  pick  up  a 
profit  with  each  rise  and  fall  of  market  prices. 
In  thU  way,  contracts  are  bought  and  sold 
many  times.  99  times  out  of  100.  the  Indi- 
vidual buyer  of  a  futures  contract  never  ac- 
tually receives  nor  does  the  seller  actually 
deliver,  the  commodity  itself. 

Serious  problems  can  arise  at  the  exchanges 
when  a  big  trader,  or  a  group  of  traders,  at- 
tempu  to  manipulate  the  price  of  a  commod- 
ity by  buying  large  quantities  solely  to  drive 
prices  up,  or  by  large-scale  selling  to  drive 
prices  down 

The  CEA  Itself  acknowledges  that  "If  trad- 
ing on  commodity  exchanges  is  not  conduct- 
ed according  to  equitable  rxiles  constantly 
enforced,  unfair  practices  may  distort  or 
depress  farm  prices,  open  the  way  to  price 
manipulations  and  make  it  possible  for 
avaricious  dealers  to  "comer'  certain  mar- 
kets and  exploit  them  to  their  profit." 

Yet  none  of  this  officially  sUted  concern  Is 
reflected  In  the  serene  atmosphere  of  Alex 
Caldwell's  office  at  CEA  headquarters  here. 
Caldwell,  57,  who  has  beaded  the  agency 
since  1960,  contends  that  the  small  traders 
and  the  public  are  being  adequately  safe- 
guarded. 

On  the  one  hand.  Caldwell  franklv  admits 
a  lack  of  manpower  to  police  the  rapidly  ex- 
panding commodity  markets.  Yet  Caldwell, 
who  will  appear  Thursday  before  the  House 
Appropriations  subcommittee  that  decides 
his  budget,  acknowledges  that  he  has  consist- 
ently refused  to  ask  Congress  for  more  re- 
sources to  meet  the  criticisms  leveled  at  his 
agency  in  the  1985  OAO  report  The  cost- 
conactous  GAG  actually  urged  Caldwell  to 
seek  more  money  and  stiff 

But  his  report  to  Congress  last  year  was 
typical,  when  he  boasted  to  the  Appropria- 
tions subcommittee  that  he  was  operating 
with  175  employees  nationwide.  23  fewer  than 
two  years  earlier  At  the  same  time,  he  was 
admitting  to  the  subcommittee  that  the  CEA 
workload,  customer  complaints  and  evidence 
of  serious  violations  of  the  commodity  ex- 
change act  were  rapidly  Increasing  and  were 
"a  matter  of  concern" 

"I'm  not  a  great  one  for  spending  public 
funds."  he  explains.  "I'm  all  for  self-poJlclng. 
as  far  as  It  can  go  '  To  prove  that  he  believes 
In  letting  the  big  commodity  traders  regulate 
themselves.  Caldwell  says  that  the  CEA  last 
year  referred  111  possible  violations  of  fed- 
eral law  to  the  exchanges  themselves  for 
investigation  and  action. 

TOO    MANT    OASIS 

In  lu  1965  investigation,  the  OAO  charged 
that  CEA  was  not  making  a  sufficient  nmn- 
ber  of  probes  of  the  major  commodltiss  to 


December  20,  197 S 


CONGRESSIONAL  RECORD  —  SENATE 


42703 


uncover  aiid  halt  price  manipulation  at- 
tempts. At  that  time,  the  CEIA  had  never 
Investigated  the  soybean,  soybean  oil  and 
soybean  meal  futures,  which  are  three  of 
the    biggest    commodities    traded. 

Today,  with  the  commodity  market  tripled 
In  size,  there  aitlll  has  not  been  an  over-all 
Investigation  to  see  If  soybean  trading  is 
being  operated  honestly  because,  according 
to  Caldwell,  "it  would  tie  up  our  whole  staff 
for  a  year." 

One  reason  Caldwell  Is  short-staffed  Is 
that  a  year  ago  he  voluntarily  gave  up  some 
personnel  In  exchange  for  a  computer  pro- 
gram which  was  to  spot  price  manipulations 
and  other  possible  market  violations.  Now 
the  computer  project  has  been  Judged  a 
failure  by  the  CEA  because  11  was  spotting 
too  many  cases. 

Caldwell  said  the  computer  kicked  out  so 
many  cards  Indicating  various  deceptive 
trading  practices  that  It  was  Impossible  for 
his  small  staff  to  process  them  adequately. 
Blaming  computer  errors  for  "the  moun- 
tain of  paper  the  computer  kicked  out," 
Caldwell  abandoned  the  system  as  "un- 
needed  '  and  "unworkable." 

The  GAG  report  found  that  In  the  rare 
cases  where  the  CEA  did  conduct  market  In- 
vestigations. It  did  find  abusive  trading 
practices  such  as  cheating  of  customers  by 
traders,  filing  of  false  reports,  and  false  and 
Illegal  transactions  by  traders.  The  GAG 
auditors  decided  to  conduct  their  own  in- 
vestigation at  one  of  the  major  exchanges 
and  during  one  three-month  period  turned 
up  47  cases  of  "questionable"  trading  prac- 
tices. 

One  of  the  most  serious  shortcomings  of 
the  CEA,  according  to  the  congressional 
agency,  was  Its  failure  at  that  time  to  evalu- 
ate the  effect  on  futures  prices  of  "floor 
trading,"  where  a  trader  at  the  commodity 
exchange  Is  permitted  to  buy  and  sell  not 
only  for  the  customers  he  serves,  but  for 
himself  as  well.  Professional  floor  traders, 
because  of  their  specialized  knowledge  and 
constant  presence  In  the  exchange,  "enjoy 
special  advantages"  over  other  people  who 
might  want  to  buy  and  sell  commodities, 
said  the  GAG  And  floor  trading  raises  the 
possibility  of  serious  conflicts  of  interest.  In 
which  a  floor  trader  might  obtain  more  favor- 
able deals  for  his  own  account  than  for  those 
of  his  customers,  the  agency   noted. 

Another  problem  said  the  GAG,  Is  that 
Caldwell's  agency  has  repeatedly  failed  to 
Inspect  the  records  of  the  commodity  ex- 
changes to  check  whether  they  really  ex- 
ercise their  self-policing  function  by  ade- 
quately punishing  violators  within  their 
n^ldst. 

Yet  today.  Caldwell  still  steadfastly  re- 
fuses to  tackle  these  problems,  saying  that 
he  is  doing  the  best  he  can  with  the  resources 
at  hu  command,  and  dismissing  questions 
such  as  confilct  of  Interest  in  floor  trading 
by  saying  they  are  "low  priority  " 

He  told  Congress  last  year  that  In  1973 
the  CEA  would  spend  less  money,  examine 
fewer  financial  statements  of  commodity 
brokers,  and  conduct  approximately  the  same 
number  of  audits  and  Investigations  as  the 
year   before,   despite   a   burgeoning   market. 

THX    "UTTLB    CtJT"    LOSXS 

The  lack  of  regulation  can  penalize  trad- 
ers, farmers,  consumers  and  Increasing  num- 
bers of  small  Investors  who.  In  the  words  of 
one  Industry  official,  are  "stumbling  pell- 
mell  Into  this  thing  "  In  1967.  for  example, 
there  were  9  million  contract*  traded  at  the 
commodity  exchanges.  By  1973  thU  had 
nearly  doubled  to  a  total  of  178  million 
trades. 

Conunodltles  analysts  Charles  Harlow  and 
Richard  Tewele*  of  Los  Angeles  say  the  rush 
of  small-time  investors  Into  buying  such 
thlr^gs  as  soybeans  and  pork  belly  futures 
"Indicates  a  greediness  on  the  part  of  people 


to  make  money  fast,  it  Indicates  they  have 
more  money  to  spend  and  It  Indicates  many 
people  are  dissatisfied  with  the  relatively 
poor  stock  market  results  In  recent  years.  If 
you  win  in  commodities  you  can  win  big." 
But  Teweles  and  Harlow  say  their  research 
Indicates  "the  ordinary  little  guy  who  specu- 
lates loses  about  98  per  cent  of  the  Ume." 
Some  of  that  risk  Is  due  to  the  complexity 
and  volatility  of  commodities  trading,  but 
some  of  It — no  one  knows  how  much — may 
be  caused  by  maiilpulaUons  and  other  Ille- 
gal market  activities  that  are  never  caught. 
Herbert  Sheldy,  vice  president  of  the  Chi- 
cago Board  of  Trade,  admits  that  "regula- 
tion of  commodities  Is  real  primitive  com- 
pared to  regulations  of  the  securities  Indus- 
try- 
There  are  many  illustrations  of  the  close 
ties  between  the  CEA,  representing  the  pub- 
lic, and  the  commodity  markets  controlled 
by  the  professional  traders: 

Allegations  that  a  group  of  grain  traders 
had  rigged  the  wheat  futures  market  on  the 
Kiinsas  City  Board  of  Trade,  in  order  to  drive 
up  the  government's  subsidy  payments  to 
exporters  at  the  time  of  last  year's  huge 
Russian  wheat  sale,  were  referred  by  the 
CEA  to  the  board  Itself  for  action.  The 
board's  investigation  committees,  which  are 
made  up  of  Influential  board  members,  de- 
cided there  was  "no  basis  for  complaint." 

The  commodity  exchanges  are  permitted  by 
the  CEA  to  set  their  own  membership  stand- 
ards (Often  costly  and  exclusive),  and  to 
adc^t  their  own  rules  of  operation.  For  years, 
the  exchanges  have  set  minimum  commis- 
sion fees  to  be  charged  by  brokers  who  buy 
and  sell  commodities  for  customers.  Brokers 
who  tried  to  charge  lower  fees  have  been  dis- 
ciplined. Finally,  In  late  1971.  the  Justice 
Department  filed  an  antitrust  suit  to  break 
up  the  minimum  fee  setup.  Caldwell,  viho 
had  never  initiated  any  such  action  on  his 
own.  admitted  In  a  document  filed  with  the 
court  In  the  still-pending  case  that  the  min- 
imum fees  are  not  always  related  to  the 
brokers'  actual  costs  and  that  the  public 
would  be  better  off  if  they  were  abolished. 
Exchange  disciplinary  committees,  to 
which  CEA  regularly  refers  alleged  viola- 
tions, operate  free  of  the  most  basic  elements 
of  due  process  that  a  defendant  would  be 
given  in  a  court  of  law. 

TUK    CARCnX    CASK 

When  the  CEA  does  move  against  offenders 
It  often — especially  In  recent  years — permits 
them  to  continue  In  business  with  only  a 
light  penalty.  In  an  ln:y>ortant  case  concluded 
less  than  a  year  ago.  Carglll,  Inc.,  one  of 
the  giants  of  the  grain  trade,  was  found 
guilty  of  an  Ulegal  "squeeze"  of  the  1963 
wheat  futures  market  In  Chicago,  which 
caused  prices  to  rise  to  artificial  levels.  It 
took  the  CEA  eight  years  to  complete  Its 
case  against  Carglll  and  then  It  Imposed 
only  a  meaningless  two-year  probation  rather 
than  a  fine  or  suspension  of  trading  privi- 
leges. A  Carglll  official,  testifying  before  a 
congressional  committee  last  fall,  could  not 
even  remember  whether  the  pr<*atlon  was 
still  In  force. 

Caldwell  admits  the  probation  was,  "in 
effect,  no  sanction."  but  blames  It  on  former 
CEA  Judicial  officer  Thomas  Flavin,  But 
Flavin,  now  retired.  Indicates  that  he  was 
expected  to  go  easy  on  Carglll  He  acted,  he 
says,  "with  the  knowledge  that  no  Secretary 
of  Agriculture  has  ever  penalized  a  big  trader 
by  btuTlng  him  from  trading."  Barring  Carglll 
from  trading  "would  have  been  worse  than  a 
$5  million  fine,"  he  says.  Flavin  is  not  even 
sure  that  the  probation  was  a  legally  im- 
posed penalty,  but  he  notes  that  no  one 
complained:  "IX.  Is  a^arent  that  these  com- 
panies won't  come  into  court  and  challenge 
It  by  saying,  'You've  been  too  soft  on  me.  You 
should  have  put  me  out  of  business  '  " 

Ironically,  the  number  of  market  manipu- 
lations alleged  by  the  CEA  has  declined  at 


the  same  time  market  volume  was  booming. 
In  the  1960s,  only  six  such  cases  were  filed, 
compared  with  14  in  the  previous  decade. 
And  the  CEA's  slowness  m  moving  against 
prlce-rlgglng  is  typified  by  the  alleged  egg 
price  manipulation. 

Private  suits  by  investors  who  were  stung 
In  the  egg  futures  game  were  filed  in  the 
spring  and  fall  of  1970,  but  It  was  two  years 
later— October,  1972— before  the  CEA  filed  a 
complaint  against  a  large  food  processing 
company  and  others,  charging  them  with 
conspiring  to  Inflate  egg  futures  prices. 

William  Phelan,  who  heads  the  Depart- 
ment of  Audits  and  Investigations  at  the 
500-member  Chicago  MercantUe  Exchange, 
says  the  alleged  egg  manipulation  there  went 
on  for  a  year,  and  he  estimates  it  raised  the 
retaU  cost  of  eggs  by  a  dime  a  dozen. 

A  Chicago  lawyer  famihaj  with  the  inside 
working  of  the  Commodity  market  says  A 
regulatory  agency  like  the  CEA  should  be 
able  to  move  with  lightning  speed,  but  they 
drag  the  cases  out  and  then  impose  a  rela- 
tively  meaningless   punishment" 

The  need  for  swift  enforcement  Increases 
as  mc*e  small  investors  become  fascinated 
with  ccHnmodlty  trading  and  run  the  risk  of 
losing  money  in  the  complexities  of  an  un- 
regulated market.  For.  as  the  federal  circuit 
court  stated  in  the  Carglll  ruling,  "The 
methods  and  techniques  of  manipulation  are 
limited  only  by  the  Ingenuity  of  man." 

[From  the  Des  Moines  Register. 
Mar.  19,  1973] 
Revzal    CEA    Was    Wakned    in    On.    Dial 
■'Advance  Tips"   in   DkAncelis  Case 
(By  James  Rlsser.  George  An  than,  and 
Clark  Mollenhoff ) 
Washington,  DC— A  long-hidden  govern- 
ment report  shows  that  the  U3.  Commodltv 
Exchange  Authority    (CEA)    had  ample   ad- 
vance  warning  of  wheat  eventuallv   turned 
into  one  of  the  biggest  scandals  In"  the  his- 
tory   of    commodity    trading,    but    did    vir- 
tually nothing  to  stop  It. 

CEA  was  given  numerous  tips,  some  of 
them  from  knowledgeable  commodity  trad- 
ers, on  the  Impending  tl50-mllUon  salad  oU 
swindle  by  Anthony  (Tlno)  DeAngells,  but 
took  a  hands-off  attitude  and  "'passively 
watched  DeAngells  gain  control  of  the  soy- 
bean oil  anc*  cottonseed  oil  markets,  the  re- 
port charges. 

NEEDLESS    COLLAPSE 

Had  the  CEA  been  more  vigorous  In  its 
regiUatory  activities,  the  eventual  collapse  of 
the  scheme  and  the  severe  financial  damage 
that  resulted  to  more  than  50  banks  and 
brokerage  houses  might  have  been  avoided. 
it  concludes. 

The  report  was  written  in  1966  by  Lester 
Condon,  then  Inspector  general  of  the  U5 
Agriculture  Department,  but  was  never  dis- 
closed publicly.  It  became  available  for  the 
first  time  last  week  after  members  of  the 
House  Appropriations  Committee  learned  of 
its  existence  from  a  recent  series  of  articles 
by  The  Des  Moines  Register,  and  forced  its 
release. 

However,  the  Inspector  general's  report 
says  "there  were  a  number  of  poslUTe  actions 
OKA  could  have  taken,"  including  Inrestl- 
gatlon  of  the  tips,  examination  of  DeAngells" 
trading  records,  and  warnings  to  the  commo- 
dity exchanges  that  the  bottom  might  fall 
out  of  the  commodity  markets. 

The  case  demonstrated  at  that  time,  said 
the  Inspector  general,  "that  generaUv  CEA 
did  not  perform  with  maximum  effectiveness 
Its  regxilatory  function  ...  A  consenatlve 
Interpretation  of  the  (commodity  exchange) 
act  has  resulted  In  a  passive  rather  than  an 
acUve  or  aggressive  approach  to  regulatorr 
control." 

A  1971  study  by  Condon's  succcMor,  In- 
spector General  Nathaniel  Kossack  alleges 
that  many  of  the  same  deficiencies  still  exist 


t2704 


CONGRESSIONAL  KiCORD  — SENATE 


In  CSA's  policing  of  commodity  trading  That 
report  too  had  been  withheld  and  also  was 
dellyered  to  the  house  committee  last  week 

The  19«5  study  was  aimed  spectflcally  at 
assessing  CEAs  performance  In  the  case  of 
DeAngells.  who  finally  went  to  federal  prison 
after  It  was  revealed  that  he  had  used  fake 
warehouse  receipts,  representing  non-exist- 
ent stocks  of  salad  oils,  to  obtain  millions 
of  dollars  in  loans 

DeAngelis'  Arm.  the  allied  crude  vegetable 
oil  refining  corp  .  went  bankrupt  after  the 
scheme  collapsed. 

The  Inspector  general's  report  says: 

HAD     ■EI>08T5 

'  C£A  files  disclosed  that  since  1954  (re- 
peat 1954)  CEA  bad  reports  of  numerous 
allegations  and  suspicions  with  regard  to  De- 
Angelis' transactions,  such  as  price  manipula- 
tion, wasn  (fictitious  I  and  prearranged 
trades,  unusual  methods  and  volume  of  ex- 
plt  tradUig.  failure  to  file  reports  and  to 
notify  CEA  of  controlled  accounts. 

"CEA  conducted  numerous  fruitless  inves- 
tigations. Increased  market  surveillance  with- 
in CEA,  and  passively  watched  DeAngelis 
build  up  his  holdings  of  long  futures  posi- 
tions in  1983  to  98  per  cent  of  the  December 
cottonseed  ml  future  and  92  per  cent  of  all 
futures  In  cottonseed  oU.  and  39  per  cent  of 
tot<U  long  positions  In  soybean  oU." 

One  of  CEA  s  responsibilities  under  the  law 
la  to  prevent  speculators  from  manipulating 
or  cornering  the  market,  in  ways  that  arti- 
ficially boost  or  depress  prices  of  grains  and 
livestock  traded  at  the  commodity  exchanges 
Domination  by  one  firm  in  the  trading  of  a 
particular  commodity  future  is  a  common 
warning  signal  to  the  government  investi- 
gators that  something  may  be  amiss 

In  1961,  the  Inspector  general  revealed,  the 
chairman  of  the  directors  of  the  Chicago 
Board  of  Trade  told  the  CEA  compliance  di- 
vision director  that  he  had  numerous  com- 
plaints that  an  oil  man'  was  rigging  the 
market "  in  soybeans,  soybean  oil  and  soy- 
bean meal. 

But  no  InvestlgaUve  file  was  opened  on 
the  matter  "  by  CEA.  and  the  agency's  files 
do  not  show  any  efforts  to  learn  the  Identity 
of  the  oil  man.  "  to  Identify  or  Interview 
the  complaints,  or  to  obtain  details  on  how 
the  rigging  was  being  performed,  the  In- 
spector general  said. 

About  the  same  time,  in  March  of  1961 
says  the  report,  the  CEA's  exchange  super- 
visor at  Chicago  was  specifically  told  by  four 
persons  "that  the  oil  market  was  being  rigged 
by  DeAngelis.  through  the  Commodity  News 
Services  (CN8)  "  The  Informants  said  DeAn- 
gelis owned  4.000  to  5  000  tanks  of  oil  that 
were  not  correctly  refiected  In  his  publicly- 
stated  market  positions.  Again.  CEA  did  vir- 
tually no  Investigating,  the  report  says 

In  January  1963.  CEA  received  a  written 
^mplalnt  that  DeAngelis  and  another  man 
were  manipulating  the  soybean  on  markeU, 
but  again  no  thorough  checking  was  done  by 
the  agency.  It  continues 

An  Investigation  of  DeAngelis  finally  was 
begun  In  a  limited  way  in  mid -November, 
1963,  but  concentrated  mainly  on  determin- 
ing whether  there  was  a  legally-definable 
manipulation  or  "comer, "  the  inspector  gen- 
eraJ  says. 

I»0    LNIKMTIOI* 

CEAs  probe  was  '(xmducted  with  no  real 
Intention  of  ever  using  the  Information  de- 
veloped, and  was  stopped  before  sufficient 
facts  were  developed  to  determine  whether  a 
vioUtion  had  ocrorred.  the  report  says. 

When  the  Inspector  general's  office  itself 
gave  CEA  eight  documenu  that  Indicated  dis- 
semination of  ral«e  Information  by  DeAngelis 
and  an  attempt  by  him  to  deliberately  affect 
future*  market  prices,  the  CEA  did  not 
purwue  It  but  Instead  "ratlonaltzed  that  no 
manlpuUtlon  ocoirred.  the  report  says 

CEA   had  other  wamingB  that  DeAngelis 


should  be  watched.  It  continues  In  1955,  New 
York  City  CEA  officials  found  that  In  a  space 
of  two  months  DeAngelis  failed  37  times  to 
file  required  reports  and  in  eight  other  cases 
filed  "Inaccurate  reports,  says  the  study 
And  at  one  point  in  1»«3.  the  Chicago  Board 
of  Trade  bcured  him  from  trading  for  30  days 
because  he  had  engaged  in  wash  trading,  but 
CEA  took  no  action 

The  agency  was  •remiss.-  the  inspector 
general  concluded  Had  It  Investigated  or 
denied  him  trading  privileges  at  exchangee 
at  that  point,  the  false  warehouse  receipu 
might  have  come  to  light  earlier  as  DeAngelis 
was  forced  to  liquidate  his  outstanding  fu- 
tures contracts  for  salad  oils,  he  said 

■The  review  of  the  CEA  Investigative  flies 
concerning  DeAngelU  disclosed  that  the 
material  was  in  a  state  of  confusion, "•  the 
report  says  "CEA  Is  understaffed  to  the 
extent  that  necessary  functions  cannot  be 
performed  " 

At  the  least.  It  says.  CEA  could  have  warned 
officials  of  the  Chicago  Board  of  Trade  and 
the  New  York  Produce  Exchange  that  Allled's 
holdings  In  oU  futures  threatened  to  cause 
price  disruptions.  Had  the  agency  pressed 
the  Issue  DeAngelis  "would  have  feared  ex- 
posure" and  might  have  been  forced  to  halt 
his  activities,  the  report  contends 

CaldweU  has  argued,  as  he  did  before  the 
House  committee  only  last  Thursday,  that 
CEA  could  do  nothing  In  the  DeAngelis  case 
and  that  the  use  of  money,  obtained  from 
false  warehouse  receipts,  to  buy  future  con- 
tracts was  no  violation  of  the  Commodity 
Exchange  Act. 

But  the  Inspector  general's  report  disa- 
grees "The  passing  of  false  warehouse  re- 
ceipts, with  the  detection  thereof,  many  of 
which  pre8\imably  were  used  as  the  basts  for 
hedging  and  establishing  new  futiires  con- 
tracts, would  have  resulted  In  charges  of  vi- 
olation of  section  4(C)  of  the  act."  (That 
section  prohibits  a  number  of  Illegal  types 
of  sales  and  false  reporting  of  prices) 

Subsequent  Investigations  showed  that 
DeAngelis  concealed  the  ownership  of  cer- 
tain commodity  trading  accounts  and  thus 
falsely  reported  his  trading  activities,  the 
report  notes  Also,  the  Allied  firm's  holdings 
did  not  constitute  bona  fide  "'hedging""  con- 
tracts. It  says. 

The  Inspector  genehal"s  report  says  that 
Caldwell,  given  a  chance  to  review  its  con- 
tents, "'expressed  no  disagreement  with  the 
facts  "  although  he  resisted  some  of  lU  rec- 
ommendations. One  he  opposed  was  that 
CEA's  Investigative  function  be  turned  over 
to  the  Inspector  general's  staff 

Aside  from  the  DeAngelis  case,  the  1966 
report  rapped  CaldweU  for  reducing  the  num- 
ber of  CEA  Investigations  of  trading,  for  not 
seeking  sufficient  funds  to  hire  enough 
skilled  personnel,  for  suspending  Its  regular 
audits  of  traders'  records  (audits  which  the 
Inspector  general  said  are  "a  prerequisite  of 
effective  regoiiatlon") .  and  for  deferring  mar- 
ket-wide surveys  of  trading  operations. 

"CEAs  policy  of  selecting  only  oerUln  com- 
plalnu  or  allegations  for  Investigation,  be- 
cause of  limited  manpower,  has  contributed 
In  part  to  compliance  responslbUltles  not 
being  handled  adequately."  the  inspector 
general  said  then. 

"Some  complaints  and  allegatlotia  of  possi- 
ble violations  of  the  act  were  not  Investi- 
gated or  even  preliminarily  pursued  to  de- 
termine the  need  for  Investigation  CEA  did 
not  always  aggressively  pursue  Investigations 
undertaken  by  attempting  to  obtain  all  per- 
tinent facts.  Consequently,  some  aUegatlons 
remained  unresolved  as  to  whether  viola- 
tions of  the  act  had  occurred  "' 

The  agency  failed  to  make  stire  It  was  get- 
ting accurate  Infortnatlon  from  traders,  and 
failed  to  refer  criminal  violations  of  the 
commodity  exchange  act  to  the  d«partmen.t 
of  Justice,  it  added. 


December  20,  1973 

[Prom  the  Des  Moines  Register.  Apr   8.  1978) 
Crr»  Ea«i.t  Wa«nino,  Rap  Handuno  or  Eco 
T\J-rv%xa 
(By  James  Riaser  and  George  An  than) 
Cricaoo.  Iix— Worried  officials  of  the  Chi- 
cago Mercantile   Exchange   tried   unsuccess- 
fully in  1970  to  convince  federal  regulators 
that  egg  futiu-es  trading  at  the  exchange  had 
been  Ulegally  manipulated  for  nearly  a  year. 
They   went   to  Washington,   DC  ,   In  Sep- 
tember. 1970.  and  gave  Alex  C    Caldwell,  ad- 
ministrator of  the  0.a.  Commodity  Exchange 
Authority     (CEA).    evidence    showing    that 
prlce-ngglng  had  been  occurring  in  the  egg 
market  continually  since  November,  1969. 

But.  more  than  two  years  elapsed  before 
Caldwell  filed  a  complaint  against  a  group 
of  egg  traders  The  CEA  complaint  alleged 
price  manipulation  on  only  one  trading  day, 
and  Caldwell  maintains  that  he  knows  of 
no  other  manipulations. 

CKA's  handling  of  the  case  Is  criticised 
sharply  in  a  recenUy  released  government 
audit  that  accuses  the  agency  of  "inade- 
quacy" in  regulaUng  commodity  markets  to 
prevent  price  manipuiatlons  that  harm  con- 
sumers, farmers,  and  commodity  traders. 

The  audit,  conducted  by  the  Office  of  In- 
spector General  (OIG)  of  the  UJ3  Agricul- 
ture Department,  discloses  a  probable  prlce- 
rlgglng  in  January,  1970.  egg  trading — some 
eight  months  earlier  than  the  date  cited  In 
the  complaint  CEA  eventually  filed  against 
Tyson  Poods.  Inc..  of  Sprlngdale,  Ark.,  and 
other  defendants. 

An  unnamed  official  of  the  Chicago  Mer- 
cantUe  Exchange  told  the  OIG  Investigators 
that  egg  futures  trading  could  be  manipu- 
lated "at  will, "  and  the  official  was  'critical 
of  CEA  inaction  on  cases  in  which  manipu- 
lation was  evident.  "  the  report  says. 

CaldweU  refused  to  comment  on  any  aspect 
of  the  OIG  report  when  questioned  about  It 
last  week.  He  would  not  say  why  his  agency 
filed  no  charges  regarding  the  manipulation 
of  the  January.  1970.  egg  futures  trading 
suggested  by  the  OIG  report. 

An  Investigation  by  The  Des  Moines  Reg- 
ister In  February  found  that  price  rigging  of 
the  egg  futures  market  In  Chicago  In  1970 
continued  undetected  for  nearly  a  year  and 
boosted  the  supermarket  price  of  eggs  by  as 
much  as   10  cents  a  dozen. 

CaldweU,  in  a  March  14  report  to  Assistant 
Agriculture  Secretary  Clayton  Yeutter,  de- 
nied a  long-standing  manipulation  of  the 
egg  market  and  disputed  the  charge  that 
reUU  egg  prices  had  been  affected. 

"wo  rNDICA'nON" 

Noting  that  CEA  had  filed  charges  against 
Tyson  Poods  for  manipulating  egg  futures 
prices  on  Sept.  31,  1970,  Caldwell  told  Yeut- 
ter "there  Is  no  Indication  that  his  manipu- 
lation occurred  over  a  long  period  of  time 

"Our  very  exhaustive  Investigation  was 
able  only  to  gather  evidence  showing  manip- 
ulation on  the  final  trading  day"  for  Sep- 
tember egg  futures  contracts,  said  CaldweU. 

A  few  days  later,  a  House  appropriations 
subcommittee  forced  the  release  of  the  pre- 
vlousy  secret  OIG  report  that  disputes  Cald- 
weU's  handling  of  the  egg  investigation. 

The  report  says  the  OIG  Investigators 
"found  that  several  officials  of  the  Chicago 
MercantUe  Exchange  visited  the  administra- 
tor (CaldweU)  In  Washington,  in  September. 
1970  At  that  time,  they  presented  CEA  with 
evidence  that  they  believed  could  be  used  to 
substantiate  that  the  fresh  shell  egg  futures 
had  been  manipulated  every  month  since  No- 
vember.  1969." 

One  exchange  official  told  the  OIG  later 
th»t  members  of  United  Egg  Producers 
(tTKP),  who  produce  more  than  S6  per  cent 
of  the  eggs  in  the  VB  .  "use  the  futures 
market  for  manipulation,"  the  report  says, 
COKTBOL  cnxD 
Because  nearly  all  the  egg  packers  were 
"controlled  by  UEP,"  they  "could  manipulate 


December  20,  1978 


CONGRESSIONAL  RECORD  — SENATE 


tht  futures  market  at  will  by  refusing  to 
make  deliverable  stocks  available,  at  flood- 
ing the  market  with  deliverable  eggs,  which- 
ever was  to  their  advantage."  the  exchange 
official  said. 

At  that  time,  says  the  OIG  report,  the 
Business  Conduct  Committee  of  the  Mercan- 
tUe  Exchange  '"had  meetings  nearly  every 
month  concerning  fresh-shell  egg  futures 
operations."' 

But  the  CEA  was  t&klng  no  action,  and 
when  the  MercantUe  Exchange  tried  to  head 
off  manipulations  by  forcing  traders  to  dis- 
pose of  their  overly  large  egg  futures  hold- 
ings, the  exchange  was  "often  threatened 
with  lawsuits  "  by  the  traders,  said  OIG 

The  report  quotes  CEA  economists  as  being 
concerned  generally  about  the  posslbUlty  of 
price  manipulation  in  egg  futures  trading, 
because  of  InstabUlty  and  other  problems 
In  the  pricing  of  both  cash  egg  sales  and  egg 
futures  contracts. 

The  egg  marketing  situation  Is  such  that 
traders  with  Wirehoused  eggs  are  able  to 
"squeeze  "  both  those  holding  contracts  to 
buy  future  supplies  of  eggs  and  those  holding 
contracts  to  sell  egg  futures,  one  economist 
said.  Thus,  egg  prices  could  be  artificially 
forced  either  up  or  down. 

The  OIG  Investigators  undertook  their  own 
Investigation  of  January.  1970.  egg  futures 
trading,  and  said  If  "disclosed  factors  Indica- 
tive of  minlpulatlon."  Including  price  fluc- 
tuations and  unusually  high  futures  prices. 

The  CEA  took  no  action  with  regard  to  the 
January,  1970.  trading,  except  for  what  the 
OIG  caUed  "a  belated  analysis  "  No  charges 
were  filed  by  CEA. 

WUllam  Pheliii.  director  of  audits  and  In- 
vestigations for  the  Chicago  Mercantile  Ex- 
change, In  an  interview  in  Chicago  last  week. 
Indicated  agreement  with  the  OIG  sugges- 
tions that  the  price  manipulation  continued 
over  many  months. 

CIVKN    ANALYSES 

He  said  that  as  best  he  could  recall,  CEA 
officials  in  Washington  were  given  analyses 
of  the  cash  and  futures  prices  for  eggs,  the 
total  dealings  in  egg  futures  contracts,  and 
the  futures  holdings  of  those  suspected  of 
perpetrating  the  manipulation. 

Phelan  said  he  made  a  number  of  visits  to 
Washington  on  various  matters  in  1970  and 
did  not  specificaUy  recall  which  exchange  of- 
ficials met  with  Caldwell  at  the  time  cited 
by  the  OIG.  But  he  said  he  thought  It  was 
himself.  Exchange  President  Everette  B.  Her- 
rls,  and  one  or  two  other  exchange  officials 

Phelan  said  the  fact  that  a  group  of  per- 
sons from  the  same  area  of  the  US  had  un- 
usuaJly  heavy  holdings  in  contracts  to  pur- 
chase egg  futures  was  a  tip-off  of  a  probable 
prlce-rlgglng  attempt. 

Though  he  expressed  agreement  with  the 
OIO  about  a  contlniilng  egg  manipulation. 
Phelan  refrained  from  criticizing  CEA  han- 
dling of  the  case  and  said  CEA  regional  per- 
sonnel in  Chicago  were  helpful  to  him  In 
the  case. 

He  pointed  out.  however,  that  the  CEA  re- 
quires traders  to  report  their  egg  futuree 
holdings  only  if  they  number  more  than  35 
contracts,  while  the  MercantUe  Exchange  re- 
quires Ite  own  members  to  report  holdings 
of  more  than  five  contracts  in  order  to  af- 
ford the  exchange  with  better  surveUlance 
of  trading  activity 

REJECTS     (StTESTIONS 

In  Washington.  CaldweU  rejected  all  ques- 
tions about  the  CEA's  handling  of  the  egg 
matter,  by  saying  that  he  had  offered  his 
views  to  the  OIO  at  the  time  It  made  recom- 
mendations for  Improvement  of  CEA  regula- 
tory activities. 

Two  private  lawsuits,  one  charging  manip- 
ulation of  the  March.  1970.  egg  futures  trad- 
ing, and  another  charging  manipulation  of 
September,  1970.  egg  futures,  are  pending  m 
federal  court  In  Chicago. 

The  lawBulU  allege  that  the  various  de- 


42705 


fendants  conspired  to  maintain  "a  false, 
fraudulent  and  inflated  price  In  egg  futures." 
The  two  suite  were  filed  In  May  and  Octo- 
ber, 1970.  Despite  the  two  cases  and  the  In- 
vestigation that  resulted  In  the  OIO  report 
being  Issued  in  September,  1971.  CEA  did  not 
move  against  any  alleged  manipulators  un- 
tU  October.  1973.  The  CEA  complaint  Is  still 
pending. 

[Prom  the  Des  Moines  Register,  Apr   26 
1973) 

Wins  CoMMonrrT-DEALra  Court  Battle, 
Caiv't  Collkct 

(By  James  Riaser  and  George  An  than) 

Washington,  DC— U£.  Agriculture  De- 
partment secrecy  and  lack  of  concern  over 
a  proven  fraud  have  made  It  Impossible  for 
75-year-old  Bernhard  Rosee  to  coUect  a 
1700,000  lUlnols  court  Judgment  against 
c<~mmodlty  dealers  at  the  Chicago  Board  of 
Trade. 

Alex  C  CaldweU,  who,  as  admlnlstraeor  of 
the  Commodity  Exchange  Authority  (CEA), 
U  the  top  government  poUceman  over  the 
oommodlty  markets,  suid  Henry  H.  Wilson,  Jr., 
president  of  the  Chicago  Board  of  Trade  have 
refused  to  oome  to  Rosee 's  aid. 

WON   CASK 

When  the  elderly  Austrian  immigrant  won 
his  case  last  August,  It  apparently  brought 
to  a  successful  close  his  battle  of  more  than 
a  decade  to  prove  that  he  had  been  defrauded 
of  his  license  as  a  commodity  trader  at  the 
Board  of  Trade. 

But  today,  eight  months  later,  he  seenjs 
no  closer  to  collecting  his  money  or  to  re- 
suming his  profession.  Appeals  of  the  caae 
seem  likely  to  consume  two  or  three  years 

Rosee  charges  that  the  CEA,  which  has 
consistently  refused  to  give  him  copies  of 
agency  records  related  to  his  case,  is  engaged 
in  "an  executive  cover-up  Just  like  the  Water- 
gate  case.   They  are  tn'lng   to  destroy  me  " 

Such  a  strong  statement  might  seem  ex- 
treme were  it  not  for  the  Augiist  ruUng  by 
Judge  Nathan  M  Cohen  that  offlcal  records 
had  been  altered  and  hidden  in  order  to 
thwart  Rosees  bid  for  Justice  for  12  years. 
The  Chicago  Board  of  Trade  hearing,  at  which 
Rose©  was  stripped  of  his  board  membership, 
was  "a  travesty."  the  Judge  declared 

Nevertheleaa,  these  are  the  positions  taken 
by  the  exchange  officials  and  government  reg- 
ulations Involved 

WUton,  the  president  of  the  board  of  trade, 
said  In  a  telephone  Interview  Tuesday  the 
exchange  has  taken  no  action  to  restore 
Rosee's  membership  and  does  not  feel  any 
obligation  to  examine  the  court's  findings 
that  the  board  hearing  was  a  travesty.  No 
disciplinary  actions  are  contemplated  against 
two  board  members  whom  the  court  found 
defrauded  Rc>se«,  he  said. 

Sam  Gordon,  who  Is  now  CEA's  regional  di- 
rector at  K&.Tsas  City,  Mo.,  refuses  all  com- 
ment on  his  role  In  investigating  the  agency"s 
Chicago  office  All  questions  relating  to  the 
destruction  of  commodity  trading  records 
and  CEA's  refusal  to  aid  Rosee  !n  obtaining 
proof  were  reTerred  bv  Gordon  to  Adminis- 
trator Caidwen  In  Washington. 

Caldwell,  despite  t,he  strong  language  of 
Judge  Cohen's  decision,  has  reported  to  As- 
sistant Agriculture  Secretary  Clayton  Teutter 
that  after  a  thorotigh  Investigation,  the  CEA 
does  not  have  evidence  that  would  support  a 
charge  that  Baggott  and  Morrison  (the  Chi- 
cago commodity  brokers  who  were  defendants 
In  the  case)  defrauded  Rosee."' 

O&ldwell  declined  to  reopen  the  CEA's  in- 
vestigation following  Judge  Cohen  "s  ruling 
and  Insisted  that  "our  actions  In  this  esse 
have  been  proper  all  along  ' 

Citing  possible  "unwarranted  invasions  of 
privacy."  CaldweU  has  continued  his  refusal 
to  give  Rosee  government  records  thftt  Rosee 
says  would  permit  him  to  trace  money  which 
was  allegedly  taken  from  his  account  and  put 


In  other  cwnmodlty  trading  accounts  han- 
dled by  the  Baggot  and  Morrison  firm. 

Judge  Cohen,  noting  that  the  CEA  was  not 
a  defendant  in  the  case,  avoided  any  criti- 
cism of  the  agency's  performance  during  a 
telephone  Interview  with  The  Register.  But 
he  said,  ""I  have  never  known  of  any  ad- 
ministrative agency  that  did  not  have  the 
power  to  order  production  of  records  by  any- 
one coming  under  Its  Jurisdiction."" 

The  Judge  said  ""records  were  suppressed 
secreted,  and  not  made  available'"  In  the  case. 
"The  evidence  satisfied  me  that  the  defend- 
ants had  not  dealt  honestly  with  Rosee"  he 
said. 

Judge  Cohen  ordered  the  three  defend- 
ants—Partners James  E.  Baggot,  jr..  and 
Donold  W.  Morrison,  and  their  office  manager 
Harris  Haywood— to  post  bonds  totaling 
•700.000  If  they  wished  to  appeal  hte  decision. 

BOND    REDUCED 

But   an   appellate  court   has   reduced   the 
bond  to  »1 00,000  per  defendant  and  Baggot 
now  has  filed  an  appeal  Morrison  and  Hay- 
wood have  not  yet  done  so. 

The  complex  case  essentially  revolves 
around  the  claim  by  'he  Baggot  and  Morrison 
Ann  that  Rosee  owed  them  substantial 
amounts  of  money  which  he  had  lost  In  buy- 
ing and  selling  futures  contracts  in  soybeans 
and  other  commodities  m  1959 

Rosee  said  he  actually  was  making  money 
but  that  funds  had  been  taken  from  his 
account.  At  the  same  time,  he  said  other 
trading  accounts,  which  showed  deflcl'ts  had 
been  charged  to  his  name. 

One  of  hU  major  efforts  has  been  to  find 
out  from  either  the  Board  of  "Trade  or  the 
CEA  the  ownership  of  all  Baggot  and  Mor- 
rison acooimts  at  the  time— particularly  a 
mysterious  "account  number  35 ""  which 
Rosee  claims  was  wrongfully  assigned  to  him 

He  also  has  demanded  unsuccessfully  to 
know  who  prepared  certain  records  submit- 
ted to  the  courts  by  Baggot  and  Morrison  and 
by  the  CEA,  some  of  which  appear  to  be  false 
because  they  combine  Baggot  and  Morrtson"s 
own  "house"  accounts  with  the  accounts  of 
their  customers— a  violation  of  federal  regu- 
lations requiring  that  customers'  accounts 
and  a  brokerage  Arms  own  accounts  be 
"segregated"  and   not  mixed. 

CUTTING   PACES 

Rosee  s  board  of  trade  membership  was 
taken  away  in  1961  because  of  the  alleged 
shortage  In  his  accoimt.  In  1963,  wMle  Rosee 

and  his  lawyer  were  pursuing  the  records 
needed  to  prove  their  case  thev  caught  office 
manager  Haywood  cutting  or.lon-skln  pages 
from  oommodlty  trading  books  which  the 
law  requires  trading  .^rms  to  keep  According 
to  Rosee,  the  pages  dealt  with  the  firm's  trad- 
ing  activities  during  the  period  crucU'  to  his 
case. 

DestrucUon  of  commodity  trading  records 
is  a  violation  of  federal  Uw  and  Soeee  and  his 
lawyer  say  they  reported  the  incident  to  the 
CEAs  Chicago  office 

But  Gordon  refuses  to  answer  any  ques- 
tions as  to  whether  he  was  Informed  of  the 
removal  of  records  from  Baggot  and  Morrison 
account  books. 

And  CEA  Chief  Caldwell  m  Washington 
contends  he  didn't  hear  of  the  incident  untu 
1972.  saying  that  by  that  time  it  was  too  late 
to  take  any  action. 

Melvln  Brandt  Roeee"s  long-time  lawyer 
charged  thijt  the  strategy  of  the  defendants 
the  Board  of  Trade  and  the  CEA  has  been 
that  Rosee  may  die  before  the  case  Is  Anally 
setUed.  But  he's  a  stubborn  guy."  said 
Brandt.  "He  may  outlive  them  all." 

I  Prom  the  Des  Moines  Register.  May  15.  1973) 

CE.f  Desthots  Ktt  Rxcoaos  in  Pr>ud  Cas* 

Data   Was  Sottoht  in  CoMMODrrT  StTTT 

(By   Gecye   An  than   and    James   Rlsswr) 
Washtncton.    ■DC—Ttit,    U.S.    Commodity 
Exchange    Authority    (CEA)     has    d«sstrrved 


42706 


CONGRESSIONAL  R  t CORD  —  SLN ATE 


key  records  long  sought  by  a  ClUcago,  111., 
man  to  prove  he  was  defrauded  by  a  firm 
of  commission  merchants  and  Illegally 
deprived  of  his  license  as  a  commodity 
broker. 

The  records  were  destroyed  by  the  CEA 
after  their  importance  had  been  emphasized 
to  the  federal  agency  by  an  Illinois  court  and 
by  a  member  of  Congress. 

The  records  had  been  sought  by  Bemhard 
Rosee.  who  last  summer  won  a  $700,000  Il- 
linois court  judgment  against  commodity 
dealers  at  the  Chicago  Board  of  Trade,  after 
a  decade -long  legal  battle. 

Ai^KAI^    TO    NZXON 

Rosee.  however,  also  has  been  deprived  by 
the  Board  of  Trade  of  his  position  as  a  com- 
modity floor  broker  since  1861,  and  he  con- 
tends the  records  would  show  this  action 
was  wrongful. 

Officials  at  the  CE-\s  office  In  Chicago  have 
refused  to  discuss  the  destruction  of  the 
records,  and  Rosee  now  has  appealed  directly 
to   the    White   House   for   help. 

The  CEA  revealed  In  a  letter  to  Rosee  last 
fall  that  the  records  were  destroyed  on  Dec 
IS,  1971  There  had  been  numerous  requests 
for   the   records  prior   to   that. 

An  Illinois  superior  court  Judge  ruled  Ln 
August  that  the  Chicago  brokerage  Arm  of 
Baggot  and  Morrison  defrauded  Rosee  of 
thousands  of  dollars  at  the  same  time  that 
the  Arm  was  charging  Rosee  owed  It  large 
amounts  of  money. 

The  firm  told  the  Chicago  Board  of  Trade 
that  Roeee  was  losing  money  In  his  commod- 
ity trading  accounts,  and  the  board  removed 
Rosee  from  his  trading  seat  and  sold  It  to 
satisfy  this  debt. 

Rosee  contended  that  he  had.  In  fact,  been 
nuiklng  money  In  his  trading.  He  contended 
the  Baggot  and  Morrison  Arm  bad  taken 
money  from  his  account  and  used  it  for  its 
own  purposes.  He  said  only  an  examination 
of  the  accounts  of  all  the  customers  of  Bag- 
got  and  Morrison  would  reveal  what  hap- 
pened to  his  money. 

The  partners  In  the  Arm,  James  E.  Baggot, 
Jr ,  and  Donald  W.  Morrison,  under  orders 
from  the  Circuit  Court  of  Cook  County,  HI  , 
authorized  the  CEA  to  allow  Rosee  and  his 
lawyers  to  Inspect  all  records  dealing  with 
the  Arm's  business 

The  CEA,  however,  backed  by  top  officials 
of  the  US.  Department  of  Agriculture 
(USDA),  refused  to  allow  Rosee  to  see  rec- 
ords except  thoee  relating  directly  to  Baggot. 
Morrison,  or  to  Rosee  himself. 

"NO    HkU'' 

"They  offered  us  only  those  records  that 
wouldnt  help  us,"  s&ld  on©  of  Rosee's  law- 
yers. Melvln  A.  Brandt. 

Roeee  learned  of  the  records"  destruction 
after  he  had  specifically  requested  that  the 
CEA  aUow  him  to  Inspect  1960  reports  out- 
lining the  specific  trades  pxirportedly  made 
by  customers  of  Baggot  and  Morrison. 

He  was  hoping.  Brandt  said,  to  determine 
If  any  profitable  commodity  trades  actually 
made  by  Rosee  had  been  falsely  listed  by  the 
firm  as  belonging  to  another  account. 

He  subsequently  was  notified  by  Robert  W 
Clark.  CEA  director  In  Chicago:  "These  re- 
ports bad  been  retained  up  to  Dec.  15.  1971. 
when  they  were  destroyed." 

Clark  contended  In  his  letter  that  "there 
had  been  no  request  for  these  records  up  to 
that  time."  and  that  "they  were  destroyed  as 
par  of  a  periodic  review  for  disposition  of  old 
records." 

He  said  records  already  had  "been  held 
much  longer  than  the  regiilar  retention  pe- 
riod, which  Is  five  years." 

But  some  18  months  before  the  CEA  de- 
stroyed the  records.  Representative  Kenneth 
Gray  (Dem..  HJ.)  had  requested  that  CEA 
Administrator  Alex  C.  CaldweU  txirn  the  re- 
ports over  to  Roeee. 

Gray.  In  a  letter  to  CaldweU  dated  July  8 
1970.  stated 


December  20,  1973 


"Frankly.  \U.  CaldweU.  I  am  am«Bed  at 
the  attitude  of  the  department  concerning 
Mr.  Rosee's  request  to  see  certain  records  that 
have  a  direct  bearing  on  hU  buslneaa  and  his 
aUegations  that  he  has  been  frauded  (sic)  by 
certain  persona." 

The  oongreMinan  continued.  "I  woxUd 
think  that  the  federal  government  and  Its 
agencies  would  be  the  last  people  to  with- 
hold Information  ordered  by  a  court  of  law." 

"ANT    kin   AIX" 

Oray  referred  to  the  Illinois  circuit  court 
action  under  which  Baggot  and  Morrison 
authorized  Roeee  to  Inspect  "any  and  aU" 
records. 

Oray  noted  that  the  XJS.  Commodity  Ex- 
change Act  prohibits  CEA  employes  from  re- 
leaamg  personal  financial  records  unless  re- 
quired by  a  court  of  competent  Jurisdiction. 

He  stated.  'Mr.  Caldwell,  the  Circuit  Court 
of  Cook  County  U  certainly  a  court  of  com- 
petent Jurisdiction,  and  the  law  explicitly 
does  not  provide  for  any  exemptions  for 
withholding  certain  reports  whUe  releasing 
others" 

Later  in  1970.  Roeee  actually  met  In  Wash- 
ington with  CEA  chief  Caldwell  and  person- 
ally requested  that  the  agency  allow  him  to 
examine  all  records  in  the  case 

Shortly  after  learning  that  the  CEA  had 
destroyed  the  records,  Rosee  asked  in  a  let- 
ter: "Why  did  the  government  claim  up  to 
last  week  that  the  document  that  I  had  re- 
quested was  privileged  and  suddenly  they 
claim  that  these  records  were  destroyed?" 

Rosee  has  contended  that  CEA  officials 
deUberately  withheld  Information  that 
would  show  he  was  not  the  owner  of  the 
money- losing  accounts  that  bore  hU  name 
In  the  Baggot  and  Morrison  records 

Caldwell  8  decision  to  deny  Roeee  access 
to  the  records  he  was  seeking  was  ratified  In 
an  April,  1971.  letter  to  Roeee  from  former 
Assistant  Agriculture  Secretary  Richard 
Lyng. 

Lyng  acknowledged  that  the  department 
could  make  the  records  avaUable  unless  such 
disclosure  would  adversely  affect  the  naUon- 
al  Interest  or  "constitute  an  unwarranted  In- 
vasion of  privacy.'" 

NO  MOVX 

But  he  stated,  ""Our  conclusion  is  that  dis- 
closure would  constitute  an  unwarranted  In- 
vasion of  privacy  of  the  persons  Involved  and 
that  the  identity  of  these  customers  should, 
therefore,  not  be  released." 

Rosee  has  been  unable  to  coUect  the  •700,- 
000  Judgment  awarded  him  by  Judge  Nathan 
M.  Cohen.  Also,  the  Chicago  Board  of  Trade 
has  made  no  move  to  restore  to  him  his 
seat  as  a  commodity  fioor  trader. 

In  desperation.  Roeee  on  May  3  sent  a  tt\«- 
gram   tc   President  Nixon.   teUlng   him: 

"Secretary  of  Agriculture  Carl  Butz  and 
(CEA)  Administrator  Alex  CaldweU  are  ful- 
ly aware  of  the  falsified  and  manipulated 
records  furnished  me.  and  I  must  caU  to 
your  attention  that  Congress  In  1936  set  up 
the  Commodity  Exchange  Authority  to  pro- 
tect the  pubUc  from  being  cheated  and  de- 
frauded. Yet  this  very  agency  Is  now  in  the 
act  of  violating  that  public  trust  '" 

He  continued.  "In  view  of  the  fact  that  I 
am  75  years  old.  In  111  health,  and  was  forced 
to  go  on  relief  for  six  years  because  of  the 
fraud  perpetrated  by  the  Commodity  Ex- 
change Authority  in  withholding  the  true 
records  and  supplying  the  court  with  false 
and  manipulated  records.  I  am  now  appeal- 
ing to  you  to  Issue  an  executive  order  to  the 
Commodity  Exchange  Authority  to  make  all 
pertinent  records  available  In  order  to  en- 
able me  to  recover  the  hundreds  of  thou- 
sands of  dollars  rightfully  due  me  " 


By  Mr  INOUYE: 
S.  2840.  A  bill  to  authorize  the  Secre- 
tary of  Commerce  to  conduct  a  stutl>-  of 
foreign  direct  and  portfolio  Investments 


in  the  United  States  and  for  other  pur- 
poses Referred  to  the  Committee  on 
Commerce,  by  unanimous  consent. 

Mr.  moUYE.  Mr.  President.  I  am  in- 
troducing today  a  bill  to  authorize  and 
direct  the  Secretary  of  Commerce  to  un- 
dertaJce  a  study  of  foreign  direct  and 
portfolio  activities  in  the  United  States. 

Within  the  last  year,  the  subject  of 
foreign  investment  in  the  United  States 
has  come  increasingly  to  the  attention  of 
American  policymalcers  and  the  public. 
Foreign  investment  in  the  United  States 
Is  actu&lly  an  old  phenomenon.  Foreign, 
principally  British,  capital  played  a  ma- 
jor role  in  the  industrialization  of  the 
United  States,  and  some  foreign  firms 
are  so  well  established  that  many  Amer- 
icans think  of  them  as  native  to  this 
country. 

Although  foreign  investment  has  a 
long  and  honored  place  in  American 
business  history,  we  are  currently  wit- 
nessing a  new  and  important  develop- 
ment in  this  area.  Foreign  direct  invest- 
ment in  the  United  SUtes  this  year  will 
reach  a  record  which  could  herald  the 
beginning  of  a  new  and  permanent  trend 
in  investment  flows  into  our  country. 
Whereas  the  United  States  has  long  been 
a  net  exporter  of  capital  the  gap  be- 
tween our  direct  Investment  abroad  and 
foreign  firms'  expenditures  here  will  nar- 
row dramatically  this  year. 

Foreign  direct  investment  in  the 
United  States  wUl  be  well  over  a  billion 
dollars  in  1973  versus  a  mere  $160  mil- 
lion in  1972  and  a  negative  figure  in 
1971.  Furthermore,  net  foreign  purchases 
of  American  equities  were  running  at  an 
annual  rate  of  nearly  $2.9  billion  for  the 
first  half  of  1973,  a  large  Increase  over 
the  previous  year. 

As  of  the  end  of  1972.  the  largest  cu- 
mulative foreign  direct  investor  Ln  the 
United  States  was  the  United  Kingdom 
with  $4.6  billion.  Following  the  United 
Kingdom  were  Canada  with  $3.6  billion, 
the  Netherland  with  $2.3  billion,  Swit- 
zerland with  $1.6  billion,  and  Germany 
with  $807  million.  This  pattern  is  gradu- 
ally changing,  however,  since  these  fig- 
ures represent  accumulated  Investments 
and  not  current  investment  trends. 

In  1972,  the  largest  foreign  direct  In- 
vestor was  Japan,  with  $105  million.  In 
1973.  Japan  again  is  a  major  investor, 
closely  following  the  United  Kingdom 
which  Invested  $225  million  through  the 
first  half.  Japan  is  not  alone,  however, 
m  increasing  Its  direct  Investment  in  the 
United  States,  although  most  of  the  re- 
cent publicity  has  focused  on  Its  activi- 
ties. Much  of  the  reason  for  this  atten- 
tion Is  due  to  the  fact  that  Japan  con- 
stitutes a  new  and  different  source  of 
funds,  but  its  Involvement  in  the  United 
States  is  just  part  of  the  general  phe- 
nomenon that  we  are  currently  wit- 
nessing. 

The  Increase  in  the  flow  of  funds  Is 
due  to  several  factors.  First,  the  evalua- 
Uon  of  the  dollar  has  made  Investment 
In  the  United  States  far  more  reasonable 
than  It  was  before.  In  spite  of  the  recent 
Increase  in  the  value  of  the  dollar  against 
other  currencies,  the  two  devaluaUons 
mean  significantly  cheaper  costs  to  the 
foreign  Investor. 

Moreover,  along  with  a  cheaper  dollar. 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


foreign  firing  are  able  to  lap  lar^e  dollar 
holdings  abroad  t-o  flnanre  their  expan- 
sion In  the  United  States  Poreipn  cor- 
poratlcois  have  gained  in  ."sophistication, 
size,  and  managerial  abilitie.'^  so  thev  are 
able  to  compete  effectively  ever\-where 
The  fear  of  competing  in  the  mntmental- 
sized  American  market  ha';  receded  for 
most  of  these  firms. 

Closely  allied  to  the  devalued  dollar  as 
a  cause  for  the  new  interest  i.'^  the  rela- 
tive cheapness  of  acqulrlnR  an  interest 
in  an  American  firm  The  prenpitou.'?  de- 
cline of  the  stock  market.^  has  meant  that 
many  American  corporations  can  be  ac- 
quired at  reasonable  price.-;,  pos.sjblv  at  a 
much  more  rea.'^onable  price  than  a  com- 
parable Euro!>ean  or  Japane.^e  firm 

Fourth,  the  cost  differential  which 
made  foreiRn  operatiorLs  cheaper  has  now 
either  dl.sappeared  or  narrowed  sub- 
stantially. Wage.";  abroad  have  increased 
at  a  much  fa.ster  rate  than  in  the  United 
States.  Likewise,  the  inflation  which 
both  Japan  and  Western  Europe  have 
suffered  in  recent  years  has  been  worse 
than  In  the  United  States. 

The  result  of  these  two  trends  plus  the 
devaluations  is  that  it  is  now  cheaper  In 
some  instances  to  produce  a  product  In 
the  United  States  than  It  is  to  export 
from  abroad. 

Finally,  foreign  businessmen  are  mind- 
ful of  the  attempts  by  some  Americans 
to  insulate  the  domestic  market  from 
foreign  competition  The  resurgence  of 
protectionism  his  raised  the  possibility 
that  imports  mto  the  United  States  may 
be  acUvely  discouraged  through  high 
tariffs,  quotas  or  nontarlff  trade  barriers. 
The  esUbllshment  or  acquisiticm  of  local 
production  units  for  many  foreign  firms 
may  be  part  of  a  defensive  strategy  to 
forstall  this  possibility. 

The  jump  of  foreign  direct  Investment 
In  the  United  States  raises  many  trou- 
bling questions,  however,  for  which  very 
few  individuals  have  answers.  Within  the 
past  year  the  American  public  has  been 
aroused  by  investments  which  appeared 
to  have  threaterung  aspects  to  them. 

My  home  State  of  Hawaii  is  a  good  ex- 
ample of  what  has  occurred.  In  the  short 
space  of  3  or  4  years  Japanese  investors 
have  poured  between  $200  to  $300  million 
into  Hawaii.  Although  this  sum  is  not 
unduly  large  in  comparison  to  the  gross 
State  product  nor  to  the  total  assets  in 
Hawaii,  this  investment  has  been  con- 
centrated in  the  tourism  industry,  which 
is  Hawaii's  most  important  Industry. 
Japanese  interest  in  Hawaii  has  also 
grossly  inflated  already  high  real  estate 
prices  to  the  point  where  very  few 
Hawaiians  can  afford  new  housing.  And 
to  aggravate  this  situation  further.  Jap- 
anese businessmen  have  not  handled 
their  public  relations  well  and  have  ag- 
gravated several  local  groups. 

This  same  situation  has  apparently  oc- 
curred in  Alaska,  which  like  Hawaii,  has 
a  relatively  limited  economic  base.  It 
may  also  occur  in  other  States  which,  for 
special  circumstances,  prove  to  be  partic- 
ularly attractive  to  foreign  investors. 

In  spite  of  the  alarming  press  reports 
and  local  concerns,  however.  It  is  not 
clear  at  this  moment  what  the  United 
States  response  to  this  phenomenon 
should  be.  For  example,  both  Hawsiil  and 


42707 


Alaska  are  capital  short  areas  which 
need  outside  capital  to  develop  their  re- 
sources. Foreign  direct  investment  may 
play  a  positive  role  hi  providing  the  fi- 
nancing required  by  industries  located  in 
these  two  States  Along  with  development 
can  come  more  jobs  and  local  prosperity. 
Nevertheless,  the  fact  of  the  matter  "is 
that  we  know  very  httle  about  the  impact 
of  foreign  direct  and  foreign  portfolio 
Investment  in  the  United  States  Depart- 
ment of  Commerce  and  State  efforts  not- 
withstanding, we  do  not  know  whether 
the  net  effect  of  foreign  direct  invest- 
ment In  the  United  States  has  been  ben- 
eficial or  detrimental. 

Only  within  the  last  year  has  there 
been  a  serious  effort  by  competent,  aca- 
demically-oriented economists  to  study 
the  impact  of  foreign  direct  Investment 
in  the  United  States  At  the  present  time, 
the  Council  on  International  Economic 
Policy   Is   coordinating   an    interagency 
task  force  to  study  foreign  direct  and 
foreign  portfolio  Investment  and  to  de- 
velop   policy    alternatives.    On    various 
campuses  throughout  the  country,  sev- 
eral academics  are  devoting  more  and 
more   of   their   attention   to   this   issue. 
Nevertheless,  at  the  present  Ume,  the 
Congress  simply  does  not  have  sufficient 
mformation  on  which  to  base  decisions 
with  regards  to  foreign  direct  investment. 
The  CIEP  interagency  task  force  does 
not  have  the  resources  or  time  in  which 
to  come  up  with  large  amounts  of  new 
raw  data  and  statistics.  In  the  absence  of 
adequate  statistical  information,  I  be- 
lieve that  the  enactment  of  legislation  by 
the  Congress  to  restrict  foreign  direct 
investment  would  be  premature.  An  er- 
roneous decision  at  this  time  could  have 
the  effect  of  choking  off  new  and  badly 
needed  funds  as  well  as  aggravating  our 
international  economic  relations  with  our 
allies. 

Before  taking  further  action,  the 
United  States  must  have  more  and  better 
information.  Therefore.  I  am  today  In- 
troducing a  bill  to  fill  this  information 
gap  by  authorizlr,K  and  directing  the 
Secretary  of  Commerce  to  initiate  a  new 
benchmark  study  on  the  effects  of  for- 
eign direct  and  portfolio  investment  In 
the  United  States  I  believe  that  this 
study  will  provide  us  with  the  data  nec- 
essary to  formulate  a  coherent  national 
policy  with  respect  to  investment.  In  the 
absence  of  a  national  policy,  we  face  the 
prospect  of  having  a  patchwork  of  lo- 
calized responses  with  little  or  no  atten- 
tion to  an  issue  which  Is  national  In 
scope  and  Impact. 

The  bill  being  introduced  today  au- 
thorizes a  2-year  study  with  an  hiterim 
report  to  the  Congress  1  year  after  en- 
actment. The  Secretary  of  Commerce 
will  have  broad  authority  to  consider 
various  issues  Including  those  specified  by 
the  bill,  which  are  as  follows :  The  nature, 
scope,  magnitude,  and  rate  of  invest- 
ment; reasons  for  investment;  financing 
mechanisms  and  their  effect  on  our  fi- 
nancial markets;  types  of  Investment; 
Impact  on  specific  geographical  areas  and 
Industries  affected  by  a  disproportion- 
ately high  share  of  foreign  Investment; 
Impact  of  foreign  investment  on  our  na- 
tional security,  energy  resources,  balance 
of  payments   and   trade,   international 


economic  position,  and  various  signifi- 
cant product  markets:  effects  on  labor; 
Federal,  Stat*,  and  local  laws;  and  finally 
the  relationship  between  the  activities  of 
American  firms  abroad  and  the  activi- 
ties of  foreign  firms  m  the  United  States. 
Furthermore.  :he  Secretan.-  is  direct- 
ed to  consult  with  other  government 
agencies  which  have  special  expertise  in 
their  areas  and  with  representatives  of 
labor,  and  industry-,  with  scientists, 
academic  specialists,  and  consumer  or- 
ganizations and  other  groups  or  individ- 
uals which  can  contribute  meaningfully 
to  the  study.  He  is  further  authorized  to 
utilize  private  consultants — authority  I 
would  urge  him  to  use  to  avoid  crlticis"ms 
of  departmental  policies  and  biases. 

I  wish  to  bring  to  the  attention  of  my 
colleagues  that  over  the  Christmas  recess, 
the  Subcommittee  on  Foreign  Commerce 
and  Tourism,  of  which  I  am  chairman, 
will    be    conducting    field    hearings    in 
Honolulu  on  the  subject  of  the  Impact 
of    foreign    investment    in    the    United 
States,    with    particular    reference    to 
Hawaii.  I  hope  that  other  Members  of 
the  Congress  who  are  interested  in  this 
subject  will  feel  free  to  contribute  their 
thoughts  for  the  record  and  in  anticipa- 
tion of  further  hearings  on  the  subject. 
Mr.  President,  I  believe  that  the  legis- 
lation being  Introduced  today  is  a  con- 
structive and  reasonable  response  to  a 
development  whose  contours  are  yet  un- 
clear. It  is  conceivable  and  probable  that 
the  economic  slowdown  which  faces  the 
free  world   as   a   result   of   the  energy 
crisis  will  sharply  reduce  the  inflow  of 
funds.  If  this  stagnation  in  capital  trans- 
actions occurs,  this  will  actually  be  an 
ideal  time  in  which  to  study  the  problem. 
This  statement  is  necessarily  short  but 
covers  my  present  thoughts  on  this  sub- 
ject. I  shall  be  speaking  out  from  time 
to  time  about  this  issue  at  greater  length. 
I  urge  the  Congress  to  act  expedi- 
tiously on  this  bill  In  order  to  have  the 
study  underway  at  the  earliest  possible 
date. 

Mr.  President,  I  ask  tmanlmous  con- 
sent that  the  bill  I  am  introducing  be 
referred  to  the  Commerce  Committee. 

The  PRESrDING  OFFICER.  Without 
objection.  It  Is  so  ordered. 


By  Mr    BEALL  (for  himself  and 
Mr  Mathias  '  • 

8.  2841,  A  bill  to  amend  the  Chesapeake 
and  Ohio  Canal  Development  Act  so  as 
to  expand  the  boundaries  of  the  Chesa- 
peake and  Ohio  Canal  National  Historic 
Park  to  include  certain  lands  within  the 
areas  from  North  Branch  to  Cumber- 
land, Md  Referred  to  the  Committee  on 
Interior  and  Insular  Affairs, 

Mr.  BEALL.  Mr.  President,  I  join  to- 
day with  my  distinguished  colleague  from 
Maryland.  Senator  Mathias,  in  introduc- 
ing legislation  which  would  extend  the 
boundaries  of  the  Chesapeake  and  Ohio 
Canal  National  Historical  Park  from  its 
current  terminus  at  North  Branch,  Md., 
to  its  historical  terminus,  Cumt)erland, 
Md.  Our  legislation,  which  amends  Pub- 
lic law  91-664,  would  complete  an  action 
the  Congress  began  in  1971  with  Its  cre- 
ation of  the  C.  &  O.  Canal  Park,  and  I 
urge   the   Interior   and   Insular   Affairs 


42708 


CONGRESSIONAL  RECORD  — SENATE 


Committee  to  give  this  proposal  its  quick 

action. 
Mr.  Pre^dent,  in  1971  Congress,  a/ter 

years  of  Inaction,  approved  legislation 
establising  the  C    it  O.  Canal  NaUonal 

Historical  Park  Since  its  establishment, 
the  canal  has  offered  to  thousands  of 
people  an  unmatched '  opportunity  for 
recreation,  and  a  chance  to  relive  one  of 
our  Nation  s  most  historic  eras.  The  De- 
partment of  the  Interior  Ls  still  In  the 
process  of  acquiring  land  as  directed  by 
Public  Law  91-«64.  and  I  am  confident 
that  with  the  proper  management  and 
the  appropriation  of  necessary-  funds,  the 
C.  Si  O  Canal  can  be  one  of  our  Nations 
most  valuable  recreational  sites  in  the 
coming  years. 

However,  when  the  Congre.ss  was  con- 
sidering this  legislaUon  In  the  91st  Con- 
gress. It  failed  to  complete  its  historical 
mandate.  Our  legislation  today  seeks  to 
correct  this  situation.  It  would  extend 
the  boundaries  of  the  C  &  O  Caml  Na- 
tional Historical  Park  from  its  present 
terminus  near  North  Branch.  Md..  to  the 
original  canal  terminus  in  Cumberland. 
Md.  Additionally,  the  Secretary  of  the 
Interior  is  authorized  to  esUbllsh.  oper- 
ate, and  maintain  a  visitors"  center  at  or 
near  the  western  terminus  of  the  canal. 
It  Is  our  belief  that  this  visitors'  center 
will  serve  as  a  focal  point  for  the  recre- 
ational and  historlcsd  uses  of  the  canal, 
and  give  impetus  to  the  development  of 
the  whole  western  Potomac  River  region 
Mr  President,  our  bill  would  .authorize 
the  Secretary  to  enlarge  the  boundaries 
of  the  C  li  O  Canal  along  the  North 
Branch  to  Cumberland  so  as  to  acquire 
1.200  additional  acres  for  tlie  park.  No 
more  than  600  acres  of  suc^  ^»«operty 
would  be  acquired  through  W^Jimole 
proceedings  t\lth  the  remainder  added 
to  the  park  through  the  use  of  scenic 
easements.  We  believe  this  procedure 
would  develop  the  park  most  suitably, 
while  at  the  same  time  causing  a  mini- 
mum of  disruption  to  private  holdings 
along  the  canal 

However.  I  do  want  to  emphasize  the 
fact  that  since  the  C  L  O  Canal  Is  for 
the  benefit  of  the  public,  the  public 
ought  to  be  the  one  to  decide  how  this 
facility  is  developed.  For  that  reason, 
we  have  avoided  the  Inclusion  of  any 
specific  boundaries  in  the  legislation  in 
hopes  that  the  House  and  Senate  In- 
terior Committees  would  hold  quick  and 
thorough  hearings  on  these  proposals, 
in  order  to  accurately  ascertain  the 
wishes  of  the  public  and  of  the  National 
Park  Service.  Through  these  discussions, 
it  Ls  ray  belief  that  we  can  best  serve 
the  needs  of  the  public  and  of  the  effected 
land  owners  in  the  area.  It  is  not  our 
intenUon  to  propose  legislation  which 
will  answer  all  the  needs  of  every  affected 
party,  but  rather  to  begin  initiatives  that 
will  lead  to  the  extension  of  the  canal 
along  boundaries  which  are  mutually 
acceptable  to  all. 

Mr  President.  I  strongly  urge  the  In- 
terior and  Insular  Affairs  Committee  to 
give  our  proposal  prompt  and  serious 
consideration.  It  Is  clear  to  me  that  we 
must  extend  the  C  L  O  Canal  to  its 
rightful  terminus 

Mr.  MATHIAS  Mr  President.  I  am 
pleased  today  to  join  my  distinguished 


December  20,  1973 


colleague  from  Maryland.  Seriator  Bkajll. 
m  Introducing  an  amendment  to  the 
Chesapeake  and  Ohio  Canal  Develop- 
ment Act  of  1971.  If  enacted,  this  bill 
will  complete  a  long  and  fruitful  legisla- 
tive process  which  has  been  undertaken 
to  protect  for  present  and  future  gener- 
ations the  unique  natural  and  historical 
resources  of  the  Potomac  Valley  and  to 
fulfill  its  enormous  recreational  potential. 

The  Chesapeake  and  Ohio  Canal  Is 
truly  a  landmark  of  our  natural  and 
manmade  heritage  Built  between  1828 
and  1850,  the  184-mile  canal  parallels 
the  Potomac  from  the  heart  of  Washing- 
ton to  Cumberland.  Md.  Until  commercial 
operations  ceased  in  1924.  the  76  canal 
locks  raised  the  lowered  barges  some  600 
feet  between  tidewater  and  the  Alleghe- 
nles,  foUowing  the  historic  pathway  to 
the  West. 

At  the  groundbreaking  for  the  canal  In 
Georgetown  on  July  4.  1828.  an  occasion 
of  great  pomp  and  ceremony.  President 
John  Quincy  Adams  declared: 

The  project  contemplates  a  conquest  over 
physical  nature,  such  aa  has  never  yet  been 
achieved  by  man  The  wonders  of  the  ancient 
world,  the  Pyramids  of  Egypt,  the  Colossus  of 
Rhodes,  the  Temple  of  Epheaus,  the  Mauso- 
leum of  Artemis,  the  W^  of  China,  sink 
Into  Instgnmcance  before  It^-lnslgnlfl canoe 
In  the  mass  and  momentum  of  human  labor 
required  for  the  execution— inslgnlflcanee  In 
the  comparison  of  the  purposes  to  be  accom- 
plished by  the  work  when  executed. 

If  President  Adams  may  be  excused  for 
a  touch  of  understandable  oversUtement. 
Mr.  President,  he  cannot  be  accused  of 
overestimating  the  Ifisting  importance  of 
the  project  which  was  about  to  be  under- 
taken. Indeed,  even  today  the  canal  Is 
probably  the  finest  relic  of  the  Impressive 
engineering  feats  of  the  Nation's  canal - 
building  era,  with  its  sturdy  locks.  Its 
arched  masonry  aqueducts,  and  the  mag- 
nificent Paw  Paw  Tunnel  of  over  3.000 
feet  through  a  mountain.  Equally  impor- 
tant is  the  lively  culture  and  colorful  lore 
of  the  canallers.  which  survives  In  such 
towns  as  Wllllamsport  and  Oldtown,  and 
Is  being  rediscovered  and  preserved  by 
area  historians  as  a  unique  slice  of  our 
history. 

For  more  than  three  decades  In  this 
century,  however,  from  the  end  of  com- 
mercial operations  until  the  mld-1950"s. 
the  canal  lay  neglected,  preserved  pri- 
marily by  the  valley  residents  who  have 
always  been  its  staunch  friends  and  care- 
Ukers.  But  during  the  past  15  or  20 
years,  the  public  has  rediscovered  the 
canal  with  energy  and  appreciation. 
Literally  millions  of  hikers,  bikers,  camp- 
ers, canoeists,  sportsmen,  and  naturalists 
of  all  ages  have  used  some  segment  of  the 
canal. 

When  I  first  introduced  C  &  O  Canal 
Park  legislation  as  a  freshman  In  the 
House  of  Represenutlves.  the  value  and 
Importance  of  the  canal  were  not  widely 
known  or  understood  But  9  years  later, 
after  extensive  studies  and  intensive  dis- 
cussion of  the  future  of  the  valley,  the 
breadth  of  demonstrated  public  Interest 
and  use  made  It  possible  for  Congress  to 
enact  Public  Law  91-«64.  authorizing  the 
creation  of  the  C  L  O  Canal  National 
HLstortcal  Park 

The  law  we  enacted  3  years  ago,  Mr 
President,  formally  recognized  the  great 


historical  importance  of  the  canal  and 
went  a  long  way  toward  creating  a  ve- 
hicle for  Its  preservation  and  restoration. 
As  finally  passed,  however,  it  did  not 
encompass  the  entire  length  of  the  ctmal 
The  bill  we  are  Introducing  today  is  de- 
signed to  finish  that  job.  by  extending 
the  boundaries  of  the  canal  the  last  8 
miles  to  Its  original  terminus  In  Cumber- 
land. The  bill  wUl  authorize  the  Park 
Service  to  estaOillsh  and  operate  a  visitors 
center  at  or  near  the  western  terminus, 
to  provide  the  millions  of  canal  enthu- 
siasts who  visit  this  landmark  with  both 
conveniences  and  educational  materials 
regarding  the  canal  s  rich  history. 

In  concluding,  Mr  President,  I  would 
simply  like  to  pay  tribute  to  the  dedi- 
cated Interest  and  efforts  of  the  members 
of  the  C  «i  O.  Canal  National  Historical 
Paj-k  Advisory  Commission,  which  was 
created  by  Public  Law  91-664  and  whose 
members  give  freely  of  their  time  and 
energy  to  promote  the  preservation  of 
the  canal,  and  to  the  many  other  citi- 
zens and  businesses  In  and  around  Cimi- 
berland  whose  continued  cooperation, 
good  faith,  and  support  will  be  so  neces- 
sary if  we  are  to  succeed  In  enacting 
this  legislation  to  complete  the  job  of 
preserving  the  full  length  of  this  unique 
historical  resource. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42709 


By  Mr.  BENTSEN 
S.  2842.  A  bill  to  provide  for  the  con- 
tinuing availability  of  capital  for  eco- 
nomic growth  and  the  creation  of  new 
jobs  and  to  provide  for  greater  competi- 
tiveness in  our  economy  by  amending 
the  Internal  Revenue  Code  of  1954  to  im- 
pose limitations  on  institutlcms  holdings 
of  securities  and  to  encourage  individuals 
to  Invest  In  securities  Referred  to  the 
Committee  on  Finance. 

STOCKHOLOEXS    INVEaTMENT    ACT    OF     197  3 

Mr.  BENTSEN.  Mr.  President,  one  of 
the  foiindatlons  of  our  competitive,  free 
enterprise  system  has  been  the  existence 
of  broad-based  stock  markets  which 
serve  as  a  source  of  capital  for  persons 
striving  to  go  into  business  or  to  expand 
an  existing  business. 

Our  securities  markets  have  provided 
the  capital  that  enabled  companies  like 
IBM  and  Xerox — which  at  one  time  were 
very  small — to  grow,  provide  thousands 
of  jobs,  offer  limovatlve  and  competitive 
products  and  make  a  major  contribution 
to  our  economic  expansion. 

The  maintenance  of  strong  and  vi- 
able caplUl  markets  is  essential  to  the 
economic  well-being  of  everj'  single 
American. 

However,  over  the  pcist  several  years 
we  have  been  witnessing  some  very  dis- 
turbing trends  in  our  securities  mar- 
kets— trends  that  have  a  major  impact 
on  our  economy. 

Mr.  President,  these  trends  are  having 
an  adverse  Impact  on  the  level  of  com- 
petition in  our  economy,  and  also  on  the 
ability  of  our  economy  to  create  new  jobs 
and  to  provide  the  vast  amounts  of  capi- 
tal needed  to  meet  such  pressing  chal- 
lenges as  our  energy  crisis. 

First,  there  has  been  an  Increasing 
dominance  of  our  securities  markets  by 
large  Institutional  Investors.  In  1963.  35 
percent  of  the  trading  on  the  New  York 
Stock  Exchange  was  attributable  to  in- 


stitutions. Today  that  figure  Is  70  per- 
cent— just  double.  The  eight-man  Invest- 
ment committee  of  the  largest  bank  trust 
department^these  eight  men  alone — 
manage  $21  billion  worth  of  common 
stocks. 

Furthermore,  institutional  investments 
have  become  alarmingly  concentrated  In 
a  small  number  of  select  stocks.  As  ex- 
amples, one  large  bank  trust  department 
has  Invested  more  than  60  percent  of  its 
total  common  stocks  In  just  20  Issues. 
Another  bank  trust  has  concentrated 
more  than  20  percent  of  Its  discretionary 
stock  market  Investments  in  just  two  Is- 
sues. Still  another  has  concentrated  more 
than  15  percent  of  Its  discretionary  stock 
market  Investments  in  just  two  issues. 

Meanwhile,  the  number  of  individual 
stock  Investors,  who  are  so  essential  to 
a  hesdthy  economy,  has  heen  declining. 
It  Is  estimated  that  the  number  of  In- 
dividual shareholders  In  the  United 
States  has  declined  by  sis  many  as  800  - 
000  since  early  1972. 

Our  stock  markets  have  exhibited 
other  disturbing  characteristics  In  recent 
years. 

A  decade  ago.  few  of  us  would  have 
thought  that  America's  securities  mar- 
kets would  one  day  be  compared  to  a  well 
known  bird  named  Jonathan  Livingston 
Seagull. 

Yet  one  member  of  the  Investment 
community  has  said : 

If  you  want  to  understand  the  stock  mar- 
ket, read  Jonathan  Livingston  Seagull.  It's 
all  there.  Just  like  the  believers  In  high 
multiple  stocks.  Jonathan  Livingston  Sea- 
gull came  to  believe  It  was  possible  to  fly 
as  no  gull  ever  had  before.  He  schooled  and 
disciplined  himself  to  And  ways  to  do  It  and 
he  found  them. 

How  similar  to  a  small  number  of  large 
Institutional  Investors  who  came  to  be- 
Ueve  that  at  one  point  the  stock  of  a 
cosmetics  firm  was  valued  higher  than 
the  entire  U.S.  steel  Industry.  The  very 
actions  of  these  institutions  succeeded, 
at  least  for  a  while,  In  making  these 
dreams  come  true — In  short,  a  self-ful- 
filling prophecy,  an  act  of  will  rather 
than  a  judgment  value.  Just  like  Jona- 
than Livingston  Seagull's. 

Or  compare  today's  institutional  mar- 
ket activity  to  that  old  parlor  game 
favorite.  Monopoly.  Once  all  of  the  pieces 
of  property  are  taken  up,  there  may  be 
nobody  to  sell  to,  and  the  limited  market 
on  the  Monopoly  board  loses  Its  liquidity. 
The  game  ends.  In  the  real  investment 
world,  we  must  assure  that  our  capital 
markets  maintain  adequate  liquidity — 
that  there  will  always  be  a  sufBclent 
number  of  buyers  and  sellers — so  that  our 
markets  will  price  securities  In  accord- 
ance with  their  true  value. 

To  investigate  these  disturbing  ques- 
tions, the  Subcommittee  on  Financial 
Markets,  of  which  I  am  chairman,  has 
conducted  two  series  of  public  hearings 
at  which  a  broad  spectrum  of  witnesses 
presented  their  views.  Their  testimony 
clearly  demonstrated  the  need  for  con- 
gressional actloL  to  reverse  these  danger- 
ous trends. 

As  a  result,  I  tun  today  Introducing  tax 
legislation  which  would  help  reverse 
these  trends  by  imposing  reasonable 
limits  on  stock  holdings  of  any  single 
Institution  and  by  offering  Incentives  to 


encourage  Individual  investors  to  return 
to  the  market. 

The  problems  our  subcommittee  i.'; 
studying  are  very  difficult  and  complex. 
There  are  no  easy  soluuor..s  My  pro- 
pased  legislation  wUl  not  provide  all  of 
the  answers  to  the  man.v  problems 
plaguing  our  financial  markets.  Further 
study  may  produce  additional  remedies. 
However.  I  hope  that  the  introduction 
of  this  bill,  followed  by  additional  sub- 
committee hearings  earlj-  next  year,  will 
create  a  meaningful  dialog  among  ail 
intere-st^d  parties  and  lead  to  construc- 
tive solutions. 

This  legislation  Is  a  followup  to  the 
comprehensive  pension  reform  bUl.  S. 
1179,  that  I  introduced  last  March,  which 
was  favorably  reported  by  the  Senate 
Finance  Committee  in  July.  That  bill  was 
merged  with  the  Labor  Committee's  pen- 
sion bUl  and  was  approved  bv  the  full 
Senate  in  September. 

The  pension  reform  bill  focused  on  the 
impact  of  our  private  pension  system  on 
the  individual  American  worker  and  es- 
stabllshed  minimum  standards  of  vest- 
ing, funding,  eUgibUity  and  termination 
insurance  to  Insure  that  every  worker 
receives  his  earned  retirement  benefits. 
The  bin  I  am  now  Introducing  focuses  on 
the  enormous  Impact  that  the  more  than 
$150  billior.  of  assets  in  private  retire- 
ment plans  has  on  our  entire  economy 

The  tax  legislation  I  sim  Introducing 
today  contains  four  major  provisions. 

First,  pension  plans  would  be  required 
to  comply  with  a  new  quaUfication  for 
favorable  tax  treatment.  Tax-exempt 
pension  funds  would  be  required  to  be 
placed  in  the  hands  of  a  pension  man- 
ager— either  an  outside  management  like 
an  Insurance  company  or  bank  trust  de- 
partment or  "in  house"  managements— 
that  complied  with  reasonable  limita- 
tions on  the  amount  of  shares  in  any  one 
company  that  could  be  acquired  Acqui- 
sitions in  excess  of  this  limitation  would 
subject  the  manager  to  a  penalty  tax. 

This  provision  is  necessary  to  protect 
the  more  than  30  million  private  pen- 
sion plan  participants  from  excessive 
concentration  of  pension  investments  In 
only  a  few  select  seciu-ities  and  to  en- 
courage greater  instituUonal  Interest  In 
well-managed  small  and  medium-size 
companies. 

In  addition,  these  limits  would  help 
prevent  a  small  number  of  large  insti- 
tutional Investors  from  achieving  too 
much  control  over  our  economy. 

Second.  Investments  of  1  percent  of 
the  assets  in  any  pension  fund  would  be 
exempt  from  the  "prudent  man  rule." 
This  would  facilitate  the  fiow  of  a  limited 
amount  of  pension  investments  to  new  or 
expanding  companies  which  present 
greater  than  normal  risks  but  offer  the 
opportunity  for  greater  than  normal  re- 
turns. 

Third,  a  graduated  capital  gains  tax 
would  be  enacted  to  decrease  the  capi- 
tal gains  rate  for  an  asset  as  the  holding 
period  Increased.  This  provision  would 
help  reduce  the  present  "lock-in"  of  long- 
term  assets  and  provide  greater  liquidity 
In  our  capital  markets.  A  graduated  capi- 
tal gains  rate  would  also  encourage  the 
risk-taking  spirit  In  America  which  has 
been  so  Important  to  economic  growth. 
Fourth,  the  amount  of  ordinary  income 


against  which  capital  losses  may  be  de- 
ducted would  be  Increased  This  would 
also  encourage  greater  individual  invest- 
ment In  our  markets  and  result  in  greater 
turnover  of  securities. 

Mr.  President,  I  would  i-ow  like  to  dis- 
cuss these  provisions  in  greater  detail. 

DrVKRSmCATION     BEQUIiEMENTS     rOR    PENSION 
MANACitRS 

A  very  disi'urbmg  trend  in  our  econ- 
omj-  is  the  extent  to  which  tens  of  bil- 
lions of  dollars  of  pension  investments 
are  being  concentrated  in  a  small  num- 
ber of  select  stocks  Extensive  data  pre- 
sented to  the  Financial  Markets  Sub- 
committee clearLv  demonsiraies  the 
tendency  of  large  instiiuuons  to  ir.vest 
enormous  amoui.ts  of  money  m  a  ver>- 
few  issues. 

To  help  curb  this  excessive  concentra- 
lion,  I  am  Uxlay  proposing  an  amend- 
ment to  the  Internal  Revenue  Code 
which  would  impose  reasonable  limita- 
tions on  the  amount  of  shares  in  an,v 
company  that  a  pension  manager  can 
hold.  Under  tlus  legislation,  a  pension 
plan  could  not  receive  favorable  tax 
treatment  unless  the  assets  of  the  plan 
were  placed  with  a  pension  manager  who 
invested  no  more  than  5  percent  of  his 
total  discretionan  pension  assets  m  one 
equity  security  and.  in  addition,  acquired 
no  more  than  10  percent  of  any  equity 
security  of  any  one  company  with  respect 
to  his  aggregate  discretionary  pension 
assets.  However,  this  hmitation  would 
not  apply  retroactively  Managers  of  pen- 
sion accounts  would  not  he  forced  to  dis- 
pose of  current  stock  holdings  to  meet 
these  limitations. 

A  number  of  our  Nation's  largest  bank 
trust  departments  recognize  the  wisdom 
of  these  limits  and.  in  fact,  have  already 
adopted  these  limits  on  a  voluntary  basis. 
The  purpose  of  putting  these  limits  into 
law  is  simply  to  insure  that  all  pension 
managers  follow  the  example  that  some 
of  the  best  banks  have  established  on 
their  own. 

Decades  ago  Congress  enacted  tax  in- 
centives to  encoiu^ge  the  growth  of  pen- 
sion plans.  Under  current  tax  laws,  qual- 
ified E>erLsion  plans  receive  three  tax 
benefits.  First,  employers  are  given  a  tax 
deduction  for  all  contributions  made  to  a 
qualified  plan.  Second,  the  investment 
earnings  of  assets  In  the  plan  are  tax 
exempt.  Third,  employer  contributions 
are  not  taxable  to  the  employee  at  the 
time  of  contribution.  Rather,  the  Income 
tax  is  deferred  until  the  money  is  actual- 
ly distributed  to  the  employee  after  his 
retirement — at  which  tune  he  is  usually 
In  a  much  lower  tax  bracket 

Tax-qualified  pension  plans  today  re- 
ceive an  estimated  tax  subsidy  of  $4  bil- 
lion annually.  Inasmuch  as  Uie  Federal 
Government  encourages  the  creation  of 
pension  plans  through  our  ux  laws,  these 
tax  laws  must  include  safeguards  to  pre- 
vent excessive  concentration  of  pension 
investments. 

Our  tax  laws  already-  include  invest- 
ment limitations  for  foundaticwis  and 
mutual  funds  as  well  as  pension  plans. 
The  Internal  Revenue  Service  has  had 
years  of  experience  administering  these 
tax  restrictions,  parUcularly  with  respect 
to  Uie  prohibit^  transactions  and  in- 
vestments of  pension  assets. 


42710 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


Pot  example,  under  present  tax  law. 
the  assets  of  a  tax-exempt  pension  fund 
may  be  used  only  for  the  exclusive  bene- 
fit of  the  employees  or  their  benefici- 
aries. Under  IRS  rulings,  an  Investment 
generally  complies  with  the  •exclusive 
benefit  •  requirement  If  It  meets  the  fol- 
lowing standards  the  cost  of  the  Invest- 
ment does  not  exceed  fsUr  market  value, 
a  fair  return  commensurate  with  the 
prevail m«  rate  Is  provided,  sufficient 
Uqxildlty  Is  maintained  to  permit  dis- 
tributions, and  the  safeguards  and  diver- 
sity to  which  a  prudent  investor  would 
adhere  are  present. 

Tax  restrictions  on  excessive  concen- 
tration of  pension  mvestment  would  sim- 
ply be  an  extenaiorV'  of  existing  tax 
rulings  on  diversity  and  Liquidity  for 
pension  assets. 

There  Is  substantial  precedent  under 
both  State  and  Federal  law  for  limita- 
tions on  the  amount  of  stock  In  one  com- 
pany that  an  institutional  Investor  can 
hold  Insurance  comoenies  are  so  limited 
in  practically  every  State  Mutual  funds 
are  subject  to  holding  limits  established 
by  Federal  law  Yet  no  such  limits  apply 
to  banks  which  are  the  largest  Institu- 
tional Investors  and  also  the  biggest 
man'igers  of  pension  assets 

Insurance  statutes  in  almost  every 
State  Impose  lunltatlons  on  the  invest- 
ments of  Insurance  company  assets  Al- 
though the  rules  and  the  percentages 
vary  from  State  to  State  many  States 
restrict  Insurance  companies  from  hold- 
ing more  than  10  percent  of  the  out- 
standing stock  of  a  company  or  from  In- 
vesting more  than  5  percent  of  the  Insur- 
ance company's  separate  or  general  ac- 
counts in  one  stock  These  percentages 
are  often  applied  to  all  of  the  accounts 
of  an  Insurance  companv,  in  the  aggre- 
gate 

Under  Federal  law  diversified  mutual 
funds  are  restricted  from  holding  more 
than  10  percent  of  the  outstanding 
shares  of  any  company  or  from  invest- 
ing more  than  5  percent  of  the  assets 
of  the  mutual  fund  In  cne  security— 
however,  this  limitation  npplies  only  to 
75  percent  of  the  total  assets  In  a  mutual 
fund 

There  are  five  essential  reasons  for 
Imoosing  these  limitations 

First,  the  extent  to  which  ln.stltutlons 
concentrate  their  pension  Investments 
In  a  few  select  stocks  raises  disturbing 
qxie«tlons  with  respect  to  the  safety  of 
the  enormous  amounts  of  pension  money 
that  these  institutions  manage  In  testi- 
mony before  our  committee,  one  tnist 
department  argued  that  those  of  ijs  who 
a<lyocate  llmlta  on  their  holdings  are 
Ignoring  their  fiduciary  responsibility 
for  these  funds.  Quite  the  contrary  Prior 
to  coming  to  the  Senate.  I  was  Involved 
In  the  management  of  an  Insurance  com- 
pany, a  mutual  fund,  and  a  savings  and 
loan  a«.»oclatlon.  as  well  as  several 
bank-s — all  of  whirh  Involved  fiduciary 
relationships.  It  Is  prec^^ely  because  of 
the  fiduciary  responsibility  that  limita- 
tions are  needed. 

Today  more  than  30  million  Ameri- 
can* participate  In  our  private  retire- 
ment system  The  retirement  Incomes 
of  the»e  Americans  depend  directly  upon 
the  lafety  of  the  perwlon  Investments. 


Excessive  concentration  of  Investments 
In  only  a  few  stocks  Jeopardises  the 
safety  of  these  assets  since  a  major  de- 
cline In  value  of  only  two  or  three  of 
these  select  stocks  will  substantially  re- 
duce the  value  of  the  pension  assets. 

This  was  dramatically  Illustrated  by 
a  recent  antitrust  decision  against  IBM. 
Some  of  our  largest  bank  trust  depart- 
ments are  concentrating  close  to  10  per- 
cent of  their  total  assets  In  this  stock 
which  lost  $5  5  billion  Jn  2  days  of  trad- 
ing. Another  of  our  largest  bank  trust 
departments  has  concentrated  more  than 
20  percent  of  the  assets  over  which  It  has 
complete  Investment  discretion  In  just 
two  securities — IBM  and  Avon.  Little  do 
the  pension  plan  participants,  who  de- 
pend on  this  bank  to  manage  their  pen- 
.«ion  fimds.  realize  that  their  future  re- 
tirement benefits  are  so  closely  tied  to 
the  fate  of  one  cosmetics  firm  and  one 
manufacturer  of  computers.  A  high  de- 
gree of  concentration  in  any  stock  se- 
verely limits  the  ability  of  the  manager  to 
protect  individual  accounts  In  the  event 
the  stock  gets  into  serious  trouble.  A  pen- 
sion fund  manager  simply  Is  In  no  posi- 
tion to  protect  his  individual  accounts 
through  orderly  selling  if  he  has  a  large 
percentage  of  his  total  assets  In  a  stock  or 
If  his  assets  represent  a  large  percentage 
of  the  companj's  outstanding  shares. 

Second,  limitations  on  the  Investments 
of  pension  managers  will  prevent  a  small 
number  of  large  Institutions  from  achiev- 
ing too  much  control  over  our  entire 
economy. 

We  must  never  allow  our  Institutions 
to  control  American  business  to  the  ex- 
tent that  mstituuons  control  German 
business  One  of  Germany's  banks  owns 
25  percent  of  no  less  than  20  nonflnancial 
companies  The  largest  German  bank 
owns  one-quarter  of  the  country's  larg- 
est shipping  company  E^ven  these  Im- 
pressive shares  of  direct  ownership  do 
not  reflect  the  true  power  of  German  fi- 
nancial institutions  Some  observers  es- 
timate that  as  much  as  60  percent  of 
German  industry  is  now  effectively  con- 
trolled by  banks. 

The  Financial  Markets  Subcommittee 
has  obtained  data  indicating  the  fre- 
quency with  which  American  institutions 
hold  large  portions  of  the  outstanding 
shares  of  a  company  Earlier  this  year, 
one  bank  trust  department  held  more 
than  14  percent  of  the  outstandmg  shares 
of  Walt  Disney,  almost  12  percent  of 
Schlumberger.  and  over  10  percent  of 
Polaroid  The  aggregate  dlscretlonao' 
accounts  of  another  large  bank  Include 
more  than  18  percent  of  one  company, 
close  to  18  percent  of  the  outstanding 
shares  of  a  second  company,  and  over  10 
percent  of  a  third. 

When  a  single  institution  owns  more 
than  10  percent  of  a  company.  It  no 
longer  is  just  an  investor— it  is  an  owner 
Continued  Institutional  acquisition  of 
large  portions  of  American  corporations 
will  lead  to  too  few  Individuals  possess- 
ing too  much  economic  control  over  the 
entire  economy.  Limitations  on  Institu- 
tional holdings  wUl  halt  this  trend 

Third,  limits  on  the  stock  that  one 
pension  manager  can  hold  In  one  com- 
pany will  limit  the  money  this  manager 
can  poiiT  Into  the  market  to  bolster  the 


price  of  any  particular  stocks  This  will 
limit  the  ability  to  create  self-fulflUlng 
prophecies  The  ability  of  pension  man- 
agers to  channel  billions  of  dollars  of 
new  pension  money  every  year  Into  a  few 
select  stocks  can  have  a  very  distorting 
effect  on  our  stock  market  and  our  econ- 
omy. The  Morgan  Guaranty  Trust  Co 
alone  receives  over  WOO  million  of  new 
pension  money  each  year,  and  over  70 
percent  of  Morgan's  pension  assets  are 
invested  In  stocks.  The  committee  has 
received  reports  of  foreign  institutions 
purchasing  only  those  stocks  found  on  a 
few  New  York  banks'  Investment  lists 
because  they  believed  those  stocks  would 
be  suppwrted 

Fourth,  holding  limitations  could  help 
provide  greater  liquidity  In  the  market. 
Thousands  of  Individual  investment  de- 
cisions, occurring  hour  after  hour,  are 
necessary  to  allow  our  capital  markets  to 
price  securities  In  a  manner  which  re- 
fiects  their  true  value  and  to  provide  the 
liquidity  that  has  made  our  capital  mar- 
kets unique  in  the  world  One  of  the 
factors  that  detracts  from  liquidity  of 
the  markets  is  the  holding  by  a  few  In- 
stitutions of  a  substantial  amount  of  the 
stock  of  a  limited  number  of  companies. 
Finally,  these  limitations  on  concen- 
tration will  encourage  greater  institu- 
tional interest  in  the  many  well-man- 
aged, small-  and  medium-size  companies 
that  have  strong  historical  earning  rec- 
ords, good  growth  prospects,  and  whose 
current  access  to  our  Nation's  capital 
markets  Is  seriously  limited  Diversifica- 
tion of  pension  Investments  Into  these 
smaller  companies  will  substantially  In- 
crease competition  in  our  economy  at 
the  same  time  the  diversity  provides 
greater  safety  for  the  funds. 

Under  the  legislation  I  am  Introducing 
today,  no  pension  fund  could  qualify  U,t 
favorable  fax  treatment  unless  the  a.ssets 
of  the  fu  xl  were  placed  in  the  hands  of 
a  manager  who  Invests  no  more  than  5 
percent  of  its  aggregate  discretionary 
pension  assets  In  just  one  equity  security 
and.  In  addition,  who  acquires  no  more 
than  10  percent  of  any  equity  security  of 
any  one  company  with  respect  ^o  the 
aggregate  discretionary  pension  ac- 
counts. 

If  any  manager  of  tax-exempt  pension 
funds  exceeds  these  limitations — for 
example,  by  purchasing  an  additional  1 
percent  of  the  total  outstanding  shares 
of  a  company  In  which  it  already  holds 
10  percent— a  penalty  tax  equal  to  5  per- 
cent of  the  excess  holdings  would  be  im- 
posed on  the  manager  by  the  Internal 
Revenue  Service.  Then  If  the  manager 
falls  to  dispose  of  the  excess  holdings 
within  a  specified  time  period.  IRS  will 
Impose  an  additional  penalty  tax  of  100 
percent  of  the  excess 

Excess  holdings  that  result  exclusively 
from  fiuctuatlons  In  market  values  will 
not  be  subject  to  a  penalty  tax. 

These  limitations  will  not  apply  to  In- 
vestments In  companies  with  a  capital 
account  of  less  than  $25  million.  To  limit 
Investments  In  small  companies  would 
discourage  Institutional  Investors  from 
looking  for  opportunities  among  smaller 
companies  The  Institutional  Investor 
wants  a  position  large  enough  to  have 
a  real  effect  upon  the  portfolio  In  addi- 
tion, the  cost  of  analyzing  a  company 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42711 


relative  to  the  potential  dollar  invest- 
ment must  be  recognized.  By  excluding 
smaller  companies  from  these  restric- 
tions institutions  would  be  encouraged 
to  take  the  time  to  analyze  the  smaller 
companies. 

In  addition,  the  holding  limitations 
would  apply  only  to  pension  plans  and 
not  to  profit-sharing  plans. 

Before  drafting  this  legislation.  I  sent 
detailed  questionnaires  to  the  25-largest 
bank  trust  departments.  Their  replies 
enabled  me  to  select  the  most  reasonable 
percentage  limits  for  holdings. 

Many  of  the  leading  bank  trust  officers, 
themselves,  indicated  that  no  more  than 
5  percent  of  the  aggregate  discretionary 
assets  shoiild  be  invested  in  any  one 
security.  It  Is  estimated  that  as  much  as 
two-thirds  of  the  aggregate  discretionary 
assets  of  our  Nation's  leading  bank  trust 
departments  are  represented  by  pension 
assets. 

One  bank  executive  said : 

In  no  case  do  we  hold  more  than  6%  of 
our  aggregate  discretionary  accounts  in  one 
security  ...  it  would  be  unusual  to  make 
aa  Initial  InTestment  in  a  security  with  a 
market  value  In  excess  of  6<j  of  the  value 
of  a  portfolio  and  I  would  be  Inclined  to  feel 
that  this  might  be  a  prudent  limit  on  an 
original  Investment  However,  in  the  event 
that  over  a  F>«rlod  of  time,  the  value  of  the 
investment  in  relation  to  the  size  of  the 
portfolio  grows  to  a  t>ercentage  In  excess 
(possibly  substantially  In  excess)  of  6%, 
which  Is  relatively  common.  I  would  be  op- 
poeed  to  a  policy  that  would  require  selling 
off  a  portion  of  a  good  Investment  for  no 
other  reason  than  to  bring  it  within  a  per- 
centage limitation 

Still  another  bank  trust  executive  said: 
WhUe  we  do  not  have  a  limit  on  how  much 
of  aggregate  discretionary  accounts  will  be 
allowed  In  one  security.  In  order  to  insure 
liquidity  for  the  individual  accoxints  we 
would  prefer  not  to  have  significantly  more 
than  6^  In  any  one  common  stock. 

Many  of  the  Nation's  leading  banks 
said  that  it  would  not  be  prudent  for  a 
trust  department  to  hold  more  than  10 
percent  of  the  outstanding  shares  of  one 
company. 

In  fact,  some  banks  have  indicated 
that  a  bank  should  hold  no  more  than 
5  percent  of  a  company's  shares. 

Last  year.  Mr.  Thomas  C.  Theobald, 
of  the  First  National  City  Bank,  stated: 

If  we  held  more  than  5  percent  of  a  com- 
pany's stock,  we'd  be  concerned  that  we 
could  become  locked  In.  That  5  percent  limit 
is  our  working  rule  for  good  market  liquidity. 

Another  bank  has  stated: 

In  the  event  that  our  total  trust  depart- 
ment holdings  approach  5  percent  of  the 
aggregate  market  value  of  the  Individual 
company's  common  shares  outstanding,  we 
review  the  companv  and  the  nature  of  our 
holding!  quits  closely  to  determine  whether 
any  further  pun  ha-sf-g  should  be  allowed. 
Only  In  rare  Jnstan  «<  do  we  permit  addi- 
tional acquisitions,  and  In  no  caeea  do  our 
purely  discretionary  holdings  exceed  this 
limit. 

Another  bank  said  that  as  a  general 
rule,  It  does  not  want  its  aggregate  dis- 
cretionary holdings  to  represent  more 
than  8  percent  of  a  company's  outstand- 
ing shares.  This  bank  pointed  out  that 
if  a  trust  department  holds  more  than 
10  percent  of  a  company's  outstanding 


r 


shares,  the  comptroller  of  the  cuarency 
will  routinely  raise  questions  of  "appro- 
priateness." 

Some  argue  that  holding  limits  can- 
not be  applied  to  the  aggregate  holdings 
of  bank  trust  departments  since  banks — 
unlike  mutual  funds — do  not  deal  with  a 
common  pool  of  funds  but  instead  deal 
with  many  different  indj\1dua:  accoimts 
which  must  be  treated  separately 

VUrrUK*   CAPTTAL    FRijM     PINSION    TRUSTS 

The  second  major  pro\-ision  of  my  bill 
would  facilitate  the  flow  of  IrL-^titutional 
money  to  small  and  mediura-.'^lze  com- 
panies. 

A  great  deal  of  the  recent  growth  of 
institutional  Investment-;  has  beer,  due 
to  the  Inflow  of  pnvale  pension  funds 
The  assets  in  private  pension  fm:ids  cur- 
rently exceed  $150  billion,  and  the  figure 
is  rising  by  over  $14  billion  a  year.  mo.st 
of  It  Invested  in  common  stocks.  This 
year  the  Senate  enacted  a  major  pension 
reform  measure  and  thL<;  bill  i;;  expected 
to  promote  the  additional  flow  of  funds 
Into  professional  management.  Judging 
from  past  performance,  most  of  it  will 
go  into  bank  trust  departments. 

The  pension  bill  includes  a  "prudent 
man"  rule  which  exposes  the  managers 
and  trustees  of  pension  plans  to  liability 
for  losses  resulting  from  unreasonable 
Investments.  Certainly,  this  Is  necessary 
to  protect  pension  assets  against  highly 
risky  Investments  but  It  could  also  have 
an  undesirable  effect.  It  might  lead  to 
even  greater  concentration  of  Invest- 
ments In  companies  which  have  been 
thoroughly  analj-zed  and  stamped  with 
the  approval  of  giant  bank  trust  depart- 
ments. Trustees  will  be  very  reluctant  to 
reach  out  beyond  successful,  solid,  well- 
researched  companies  toward  those 
which  are  newer,  attractive  but  less 
completely  tried.  Yet  we  must  not  for- 
get that  at  one  time  IBM,  Xerox,  and 
Polaroid  were  new  and  untried  com- 
panies. 

Legislation  Is  desirable  to  provide  pen- 
sion managers  with  leeway  to  Invest  1 
percent  of  the  assets  of  any  pension  plan 
In  companies   with  paid-in  capital  of 
less  than  $25  million.  This  would  \x  an 
exemption  from  any  prudent  m£Ln  rule 
for  1  percent  of  the  pension  assets.  How- 
ever, the  "leeway  clause"  would  In  ab- 
solutely no  way  relieve  fiduciaries  from 
any  prohibitions  against  self -dealing  or 
fraudulent    transactions.    The    "leeway 
clause"  would  relieve  a  fiduciary  from 
liability  onlj'  with  respect  to  the  risk- 
iness of  an  Investment.  Nor  would  the 
"leeway  clause"  Imply  that  Investment 
In  all  companies  of  less  than  $25  million 
are  high  risk  Investment.  Many  are  not 
This   provision   would   allow   a   limited 
amount  of  pension  assets  to  be  Invested 
In  a  small  company-  which  presents  a 
higher  than  normal  risk  but  offers  what 
might  be  a  higher  than  normal  return 
The   exit  of   the  Individual  Investor 
from  the  market  has  denied  new  busl- 
ne.sses  n  traditional  source  of  equity  cap- 
ital  New  businesses  have  had  a  particu- 
larly difficult  time  raislnp  equity  capital 
this  year.  New  Issue  OuUook,  Inc..  which 
publishes  weekly  reports  of  the  new  is- 
sue market,  reports  that  in  the  first  10 
months  of  1973.  only  96  InlUal  offerings 


bejjan   tradinE  compared  to  491  in  the 
comparable  penod  of  1972 

Even  if  individual  investments  in  the 
market  increase,  Institutions  should  be 
given  the  opportunity  to  m.ake  greater 
Investments  m  unseasoned  compaiaes  so 
as  to  insure  an  adequate  source  of  equity 
capital  for  good  new  business  venuires 
h  "leeway  clause"  which  allow.s  the  in- 
vestxnenl  of  a  small  portion  of  the  assets 
of  each  pension  plan  in  new  Issues  of 
somewhat  higher  risk  would  help  mam- 
i.am  a  viable  equity  market  for  these  new 
issues 

A  leeway  clause  wouid  be  similar  to 
the  so-called  basket  clauses  found  in  a 
great  m.any  State  insurance  laws. 

Many  S'ates  permit  life  in.<;urance 
companies  to  invest  a  smail  portion  of 
tiieir  assets  in  companies  which  other- 
wLse  would  not  qualify  a*  accepliib'.e  in- 
vestment^  A  leeway  cla'ose  lor  ;.>eiision 
funds  would  be  an  exemption  from  any 
State  or  F^ederal  "prudent  man  rule."  It 
would  help  assure  a  ready  source  of  risk 
capital  for  the  new  Xerox  and  the  new 
IBM  The  vitality  of  capitalism  in  this 
country  dem,.and5  an  easie.-  flow  of  capi- 
tal into  good,  growing  concern-^  which 
may  not  yet  oe  as  big  or  a5  familiar  to 
investors  as  the  instituUonal  favorites 

An  exemption  from  the  prudent  vr.&r. 
rule  for  only  1  percent  of  the  a&.'^e'-s  of  a 
pension  trust  would  cerUinly  not  jeop- 
ardize the  safety  of  the  pension  assets. 
The  leeway  clause  applies  onlj"  to  1 
percent  of  the  assets  of  a  pension  trust 
and  investments  m  unseasoned  compa- 
nies can  be  very  profitable. 

GRADViTED    CAPITAL    CAINS    TAX 

Now  let  us  turn  to  an  equally  impor- 
tant need:  How  do  we  get  greater  invest- 
ment by  indi\iduals  in  the  market'^  For 
the  first  time  since  1952.  when  record- 
keeping began,  we  And  a  decline  in  the 
actual  number  of  indjyidual  stockholders 
in  the  United  States  Unfortunately,  the 
decline  of  the  individual  investors  active 
participation  in  the  market  has  l)een 
going  on  for  some  time.  The  individual 
Investor  has  been  selling  more  than  he 
has  t>een  purchasing  for  the  last  10  years. 
That  selling  has  been  accelerating  since 
1967. 

This  decline  is  alarming  because  indi- 
viduals contribute  the  creat  variety  of 
opinions  and  judgmen*^  that  make  a  free 
marketplace  It  l=  the  individual  inves- 
tor who  has  traditionally  mvested  m  tiie 
new  and  smaller  companies,  and  'Jie  exit 
of  the  individual  investor  from  xhc  mar- 
ket poses  some  very  serioa<  problems. 

If  weil-manai;ed  companies  vnth  good 
growth  prospects  cannot  raise  equity 
capital,  these  compaiues  may  have  to 
sell  out  to  ones  that  can  raise  money. 
The  smaller  companies  will  be  confront- 
ed with  the  choice  of  merging  volun- 
tarUy  or  becoming  the  target  of  a  take- 
over. If  smaller  companies  cannot  raise 
the  capital  required  to  grow,  and  if  new 
companies  lack  the  capital  to  get  started, 
how  are  we  going  to  generate  the  em- 
ploymeiit  op>portunities  we  need  to  create 
In  the  years  ahead?  I  think  we  can  do  it 
by  reasonable  Incentives  to  encourage 
more  Individual  Investment  in  securities- 
Encouraging  new  Investment  In  the 
stock  market  is  not  only  lmpon*int  to 


42712 


0'\     RESSIONAL  RECORD  — SENATE 


investors  and  brokerace  flmu.  It  ia  Im- 
portant to  the  economic  well-being  of  all 
Americans. 

A  healthy  securities  market  not  only 
provides  the  capital  for  new  Jobs.  IV 
makes  it  possible  for  new  Arms  with  new 
products  to  raise  the  capital  necessary  to 
get  started. 

The  entry  of  new  businesses  and  prod- 
ucts into  our  economy  Is  what  has  kept 
our  system  efficient  and  competitive.  As 
one  of  the  witnesses  before  our  subcom- 
mittee testified,  a  healthy  stock  market, 
where  millions  of  Investors  participate 
amd  provide  the  ready  pools  of  capital 
for  new  ventures,  is  one  of  the  very  few 
economic  advantages  which  our  Nation 
has  not  exported. 

But  unless  steps  are  taken  to  increase 
participation  in  that  market  by  Individ- 
uals, I  am  tifraid  we  »-Ul  lose  that  ad- 
vantage as  well. 

"nie  provisions  of  our  tax  laws  have  a 
tremendous  Impact  upon  the  direction  of 
mvestment  in  our  Nation.  And  I  believe 
it  Is  essential  that  those  provisions  give 
adequate  recognition  to  the  importance 
of  risk  investment. 

Our  present  tax  provisions  ma>'  have 
been  adequate  for  our  Nation's  economic 
needs  m  the  1950's  but  they  do  not  meet 
the  needs  of  the  1970's. 

Smce  the  late  fifties  our  economy's 
capital  needs  have  increased  dramati- 
cally. Yet  during  tins  same  period  the 
growing  mflation  bias  of  our  economy 
has  discouraged  capital  investment.  And 
the  higher  interest  rates  which  have  ac- 
companied that  mflation  have  improved 
the  return  on  fixed  income  investments 
relauve  to  common  stocks  which  mvoive 
far  greater  risk.  Changes  in  our  tax  laws 
have  further  reduced  the  after-Ux  re- 
turn on  higher  nsk  mvestmcnts.  I  be- 
lieve that  It  IS  important  to  ail  Ameri- 
cans that  sufficient  incentive  be  provided 
CO  insure  a  reasonaoie  amount  of  risk 
making — even  u  some  of  those  Americans 
never  take  aavantage  of  these  provisions 
directly. 

I  am  today  proposing  a  graduated 
capiui  gains  tax  which  would  decrease 
the  capital  gains  rate  lor  an  asset  as  the 
holding  period  increases. 

A  graduated  capital  gains  rate  would 
serve  at  le^si  lour  major  purposes. 
First.  It  would  reduce  the  so-called 
lock-m'  of  assets  held  for  a  longer 
period  of  time  and  provide  for  a  more 
efficient  allocation  of  capital  resources 
Under  our  present  tax  laws,  individuals 
are  discouraged  from  selling  securities 
that  have  been  held  for  longer  periods 
of  lime 

These  persons  would  be  much  more 
prone  to  dispose  of  long-term  assets  if 
the  rate  of  Ux  on  the  gain  realized  on 
the  sale  of  these  assets  were  less  than  it 
15  today  U  "locked-in"  assets  were  sold, 
then,  a  great  deal  of  additional  tax 
revenue  would  be  collected. 

A  graduated  capital  gains  rate  would 
help  avoid  tying  an  mveslor  to  Invest- 
ments inat  may  not  be  the  most  suitable 
use  of  his  resources.  With  millions  of 
Investors  making  tax  decisions,  rather 
'.iiiLn  mvestment  decL>lons,  a  substantial 
iuaauiit  of  available  capital  is  being  put 
to  lesi  than  optimum  use.  We  do  not  live 
in  a  static  economy    The  capital  needs 


December  20,  1973 


of  different  sectors  of  our  economy 
change.  One  function  of  the  stock  mar- 
ket is  to  direct  capital  where  it  is  needed 
most  and  thus  earns  the  greatest  return 
-TRb  present  tax  provisions  hinder  the 
flow  of  that  capital. 

While  the  "locked-in"  Investors  lose, 
the  greater  damige  is  to  the  U.S.  econ- 
omy, which  is  falling  short  of  its  poten- 
tial at  a  time  when  it  must  use  all  of 
it.s  resources  to  their  fullest  to  respond 
adequately  to  the  challenges  ahead. 

Second,  a  reduction  In  the  "lock- in" 
would  provide  a  greater  liquidity  In  our 
capital  markets  which  is  so  Important  to 
insuring  that  the  price  of  stocks  accur- 
ately reflects  the  value  of  the  companies 
oemg  bought  and  sold. 

Relative  stock  prices  play  an  important 
role  in  the  allocation  of  capital  in  our 
economy.  Valuations — reflected  in  stock 
prices — govern  the  allocation  of  resources 
that  produce  the  millions  of  different 
products  and  services  turned  out  by  the 
American  economy.  Whether  a  company 
is  able  to  issue  new  stock  or  obtain  addi- 
tional debt  to  finance  a  new  expansion 
frequently  depends  upon  what  its  stock 
1 ,  selling  for  It  is  essential  to  the  health 
of  the  company  that  its  stock  be  accu- 
rately priced. 

In  order  to  achieve  the  most  efficient 
evaluation  of  stock  prices  and  hence  the 
most  efficient  allocation  of  resources — 
the  securities  market  must  have  a  mul- 
tiplicity of  decisionmakers — a  large 
number  of  Individual  as  well  as  institu- 
tional buyers  and  sellers. 

Third,  a  reduction  in  'lock-In"  would 
aid  individuals  in  providing  for  their  re- 
tirement years.  Many  middle  income 
Americans  Invest  in  "grou-th  stocks" 
when  their  children  are  grown  and  they 
are  in  their  late  forties  or  fifties.  By  the 
time  they  reach  retirement  they  would 
like  to  sell  those  stocks  and  invest  in  in- 
come-producing stocks.  Under  present 
law  they  can  do  so  only  at  a  substantial 
tax  penalty.  My  proposal  would  allow 
them  to  transfer  their  assets  without  in- 
cur.lng  such  a  significant  loss  In  their 
savings. 

Fourth,  a  graduated  capital  gains  tax 
would  encourage  the  risk-Uklng  spirit 
in  America.  We  must  provide  potential 
investors  with  the  incentives  to  take  the 
risks  Inherent  in  equity  Investing  if  our 
economy  is  to  continue  expanding  to  pro- 
vide more  jobs  and  opportunities  and  a 
larger  tax  base  for  our  Government 
Venture  capital  must  be  available  so  that 
new  and  promising  companies  can  10,  20, 
or  30  years  from  now  become  the  "new- 
IBM." 
Let  us  look  at  an  example. 
Let  us  suppose  that  two  Individuals 
each  have  the  same  Income.  One  spends 
his  income  The  other  Is  the  adventurer 
who,  by  Investing  In  hL-;  own  or  someone 
else's  busines,"!,  ukes  rl.sks  for  the  benefit 
of  the  whole  economy  through  the  crea- 
tion of  new  businesses  or  the  expansion 
of  existing  ones.  If  tax  laws  do  not  dif- 
ferentiate between  these  two,  an  impor- 
tant force  for  the  creation  of  jobs  will 
have  been  lost. 

Our  Nation  currently  faces  great  new 
challenges.  For  example.  In  developing 
new  sources  of  energy.  In  financing  our 
housing  needs,  and  overcoming  environ- 


mental and  transportation  problems. 
These  challenges  will  require  a  great  deal 
more  capital  from  a  great  many  more 
people. 

Under  present  law.  the  maximum  capi- 
tal gains  rate  is  35  percent  without  re- 
gard to  the  special  minimum  tax  prefer- 
ence provisions  or  any  other  provisions. 
Under  the  legislation  I  am  introducing 
today,  this  maximum  rate  would  decrease 
annually  during  the  holding  period  of  an 
asset  until  the  maximum  rate  was  ap- 
proximately 14  percent  for  assets  held  15 
years 

Capital  losses  would  be  provided  com- 
parable sliding-scale  treatment  over  tne 
holding  period  of  the  asset. 

The  present  6-month  holding  period 
for  capital  gains  treatment  would  be  ex- 
tended to  12  months.  This  would  be 
phased  in  by  1  month  per  year. 

Enactment  of  a  sliding-scale  capital 
gains  tax  could  very  well  result  In  a  net 
revenue  gain  due  to  the  revenue  gen- 
erated by  the  trading  of  "unlocked" 
assets. 

For  every  billion  dollars  of  gains  un- 
locked, it  has  been  estimated  that  as 
much  as  $200  million  in  new  tax  revenues 
might  be  gained.  One  analyst  has  esti- 
mated that  there  are  $233  billion  of  un- 
realized capital  gain  in  equities  and  that 
90  percent  of  these  assets  have  been  held 
for  more  than  7  years  Another  analyst 
put  the  figure  at  $558  billion.  Unlocking 
even  one-half  of  the  $233  billion  and  tax- 
ing them  at,  say,  a  20-percent  rate  would 
produce  over  $20  billion  in  revenues  for 
the  Government  that  it  is  unlikely  to  re- 
ceive otherwise. 

UBrKALIZEI)   TAX   TKEATMENT   OF  CAPrTAL   LOSSES 

A  second  tax  proposal  which  I  am  in- 
cluding in  my  bill  would  liberalize  the 
tax  treatment  of  capital  losses.  Today,  if 
an  individual's  capital  losses  exceed  his 
capital  gains,  he  can  deduct  up  to  $1,000 
against  his  ordinary  income  each  year. 
This  has  not  changed  since  1942.  yet  per 
capital  disposable  Income  has  risen  over 
400  percent  since  then.  Taking  into  ac- 
count this  increase  in  income,  my  pro- 
posal would  allow  $4,000  in  capital  losses 
to  be  deductible  against  ordinary  in- 
come. This  provision  would.  In  effect,  al- 
low the  same  tax  treatment  the  investor 
received  In  1942. 

However,  prior  to  offsetting  capital 
losses  against  ordinary  income  my  pro- 
posal would  require  that  the  taxpayer 
carryback  provision  which  is  available 
gains  which  had  been  realized  during 
the  previous  3  years.  This  is  the  same 
carry  back  provision  which  Is  available 
to  corporations. 

The  opportunities  for  reward  on  the 
stock  market  are  balanced  by  the  risk 
that  values  will  decline  as  well  as  rise. 
From  the  point  of  view  of  the  investor, 
realizing  a  loss  on  assets  hurts  just  as 
much  as  a  loss  in  business  or  a  loss  from 
casualty  or  theft.  We  need  to  encourage 
Investors  to  take  their  losses  and  rein- 
vest their  remaining  capital. 

Mr.  President,  for  the  reasons  I  have 
outlined,  a  graduated  capital  gains  tax 
and  liberalized  capIUl  loss  treatment 
would  have  a  very  positive  effect  on  our 
economy  and  would  be  of  substantial 
benefit  to  all  Americans  by  the  creation 
of  new  Jobs. 


December  20^  1973 


msTTrtmov 


CONGRESSIONAL  RECORD  —  SENATE 


42713 


IS<~LO«!TTW 


A  related  issue  wlm^f^pjmres  prompt 
legislative  attention  is^^re  need  for 
greater  disclosure  of  institutional  hold- 
ings and  transactions. 

Although  the  legislation  I  am  Intro- 
ducing today  contains  no  provisions  re- 
lating to  disclosure.  I  will  most  certainly 
support  legislation  to  require  Increased 
Institutional  disclosure  of  meaningful  in- 
formation. My  bill  only  contains  pro- 
visions that  amend  the  Internal  Revenue 
Code  or  closely  related  pension  laws. 

There  is  a  clear  need  for  increased  dis- 
closure of  the  activities  of  bank  tnist 
departments. 

Since  1940.  mutual  funds  have  been  re- 
quired to  disclose  on  a  quarterly  basis 
their  substantial  holdings  and  transac- 
tions. Under  State  statutes,  Insurance 
companies  face  similar  requirements. 
However,  the  biKKe.'^t  institutional  inves- 
tors of  them  aU — the  bank  trust  depart- 
ments with  investments  in  ten^s  of  bil- 
lions of  dollars — are  free  from  any  public 
scrutiny. 

Disclosure  would  serve  two  very  im- 
portant functions. 

First,  it  would  increase  the  confidence 
of  the  individual  investor  that  the 
markets  are  not  being  manipulated  The 
Importance  of  disclosure  has  perhaps 
been  best  expressed  by  the  chairman  of 
the  board  of  the  Morgan  Guaranty  Trust 
Co.  who  recently  commented: 

The  resulting  greater  avaUabUlty  of  in- 
formation would  enhance  public  understand- 
ing of.  and  confidence  in,  the  investment 
mechanism. 

It  would  oontrlbute  to  the  efficiency  of 
the  securities  markets.  And  It  would  be  a 
useful  Input  to  the  formulation  of  public 
policy. 

Second,  disclosure  would  provide 
meaningful  Information  necessary  for 
the  formulation  of  sound  public  policy  so 
that  Congress  and  Federal  regulatory 
bodies  can  more  effectively  safeguard  the 
public  Interest. 

Mr.  President.  I  ask  unanimous  con- 
sent that  at  this  point  In  the  Rkcord  a 
fact  sheet  describing  my  bill,  and  an 
article  from  Business  Week  magazine  be 
printed  in  fuU. 

There  being  no  objection  the  fact  sheet 
and  article  were  ordered  to  be  printed 
in  the  Record,  as  follows: 
Pact  Shtkt:  Sekatob  Llotd  BsNTSEJfs  Pro- 
posed "Stockholders  Investment  Act  or 
1973" 

J.    LIMrTATIONS    ON    THE    STOCK    HOLDINGS 
or   PENSION    MANAGERS 

No  pension  Jund  could  qualify  for  fa%or- 
able  tax  treatment  unless  the  assets  of  the 
fund  were  placed  In  the  hands  of  a  manager 
who  Invests  no  more  than  5"^  of  Its  aggregate 
discretionary  pension  assets  in  any  one 
equity  security  and.  In  addition,  who  ac- 
quires no  more  than  10 '~r  of  any  equity  se- 
curity of  any  one  company  with  respect  to 
the  aggregate  discretionary  pension  accounts. 
This  limitation  would  not  apply  retroactive- 
ly. Managers  of  pension  accounts  would  not 
be  forced  to  dispose  of  current  stock  hold- 
ings to  meet  these  Umltatloi«,  but  they 
could  not  acquire  additional  shares  of  any 
security  In  which  the  pension  m»i)*ger  had 
reached  the  limitation. 

If  any  manager  of  tax-exempt  pension 
funds  exceeds  these  limitations  (for  example, 
by  purchasing  an  additional  1"^  of  the  total 
equity  securities  of  a  company  m  which  It 
already  holds  10 ''t),  a  penalty  tax  equal  to 


5'V^of  the  excess  holdings  would  be  impcised 
on  the  manager  by  the  Internal  Revenue 
Service.  In  the  event  that  the  manager  fails 
to  dispose  of  the  excess  holdings  within  180 
days.  IRS  will  lmp>ose  an  additional  jjenalty 
of  100%  of  the  excess  on  the  manager. 

Excess  holdings  that  result  exclusively 
from  fluctuations  In  market  values  will  not 
be  subject  to  a  penalty  tax.  These  limitations 
will  not  apply  to  investments  in  companies 
with  a  capital  account  of  less  than  »25  mil- 
lion. These  limitations  apply  only  to  ijenslon 
plans  and  not  profit-sharing  plans. 

Limits  on  Institutional  holdings  are  neces- 
sary to  protect  the  more  than  30  million 
private  pension  plan  partlclp>ants  from  ex- 
cessive concentration  of  p>enslon  Investments 
In  only  a  few  select  stocks  and  to  encourage 
greater  Institutional  Interest  In  well- 
managed  small  and  medium -size  companies. 
In  addition,  these  limits  would  help  prevent 
a  small  number  of  large  Institutional  in- 
vestors from  achieving  too  much  control 
over  our  economy. 

a.     VENTURE     CAPITAL     PENSION     rtTNDS 

Pension  managers  would  be  given  leeway 
to  Invest  1%  of  the  assets  of  any  pension 
plan  In  companies  with  capital  accounts  of 
less  than  $25  million.  This  would  be  an  ex- 
emption from  any  prudent  man  rule  for  1  "^r 
of  the  pension  assets.  However,  the  "leeway 
clause"  would  not  reUeve  fiduciaries  from 
and  prohibitions  against  self-dealing  or 
fraudulent  transactions.  The  "leeway  clause" 
would  relieve  a  fiduciary  from  UabUlty  vrtth 
respect  to  the  risk  of  an  Investment. 

This  provision  would  facilitate  the  flow  of 
pension  investments  to  new  and  expanding 
smaller  companies  that  are  In  great  need  of 
equity  capital  and  which  present  a  higher 
than  normal  risk  but  offer  the  poeslbtltty  of 
a  higher  than  normal  return. 

3.     GRADUATED     CAPITAL     GAINS     TAX 

Under  present  law,  the  maximum  capital 
gains  rate  Is  35  ^r  without  regard  to  the  spe- 
cial minimum  tax  provisions  or  any  other 
provision.  This  legislation  would  decrease  the 
maximum  rate  annually  over  the  holding  pe- 
rtod  of  a  capital  asset  until  the  maximum 
rate  was  reduced  to  about  14 ""c  for  assets  held 
fifteen  years.  Capital  losses  would  be  pro- 
vided comparable  slldlng-scale  treatment 
over  the  holding  period  of  the  asset.  The 
present  six  month  holding  period  for  capital 
gains  treatment  would  be  extended  to  twelve 
months.  This  would  be  phased  In  by  one 
month  per  year. 

This  provision  would  help  reduce  the  "lock- 
In"  of  long-term  assets  and  provide  greater 
liquidity  In  our  capital  markets  A  graduated 
capital  gains  rate  would  also  encourage  the 
risk-taking  spirit  In  America  which  has  been 
so  Important  to  economic  growth  and  the 
creation  of  new  Jobs. 

«.     LIBCRAUZED     CAPITA!.     LOSS     TREATMENT 

Today,  If  an  Individual's  capital  losses  ex- 
ceed his  capital  gains,  he  can  deduct  up  to 
•  1.000  against  his  ordinary  income  each  year. 
This  hasnt  changed  since  1942,  yet  per  capi- 
tal disposable  Income  has  risen  over  400% 
since  then.  This  bUl  would  allow  the  indi- 
vidual to  deduct  up  to  M.OOO  of  capital  losses 
against  ordinary  Income.  It  would  also  allow 
a  three-year  carryback  of  capital  losses 
against  capital  gains. 

Liberalized  loss  treatment  would  encour- 
age more  risk  Investment  which  Is  so  Impor- 
tant In  starting  new  businesses  and  creating 
new  Jobs.  It  »X)Uld  also  encourage  Investors 
to  take  their  losses,  thus  providing  greater 
liquidity  in  our  capital  markets 

Can  us  Industrt  Kind  the  Monet  It  Needs? 

"A  great  deal  of  AmerlcAn  c^pitaJlsm  will 
be  dead."  warns  Senator  Uoyd  M.  Bentsen. 
Jr.  (D-Tex).  if  Institutional  oonoentratlon 
In  a  few  "religion"  stocks  ellmlrkatee  the  abU- 
Ity  of  U  S.  markets  to  provide  coital  for 
thousands  of  other  corporations 

A-i    B*  .!.s<>i!  s    sniboonvmlttee    on    financial 


markets  niMMft:llM|i4P»a0zt  week,  it  Is 
clear  that  lilc  eOPeinB  1*  VaU  founded  In- 
stitutional dominance  at  trading  h&s  com- 
bined with  historically  high  interest  rates  to 
drive  most  individual  investors  out  of  the 
marketplace.  Institutional  cor.centxation  In  a 
tiny  handful  of  hlgh-pnced,  hlgh-vlsibihty 
securities  has  dnven  m<>et  stocks  down  to 
hlstoriaally  ;ow  p  e  ratios.  Unab.e  t;-  rtise 
new  equity,  companies  are  contractint  ever- 
increasing  interest  costs  that  cut  down  ti.eir 
existing  equity  s  attractiveness  Except  tor 
the  benefit  of  a  tew  famous  institutional  fav- 
ortles,  the  equity  markei^  have  oeased  to  ful- 
flU  their  primary  purpose  Stock  Issues  have 
effectively  cea-sed  In  just  the  arst  six  months 
of  1973.  more  tt.nn  300  oSerings  were  with- 
drawn as  unsa;able  The  st.Tam  a'  equity 
capital  to  V&.  industry   haa  run  dry 

In  the  view  of  James  M,  Roche,  untl]  re- 
cently chief  executive  of  General  Motors 
Corp..  such  a  situation  co'uid  scarcely  have 
come  about  at  a  ^es,  appropr.at*  point  in 
time.  "In  the  next  few  years  .he  stated  re- 
cently "the  American  economy  {ai^e*  an  un- 
precedented need  for  capital  '  Ttie  dc«me.stic 
oil  Industry,  aooonllng  to  the  economists  at 
Chase  Manhattan,  will  require  some  t2i:>0- 
billjon  by  1986.  Power  utlUtles  will  want 
about  tTO-bllllon  in  outelde  capital  In  Just 
the  next  five  years  Just  one  company,  Amer- 
ican Telephone  &  Telegraph  Co.,  vrtll.  ac- 
cording to  executive  vice-president  and  treas- 
urer John  J.  Scanlon.  need  MO-bllllon  to 
»60-blUlon  for  Itself  and  its  subsidiaries  In 
the  next  decade.  And  Stewart  S.  Cort.  chair- 
man of  Bethlehem  Steel  Corp.,  says  his  In- 
dustry needs  $3-bUllon  to  S4-bUllon  a  year 
Ijetween  now  and  1980  to  replace  obsolete  fa- 
cilities, install  pollution  control  equipment, 
and  expand  capacity  by  the  additional  20- 
mlillon  to  25-mllllon  tons  it  expects  to  need. 
"Our  competitive  free  enterprise  system." 
Roche  emphasizes,  "has  succeded  In  large 
part  because  of  the  success  of  our  capital- 
raising  mechanism."  When  this  mechanism 
falters,  as  it  Is  faltering  today,  it  rapidly  af- 
fects thousands  of  American  companies  They 
drop  Into  debt.  They  cut  back.  They  get 
taken  over — sometimes  by  companies  whose 
institutional  sponsorship  has  provided  or  pre- 
served a  higher  p'e  multiple,  and  sometimes 
by  foreigners. 

the  dancers  OP  EQnrT  shortage 
If  the  short-term  effect  of  the  equity  short- 
age Is  painful  for  individual  American  cor- 
porations, the  long-term  effect  on  the  Amer- 
ican economy  could  be  agonizing. 

This  Is  why  some  thoughtful  securities  In- 
dustry leaders  see  the  Bentsen  committee  as 
among  the  most  significant  on  Capitol  Hill 
today.  Whereas  other  Important — and  more 
celebrated — Congressional  committees  are 
considering  problems  vital  to  the  securities 
Industry.  Bentsen  Is  examining  questions 
vital  to  all  Industry.  Among  them:  the  pos- 
sibility he  raises  that  -the  current  two-tier 
market  system  may  be  stimulating  the  take- 
over of  U5.  companies  by  foreign  entitles," 
and  "the  effect  of  Institutional  Investors  on 
the  ability  of  new  or  small  and  medlum-stae 
firms  to  acquire  the  capital  they  need  to 
survive  and  compete  with  US.  corporate 
giants  and  foreign  producers." 

Institutional  dominance  of  the  markets 
has.  of  course,  impaired  the  equity-raising 
ability  of  many  U.S.  corporate  giants  too. 
unless  they're  lucky  enotigh  to  be  numbered 
among  the  Institutions'  "sacred  cows  "  Don- 
ald T.  Regan,  chairman  of  Merrill  Lynch. 
Pierce.  Penner  *  Smith,  has  noted  that  "If » 
Just  as  essential,  from  an  economic  viewpoint, 
that  an  established  corporation  should  be 
able  to  raise  capital  as  that  capital  should  be 
available  to  emerging  companies "  Other 
early  a-ltnesses  before  Bentsen "s  committee, 
which  first  met  for  thre*  days  In  July,  left  no 
doubt  of  the  urgency  or  the  global  nature  of 
the  problem  C  V  Wood.  Jr  .  chairman  cf  the 
Committee  of  Publicly  Owned  OompanlM 
(BW— June  a>.  asked     "Can  smaU  and  me- 


L'TIl 


CONGRESSIONAL  KLLORD  —  SENATE 


dliun-tiaed — aod  even  a  large  Dumb«r  or  very 
btg  companies — sumve?  Can  they  bave  ac- 
cess to  equity  capital?"  Wood's  group  now 
claims  as  members  nearly  600  corporaUons. 
and  he  testified.  "They  feel  keenly  that  they 
are  being  starved  out  of  the  capital  markets." 
Among  hu  preliminary  Ideas.  Bentsen  toM 
■usixias  wDat.  he  u  leaning  toward  Umlta- 
Uons  on  Institutional  holdings.  Such  legis- 
lation could  have  two  highly  desirable  effects. 
On  the  one  hand,  a  reduction  of  insututional 
concentraUon  in  a  few  stocks  would  even- 
tually spread  an  enormous  amount  of  wealth 
among  hundreds  of  others  The  top  10  VS. 
banks  alone  have  concentrated  about  tST- 
bllUon  in  Just  10  sacred  cows.  This  hug* 
equity  represenu  3  ■■;  of  the  value  of  all  2  700 
stocks  listed  on  both  New  York  and  Ameri- 
can stock  exchanges.  At  the  same  Ume.  lim- 
itations on  insututional  concentration  would 
do  much  to  eliminate  the  violent  sell-ofTs  In 
fallen  institutional  favorites — the  plunge  by 
Levltz  Pumlture  Corp  from  MO  to  M  being 
a  prime  example— that  have  done  so  much 
to  destroy  Individual  Investors'  confidence  In 
the  market. 

A  reatoratlon  of  such  confidence.  It  is  clear 
today,  u  essential  if  the  market  U  to  recom- 
mence Its  function  as  a  provider  of  equity 
capital,  a  function  It  has  ceased  to  perform 
(tables)  Memil  Lynch  s  Regan,  the  first 
witness  before  Bentsen's  committee,  testified 
that  the  value  of  new  Industrial  equity  issues 
had  tumbled  from  M  8-blllion  in  the  first 
half  of  1972  to  $1  2-bUllon  In  the  first  half  of 
1973.  And  James  W  Davant.  chairman  of 
Paine.  Webber,  Jackson  «  CurUs  says 
Whatever  the  situation  In  the  first  six 
months,  you  can  bet  its  a  lot  worse  in  the 
last  three  " 

Last  year  Davant  s  firm  brought  to  market 
eight  companies  offering  stock  to  the  public 
for  the  first  time;  this  year,  there  was  one 
"The  use  of  equity  financings  for  emerging 
companies."  says  Davant.  "has  not  Just  di- 
minished: Its  ceased  "  The  figures  bear  him 
out  In  July  and  August  last  year,  according 
to  New  Issue  Outlook,  there  were  78  new 
Issues:   In  July  and  August  this  year.  7 

THE    TB£MOR3    AJIt    INDCSTaTWIDE 

The  result  is  grim  for  literally  thousands 
of  companies,  large  and  small,  established  as 
well  as  emerging    The  problems  of  Reliance 
Steel  &  Aluminum  Co.   (box)    are  typical  of 
ttooee    plaguing    medium-sized    corporations 
in    the    sort    of    basic    Industries    in    which 
sophisticated  financial  institutions  have  lost 
Uiterest.    So    are    thoee    of    PYanzIa    Winery 
Stouffer  Foods,  and  American  Metal  Climax 
Pranzla.   California's    fifth-largest    winery 
has    Increased    sales    from    «18-mUllon    two 
year^  ago  to  an  estimated  MO-mllllon  in  fiscal 
1973.   Earnings,  too.  are  expected  to  double 
the  1971  ngure  of  tMa.OOO    But  when  Pran- 
zU  planned  an  equity  offering  to  help  finance 
1973  capital  expenditures  of  •2-mUlion.  "the 
market  was  a  disaster."  and   the   Issue   was 
abandoned    In  lu  place  came  an  acquisition 
offer  from  bibulous  Coca  Cola  Bottling  Co 
of  New  Tork   (BW-JuIy  7).  which  also  took 
over  Mogen  David  wines  in   1970.  Like  that 
institutional  darling  and  more  famous  rela- 
tive.  -Ooke"  of  AUanta.   Coca   Cola  of   New 
York  has  managed  to  maintain  the  reason- 
ably high  multiple  eMentlal  to  takeovers 

StoulTer  Poods  also  was  taken  over  when  a 
public  share  offering  wa«  seen  as  unlikely 
to  produce  a  satisfactory  price  for  its  owners 
Utton  Industries  In  Ita  place.  Litton  ac- 
cepted a  bid  from  Switzerland's  Nestl*.  and 
ownership  of  the  familiar  household  brand 
P*«ed  Into  foreign  hand*.  So  did  much  of 
the  alumlnuin  buslneaa  of  American  Metal 
Climax,  the  fourth -largest  VB  fabricator 
of  aluminum.  Bager  to  expand  capacity,  but 
■trapped  for  equity  and  burdened  with  a 
debt  that  had  tr.pled  since  19«7.  Amax  (BW- 
Aug  25)  sold  a  half -interest  in  Its  aluminum 
operations  to  Japan's  Mltaut  for  •12A-mUllon 
While  a  handful  of  banks  (such  as  Califor- 


nia's Security  National)  and  famous  r»- 
taUers  (such  as  Olmbel's)  are  among  the 
U.S.  corporations  whose  control  has  passed 
to  foreigners  since  the  establishment  of  the 
two-tier  market,  power  over  even  more  of 
them  seems  rapidly  to  be  passing  to  credi- 
tors— particularly  to  bankers. 

Reginald  Jones,  chairman  of  General  Elec- 
tric Co ,  recently  fretted  that  the  volume 
of  corportae  long-term  debt  Issues  bad  vlr- 
tuaUy  "exploded."  with  debt-to-equity  ratios 
for  the  SiP  IndxiStrlals  leaping  from  M% 
to  41";  In  Just  10  years  And  Thomas  I.  Un- 
terberg  of  Unterberg.  Towbln.  a  New  York 
Investment  firm  with  a  respected  record  In 
the  underwriting  of  smaller  comp>anles.  an- 
swers the  question  of  what  happens  to  such 
companies  when  they  cannot  r&lae  equity 
cash:  'They  merge  They  reduce  expansion 
They  pay  the  banks  1',  <^.  over  prime,  plus 
20%  compensating  balances.  They  got  out  of 
business" 

The  list  of  companies  forced  by  the  two- 
tier  noarket  to  cut  back  on  expansion  or  fall 
back  on  their  bankers  would  stretch  from 
coast  to  coast — and  from  Florida  to  Min- 
nesota. 

In  Miami  last  month,  diversified  Pershing 
Industries  withdrew  an  offering  of  200.000 
shares  at  $7  a  share  and.  says  President 
Maurice  Revltz:  "This  has  caused  us  to  ap- 
proach any  sort  of  expansion  with  a  lot  more 
caution."  To  acquire  additional  cars  for 
Pershing's  leasing  division,  he  would  have  to 
pay  "2T-  to  2','^^  over  prime,  which  means 
the  customer  would  pay  tSO  to  MO  a  month 
more  for  his  car" 

In  Minneapolis.  WUson  Learning  Labora- 
tories, manufacturers  of  video  educational 
programs,  had  seen  sales  soar  90'~c  last  year 
and  was  seeking  il-mUllon  In  equity  to  fi- 
nance further  expansion  Instead,  they  were 
obliged  to  turn  to  banks —  a  hard  route" 
says  founder  and  chairman  Larry  Wilson 
"because  you  never  get  as  much  money  as 
you  really  need  '  Wilson  emphasizes  that 
"not  getting  the  money  from  the  stock  offer- 
ing has  hurt.  We  are  running  from  month  to 
month,  project  to  project — with  a  real  caah 
How  crunch" 

Among  the  young  thriving  electronics 
companies  In  the  San  Francisco  peninsulas 
"silicon  valley'  Advanced  Memory  Systems 
withdrew  a  460  000  share  offering  In  May. 
and  added  »2  5-mlIllon  to  Its  t6.5-mUllon  In 
short-term  bank  borrowings  Said  a  spokes- 
man "It  would  have  been  nice  to  sell  those 
additional  shares,  rather  than  borrow  more 
from  the  bank  with  Interest  rates  so  high  " 
In  Fayettenue.  NC  .  the  building  business 
of  .\merlcan  Classic  Industries  dropped  a 
series  of  expansion  and  development  projects 
when  Its  public  offering  was  withdrawn  Says 
Barry  Barnard  vice-president  for  finance: 
•We've  leveraged  ourselves  a  little  more 
highly  than  before  We  are  pretty  much 
trapped  between  high  Interest  rates  and  not 
being  able  to  go  public" 

A  bottling  firm  In  Baltimore  withdrew  an 
offering  of  common  stock  Intended  to  replace 
high-cost  Indebtedness  Instead,  worries  Its 
treasurer,  'our  Interest  coat  Is  bearing  on  our 
earnings  "  His  lament  points  up  a  problem 
like  an  exposed  nerve  In  a  tooth  cavity — a 
cavuv  which,  left  unfilled  could  rapidly  de- 
teriorate Into  the  general  decav  of  profit - 
abUlty  As  C  V  Wood  told  the  Bentsen  com- 
mittee ""When  we  can't  raise  fequltyl 
money  for  expansion,  replacement  of  facil- 
ities, or  pollution  control,  we  have  to  go 
to  the  banks  and  saddle  our  companies  with 
very  high  Interest  rates  and  fixed  charges" 
Salomon  Bros '  chief  economist  Henry 
Kaufman,  recently  noted  that  bank  loans 
to  business  had  expanded  In  the  first  seven 
months  of  this  year,  nearly  four  times  as 
fast  as  even  in  19W  The  result  of  consistent 
debt  Hnanclng  as  OE's  Jones  maksi  clear. 
Is  to  "exacerbate  the  eompresnton  of  profit 
margins."   Jones   quotes   statistics   aliowtng 


December  20y  197S 

that  In  the  early  1050s.  nonflnanclal  corpo- 
rations earned  a  pretax  23 "Ti  on  total  capital. 
"Ten  years  ago  It  had  dropped  to  about  18%. 
and  In  1971  It  was  down  to  13'~o." 
LiTTLX  aooM  roa  optimism 
With  short-term  Interest  rates  at  their 
historic  hlghs.  and  long-term  rates  neartng 
them,  there  is  no  reason  to  suppose  that  this 
situation  has  improved  since  1971.  Nor  are 
there  grounds  for  optimism  that  it  will — 
miraculously  or  otherwise — get  better  in  the 
foceaeeable  future.  In  1948.  AAA  bonds 
yielded  an  average  2.5 '"r,.  but  thoee  days  are 
gone  forever  With  an  ■Inflation  expectations 
component  "  (BW-Sept  8)  of  4%  to  5%  to 
be  added  to  the  "real  "  rate  of  Interest  of 
another  4  <^  to  5  <";  that  is  normal  for  a  period 
of  economic  expansion  the  cost  of  servicing 
debt  can  only  bear  down  more  heavily  on 
corporate  profits.  Economist  Etaufman  warns 
that  "Many  corporations  face  refinancing  re- 
quirements There's  »37  9-bimon  In  cor- 
porate bonds  maturing  by  1985  that  needs 
to  be  refunded 

In  debt  financing,  as  Paine  Webber's 
Davant  points  out.  "The  government  pays 
half"  Interest,  for  corporations  as  for  In- 
dividuals. Is  deductible  dollar  for  dollar 
against  taxes,  so  lu  net  effect  on  the  earnings 
per  share  of  most  companies  Is  only  50'^  of 
Its  actual  cost.  Furthermore.  Davant  says. 
"companies  that  borrow  are  expecting  their 
return  on  new  investment  will  be  higher 
than  their  normal  return"  Take  a  steel  com- 
pany with  $l-bllllon  In  debt  outatandlng 
and  a  return  on  investment  of  8%.  Suppose 
It  borrows  an  additional  •lOO-mllllon  At 
10%.  Its  Interest  cost  is  $10-mUllon  If  it  can 
make  12% — half  as  much  again  as  Ita  normal 
return— It  can  add  »1 -trillion  post-tax  to 
earnings.  But  if  the  economy  goes  Into  a 
recession,  or  even  Just  a  dip.  and  return  on 
the  new  investment  drops  to  the  level  of  the 
old  It  representa  a  drain  of  81 -million  on 
post-tax  earnings  Unfortunately,  in  prac- 
tice, corporate  resulta  frequently  fall  to  live 
up  to  corporate  expectations  Speaking  of  the 
performance  of  the  S&P  Industrials  In  the 
five  years  from  1966-71.  GE's  Jones  notes 
that  "many  a  company  didn't  earn  the 
equivalent  of  Interest  charges  on  newly 
added  funds." 

David  Healy.  vice-president  and  director  of 
research  at  Drexel.  Burnham.  who  has  spe- 
cialized In  analysis  of  the  steel  Industry, 
notes  that  steel's  earnlnRs  coverage  (of  In- 
terest costs)  got  "really  bad"  at  the  beginning 
of  this  decade  "because  of  deteriorating 
profits  and  Increasing  debt" 

This  combination,  it  should  be  noted.  Is 
what  pushed  the  Penn  Central  into  bank- 
ruptcy On  the  eve  of  Its  collapse,  more- 
over, the  Penn  Central  was  planning  a  fur- 
ther massive  Increase  in  Its  debt  burden.  But 
If  added  debt  financing  is  undesirable  for  the 
majority  of  U5  companies — and  all  evi- 
dence suggests  that  most  of  them  should  be 
decreasing  rather  than  Increasing  their  bor- 
rowlnps— where  Is  the  capital  they  need  to 
come  from? 

This  Is  the  central  problem  confronUng 
Bentsen  and  his  committee,  and  It  is  a  vital 
as  well  as  a  thorny  one.  Unless  corporal lon.i 
can  obtain  large  Infusions  of  equity,  they 
will  be  obliged  either  to  stop  expanding, 
or  to  expand  via  debt  In  taking  on  more  debt, 
at  Inevitably  high  Interest  cost,  they  In- 
crease what  Healy  calls  the  reverse  leverage 
on  their  equity  Their  expansion  reduces, 
rather  than  improves,  their  per-share  earn- 
ings— as  does  the  necessity  of  refinancing  old 
debt  on  which  Interest  costs  represented 
substantially  less  of  an  earnings  drain  The 
"'embedded"  cost  on  AT&T~s  total  debt  has 
risen  1  1ST.  since  the  beginning  of  this  dec- 
ade ThU,  Soanlon  notes  wryly,  •'costs  us  8250- 
mllllon  extra  a  year" 

rmcz  soraccs  op  rqtTTTT  cafttai. 
The  high  cost  of  new  debt  will  trap  most 
corporations    in    a    tightening    noose    from 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE  - 


^ 


which  they  can  escape  only  by  selling  off 
operations  or  going  out  of  business — unless 
they  can  obtain  equity,  and  obtain  It  soon. 
Apart  from  retained  earnings,  there  are  for 
VS.  corporations  today  essentially  three 
sources  of  equity  capital  for  plant  and  equip- 
ment: Institutional  Investors.  Individual  in- 
vestors, and  venture  capitalists. 

Of  these,  the  richest  and  the  most  reluc- 
tant are  the  Institutions.  Largely  because  ot 
the  banks'  traditional  policy  of  concealing 
the  scope  and  slae  of  their  holdings,  there  Is 
much  confusion  as  to  exactly  how  much  of 
American  Industry  ihey  now  effectively  con- 
trol. It  Is  a  common  practice  of  bankers  to 
pooh-pooh  the  notion  that  Institutions  now 
dominate  the  markets.  Thus  Samuel  R.  Calla- 
way, executive  vice-president  of  Morgan 
Guaranty,  cites  SEC  figures  showing  that,  at 
the  end  of  1972,  Individuals  owned  637c  of 
all  equities,  and  claimed  this  as  "Impressive 
evidence  that  the  Individual  Is  not  out  of 
the  market"  SEC  figures  cited  by  another 
banker  (C.  Roderick  O'NeU,  executive  vice- 
president  of  Manufacturers  Hanover)  show, 
however,  that  Individual  ownership  at  the 
end  of  1971  had  been  66.87^.  The  rapid  de- 
cline. 3.8';  In  one  year,  appears  to  indicate 
that  the  Individual  Is  quitting  the  market  in 
a  hurry.  In  terms  of  dollars,  the  3.8%  shin 
means  that  Individuals  own  some  840-blUlon 
less  of  the  equity  of  U.S.  corporaUons.  and  In- 
stitutions own  some  MO-bUUon  more — In  one 
single  year. 

Furthermore,  such  figures  do  not  by  any 
means  tell  the  whole  story  of  the  new  insti- 
tutional dominance.  This  was  well  Illus- 
trated when  James  J.  Needham,  chairman  of 
the  New  York  Stock  Exchange,  told  the  Bent- 
sen committee  that  Institutions  owned  ap- 
proximately 30%  of  Big  Boexd-Ilsted  equities 
by  the  end  of  1972.  But  he  emphasized  that 
this  figure  specifically  excluded  the  banks' 
personal  trust  holdings.  He  said  that  were 
these  and  other  smaller  Institutional  groups 
to  be  Included,  the  figure  would  probably 
total  45%.  Figures  released  last  week  by  the 
FDIC  reveal  that  Just  300  U.S.  banks  control 
trust  assets  of  W65-bUllon.  Institutional 
holdings  of  equities  now  total  half  a  trillion 
dollars,  give  or  take  a  billion  or  two. 

By  restricting  their  sponsorship  to  what 
Needham  calls  an  "ever- narrowing  circle  "  of 
Investments,  the  institutions  have  created  a 
seLf-perpetuatlng  downward  spiral  for  other 
stocks.  According  to  the  Economic  Report  of 
the  President  for  1973.  individuals  have  been 
selling  more  of  their  holdings  of  equities 
than  they  have  bought  since  1962— and  the 
stocks  they  have  been  selling  have  been  those 
not  favored  by  the  Institutions.  Since  the  In- 
stitutions control  the  pension  money  that 
provides  virtually  the  only  fresh  flow  of  funds 
Into  the  market,  there  has  been  no  way  for 
these  stocks  to  go  but  down.  The  result,  as 
expresesd  In  Securities  Industry  Assn.  (SIA) 
testimony  before  Bentsen:  "When  the  valu- 
ation mechanism  Is  distorted,  the  whole  capi- 
tal   formation    process — and    the    nation 

suffers." 

HK«D    PSTCHOLOGT    AND    STARVATION 

While  one  product  of  the  institutional 
philosophy  of  concentration  (less  politely 
known  as  "herd  psychology")  is  equity  un- 
dernourishment for  nonglamour  oompanlee 
of  any  size,  another  Is  equity  starvation  for 
small  and  emerging  companies  of  almost 
even-  type  Pew  big  banks— and  the  top  20 
US.  banks  control  48%  of  all  America's  trust 
and  pension  assets — wlU  consider  Invest- 
menu  m  companies  capitalized  at  less  than 
•5-mllllon.  Chalkley  J  Hambleton.  presi- 
dent of  the  Harris  Trust  A  Savings  Bank  In 
Chicago,  a  forward-looking  bank  that  Is  the 
nation's  12th  largest  In  terms  of  trust  asseta, 
.says  that  •5-mllllon  worth  of  stock  In  the 
hands  of  the  public  U  the  smallest  situation 
In  which  Harris  Trust  would  invest — "but  we 
would  much  prefer  a  minimum  of  860- 
mllUon". 

Morgan   Guaranty   U    unquestionably   the 


42715 


most  progressive  of  the  really  big  banks  In  Ita 
seeking  out  of  smaller  companies  as  potential 
Investments:  Whereas  First  National  City 
Bank  and  Bankers  Trust  are  invested  In  about 
400  companies  each,  and  Manufacturers  Han- 
over In  around  260,  Morgan  la  Invested  In  669. 
Callaway  told  the  Bentsen  committee  that 
the  bank  had  established  two  funds:  one  spe- 
cializing In  "smaller  companies,  defined  as 
those  with  market  capitalizations  of  up  to 
8100-mllllon,"  and  another  specializing  in 
"small  to  medium  companies."  which  Mor- 
gan defines  as  from  •lOO-mUUon  to  $500-ml]- 
Iton.  Although  the  bank  Invests,  through 
the  funds,  in  some  268  companies,  Callaway 
allows  that  they  do  not  represent  a  very  large 
proportion  of  Morgan's  equity  investments 
Of  the  bank's  821 .4-bllllon  In  common  stocks 
well  over  tig-blUlon  Is  in  the  shares  of 
"larger"  companies,  those  with  capitaliza- 
tions of  more  than  8500-mUUon.  Moreover, 
Callaway  says  that  "'while  I'm  sure  we  have 
invested  In  companies  with  capitalizations 
of  as  little  as  $5-mmion,  we'd  have  to  be 
really  Interested  to  do  so." 

If  Institutions  are  limiting  themselves  to 
corporations  worth  eS-mllllon— or,  as  In  most 
cases,  a  great  deal  more — It  Is  evident  that 
equity  capital  for  emerging  companies  Is  go- 
ing to  have  to  oome  from  somewhere  else. 

The  same  is  true  of  nonglamour  companies 

that  overwhelming  majority  of  small,  medi- 
um, and  large  companies  whose  Industries 
Just  do  not  interest  the  institutions.  The 
major  potentUl  source,  because  of  his  pro- 
pensity to  save  6%  to  8%  (JSO-bllllon  a  year) 
of  his  disposable  Income,  U  the  Individual 
Investor. 

Just  as  Bentsen's  prime  concern  In  estab- 
lishing his  committee  was  the  new  institu- 
tional dominance  of  the  markets,  so  one  of 
his  primary  objectives  Is  to  bring  the  Indi- 
vidual investor  back.  Several  witnesses  how- 
ever, raised  questions  about  his  absence  Mor- 
gan Guaranty's  Callaway,  as  noted,  ques- 
tioned whether  the  Individual  had  ever  gone 
And  Merrill  Lynch's  Regan  suggested  that 
he  might  be  coming  back  already.  Regan 
pointed  to  the  fact  that  Merrill  Lvnch  Is 
opening  new  accounts  at  "the  highest  rate 
In  our  history"— a  sentiment  echoed  by 
Paine  Webber's  Davant  and  (with  some  ex- 
ceptions) by  brokers  all  over  the  UJS.,  m  a 
survey  conducted  by  Business  Week. 

One  explanation  was  provided  by  Stan 
West,  research  director  of  the  New  York  Ex- 
change :  "Given  the  well-publicized  problems 
of  the  Street,  a  lot  of  shareholders  may  be 
switching  to  well -capitalized  firms  as  a  mat- 
ter of  self-ppotectton.  These  people  show  up 
as  new  accounts  at  Merrill  L\-nch  even 
though  they're  not  new  shareowners  And 
when  a  firm  like  Rej-nolds  takes  over  Courts 
In  Atlanta,  the  people  that  go  with  Courts' 
registered  representatives  to  Remolds  wont 
show  up  as  new  account  openings  But  If 
CourtB-  UMs  take  them  to  Robinson-Hum- 
phrey (another  Atlanta  firm),  theyu  show 
up  as  new." 

Just  as  consolidations  produce  new  ac- 
counts for  some  firms  without  actually  bring- 
ing new  Investors  Into  the  market,  so  do 
liquidations  The  48,000  Investors  who  had 
accounts  at  Wels  Securities  wUl  show  up  as 
new  accounts  somewhere  even  If  all  they 
do  U  Uquldata  what  is  left  of  their  holdlngi 

WHK«E    IS    THE    tNT)mDUai.t 

In  any  case,  however  many  accounts  are 
opened.  Individual  business  In  the  equities 
market  U  off  sharply.  Through  Aug.  10.  busi- 
ness on  the  Amex— which  Is  dominated  more 
than  70%  by  individuals'  trading— was  off 
32%.  In  relation  to  the  same  ^rlod  last  year 
business  on  the  Big  Board— which  Is  domi- 
nated to  about  the  same  extent  by  Institu- 
tions—was  by  contrast  off  only  7%.  If  the 
individual  was  Indeed  coming  back,  he  was 
doing  so  very  slowly. 

Furthermore.  Business  Week's  survey 
showed  that  many  erstwhile  Investors  had 


grave  doubta  about  coming  back  to  the  mar- 
ket at  all : 

Gary  A.  Daum,  administrative  vice-presi- 
dent of  General  Nutrition  Corp.,  a  Pltteburgh 
food  supplements  retaUer.  says:  "I'm  a  gam- 
bler by  instinct,  and  I  still  have  a  yearning 
to  play  the  market.  But  not  now.  There's  too 
much  risk  Involved,  because  the  worth  of  a 
company  no  longer  determines  the  value  of 
Its  stock.  Stocks  move  to  the  pressures  of 
big  investors." 

Other  investors  find  the  Interest  rates  oa 
fixed  Income  securities  too  tempting  for 
equities  to  appear  attractive.  Says  Barry  E. 
Tague,  an  investor  who  Is  vice-chairman  of 
the  Phlladelphla-Baltlmore-Washlngton 

Stock  Exchange:  "It's  that  time  now  when 
you  should  be  content  with  9%  on  your 
money,  and  go  fishing  for  a  whUe." 

And  others,  of  course,  are  indeed  girding 
their  loins  and  preparing  to  reenter  the  fray 
For  example,  David  W.  Eaton,  a  Los  Angeles 
management  consultant.  Is  anxious  to  get 
back — despite  punishing  losses  in  1968-69-  "I 
bought  companies  at  $35  that  are  going  for 
7c,"  he  says. 

It  is  perhaps  Investors  like  Fred  Torres 
general  sales  manager  of  Cleveland's  Wood- 
hUl  Chemical  Co.,  who  represent  the  biggest 
challenge  to  the  Bentsen  committee.  Torres 
says  he  has  'deflnitely  lost  confidence  In  the 
stock  market,"  and  he  has  cut  his  Invest- 
menta  to  perhaps  20%  of  what  they  were  a 
few  years  ago.  For  one  thing,  he  has  bought 
a  house.  For  another,  he  has  put  some  of  the 
money  Into  bonds.  And  he  has  been  "shaken 
by  what  has  been  happening  to  the  brokerage 
industry."  Torres  had  money  in  an  account 
with  Dempsey-Tegeler,  another  brokerage 
firm  that  went  under,  and  he  says  "I  almost 
never  did  get  that  thing  straightened  out  " 

If  many  people  feel  as  do  Torres  and  most 
of  the  ex-Investors  In  Business  Week's  sam- 
ple, Bentsen  faces  a  severe  struggle  to  get 
them  back  in  the  equity  market. 

One  additional  difficulty  in  doing  so  is 
noted  by  former  SEC  chairman  G.  Bradford 
Cook.  He  feels  that,  In  these  davs  of  Increased 
Social  Security  and  Unproved  pension  possl- 
bUitles,  many  of  the  sort  of  people  who  once 
Invested  In  the  stock  market  to  buUd  up  a 
nest  egg  no  longer  do  so.  Instead,  feeling  •' 
that  their  nest  egg  needs  wUl  be  taken  care  "* 
of,  and  disillusioned  by  market  tryrin  :  « 
and  manipulations,  they  look  to  other  ou\. 
lets  for  spare  money  and  savings.  Among  the 
most  Important,  Cook  suggests,  may  be  sec- 
ond home.c 

The  prese:.t  prospecta  for  raising  larye 
amounta  o.'  !.-esh  eq  :lty  capital  frott  -^e-^e 
Investors  appear  bleak.  Indeed,  these  pros- 
pects appear  downright  forbidding  when  -he 
third  hasic  source  at  equity  la  also  consid- 
ered—for the  venture  capltaJiFt*  aj^  not  able 
to  provide  more  than  a  tinv  percentajre  of 
what  is  needed.  '  ~6     ui 

No  exact  figure  exists  on  how  much  the 
equity  venture  oapltallsta  do  provide  but  the 
generaUy  accepted  figure  Is  tlOO-mUUon  a 
year. 

Obviously,  this  is  a  drop  In  the  bucket  of 
equity  capital  that  U.S.  companies  require 
Obviously,  too,  although  some  venture  capN 
tallsta  are  now  taking  advantage  of  low  p  e 
multiples  to  move  In  one  relaUvely  large  bus- 
inesses, they  only  invest,  in  principle  In  a 
rather  restrictive  type  of  oo-Tipanv :  the  tvps 
that  can  provide  them,  as  Leroy  W  Sinclair 
of  Technlmetrlcs  says,  "'with  at  least  40 «% 
on  their  Investment,  compounded  annuaUy." 

"STASTtrP    CAPITAI.    IS    TIGHT" 

Venttire  capitalists  are  now  able  to  make 
investments  on  terms  that  attract  them  savs 
Stanley  M.  Rubel.  who  runs  his  own  venture 
capital  constating  firm  In  Chicago,  "because  a 
lot  of  companies  are  desperate  for  capital" 
Despite  this  demand,  and  deaplta  the  fad 
that  as  much  money  is  avaUable  for  ven- 
turing as  ever,  an  anomalous  sltuaOon  has 
developed.  "Startup  capital  is  tight,"  Rubel 


42716 


CONGRESSIONAI    KiA  i  )K1)  —  SBNATB 


•ays.  "More  venture  caplt«l  money  U  flowinf 
Into  seoondAry  Onanclns.  becauae  venture 
caplMJists  are  waiting  to  see  how  cximpaalea 
perform  beCore  they  inveet." 

Tbia  LmpreaeloQ  Is  confirmed  by  venture 
capitalists  themselves— «uch  u  Edgar  P 
Hetzer.  of  Chicago's  Helzer  Co  Because  of  low 
multiples  In  the  stock  marliet.  he  says  "start- 
up Investors  don't  see  their  stock  being  trade- 
able  for  Ave  or  six  years,  and  they're  back- 
ing off  from  startup  inveetlng" 

The  multiples  that  veaturlsts  are  looking 
for  moreover  are  clearly  very  different  frocn 
those  being  paid  these  days  on  moat  emerg- 
ing companies  It  Is  evident,  too,  that  wMie 
there  Is  equity  ready,  waiting,  and  to  spare 
for  a  new  Polaroid,  an  Itek.  or  a  Digital 
Equipment,  venture  capitalists  are  not  go- 
ing to  solve  the  equity  problems  of  stodgier, 
more  basic,  less  spectacular  companies 

Here,  in  fact.  Ls  one  of  the  moat  exasperat- 
ing examples  of  the  waste  that  is  a  bjrproduct 
of  the  two-tier  market  Venture  capitalists 
have  plenty  of  money  available  for  the  right 
deal.  Indeed,  they  are  scramblng  over  each 
other  to  get  Into  the  deals  that  offer  some 
prospect  of  venture  capitalized  returns.  In 
the  same  way  among  the  few  established  com- 
panies that  qualify  for  Institutional  interest, 
there  is  no  practical  limit  on  the  amount 
of  equity  available.  This  Is.  says  Paine  Web- 
bers  Oavant.  an  effect  ot  the  instltutlonal- 
izaUon  of  savings.  Says  Davant:  "Where  de- 
cisions are  made  by  a  handful  of  money 
managers,  Instead  of  by  a  large  number  of 
Individuals,  only  the  Institutional  darlings 
are  able  to  sell  equity  '" 

An  excellent  example  is  Digital  Equipment. 
A  "religion"  stock  as  far  as  Institutions  are 
concerned.  It  recently  sold  750.000  shares  to 
bring  In  some  $66-mllllon.  Digital's  p  e  was 
then  40.  and  It  Is  Interesting  to  note  the 
primary  object  of  its  offering:  the  reipayment 
of  Digital's  bank  debt.  By  paying  off  the  debt 
with  capital  obtained  at  40  times  Its  earn- 
ings, the  company  would  be  able  to  Improve 
these  earnings  stlU  further,  thus,  conceiv- 
ably, Justifying  the  Institutions'  putting  an 
even  loftier  multiple  on  its  stock. 

THX     rUaOPEAN     PATTESN 

Digital  Equipment  Illustrates  another 
problem  put  by  C  V.  Wood  to  the  Bentsen 
committee  "Will  America  follow  the  pattern 
of  Europe — where  the  economy  Is  controlled 
by  a  few  great  banking  houses''"'  While  the 
concept  is  utterly  foreign  to  the  US,  It  no 
longer  appears  altogether  Implausible  The 
economist  Richard  Scott-Ram  says:  "Unless 
we  can  get  the  stock  market  back  on  course, 
many  companies  wont  be  able  to  raise  equity 
capital  The  banks  are  going  to  be  called  on 
to  provide  moot  financing — Just  as  they  do 
In  Germany. ■■ 

As  part  o?  the  "Unlveraalbank  "  or  total 
financial  services  concept  that  characterizes 
the  German  banking  system,  the  banks  there 
function  as  the  only  underwriters.  They  are 
heavy  purchasers  of  the  Issues  they  sell,  with 
the  result  that  they  maintain  abaolute  au- 
thority over  a  large  part  of  Cterman  industry. 
Bentsen  says  some  observer*  estimate  that 
90<^  ot  German  business  Is  now  effectively 
controlled  by  banks 

Woodrow  Wilson  noted  In  1911  that,  •The 
great  monopoly  in  this  country  Is  the  mo- 
nopoly of  money  "  The  investment  policies  of 
banks  are  now  preventing  moet  companies 
from  raising  equtty  capital  and  obliging 
them  to  come  back  to  their  bankers  for  bor- 
rowings One  of  Miami's  leading  bank  of- 
ficials says  frankly  that  the  kind  of  com- 
panies that  generally  go  to  the  pubUc  for 
risk  capital,  and  aio  currently  rtyiniea.  u?w 
have  to  pay  3%  to  2U,%  ibove  prime  for 
expansion  money— plus  compensating  bal- 
ances. At  that  rate,  companies  are  effectively 
paying  14%  to  Ifl-. 

Although  few  companies  relish  the  Idea 
of  paying  this  sort  of  short-term  Interest 
coat,  they  may  find  the  thought  ot  locking 


themaalvaa  Into  today's  lavela  ot  long-t«rm 
Interest  rates  even  n>ore  distasteful  Econo- 
mist Paul  Markowaki.  a  vice-president  of 
Laldlaw-Cog8«aball.  reckons  that  any  com- 
pany with  a  credit  rating  lower  than  BAA 
would  have  to  pay  lOV*  %  or  more  on  long- 
term  money  today  This  means  In  effect,  that 
smaller  companlea.  and  those  of  medium  or 
lower  quality,  have  nowhere  to  turn  but 
their  banks.  The  reason  u  that  public  mar- 
keUng  of  debt  at  lO^^r.  aa  the  Penn  Cen- 
tral discovered  three  years  ago,  la  Juat  not 
feasible. 

As  for  private  placementa.  volume  In  the 
first  half  of  this  year  soared  to  an  all-time 
high,  with  lenders  expanding  from  the  tra- 
ditional small  band  of  huge  "Ufe"  companies 
to  Include  more  than  a  thousand  varied  in- 
stitutions: among  them  are  savings  and 
loans,  inaurance  oompanies  of  all  sorts  and 
sizes,  and  pension  plans.  However,  the  "let- 
ter stock  '  Qascoa  of  l»«9-70  have  dulled  In- 
stitutional taste  for  private  equity  deals, 
and — with  the  exception  of  some  convertible 
preferred — private  placements  now  consist 
almost  entirely  of  debt.  In  any  case,  as  Mar- 
kowskl  observes,  smaller  and  non-blue  chip 
companies  find  It  extremely  difficult  to  tap 
the  Institutions  In  the  private  market — "un- 
less they're  wllUng  to  give  up  control." 

IN'rKBNAL    SOUBCXS    ASX    ORTINC    VTP 

This  points  up  the  crucial  problem  that  Is 
about  to  confront  the  management  of  almost 
every  VB.  company  outside  the  Institutions' 
"favorite  50' — If  indeed  It  Is  not  already 
staring  them  In  the  face. 

Corporate  capital  expenditures  are  now 
running  at  around  tlOO-blUlon  a  year  Be- 
tween now  and  1985  ( box) .  they  are  expected 
to  total  well  over  a  trillion  doUars  In  the 
last  two  years,  corporations  have  been  able 
to  rely  more  heavily  than  usual  on  retained 
earnings,  partly  because  profits  have  been 
so  high,  partly  because — owing  to  dividend 
restrictions — they  have  been  limited  In  the 
amount  they  could  pay  out  to  stockholders. 
Now  this  situation  has  changed  in  two  key 
ways  First,  shareholders  are  allowed  higher 
dividends,  and  indications  from  Wall  Street 
are  that  they  are  going  to  demand  them. 
Second,  as  Salomon  Bros.'  Kaufman  points 
out:  "Corporate  profits  are  going  to  come 
down,  and  Internal  cash  generation  Is  going 
to  slow  "  For  equity  capital,  in  other  words, 
corporations  must  look  much  more  to  ex- 
ternal sources. 

When  they  do.  their  welcome  Is  likely  to 
be  more  frigid  than  many  of  them  would 
Imagine  In  nightmares  Jim  Davant  stresses 
that  many  of  the  hundreds  of  equity  offer- 
ings that  have  been  withdrawn  this  year 
could  have  been  sold — "if  the  managements 
had  been  willing  to  accept  5  or  10  times  earn- 
ings, where  they  had  been  expecting  16" 
Economists  confirm  such  gloomy  predictions. 
Kaufman  says:  "It's  a  question  of  price.  If 
companies  have  the  earnings,  they  can  prob- 
ably get  the  equity  money— If  theyre  will- 
ing to  pay  the  price"  Scott-Ram  feels  most 
companies  wUl  be  forced  to  sell  equity  at 
eight  or  nine  times  earnmgs.  or  less. 

The  question  Immediately  arises.  Is  this 
worth  It?  A.  Gary  ShUllng.  the  chief  econ- 
omist of  Investment  bankers  White,  Weld, 
polnu  out  that,  already,  the  height  of  some 
companies"  debt -equity  ratios  may  force 
them  to  sell  equity  "at  multiples  they  won't 
like."  The  electric  utilities,  says  AT*T"8 
Scanlon  "are  being  obliged  to  sell  equity 
at  or  below  book  value  They  don't  want 
to  erode  any  further  the  Interest  coverage 
on  their  debt  " 

But  for  thousands  of  companies  selling 
"below  book."  this  option  Is  hardly  prac- 
ticable Tom  Klllefer.  vice-president  for  fi- 
nance at  Chrysler  Corp  .  wboee  stock  is  sell- 
ing at  t34  against  a  book  value  of  nearly  •BO. 
says:  "We  Just  couldn't  do  an  Issue  of  equity 
In  these  clrcumstaoes  It  doesn't  make  sense, 
and  the  stockholders  would  never  tolerate  the 


December  20,  iy73 

dilution. "  Chrysler,  happily,  can  finance  ex- 
panaton  internally:  but  what  happens  to  a 
leaa  fortunate  company — such  aa  a  steelmak- 
er with  leoa  cash  flow  and  a  lower  rate  of  re- 
turn? "Tou  have  a  heart-breaking  decision," 
Klllefer  suggests  "You  pay  the  money,  or 
you  put  off  your  plans"  W.  B  Boyer,  chair- 
man of  Republic  Steel  Corp  .  leaves  little 
doubt  of  what  his  company"s  answer  would 
be  "We're  not  Interested  in  maintaining  a 
share  of  Industry. "  Boyer  says  "We  re  Inter- 
ested In  proflu.  If  that  means  we  have  to 
contract  the  :ompany.  we'll  do  It." 

QtiXSnONS     AND    ANSWXaS 

Unless  Bentsen  and  his  committee  can 
come  up  with  some  solutions  to  VB.  cor- 
porations" capital  crunch.  It  Is  clear  that 
choices  and  prospects  for  many  of  these 
companies  are  less  than  brilliant.  Like  Re- 
public, they  can  cut  down  or  cut  back.  They 
can  go  deeper  into  debt.  They  can.  if  their 
earnings  are  presently  high  enough,  raise 
equity  capital  by  selling  stock  at  ridiculously 
low  multiples — a  process  eventually  as  harm- 
ful, since  it  cuts  down  earnings  per  share, 
as  an  excessive  reliance  on  debt. 

There  are  basically  four  ways  Bentsen  can 
move  to  solve  the  problem: 

1.  By  placing  limits  on  the  dominance  of 
Institutions.  Almost  everyone  who  has  ex- 
amined the  question  feels  that  some  sort  of 
action  IS  essential  The  exchanges  agree  The 
SIA  agrees  Don  Regan  agrees  Wood  agrees, 
vehemently  Even  some  Institutions  agree  by 
Implication — since  they  say  they  self-impose 
certain    limits,    in    theory,    already. 

Bentsen  favors  formalizing  such  limita- 
tions, to  the  extent  of  setting  a  limit  on  how 
much  of  a  company  any  one  institution  can 
hold.  He  also  favors  the  bill  recently  intro- 
duced by  Senator  Harrison  A  Williams  (D- 
NJ.),  under  which  institutions  would  be 
obliged  to  stop  concealing  their  holdings  and 
their  trading,  through  prompt,  regular  dis- 
closure of  both. 

The  advantages  of  such  measures  are  evi- 
dent. Surveys  by  the  NYSE,  and  SIA,  and 
Arthur  D.  Little,  Inc..  all  reveal  one  funda- 
mental reason  for  the  IndlviduaVs  absence 
from  the  market  As  OM's  Roche  puts  it: 
"More  than  seven  out  of  10  believe  the  mar- 
ket Is  manipulated." 

2  By  encouraging  both  Institutions  and 
Individuals  to  invest  in  "nonlnstltutlonal" 
stocks,  Regan,  who  would  like  to  see  Institu- 
tions make  public  all  their  transactions 
monthly  or  even  weekly,  says:  "I  can  see  no 
logical  objection  to  the  point  that  the  new 
power  of  institutions  puts  on  them  a  new 
responsibility  to  disclose  quickly"  Were  they 
to  do  so.  and  were  each  Institution  to  be 
limited  to.  say  3'~r  of  any  company,  the 
benefits  to  the  market  would  certainly  be  at 
least  twofold 

Ptrst,  there  would  be  a  steady  Infiow  of 
Institutional  cash  Into  the  stocks  of  hun- 
dreds of  sound  corporations  that,  despite 
steady  and  even  startling  earnings  growth, 
have  not  benefited  from  this  Inflow,  simply 
because  they  were  not  numbered  among  the 
Institutions'  favored  few.  Second,  the  fact 
that  this  process  was  taking  place,  and  that 
because  of  disclosure  It  was  seen  to  be  Uk- 
ing  place,  would  also  encourage  Individuals 
to  Invest  again.  Some  authorities,  such  as 
Charles  P  0"Hay,  senior  vice-president  and 
director  of  research  at  the  Provident  Na- 
tional Bank  In  PhUadelphla,  believe  that 
the  mere  existence  of  the  Bentsen  commit- 
tee and  its  leanings  are  exerting  a  healthy 
effect  on  securities  prices.  In  the  last  few 
weeks,  hundreds  of  low  p 'e  stocks  have  ad- 
vanced while  a  series  of  "supergl amors"  such 
aa  IBM,  Avon.  Merck,  and  Polaroid  have  hit 
or  approached  new  1973  lows  This  at  least 
suggests  that  the  movement  Is  under  wav. 
Regan  would  also  like  to  see  a  greater  effort 
by  the  banks  to  assist  the  development  of 
emerging  companies  "They're  the  ones  that 
can  afford  It."'  he  says  with  emphasis. 

But  whatever  the  banks  can  be  encouraged 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


to  do.  the  main  burden  of  financing  emerg- 
ing companies  with  equity  will  stUl  fall  on 
the  Individual.  Nashville  broker  J.  C.  Brad- 
ford says:  "The  Institutions  always  want  the 
hot  Issues  _but  are  usually  unwilling  to  buy 
the  ordinary  ones.  I'd  say  90%  of  an  aver- 
age Issue  goe^  to  our  retaU  customers"  The 
PhUadelphla  firm  of  Suplee-Mosley.  Inc..  Is 
typical  of  the  underwriters  who  normally 
bring  half  a  dozen  new  companies  public  each 
year,  and  who  depend  on  the  individual  In- 
vestor to  do  so  "This  year,  "  says  Senior  Vice- 
President  William  Z.  Suplee  HI,  "we'll  be 
lucky  to  do  one." 

3.  By  increasing  the  market  participation 
of  Individuals.  Bentsen  Is  leaning  toward 
some  sort  of  relief  on  tax  treatment  of 
gains — and  everyone  concerned  with  the 
health  of  the  equity-raising  markets  seems 
to  agree  that  It  Is  essential,  GE's  Jones  ad- 
mits that  this  may  be  contrary  to  "the  rhet- 
oric loopholes"  but  stresses:  "Our  present 
tax  structure  has  a  vigorous  bias  against 
private  saving  and  capital  attraction"  Equity 
would  seem  to  demand  some  adjustment. 
Morgan  Guaranty's  Callaway  makes  the 
point  that  taxes  put  the  individual  Investor 
at  a  considerable  disadvantage  In  competi- 
tion with  the  Institutions,  and  Bentsen  notes 
that  the  "indirect  tax  subsidy"  from  the 
Treasury  to  private  pensions  alone  Is  esti- 
mated at  »3-bUllon  to  »4-bllllon  a  year.  Even 
on  long-term  caplUl  gains,  the  SIA  points 
out.  the  Individual  can  wind  up  losing  very 
nearly  half  of  any  profit  when  state  and  city 
taxes,  and  a  basic  federal  tax  rate,  which  now 
reaches  36ijTc,  are  factored  Into  the  whole 
equation. 

Regan  proposes  replacing  this  with  a  slid- 
ing scale  to  provide  a  taxblte  graduated  ac- 
cordmg  to  the  length  of  time  an  asset  is  held. 
His  range:  30<7r  after  six  months,  descending 
to  10%  after  five  to  seven  years.  He  makes 
the  point  that  a  large  factor  In  most  assets' 
appreciation  Is  inflation,  and  he  does  not  see 
why  Investors  should  be  taxed  on  this  un- 
wanted  Ingredient  of  their  profit. 

SIA  Chairman  John  C  Whitehead  also  pro- 
poses a  sliding  scale  and  demonstrates  that 
the  present  level  of  capital  gains  taxation  is 
actually  keeping  large  amounts  of  revenue 
from  the  government.  At  least  •200-bmion  of 
capital  gains  are  "locked  In,  "  Whitehead  ex- 
plains. If  Just  half  of  these  were  unlocked, 
and  If  they  were  taxed  at  20':-r,  they  would 
produce  a  bonus  of  $20-bUllon  for  the  Treas- 
ury The  market  can  also  benefit:  By  their 
nature,  holdings  of  high-flyers  such  as  IBM 
and  Xerox  account  for  a  preponderance  of 
locked-ln  gains;  were  these  gains  to  be  un- 
leashed, economists  believe,  a  hefty  propor- 
tion would  gravitate  into  "value"  securities 
with  lower  multiples. 

In  the  view  of  Regan.  Whitehead,  and  the 
NYSE's  Needham,  equity  would  seem  to  call 
for  some  revision  of  the  tax  treatment  of 
losses,  particularly  If  Individuals  are  to  Invest 
again  In  the  relatively  high-risk  situations 
represented  by  most  emerging  companies 
Regan  and  Whitehead  suggest,  simply,  that 
the  tax  treatment  of  losses  should  match  that 
of  gains.  Needham  proposes  raising  Investors- 
loss  deduction  from  its  present  «1.000  to 
•6,000.  He  also  favors  treating  brokerage 
commissions  as  'Investment  expenses,"  de- 
ductible against  ordinary  Income.  Bentsen 
says  he  Is  "very  sympathetic"  to  that  Idea. 
4^  By  making  foreigners  and  their  surplus 
dollars  more  welcome  "Foreigners "  savs 
Merrill  Lynch 's  Regan,  "find  It  difficult  to  un- 
derstand why  we  seem  to  want  to  make  It 
hard  for  them  to  invest  In  our  securities" 
One  particular  bugbear  is  the  tax  (generally 
30%)  the  U.S.  withholds  from  dividends  and 
Interest  due  foreign  Investors.  Regan  told 
the  Bentsen  committee  that  Merrill  Lynch 
could  sell  an  estimated  16%  to  30%  more  U  S 
common  stock  abroad  If  withholding  were 
ended.  He  said:  "There  Is  lots  of  money  out 
there  looking  for  a  happy  home." 
Indeed  there  Is.  John  Scanlon  spent  last 


week  with  AT&T  Chairman  John  D.  deButts 
talking  with  investors  in  Ixjndon.  Parts. 
Zurtch,  Geneva,  and  Amsterdam.  Says  Scan- 
lon: "There  are  those  vast  pools  of  dollars 
accumulated  abroad,  maybe  »100-binion,  I 
think  It  would  be  good  to  eliminate  this 
[withholding  tax)  deterrent." 

If  foreigners  can  be  encouraged  to  Increase 
their  Investment,  If  Individual  U.S.  Investors' 
confidence  can  be  repaired,  much  of  the  erst- 
while robust  health  of  America's  capital- 
raising  process  may  be  restored  Most  Im- 
portant, as  Whitehead  told  the  Bentsen 
committee:  "Distortions  caused  by  institu- 
tional dominance  must  be  corrected  if  na- 
tional markets  are  again  to  do  their  Job  of 
allocating  resources,  and  attracting  new  cap- 
ital to  risk  situations  popular  and  unpop- 
ular, large  and  small  " 

Bentsen  recently  told  BUSINESS  WEEK: 
"We  don't  want  a  situation  in  this  country 
like  you  have  In  Germany."  As  he  said  in  the 
Senate:  ""Mr.  President,  unless  changes  are 
made  In  the  current  Investment  picture,  I 
am  concerned  we  will  see  many  of  our  com- 
panies acquired  by  foreign  Interests,  while 
those  which  retain  U.S.  ownership  will  be 
subject  to  the  contro!  of  a  few  Institutions." 

John  Whitehead,  chairman,  SIA:  "Distor- 
tions caused  by  Institutional  dominance 
must  be  corrected.  If  national  markets  are 
again  to  do  their  Job." 


By  Mr.  BIBLE   (for  himself  and 
Mr.  Jackson)  : 

S.  2844  A  bill  to  amend  the  Land  and 
Water  Conservation  Fund  Act,  as 
amended,  to  provide  for  collection  of  spe- 
cial recreation  use  fees  at  additional 
campgrounds,  and  for  other  purposes. 
Referred  to  the  Committee  on  Interior 
and  Insular  Affairs. 

Mr.  BIBLE.  Mr.  President,  I  am  send- 
ing to  the  desk  for  appropriate  reference 
legislation  designed  to  clarify  the  pres- 
ent controversy  over  the  charging  of  use 
fees  at  parks  and  recreation  areas. 

Earlier  this  session,  legislation  was  en- 
acted to  limit  fees  to  specialized  facili- 
ties—facilities beyond  those  minimal 
conveniences  which  a  person  would  nor- 
mally expect.  That  legislation  has  subse- 
quently been  interpreted  to,  in  effect, 
proliiblt  any  use  fee  charge. 

This  legislation,  which  I  am  introduc- 
ing for  myself  and  the  distinguished 
Senator  from  Washington  (Mr.  Jackson > 
would  amend  section  4  of  the  Land  and 
Water  Conservation  Act.  Specifically, 
section  4(a)(1)  would  be  amended  to 
clarify  the  extent  of  the  Golden  Eagle 
passport  privileges  and  to  use  the  term 
"permittee"  rather  than  'bearer."  In 
order  to  make  the  Golden  Eagle  more 
readily  available,  the  section  is  also 
amended  to  enable  them  to  be  purchased 
at  any  area  where  they  may  be  used. 

Section  4(a)(4)  is  amended  to  make 
the  Golden  Eagle  a  lifetime  pass  rather 
than  one  which  must  be  renewed  annu- 
ally. Since  the  only  requirement  for  ob- 
taining a  Golden  Eagle  passport  is  that 
the  recipient  be  62  years  or  older  it 
seems  unlikely  that  a  person  who  once 
becomes  eligible  will  ever  cease  to  be 
ehglble. 

The  central  thrust  of  this  bill,  however. 
lies  in  the  amendment  to  section  4(b) 
dealing  with  recreation  use  fees.  Rather 
than  attempting  to  list  those  faculties 
which  must  be  provided  before  a  fee  may 
be  charged,  as  was  done  earlier  this  year, 
the  amendment  lists  those  facUiUes,  such 
as  drinking  water,  for  which  no  charge 
may  be  exacted. 


42717 

In  addition,  seve^l  technical  and  per- 
fecting amendments  are  Included. 

Mr.  President.  I  deeply  regret  the 
necessity  for  this  legislation.  I  think 
that  the  SoUcltor  s  interpretation  of  Pub- 
lic Law  93-81  was  unfortunate  and  I 
hope  that  this  legislation  wUl  finally 
settle  this  question. 


By  Mr.  NELSON: 

S.  2845.  A  bill  to  amend  the  Federal 
Food,  Drug,  and  Cosmetic  Act  in  order 
to  protect  consumers  against  food  addl- 
tives^hlch  have  mutagenic  or  terato- 
genic effects  on  man  or  animals.  Referred 
to  the  Commitee  on  Labor  and  Public 
Welfare. 

Mr.  NELSON.  Mr.  President,  the  safety 
of  manj-  chemicals  in  our  food  supplj- 
continues  to  be  challenged. 

For  this  reason,  I  am  introducing  to- 
day a  bill  that  will  strengthen  the  Gov- 
emments  food  additive  protection  ca- 
pabihty,  by  requiring  testing  of  additives 
prior  to  their  approval  to  determine 
whether  they  cause  birth  defects  or 
genetic  damage.  At  present,  there  is  no 
requirement  for  such  testing  prior  to 
approval  of  food  additives. 

WHAT    THE    Bn.L    DOES 

'I'nis  bill  requires  that  appUcants  for 
Federal  approval  of  food  additives  pro- 
vide reports  of  tests  conducted  to  deter- 
mine whether  the  additives  cause  muta- 
genic or  embrj'otoxic — teratogenic — ef- 
fects when  ingester'  by  man  or  animal. 

Such  tests  must  utilize  the  most  up- 
to-date  methods  available  for  such  pur- 
poses, as  determined  by  the  HEW  Sec- 
cretarj'. 

If  an  additive  is  foimd  to  cause  either 
effect,  the  Secretary  must  make  an  af- 
firmative decision,  based  on  the  recom- 
mendations of  ad  hoc  advisor\'  commit- 
tees of  experts,  to  allow  the  substance, 
if  he  finds  that  it  would  be  more  haz- 
ardous to  the  public  health  to  denv  use 
of  the  additive  than  to  permit  Its  use. 

The  bill  sets  up  a  system  by  which  the 
Secretary  must  convene  expert  commit- 
tees to  review  additives  that  are  found 
to  cause  mutagenic  or  teratogenic  effects 
and  requires  that  the  Secretary  publish 
his  proposal  for  use  of  such  additives  In 
the  Federal  Register,  if  he  determines 
to  allow  the  additives  in  the  food  supply 

Within  6  months  of  the  date  of  such 
notice,  he  must  make  his  affirmative 
finding  final,  or  the  additiv..  is  not 
approved. 

The  Secretary  is  given  authority  to 
weigh  the  benefits  of  permittirg  the  use 
of  certain  additives  against  the  possible 
dangers  to  the  public  health  and  safetj- 
of  such  addiUves.  The  bill  makes  it  clear 
that  such  determinations  shall  not  affect 
the  Delaney  anticancer  clause,  which 
prohibits  any  substance  in  the  food  sup- 
ply that  causes  cancer  in  man  or  animals 

Whenever  the  Secretary  decides  to  al- 
low an  additive  that  has  shown  muta- 
genic or  teratogenic  effects,  such  a  find- 
ing must  be  on  the  labeling  of  foods  con- 
taining the  additive. 

The  Secretary  is  required  to  report  to 
Congress  annually  on  the  status  of  such 
additives.  Including  justification  for  per- 
mitting their  use.  a  review  of  current  re- 
search activities  being  carried  out  with 
regard  to  such  additives,  and  a  review  of 


12718 


CONGRESSIONAL  RECORD  —  SEN ATB 


December  20,  1973 


current  research  Into  possible  alterna- 
tives to  them. 

The  Secretary  must  also  determine 
which  additives  currently  in  use.  includ- 
ing those  on  the  "generally  recognized 
as  safe"  (ORAS*  list,  should  be  tested  for 
mutagenic  and  teratogenic  effects,  and 
provide  for  such  tests  to  be  conducted, 
after  which  the  Secretary  must  make 
afBrmative  findings  as  regards  their  con- 
tinued use.  Such  a  review  must  be  made 
within  2  years  after  enactment,  with  an 
annual  status  report  to  Congress. 

Mr.  President,  the  Pood  and  E>rug  Ad- 
ministration now  lists  some  3.000  food 
additives  that  have  been  approved  for 
use  in  the  food  supply:  Some  1.000  are 
used  directly  in  food,  and  2.000  contact 
food  through  packaging  or  other  indirect 
means. 

The  1958  food  additives  amendment  to 
the  Federal  Food.  Drug  and  Cosmetic  Act 
defines  a  food  additive  as — 

Any  substance  the  Intended  use  of  which 
results  or  may  reasonably  be  expected  to  re- 
sult, directly  or  Indirectly,  In  Its  becoming 
a  componenr  or  otherwise  affecting  the  char- 
acteristics of  any  food  ( Including  any  sub- 
stance Intended  for  use  in  producing,  manu- 
facturing, packing,  processing,  preparing. 
treating,  packaging,  transporting,  or  holding 
food:  and  including  any  source  of  radiation 
intended  for  any  such  use ) ,  If  such  substance 
Is  not  generally  recognized,  among  experts 
qualified  by  scientific  training  and  experi- 
ence to  evaluate  its  safety,  as  having  been 
adequately  shown  through  scientific  proced- 
ures (or.  in  the  case  of  a  substance  used  In 
food  prior  to  January  1,  1958.  through  either 
scientific  procedures  or  experience  based  on 
common  use  in  food)  to  be  safe  under  the 
conditions  of  its  intended  use.  (Section 
301(S) ). 

According  to  the  FDA,  the  United 
States  probably  approves  the  use  of  more 
kinds  of  food  additives  than  any  other 
nation  And.  more  are  being  developed 
and  approved  ever>-  year.  In  1972.  the 
FDA  received  109  petitions  for  new  uses 
of  food  additives:  77  were  approved.  In 
the  first  half  of  1973,  the  FDA  received 
47  new  petitions  for  food  additives;  27 
were  approved. 

Dr.  Jean  Mayer,  professor  of  nutri- 
tion. Harvard  University,  and  Chairman 
of  the  first  White  House  Conference  on 
Food,  Nutrition  and  Health,  1970.  has 
written : 

Many  Americans  see  the  extensive  use  of 
food  additives  as  raising  not  only  profound 
health  and  economic  Implications,  but  also 
general  questions  about  the  very  nature  of 
our  civilization.  (Foreword  to  "Eater's  EM- 
geat,"  by  Michael  T.  Jacobson.) 

Any  number  of  these  additives  are  safe, 
economic  to  use.  and  make  it  possible 
for  the  proliferation  of  processed  foods 
with  a  long  shelf  lile. 

However,  many  of  these  additives  may 
be  unnecessary  and  dangerous  to  our 
health,  either  on  a  short-  or  long-term 
basis 

An  FDA  opinion  poll  about  the  safety 
of  food  containing  pesticides,  added 
color,  or  preservatives,  which  was  pub- 
lished in  its  magazine.  FDA  Consumer. 
June  1973.  shows  that  between  1966  and 
1972.  consumers'  belief  in  the  safety  of 
these  chemical  additives  dropped  dra- 
matically. The  poU  is  as  follows: 


OPINION  ABOUT  THE  SAFETY  Of  FOOD  CONTAINING 
PCSTICIOES.  AOOFO  COLOR.  OR  PKFSERVATIVE^S  IN  1916 
AND  1972 

Ouuttoii:  How  do  you  ImI  about  Ut*  uftty  o(  lood  mtattt 
conuiiu: 


PorcMt  d  rnpondMts- 


Pasticidc 
miduw 


Addad 
cotof 


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Stfatyscil* 

1966 

1972 

1966 

1972 

1966 

1972 

Vjrysale     

...      24 

4 

20 

41 
9 

7 

IS 
12 

33 

7 
14 

7 

Not  ul«  •tin 

Oon't  know 

...        S 

4 

18 
6 

Sowrca:  "FOA  Consumtr",  Jkm  1973,  p.  17. 

The  National  Research  Council's  Com- 
mittee on  Food  Protection  recently  re- 
ported: 

The  preponderance  of  data  concerning 
food  additives  confirms  that  they  have  been 
used  safely,  effectively,  and  to  the  benefit  of 
consumers.  .  .  .  There  Is  no  evidence  that 
consumption  of  foods  In  which  these  sub- 
stances and  regulated  additives  were  proper- 
ly used  has  endangered  human  health. 

Experience  has  amply  demonstrated  that 
chemical  aids  of  this  kind  can  be  used  safety 
and  beneficially,  but  it  is  imperative  that 
competent,  strong  regulatory  agencies  and  a 
public-spirited,  ethical  industry  apply  the 
measures  necessary  to  ensure  that  they  will 
be  so  used  in  the  future.  It  should  be  pointed 
out  that  methods  of  detecting  toxicity,  es- 
pecially long-term  effects,  have  steadily  im- 
proved and  are  likely  to  become  more  sen- 
sitive and  reliable  and  that  health  safeguards 
will  continue  to  require  revision  according  to 
gains  in  knowledge.    (Emphasis  added.) 

Source:  "The  Use  of  Chemicals  In  Pood 
Production.  Processing.  Storage  and  Distribu- 
tion." National  Academy  of  Sciences.  Com- 
mittee on  Pood  Protection.  National  Re- 
search CouncU.  Washington,  DC  ,  1973.  pp. 
30-31 

Despite  this  conclusion,  the  fact  Is  that 
strong  evidence  exists  to  contradict  the 
NRC.  Recent  scientific  studies  and  in- 
cidences dramatically  illustrate  that 
many  widely  used  food  additives  may  not 
be  as  safe  as  It  has  been  believed. 

These  new  scientific  findings  are  the 
result  of  new  techniques  for  detecting 
physiological  and  toxlcologlcal  effects  of 
chemicals  on  man  and  animals.  The  NRC 
agrees  that,  since  "methods  of  detecting 
toxicity,  especially  long-term  effects, 
have  steadily  improved  and  are  likely  to 
become  more  sensitive  and  reliable,"  It 
is  necessary  to  continuously  revise  the 
data  on  which  additives  are  judged  safe. 

Following  are  some  examples  of  new 
scientific  study  results. 

A  team  of  San  Francisco  investigators, 
headed  by  Dr  Ben  Feingold.  of  the 
Kaiser  Poimdatlon  Hospltal-Permanente 
Medical  Group,  found  In  a  preliminary 
study  that  behavioral  disturbances  in 
children,  such  sis  hj-perkinesia  and  learn- 
ing difficulties,  may  be  directly  attribut- 
able to  the  ingestion  of  certain  food 
additives.  Reporting  to  the  American 
Medical  Association  Section  on  allergy 
In  July  1973.  Dr  Feingold  noted  that  a 
graph  Indicating  the  Increase  In  dollar 
value  for  the  production  of  artificial 
flavors  and  soft  drinks  parallels  a  graph 
for  the  increased  Incidence  of  hyper- 
kinesia and  learning  difficulties  among 
schoolchildren.  Further  study  Is  neces- 


sary to  confirm  these  findings,  including 
to  what  extent  food  additives  ingested 
by  a  mother  during  pregnancy  affect  an 
unborn  child. 

A  Georgetown  University  study  in 
Washington.  DC.  in  collaboraUon  with 
the  National  Institutes  of  Health,  shows 
that  some  chemical  compounds  used  to 
preserve  beverages  and  canned  and 
frozen  foods  are  harmful  to  human  cells. 
The  laboratory  study  of  tissue  cultures, 
conducted  under  the  direction  of  Dr.  T. 
Sreevalsan,  Eissociate  professor  of 
Microbiology,  shows  that  antibacterial 
food  additives,  such  as  fatty  acids  and 
nitrites,  inhibit  cell  growth,  alter  the 
shape  of  certain  cells,  and  in  some  cases, 
destroy  cells.  Dr.  Sreevalsan  said.  "Fur- 
ther study  is  necessary,  but  present 
evidence  would  urge  cai'tjon  in  eating 
large  quantities  of  food  containing  such 
additives  "  Mr.  President,  I  ask  unani- 
mous consent  that  a  release  describing 
these  findings  be  printed  in  the  Record 
following  these  remarks. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 
•  See  exhibit  1.) 

Mr  NELSON.  Mr.  President,  the  Joint 
PAO  WHO  Expert  Committee  on  Food 
Additives  recommended  recently  that 
toxlcologlcal  testing  be  carried  out  on 
tissue  storage  of  macromolecular  food 
additives.  The  recommendation  is  con- 
tained in  the  Committee's  17th  report, 
which  concludes  that  information  on  tis- 
sue storage  of  macromolecular  materiaJs 
is  frequently  lacking.  For  example.  Car- 
rageenan,  a  widely-used  food  additive,  Is 
stored  in  certain  cells  of  rhesus  monkeys 
for  6  months  or  longer,  and  the  con- 
sequences of  such  long-term  storage  are 
not  well  understood,  the  expert  commit- 
tee said — Pood  Chemical  News.  Novem- 
ber 12.  1973.  page  12 

Two  widely  used  preservative  additives. 
BHA— butylated  hydroxyanisole — and 
BHT — butylated  hydroxytoluene — have 
been  shown  in  a  recent  study  to  cause 
significant  brain  and  behavioral  changes. 
The  offspring  of  pregnant  mice,  which 
were  fed  large  quantities  of  BHA  and 
BHT.  suffered  major  changes  !n  brain 
chemistry  and  showed  abnormal  be- 
havioral patterns.  As  a  result  of  recent 
tests  in  Britain,  BHT  has  been  banned 
and  the  use  of  BHA  restricted.  These 
two  preservatives  have  been  used  for 
more  than  20  years  to  replace  the  nat- 
ural vitamin  E — antioxidant — lost  In 
processing.  Drs  C.  L.  Scuffer  and  A  G. 
Karzmar  and  a  team  of  Loyola  Univer- 
sity's Institute  of  Mind.  Drugs,  and  Be- 
havior. coGcluded  In  their  study  that 
BHA  and  BHT  should  be  reevaluated 

BHA  and  BHT  are  on  the  FDA's  gen- 
erally recognized  as  safe  'GR.\S  list, 
meaning  that  they  were  given  a  blanket 
approval  when  the  1958  food  additives 
law  was  enacted. 

There  are  some  600  addttlvps  on  the 
GRAB  list,  including  sacrhartr.  n.ono- 
sodlum  glutamate.  nitrites  and  nitrates. 
all  of  which  are  now  under  review  by  the 
FDA,  and  some  of  which  are  being  se- 
riously challenged  as  to  their  safety.  Cy- 
clamates  were  on  the  GRAS  list  when 
they  were  banned  from  foods  because  of 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42719 


evidence  that  they  caused  cancer.  Di- 
ethyistilbesU-ol  iDES),  an  animal  feed 
additive  hormone  u.-^ed  a.s  a  fattener.  was 
banned  because  of  new  evidence  that 
residues  left  In  meat  could  Induce  cancer. 

If  we  are  going  to  continue  the  wide- 
spread use  of  these  chemicals  and,  in 
fact,  Increase  Lhelr  use.  there  must  be 
carefully  developed  .scientific  e\1dence 
showing  they  are  safe  and  necessary. 

At  present,  the  Federal  F(X)d.  Drug, 
and  Cosmetic  Act  requires  only  that  ad- 
ditives be  shown  to  be  safe,  but  as  we 
are  finding,  new  scientific  testing  meth- 
ods show  many  additives  thought  to  be 
safe  are  not. 

The  law  does  not  require  an  additive 
to  be  proven  necessary,  only  to  do  what 
it  purports  to  do,  which,  in  fsu:t,  may  be 
merely  cosmetic. 

A  bill  that  I  have  Introduced,  the  Food 
ProtecUon  Act  of  1973  (S.  406).  would 
require  evidence  that  an  additive  is  nec- 
essary prior  to  its  approval  for  use. 

Today.  I  am  introducing  a  bill  that 
would  close  another  gap  in  the  food  ad- 
ditives law,  relating  to  safety. 

This  bill  requires  that  additives  be 
tested  prior  to  approval  and  use  to  deter- 
mine whether  they  cause  birth  defects — 
teratogenesis — or  genetic  damage — mu- 
tagenesis— which  may  be  passed  on 
through  generations  with  such  results  as 
hemophilia,  cleft  palate,  mental  retar- 
dation. Mongolism,  and  decreased  re- 
sistance to  disease. 

New  scientific  evidence,  such  as  de- 
scribed alx)ve.  Illustrates  the  need  for 
such  testing.  The  Environmental  Protec- 
tion Agency,  in  its  booklet.  "Health  Ef- 
fects of  Environmental  Pollution."  page 
19,  says: 

Numerous  environmental  pollutants  are 
not  only  carcinogenic  but  teratogenic  and 
mutagenic  as  well.  Teratogens  may  cause 
monstrous  deformities.  Congenital  defects 
account  for  14  percent  of  all  Infant  deaths 
and  are  the  third  most  common  explanation 
for  death  In  the  newborn.  Many  substances 
induce  abnormalities  in  a  fetus  at  levels 
below  those  needed  to  make  the  mother  111. 
Mutagens  result  In  transmissible  changes 
which  affect  potential  offspring.  If  a  pollu- 
tant damages  a  cell  while  its  capacity  for 
division  remains  unimpaired,  the  result  may 
be  defects  among  future  generations. 

According  to  the  National  Foundation - 
March  of  Dimes,  even,-  year  250,000 
American  babies  are  born  with  such  de- 
fects as  mental  retardation,  blindness, 
and  heart  defects  Tlie  foundation  esti- 
mates that  20  percent  of  all  birth  defects 
are  hereditary-;  another  20  percent  are 
thought  to  be  caused  by  disesises  of  the 
mother,  drugs,  or  radintlon  exposure: 
and  the  remaining  60  percent  may  be 
due  to  the  interaction  of  heredity  and 
environment — 'Facts,  1974.'  National 
Foundation-March  of  Dimes,  page  7. 

rZASIBILITT    or   TXSTING 

Under  present  law,  no  substance  that 
Is  found  to  cause  cancer  in  man  or  ani- 
mal is  permitted  in  the  food  supply. 
Thus,  additives  must  be  tested  and  shown 
to  be  noncancer  causing  before  they  are 
approved.  Cancer  screening  tests  have 
been  developed  and  applied  for  a  number 
of  years. 

Test  methodologies  for  mutagenesis 
CXIX 2890— Part  33 


and  teratogenesis  are  different  from  can- 
cer tests,  and  the  states  of  the  art  differ 
between  mutagenic  and  teratogenic  test- 
ing. 

Geneticists  developed  practical  meth- 
ods of  detecting  chemical  mutagens  in 
the  1960's.  which  tests  are  feasible  at  a 
reasonable  cost  for  screening  large  num- 
bers of  substances,  such  as  food  addi- 
tives. 

There  are  now  three  well-known 
methods  for  mutagenic  testing. 

These  Include:  the  dominant  lethal 
test;  the  host-mediated  assay;  and  the 
in  vitro  cytogenetic  test.  New  research 
continuously  leads  to  better  test  systems. 

The  National  Cancer  Institute  and  the 
National  Institute  for  Environmental 
Health  Sciences  are  now  jointly  under- 
taking an  examination  of  some  85  sub- 
stances knowTi  to  cause  cancer  in  ani- 
mals to  learn  which  ones  also  are  muta- 
genic. 

Testing  for  teratogenesis  also  has  been 
developed,  but  is  less  far  along  than 
mutagenic  test  protocols.  Nevertheless, 
the  state  of  the  art  is  sufficient  for  mass 
screening  now.  and  is  being  refined  by 
the  National  Institute  of  Environmental 
Health  Sciences  and  the  FDA. 

FDA  advises  us  that  they  can  now  test 
for  teratogenesis  on  a  feasible,  short 
term. screening  basis,  and  that  they  will 
be  able  to  regulate  on  the  basis  of  such 
tests. 

At  the  present  time,  FDA,  as  part  of 
the  GRAS  list  review,  plans  to  test,  im- 
der  contract,  100  GRAS  chemical  com- 
pounds for  mutagenesis. 

The  FDA  also  is  conducting  tests  in- 
house.  The  Division  of  Toxicology  in  the 
FDA's  Bureau  of  Foods  is  conducting 
tests  to  determine  whether  GRAS  sub- 
stances are  toxic  to  the  fetus  or  embryo 
as  well  as  teratogenic. 

A  three-generation  reproductive  study 
is  underway  in-house  at  FDA.  to  studj" 
both  teratogenesis  and  mutagenesis. 

At  the  National  Center  for  Toxlcologl- 
cal Research,  Pine  Bluff.  Ark  the  FDA 
Is  conducting  dose-response  t*ratogenic 
studies  with  the  herbicide  2,4.6-T,  whirh 
will  serve  as  a  protoco!  for  later  work; 
and  a  mutagenesLs  propram  has  been 
started  under  an  interagency  agreement 
with  the  At-orruc  Energy  ComniLs,<-!on 
using  work  performed  at  the  Oak  Ridge, 
Term..  National  Laboratory. 

All  of  these  activities  Indicate  both 
the  need  and  the  feasibility  for  such 
screening. 

DISCRmONART    AtTTHOaiTT 

An  important  issue  Is  how  to  relate 
animal  tests  to  humans  and  human  con- 
sumption. Teratogenic  and  mutagenic 
te.'^ting  show  that  a  number  of  substances 
ha\e  cau.=:ed  these  reactions  in  aninia;.- 
Subcutaneous  injection  of  salt — sodium 
chloride — an  excess  of  vitamin  A  ad- 
ministered orallj-:  and  zinc,  an  essentia] 
mineral,  when  injected  intravenously, 
have  all  been  found  to  be  teratogenic  in 
animal  test  systems. 

A  straight  prohibition  of  substances 
found  to  be  mutagenic  or  te:atogenlc 
therefore,  may  not  always  be  feaMble  or 
In  the  best  Interests  of  public  health. 
Many  essential  fcxxls  and  nutrients  might 
be  banned  under  such  a  prohibition 


For  this  reason,  this  bill  pro\1des  for 
a  system  of  evaluation  and  determina- 
tion by  the  Secretary  as  to  whether  it 
Is  better  for  the  public  health  to  allow 
such  substances  into  the  food  supply 
than  not  to. 

NEB)    FOB    TESTING 

■Virtually  everyone  agrees  that  testing 
for  these  reactions  is  necessary. 

The  need  for  such  data  has  long  been 
recognized  as  overdue  by  the  scentific 
community. 

William  D.  Ruckelshaus.  while  Admin- 
istrator of  the  Environmental  Protection 
Agency,  told  the  American  Society  of 
Toxlcologj-  In  Washington.  DC,  March 
9,  1971: 

For  the  past  several  decades,  we  have  been 
heedlessly  introducing  into  our  environment 
a  multitude  of  chemical,  biological  and  phys- 
ical contaminants  with  very  little  idea  of 
what  we  are  doing  to  ourselves  or  other  life 
forms  with  whom  we  share  this  planet.  . 

We  need  to  know  more--far  more — about 
what  we  are  doing  to  ourselves  and  our 
planet,  and  to  the  fetuses  of  our  unborn 
children,  and  to  the  genetic  heritage  ot  tihose 
chUdren  by  the  pervasive  use  of  the  chemical 
wonders  of  our  age. 

There  are  gross  inadequacies  in  our  knowl- 
edge of  the  properties  of  various  agents  in 
producing  cancer  or  congenital  anomalies  or 
mutations.  And  yet.  it  is  well-known  that 
many  chemicals   have  such   properties. 

The  truth  is  that  most  of  the  pollutants 
of  the  environment  which  engage  our  con- 
cern today  have  never  been  eTaluated  in  these 
terms.  Yet.  I  am  Informed  that  recenUy  de- 
veloped techniques  are  avaUable  that  offer 
practical  procedures  for  routinely  testing  for 
the  hazards  of  muUtlons.  cancer  Induction. 
or  fetal  damage.  The  need  for  such  routtne 
testing  Is  clear  r<Tta.!n:v  we  ought  not  to 
wait  for  tragedies  !l>.e  the  thalidomide  in- 
cident of  the  60's  before  responding  to  the 
need.  And  surely  it  would  be  unconscion- 
able— Inconceivable,  in  fact— that  w©  should 
wait  for  time  to  reveal  harmful  mutations 
before  we  try  to  search  out  and  eliminate 
the  chemical  mutagents.  ("Chemicals  and 
the  Future  of  Man,"  Hearings,  Senate  Sub- 
committee on  Executive  ReorganleatlcMi 
April  6-7,   1971.  p.  65-68  i 

Dr.  Marvin  S.  Legator,  former  Chief 
Cell  Biology  Branch.  Divx-ilon  of  Tox- 
icology. FDA.  now  at  Brown  University, 
said  in  an  address  iii  1970 : 

In  the  last  30  years  there  has  been  a 
dramatic  increase  in  the  number  o'.  environ- 
mental agents  to  which  vr  are  sj;  eipo»«l- 
food  additives,  pesticides.  a;:ubuOiics  dru^ 
and  indusirla:  chemicals  Many  of  these  bs  - 
logically  acv.ve  a^-ent.^  are  recent  Edition?  to 
our  environment  not  present  20  or  ;V0  vears 
ago;  hence  we  are  besieg-ed  with  chemlra; 
compounds  to  which  we  have  not  t«KX«ne 
adapted  through  the  normal  process  cr 
natural  selection 

In  ti-.e  past  few  yea.'-s  relevant  methodolo- 
eles  have  t>eer.  developed  to  evMuAte  muta- 
«nic  a#re;.t5  m  man-.mais 

.Achievement*  of  scre«nlng  for  niutasrenic 
activity,  and  the  predictive  value  of  muta- 
genicity testing  The  value  of  screening  x>m- 
pounds  for  mutagenic  activity  ha5  be«:. 
dnunatlcal!y  Ulu.'-trated  in  the  last  two  vears 
Without  s^-st^'matic  screening  of  cj.en-J-als 
for  muta^nic  activity,  k:.A  wilt  meth- 
odologies .'Uft  recently  dere'ope^l  th»e  stu- 
dies have  already  played  a  sl^.lScant  role 
in  characterising  the  penetl'-  harards  of 
widely  used  environmental  a^nta  To  draw 
up>on  examples  from  the  re>-earch  group  a: 
FDA  alone,  I  can  list  the  foUowljig: 

1.    Characterisation    of    the   naturally   oc- 


42720 


cxirrlng  mycotoxla,  aflatoxln,  m  a  mutagen  ic 
ag«nt: 

2.  Detennlaatloa  of  the  In  vivo  cytogenetic 
effects  of  cyclohexylamlne.  a  metabolite  of 
cyclamate: 

3.  Characterization  of  the  widely  used  ag- 
ricultural ftinglclde,  Captan.  as  a  mutagenic 
agent: 

4.  Induction  of  dominant  lethal  effects  of 
the  chlorinated    hydrocarbon   DDT 

Legator  concluded: 

It  la  unfortunate  that  In  the  area  of  pub- 
lic health  safety  we  have  only  responded 
after  some  disaster  such  as  the  elUlr  of 
sulfanilamide  catastrophe  In  1935,  or  the 
thalidomide  tragedy  in  the  'ao's.  The  rouUne 
evaluation  of  chemically  Induced  mutations, 
proceeding  in  an  orderly  manner  without 
the  emotional  pressure  of  an  apparent  catas- 
trophe, represents  a  unique  step  forward  In 
the  fleld  of  safety  evaluation  The  continual 
involvement  of  geneticists  in  this  area  and 
In  the  general  area  of  toxicology  should  be 
of  great  benefit  to  manJcind.  ("Chemicals  and 
the  Future  of  Man."  Hearing,  pp    253-256  ) 

James  P.  Crow.  Ph.  D.,  professor  of 
medical  geneUcs.  University  of  Wiscon- 
sin Medical  School,  in  a  report  published 
following  a  1966  conference  on  popula- 
tion hazards  from  induction  of  muta- 
tions by  man-made  chemicals,  recorded 
the  following  conference  summary: 

ThertT  Is  reason  to  fear  that  some  chemicals 
may  constitute  as  important  a  risk  as  Ir- 
radiation, and  poesibly  a  more  serious  one 
Although  knowledge  of  chemical  muta- 
genesis In  man  U  much  less  certain  than 
that  of  radiation,  a  number  of  chemicals- 
some  with  widespread  use — are  known  to 
Induce  genetic  damage  In  some  organisms. 
To  consider  only  radiation  hazards  is  to 
Ignore  what  may  be  the  submerged  part  of 
the  Iceberg  (J  p  Crow:  Chemical  Risk  to 
Future  Generations.  Scientists  and  Citizens 
June-July,  1968.  pp    113-117.) 

In  another  report  Crow  stated: 
The  major  effects  of   increased   mutation 
rates  would  thus  be  leas  obvious  and  spread 
over   many   generations,   and   would   include 
111  defined  abnormalities,  such  as  premature 
•glng,  and  enhanced  susceptlbuity  to  vari- 
ous diseases.   noUbly  leukemU  and   cancer, 
and   alterations   In   sex   ratios.    {Crow.    1968 
Report  of  the  Advisory  Panel  of  Mutagenicity 
HBW.    1968  )    (See  Hearing.   Food   Additives'. 
Senate  Select  Committee  on   Nutrition  and 
Human  Needs,  Sept    30.    1973.   pp.    1365-66  ) 


CONGRESSIONAL  RECORD  — SENATE 


(Hearing.  Food  Additives.  Senate  Select  Com- 
mittee on  Nutrition  and  Hiiman  Needs  Sent 
30,  1972.) 

H.  V.  Mailing,  Biology  Division,  Oak 
Ridge.  Tenn.,  National  Laboratory  in 
1970  wrote: 

Are  mutations  mostly  a  problem  for  our 
progeny?  Let  us.  for  example,  consider  the 
present  stage  of  births  In  the  United  Statee 
today.  About  one  out  of  seven  pregnacles 
faUs  to  produce  a  living  child.  Approximately 
one-fourth  of  these  spontaneous  abortions 
are  associated  with  chromoaome  abnormal- 
ities. More  than  one  out  of  50  babies  have 
some  other  serious  genetic  abnormality.  Most 
mutations,  induced  or  spontaneous  give  rtse 
to  individuals  with  less  fitness  Furthermore 
cancer  is  common  and  U  a  serlotis  problem 
and  It  Is  likely  that  a  part  of  the  tumors 
arise  from  induction  of  mutations  Back- 
ground radiation  exposure  can  only  account 
for  a  small  portion  of  the  geneUc  damage 
Induced.  " 

Mutation  can  be  induced  both  by  radiation 
and  chemical  compounds,  and  the  greatest 
majority  of  these  mutations  might  be  due 
to  the  latter.  ("Chemicals  and  Future  of 
Man."  Hearing,  pp.  357-266  ) 


December  20,  1973 


Samuel  Epstein,  MD.  Swetland  pro- 
fessor of  environmental  health  and  hu- 
man ecology.  Case  Western  Reserve  Med- 
dlcal  School,  testified  before  the  Senate 
Select  Committee  on  Nutrition  and  Hu- 
man Needs.  September  20.  1972: 

Carcinogenicity,  mutagenicity  and  terato- 
genicity are  unique  and  Irreversible  mani- 
festations of  chronic  toxicity.  No  valid  data 
exist  indicating  the  existence  of  threshold 
levels  for  mutagens  of  teratogens  as  indeed 
for  carcinogens 

In  spite  of  repeated  recommendations  of 
expert  advisory  groups — Genetic  study  sec- 
tion of  the  NTH.  Crow  Report.  1968:  Report 
of  the  Advisory  Panel  on  Mutagenicity  HEW 
1969;  Report  on  the  National  Institute  of 
Environmental  Health  Sciences  Task  Force 
1970.  Report  of  the  FDA  Advisory  Committee 
on  Protocols  for  Safety  Evaluation  1970— 
that  mutagenicity  testing  with  currently 
avauable  and  pracUcal  methods  be  made 
mandatory  or  otherwise  Introduced  into  the 
standard  armamentarium  of  toxicity  testing 
protocols  for  mutagenicity  testing  have  still 
not  yet  been  promulgated  in  the  Federal 
Keguter.  nor  even  have  guidelines  for  such 
testing    yet    been    published    by    the    FDA 


It  is  Clear  that  the  scientific  commu- 
nity has  been  concerned  about  the  long- 
range  effects  of  mutagenic  and  terato- 
genic substances  for  many  years,  and 
that  governmental  action  to  prevent  such 
substances  from  endangering  the  public 
health  is  long  overdue.  This  bill  will  cor- 
rect that  serious  gap  in  governmental 
regulation  regarding  food  additives  that 
may  be  found  to  cause  these  deleterious 
and  hazardous  effects  on  the  future  of 
mankind. 

Mr  President.  I  ask  unanimous  con- 
sent that  an  article  from  the  Medical 
Tribune  of  July  25.  1937  be  printed  at 
this  point  In  the  Ricokd. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record. 
as  follows : 

(Prom  the  Medical  Tribune.  July  26.  1973) 
Food  AoDrnvxa  Asx  Lxnkxd  to  Child 
BiHAVTOa  Probi^ms 
New    To«k— Behavioral    disturbances    in 
chUdren   are   probably   the   most    Important 
and  most  dramatic  of  aU  the  adverse  reac- 
tions attributable  to  food  additives,  a  team 
of  San  Francisco  Investigators  reported  here 
The  clinical  pattern  Is  chiefly  that  of  hy- 
perkinesia, which  Interferes  with  the  child  s 
attention  span  and  is  reflected  in  complete 
disruption  at  home  and  at  school    Dr    Ben 
Pelngold.  of  the  Kaiser  FoundaUon  Hospltal- 
Permanente  Medical  Group,  told  the  Section 
on  Allergy  at  the  American  Medical  AsaocU- 
Uon   Convention    Their   Impaired   attention 
span,  he  added,  leads  to  learning  difficulties 
despite  a  normal  or  high  I  Q. 

These  chUdren.  ne  said,  are  'baffling"  pe- 
diatricians. pedUtrlc  neurologlste.  psychia- 
trists, psychologists,  and  educators  in  the 
field  of  hyperkinesia  and  learning  difficulty 
Many  of  them,  he  noted,  are  being  treated 
with  either  methylphenldate  or  ampheta- 
mines. 

"In  our  experience."  Dr.  FpLngold  reported 
"we  have  successfully  treated  some  of  these 
ChUdren  with  the  sallcylate-free  diet  which 
eliminates  80  per  cent  of  the  food  additives 
Including   the   artificial  flavors  and   colors  " 

He  cited  the  case  of  a  seven -year -old  boy 
with  a  history  of  hyperkinesia  of  several 
ytmi%-  duration.  No  therapy  was  successful 
he  said,  untu  the  chUd  was  put  on  a  sallc- 
ylate-free diet.  After  a  few  weeks  the  child 
became  well  adjusted  both  at  home  and  at 
school 


Infractions  of  the  diet,  he  emphaslzwd 
led  almost  Immediately  to  a  recurrence  of 
the  hyperklneuc  behavior  patterns 

"In  view  of  our  ability  to  relate  this  be- 
havioral disturbance  In  children  to  food  ad- 
ditives by  •turning  on'  and  -turning  off'  these 
adverse  clinical  responses."  said  Dr.  Felngold 
"we  raise  the  following  question:  'la  It  pos- 
sible to  attribute  the  Increase  In  hyperki- 
nesia and  learning  difficulty  .  to  the 
increased  consumption  of  these  chemicals  in 
our  foodstuffs?'  " 

He  cited  a  California  study  estimating 
that  in  the  past  10  to  12  years  the  incidence 
of  hyperkinesia  and  learning  difficulties  rose 
from  2  per  cent  to  an  average  of  20  to  26 
per  cent  and.  in  some  cases.  40  per  cent  of 
the  entire  school  population  These  figures 
he  Mid.  have  no  relationship  to  socioeco- 
nomic background. 

fof  *th°f  T**  '"'■"'*'■  ""*'  *  K^^P^^  projected 
for  the  Uicrease  in  dollar  value  for  the 
production  of  artificial  flavors  and  of  soft 
drinks  paraUels  a  graph  for  the  Increased 
incidence  of  hyperkinesia  and  learning  dU- 
ncultles  among  schoolchUdren  In  the  United 
SUtes  for  the  past  10  years. 

He  described  an  average  child's  break- 
fast as  foUows:  A  cereal  "loaded  with  non- 
essential fiavors  and  colors  added  to  entice 
the  chUd.  A  beverage,  either  chocolate  or 
otner  drinks,  most  of  which  are  rich  with 
many  artificial  fiavors  and  colors.  Pancakes 
made  from  a  mix.  frozen  waffles  dyed  with 
tartrazlne.   or  frozen   French   toast. 

AT    SCHOOL    l€Oa«    or   SAMX 

"Then  the  conscientious  and  concerned 
mother"  gives  the  child  vitamins,  usually 
chewable.  which  are  also  loaded  with  addl- 

K.!!'  "^°  ""^  '***  Ironical  sltuaUon.  the 
ChUd  Is  given  a  dose  of  methylphenldate  or 
amphetamine  before  he  Is  off  to  school" 
At  school,  where  "the  same  ritual  Is  con- 
tinued at  lunch."  the  chUd  receives  hot  dogs 
luncheon  meats.  Ice  cream,  and  various  bev^ 
erages,  "is  It  any  wonder  that  our  children 
are  Jumping  and  falling  to  learn?"  he  asked 

He  acknowledged  that  elimination  of  only 
the  food  additives  Is  not  always  successful 
ta  some  cases.  especlaUy  when  an  allergic 
constitution  U  suggested,  he  said.  It  Is  nec- 
essary to  institute  a  dual  program:  (i)  con- 
trol of  the  aUergy  through  environmental 
control  and  food  restrictions  and  (2)  the  sal- 
lcylate-free diet 

He  emphasised  the  following  note-worthy 
features  of  the  clinical  pattern:  the  behav- 
toral  disturbance  occurs  almost  excluslvrtv 
to  boys,  usually  only  one  chUd  in  a  family 
la  affected:  most  of  the  children  but  not  all 
hAve  a  history  of  an  allergic  diathesis:  the 
children  usually  have  a  normal  or  hUh  IQ 
and  a  diet  diary  wUl  reveal  the  Ingeltlon  of 
rather  large  quantities  of  food  additives 

There  is  no  explanation,  said  Dr.  FeUigold 
for  the  observation  that  the  behavioral  dis- 
turbance occurs  mosUy  in  boys  and  usually 
m  only  one  child  In  a  family.  These  facts 
could  serve  as  a  clue,  he  remarked,  for  an 
^MrtMr     J*    L"^    *''•    differences    between 

Uon  and  those  who  do  not.  "At  present  how- 
ever we  really  do  not  know."  he  said 

Dr.  Felngold  raised  stUl  another  quesUon 
Do  the  additives  ingested  by  the  mother  dur- 
ing pregnancy  affect  the  unborn  child?"  He 
replied  to  thU  question  by  saying  that  like 
c^^.-  7°*^  •ddltlves  are  1^  molecula^ 
chemicals  which  can  cross  the  placental  bar- 
^!,„t  ,  ^*?  '  P»>a"n*<:ologlcal  and  develop- 
mental  infiuence  on  the  unborn  child  " 

It  is  therefore  conceivable,  he  jald.  "that 
the  increased  consumption  of  food  additives 
by  pregnant  women   is  an  Important  factor 

K.^l"^^^  untoward  reactions  in  the  fetus. 
which  later  in  life  are  manifested  as  hyper- 
klnesls  and  learning  difficulties  '• 

Coauthors  were  Drs.  Donald  P  German 
Alice  Friedman.  Richard  Braham.  and  Ella- 
mae  Simmons. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42721 


ExHiBrr  1 
Pood  Asorrirxs  Stttdixd 
Washington.  DC— A  Georgetown  Univer- 
sity study  In  coUaboraUon  with  the  National 
Institutes  of  Health  shows  that  some  chemi- 
cal compounds  used  to  preserve  beverages 
and  canned  and  frozen  foods  are  found  to 
bo  harmful  to  human  cells. 

The  laboratory  study  showed  that  some 
food  additives  most  commonly  used  to  pre- 
vent food  spoilage  caused  by  bacteria  and 
ofher  microbes  capable  of  producing  disease, 
act  Just  as  strongly  against  human  and  ani- 
mal cells  as  they  do  against  bacteria. 

In  tissue  culture  studies  the  additives  were 
shown  to  Inhibit  ceU  growth,  to  alter  the 
shape  of  certain  cells,  and  In  some  cases  to 
destroy  them.  The  chemicals  did  not  selec- 
tively act  only  against  the  bacteria  but  also 
were  antlcell  agents. 

"Further  study  Is  necessary,  "  said  Dr.  T. 
Sreevalsan.  associate  professor  of  microbiol- 
ogy at  Georgetown  University,  "but  present 
evidence  would  urge  caution  In  eating  large 
quantities  of  food  containing  such  additives 
There  may  be  a  mechanism  whereby  the 
stomach  tissue  In  a  whole  organism  is  able 
to  detoxify  the  compounds  In  humans  but 
even  in  that  case.  Ingesting  too  much  might 
overload  the  mechanism  and  still  pose  a 
danger. 

"Most  antibacterial  food  additives  are  fat- 
ty acids  that  have  not  exhibited  any  gross 
animal  or  human  toxicity  at  the  concentra- 
tions at  which   they  are  currently  used. 

"Since  these  compounds,  as  well  as  nitrite. 
Inhibit  all  human  cells  tested  In  this  study 
at  least  as  effectively  as  they  Inhibit  bacteria. 
the  large  consumption  of  food  containing 
such  compounds  may  potentially  interfere 
with  the  fxmctlon  of  some  human  cells." 

Similar  considerations,  he  added,  apply 
to  extensively  used  drugs  that  are  IlpophUlc 
(fatty)  acids  such  as  salicylates,  e.g..  aspirin 
He  noted  the  recent  studies  were  done  in 
tissue  cultures  and  did  not  Involve  whole 
tissues  or  animals. 

In  the  OU  study,  human  liver  and  Intes- 
tinal cells  as  well  as  chicken  embryo  cells 
were  grown  In  tissue  cultures  In  the  labora- 
tory. Pood  additives  (lipophilic  compounds 
and  nitrite)  were  added  to  the  cells.  The 
effects  of  the  compounds  on  the  cells  showed 
the  following  results: 

Certain  concentrations  of  these  compounds 
Inhibited  cell  growth  while  higher  concen- 
trations killed  them. 

Some  of  the  compounds  also  Induced  a 
Jagged  cell  shape  In  a  number  of  cell  lines 
Oolnvestlgators  with  Dr.  Sreevalsan  were 
Mr.  E.  Glnsburg  and  Mrs  D.  Salomon,  re- 
search assistants.  Department  of  Microbi- 
ology. GU  Schools  of  Medicine  and  Dentis- 
try: and  Dr.  E  Preese.  Laboratory  of  Molec- 
ular Biology,  National  Institute  of  Neuro- 
logical Diseases  and  Stroke.  National  Insti- 
tutes of  Health. 

The  research  was  reported  in  a  paper 
titled.  "Growth  Inhibition  and  Morphologi- 
cal Changes  Caused  by  Lipophilic  Acids  in 
Mammalian  Cells."  In  the  Proceedings  of 
the  National  Academy  of  Science,  Aug.  1973 
The  work  was  supported  by  a  contract 
from  the  National  Institute  of  Neurological 
Diseases  and  Stroke.  National  Institutes  of 
Health. 


By  Mr.  HART   (for  himself,  Mr. 

Macnuson,  Mr.  Chiles,  and  Mr. 

Eastland)  : 
S.  2846.  A  bill  to  protect  the  flow  of 
Interstate  commerce  from  unreasonable 
damage  to  en Wron mental  health  by  as- 
suring an  adequate  supply  of  chlorine 
and  other  chemicals  and  substances 
which  are  necessary  for  safe  drinking 
water  and  for  waste  water  treatment. 


Referred    to   the   Committee   on   Com- 
merce, by  unanimous  consent. 

Mr.  HART  Mr  President,  today  I  in- 
troduce the  Emergency  Chlorine  Alloca- 
tion Act  of  1973  along  with  the  Senator 
from  Washington  (Mr.  Magnuson),  the 
Senator  from  North  Carolina  (Mr. 
Ervin  » .  the  Senator  from  Florida  i  Mr. 
Chiles),  and  the  Senator  from  Missis- 
sippi (Mr.  Eastland  I. 

The  Safe  Drinking  Water  Act  of  1973. 
reported  from  the  Commerce  Committee 
and  passed  by  the  Senate  on  June  22  of 
this  year,  is  still  under  consideration  by 
the  House  Interstate  and  Foreign  Com- 
merce Committee.  While  the  purpose  of 
that  bill  is  to  establish  a  program  within 
the  Environmental  Protection  Agency  to 
regulate  drinking  water,  and  is  of  prime 
importance,  the  chlorine  shortage  being 
faced  by  many  municipalities  which 
treat  drinking  water  raises  the  possibil- 
ity of  health  hazard  of  mammoth  pro- 
portions. 

Chlorine  is  an  absolute  necessity  for 
water  supply  safety   and   water   waste 
treatment.    While    chlorine    for    pubhc 
health  sanitation  purposes  demands  only 
approximately  5  to  7  percent  of  the  chlo- 
rine market,  several  municipalities  have 
been   unable  to  obtain  chlorine  supply 
contracts  for  1974.  for  example  in  the 
States  of  Florida.  Colorado,  and  Califor- 
nia. Some  cities  have  already  been  re- 
quired to  pump  nontreated  sewage  into 
lakes  and  rivers  due  to  the  lack  of  chlo- 
rine  for    waste    water   treatment;    and 
other  cities  have  been  down  to  a  few 
hours  supply  of  chlorine  for  the  treat- 
ment of  drinking  water  or  waste  water, 
including  Detroit,  Denver,  and  New  York 
City.  Increasing  industrial  demands  for 
chlorine,  lack  of  expansion  of  production 
facilities,  and  the  high  energy  require- 
ments of  processing  chlorine  contribute 
to  the  chlorine  shortage.  The  shortage 
would  be  most  detrimental  to  our  cities. 
The  bill  we  introduce  tcxlay  requires 
the  Administrator  of  the  Environmental 
Protection  Agency,  in  consultation  with 
the  Secretary'  of  Commerce,  to  promul- 
gate regulations  establishing  a  manda- 
tory allocation  system  for  the  distribu- 
tion of  chlorine  used  in  the  treatment 
of  drinking  water  and  waste  water.  Dis- 
cretionary authority  to  allocate  other  es- 
sential chemicals  and  substances  neces- 
sary for  water  treatment  is  also  given  to 
the     Administrator.      The     allocations 
should  give  priority  dispersal  of  chlorine 
to  municipalities  and  water  treatment 
facilities.  If  voluntarj-  compliance  with 
the  regulations  under  this  act  cannot  be 
obtained,  the  Administrator  is  authorized 
to  issue  orders  to  force  compliance  Vio- 
lators of  the  regulations  or  of  compliance 
orders  would  be  subject  to  a  criminal 
penalty  of  up  to  $10,000  per  day  and  up 
to  1  year  imprisonment,  or  a  civil  penalty 
of  up  to  $5,000  per  day  of  violation. 

Government  persoonrf  and  chlorine 
producers  predict  that  the  chlorine 
shortage  will  be  at  its  worst  during  the 
summer  of  1974,  and  that  producUon 
should  increase  sufficiently  to  meet  de- 
mands thereafter;  therefore  the  emer- 
gency chlorine  allocation  authority 
granted  under  this  bill  will  terminate  on 
June  30,  1975.  To  avoid  risking  a  maJcH- 


health  hazard,  I  urge  my  colleagues  in 
the  Senate  to  join  me  in  supporting  the 
Emergency  Chlorine  Allocation  Act  of 
1973. 

Mr.  President,  the  nature  of  the  emer- 
gency requires  that  the  Congress  take 
swift  action.  If  we  do  not.  there  Is  a 
likely  possibility  that  municipalities  will 
have  insufBcient  chlorine  to  treat  drink- 
ing water  early  next  spring  Therefore, 
it  is  imperative  that  the  legisiauve  proc- 
ess move  quickly.  It  is  my  intention  to 
hold  hetirings  on  this  legislation  very 
early  in  the  next  session  of  Congress. 
Hopefully  the  committee  will  approve  the 
legislation  soon  thereafter.  The  Coigress 
has  demonstrated  that  it  can  act  quickly 
when  confronted  with  the  energy  emer- 
gency. Hopefully  the  Congress  will  move 
as  quickly  in  dealing  with  this  emer- 
gency. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  text  of  the  bill  be  included 
in  the  Record  at  this  point  and  that  the 
bill  be  referred  to  the  Committee  on 
Commerce. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 
S.  2846 

Be  it  enacted  hy  the  Senate  and  House  of 
Representatives  of  the  United  States  of 
America  in  Congress  assembled,  That  this 
Act  may  be  cited  a^s  the  "Emergency  Chlorine 
Allocation  Act  of   1973  ". 

riNDrNCS    AND    POLICT 

Sbc.  101.  (a)  The  Congress  finds  that 

( 1 )  there  Is  a  national  shortage  of  chlorine 
for  safe  drinking  water  And  waste  water 
treatment  purposes; 

(2)  this  shortage  has  resulted  In  an  un- 
certainty In  the  piocurement  of  chlorine  by 
municipalities  and  other  persons: 

(3)  many  municipalities  may  be  forced 
to  terminate  chlorlnatlon  due  to  this  short- 
age: and 

(4)  the  termination  of  such  chlorlnatlon 
presents  a  real  and  substantial  threat  to 
the  public  health. 

(b)  It  is  the  policy  of  the  Congress  to  re- 
quire priority  dispersal  of  chlorine  for  the 
treatment  of  safe  drinking  water  and  waste 
water  and  to  encourage  priority  dispersal 
of  other  chemicals  and  substances  neces- 
sary for  the  treatment  of  safe  drinking  water 
and  waste  water. 

DU'IN  I'riONB 

S»c.  102.  (a)  As  used  In  this  Act 

(1)  "Administrator"  means  the  Adminis- 
trator of  the  Environmental  Protection 
Agency. 

(2)  "Municipality""  means  a  city,  town 
borough,  county,  parish,  district,  or  other" 
public  body  created  by  or  pursuant  to  State 
law  and  having  Jurisdiction  over  the  supply 
of  water  to  the  public  or  to  an  Indtan  tribe 
or  an  authorized  Indian  tribe  organization. 

(3»  "Person"  includes  a  State  or  political 
subdivision  thereof,  munlclp&iltv.  corpora- 
tion, partnership,  association,  private  or  pub- 
lic  nonprofit   Institution,   or   an   Individual. 

(4)  "Chemicals"  and  "substances""  means 
activated  carbon,  lime,  ammonia,  soda  ash, 
or  any  other  chemical  or  subsUnee  used  In 
the  treatment  of  drinking  water  or  waste 
water. 

(5)  "Protect  the  public  health  and  en- 
vironment" means  to  protect  against  any 
unreasonable  threat  to  human  health  or  the 
environment  resulting  from  the  use  or 
distribution  of  chlorine,  chemicals,  or  sub- 
stances. 

(8)  ■•  Waste  water""  means  any  discharge 
from  municipal,  industrial  or  other  sources 
into  the  natural  waters  of  the  United  States. 


12722 


CONGRJESSIONAL  RECORD   -  SFN  ATE 


(7)  "State"  meaiu  &ny  8t«t«.  the  DUtrlct 
of  Columbia,  the  Commonwealth  oX  Puerto 
aico,  the  Virgin  Islands,  Ouam.  and  Amer- 
ican Samoa. 

AIXOCATION    or    CaiOBINX    AND    oTim 
CBKMICAL5     AND     S17S8TANCXS 

S«c.  103.  (a)  Within  30  days  after  the  date 
of  enactment  of  this  Act,  the  Administrator. 
In  consultation  with  the  Secretary  of  Com- 
merce, shall  promulgate  regulations  proTld- 
Ing  for  mandatory  allocation  of  chlorine  from 
the  processing  of  chlorine  to  Its  Hnal  uae  In 
amounts  specified  Ln  such  regulations  to  the 
extent  necessary  to  protect  the  public  health 
and  environment.  If  necessary,  the  Admin- 
istrator Is  authorized  to  promulgate  regula- 
tions providing  for  mandatory  allocation  of 
other  chemicals  and  substances  used  In  the 
treatment  of  drinking  water  or  waste  water 
The  Administrator  shall  promulgate  regula- 
ttona  for  the  allocation  of  other  chemicals 
and  substance*  only  after  he  Investigates  the 
situation  and  determines  that  such  chemi- 
cals or  substances  are  In  short  supply  and 
allocation  of  such  chemicals  or  substances 
Is  necessary  to  protect  the  public  health  and 
environment. 

(b)  Any  allocation  under  subsection  (a) 
shall  apply  to  all  chlorine,  chemicals  or  sub- 
stances proce^^ed  in  the  United  States  or  Im- 
ported Into  the  United  States  at  any  time. 

I  c)  Whenever  the  Administrator  finds  that 
any  person  does  not  comply  with  any  regu- 
lation or  priority  established  under  this  Act. 
he  Is  authorized  to  Issue  an  order  enforcing 
ccttnpUance.  Any  order  Issued  under  this  sub- 
section shall  be  Issued  only  after  notice  and 
opportunity  for  a  hearing  in  accordance  with 
section  554  of  title  5,  United  States  Code. 

AIXOCATION       PmOCXBtTRX       AKO      STANOAaoe 

8«c.  104.  (a)  The  regulations  and  alloca- 
tions under  section  108  shall  be  promulgated 
pur8\iant  to  section  553  of  TtUe  5,  United 
State*  code,  except  as  provided  In  section 
105. 

lb)  The  Administrator  is  authorized,  for 
the  purpose  of  carrying  out  this  Act.  to  hold 
hearings,  to  receive  evidence,  to  iKlmlnlster 
oaths  to  witnesses  appearing  before  him.  to 
gather  Information  from,  to  require  reports 
from,  and  to  Inspect  records^nd  physical  fa- 
culties during  reasonable  Uours  of  any  proc- 
eeeor,  distributor,  importer  repackager  or 
other  provider  of  chlorine,  or  other  chemical 
substance  which  may  be  allocated  under 
sectloa  103. 

(c)(1)  The  Administrator  Is  authorised 
to  Issue  regxilatlons.  pursuant  to  section 
103.  for  performance  under  existing  con- 
tracts for  the  processing,  distributing,  re- 
packaging or  providing  of  chlorine  or  other 
chemical  substance.  Such  regulations  shall 
be  designed  to  protect  the  public  health  and 
environment 

(3)  Allocations,  regulations,  or  perform- 
ances under  existing  contracts  under  sec- 
tion 103  shall  be  equitably  distributed  to  the 
extent  fKisalble  amou^  all  processors,  dis- 
tributors, repackagers,,  other  providers,  or 
Importers  of  chlorine  «r  other  rh«m)>-iti  or 
substance 

(d)  The  Administrator  shall  consult  with 
the  Office  of  Preparedness  of  the  Oeneral 
Services  Administration,  the  Department  of 
Commerce,  and  the  Department  of  Health. 
Education  and  Welfare  to  determine  the 
quantities  and  proper  allocation  of  chlorine 
or  chemicals  or  substances  under  section  103. 

IMMINKICT    HAZAkO 

Sec.  lOfi.  (a)  An  imminent  hazard  shall  be 
considered  to  exist  when  the  evidence  Is  suf- 
ficient to  show  that  shortages  of  chlorine, 
chemicals,  or  substances  for  treating  drink- 
ing water  or  waste  water  wlU  result  in  any 
unreasonable  threat  to  human  health  or  the 
enrlponment  prior  to  the  completion  of  an 
admrnistraUve  tytmi^ng  or  other  formal  pro- 
ceeding held  poraxiant  to  this  Act. 

( b)   If  the  Administrator  has  reason  to  be- 


December  20,  197S 


Ueve  that  an  imminent  hazard  exists  he  may 
petition  an  appropriate  district  coxirt  of  the 
United  States,  or  he  may  request  the  Attor- 
ney General  to  do  so,  to  im|vn«^i  allocations 
as  Is  authorized  under  section  103  of  this 
Act.  The  Administrator  shall  simultaneously, 
if  he  has  not  done  so.  propose  any  regvilatlon 
which  may  be  warranted  under  section  103 
or  104  of  this  Act. 

KX8PONSIBIUTT    rOI    SIXOCATIOM    PBOOaAM 

S«c.  106.  within  30  days  after  the  enact- 
ment of  thU  Act.  the  AdmlnUtrator,  in  con- 
sultaUon  with  the  Secretary  of  Commerce, 
shall  promiilgate  regulations  delineating 
which  functions  under  this  Act  shall  be  per- 
formed by  the  Environmental  Protection 
Agency,  the  Office  of  Preparedness  of  the 
Oeneral  Services  Administration,  the  De- 
partment of  Commerce,  or  the  Department 
of  Health.  Education  and  Welfare. 

Skc.  107.  The  Administrator  in  consulta- 
tion with  the  Secretary  of  Commerce,  shall 
prepare  and  submit  to  the  Congress,  within 
30  days  after  the  date  of  enactment  of  this 
Act,  a  report  reviewing  by  state  (1)  the 
number  of  drinking  water  and  waste  water 
treatment  facilities  with  projections  for  1974 
and  1976  on  the  minimum  amount  of  chlo- 
rine and  other  chemicals  and  rubstancee 
needed  by  type  of  use  to  preserve  the  public 
health  and  (2)  the  number  and  capacity 
of  ctUorlne  processors,  distributors,  import- 
ers, repackagers  and  other  providers. 

KNTOaCKMKXT 

CrUnlnal  Penalty 
SBC.  108.  (a)  Whoever  willfully  violates 
any  regulation  under  this  Act  or  willfully 
falls  to  comply  with  any  order  issued  pur- 
suant to  section  103(c)  shall  be  fined  not 
more  than  $10,000  for  each  day  of  violation 
or  failure  to  comply  or  imprisoned  for  not 
more  than  one  year,  or  both. 

ClvU  Penalties 

(b)(1)  Whoever  violates  any  regulation  or 
falls  to  comply  with  any  order  issued  pur- 
suant to  this  Act  shall  be  subject  to  a  cini 
penalty  of  not  more  than  $£.000  for  each 
day  of  violation  or  failure  to  comply. 

<a)  Whenever  the  Administrator  bellevee 
that  any  person  engages  in  or  has  reason  to 
believe  will  engage  in  any  act  which  the  Ad- 
ministrator believes  constitutes  a  violation 
of  any  order  or  regulation  issued  pursuant 
to  this  Act,  he  Is  authorized  to  petition  the 
United  States  district  court  having  juris- 
diction to  issue  an  injunction  or  temporary 
restraining  order  to  enforce  the  provision  of 
such  order  or  regtUatlon. 

(c)  The  district  courts  of  the  United 
Stales  shall  have  Jurisdiction  over  violations 
under  this  Act. 

cmzzN  civu,  AcnoNs 

Sec.  109(a)  Except  as  provided  in  subsec- 
tion (b)  of  this  section,  any  person  ma^com- 
mence  a  civil  action  for  Injunctive  rtllef  on 
his  own  behalf,  whenever  such  action  con- 
stitutes a  case  or  controversy — 

(1)  against  any  person  (including  the 
United  States  or  any  other  governmental  in- 
strumentality or  agency  to  the  extent  per- 
mitted by  the  eleventh  amendment  to  the 
Consututlon)  alleged  to  be  In  violation  of 
any  regulation  or  order  promulgated  under 
section  103  of  this  Act.  or 

(2i  against  the  Administrator  where  there 
is  alleged  a  failure  of  the  Administrator  to 
perform  any  act  or  duty  under  this  Act 
which  Is  not  discretionary  with  the  Admin- 
istrator. Any  action  brought  against  the  Ad- 
ministrator under  this  paragraph  shall  be 
brought  In  the  District  Court  of  the  District 
of  Columbia. 

The  district  courts  shall  have  Jurisdiction 
over  sulU  brought  under  thU  section,  with- 
out regard  to  the  amount  In  controversy  or 
the  citizenship  of  the  parties. 

(b)  No  civil  action  may  be  commenced 


(1)  under  subsection  (a)(1)  of  this  sec- 
tion— 

(A)  prior  to  16  days  after  the  plaintiff 
has  given  notice  of  the  violation  to  the  Ad- 
ministrator and  to  any  alleged  violator  of 
the  regulation  at  order,  or 

(B)  If  the  Administrator  or  Attorney  Gen- 
eral has  commenced  and  Is  diligently  pros- 
ecuting a  civil  action  in  a  court  of  the 
United  States  to  require  compliance  with  the 
regulation  or  order:  Provided.  That  any  per- 
son may  Intervene  as  a  matter  of  right  In 
any  such  actions: 

(3)  under  subsection  (a)  (3)  of  this  section 
prior  to  15  days  after  the  plaintiff  has  given 
notice  of  such  action  to  the  Administrator. 
Notice  under  this  subsection  shall  be  given  in 
such  manner  as  the  Administrator  shall  pre- 
scribe by  regulation. 

(c)  In  any  action  under  this  section,  the 
Administrator  or  the  Attorney  Oeneral,  If 
not  a  party,  may  Intervene  as  a  matter  of 
right. 

(d)  The  court.  In  Issuing  any  final  order 
In  any  action  brought  pursuant  to  subsection 
(a)  of  this  section,  may  award  costs  of  liti- 
gation (Including  reasonable  attorney  and 
expert  witness  fees)  to  any  party,  whenever 
the  court  determines  such  an  award  Is 
appropriate. 

(e)  Nothing  m  this  section  shall  restrict 
any  right  which  any  person  (or  class  of  per- 
sons) may  have  under  any  other  statute  or 
at  common  law  to  seek  enforcement  of  any 
regulation  or  order  or  to  seek  a.iy  other 
relief. 

(f)  When  any  actions  brought  under  this 
section  Involving  the  same  defendant  and 
the  same  Issues  of  violations  are  pending  in 
two  or  more  Jurisdictions,  such  pending  pro- 
ceedings, upon  application  of  the  defendant 
reasonably  made  to  the  court  of  one  such 
Jurisdiction,  may.  If  the  court  In  Its  discre- 
tion so  decides,  be  consolidated  for  trial  by 
order  of  such  court,  and  tried  In  (1)  any 
district  selected  by  the  defendant  where  one 
of  such  proceedings  is  pending;  or  (2)  a 
district  agreed  upon  by  stipulation  between 
the  parties  If  no  order  for  consolidation  Is 
so  made  within  a  reasonable  time,  the  de- 
fendant may  apply  to  the  court  of  one  such 
Jurisdiction,  and  such  court  (after  giving 
all  parties  reasonable  notice  and  opportunity 
to  be  heard )  may  by  order,  unless  good  cause 
to  the  contrary  is  shown,  specify  a  district 
of  reasonable  proximity  to  the  applicants 
principal  place  of  business.  In  which  all  such 
pending  proceedings  shall  be  consolidated 
for  trUl  and  tried.  Such  order  of  consolida- 
tion shall  not  apply  so  as  to  require  the  re- 
moval of  any  case  the  date  for  trial  of  which 
has  been  fixed.  The  court  granting  such 
order  shall  give  prompt  notification  thereof 
to  the  other  courts  having  Jurisdiction  of 
the  cases  covered  thereby. 

Ssc  110  (a)  Except  as  speclflcaUy  provided 
In  this  section,  no  provision  of  this  Act  shall 
be  deemed  to  convey  to  any  person  subject  to 
this  Act  any  Immunity  from  clvU  or  criminal 
liability,  or  to  create  defenses  to  actions, 
under  the  antitrust  laws, 

(b)  As  used  In  this  section,  the  term  "anti- 
trust laws"  means — 

(1)  the  Act  entitled  "An  Act  to  protect 
trade  and  commerce  against  unlawful  re- 
straints and  mtxiopolies  ■.  approved  July  2 
1890  (15  UBC.  1  et  seq),  as  amended: 

(3)  the  Act  entitled  "An  Act  to  supplement 
existing  laws  against  unlawful  restraints  and 
monopolies,  and  for  other  purposes"  ap- 
proved October  15.  1914  (18U5C.  laetseq.). 
as  amended: 

(3)  the  Federal  Trade  C^ommlsslon  Act  (15 
UB.C.  41  et  seq.).  as  amended: 

(4)  sections  73  and  74  of  the  Act  entlUed 
"An  Act  to  reduce  taxation,  to  provide  reve- 
nue for  the  Government,  and  for  other  pur- 
poses", approved  August  27,  1894  (16  U-S.C. 
8  and  9) .  as  amended;  and 

(6)  the  Act  of  June  19,  193fl.  chapter  593 
(16  XJS.C.  13,   13a,   13b.  and  31a). 


December  20,  1973 


%     CONGRESSIONAL  RECORD  —  SEN  ATE 


42723 


(c)(1)  To  achVeve  the  purposes  of  tills 
Act.  the  Adminlstrtitor  aliuil  establish  such 
advisory  committees  as  he  determines  are 
necessary.  Any  such  advisory  committees 
shall  bs  subject  to  the  provisions  of  the  Fed- 
eral Advisory  Committee  Act  at  1973  (6  UjB.C. 
App.  I) ,  whether  or  not  such  Act  or  any  of  its 
provisions  expires  or  terminates  during  the 
term  of  this  Act  or  of  such  committees,  and 
In  all  cases  shall  be  chaired  by  the  Adminis- 
trator. The  meetings  of  such  committees 
shall  be  open  to  the  public. 

(3)  Any  such  committee  shall  consist  of 
members,  appointed  by  the  Administrator, 
who  shall  represent  the  following  Interests: 
the  chlorine  or  other  chemicals  and  sub- 
stances Industry,  including  but  not  limited 
to  processors,  distributors,  Importers,  repack- 
agers  and  other  providers. 

The  Attoruey  Oeneral  and  the  Federal 
Trade  Commission  shall  have  adequate  ad- 
vance notice  of  any  meeting  of  such  com- 
mittees and  may  have  an  official  representa- 
tive attend  and  participate  m  any  such 
meeting. 

(8)  A  full  and  complete  verbatim  tran- 
script shall  be  kept  of  all  advisory  committee 
meetings,  and  shall  be  taken  and  deposited, 
together  with  any  agreement  reeultLog  there- 
from, with  the  Attorney  Oeneral  and  the  Fed- 
eral Trade  Commission.  Such  transcript  and 
agreement  shall  be  made  available  for  public 
inspection  and  copying,  subject  to  the  pro- 
visions of  sections  652  (b)  (1)  and  (b)  (3)  of 
title  5,  United  States  Code. 

(d)  Within  30  days  after  the  date  of  enact- 
ment of  this  Act,  the  Administrator,  subject 
to  the  approval  of  the  Attorney  Oeneral  and 
the  Federal  Trade  Commission,  shall  promul- 
gate, by  rule,  standards  and  procedures  by 
which  persons  engaged  In  the  business  of 
processing,  distributing.  Importing  or  repack- 
aging of  chlorine  or  other  chemical  or  sub- 
stance allocated  under  section  103  may  de- 
velop and  Implement  voluntary  agreements 
and  plans  of  action  to  carry  out  such  agree- 
ments which  the  Administrator  determines 
are  necessary  to  accomplish  the  objectives. 

(e)  The  standards  and  procedures  under 
subsection  (d)  shall  be  promulgated  pur- 
suant to  section  553  of  Title  5.  United  States 
Code.  They  shall  provide,  among  other  things, 
that — 

(1)  Such  agreements  and  plans  of  action 
shall  be  developed  by  meetings  of  conunlt- 
tees,  councils,  or  other  groups  which  In- 
clude representatives  of  the  public,  of  Inter- 
ested segments  of  the  petroleum  Industry 
and  of  Industrial,  municipal  and  private 
consumers,  and  shall  in  all  cases  be  chaired 
by  a  regular   fulltlme  Federal   employee: 

(2)  Meetings  held  to  develop  a  voluntary 
agreement  or  a  plan  of  action  under  this 
subsection  shall  permit  attendance  by  Inter- 
ested persons  and  shall  be  preceded  by  timely 
and  adequate  notice  with  Identification  of 
the  agenda  of  such  meeting  to  the  Attorney 
General,  the  Federal  Trade  Commission  and 
to  the  public  in  the  affected  community: 

(3)  Interested  persons  shall  be  afforded  an 
opi>ortunlty  to  present,  In  writing  and  oral- 
ly, data,  rtews  and  arguments  at  such  meet- 
ings; 

(4)  A  full  and  complete  verbatim  tran- 
script shall  be  kept  of  any  meeting,  confer- 
ence or  communication  held  to  develop.  Im- 
plement or  carry  out  a  voluntary  agreement 
or  a  plan  of  action  under  this  subsection  and 
shall  be  taken  and  deposited,  together  with 
any  agreement  resulting  therefrom,  with  the 
Attorney  Oeneral  and  the  Federal  Trade 
Commission.  Such  transcript  and  agreement 
shall  be  avsdlable  for  public  insF>ectlon  and 
copying,  subject  to  provisions  of  section  552 
(b)(1)  and  (b)(3)  of  Title  5,  United  States 
Code. 

(f)  The  Federal  Trade  Commission  may 
exempt  types  or  classes  of  meetings,  confer- 
ences or  communications  from  the  require- 
ments of  subsection  (c)(3)  and  (e)(4)  pro- 
vided such   meetings,  conferences,  or  com- 


munications are  ministerial  In  naiui-f^  and 
are  for  the  sol©  purpose  of  Implemer-ting  or 
carrying  out  a  voluntary  agreement  or  plan 
of  action  authorized  pursxiant  to  this  sec- 
Oon.  Such  ministerial  meeting,  conference 
or  communication  may  take  place  In  accord- 
ance with  such  reqtUrements  as  the  Federal 
Trade  Commission  may  prescribe  by  rule. 
Such  persons  participating  In  such  meeting, 
conference  or  communication  shall  cause  a 
record  to  be  made  specifying  the  date  such 
meeting,  conference,  or  communication  took 
place  and  the  ^ivnoaa  involved,  and  sum- 
marizing the  subject  matter  discussed.  Such 
record  shall  be  filed  with  the  Federal  Trade 
Commission  and  the  Attorney  General,  where 
It  shall  be  made  available  for  public  Inspec- 
tion and  copying. 

(g)(1)  The  Attorney  Oeneral  and  the 
Federal  Trade  Commission  shall  participate 
from  the  beginning  In  the  development,  im- 
plementation and  carrying  out  of  voluntary 
agreements  and  plans  of  action  authorized 
under  this  section.  Each  may  propose  any 
alternative  which  would  avoid  or  overcome, 
to  the  greatest  extent  practicable,  possible 
anticompetitive  effects  whUe  achieving  sub- 
sttmtlally  the  purposes  of  this  Act.  Each 
shall  have  the  right  to  review,  amend, 
modify,  disapprove,  or  prospectively  revoke, 
on  its  own  motion  or  upon  the  request  of 
any  Interested  person,  any  plan  of  action  or 
voluntary  agreement  at  any  time,  11  revoked, 
thereby  withdraw  prospectively  the  immunity 
conferred  by  subsection   (i)    of  this  section. 

(2)  Any  voluntary  agreement  or  plan  of 
action  entered  Into  pursuant  to  this  section 
shall  be  submitted  In  writing  to  the  Attorney 
Oeneral  and  the  Federal  Trade  Commission 
20  days  before  being  Implemented,  where  It 
shall  be  made  available  for  public  Inspection 
and  copying. 

(h)(1)  The  Attorney  General  and  the  Fed- 
eral Ttade  Commission  shall .  monitor  the 
development.  Implementation  and  carrying 
out  of  plans  of  action  and  voluntary  agree- 
ments authorized  under  this  section  to 
assure  the  protection  and  fostering  of  com- 
petition and  the  prevention  of  anticom- 
petitive practices  and  effects, 

(2)  The  Attorney  Oeneral  and  the  Federal 
Trade  Commission  shall  promulgate  Joint 
regulations  concerning  the  maintenance  of 
necessary  and  appropriate  documents,  min- 
utes, transcripts  and  other  records  related  to 
the  development,  implementation  or  carry- 
ing out  of  plans  of  action  or  voluntary  agree- 
ments authorized  pursuant  to  this  Act. 

(3)  Persons  developing,  implementing  or 
carrying  out  plans  of  action  or  voluntary 
agreements  authorized  pursuant  to  this  Act 
shall  maintain  those  records  required  by  such 
Jomt  regulations  The  Attorney  Oeneral  and 
the  Federal  Trade  Commission  shall  have 
access  to  and  the  right  to  copy  such  records 
at  reasonable  times  and  u|>on  reasonable 
notice. 

(4)  The  Federal  Trade  Commission  and 
the  Attorney  Oeneral  may  each  prescribe 
such  rules  and  regvilatlons  as  may  be  neces- 
sary or  appropriate  to  carry  out  their  re^>on- 
sibllltles  under  this  Act.  They  may  both 
utilize  for  such  purposes  and  for  purposes  of 
enforcement,  any  and  ail  pwwers  conferred 
upon  the  Federal  Trade  Commission  or  the 
Department  of  Justice,  or  both,  by  any  other 
provision  of  law,  Including  the  antitrust 
laws;  and  wherever  such  provision  of  law 
refers  to  "the  purposes  of  this  Act"  or  like 
terms,  the  reference  shall  be  understood  to 
be  this  Act 

(1)  There  shall  be  available  as  a  deferise 
to  any  civil  or  criminal  action  brought  under 
the  antitrust  laws  In  respect  of  actions  taken 
In  good  faith  to  develop  and  implement  a 
voluntary  agreement  or  plan  of  action  to 
carry  out  a  voluntary  agreement  by  persons 
engaged  in  the  bvisiness  of  processing;  dis- 
tributing. Importing  or  repackaging  of 
chlorine  or  other  chemical  or  substance  allo- 
cated under  section  103  that — 


( 1 )  Such  action 

(A)  authorized  and  approved  pursuant  to 
this  section,  and 

(B)  undertaken  and  carried  out  solely  to 
achieve  the  ptirpoees  of  this  section  and  in 
compliance  with  the  terms  and  conditions 
of  this  section,  and  the  rules  promulgated 
hereunder;  and 

(2)  Such  persons  fully  complied  with  the 
requirements  of  this  section  and  the  rules 
and  regulations  promulgated  hereunder. 

(J)  No  pro\-lsion  of  this  .^ct  shall  be  con- 
strued as  granting  Immunity  for,  nor  as 
limiting  or  in  any  way  affecting  any  remedy 
or  penalty  which  may  result  from  any  lepa! 
action  or  proceeding  arising  from,  any  aicts 
or  practices  which  occurred;  (1)  prior  to 
the  enactment  of  this  Act,  (2)  outside  the 
sco|>e  and  purpose  or  not  in  compliance  with 
the  terms  and  conditions  of  this  Act  and 
this  section,  or  (3)  subsequent  to  Its  ex- 
piration or  repeal. 

(k)  The  provisions  of  section  708  of  the 
Defense  Production  Act  of  1950,  as  amended, 
shall  not  apply  to  any  action  authorized  to 
be  taken  under  this  Act. 

(1)  The  Attorney  General  and  the  Fed- 
eral Trade  Commission  shall  each  submit 
to  the  Congress  and  to  the  President,  at  least 
once  every  six  months,  a  rep)ort  on  the  tm- 
I>act  on  competition  and  on  small  business 
of  actions  authorized  by  this  section. 

TZRMTN&TIOM    DATS 

SBC.  111.  The  provisions  of  this  Act  shall 
terminate  on  June  30,  1976. 

APPBOPRIATTONS 

Sbc.  112  There  are  authoriaed  to  be  vp- 
proprlated  such  funds  as  are  necessary  to 
carry  out  the  provisions  of  this  Act. 


ADDITIONAL  COSPONSORS  OF 
Sn.Tfi 

s. isse 

At  the  request  of  Mr.  Wiujams,  the 
Senator  from  Ohio  '  Mr.  TArr)  was  added 
as  a  (josponsor  of  S.  1326.  the  Hemo- 
philia Act  of  1973. 

S.  I486 

As  the  request  of  Mr.  Inocye,  the 
Senator  from  Kansas  (Mr.  Pearson>  was 
added  as  a  cosponsor  of  S.  1486,  to  au- 
thorize the  Secretarj-  of  Commerce  to 
engage  in  certain  export  expansion  ac- 
tivities, and  for  relate(d  purposes. 

S.  2690 

At  the  request  of  Mr  Muskie.  the 
Senators  from  Utah  (Mr  Moss-.  North 
Dakota  (Mr.  Young).  Conriecucut  'Mr. 
RiBicorrj.  Florida  'Mr  Chiles '.  South 
Dakota  'Mr.  AbourezK'.  Massaci;usetts 
-Mr  Brooke  ' ,  South  Carolina  ■  Mr  Hol- 
LiNGS'.  Mi.'^souri  iMr  Eagleton  .  Michi- 
gan I  Mr.  Hart>.  nimois  Mr  Steven- 
son), Rhode  Island  Mr  Pell-  Minne- 
sota (Mr.  HtJMPHRKYi,  Wyoming  Mr. 
McGee),  Vermont  Mr  St^jtord', 
Massachusetts  <Mr.  Ken.nedy  ' .  New  Jer- 
sey (Mr.  WILLIAMS'  West  Virgiiua  Mr. 
Randolph*.  South  Dakota  iMr  Mc- 
GovERNi,  Minnesota  'Mr  Mont)ai.e', 
Neva(ja  'Mr  Bible',  and  New  .Mexico 
'Mr.  DoMEMci '  were  added  as  ca^pon- 
sors  to  S  2690.  to  amend  title  X\'in  of 
the  Social  Security  Act  tc^  liberalize  the 
conditions  under  which  !X)sthospital 
home  health  services  may  be  provided 
under  part  A  thereof,  and  home  health 
ser\-lces  may  be  provided  under  part  B 
thereof. 

s    t«ei 

At  the  request  of  Mr.  Chuhch,  the  Sen- 
ators from  Maine  (Mr.  Muskie  i,  Utah 


ll'TJl 


CONGRESSIONAL  RECORD  — SENATE 


(Mr.  Moss) .  North  Dakota  (Mr.  Young i . 
Connecticut  (Mr.  RiBicorr>.  Florida 
(Mr.  Chiles)  ,  South  Dakota  'Mr.  Abouh- 
«ZK).  Massachusetts  (Mr.  Brook*  >. 
South  Carolina  (Mr.  Holuncs),  Mis- 
souri (Mr.  Eacleton).  Michigan  (Mr. 
Hakt),  Illinois  iMr.  Stevenson  i.  Rhode 
Island  (Mr.  Pell>,  Minnesota  (Mr. 
HtJMPHSEY).  Wyoming  (Mr.  McObk). 
Vermont  (Mr.  STArroRoi,  Massachusetts 
(Mr.  Kennedy),  New  Jersey  iMr.  Wil- 
liams >,  West  Virginia  <Mr.  Randolph) 
South  Dakota  (Mr.  McOovern^,  Minne- 
sota (Mr.  Mondauj),  and  Nevada  (Mr. 
Bible  '  were  added  as  cosponsors  to  S. 
2695.  to  amend  the  Public  Health  Service 
Act  to  provide  for  the  making  of  grants 
to  assist  in  the  esUblishment  and  Initial 
operation  of  agencies  which  will  provide 
home  health  services. 

8.    2747 

At  the  request  of  Mr.  Williams,  the 
Senator  from  Massachusetts  (Mr.  Ken- 
nedy) was  added  as  a  cosponsor  of  S. 
2747.  to  amend  the  Pair  Labor  Stand- 
ards Act.  providing  for  an  increase  in 
minimum  wage  rates. 

S.     2789 

At  the  request  of  Mr.  Inouye,  the  Sen- 
ator from  Montana  ( Mr.  Mansfield  ) ,  the 
Senator  from  New  Jersey  (Mr.  Case). 
and  the  Senator  from  New  Mexico  (Mr' 
Montoyai  were  added  as  cosponsors  of 
S.  2789.  the  Vietnam  veterans  QI  bill. 


NOTICE  OP  CATTLE  FEEDING 
HEARINGS 

Mr.  CLARK  Mr.  President."  last  week 
I  met  with  a  delegation  of  cattle  feeders 
from  Sioux  County.  Iowa.  They  had  come 
here  to  tell  a  story  that  needs  telling, 
and  when  they  had  flnished,  it  was  clear 
that  those  who  minimize  the  possibility 
of  more — and  worse — fluctuations  in 
meat  prices  are  living  In  a  world  of 
fiction. 

A  survey  last  Augiist  indicated  that 
there  had  been  an  80  percent  increase  in 
net  worth  of  cattle  feedlot  operations 
since  the  beginning  of  the  year  in  west- 
em  Iowa.  Two  months  later,  a  similar 
survey  of  the  same  operations  showed 
a  120  percent  decline  from  the  August 
level.  In  other  words,  2  bad  months  have 
completely  wiped  out  the  gains  of  9 
months  Cattle  feeders  have  suffered  a 
40  percent  decline  in  prices  over  the 
last  90  days  while  watching  retail  beef 
prices  drop  Just  3  5  percent.  The  .situa- 
tion has  become  desperate— with  cattle 
feeders  losing  an  average  of  $100  to  $200 
a  head  Glenn  Gregg  of  Haywarden. 
Iowa,  perhaps  summed  it  up  best  when 
he  said 

Were  made  four  to  fl»e  trlpa  back  to 
WaahlngtoD  to  defend  the  pnc«  of  beef  Now 
were   here   to   defend   our   very   occupation. 

This  situation  not  only  has  caused 
great  economic  hardship  for  cattle  feed- 
ers, but  it  will  soon  affect  consumers 
as  well  In  Iowa  alone,  the  replacement 
of  cattle  is  down  20  to  30  percent,  which 
virtually  Insures  shortages  of  meat  in 
the  future  and  an  accompanying  Jump 
In  prices  for  the  first  and  second  quarters 
of  the  coming  year  Unfortunately,  the 
waves  of  price  increases  and  decreases 
always  seem  to  get  bigger  and  bigger. 


The  uncertainty  caused  by  the  beef 
freeze  earlier  this  year— combined  with 
the  prices  of  com  rising  steadily  into  the 
future,  particularly  because  of  the  fer- 
tilizer shortage — has  caused  feeders 
Justifiable  concern.  And  it  Is  very  pos- 
sible that  many  of  them  will  turn  to 
grain  farming,  where  the  future  seems 
more  certain,  or  simply  get  out  of  the 
cattle  business. 

That  is  why  the  Sioux  County  delega- 
tion came  to  Washington  last  week.  They 
met  with  the  Iowa  delegation  and  the 
Midwest  Democratic  senatorial  caucus. 
They  talked  to  representatives  of  USDA. 
the  Cost  of  Living  Council,  representa- 
tives of  the  large  chain  grocery  stores, 
and  consumer  groups  in  an  effort  to  teli 
their  side  of  the  story.  And  they  make  a 
compelling  case  for  the  need  for  strong, 
affirmative  leadership  to  deal  with  this 

desperate  situation  before  it  gets  worse 

for  feeders,  bankers,  consumers,  and 
every  other  sector  of  our  inflationary 
economy. 

But  before  any  solutions  can  be  found, 
it  Is  essential  to  locate  the  causes  of  the 
problem.  The  chairman  of  the  Agricul- 
ture Committee  <Mr.  Talmadcei  has 
agreed  to  a  2-day  schedule  of  hearings 
in  January  by  the  Subcommittee  on 
Agricultural  Production,  Marketing,  and 
Stabilization  of  Prices  which  will  attempt 
to  find  those  causes.  The  hearings  wUl 
include  testimony  from  every  sector  of 
the  meat  production  cycle — ranging  from 
the  cattle  feeder,  to  the  order  buyers,  the 
packers,  the  retailers,  and  consumers.  In 
addition  to  the  Iowa  congressional  dele- 
gation, other  members  of  the  Senate 
Agriculture  Committee  and  other  inter- 
ested Members  of  Congress  have  been  in- 
vited and  are  expected  to  attend.  The 
first  day  of  hearings  will  take  place  on 
Wednesday,  January  16  in  Sioux  Center, 
Iowa,  and  it  will  be  followed  the  next 
day  in  MaquokeU.  The  hearings  are  ten- 
tatively scheduled  to  run  from  9  ajn.  to 
3  p.m.  Hopefully,  the  information  pre- 
sented at  these  hearings  will  provide  the 
basis  for  poslUve.  long-range  solutions  to 
this  urgent  problem. 


December  20,  1973 


NOTICE    OP    HEARINGS    ON    BIG 
THICKET  NATIONAL  PRESERVE 
Mr.  BIBLE.  Mr.  President.  I  wish  to 
announce   for   the   information   of    the 
Senate  and  the  public  that  the  Parks  and 
Recreation  Subcommittee  of  the  Senate 
Intertor  and  Insular  Affairs  Committee 
will  hold  public  hearings  on  February  5 
and  6.   1974.  at   10  am    in  room  3110 
Dlrksen   Senate   Office   Building,   on   s! 
11546.  a  bill  to  authorize  the  establish- 
ment of  the  Big  Thicket  National  Pre- 
serve in  the  state  of  Texas,  and  for  other 
purposes;  on  Februar>-  7,  the  Parks  and 
Recreation  Subcommittee  will   hold  an 
open  public  hearing  on  8.  2844.  a  bill 
which  I  have  introduced  today,  to  amend 
the  Land  and  Water  Conservation  Fund 
Act.  as  amended,  to  provide  for  collection 
of  special  recreation  use  fees  at  addi- 
tional campgrounds,  and  for  other  pur- 
poses, in  room  3110.  Dirksen  Senate  Of- 
fice BuUdlng.  at   10  a.m.  Anyone  who 
wishes  to  testify  at  these  hearings  should 
notify  the  staff  of  the  Senate  Interior  and 
Insular  Affairs  Committee. 


NOTICE  OP  HEARINGfi  ON  CON- 
GRESS AND  MASS  COMMUNICA- 
TIONS 

Mr.  METCALF.  Mr.  President,  the 
Joint  Committee  on  Congressional  Oper- 
ations, which  I  chair  in  this  Congress 
will  open  public  hearings  on  February  20 
1974.  on  the  general  subject  of  Congress 
and  mass  communications. 

During  these  hearings  we  will  examine 
the  growing  imbalance  between  the  capa- 
bilities of  the  Congress  and  the  Executive 
to  reach  the  American  people  through 
the  mass  communications  media.  We  will 
invite  opinions  from  many  sources  on 
how  Congress,  as  an  Institution,  can  more 
effectively  communicate  the  meaning  of 
its  constitutional  role  and  dally  activi- 
ties. 

Among  others  one  question  that  will 
be  asked  \s  the  advisabUity  of  opening 
Senate  and  House  Chambers  to  coverage 
by  the  broadcast  media.  We  expect  to 
receive  testimony  from  witnesses  from 
State  legislatures  which  have  established 
procedures  for  coverage  by  television 
and  radio,  as  weU  as  from  the  United 
Nations  and  other  naUons  which  have 
opened  their  national  legislatures  or 
parliaments  to  broadcast  coverage  We 
also  hope,  of  course,  that  Senators  and 
House  Members  who  have  been  interest- 
ed in  this  subject  will  be  willing  to  give 
us  the  benefit  of  their  advice  and  judg- 
ments. 

Additionally,  these  Joint  committee 
hearings  will  examine  such  questlcms  as 
the  opportuniUes  for  congressional 
spokesmen  to  present  their  views  directly 
to  the  people  on  network  television  and 
radio,  the  facilities  and  staff  Congress 
may  require  for  working  with  the  news 
media,  and  the  kind  of  informaUonal 
services  avaUable  to  assist  citizens  In 
understanding  the  role  of  Congress  In 
our  governmental  system. 

The  Importance  of  these  and  related 
questions  was  pointed  up  in  results  of 
the  survey  reported  recently  by  the  Sub- 
committee on  Intergovernmental  Rela- 
tions of  the  Committee  on  Government 
Operations:  First,  the  survey  found  that 
many  Americans  do  not  clearly  under- 
stand the  operations  of  their  Federal 
Government  and  that  this  lack  of  under- 
standing is  a  contributing  factor  In 
their  growing  loss  of  confidence  In 
government  and  public  officials.  Second 
the  survey  results  indicated  a  definite 
Interest  among  citizens  In  learning 
more  about  their  government. 

And  perhaps  most  significantly.  In  the 
context  of  our  forthcoming  hearings 
the  survey  report  concluded  that  "Pub- 
lic officials  are  trying  hard  to  reach  their 
constituents— through  personal  con- 
tacts, open  office  doors,  speeches  and 
newsletters  But  it  is  evident  that  these 
channels  have  not  been  adequate  and 
likely  that  other  avenues  remain  to  be 
explored  ■' 

The  purpose  of  the  Joint  Committee's 
hearings  In  February  Ls  to  explore  some 
of  these  other  avenues.  The  hearings 
will  be  structured  to  develop  informa- 
tion for  Members  of  Congress  to  con- 
sider, not  to  build  a  case  for  a  particu- 
lar point  of  view  or  a  specific  course  of 
action. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42725 


It  is  also  clear  that  there  are  no  easy 
or  self-evident  answers.  But  we  hope  to 
bring  together,  for  the  first  time,  the 
broad  range  of  questions  that  should  be 
asked  in  considering  ways  to  improve 
the  capability  of  Congress  to  reach  the 
American  people  with  its  views  and 
decisions. 

Early  in  the  next  session,  I  wUl  an- 
nounce additional  details  of  these  hear- 
ings. Meantime,  those  Senators  and 
their  staffs  who  wish  to  discuss  their 
scope  and  purpose  further  may  wish  to 
call  John  G.  Stewart,  extension  8267. 


roads  suddenly  assume  vital  dimensions  In 
the  energy  crisis.  We  dare  not  lose  them 
and  the  sooner  the  new  "salvage  corpora- 
tion" can  atart,  the  better. 


ADDITIONAL  STATEMENTS 


THE  PLIGHT  OF  THE  NATION'S 
RAILROADS 

Mr.  HUGH  SCOTT.  Mr.  President,  we 
need  our  railroads — a  point  that  no  one 
can  dispute,  especially  during  this  period 
of  severe  energy  .shortages.  The  Con- 
gress has  acted  wi.sely  to  save  seven 
Northeast  railroad.'^  which  are  in  deep 
trouble.  The  rail  reorganization  bill,  I 
believe,  has  been  drawn  with  judgment 
and  prudence,  weighing  the  hea\'y  cost 
of  abandoning  our  railroads  against  the 
great  gain  that  would  result  by  con- 
structive measures  to  aid  them. 

An  editorial  in  the  Pittsburgh  Post- 
Gazette  on  December  15  eloquently  de- 
scribed the  plight  of  the  railroads.  I  ask 
imanimous  consent  that  this  editorial  be 
printed  In  the  Record. 

There  being  no  objection,  the  editorial 
was  ordered  to  be  printed  In  the  Record, 
as  follows : 

SaLVACINC    NOBTHKAST  RAIUtOAOS 

Ckjngress  rightly  has  acted  to  salvage  seven 
falling  railroads  Ixi  the  Northeast.  The  Sen- 
ate overwhelmingly  passed  a  bill  to  estab- 
lish a  private.  proflt-makl:;g  corporation  to 
run  a  restructured  raU  network  made  up  of 
parts  of  seven  railroads — the  Penn  Central, 
Reading.  EIrle  Lackawanna.  Lehigh  Valley, 
Central  of  New  Jersey.  Boeton  and  Maine, 
and  Ann  Arbor. 

The  measure  now  goes  to  conference  with 
the  House,  which  has  approved  similar  leg- 
islation. However.  It  faces  a  possible  veto 
from  President  Nixon,  concerned  about  the 
costs  of  provisions  for  Indemnifying  workers 
whose  Jobs  may  be  lost. 

But,  one  way  or  another,  a  solution  Is  Im- 
perative. The  current  energy  crisis  and  the 
problems  with  truckers  point  that  up  vividly. 

Surprisingly,  there  is  a  strong  environ- 
mental argument  for  saving  the  railroads. 
Tills  was  convincingly  laid  out  In  a  Harper's 
magaelne  article.  'Trains  Into  Flowers."  by 
Barry  Commoner,  a  leading  spokesman  for 
ecological  causes.  To  be  sure.  Mr  Commoner's 
thesis  Is  the  eventually  there  will  be  no 
alternative  to  nationalizing  the  railroads.  Re- 
gardless of  one's  reaction  to  that  particular 
recommendation,  Mr  Commoner's  article 
makes  several  convincing  points 

Can  we  afford  the  ecological  cost  of  aban- 
doning ovir  railroads?  he  asks  Per  ton  of 
freight  carried,  trucks  use  four  to  six  times 
as  much  fuel  as  the  railroads,  and  produce 
about  that  much  air  pollution."  he   writes. 

Furthermore,  railroads  could  handle  two 
to  three  times  the  present  freight  traffic 
without  clogging  up  Most  truck-bearing 
highways  now  operate  close  to  capacity, 
which  means  thst  if  the  railniads  arent 
salvaged  wd  hav^^  \n  twWA  more  highways 
to  handle  ih»  ex'ra  tTucks  PYom  an  ecolog- 
ical viewpoint  alone  M."-  Commoner  writes, 
that  would  have  dan^aging  effects. 

Like  old-fashioned  coal,     outmoded'    rall- 


NATIONAL  OCEAN  POLICY  STUDY 
RESOLUTION— SENATE  RESOLU- 
TION 222 

Mr.  PASTORE.  Mr.  President.  I  am 
delighted  to  cosponsor  Senate  Resolu- 
tion 222  to  authorize  a  national  ocean 
policy  study.  My  Interest  in  the  develop- 
ment by  the  United  States  of  a  compre- 
hensive national  oceans  policy  is  para- 
mount because  my  owti  State  of  Rhode 
Island  is  knowTi  as  the  Ocean  State.  Al- 
though my  State  is  only  about  48  miles 
by  37  miles,  Rhode  Island  has  nearly  400 
miles  of  coastline. 

Rhode  Island  is  dependent  upon  the 
sea  as  few  other  States  are.  The  sea, 
in  one  way  or  another,  touches  the  life 
of  every  Rhode  Islander.  In  Rhode  Is- 
land, where  we  are  not  blessed  with  agri- 
cultural resources  or  with  natural  re- 
sources in  our  earth,  the  sea.  its  fishes 
and  its  minerals  constitute  our  only  nat- 
ural resources.  If  we  as  a  nation  cannot 
learn  to  use  the  oceans  in  a  rational 
manner.  If  we  cannot  prevent  the 
despoliation  of  our  dwindling  fisher>-  re- 
sources, if  we  cannot  learn  to  mine  the 
mineral  wealth  of  the  seas  without  de- 
stroying the  .'iea.'^  then  Rhode  Island  will 
suffer  first  and  will  suffer  hardest 

Commercial  fishing  ha?  always  been 
Important  to  the  economy  of  Rhode  Is- 
land and  Point  Judith  and  Newport  are 
today  the  third  and  fourth  largest  fish- 
ing ports  on  the  northeast  coast.  The 
retail  value  of  commercial  fishing  to  the 
Rhode  Island  economy  has  been  esti- 
mated at  more  than  $35  million  an- 
nually. 

The  port  of  Providence  is  a  small  port 
but  vital  to  the  Rhode  Island  economy. 
The  port  Is  growmg  in  importance  and 
tonnage  of  cargo  handled  as  the  nearby 
ports  of  New  York  and  Boston  lia\e  be- 
come choked  w  itJi  traffic. 

Narragansett  Bay  i.<;  one  of  the  most 
beautiful  estuarle.":  of  the  .Atlantic  Ocean 
and  we  Rhode  L'^lander^  are  proud  that 
the  bay  remains  for  the  most  part  a  clean 
body  of  water  despite  the  fact  that  it  is 
p£irt  of  the  olde.st  industrialized  Slate  m 
the  Union  and  perhaps  the  most  densely 
populated. 

Ask  any  small  boat  sailor  and  he  will 
tell  you  that  Narragar..sett  Bay.  with 
its  islands  and  its  countless  inlets  and 
coves,  is  one  of  the  most  delightful 
places  for  cruisiiig  or  .sailing  along  the 
Atlaiitic  coast  Rhode  Ls.landers  turn 
to  the  sea  for  their  recreation  There 
are  tens  of  thousands  of  motor  craft 
of  all  deiicriptions  berthed  in  marina.-^ 
that  dot  our  bays  and  coves  and  tidal 
rivers  and  which  iia\e  become  a  major 
element  in  the  Rhode  Lsland  economy 
There  are  at  lea."-!  a^  many  .<iailboat5 
that  enjoy  Rhode  I.<^Iand  waters  and 
some  of  the  finest  racing  sail  craft  built 
in  America  have  been  built  in  Brl.stol, 
first  by  Herreshoff  and  then  by  Pearson 
In  Rhode  L<^land,  most  people  do  not  go 
to  the  mouritains  or  the  countr>'  for 
summer  vacations  They  go  to  the  sea. 
Tens  of  thousands  of  Rl^ode  Islanders 


owm  summer  cottages  by  the  sea  so  they 
can  enjoy  some  of  the  finest  of  Atlantic 
beaches. 

In  commerce  and  in  recreation  Rhode 
Island  has  always  turned  to  the  sea  from 
pre-Revolutionary  days  when  Newport 
and  Providence  were  great  privateering 
ports  to  1974  when  Newport  hopefully 
will  again  host  the  America's  Cup 
races — the  greatest  amateur  sailing  com- 
petition in  the  world. 

To  be  more  specific  and  to  illustrate 
the  importance  of  commercial  finhing 
to  my  State,  in  Rhode  Island  alone 
2,000  families  depend  directly  upon 
ccanmercial  fishing  for  their  Livelihood. 

In  the  southern  New  Eiigland  region 
of  Rhode  Island,  southeastern  Massa- 
chuetts.  and  southeastern  Connecticut, 
there  are  about  420  firms  that  depend 
entirely  and  directly  upon  the  marine  en- 
vironment. These  firms,  in  this  tiny 
region  of  our  Nation,  employ  more  than 
41,000  persons  and  have  gross  sales  of 
more  than  three-quart-ers  of  a  billion 
dollars.  This  does  not  include  any  naval 
or  other  militarj-  installations  or  em- 
ployment with  those  installations. 

These  industries  in  turn  generated 
well  over  a  billion  dollars  in  transaclions 
about  $500  million  of  which  was 
personal  income  About  13  percent  of  the 
total  transactions  in  this  southern  New 
England  repion  and  about  U  percent 
of  personal  income  can  be  traced  direct- 
ly to  marine-related  mdustnes. 

It  is  essential  therefore,  to  the  Nation 
and  particularly  to  my  region  of  New 
Erigland  to  develop  an  orderly  cxrean  use 
prc«ram  and  I  am  proud  to  lend  all  of 
the  support  at  my  command  to  the  ocean 
policy  study  resolution. 


CONFIRMATION  OF  SENATOR  SAX- 
BES  NOMINATION  TO  BE  ATTOR- 
NEY GEN-ERAL 

Mr  BAKER.  Mr.  President.  I  enthusi- 
astically support  the  nommaton  of  my 
good  friend  and  colleague.  Ser.ator  Wil- 
liam Saxee.  to  be  Attorney  General  of  the 
United  States  Ha\-ing  served  with  the 
distinguished  Senator  since  he  came  to 
Washington  in  Januan.-  1969.  I  have  no 
doubt  that  he  will  discharge  the  func- 
tions and  responsibilities  of  the  job  upon 
which  he  is  about  to  embark  to  the  tiest 
of  his  abihty. 

The  fact  that  he  is  an  attorney  and  has 
serA'ed  as  a  State  legislator.  Speaker  of 
the  Ohio  Stat*  House,  Ohio  attorney 
peneral.  and  most  recently  as  the  senior 
Senator  from  that  great  State,  uniquely 
qualifies  him  to  be  .Attorney  General  of 
the  United  Stales  Moreover  despite  a 
career  in  partisan  politics  he  is  aware 
that  the  task  which  lies  before  him  re- 
quires an  Individual  who  can  nse  above 
such  politics  for  the  pood  of  the  NaUon. 
and  in  this  regard,  he  is  mast  captihle 

He  IS  an  independent  thinker  and  a 
free  spirit  of  sort;?  He  exercise.s  good 
commonsense  smd  has  an  Incomparable 
sense  of  humor  .And  most  important,  he 
is  a  man  of  deep  con\'1cDOD  and  high  In- 
tegrity For  all  of  Uie.se  reasons  I  am 
giad  to  see  him  serve  &&  .Mtomey  Gen- 
eral, bv;t  I  am  sad  to  see  him  leave  the 
US  Senate 

However    we  siiouid   be  pleased   that 


42726 


he  and  his  wife  will  remain  In  Washing- 
ton so  that  we  might  continue  to  have 
the  benefit  of  their  company  and  friend- 
ship. I  Join  with  all  my  colleagues  in 
wishing  Senator  Saxbi  the  best  of  luck 
In  his  new  job.  and  I  am  confident  that 
he  will  live  up  to  our  expectations. 


CONGRESSION.\L  RiiCORD  —  SENATE 


DOT-SAE  INTERNATIONAL  CONFER- 
ENCE  ON   TIRE   SAFETY 

Mr.  RIBICOPP  Mr.  President,  last 
March  27.  I  Inserted  in  the  Record  the 
staff  report  of  my  Subcommittee  on  Re- 
organization. Research,  and  Interna- 
tional Organizations  on  Mr.  Ralph  Na- 
der's charges  concerning  the  safety  of  the 
1960-63  Corvair  automobile.  As  a  resiilt 
of  this  investigation  I  urged  the  Depart- 
ment of  Transportation  to  sponsor  an 
international  conference  on  the  safety 
of  replacement  tires. 

Secretary  aaude  S.  Brinegar  has  now 
Informed  me  that  such  a  conference  will 
be  held  October  21-25,  1974.  In  connec- 
tion with  the  Society  of  AutomobUe  En- 
gineers International  Automobile  En- 
gineering MeeUng  in  Toronto.  Canada 
Automobile  and  tire  manufacturers  from 
the  Dmted  States.  Canada,  Europe  and 
Japan  will  participate  in  the  conference. 

The  theme  of  the  conference  will  be 
"[Meet  of  Replacement  Tires  on  Vehicle 
Dynamics."  The  conference  agenda  will 
include 

Performance  properties  of  generic- 
radial,  bias  ply.  snow,  et  cetera— tire 
types. 

Ranges  of  tire  performance  properties 
and  consumer  mfluence  on  tire  perform- 
ance 

Influence  of  tire  properties  on  vehicle 
dynamics :  that  is.  braking,  directional 
control,  traction,  et  cetera. 

Methods  for  classifiing  tire  proper- 
ties: that  is.  skid,  traction,  high  speed 
road  hazard,  noise,  vehicle  directional 
control,  et  cetera. 

14r.  President,  I  am  very  pleased  that 
DOT  has  accepted  my  suggestion  and 
will  sponsor  an  international  conference 
on  replacement  tire  safety.  This  is  an 
important  trafHc  safety  problem  affect- 
ing the  Uvea  of  millions  of  motorists 
daUy  I  commend  Secretary  Brinegar 
and  the  DOT  for  their  action. 


BRISTOL  BAY  SALMON  STOCK 
DEPLETED 

Mr  STEVENS  Mr  President,  on  De- 
cember 7  I  addressed  the  Senate  once 
again  emphasizing  exploitation  by  the 
Japanese  and  the  devasUtlng  effect  of 
their  fishermen  m  disregarding  conserva- 
tton  practices  in  the  Benng  Sea  and 
North  Pacific  fisheries  Time  and  again 
I  hare  made  references  to  this  issue  Dn- 
tU  our  NaUon  recognises  its  responsibility 
to  North  Pmclflc  fishermen,  and  pro- 
vides effective  programs  of  protection 
and  rehabilitation.  I  wUl  continue  to 
raise  my  voice  against  our  lethargic  at- 
atude  toward  saving  our  ocean  resource* 

Earlv  in  Etecember  Governor  Egan 
of  Alaska  was  mforrr.ed  by  the  Alaska 
Board  of  Pish  and  Oame  that  the  Board 
would  no  loocer  be  abto  to  carry  out  lU 
constitutional  mandate  to  manage  the 
BrtMtol  Bay  salmon  stocks  due  to  the  con- 


tinuing depletion  of  fish  brought  on  by 
Japanese  high  seas  fishing.  This  an- 
nouncement coincided  with  my  intro- 
duction of  Senate  Resolution  213.  which 
requests  that  the  President  of  the  United 
States  declare  a  moratorium  on  commer- 
cU  fishing,  other  than  United  States  and 
Canadian,  in  North  Pacific  waters.  Mr 
President,  I  ask  unanimous  consent  that 
^he  Governor's  new  release  be  printed  tn 
the  RscoRD, 

There  being  no  objection,  the  state- 
ment was  ordered  to  be  jmnted  in  the 
Record,  as  follows :  ^'*' 

DrcxiCBB*  10,   1073. 

JuNXAU. — Oovernor  WUllam  A  Egan  has 
tMNsn  Informed  by  the  Alaska  Board  of  Fish 
and  Oame  that  the  board  Is  no  longer  able 
to  carry  out  Its  constitutional  mandate  to 
manage  Bristol  Bay  salmon  stocks  because  of 
Japanese  high  seas  flahlng. 

The  governor.  ctOllng  the  development  "a 
bitter  reality  for  the  stote  of  Alaska  to  face  " 
said  US.  "diplomatic  appeasement  of  Japan 
and  shameful  disregard  of  federal  responsi- 
bility to  a  state  of  the  tTnlon.  the  state  of 
Alaska,  have  brought  about  conditions  sim- 
ply making  tt  Impoeslble  for  Alaska  to  man- 
age the  Bristol  Bay  salmon  fishery." 

The  board,  in  the  final  session  of  a  lO-day 
meeung  in  Juneau,  drafted  and  sent  the 
following  mesage  to  the  governor: 

•The  Alaska  Board  of  Fish  and  Game  wishes 
to  report  to  the  Governor  of  Alaska  that  due 

o'L^'/SP*"*'*  ^'P**  ***^  fisheries  efforts  on 
Bristol  Bay  red  salmon  stocks,  the  Board  Is 
no  longer  able  to  carry  out  its  constltoitlonal 
mandate  to  manage  thoee  stocks  on  a  sus- 
tained yield  basis  " 

Bgan  commented-  "This  Is  a  sad  situation 
When  such  a  competent  board  as  the  Plah 
and  Oame  Board,  representing  all  Alaskans 
is  forced  to  admit  in  total  frustration  that 
they  are  unable  because  of  circumstances 
completely  beyond  their  control  to  manage 
the  remains  of  a  once-great  fishery. 

•I  fervently  and  sincerely  hope  the  federal 
government  will  immediately  take  such  ac- 
tions as  are  necessary  to  enable  the  Flab 
and  Game  Board  to  resume  fuUy  meeting  its 
obligations  of  managing  the  Bristol  Bay 
nahery,"  ' 

Egan  who  has  waged  a  long  and  angry 
nght  against  high  seas  fishing  for  Bristol 
Bay  salmon,  lays  major  blame  for  destrucOon 
of  that  fishery  on  Japanese  fleets 

After  this  year's  Bristol  Bay  run  proved  a 
S^t^'  ^*  dispatched  state  International 
Fisheries  Director  Harold  Hansen  to  a  Tokyo 
^lon  of  the  International  North  Pacific 
Fisheries  Commission  (mppc)  with  Instruc- 
tlcaa  to  strongly  advocate  a  .sharp  curtail- 
ment of  foreign  fishing  for  Alaaka  salmon 
stocks. 

But  Egan  says  results  of  the  Tokyo  INPPC 

^"^"V*  **"**  ■«*'"•  ^^^^y  dlSRppolnt- 
mg  The  Japanese  out  of  hand  rejected  the 
recommendations  of  the  United  Slates  and 
Canadian  sections  of  the  Commission  to  ab- 
stain from  flshlng  for  salmon  with  nets  on 
the  high  seas  In  thV  areas  of  Intermingling 
of  AaULn  and  North  American  aalmon  for  any 
effective  length  of  time  Hence  an  already 
srnau  anticipated  Bristol  Bay  salmon  retnm 
may  be  almost  totally  decimated  in  1074 
•ThU  action  which  the  Board  of  FUh  and 

^t  T  'f!ir*  ^  ^^'  "^K^*^  the  nnal 
nail  In  the  coffin  of  the  Bristol  Bav  fishery 
unless  decisive  and  prompt  federal  acUon  U 
taken  " 

E«»n  has  strongly  urg«d  adoption  of  pend- 
Ing  legislauon  In  Congwa.  which  would  ex- 
VtndUmUa  terrltortal  •(•  limit  to  200  mil., 
and  US  Jujiadictlon  over  axiadlromous  n*h 
to  wherever  they  may  roam  on  the  high  sms 

"Unles*  some  meaningful  federal  action 
to  remedy  thU  tragic  sitriatlon  is  forthoom- 
ing,"  he  Mid  -we  will  be  looking  stroaglr 
at  mMaures  tive  Kate  ttMlf  can  fnkr 


December  SO,  197S 


"We  simply  cannot  go  on  here  with  the 
Japaneae,  through  their  Interests  In  flahery 
shore  faculties  and  other  Alaska  resounsea. 
having  their  cake  and  eating  U  too  so  to 
spealt. 

"We  In  Alaska  simply  cannot  go  on  toler- 
ating a  sltuauon  whereby  we  are  spendlmr 
millions  and  millions  of  doUars  buUdlng  up 
our  fisheries  and  getting  no  cooperation  In 
conserving  and  perpetuating  them." 

The  governor  said  Japaneae  flahing  com- 
panies "have  expert  biologists  who  know  as 
well  as  our  biologists  know  what  is  takinjt 
place.  They  are  fully  aware  of  the  damage 
they  are  doing.  It  Is  long  in  the  past  that 
there  can  be  any  excuse  on  the  basis  that 
they  do  not  know  what  they  are  doing  out 
there."  "c     "« 

He  said  Japanese  flahing  companlea  have 
completely  abandoned  any  decency  in  this. 
I  would  hope  there  would  be  some  moral 
feeling  in  their  minds.  However,  its  hard  to 
teU  what  Is  in  the  minds  of  people  who  have 
done  what  they  have  done." 

Mr.  STEVENS.  Mr.  President.  I  submit 
that  the  time  for  action  is  running  out. 
We  have  under  consideraUon  some  veryl' 
meaningful  fisheries  legislation.  Let  us? 
here  resolve  that  with  the  coming  of  the; 
new  year,  that  1974  will  be  remembered 
as  the  time  when  the  United  States  com- 
mitted  Itself   to  a  dedicated  effort  of 
ocean  resource  management. 


THE  SUBSTITUTE  MINIMUM  WAGE 
BILL 


Mr.  DOMINICK.  Mr.  President  on  De- 
cember 4.  1973,  Senators  Dosunick.  Tatt 
and  Beall  reintroduced  the  substitute 
minimum  wage  bill,  increasing  the  mini- 
mum wage  rate  under  the  Pair  Labor 
Standards  Act.  which  had  previously 
been  offered  by  them  In  the  Labor  and 
Public  Welfare  Committee  and  on  the 
floor.  Recognizing  that  there  would  again 
be  difficulty  In  passing  some  of  the  con- 
troversial provisions,  a  substitute  was 
^^J^  by  the  same  three  Senators 
which  made  no  changes  In  existing  law 
except  to  raise  the  rates,  a  raise  badly 
needed  to  take  care  of  the  inflationary 
pressures  since  1966  It  was  our  feeling 
that  if  we  could  get  away  from  the 
difficult  questions  of  coverage  exemp- 
tions, and  youth  differential  tUl  a 
later  date  we  could  get  the  needed  wage 
rate  Increase  pas.<;ed 

Unfortunately  a  motion  which  had  the 
effect  of  killing  both  proposals  was  of- 
fered and  passed  by  the  Senate  backed 
by  many  of  my  colleagues  who  had  been 
talking  often  about  the  need  for  a  higher 
rninlmum  wage.  It  seems  strange  indeed 
that  theJr  attitude  was  taken  and  Con- 
gressman John  Erlenborn  who  has  been 
making  valiant  efforts  in  the  House  to 
Increase  the  minimum  wage  had  some 
comments  on  the  House  side  on  Decem- 
ber 5.  1973.  which  although  somewhat 
acerbic  are  in  my  opinion  totally  Jus- 
tified These  remarks  are  well  worth 
reading  by  my  colleagues  and  I  ask 
unanimous  consent  that  they  be  printed 
in  the  Record 

Mr.  President,  on  December  19  1973  we 
passed  a  conference  bill  on  health  main- 
tenance organizations  which  I  supported 
This  conference  report  was  almost  IdenU- 
caj  to  the  bill  which  I  offered  in  the 
Labor  and  Public  Welfare  Committee  and 
on  the  floor  which  were  rejected  If  ac- 
cepted we  could  have  had  this  leglala- 


Decemher  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42727 


,9 


tlon  2  years  ago.  The  same  fate  will  be 
true  eventually  on  minimum  wage  but 
the  action  taken  by  the  Senate  will  post- 
pone for  almost  3  years  the  wage  raises 
which  were  badly  needed  then  and  are 
badly  needed  now. 

There  being  no  objection,  the  speech 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 

Wk   Nked    a   New    Uinimt7m   Wags   Buj. 

Senators  Domlnick  and  Taft  made  a  val- 
iant, but  vain,  try  for  a  new  minimum  wage 
bUl  yesterday.  They  proposed  that  we  in- 
crease minimum  wage  rates  and  leave  the 
thorny  Issues — those  that  have  stood  In  the 
way  of   a  new  blU— for  a  later  time. 

That  their  effort  failed  underscores  a  point 
I  have  been  making  for  the  past  year:  that 
Bome  people  would  rather  have  an  Issue  than 
abUl, 

At  first,  my  feeUng  was  that  our  General 
Labor  Sutxxatnmltteo  Chairman  (Mr.  Dent) 
was  the  leader  of  the  Intransigents,  and  I 
directed  plea  after  plea  to  him.  In  this 
Chamber  last  week,  however.  I  mused  that 
perhaps  I  should  be  directing  my  entreaties 
to  Organized  Labor  instead. 

Well,  the  proof  of  the  pudding  is  In  the 
eating.  Yesterday,  by  a  vote  of  55  to  29.  the 
Domlnlck-Taft  amendment  was  tabled  In  the 
other  body.  , 

Why?  Would  you  believe  that  an  army  of 
tatx>r  lobbyists  was  on  hand  urging  a  vote 
against  the  Increase? 

But  why?  Why  would  those  who  speak  for 
Organized  Labcn-  lobby  against  a  pay  Increase 
for  unorganized.  imskHIed  workers? 

Perhaps   George   Meany   can   teU   us. 

If  he  can.  then  the  next  question  is: 
Will  he? 


ACTION  ON  GENOCIDE  LONG 
OVERDUE 

Mr,  PROXMIRE,  Mr  Pre.sident,  It  was 
In  1950  that  President  TYuman  first  sub- 
mitted the  GcncK-lde  Convention  to  the 
U.S.  Senate  for  ratification.  Hearings 
were  held  before  the  Poreign  Relations 
Committee  that  year,  but  no  action  was 
taken.  No  action  wa.=:  taken  for  the  suc- 
ceeding 21  years  either 

During  the  time  that  the  convention 
has  languished  in  the  Senate,  it  has  been 
ratified  by  75  nations  This  Includes  vir- 
tually every  major  nation  In  the  world. 

In  May  1971,  the  Poreien  Relation."; 
Committee  finally  report.ed  the  conven- 
tion to  the  Senate  floor,  with  the  recom- 
mendation that  the  convention  be  rati- 
fied. Unfortunately,  no  action  was  taken 
in  1971  and  1972  However  in  the  .spring 
of  this  yp«.r  the  ronvenUon  ■.va.'^  ii*ain 
sent  to  the  floor  by  the  Poreign  Relations 
Committee,  and  we  now  have  an  oppor- 
timity  to  act  upon  tt, 

Mr.  President,  let  us  not  lose  this  op- 
portunity The  Genocide  Convention, 
which  would  make  unalterably  clear  the 
opposition  of  the  civilized  world  to  the 
hideous  crime  of  genocide,  deserves  to  be 
ratified  I  hope  the  Senate  will  be  i>er- 
mitted  to  act  upon  It  without  further 
delay. 

CURRENT  US    POPULATION 

Mr  PACKWOOn  Mr  President,  since 
the  Senate  will  not  be  In  session  on  Jan- 
uary 1.  I  would  like  today  to  report  that, 
according  to  U5  Census  Bureau  approx- 
imations the  total  population  of  the 
United  States  as  of  that  date,  January  1, 

CXIX aw  1— Part  33 


1974.  will  be  211,678.845.  In  spite  of  wide- 
ly publicized  reductions  in  our  fertility 
levels,  this  represents  an  increase  of  117,- 
376  since  December  1,  1973— that  Is.  in 
just  1  month.  *t  also  represents  an  in- 
crease of  1.483,481  since  January  1,  f973. 
Over  the  year,  therefore,  we  have 
added  enough  additional  people  to  fill  a 
city  larger  than  Houston,  Tex.  And  in 
just  1  short  month,  we  have  added  as 
meaiy  people  as  now  reside  in  two  cities 
the  size  of  Galveston,  Tex, 


CONTINUING  REPRESSION  OF 
SOVIET  JEWS 

Mr.  WILLIAMS.  Mr,  President,  since 
the  deplorable  Arab  aggression  of  this 
past  October,  the  attention  of  the  world 
has  been  focused  on  events  in  the  Mid- 
east. All  peace-loving  people  throughout 
the  world  fervently  hope  that  the  parties 
to  the  Mideast  conflict  can  now  speedily 
agree  to  an  arrangement  that  will  pro- 
duce a  lasting  peace,  and  one  that  will 
guarantee  immediate  repatriation  of  all 
prisoners  of  war.  and  secure  defensible 
borders  for  Israel. 

However,  despite  our  concern  for  the 
Mideast,  we  must  not  forget  the  continu- 
ing tragedv'  of  the  repression  of  Jews  in 
the  Soviet  Union,  Earlier  this  year,  large- 
ly because  of  the  overw-helming  weight  of 
world  opinion,  the  Soviet  Union  relaxed 
somewhat  its  restrictive  and  repressive 
policies  toward  Jews  wishing  to  emigrate 
to  other  nations.  This  was  encouraging  to 
people  the  world  over  concerned  with  the 
fundamental  issue  of  human  rights 

Unfortunately,  reports  from  the  Soviet 
Union  m  recent  weeks  indicate  that 
harsh  repression  of  Soviet  Jews  who  wish 
to  emigrate  has  again  increased  There 
have  been  reports  of  a  new  round  of 
trials  of  .such  persons  on  a  variety  of 
flimsy  charges  and  of  invariably  harsh 
sentences.  There  report-s  are  summarized 
in  a  document  prepared  by  the  National 
Conference  (in  Soviet  Jewry,  and  I  ask 
that  it  be  printed  in  the  Record  at  the 
conclasion  of  my  remarks. 

The  PRESrOING  OFFICER  Without 
objection,  it  l.s  so  ordered. 

See  exh)bit  1   ■ 

Mr  WTTJJAMS  Mr  President,  this 
Congress  has  already  clearly  demon- 
strated its  concern  for  the  plight  of  So- 
net Jews  by  resisting  extension  of  most- 
favored -nation  status  for  any  Commu- 
nist nation  that  restricts  emigration  of 
Its  citizens.  But  we  mu.st  now  be  as  vigi- 
lant as  ever  to  the  treatment  of  Soviet 
Jews,  and  we  m'ost  not  fail  to  speak  out 
when  that  treatment  violates  the  basic 
rights  of  every  human  t)elnK  World 
opinion  has  proved  to  be  a  powerful  force 
for  justice  In  the  past,  and  I  hope  It  will 
be  again. 

ExHiarr   1 
THX  Niw  TRIALS     BACKaRocwD 

1.  Too  ;»te  the  VV'est  \fTnt(i  that  Pleta 
(Plotr)  Plnkha.'-oT  a  rarpenter  1:.  Derber.t 
Dagvstan  ASSR  R  is-nai:  Republic  >  was  sen- 
tenced to  Ave  years  in  a  labor  camp  TT.e 
trial,  originally  scheduled  for  November  15 
was  compl*t«d  on  T\jesday.  Novemt>er  13 
The  remote  Caucasus  town  on  the  Caspian 
Sea  Is  more  tl.an  1,000  miles  from  Moe<xw 
and  vrai  li'.t  v;aited  by  JourrjaHstg  i.ir  foreign 
dtplcmatA  t;,u.«  Uie  trial  was  held  virtually 
Ui  camera. 


Plnkhasov  is  the  father  of  6  children  aged 
2  to  16.  The  fEunily  has  a  vLsa  and  was  set 
to  leave  for  Israel  when  Pleta  was  arrested  on 
charges  that  years  &g'  he  did  tame  free-lance 
work,  which  is  c-oa-sldered  "illegal,"  The  Jews 
tn  Derbent  believe  the  arrest  i.«  really  part  of 
an  Intimidation  campaign  aimed  at  deter- 
ring potential  emigrants,  since  authorities 
told  the  family  that  if  they  remain  In  Der- 
bent the  charges  would  be  droppyed.  Until 
now  few  applicants  for  emigration  were 
known  in  Derbent  and  the  action  will  be  a 
deterrent  to  others.  The  wl.'e,  Yalta  and  the 
children  left  and  arrived  in  Israel  on  Sep- 
tember 20  expecting  the  hu.sbar.d  to  follow. 

Among  other  charges  Pihkhasov  was  re- 
portedly tried  under  .Article  No  156  con- 
cerning "deception  of  purchasers  "  If  this 
Information  Is  correct,  the  defendant  re- 
ceived the  maximum  sentence,  or  one  more 
appropriate  for  a  "second-ofTender "  The 
economic  nature  of  the  charges  is  reminiscent 
of  trials  held  during  the  Smisbchev  era 
when  "economic  trials"  were  levelled  against 
Soviet  Jewish  activists  in  what  was  clearly 
an  anti-Jewish  campaign.  The  trials  abated 
only  ELfter  strenuotis  protest  abroad 

2  On  November  8  the  investigation  of 
twenty-six  year  old  Aleksandr  Feldman  of 
Kiev  was  concluded.  One  of  the  "Kiev  Pour" 
(see  Outlook  No,  7) .  Feldman  is  to  stand  trial 
on  November  19  on  charges  of  'malicious 
hooliganism,"  In  a  dramatic  nth  hour  ap- 
peal, friends  in  Kiev  and  Moecow  asked  So- 
viet authorities  to  halt  the  tnal  and  rejease 
the  "accused."  The  signatories  accuse  the 
Soviet  regime  of  among  other  thtiigs,  grave 
violation  of  the  law  in  the  investigation  of 
Feldman;  they  consider  the  charges  as  "an 
Illegal  repressive  meastire,"  Among  the  sig- 
natories were  Saul  R&slln  i himself  the  target 
of  police  harassment  >  .\leksandr  Tsatakls, 
Viktor  Polsky   and   \"ladlmir  Prestin 

On  October  18  and  19  Kiev  authorities 
conducted  a  search  of  Peldm&n  s  apartment 
took  him  Into  custody  and  charged  h:n\  with 
allegedly  assaulting  an  as  yet  unidentified 
woman,  Feldman.  who  has  been  trying  for 
nearly  two  years  to  emigrate  was  on  his  way 
to  synagogue,  since  It  was  Shemlnl  Atiereth 
According  to  the  tTkralnian  equivalent  of  the 
RSFSR  Criminal  Code  article  No  20e,  ■  ma- 
licious hooliganism."  constitutes  "the  same 
actions  ,  ,  ,  las  petty  hooUganlsm)  ,  dis- 
tinguished in  their  content  by  exceptlon&l 
cynicism  or  special  Impudence,  or  connected 
with  resisting  a  representative  of  authority 
or  representative  of  the  pit  lie  fulfilling  du- 
ties for  protection  of  public  order  or  other 
citizens  who  are  restrai::-,:.k:  hooltganlstlc 
actions  and,  likewise  actlcns  uhich  are  com- 
mitted by  a  person  prevv  isly  ^?nv:cted  f 
hooliganism,  i  and  i  shall  be  punished  by  de- 
privation of  freedom  for  a  terrr.  of  one  to  five 
years  Tht"-  may  t*  considered  a  second  of- 
fense as  Feldman  had  already  served  a  Qf- 
teen-day  detention  for  the  same  charge  the 
fact  that  Peldma.n  may  be  considered  a  "re- 
cidivist" adds  severity  to  the  caae  and  has  led 
friend.''  to  believe  he  could  receive  the  mail- 
mum  sentence  of  !5ve  years 

The   recent   accusation   by  Kiev   newspaper 

V'echem;  Kiev  i  of  erratic  behavior  ineans 
that  Feldman  1»  libel  to  be  Ir.terned  m  a 
psvciiiatTic  insututlcu.  offVrlals  have  air**dy 
threatened  to  p\:t  him  m  the  Pavl.ov  p>sT- 
-hiatric  hospital  near  Kiev  Karaptnkov 
Feldman's  tnterrogat,;" r  reportedly  refused  to 
receive  any  rupportlng  m.»terlals  fmm  .flek- 
sandrs  brother  IjeonW  or  tc  hear  w. tness»>s 
atlest'.np  to  Feldma.n's  W.v.acfnr*  When  rela- 
tives of  other  prisoners  were  allowed  to  brlnp 
warn-  clothe?  (October  2&.  WT?  Feldman  < 
relatives   were    denied    peraussKvr 

Thus  far  no  attorney  has  agreed  to  defend 
Feidrrtan:  and  his  friends  are  desperataly 
seeking  one 

3  Information  1,»  still  t>eing  fratbered  by 
Soviet  c»fflclali  in  the  "Moecow  Ocmsplracy" 
cAse  whlcii  oould  foc.is  on  Alia  l.*yaaoy«odTa. 
ner  father-m-law  Abraham  I.  o«iikh.  aaA 


42728 


two  McMoow  actlTlata.  Din*  Belllna  and 
T»ixi*r»  O^perlnA.  Material  wa*  sent  on  So- 
vember  S  by  t^U  office,  and  the  SCJRAC  to 
toca;  CRCs  and  /ederationt.  No  word  hu 
been  received  about  any  date  for  a  trial  al- 
thougu  there  is  grave  concern  that  thia  la 
Imminent. 

4.  Thirty-two  year  old  Leonid  ZabeUahen- 
»MJ  of  Sverdlovsk  Is  now  being  Invertlgated 
on  crtmlnal  charges  of  alleged  "partaltlam" 
(article  No.  309-1.  RSPSR  CMmlnal  Code) 
n»vlng  been  unemployed  for  several  months" 
An  el«5trlcal  engineer  who  taught  at  the 
Ural  Polytechnic  Institute  in  Sverdlovsk 
Zabellshenaky's  fleld  is  the  theory  of  com- 
puter calculating. 

An  activist  In  the  small  Jewish  commu- 
nity of  Svwdlovak,  he  and  his  family  aDoUed 
for  exit  visas  in  November.  1971.  On  Octo- 
ber 25  1973,  Zabellshen^  was  taken  to  Zi 
undlscloaed  place  after  being  arrested  by 
locMl  poUce.  It  was  later  learned  that  he  I3 
being  accused  of  "parasitism."  although  his 
T^^^T^  ^'^  "^^  •  substantial  Income. 
S^^^"*^  r'^  currenuy  taking  care  of 
their  sick  son.  In  a  search  of  the  apartment 
poll^  reportedly  oonflscated  a  voucher  from 
Switzerland,  notification  from  a  bank  of  a 
m^ey  transfer,  and  a  receipt  for  a  letter  to 

^..^ftr  ■*="'^^^f«>m  «mote  Sverdlovsk  In- 
elude  Vaiery  Kukul  and  Vladimir  Markman 
both  now  serving  prison  sentences 

(KGB?'rJ!°'!S'^    ^-    •**    Security    Police 
(KGB)  resumed  surveillance  of  another  Kiev 

^iZ^""  '""^-  =•  '^  *  '"*°'l  '^  Aleksandr 
fl.  Rumors  are  circulating  Ln  TbUlai  thit 
^e  GoKlahteln  brothers.  Grtgorr«^d  S 
may  be  brought  up  on  charg«  once  a^' 
Their  case  has  been  discussed  In  the^wt 
^°^-  '■•^•^^'ly-  »e  reported  that  procwd^ 
b^  been  lifted.  Not  allowed  to  em?^^t^ 

acwvTsts  might  resume 

The  whereabouts  of  Solomon  Rozln  (Lenin- 
grid),  are  still  unknown.  The  thlrtv-ei^t 
y^  Old  engineer  electrician  fl^p^^^'d 
newntly.  shorUy  after  the  KGB  be^loJ^i: 
low  him.  Mend,  believe  Rozln  ^^nrheld 


CONGRESSIONAL  RECORD- SENATE  December  20,  1973 


people,  a  gift  which  has  taken  on  added 
slgnmcance  In  light  of  the  current  crlsla 
In  the  Middle  East.  He  wrote ; 

No  dlspalr  and  no  Illusions.  No  Mit..,^^, 
and  no  Vichy.  WhUe  bitter  and  dUBcult 
struggles  Ue  ahead  of  us  we  are  not  prepartna 
for  a  final  battle.  Nor  do  we  wish  to  die 
with  the  Phlllstlnee.  On  the  other  hand  we 
must  recognlae  that  the  moment  we  give 
in  and  bow  our  beads  and  lose  our  wUl  to 
stand  up  fearlsealy.  we  begin  to  roll  down 
the  slope  which  leads  to  the  abyss 


Mr  President,  as  long  as  the  memory 
of  David  Ben-Gurlon  Uves  with  the  peo- 
ple of  Israel.  Israels  '  will  to  stand  up 
fearlessly  will  not  die 


PROPOSAL  TO  CREATE  A  FEDERAL 
OIL  AND  GAS  CORPORATION 


DAVXLi  titJN-GURION 
1886-1973 

wo^H  .^Ty^^^^^Oni  Mr.  President,  the 
world  lost  the  greatest  Jewish  leader  and 
sto^sman  of  his  generation  with  ihe 
^«ing  earlier  this  month  of  David  Ben- 
?t^»°^i  ^founding  father  of  Israel  and 
^,.^t  Premier.  No  man  better  sym- 

f^^l^"^'^°  ^^^'  °°«  »«ain  trans- 
formed Palestine  into  the  promised  land 
lor  Jews  throughout  the  world 
Piif!r°^  ^  beginnings  In  a  ghetto  In 
Plonsk  m  Russian  Poland:  through  his 

executive  body  of  world  Zionism 
through  the  birth  of  the  Jewish  SUte  ori 
May  14  1948;  and  through  his  semce 
as  Premier  and  minister  of  defense  Ben- 
Gurlon  was  the  personification  of  his 
adopted  nam^which  means  "son  of  a 
"on  cub  in  Hebrew  He  was  a  fierce 
advocate  of  Israels  struggle  for  liberty 
and  human  dignity,  and  his  death  is 
lamented  by  all  men  who  share  his  dedi- 
cation to  peace  and  Justice 

In  1946  when  the  BrtUsh  were  per- 
secuting the  Jewish  leaders  of  Palestine 
Ben-Ourton  left  a  valuable  gift  to  his 


Mr  CLARK.  Mr.  President,  Mr  Lee 
C.  White,  chairman  of  the  energy  poUcy 
task  force  of  the  Consumer  Federation  of 
America,  testified  before  the  Senate 
Commerce  Committee  December  12  on  a 
proposal  to  create  a  Federal  corporation 
to  explore  for  oU  and  gas  deposits  on  pub- 
lic lands. 

Mr.  White  is  the  original  advocate  of 
this  proposal,  and  has  researched  It  ex- 
tensively, and  his  testimony  offers  an 
excellent,  thorough  summary  of  the  pro- 
posal's merits,  which  &n  many. 

It  Is  particularly  important  that  It  be 
given  careful  consideration  now  in 
light  of  our  current  energy  shortage 

Mr.  President.  I  ask  unanimous  con- 
sent to  have  this  testimony-  printed  in 
the  Record. 

There  being  no  objection,  the  state- 
ment was  ordered  to  be  printed  In  the 
Record,  as  follows : 

3taiim£wt  or  Lxk  C    Wnnr 

M».  Chaikman  aito  Membexs  or  tht  Com- 
^in^^  ^'^  "*"*  la  Lee  C  White,  and  I  am 
R^Zi^SI,^  "J  capacity  as  Chairman  of  the 
BMTgy  Policy  Task  Force  of  the  Consumer 
JP*deratlon  of  America  The  purpose  of  our 
l^LJZT  '"*'^*'  c^^ntly  has  23  member 
^^,^  ^  "*•  *''*^hed  list) .  is  to  ensure 
that  the  consumers'  views  are  expressed  and 
^nsldered  In  the  energy  poUcy  deb^tlk 
ing  place  publicly  and,  in  particular,  within 
the  Congress  We  recognize  that  there  is  no 
necessary  single  'consumer  Interest"  In  any 
of  the  numerous  issues  that  comprise  the 
energy  policy  debates;  nevertheless  we  have 
undertaken   to  do   the   best  Job  poJibleln 

^.^^  ^k"."'"'  '"'*•  "  '*^'  "'•^  base  of  our 
membership  suggesto,  we  do  IndirecUv  reore- 
aent  mUltons  of  Americans  ^^    ^^ 

Throughout  Its  entire  history,  thu  Nation 

^  .'.T'^'""**'  *  ^'^"y  °'  adapting  to 
new  and  changed   circumstances    Todaf  we 

^u"..'''s  '*'"^°'<»  °f  «he  worst  energy 
cTtals  we  have  ever  experienced  This  caUs 
for  an  examination  of  our  exUtUig  process 
and  for  modifications  necessary  to  deil  ^ 
the  circumstances  that  exist  today  and  that 
we  can   project  Into  the  future 

r.Jt^^^^^'  "•  **"•'•  '''•t  hearings  on  a 
^^^L'°,'*'^T*'  '  K'"«'-nment!;w^e^ 
corporation  to  explore  for  oU  and  gas  deooaiu 

r.,<a,^'^K'"^  ^   »°«   appro'^lflT'w': 
thi^^^^   opportunity   to   participate   in 
the^  heartng.  and  to  make  our  views  known 
on  tbs  subject  of  a  government  corporatton 
to  explors  for  oU  and  gas  on  publTTand. 

'^^JT.^!^  "^  ^'^  '  positive  kil^?n 
lavor  of  the  concept 

The  current  energy  crista  has  shaken  the 
country  down  to  lu  shoe  laces    The  Prsst- 
dsnt  and  the  Congrss.  are   m  .  general  way 
responduig  approprutsly  to  the  short  term 


requirements  which  basically  are  to  make 
every  reasonable  effort  to  dimmish  the  con- 
sumption of  energy  These  steps  are  Ui  the 
right  direction,  but  It  Is  our  view  that  many 
more  steps  must  bs  taken  and  that  we  are 
not  goUig  to  be  able  "to  get  by  without 
■orlous  disruptions  and  dislocations  Some 
<lrastlc  changes  In  our  life  styles  are  going 
to  have  to  occur— and  not  for  only  a  few 
months.  WhUe  we  are  focusUig  on  the  Imme- 
diate problems  of  the  current  winter  season 
we  must  also  make  some  national  decisions 
that  are  going  to  Infiuence  the  course  of  this 
country's  energy  actions  for  at  least  two 
decades. 

I  hope  that  whUe  we  have  the  attention 
of  the  public,  the  Administration  and  the 
Oongreas,  we  will  make  those  tough  essen- 
MAl  long-term  decisions  right  now  It  would 
be  tragic  if  an  easing  of  the  Middle  East  oU 
embargo,  for  example,  distracted  our  atten- 
tion from  long  range  requirements.  I  think 
we  have  already  made  two  basic  national 
decisions  and  both  of  them  are  constructive- 
(1)  to  use  our  energy  resources  In  the  future 
on  a  far  more  Judicious  and  cautious 
manner  than  has  been  true  In  the  pasf 
and  (2)  to  mount  a  research  and  develop! 
ment  program  by  which  we  commit  $2  bil- 
lion annually  to  Improving  existing  tech- 
nology and  develop  new  processes  and  tech- 
niques for  producing  ene^y 

THS  BASIC  KLXlttNTS  Or  A   rTOEKAI.  OIL  AKD  OAS 

coapoRAnoK 
Ajnendment    643    to    8.    2506.    Introduced 
by  Senator  Stevenson  and  eight  other  mem- 
bers of  the  Senate,  is  the  first  effort  to  put 
into  legislative  form  an  idea  that  was  enun- 
ciated as  long  ago  as  July  19«».  To  some  ex- 
tent, I  have  a  special  interest  in  the  subject 
s  nee.  so  far  as  I  know.  I  was  the  flnst  Indi- 
vidual in  or  out  of  government  to  advocate 
a  government-owned  corporation  that  would 
niAke  It  possible  for  citizens  of  this  country 
who  own   valuable  oU   and   gas   deposiu   to 
have  an  agency  seeking  to  discover  and  pro- 
duce those  depoaiu  in  a  manner  that  will 
benefit   the  public,  particularly  in  a  period 
When    the    existing   conventional    privately- 
owned    corporations   were    not    meeting   the 
needs  satisfactorily    In   the  simplest   terms 
the  corporation  would  have  the  following  re- 
sponslbUlUes  imposed  upon  it:   It  would  be 
charged   with   exploring   for   oil   and   gna   to 
meet   national   fuel   needs,    not    maxlmlzlnir 
profit.  Additionally,  it  would  be  directed  to 
develop   and    use   the   most   advanced   tech- 
niques for  minimizing  environmental  dam- 
age in  aU  aspects  of  the  petroleum  procew 
It  would  provide  complete  and  accurate  daU 
for  governmental  and  public  review,  of  the 
costs   of   producing   oil    and   gas— daU   that 
today   Is    woefully   Inadequate.   It    would    be 
assigned  the  task  of  managing  national  pe- 
troleum reserves  to  provide  this  country  with 
some  protection   from  reliance  and  overde- 
pendence   on   foreign   petroleum   sources    It 
would   be   directed   to  operate   in  a  fashion 
that  would  promote  and  foster  a  truly  com- 
petitive petroleum  Industry  in  this  country 
And   most   importantly,   it   would   provide  a 
competitive  spur  to  the  privately-owned  d«- 
troleum  industry. 

OTHM  ALTMNA-mrX  APPtOACHIS  COIfStDttKD 

We  have  examUied  other  points  on  the 
organizational  spectrum  in  reaching  our  de- 
cUlon  to  support  as  vigorously  as  possible 
the  government  corporation  approach  Por 
example,  nationalization  is  certainly  one 
alternative,  but  It  Is  not  a  realistic  alterna- 
tive In  my  Judgment. 

There  has  been  some  suggestion  that  en- 
ergy companies  are  so  crucial  to  national 
health  and  well-being  that  those  that  want 
to  bs  m  that  bualneis  ahould  be  transforms! 
into  public  utUltlss.  thereby  giving  much 
greater  governmental  control  over  how  those 
companies  shall  operate  On  the  production 
of  electrical  energy,  public  utility  status  has 
bswi  maUitained  throughout  the  Ufs  of  that 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42729 


Industry.  Similarly,  the  natural  gas  Industry, 
because  of  the  physical  properties  of  natural 
gas.  has  been  on  a  public  utility  basis  In  Its 
trskns[>ortation  and  distribution  aq>ect8 — 
this,  of  course,  has  not  been  true  of  Um 
producing  end  although  there  has  been  r«g- 
ulatlon  of  rates  and  terms  for  the  sale  of 
natural  gas  that  moves  into  interstate  com- 
merce. The  Idea  of  putting  petroleum  com- 
panies, coal  companies  and  uranium  com- 
panies In  a  public  utUlty  status  has  been  sug- 
gssted.  but  so  far  as  I  am  aware,  there  la  no 
legislative  proposal,  nor  do  I  personally  be- 
lieve at  this  point  In  our  national  develop- 
ment that  this  alternative  ought  to  be 
adopted.  That  does  not  mean,  however,  that 
the  subject  should  not  be  carefully  explored. 
It  may  weU  be  that  my  own  assessment 
which,  quite  frankly.  Is  not  based  upon  a 
detailed  analysis  or  study,  but  Is  Instead  sim- 
ply a  visceral  reaction  requires  re-examlna- 
tlon. 

There  are,  of  course,  some  variations  on 
the  type  of  government  corporation  that 
could  be  examined.  Including  the  hybrid 
Ooms&t  model.  But,  having  seen  the  Ten- 
nessee Valley  Authority  operation  from  the 
Inside  and  being  somewhat  familiar  with  the 
Bonneville  Power  Administration.  I  strongly 
prefer  the  wholly  owned  government  ap- 
proach. 

The  Comsat  public -private  arrangement.  In 
large  part,  flowed  from  the  fact  that  tradi- 
tionally the  United  States  Government  had. 
unlike  the  energy  fleld.  not  been  engaged  In 
such  activities  on  any  major  operating  scale. 
Purthermore.  Comsat  was  going  Into  a  new 
fleld.  satellite  communications,  whereas  the 
Federal  OU  and  Oas  Corporation  would 
merely  take  up  its  duties  and  activities  along- 
side  existing    privately-owned    corporations. 

ASCtrMKNTS    STn»PO«TrNC    THK    rXOEHAL 
CORPORATION 

No  one  can  be  sure  today  how  long  our 
critical  energy  deficit  situation  will  last — 
In  fact.  It  may  be  with  us  for  decades.  In  such 
circumstances,  there  should  be  In  the  very 
Important  area  of  activity  that  Includes  ex- 
ploring for  oil  and  gas.  developing  the  fields 
and  producing  those  vital  petroleum  products 
an  Institution  that  Is  motivated  by  meet- 
ing national  needs,  not  by  the  primary  or 
sole  goal  of  maximum  profits.  There  is  noth- 
ing Inherently  wrong  or  Improper  about  the 
profit  Incentive,  but  where  the  product  or 
commodity  involved  is  as  essential  to  na- 
tional health,  well-being  and  security  as  en- 
ergy, at  least  a  portion  of  the  national  effort 
ought  to  be  driven  by  the  objective  of  meet- 
ing the  security,  personal,  commercial  and 
industrial  needs  of  this  country. 

We  have  seen  Just  this  year  that  a  volun- 
tary fuels  allocation  program  will  not  work, 
primarily  because  It  runs  head-on  Into  the 
profit  picture.  Who  can  fall  to  understand 
why  the  management  of  a  private  corpora- 
tion would  refuse  on  a  voluntary  basis  to 
sell  Its  product  for  a  higher  public  purpose, 
for  example,  bus  fuel  for  city  bus  systems, 
at  a  price  lower  than  It  can  get  for  that  same 
basic  fuel  from  homeowners  who  need  the 
product  for  home  heating.  At  this  very  min- 
ute the  Administration  is  arguing  that  we 
must  let  the  price  of  heating  fuel  go  up 
so  that  Integrated  petroleum  companies  will 
change  their  refinery  mix  so  that  less  gaso- 
line will  be  made  from  the  limited  crude 
and  instead  those  volumes  will  be  diverted 
Into  heating  and  residual  oil.  I  simply  can- 
not understand  why  the  President  is  un- 
willing to  exercise  his  existing  statutory  au- 
thority to  require  that  shift  If  the  Oovem- 
ment   believes   it   should    be   done. 

The  Oovernment  has  made  royalty  oils 
from  off-shore  Federal  l^nds  available  to 
Independent  refiners  In  small  quantities.  I 
applaud  that  action,  but  believe  the  Admin- 
istration should  go  much  further.  Addition- 
ally, as  Indicated,  there  should  be  a  signif- 
icant volume  of  pstroleum  under  the  control 


of  the  Federal  Oil  and  Gas  CorpK>ratlon  to  be 
used  In  a  manner  deemed  by  the  Oovern- 
ment to  be  l)est  suited  to  meet  national 
needs. 

So  far  as  I  know,  there  Is  no  major  Indus- 
trialized nation  in  the  world,  other  than  the 
United  Statss,  that  leaves  the  entire  han- 
dling of  petroleum  and  petroleum  products 
to  privately-owned  corporations,  where  man- 
agement must  be  responsive  to  stockholder, 
as  distinguished  from  national  priorities. 

With  regard  to  environmental  concerns, 
we  find  ourselves  forced  to  delay  meeting 
established  environmental  goals.  It  has  to  be 
done,  and  hopefully  on  the  most  acceptable 
terms.  But  the  Federal  Corporation  could 
help  reassure,  not  only  those  who  ctJl  them- 
selves environmentalists  and  ecologlsts  but 
all  citizens,  on  environmental  protection  be- 
cause the  Corporation  would  have  Imposed 
on  it  the  statutory  burden  of  proceeding  by 
using  the  most  advanced  and  effective  tech- 
niques to  protect  the  environment  that  are 
known  and  available.  Purthermore,  It  would 
be  enjoined  to  develc^  new  methods  with 
such  a  goal  In  mind.  I  believe  we  are  to 
step  up  drilling  In  offshore  areas,  and  pos- 
sibly in  the  Atlantic  and  the  Pacific  Oceans. 
Citizens,  especially  those  living  In  coastal 
areas,  should  be  somewhat  more  confident 
In  activities  undertaken  by  a  government 
corporation  rather  than  by  companies  whose 
primary  goal  is  money-making.  Under  proper 
leadership.  I  can  see  the  Federal  Corporation 
challenging  Its  sister  corporations  on  the 
environmental  fronts  and,  frankly,  it's  an 
app>eallng  sight. 

One  of  the  greatest  frustrations  of  govern- 
ment la  Its  Inability  to  obtain  comprehen- 
sive and  accurate  data  from  the  petroleum 
Industry.  There  perhaps  are  valid  reasons 
such  as  the  unwillingness  of  one  company  to 
let  Its  counterparts  know  what  data  and 
Information  It  p>ossesses  for  business  reasons. 
But  that  reaaon  must  be  weighed  against 
others.  I  believe  the  public's  need  to  know 
what  Is  going  on — and.  of  course,  that  Is  true 
also  for  Oovernment — Is  paramount  to  prl- 
\-ate  business  requirements. 

Surely  the  costs  of  production:  the  reserves, 
proved  and  potential:  and  everything  else 
about  the  Federal  Corporations  activities 
should  and  would  be  public  Information.  If 
It  discovers  a  safer  way  environmentally  to 
drill  wells  aiKl  handle  petroleum,  that  In- 
formation should  be  made  available  to  all. 
not  treated  as  a  private  patent  upon  which 
huge  profits  could  be  realized. 

This  Nation  has  long  accepted  the  principle 
that  It  should  hold  petroleum  reserves  for 
military  defense  purposes.  Our  new  experi- 
ence with  an  effective  oil  embargo  by  some 
Middle  Eastern  oil  producing  companies 
surely  has  taught  us  that  we  should  push 
that  concept  further.  Thus,  an  additional 
benefit  of  having  a  Federal  Corporation 
would  be  Its  ability  to  hold  proven  resei^ee 
of  oil  and  gas  in  sufficient  quantities  to  de- 
crease our  dependence  on  foreign  nations 
who  today  hold  us  almost  in  the  palm  of 
their  hands  despite  the  fact  that  a  compara- 
tively small  fraction  of  our  total  needs  are 
met  by  their  oU.  It  would  be  unfair  to  ask 
a  private  corporation  to  sit  on  reserves  and 
perhaps  lose  substantial  markets  or  profits 
to  meet  some  possible  future  need.  It  would 
not,  however,  be  unfair  to  ask  a  government 
agency  to  do  that  since,  as  I  conceive  it.  that 
would  be  one  of  the  principal  objectives  of 
such  a  corporation.  Wouldn't  It  be  comfort- 
ing today  If  the  Federal  Oil  and  Oas  Corpora- 
tion had  available  for  this  country  petroleum 
reserves  It  had  already  discovered  and  which 
were  capable  of  being  fed  Into  the  market  to 
meet  any  deficiency. 

Many  of  us  have  wrung  our  hands  over  the 
independent  refiners  and  marketers  of  pstro- 
leum producu  which,  until  now,  have  play«d 
a  constructive  role  In  the  pricing  structure  of 
petroleum  markets.  TTiouaands  of  gasoline 
sutlons  have  gone  out  of  business  In  1873, 


and  many  lndej>endeEt  .-eeners  a--e  barely 
hanging  on.  The  Federa:  Corporation  wc-.i:d 
be  required  to  aUtxAte  its  crude  oU  In  a  pat- 
tern that  would  ens.i.'-e  that  a  fair  share 
would  go  to  the  lndependent.E  Things  mav 
never  be  the  same  in  the  petroleum  buslneas 
m  this  country-,  but  we  ought  to  take  meas- 
ures we  believe  to  be  protective  of  the  public 
Interest  and  protecting  the  independent  re- 
finers and  marketers  Is  one  of  those  objec- 
tives we  ahould  articulate  and  attempt  to 
achieve. 

Integrated  petroleum  companies  have  a 
hard  time  voluntarily  helping  the  Independ- 
ents whom  they  regard  as  competitors.  As 
one  executive  told  me,  "there's  no  place  In 
our  corporate  charter  the  Constitution,  the 
law,  or  the  Bible  where  It  says  we  majors 
must  protect  and  preserve  our  competitors." 
He's  probably  right,  but  I  beUeve  the  Con- 
gress ought  to  exercise  Its  abuity  to  Changs 
circumstances  so  that  the  naajors'  competi- 
tors will  be  able  to  stay  in  btislness  and 
provide  some  price  protection. 

It  is  not  dlffictilt  to  predict  opposition  to 
the  proposal  from  the  petroleum  Industry. 
But  one  would  think  the  Industry  woiUd 
welcome  the  competltton,  the  opporttmlty  to 
demonstrate  Its  capacity  for  doing  a  better 
Job  than  some  run-down,  inefficient  pjvern- 
ment  agency  beset  with  red  tape  and  other 
bureaucratic  deficiencies  In  fact  there  are 
some  proponents  of  the  government  corpo- 
ration plan  who  believe  Its  most  appealing 
feature  is  the  competitive  spur  it  would  give 
to  the  industry. 

OBJSCnONS   TO   TH«   PROPOSAL 

The  Ides  has  been  discussed  suifflcienUy  In 
the  recent  past  to  have  elicited  some  criticism 
and  some  questions  about  It.  I  think  It  would 
be  useful  to  try  to  focus  on  some  of  thoae 
more  important  points  and  to  re«x>nd  to 
them. 

1.  The  inefficiency  of  government  corpo- 
rations generally — Critics  fr»quenUy  ask 
whether  the  Postal  Service  or  the  Aff.trak 
experiences  warrant  trying  to  create  yet  a:,- 
other  government  corporation  to  undertake 
responsibilities  traditionally  performed  by 
private  corporations.  It  seems  to  me  that 
Amtrak  may.  Indeed,  prove  to  be  a  very 
worthwhUe  Invention  in  light  of  the  sharply 
Increased  passenger  traffic  resulting  from  our 
awareness  of  our  reaction  to  the  energy 
shortages.  The  VS.  Postal  Service  is  a  very 
new  instrumentality,  and  I  am  not  aware  of 
any  private  counterpart  that  provides  a  good 
comparison. 

But  even  if  these  particular  lllustraUons 
are  not  able  to  stand  on  their  own  two 
feet — and  I  do  not  know  that  is  the  case— 
I  would  prefer  to  look  to  the  Tennessee  Valley 
Authority  as  a  closer  analogy.  T\"A  was  bom 
In  controversy  and  Is  not  totally  free  of  It 
today.  But  there  Is  no  longer  anv  dispute 
over  Its  electric  generating  operations.  It  is 
among  the  leaders  in  the  country  and  has 
worked  In  harmony  with  prlvatelv-ownsd 
electric  utUltles,  with  municipally  and  co- 
operatively-owned electric  generaung.  dls- 
trlbuUng  and  transmitting  svstems.  The 
Bonneville  Power  Administration  also  pro- 
vides an  example  of  efficient  operations  In 
the  energy  field  by  a  government  agency.  I 
am  confident  that  with  the  right  manage- 
ment and  support  by  the  Admlnistrauon  and 
the  people  of  this  cotintry.  a  government  cor- 
poration could  be  developed  which  would  be 
as  efficient  and  as  successful  in  its  operations 
as  TVA  and  Bonneville. 

2.  The  inttbxlity  lo  obtain  necessary  qtuUi- 
fied  personnel— Tbt  argument  that  says 
there  are  only  a  limited  number  of  geologists, 
engineers  and  other  technical  competence 
and  that  a  government -owned  corporation 
would  only  drain  off  sucb  talent  from  private 
corporations  thereby  producing  no  net  bene- 
fit seems  to  me  to  Indtcats  little  confidence 
In  the  people  in  the  petrolsum  Industrv  in.d 
In  our  educational  UwUtuOons.  Such  an 
argument  is  applicable  to  any  new  develop- 


4-^730 


CONGRfNNlONAL  RECORD  —  SENATE 


ment  and  misses  the  point  completely  The 
purpose  of  setUng  up  the  government-owned 
corporation  ts  to  establish  a  corporate  mech- 
anism where  the  motivation  and  the  thrust 
U  keyed  to  national  needs  I  don't  know 
how  many  major  league  basebaU  teams  that 
were  •expanded"  teams  have  managed  to 
win  league  pennants  or  the  World  Series,  but 
the  notion  that  things  ought  to  stay  the 
way  they  are  simply  because  that  u  the  way 
they  are.  wont  do  the  trick  Referring  again 
to  the  TVA  analogy.  It  somehow  was  able  to 
attract  talent  to  it  without  disrupting  other 
uUUtlea  that  had  to  give  up  some  of  their 
trained  personnel.  Moreover.  I  would  expect 
that  our  educational  institutions  win  re- 
spond to  the  current  energy  crisis  as  It  did 
to  the  sputnik-space  challenge  In  the  50'8 
and  8O3  by  emphasizing  the  development  of 
energy  oriented  scientists  and  technicians. 
It  may  also  be  asked  how  an  Industry  that 
has  not  been  able  to  produce  all  of  the  oU 
and  gas  that  Is  needed  will  be  able  to  get  by 
with  only  the  sclentlflc  and  technical  talent 
It  presently  possesses. 

3.  This  is  the  firtt  step  to  nationalizing  the 
petroleum  industry— tfot  only  la  it  clear  from 
the  language  of  Senator  Stevensons  pro- 
posal that  this  is  not  the  case.  It  Is  my  view 
and.  so  far  as  I  know,  the  view  of  every 
other  Interested  participant  in  energy  policy 
debates  that  nationalization  of  the  industry 
is  not  a  desirable  alternative.  Certainly  it  Is 
not  a  practical  political  reality  TVA  wa.s 
similarly  hailed  as  the  beginning  of  the  end 
of  the  private  electric  utility  Industry  in  the 
1930s  and  It,  as  well  as  the  BonnevUle  Power 
Administration,  has  demonstrated  that  gov- 
ernmental activity  in  an  energy  Held  need 
not  and  has  not  had  the  effect  of  national- 
ization. Nationalization  is  an  understand- 
able concern  of  citizens  In  this  country,  and 
I  assume  that  no  such  step  would  ever  be 
taken  without  public  awareness  and.  Indeed, 
without  public  clamor  for  it.  I  do  not  detect 
that  mood  today  nor  do  I  foresee  it  for  the 
future.  I  think  it  is  a  specious  argument, 
and  I  hope  that  it  will  not  be  used  to  divert 
attention  from  serious  discussion  of  the 
merits  of  the  Federal  OU  and  Gas  Corpora- 
tion propKJSil. 

4.  The  incomparability  of  data — Although 
the  Federal  Corpwratlon  would  operate  on  a 
basis  somewhat  different  from  that  of  the 
private  segment  of  the  Industry,  there  are 
accounting  techniques  for  taking  Into  ac- 
count the  differences  It  should  not  be  very 
dlfllcult  to  separate  the  various  components 
of  totAl  production  costs  to  provide  com- 
parabinty  with  privately-owned  companies 
Most  importantly,  the  public  and  the  govern- 
ment would  begin  to  acctmiulate  informa- 
tion and  data  capable  erf  being  analyzed  and 
critiqued  Whether  or  not  the  •"yardstick" 
would  be  36  ■.  35-  or  37".  at  least  we  would 
have  the  beginning  of  a  measuring  device 

5.  It  tcowM  take  a  considerable  period  0/ 
tune  for  the  netc  corporation  to  develop  the 
expertise  and  to  have  a  sufficient  petroleum 
supply  to  he  icorthvhiU—Tbe  length  of  time 
to  get  started  and  to  be  able  to  make  a 
significant  contribution  will  depend  upon 
who  Is  selected  by  the  President  to  run  the 
corporation  and  a  host  of  other  variables. 
One  thing  is  certain,  however,  and  that  is 
that  the  earlier  the  corporation  is  created, 
the  earlier  it  wUl  be  able  to  make  a  contri- 
bution to  the  consujners  of  this  country. 

Undoubtedly,  there  are  other  questions  and 
criticisms  that  will  be  leveled  at  the  proposal. 
This  Committee  is  capable  of  receiving  all 
qneations.  criticisms  and  complaints  and  In 
evaluating  them.  I  am  confident  there  an 
satisfactory  responses  The  basis  Idea  Is  what 
ought  to  be  tested  and  discussed  and  these 
flxst  hearings  provide  the  appropriat*  op- 
portunity to  do  so 

COKCXtJUOl* 

The  consumers  of  the  United  States  are 
ffcclng  a  very  bleak  period.  Tlie  President,  hta 


December  20,  1973 


Administration  and  the  Industry  have  asked 
that  the  consumers  tighten  their  energy  belts, 
delay  achieving  environmental  g<»la  and  t>e 
prepared  to  pay  greaUy  increased  cosu  for 
their  fuels  and  energy.  In  our  view,  this  sim- 
ply Is  not  good  enough.  Oongrees  has  a  solemn 
obligation  to  prot«ct  the  consumers  of  this 
country  and  one  of  the  moat  direct  and  hope- 
ful approaches  is  through  a  government  cor- 
poration that  wUl  make  avaUable  to  people 
in  this  country  the  oU  and  gas  deposlte  which 
they  own  We  have  not  done  a  very  good  Job 
In  managing  our  petroleum  deposits  In  this 
country — and  that  is  a  crltlcJam  that  reaches 
across  party  lines  We  can  no  longer  permit 
ourselves  to  be  totally  dependent  for  basic 
energy  supplies  on  an  Industry  that  is  pri- 
vately owned  and  which  has  failed  to  develop 
our  resources  on  a  basis  that  meeU  national 
needs  and  provides  protection  for  the  con- 
sumers of  this  country. 

I  do  not  believe  that  anyone  can  claim 
that  the  creation  of  a  Federal  Oil  and  Gas 
Corporation  is  that  single  dramaUc  solution 
that  wUl  handle  this  Nation^s  energy  needs 
for  the  next  20  years.  I  do  contend  that  It 
Is  a  minimal  step  that  should  and  even  must 
be  taken  and  without  delay.  I  sincerely  t)e- 
Ueve  that  if  this  step  Is  not  taken,  there  wUl 
be  Increasing  pressures  from  across  this  coun- 
try, from  consumers,  from  government  at 
various  levels  and  from  industries  which 
require  energy  for  more  drastic  steps.  This  Is 
a  moderate  proposal  that  deserves  prompt 
attention  and  action. 

APPENDIX      a:       MEMBERSHn>      OF      THX      CrnOtCT 
POLICT    TASK    rORCX 

American  Public  Oas  Association. 

American  Public  Power  Association 

Consumers  Educatlo"  and  Protective  Asso- 
ciation International. 

Consumers  Union. 

Cooperative  League  of  the  United  States. 

Industrial  Unioti  Department  of  AFL-CIO. 

International  Brotherhood  of  Electrical 
Workers 

Kansas  Municipal  Utilities. 

Lincoln.  Nebraska,  City  of. 

National  Farmers  Organization. 

National  Farmers  Union 

National  League  of  Cities. 

National  Rural  Electric  Cooperative  Asso- 
ciation. 

New  Populist  Action. 

Northeast  Public  Power  Association. 

Northwest  Public  Power  Association. 

OU.  Chemical  &  Atomic  Workers  Inter- 
national Union. 

Service  Employees  International  Union. 

Tennessee  Valley  PubUc  Power  Association 

United  Auto  Workers. 

United  SUtes  Conference  of  Mayors. 

Wisconsin  State  AFL-CTO. 


EFFECTS  OF  ENERGY  CONSERVA- 
TION ON  THE  ELDERLY  AND  THE 
HANDICAPPED 

Mr.  WILLIAMS.  Mr.  President.  I  am 
greatly  concerned  alwut  the  effect  that 
current  legislation  to  ease  the  energy 
crisis  may  have  on  our  Nation's  elderly 
and  handicapped. 

All  too  often  when  the  Congress  passes 
far-reaching,  emergency-type  legisla- 
tion, the  specific  needs  and  problems  of 
the  elderly  and  the  handicapped  are 
overlooked  I  am  anxious  that  this  com- 
mon oversight  be  avoided  as  we  search 
for  measures  to  counteract  the  Impend- 
ing shortages. 

Both  the  Senate  and  the  House  have 
passed  major  bills  to  deal  with  the  energy 
crisis  <  8  2589  and  H  R.  1 1882 ) .  The  final 
product  from  the  conference  committee 
Is  not  yet  determined,  but  I  am  particu- 
larly concerned  about  how  the  eventual 


emergency  powers  will  be  Implemented. 
Many  specific  orders  and  decisions  In  this 
type  of  emergency  legislation  must,  with 
good  reason,  be  left  to  the  administra- 
tion. The  potential  for  unnecessary  hard- 
ship to  elderly  and  handicapped  persons 
needs  to  be  recognized. 

I  am  calling  out  for  caution  and  care 
as  various  actions  are  made  and  as  spe- 
cific rulings  are  decided.  Those  charged 
with  implementing  any  new  legislation 
dealing  with  the  energy  crisis  must  not 
forget  that  there  are  different  groups  in 
the  population,  and  that  some  actions 
will  harm  certain  groups  more  than 
others. 

Strong  concern  has  been  conveyed  to 
me  about  the  possible  ill  effects  of  pro- 
posed legislation  on  the  elderly  and 
handicapped. 

For  example,  the  following  letter  was 
sent  to  the  Special  Committee  on  Aging 
enumerating  several  concerns  with  re- 
gard to  the  elderly  and  handicapped  and 
the  possible  hardships  they  could  experi- 
ence if  steps  are  not  carefully  taken  to 
protect  their  needs.  This  letter  Is  from 
James  J.  Pennestrl.  ♦he  director  of  the 
New  Jersey  Office  on  Aging. 

Mr.  President,  I  ask  unanimous  con- 
sent to  have  the  letter  printed  in  the 
Record. 

There  being  no  objection,  the  letter 
was  ordered  to  be  printed  In  the  R«cord. 
as  follows: 

Statk  of  Nrw  JxRsrr. 

DKPABTleZNT  OF  COMMUNrTT  AFFAIM. 

November  9,  1973. 

We  Ui  this  agency  are  concerned,  and  have 
received  expressions  of  concern  from  several 
areas,  that  the  energy-conserving  program 
called  for  by  the  President  might  weU  cause 
further  hardships  for  the  elderly. 

Specifically,  we  could  hope  that  any  legls- 
Utlon  considered  would  exempt  people  age 
60  and  older  from  the  following: 

1  Maintaining  temperatures  in  living  quar- 
ters at  a  day-time  average  of  68  and  lower 
at  night.  I  believe  the  reason  for  such  an  ex- 
emption Is  self-evident. 

3  Blocking  off  certain  city  aecton  to  cars 
with  only  one  occupant  Obviously,  this  could 
curtaU  essential  travel  to  doctors  offices 
clinics,  meetings,  recreational  facilities,  etc.. 
for  elderly  singles  unless  the  "blocking  off" 
U  limited  to  peak  traffic  hours. 

3.  Preferential  parking  for  car  pools  This 
could  be  a  serious  handicap  for  the  older 
worker  who  Is  unable,  by  reason  of  physical 
problems  associated  with  the  aging  process 
to  maUitatn  a  rigid  schedule  based  on  the 
considerations  of  other  people. 

4  High  parking  rates.  This  would  have  an 
adverse  effect  on  retirees  living  on  fixed  and 
Inadequate  income  as  well  as  on  older  work- 
ers who  are  husbanding  their  resources  in 
preparation  for  retirement  and  the  Income 
reduction  attached  to  It. 

These  points,  of  course,  woxild  also  apply 
to  the  physically  handicapped. 

Any  law  which  Is  enacted  should  not  over- 
look the  problems  of  the  elderly  and  the 
handicapped,  as  Is  so  often  the  case.  Some 
provision  for  exemption  should  be  Included 
I  hope  you  will  agree,  and  that  you  wU]  bring 
this  to  the  attention  of  the  Special  Senate 
Committee  on  Aging  in  time  for  amending 
as  necessary  the  legislation  which  the  Senate 
is  going  to  consider  very  soon. 

As  always,  your  usual  valuable  cooperation 
wUl  be  apprecUted. 
Sincerely. 

Jamxs  J   PKTnrEsmi.  Director. 

Mr.    WILLIAMS.    Mr.    President.    In 
short,  I  am  asking  that  those  persons 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42731 


who  are  charged  with  the  responsibility 
of  drafting  and  implementing  the  needed 
emergency  measures  which  are  to  come, 
take  careful  account  of  the  effect  their 
decisions  will  have  on  the  aged  Eind 
handicapped.  Too  often  these  special 
considerations  are  ignored. 


SENATOR  ROTH  S  RECOGNITION  OF 
THE  ENERGY  CRISIS  IN  MAY 

Mr.  DOMENICI.  Mr.  President,  it  is 
my  practice  to  acquire  and  keep  on  file 
all  Information  and  points  of  view  re- 
lating to  Importai  t  national  issues,  as  I 
imagine  Is  the  practice  of  all  my  col- 
leagues. 

When  reviewing  that  file  recently  I  was 
struck  by  the  fact  that  the  distinguished 
Senator  from  Delaware  <Mr.  Roth)  gave 
clear  recognition  of  the  gravity  of  the 
Impending  energy  crisis,  and  the  Inter- 
relation of  various  contributing  factors, 
in  a  speech  given  way  back  in  May  of 
this  year. 

Senator  Roth's  speech  contained  many 
points  that  ha\'e  proven  to  be  extremely 
accurate  find  worthy  of  our  considera- 
tion— then  and  now.  For  that  reason.  I 
would  call  the  attention  of  my  colleagues 
to  Senator  Roth's  remarkable  speech  of 
May  18,  1973,  and  accordingly,  I  request 
unanimous  consent  that  that  speech  be 
printed  in  the  Record. 

There  being  no  objection,  the  speech 
was  ordered  to  be  printed  In  the  Record, 
as  follows: 

Energy  Ain>  thx  Environment 
(By  Senator  Bnx  Roth) 

It  gives  me  great  pleasure  to  welcome  you 
to  this  yearns  Youth  Leadership  Conference. 
You  have  been  chosen  for  your  Interest  in 
"energy  and  the  environment,"  and,  I  trust 
we  have  devised  a  program  and  Invited  a 
group  of  experts  that  will  sufficiently  chal- 
lenge your  thinking  on  these  topics  and 
provide  you  with  new  insights  Into  one  of 
today's  most  complicated  set  of  Issues. 

I  am  not  an  expert  In  this  field  and  don't 
pretend  to  be.  What  I  want  to  do,  there- 
fore, in  opening  this  conference  Is  to  discuss 
In  a  general  way  in  the  manner  In  which  en- 
vironmental and  energy  Issues  appear  to  be 
Interrelated  to  each  other  and  related  to 
other  current  problems  as  well.  The  im- 
portant thing  at  the  outset  is  to  try  to  get 
an  overview  of  the  issues  involved  so  that 
when  you  break  up  into  more  specialized 
seminar  groups,  you  won't  be  like  the 
proverbial  bllndmen  who  got  Into  a  violent 
argument  over  what  an  elephant  muit  ;ook 
like.  As  you  may  recall,  the  first  bllndman 
felt  the  elephant's  leg  and  said.  "An  elephant 
Is  like  a  tree  trunk;  •'  the  second  bllndman  hit 
the  elephant's  side  and  said.  "No,  an  elephaut 
Is  like  a  brick  wall;"  and  a  third  bllndman, 
having  touched  the  elephants  trunk  said. 
"Both  of  you  are  wrong,  an  elephant  is  like 
a  python:"  and  so  on.  Each  had  felt  a  dif- 
ferent part,  and  none  had  seen  the  whole. 

IVxlay,  It  Is  commonly  assumed  that  energy 
concerns  and  environmental  concerns  are  In 
almost  total  opposition.  That  Is,  If  we  want 
to  solve  our  energy  problems,  we  are  golnjj  to 
have  to  relax  our  environmental  protection 
laws,  or  If  we  are  going  to  clean  up  our  en- 
vironment, we  are  going  to  have  to  accept 
gasoline  shortages,  healing  oil  shortages,  or 
brown-outs.  Many  in  the  energy  industries 
point  out  that  antt-poUutlon  devices  on  au- 
tomobUes  requiring  more  gasoline  consump- 
tion, regulations  governing  air  and  water 
quality  controls,  and  environmentalist- 
Inspired  opposition   to  the  construction  of 


new  refljaenes,  nuclear  power  plants,  and 
superporta  have  contributed  to  what  is  now 
popularly  caUed  "the  energy  crisis."  On  the 
other  hand,  environmentalists  note  that  our 
love  affair  with  the  big  automoDUe.  the 
emissions  from  our  refineries  and  power 
plants,  and  the  oil  spUls  have  aU  contributed 
to  what  might  be  called  the  "environmental 
crisis." 

Most  of  us,  however,  would  be  unwilling 
to  make  an  absolute  choice  between  energy 
needs  and  environmental  protection;  we  want 
both  sufficient  energy  to  maintain  the  stand- 
ard of  living  that  we  have  worked  so  hard  to 
achieve  and  a  clean,  healthy  environment. 
Both  are  part  of  good  living,  and  I.  for  one, 
think  that  both  can  be  obtained,  but  w© 
have  to  realize  that  to  do  so  we  will  have 
to  make  sacrifices.  It  will  undoubtedly  re- 
quire large  sums  of  money  to  develop  new 
sources  of  energy,  as  well  as  to  clean  up 
the  environment.  Later.  I  will  return  to  this 
theme  but.  first  it  is  important  to  explore 
'the  energy  crisis"  in  some  depth  and  try  to 
determine  what  it  is  and  how  we  should 
react  to  it. 

One  thing  which  I  have  learned  In  my  years 
as  a  public  servant  is  that  there  are  always 
a  few  who  have  simple  solutions  or  explana- 
tions for  even  the  most  complex  problems. 
In  the  case  of  the  energy  crisis,  the  simple 
explanation  Is  that  the  shortages  of  gas  and 
heating  oil  are  merely  staked  by  the  oU  and 
gas  Industries  to  get  government  subsidies, 
tax  breaks,  and  higher  prices  and  profits. 
This  particular  explanation  reminds  me  of 
similarly  simple  ones  which  sought  to  blame 
all  of  America's  Ills  on  a  communist  con- 
spiracy or  on  our  Uivolvement  in  Southeast 
Asia.  At  the  same  time,  it  is  important  for 
us  to  recognize  that  the  energy  industries 
will  try  to  use  the  shortages  to  promote  their 
own  particular  points  of  view.  The  problem 
we  face  is  to  sort  out  the  reality  from  the 
rhetoric  and  to  discriminate  between  solu- 
tions that  are  for  the  common  good  as  op- 
posed to  those  that  would  benefit  particular 
Interest  groups. 

It  Is  one  of  the  realities  of  the  energy  crisis 
that  our  supply  of  energy  has  Increased 
rapidly  every  year.  Our  demand  for  energv. 
however,  has  mcreased  at  an  even  faster 
pace.  Americans  now  make  greater  use  of  cars 
as  opposed  to  buses,  and  cars  require  4  times 
as  much  energy  per  person  as  buses  Ameri- 
cans now  depend  more  upon  airplanes  than 
upon  trains,  and  planes  require  an  average  of 
9  times  as  much  energy  per  person  as  trains 
for  the  same  distance.  In  1960.  only  16^,  of 
American  homes  were  alr-condltloned:  now 
45 T,  are.  Then,  only  7%  of  our  cars  had  alr- 
condltioners,  and  now  61<7r  do.  In  1955.  the 
average  American  used  the  energy  equivalent 
of  42  barrels  of  oU  for  a  year:  now  he  uses 
an  equivalent  of  61  barrels;  by  1986,  it  Is 
projected  to  be  nearly  100  barrels 

A  second  reality  ts  that  our  wav  of  life  and 
economic  system  are  so  buUt  upon  energy- 
consuming  machines  that  energy  shortages 
and  resultuig  higher  prices  would  affect  aU 
of  us  and  In  many  different  ways.  Everyone, 
for  example,  is  concerned  about  food  prices, 
and  one  way  to  bring  prices  down  is  for 
farmers  to  plant  more  acreage  lu  food  and 
feed  grains.  But.  if  the  farmers  are  limited 
to  the  gasoline  supply  they  had  last  vear,  or 
less,  they  will  not  be  able  to  plow  or  irrigate 
more  land.  If  there  are  widespread  shortages 
and  the  price  of  fuel  goes  up,  the  cost  of 
producing  Industrial  goods  will  go  up,  and 
this  cost  wUI  be  passed  on  to  the  consumer. 
The  cost  of  public  and  private  transporta- 
tion would  go  up,  the  cost  of  almost  every- 
thing would  Increase,  and  the  efforts  that 
have  been  made  to  try  to  control  Inflation 
would  become  further  unraveled.  Americans 
are  used  to  cheap  energy,  only  4''^  of  our 
entire  national  Income  Is  devoted  to  secur- 
ing our  energy  needs.  This  Is  very  likely  to 
go  up  and  each  of  us  will  have  to  reshuffle 


our  own  budgets  accordingly  to  reflect  hig^aer 
costs  of  Leatuig  our  homes,  getting  to  work 
and  school,  and  of  buying  food  and  other 
goods. 

A  third  reality  Is  that  the  energy  crisis  Is 
not  Just  an  American  problem;  It  is  a  prob- 
lem which  affects  our  relationship  with  the 
rest  of  the  world.  Some  of  you  will  be  exam- 
ining in  greater  detail  the  international  im- 
plications of  Increased  oU  demands.  But  you 
should  all  understand  that  there  appears  to 
be  no  alternative  In  the  short  run  to  the 
greater  importation  of  foreign  petroleum. 
We  have  only  8"::^  of  the  world's  proven  pe- 
troleum reserves,  but  we  consume  a  third  of 
all  the  world's  production.  Increasingly,  we 
are  looking  toward  the  Middle  East  and  In- 
donesia for  crude  oil  and  Algeria  and  the 
Soviet  Union  for  natural  gas. 

This  raises  a  host  of  problems.  Two  years 
ago.  for  the  first  time  in  more  than  eight 
decades,  the  United  States  had  a  balance  of 
trade  deficit.  We  are  trying  to  achieve  a  posi- 
tion of  surplus  again  by  devaluing  the  dol- 
lar and  taking  measures  to  Increase  our  ex- 
ports to  ot^er  countries,  but  these  efforts 
may  be  undermined  by  our  needs  for  such 
vast  amounts  of  oil.  We  may  have  a  $10  bil- 
lion dollar  trade  deficit  in  energy  alone  in 
1975.  and  this  could  double  by  1980  if  current 
trends  continue. 

What  makes  these  figures  so  large  Is  not 
Just  our  demands  alone — they  also  reflect 
the  higher  prices  that  foreign  supplying 
countries  are  charging  for  their  oil.  The 
Middle  Eastern  countries  and  other  oil  sup- 
pliers have  formed  an  organization  of  Pe- 
troleum Exporting  Countries  to  work  to- 
gether In  getting  more  money  for  their  oU. 
They  are  tough  bargamers.  and  they  make 
no  bones  about  what  they  want.  As  one 
Saudi  Arabian  government  minister  said  re- 
cently: "We  have  the  oil  they  need,  and  we 
are  going  to  be  very  rich."  At  the  same  time, 
the  VS..  Japan,  and  the  European  countries 
are  all  petroleum  short  and  all  are  offering 
higher  and  higher  prices  for  secure  supplies. 
If  we  are  going  to  keep  prices  within  a  rea- 
sonable range,  I  think  we  are  going  to  have 
to  work  very  closely  with  Japan  and  the 
European  countries  to  solve  the  common 
problem. 

Another  complication  is  that  the  Arab 
countries  have  so  few  p>eople.  they  dont 
know  what  to  do  with  all  the  money  they 
are  getting.  Like  the  Texas  oU  mlUlonalres, 
the  rich  Arabs  have  bought  Rolls-Royces  and 
Jewelry.  But  others  have  engaged  In  currency 
speculation  and  contributed  to  the  run  on 
the  dollar  that  caused  the  most  recent  de- 
valuation. StUl  others  have  loaned  money 
to  Egypt  for  mUltary  purchases,  or  like 
Lybia,  have  purchased  Jet  fighters,  thus  in- 
creasing tensions  In  the  Middle  East.  Many 
fesLT  that  If  we  become  too  dependent  on  the 
Middle  East  for  petroleum,  we  will  be  sub- 
ject to  blackmail  In  our  policy  of  supporting 
the  Independence  of  Israel.  But.  even  aside 
from  this  very  tmpK>rtant  consideration,  i^w 
we  afford  to  depend,  for  a  major  sourc«  of 
our  energy,  on  an  area  so  far  away,  so  po- 
litically unstable,  and  so  vulnerable  to  the 
Soviet  Union? 

This  leads  Into  another  aspect  of  the 
energy  crisis,  one  which  we  have  Included 
as  a  seminar  topic  because  it  so  vitally  affects 
our  home  state.  If  ever  Increasing  amounts 
of  foreign  oU  must  be  imp<wted.  how  are  our 
present  ports  going  to  handle  these  volumes 
and  the  huge  tankers  that  are  being  built, 
at  a  reasonable  cost  ajid  with  minimal  dam- 
age to  the  environment?  In  his  energy  mes- 
sage, the  President  said,  and  I  quote.  •The 
answer  to  this  problem  lies  in  deepwater 
ports  which  can  accommodate  those  large 
ships,  providing  Important  economic  advan- 
tages while  reducing  the  risks  of  collision 
and  grounding."  Various  government  spon- 
sored studies  hare  surveyed  the  possible  sites 
for  such  superports.  and  they  have  concluded 


42732 


CONGRESSIONAL  RECORD  —  SENATE 


U»»t  one  of  the  prime  sites  Ilea  In  the  ocean 
off  RebobeUi  Beacb. 

What  would  a  superport  mean  for  Dela- 
ware'' It  would  mean  that  our  amall  state 
with  lU  la  mile*  of  ocean  coaatllne  would  be 
assuming  the  major  share  of  the  environ- 
mental risk  for  oU  Imports  for  the  entire 
Bast  Coast  What  Is  less  understood  and  less 
appreciated  is  that  the  superport  wouJd  also 
have  a  tremendous  impact  on  the  future 
economic  development  of  our  State,  particu- 
larly Its  lower  two  counties  One  estimate  Is 
that  the  refineries,  the  petrochemical  plants 
and  the  related  Industries  that  would  be  es- 
Ubllsbed  adjacent  to  the  superport  would 
result  In  a  population  for  Kent  and  Sussex 
Counties  of  more  than  a  million  persons  by 
the  end  of  the  centiiry  This  would  be  more 
than  four  times  the  population  that  could  be 
expected  In  the  absence  of  a  superport. 

It  seems  to  me  that  Delawareans  should 
have  something  to  say  about  whether  we  are 
willing  to  accept  the  environmental  risks  and 
the  economic  growth  Involved,  and  therefore. 
I  Introduced  a  bill  that  would  give  each 
state's  legislature  a  veto  over  the  construc- 
Uon  of  a  superport  off  that  state's  coast.  I, 
for  one.  have  long  opposed  a  superport  be- 
ing located  in  or  near  Delaware  waters.  Tb 
me.  It  Is  Imperative  that  we  protect  and  con- 
serve these  shorelines  to  serve  as  vacation 
land  for  thousands  of  Americans. 

A  final  reality  that  I  want  to  touch  on  Is 
that  half  of  the  energy  we  produce  Is  wasted, 
either  by  Inefficient  machines.  Inefficient 
means  of  converting  and  transmitting  en- 
ergy, or  by  Improper  attention  to  energy 
conservation.  While  homes  and  industries 
are  relatively  efficient  users  of  energy,  two- 
thirds  of  our  potential  electric  energy  Is  lost 
In  the  conversion  and  the  transmission  proc- 
ess Three-fourths  of  the  energy  used  In  the 
transportation  sector  Is  wasted,  mainly  as 
heat  and  exhaust. 

Many  of  you  will  be  examining  energy  con- 
servaUon  In  greater  depth.  Improved  mass 
transporutlon  Is  certainly  one  means  of  con- 
eenring  energy  Recycling  Is  another,  because 
for  many  materials,  recycling  requires  only 
a  fraction  of  the  enenry  required  to  make  it 
In  the  first  place.  Better  means  of  Insulating 
homes  and  of  designing  factories  can  save 
heating  and  cooling  cosu.  Certainly,  energy 
conservation  is  an  area  that  merits  much 
greater  attention  because  It  Is  one  place 
where  energy  and  environmental  concerns 
do  not  clash,  but  instead  reinforce  each 
other. 

One  key  problem  In  this  area,  however.  Is  a 
psychological  one  Americans  are  used  to 
cheap  energy  and  plenty  of  It.  and  we  are 
not.  as  a  nation,  '"energy  conscious  "  How 
can  we  become  energy  conscious?  By  adver- 
tising on  radio,  television  and  road  signs, 
with  little  Jingles  or  messages  like  thoee  that 
tell  people  not  to  be  litter-bugs'"  Or.  wUl  we 
need  laws  requiring  people  to  bring  their 
•olid  waste  to  recycling  centers,  to  better  in- 
sulate their  homes,  or  to  only  use  their  alr- 
condltloners  on  days  when  the  temperature 
Is  more  than  85  degrees'* 

This  leads  me  to  the  question  of  how  we 
should  react  to  the  energy  crisis.  What  can 
we  do  to  ensure  the  continued  availability 
of  energy  and  still  continue  to  make  progress 
in  cleaning  up  the  environment •>  Someone 
has  suggested  that  we  ought  to  round  up 
Henry  Ford.  Ralph  Nader,  the  presidents  of 
aU  our  major  energy  Industries,  and  the 
presldenu  of  all  our  major  environmental 
groups,  lock  them  In  a  room  and  tell  them 
they  can't  come  out  until  they  have  devised 
a  common  solution  to  the  problem.  Even  if 
It  were  possible  to  do  this.  I  am  afraldy<we 
might  find  everyt)ody  torn  to  bits  when'we 
opened  the  door. 

On  the  more  serious  side,  there  have  t>een 
numerous  suggestions  to  increase  the  supply 
of  gas  and  oU.  For  example,  the  President's 
energy  message  suggested  the  foUowlng  end 
quota  restrictions  on  foreign  imports,  which 


has  now  been  done,  deregulate  the  wellhead 
price  of  natural  gas.  construct  the  Alaskan 
pipeline  to  bring  North  Slope  oU  to  the  con- 
tinental Umted  States,  and  accelerate  ex- 
ploiutlon  of  ootjtlnental  shelf  areas,  includ- 
ing the  Atlantic  continental  shelf,  a  topic 
which  some  of  you  will  look  into  in  one  of 
the  seminars. 

While  these  measures  might  help  In  the 
next  decade  or  so.  they  raise  Important  en- 
vironmental problems  and  can,  at  l)est.  only 
stave  off  the  day  when  we  will  not  have 
enough  foasUlaed  fuels— that  is.  oil  and  gB»— 
and  will  have  to  look  toward  other  sources 
of  energy. 

There  are  some,  and  I  am  one  of  them,  who 
believe  that  we  should  begin  now  to  work  on 
these  alternative  energy  sources  in  a  very 
serious  way.  What  we  need  Is  a  technological 
break-through,  and  our  chances  of  getting 
such  a  break-through.  In  time  to  avoid  a 
much  severe  energy  crunch,  are  greatly  en- 
hanced the  sooner  we  get  to  work.  To  date, 
the  government  has  been  engaged  In  a  major 
way  In  the  development  of  only  one  non- 
tradltlonal  energy  source — nuclear  energy, 
another  topic  which  some  of  you  will  discuss 
as  a  seminar. 

But.  there  are  many  other  posslbllltlee — 
for  example,  solar  energy,  geo-thermal 
energy,  coal  gasification,  the  use  of  tidal 
movements,  and  the  extraction  of  oil  from 
oil  shale.  Research  In  a  number  of  these 
areas  Is  already  underway  For  example,  for 
the  past  year  and  a  half,  the  Institute  of 
Energy  Conversion  at  the  University  of  Dela- 
ware, which  U  directed  by  one  of  our 
panelists  here  today.  Dr.  Karl  B«er.  has  been 
engaged  In  a  major  effort  to  develop  a  prac- 
tical system  for  solar  energy  use.  If  all  goes 
well,  solar  energy  could  begin  to  make  an 
impact  In  the  late  1970s  and  early  1980s 
In  supplying  the  energy  needs  of  private 
homes. 

For  most  of  the  alternative  energy  areas. 
It  Is  going  to  require  a  very  big  effort  to 
develop  the  needed  technology  and  to  avoid 
ecological  costs.  To  stimulate  such  an  effort. 
Senator  Henry  Jackson,  who  Is  Chairman 
of  the  Interior  Committee  and  Is  generally 
acknowledged  as  one  of  the  Senates  leading 
experts  on  energy  matters,  has  drafted  legis- 
lation that  would  initiate  a  national  effort  In 
developing  alternaUve  clean  energy  sources 
This  effort  would  be  slmUar  to  the  program 
that  got  men  to  the  moon  or  which,  during 
World  War  II.  developed  the  first  atomic 
bomb  I  8upp<Mt  such  an  effort  because  I 
feel  that  the  problem  that  Is  facing  us  Is 
similar  to  the  problem  we  perceived  after 
the  launching  of  Sputnik— It  Is  a  national 
problem  and  requires  full  resources  of  the 
Federal   Oovernment   to  overcome   it. 

Such  a  program  would  be  very  expensive 
Senator  Jackson  estimates  that  it  would  cost 
•20  billion  dollars  in  ten  years,  but  it  could 
weU  be  more  in  this  day  of  cost  over-runs 
and  rising  prices.  ThU  Is  where,  in  cloelng. 
I  want  to  return  to  the  theme  I  mentioned 
previously — that  we  can  work  toward  having 
both  adequate  energy  and  strong  envlron- 
m»ntal  protection— but  It  will  be  at  a  cost. 
One  of  the  difficult  questions  Is.  how  is  this 
research  going  to  be  financed? 

This  U  what  so  far  Is  left  out  of  Senator 
Jackson's  bill  His  present  bUl  does  not  pro- 
vide for  any  additional  revenues  to  finance 
the  energy  effort;  hence,  it  could  end  up  In- 
creasing the  national  debt  and  In  effect  be 
financed  by  Inflation,  Inflation  caused  by 
budget  deficits  is  a  back  door,  hidden  cost, 
but  it  Is  a  cost  nonetheless,  and  this  cost 
falls  most  heavily  on  the  poor  and  the  elder- 
ly, that  Is,  on  those  who  have  fixed  Incomes 
or  do  not  have  Interest-earning  savings. 

It  is  my  understanding  that  Senator  Jack- 
son intends  to  hold  hearings  on  the  question 
of  how  to  finance  such  an  ambitious  pro- 
gram. One  poMlbUlty  Is  that  there  could  be 
created  an  Energy  Research  and  Development 


December  20,  1973 


Trust  Fund.  The  Fund  could  be  used  to  pro- 
mote technological  developments  in  alterna- 
tive energy  sources  and  In  antl-pollutlon  de- 
vices   It  could  also  be  used  to  help  develop 
energy  saving  machines,  to  build  mor«  re- 
cycling centers  and  improve  recycling  tech- 
niques.  What  should  go  Into  the  Fund?  First 
of  all.  U  we  are  going  to  charge  fees  for  for- 
eign petroleum  imports,  these  fees  could  be 
applied  toward  energy  research.  They  won't 
amount  to  very  much  at  first — a  total  of  $178 
mUllon  doUars  In  Fiscal  Year  1975.  according 
to  the  Treasury  Department.  But.  by  Fiscal 
Year  1980.  the  take  will  have  increased  to  $1 2 
bUUon   dollars.   Secondly,   If  gasoline   prices 
are  going  to  go  up  because  of  shortages.  It 
has  been  suggested  that  part  of  the  Increased 
price  could  be  put  Into  an  Energy  Research 
and  Development  Trust  Fund.  No  one  knows 
yet  what  the  answer  is,  but  If  Congress  Is  to 
adopt  an  Intensive  energy  research  program, 
as  I  think  It  should.  It  also  must  wrestle  with 
the  problem  of  how  to  responsibly  finance  It. 
I  regret   that  I  cannot  tell   you   that   the 
energy  crisis  is  a  myth  or  that  all  environ- 
mental problems  will  be  solved  only  by  paw- 
ing  the   appropriate   laws.    It    is   important 
however,   to  recognize   most   of  life's  prob- 
lems— both  public  and  personal — are  not  so 
easy:  they  require  hard  thinking,  hard  work, 
and  often  hard-to-swallow  costs   When  Win- 
ston Churchill  accepted   the  charge  for  the 
British  war  effort  during  World  War  II.  he 
told   the   House   of   Commons   that    he   had 
"nothing  to  offer  but  blood,  toll,  tears,  and 
sweat."  Fortunately.  I  have  something  more 
to  offer  you  today— a  panel  of  experts  from 
Delaware    and    from    the    Federal    Oovern- 
ment—to  talk   to   you   with   greater   Insight 
and  from  a  greater  depth  of  knowledge  and 
experience  about  energy  and  environmental 
Issues    I  would  like  to  Introduce  them  now, 
and  then  you  can  separate  into  your  respec- 
tive morning  seminars 


THE  SOUTH  DAKOTA  SCHOOL 
LUNCH  PROGRAM 

Mr.  McGOVERN.  Mr.  Pre.<:ident,  the 
National  School  Lunch  Act  Is  one  of  our 
most  important  and  successful  Federal 
programs.  With  the  help  of  local.  State, 
and  Federal  money,  over  25  million 
schoolchildren  each  day  receive  a  nutri- 
tious meal  designed  to  meet  one-third 
of  their  recommended  dally  allowance. 
Educators  and  parents  have  praised  the 
efforts  of  Congress  in  this  area,  and  I 
am  proud  to  have  been  part  of  its  success. 

The  school  lunch  program  In  South 
Dakota  is  one  of  the  Nation's  best  Stu- 
dents, teachers,  and  administrators  work 
together  to  insure  its  success.  I  have  long 
felt  that  school  lunch  workers  do  not 
receive  enough  credit  for  the  excellent 
services  they  perform. 

It  Is  a  pleasure  to  insert  Into  the 
Rkcord  an  article  published  In  the  Sioux 
Palls  Argus-Leader  on  Sunday.  Decem- 
ber 16.  1973,  concerning  the  school  lunch 
program  in  that  city.  The  Ingenuity  and 
ability  of  those  involved  in  the  produc- 
tion of  meals  there  Ls  clearlv  remarkable 
After  reading  the  article,  it  is  clear  to  me 
why  their  program  enjoys  such  great 
success.  I  ask  unanimous  consent  that 
the  article  may  be  printed  in  the  Ricord. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record. 
as  follows: 
A    Look     at    thi    Opxration    That    FKkdb 

LtTNCmS  TO    12.000  STTTDn^TS 

(By  Mary  Edman) 
Try  this  on  for  sUe 
Brown  2.100  pounds  of  ground   beef,  add 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42733 


9eV4  gallons  of  concentrated  tomato  Juice, 
23^  gallons  of  barbecue  sauce,  671',  quarts 
of  chopped  onions,  32  Vi  cups  of  Worcester- 
shire sauce.  37 '/4  cups  of  salt,  30  tablespoons 
of  pepper  and  30  quarts  or  more  of  flour,  and 
simmer. 

Know  what  you've  got?  Enough  barbecue 
to  fill  12,000  buns  and  feed  nearly  12,000 
students  one  of  their  favorite  meal  Items. 

Barbecues  are  Just  one  of  the  Items  In- 
cluded on  some  school  menus  next  week. 
Favorite  foods,  Christmas  cookies.  Ice  cream 
b&rs  and  gaily  decorated  gelatin  molds  are 
the  cafeterias'  ways  of  wishing  students  a 
"Merry  Christmas"  during  the  week  prior  to 
vacation. 

BEHUfD  TKK   SCXNCS 

Special  holiday  menus  have  been  planned 
several  weeks  In  advance  by  public  and  paro- 
chial school  managers.  However,  meal  prep- 
aration progresses  on  a  day-to-day  basis  for 
the  108  regular  cafeteria  personnel  employed 
by  the  schools. 

Mrs.  Angela  Joha;^en.  cafeteria  nmnager  of 
lunch  programs  In  Sioux  Falls  public  schools, 
explained  that  meals  for  elementary,  special 
education  and  vocational  education  students 
are  prepared  In  kitchens  at  the  Career  Cen- 
ter. 701  S.  Western  Ave.  Each  junior  and  sen- 
ior high  school  In  the  district  operates  their 
own   kitchen   for  meal  preparations. 

Touring  the  kitchens  at  the  Career  Cen- 
ter is  like  visiting  a  factory  complex.  Ma- 
chinery Includes  two  conveyor  belt  assembly 
lines  for  packaging  lunches,  a  five-tier  bake 
oven.  80,  60  and  20-quart  mixers,  a  bun  di- 
vider, a  doughnut  machine,  a  cooking  ma- 
chine, 80  and  60-gaIlon  steam  kettles  and  a 
bread  bxitterlng  machine. 

Here  are  some  Interesting  figures  about  the 
capacity  of  the  machinery  at  the  central 
kitchens  and  the  ability  of  the  17  regular 
employees  to  operate  them.  "Cold  packs" 
(thoee  which  Include  salaas.  sandwiches, 
carrot  sticks,  etc.)  can  be  p(u:kaged  at  a  rate 
of  36  per  minute.  Hot  lunches  can  be  as- 
sembled at  a  rate  of  60  per  minute  when 
using  the  conveyor  belts:  the  bread-butter- 
ing machine  butters  1.600  slices  per  hour  and 
the  doughnut  machine  produces  125  dozen 
pastries  per  hour. 

Mrs.  Johansen  explained  that  cold  packs 
are  prepared  the  morning  they  are  to  be 
served.  Women  begin  meal  preparations  at  6 
a.m.  each  school  day.  By  8:30  a.m.  ap- 
proximately eight  women  position  themselvee 
along  a  conveyor  belt  and  adroitly  place 
luncheon  Items  In  clear  plastic  cellOphane- 
wrapped  cartons.  These  cold  p>ack8  pass 
through  a  shrink  tunnel  which  seals  the  cel- 
lophane to  the  carton  and  are  loculed  onto 
racks  which  will  be  distributed  to  various 
schools  throughout  the  city. 

After  the  cold  packs  have  been  sealed  and 
readied  for  delivery,  the  women  shift  their 
attention  to  a  second  conveyor  belt,  where 
hot  lunch  Items  are  packaged  In  aluminum 
foil-wrapped  packages. 

HOT    X-TTNCH    PROGRAM 

Mrs.  Johansen  revealed  hot  lunches  are 
prepared  and  packaged  the  morning  prior  to 
their  serving  and  are  refrigerated  overnight 
at  the  kitchen's  walk-In  coolers. 

When  the  hot  lunch  menu  calls  for  bar- 
becues, goulash,  macaroni  and  cheese,  chill, 
pizza  or  tuna  and  noodles,  kitchen  workers 
prepare  about  220  gallons  of  these  recipes  In 
the  stainless  steel  steam  kettles,  TTie 
steaming  contents  are  transferred  to  mobile 
serving  discs  and  placed  within  easy  access  of 
conveyor  belt  workers.  Packaging  of  the 
nearly  5,000  meals  each  day  takes  about  two 
and  a  half  hours  on  the  cold  pack  line  and 
two  hours  on  the  hot  pack  line. 

"Oood  back-up  workers  really  keep  the 
ojjeratlons  running  smoothly,"  observed  Mrs. 
Myrtle  Walser,  cafeteria  manager  of  the 
central  kitchens. 

Elementary  schools  begin  calUng  In  their 
orders  to  the  central  kitchens  at  9:30  each 
morning,    and    deliveries    begin    almost    Im- 


mediately, Besides  providing  lunches  for 
students  In  the  district's  elementary  spools, 
the  central  kitchens  also  serve  hot  meals  to 
Early  ChUdhood  students  at  Emerson.  Mark 
Twain,  Lowell  and  0"Oorman  high  schools, 
pre-school  students  at  Beadle  and  students 
at  the  Area  Vocational  School. 

Each  elementary  school  is  equipped  with  an 
oven  deslg:ned  to  heat  the  altunlnum  packs. 
In  addition,  the  schools  are  supplied  with 
"spork"  (a  plastic  combination  between  a 
spoon  and  fork)  kits,  which  Includes  a  nap- 
kin and  straw  for  milk. 

"Using  disposable  serving  trays  and  uten- 
sils really  cuts  down  on  clean-up  and  labor," 
Mrs.  Johansen  smiled.  . 

The  ovens,  which  range  In  capacity  from 
180  to  300  hot  packs  at  a  time,  heat  the  con- 
tents for  20  minutes.  Students  pick  up  their 
lunches  to  eat  either  In  gymnasiums  or 
classrooms,   depending  on   school   facilities. 

KrrCRXNS    IN    DITTERENT    SCHOOLS 

The  central  kitchens  employ  a  full-time 
baker  who  prepares  dinner  rolls,  doughnuts, 
cookies,  cakes  and  bars  to  be  included  with 
lunches.  Junior  and  senior  high  schools  in 
the  district  receive  most  of  their  bakery 
products  from  the  central  kitchens. 

Kitchen  facilities  at  the  Junior  and  senior 
high  schools  are  comparable  to  those  of  the 
central  kitchen,  except  on  a  smaller  scale.  An 
average  of  11  regular  workers  report  every 
morning  to  each  Junior  high  school  to  begin 
meal  preparations.  Cafeteria  managers  Mrs. 
Bemadene  Stoll  at  Axtell  Park:  Mrs.  Delores 
Butcher,  Edison;  Mrs.  Ruby  Miller.  Patrick 
Henr>-.  and  Mrs.  Viola  Olson.  Whlttler, 
supervise  kitchen  personnel  In  preparing 
nearly  3.400  type  A  student  and  adult  meals 
each  day. 

Mrs.  Shirley  Matzen  and  Mrs.  Mary 
Engelkes.  cafeteria  managers  at  Washington 
and  Lincoln  High  Schools  respectively, 
oversee  dally  preparations  of  2.100  type  A  and 
ala  carte  meals  for  students  and  adults  at 
their  schools. 

Cafeteria  at  St.  Joseph  and  Little  Flower 
elementary  schools  operate  on  much  the 
same  basis  as  thoee  at  the  public  Junior  and 
senior  high  schools.  However,  the  atmosphere 
at  the  two  kitchens  Is  more  casual  and  cozy, 
with  a  total  of  nine  persons  employed  by  the 
cafeterias. 

Mrs.  Marjorle  Hartwlck.  cafeteria  manager 
at  St.  Joseph,  explained  special  Christmas 
plans  at  her  kitchen,  which  prepares  meals 
for  nearly  400  students  and  adults. 

"We  have  permission  to  ask  the  elderly  or 
shut-Ins  to  Join  our  students  for  lunch 
Wednesday.  We're  going  to  serve  fried 
chicken,  cranberry  sauce.  Christmas  cookies 
and  whipped  potatoes  as  a  sort  of  'Merry 
Christmas'  wish  for  our  students." 

The  menu  at  Little  Flower  for  Thursday's 
Christmas  special  Includes  roast  turkey  with 
dressing,  mashed  potatoes.  Ice  cream  and 
Christmas  cookies. 

Mrs.  Viola  Kersbergen.  cafeteria  manager 
at  the  school,  said  she  and  her  helper  pre- 
pare lunches  for  nearly  100  students  and 
serve  a  dally  breakfast  to  about  SO  students. 
The  kitchen  and  cafeteria  for  the  school  are 
located  In  the  wood-paneled  carpeted  base- 
ment of  St.  Thereee  Catholic  Church,  a  short 
walk  across  Little  Flower's  parking  lot. 

Mrs.  Florence  Daniels,  cafeteria  manager 
at  O'Oorman  High  School,  explained  the 
reason  for  not  planning  any  special  Christ- 
naas  meals. 

"If  we  did  have  something  special  we 
would  probably  have  leftovers."  she  said. 
"Since  well  be  gone  for  nearly  two  weeks  for 
vacation,  I  wonder  how  we'd  get  them  used 
up" 

Two  of  the  five  regular  employes  at  O'Oor- 
man's  kitchen  prepare  breakfast  and  dinner 
for  30  seminary  students,  and  the  main  op- 
erations of  the  kitchen  prepare  type  A  and 
ala  carte  lunches  for  nearly  250  O'Oormar. 
students. 

All    In    all,    Sioux    Palls    elementary    and 


secondary  schools  offer  the  largest  hot  lunch 
operation  in  the  state,  touching  nearly  iSjOOO 

students  with  tasty  treats  served  especially 
at  Christmas. 


ACCOMPLISHMENTS  OF  THE  FBI 

Mr.  McCLELLAN  Mr.  President,  on 
Saturday  there  appeared  in  the  Wash- 
ington Post  an  article  that  Is  deserving 
of  everyone's  attention.  Its  subject  was 
the  release  of  the  FBI's  annual  report 
detailing  the  accomplishments  of  the 
Bureau  for  fiscal  year  1973.  The  article 
and  the  report  itself  show  the  great 
strides  that  have  been  and  continue  to 
be  made  by  the  Bureau  in  law  enforce- 
ment. 

I  will  let  the  report's  figures  speak  for 
themselves.  In  fiscal  1973.  convictions 
resulting  from  FBI  Investigations  num- 
bered 14,465 — the  highest  in  FBI  liistory. 
This  figure  increased  from  about  13,800 
in  fiscal  1972  and  represents  a  conviction 
rate  of  over  96  percent  of  those  brought 
to  trial. 

Even  more  noteworthy  than  these 
statistics,  however,  are  those  relating  to 
organized  crime.  During  this  same  time 
period,  convictions  in  orgtmlzed  crime 
and  gambling  cases  made  by  the  FBI 
numbered  1.114.  an  Increase  of  301  over 
the  1972  figure  and  795  over  the  1969 
figure.  In  addition,  nearly  2.900  orga- 
nized crime  figures  were  awaiting  trial  in 
FBI  cases  at  the  close  of  the  fiscal  year. 

Comparable  increases  in  the  numher  of 
convictions  took  place  in  other  areas  as 
weU. 

Mr.  President,  at  a  time  when  so 
much  criticism  Is  leveled  at  law  enforce- 
ment agencies  and  their  personnel,  it  Is 
well  that  their  accomplishments  be 
given  proper  recognition  and  due  appre- 
ciation. This  is  especiallj-  true  of  the 
Federal  Bureau  of  Investigation  As  the 
Bureau's  new  director,  Clarence  Kelley, 
noted  in  his  statement  accompanj-ing 
the  report,  the  FBI  has  been  criticized— 
unjustly.  In  my  opinion — for  its  haji- 
dllng  of  the  Watergate  investigation. 
The  report  should  eliminate  any  doubt 
in  the  minds  of  the  American  people 
that  the  Watergate  question  may  have 
tarnished  the  integrity  or  effectiveness 
of  the  Bureau. 

Mr.  President,  at  the  same  time  that 
we  bestow  some  veil-deserved  praise  up- 
on the  Bureau,  I  do  not  think  it  improper 
to  note  the  significant  role  that  the  Con- 
gress, and  particularly  the  Senate,  has 
played  in  enabling  the  Bureau  to  achieve 
such  an  improved  and  outstanding  rec- 
ord of  accomplishment  It  is  certainly 
no  mere  coincidence  that  the  great  rise 
in  convictions  in  the  organised  crime  and 
gambling  areas  began  -vMh  the  enact- 
ment of  the  Omnibas  Crime  Control  and 
Safe  Streets  Act  of  1968.  which  granted 
greater  access  to  wiretapping  to  law  en- 
forcement officials  as  a  method  of  com- 
bating crime,  and  the  OrL-anizec  Crime 
Control  Act  of  1970,  which  made  :t  a 
Federal  offense  t-o  engage  in  large-scale 
gambling  acti\1ty,  i  am  proud  of  Uiis  leg- 
islation, which  repre.sents  a  great  deal  cf 
effort  on  the  part  of  the  Subcom.Tiittee 
on  Criminal  Laws  and  Procedures  which 
I  am  pri\ileged  to  chair  Both  of  these 
acts  were  cited  by  the  Bureau  as  con- 
tributing to  its  Increased  effectiveness 


{•j:;} 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  197S 


Mr.  President,  I  need  not  remind  the 
Members  of  the  Senate  that  there  were 
those  who  opposed  this  legislation — par- 
ticularly the  wiretapping  provisions  of 
the  1968  act.  They  argued  that  It  was  un- 
necessary legislation  that  would  be  sub- 
ject to  abuse.  The  accomplishments  of 
the  FBI  m  combtiting  organized  crlme^ 
through  these  tools  has  refuted  that  con- 
tention. It  is  precisely  through  such  leg- 
islation as  this  and  through  continued 
congressional  support  of  agencies  such 
as  the  Law  Enforcement  Assistance  Ad- 
ministration, which  provides  so  much  as- 
sistance to  our  local  law  enforcement  of- 
fldaJs.  that  the  cancer  of  organised  crime 
will  eventually  be  destroyed. 

Mr.  President,  I  ask  that  there  be 
printed  in  the  Record  the  article  from 
the  Washington  Post  analyzing  the  re- 
cent FBI  report.  I  commend  the  entire 
report  to  the  other  Members  of  the  Sen- 
ate as  an  excellent  summary  of  the  ac- 
complishments of  the  Bureau  during  the 
last  fiscal  year. 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  In  the  R«cord. 
as  follows : 

OmaAHTZTo  Cumc  Corrvicnons  n»  FBI  C»MMm 
Up  Shakplt 
<  By  Siu*nn»  McBe«  i 
CJonvlctlon*  in  crlininal  cue*  brought  by 
the  FBI.  e«peclally  those  in  organized  crime 
and   gambling,   have  sharply   increaaed.   ac- 
cording  to   the   bureaus   annual   report   re- 
leased yesterday 

FBI  Director  Clarence  M  Kelley  said  the 
report  should  refute  chari?ea  that  the  bu- 
reaus early  role  Ui  the  Watergate  investiga- 
tion had  "dlminlahet  the  PBfs  effectiveness, 
cast  doubt  on  Its  integrity  and  devasuted 
employe  morale. 

•'Those  who  have  such  doubts."  he  con- 
tinued, "underestimate  the  character  of  ca- 
reer employees,  for  these  are  men  and  women 
who  truly  believe  the  FBI  la  the  anest  In- 
vesturaUve  agency  In  the  world  and  dally 
strive  to  maJte  it  so." 

Critics  have  said  the  FBI  could  have  been 
more  aggressive  In  the  early  stages  of  the 
Watergate  probe  and  that  it  compiled  with 
White  House  demands  tiiat  it  restrict  Its 
Inquiry 

L.  Patrick  Gray  m.  who  was  acting  direc- 
tor after  J  Edgar  Hoover  died  In  May.  1972 
resigned  last  AprU  37.  after  admlttliig  he 
deetroyed  aocne  Watergate  evidence  at  the  re- 
quest of  a  presidential  aide 

Kelleys  pointed  reference  to  the  character 
of  career  P^i  employees  underscored  a  com- 
ment he  made  at  a  Washington  Post  lunch- 
eon last  month.  He  said  then  that  Gray  "was 
not  ronaldered  a  true  representative  of  the 
bureau.  He  was  an  outsider  " 

The  annual  report  covers  the  fiscal  year 
that  ended  June  30,  nine  days  before  KeUey 
became  director.  It  saya  Uttie  that  is  new 
about  the  Watergate  invertlgatlon.  except 
that  56  of  lU  59  fleld  offlcea  have  worked 
on  the  various  cases  and  that  the  bureau 
has  followed  leads  to  foreign  countries. 

The  report  shows  that  oonnctlona  resulting 
from  FBI  inveatlgattona  totaled  14.4««  in  fl»- 
eal  1973,  up  fro«n  about  13.000  In  1972  and 
13,400  in  1971 

ConvictJons  In  fljcal  1973  ui  orvtanlaed 
crime  and  gambling  cases  made  by  the  FBI 
numbered  1,114.  a  301  Uicrease  over  the  1873 
ngure  By  contrast,  organized  crime  convic- 
tions In  19«9  totaled  319 

The  increase  results  from  what  one  source 
called  "new  JurlsdJctlon  and  increased  man- 
power "  The  1968  Omnibus  Crime  Act  broad- 
ened the  FBI  s  access  to  co\irt-authoriaed 
wiretaps  and  tiM  Organised  Crlma  Control 
Act  of  1970  aUowed  U  to  Uirestlgate  certain 


kinds  of  local  gambling  operattoos  that  It 
oould  not  look  Into  before,  he  explained. 

Also,  he  noted,  in  1970  Hoover  sought  and 
won  congressional  authorisation  to  hire  1,- 
000  more  agents  most  of  whom  went  Into 
InvestlgaUng  organized  crime.  The  FBI  now 
has  8.808  agents 

The  report  also  says  that  despite  the  cur- 
rent detente  with  the  Soviet  Union,  there  Is 
"no  sign  of  any  reduction  In  the  combined 
intelligence  effort  being  conducted  against 
the  United  States  by  Soviet  bloc  naUons." 
It  says  that  as  of  last  July  1.  there  were 
2.886  Soviet  bloc  people.  Including  depend- 
ents, in  the  United  SUtas.  Sonet  bloc  officials 
numbered  1.396.  an  Increase  of  44  per  cent  In 
the  last  Ave  yean,  the  report  says. 

A  high  percentage  of  them  are  spies,  the 
report  says.  "Accordingly,  the  threat  to  the 
United  States  and  the  counterlntelllgenoe 
responsibilities  of  the  FBI  have  been  growing 
ui  proportion  to  the  Soviet  bloc  presence 
In  the  United  States  " 

The  report  shows  a  decrease  In  the  value 
of  goods  recovered  by  the  FBI  In  Its  ransn 
from   nearly   8341    million    in    1973    to   8192 
million  In  ttscal  1973. 


POOD  AND  DRUO  ADMINISTRATION 
REGULATIONS  CONCERNING  VI- 
TAMINS, MINERALS.  AND  FOOD 
SUPPLEMENTS 


Mr,  HASKELL.  Mr  President,  earlier 
this  year  the  Food  and  Drug  Adminis- 
tration announced  new  regulations  con- 
cerning vitamins,  minerals,  and  food 
-supplements  These  regulations  were  the 
conclusion  of  a  decade  of  investigation 
and  research,  and  2  years  of  formal 
hearings  on  every  aspect  of  the  Issue. 
In  my  reading  on  this  subject  I  have  come 
across  an  excellent  explanation  of  these 
new  regulations  In  the  FDA  Consumer. 
Mr.  President.  I  ask  unanimous  consent 
that  this  article.  "Vitamins.  Minerals, 
and  FDA,  •  be  printed  In  the  RgcoRo  for 
the  informauon  of  all  concerned  and 
interested 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Ricord, 
as  follows : 

Vrr*iiiN8.  MiNxaALs.  awd  FDA 
The  Foixl  and  Drug  Admlnutratlon  has 
spent  the  past  decade  Investigating  con- 
sumer needs  and  the  PDA  role  in  regulat- 
ing vitamins,  minerals,  and  food  supple- 
menu  This  study  included  two  years  of 
formal  hearings  on  every  aspect  of  the  vari- 
ous Issues.  Industry,  science,  medicine,  and 
consumers  participated 

The  PDA  has  published  new  regulations 
based  on  this  study  The  PDA  aim  is  to  pro- 
tect the  consumer  against  proven  hazaitls 
from  toxic  amounts  of  nutrients  and  to  re- 
quire accurate  labeUng,  honest  promotion, 
and  rational  formulation  of  vitamins  and 
mUieral  products  The  PDA  believes  that 
with  full  and  valid  Information  the  consumer 
•*UI  be  better  able  to  make  informed  deci- 
sions about  personal   nutrition  practices 

The  new  regulations  have  been  the  sub- 
ject of  much  misinformation  and  some  mis- 
representauon  Here,  to  set  the  record 
strii<{ht,  is  what  the  .Agency  is  trying  to  do 
aitd  why. 

FDA  s  reguUtlons  begin  with  a  series  of 
basic  deflnltions 

The  term  •United  State*  Recommended 
DaUy  AUotcance"  or  US  RDA  describes  a  new 
and  more  effective  system  for  measuring  hu- 
man nutritional  needs.  Based  on  oontlntung 
study  for  many  years  by  the  National  Acad- 
emy of  Sciences,  the  system  repreeenu  the 
beet  available  scientific  Judgmenu  on  the 
dally  Intake  of  vitamins  and  minerals  needed 
to   maintain   a   poaltlve   sUte   of   health.    It 


replaces  the  old  and  generally  lower  Mini- 
mum DaUy  Requirement  or  MDR  which  was 
based  on  the  minimum  Intake  necessary  to 
prevent  deficiencies  and  related  illness.  With 
adoption  of  the  VB.  RDA  standard,  the  FDA 
is  recommending  generally  higher  dally  in- 
take of  essential  vitamins  and  minerals 

Products  supplemented  with  up  to  50  per- 
cent of  the  vitamins  and  minerals  needed  to 
maintain  health  (Ufl  RDA)  are  aeTieral 
fooAa 

Products  supplemented  with  60  percent  to 
150  percent  of  the  U3  RDA  are  dietary  sup- 
plements The  term  "dietary  supplement"  is 
limited  to  the  use  of  vitamins  and  minerals 
by  well  and  healthy  individuals  seeking  "in- 
surance" against  Irregular  or  poor  eating 
habits  The  term  does  not  cover  the  use  or 
promotion  of  vitamins  or  minerals  for  the 
treatment  of  any  dlaeaae  or  medical  condi- 
tion. 

Products  containing  more  than  150  per- 
cent of  the  US  RDA  are  drugt.  Any  vitamin 
or  mineral  used  at  any  doaage  for  therapeutic 
purposes  is  a  drug  and  should  be  understood 
by  the  consumer,  regulated  by  the  FDA.  and 
marketed  by  Industry  as  such  This  definition 
impUes  no  automatic  restriction  on  public 
avaUabUlty  any  more  than  does  the  FDA 
designation  of  aspirin  as  a  drug. 

High-potency  nonpreecrlptlon  vitamin- 
mineral  producu  have  been  available  for 
many  years,  and  FDA  does  not  Intend  to  re- 
quire all  high-potency  vitamin -mineral  prod- 
ucu  to  be  sold  on  prescription  This  point 
has  Ijeen  broadly  misunderstood  and  broadly 
misrepresented  to  the  public. 

Another  naajor  misunderstanding  concerns 
the  broad  range  (5O-160  percent)  allo»-ed  for 
the  definition  of  dietary  supplement  prod- 
ucts. Although  100  percent  of  the  U.S.  RDA 
Is  sufficient  to  meet  the  nutritional  needs  of 
eesentlally  and  healthy  individual,  FDA  has 
provided  for  an  additional  50  percent  of  the 
Ufl.  RDA  in  theee  products  in  recognition  of 
the  poeslbuity  that  the  nutritional  needs  of 
some  Individuals  may  vary  greatly.  Thus,  the 
parmltted  range  covers  the  dietary  supple- 
ment needs  of  all  Individuals  except  for  cir- 
cumstances where  consultation  with  a 
physician  Is  appropriate. 

The  alngle  most  important  purpose  and 
effect  of  the  new  FDA  regulations  Is  to  re- 
quire full  and  honest  labeling  as  well  as 
promotion  of  vitamin  and  mineral  products, 
whether  marketed  as  foods,  dietary  supple^ 
menu,  ««•  as  drugs.  The  reguUUons  redefine 
and  clarify  FDA's  InUntlons  to  act  against 
falsa  labeling  or  deceptive  promotion  of  such 
products. 

In  general,  the  regulations  seek  to  protect 
the  oonsiuner  against  promotional  claims 
for  dietary  supplemenU  so  low  In  potency 
as  to  be  nutritionally  Ineffective  or  so  high 
as  to  exceed  any  reasonable  definition  of  a 
dietary  supplement 

Specifically,  the  regulations  seek  to  protect 
the  consumer  against  unfair  or  deceptive 
promotional   claims   by   requiring   that; 

1  No  food  or  dietary  supplenent  because 
o*  the  presence  or  absence  of  certain  vita- 
mins or  minerals  may  claim  or  suggest  It  la 
sufficient  In  Itself  to  prevent  or  cure  disease. 
3.  No  food  or  dleUr>-  supplement  may 
Imply  that  a  balanced  diet  of  conventional 
foods  cannot  supply  adequate  nutrlenU  or 
Imply  that  transportation,  storage,  or  cook- 
ing of  conventional  foods  may  result  in  an 
Inadequate  or  deficient  diet,  thus  suggesting 
that  everyone  needs  a  dietary  supplement. 

3.  No  food  or  dietary  supplement  may 
claim  that  inadequate  or  deficient  diet  is  due 
to  the  soil  In  which  a  conventional  food  is 
grown. 

4.  All  dietary  supplements  must  list  the 
source  of  their  IngredlenU.  but  no  supple- 
ment may  claim  superiority  for  either  a 
natural  or  synthetic  source.  Rose  hips,  a  part 
of  the  rose  blossom,  for  example,  cannot  be 
promoted  as  a  better  or  safer  source  of  vl- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


tamln  C  than  ascorbic  acid  tablets.  (Vita- 
mins and  minerals  are  the  same  in  chemical 
structure  regardless  of  natural  or  synthetic 
origin.) 

5.  No  nutritional  claims  may  be  made  for 
Ingredients  such  as  bioflavonoids,  rutin,  in- 
ositol, and  similar  ones  having  no  scientifi- 
cally recognized  nutritional  value.  Such  un- 
proven  IngredlenU  may  continue  to  be  mar- 
keted as  food  Items,  but  they  may  not  be 
combined  with  essential  nutrients  In  prod- 
ucU  labeled  for  dietary  supplementation. 

In  theee  five  requlremenU,  FDA  Is  not 
saying  there  is  no  loss  of  nutrlenU  from 
cooking,  storage,  or  transporutlon  of  con- 
ventional foods. 

The  Agency  Is  not  saying  that  soU  com- 
position does  not  cause  variation  In  the  nu- 
tritional content  of  food. 

The  Agency  Is  not  seeking  to  limit  personal 
choice  between  the  natural  and  chemical 
forms   of   supplementary    nutrlenU. 

The  Agency  Is  saying  that  In  terms  of  over- 
all diet,  today's  general  food  supply  can  pro- 
vide adequate  amounu  of  all  nutrlenU 
nece»sar\-  to  good  health. 

The  Agency  Is  saying  that  It  wUl  prohibit 
unsupported  generalizations  about  nutrient 
losses  because  of  soil,  transportation,  and 
processing  when  such  generalizations  are 
used  to  frighten  or  mislead  consumers  about 
their  need  for  dietary  supplemenU. 

The  PDA  responsibility  for  the  vitamin 
and  mineral  regulations  is  assigned  by  the 
Congress  The  basic  Federal  Pood,  Drug,  and 
Cosmetic  Act  of  1938  requires  that  PDA  act 
as  It  has  to  Insure  safety,  honesty,  and  full 
consumer  Information  about  such  producu. 
In  the  i940's.  It  was  generally  thought 
that  vitamins  and  minerals  were  such  In- 
nocuous substances  that  excessive  quan- 
tities would  merely  be  excreted.  FDA  regu- 
lations at  the  time  reflected  this  view  and 
were  sufficient  to  the  needs  and  to  the 
knowledge  of  the  day 

This  Is  no  longer  true.  Even  though  a 
number  of  vitamins  and  minerals  are  es- 
sential to  human  nutrition,  we  know,  for 
example,  that  excessive  and  prolonged  vlU- 
mln  A  Intake  can  cause  serious  problems. 
Including  pressures  within  the  skull  that 
mimic  a  braUi  tumor.  This  in  turn  may 
raise  the  danger  of  serious  op>eratlons  for 
brain  tumors  that  do  not  exist. 

Excessive  and  prolonged  doees  of  vitamin 
D  can  cause  calcification  in  soft  tissues  and 
bone  deformity  In  adxilU  as  well  as  children. 
VlUmln  C  In  very  high  doses  can  cause 
diarrhea.  High  doses  of  this  vitamin  have 
been  used  In  Russia  to  Induce  early  abortion. 
Iron  toxicity  Is  a  well  esubllshed  cause 
of  accidental  poisonings  In  children.  Iron 
as  well  as  all  other  minerals  essential  to  hu- 
man nutrition  are  toxic  at  some  level. 

On  the  basis  of  Increasing  knowledge,  the 
thinking  of  the  1940's  Is  obsolete  today.  The 
view  that  unlimited  quantities  of  vitamins 
and  minerals  are  Innocuous  is  today  not 
only  obeolete  but  dangerous  The  evidence  of 
this  Is  so  clear  on  vitamins  A  and  D,  for 
example,  that  FDA  Is  recommending  that 
hlgh-poUncy  doses  be  taken  only  under 
physician  guidance  Nevertheless,  both  A 
and  D  will  continue  to  be  avaUable,  either 
In  nonprescription  strengths  up  to  the  U.S. 
RDA  or  In  higher  potency  forms  under  physi- 
cian prescription. 

Other  than  vitamins  A  and  D,  all  vitamin 
and  nxlneral  producu  In  excess  of  150  per- 
cent of  the  US.  RDA  and  now  available 
without  prescription  may  continue  to  be  sold 
singly  or  In  combination  formulas  as  non- 
prescription drugs.  They  are,  nevertheless, 
drugs  and  not  dietary  supplements.  These 
producu  eventually  will  be  reviewed  by  ex- 
perU  who  wUl  Judge  their  safety  and  ef- 
fectiveness as  drugs  and  advise  FDA  on  ap- 
propriau  labeling.  As  a  general  rule,  PDA 
WUl  continue  as  in  the  past  to  presume  a 
drug  accepuble  for  nonprescription  use  un- 


42735 


less  It  Is  unsafe  to  use  except  under  super- 
vision of  a  physician. 

FDA  knows  of  no  economic  hardship  on 
consumers  or  manufacturers  that  could  re- 
sult from  handling  high-potency  vltamln- 
mlneral  producU  as  drugs.  Indeed,  this  will 
clearly  work  an  economic  benefit  for  con- 
sumers, who  for  the  first  time  will  begin  to 
receive  accurate  Information  on  the  different 
uses  of  different  levels  of  nutrlenU. 

In  summary,  the  FDA  wUl  continue  to  act 
In  behalf  of  consumer  safety  and  better  con- 
sumer Information.  New  regulations  prlmar- 
Uy  affect  labeling  of  vitamin  and  mineral 
producu  and  will  likely  require  more  ac- 
curate consumer  Information  on  most  such 
producu. 

FDA  will  continue  to  seek  out  and  act 
against  deceptive  or  false  promotions. 

The  Agency  Is  not  banning  any  vitamin 
or  mineral  from  the  market  or  forcing  any 
manufacturer  wUUng  to  provide  proper  prod- 
uct formulation  and  labeling  out  of  business. 
The  Agency  Is  not  restricting  any  vitamin 
or  mineral  avaUable  without  a  prescription 
today  to  prescription  use  only.  This  Includes 
vitamins  A  and  D  In  doees  up  to  the  U.S. 
RDA. 

The  PDA  will  continue  to  regulate  on  the 
basis  that  vitamins  and  minerals  are  essen- 
tial foods  when  taken  according  to  bodUy 
need.  When  taken  far  In  excess  of  this  need, 
they  are  drugs  and  should  be  treated  by  the 
consumer  and  by  the  PDA  accordingly. 

The  term  "bodily  need"  Is  not  set  in  con- 
creu.  FDA  and  others  are  constantly  moni- 
toring research  to  more  precisely  measure 
the  body's  nutritional  requirements.  As  a  re- 
sult, changes  may  be  anticipated  In  the  fu- 
ture, In  some  cases  to  lower  the  VS.  RDA's 
and  In  other  cases  to  Increase  them. 

Above  aU,  the  new  regulations  will  not 
alter  or  Interfere  with  the  consumer's  basic 
responsibility  for  deciding  his  own  individ- 
ual nutritional  practices.  The  rules  will  In- 
sure more  and  better  Information  to  guide 
the  consumer  In  making  such  choices. 


RHODESIAN  CHROME 

Mr,  McGEE.  Mr.  President,  apparently 
the  debate  on  the  merits  of  S.  1868  has 
not  subsided  in  spite  of  the  fact  the  Sen- 
ate overwhelmingly  voted  Tuesday  of 
this  week  to  place  us  into  compliance 
with  U.N.  sanctions  against  southern 
Rhodesia. 

For  example,  it  was  with  considerable 
Interest  that  I  read  the  comments  made 
yesterday  by  the  distinguished  junior 
Senator  from  New  York  (Mr.  Buckley). 
Therefore,  I  want  to  take  the  opportu- 
nity today  to  respond  to  his  contentions 
and  set  the  factual  record  straight.  In 
the  distinguished  Senators  remarks  I 
could  find  no  documentation  of  the  alle- 
gations and  claims  he  raised  m  express- 
ing his  concern  with  the  Senate  action 
earlier  this  week.  However,  mj-  response 
will  be  based  upon  documented  evidence 
which  was  very  well  researched  long  be- 
fore we  proceeded  with  floor  considera- 
tion of  S.  1868. 

Basically,  the  junior  Senator's  argu- 
ment focuses  on  three  general  areas. 
First,  that  the  sanctions  against  Rho- 
desia gave  the  Soviet  Union  a  monopoly 
on  the  chrome  market  in  the  world,  a 
fact  which  they  exploited  for  commer- 
cial profit.  Tied  into  this  argument  is  his 
asserUon  that  the  United  States  could 
not  be  dependent  upon  a  potential  enemy 
for  so  criUcally  Important  a  strategic 
material. 
I  might  add  that  I  addressed  myself 


to  this  argument,  and  the  others  he 
raised,  in  my  statement  before  the 
African  Affair  Subcommittee  of  the 
Senate  Foreign  Relations  Committee  on 
September  6,  1973,  during  hearings  on 
S.  1868  I  made  a  copy  of  my  statement 
available  to  every  Senator  in  this  body. 
In  response  to  the  junior  Senator's 
tMr.  Buckley)  first  assertion,  I  would 
point  out  that  according  to  U.S.  Depart- 
ment of  Commerce  data,  the  surge  in 
Russian  imports  came  long  before  sanc- 
tions against  Rhodesia  were  imple- 
mented. For  example,  according  to  the 
U.S.  Department  of  Commerce,  in  1961, 
we  imported  only  4.7  percent  of  our 
chrome  from  Soviet  Russia  while  Rho- 
desia had  47.2  percent  of  our  market  In 
1963,  just  2  years  later,  the  Soviet  Rus- 
sian Imports  jumped  to  38.3  percent, 
while  Imports  from  Rhodesia  decreased 
to  39.7  percent.  By  1968 — the  year  before 
sanctions  were  Imposed — our  imports 
from  the  Soviet  Union  had  increased  to 
58  percent,  while  imports  from  Rhodesia 
had  declined  to  17.6  percent.  It  should 
also  be  noted  that,  according  to  a  study 
compUed  earlier  this  year  by  an  analyst 
In  the  Foreign  Affairs  Division  of  the 
Congressional  Research  Service,  Library 
of  Congress,  the  Soviet  Union  can  com- 
mand a  higher  price  for  its  chrome  be- 
cause "the  Soviet  Union  produces  the 
highest  grade  chrome  available."  In 
other  words,  the  United  States  gets  more 
chrome  per  ton  of  ore  if  we  import  it 
from  the  Soviet  Union,  than  from 
Rhodesia. 

The  Library  of  Congress  study  also 
pointed  out  the  price  of  chrome,  includ- 
ing that  of  Rhodesian  chrome,  had  In- 
creased in  recent  years  due  as  much  to 
an  Increase  In  demand  for  chrome  and 
the  general  upward  shift  in  the  prices 
of  raw  materials  as  to  the  effects  of 
economic  sanctions.  The  rise  In  world 
chrome  prices,  according  to  the  study 
began  in  1964,  before  Imposition  of  the 
sanctions. 

As  to  the  prices  we  pay  for  chrome 
Imports,  the  distinguished  Junior  Sena- 
tor from  New  York  (Mr.  Buckley)  has 
overlooked  some  very  important  facts 
Once  again,  according  to  U.S.  Depart- 
ment of  Commerce  data,  in  1965,  our 
chrome  importers  were  paying  around 
$40  a  ton  for  metallurgical  grade 
chromlte  from  Rhodesia,  while  in  1972 
we  paid  $67  a  ton.  This  represents  a 
168-percent  increase  In  the  price  of 
Rhodesian  chrome  In  Just  a  5 -year 
period.  In  addition,  for  the  first  quarter 
of  1973.  according  to  the  U.S.  Depart- 
ment of  Commerce,  we  paid  $48.16  a  ton 
for  metallurglca]  grade  chrome  from  the 
Soviet  Union,  while  Rhodesia  charged  us 
$62.38  per  ton. 

To  give  a  further  example  of  how  mis- 
leading the  numbers  game  Is,  let  us  take 
a  look  at  chemical  crade  chrome— which 
is  a  middle  ^rade  Once  again,  according 
to  the  US.  Department  of  Commerce,  In 
1968  Rhodesia  sold  us  chemical  grade 
chrome  for  $30.51  per  ton.  while  in  1972 
they  were  charging  us  $83.25  per  ton. 
"nils  represented  an  Increase  of  nearly 
287  percent  in  just  a  4-year  period. 

And  finally,  according  to  U.S.  Depart- 
ment of  Commerce  data,  the  price  of 
Rhodesian  chrome  for  all  grades  from 


42736 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


1961  until  1968  was  consistently  higher 
per  ton  than  the  Soviet  chrome. 

We  have  had  an  abundance  of  expert 
testimony  as  to  the  strategic  necessity  of 
chrome.  First,  on  June  26.  1973.  Mr. 
Peter  M.  Flanigan.  Assistant  to  the  Pres- 
ident for  International  Economic  Affairs, 
belittled  the  "national  security"  argu- 
ment by  pointing  out : 

Access  to  Rhodeslan  chrome  and  other 
minerals  is  not  an  Important  element  In  n.S. 
security  or  o\ir  overall  economic  policy  given : 
( 1 )  the  substantial  excess  of  our  stockpile 
resources  and  (2)  tbe  comparatively  minor 
amounts  we  actually  import  from  Rhode&la. 

On  July  20,  1973.  Deputy  Secretary  of 
Defense  W.  P.  Clements.  Jr  .  pointed  out: 

The  metallurgical  grade  chromite  needed 
by  Industry  to  support  the  Defense  Depart- 
ment's Bteel  requirement  during  the  first 
ye«r  of  a  war  amounts  to  128  300  short  tons, 
or  a.a^'r  of  the  quantity  held  in  the  inven- 
tory as  of  31  December  1973.  Thus.  It  can 
be  seen  that  the  Defense  requirement  for 
metallurgical  grade  chromite  la  relatively 
small,  and  that  the  bulk  of  the  stockpile  in- 
ventory would  be  used  by  the  non-defenae 
Industry  in  the  event  of  an  emergency. 

And  finally,  on  October  3.  1973,  Secre- 
tary of  State  Henry  Kissinger  pointed 
out: 

The  Byrd  provision  Is  not  essential  to 
our  national  security,  brings  us  no  real  eco- 
nomic advantage,  and  is  detrimental  to  the 
conduct  of  foreign  relations. 

Imports  of  Rhodeslan  chrome  and  nickel 
are  no  longer  necessary  for  strategic  reasons 
and  that  a  request  is  currently  before  the 
Congress  to  eliminate  our  stockpile  of  metal- 
Ixirglcal  grade  chromite.  It  Is  also  pertinent 
to  note  that  contrary  to  the  Intention  of  the 
Byrd  provision,  the  F>ercentage  of  Imports  of 
chrome  from  the  USSR  actually  Increased 
during  the  last  two  years. 

On  the  other  hand,  the  Byrd  provision  has 
Impaired  our  abUlty  to  obtain  the  Tinder- 
standing  and  support  of  many  countries  In- 
cluding such  Important  African  nations  as 
Nigeria,  a  significant  source  of  petroleum 
and  a  country  where  we  have  Investments  of 
nearly  tl  blllioa. 

Thus  the  record  is  clear.  The  argu- 
ments advanced  by  the  junior  Senator 
from  New  York  '  Mr.  Buckley)  are  base- 
less. 

As  to  the  second  assertion  raised  by 
the  distinguished  Senator  that  we  only 
have  a  1-year  supply  of  chrome  ore  on 
hand  in  our  stockpile.  I  am  at  a  loss  as 
to  what  his  factual  basis  is  for  this  state- 
ment Is  he  talking  about  defense  needs? 
If  so.  this  is  not  borne  out  by  evidence 
presented  us  by  the  Deputy  Secretary  of 
Defense,  Mr.  Clements,  the  President's 
International  Economic  Advisor.  Mr. 
nanigan.  or  Secretary  of  State  Kassln- 
ger.  In  fact,  Mr.  Clements  testimony  Is 
based  upon  information  provided  him 
by  the  OfHce  of  Emergency  Preparedness. 

In  conclusion.  I  will  address  myself  to 
the  distinguished  senior  Senator's  third 
contention  that  the  United  States  is 
making  itself  vulnerable  to  Soviet  eco- 
nomic warfare  by  a  UJ*.  resolution,  when 
I  also  respond,  tomorrow,  to  contentions 
raised  in  Tuesday  of  this  week  by  the 
distinguished  senior  Senator  from  Ohio 
(Mr.  Tatt)  and  others  in  this  body. 

I  would  just  add  one  thought.  The  is- 
sues relative  to  S  1868  had  been  more 
than  adequately  debated  when  we  were 
forced  to  go  through  three  cloture  votes 
In  order  to  have  a  vote  on  the  bill  Itself. 


It  was  clear  to  m^  that  contrary  to  the 
hopes  of  some  in  this  body,  tbe  House 
is  not  going  to  pigeonhole  this  bill  and 
let  It  gather  dust.  If  this  were  the  case, 
we  would  not  have  had  to  mgage  in  the 
exercise  we  were  forced  to  go  through 
the  past  2  week5 


an  Important  step  on  the  way.  It  deserves 
our  support,  and  the  support  of  men 
everywhere. 


ARAB-ISRAELI  CONFERENCE 

Mr.  KENNEDY.  Mr.  President,  tomor- 
row In  Geneva,  a  historic  conference  is 
due  to  begin,  designed  to  bring  peace  to 
the  Middle  East.  This  is  the  most  hopeful 
moment  in  more  than  25  years  of  the 
Arab-Israeli  conflict — but  also  one  of  the 
most  dangerous.  It  is  hopeful  because,  for 
the  first  time,  representatives  of  both 
sides  will  sit  down  in  formal,  direct  nego- 
tiations under  a  mandate  of  making 
peace  instead  of  war.  It  is  dangerous,  be- 
cause expectations  are  at  a  fever  pitch. 
and  the  chances  of  renewed  failure  and 
further  warfare  are  very  real. 

This  conference  will  be  long  and  diflQ- 
cult.  There  are  no  easy  solutions  to  prob- 
lems that  have  been  developing  over  half 
a  century,  and  that  have  led  to  four  wars 
in  25  years.  Passions  run  deep ;  the  issues 
relate  to  fundamental  concerns  of  na- 
tional security  and  human  rights:  and 
the  search  for  peace  is  compUcated  by 
deep  suspicion. 

A  just  and  lasting  settlement  is  pos- 
sible— and  imperative,  il  the  peoples  of 
the  Middle  East  are  to  be  free  at  long 
last  from  the  threat  of  war,  and  the  peo- 
ples of  the  world  are  to  be  free  from  the 
dangers  to  all  mankind  that  this  conflict 
has  brought. 

We  must  hope  that  all  parties  to  the 
conflict  will  now  recognize  that  the  way 
of  war  csui  bring  gain  to  no  man;  and 
that  an  end  to  conflict  can  bring  benefits 
to  all. 

The  extremists  must  be  isolated,  and 
terrorism  rejected  by  the  peoples  of  the 
Middle  East  Moderation  must  prevail 
on  all  sides.  And  patience  must  be  the 
watchword  of  all  negotiators. 

The  United  States,  and  especially  Sec- 
retary of  State  Kissinger,  have  played  a 
critical  role  in  the  difficult  diplomacy 
leading  up  to  this  conference.  And  we 
continue  to  have  a  role  to  play  In  urging 
serious  negotiations  and  substantive 
progress  toward  peace,  and  in  supporting 
any  agreements  that  are  reached  by  the 
parties  themselves. 

But  the  United  States  Itself  cannot 
bring  peace  to  the  Middle  East.  This  can 
only  be  achieved  by  the  several  parties  to 
the  conflict.  In  a  continuing  process  of 
discussion  and  compromise.  What  a  set- 
tlement could  look  like  is  unclear,  and 
little  would  be  served  by  American  efforts 
to  determine  that  settlement.  But  one 
thing  is  clear:  No  settlement  is  possible 
that  does  not  provide  Israel  with  real  se- 
curity, that  does  not  deal  with  the  prob- 
lem of  territories,  that  does  not  begin  to 
resolve  the  most  difficult  human  Issue  of 
the  Palestine  refugees,  and  that  does  not 
point  In  the  direction  of  peaceful  rela- 
tions between  Israel  and  its  Arab  neigh- 
bors As  man's  painful  hLstory  has  shown, 
peace  is  an  elusive  goal,  that  at  heart 
is  created  in  men's  minds,  and  in  their 
hearts. 

That  day  may  yet  be  far  off  But  the 
conference  beginning  tomorrow  can  be 


MEMBERS  OF  ARMED  FORCES 
MISSING  IN  ACTION  IN  SOUTH- 
EAST ASIA 

Mr.  BARTLETT.  Mr.  President,  yester- 
day the  Senate  passed  my  resolution 
calling  on  the  people  of  our  Nation,  dur- 
ing this  Christmas  season,  to  give  a  spe- 
cial remembrance  through  our  thoughts 
and  prayers  for  the  1,163  members  of  the 
Armed  Forces  who  remain  unaccounted 
for  in  Indochina  and  for  the  families  and 
friends  of  these  men. 

This  past  year  has  been  especially  try- 
ing for  the  families  of  our  men  who  are 
still  officially  listed  as  missing  In  siction. 
While  the  Nation  celebrated  and  wept 
with  joy  at  the  return  of  most  of  our 
EK)W's  last  spring,  the  families  of  1,163 
men  celebrated  too.  But  privately  they 
weep  that  their  MIA  is  not  on  a  return- 
ing plane. 

The  worst  part  of  all  this  Is  that  it  Is 
so  unnecessary.  North  Vietnam  can  at 
anytime  resolve  the  mystery  of  many  of 
the  1.163  men.  Yet  North  Vietnam  has 
displayed  utter  disregard  for  basic  hu- 
manity and  justice. 

Article  8B  of  the  Paris  Peace  Treaty 
signed  January  27,  1973  provides: 

The  parties  shall  help  each  other  t<v*et 
Information  about  those  military  persclKel 
and  foreign  civilians  of  the  parties  missing 
In  action,  to  determine  the  location  and  take 
care  of  the  graves  of  the  dead  so  as  to  facili- 
tate exhumation  and  repatriation  of  the 
remains,  and  to  take  any  other  such  meas- 
ures as  may  be  required  to  get  information 
about  those  still  considered  missing  in  actlon^^ 

Yet  North  Vletnama  contemptuous^ 
ly  turned  her  back  on  these  provisions 
and  have  allowed  the  families  of  1,163 
men  to  suffer  the  torment  of  wondering 
whether  a  husband,  son.  brother,  or 
friend  is  languishing  In  a  prison,  suffer- 
ing in  a  hospital,  or  dead  in  a  grave. 

Mr.  President.  I  would  urge  that  the 
administration  continue  to  use  every 
diplomatic  avenue  possible  to  assist  In 
obtaining  information  about  these  men. 
The  families  must  know  that  we  will  not 
be  satisfied  untU  every  man  Is  accounted 
for. 

Mr.  President,  the  1.163  men  tmd  their 
families  have  suffered  through  many 
lonely,  sad  Chrlstmases.  But  they  have 
been  very  brave. 

At  this  time,  I  call  on  the  U.S.  Senate 
and  all  Americans  to  keep  these  men  and 
their  families  in  our  thoughts  and  pray- 
ers throughout  this  Christmas  season. 

Let  us  also  pray  that  another  year  will 
not  pass  without  a  full  accoimtlng  of 
each  of  these  mpn  whn  have  suffered  for 
each  of  us. 


INTERAGENCY  VIETNAM  ADOPTION 
COMMITTEE 

Mr.  KENNEDY.  Mr.  President,  a  group 
of  16  voluntary  agencies  have  met  over 
the  past  several  weeks,  under  the  aus- 
pices of  the  Agency  for  International 
Development,  to  form  a  committee  to 
better  coordinate  efforts  to  meet  the 
special  needs  of  Vietnamese  orphan* 
fathered  by  Black  Americans. 


December  2d,  1973 


CONGRESSIONAL  RECORD  — SENATE 


Called  the  Interagency  Vietnam  Adop- 
tion Committee— IV AC— this  consortium 
of  agencies  have  had  several  useful  con- 
ferences in  Washington  and  New  York 
to  review  the  particular  problems  con- 
fronting black-fathered  Vietnamese  or- 
phans, and  to  open  important  contacts 
with  black  adoption  and  community 
agencies  in  the  United  States.  Their  goal 
Is  to  help  provide  placement  opportu- 
nities for  black-fathered  Vietnamese  or- 
phans In  black  homes — wherever  adop- 
tion is  considered  the  best  plan  for  the 
child. 

The  overall  goal  of  rVAC  is  an  im- 
portant one.  Mr.  President,  and  one 
which  I  fully  support.  By  creating  a 
clearinghouse  of  information,  and  by  es- 
tablishing a  basis  of  priority  for  the 
placement  of  black-fathered  Vietnamese 
orphans  in  black  homes,  IV AC  will  at- 
tempt to  give  the  black  community  an 
equal  basis  in  helping  to  meet  the  needs 
of  these  orphans. 

To  look  into  the  needs  of  children  in 
Vietnam— especially  those  fathered  by 
black  Americans — and  to  review  govern- 
mental and  voluntary  agency  activities 
on  their  behalf,  rVAC  is  sending  a  dele- 
gaUon  to  the  field  next  month,  with  the 
support  of  AID.  All  of  us  who  have  been 
concerned  over  the  progress  being  made 
to  help  the  chUdren  of  Vietnam,  must 
surely  welcome  this  specific  effort  by 
AID. 

The  IV AC  delegation  will  be  headed 
by  its  cochairman,  Mr.  Alfred  Herbert 
of  the  Black  Child  Development  Insti- 
tute, Washington,  DC,  and  will  be  com- 
posed of  Mr.  Louie  Beasley.  National  As- 
sociation of  Black  Social  Workers.  Nash- 
ville. Tenn.;  Mr.  Benjamin  Finley,  exe- 
cutive director  of  the  Afro-American 
Family  and  Community  Services.  Chi- 
cago, 111.;  Mr.  John  Adams,  Holt  Adop- 
tion Agency,  Oregon;  Mrs.  Clara  J. 
Swan,  Child  Welfare  League  of  America, 
Inc..  New  York,  NY.;  and  Mr.  Gardner 
Munro.  consultant  to  IV AC. 

Mr.  President.  I  welcome  this  effort  to 
Involve  the  black  community  and  black 
adoption  agencies  in  America's  effort  to 
help  meet  its  responsibilities  to  these 
children  disadvantaged  by  a  war  which 
we  helped  to  sponsor  for  so  long.  I  hope 
rVAC  will  become  a  useful  clearinghouse 
of  information,  and  a  source  of  coordi- 
nation of  voluntary  agency  activities  as 
they  relate  to  the  special  needs  of  black- 
fathered  children  in  Vietnam. 

To  achieve  this  goal,  IVAC  will  need 
and  must  have  the  active  cooperation  of 
the  voluntary  agencies  charged  with  fa- 
cilitating the  adoption  process  And  I 
would  hope  that  AID  would  stress  the 
need  for  this  cooperation  when  it  grants 
contracts  to  agencies  which  process  in- 
tercountry  adoptions. 

Mr.  President,  as  I  stated  on  the  Sen- 
ate floor  last  week,  the  disadvantaged 
children  of  Vietnam  measure  their  lives 
In  minutes  and  days.  They  deserve  bet- 
ter than  America  has  given,  and  we  must 
expedite  programs  in  their  behalf  I  hope 
the  forthcoming  field  visit  by  IVAC  will 
help,  even  as  we  recognise  that  only  the 
granting  of  funds,  and  the  implementa- 
tion of  programs  so  long  ago  proposed, 
will  truly  begin  to  bring  relief  and  help 
to  these  children  in  need. 


In  order  to  share  with  my  colleagues 
the  work  of  IVAC,  I  ask  unanimous  con- 
sent, Mr.  President,  that  the  minutes  of 
their  first  meeting  in  Washington  and 
an  accompanying  letter  from  AID,  be 
printed  in  the  Record. 

There  being  no  objection,  the  mate- 
rial was  ordered  to  be  printed  in  the 
Record,  as  follows: 

DEPAHTitENT   OF   STATI, 

Agency  for 
Inthinationai.  Development, 
Washington,  DC,  November  30. 1973. 
Hon.  EowARo  M.  Kennedy, 
Chairman.  Subcommittee  on  Refugees,  Com- 
mittee   on    the    Judiciary,    Washington 
DC. 
Deas  Mb.  Chairman:   In  view  of  your  in- 
terest In  chUd  welfare  programs  In  Vietnam, 
enclosed  for  your  Information  Is  a  copy  of  a 
report  on  a  meeting  sponsored  by  the  Agency 
for  International   Development    (A.IJ5.),  on 
the    subject    of    Intercouutry    adoptions    of 
Vietnamese  children. 

The  meeting  was  convened  by  A.IX).  on 
July  25-26,  to  discuss  the  deslrabUlty  of  an 
expanded  network  of  services  In  the  U.S.  to 
faculties  and  expedite  suitable  adoption 
placements  In  American  homes  for  Vietnam- 
ese children  for  whom  adoption  has  been 
determined  m  Vietnam  to  be  the  best  plan 
for  the  Individual  child. 

The  participants  were  representatives  of 
the  voluntary  agencies  that  have  Intercoun- 
try  adoption  services  In  Vietnam,  U.S.  volun- 
tary agencies  that  have  programs  relating  to 
child  placement  agencies,  and  child  welfare 
experts,  consultant*  and  V.8.  Government 
officials. 

The  meeting  Included  a  full  dlsciisslon  of 
the  nature  of  problems  and  needs  of  these 
particular  groups  of  chUdren.  the  legal  and 
procedural  problems  Involved  In  the  proc- 
essing of  adoptions,  the  attitudes  of  Viet- 
namese people  toward  the  release  of  chil- 
dren for  adoption,  the  avallabUlty  or  lack  of 
resources  of  American  voluntary  agencies 
handling  adoptions  In  Vietnam,  and  the  na- 
ture and  adequacy  of  sulUble  adoption  place- 
ments In  the  United  States. 

A  major  concern  relating  to  the  matter 
was  the  policies  of  agencies  now  engaged 
In  placements  In  the  U.S.  of  American -Viet- 
namese ChUdren  fathered  by  Black  Ameri- 
cans and  the  Interest  of  the  participating 
Black  agencies  to  cooperate  with  the  pres- 
ent adoption  agencies  Involved  In  Intercoun- 
try  adoptions  to  Insure  that  chUdren  fa- 
thered by  Black  Americans  are  placed  In  the 
most  suitable  homes  which  normally  would 
be  expected  to  be  homes  of  Black  families. 
A  major  outcome  of  the  meeting  was  a 
decision  by  the  participants  to  establish 
a  steering  committee  to  formulate  plans  for 
the  organization  that  would  provide  a  mech- 
anism for  marshaling  the  essential  resources 
m  the  VS.  and  In  Vietnam  to  facilitate  and 
expedite  the  arrangement  for  Intercountry 
adoption  of  non-white  and  particularly  Black 
American-Vietnamese  and  handicapped 
children  for  whom  Vietnamese  agencies  and 
ofBclals  have  determined  It  Is  In  their  best 
interest. 

The  stetrlng  committee  met  In  New  Tork 
City  on  September  10-12,  and  drafted  a  rec- 
ommendation to  establish  an  organization, 
Interagency  Vietnam  Adoption  Committee 
(IVAC).  whose  membership  would  be  com- 
posed of  designated  representatives  of  the 
agencies  who  participate  in  the  concerted  ac- 
tion required,  as  well  as  other  agencies  con- 
cerned with  effecting  adoption  expeditiously 
and  who  meet  the  criteria  to  t>e  esUbllahed 
by  rVAC.  The  recommendation  was  unani- 
mously approved  by  the  represenUtlves  of 
14  organizations  who  met  on  October  3  and 
rVAC  came  into  being. 

The  objectives  and  function  of  IVAC  are 
as  follows: 


42737 

1.  Locate  and  provide  Black  adoptive  homes 
for  the  estimated  500  abandoned  Black- 
fathered  Vietnamese  orphans. 

2.  Determine  the  nature  and  extent  of 
problems  of  these  chUdren. 

3.  Enter  into  purchase  of  service  agree- 
ments with  the  adoption  agencies  recognized 
by  the  Government  of  Vietnam's  Ministry  of 
Social  Welfare  to  expedite  the  required  adop. 
tlon  services. 

4.  Enter  into  purchase  of  service  agree- 
ments with  licensed  adoption  agencies  in  the 
VS.  to  locate  adoptive  homes  In  the  Black 
Community  and  provide  other  pre-  and  post- 
adoptive  supportive  services. 

5.  Monitor  and  evaluate  accomplishment 
of  the  goals  and  objectives  of  the  project. 

An  Executive  Committee  was  elected  by 
the  full  membership,  and  Is  presently  draw- 
ing up  by-laws  and  budgets,  as  weU  as  draft- 
ing proposals  for  funding  for  consideration 
by  AJX).,  other  appropriate  government 
agencies,  and  private  foundations  and  cor- 
porations. The  Committee  also  Is  recruiting 
a  fuU-tlme  Secretary-General  and  two  pro- 
fessional staff  memberSklt  is  expected  that 
the  full  membership  of  IVAC  will  meet  again 
prior  to  December  1  to  act  upon  the  work  of 
the  Executive  Committee. 
Sincerely  yours. 

Matthew  J.  Haevey. 
Assistant  Administrator  for 

Legislative  Affairs. 

Meetinc    on    Placement    and    Adoption    or 
Vietnamese  Children  in  American  Homes 
1.  summary,  conclusions  and 
recommendations 
The  meeting  opened  on  the  morning  of 
July  25th  with  a  charge  from  AID  to  come 
up  with  specific  recommendations  to  guide 
the  VS.  Government  in  Its  efforts  on  behalf 
of  Vietnamese  children,  particularly  inter- 
country adoption  for  hard-to-place  children, 
and  It  was  announced  that  a  future  meet-' 
Ing  with  broader  participation  was  planned 
to  address  the  larger  question  of  famUy  and 
chUd  welfare. 

The  overaU  child  welfare  plctiire  In  Viet- 
nam was  summarized  for  the  conference  by 
expert  participants  and  It  was  pointed  out 
that  an  estimated  500  American -fathered. 
Black  ChUdren  now  in  residential  Institu- 
tions In  Vietnam  present  a  specific  targwt 
within  an  overall  population  of  some  880,000 
full  or  half-orphans,  with  only  35,000  chU- 
dren living  in  group  care.  Among  this  num- 
ber of  children  are  some  1,000  raclallv-mlxed, 
out  of  a  total  American-fathered  estimate  of 
10-25,000.  A  best  esOmate  is  that  half  of  these 
ChUdren  (or  500)  are  fathered  by  Black 
Americans  or  other  non-White  Americana. 
Because  of  Vietnamese  preference  for  light 
skin  coloring,  as  well  as  the  absence  of  any 
Black  community  in  Vietnam,  the  plight  of 
these  five  hundred  chUdren  is  seen  as  partlc- 
tilarly  serious. 

It  was  cautioned,  however,  that  any  crash 
program  would  need  to  be  viewed  within  the 
context  of  services  fM-  all  disadvantaged 
ChUdren  and  meshed  with  the  policies,  plans 
and  programs  of  the  Ministry  of  Social  Wel- 
fare (MSW)  and  the  Mlnistrv  of  Health 
(MOHl.  The  •doptlon  agencies  In  Vietnam 
also  reported  that  they  did  not  ctxislder  a 
"consortium"  of  agencies  was  required  and 
reported  on  the  successful  discussions  of  a 
working  group  in  Vietnam  on  cc«iimon  prob- 
iwns  in  adoptions.  Their  report  recommended 
that  the  U.S.  based  agencies  agree  on  com- 
mon policies  and  procedures  and  stated  that 
the  particular  need  in  Vietnam  was  not  for 
■another  adoption  agency"  but  for  medical 
personnel,  supplies,  and  other  assistance  to 
Improve  the  health  and  nutrition  of  small 
ChUdren  In  institutions  and  Improve  medical 
faculties  for  those  In  process  of  Inter-oountry 
adoption. 

As  the  repreoenutlvee  from  the  adoption 
agencies    in    Vietnam   described    their   pro- 


42738 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


grams,  however.  It  became  clear  that  the 
UMsX,  active  adoption  a^ncy.  FriendB  oif 
Children  of  Vietnam  (PCVN)  concentrated 
primarily  on  rescuing  the  "dying  infant" 
who  might  be  raclally-mlzed  but  In  moat 
cases  is  an  ethali;  Vietnamese,  abandoned 
child.  The  Holt  Adoption  Program  (HAP)  is 
Just  getting  started  In  Vietnam  and  Inter- 
national Social  Service  (ISS)  Is  primarily 
occupied  with  problems  of  family  reunion 
and  migration  counselling,  with  less  atten- 
tion to  Inter-country  adoption  to  date.  Now 
that  the  MSW  has  advised  orphanage  direc- 
tors that  adoptions  must  be  processed 
through  GVN  registered  adoption  agencies, 
there  is  a  large  backlog  of  "private"  adop- 
tions that  have  recently  been  referred  to  the 
operating  agencies  r;nd  must  be  cleared  up 
The  home  ofllces  of  the  Vietnam  agencies  are 
swamped  with  a  flood  of  applications  from 
White  families  who  have  indicated  thetr 
desire  to  adopt  any  child — ethnic  Vietnam- 
ese. Montagnard.  raclally-mlxed  (White  or 
Black).  As  a  result,  the  present  agencies  are 
confident  that  they  can  And  homes  for  all 
children  from  Vietnam  who  might  become 
available  for  adoption. 

The  representatives  from  the  agencies 
serving  the  Black  community  at  the  confer- 
ence asked  for  clarification  of  the  emphasis 
on  tnter-country  adoption  and  questioned 
the  sele-tlor.  of  Caucasian  homes  in  the 
Unl-.ed  States  for  non-White  children  Con- 
cern was  expressed  that  "we  no:  Impose  our 
les.3  than  successful  US  concepts  of  child 
care"  on  Vietnam  They  stressed  that  the  re- 
cruitment of  Black  homes  for  500  children 
was  not  a  problem  but  at  the  same  time 
made  clear  that  the  Black  community  would 
not  b«  prepared  to  senr'lce  the  agencies  op- 
erating In  Vietnam  unless  a  major  voice  in 
policy  at  all  levels  was  assured  Their  posi- 
tion IS  that  non-White  children  should  be 
placed  In  non-White  homes  In  the  United 
States  as  they  are  labelled  as  "Black"  as  soon 
as  they  land  \n  the  United  States  Only  a 
Black  family  can  teach  such  children  how 
to  cope  with  the  complexities  involved  In 
Black-White  relationships  in  the  United 
States.  Black  consciousness  ani  pride  essen- 
tial to  survival  and  a  feeling  of  group  Iden- 
tity so  essential  today  In  the  United  States. 
The  position  of  the  Child  Welfare  League 
of  America  supports  the  position  that  in  the 
adoption  placement  of  Black  children  or 
other  ethnic  minorities,  priority  should  be 
given  to  placement  of  these  children  in 
homes,  the  families  of  which  reflect  the 
ethnic  Identlfloatioa  of  the  child. 

There  was  a  full  discussion  of  ways  of 
combining  the  resources  of  the  adoption 
agencies  in  Vietnam  with  the  resources  of 
other  agencies  In  the  United  States  which 
have  special  expertise  in  helping  Black  chil- 
dren. The  request  from  the  agencies  In  Viet- 
nam for  assistance  with  medical  care  and 
nutrition  was  discussed  by  the  group  and  It 
was  deeded  that  the  oSSclal  proceedings 
could  reflect  thla  concern  with  a  recommen- 
dation to  AID  for  prompt  and  expeditious 
i-tion  The  specific  proposal  submitted  was 
cot  ac:«d  upon  by  the  group.  The  repre- 
sentatives from  the  Black  agencies  In  the 
United  States  on  the  second  day  of  the  meet- 
ing submitted  a  position  paper  in  support  of 
a  concerted  program  of  effort  for  the  place- 
ment of  abandoned  Black  Vietnamese  chil- 
dren from  orphanages  to  homes  In  the  United 
States  In  the  course  of  the  dlsciission.  the 
followmg  statement  of  purpose  for  such  an 
effort  wa»  developed 

"The  thmat  of  the  consortium  would  be  to 
assist  American-fathered.  non-White,  espe- 
cially Black   orphans  in  Vietnam  by- 

1  Expediting  and  faciliutlng  the  adoption 
of  these  children  Including  direct  ■ervlcea  by 
the  consortium  and  in  conjunction  with  the 
agencies  presently  operating  In  Vietnam. 

2  Providing  coxuultatlon  and  technical  as- 
sistance to  agencies  serving  the  Black  com- 


munity and  those  agencies  recognized  by  the 
Government  of  Vietnam. 

3  Cooperating  with  AID  In  relation  to  pro- 
grams bearing  upon  the  needs  and  problems 
of  these  children." 

The  concept  of  a  consortium  of  appro- 
priately designated  American  based  adoption 
agencies  to  focus  on  these  raclally-mized 
children  In  Vietnam  (for  adoption  by  fami- 
lies in  the  United  States)  was  carefully  ex- 
amined. During  the  deliberations,  several  ad- 
vantages were  noted:  the  value  of  the  focus- 
ing of  pooled  resources  on  the  immediate 
needs  of  a  special  child  population  group, 
the  Introduction  of  additional  resources  (re- 
sources of  the  Black  community);  and  the 
possibility  of  existing  adoption  agencies 
(serving  Vietnam)  continuing  to  pursue 
their  present  program  priorities,  while  at  the 
same  tune  actively  participating  Li  program 
de.elopments  designed  to  meet  the  needs  of 
American-fathered  children  abandoned  to 
child  welfare  institutions. 

On  the  other  hand,  objections  raised  in- 
cluded the  addition  of  another  age.icy  in 
Vietnam:  availability  of  existing  agencies  to 
deal  with  this  group  of  children  as  they  are 
currently  domg;  the  dlfflculty  of  relating  the 
unique  and  non-traditlonal  structure  of  an 
agency  such  as  Friends  of  Children  of  Viet- 
nam (PCVN)  to  a  consortium;  and  the  plac- 
ing of  a  priority  on  a  small,  selected  group 
of  children  when  other  considerations,  such 
as  those  referred  to  above  by  the  existing 
agencies  In  Vietnam.  If  dealt  with,  would 
facilitate  all  intercountry  adoptions.  With 
the  exception  of  two  representatives  of  the 
skgencies  currently  operating  in  Vietnam.  It 
was  agreed  to  accept  the  principle  of  a  con- 
sortium approach  to  provide  adoption  serv- 
ices to  American-fathered  children,  partic- 
ularly those  who  are  non-White.  Such  an 
effort  woiild  Include  an  advisory-  or  govern- 
ing Board  of  Directors  and  Staff  drawn  from 
the  participating  agencies. 

By  consensus,  the  meeting  then  decided 
to  appoint  a  sub-committee  to  draft  the 
frames  of  reference  for  the  program,  includ- 
ing the  proposed  articles  of  incorporation 
and  a  plan  of  activities  for  the  concerted 
effort,  for  distribution  to  all  participating 
agencies  After  the  participants  have  reacted 
to  the  draft  of  the  proposed  organization, 
and  Its  suggested  activities,  another  ooeet- 
ing  would  be  convened  by  AID  to  consider 
the  plan  submitted  for  approval.  Interna- 
tional Social  Senlce  (ISS)  agreed  to  serve 
as  the  convenor  of  the  sub-committee  and 
to  serve  as  the  conduit  for  the  possible  A  ID 
grant  or  funds  from  other  sources  to  finance 
the  planning  stages  of  the  effort  Church 
World  Service  (CWS)  agreed  to  loan  tl.OOO  00 
to  ISS  pending  receipt  of  funds  from  A.I.D. 

Pour  members  and  one  alternate  were  se- 
lected for  the  sub-committee  by  separate 
caucusing  of  agencies  operating  In  Vietnam 
and  the  Black  agencies  respectively — two 
from  each  group.  Dr.  EKimpson  and  Mr  Mun- 
ro  were  requested  and  agreed  to  serve  as 
consultants   to  the  effort 

In  addition  to  advising  that  AID  take  ex- 
pediuous  action  to  provide  medical  facili- 
ties for  the  use  of  adoption  agencies  In  Viet- 
nam. It  was  formally  recommended  that  AID 
convene  a  follow-up  conference  with  broader 
participation  to  dlactias  the  total  area  of 
family  and  child  welfare  In  Vietnam.  There 
was  some  discussion  that  this  conference 
might  be  held  in  Saigon  preceded  by  pre- 
liminary meetings  in  both  the  United  States 
and  Vietnam  to  facilitate  extensive  partici- 
pation by  both  Vietnamese  and  American 
Individuals  and  agencies  with  spec&l  Inter- 
eat  and  competence  In  family  and  child 
welfare. 

At  the  concliislon  of  the  conference,  sev- 
eral participants  noted  the  gratifying  spirit 
of  cooperation  and  understanding  among  all 
of  the  members  which  had  made  It  pc»alble 
to  accocnpllsh  so  much  in  a  period  of  only 
two  days. 


n.  PBOcxsmNcs 


A.  Opening  remarka 

Mr.  Oamett  Zlmmerly,  Deputy  Administra- 
tor, Bureau  of  Supporting  Assistance.  Agency 
for  International  Development,  officially  wel- 
comed the  participants  to  the  two-day  con- 
ference to  discuss  the  desirability  of  an  ex- 
panded network  of  services  In  the  United 
States  to  facUlUte  and  expedite  suitable 
adoption  placements  in  American  homes  for 
Vietnamese  children  for  whom  this  alterna- 
tive has  been  determined  in  Vietnam  to  be 
the  best  plan  for  the  Individual  child. 

AID  appreciates  the  participants  willing- 
ness to  share  their  Ideas  and  guidance  on 
mter-country  adoption  which  is  recognized 
as  only  one  aspect  of  the  larger  problem  of 
the  welfare  of  disadvantaged  children  In 
Vietnam.  TTiere  will  need  to  be  varied  ap- 
proaches to  helping  these  children,  and  adop- 
tion Is  seen  as  affecting  only  a  limited  num- 
ber of  children. 

Mr.  Zlmmerly  stressed  the  Importance  of 
working  closely  with  the  Government  of 
Vietnam  and  the  Vietnamese  voluntary 
agencies,  with  care  to  coordinate  each 
agency's  contribution,  and  that  of  the  United 
States  Government,  to  assure  fullest  benefit 
from  the  available  resources.  He  pointed  to 
the  admirable  record  in  Vietnam  of  a  spirit 
of  close  coordination  on  the  part  of  the  vol- 
untary agencies  and  stressed  AID  gratifica- 
tion for  their  spirit  of  cooperation,  as  well. 
He  pointed  out,  however,  that  the  general 
public  was  both  misinformed  and  unln- 
fornaed  of  the  situation  In  Vietnam  and  the 
work  of  the  United  States  Government  and 
the  voluntary  agencies.  The  Inquiries  re- 
ceived by  AID.  stemming  from  the  June  19th. 
NBC  Telecast,  -The  Sins  of  Fathers''  testifies 
to  this  Ignorance. 

Almost  all  of  the  resources  of  the  Bureau 
of  Supporting  Assistance  for  Vletnani  are 
now  being  allocated  for  chUd  welfare  and 
refugee  assistance  with  an  ultimate  goal  of 
helping  the  Vietnamese  deal  with  these  prob- 
lems themselves.  The  level  of  resources  for 
ne.Tt  year  Include  $2.5  million  specifically  for 
child  welfare,  along  with  50%  of  the  $77  mil- 
lion programmed  for  refugees,  and  50'~-  of 
$11  million  for  health.  In  addition.  Food  for 
Peace  commodities  are  made  available  to  the 
GVN  and  voluntary  agencies  for  distribution 
to  schools,  orphanages  and  day  care  centers. 
AID  has  also  begun  an  extensive  nutrition 
survey  and  the  findings  will  help  determine 
future  allocations  of  funds  on  behalf  of  chil- 
dren, to  make  best  use  of  available  resources. 

One  ingredient  that  AID  cannot  provide 
and  must  look  to  the  voluntary  agency  for 
Is  "TLC".  or  tender  loving  care.  TLC,  patience 
and  hard  work  are  the  special  characteristics 
of  voluntary  agency  operations  around  the 
world. 

The  level  of  contributions  of  other  Na- 
tional donors  during  the  post  cease  fire  pe- 
riod are  still  not  clear.  Stability  and  security 
remain  a  major  concern  In  both  North  and 
South  Vietnam.  Announcements  of  other 
donor  contributions  are  anticipated  soon, 
however,  and  no  scarcity  of  resources  is  an- 
ticipated. The  issue  will  be  the  wise  and 
proper  use  of  resources.  On  this  note,  Mr. 
Zlmmerly  charged  the  participants  to  this 
meeting  to  find  ways  for  each  to  contribute 
to  the  solution  of  the  problem  under  discus- 
sion and  the  conference  was  asked  to  arrive 
at  a  solution  and  make  specific  recommenda- 
tions to  AID  for  consideration. 

In    conclusion,    Mr.    Zlmmerly   announced 
that  AID  plans  to  convene  a  larger  group  in 
the  near  future  to  discuss  the  wider  issue  of 
family  and  child  welfare  In  Vietnam. 
B.  Introductions 

After  Introducing  the  participants  ground 
the  table,  Dr  Martha  Branscombe  under- 
scored that  In  the  deliberations  on  the  needs 
of  the  hard-to-place  children  in  Vietnamese 
residential  institutions,  particularly  those 
fathered  by  American  Blacks,  we  should  not 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42739 


lose  sight  of  the  larger  frame  of  reference  of 
the  needs  of  all  disadvantaged  children  in 
Vietnam.  The  Chairperson  also  pointed  out 
that  there  recently  had  been  a  series  of  meet- 
ings of  the  adoption  agencies  in  Vietnam, 
with  the  U.8.  Mission  and  the  Ministry  of 
Social  Welfare,  and  that  they  had  found  In- 
formal discussions  of  mutual  problems  of 
processing  children,  etc  ,  to  be  quite  useful 
and  the  group  in  Vietnam  has  suggested 
that  the  stateside  adoption  agencies,  serv- 
ing Vietnamese  children,  might  also  profit 
from  mutual  discussions. 

The  task  of  this  meeting  Is  to  see  whether 
there  Is  a  need  for  a  wider  network  to  facili- 
tate placement  of  children  In  the  United 
States.  While  there  Is  apparently  no  lack 
of  families  wishing  to  adopt  Vietnamese 
children.  Dr.  Branscombe  said  that  it  Is  im- 
portant to  consider  whether  the  most  ade- 
quate and  suitable  homes  are  bemg  used  for 
these  children  coming  from  orphanages  in 
Vietnam. 

Other  aspects  to  be  discussed  are  the  num- 
bers of  children  available  for  adoption,  pro- 
cedures In  Vietnam  and  the  United  States, 
adequacies  of  facilities,  and  the  need  for  more 
cooperation  among  the  agencies.  The  hope 
was  expressed  that  the  participants  would 
engage  fully  and  freely  In  their  dlsctisslons 
and  arrive  at  specific  conclusions  and  recom- 
mendations. 

C.  Needs  and  problems  of  Vietnamese  chil- 
dren: implications  for  inter-country 
adoption 

Dr.    James    R.    Dumpson,    dean,    Fordham 
University  School  of  Social  Work 
Dr.    Dumpson    acknowledged    with    satis- 
faction   and   encouragement   the    leadership 
demonstrated  by  AID  in  convening  the  meet- 
ing  to   consider   the   best   way   to  pool   and 
allocate  resources  on  behalf  of  children   in 
Vietnam.  He  Identified  his  task  as  summariz- 
ing the  documents  before  the  conference  and 
sharing  his  insights  Into  the  situation  based 
on  his  participation  in  an  AID  Social  Welfare 
Task  Force  Report  In   1967;    a   1971   visit  to 
evaluate  a  community  development  project 
m  Saigon;  and  most  recently,  a  1973  three- 
week  visit  for  the  VS.  Senate  Sub-Commit- 
tee on  Refugees  and  Migration. 
( 1 )  The  Child  Welfare  SetUng : 
The     significant     statistical      dimensions 
(found   also  in   the   conference  documents) 
are  that  60 "T-  of  the  country's  entire  popula- 
tion are  children  under  the  age  of  16  years 
of  age — all  of  them  war  victims  in  one  way 
or   another.   There    are    almost   one    mUllon 
(880,000)    described  as  orphans    (missing  at 
least  one  parent).  It   Is  significant  to  note 
the     strength     of     the     Vietnamese     family 
structure    and    Its    traditional    role,    when 
pointing  out  that  there  are  only  some  25,000 
children    living    in    residential    Institutions, 
with  the  great  majority  of  the  orphans  llTlng 
with  their  mothers  or  other  relatives.  Sim- 
ilarly, the  estimates  of  the  number  of  raclal- 
ly-mlxed children  run  from  10,000  to  25,000, 
with  firmer  statistics  that  only  some   1,000 
have  been  abandoned  to  Institutions.  One- 
half  of  the  racially-mixed  children  in  insti- 
tutions (500)  are  estimated  to  be  fathered  by 
non-White,  Black  Americans.  It  U  also  sig- 
nificant to  note  that  the  number  of  raclally- 
mlxed  children  in  Institutions,  although  rela- 
tively  small,   has   doubled    since    1971. 

Dr.  Dumpson  cautioned  that  In  focusing 
on  statistics  that  reflect  neglect  by  the  Gov- 
ernment of  Vietnam  (GVN)  or  the  United 
SUtes  of  America  (USA),  we  should  not 
lose  sight  of  the  GVN's  Increased  social 
awareness  of  children's  needs  and  the  pro- 
grama  It  has  Initiated  not  only  In  child  wel- 
fare, narrowly  defined,  but  In  education, 
health  and  nutrition  as  well  Whatever 
action  the  conference  decides  to  undertake. 
It  should  be  done  In  the  context  of  the 
activities  of  the  Ministry  of  Social  Welfare 
of  the  GVN. 
The  QVN.  by  policy,  has  assigned  highest 


priority  to  the  development,  care  and  pro- 
tection for  disadvantaged  children.  Not  un- 
like the  experience  In  the  United  States. 
however,  the  gap  between  policy  and  per- 
formance, as  demonstrated  by  the  allocation 
of  resources  to  meet  child  need.  Is  great.  It 
Is  most  important  to  note,  however,  that 
policy  has  been  enunciated  and  there  Is 
evolving  some  structure  within  the  GVN,  and 
In  its  formal  relationship  with  voluntary' 
agencies,  to  move  from  policy  to  program 
planning  to  program  operation  and  service 
delivery. 

The  G'VN  sees  all  chUdren  bom  In  Vietnam 
as  Vietnamese,  irrespective  of  the  condition 
of  their  birth  or  the  accidents  of  parentage. 
This  fact  Is  basic  to  any  effort  on  the  part 
of  foreign  agencies  to  assist  in  the  care  and 
protection  of  children  in  Vietnam,  regardless 
of  mixed  parentage,  color,  or  any  other  fac- 
tor. The  MSW  staff,  including  a  socUl  worker 
trained  in  the  United  States  and  previously 
employed  by  International  Social  Service/ 
Vietnam,  shared  with  Dr.  Dumpson  a  pro- 
gram position  paper  that  clearly  outlines  the 
MSWs  child  welfare  program  goals  and  re- 
flects a  high  quality  of  policy  and  program 
development  skills. 

Dr.  Dumpson  stated  that  as  the  partici- 
pants relate  to  the  data  presented,  to  the 
emerging  policies  and  efforts  to  Implement 
policies  through  programs,  and  as  the  effort 
Is  made  to  relate  our  concerns,  resources,  and 
efforts  to  child  need  In  Vietnam  .  .  .  what- 
ever our  motivations  ...  it  Is  Important  to 
remember  that  In  aU  developing  countries, 
and  In  developing  areas  of  developed  coun- 
tries, there  Is  a  lag  between  the  breakdown 
of  traditional  patterns  of  social  organization 
and  the  Institutionalization  at  the  national 
level  of  new  patterns  of  welfare  services  and 
that  Vietnam  Is  no  exception.  The  refugee 
problems  have  been  highly  visible  and  have 
political  and  humanitarian  considerations. 
If  any  population  group  has  commanded  the 
priority  of  government  resources  It  has  been 
the  refugees  and  the  needs  of  children  must 
compete  with  refugees  as  a  group  for  a  share 
of  the  resources  of  Vietnam. 

(2)  American  Fathered  Children: 
These  children  (especially  the  non- White) 
have  very  special  needs.  The  Vietnamese  have 
shown  their  lack  of  acceptance  for  the  dark- 
skinned  Montagnards  and  in  more  recent 
years  have  suffered  heavily  from  the  inter- 
vention of  outsiders.  In  establishing  a  spe- 
cial program  for  American -fathered  chil- 
dren, especially  those  fathered  by  Black 
Americans,  the  following  questions  and  Is- 
sues must  be  confronted : 

(a)  Whose  primary  responsibility  la  It  for 
assuring  quality  care  and  protection  for 
this  group?  How  should  this  be  exercised 
without  doing  violence  or  disservice  to  the 
right  of  all  Vietnamese  children  to  quality 
care  and  protection?  The  GVN?  USA?  Volun- 
tary effort?  Or  a  combination  of  all  of  these'' 

(b)  How  best  may  this  responsibility  be 
carried  out  to  assure  maximum  protection 
throughout  their  minority'  VTh&i  legal  pro- 
tections are  necessan.-  and  how  arf  they  as- 
sured? What  must  be  drne  to  prov.de  legal 
protection  of  the  !;atura;  parents  or  parents 
of  the  child''  What  are  the  alternatives  to 
adopuor,''  It  i.s  important  to  note  that  par- 
ents in  Vietnam  may  abandon  the  child  out 
of  concern  for  h'.s  welfare  and  this  actio:. 
should    not   be    viewed    in    American    terms 

(C)  What  is  the  role  of  American  adoption 
agencies  in  providing  services  t<  American - 
fathered  children's  What  are  the  implica- 
tions of  color  and  mixed -race  parentage  o;i 
the  American  scene''  WTiat  are  the  '.n.plica- 
tlons  of  allocations  to  this  pr-i'ip  •. :-  the  face 
of  unmet  child  welfa.-e  needs  ■:.'.  Black  Puerto 
Rlcan  and  other  ethnic  mln  .ritv  children  i:. 
major  cities  of  the  Ur.ned  States'' 

(d)  Given  the  American  re.sp>on8lhlllty, 
with  the  G'VN,  for  seeking  to  me*t  sq.iareiy 
the  special  needs  of  these  children,  how  do 


we  utilize  existing  structures  and  resources 
and  how  do  we  Increase  the  resource  poten- 
tial? 

(e)  What  alternatives  to  adoption  should 
be  available  to  these  children?  Should  spe- 
cial efforts  be  made  to  make  available  Ameri- 
can citizenship  for  raclally-mlxed  children 
bom  In  Vietnam  when  they  reach  their 
majority,  along  the  lines  adopted  by  the 
French  Government  when  French -Senegalese 
Soldiers  who  fathered  children  during  the 
French  Intervention  In  Vietnam? 

(f)  What  structure,  adrtsory  or  otherwise. 
Is  needed  to  move  toward  Implementation 
of  our  thinking  and  recommendations  that 
emerge  from  the  deliberations  of  this 
meeting? 

Gardner  Munro,  social  work  consultant  and 
former  chief  social  welfare  adviser  to  the 
US.  mission  and  the  Government  of 
Vietnam 

In  discvisslng  the  Implications  of  inter- 
country adoption  on  the  Vietnam  scene,  Mr. 
Munro  noted  that  there  are  two  major  con- 
siderations. First  of  all,  the  strengthening  of 
social  welfare  Instlutlons  and  services 
should  be  a  first  priority  task  for  the  p>ost- 
cease-flre  period.  The  GVN  must  meet  the 
vital  challenge  of  modifying  old  and  creat- 
ing new  social  institutions  to  deal  with  the 
overwhelming  problems  stemming  from  more 
than  two  decades  of  war  and  rapid  social 
change  This  urgent  task  must  be  undertak- 
en to  meet  the  needs  of  refugees,  widows,  or- 
phans and  the  disabled,  and  to  mend  the 
social  fabric  of  the  country.  A  second  con- 
sideration that  must  l>e  faced  squarely  In 
that  the  GVN  relies  on  the  private  sector  to 
carry  out  child  welfare  programs.  The  Min- 
istry of  Social  Welfare  (MSW)  will  not  have 
the  resources  in  trained  personnel  to  oi>erate 
substantial  direct  service  programs  and, 
therefore,  will  depend  for  the  foreseeable 
future  on  Its  expanding  partnership  with 
foreign  and  Vietnamese  vcduntary  agencies. 
AID  has  helped  the  MSW  and  the  Mlnistrv 
of  Health  (MOH)  establish  minimum 
standards  of  care  for  orphanages  and  day 
care  centers,  and  has  given  Impetus  to  the 
GVN's  increasing  Interest  In  the  welfare  of 
children  In  these  Institutions.  In  the  ^rlng 
of  1973,  the  MSW  sponsored  a  three-day  con- 
ference for  all  orphanage  dlrecuirs  where  the 
new  policy  of  referring  children  for  adoption 
to  licensed  agencies  was  Introduced. 

The  major  focus  of  the  meeting  was  on 
the  maintenance  of  adequate  standards  and 
since  that  time  the  MSW  has  )(^ned  forces 
with  the  MOH  to  carry  out  regular  supenrl- 
sory  visits  and  to  implement  corrective  ac- 
tion   through    provincial    government   chan- 
nels. The  GVN  had  not  felt  before  thU  year 
that  It  could  insist  upon  standards,  but  has 
now    made    great    strides    la    that    direction 
since   AID   helped   them   to   expand   govern- 
mental allowances  to  the  child   welfare   In- 
stitutions,   Including    funds    for    renovation 
and   development   of  self-help   activities   as 
well  as  monthly  allowances  on  the  basis  of 
the  number  of  children  cared  for    The  iroal 
for  1973  Is  to  continue  the  dramatic  expan- 
sion of  day  care  services — more  chljd.^^n  are 
cared  for  this  way  than  In  orphanages — and 
to  develop  a  network  of  social  service  centers 
on  a  model  already  initiated   i:.   Dar.anc    to 
serve  women  and  children    aiid  the  d'..s*h;e<i. 
by    setting    up    counselling    and     v  x-st:--al 
training  services  in  already  estah.tshed    and 
privately  operated  community  or  s<.v-:a:  se-r- 
!ce  centers   .\  ma.ior  concern  of  the  MSW  15  to 
flr.d    ways    to    prevent    c.'-.ild    abandonment. 
They  have  been   Impressed,   for  example    by 
the  stjccessful  operation  of  a  pilot  cour.sel'.ng 
seri-ice    m    Saigon    in    a    maternity    hospital 
where    a    monthly    abandonment    rate    four 
years  ago  of  some  60  children  each  month 
has  now   been   reduced   to  only   a   handful, 
through     the    activities    of    two    voluntary 
agency  social   workers   who  have   learned  to 
spot  the  expectant    mother   In   acute   sioclal 


127  JO 


CONC .  R  f  SM(  )N  A I    RBOORD  —  SENATE 


December  20,  197S 


distxess  and  get  her  the  help  which  she  needs 
to  plAn  for  her  new  child. 

The  relatlyely  small  rnunber  of  children 
who  can  be  helped  by  intercountry  adop- 
tion Indicates  the  special  obligation  that 
adoption  agencies  have  to  employ  profession- 
ally trained  social  workers  who  can  fulfill 
the  requlremente  to  strengthen  child  wel- 
fare services  In  Vietnam,  as  well  as  process 
children  for  adoption  by  American  families. 
Adoption  agencies  usually  have  the  most 
highly  trained  child  welfare  staff  among 
foreign  agencies  operating  abroad.  It  should 
also  be  noted  that  a  preoccupation  with  In- 
ter-country adoption  might  well  Increase  the 
flow  of  racUUy-mUed  children,  living  with 
relatives,  to  orphanages  to  qualify  for  Inter- 
country adoption  and  this  should  be  guarded 
against,  however  possible  Adoption  agencies 
should  take  the  lead  in  strengthening  aerv-  . 
Ices  for  all  disadvantaged  children  in  Viet- 
nam 

In  concliislon,  Mr.  Munro  stressed  that  the 
climate  was  excellent  for  an  erpanded  child 
welfare  efTort  In  Vietnam.  The  Dnlted  States 
Oovernment  has  shown  great  Interest,  as 
exemplified  by  this  conference,  and  by  the 
greater  priority  In  Vietnam  for  child  wel- 
fare. The  eagerness  of  the  V3.  Embassy  as 
well  as  USAID  to  facUltate  the  work  of  the 
adoption  agencies  has  been  obvious.  The 
Ministry  of  Social  Welfare  will  also  welcome 
Increased  voluntary  agency  activity  in  the 
area  of  inter-country  adoption  as  long  as  It 
Is  clear  that  new  Initiatives  are  within  the 
framework  of  strengthening  services  for  all 
disadvantaged  children.  Over  the  past  two 
years,  the  M3W  has  accepted  Its  responslbUlty 
for  promoting  the  welfare  of  disadvantaged 
children  and  has  increased  Its  professional 
staff  substantially  The  stage  Is  now  set  for 
an  expanding  and  deepening  partnership  t>e- 
tween  the  MSW  and  foreign  and  Vietnamese 
voluntary  agencies  and  the  climate  is  espe- 
claUy  promising  for  highly  professional.  chUd 
welfare  agencies  that  can  work  within  the 
framework  of  the  OVN  policies  and  programs. 
D    IHjcujjton 

Following  the  presentations  on  the  first 
morning,  the  conference  discussed  exten- 
sively the  activities  of  the  adoption  agen- 
cies In  Vietnam,  how  their  programs  relate 
to  the  American -fathered  Black  child,  and 
the  contribution  to  be  made  by  adoption 
agencies  serving  the  Black  community  in  the 
United  States.  By  the  second  day.  a  con- 
sensus was  reached  that  a  concerted  effort 
was  required  to  meet  the  challenge  of  plac- 
\n%  500  Black  orphans  in  acceptable  homes 
In  the  United  States. 

The  documents  at  Appendix  E  and  P  were 
distributed  at  the  beginning  of  the  discus- 
sion. The  first  contains  Information  on  an 
estimated  6.400  U  S  visas  Issued  American- 
fathered  children  who  were  either  granted 
citizenship  at  birth  (3.970)  or  have  gon« 
to  the  United  States  as  Immigrants  (esti- 
mated 2.940)  since  July  31.  19«9  The  second 
document,  a  letter  signed  by  the  five  Amer- 
ican agencies  now  carrying  out  or  planning 
to  operate  adoption  programs  in  Vietnam, 
reports  on  their  recent  meetings  In  Sal^n 
and  recommends  several  actions  for  consid- 
eration by  the  meeting  These  include:  1) 
Duty  free  Importation  of  vaccines  and  medi- 
cal supplies;  2)  The  services  of  a  medical 
team  to  treat  children  in  process  of  adoption 
to  Instire  "completely  satlafactory  '  medical 
Information  for  visa  and  adoption  use:  and 
3)  Assurance  that  diapers,  baby  bottles,  and 
high  protein  t)aby  foods  and  milk  can  be 
delivered  promptly  now  that  APO  privileges 
have  been  curta^ed  It  was  further  reported 
through  AID  channels  that  these  agendas 
saw  no  need  for  a  consortium  In  Vietnam 
and  doubted  whether  the  MSW  would  favor- 
ably consider  an  additional  adoption  agency 

The  major  adoption  agency  in  Vietnam  In 
terms  of  volume  Is  the  Friends  of  ChUdrm 
of  Vietnam  {FWV),  which  processed  more 


than  400  children  worldwide  for  adoption  In 
1972.  A  staff  of  100  In  Saigon  Includes  eight 
foreign  volunteers  and  92  Vietnamese  to  op- 
erate three  half-way  houses  dedicated  to 
saving  small  babies  from  expiring  In  orphan- 
ages. Adoption  Is  de8crlt>ed  as  secondary  to 
saving  the  lives  of  small  infants,  no  matter 
what  their  color.  Rooemary  Taylor,  the  Sai- 
gon Director,  handles  all  adoption  formali- 
ties In  Vietnam  with  the  assistance  of  one 
other  Vietnamese  staff.  Neither  she  nor  the 
other  foreign  volunteers  are  paid  salaries, 
nor  are  the  volunteer  staff  operating  the 
home  office  In  Boulder,  Colorado.  PXTVN  be- 
gan as  a  volunteer  effort  to  supply  commodi- 
ties to  an  orphanage  In  the  Delta. 

International  Social  Service  (/S5),  en- 
gaged In  Inter-country  adoptions  on  a  world- 
wide basis  since  1952,  operates  an  extensive 
family  reunion  and  migration  counseling 
program,  and  secondarily  processes  children 
for  adoption.  Under  the  direction  of  its  head- 
quarters In  Geneva.  Switzerland.  ISS  has 
given  special  attention  to  helping  relatives 
of  foreign  citizens  with  migration  problems 
It  was  mentioned,  however,  that  ISS  Ameri- 
can Branch,  at  a  recent  board  meeting,  made 
the  decision  to  expand  Its  adoption  work 
In  Vietnam. 

The  Holt  Adoption  Program  (HAP),  began 
Its  program  In  Vietnam  in  March,  1973,  and 
expects  to  be  fully  operational  in  the  next 
few  months  Their  major  program  has  been 
In  South  Korea,  where  an  ofllce  was  opened 
17  years  ago  They  estimate  that  Holt  has 
helped  some  11.000  chUdren  find  adoptive 
homes  overseas.  Holt  also  carries  out  an  ex- 
tensive program  to  develop  local  child  wel- 
fare services  In  South  Korea  and  has  already 
Initiated  a  maternity  care  clinic  and  nursery 
at  the  Tu  Do  Hospital  In  Saigon  The  antici- 
pation Is  that  priority  will  be  given  to  help- 
ing the  abandoned  and  or  dying  infant  In 
residential  Institutions,  regardless  of  color. 
The  volume  of  Korean  adoptions  exceeded 
2.000  last  year  and  Is  expected  to  increase 
again  this  year  as  more  infants  are  relin- 
quished in  that  country  for  adoption. 

World  Vtsiem,  one  of  the  signatories  to  the 
letter  at  Appendix  P,  until  recently  has 
operated  a  half-way  house  in  Saigon  In  a 
buUdIng  provided  by  the  MSW  The  program 
was  aimed  at  the  provision  of  temporary  care 
for  malnourished  children  from  Institutions 
and  the  care  of  children  In  the  proce«s  of 
adoption  either  under  the  auspices  of  World 
Vision  or  other  agencies  utilizing  the 
faculties 

Catholic  Relief  Services  (CRS).  the  fifth 
signatory  to  the  letter,  had  operated  an  Inter- 
country adoption  program  in  the  late  IMO's 
in  Vietnam,  discontinued  the  activity,  and 
Is  now  considering  resuming. 

Selection  of  ChUdren 

The  discussion  emphasized  that  priority 
was  now  being  given  to  the  dying  infant  by 
both  orphanage  directors  and  the  adoption 
agencies,  particularly  PCV'N  This  has  im- 
plications for  ^e  extensive  medical  care  that 
is  required  to  save  these  chUdren  and  get 
them  In  shape  to  pass  visa  requirements  In 
addition,  prospective  adoptive  parents 
I  PAPS  1  can  expect  extensive  medical  bUls 
during  the  post -placement  period  as  chU- 
dren frequently  suffer  from  a  number  of  Ul- 
nesses  not  fuJly  dlsgnosed  or  treated  prior 
to  placement  In  the  United  States.  One 
agency  reported  using  a  warning  about  the 
poor  state  of  health  of  these  arrlvuig  chUdren 
as  a  means  of  screening  out  lukewarm 
applicants. 

An  additional  factor  In  the  selection  Is 
that  the  current  policy  of  the  MSW  requires 
that  all  adoptions  be  processed  by  one  of 
the  registered  adoption  agencies  This  has 
Increased  the  number  of  applications  to 
agencies  from  couples  who  have  already  lo- 
cated their  prospective  chUdren  through 
private  channels  and  are  turning  to  agencies 
for  help  The  processing  of  these  cbms  U  very 


difficult  and  the  optimal  situation  ts  for 
agencies  to  locate  needy  and  legally  avaUable 
ChUdren  and  match  them  to  families,  with 
completed  home  studies,  on  an  approved 
waiting  list.  KCVN  estimates  that  60%  of  Its 
current  caseload  Is  a  backlog  of  private  adop- 
tions requiring  regularlzatlon. 

Under  these  circumstances.  It  was  reported 
that  the  agencies  did  not  feel  priority  could 
be  given  within  the  present  resources  to  the 
Black  orphans,  and  that  there  would  stUl  be 
a  problem  of  obtaining  the  releases  of  those 
children  from  orphanages  unless  they  were 
UteraUy  at  death's  door. 

Some  of  the  pcu^lclpants  at  the  meeting 
asked  for  further  clarification  of  the  choice 
of  ChUdren  for  Inter-country  adoption  and 
raised  the  question  of  the  need  for  technical 
assistance  to  help  develop  chUd  welfare  serv- 
ices In  Vietnam.  The  question  was  posed, 
"Are  we  helping  the  Vletnameee  deal  with 
their  own  chUd  welfare  problems,  or  are  we 
Imposing  our  own  concepts  to  child  care 
which  have  been  less  than  successful  in  the 
United  States?" 

There  was  astonishment  expressed  that 
only  1,000  raclally-mlxed  children  were  la 
residential  Institutions  and  It  was  noted  that 
more  Information  was  needed  on  how  Black 
children  are  surviving  outside  of  institu- 
tions. 

The  Role  of  the  Ministry  of  Social  Welfare 

During  the  winter  and  spring  *  1973.  the 
MSW  has  t«Uen  a  very  active  roj  in  inter- 
country adoption,  first  In  forcing  the  regis- 
tration of  Miss  Rosemary  Taylor's  activities 
under  the  auspices  of  PCVN,  and  then  advis- 
ing orphanage  directors  and  hospital  per- 
sonnel that  It  expects  all  adoptions  to  be 
processed  by  the  agencies  It  has  regutered 
for  that  purpose  The  MSW  has  also  set  up 
an  adoption  unit  to  handle  those  cases  not 
referred  to  the  foreign  agencies.  There  was 
some  discussion  of  the  newly  proposed  adop- 
tion law.  which  has  been  prepared  for  the 
MSW  by  a  study  group  from  the  Association 
for  the  Social  Sciences,  headed  by  Mrs 
Pham  ThI  Tu.  Directress  of  the  National 
School  for  Social  Work 

The  voluntary  agencies  have  had  an  op- 
portunity to  provide  comments  on  an  Initial 
draft  which  has  now  been  sent  back  to  the 
study  group  by  the  MSW  for  redrafting.  Dr. 
Dumpison  pointed  out  that  the  major  change 
that  the  MSW  wished  to  make  was  to  have 
the  new  law  "chUd  centered"  rather  than 
primarily  concerned  with  legal  rights  of 
adopting  parents.  The  sensitivities  of  the 
MSW  to  an  overemphasis  on  Inter-country 
adoption  was  stressed.  A  suggestion  was 
made  that  new  agencies  wishing  to  help 
with  child  health  might  apply  to  the  Minis- 
try of  Health  rather  than  the  MSW  for 
registration,  as  the  MSW  was  understaffed 
and  overburdened  with  Its  expanded  duties. 
Dr  Dumpson  cited  the  favorable  reaction 
of  the  Minister  of  Social  Welfare.  Dr  Tran 
Nguon  Phleu  to  the  Idea  of  a  "consortium" 
approach  to  the  Black  orphan,  as  well  as 
the  support  of  the  Assistant  Minister  for 
Social  Welfare.  Dr  Vuu  Ngoc  Oanh  during 
his  recent  trip  to  the  United  States. 
Processing  In  Vietnam 

On  the  second  morning  of  the  conference, 
the  partlclpcmts  had  an  opportunity  to  re- 
view U.S.  adoption  procedures  with  two 
representatives  from  the  US.  Immigration 
and  Naturalization  Service  (INS). 

In  the  summer  of  1972,  the  American  Em- 
tMssy  was  successful  In  persuading  the  OVN 
to  streamline  adoption  procedures  so  that 
children  could  be  sent  to  the  United  States 
before  completing  the  time  consuming  Viet- 
nam legal  adoption  which  used  to  take 
more  than  one  year  With  the  change.  It  is 
now  possible  for  an  orphan  child  with  a 
birth  certificate  to  be  Issued  a  visa  by  the 
OVN  within  four  weeks  or  less  The  Im- 
migration and  Naturalization  Service   (INS) 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42741 


1-600  petition  normally  takes  from  six 
weeks  to  three  months  depending  on  the 
regional  office  in  the  United  States.  In  an- 
swer to  questions  from  the  AID  representa- 
tive. It  was  clarlfled  that  since  AprU  1973. 
consular  officials  In  South  Vietnam  have  been 
delegated  the  authority  to  process  the  ap- 
proval of  the  chUd's  paper?  or  the  1-004 
report  This  haB  removed  the  period  of  wait- 
ing for  the  INS  official  from  Hong  Kong  to 
visit  Saigon.  The  adoption  agencies  had  high 
pntlae  for  the  dedication  and  hard  work  of 
the  UjB.  consular  officials  on  behalf  of  Viet- 
namese orphans.  , 

When  the  backlog  of  prK^ate  adoptions  Is 
completed,  it  should  be  possible  to  achieve 
the  Ideal  of  "only  parents  wait,  not  chU- 
dren" Another  agency  representative  com- 
mented that  It  was  not  desirable  to  shorten 
the  INS  waiting  period,  as  at  least  three 
months  was  usually  required  to  meet  a 
chUd's  health  problems. 

A  major  problem  faced  Is  obtaining  birth 
certificates.  This  Is  particularly  true  for 
older  orphans  and  adoption  agencies  must 
deal  with  the  fact  that  chUdren  are  often 
given  the  names  of  fictitious  mothers  by 
orphanages  when  they  apply  for  documenta- 
tion. The  MSW  Is  also  very  aware  of  the 
fact  that  over  half  of  the  chUdren  in  resi- 
dential Institutions  are  not  certifiable  or- 
phans (having  one  or  more  living  parents) 
and  have  considered  tightening  funding  pro- 
cedures so  that  orphanage  allowances  are 
calculated  on  the  number  of  true  orphans 
rather  than  the  total  number  of  chUdren 
under  care.  ChUdren  lacking  birth  certifi- 
cates are  not  able  to  enroll  In  school  and  It 
Is  anticipated  that  raclally-mlxed  chUdren 
will  have  a  special  problem  in  this  area,  as 
they  did  In  South  Korea,  as  their  mothers 
are  reluctant  to  apply  for  the  correct  docu- 
ments. 

UntU  there  is  a  change  In  the  adoption 
law,  the  prtxiessing  of  documents  in  Vietnam 
Is  handled  by  the  Ministries  of  the  Interior 
and  Foreign  Affairs.  The  MSW  Is  excluded 
except  for  its  authority  to  register  voluntary 
agencies  and  responsibility  to  monitor  the 
operations  of  child  welfare  institutions.  This 
has  meant  that  private  adoptions  are  still 
being  processed  In  spite  of  the  MSWs  order 
that  all  adoptions  be  handled  by  registered 
agencies. 

Selection  of  prospective  adoptive  parents 
The  home  offices  of  the  overseas  adoption 
agencies  are  swamped  with  requests  for  chU- 
dren. With  the  reduction  of  the  number  of 
abandoned  babies  In  the  United  States,  there 
has  been  an  overwhelming  demand  for  adop- 
table   ChUdren   from   overseas.    When    "Dear 
Abby'   ran  a  column  on  Inter-country  adop- 
tion, for  example,  one  agency  received  7.000 
Inquiries    in    one    month.    The    recent    NBC 
telecast,   -The  Sins  of  the  Fathers'  on   the 
plight  of  American  fathered  chUdren  In  Viet- 
nam has  added  to  the  severe  pressure  on  the 
agencies.  Most  of  the  applications  from  pros- 
pective adoptive  parenu   (PAPS)   have  been 
from  White  couples.  The  Vietnam  adopOon 
agencies  routinely  place  BUck  orphans  with 
White  couples  as  a  result    In  fact,  many  of 
the  White  couples  have  specified  their  pref- 
erence for  racially-mUed.  Black  chUdren  The 
agencies  place  Black  children  in  Black  homes 
If  the  homes  are  available,  however,  and  one 
agency  has  InltUted  a  series  of  Internal  in- 
centives to  encourage  Black  couples  to  adopt 
such  as  reduced  fees,  travel  cosu.  etc   Over- 
all, few  Black  couples  are  applying  for  chU- 
dren from  Vietnam— maybe  1  %  of  the  total 
number  of  requests. 

The  observation  was  made  that  there 
seemed  to  be  a  tendency  to  try  to  meet  the 
needs  of  PAPS  rather  than  chUdren.  On  the 
other  hand,  as  the  Vietnamese  agencies 
pointed  out,  their  major  focus  was  on  saving 
dying  children  The  agencies  also  supported 
local  Vietnamese  institutions  oaring  for  chil- 
dren who  will  not  be  going  for  adoptlmi. 


The  danger  of  over-encouraging  PAPS 
without  being  abie  Uj  satisfy  their  requests 
foe  ChUdren  was  discussed,  and  the  comment 
also  made  that  It  *-as  not  an  accurate  as- 
SumpUon  that  an  agency  can  pl&c-e  a  chi:d 
wltll  a  faailiy  and  then  not  provide  foHow-up, 
post-placement  ser^-lces  Adoptive  faraU.:es 
and  children  need  a  great  deal  of  help,  espe- 
cially children  from  oversea.'; 

The  Black  ager»c!ee  poliited  out  recent  suc- 
cessful efforvs  to  find  Black  homee  for  Black 
ChUdren  In  the  United  States  aj.d  predicted 
that  a  goaJ  of  5C>ri  homes  couia  etisc'.y  be  met. 
However.  B;ack  adoptive  c  uplee  wCi  not 
apply  to  traditiona:  agenc;es  One  Black 
agency  recruited  some  250  famUles  and  re- 
ferred them  to  a  prlvaie,  statewide  adoption 
agency,  only  to  have  most  of  :!;em  rejected 
because  of  restrictive  agency  practices.  The 
agencies  with  programs  In  Vietnam  stressed 
that  there  are  adoption  agencies  all  over  the 
United  States  pleading  for  chUdren,  without 
reference  to  color. 

The  Vietnam  agencies  were  praised  for 
their  sacrifice  and  hard  work  on  behalf  of 
ChUdren,  regardless  of  color,  but  it  was 
pointed  out  that  when  a  chUd  arrives  In  the 
United  States  he  Is  automatlcaUy  labeUed 
"Black"  and  his  adoptive  parents  must  help 
him  deal  with  this.  One  of  the  pcu^clpants 
mentioned  that  Black  children  in  White 
families  oould  be  viewed  as  amhaasadors  of 
brotherhood  and  Integration,  with  the  cor- 
responding comment  made  that  chUdren 
should  not  be  used  for  social  experiments 
and  that  such  a  placement  adds  an  additional 
burden  to  the  chUd's  adjustment.  The  de- 
mand of  the  Black  agency  repreaentatives 
that  Black  chUdren  be  placed  with  Black 
famUles  is  supported  by  the  official  policy 
of  the  ChUd  Welfare  League  of  America,  ac- 
cording to  its  representative  at  the  meeting, 
which  states  that  Black  homes  for  Black 
ChUdren  should  be  used  wherever  possible. 

The  statewide  agencies  said  that  whUe 
finding  500  Black  adoptive  homes  was  not  a 
problem,  agencies  serving  the  Black  com- 
munity would  not  wish  to  recruit  homes  fcff 
dying  ChUdren,  for  example,  unless  they  were 
represented  at  the  highest  levels  of  policy 
making  in  the  total  program.  They  would 
also  wish  to  Insure  that  an  effort  was  being 
made  to  strengthen  child  welfare  services  for 
Black  ChUdren  left  behind  In  Vietnam  as 
well  as  Insure  satisfactory  service  to  chUdren 
and  adoptive  parents  in  the  United  States. 

The  need  for  subsidies  for  Black  famUlee 
to  help  with  the  high  costs  of  adoption  was 
mentioned  as  this  would  greatly  lacUltate 
the  finding  of  good  homes.  The  cost  of  an 
adoption  was  described  as  high  as  $3 ,000  per 
ChUd,  In  some  Instances,  taking  Into  consid- 
eration costs  of  temporary  care  In  Vietnam, 
processing  coste,  travel,  agency  home  study 
fees,  and  other  legal  expenses.  As  discussed 
earlier,  a\-allable  chUdren  may  have  exten- 
sive medical  problems  requiring  expensive 
post-placement  medical  care. 

The  need  for  a  Concerted  Effort  to  meet 
the  needs  of  600  Black  chUdren  in  Viet- 
namese residential  Institutions  was  the 
major  question  and  theme  vmderlylng  the 
two-day  conference.  PCVN  handles  about 
50  adoptions  each  month  worldwide,  Holt 
hopes  to  process  at  least  one  hundred  chU- 
dren over  the  next  few  months  in  Vietnam 
and  both  agencies  estimate  that  a  signifi- 
cant number  of  the  children  placed  wUl  be 
Black,  although  adopted  by  White  couples 
from  the  United  States  and  Europe,  -niey 
could  not  say  that  their  efforts  would  be 
focused  on  the  needs  of  Black  orphans,  per 
se,  but  felt  that  Improved  medical  care  and 
nutrition  would  most  effectively  Improve 
conditions  affecting  Black  chUdren  In  In- 
stitutional care  and  relieve  existing  pres- 
sures on  the  operating  agencies,  thereby 
making  it  possible  for  them  to  give  more 
attenUon  to  Black  children,  as  well  as  all 
the  other  needy  orphans  available  for 
adoption. 


There  waa  aome  Initial  concern  whether 
the  proper  target  was  the  relatively  few  Black 
ChUdren  in  child  c&re  institutions,  or  the 
greater  number  living  with  relatives.  Dr. 
Duii4>8on  responded  that  a  crisis  approacta 
should  be  used  for  the  500.  while  the  larger 
group  In  the  community  would  reqxUre  a 
variety  of  supporting  services,  and  In  his 
opinion  these  two  categories  needed  to  be 
separated.  There  Is  an  Immodiacv  uo  the 
plight  of  the  500  whose  capacity  to  adjust 
to  family  life  is  afTec'.ed  by  each  remaining 
day  In  an  orphanage.  It  was  also  argued  that 
the  needs  of  these  chUdren  were  very  special 
because  there  ts  no  prospect  for  a  solid 
Black  community  in  Vietnam  for  the  chU- 
dren to  relate  to  as  they  grow  c^der. 

Recent  cooperative  efforts  in  the  United 
States  to  find  Black  homes  for  Black  chUdren 
were  pointed  to  as  evidence  that  a  con- 
certed effort  was  a  practical  goal  to  work 
toward. 

Poster  care  was  mentioned  as  an  alterna- 
tive to  adoption  but  it  was  also  stressed  that 
this  was  not  a  viable  resource  In  Vietnam 
where  no  BIiu;k  commtinlty  exists,  and  that 
foster  care  as  a  long  term  panacea  to  meet 
the  needs  of  chUdren  has  been  discredited 
In  the  United  States.  This  is  not  to  say  that 
temporary  foster  care  for  chUdren  in  the 
process  of  adoption  is  not  a  vital  service,  and 
the  successful  Holt  program  In  Korea,  which 
provides  temporary  foster  care  for  some  800 
children  at  any  one  time,  was  mentioned  as 
an  example  of  the  best  way  to  prepare  chU- 
dren physically  for  overseas  adoption. 

Dr.  Dumpson  elaborated  on  his  recom- 
mendation for  a  "consortium"  of  agencies 
which  would  provide  a  thrust  toward  the 
Black  child,  for  a  limited  period  of  time, 
without  Interfering  with  the  operations  of 
the  present  agencies  working  in  Vietnam. 
The  Vietnam  agencies  were  not  convinced 
that  a  consortium  made  sense  as  there  were 
plentiful  homes  for  aU  avaUable  chUdren. 
The  Black  social  workers  pointed  out.  how- 
ever, that  if  it  is  accepted  that  they  should 
have  a  part  In  policy  decisions,  a  conaorthun 
is  the  logical  vehicle  for  Black  Involvement, 
that  is,  an  association  of  resources,  de- 
signed to  do  a  time-limited  Job.  after  which 
participating  agencies  would  go  their  own 
way.  The  objective  would  be  to  "marry  ex- 
f>erience  with  new  resotircee"  to  help  a  dis- 
crete group  of  American-fathered,  Black 
ChUdren  through  medical  care,  supportive 
services,  temporary  foster  care  In  Vietnam, 
and  finding  Black  homes  for  them  In  the 
United  States. 

The  group  discussed  the  formiUatlon  of  an 
advisory  board,  composed  of  representatives 
from  participating  agencies  with  an  execu- 
tive and  professional  staff  drawn,  if  possible, 
from  the  member  agencies.  This  conceptuali- 
zation raised  many  additional  issues  Includ- 
ing licensing,  need  for  subsidies,  advisory 
board  to  advise  whom.  avaUebUity  of  staff 
to  be  released,  direct  services  in  Vietnam 
as  well  as  the  United  States,  and  many 
others. 

TTie  Adopt-A-ChUd  program  in  New  York 
City  which  was  successfiUly  carried  out  some 
years  ago  was  mentioned  as  a  possible  proto- 
type. That  agency  helped  place  Black  babies 
from  hospitals  into  Black  adoptive  homes  by 
providing  services  which  helped  participat- 
ing agencies  Identify  and  describe  Black 
ChUdren  and  interpret  their  needs  to  the 
Black  community  Participating  agenciee 
contributed  to  the  staff  salaries  and  admin- 
istrative expenses 

The  ls.«;ue  wa.«  raised  whether  a  new  agency 
might  be  req-.-.n-ed  to  serve  the  Black  chUdren 
in  Vietnam  but  the  general  feeling  of  the 
conference  was  that  it  would  be  more  profit- 
able to  buUd  on  the  present  system,  txirrow- 
Ing  lu  expertise  and  in  return,  helping  the 
Vietnam  agenctee  to  be  more  responsive  to 
the  concerns  of  the  Black  community. 

At  the  conclusion  of  the  two-day  meeting, 
a   consensus    was   reached   and    the    future 


12742 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  1973 


plan  of  action  and  the  formal  recoaunenda- 
tlons  described  In  Part  I  of  thi«  report  were 
adopted.  While  tt  waa  agreed  to  har*  a  «ub- 
cotnmlttee  flesh  out  a  proposal  for  future 
consideration,  two  of  the  Vietnam  agencies 
continued  to  express  reservations  .  one 
about  the  need  for  and  deslrabllltr  of  a  con- 
sortium, and  the  other  about  Its  ability  tn 
participate  in  a  pooled  effort,  because  of  the 
volunteer  nature  of  lu  operation 

The  following  memt>ers  of  the  subcommit- 
tee, chosen  by  caucus  of  the  Vietnam  agen- 
cies and  those  serving  the  Black  community. 
made  plans  to  meet  at  the  earliest  possible 
date  to  draw-up  the  frames  of  reference  for 
the  proposed  effort: 

Mr.  WlUlam  M  Taylor.  Travelers  Ald/In- 
ternatlonal  Social  Service. 

Mr.  Bdmund  S.  Cummlngs,  VS.  Catholic 
Conference. 

Mr  John  Schauer,  Church  World  Service, 
Alternate  for  Mr.  Cummlngs 

Mr  Benjamin  Plnley.  Afro-American  Fam- 
ily and  Community  Services 

Mrs.  Louise  Bailey.  National  AsaocUtlon  of 
Black  Social  Workers. 

CO!f8tn.T»NTS 

Dr  James  R.  Dumpajyi/pordham  Univer- 
sity School  for  Social  Services. 

Mr.  Gardner  W  Munro.  Social  Work  Con- 
sultant, Boston.  Mass. 

m.    AFFkKDIZ 

Participants 

Mrs  Louie  Beasley.  National  Association  of 
Black  Social  Workers.  913  Caruthera  Avenue 
NaahvlUe,  Tennessee  37204.  Telephone'  (815) 
2»«-M92 

Brother  Joseph  Berg.  National  Conference 
of  Catholic  Charities.  134«  Connecticut  Ave- 
nue. N  W,  Washington.  DC  30030,  Tele- 
phone    (202»   785-2757 

Dr  Martha  Branscombe,  Chairman,  714 
Greenwood  Road  Chapel  HUl,  North  Caro- 
lina 27514.  Telephone     (919)   967-5953 

Mrs  Shirley  Burnett.  Co-Dtrector,  Homes 
for  Black  ChUdren  2«40  Calvert  Street.  De- 
troit, Michigan  48206.  Telephone:  (313)  8«»- 
2316. 

Mr  Edmund  B  Cummlngs.  Assistant  Di- 
rector. US.  Catholic  Conference.  Migration 
and  Refugee  Service,  201  Park  Avenue  South 
New  York,  New  York  10003.  Telephone:  (212) 
475-5400 

Dr  James  Dumpaon.  Pordham  University 
School  for  Social  Service.  302  Broadway 
Street.  New  York.  New  York  10007  Tele- 
phone;   (212)  956-^723 

Mrs  Jane  D.  Edwards,  Executive  Director, 
Spence-Chapln  Adoption  Agency.  6  East  94th 
Street,  New  York,  New  York  10028,  Tele- 
phone:   (212)   369-0300 

Mr  Benjamin  Plnley.  Executive  Director. 
Afro- American  Pamlly  and  Community  Serv- 
lc«8.  440  West  Division  Street,  Chicago 
nilnols  60610.  Telephone:   (312)  642-4437 

Ms  Ursula  Gallagher.  Department  of 
Health.  Education,  and  Welfare,  OfHce  of 
Child  Development.  (Thlldren's  Bureau 
Washington.  DC  20201.  Telephone-  (202)' 
755-7730 

iSx  Donald  L  Goodwin,  Director,  Office  of 
Technical  Development.  Bureau  for  Support- 
ing Assistance.  Agency  for  International  De- 
velopment. Washington.  DC  20523  Tele- 
phone:   (703)    557-0144 

Mrs  Wendy  Grant  and  Ms.  Margaret  Moses 
Priends  of  Children  of  Vietnam.  445  South 
6«th  Street.  Boulder.  Colorado  80303,  Tele- 
phone     (303)    4M-70305 

Mrs  Evah  Ounn.  Prtvat*  &  Voluntary  Co- 
operation. Bureau  for  Population  &  Humani- 
tarian Assistance.  Agency  for  InternaUonal 
Development,  Washington,  DC.  30523,  Tele- 
phone     (202)    832-8864 

Mr  Alfred  Herbert.  Black  Child  Develop- 
ment Institute  1038  Connecticut  Avenue, 
N  W .  Suite  514.  Waahlngton.  DC.  20086. 
Telephone    I703)  85»-4910 

Mr    Robert  Undaay.  Immlgratton  Natural- 


ization Service,  Department  of  Justice,  Room 
7e».  Washington.  DC  20536,  Telephone; 
(203)  636-1350. 

Mb  Dorothy  Mundt,  Secretary  of  Sodal 
Services.  Lutheran  Council  tn  tha  United 
States,  316  Park  Avenue  South.  New  York, 
New  York  lOOlO,  T>lephon«:    (213)   677-3950 

Mr  Gardner  Munro,  Rapportotir.  Statler 
Office  BtiUding,  Suite  476,  20  Providence 
Street.  Boston.  Massachusetts  03116,  Tele- 
phone: (617)  542-0353 

Mr  Jay  RuolT.  Aasoctata  Director  for  Re- 
lief and  RehablliUtlon,  USAID  Vietnam. 
APO  San  Pranclsco  96343 

Mr.  Bernard  J  Salvo.  Acting  Chief.  Social 
Development  Division.  Office  of  Technical 
Development.  Bureau  for  Supporting  Assist- 
ance, Waalilngton,  DC  30523,  Telephone: 
(703)  567-5351 

Mr.  John  Schauer,  Director.  Immigration 
and  Refugee  Program,  Church  World  Serv- 
ice. 475  Riverside  Drive.  New  York.  New  York 
10027.  Telephone :  (212)  370-2267 

Ui.  Raymond  Seefeldt.  Visa  Office.  Bureau 
of  Security  it  Consular   Affairs.  Department 
of  SUte.  Washington.  DC   20521.  Telephone 
(202)   632-2908. 

Mr.  Joseph  Smith.  Harlem-Dowllng  Chil- 
dren's Service,  2000  Seventh  Avenue.  New 
York,  New  York  10037,  Telephone:  (313) 
740-3656. 

Mrs.  Clara  J  Swan,  Associate  Director.  Di- 
vision of  Field  Operations,  ChUd  Welfare 
League  of  America,  Inc  ,  67  Irving  Place.  New 
York,  New  York  10003.  Telephone:  (212) 
254-7410. 

Mr  WlUlam  M.  Taylor  and  Mrs  Michael 
Harris.  Travelers  Aid.  International  Social 
Services  of  America.  345  East  46th  Street.  New- 
York.  New  York  10017.  Telephone:  (212)  687- 
2747 

Mr  Don  Vasey.  World  Vision  Relief  Orga- 
nization, Inc  .  919  West  Huntington  Drive. 
Monrovia.  Callforixla  91016.  Telephone:  (213) 
357-1111. 

Mr  Munro  Woollard,  Holt  Adoption  Pro- 
gram, P.O  Box  2420.  Eugene.  Oregon  97403. 
Telephone     (603 1   887-3203. 

Mrs.  Beverly  Walker  Worrell,  Executive  Di- 
rector.   NAACP/Adoptlve    Parents    Recruit- 
ment  and   Education   Project,  Suite  815,   66 
Luckle  Street,  N.W  ,  Atlanta,  Georgia  30303. 
Telephone:   (404)  623-4373. 
Agerida 
July  25 
Morning  session:  10;00 — 12:00 

I.  Opening  Remarks:  Mr.  Oamett  A  Zlm- 
merly.  Acting  Assistant  Administrator, 
AI.DVBureau   for   Supporting    Assistance. 

n.  Introduction:  Dr.  Iifartha  Branscombe. 
Chairman. 

m.  Needs  and  Problems  of  Vietnamese 
Children:  Implications  for  Intercountry 
Adoption:  Dr.  James  Dumpson.  Mr.  Gardner 
Munro. 

Discussion. 

Afternoon  session:  1:30 — 4:30 

rv  Issues  and  Problems  Involved  In  Inter- 
country adoptions  for  Vietnamese  children 
fathered  by  Black  Americans  and  "hard-to- 
place"  children. 

A.  In  Vietnam 

B  In  the  United  States 

(To  be  Identified  and  discussed  by  Partici- 
pants.) 

V  What  practical  steps  might  be  taken  to 
expand  the  network  of  supporting  services  in 
the  U.S.  to  facilitate  placement  In  American 
homes,  particularly  of  Vietnamese  children 
fathered  by  Black  Americans  and  those  hard 
to  place  for  other  reasons. 

July  26 
Morning  session:  9:30 — 13:00 

VI  US  Legal  Requirements  (30  minutes) 
Mr   Robert  Undsay,  Immigration  Nat\iral- 

Ixatlon  Service. 

Mr  Raymond  Seefeldt  Security  and  Con- 
sular Affairs. 

Vn.  Conclusions  and  Recommendations. 


Afternoon  aes&lon :  1:30 — 4:30 

Pinal  Ixe   DUcuasiona   tinder   Agenda   Item 
VU 

Adjourtiment, 


NOMINATION    OP    SENATOR    SAXBE 
TO  BE  ATTORNEY  GENERAL 

Mr.  ROBERT  C.  BYRD  Mr.  President. 
I  ask  unanimous  consent  to  have  printed 
In  the  RxcoRD  the  transcript  of  quefltlons 
I  asked  of  Senator  Saxbe  and  Special 
Prosecutor  Leon  Jiworskl.  and  their 
responses.  Including  correspondence  re- 
lated thereto,  during  the  Senate  Judici- 
ary Committee  hearings  on  the  nomina- 
tion of  Mr.  Saxbe  to  be  Attorney  General 
of  the  United  States. 

There  being  no  objection,  the  tran- 
script was  ordered  to  be  printed  in  the 
Record,  u  follows: 
NoMiWATtow  or  WnxiAM  B   Saxbk  To  B*  tht 

ATTOBNTT  GXTf KRAI.  Of  THX  UNTTSO  STA-TXS 

(Wednesday,  December  13,  1973) 
•  •  •  •  • 

The  Chaisman  Senator  Byrd? 

Senator  Bthd.  Thank  you,  Mr.  Chairman. 

Mr.  Saxbe.  I  wish  first  to  congratulate  you 
on  the  choice  of  the  President  In  nominating 
you  for  this  important  office.  Secondly,  I 
want  to  say  for  the  record  that  I.  too.  see 
no  problem  Insofar  as  your  professional 
qualifications  are  concerned.  I  see  no  problem 
insofar  as  you.  personally,  are  concerned  with 
respect  to  your  integrity  and  character  and 
moral  fitness,  so  far  as  I  know. 

I  have  had  some  concern,  however,  with 
regard  to  the  constitutional  inhibition  in- 
volved in  paragraph  3,  clause  6,  Article  I.  of 
the  Constitution.  My  efforts  with  respect  to 
opposing  the  so-called  Attorney  General  Pay 
BUI  on  the  Floor  were  not  meant  to  have 
any  personal  thrust  whatsoever.  The  Con- 
gress has  now  spoken  In  regard  to  that  bUl. 
In  my  own  mind,  nevertheless,  I  am  not 
at  all  sure  that  the  Congress  has  the  power 
to  remove  that  constitutional  disqualifica- 
tion. But,  that  wUl  have  to  tie  decided  by 
the  court  eventually,  I  assume. 

I  suppose  I  could  vote  for  your  confirma- 
tion, even  though  I  strenuously  opposed  the 
Pay  BUI  on  constitutional  grounds  At  this 
point.  I  want  to  at  least  feel  that  I  am  still 
reviewing  that  aspect  I  still  feel  as  strongly 
as  ever  that  there  Is  a  constitutional  Inhibi- 
tion and  that  it  cannot  be  removed  by 
legislation  But.  the  amendment  which  I 
offered  on  the  Floor,  paves  the  way  for  an 
expedited  hearing  if  anyone  should  seek  a 
court  decision. 

I  am  desirous  of  asking  questions  tn  one 
area  today,  that  being  the  area  Involving  the 
Special  Prosecutor. 

I  have  asked  the  Chairman  to  request  that 
Mr  Jaworskl  come  to  the  hearing  room. 
I  think  U  Is  Imperative  that  the  Committee 
get  your  ass'irance  of  a  strong  commitment  to 
Mr  Jawomki,  ar.d  I  think  It  la  Importar!* 
to  Mr.  ,'awnrsk:  that  he  not  only  be  able 
to  rcAd  that  commitment  In  the  record,  but 
that  he  al.s..  be  prese:it  when  that  commit- 
ment Ls  made 

I  doubt  that  I  can  adequately  explain  to 
you  how  uncomfortable  I  am  in  asking  ques- 
tloDS  of  you.  I  like  you  personany,  and  I 
respect  you  as  my  peer,  and  I  rertalniy  do  not 
relish  the  prospect  of  InterroRatir.g  a  col- 
league. But.  I  also  fee!  that  I  have  a  duty 
as  a  Member  of  this  C-ommittee,  ar.d  as  a 
Member  of  the  Senate,  to  witisfy  in  my  own 
mind,  and  certainly  to  establish  for  'he  rec- 
ord. If  I  possibly  can,  precisely  what  your 
position  win  be  insofar  as  ynur  support  of  the 
Special  Proae'-uUir  is  concerned,  what  your 
commitment  is  whether  t  not  you  will 
seek  to  Drote<-t  htm  from  press  -.res  emanat- 
ing In  the  White  House,  and  how  far  you  will 


\> 


December  20,  1973 


CONGRFSSIONAL  RECORD  — SENATE 


42743 


go  In  supporting  hla  actions  as  they  are  en- 
visioned In  the  Charter 

With  that  prefatory  statement.  Mr.  Chair- 
man, I  am  ready  now  to  begin  my  question- 
ing. 
The  CHAQtMAN  Mr.  Jaworskl  is  in  the  room. 

Senator  Saibx.  Could  I  Interject  at  this 
time,  that  I  certainly  understand  the  Sen- 
ators attitude  and.  In  fact,  I  welcome  It  be- 
cause I,  too,  am  Interested  In  getting  exactly 
straight  and  I  think  with  Senator  E>nnedy's 
questions,  we  helped  to  work  out  some  of  it. 
And  It  is  my  Intention  to  vigorously  support, 
not  only  Mr  Jaworskl.  but  everybody  else 
connected  with  the  Attorney  General's  of- 
fice, in  regard  to  not  only  crimes  and  mis- 
demeanors In  the  White  House,  but  in  every 
other  part  of  this  country  without  any  res- 
ervation, and  It  is  a  covenant  that  I  have 
made  with  myself  on  this  thing,  that  the 
chips  were  going  to  have  to  fall  where  they 
may,  regardless  of  who  Is  Involved,  whether 
they  are  friends,  acquaintances  or  recom- 
mended by  somebody.  I  am  sure  there  will  be 
and  I  was  the  Attorney  General  in  a  state  of 
11  million  people  for  a  long  time  and  you 
get  everybody  coming  in  with  their  hat  In 
their  hand,  and  I  am  determined  to  meet  this 
squarely,  not  on  Just  the  White  House  thing 
but  on  all  matters.  And  I  am  very  anxious 
and  willing  that  It  be  spelled  out  In  any  way 
you  think  best. 

Now,  to  the  disability  which  the  Senate 
removed.  I  understand  the  Senator's  position. 
I  know  that  he  Is  a  student  of  the  law.  but 
I  also  point  out  that  there  Is  a  difference  of 
opinion  on  this.  This  week,  yesterday  or  the 
day  before.  I  received  a  letter  completely 
volunteered  from  Arthur  J.  Goldberg,  ex- 
changing pleasantries  and  he  aays  in  the 
second  paragraph :  "I  have  delayed  somewhat 
in  sending  this  letter  because  I  was  awaiting 
your  confirmation  by  the  Senate.  I  have  no 
doubt  It  win  be  forthcoming.  But,  I  regret 
it  has  been  delayed  because  of  what  I  regard 
to  be  a  most  Inconsequential  constitutional 
question." 

And  so  there  is  a  difference  of  opinion  by 
men  learned  in  the  law. 

Now,  I  have  had  the  attitude  all  the  way 
through  this  that  If  I  was  destined  to  be 
Attorney  General  that  things  would  work  out, 
and  if  I  am  not,  it  Is  Just  as  well. 

Senator  Btrd.  Well.  I  think  you  are  des- 
tined to  become  Attorney  General,  Mr.  Saxbe. 
But  so  far  as  I  am  concerned,  I  am  not  In  the 
slightest  persuaded  by  Mr.  Goldberg,  al- 
though I  respect  hla  knowledge  of  constitu- 
tional law  But,  with  the  statement  that  you 
have  made.  I  think  that  you  have  prepared 
j-ourself  to  answer  the  questions  which  I  shall 
ask.  and  I  trust  that  you  will  Indulge  my 
questions  and  show  your  usual  candor  and 
patience.  And  if  you  can  come  through  with 
firm  answers  to  my  questions.  I  believe  you 
wUl  have  satisfied  a  good  many  members  of 
the  Senate  in  this  area. 

Now.  Mr.  Chairman,  would  I  be  asklntr  too 
much 

The  Chairman    Let  us  have  order,  please? 

Senator  Btrd  Would  I  be  asking  too  much 
to  request  that  Mr  Jaworskl  come  forward 
and  take  a  seat  at  the  table? 

The  Chadiman.  Mr.  Jaworskl,  sit  at  the 
table,  please,  sir? 

Senator  Byrd,  Mr.  Chairman.  I  am  embar- 
rassed, really,  to  ask  whether  or  not  both  wit- 
nesses should  be  sworn?  Would  there  be  any 
objection  ? 

Mr.  Jaworski.  None  whatsoever  on  my  part. 
Senator, 

The  Chairman,  Stand  up,  please. 

Do  you  both  swear  that  you  will  tell  the 
truth,  the  whole  truth,  and  nothing  but  the 
truth,  so  help  you  God? 

Senator  Saxbx.  I  do. 

Mr.  Jaworski.  I  do. 


lU'llMOIVT  or  THX  HONORABLX  WILLIAM  B 
8AXBR,  A  trWTTKD  STA-TES  SXNATOR  FROM  THZ 
8TATX  or  OHIO  AND  MR.  LXON  JAWORSKI, 
SPXCIAL  PROSXCtrrOR 

Senator  Btrd.  Mr.  Jaworskl,  permit  me  to 
say  to  you,  by  way  of  explanation.  I  asked 
the  Chairman  to  inquire,  only  within  the 
hour,  If  you  could  present  yourself  here  to- 
day. May  I  say,  Incidentally,  that  I  looked 
upon  your  appointment  sU  weeks  ago  with 
great  stisplclon.  I  felt  that  If  the  Executive 
could  employ  you.  It  coiUd  fire  you— which 
It  can— and  I  felt  that  your  employment  by 
the  Executive  Branch  meant  the  Executive 
Branch  would  again  l>e  Investigating  itself. 
Yet.  I  have  been  pleasantly  surprised  during 
the  six  weeks  that  have  passed,  and  I  have 
watched  with  admiration  the  courage  and 
Independence  that  you  have  displayed.  I  have 
been  reassured  also  by  the  fact  that  the 
Special  Prosecutor's  force  has  remained  In- 
tact under  your  guidance,  and  I  have  also 
heard,  with  satisfaction,  some  of  the  things 
that  reportedly  have  been  said  by  the  Prose- 
cutor's force  regarding  yotir  supportlveness 
In  their  continuing  efforts.  I  especially  want 
to  congratulate  the  young  lady  who  Interro- 
gated Rose  Mary  Woods  the  other  day  in 
court.  And  I  am  encouraged  greatly  by  your 
public  statements  that  you  will  seek  to  se- 
cure, through  the  JudlcUl  process,  any  evi- 
dence that  you  feel  is  necessary  for  the  effec- 
tive and  fair  and  objective  prosecution  of 
any  crimes  that  may  have  been  committed  by 
anyone. 

Having  said  that.  I  think  it  only  remains 
for  me  to  say  that  I  want  you  to  continue  to 
pursue  your  duties  as  you  have  set  out  thus 
far  upon  your  course.  You  have  a  reputation 
that  is  as  imjjortant  to  you  as  our  own  repu- 
tation Is  to  any  of  us  who  are  sitting  In  the 
Legislative  Branch.  It  Is  also  very  important 
In  my  esUmatlon  that  you  have  the  com- 
plete support  of  the  Attorney  General  and 
that  you  positively  know  you  have  the  suo- 
port  of  the  Attorney  General  In  your  effort, 
which  win  require  continuing  courage.  It  is 
for  these  reasons  that  I  have  asked  the  Chair- 
man— and  appreciate  very  much  his  acquies- 
cence to  my  request — that  you  appear  before 
the  Committee  at  this  time.  I  was  not  here 
when  you  were  before  the  (Committee  previ- 
ously, on  previous  occasions,  and  I  apologlee 
to  you  for  the  request  which  came  to  you 
today  without  warning. 

Mr.  Jaworski.  Not  at  all.  Senator.  I  am 
glad  you  asked  me  to  come. 

Senator  Btrd,  I  would  like  first  to  read 
Justice  Brandels'  dissent  In  the  Olmstead 
case  on  the  iise  of  wiretan  evidence  In  a  pros- 
ecution under  the  Prohibition  Act:  "Decency, 
security,  and  liberty  alike  demand  that  gov- 
ernment officials  shall  be  subjected  to  the 
same  rules  of  conduct  that  are  commands  to 
the  citizens.  In  a  povernment  of  laws,  exist- 
ence of  the  envemment  will  be  lmT>ertled  If 
It  falls  to  observe  the  law  Bcrupulon.elv  Our 
povemment  Is  the  pat«nt.  the  omntriresent 
teacher.  For  good  or  for  111.  It  t.ea^bes  the 
whole  p)eoDle  bv  Its  examnle  Crime  Is  f-nn- 
tagious  If  the  government  Ijecomes  a  law- 
breaker It  breeds  contemnt  for  law:  it  Invites 
every  man  to  become  a  law  unto  himself:  it 
Invites  anarchv  To  declare  that  !n  adminis- 
tration of  the  criminal  law  the  need  Justifies 
the  means — to  declare  that  the  Btovemment 
may  commit  crimes  in  order  to  ^'ecur*'  the 
conviction  of  a  nrlvate  criminal— would  bring 
terrible  retribution.  Against  that  pernicious 
doctrine,  this  court  should  resolutely  set  Its 
faith." 

I  think.  Mr  Saxbe  and  Mr  Jaworski  that 
this  attitude  must  be  the  cornerstone  of  the 
Investigation  of  the  Watergate  caae  and  all 
of  the  related  aspects.  And  to  tills  end,  the 
facts  and  all  of  the  facts  ought  to  be  brought 
to  light  and   must  be  brought  to  light   to 


ensure  the  American  people  that  their  gov- 
ernment Is  a  government  of  law  and  not  a 
government  of  men.  And  that  those  who  op- 
erate outside  the  law,  no  matter  how  high  a 
station  in  life  or  in  government  they  may 
possess,  must  be  answerable  to  the  law. 

Senator  Kennedy  has  referred  to  the  Char- 
ter which  was  hammered  out  by  Mr.  Rich- 
ardson In  his  appearance  before  this  Com- 
mittee, with  the  advice  and  assistance  of  the 
Committee.  I  think  it  is  important  that  that 
Charter  be  read  paragraph  by  paragraph  at 
this  time,  because  we  are  about  to  confirm 
an  Attorney  General  of  the  United  States  at 
a  most  critical  time  In  our  country's  history. 
I  wish  that  he  were  not  a  Senator. 

My  task  would  be  much  easier.  But,  I  have 
faith  In  BUI  Saxbe,  that  he  recognizes  the 
problem  that  I  have,  and  the  problems  that 
other  M<ffi,bers  of  this  Commmlttee  and  in 
the  Senate  have,  in  approaching  this  matter. 
I  most  surely  thlnlc  we  will  be  held  to  ac- 
count if  we  were  to  deal  with  Mr.  Saxbe  more 
tenderly  than  we  would  deal  with  any  other 
nominee,  any  other  person  who  might  have 
appeared  before  this  Committee  as  a  Nomi- 
nee for  the  office  of  Attorney  General. 

Mr.  Robert  H.  Bork,  Acting  Attorney  Gen- 
eral, reinstltuted  the  Office  of  Special  Pros- 
ecutor and  reinstated  in  the  Federal  Register 
in  November,  the  Charter  which  had  been 
outlined  in  the  course  of  the  hearings  on 
the  Nomination  of  Mr.  Richardson,  but  with 
certain  amendments  to  that  Charter  I  shall 
begin  with  Sub-part  G- 1 -Office  of  Watergate 
Special  Proeecutor  Force. 
General  Junctions: 

"The  Office  of  Watergate  Special  Prosecu- 
tion Force  shall  be  under  the  direction  of 
a  Director  who  shaU  be  the  Special  Pros- 
ecutor appointed  by  the  Attorney  OeneraL 
The  duties  and  responslbUlties  of  the  Special 
Prosecutor  are  set  forth  In  the  attached 
^pendix  which  is  Incorporated  and  made 
a  part  hereof." 
Specific  P-.mctlons: 

"The  SpeclEj  Proeecutor  Is  assigned  and 
delesrated  the  following  specific  functions 
with  respect  to  matters  specified  in  this 
Sub-part: 

"(a)  Purstiant  to  28  VS.C.  615(a),  to  con- 
duct any  kind  of  legal  proceedings,  which 
UiUted  States  Attorneys  are  authorized  by 
law  to  conduct  and  to  designate  attorneys 
to  conduct  such  legal  proceedings." 

Do  you  list  these  as  among  your  functions, 
Mr.  Jaworskl? 

Mr    Jaworski   Indeed  I  do.  Senator 
Senator  Btrd.  Do  you  have  any  questions, 
Mr,   Saxbe    with   respect   to   that   paragraph 
and   Its   Imposition   on    Mr,   Jaworskl  of  hla 
responsibilities  as  Special  Prosecutor? 
Senator  Saxbx   No. 

Senator  Btrd.  Do  you  agree  that  he  has 
the  authority  to  conduct  any  kind  of  legal 
proceedings,  civil  or  criminal.  Including 
Grand  J-,iry  proceedings  which  United  State* 
Attorneys,  are  a-athorlzed  by  law  t«  con- 
duct and  to  de-slirnate  attorneys  to  conduct 
such  leeal  proceed  infos'' 

Senator  SAinr  I  think  that  Is  very  pointed. 
Senator  Btrd  And  you  acree  with  that? 
Senator  Sa.tbx.  Tes 

Senator  Byrd  "Subpart  (b),  to  approve  or 
disapprove  the  production  or  disclosure  of 
Information  or  files  relating  to  matters  with- 
in his  cognizance  in  response  to  a  subpoena, 
order  or  other  demand  of  a  court  or  other 
authority." 

Mr  Jaworskl.  do  you  see  that  as  your  duty 
and  responsibility? 

Mr  Jaworski.  I  do,  SenattM-  ByrxL 
Senator  Btrd.  And  you  will  pursue  to  the 
best  of  your  ability  the  reqtiirement  of  that 
paragraph? 

Mr.  Jaworski.  I  have  undertaken  to  do  so. 
sir,  and  I  wlU  continue  to. 

Senator   Btrd.   Now.   Mr    Saxbe.   wUl   you 


42744 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  1973 


■upport  Mr.  Jaworskl  in  bis  sworn  duty  to 
carry  out  the  provisions  of  that  paragraph? 
Senator  Saxbs.  I  wlU 

Senator  Bran.  "Subpart  ic).  to  apply  for 
and  to  exercise  the  authority  vested  In  the 
Attorney  General  under  18  U  SC.  6006.  relat- 
ing to  the  immunity  of  witnesses  in  Con- 
gressional proceedings." 

How  about  that  paragraph.  Mr.  Jaworskl? 
Mr  jAwoasiu.  Yes.  sir.  I  certainly  Intend  to 
continue    to   follow   its   mandate   as   I   have 
done  so  up  to  the  present  time,  and  will  cer- 
tainly do  BO  In  the  future. 

Senator  Brao.  Now.  do  you  share  Mr.  Jaw- 
orsltl  s  position.  Mr  Saxbe? 
Senator  Saxbz.  I  do. 

Senator  Bt«d.  "The  listing  of  these  specific 
functions  is  for  the  purpose  of  Illustrating 
the  authority  entrusted  to  the  Special  Proee- 
cutor  and  Is  not  Intended  to  limit  In  any 
manner  his  authority  to  carry  out  his  func- 
tions and  responsibilities,  dated  November  2. 
1973.  signed  Robert  H.  Bork.  Acting  Attorney 
General." 

Now.  I  shall  quote  the  guidelines  that 
were  developed  in  May  of  this  year,  to  which 
allusion  has  already  been  made 

Appendix.  Duties  and  responsibilities  of 
the  Special  Prosecutor. 

"The  Special  Proeecutor — there  is  ap- 
pointed by  the  Attorney  General  within  the 
Department  of  Justice,  a  Special  Prosecutor 
to  whom  the  Attorney  General  shall  delegate 
the  authorities  and  provide  the  staff  and 
other  resources  described  below. 

"The  Special  Prosecutor  shall  have  full 
authority  for  Investigating  and  prosecuting 
offenses  against  the  United  States  arising  out 
of  the  unauthorized  entry  into  Democratic 
National  Committee  Headquarters  at  the 
Watergate,  all  offenses  arising  out  of  the 
1972  Presidential  Election  for  which  the  Spe- 
cial Prosecutor  deems  It  necessary  and  ap- 
propriate to  assume  respotistblUty.  allega- 
tions Involving  the  President.  Members  of 
the  White  House  Staff  or  Presidential  ap- 
pointees, and  any  other  matter  which  he 
consents  to  have  assigned  to  him  by  the 
Attorney  General." 

Mr  Saxbe.  do  you  have  any  reservations 
whatsoever  m  stating  before  this  Committee 
today  your  full  support  of  the  letter  and 
the  full  Intent  of  that  paragraph,  insofar  as 
the  duties  impoaed  upon  Mr.  Jaworskl  are 
concerned  by  that  paragraph? 
Senator  Saxbe  I  do  not 
Senator  Btw)  The  paragraph  states  that: 
•The  Special  Prosecutor  shall  have  full  au- 
thority for  investigating  and  proaecutlng  of- 
fenses against  the  United  States  arising  out 
of  the  unauthorized  entry  Into  Democratic 
National  Committee  Headquarters  at  the 
Watergate  " 

Do  you  have  any  reservations  with  regard 
to  the  words  "full  authority"  Mr  Saxbe? 
Senator  Saxbk.  I  do  not 

Senator    Bras     Do    you    understand.    Mr. 
Jaworskl.  that  you  do  have  full  authority'' 

Mr   jAwoasBJ    I  do,  Senator  Byrd.  and  we 
have  undertaken  to  exercise  It. 

Senator  Bt»i)  Now.  to  go  to  the  second 
clause  and  tying  It  In  with  the  lead  sentence 
of  the  paragraph,  the  "Special  Prosecutoc 
ahaU  have  full  authority  for  LaveatlgaUng 
andjjroeecutlng  ...  all  offenses  arising  out 
e  1972  Presidential  Election  for  which 
the  Special  Prosecutor  deems  it  necessary  and 
appropriate   to  assume   responalblllty  " 

Do    you   have   any   reservations    In   regard 
to  that  clause.  Mr  S«zt>e'> 
Senator  Saxbk.  I  do  not. 
Senator  Brao    You  have  no  question  but 
that  Mr   Jawocakl  will  have  full  authority  to 
Inveaugate  and  prosecute  all  offenjes  arising 
out   of    the    1972    Presidential    Eecf.on.    for 
which  the  Special  Proaecutor  deems  it  neces- 
sary and  appropriate  to  assume  responsibil- 
ity? You  have  no  leaei  tatloos,  no  problem 
with  that? 
Senator  SAxax  No  problem. 
Senator  Brao  How  about  you.  Ux.  Jawonkl. 


andjfi 
'"~T>^«lle 


wtU  you  continue  to  pursue  your  duties  as 
Impoaed  upon  you  by  that  phraseology  with 
the  full  knowledge  that  Mr.  Saxbe  has  a«- 
sured  you  of  his  full  support? 

Mr.  Jawobsxi.  I  wUl  continue  to  do  so. 
Senator  Byrd. 

Senator  Btid.  Now.  Mr.  Saxbe.  I  proceed 
with  the  third  question,  again  linking  up  the 
phraseology  In  the  later  clause  with  the  lead- 
off  words : 

"The  Special  Prosecutor  shall  have  full 
authority  for  Investigating  and  prosecut- 
ing .  .  allegations  involving  the  President  " 
Do  you  have  any  compunctions  here.  Mr. 
Saxbe.  about  giving  Mr.  Jaworskl  your 
absolute  full,  complete  and  total  support  If 
In  his  Judgment  there  are  allegations  Involv- 
ing the  Preeident  and  his  duty  requires  that 
he  Investigate  and  proeecute  those  allega- 
tions? 

Senator  Saxbx.  I  do  not. 
Senator  Bran.  Mr.  Javorskl.  Is  It  your  In- 
tent to  fulfill  your  duty  as  set  forth  In  th*t 
paragraph? 

Mr.  JAWoasKj.  It  Is.  sir. 
Senator  Brao.  To  the  best  of  your  ability? 
Mr.  .lAwoasju.  It  Is,  sir. 

Senator  Bvao.  In  other  words,  you  will  fol- 
low the  evidence  wherever  It  goes  and  If  It 
goes  to  the  Oval  Office  and  to  the  President, 
himself,  you  wUl  pursue  It  with  aU  of  your 
vigor? 

Mr.  jAwoasKi.  That  U  my  obligation  and 
I  Intend  to  fulfill  it:  yes.  sir. 

Senator  Bt«d.  Quoting  again:  The  Special 
Proaecutor  shall  have  full  authority  for  In- 
veatlgatlng  and  proaecutlng  .  .  .  allegations 
Involving  Members  of  the  White  House 

Staff  or  Presidential   appointees." 

Will  you  pursue  that  with  full  vigor.  Mr. 
Jaworskl.  and  without  fear  or  favor? 

Mr  JAWoasKi.  Senator  Byrd,  we  have  been 
pursuing  that  without  any  exception  and 
we  Intend  to  continue  to  do  so. 

Senator  Brao   Mr.  Saxbe.  Is  your  Intent  to 
fully  support  Mr    Jaworskl  in  his  fulfilling 
of  his  duties  under  this  clause? 
Senator  Saxbx  It  Is. 

Senator  Brao.  And  you  will  not  attempt  In 
any  way  to  Interfere  with  hU  efforts  in  re- 
gard to  the  Investigation  and  prosecution 
along  any  of  these  lines? 

Senator  Saxm  No  It  has  been  my  Inten- 
tion at  all  times  that  &ir  Jaworskl  shall  op- 
erate completely  Independent  and  the  only 
time  that  I  will  see  him  Is  when  he  wants 
something  from  me. 

Senator  Btbo.  'The  Special  Prosecutor  shall 
have  full  authority  for  Investigating  and 
proaecutlng."  all  of  the  foregoing  that  I  have 
referred  to.  "and  any  other  matter  which  he 
consenu  to  have  assigned  to  him  by  the  At- 
torney General." 

Does  this  give  you  any  problem.  Mr  Saxbe'' 
WUl  you  support  Mr    Jaworskl  In  thU? 
Senator  Saxbx    It  gives  me  no  problem. 
Senator  Brao.  In  carrying  out  his  respon- 
sibilities under  this  clause' 

Mr  Jawo««kj  May  I  say.  Senator  Bvrd. 
that  we  have  accepted  some  matters  that  were 
assigned  to  ua,  it  might  be  said  by  the  Acting 
Attorney  General,  at  least  a  request  was 
made  that  we  undertake  them  and  It  was  an 
area  of  the  IT*T  Investigation  that  left  some 
question  as  to  whether  !t  was  really  within 
our  Jurisdiction  or  not  It  was  discussed  be- 
tween Mr  Bork  and  me.  and  we  have  as- 
sumed full  authority  for  It 

Senator  Brao  Do  you  imderstand  the  word 
••consent"  to  mean  that  you  have  flexibility 
to  consent  or  not  to  consent  to  the  assigning 
to  you  by  the  Attorney  General  of  "any  other 
matters"? 

B4r  Jawobskt  I  think  It  does  Imply  that, 
of  course  But,  I  wUl  say  to  you.  Senator 
Byrd.  that  m  any  instance  where  we  feel 
that  the  subject  matter  falls  within  the 
gambit  of  what  our  responsibilities  are.  we 
are   not  going   to  hesitate   to  accept  Juris- 


diction as  was  true  in  the  IT&T  matter,  for 
instance 

Senator  Brao.  Very  well. 

Now.  "In  particular,  the  Special  Proeecu- 
lat  shall  have  full  authority  with  respect 
to  the  above  matters  for: 

"1.  Conducting  proceedings  before  Grand 
Juries  and  any  other  Investigations  he  deems 
necessary." 

Do  you  recognize.  Mr.  Saxbe.  that  the  Spe- 
cial Prosecutor  has  full  authority  in  this 
regard? 

Senator  Saxbs.  Yes.  I  consider  It  as  a  great 
advantage  to  going  Into  the  office  over 
there,  that  this  does  fall  this  way  because 
It  would  give  me  the  opportunity  to  pull 
together  the  necessary  things  for  the  man- 
agement of  the  Justice  Department  without 
requiring  a  tremendous  amount  of  time 
that  would  be  spent  In  this  area. 

Senator  Brao.  You  have  no  question, 
though,  that  with  respect  to  the  above  mat- 
ters that  were  included  In  the  lead-off  para- 
graph that  the  Special  Prosecutor  has  full 
authority  to  conduct  such  proceedings? 

Senator   Saxbx.   No,   and   I   welcome   It. 

Senator  Bvao.  Do  you  recognise  your  full 
authority,  also.  Mr.  Jaworskl? 

Mr.  JAWoasKi.  I  do.  Yes.  sir. 

Senator  Brao.  And  you  intend  to  carry  it 
out? 

Mr  Jawoksiu  Yes.  sir.  It  Is  coincidental, 
but  this  morning  I  asked  Judge  Sirica  for  the 
Impanelling  of  another  Grand  Jury.  There 
are  so  many  matters  that  we  have  present- 
ed, that  we  feel  the  need  of  It  and  I  am 
sure  that  he  will  appoint  a  Grand  Jury  this 
morning 

Senator  Bran  Okay  Proceeding  to  the  next 
clause  m  the  BUI  of  Particulars  In  par- 
ticular, the  Special  Prosecutor  shall  have 
full  authority  with  respect  to  reviewing 
all  documentary  evidence  available  from  any 
source  as  to  which  he  shall  have  full  access." 

Do  you  recognize  that  you  have  that  full 
authority.  Mr   Jaworskl' 

Mr.  jAWoasKi  Yes.  sir.  Senator  Byrd.  I 
think  I  can  say.  in  fact,  there  Is  no  reason 
why  It  should  not  be  stated  publicly,  cer- 
tainly to  this  Committee.  I  have  a  repre- 
sentative from  my  office  who  Is  In  the  White 
Rouse  right  now  going  through  files  that  I 
have  asked  to  do  this,  and  this  Is  all  done 
under  very  careful  scrutiny  But.  there  are 
a  number  of  files  that  need  exammatlon. 
and  a  number  of  documents  we  are  Inter- 
ested In  and  those  files  are  being  made  avaU- 
able  to  us.  and  we  intend  to  search  for  each 
document  which  we  believe  Is  in  existence 
and  which   we   feel   we  should  have. 

Senator  Bran  Mr  Saxbe.  you  have  no  in- 
tention to  attempt  to  Interfere  with  the  full 
authority  of  the  Special  Prosecutor  In  thU 
regard? 

Senator  Saxbx.  I  do  not. 

Senator  Bt«d.  Continuing  "In  particular, 
the  Special  Proaecutor  shall  have  full  au- 
thority for  determining  whether  or  not  to 
contest  the  assertion  of  'Executive  Privilege' 
or  any  other  testimonial  privilege  " 

Do  you  recognize  your  full  authority,  Mr 
Jaworskl.  and  do  you  assure  this  Commltt** 
based  upon  your  bon<»'  and  your  good  nams, 
that  you  will  fulfill  to  the  very  best  of  your 
ability,  the  thrust  of  that  paragraph? 
Mr.  JAWoasKi.  I  do.  sir 

Senator  Brao.  Mr  Saxbe.  would  you  have 
any  intention  now  or  In  the  future  to  at- 
tempt In  any  way  to  Interpose  Tn\:rv.if  your 
office  or  your  command,  or  U-  ir'^^rrene  la 
any  way  between  the  carrying  out  bv  Mr. 
Jaworskl.  or  any  Special  Prosecutor,  of  hU 
obligations  under  that  prtu-agraph.  and  I  will 
read  it  again: 

"The  Special  Prosecutor  ahaU  hare  full 
authority  for  determlng  whether  or  not  to 
contest  the  asssrtlon  of  "KxecutlTe  Privilege" 
or  any  other  testimonial  prlTUege." 

Senator  Saxxb  No.  I  have  no  reservation 
on  that 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


42745 


Senator  Brao.  And  you  would  not  attempt 
to  Interfere  with  the  responsibility  of  the 
Special  Prosecutor  as  stated  clearly  in  that 
paragraph? 

Senator  Saxbx.  That  Is  correct. 
Senator  Btrd.   "In  particular,  the  Special 
Prosecutor  shall  have  full  authority  for  de- 
termining whether  or  not  application  should 
be  made  to  any  Federal  court  for  a  pant  of 
Immunity    to    any    witness,    consistent    with 
applicable    statutory     requirements    or     for 
warrants,  subpoenas,  or  other  court  orders." 
Do  you  have  any   compunctions.  Mr.  Ja- 
worskl.  In   carrying  out   your  responslbUlty 
under  that  paragraph? 
Mr.  JAWoasKi.  1  have  none.  Senator. 
Senator  Brao.  Senator  Saxbe? 
Senator  Sazbi.  No,  sir. 
Senator  Bran.  You  have  no  compunctions 
and    you    will   support   Mr    Jaworskl   in   his 
efforts? 

Senator  Saxbx.  I  win. 

Senator  Brao.  "In  particular,  the  Special 
Prosecutor  shall  have  full  authority  for  de- 
ciding whether  or  not  to  prosecute  any  in- 
dividual, firm,  corporation  or  group  of  in- 
dividuals." 

Mr.  Jaworskl,  do  you  have  any  compunc- 
tion or  any  Inhibitions  against  doing  this 
to  the  full  letter  and  Intent  of  the  para- 
graph and  to  the  extent  of  your  full  vigor 
and  ability? 

Mr.  Jasowsiu.  I  intend  to  do  so,  yes,  sir. 
Senator  Brao.  Senator  Scucbe,  do  you  assure 
this  Committee  that  you  wUl  m  no  way  at- 
tempt to  interfere  with  Mr  Jaworskl  In  the 
carrying  out  of  that  requirement  that  I 
have  Juat  read? 

Senator  Saxbx.  I  have  no  reservation. 
Senator  Bt»b.  In  particular,  the  Special 
Prosecutor  shall  have  fuU  authority  for  initi- 
ating and  conducting  prosecutions,  framing 
Indictments,  filing  Informations  and  han- 
dling all  aspecu  of  any  cases  within  Its 
jurisdiction  (whether  InltUted  before  or 
after  his  assumption  of  duties) .  Including  all 
appeals." 

Are  there  any  questions,  Mr.  Jarowakl, 
with  respect  to  that  paragraph?  Do  you  In- 
tend to  pursue  that  paragraph  and  the  re- 
quirements of  It  to  the  best  of  your  abUlty. 
to  your  complete  abUlty  and  without  reserva- 
tion? 

Mr.  jAwoasKi.  I  Intend  to,  yes.  sir. 
Senator   Bted     Mr.   Saxbe.   wUl    you   sup- 
port Mr.  JarowskI  in  his  carrying  out  of  his 
re^>onslbmty  under  that  paragraph  without 
reservations? 

Senator  Saxbe.  I  will. 

Senator  Brao.  "In  partlctilar,  the  Special 
Prosecutor  shall  have  full  authority  for  co- 
ordinating and  directing  the  activities  of  all 
Department  of  Justice  personnel  Including 
United  States  Attorneys." 

Mr  Jaworskl.  what  Is  your  Interpretation 
of  that  paragraph? 

Mr  jAwoasKi  Well.  It  has  not  been  fre- 
quently exercised  but.  In  fact.  If  we  want  It. 

If  our  office 

Senator  Btxd.  Mr.  Chairman,  may  we  have 
better  order  In  the  hearing  room? 

Senator  Hast  (presiding).  Those  who  are 
guests  please  attempt  to  avoid  the  spittoons 
and  otherwise.  And  I  think  It  would  help, 
Senator  Byrd.  if  our  witnesses  would  speak 
into  those  microphones. 
Senator  Brao.  Thank  you.  Mr  Chairman. 
Mr.  jAwoBfflsi.  Thank  you.  Senator.  We  do 
have  the  Jurisdiction  to  ask  United  States 
Attorneys  to  withhold  action  and  for  the 
Jurisdiction  over  that  particular  matter  to 
be  placed  and  left  In  our  hands  And  In  In- 
stances where  the  United  States  Attorney 
proceeds  with  the  prosecution,  as  Is  true,  for 
Instance,  in  the  New  York  Vesco  case,  the 
United  SUtes  Attorney  really  Is  acting  sub- 
ject to  our  direction.  If  we  choose  to  exercise 
it.  And  In  that  particular  case  that  I  just 
mentioned,  the  Vesco  case,  we  are  keeping  up 
with  developments  very  closely  and  should 
It  become  necessary  for  us  to  take  a  particu- 


lar or  participate  lu  some  respects,  take 
particular  action,  and  perhaps  even  give 
some  specific  direction,  we  would  do  so.  We 
would  have  the  authority.  Senator  Byrd,  un- 
der that  provision. 

•  Senator  Btbd.  Well,  I  will  repeat  It  again: 
"And.  In  particular,  the  Special  Proaecutor 
shall  have  full  authority  with  resp)ect  to  the 
above  matters"  referring  to  the  leadofl  para- 
graph, the  all -encompassing  generalized 
phraseology,  "full  authority  with  respect  to 
the  above  matters  for  coordinating  and  di- 
recting the  activities  of  all  Department  of 
Justice  personnel.  Including  the  United 
States  attorneys." 

Does  this  give  you  any  problem,  Mr.  Saxbe, 
this  paragraph? 

Senator  Saxbx.  There  Is  none. 
Senator  Btro.   You  do  not  question   the 
authority  of  Mr.  Jaworskl  In  this  area? 

Senator  Saxbx  No.  It  Is  my  understanding 
In  the  whole  approach  to  this  section  of  law 
that  these  rules,  that  every  effort  will  be 
made  by  the  Justice  Department  to  cooperate 
with  the  Special  Prosecutor  and  that  would 
mean  the  several  thousand  attorneys  over 
there  that  might  be  able  to  contribute  some- 
thing could.  If  necessary,  be  called  upon. 

Senator  Btrd  In  particular,  and  this  la  the 
last  of  the  Bill  of  Particulars:  'In  particular, 
the  Special  Prosecutor  shall  have  full  author- 
ity with  respect  to  the  above  matters  for 
dealing  with  and  appearing  before  Congres- 
sional Committees  having  Jurisdiction  over 
any  aspect  of  the  above  matters  and  deter- 
mining what  documents.  Information  and 
assistance  shall  be  provided  to  such  com- 
mlrtees.^' 

Do  you  understand,  Mr.  Jaworskl.  In  agree- 
ing to  this  area  of  guidelines,  that  It  Is  In- 
tended for  you  to  have  full  authority  to  deal 
with  and  appear  before  Congressional  Com- 
mittees having  Jurisdiction  over  any  aspect 
of  this  whole  matter? 
Mr.  Jaworskl  Yes.  sir. 

Senator  Brao.  You  have  no 

Mr  Jaworski.  I  have  no  qualms  about  It. 
Senator  Btrd.  No  qualms  about  coming  be- 
fore the  appropriate  commltee  or  asking  to 
cooM  before  the  appropriate  committees  In 
order  to  fulfill  the  requirements  of  this  para- 
graph? 

Mr.  Jaworski.  None  at  all  and  I  would  do 
so. 

Senator  Brao.  Mr.  Saxbe.  would  you  Intend 
in  any  way  to  Inhibit  Mr.  Jaworksl  from 
doing  so? 

Senator  Saxbe.  I  would  not. 
Senator  Btro.  "In  exercising  this  author- 
ity" meaning  all  of  the  foregoing  authority 
"the  Special  Prosecutor  wUl  have  the  greatest 
degree  of  Independence  that  Is  consistent 
with  the  Attorney  General's  statutory  ac- 
countabUity  for  all  matt<>rs  falling  within  the 
Jurisdiction  of  the  Department  of  Justice 

Mr.  Saxbe.  how  do  you  Interpret*  the  word 
"consistent"  as  it  is  used  In  this  context''  And 
may  I  read  tt  again  I  know  vou  are  fully 
conversant  with  this  paragraph  but  for  the 
convenience  of  the  record,  let  me  read  It 
again: 

"In  exercising  this  authority"  all  of  the 
foregoing  the  BUI  of  Particulars,  "the  Special 
Prosecutor  will  have  the  greatest  degree'  not 
great  r!e»rree  but  Rreateet  dBeree,  "of  !n- 
dependen'^e  that  Is  consistent  with  the 
Attorney  General's  statutory  acc-ountablHty 
for  all  matters  falling  within  the  J-orlsdlc- 
tlon  of  the  Department  of  Justice  " 

Senator  Saibx.  I  think  this  means  exactly 
what  It  says,  that  "con.'5;s;<'nt  is  a  word  of 
art  and  means  that  if  sometMnp  i«  not  in 
violation  of  the  statutory  provisions  ^f  the 
Attorney  GeneraTs  Office,  that  It  Is  ve«te<l 
with  the  Special  Prosecutor  These  go  or.  as 
you  know,  to  several  volumes  of  the  VS 
Code,  the  duties  and  obligations  of  the  De- 
partment of  Justice,  and  it  Is  used  only  for  a 
purpose  of  puUlng  them  together  so  that  they 
do  not  have  to  aU  be  related 


Senator  Brao.  What  do  you  see  as  your 
statutory  accountability  as  Attorney  General, 
Mr.  Saxbe?  What  do  you  see  as  your  "statu- 
tory accountability  "  with  which  the  Special 
Prosecutor's  independence  would  have  to  be 
consistent? 

Senator  Saxbe.  The  statute,  and  as  I  say 
there  are  several  volumes,  sets  out  that  the 
Attorney  General  shaU  do  this,  the  Office  of 
Attorney  General  shall  prosecute,  the 
Office  of  the  Attorney  General  shall  bring  this 
action,  shall  bring  that  action.  Those  are 
directions  and  limitations  on  the  Attorney 
General  and  the  Si>eclal  Prosecutor  could 
do  nothing  that  exceeded  these  limits  or 
authorization. 

Senator  Btrd.  In  response  to  the  same 
question — in  essence,  the  same  questions 
from  me — Mr.  Richardson  said  this: 

"I^t  me  Just  say  for  myself.  Senator  Byrd, 
that  I  know  very  well  what  this  language 
means.  The  language  reflects  the  understand- 
ing I  have  with  Mr.  Cox.  I  woiUd  not  demand 
Information  under  any  foreseeable  circum- 
stances because  I  would  be  a-aare  that  I  had 
already  made  clear  that  this  wae  not  the 
resened  right  that  I  Intended  to  maintain. 
T^e  phrase  statutory  accountabUlty'  Is  de- 
signed to  fulfill  a  narrower  function,  pri- 
marily to  avoid  the  necessity  for  an  amend- 
ment of  the  law  and  make  !t  posB'.ble  through 
the  exercise  of  the  statutory  role  of  the  Attor- 
ney General  to  make  the  delegations  of  au- 
thority that  are  set  forth  here 

"I  might  summarize  the  elements  of  statu- 
tory accountabUlty.  and  I  see  them  under  Ats 
headings." 

Now,  these  are  the  five  headings  as  were 
entimerated  by  Mr  Richardson 

"The  first  is  the  appointment  of  the  Spe- 
cial Prosecutor  hJmself  The  second  Is  the 
delegation  to  him  of  the  ftUl  authority  set 
forth  in  these  guldellnee  The  third  Is  the 
provision  to  him  of  any  backup  of  his  author- 
ity that  the  Attorney  Creneral  In  the  eierdas 
of  bis  own  statutory  functions  can  provide. 
The  fourth  Is  the  provision  cf  administrative 
and  staff  support.  And  the  fifth  and  last  is  the 
re,sene  power  of  remova.  uh:ch  ;s  expressed 
here  as  subject  only  to  extraordinary  im- 
propriety on  the  part  of  the  Special  Prosecu- 
tor." 

This  is  the  interpretation  that  was  made 
by  Mr  Richardson  of  the  ph.'aae  statutory 
accountabUlty".  Would  you  subscribe  to  Mr. 
Richardson's  definition  of  that  phrase' 

Senat-or  Saxbe  Yes,  but  I  take  a  much 
broader  view  I  think  the  statutory  authority 
extends  to  a  great  many  things  that  existed 
long  before  the  Special  Prosecutor  wag  estab- 
lished And  the  Special  Proa«<:utor  Is  bound 
by  those  J'a5t  as  the  Attorney  General  is 
bound  But  I  see  nothing  liiooiisistent  with 
what  he  said 

Senator  Btrd  Well,  taking  your  broader 
definition,  Mr  Saxbe,  do  you  see  anything  In 
the  statute  that  would  be  Inconsistent  with 
the  requirements  that  are  placed  on  Mr. 
Jaworskl   by   the  guidelines? 

Senator  Saxbi  No.  I  do  not  see  anything 
Inconsistent  I  think  there  are  certain  limita- 
tions, for  instance,  on  wire  tape.  I  do  not 
think  that  Mr  Jaworskl  could  authorize  wire 
taps. 

Senator   Btrd    But  the  guldeUnes  do  not 
give  him  the  authority  to  authorize  wire  taps 
Senatcv  Saxbx.  No.  That  is  what  I  am  taUt- 
ing  about  and  such  an  authwlty  woiUd  be 
inconsistent 

Senator  Btrd  Well,  but  no  such  authority 
is  m  the  guidelines  Do  you  see  any  Incon- 
sistency between  the  authority  and  the  re- 
5p>onslbUlty  placed  uf)on  Mr   Jaworskl  by  the 

guidelines 

Senator  Saxbx    No 

Senator  Btrd  And  the  statutes  for  which 
you  ha\e  statutory  accotintabUlty? 

Senator  Saxbx    No,  I  do  not.  As  I  say,  there 
a.-e     volumes    on    this    but     I    do    not     see 
and   I  am  sure  that  Mr.  Jaworskl  is  Just  as 
aware  of  thts  as  I  am,  and  has  and  will  ooo- 


42746 


CU.NuRESSIONAL  RECUKD  —  SENATE 


December  20,  197S 


tlnu«  to  operate  within  tlut  statutory  aa- 
thorlty  and  llmltatlona. 

Senator  Bras  "The  Attorney  0«neral  will 
not  countermand  or  Interfere  with  the  Spe- 
cial Proeecutor'8  decleiona  or  actlona." 

Do  you  subscribe  to  that? 

Senator  Sazbx.  I  do. 

Senator  Bt«o  That  la  a  mandate  by  the 
guidelines  Do  you  subscribe  to  that — that 
you  will  not  countermand  or  Interfere  with 
the  Special  Prosecutor's  decisions  or  actions? 

Senator  Saxx>.  That  U  correct. 

Senator  Bt»o    Do  you  subacrlbe  to  that? 

Senator  Sazbe  My  understanding  Is  he  wtU 
operate  completely  Independent,  and  the 
only  time  that  he  will  have  contact  with  me 
Is  when  he  wants  something  that  I  can  pro- 
Tide  him 

Senator  Btko  And  you  will  not  counter- 
mand or  Interfere  with  the  Special  Prosecu- 
tor's decisions  or  actions? 

Senator  Saxbb.  That  is  correct. 

Senator  Btid  You  say,  "That  is  correct." 
That  means  you  will  not? 

Senator  Saxbs  I  will  not. 

Senator  Brao.  The  Special  Prosecutor  wUl 
determine  whether  and  to  what  extent  he 
will  Inform  or  consult  with  the  Attorney 
General  about  the  conduct  of  his  duties  and 
responsibilities." 

Do  you  understand  what  your  respon- 
sibility Is  and  what  your  authority  Is  under 
that  guideline.  Mr.  Jaworsklf 

Mr.  Jawoksiu.  I  do.  sir. 

Senator  Bt«d  .^nd  do  you  Intend  to  live 
up  to  the  guideline  and  see  that  tt  la  applied 
In  this  regard? 

Mr  jAwoaaiu.  I  do. 

Senator  Bras.  Mr.  Sarbe,  you  are  satisfied, 
are  you.  that  this  Is  the  requirement? 

Senator  Saxbk.  I  am  not  only  satisfied.  I 
am  well  pleased. 

Senator  Btro  And  you  have  no  Intention 
whatsoever.  In  any  manner,  shape  or  form, 
of  attemplng  to  require  the  Special  Prosecu- 
tor to  Inform  or  consult  with  you  about  the 
conduct  of  his  duties  and  responslbllttlee 
except  when  he  determines  that  he  should 
consult  you? 

Senator  Saxbb.  That  Is  correct.  The  last 
thing  t  want  Is  to  become  Involved  In  this 
Investigation.  Frankly,  there  is  much  to  be 
done  in  the  Justice  Department  and  It  can- 
not be  done  if  the  Attorney  General  is  in- 
volved In  this  deep  Investigation. 

Senator  Brao.  The  guidelines,  as  amended 
in  November  by  Mr.  Bork.  proceed  as  fol- 
lows: 

"In  accordance  with  assurances  given  by 
the  President  to  the  Attorney  General  that 
the  President  will  not  exercise  his  Constitu- 
tional Powers  to  effect  the  discharge  of  the 
Special  Prosecutor  or  to  limit  the  independ- 
ence that  he  Is  hereby  given,  the  Special 
Prosecutor  will  not  be  removed  from  his 
duties  except  for  extraordinary  improprieties 
on  his  part  and  without  the  Presidents  first 
consulting  the  majority  and  the  minority 
leaders  and  Chairman  and  Ranking  Minority 
Members  of  the  Judiciary  Committees  of 
the  Senate  and  House  of  Representatives 
and  ascertaining  that  their  consensus  is  In 
accord  with  his  proposed  action  " 

Mr  Jaworski.  this  area  of  the  guidelines 
Is  new  It  was  not  in  the  guidelines  that 
were  agreed  upon  between  this  Committee 
and  Mr  Richardson  And  to  this  extent.  I 
think  the  amendment  Is  a  limitation  on 
those  guidelines  ThU  paragraph  was  later 
further  amended  On  November  28.  it  was 
fort  her  amended  by  adding  the  additional 
words  and  punctuation  "and  (No.  3)  the 
Jurisdiction  of  the  Special  Prosecutor  wUl  not 
be  limited  without  the  President  flm  con- 
sulting with  such  Members  of  Congress,  and 
ascertaining  that  their  consensus  is  in  sooord 
with  his  propoaed  action." 

Now.  I  am  ccncemed  about  this  phraseol- 
ogy. It  definitely  u  a  limiting  factor.  In  my 
judgment.  It  was  not  In  the  original  charter 
that  was  agreed  to  among  Mr    Richardson, 


Mr  Cox.  and  this  Committee.  It  was  not  even 
In  the  first  amended  version  that  appeared 
In  the  Federal  Register  on  November  7.  1973, 
and  It  can  only  have  the  effect  of  eroding  and 
limiting  the  Jurisdiction  of  the  Special  Pros- 
ecutor. It  Is  an  erosion  of  your  earlier  author-  • 
ity,  pure  and  simple,  in  my  opinion. 

What  do  you  understand,  Mr.  Jaworski,  to 
have  been  the  "assurances"  given  by  the 
President  to  the  Attorney  General  that  the 
President  will  not  exercise  his  Constitutional 
Power  to  effect  the  discharge  of  the  Special 
Prosecutor  or  to  limit  the  independence  that 
he  Is  hereby  given? 

Mr  Jawobsiu  When  I  say.  Senator  Byrd. 
when  the  language  you  last  read  was  called 
to  my  attention,  l  talked  with  Mr  Bork.  the 
Acting  Attorney  General  about  It  and  told 
him  that  I  wondered  what  was  meant  by  that 
language,  that  there  was  a  feeling  on  the  part 
of  some  that  It  might  a-ell.  as  you  have  ex- 
pressed It.  Senator  Byrd.  be  construed  as  lim- 
iting JurlsdlcUon.  And  he  told  me  that  the 
use  of  the  word  "Jurisdictional"  was  very  un- 
fortunate, that  he  really  did  not  Intend  to  use 
It  In  the  sense  In  which  it  appears  in  that  lan- 
guage, and  what  he  really  meant  was  inde- 
p>endence  Instead  of  Jiuisdlctlon.  He  prompt- 
ly wrote  me  a  letter  to  that  effect  and  the 
letter.  I  think,  was  publicized.  It  Is  my  recol- 
lection, and  I  know  that  he,  in  this  letter, 
said  that  he  wanted  to  reassure  me  that  tt 
was  not  Intended  at  all  to  constitute  any  sort 
of  limitation  on  the  exercise  of  my  authority 
as  heretofore  stated 

Senator  Brao  So  Mr  Bork  was  saying  to 
you  he  had  intended  the  word  "independ- 
ence" rather  than  the  word  "Jurisdiction?" 

Mr.  Jawossxi    Yes.  sir. 

Senator  BymD  Do  they  both  not  mean  the 
same  thing,  depending  on  who  wishes  to  In- 
terpret them?  If  I  wanted  to  limit  your  Juris- 
diction. I  would  Just  as  soon  limit  your  Inde- 
pendence As  a  matter  of  fact,  if  I  were  to 
limit  your  Independence.  I  would  probably  be 
placing  a  greater  limitation  on  you  than  I 
would  by  limiting  your  Jurisdiction. 

Mr  Jawokski.  What  he  meant  to  say  and 
I  am  reporting  to  you  what  he  did  say  over 
the  telephone,  when  I  received  the  letter — 
unfortunately.  I  do  not  have  a  copy  of  It 
with  me.  but  I  understand  that  It  was  repro- 
duced In  the  Federal  Register— when  I  re- 
ceived the  letter  it  made  It  very  clear  that 
there  was  no  Intent  of  any  kind  to  either 
Interfere  with  Independence  or  Jurisdiction. 

Senator  Brao  That  letter  did  not  appear  In 
the  Federal  Register 

Mr'jAwoaain  It  did  not?  I  am  sorry,  then. 
I  thought  that  It  would. 

Senator  Bt«o  Then  you  think  It  should  so 
appear? 

Mr.  Jawoiski  I  think  tt  would  be  well  to, 
yes.  sir  It  Is  a  letter  that  I  certainly  attached 
some  significance  to 

Senator  BraD  Do  you  see  any  reason  why 
that  letter  could  not  be  Inserted  in  the  Fed- 
eral Register"* 

Mr  Jawokski  I  do  not.  although  I  am  not 
an  authority  on  that  But.  I  do  not  see  any 
reason  why  It  should  not  be  Certainly,  when 
tt  makes  reference 

Senator  Bran  Would  you  submK  the  letter 
to  this  Committee  for  Its  Inclusion  In  the 
hearing? 

Mr  Jawossxt  Indeed  ao. 

Senator  Bran  What  do  you  think  Is  meant 
by  "assurances,  given  by  the  President"? 

Mr  JAWcwaxi  Senator  Byrd.  what  hap- 
pened as  I  undertook  In  detail  In  this  Com- 
mittee, and  I  am  pleased  to  have  the  oppor- 
tunity to  tell  you  about  It.  because  you  were 
not  present  at  the  time  But  what  occurred 
ts  at  the  time,  I  was  seeking  ail  at  the  Inde- 
pendence that  I  could  thnik  of  I  had  the 
assurance  given  me  by  General  Halg.  and  I 
will  teU  you  In  a  moment — — 

Senator  Bras  Would  you  speak  a  little 
louder,  Mr  Jaworakl? 

Mr  Jawosski  Yes  And  I  wUl  state  In  a 
moment  the  course   of  events  as   thfiy  oc- 


th|y 


curred.  But,  whMi  General  Halg  and  I  came 
to  an  understanding,  as  far  as  I  was  con- 
cerned, an  understanding  that  he  was  to  pre- 
sent to  the  President  tmd  the  President  was 
to  approve  It  or  reject  it,  it  included,  as 
agreed  upon,  my  unrestrained  right  to  resort 
to  judicial  process. 

Senator  Bran,  Is  this  In  writing? 

Mr,  Jawobski  No.  sir.  It  has  been,  I  think, 
publicly  stated  by  the  President  since  thea 
in  one  of  his  conferences  or  public  state- 
ments. 

Senator  Brao.  What  has  he  stated? 

Mr  jAWoasKi.  That  I  would  have  the  right 
to  file  suit, 

Senator  Brao.  The  President  has  said  that? 

Mr,  jAWoasKi.  Yes.  It  is  my  understanding 
that  tt  was  said.  In  fact,  I  think  I  may  have 
heard  It.  I  did  not  bear  that  entire  confer- 
ence, but  It  was  stated  In  that.  And.  In  addi- 
tion, there  was  set  up,  as  you  know,  this 

Sen  -or  Brao.  Well.  thU  phraseology,  how- 
ever. 1  Jfera  to  assurances  given  by  the  Presi- 
dent to  the  Attorney  General. 

Mr.  Jawobski.  That  Is  correct. 

Senator  Brao.  Now  what 

Mr  Jawobski  And  I  am  trying  to  detail  or 
have  undertaken  to  detail  the  as-surances 
that  were  given  to  me  l)efore  I  accepted  the 
assignment.  Senator. 

Senator  Bran  The  assurances  given  to  you 
by  whom? 

Mr.  Jawobski  Given  to  me  by  General  Halg 
after  reviewing  them  with  the  President  and 
coming  back  and  saying  the  President  had 
agreed  to  them.  Now,  after  that,  the  matter 
was  again  reviewed  in  the  presence  of  Senator 
Saxtw  and  Mr,  Bork.  not  only  what  I  had 
detailed  with  re^wct  to  the  right  to  resort 
to  Judicial  process,  but  also  the  right  to  oome 
to  the  Congressional  Oommlttee  that  you  are 
aware  of.  In  the  event  that  an  Impasse  should 
occur  between  the  President  and  me  and  Mr. 
Saxbe.  Senator  Saxbe  at  that  time  assured 
me  that  should  he  become  Attorney  General, 
he  would  abide  by  that,  and  Mr.  Bork  agreed 
to  It,  too. 

Senator  BTao.  Would  you  supply  for  the 
record  the  assuranoes  which  you  were  given 
by  Mr   Bork,  Mr.  Halg  and  by  Mr,  Saxbe? 

Mr.  Jawobski,  I  will  do  so.  yes.  sir. 

Senator  Brao.  Did  you  have  the  under- 
standing that,  in  receiving  these  assuranoes 
from  General  Halg  and  Mr,  Bork,  they  were 
assurances  that  had  been  given  by  the 
President? 

Mr.  Jawobski.  My  understanding  was  that 
this  followed,  the  course  of  events  wm  my 
talk  with  Senator  Saxbe  after  he  had  talked 
with  the  President,  That  was  my  under- 
standing. And  now  how  Mr.  Bork  received 
that  Information.  I  am  not  aware  of.  but 
I  recall  that  Senator  Saxt>e  mentioned  that 
he  had  talked  with  the  President,  And,  as  I 
mentioned.  Senator  Saxbe  agreed  to  this. 
But  I  will,  as  you  have  asked.  I  will  supply 
in  WTlttlng  these  assurances  for  the  Commit- 
tee so  that  they  can  be  made  a  part  of  the 
record. 

Senator  Brao,  Very  well, 

(Subsequently,  Mr,  Jaworski  supplied  the 
following  material  for  the  record  : ) 

Omca  or  thx  Solicttob  Gekkral, 
Washington.   DC  ,  Nox^mber  21.  1973. 
Leok  Jawobski.  Esq  . 

Special  Prosecutor.  Watergate  Special  Prose- 
cution Force,  Washington.  DC 

Dkab  Mb,  Jaworski:  You  have  Informed 
me  that  the  amendment  to  your  charter  of 
November  19.  1973  has  been  questioned  by 
some  members  of  the  press  This  letter  Is  to 
confirm  what  I  told  you  In  our  telephone 
conversation.  The  amendment  of  November 
19.  1973  was  Intended  to  be,  and  Is,  a  safe- 
guard of  your  Independence 

The  Prestdent  has  given  his  assurance  that 
he  would  not  exercise  his  oonstltutlonal 
powers  either  to  discharge  the  Special  Proa- 
ecutor  or  to  limit  the  Independence  of  the 
Special  Prosecutor  without  first  consulting 
the  Majority  and  Minority  leaders  and  chalr- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42747 


men  and  ranking  members  of  the  Judiciary 
Committees  of  the  Senate  and  the  House,  and 
ascertaining  that  their  consensus  Is  In  ac- 
cord with  his  proposed  action. 

When  that  assurance  was  worked  Into  the 
charter,  the  draftsman  inadvertently  used  a 
form  of  words  that  might  have  been  con- 
strued as  applying  the  President's  assurance 
only  to  the  subject  of  discharge.  This  was 
subeequently  pointed  out  to  me  by  an  assist- 
ant and  I  had  the  amendment  of  November 
19  drafted  In  order  to  put  beyond  question 
that  the  assurance  given  applied  to  your 
independence  under  the  charter  and  not 
merely  to  the  subject  of  discharge. 

There  Is  In  my  Judgment,  no  possibility 
whatever  that  the  topics  of  discharge  or 
limitation  of  Independence  will  ever  be  of 
more  than  hypothetical  Interest.  I  write  this 
letter  only  to  repeat  what  you  already  know: 
the  recent  amendment  to  your  charter  was 
to  correct  an  ambiguous  phrasing  and  thus 
to  make  clear  that  the  assurances  concern- 
ing congressional  consultation  and  consensus 
apply  to  all  aspects  of  your  Independence. 
Sincerely. 

ROBKRT  H.   BOBK, 

Acting  Attorney  General. 

Watergati  Special 
Prosbctttion  Pobcx, 
Washington.  DC.  December  19. 1973. 
Hon.  Jakes  O.  Eastland, 

Chairman,  Committee  on  the  Judiciary,  V.S. 
Senate,  Washington.  DC. 

Dbar  Mr  Chairman:  In  the  course  of  my 
testimony  before  the  Senate  Judiciary  Com- 
mittee. Senator  Byrd  requested  me  to  furnish 
the  Committee  a  written  summary  of  my 
understanding  of  the  arrangement  made  with 
the  President  through  General  Halg  (and 
confirmed  by  Acting  Attorney  General  Rob- 
ert H.  Bork  and  Attorney  General-nominee. 
William  B.  Saxbe)  regarding  the  Independ- 
ence I  was  to  have  In  serving  as  Watergate 
8p>eclal  P»ro8ecutor.  I  agreed  to  do  so  and 
the  statement  below  is  made  In  compliance 
with  my  promise. 

It  was  expressly  confirmed  that  I  was  to 
proceed  In  the  discharge  of  my  responsibili- 
ties with  complete  Independence,  including 
the  right  to  sue  the  President,  if  necessary, 
and  that  if  an  impasse  occurred  between  us, 
the  President  would  not  discharge  me  or  take 
any  action  that  interfered  with  my  tode- 
pendence  without  first  consulting  the  Major- 
ity and  Minority  leaders  and  chairmen  and 
ranking  members  of  the  Judiciary  Commit- 
tees of  the  Senate  and  the  House,  and  obtain- 
ing a  consensus  view  that  accorded  a-lth  his 
proposed  action. 

Sincerely  yours, 

LxoN  Jaworski. 
Special  Prosecutor. 

Senator  Btvo.  Mr.  Chairman,  It  la  my  un- 
derstanding that  there  Is  a  desire  to  recess 
the  Committee  now  over  until  3  30. 

Senator  Habt.  As  Chairman  Eastland  left.  It 
was  his  suggestion,  and  I  think  given  the 
time  that  we  have  held  these  witnesses  to 
this  moment,  it  would  make  sense  to  recess 
now  until  3:30. 

Senator  Btro.  I  agree,  Mr.  Chairman. 

Senator  Cook.  Mr.  Chairman? 

Senator  Hart.  Mr.  Cook? 

Senator  Cook.  Mr.  Chairman.  I  wonder  if 
I  might  be  able  to  make  a  short  state- 
ment  

Senator  Hart.  But  we  can  excuse  the  wit- 


Senator  Cook.  If  I  might  make  a  statement 
right  at  3:30?  I  do  have  a  Conference  Com- 
mittee this  afternoon  and  I  wonder  If  I 
might  do  so,  so  that  I  can  leave? 

Senator  Btrd.  And  I  understand  that  fol- 
lowing Senator  Cook.  I  shall  continue  with 
my  questions? 

Senator  Hart.  Yes. 

(Whereupon,  at  12:35  p.m,  the  hearing  was 
reckesed  to  reconvene  at  2:30  p..m.  this  same 
<Uy.) 


AFTERNOON    BXSSION 

The  Chairmak.  Let's  have  order,  please. 
Senator  Cook.  Mr.  Chairman,  I  would  like 
to  thank  the  Senator  from  West  Virginia  for 
giving  me  the  opi>ortunlty  to  make  a  very 
short  number  of  remarks  into  the  record  be- 
cause I  am  due  at  a  conference  committee  In 
the  Capitol,  and  I  will  proceed. 

Mr.  Chairman.  I  find  It  very  difficult  to  be 
formal  with  BUI  Saxbe,  I  have  to  confess. 
Bill  and  Dolly  Saxbe  are  the  finest  and  clos- 
est friends  that  Nancy  Cook  and  I  have 
gained  since  we  came  to  Washington  In  1969. 
We  have  as  families  been  together  on  many, 
many  occasions. 

Other  than  Bills  ability  to  be  a  used  car 
salesman  and  his  unfortunate  attitude  to- 
wards the  Ohio  River  and  the  Commonwealth 
of  Kentucky,  I  find  him  one  of  the  most 
honest  and  one  of  the  most  refreshing  men 
in  the  United  States  today.  He  is  blunt.  He 
Is  completely  frank.  He  has  a  mind  that  Is 
quick  to  analyee  and  is  sometimes  Instanta- 
neous to  reply. 

I  feel  he  has  assumed  this  Job  and  the  re- 
sponslbUlty  of  It,  If  It  is  the  desire  of  the 
Senate  to  confirm  him.  because  of  his  deep 
commitment  to  the  law  and  to  his  profes- 
sion. I  know  that  he  feeU  that  the  profession 
has  been  deeply  hurt  by  past  disclosure  of 
activities.  I  feel  that  It  Is  his  conunltment  to 
restore  Integrity  to  a  profession  that  he  has 
an  uncompromising  love  for,  and  a  dedica- 
tion to.  that  he  finds  himself  In  this  position 
today.  Mr.  Chairman.  He  spoke  and  made  his 
decision  to  leave  the  United  SUtes  Senate 
and  go  back  to  Ohio  and  practice  law.  The 
President  asked  him  to  assume  the  responsi- 
bility, and  he  has  accepted  that  challenge  as 
any  man  would. 

Mr.  Chairman,  this  Individual  shall  miss 
him  and  the  Senate  shall  miss  him  In  hla 
present  role.  However,  the  country  will  find 
him  a  welcome  and  honest  and  forthright  At- 
torney General. 

Mr.  Chairman,  they  will  find  htm  a  man 
who  under  no  circumstances  will  ever  cut 
and  run. 

I  want  to  congratulate  him  for  this  ap- 
pointment  and   I    look   forward    to   working 
with  him  in  the  position  that  he  shall  as- 
sume. 
Senator  Saxbe.  Thank  you  very  much. 
Senator  Cook.  Thank  you.  Mr.  Chairman. 
The  Chairman.  Senator  Byrd. 
Senator  Btro.  Thank  you,  Mr.  Chalrmai. 
Mr.  Jaworski,  earlier,  prior  to  the  recess, 
we  discussed  the  phrase  that  I  read  into  the 
record  that  was  extracted   from  Mr.  Rich- 
ardson's   statement,    the    phrase    "statutory 
accountability." 

Are  you  satisfied  with  Senator  Saxbe 's  re- 
sp)onses   to    my    questions   as   to   his   inter- 
pretation of  that  phrase? 
Mr.  Jawobski.  Yes,  sir. 

I  feel  as  he  does  that  there  are  certain 
things  that  our  ofBce  would  not  have  the 
right  to  do.  There  are  certain  guidellr.es  that 
we  must  observe,  just  as  the  mec.bers  of 
the  Attorney  General's  Department  and  the 
Justice  Department  must  obserye.  Obyloualy 
I  would  want  to  observe  those. 

He  cited  an  example  which  I  think  is  prob- 
ably a  good  one.  I  can  think  of  one  or  two 
others.  Certainly  we  would  undertaXe  and 
abide  by  those.  I  do  not  think  that  Impinges 
any  on  what  I  spoke  of. 

Senator  Bt»o.  You  see  no  Inconsistency 
with  what  Senator  Saxbe  said  as  against  the 
mandate  and  guidelines? 
Mr.  Jaworski  I  do  not,  sir. 
Senator  Btrd.  You  also  indicated  that  you 
would  supply  for  the  record  a  letter  ad- 
dressed to  you  from  Robert  H.  Bork.  Acting 
Attorney  General,  with  respect  to  the  amend- 
ment of  the  guidelines 

You  have  supplied  me  with  that  letter  I 
will  read  it  Into  the  record 

"Noyember  21,  1973.  Leon  Jaworski  Esq., 
Special  Prosecutor,  Watergate  Special  Prose- 


cution Force,  1426  K  Street,  N.W.,  Washing- 
ton, DC.  30006. 

"Dear  Mr.  Jaworski:  You  have  Informed 
me  that  the  amendment  to  your  charter  of 
November  19,  1973  has  been  questioned  by 
some  members  of.  the  press.  This  letter  is  to 
confirm  what  I  told  you  in  our  telephone 
conversation.  The  amendment  of  November 
19,  1973  was  Intended  to  t>e,  and  Is,  a  safe- 
guard of  your  Independence. 

"The  President  h&s  given  his  assurance 
that  he  would  not  exercise  his  constitutional 
powers  either  to  discharge  the  Special  Prose- 
cutor or  to  limit  the  Independence  of  the 
Special  Prosecutor  without  first  consulttog 
the  Majority  and  Minority  leaders  and  chair- 
man and  ranking  members  of  the  Judiciary 
Committees  of  the  Senate  and  the  House, 
and  ascertaining  that  their  consensus  Is  in 
accord  with  his  proposed  action. 

"When  that  assurance  was  worked  into 
the  charter,  the  draftsman  inadvertent- 
ly used  a  form  of  words  that  might  have  been 
construed  as  applying  the  President's  assur- 
ance only  to  the  subject  of  discharge.  This 
was  subsequently  pointed  out  to  me  by  an 
assistant  and  I  had  the  amendn^nt  of  No- 
vember 19  drafted  In  order  to  put  beyond 
question  that  the  assurance  given  applied 
to  your  Independence  under  the  charter  and 
not  merely   to  the  subject  of  discharge. 

'"There  Is,  in  my  Judgment,  no  posstblUty 
whatever  that  the  topics  of  discharge  or 
limitation  of  independence  wUl  ever  be  of 
more  than  hypothetical  interest.  I  write  this 
letter  only  to  repeat  what  you  already  know : 
the  recent  amendment  to  your  charter  was  to 
correct  an  ambiguous  phrasing  and  thus  to 
make  clear  that  the  assurances  concerning 
congressional  consultation  and  consensus  ap- 
ply to  all  aspecU  of  your  independence  " 

Does  thia  letter  fully  satisfy  you  as  to  your 
independence  and  as  to  the  assurances  "that 
the  President  has  given."  that  he  wUl  not 
exercise  his  constitutional  powers  either  to 
discharge  you  or  limit  your  Independence 
without  first  consulting  the  Majority  and 
Minority  leaders,  et  al? 

Mr.  Jaworski.  Senator  Byrd,  this  is  in  line 
with  what  I  sought.  I  wUl  be  entirely  candid 
and  say  to  you  that  I  sought  the  maximum 
of  what  I  coiUd  think  of  at  the  time,  and  If  I 
could  have  thought  of  some  other  safe- 
guards, I  would  have  asked  for  them,  I  think 
the  matters  that  you  have  covered  today 
have  been  clarifying,  and  certainly  it  naUa 
down  some  matters  that  someone  might  have 
had  some  doubt  about  or  might  have  ques- 
tioned. 

I  personally  have  proceeded— I  hope  I  have 
not  been  naive— I  personally  proceeded  on 
the  theory  that  I  had  complete  inds- 
pendenoe.  I  wUl  say  that  I  have  certainly 
exercised  it  In  several  respects,  and  no  (me 
has  undertaken  to  call  my  hand. 

If  It  should  come  to  pass  that  someone 
shoiUd  and  I  thought  that  I  was  right.  I 
would  come  to  consult  the  Committee  that 
has  been  set  up  for  such  purposes. 

Senator  Btrd  Say  that  again. 

Mr  Jaworski  ir  anyone  should  disagree 
with  me  as  to  what  I  am  doing,  particularly 
the  President,  if  he  should  disagree  and  I 
felt  that  ,1  was  within  my  responsibuity.  car- 
rying out  the  functions  of  my  o.^.ce  I  would 
not  hesiute  to  come  to  the  Committee  that 
has  been  set  up  and  report  to  them  for  the 
purpose  of  their  knowing  eiacUy  what  the 
situation  was  ao  that  the  Impasse  could  be 
resolyed,  if  possible 

Senator  Btrd  Would  you  also  not  hesitate, 
as  Professor  (^x  did  not  hesitate,  to  call 
a  preaa  conference  and  make  known  to  the 
people  of  this  Nation  the  fact  that  you  were 

being  asked — If  you  were  being  asked to  do 

what,  in  your  conscience,  you  could  not  do? 

Mr.  Jawokski.  I  would  make  It  known  This 
does  not  relate  to  my  right  to  go  to  coort. 
I  would  do  that  without  even  r»,iung  t  pnm 
conference  or  going  anywhere  1  think  If  I 
conclude  that  It   Is  necessary  for  me  to  r«- 


42748 


CONCRrSSIONAI    RFrORD  — SENATE 


December  20,  1973 


sort  to  the  Judlct*!  process,  I  have  been 
assured  tbat  I  wUl  have  that  avenue  open 
to  me  I  intend  to  exercise  that  regardleaa 
of  what  disagreement  may  arise. 

Senator  Btrd.  If  later.  If  the  word  is  con- 
veyed to  you  through  the  Attorney  Oeneral 
or  otherwise  that  you  no  longer  have  that 
assurance,  will  yovi  still  pursue  the  Judicial 
process  of  securing  evidence  from  the  White 
House  with  regard  to  any  individual  or  group 
or  Individuals? 

Mr  Jaworski.  I  would  not  hesitate  at  all. 
I  would  indeed,  sir 

Senator    Ha«t     Would    the    Senator    from 
West  Virginia  permit  me  one  question? 
Senator  Btro  Yes 

Senator  Hart  Do  I  understand.  Mr  Jawor- 
skl.  that  if  disagreement  developed  between 
you  and  anyone,  including  the  President, 
with  respect  to.  for  example,  your  Jur- 
isdiction to  pursue  an  Inquiry  or  otherwise, 
w^hlle  you  might  come  and  consult  the  Con- 
gressional leadership  committee  provided  for 
in  the  regulations,  even  if  that  Congressional 
leadership  committee  by  a  consensus  dis- 
agreed with  you,  you  would  not  feel  that 
would  bar  you  from  pursuing  the  question  In 
court? 

Mr.  Jaworski.  If  It  related  to  a  question  In 
court.  Senator  Hart.  I  would  proceed  without 
coming  to  the  Committee.  I  would  feel  that  I 
had  that  right  to  resort  to  the  Judicial  proc- 
ess If  It  related  to  some  matter,  some  area 
that  does  not  relate  to  my  going  to  court, 
then  I  would  come  to  the  Committee  If  an 
effort  were  made  either  to  hamper  me  or  If  I 
received  Instructions,  directions  not  to  pro- 
ceed In  that  course 

Senator  Hart  Thank  you.  Senator. 
Senator  Btrd  Thank  you. 
If  you  feel.  Mr    Jaworski.  that  your  Juris- 
diction is  being  limited  or  that  you  are  being 
asked  to  limit  yotir  Jurisdiction  as  set  forth 
under  the  guidelines,  would  you  feel  free  to 
come  before  that  ad  hoc  committee  which  is 
mentioned  In  the  guidelines,  as  well  as  be- 
fore this  Committee  to  make  your  case?  You 
would  have  no  inhibitions  about  going  pub- 
lic, with  such  a  problem  If  It  should  arise? 
Mr   Jaworski.  None  whatever. 
Senator  Btrd.  Do  you,  in  view  of  the  clari- 
fying letter  of  Noveml>er  21.  1973,  written  by 
Bork,  feel  any  uneasiness  or  any  insecurity 
whatsoever  regarding  the  authority  that  has 
been  outlined  In  the  guidelines  and  wherein 
vour  duty  lies? 
*    Mr.  Jaworski  No  sir.  I  do  not. 

-^nator  Btrd.  Then  the  amendment  of  the 
guideline  which  was  first  published  In  the 
Federal  Register  on  November  7th  and  the 
subsequent  amendment  of  the  amendment, 
which  was  published  on  Noveml>er  28th. 
cause  you  no  problem?  It  gives  you  no  con- 
cern "•  It  leaves  you  no  area  of  uncertainty, 
with  the  letter  from  Mr  Bork  as  a  clarifica- 
tion thereof? 

Mr  Jaworski.  Yes.  sir.  they  do  not.  I  feel 
that  way  about  it.  I  should  perhaps  add  that 
when  I  talked  to  Mr  Bork  about  the  matter, 
he  responded  Immediately  that  he  did  not 
Intend  for  the  wording  to  be  as  it  was  He 
said  that  he  would  write  a  clarifying  letter 
immediately.  In  other  words.  I  did  not  have 
to  argue  the  matter  He  offered  to  do  It 

Senator  Btrd  Paragraph  I  under  Staff  and 
Resource  Support.  Selection  of  Staff  "The 
Special  Prosecutor  shall  have  full  authority 
to  organize,  select  and  hire  his  own  staff  of 
attorneys  and  Investigators,  and  supporting 
personnel  on  a  full  or  part  time  basis,  in 
such  numbers  and  with  such  qualifications 
as  he  may  reaaonably  require  He  may  request 
the  Assistant  Attorneys  Oeneral  and  other 
offlcers  of  the  Department  of  Justice  to  as- 
sign siich  personnel  and  to  provide  such 
other  asalstance  a«  be  may  reasonably  re- 
quire All  personnel  in  the  Department  of 
Justice.  Including  the  Cnlted  States  Attor- 
neys, shall  cooperate  to  the  fullest  extent 
possible  with  the  Special  Prosecutor." 
Thus   far.    have    all    personnel    under   the 


Department  of  Justice,  includuig  the  US 
Attorneys,  cooperated  to  the  fullest  extent 
possible  with  you.  Mr    Jaworski? 

Mr  Jaworski  I  have  bad  no  difficulty 
whatsoever. 

Senator  Btro.  Do  you  luiderstand  that  you 
have  full  authority,  and  baa  It  been  made 
clear  to  you  that  you  do  have  full  authority, 
and  has  that  full  authority  t>een  questioned 
at  any  time  with  respect  to  the  organization, 
selection  and  hiring  of  your  staff  of  attorneys. 
Investigators  and  supporting  personnel  on 
a  full  or  part  time  basis  and  In  such  num- 
bers and  with  such  qualifications  as  you  so 
reasonably  require? 

Mr.  JAWoasKi.  It  has  not  been  questioned. 
Senator  Byrd.  I  have  exercised  my  free  think- 
ing and  prerogatives  with  respect  to  It. 

Senator  Btro    Mr    Sax  be,  will  the  Special 
Prosecutor  have  the  full  authority  granted 
in  that  paragraph? 
Senator  Saxbc    He  will 

Senator  Btro.  Budget.  The  Special  Pros- 
ecutor will  be  provided  with  such  funds 
and  facilities  to  carry  out  Ms  responsibilities 
as  he  may  reasonably  require.  He  shall  have 
the  right  to  submit  the  budget  requests  for 
funds,  positions  and  other  assistance  and 
such  requests  shall  receive  the  highest 
priority." 

Mr.  Jaworski.  would  you  have  any  hesita- 
tion about  submitting  budget  requests  for 
funds,  positions  and  other  assistance  which 
you  deem  to  be  necessary  in  the  carrying  out 
of  your  responsibilities  under  the  guidelines'' 
Mr.  Jaworski  I  would  have  no  reticence 
about  requesting  it.  I  have  not  had  to  do  It 
so  far  because  this  was  attended  to  t>efore 
I  arrived.  Senator  Byrd.  I  will  certainly  do  so 
In  the  future  as  the  need  arises. 

Senator  Byiu).  Senator  S&xt>e.  as  far  as  you 
are  concerned,  would  any  requests  from  Mr 
Jaworski  have  the  highest  priority? 
Senator  Saxbz.  Yes. 

Senator  Btro.  Designations  and  Responsi- 
bilities. "Personnel  acting  as  staff  and  as- 
sistants of  the  Special  Prosecutor  will  be 
known  as  the  Watergate  Special  Prosecuting 
Force  and  shall  be  responsible  only  to  the 
Special  Prosecutor.  ' 

Does  that  meet  with  your  concurrence.  Mr 

Saxtie.  that  the  personnel  acting  as  the  staff 

and  assistants  to  the  Special  Prosecutor  shall 

be  responsible  only  to  the  Special  Prosecutor? 

Senator  Saxbs.  I  agree. 

Senator  Btro.  Responsibilities  of  the  As- 
sistant Attorney  Oeneral.  Criminal  Division: 
"Except  for  the  specific  investigative  and 
prosecutorial  duties  assigned  to  the  Special 
Prosecutor,  the  Assistant  Attorney  General  in 
charge  of  the  Criminal  Division  will  continue 
to  exercise  all  the  duties  currently  assigned 
to  him." 

Does  that  paragraph  give  you  any  problem. 
Mr    Jaworski? 

Mr  jAwoasKi.  No  problem,  sir. 
Senator  Btro.  Public  reports.  "The  Special 
Prosecutor  may.  from  time  to  time,  make 
public  such  statements  or  reports  as  he  deems 
appropriate  and  shall  upon  the  completion 
of  his  assignments  submit  a  final  report  to 
the  appropriate  persons  or  entitles  of  the 
Congress  " 

Mr.  Jaworski.  Do  you  feel  uninhibited,  as 
a  matter  of  fact,  do  you  feel  It  Is  a  duty  of 
yours,  from  time  to  time,  to  make  public 
such  statements  or  reports  as  you  deem  ap- 
propriate? 

Mr.  Jaworski.  I  do. 

I  might  say.  Chairman  Eastland  asked  for 
a  report  which  I  was  In  the  process  of  draft- 
ing. Then  there  were  some  occurrences  that 
changed  what  I  would  have  reported  because 
of  some  additional  developments.  I  think  the 
letter  Is  going  out,  but  I  *rlll  report  from 
time  to  time,  and  of  course,  answer  any  In- 
quiries that  this  Committee  or  any  other  ap- 
proQrlate  Congressional  Conimlttee  may 
have 

Senator  Btro.  Would  you  have  any  reluc- 
tance from  time  to  time  to  make  public  such 


statements  or  reports  as  you  yourself  deem 
appropriate? 

Mr  Jaworski  I  certainly  will  not.  You 
would  be  the  first  to  recognize  that  there  are 
many  things  about  which  I  cannot  talk,  and 
have  been  refraining  from. 

Senator  Btrd    But  would  you.  In  terms  of 
the  phraseology  of  thU  paragraph,  from  time 
to  time  make  public  such  statements  or  re- 
ports as  you  deem  appropriate? 
Mr    Jaworski.  I  would,  sir 
Senator  Btrd  Would  you  be  Inclined  to  In- 
terfere In  any  way,  Mr   Saxbe,  with  the  Spe- 
cial Prosecutor  in  this  regard? 
Serator  Saxbs.  I  would  not 
Senator    Btro.    Duration    of    assignment. 
"The  Special  Prosecutor  will  carry  out  these 
responsibilities  to  the  fullest  support  of  the 
Denartment  of  Justice  until  such  time  as  he 
feels  he  has  completed  them  or  a  time  mu- 
tually agreed  upon  by  the  Attorney  Oeneral 
and  himself." 

Mr.  Jaworski.  is  It  your  Intention  to  carry 
out  these  responsibilities  with  the  fullest 
support  of  the  Department  of  Justice  until 
such  time  as  In  your  Judgment  you  have 
completed  them? 

Mr.  Jaworski.  It  Is.  sir 

Senator    Btro     Mr     Saxbe.    will    the    De- 
partment of  Justice  under  your  leadership 
supply  Mr   Jaworski  with  the  fullest  support 
mentioned  In  this  paragraph? 
Senator  Saxbx.  Yes. 

Senator  Btro     Mr  Chairman,  I  ask  unani- 
mous consent  to  insert  In  the  record— I  have 
already  read  It  Into  the  record— or  keep  in 
the  Committee  files  the  letter  to  Mr  Jaworski 
from  Mr    Bork.  dated  November  21.   1973. 
The  Chairman   Is  It  already  In  the  record? 
Senator  Btrd    To  my  knowledge  It  Is  not 
The   Chairman    It   will    be  admitted   Into 
the  record. 

Senator  Btro.  Civil  Action  19»4-73.  United 
States  District  Court  for  the  District  of  Co- 
lumbia. Ralph  Nader.  Senator  Fr*nk  E  Moss. 
Representative  Bella  Abzug  and  RepresenU- 
tlve  Jerome  R.  Waldle.  Defendant  and  Plain- 
tiffs versus  Robert  J.  Bork.  the  Acting  At- 
torney OeneraJ  of  the  United  States  Judge 
Caasell  rendered  a  decision  declaring  on  the 
power  of  the  court  that  Archibald  Cox.  ap- 
pointed Watergate  Special  Prosecutor  pur- 
suant to  28  CFR  0  37.  1973,  was  Illegally  dis- 
charged from  that  office. 

How  do  you  view  that  decision,  Mr  Saxbe' 
Senator  Saxbx.  I  think  that  the  decision  of 
the  court  was  in  error. 
Senator  Btrd.  You  think  It  was  In  error? 
Senator  Saxbc    Yes. 
Senator  Btrd   On  what  basU? 
Senator  Saxbc  The  powers  and  the  authori- 
ties of  the  original  charter  did  not  have  any 
provision  which  prevented  the  Attorney  Oen- 
eral from  discharging  the  Special  Counsel.  I 
understand    there    were    various   agreements 
that  such  would  not  happen,  but  I  think  that 
the  existence  of  the  amended  charter  Is  evi- 
dence that  there  was  wanting  such  protec- 
tion In  the  original  charter,  and  this  case  will 
be  appealed  and  we  will  have  to  await  the 
outcome  of  it. 

Senator  Btro.  The  court  said,  I  quote,  "the 
firing  of  Archibald  Cox  In  the  absence  of  a 
finding  of  extraordinary  impropriety  was  In 
clear  violation  of  existing  Justice  Depart- 
ment regulation  having  the  force  of  a  law  and 
was  therefore  Illegal." 

Do  you  feel  that  there  was  a  finding  of 
extraordinary  impropriety  on  the  part  of  Mr. 
Coxs  actions  which  would  Justify  the  firing? 
Senator  Saxbx.  Obviously  there  was.  wheth- 
er It  Is  In  the  record  or  not  I  do  not  know. 

Senator  Btro.  You  have  no  facts  to  back 
that  statement  up.  that  there  was  extraor- 
dinary impropriety? 
Senator  Saxbx.  No.  sir. 
Senator  Btxo.  You  have  no  facts. 
Is  It  merely  an  opinion  of  yours  that  Mr. 
Cox   was   guilty   of   some   extraordinary    Im- 
propriety? 

Senator  Saxbx.  I  think  you  can  only  go  on 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


the  strength  of  the  fact  that  the  Attorney 
Oeneral  or  Acting  Attorney  Oeneral  had  the 
authority  on  his  own  determination  to  fire 
Mr.  Cox.  I  think  he  acted  on  his  own  deter- 
mination. 

Senator  Btrd.  Was  he  not  precluded,  how- 
ever, from  firing  Mr.  Cox  except  for  an  "ex- 
traordinary Impropriety?" 

Senator  Saxbc.  I  think  that  was  In  the 
charter.  He  had  to  find  an  Impropriety,  and 

I  think  he  did  But 

Senator  Btrd.  The  Attorney  Oeneral  did 
not  find  that  Impropriety.  The  Attorney  Oen- 
eral resigned  His  assistant  resigned  Mr.  Bork 
did  not  find  the  extraordinary  Impropriety. 
He  only  carried  out  the  order  of  the  Presi- 
dent. 

How  do  you  arrive  at  the  conclusion  that 
the  Attorney  General  found  an  extraordi- 
nary Impropriety? 

Senator  Saxbc  You  have  to  base  It  on  the 
fact  that  he  did  proceed  to  fire  him.  and 
that  he  had  the  power  to  do  It. 

Senator  Btro  But  only  at  the  order  of  the 
President 

Senator  Saxbc  We  are  talking  about  what 
la  at  Issue  In  the  case  and  what  Is  going  to 
be  argued  In  the  Court  of  Appeals  and  prob- 
ably the  Supreme  Court. 

Senator  Btrd.  The  general  Impression  Is — 
I  think  I  can  give  the  public  perception 
pretty  accurately— that  Mr.  Cox  was  fired  be- 
cause he  refused  to  agree  that  he  would  not 
continue  to  pursue,  through  the  Judicial 
process,  the  securing  of  evidence  that  was 
under  the  control  of  the  White  House. 

Before  this  Committee,  both  Mr.  Cox  and 
Attorney  Oeneral  Richardson  had  stated 
under  oath  that  such  evidence  would  be  pur- 
sued through  the  Judicial  process  Mr  Cox 
was  carrying  out  his  responslbUlty  as  he 
had  sworn  to  carry  It  out. 

Would  you  consider  this  to  be  an  ex- 
traordinary Impropriety? 

Senator  Saxbe  Whether  I  consider  It  that 
or  not  Is  not  the  Issue.  It  Is  whether  Mr. 
Bork  considered  It.  That  Is  the  whole  Issue 
of  the  case 

Senator  Btrd.  But  there  Is  no  Indication 
that  Mr.  Bork  considered  It  such,  or  that  the 
firing  was  done  according  to  his  wishes.  The 
Indication  was.  In  the  public  press,  that  he 
did  not  want  to  do  this  and  that  he  had 
considered  not  doing  It  He  only  carried  out 
the  wUl  of  the  President,  as  expressed  In  the 
Preside  nfs  order  to  fire 

Senator  Saxbc  I  have  not  read  the  brief  In 
the  case.  I  can  only  reassert  that  from  the 
action  of  Mr.  Bork.  he  based  It  on  the  pow- 
ers  which   he   believed  he  had. 

Senator  Btrd  Let  us  come  to  this  question. 
Suppose  the  President  orders  you  to  fire 
Mr.  Jaworski  because  Mr.  Jaworski  pursues, 
through  the  Judicial  process,  the  securing  of 
evidence  which  Is  in  the  control  of  the  White 
House? 

Do  you  Intend  to  carry  out  such  an  order 
from  the  President? 

Senator  Saxbc  I  would  not  attempt  to  fire 
Mr.  Jaworski  nor  would  I  resign. 

Senator  Btrd  Suppose  you  were  told  to 
either  fire  Mr  Jaworski  or  you  were  going  to 
get  fired,   what   would   your  answer  be? 

Senator  Saxbe  The  President  has  the  right 
to  fire  me  any  time  he  wants  to  for  any  rea- 
son. That  is  based  In  the  Stanton  case. 

Senator  Btrd  You  are  stating  before  this 
Committee,  under  oath,  that  you  would  not 
fire  Mr.  Jaworski  on  the  orders  of  the  Presi- 
dent, such  orders  being  based  solely  on  the 
actions  by  Mr.  Jaworski  to  pursue  through 
the  Judicial  process  the  securing  of  evidence 
from  the  White  House? 

Senator  Saxbx.  Not  only  that,  but  I  am 
bound  by  the  consensus  agreement  in  addi- 
tion to  that 

Senator  Btrd  Suppose  the  consensus  of  the 
various  parties  mentioned  In  the  guidelines 
was  to  the  effect  that  the  Special  Prose- 
cutor should  be  removed  from  his  duties,  but 
In  your  own     Judgment  he  was  not  guilty 


42749 


of  any  extraordinary  Improprieties,  and  that 
he  was  doing  only  what  he  said  before  this 
Committee  that  he  would  do,  and  he  was 
trying,  through  the  Judicial  process,  to  get 
evidence— that  evidence,  In  the  hypothetical 
case,  being  in  the  possession  of  someone  at 
the  White  House. 

Would  you  fire  him? 

Senator  Saxbx.  You  are  going  on  the  as- 
sumption that  six  of  the  eight  would  volun- 
teer their  advice  to  me.  It  says  that  you 
have  to  seek  It  Obviously,  if  I  do  not  think 
he  should  be  fired  I  would  not  seek  It.  If 
they  volunteer  that  he  should  be  fired  I 
would  not  pay  any  attention  to  them. 

Senator  Btrd.  There  Is  a  coordinating  con- 
Junction  here,  the  word  "and".  He  will  not 
be  removed  from  his  duties  "except  for  ex- 
traordinary Improprieties  on  his  part  and 
without  the  President  first  consulting  the 
majority  and  the  minority  leaders  and  the 
Chairman  and  ranking  minority  members  of 
the  Judiciary  Committees  of  the  House  and 
Senate  and  has  obtained  that  their  consensus 
Is  In  accord  with  this  action." 

Suppose  the  President  consults  the  ma- 
jority and  minority  leaders  and  chairmen  and 
ranking  minority  members  of  the  Judiciary 
Committees  of  the  Senate  and  the  House  of 
Representatives,  and  ascertains  that  their 
consensus  Is  in  accord  with  his  proposed 
action,  but  it  has  not  been  shown  convinc- 
ingly to  you  that  the  Special  Prosecutor  is 
guUty  of  extraordinary  Improprieties  on  his 
part? 

It  seems  to  me  you  cannot  do  It  with  one 
You  have  to  do  it  with  both  of  the  requlre- 
menUset  forth. 

Senator  Saxbe.  As  a  practicing  attorney  I 
always  ask  my  witnesses  not  to  answer 
hypothetical  questions. 

Senator  Btrd.  But  your  witness  was  not 
nominated  to  be  Attorney  Oeneral. 

Senator  Saxbc.  Yes.  But  you  have  to  make 
an  assumption  that  the  President  came  to 
me  and  said,  I  want  to  fire  this  man.  You  take 
It  to  the  eight  delegated  people.  Now.  if  I  felt 
at  that  time  that  he  should  not  be  fired  I 
would  so  express  it,  and  I  would  probably 
have  been  fired  before  he  ever  got  to  Con- 
gress. 

Senator  Btrd.  The  guideline  does  not  say 
that  the  President  will  ask  you  to  go  to  these 
people. 

Senator  Saxbc,  I  understand  that 

Senator  Btrd.  The  guidelines  state  "with- 
out the  President  first  consulting  the  mi- 
nority and  majority." 

Why  should  he  not  be  required  to  con- 
sult them? 

These  are  the  guidelines  that  have  been 
written. 

Senator  Saxbe.  Because  thU  was  the  way  it 
was  written.  ' 

Senator  Btrd.  They  were  not  written  at 
your  behest.  They  have  been  written  with 
the  support  and  acquiescence  of  the  Admin- 
istration. They  establish  a  responslbUlty  on 
the  part  of  the  President  to  consult  these 
people  himself. 

Senator  Saxbe,  Yes. 

Senator  Btrd.  Why  would  you  not  say  Mr 
President,  according  to  the  guidelines  it  Is 
up  to  you  to  consult  the  committee? 

Senator  Saxbc.  Well,  as  I  say,  I  doubt  If  I 
would  even  be  there  at  that  time  If  I  felt 
strongly  that  he  was  getting  a  bad  deal 

Senator  Btrd.  Why  would  you  not  be  there' 

Senator  Saxbc.  He  would  fire  me,  which  he 
has  the  authority  to  do  for  no  reason  at  all 
I  do  not  have  any  of  the  protections  that  Mr 
Jaworski  has. 

Senator  Btrd.  Supposing  he  did  not  fire 
you. 

Senator  Saxbc.  Sir? 

Senator  Btrd.  Suppose  he  did  not  fire  you' 

Senator  Saxbc.  I  would  express  my  at- 
titude that  he  should  not  be  fired 

Senator  Btrd  The  President  did  not  fire 
Richardson.  Richardson   resigned. 


Senator  Saxbx.  1  have  no  intention  of  re- 
signing. 

Senator  Btrd.  That  may  be  the  very  thing 
the  White  House  would  like  most,  for  you  to 
stay  on  the  Job.  but  to  see  that  you  carry  out 
the  President's  orders  to  fire  Jaworski. 
Senator  Saxbe.   That   Is   your  supposition. 
Senator  Btrd    That   Is  not  a  supposition. 
Senator  Saxbe.  I  have  no  answer  to  that. 
Senator    Btro.    Would    you    resign    rather 
than  carry  out  an   order  that  you  did   not 
believe  was  ethical  or  just  or  fair? 
Senator  Saxbe  Was  not  ethical.  Just  or  fair? 
Senator  Btrd.  Yes. 

Senator  Saxbe  No,  I  do  not  think  that  I 
should  take  this  Job  with  the  Idea  that  I 
am  going  to  flounce  out  of  there  the  first 
time  that  things  do  not  go  the  way  I  think 
they  should  go.  or  somebody  wants  me  to 
leave.  The  President  has  the  authority  to 
fire  me  at  any  time. 

Senator  Btro.  There  Is  no  question  about 
that. 

Senator  Saxbe.  Therefore,  If  things  go 
badly  I  would  expect  that  he  would  do  Just 

that.  But 

Senator  Btrd  You  have  not  answered  my 
question. 

Senator  Saxbe.  All  right. 
Senator    Btrd     Would    you    resign    rather 
than  carry  out  an  order  that,  In  your  Judg- 
ment, was  not  fair,  was  not  ethical,  and  was 
not  Just? 

Senator  Saxbc.  No,  but  I  would  not  carry 
out  the  order,  either. 

Senator  Btro.  You  would  make  the  Presi- 
dent fire  you? 
Senator  Saxbx.  Absolutely. 
Senator  Btrd.  Despite  all  the  protections 
given  to  the  Special  Prosecutor  by  the  guide- 
lines In  the  "Federal  Register",  is  It  not 
true  that  all  of  these  could  be  swept  away 
by  a  revocation  of  the  order  In  the  "Register", 
or  by  amendments  to  the  order  defeating  the 
purpose  of  the  original  guidelines,  Mr. 
Jaworski? 

Mr.  Jaworski.  I  had  not  thought  of  It  In 
those  terms.  I  assume  If  somebody  wanted 
to  do  so  he  could  He  would  have  to  go  fur- 
ther. He  would  also  have  to  violate  an  under- 
standing and  an  agreement  that  I  had.  But 
I  assume  It  could  be  done. 

Senator  Btrd.  How  do  you  feel  about  th»t. 
Mr  Saxbe? 

Senator  Saxbe  If  they  removed  everything 
In  there.  I  would  stand  by  my  word  of  what 
I  have  said  here  today. 

Senator  Btrd  Who  would  have  to  revoke 
or  amend  the  order? 

Would  the  Attorney  Oeneral  have  to  do 
that,  or  could  someone  else  revoke  or  amend 
these  guidelines? 

Senator  Saxbx  I  do  not  believe  that  any- 
one but  the  Attorney  Oeneral  could  do  It. 

Senator   Btrd.    In    your    Judgment,    could 
anybody  else  do  It,  Mr.  Jaworski? 
Mr.  Jaworski.  No,  sir. 

Senator  Btrd.  If  the  President  or  one  of 
his  top  aides  asked  you  to  revoke  the  guide- 
lines, what  would  you  do.  Mr.  Saxbe? 

Senator  Saxbe.  I  would  say  I  was  bound  by 
my  word  not  to. 

Senator  Btrd.  If  the  President  or  one  of  his 
top  aides  asked  you  to  amend  the  guidelines, 
what  would  you  do? 

Senator  Saxbe  The  only  wny  I  would 
amend  the  guidelines  Is  by  agreement  with 
Mr.  Jaworski  and  by  consultation  with  the 
Committee  that  put  them  together. 

Senator  Btrd  Mr  Jaworski.  have  you  ever 
been  asked  to  promise  to  resign  If  you  feel 
that  the  executive  branch  is  attempting  to 
manipulate  the  Special  Prosecutor  for  the 
protection  of  Individuals  In  the  execuUv« 
branch? 

Would  you  resign  if  you  thought  that  the 
executive  branch  was  attempting  to  manipu- 
late you  or  to  clrcvmivent  or  restrict  or  limit 
your  Jurisdiction  for  the  protection  of  in- 
dividuals la  the  executive  branch? 
Mr.  Jaworski.  Senator  Byrd,  if  that  /^^nt^ 


42750 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  1973 


to  pau  I  would  first  come  to  the  Congres- 
sional Committee  and  state  my  views  to 
'Sbem.  IT  I  felt  that  I  was  acting  within  my 
Authority  and  that  it  was  really  my  respon- 
sibility to  go  forward,  and  I  felt  strongly 
about  It  and  the  Congressional  Committee 
would  not  back  me  up.  I  would  resign. 

Senator  Btro.  What  Congressional  Com- 
mittee"' 

Mr  Jawobski  I  had  In  mind  the  Com- 
mittee that  was  set  up  for  the  purpose  of 
taking  my  grievances  in  the  event  an  lmpas8« 
Is  reached  between  the  President  and  me. 

Senator  Btkd.  Would  you  also  Include  the 
Judiciary    Committees  of   both   houses? 

If  not.  why  not? 

Mr.  Jawosski.  I  think  that  Is  a  good  ques- 
tion. Senator. 

Senator  Btrd.  Would  that  not  give  you 
seme  additional  comfort,  reassurance,  and 
backing'' 

Mr.  Jaworski  It  would  give  me  a  lot  of 
comiort.  It  certainly  would.  If  I  came  before 
this  Committee  and  told  them  what  the 
problem  was  and  the  Committee  felt  I  was 
right.  Of  course,  it  would  answer  the  prob- 
lem. I  would  Just  stand  by  without  resigning 

Senator  Btw).  Does  this  Committee  have 
your  assurance  that  you  will  do  that  In  the 
event  such  a  contingency  arises? 

Mr.  Jawobski.  I  am  prepared  to  assure  you 
that  I  will.  Very  frankly.  I  have  not  gone 
into  this  before,  except  perhaps  by  Inference, 
but  I  would  have  no  hesitation  to  come  and 
lay  the  matter  before  this  Committee  as  well 

Senator  Btrd.  Earlier  today.  Mr.  Saxt)e.  you 
stated  "I  do  not  contemplate  having  much 
contact  with  Mr.  Jaworski   " 

Mr.  Richardson  started  out  In  a  similar 
manner  In  the  case  of  Mr  Cox.  Mr.  Richard- 
son found  later  that  he  was  by  necessity  be- 
ing put  into  a  position  of  either  refusing  to 
carry  messages  to  Mr.  Cox  or.  on  the  other 
band,  to  carry  those  messages  to  Mr,  Cox. 
or  to  field  them  himself  and  insulate  Mr.  Cox 
from  those  pressures. 

I  think  one  may  assume  that  you  also  may 
be  confronted  with  a  similar  situation,  so 
that  It  would  be  very  difficult  for  you  to 
not  have  much  contact  with  Mr.  Jaworski. 
I  am  sure  that  is  your  full  and  clear  Inten- 
tion today.  Just  as  it  was  with  Mr.  Richard- 
son. 

If  you  serve  merely  as  a  conduit  to  Mr 
Jaworski.  and  each  time  someone  at  the 
White  House  calls  and  says,  this  fellow  is 
going  too  far.  he  does  not  have  the  authority 
to  do  this,  or  he  is  exceeding  his  Jurisdic- 
tion. Why  do  you  not  talk  to  him?  What 
can  you  do  about  it.  et  cetera?  The  first 
thing  you  know,  you  may  find  yourself  being 
a  constant  conduit  to  Mr.  Jaworski.  and  he 
In  turn  wUl  find  himself  being  subjected  to 
the  water  treatment  drop  by  drop,  drop  by 
drop,  until  the  constant  pressure  becomes 
unbearable. 

U  that  develops,  how  do  you  see  your 
FKJsltlon? 

Are  you  going  to  be  a  mere  conduit,  so  the 
pressures  wUl  not  build  up  on  you.  but  will 
Instead  be  transferred  through  you  to  Mr. 
Jaworski? 

Or  are  you  going  to  attempt  to  protect 
him  and  Insulate  him  from  undue  pressures 
from  the  White  House,  thus  creating  pres- 
sures on  yourself? 

Senator  Saxxs.  I  would  resist  any  Inclina- 
tion to  do  this,  and  I  am  a  pretty  good  re- 
sistor. 

Senator  Bt»d.  That  is  not  clear  enough. 
You  say  you  would  resist  any  Inclination 
to  do  this. 

What  do  you  mean? 
Senator  Saxbx  By  being  a  conduit. 
Senator  Btkd    Tou  would  attempt  to  In- 
sulate Mr.  Jaworski  as  best  you  could  from 
undue  pressures  from  the  White  House? 

Senator  Saxb«.  That  is  what  I  consider  to 
be  part  of  my  obligation  with  the  charter 

Senator  Btbd  What  would  you  do  about 
•uch  de  facto  pressure  on  Mr.  Jaworski.  Mr. 
Saxbe.  other  than  reelst  It? 


What  do  you  mean  by  resisting? 

Would  you  tell  those  people  down  there  to 
go  to  Sheol?  Or  would  you  say,  "I  do  not 
think  he  is  exceeding  his  authority,  and  un- 
less you  prove  to  me  that  he  is  exceeding 
his  authority.  I  am  not  going  to  interfere?" 

Senator  Saxbk.  The  President  in  his  discus- 
sion with  me  and  the  others  that  I  talked  to 
down  there  made  no  reservation  as  to  his 
authority  and  his  power  to  proceed,  and  I 
am  going  in  with  that  understanding.  There- 
fore. I  would  not  hesitate  for  a  minute  to  say. 
this  Is  something  that  I  am  not  going  to  talk 
to  him  about.  This  Is  within  his  area. 

Frankly.  I  do  not  think  that  It  Is  going  to 
occur. 

Senator  Btrd.  Mr.  Saxbe.  I  have  served  un- 
der five  presidents.  I  find  it  to  be  exceedingly 
excruciating  to  say  "No"  to  a  president,  whe- 
ther he  Is  of  ones  own  party  or  not.  It  is 
extremely  dUHctilt  to  say  "No,"  especially  to 
a  president  of  your  own  party.  I  have  had  to 
do  It,  and  I  have  done  it.  I  think  that  you 
have  the  Intestinal  fortitude  to  do  tt,  like- 
wise 

Can  you  assure  this  Committee  that  you 
would  not  hesitate  to  say  "No"  to  the  Presi- 
dent if  he  attempts  to  change  the  rules  and 
signals  and  guidelines  from  what  they  were 
when  you  took  the  Job? 

Senator  Saxbs.  I  certainly  have  no  reserva- 
tion in  making  that  statement.  Again.  I  do 
not  think  that  it  Is  going  to  arise  I  do  not 
think  that  the  President  would  have  nomi- 
nated me  to  be  Attorney  General  If  he 
thought  that  I  was  going  to  be  a  conduit,  or 
he  thought  that  I  was  going  to  be  a  person 
to  be  a  go-l3etween  between  the  Special  Pros- 
ecutor. 

Seiiator  Btrd  I  would  assume  that  he  had 
the  same  confidence  in  Elliot  Richardson 
He  nominated  Mr.  Richardson.  I  am  sxire  that 
Mr  Richardson  did  not  contemplate  that 
that  would  arise  which  did  arise.  We  do 
have  to  contemplate  that  it  may  artse  again, 
certainly  In  the  light  of  past  experience  that 
should  be  a  lamp  unto  our  feet.  We  have  to 
ask  questions  today  because  we  have  to  an- 
ticipate that  they  may  again  occur.  It  Is 
the  duty  of  this  Committee,  as  best  it  can. 
to  get  your  responses  to  what  we  hope  will 
remain  hypothetical  questions,  and  will  never 
become  actualities. 

Mr.  Jaworski.  are  you  satisfied"' 

I  realize  that  this  Is  uncomfortable  for  you. 
It  Is  uncomfortable  for  Mr.  Saxbe  It  is  un- 
comfortable for  me  It  Is  difficult.  I  know, 
for  you  to  Indicate  that  you  are  not  complete- 
ly satisfied  with  the  answers  that  Mr  Saxbe 
has  given  You  will  have  no  better  forum, 
however,  in  which  to  do  that,  and  you  may 
never  again   have  such   a  forum. 

Are  you  satisfied  with  the  responses  of  Mr, 

Saxbe  to  my  questions  with   regard  to  the 

authorities  that  you  will  have  In  carrying  out 

your   responsibilities   as   manifested    in    the 

'Sidelines"' 

Mr,  Jaworski  Yes.  I  think  they  have  been 
given  clearly  In  spelling  out  situations  that 
could  arise  I  wish  I  were  prepared  to  tell 
you  about  some  of  the  authority  I  have  exer- 
cised In  recent  weeks.  That  I  cannot  talk 
about.  I  can  say  to  you  that  If  I  felt  that  I 
were  in  any  danger,  any  Jeopardy  with  re- 
gard to  exercising  Independence.  I  think  per- 
haps I  might  have  faced  that  situation  of 
Jeopardy  In  some  of  the  things  that  I  have 
done  recently 

Senator  Btrd  So  far,  Mr  Jaworski.  you 
have  acted  as  a  man  who  wears  no  man's  col- 
lar Irut  his  own — you  apparently  are  not  a 
ye*  man  for  any  President.  I  think  that  it  has 
been  extremely  Important — In  view  of  the 
fact  that  It  has  been  the  Judgment  of  the 
leadership  of  the  Senate  to  hold  in  atieyance 
at  least  for  the  time  being,  to  defer  any  ac- 
tion on  legislation  to  Invest  the  authority 
for  the  appointment  of  the  Special  Prose- 
cutor In  the  court — that  these  queetlons  be 
asked. 

I  think  It  Is  more  than  ever  Incumb.-nt 
upon  this  Committee  to  get  as   ironclad  a 


oomixUtment  as  we  possibly  can  from  Mr. 
Saxbe  to  back  you  up,  and  to  get  from  you 
also,  as  the  SpeclaJ  Prosecutor,  an  Ironclad 
commitment  to  continue  to  pursue  your 
responsibility  without  fear  or  favor,  to  go  to 
the  courts  If  necessary  to  resolve  any  ques- 
tion of  executive  privilege,  and  to  secure 
through  the  courts  If  necessary  any  evidence 
that  Is  under  the  Jurisdiction  and  control  of 
the  White  House,  or  anyone  In  the  White 
House,  or  elsewhere  for  that  matter. 

Does  the  Committee  have  that  commitment 
from  you? 

Mr.  Jaworski.  It  does. 

Senator  Btro.  Does  the  Committee  have 
that  commitment  from  you.  Mr.  Saxbe? 

Senator  Saxbx  Tes.  I  have  no  reservation. 
I  think  Mr.  Jaworski  is  not  only  a  competent 
and  a  thoroughly  decent  man.  I  will  fight 
for  his  right  to  proceed  as  he  sees  fit. 

Senator  Btrd.  Mr.  Zlegler  In  the  press  has 
recently  denounced  the  Special  Prosecutor  "s 
force. 

Is  It  your  Intention.  Mr.  Saxbe,  not  ro  be 
swayed  by  denouncements  of  the  Special 
Prosecutors  force.  If  they  should  occur  In 
the  future,  through  announcements  from  the 
White  House  In  the  person  of  Mr.  Zlegler  or 
Warren  or  anybody  else? 

Senator  Saxbx.  Mr.  Zlegler  has  a  right  to 
complain  about  any  personnel  in  the  govern- 
ment, and  I  cannot  deny  him  that  right.  Cer- 
tainly we  will  keep  our  own  counsel. 

Senator  Byrd.  Mr.  Jaworski,  is  it  your  In- 
tention to  retain  the  Special  Prosecutors 
force  Intact  as  you  Inherited  It  unless  an  In- 
dividual on  that  force  gives  clear  cause  for 
dismissal,  and  that  such  clear  cause  would 
not  include  the  conscientious  pursuit  of  his 
duty? 

Mr.  Jaworski.  I  certainly  intend  to  follow 
that  course 

I  might  say  that  I  defended  one  of  the  men 
who  has  been  serving,  and  I  think  serving 
capably,  against  an  attack  that  you  mak«> 
reference  to.  I  did  It  In  no  uncertain  terms. 

If  misconduct  at  any  time  should  be  sub- 
ject to  criticism,  I  would  be  the  first  to  accept 
it.  I  do  not  believe  that  criticism  Is  Justi- 
fiable at  this  time,  and  I  went  on  record  as 
saying  so. 

Senator  Btro.  There  are  some  people  who 
feel  that,  after  the  first  of  the  year,  the  ardor 
for  enactment  of  legislation  to  provide  a 
Special  Proeecutor  by  the  court  would  cool 
amid  the  lowering  temperaturea  of  January, 
and  that  we  may  begin  to  see  members  of 
the  Special  Prosecutor's  force  making  reser- 
vations to  leave  town  on  whatever  airlines 
may  then  remain  available. 

Can  you  assure  those  of  us  who  want  to 
see  the  Special  Prosecutor"8  force  stay  on 
the  Job  as  long  as  It  U  dedicated  to  its 
duties,  and  as  long  as  It  Is  doing  a  good  Job, 
that  you  will  stand  behind  these  men  as 
long  as  you  think  they  are  doing  their  duty, 
even  If  it  costs  you  your  own  Job? 

Mr.  Jaworski.  I  certainly  would.  I  will  go 
a  step  further  I  do  not  think  I  would  be 
worthy  of  the  time  that  you  have  sacrificed 
today  Ln  going  into  this  subject  as  you  have 
If  I  should  stoop  to  the  practice  of  staying 
with  somebody  for  a  certain  period  of  time, 
then  dropping  them  Just  because  I  might 
think  there  is  some  heat.  That  has  not  been 
my  life.  sir. 

Senator  Brao.  Mr.  Saxbe.  In  summary,  as  I 
think  1  have  interpreted  your  reeponsee  and 
your  statements  before  this  Committee,  you 
have  pledged  to  this  Committee  and  to  the 
American  people — who  are  the  final  arbiters, 
the  final  Judge,  and  the  ultimate  court — 
that  you  will  have  no  part  in  exerting  In- 
direct or  direct  pressure  on  the  Special  Proee- 
cutor. that  you  will  not  allow  a  narrowing 
of  his  Jurisdiction  or  authority,  that  you 
will  protect  his  Independence  and  Insulation 
from  pressures  from  the  executive  branch 
and  from  the  legislative  branch,  and  that 
you.  to  the  very  best  of  your  ability,  will 
make  public  ruch  attempts,  ratlier  than  see 
his  inrestigatlon  Impaired? 

Senator  Saibx    I  will  do  snythLng   within 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42751 


my  power  not  to  see  the  Investigation  im- 
paired. I  reserve  the  right  to  complain  If  I 
do  not  think  it  is  moving  fast  enough,  which 
I  do  not  anticipate. 

Senator  Btro.  I  think  that  completes  my 
queetlons.  I  apwloglze  to  the  Committee  and 
to  you.  Mr.  Saxbe.  and  to  you,  Mr.  Jaworski, 
and  to  those  In  the  hearing  room  for  what 
may  have  appeared  to  be  a  monotonous  and 
boring  repetition  of  a  long  litany  of  particu- 
lars set  forth  In  the  guidelines,  I  think,  how- 
ever, that  the  Committee  would  have  been 
remiss  If  it  had  not  done  this.  I  think  It 
would  have  been  remiss  not  to  have  called 
you  up  here,  Mr,  Jaworski,  In  the  presence 
of  Mr.  Saxbe.  I  think  this  ought  to  give  you 
extra  Insurance  and  some  additional  satis- 
faction, comfort,  security  and  assurance,  and 
a  feeling  that  there  are  people  on  the  Hill 
that  want  to  see  you  do  the  right  thing, 
and  that  these  people  are  in  both  parties,  and 
are  members  of  both  parties.  Thus  far,  you 
have  conducted  yourself  commendably.  be- 
yond what  many  of  us  ever  expected,  but  not 
beyond  what  ought  to  be  expected.  And  It  Is 
the  confidence  and  the  desire  of  this  Com- 
mittee that  you  will  continue  to  do  your 
duty  without  fear  or  favor,  I  felt  that  this 
would  help  to  strengthen  your  hand,  and,  at 
the  same  time.  I  thought  it  would  help  to 
strengthen  Mr.  Saxbe's  hand,  because  he  has 
a  record  here  to  stand  by  and  stand  upon 
and  to  live  up  to.  He  has  his  own  commitment 
here  In  writing  and  under  oath,  and  If  I 
were  In  his  stead.  I  think  I  would  feel  that 
this  was  a  strengthening  factor.  It  was  not 
done  with  any  Intention  of  putting  my  col- 
league on  the  spot — not  that  I  could  put  him 
on  the  spot.  It  has  not  been  done  with  the 
Intention  of  embarrassing  or  demeaning  him 
In  any  way.  It  Is  only  with  the  Intention 
that.  In  the  final  analysis,  it  will  strengthen 
the  hands  of  both  of  you,  and  that  there 
wUl  now  be  a  clearer  understanding  on  the 
part  of  both  as  to  what  this  Committee  ex- 
pects, and  that  a  public  understanding  will 
have  been  established  on  the  record  for  all 
to  read. 

Mr.  Saxbe,  as  a  member  of  this  Committee, 
unless  there  Is  something  that  yet  develope 
that  I  do  not  foresee  at  this  moment,  I  will 
vote  to  report  your  nomination  favorably  to 
the  Senate.  I  do  not  think  that  It  Is  Incum- 
bent upon  this  Committee  to  determine  a 
constitutional  question.  It  Is,  however.  In- 
cumbent upon  this  Committee  to  determine 
your  personal  and  professional  quaUflcatloos, 
and  where  you  stand,  as  far  as  I  am  con- 
cerned, on  the  Issues  that  I  have  attempted 
to  pinpoint  as  clearly  as  I  possibly  could. 
Your  answers  to  my  questions  have  been  98 
percent  reassuring.  That  Is  about  as  good  as 
most  people  can  make.  It  does  not  leave 
much  room  for  improvement,  and  I  will  say 
that  you  niade  ar,  A  plus  But  when  it  comes 
to  voting  o:.  the  flot)r  I  have  stated  a  consti- 
tutional principle  that  I  think  I  have  to 
stand  by,  I  wUl  not  vote  ajral^st  you  on  the 
floor.  I  do  not  think  I  amid  stat«  that  con- 
stitutional principle  as  I  did  on  the  floor  and 
then  reverse  myself  and  vote  for  you.  But  I 
will  vote  for  you  In  Committee,  and  I  will  do 
everything  I  can — barring  some  unforeseen 
developments  subsequent  to  this  moment — 
to  expedite  action  on  your  nomination  in  the 
Senate,  where,  on  the  confirmation.  I  will 
vote  ""present  "' 

Senaujr  Saibe,  I  thank  you. 

Mr,    Jawor-ski     I    thank   you   too,    sir. 

Senator  Btrd  Thank  you.  Mr.  Chairman. 

(Subsequently,  Senator  Byrd  submitted  the 
following  letter  for  the  Record:) 

DwrxMBTB   13.   1973. 
Hon.  'WiLi.tAM  B.  Saxbk, 
U.S.  Senate. 
Waahinffton,  D.C. 

Dkar  Bnx  ■  I  have  reflected  much  upon  rr.y 
statement  yesterday  during  the  hearing  that 
!  wTju:d  vote  "Present"  on  your  confirmation 
to  be  Attorr.ey  General,  and  I  think  I  would 
be    remiss    in   my    duty    not    to   vote   either 

CXrX 2692— Part  33 


"for"  or  "agaUiFt"  For  me  simply  to  vote 
"present"  wou'.d  be  the  ea.<:y  way  cut,  and. 
after  reviewing  my  position  last  evening 
and  again  this  morning,  I  feel  that  I  must 
vote  against  yoiu"  confirmation,  and  I  shall 
do  so  solely  on  what  I  conBider  to  be  valid 
constitutional  grounds  Havirig  strongly  op- 
posed the  pay  bill  a  few  days  a^  on  such 
grounds,  and  not  being  of  the  opinion  that 
Congress  has  the  power  to  remove  the  im- 
pediment (Art.  1,  Sec.  6,  Clause  2).  I  do  not 
see  how  I  can  conscientiously  take  any  other 
course. 

Having  said  this,  I  want  to  say  again  that 
I  do  not  believe  the  Judiciary  Committee 
shares  the  burden  of  being  guided  by  the 
Constitutional  disqualification  to  the  degree 
that  Is  carried  by  the  full  Senate  which,  un- 
der the  Constitution,  must  advise  and  con- 
sent. This  may  appear  to  be  specious  reason- 
ing on  my  part,  or  reasoning  for  the  sake  of 
convenience,  but  I  believe  It  is  sound  The 
Judiciary  Committee  meets  its  responsibility, 
I  think,  when  it  finds  you  to  be  profession- 
ally qualified  by  training  and  experience,  and 
personally  qualified  from  the  standpoint  of 
Integrity,  character,  and  moral  fitness.  I, 
therefore,  shall,  as  a  member  of  the  Com- 
mittee vote  to  favorably  report  your  nomina- 
tion to  the  Senate,  and.  as  part  of  the  lead- 
ership, I  shall  do  everything  I  can  to  ex- 
pedite final  Senate  action  on  yotu  confirma- 
tion. Although  I  shall  vote  "no"  on  the  con- 
firmation. 

I  shall  not  speak  against  confiirmatlon,  and. 
Just  as  I  did  not  ask  any  Senator  to  vote  with 
me  against  the  pay  bUl,  I  shall  not  seek  to 
Influence — not  that  I  could  do  so — any  Sen- 
ator to  vote  as  I  will  on  the  conflrmatlon. 

The  vote  on  your  confirmation  will  not 
only  be  overwhelming;  it  will  also  be  gratify- 
ing to  you.  As  for  my  own  vote,  I  am  truly 
sorry.  Yet,  It  should  be  a  source  of  well-de- 
served satisfaction  to  you.  Bill,  to  know  that 
my  vote  (and  the  handful  of  others.  If  there 
are  any)  will  be  on  the  basis  only  of  a  Con- 
stitutional viewpoint,  nothing  more— and, 
even  on  this  ground,  there  are  many  eminent 
Constitutional  authorities  who  would  say 
that  the  Impediment  has  effectively  been 
removed. 

I  say  again  that  your  answers  to  my  ques- 
tions at  the  hearing  were  as  satisfactory  as  I 
could  expect,  and  that  is  saying  more  than 
a  little.  My  questions  were  meant  to  be 
pointed,  and  necessarily  so,  and  I  think  your 
responses  to  my  questions  were  without 
equivocation.   For  this   I    congratulate    you. 

In  closing,  may  I  say  that  I  respect  and  like 
you  p>er8onally,  and  I  have  tremendous  ad- 
miration for  your  wife  '"Dolly",  I  hope  that 
both  you  and  she  will  be  happy  In  your  new 
asslgtunent. 

With  warmest  personal  regards.  I  remain, 
Resp>ectf  ully  yours. 

Robert  C.  Btrd, 

US.  Senator. 


COMPARISON  OF  NATO  AM) 
WARSAW  PACT 

Mr.  PROXMIRE,  Mr,  President,  with 
the  Mutual  Force  Reduction — MFR — 
talks  underway  as  well  a.s  the  del.bera- 
tlons  of  the  Commit;!*^  on  Security  and 
Coopei-atlon  in  Europe — C-SCE — It  b;  ap- 
propnatt'  to  dL<;cu.s.s  the  relative  strengths 
of  the  t-!>.'o  opposing  blocs  of  nations — 
NATO  and  the  Warsaw  Pact. 

Any  compan.'^n  of  these  two  forces 
must  be  along  a  variety  of  lines  not  onl^- 
military  but  political  For  example,  mill- 
tarj'  considerations  must  be  measured  in 
pan  by  the  economic  potential  of  each 
bloc.  Therefore  it  is  interesting  lo  note 
that  In  ternM  of  population  and  gross 
national  product,  two  Important  Indi- 
cators.   Western    European    alone    sur- 


passes the  Soviet  Union  and  they  nearly 
match  each  other  in  numbers  of  men 
under  arms. 

When  comparing  the  total  NATO  com- 
mitment. Including  the  United  States, 
to  the  total  Warsaw  Pact,  including  the 
U.S.S.R,,  the  figures  are  even  more  start- 
ling The  NATO  countries  have  a  com- 
bined population  of  542  million  to  352 
million  for  the  pact,  N,\TO  GNP  is  S2.207 
billion  compared  to  the  Warsaw  Pact 
total  of  .S753  bilhon.  The  NATO  countries 
have  5,6  million  men  in  their  armed 
forces  while  the  pact  has  4.4  million. 

Defense  spending  Is  much  more  dlfla- 
cult  to  assess  due  to  the  hidden  defense 
budgets  of  the  U.S.SJl.  and  aUles  but 
even  here  it  is  reasonably  clear  that 
NATO  holds  a  clear  dominance. 

Once  the  case  of  the  superiority  of 
Sonet  tank  forces  posed  a  serious  prob- 
lem for  defense  planners.  It  still  remains 
significant  but  the  more  pessimistic  con- 
clusions now  must  be  tempered  by  the 
results  of  the  most  recent  Middle  East 
war  which  showed  that  the  antitank 
weapon  can  be  verj'  effective.  .And  the 
NATO  allies  excel  in  this  department. 

Mr,  President,  in  view  of  the  many 
variables  involved  in  discussing  the  re- 
lationships between  NATO  and  the  War- 
saw Psict,  any  systematic  comparison 
sheds  new  light.  The  Center  for  Defense 
Information  has  just  concluded  an  ex- 
cellent study  of  this  type  and  I  ask  un- 
animous consent  that  it  be  printed  In 
the  Record. 

There  being  no  objection,  the  study 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 
U.S    PoBCEs   roB  Eubope:    NntD  roR   Phaskd 

Reduction  of  VS.  SmnufG  roB  tux  Dk- 

FTNSE    OP    EtTHOPE 


DETEVSB    MONTTOH   IN 

Spending  for  the  possibility  of  war  In  Bur- 
ope  Is  the  largest  item  in  the  ITnlted  States 
military  budget.  European  defense  rc«is  US, 
taxpayers  about  S30  billion  each  year 

The  United  States  should  begin  tc  plan 
now  for  a  gradual,  but  significant  reduction 
of  U.S.  military  feces  for  Europe  regard  lees 
of  the  course  of  the  current  talks  on  mutual 
force  reductions  (MPRi  la  V:eni.a.  The  MPR 
talks  are  unlikely  to  lead  to  any  but  small, 
unsatisfactory  cuts. 

The  phasing  down  of  U  «  forces  could  be 
scheduled  over  10  years,  negotiated  with  our 
allies,  with  a  20"  cut  spread  over  the  Srst 
three  years  Then  the  situation  could  t>e  r*- 
B^ssessed, 

As  of  1973,  Western  Europe  Is  capable  of 
military  self-sufficiency  vls-a-vis  the  SoV.et 
■Union  with  a  lower  level  of  C-S  support  and 
presence  In  Europe 

The  goal  of  a  phased  withdrawal  is  not 
an  abandonment  of  N.^TO  by  the  VS..  but 
a  return  to  the  concept  of  NATO  a-s  it  -a-aa 
originally  con.ceived  The  original  intent  was 
not  to  send  .American  troops  to  Europe  per- 
manently. The  Idea  was  to  allow  the  Euro- 
p>eans  time  to  build  up  their  rwn  rr.ilitary 
forces.  Once  that  was  accomplished,  VS. 
forces  in  Europe  were  to  be  phased  out 

The  annual  cost  to  the  United  Statee  of 
r>eacetlnje  preparations  for  eor.^ct  In  E-orope 
15  higher  than  the  cost  of  the  Vietnam  war 
at  lt.s  peak  when  500,000  VS  serrteemen 
were  fighting  Ir.  Southeast  Asia  The  yearly 
price  tag  on  r  S  armed  forces  for  war  In 
Europe  Ls  about  *30  bill  lor.  The  annual 
Incremer.tal  cost  of  the  war  In  Southeast  Asia 
at  its  high  point  was  $31.5  billion  in  flac*l 
year    l&69,i  In   view  of  leeeenlng   Eaet-'Weet 


Footnotes  at  end  of  article. 


42752 


tenalona  and  hitherto  unpar&lleled  EJuropean 
prosperity,  ta  It  not  time  for  the  United  States 
**>  <*••©  carrying  such  a  heavy  burden  for 
the  protection  of  Western  Europe? 

Providing  forcee  for  the  defenae  of  rurope 
agaiMt  posalble  invasion  by  the  Soviet  Union 
1*  the  moet  expensive  Item  In  the  Pentagon 
budget,  exceeding  ouUays  on  strategic  force*. 
The  total  defense  budget  can  be  roughly 
divided  between  75%  for  conventional  forces 
and  26%  for  strategic  forces.  Public  attention 
la  usually  directed  to  controversial  strategic 
mlasUes,  submarines,  and  aircraft,  but  It  Is 
the  »66  bUUon  spent  each  vear  on  main- 
taining a  capabUlty  to  fight  conventional 
wars  that  eats  up  the  buU  of  the  defense 
budget. 

"The  size  of  our  general  purpose  forces  Is 
determined   largely   by   our   NATO   commit- 
ment."  said    Roger   Kelly,    former   Assistant 
Secretary  of  Defense  for  Btonpower  and  Re- 
serve Affairs,  in   197a.«  The  Defense  Depart- 
ment has  acknowledged  that  the  level  and 
composition  of  U.S.  conventional  forces  are 
not  driven  by  the  need  to  defend  the  terri- 
tory  of    the   United    SUtes.    Because   of    its 
advantageous  geographic  position  and  power- 
ful strategic   forces,   the   U.S.   requires   only 
smaU    conventional    forces    to   defend    Itself 
i^alnst   foreign   threats.   Most   US.   conven- 
uonal   forces  are  purchased  to  defend   our 
allies.  The  size,  composition,  and  cost  of  US 
conventional  forces  are  established  primarily 
to  support  plans  for  war  In  Europe.  The  VS 
Army  Is  structured  and  equipped  for  fighting 
In  Europe,  and  V3.  Navy  ships  and  alrcruft 
are   also   being   developed   principally   for   a 
lengthy  conventional  wax  in  Europe. 
coscposmoN  or  coNvirrnoN^  roaces  roa 

rUaOPEAN    DKrZNSK 

U5.  conventional  forces  consist  of  land 
sea.  and  air  components.  There  are  13  active 
Army  combat  divisions,  3  Marine  CJorpe  divi- 
sions. 14  attack  aircraft  camera  around  which 
the  Navy  Is  structured,  and  73  Air  Force 
fighter  and  attack  squadrons  and  other  tac- 
UcAl  air  units.  To  augment  thu  activ*  force 
there  are  1  million  trained  Ready  Reeerve 
and  National  Guard  troops  Immediately 
available  for  callup 

The  numbers  of  the  U.S.  military  forces 
for  the  defense  of  Europe  are  inventoried  in 
Figure  1  Included  are  equipment  and  per- 
sonnel stationed  both  in  Europe  and  the 
United  States.  There  are  319.000  military 
personnel  in  Europe  and  related  areas,  4^ 
divisions  and  4  brigades,  and  preposltloned 
equipment  for  an  additional  2^  divisions 
located  In  the  US  but  designated  for  rapid 
ainift  to  Europe  In  case  of  conflict.  The  troops 
in  Europe  are  accompanied  by  235  000  de- 
pendents and  14.000  US.  civilian  employees 
There  are  139  principal  US.  mUttary  bases 
In  Europe  and  related   areas. 

The  US  has  more  than  7,000  tactical  nu- 
clear weapons  In  E\irope  and  more  than  2,000 
associated  delivery  systems  The  US.  main- 
tains Tao  combat  aircraft  (including  carrier 
aircraft)  In  Europe.  The  Sixth  Fleet,  perma- 
nently sUtloned  in  the  Mediterranean,  nor- 
maUy  has  45  ships  and  submartnes.  buUt 
around  two  attack  aircraft  carriers  Conven- 
tional forces  In  the  continental  United 
States.  prlmarUy  for  conflict  in  Europe,  In- 
clude almost  the  entire  Atlantic  Fleet  with 
four  attack  carriers,  one  Marine  Division,  at 
least  half  of  the  Army  Strategic  Reserve 
(4%  divisions).  Air  Force  tactical  air  and 
transport  units,  and  most  Reserve  and  Ou^ra 
^a\t»  with  modem  combat  equipment  Tota. 
TJ3.  forces  In  Biirope  or  earmarked  for  Eu- 
rope Include  18  divisions.  8  brigades,  2.900 
combat  aircraft,  and  2M  ships. 
rvLL  ooffrs  or  v*.  wato  roacca  otFncvrLT  to 

The  Defense  Department  produces  a  com- 
plicated array  of  figures  for  the  cost  at  VS. 
NATO  forces,  rangiiig  from  M  btuion  to  $17 

billion.  It  has  never,  however,  revealed  pub- 


CONGRESSIONAL  RECOKi;  — SiuNATE 


Footnotes  at  end  of  article 


Ucly  the  fuU  extent  of  NATO-designated 
forces.  Any  financial  estimates  must  of  nec- 
essity be  Inexact  because  of  the  complexlt'es 
involved  in  detailing  the  direct  and  indirect 
costs  In  DOD  accounting.  The  94  bllUon  fi- 
gure covers  only  the  direct  annual  operating 
costs  (prlmarUy  wages)  of  the  approximately 
300.000  troops  actually  baaed  In  Europe  The 
•  17  billion  figure  is  said  to  Include  the  year- 
ly expenses  of  US.  forces  located  in  Europe 
and  those  forces  in  the  VS.  committed  for 
quick  deployment  to  Europe  In  the  event  of 
war.  These  US.  rapld-retnforcement  forces 
are  only  part  of  the  total  VJB.  forces  that 
would  be  used  for  European  defense  The  De- 
fense Department  calculates  that  It  spends 
and  additional  W.S  bUllon  each  year  •  on  con- 
ventional forces  that  could  be  used  in  a 
NATO  conflict  If  necessary  but  which  are  also 
available  for  fighting  In  Third  World  coun- 
tries. 

Annual  V3.  Spending   for  European  De- 
fense. $30  billion  plus. 

•17  bUllon — direct  cost. 

•9.5  billion — auxiliary. 

•3  6  billion — other  (eg..  RAD). 
.J^J  calculations  of  the  financial  cost  to 
the  US.  to  defend  Europe  are  less  than  the 
actual  costs,  which  are  around  »30  billion  an- 
nuaUy  and  prot>ably  more.  A  number  of  addl- 
n^»  NATO-related    military   expenditures 
f,!^     ^  ^^^^  ^^  account.  For  example 
the  Europeans  enjoy  the  benefita  of  the  nu- 
cl«»r  umbreUa  provided  by  the  United  States 
without   contributing   to   the   costs   of   U  3 
strategic  forces   The  VS.  would  probably  re- 
tain most  of  Its  strategic  forces  in  the  ab- 
sence  of  a  commitment   to  the   defense   of 
Europe.  Mucto  of  the  Impetus  toward  the  de- 
velopment of  new  and  better  strategic  weap- 
ons, however,  that  could  be  used  in  limited 
or  "flexible  response"  nuclear  warfare  stems 
frona  the  desire  to  allay  Western  European 
doubts  about  the  credlbUlty  of  the  US  stra- 
tegic  guarantee.   Some   perhaps   unquantlfi- 
able  amount  of  US.  spending  on  strategic 
forees  can  be  attributed  to  the  costs  of  toe 
US.  defense  of  Europe  and  the  need  to  con- 
tlnuaUy    reassure    the    Europeans    that    we 
would  actually  use  nuclear  weapons  against 
the  Soviet  Union  In  case  of  Invasion  of  Wast- 
em  Europe.  »»«»► 

a*o  COSTS  NOT  Accorirntt)  fob  tn 

NATO-BXI.ATn>    KXPnTDrrtTEKS 

Additionally,  new  and  expensive  conven- 
tional weapons  systems  are  being  developed 
^'^"i'J  ^°'  ^^  ^  Europe.  A  major  portl^ 
of  the  ta  blUlon  spent  each  year  on  research 
and  development  by  the  Defense  Department 
must  be  added  to  the  costs  of  defending 
Europe.  Our  NATO  aUles  contribute  little  to- 
ward paying  for  new  US.  weapons  that  wUl 
be  used  prlmarUy  for  their  defense.  (The 
Jo   .t  US. -West  German  project  to  buUd  a 

?a^  °^''  **■*"•  **^^  ''"  abandoned  in 
1971.)  For  example,  the  •a  bUllon  F-lS  air- 
craft program  is  being  developed  to  defend 
US.  and  other  NATO  ground  troops  against 
Soviet  air  attack  in  Europe.  The  proposed 
•4  5  bUllon  SAM-D  surface-to-air  mlseUe  sys- 
tem Is  intended  prtnclpaUy  for  deployment 
in  Europe  SmaU  tactical  nuclear  weapons 
(  mlnl-nukes")  are  being  contemplated  for 
use  in  Europe  at  the  cost  of  bUlions.  The  new 
Navy  F-14  aircraft  program  wui  cost  more 
than  »5  bUllon  and  the  F-14  will  be  statlooed 
on  earners  prlmarUy  m  European  waters 
where  It  would  be  used  against  Soviet  forces. 
The  F-14.  at  a  cost  of  over  ^20  mlUlon  per 
plane,  is  too  cosUy  and  sophisticated  to  be 
developed  and  procured  for  use  against  lesser 
opponenu  in  other  areas  of  the  world.  The 
F-14  Is  being  buUt.  as  many  other  new  weap- 
ons, for  a  conventional  war  In  Europe 

The  Defense  Department  Includes  a  share 
of  the  cost  of  newly  procured  weapons  and 
equipment  In  lU  calculations  of  the  cost  of 
US.  NATO  forces.  But  DOD  does  not  reveal 
what  the  amount  is.  and  It  Is  doubtful  that 
DOD  takes  fully  Into  account  the  degree  to 
which  weapons  are  procured  for  NATO  pop- 


December  20,  197S 


poses.  The  Senate  Armed  Services  Commit- 
tee studied  this  matter  and  concluded: 

That  defense  of  NATO  is  uppermost  In  de- 
fense planning  U  clearly  Uluatrated  by  review 
of  JusttflcaUons  presented  to  support  pro- 
curement of  weapons  systems.  A  review  of 
selected  general  purpose  weapons  systems 
estimated  to  cost  •SO  bUllon  shows  that  •21- 
•25  bUllon  of  that  cost  can  be  Identified  wltii 
the  requirement  to  support  NATO  defense* 

Finally.  DOD's  •n  blUlon  figure  does  not 
Include  the  retirement  pay  for  US.  NATO 
forces,  nor  the  overhead  administrative  costs 
of  these  forces.  In  addlUon.  the  cost  of  maln- 
taming  the  229,000  U.S.  troops  In  Germany 
has  Increased  In  1973  after  dollar  devaluation 
and  revaluation  of  the  German  mark. 

FOB  THK  rUTUBB MOBS  KMPHASIS  ON  ABMS  FOR 

KtmOPKAlf   ODXNSS 

For  more  than  20  years,  the  United  States 
has  borne  the  major  burden  for  organlsLng 
and  supporting  the  mUltary  defense  of  West- 
ern Europe  against  possible  attack  by  the  So- 
viet Union.  Even  so.  Pentagon  planners  fore- 
see even  greater  emphasis  and  spending  on 
conventional  arms  and  European  defense  in 
the  future.   Lt    Gen.   George  Selgnlous.  Di- 
rector of  the  Joint  Chiefs  of  Staff.  sUtes  that 
"    .  .  the  evolution  of  the  US.  forces,  as  you 
wlU  see   In   the  coming  ye«u«.   wUl   be  more 
and   more   Identifiable   with   our   mission   In 
NATO."  Former  Secretary  of  Defense  KUlot 
Richardson  expressed  the  view  of  the  NU- 
on  Admmistraton:  "The  development  of  ap- 
proximate parity  between  the  US    and  the 
USSJl.  In  strategic  weapons  has  created  a 
situation  which,  in  our  view,  makes  It  more 
Important  than  ever  that  the  NATO  forces 
should  have  substanUal  conventional  capa- 
bUlty  '  •  From   the   Pentagon   point  of   view 
convenUonal  war  Is  thought  to  be  mace  like- 
ly than  16  years  ago  when  relations  with  the 
Soviet  Union  were  far  more  strained. 

NONlCnjTAST   TIBS THX    D.8.    XCONOMIC    STAJt* 

nf    WUIKBN   rUBOPB 

The  ties  that  bind  Europe  and  America 
are  many  and  varied,  but  they  have  been  de- 
fined chiefly  In  military  terms  NonmUltary 
ties,  such  as  the  substantial  US.  economic 
stake  in  Western  Europe,  are  at  least  as  Im- 
portant as  the  mUltary  connection  between 
the  US.  and  Its  allies.  The  activities  of  multi- 
national corporations  on  both  sides  of  the 
Atlantic  Imply  an  Important  mutual  commit- 
ment to  the  preservation  of  a  friendly,  pros- 
perous, and  stable  Europe  U.S.  assets  and 
Investments  In  Western  Europe  total  ap- 
proximately 940  blUlon.  of  which  %K  billion 
are  private  Investments  which  earn  Amer- 
ican  Investors   nearly   »3    bUllon   a   year. 

TH«    BCONOMIC    CBOWTH    OF     WXSTKBN    XUBOPB 

Since  World  War  O.  Western  Europe  has 
become  rich.  In  1961.  the  combined  ONP 
of  all  the  European  members  of  NATO  was 
•47  billion.  By  19T2  It  Jumped  to  •940  bU- 
Uon,  almost  100%  higher  than  that  of  the 
Soviet  Union.  By  almost  anv  measure,  the 
combined  Industrial  might  of  NATO  Europe 
sinpasses  that  of  the  Soviet  UtUon  The 
greater  economic  and  manpower  resources 
of  NATO  Europe  provide  a  basis  for  a  strong 
mlUtary  potential  as  weU  (see  Table  2). 

TABUi^OMPAmSON  Of  NATO  EUROPE  AND  U.S.S.R.,  1972 
(DOES  NOT  INCIUOE  UNITED  STATES) 


^     .  .  Oeftnse         ArnMd 

PopuHtWfl  GNP    spandini  Forcts 

(ntUHMs)    (billions)    (billions)    (miUions) 


NATO  Europtdn- 

dading  Fc«nc«). 

U.SS.R 


311 
2tt 


{949 
S49 


»4 

50-60 


XI 
14 


The  US  spends  87%  of  lu  GNP  on  the 
mUltary  and  the  Soviets  an  estimated  8%- 
10%,  but  NATO  Europe  spends  only  3  8% 
on  mlUtary  forces  Our  European  allies  aUo- 
cate  on  the  average  about  20%  of  their 
government  spending  to  defense.  whUe  toie 
US.  spends  twice  that  percentage. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42753 


THX   CHANGED   POUTICAl.   STTUATIOK 

Apparently  our  alUes  take  a  less  worried 
view  of  the  Soviet  threat  than  the  U.S.  From 
their  point  of  view,  a  Soviet  conventional 
attack  on  Europe  is  Increasingly  implausible. 
It  has  become  more  difficult  to  see  what 
Soviet  Interests  would  be  served  by  attack 
on  Western  Europe  The  Soviet  Union  would 
gain  little  and  lose  much  by  a  mUltary  at- 
tack on  Germany.  FYance,  and  other  NATO 
allies.  The  Defense  Department  apparently 
agrees  that  the  threat  to  Western  Exirope 
Is  remote  because  It  allows  236,000  depend- 
ents to  stay  there. 

The  pcdltlcal  situation  in  Europe  has 
changed  from  when  the  North  Atlantic 
Treaty  was  signed  In  1949.  US.  General  An- 
drew Ooodpaster,  the  Supreme  Allied  Com- 
mander in  Europe,  graphically  described  in 
1971  the  prevaUlng  perception  of  the  Soviet 
threat  at  the  time  that  NATO  was  founded: 

In  those  days  the  question  was  not,  "WUl 
there  be  war?"  but  rather.  "In  what  month 
wUl  war  start?"  An  exhausted  Western  Eu- 
rope, weakened  and  weary  of  war,  faced  a 
new  threat — and  It  seemed  only  a  matter 
of  time  untu  the  threat  would  be  carried 
out.  That  was  the  climate — the  harsh, 
numbing,  almost  paralyzing  cUmate — into 
which  NATO  was  born 

The  division  of  the  world  between  a  US  - 
led  bloc  and  a  Soviet-led  bloc  has  been 
eroded.  Increasingly,  the  conflict  between 
the  Soviet  Union  and  the  West  has  been 
channeled  Into  nonmUltary  spheres,  on 
which  basis  a  wealthy  and  confident  West- 
em  Europe  already  competes  as  an  equal. 
Most  of  the  European  Cold  War  tensions  of 
the  1950's  and  1960s  can  be  traced  to  prob- 
lems arising  around  the  BerUn  situation 
and  the  German  problem.  As  of  1973,  these 
difficulties  have  been  eased,  particularly  be- 
cause of  the  Berlin  accords  signed  in  1972, 
and  West  Germany  has  normalized  Its  rela- 
tions  with   most   East   European   countries. 

IMPLICATIONS  OF  THX  CHINESE  THREAT  TO  THX 

Bovnrr  union 

For  the  Soviet  Union,  the  breakdown  of 
the  simple  bipolar  conflict  has  meant  that 
It  Is  now  confronted  with  possible  threats 
from  more  than  Just  the  United  States. 

The  USSJl.  faces  the  Chinese  who  are 
armed  with  nuclear  weapons  and  a  regular 
armed  force  of  2.900,000  Dr.  John  Foster, 
former  director  of  Defense  Research  and  En- 
gineering, has  observed  the  multlthreats  to 
the  Soviets: 

They  face.  In  a  way,  more  threats  than  does 
the  United  States,  and  so  what  they  ^e  as 
equitable  seems  a  little  off  balance  to  ifl|. 
Of  course,  they  have  China  on  a  largeBhic- 
tlon  of  their  borders.  China,  as  you  know,  is 
rapidly  obtaining  a  nuclear  capablUty  In  sub- 
marines. In  bombers,  tmd  In  surface-to-sur- 
face mlssUes.  They  also  have,  of  course. 
NATO  bordering  on  their  country  and  the 
Soviet  bloc  nations.  So  they  have  to  reckon 
with  Chinese  missiles.  CThlnese  armament, 
US.  armament,  the  French  and  United  King- 
dom nuclear  armament.' 

The  Soviet  Union  Is  unlikely  to  engage  In 
provocative  behavior  or  launch  an  attack  on 
West  Germany,  France,  and  other  NATO 
countries  as  long  as  it  perceives  a  threatening 
Chinese  presence  on  its  eastern  border. 

NXaa)    TO    TRAN.SrORM    NATO 

With  the  growth  of  European  eoonomlc 
strength  and  with  the  waning  of  the  (3old 
War,  It  has  become  Increasingly  difficult  to 
accept  a  relationship  between  the  United 
States  and  Western  Europe  Involving  such  a 
heavy  US.  military  responsibility  for  the  re- 
gion's defense  Western  Exirope  Is  weU  able  to 
raise  and  support  the  mUltary  forces  required 
for  Its  own  defense.  The  North  Atlantic  Alli- 
ance shoiUd  therefore  be  transformed  to 
lessen  the  dominant  role  of  the  United  States 
In  the  NATO  command  structure  and  to  In- 


Footnotes  at  end  of  article. 


cre«»e  Western  Europe's  role  In  Its  own  de- 
fense. For  example,  It  may  be  time  to  re- 
assess the  tradition  of  having  a  U.S.  general 
officer  as  Supreme  Commander  of  NATO 
forces  In  Europe. 

A  growing  number  of  Americans  have  be- 
come conscious  of  the  unreality  of  the  United 
States  devoting  so  much  of  its  mUltary  ef- 
forts to  the  remote  possibility  of  a  majOT 
war  In  Europe.  The  maintenance  of  more 
than  229.000  US.  troops  In  GwTnany  In  par- 
Ucular  has  dlminlBhlng  plauslbUlty.  In  early 
October  1973,  a  Gallup  poU  Indicated  that 
a  majority  of  the  American  public  favored 
cutting  US.  forces  In  Europe.*  In  the  Con- 
gress there  has  been  growing  pressure  for 
substantui  cuts.  These  demands  have  been 
fed  by  increases  in  the  number  of  U.S.  troops 
In  Europe  whUe  US.  deployments  In  Asia 
have  been  reduced  In  recent  years. 

THE    NIXON     DOCTRINE    AND    SELF-HELP 

The  Nixon  Doctrine,  conceived  for  Asia  and 
by  Implication  extended  to  Western  Europe, 
declares  that  the  nation  directly  threatened 
wUl  assume  primary  responsibility  for  pro- 
viding the  manpower  for  Its  own  defense. 
Admiral  Thomas  Moorer,  chairman  of  The 
Joint  Chiefs  of  Staff,  noted  this  year  that 
political,  flscal,  and  manpower  constraint's 
"prescribe  smaller,  but  more  efficient,  U  S. 
general  purpose  forces,  and  require  a  much 
greater  degree  of  self-reliance  and  burden 
sharing  by  our  allies.""  Defense  Secretary 
Schleslnger  agreed : 

The  underlying  premise  of  the  NUon  doc- 
trine Is  that  we  should  be  encouraging  {rreater 
self-help  on  the  part  of  allied  friendly  coun- 
tries to  buUd  up  their  forces  so  that  they  c-an 
defend  themselves  In  the  absence  ol  U.S. 
ground  forces,  in  particular,  and  hopefully 
In  the  absence  of  US.  air  and  naval  forces." 

This  principle  of  self-help  and  an  end  to 
U.S.  military  paternalism  Is  even  more  ap- 
pUcable  to  the  wealthy  nations  of  Western 
Europe  than  to  Asia.  In  Senator  Mansfield's 
phrase,  It  Is  time  "to  replace  a  policy  of  land- 
based  omnipresence  with  a  policy  of  dis- 
cerning internationalism."  The  contrast 
however,  between  the  Ntxon  Doctrine  and  the 
continuation  of  26-year  old  mUltary  arrange- 
ments for  European  defense  Is  sharp. 

FLUCTUATIONS    IN     NATO    TROOP    STRENGTH 

There  have  been  great  fluctuations  In  the 
level  of  NATO  forces,  but  with  no  apparent 
Impact  on  the  European  security  situation. 
Many  of  our  allies  have  cut  their  forces  and 
France  withdrew  from  formal  participation 
In  many  NATO  activities.  The  Dutch,  Bel- 
gians, Canadians,  and  British  have  ail  cut 
their  forces  stationed  In  West  Germany.  US. 
f<»^:es  In  ETurope  declined  from  463,000  in  1962 
to  296,000  m  1969.  MUltary  force  planning  is 
an  uncertain  process  wherem  the  only  con- 
sistent pattern  Is  that  there  Is  never  enough 
and  that  what  exists  should  not  be  reduced 
The  relationship  between  foreign  commit- 
ments and  mUltary  force  structure  Is  loose 
Despite  the  history  of  fluctuations  in  NATO 
forces,  mUltary  leaders  argue  today  that  the 
present  level  of  U.S.  forces,  and  XATO  forces 
in  general,  are  the  absolute  minimum  re- 
quired  for  defense  of  Europe  and  cannot  be 
cut. 

IHannlng  for  conventional  forces  Is  more 
complicated  than  for  strategic  forces.  Admiral 
Moorer  has  admitted  that  "there  are  a  great 
many  uncertainties  involved  In  drawing  up  a 
balance  between  NATO  and  the  Warsaw 
Pact.""  He  sUtee  that  NATO  planning  la 
"not  a  precise  science  at  aU."  "  and  that  many 
of  the  variables  and  scenarios  ased  ;.'-.  ae- 
veloplng  force  levels  ai.d  strat«g-y  sre  'just  a 
■P*ciaatlon.  •  »  and  "you  can  get  almost  any 
answer  depending  upon  how  you  vary  the 
inpvtts."  >» 

RECENT    STUDIES    DIBCLOSB    NATO    STKENOTHS 

Current  Defense  Department  studies  of 
Western  European  defense  requirements, 
considered  by  DOD  to  be  the  most  compre- 


hensive to  date,  indicate  that  NATO  has  more 
than  enough  forces  to  defend  Itself  against 
the  likely  Soviet  threats,  and  that  Warsaw 
Pact  strength  has  been  exaggered  In  the 
past."  NATO  can  handle  the  probable  Soviet 
threat  with  less  ground  forces  in  Europe. 
Former  Defense  Secretary  Richardson  com- 
mented that,  "the  general  thrust  of  this 
study  is  that  the  conventional  capabUltles 
of  the  aUles  in  NATO  have  tended  to  be  un- 
derestimated and  that  they  could  withstand 
for  a  very  substantial  jjerlod  a  conventional 
Warsaw  Pact  attack."  '■  Defense  Secretary 
Schleslnger  agreed  that,  "It  U  clear  that 
NATO  Is  In  better  shape  conventlonaUy  than 
had  been  anticipated." "  He  also  suggested 
that  the  United  States  Is  not  at  a  severe  dis- 
advantage In  reinforcement  capabUlty  when 
compared  to  the  Soviet  Union:  "With  our 
airlift  capabUltles,  we  are  able  to  redeploy 
combat  troops  very  quickly,  In  fact  more 
quickly  in  a  number  of  respects  than  the  So- 
viets can  In  a  location  closer  to  hand.  .  .  . 
The  difficulties  of  redeployment  may  be  less 
for  us  then  they  are  for  our  possible  oppo- 
nents." " 

POLITICAL    ARGUMENTS    AND    INSTITUTIONAL    IN- 
TERESTS   BEHIND    LARGE    U.fl.    PORCE    LEVELS 

Despite  the  revised  mUltary  estimates.  Ad- 
ministration pressure  to  retain  U.S.  troops 
In  Europe  continues  to  be  strong,  and  em- 
phasis shifts  from  mUltary  to  political 
grounds.  For  example.  Administration 
spokesmen  say  that  US.  cuts  would  lead  to 
a  Western  European  loss  of  confidence  and 
the  erosion  of  European  lndei>endence  from 
the  Soviet  Union.  The  diminution  of  US. 
mUltary  power  In  Western  Europe  could  lead, 
It  Is  alleged,  to  Western  Eurof>e  ultimately 
being  dominated  by  the  Soviet  Union.  This 
spectre  has  been  dubbed  "Flnlandlzatlon." 
Finland  has  a  total  armed  force  of  39,600, 
a  GNP  of  «13  bUllon,  and  a  defense  budget  of 
•230  mUllon.  Comparing  the  situation  of  Fin- 
land to  that  of  Western  Europe  stretches 
logic.  The  countries  of  Western  Europe  can 
handle  the  USSJi.  (which  also  has  800 
mUllon  Chinese  to  contend  with),  as  long 
as  they  make  some  effort  to  cooperate  with 
each  other  and  to  maintain  aUlance  with 
the  United  States.  It  is  unrealistic  to  expect 
that  they  wUl  fold  up  lUce  some  empty  hosk 
if  the  US.  mUltary  presence  is  reduced.  Ad- 
dressing himself  to  changes  that  have  oc- 
curred In  concepts  of  power,  Secretary  of 
State  Henry  Kissinger  said : 

The  most  strUtlng  feature  of  the  contem- 
porary period — the  feature  that  gives  com- 
plexity as  well  as  hope — Is  the  radical  trans- 
formation in  the  nature  of  power.  Through- 
out history  power  has  generally  been  homo- 
geneous. MUltary,  economic,  and  political 
potential  were  closely  related.  To  be  power- 
ful a  nation  had  to  be  strong  in  all  cate- 
gories. Today  the  vocabtilary  of  strength  u 
more  complex  MUltary  muscle  does  not  guar- 
antee poUtlcal  Influence.  Eoonomlc  giants  can 
be  mUltarUy  weak,  and  mUltary  strength  may 
not  be  able  to  obscure  eoonomlc  weakness. 
Countries  can  exert  political  influence  even 
when  they  have  neither  mUltary  nor  eco- 
nomic strength." 

Other  political  arguments  suggest  that 
"substantial  and  precipitous  reductions" 
would  indicate  to  US.  NATO  allies  and  to 
the  Soviet  Union  that  the  United  States  was 
preparing  to  lessen  Its  conunitment  to  the 
defense  of  Western  Europe.  Europeans,  espe- 
claUy  the  West  Oermans,  would  lean  to»-ard 
this  view  The  United  States  woiUd  have  tc 
give  assurances  that  any  troop  cuts  would  be 
replaced  If  necessary  To  the  West  Germans, 
so  long  accustomed  to  a  large  US.  mUltary 
presence,  such  assurances  would  be  partlc- 
lUarly  important  to  allay  feeling  of  aban- 
donment by  the  United  Statee  that  oould  lead 
to  the  scuttling  of  European -orten tad  poli- 
cies and  to  a  reversion  to  strictly  national 
policies  Nor  could  the  Chinese  be  expected 
to  look  with  faTW  on  any   US.   troop   cuts 


427S4 


CONGRESSIONAL  RECORD  —  SENATE 


th«t  could  result  !n  reciprocal  SoTiet  reduc- 
tions that  could  ultlmjttely  Btrenj^eQ  the 
already  large  Soviet  force  on  the  Slno-Sovlet 
border 

Another  factor  that  works  against  the  r«- 
ductlon  of  U.S.  forces  la  the  Institutional  in- 
terest of  the  NATO  command  structure. 
NATO  exists  only  for  the  purx>oM  of  protect- 
ing Its  members  against  SoTlet  military  ag- 
gression. The  sole  task  of  the  Tery  large  NATO 
staffs  has  been  to  plan  and  carry  out  exer- 
cises against  the  contingency  of  Soviet  ag- 
greasloa.  These  staffs.  Including  the  123  U.S. 
general  officers  assigned  to  NATO  head- 
quarters, have  become  keepers-of-the-falth 
In  an  era  of  detente  whooe  task  Is  not  to  de- 
termine whether  a  threat  exists,  but  where 
the  threat  exists  and  when  it  will  come  With 
single-minded  purpoae  they  warn  against 
soft  options  and  political  backsliding.  The 
US -dominated  NATO  command  structure 
tends  to  perpetuate  overly  pessimistic  views 
of  the  Soviet  threat,  thus  resulting  In  high 
tovels  of  US.  forces  In  Europe. 

NXCOTX&TIONS   OI«    MVTUAl.   ■XOTTCTIONS*  OF 
rOBCXS    AND    AXMAMXNTS 

In  response  to  the  domestic  pressures  for 
change  in  V3.  policy,  the  US  Government 
since  I9«a  has  been  pushing  the  concept  of 
mutual  and  balanced  force  reductions 
(MFR>  in  Central  Europe  as  a  substitute  for 
Independent  VS.  cuts.  The  Nixon  Adminis- 
tration is  tying  any  reduction  of  U.S.  forces 
in  Western  Europe  to  corresponding,  and  ap- 
parently larger,  reductions  In  Soviet  foroee  In 
Eastern  Europe  President  Nixon  has  stated 
the  policy: 

Olven  the  existing  strategic  balance  and 
similar  efforts  by  our  allies.  It  Is  the  policy  of 
this  Oovernment  to  maintain  and  Improve 
our  forces  l.i  Europe  and  not  reduce  them 
except  through  reciprocal  reductions  nego- 
tiated with  the  Warsaw  Pact  " 

As  a  res'olt.  expenditures  on  US  mtUtary 
fcM-ces  oriented  for  European  defense  are 
growing  (direct  costs  up  from  tl4  billion  in 
1971  to  S17  bUllon  m  1973) .  troops  In  Europe 
Increaslxig.  and  Investment  in  new  conven- 
tional weapons  for  use  In  Europe  expanding. 

The  long-awaited  "Negotiations  on  Mu- 
tual Beductlons  of  Forces  and  Armaments 
and  Associated  Measures  In  Central  Europe" 
began  m  Vienna  on  October  30.  1973.  These 
tcUks  between  the  members  of  NATO  and 
the  Warsaw  Pact  are  among  the  moet  com- 
plicated International  negotiations  In  his- 
tory Certainly  they  are  much  more  com- 
plex than  the  SALT  talks  concerning  stra- 
tegic weapons.  If  only  because  19  rather  than 
two  countries  are  participating.  (Eleven 
states  are  full  participants  and  eight  are  ob- 
servers 1  Talks  on  force  reductions  In  Europe 
were  first  formally  proposed  by  NATO  coun- 
tries in  1968.  but  It  was  not  until  January 
1973  that  exploratory  meetings  began.  These 
preliminary  discussions  of  agenda  and  par- 
ticipation were  planned  to  last  five  weeks 
but  actually  went  on  for  Ave  months. 

It  Is  frequently  said  that  there  should  be 
a  reduction  of  US.  troops  Ln  Western  Europe. 
but  that  results  shovUd  await  the  outcome 
of  the  M7R  talks.  Proposals  to  reduce  US. 
forces  to  more  reasonable  levels'  are  dis- 
missed with  the  slogan  that  we  must  not 
undmmlne  our  negotiating  position.  It  Is  the 
tame  "bargaining  chip"  a.'srument  that  has 
b«en  used  to  supvport  the  expansion  of  stra- 
tegic arms  while  SALT  talks  are  attempting 
to  reach  arms  limitations  It  sounds  good 
to  arm  to  parUy.  but  tiMre  are  dLlcultles. 

sKsvmcAjrr  tnaoriATWD  vm.  tMDvcnom 

TTTTI.IKBl.T 

Prospects  for  significant  reduction  In  US 
forces  In  E-irope  resulting  from  the  MPR 
talks  In  Vienna  are  very  unlUely.  Por  sup- 
porters of  the  conttnoatlon  at  the  present 
level  of  US   forces  there  U  no  right  time  to 


December  20,  1973 


Footnotes  at  end  of  article. 


cut.  There  Is  also  little  interest  In  reducing 
troops  except  In  return  for  Soviet  cuts  that 
would  have  to  be  so  large  that  the  Soviet 
Union  probably  wlU  not  ffnd  them  acceptable. 
In  fact,  the  Soviet  Union  has  been  quite  skep- 
tical about  force  reductions  in  Europe,  and 
has  only  reluctantly  and  under  pressure  for 
progress  In  other  aspects  of  East-West  rela- 
tions been  willing  to  begin  necotlaUons. 

The  role  of  the  .VD»R  talks  Is  in  great  part 
to  forestall  pressures  In  the  US.  Congress 
to  cut  US.  troops.  Only  small,  symbolic  re- 
ductions are  probable,  to  prevent  larger 
reductions  enforced  by  Congress.  Senator 
James  Pearson.  Republican  of  Kansas  and  a 
member  of  the  Senate  Foreign  Relations 
Committee,  has  observed  the  place  of  the 
MFR  talks  !n  efforts  to  preserve  subsUntlal 
US.  forces  Ln  Europe : 

ihere  are  really  three  groups  of  people. 
There  are  those  that  dont  want  any  with- 
drawal and  then  there  are  those  who  want 
to  do  It  by  mutual  rwiuctlon.  Then  there 
are  those  who  want  to  do  It  unUaterlly.  I 
think  those  who  dont  want  any  withdrawals 
are  the  same  group  that  want  to  do  It  by 
mutual  negotiations." 

It  will  be  extremely  difficult  to  achieve  bal- 
anced reductions  of  forces,  because  so  many 
different  kinds  of  units  and  complex  weap- 
ons are  mvolved.  The  differing  force  pos- 
tures, moblliaauon  capabUltle*.  and  geo- 
graphic situations  of  NATO  and  the  Warsaw 
Pact  make  the  technical  difficulties  of  nego- 
tuung  balanced  reductions  almost  insur- 
mountable. Numbers  of  troops  and  amounts 
of  weapons  cannot  with  precision  be  trans- 
lated Into  levels  of  security.  Varying  national 
perspectives  also  produce  confllctmg  concep- 
Uons  of  what  coi.stltutes  a  fair  balance 
These  talks  are  likely  to  drag  on  for  years 
In  the  end.  all  that  may  be  achieved  Is  a 
mutual  10%  cut  by  NATO  and  the  Warsaw 
Pact  countries,  and  perhaps  the  accumula- 
tion of  -bargaining  chips"  on  both  sides  that 
will  negate  any  reductions  achieved  at  the 
negotiating  Uble.  This  could  mean  that  90". 
of  the  present  American  troop  strength  in 
Europe  would  be  fToeen  In  position,  perhaps 
Indefinitely,  perhaps  "only"  for  another 
quarter  of  a  century.  Handcuffing  present 
and  future  US  policy  to  the  success  of  the 
mutual  force  reduction  talks  Is  reallv  no 
policy   for   change. 

TMx  Nxxo  roa  wxw  kpnoxciaa 
If  there  are  to  be  cuts  In  forward  deployed 
forces  in  Europe,  and  savings  in  US  defense 
spending,  other  approaches  that  permit 
greater  ffexlblllty  and  Independence  should 
be  explored  and  carried  out.  We  should  avoid 
engaging  In  force  reductions  only  in  lock- 
step  with  the  Soviet  Union.  Better  a  care- 
fully thought  out.  well-planned,  well-phased 
cut.  than  an  unsatisfactory  and  frustrating 
10%  reduction  that  would  Ukely  be  rejected 
by  US.  public  opinion  and  foUowed  by  an 
angry  backlash  and  a  precipiute.  wholesale 
withdrawal  of  our  forces  that  could  be  dam- 
aging In  consuiutlon  with  lu  NATO  allies, 
the  U  S  could  begin  to  make  plans  now  for  a 
gradual  but  significant  reduction  of  US 
military  forces  In  Europe,  regardless  of  the 
course  of  the  MPR  talks.  The  phasing  down 
of  US  forces  could  be  done  on  a  ten -year 
plan,  negotiated  with  our  allies,  with  a  30% 
cut  spread  over  the  first  three  years,  and 
then  a  reassessment  of  the  situation  to  see 
how  the  Soviet  Union  and  our  aUles  are 
reacting  Thu  Initial  cut  would  be  less  than 
the  60%  cut  advocated  by  Senator  Mansfield. 
Buildups  occur  as  a  reeult  of  unilateral  or 
Independent  action.  Surely  reductions  can 
be  made  in  the  same  way.  The  Soviet  Union 
might  respond  to  a  diplomacy  of  "mutual 
example"  because  of  lU  need  to  shift  forces 
from  Eastern  Europe  to  areas  nearer  to 
China,  or  because  It  also  faces  domestic  pres- 
sures on  defense  spending,  Soviet  troops  in 
fcstem  Europe,  however,  are  there  in  great 


part  as  occupation  forces  to  preserve  politi- 
cal BtabUlty  and  Soviet  dominance.  Former 
Secretary  of  Defense  Richardson,  in  March 
1973.  reported  to  Congress: 

Smce  1965.  when  the  Warsaw  Pact  was 
established.  Soviet  troops  in  Eastern  Europe 
have  been  actively  ulUlaed.  in  a  military 
sense,  not  against  NATO,  but  against  two 
of  the  Pact  member  states — Hungary  In  I960 
and  CzechoslovakU  In  1968.  Quite  clearly, 
the  courageous  and  large-scale  resistance 
that  met  both  Invasions  suggest  that  Soviet 
troops  have  a  tenuous  welcome  at  best.** 

The  continued  presence  of  a  high  level  of 
US.  troops  In  Western  Europe  provides  a 
continued  raUonale  for  the  Soviet  garrison 
forces  In  Eastern  Europe.  If  the  Soviet  Union 
were  able  to  respond  positively  to  US  - 
inlttoted  cuts,  well  and  good.  If  not.  then 
the  situation  could  be  reassessed. 

&     PHASKD      WrrHDaAWAJL:      ETTUaNINO     TO     THB 
OBIGIKAL    NATO    CONCXIT 

The  goal  of  a  phased  withdrawal  of  Ameri- 
can forces  from  Europe  Is  not  abandonment 
of  NATO  by  the  US.,  but  a  return  to  the 
concept  of  NATO  as  It  was  originally  con- 
ceived. The  Intent  was  certainly  not  to  send 
American  troops  to  Exirope  on  a  permanent 
basis.  The  Idea  was  to  afford  the  Europeans 
time  to  build  up  adequate  military  forces 
of  their  own.  Once  that  was  accomplished. 
US.  forces  In  Europe  were  to  be  phased  out. 
As  General  AUred  M.  Gruenther,  SHAPE 
chief  of  staff,  told  the  Congress  m  1951,  "once 
this  European  rearmament  build-up  has 
been  accomplished,  It  should  be  possible  to 
begin  the  phasing  out  of  United  States 
ground  forces.  •• 

As  of  1973,  Europe  Is  capable  of  military 
self-sufficiency  vU-a-vis  the  Soviet  Union 
with  a  level  of  U.S.  support  and  presence 
In  Europe  less  than  at  present.  In  particular. 
West  Germany,  where  most  U.S.  troops  have 
been  stationed,  has  greaUy  expanded  Its  mili- 
tary forces  over  the  past  17  years  (see  Plgur» 
3).  Prom  1966  to  the  present.  West  German 
armed  forces  have  Increased  from  66.000  to 
475.000.  There  has,  however,  been  no  phase- 
down  of  US.  troops  to  take  account  of  this 
buildup.  It  should  also  not  be  overlooked, 
and  certainly  is  not  by  the  Soviet  Union! 
that  both  Britain  and  France  possess  strate- 
gic nuclear  forces  that  may  seem  small  in 
comi>arlson  to  US.  and  Soviet  levels  of  over- 
kiU.  but  are  still  quite  substantial  deterrent 
forces  for  the  defense  of  Western  Europe. 
The  SALT  I  agreements  have  enhanced  the 
effectiveness  of  British  and  French  strategic 
weapons  by  limiting  Soviet  ABM  defenses  to 
very  small  levels 

The  NATO  treaty  does  not  specify  a  level 
of  US  forces  for  the  defense  of  Europe  (Ar- 
ticle 3).  All  it  says  Is  that  the  parties  will 
maintain  and  develop  their  Individual  and 
coUectlve  capacity  to  resist  armed  attack. 
They  agree  that  an  armed  attack  against  one 
U  an  attack  against  all.  but  even  then,  each 
P»rty  U  left  free  to  decide  what  action  to 
take,  according  to  Its  own  constitutional  pro- 
cedures and  requirements:  the  treaty  merely 
says  that  such  action  can  "Include  use  of 
armed  force"  (Article  5). 

NATO    JOUTAST    SPXNDINO    KXCXKDS    THAT    OF 

wassaw  pact 
The  US.  Is  pledged  to  help  defend  West- 
em  Europe  because  the  existence  of  a  friend- 
ly and  independent  Western  Europe  is  In 
Amertoas  Interest.  It  Is  hard  to  envisage  an 
attack  by  the  Soviet  Union  on  Western  Eu- 
rope that  would  not  involve  the  US.  As  Ad- 
miral Thomas  Moorer  has  remarked,  "it 
should  be  clear  to  everyone  that  a  major 
NATO-Warsaw  Pact  conflict  would  involve 
the  nations  concerned  In  global  warfare,  not 
Just  In  the  European  theater.  ■  An  assess- 
ment of  the  total  asseU  available  to  NATO 
and  the  Warsaw  Pact  indicates  clear  NATO 
superiority,  both  In  actual  and  potential 
military  pcwc-     w^  Table  3).  According  to 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42755 


calculations  of  the  US.  Arms  Oontrol  and 
r^lsajmament  Agency,  NATO  during  the  pe- 
ri <1  1961-71.  consistently  outpspent  the  War- 
siiw  Part  by  $30  billion  each  year  for  military 

f'jrces  " 

TABLE  1-COMPARISON  OF  NATO  AND  THE  WARSAW  PACT, 
1972    (INCLUDES     UNITED     STATES) 


OatsRs*         Armed 
Populttion  GNP    SMnding  Forces 

(millions)    (billions)    (blllionj)     (millions) 


NATO 

WnawPact. 


S42 
3S2 


J2.207 
7S3 


$60-70 


16 
4.4 


A    U.S.    MBtrCTTON:    KXT    TO   PSESESVATION    OF 
NATO    ALLIANCK 

It  Is  time,  therefore,  for  the  US.  to  begin 
a  phased  withdrawal  of  forces  from  Europe, 
down  from  the  present  American  contribu- 
tion of  a  quarter  of  NATO  strength  In  place 
on  the  central  front.  After  an  initial  period 
of  US.  reduction,  there  would  be  a  reassess- 
ment of  how  our  European  allies  react.  They 
oould  probably  get  better  defense  than  they 
now  have  for  their  annual  $36  billion  de- 
fense spending.  If  they  eliminated  over- 
lapping and  duplication,  and  progressed  to- 
ward greater  European  unity.  The  US.  would 
of  course,  still  remain  In  NATO  and  a  re- 
duction of  the  American  military  presence  in 
Europe  would  still  leave  NATO  strong.  The 
fact  of  the  matter  Is  that  an  attack  on  West- 
ern Europe  U  highly  imllkely.  with  or  with- 
out the  presence  of  substantial  American 
troops.  This  reality  should  have  some  effect 
on  what  we  do. 

The  alternative  to  phased  withdrawal  Is 
almost  certainly  not  a  stubborn  continua- 
tion of  the  status  quo.  but  a  hasty,  massive 
pullout  from  Europe  In  backlash  against  the 
whole  NATO  concept.  A  phased  withdrawal 
Is  not  a  denial  of  our  NATO  commitment; 
rather  It  Is  perhaps  the  only  way  to  preserve 
the  military  cooperation  of  the  NATO  allies 
Henry  Kissinger  has  said  that  "no  foreign 
policy  has  any  chances  of  success  If  It  Is  born 
In  the  minds  of  a  few  and  carried  In  the 
hearts  of  none."  "  Nowhere  Is  this  more  trus 
than  with  regard  to  the  now  outmoded  policy 
of  maintaining  forces  for  war  In  Europe  far 
In  excess  of  those  required. 

rOOTNOTXS 

>DOD  (Comptroller).  The  Economics  of 
Defense  Spending:  A  Look  at  the  Realities 
(July  1973),  p.  140. 

•  Senate  Armed  Services  Committee,  Hear- 
ings on  Military  Procurement  Authorization, 
Fiscal  Year  1973,  Part  1.  p.  14 

•  Senate  Armed  Services  Committee,  Hear- 
ings on  Militanj  Procurement  Authorisation, 
Fiscal  Year  1974.  Part  1.  p.  370. 

•  Senat*  Armed  Services  Comnalttee,  Re- 
port on  Military  Procurement  Authorization, 
Fiscal  Year  1972   (September  7,  1971).  p.  16. 

•  SenatA  Foreign  Relations  Committee, 
hearings  on  "Mutual  Reduction  of  Forces  in 
Europe"  (July  37.  1973),  p.  133  (stenographic 
record) . 

•  House  Armed  Services  Committee.  Hear- 
ings on  Military  Procurement  Authorization, 
Fiscal  Year  1974,  Part  1,  pp.  463-464 

''SHAPE  and  Allied  Command  Europe: 
Ttcenty  Years  In  the  Service  of  Peace  and 
Security  1951-1971   (Fleurus.  Belgium),  p.  9. 

•House  Armed  Sen'lces  Committee.  Sup- 
plementary Hearings  on  Defense  Procurement 
Authorization  Relating  to  SALT  Agreement 
(June   13,    1973).   p     12098.73,   p     12098  83 

*  Washington  Post.  October  8.  1973.  Neu) 
York  Times.  October  9,  1973.  The  Gallup 
Poll  showed  that  67%  of  those  who  are 
aware  of  the  issue  of  withdrawal  of  US. 
forces  In  Europe  are  In  favor  of  It.  Two- 
thirds  of  the  public  are  aware  of  the  Issue. 

"Statement  by  Chairman  of  the  Joint 
Chiefs  of  Staff  Admiral  Thomas  H.  Moorer. 
VSN,  on  United  States  MUitary  Posture  for 
FY  1974  (March  3«,  1973).  p.  81. 


"  Sena',^  .Vrmed  Services  Committee:  Som- 
ination  of  James  R  Schiesinger  to  Be  Sec- 
retary of  Defense  iJ\^e  18,  1973).  p.  71. 

"  Statement  by  Chairman  of  the  Jotnt 
Chiefs  of  Staff  ....  p.  5.T. 

"Senate  Armed  .Services  C<»nmlttae,  Hear- 
ings on  Military  Procurement  AuthOrUation, 
Fiaoal  Year  1974,  Part  1,  p.  388. 

"/bid.  p.  386. 

'*Ibid.,  p.  369. 

"See  Senate  Armed  Services  Committee. 
Hearings  on  Military  Procurement  Author- 
ization. Fiscal  year  1974,  Part  8.  pp.  5349. 
5379.  5304;  Part  1.  p.  310:  Senate  Foreign  Re- 
lations Committee,  hearings  on  "Mutual  Re- 
duction of  Forces  In  Europe",  July  37,  1973; 
and  Washington  Post.  Jvine  7.  1973  (Michael 
Getler,  "Study  Insists  NATO  Can  Defend  It- 
selT'). 

"  Senate  Armed  Services  Committee,  Hear- 
ings on  MUitary  Procurement  Authorization, 
Fiscal  Year  1974.  Part  1,  pp.  310-311. 

'•  Press  conference.  June  8.  1973. 

••  Senate  Armed  Services  (Tonmilttee.  Nomi- 
nation of  James  R.  Schlesinger  to  Be  Secre- 
tary of  Defense  (June  18.  1973) .  p.  71. 

"Speech  at  Pacem  In  Terria  Conference. 
Washington,  D.C..  October  8,  1973. 

"  Report  by  President  Richard  NUon  to 
the  Congress,  United  States  Foreign  Policy 
for  the  1970's,  February  9.  1973.  p.  44. 

"  Senate  Foreign  Relations  Committee, 
hearings  on  "Mutual  Reduction  of  Forces  In 
Europe",  July  37,  1973,  p.  186  (stenographic 
record) . 

■  Senate  Armed  Services  Committee,  Hear- 
ings on  Military  Procurement  Authorization, 
Fiscal  Year  1974.  Part  1,  pp.  175-176. 

« Senate  Foreign  Relations  Committee, 
Hearings  on  the  United  States  Foreign  Aid 
Program  in  Europe.  1951.  p.  290. 

"Statement  before  the  House  Foreign  Af- 
fairs Committee.  July  11.  1973,  hearings  on 
"United  States  Troop  Levels  In  Europe,"  p.  8 
of  orlglned  statement. 

=•  United  States  Arms  Control  and  Disarm- 
ament Agency,  WorZd  Military  Expenditures 
1971,  p.  9. 

■■  Speech  before  the  International  Platform 
Association  on  August  3,  1973. 

Soviet    Tank    Thweat    and    Retnfobckicknt 

CAPABILinES     ASSESSXD 

Ambassador  Stanley  Resor,  head  of  the 
United  States  delegation  to  the  MFR  talks  in 
Vienna,  presented  the  opening  US.  state- 
ment on  mutual  force  reductions  In  Central 
Europe  on  October  31.  1973.  In  describing 
the  Soviet  threat  to  NATO  and  the  need 
for  Soviet  forces  to  be  reduced  by  larger 
amounts  than  those  of  the  NATO  allies. 
Ambassador  Resor  stressed  the  Soviet  su- 
periority In  numbers  of  tanks  as  well  as 
the  disparities  In  geography,  particularly  as 
distance  might  relate  to  the  comparative 
reinforcement  capabilities  of  the  U.S.  and 
the  USSR.  The  Soviet  tank  threat,  and 
the  presumably  vastly  superior  Soviet  rein- 
forcement capability  sj-e  frequent  themes  In 
analyses  of  the  military  balance  In  Eurc^ie 
and  are  prominent  In  arguments  against  any 
reduction  of  US.  forces  stationed  In  Europe. 
The  actual  situation,  however.  Is  not  as 
starkly  black  and  white  as  often  alleged. 
NATO  has  compensating  strengths  which  may 
more  than  compensate  for  any  areas  of  sup- 
posed Soviet  advantage. 

THx  sovixt  tank  thxxat 
According  to  DOD  figures.  NATO  has  ap- 
proximately 6,000  tanks  In  the  Central  Euro- 
pean region  compared  with  14,0(X)  for  the 
Warsaw  Pact.  The  quality  of  NATO  tanks. 
however,  as  measured  by  long-range  fire- 
power, cruising  range,  human  engineering, 
ammunition  basic  load,  and  overall  main- 
tainability and  reliability.  Is  superior  to  that 
of  Soviet  tanks.  More  Importantly,  over  the 
past  decade  the  tank  has  become  increasingly 
\-ulnerable  to  destruction  because  of  the  de- 
velopment and  prollfertalon  of  comparatively 


Inexpensive,  but  sophisticated  antitank  weap- 
ons. NATO  has  great  superiority  over  the 
Warsaw  Pact  in  these  weapons,  both  In  num- 
bers and  In  technology. 

The  Middle  East  War  In  October  1973 
demonstrated  the  rapidly  advancing  obaolM- 
ence  of  the  tank.  Both  the  Arabs  and  the 
Israelis  suffered  devastating  losses  of  ta::ks, 
totaling  nearly  3.000.  Clearly.  antltanX  cr.is- 
sUe  technology  has  overcome  any  protectlvs 
countermeasures  currently  available  to  tanks. 
A  (500.000  tank  can  be  destroyed  by  a  very 
Inexpensive  man-carried  antitank  weapon 
such  as  the  82,000  US.  TOW  missile.  A  taiiJt 
Is  not  required  to  counter  another  tank.  Oiie 
man  can  accomplish  the  mission  of  destroy- 
ing a  tank. 

NATO  has  formidable  antitank  defenses. 
Moreover,  the  geography  of  Central  Eurc^e  is 
much  less  suitable  for  tank  warfare  than  the 
Slnal  In  the  Middle  East  and  would  present 
grave  difficulties  for  any  rapid  Soviet  armored 
advance.  The  marked  NATO  advantage  In 
modem  offensive  aircraft  and  In  hellet^ters 
carrying  antitank  missiles  also  contributes  to 
lessening  of  the  Warsaw  Tract's  superiority  In 
tsinks.  Helicopters,  able  to  hug  the  nap  of 
the  earth  and  take  advantage  of  natural  ob- 
stacles, would  be  particularly  effective  in 
taklug  a  toll  of  tanks  in  Central  Europe  as 
contrasted  with  the  fiat  areas  of  the  Middle 
East.  If  not  already  obsolete,  the  tank.,  and 
Its  Importtmce  and  role  In  modern  electronic 
warfare,  Is  far  more  restricted  than  It  was  as 
recently  as  the  June  1967  Middle  East  War. 
As  a  factor  In  measuring  the  mlUtary  balance 
In  Eiirope,  comparison  of  numbers  of  tiuiks 
Is  a  mlsleskdlng  Indicator  of  real  mlUtary 
capability. 

U.8.    AND    BOVrCT    SXINTORCXUKNT    CAFASn.rnX8 
AND    PKOBLEXS 

The  United  States  has  built  up  a  substan- 
tial airlift  capability  for  rapidly  moving 
troops  and  equipment  between  the  US.  and 
Europie.  This  airlift  c&p&dtj  Is  largely  pro- 
vld'J  by  the  78  C--5  and  279  C-141  aircraft 
of  the  Military  Airlift  Command  and  the  ap- 
proximately 400  commercial  aircraft  (7478, 
707s.  DC-Ss  I  made  available  through  the 
Civil  Reserve  Air  Fleet  i  GRAF  i . 

Pentagon  planners  have  esseatlaily  ruled 
out  the  possibility  that  the  Soviet  Union 
could  latinch  a  massive  surprise  attack  on 
Western  Europe.  Soviet  forces  cannot  be 
moved  westward  in  substantial  numbers 
without  lengthy  and  visible  mobilization. 
U.S.  Intelligence  rescviroes,  most  importantly 
satellite  reconnaissance,  would  provide  ad- 
vance warning.  In  Admiral  Moorer's  words, 
"the  Soviets,  of  course,  mobilize  In  a  differ- 
ent way  than  we  do.  ...  All  of  this  generates 
a  tremendous  amount  of  m..^Tement,  concen- 
trations at  shipping  depots,  and  things  of 
that  kind.  ...  I  think  It  would  be  Impossible 
for  them  to  surprise  us  with  their  total  ef- 
fort." Defense  Secretary  Schlesinger  has  also 
minlmlsted  the  possibility  of  surprise  &-.tack 
"One  of  the  thin^  that  we  on^r.t  t.o  t>«sx>n;e 
Increasingly  aware  of  in  this  country,  we  may 
have  a  Pear;  Karbor  complex  and  expect 
something  to  occur  Instantaneously,  we  ar* 
very  likely  to  have  warning  at  the  tactical 
warning  center  so  we  oould  make  adjixst- 
ments." 

DOD  ^parently  plans  on  the  assumption 
that  there  would  be  at  least  several  weeks  of 
mobilization  possible  before  the  escalation  of 
a  NATO-Wa.'-&aw  Pact  conflict  to  a  significant 
level.  The  e.x;s;env.-*  of  warning  time  permits 
a  very  substaniii.  Increase  In  the  number  of 
both  U.S  a:-.d  N.\ro  Europe  forces  available 
to  oppose  Soviet  Attack. 

Former  Defense  Secretary  Richardson  com- 
mented on  the  "significant  political  and  mili- 
tary constraints  to  the  exercise  of  conven- 
tional military  force  against  NATO"  by  tiM 
Soviet  Union,  Including  that  "the  logistics 
burden  of  suppwUng  large-scale,  sustSLlnad 
offensive  warfare  would  impose  constraints 
on  Pact  forces  In  tarms  of  both  time  and  dla- 
tance."    Defense    Secretary   Schlesinger   hM 


427'R 


»l»o  described  Soviet  logUtlca  problems  u 
severe.-  and  said  that  "with  our  Mrlirt  c»- 
pabiuuee.  we  are  able  to  redeploy  combat 
troops  very  quickly,  in  fact  more  quickly  la  a 
number  of  respects  than  the  Soviets  can  in  a 
location  closer  at  hand." 

Reinforcing  Soviet  troops  sUtioned  in 
Eastern  Europe,  800  mUes  from  Western 
Buv!ia.  presents  dlfflcultles  not  often  real- 
teed  Land,  unlike  open  ocean,  can  be  cut 
in  many  places  by  air  strikes,  partisan  ac- 
tions, and  conventional  mining  Land  is  not 
flat  like  the  ocean,  and  geographic  obstaclee 
can  be  exploited  to  make  travel  difficult 
overland.  To  stop  shipping  in  the  ocean  from 
reachlr^g  Its  destination,  one  has  to  destroy 
the  ship.  On  land  In  Europe  the  easiest  way 
to  stop  material  or  troops  from  reaching 
their  destination  is  to  break  the  vein  of 
travel,  which  can  be  done  repeatedly  and  at 
different  points. 

Soviet  reinforcements  for  Eastern  Europe 
include  7  airborne  divisions.  17  armored  di- 
visions, and  34  motorized  rifle  divisions.  (So- 
viet divisions  are  significantly  smaUer  than 
thoee  of  NATO).  The  airborne  divisions 
would  be  easiest  to  deploy.  (There  are.  how- 
ever, only  enough  Soviet  transport  aircraft 
to  lift  about  2  divisions  and  their  equip- 
ment at  a  time.) 

The  51  other  reinforcement  divisions  con- 


CONGRESSIONAL  RKXMRD— SENATE 


tain    476,000    men.    about   9.500    tanks   and 
about  87.000  supply  trucks  as  well  as  thou- 
sands  of  artlUery   pieces   and   other   equip- 
ment. To  arrive  at  the  front,  they  must  come 
by  road  or  raU    If  by  road.  It  la  likely  they 
would  be  v\ilnerable  to  continuous  air  at- 
tack. NATO's  modem  offensive  combat  air- 
craft  are   structured    for   quick   destruction 
and  Interdiction  of  Warsaw  Pact  supply  and 
reinforcement  routes  and.  depending  on  the 
Intensity  of  the  war.  various  types  of  mls- 
sUes,    Including    SLBMs   and    ICBMs     might 
be  utUlzed  in  this  role.  If  Soviet  reinforce- 
ments did  arrive  at  the  front,  it  Is  doubtful 
what  contributions  they  could  make  to  the 
flght.  The  tanks  themselves,  in  view  of  the 
high     maintenance     breakdown     of     Soviet 
armor,   would   be   In   poor  condition    Tanks 
and  other  tracked  vehicles  would  have  worn 
down   their   treads,    if   they   stayed   on   the 
main  roads.  IX  they  left  the  roads  to  move 
cross   country,   their  arrival   time   would   be 
■h»rply  lengthened.  Travel   by  road   would 
also  burn  up  more  stores  and  fuel  than  the 
Soviet    Army    would    like    to    use    for    non- 
combat  purpoees. 

Reinforcing  by  raU  could  be  an  even  more 
arduous  task.  RaU  lines  are  more  susceptible 
to  crippling  Interruption  and  destruction 
than  roads.  It  might  bo  possible  to  drive 
around  craters  on  a  road,  but  trains  must 


December  20,  1973 


stop  If  rails  are  destroyed.  There  ts  also  the 
problem,  particularly  at  the  Polish  border 
of  different  gauges  of  track  through  Western 
Russu  and  Eastern  Europe.  In  general  con- 
sidering the  volume  of  traffic  Involved 
NATO  capabUlty  for  land-lnterdlctlon.  and 
the  vuinerabUlty  of  raU  lines.  Soviet  rein- 
forcement by  raU  would  have  serious  prob- 
lems. The  thin  raUway  net  that  connects 
the  Soviet  Industrial  centers  and  supply 
routes  across  the  territory  of  unreliable 
allies  could  be  as  vulnerable  to  disruption 
as  the  lengthier  reinforcement  routes  be- 
tween the  United  Statf     ^;   :  Kurope. 

RECLAMATION  PROJECTS  IN  THE 
STATE  OP  COLORADO 
Mr.  DOMINICK.  Mr.  President,  the 
nistory  of  the  authorized  reclamation 
project  In  Colorado  is  a  legislative  and 
poUtlcal  story  that  has  been  years  In  the 
making  and  that  has  consumed  the  time 
and  efforts  of  countless  individuals  and 
organizations.  These  projects  which  have 
been  previously  authorized  by  the  Con- 
gress, their  estimated  cost,  the  funds  ex- 
pended as  of  June  30.  1972,  and  the  prior- 
ities assigned  by  the  Colorado  Water 
Conservation  Board  are  as  foUows; 


Pralact 


tstimttad  cost 


Federal  funds 

■<p«nd«d 

JuiM  30, 1972 


Nirniws... 

OrtsjCrarti 

Dolores 

FrviUand  Mesa... 
Animas-La  Plata 
Savers- Pot  HooH. 

Closed  Basin 

San  Mifual 

West  Omde 


Priority 


Fundini  schedule 
1974 


ToUL. 


SS4, 870, 000 
U.  000. 000 
90.000.000 
43.2I4.0O0 

ISO. 000. 000 
47.930.000 
22.000.000 

102.000.000 

106.  sm.  000 


Jl,  775.000 
1,069.000 
1.263.000 
1.M9.000 
1.314,000 
1.074.000 
310.000 
1.074.000 
1.012.000 


I 
2 
3 
4 
S 

6  ... 

7  ... 

8  ... 

9  ... 


SI.SOO.OOO 

25.000 

450.000 

200.000 

400,000 


711.594,000 


10.440,000 


Mr.  President,  for  fiscal  year  1973, 
Congress  appropriated  funds  for  all  of 
these  authorized  projects  with  the  excep- 
tion of  Closed  Basin.  These  funds  were 
appropriated  to  carry  on  advance  plan- 
ning and  m  some  cases  to  Initiate  con- 
struction. The  President  had  directed 
that  all  of  these  funds  be  Impounded 
with  the  exception  of  $500,000  to  be  uU- 
llzed  in  determining  the  salinity  effects 
of  the  various  project*  on  the  Colorado 
River.  In  his  budget  message  to  the  Con- 
gress, the  President  recommended  no 
funds  for  any  of  the  projects  for  fiscal 
year  1974. 

Mr.  President,  realizing  that  the  work 
of  20  years  on  behalf  of  these  projects 
was  In  jeopardy,  State  water  leaders  met 
on  several  occasions  in  an  effort  to  es- 
tablish an  approach  to  reasonable  fund- 
ing for  these  projects  while  recognizing 
that  restraint  be  Imposed  in  order  to 
achieve  some  control  over  ever-increas- 
ing Federal  expenditures. 

The  fact  that  prtortUes  were  estab- 
lished is  itself  a  remarkable  accomplish- 
ment. Many  of  these  projects  are  located 
on  the  western  slope  of  Colirado  while 
others  are  on  the  eastern  slope.  The 
arguments  over  Colorado  waters  between 
these  two  areas  Is  a  fascinating  and  con- 
tinuing part  In  the  development  of  Colo- 
rado 

After  adoption  of  these  priori  Ues  on 
March  21.  1973,  former  Gov  John  A 
Love  and  Pellx  L.  Sparks,  executive  di- 
rector of  the  Colorado  Water  Conserva- 


tion Board,  met  with  the  Colorado  con- 
gressional delegation  on  March  27  in  an 
effort  to  present  a  united  front  on  this 
Important  subject.   After  conversaUons 
with    the    Office    of    Management    and 
Budget,  it  was  painfully  obvious  that  the 
Department  of  the  Interior  and  OMB 
had  adopted  the  thesis  that  there  is  no 
point  in  reclamation  projects  while  other 
land  is  being  taken  out  of  production. 
This  thesis  is  wholly  inaccurate  in  view 
of  our  agricultural  requirements.  Recla- 
maUon  should  be  receiving  more  atten- 
Uon  than  ever  before.  As  a  result  of  our 
meetings  on  February  22  and  March  27 
the  foUowlng  members  of  the  Colorado 
delegation— Senator   Haskell   and   my- 
self. Congressmen  Armstrong.  Brotzman 
Evans  and  Johnson— signed  a  statement 
dated  May  1,  1973.  which  was  presented 
to  the  House  and  Senate  Public  Works 
Appropriations     Subcommittees      That 
statement  supported  the  priority  sched- 
ules adopted  by  the  Colorado  Water  Con- 
servation Board  and  requested  fjwidlng 
of  not  less  than  $3  1  million  be  Sdded  to 
the  PubUc  Works  Appropriations  bill 

Mr.  President,  I  appeared  and  testified 
before  both  the  House  and  Senate  sub- 
committees. My  statements  and  the 
statement  of  the  congressional  delega- 
tion In  support  thereof  were  made  a  part 
of  the  Cokc«ssional  Rkcord  on  June  25 
1973.  beginning  at  page  21114  At  that 
time.  I  stressed  the  Individual  merits  of 
each  of  the  projects  and  pointed  out  the 
unusual  significance  of  the  Dolores  and 


3.100.000 


Anlmas-La  Plata  projects  insofar  as 
their  relationship  to  a  law  suit  filed  In 
US,  District  Court  for  Colorado  by  the 
Justice  Department  on  behalf  of  the  XJS 
Government  and  the  Ute  Mountain  and 
Southern  Ute  Indian  Tribes  of  south- 
western Colorado. 

Former  Governor  Love  and  many  other 
persons  representing  the  various  water 
projects  testified  before  these  subcom- 
mittees. The  House  Appropriations  Com- 
mittee subsequently  reported  a  public 
works  appropriations  bill  in  June  and 
regrettably  only  Included  1310,000  for  the 
Dolores  project  and  $375,000  for  Anlmas- 
La  Plata. 

Mr  President,  on  July  9,  1973.  I  con- 
tacted each  member  of  the  Senate  Pub- 
lic Works  Approprlatlon.s  Subrommlttee 
and  asked  for  their  attention  to  the  re- 
quested funding  of  not  less  than  $3  1 
million  as  previously  set  forth.  On  July 
20,  1973.  the  Senate  Appropriations  Com- 
mittee reported  the  public  works 
appropriations  bill,  which  In  addlUon  to 
idenUcal  House  amounts  for  Dolores  and 
Anlmas-La  Plata,  added  |1  million  for 
the  Narrows.  This  addition  was  accepted 
in  conference  and  the  public  works 
approprlaUons  bill  was  signed  by  the 
President  on  August  16,  1973. 

After  continued  urging  on  the  part  of 
ths  Colorado  delegation  and  water 
leaders  In  my  State,  I  was  advised  that 
funds  had  been  released  for  expenditure 
during  the  remainder  of  fiscal  year  1974 
In  the  following  amounts; 


December  20,  1978 


CONGRESSIONAL  RECORD  —  SENATE 


42757 


Narrows 1280,000 

Anlmas-La  Plata 598,000 

Dolores 460,000 

We  have  now  come  full  circle,  and  I 
have  expressed  m.v  feellng.s  on  several 
occasions  to  the  White  House  and  to 
OMB  about  thi.s  continued  refusal  to  rec- 
ognize the  Imimrtance  of  the  Colorado 
water  projects  and  the  Impoundment  of 
appropriated  funds. 

Mr.  President,  as  we  complete  our  leg- 
islative activities  for  1973,  I  am  mindful 
of  the  need  for  adequate  iunding  for 
these  projects  and  the  fact  that  we  shall 
soon  be  receiving  and  reviewing  the  pro- 
posed budget  for  fi.scal  year  1975.  One 
of  mv  deep  wi.shes  at  this  holiday  sea.son 
Is  that  my  me.ssages  ."Strongly  .'lupportlng 
these  project'^  have  been  received  and 
favorabb'  considered  by  the  executive 
branch.  The  Congres.s  this  past  year  took 
action  when  acilon  wa.s  required.  I  now 
await  something  more  than  inaction  on 
the  part  of  the  executive  branch  of  Gov- 
ernment in  the   1975  budget. 


RETURNABLE  CONTAINERS  SAVE 
ENERGY 

Mr.  HATP^IELD.  Mr.  President,  as  my 
coUeagxies  know,  I  believe  very  strongly 
that  we  must  enact  let:i.'^laUon  to  ban 
nonretumable  bottle.s  and  cai-Ls  I  have 
Introduced  a  bill  to  do  tins,  the  Nonre- 
tumable Beverage  Container  Prohibition 
Act.  which  is  presently  per-.dlng  before 
the  Senate"  Commerce  Conimltt.ee 

Among  the  mast  important  reasons  for 
baimlng  nonretumables  i.'^  their  waste- 
ful energy  consumption  On  December  5, 
Sensible  Citizen.';  Against  Throwaways 
and  Crusade  for  a  Cleaner  Enuronment 
held  a  press  conference  in  Wa.'^hington 
and  provided  some  compelling  farts  in 
support  of  this  proposition  We  are  all 
searching  for  ways  to  save  energy  and  I 
believe  tills  method  Ls  one  which  can  and 
should  be  adopted  .soon,  Becau.se  I  feel 
that  this  will  be  of  particular  intere5t  to 
all  Senators.  I  ask  unanimous  consent 
that  the  pre.ss  release  and  information 
resource  kit  prepared  jolntlv  by  the.se 
two  groujis  be  printed  in  the  RrroRn.  a.'^ 
well  av  a  pre.ss  release  and  fact  sheet 
publlsiied  on  November  29  by  Crusade  for 
a  Cleaner  E^nvlronment 

There  being  no  objection,  the  material 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 
SENSIBLE     Cm2rrNS     Against     TmrnwAWATS 

(SCAT)     AND    CHr.SADK   FOR   A   CUA.VEE   Ew:- 
RONMKNT    PS.ES.'J    Rei,EA,SE 

The  rhrowawav  si<tl  drink  ar;d  trcer  con- 
ta'.rier  lor.g  under  attack  for  It*  litter,  solid 
»-a.ste.  rtsourrp  wiuste,  and  high  C'«t  charaf- 
terlfltlrs  rame  u:,de.'-  a  ne^  attack  today — It 
ig  a  8h.«:klnK  wa.<;te  of  enenry 

Proponents  of  a  nationwide  mandat/iry  re- 
turn to  reusable  leisure  drink  containers  re- 
leased a  study  showing  that  s:Kh  legislation 
w\\:  save  m%  ,  f  enersT  saved  by  a  nation- 
wide 50  mile  an  hour  speed  limit  or  more 
•han  t.>-.e  enerxy  savings  iinder  one  plan  of 
llmlt«1  air  nights  or  ahout  a  third  of  one 
published  govemment  plan  for  lower  h6me 
heating    ilmltj!  X 

K  Mo!itg<>mer>'  Onir.ty  Maryland  c!tl»ns 
orga:.iB»t!on,  Sensible  Citizens  A^ralnst 
Thr  .wawaTB  i-SCATj  and  a  national  envl- 
tXMunental  unit.  Crtwade  for  a  C!ea:.er  Envl- 
ronnient,  presented  data  8upp«irting  enact- 
ment of  Senate  bUI  83092  sponsored  among 


others  by  Senator  Hatfield  and  Packwood  of 
Oregon  where  similar  legislation  has  been  In 
effect  for  over  a  year. 

It  would  ban  all  non-returnable  beverage 
containers.  The  Commerce  Committee  Is  ex- 
pected to  hold  hearings  In  late  January, 
itontgomery  County  has  studied  similar  leg- 
islation for  the  past  year  and  its  County 
CouncU  wUl  meet  Friday  to  start  final  action 
on  the  bill. 

The  focus  on  the  energy  aEp>ects  of  such 
legislation  Is  timely  In  that  the  data  has 
been  collected  to  portray  equivalent  energy 
waste  of  throwaway  beverage  containers  In 
comparison  to  other  energy  savings  meas- 
ures proposed  by  the  Administration. 

John  Breler,  SCAT  president,  showed  an 
energy  saving  equivalent  to  131.000  btkrrels 
of  oil  per  day  with  an  aU  returnable  con- 
tainer system. 

Efr.  Robert  T\imer  of  SCAT  presented  data 
showing  that  at  the  time  of  disposal — each 
12  oz.  beer  can  has  accumulated  the  equiv- 
alent of  26%  of  Its  volume  In  wasted  gaso- 
line. It  Is  the  same  as  putting  both  the  can 
and  3,18  ozs,  of  gasoline  Into  the  family  gar- 
bage can. 

Turner  also  compared  the  national  energy 
waste  to  the  heating  of  3.6  mUUon  three 
bedroom  brick  homes  and  the  heating  of  an 
average  bath  to  the  energy  waste  of  six  av- 
erage throwaway  containers.  He  also  noted 
that  a  100-watt  light  bulb  burning  for  12 
hours  consumes  the  waste  e<julvaleni  energy 
of  a  single  b€>er  or  soft  drink  can 

Such  energy  savings  or  wast«  come  about 
because  each  reusable  container  ts  used 
again  and  again.  The  SCAT  Etudy  used  iO 
trips  of  one  reusable  bttlie  versus  the  manu- 
facture bottling,  transportation  and  dispoeal 
of  10  cans  or  crie-way  b<,)ttles  The  equiva- 
lent waste  per  throwaway  is  4195  BTTTs 

The  equivalent  waste  of  60  mlillon  throw- 
away containers  used  in  the  USA  in  1973  Is 
equal  to  the  energy  equivalent  provided  by 
5,5  mUHon  gallons  of  gasoline  per  day  .\n 
area  such  as  Montgomery  County  with' 568,- 
000  residents  and  204  mtUlon  throwaways  per 
year  could  share  the  equivalent  ^f  18,770  gal- 
lons of  gasoline  savings  per  da\ 

.Mumlnum  is  the  moet  energy  wasteful 
-container:  each  can  representing  6,9  ozs,  of 
ga.vjli:.e  waste  Over  10  billion  aluminum 
containers  we.'e   used   last   year 

The  study  shi-wed  rt-cycltng  Is  not  a  viable 
alternative  Each  16  oz  glass  bottle  that  Is 
recycled  adds  10"  to  Its  equivalent  energy 
budget. 

The  nation's  total  throwaway  container 
e<iuivalent  energy  waste  Is  equal  U:.  the  out- 
put of  10  Calvert  CllS  fdze  nuclear  power- 
plants 

The  study,  baaed  on  those  done  by  Dr. 
Bruce  Hannon  of  the  University  of  Illinois 
and  the  Midwest  Research  Institute  tinder 
contract  to  EPA.  utilizes  equivalent  energy 
units  of  British  Thermal  Unite  utilized  by 
the  mining,  manufactxirlng,  bottling,  distri- 
bution and  disposal  of  one-way  and  reusable 
beer   and   soft   drink  containers 

Although  the  total  process  uses  energy 
from  electricity,  oil,  and  gasoline  sources 
the  equivalent  BTU's  are  expressed  in  gallons 
of  gasoline  and  barrels  of  crude  oU  to  sur- 
face the  equivalent  energy  waste  In  terms 
nirrently  used  to  describe  the  nation's  en- 
ergy shortage. 

Thus  the  131.000  barrels  of  gaaoUne  per 
day  is  the  BTT  equivalent  of  throwaway  en- 
ergy waste  and  would  require  278.000  barrels 
of  crude  oil  to  make  that  muoh  gasoline 
under  existing  refinery  operations  TTie  con- 
versions to  an  all  returnable  system  wotild 
save  the  energy  equivalent  of  131.000  barrels 
of  gasoline  each  day  The  savings  would 
actually  come  In  the  use  of  leas  oU.  el^c- 
tnclty   as   well   aa   gasoline. 

SCAT  also  presented  the  results  of  two 
studies  •hat  ."showed  a  niove  tc  a:,  a,!;  re- 
turnable 65-stem  would  acttially  mean  a  job 
Increase    .    .    .    that   Is   more   net    Jobs   with 


more  people  reqtUred  In  the  bottling  and 
retail  outlets  and  lees  In  the  can  and  bottle 
manuTacttiring  companies. 

Intobmation    RxsonacK   Krr;    "Thi    E.veegt 

Crisis  amd  thi  Theowawat" 
(Prepared     by     Sensible     Citizens     Against 

Throwaways      (SCAT)       Crusade      for      a 

Cleaner    Environment) 

aASIC  FACTOBS  I — ENXKGT  WASTE  OF  THXOWAWAT 
BXVZKACK   COHTAnrxXS 

1972  Production  of  Beverage  Contalnen 
Soft  Drink  Containers:  BilUon 

Cans 16,4 

Throwaway    bottles 13.  fl 

Returnable    bottles . 17.0 


Total    47.0 

Beer  Containers: 

Cans 21.7 

Throwaway    bottles 8.3 

Retiwnable    bottles ..     8,8 


Total    36.7 

Total    83.7 

Less  Retumables 23.8 


Net    Throwaways 59.9 

AnalysU  0/  throwtttoay  beverage  oontaineri 
by  type 

BiUion 

Aluminum  Cans 10.4 

Steel  and  Bimetal  Cans 27.7 


Subtotsl  Cans.-. 
Boitles 


8«.  1 

21.8 


Total    Throwaways 


59.9 


Throwaway  beverage  containers  accounted 

for  71,5°^  cf  production  In  1972,  Throwaway 
cans  represented  45,5  >-  of  the  total,  and 
throwaway  bottles  contributed  26"^  of  the 
total. 

Facts  about  beverage  oontatner  iLtage 

The  national  avera^-e  consumption  of  scft 
drinks  is  one  drink  per  person  per  day.  There 
has  been  an  annual  growth  rate  In  recent 
years  of  1 ",  per  year  m  leisure  beverage 
consumption. 

Sources:  Beverage  Ind:istry  Annual 
Manual,  1973-73  VS.  Industrial  Outlook.  UJS. 
Department  of  Commerce,  1973, 

BASIC     r  ACTORS     n 

U£.  Population:  308  Million 
Montgomery  County    568  T^.ousar.d 
Energy*    (millions    Btu    1000    gals,    of    bev- 
erage, 12  oz. . 
Returnable  trips. 

6 - 48.  8 

10    28.8 

19    17.8 

Bimetal  can 56.7 

One  way  glass 70. 8 

Aluminum  can 98.5 

Weighed  average  throwaway  Energy  Waste 

over: 

10  Trip  Returnable" — 41&8  Equivalent 
BTC  container 

19  Trip  Returnable — 4fi33  BqulvaJent  BTD,' 
container, 

10  Trip — 8476  Mega»-att8  year, 

19  Trip — »9e2  Megawatts  year 

With  10  trips  sav.r.g  is  4,33  oz.  gasoline/ 
container 

w:th  19  trips  savings  Is  4.&4  OK.  gmaollns/ 
,~ontalner 

1 25  CNX)  BTU's  eqtilvalent  gaUoQ  of  gaso- 
line 

i  kilowatt  hour==3413  BTD 

90  bUUon  throwaways  year 

10  trip  ret'urnabie  u^  equals  131.000  BBiy 
day  crude  oil  saving 


•Phase  2  Midwe«t  Research  Institute  aOaif 

mder  EPA  C<.;. tract. 
••10  Trip  used  In  all  calculaUona. 


i215S 


18  txtp  retuTTuible  use  equmla  148.000  BBL/ 
day  crude  oU  8a ring. 
Washington  Area; 
400.000  homes  heated  w,  gas  be*t 
150.000  oil. 
25,000  electricity. 
Crude  oil  BBLf-47%  gasoline. 
17.5.  oil  we — Throteaway  beverage  container 
waite 
ENOly   XJS.  OU    Us*— 17.000.000  BBL's. 

Proj«ct»d  8aTlng^»> 
60  mph.  200-350,000  BBL,.Q^^ 
Leoa  Air  Flights.  120.000. 
— 3*  +  3'  Home.  560.000. 
— 10<^  Cbmmerclal.  400.000. 
Car  PooU.  780.000 
Auto  Tune-up  6  months.  140.000. 
Cold  Water  Detergents.  180.000. 

All  returnable  system  savings* 
Dept.    of   Interior— Office    of  Energy   Con- 
9«-?ation.  John  Olbbona — November  23    1973 
131.000  BBL"s  TJay  10  Trtp. 
140.000  BBL's/Day  19  Trip. 

tmCTS  ON  EMPIOYMENT  OF  AN  ALL  REUSABLE  BEVERAGE 

CONTAINER  srsnin— co«uiHi«i 


CX)NGRESSIONAL  RECORD  — SENATl 


December  20,  1973 


Efflptoynicnt  (ttMuundt) 

Rwmbi* 
•Mt4 

'"<*'n'^  Prwert    RtusaM*        "dTdH 

T""*! 336. 800      351.  500       337.100 

S'J.*!'* iits      r«6ji       nil 

Malt  liquor w  i  c  i  »  ci  i 

*»'*«rt^«o» :::::     sie     759      "J 

Glass    container    maogfac- 

-•»""«-• 26.1  12.7  10.« 

Basic  mMait 15.3 

RaOilrocary 19.6 5i"i sofo 

T<«»' 336.  a  351. 5  337~1 

Airtraft  aarniiifs  undar  tadi 
o«  tf>t  prooosed  srsttms  tor 
an  of  tti*  indntnas  iiK 
iratvad  in  Dtvaraft  eon- 
tatncf  ^tckimnt  mi  div 
"*•«»• '"»7l $7.6«        J7.338  $7,343 

Soaret:  "Tha  8«rarace  Contains  Pro6l«ii    Analyse  and 
Ta^flor  H.  and  Malli(sn.  Paal  r  .  R«»irc»i  Tnjngle  institMta. 

BoTTtKs  kin  Enxxct  T.kct  Suxrr 

FCZUMnfAST 

A  tremendous  amount  of  energy  w«st«  Is 
associated  with  "one-way"  throwaway  beer 
and  soft  drink  beverage  eontamers.  Two  com- 
prehensive studies  have  been  performed  on 
the  reUtlve  energy  Unpact  rerultlng  from 
use  of  throwaway  c»nt«tners  compared  to 
returnable  bottles,  one  by  Dr  Bruce  Hannon 
of  the  Englneenng  Department  at  the  Uni- 
versity of  nilnols  and  the  other  by  Uldwest 
Hesearch  Institute  under  contract  to  the  En- 
vironmental Protection  Agency.  In  the  cal- 
CTiUttons  below  dau  from  the  lOU  analysis 
are  used,  although  Dr  Hannon's  figures  would 
provide  eaaentlaUy  the  same  resulu.  Here 
s^e  sclentlflc  findings  are  translated  Into 
everyday  t«rma.  This  analysis  is  not  exact  but 
is  intended  as  a  -ballpark"  estimate,  and 
where  assumptlor..s  had  to  t>e  made  they 
were  in  every  case  conaervauve  (leading  to 
lower  than  actual  apparent  energy  waste) 
so  the  energy  squander  is  actua.'ly  more 
severe  than  described  below. 

"AVZZaCX  THBOWiWAT  coifTAUna"    ;atc) 

The  Va  Department  of  Commerce  reports 
that  S3  7  billion  containers  for  beer  and  soft 
drinks  were  manufactured  m  tiie  UB  In 
1073: 

23  A  biUion  returnable  glsM  bottlsa. 


28.0  bUUon  bimetal  and  steal  (mostly  bi- 
metal) throwaway  cans. 

21.5  billion  throwaway  glass  bottles. 

10.4  billion  aluminum  throwaway  cans. 

All  containers  are  assumed  here  to  be  12 
OK.;  this  aasumpUon  will  provide  a  lower  en- 
ergy waste  esUmate  than  Is  the  real  case.  The 
throwaways  wUl  be  compared  to  returnable 
bottles  with  10  trips  per  bottle  lUe.  also 
conservative  since  national  average  is  24 


•To  gM   131;000  BBLs  of  OMotlne  would 
require  378.000  BBL  cruds. 


Container 
d«scii|>tK>n 


lO-trip  Bi-         Glan 

return-      matallic        t^row-    Alunumim 
aM«  CM  away  can 


Eneriy  consonMd 
par  usa  (Btu't). 

Enaro  whim 
compartd  to 
lO-tnp  return- 
aM«(par  con- 
tainat)  (Btu  1). 

Nuffltxr  ot  liMi 
in  1972 
(blltiortj) 

TotaJ  ancriy 
caosiwiplion 
(trillion  Btu  j).. 


2.212 


23.8 


iLi 


S.31S 


3.104 


28.0 


6.610 


4.39« 


21.  S 


1418  142.1 


1. 953 

6.741 
10.4 
93.1 


Thus  energy  consumed  by  the  SO  9  Billion 
throwaways  U  384  Trillion  BTU's  and  from 
this  comes  a  definition  of  an  "Average  Throw- 
away Container"  (ATC),  The  average  energy 
requirement  for  throwaways  is  6410  BTU/ 
Contalnsr.  and  so  the  average  waste  per  unit 
is  (8410-iai3»=4198  BTU  Container.  It  Is 
Reasonable  to  define  the  national  "Average 
Throwaway  Container"  (ATC)  as  a  unit 
which  wastM  4198  BTU  of  energy  for  every 
usage  when  compared  to  a  10  trip  returnable 
bottle. 

i  Average  Throwaway  Container  (ATC)  — 
4198  Btu 

304  Million  ATC's  (Montgomery  County 
Annual  Consumption ) —856  5  btlUon  Btu. 

59  9  Billion  ATC's  (USA  Annual  Consump- 
Uon)— 351  trUlion  Btu. 

CASOLOrS    ««ClVAI.rNT    WASTB 

Gasoline  contains  a  stored  heat  content 
of  U5.000  BTU/OaUon  =  976.6  BTU/os.  Today 
we  hear  about  barrels  of  oil;  1  barrel  =  43 
gallons.  It  takes  2  13  barrels  of  oU  to  make  1 
barrel  of  gasoline.  The  energy  contents  above 
are  computed  in  terms  of  heat  content  of 
gasoline  or  barrels  of  oil  required  to  manu- 
facture t>arrels  of  gasoline. 

13  oa  Average  Throwaway  Container 
(ATC)  =43  o«  Gasoline. 

This  amazing  result  means  that  everytlme 
someone  consumes  a  12  oz  "dlspoeable "  con- 
tainer, be  wastes  on  the  average  the  energy 
content  stored  in  4.3  cm  gasoline. 

Who  would  fill  a  tjeverage  container  36% 
full  of  gasoline  before  discarding  It? 

Wastes  for  specific  container  types  are 
compared  to  a  10  trip  retximable  l)ottle : 

13  oz  Bimetallic  Can=3J  os  Oasolln«= 
26.5%  full  can. 

13  oe  Throwaway  Glass  Bottle  =  4.5  ox  Oas- 
olln«  =  37  5%  full  bottle. 

12  oz  Aluminum  Throwaway  Can  =  8  0  am 
Gasoline  =  57  5%  full  can. 

Montgomery  County  Equivalent  Waste  = 
6.8B  Million  Oalloos  OiMoUne  Tear. 

Montgomery  County  Equivalent  Waste  = 
18.770  Gallons  Gasoline  Day  which  are  m^^, 
from  950  Barrels  Oil/Day. 

Montgomery  County  Equivalent  Waste= 
44«  Barrels  GasoUne/Day  which  are  made 
from  908  Barrels  Oil  TJay. 

USA  Equivalent  Waste  =  3.0  BlUlon  GaUons 
Gasoline/ Year. 

USA  Equivalent  Wasts  =  5.5  MUlion  Oal- 
loas  Oasollns   Day. 

USA  Iqtilvalent  Waste  =  131.000  BarreU 
Oasoltne/Day  which  are  made  from  378.000 
Barrels  Oil  Day 

By  redtidng  highway  spaed  llmiu  every- 
where In  th«  USA  from  65  MFH  to  60  MPH 
tbs  expected   national  oU  saving   is   300.000 


BattvIs  OU/Day  Slnoe  sUirtxl  e.ieryg  content 
of  oU  la  roughly  equal  to  that  of  gasoUna. 
"•  ■••  that  the  energy  content  of  131.000 
Barrels  OU  Day  is  thrown  away  In  the  form 
of  "disposable  convenience  oontalners  '.  and 
it  la  obvious  that  thin  wnexjr  has  become  criti- 
cal slnoe  66%  of  e;.erKy  saved  by  everyone 
driving  slower  U  UteraUy  thrown  away  by 
the  use  of  "dlspoeable  convenience  con- 
tainers." It  can  also  be  considered  that 
131.000  Barrels  of  GasoUne/Day  (the  stor«d 
«»rgy  equivalent  of  all  throwaways)  ar« 
manufactured  from  378.000  Barrels  OU/Day. 

HOC8«    HBATTNO    IQUTVALXlCr    WASTT 

Washington  Gas  Light  Co  reports  that  a 
three  (3)  bedroom  brick  house  has  an  annual 
heating  requirement   of   103   MUllon   BTJJ's. 

Montgomery  County  Annual  Throwaway 
Waste    856  6  BlUlon  BTU=8400  Houses. 

USA  Annual  Throwaway  Waste»361  Trll- 
Uon  BTU=2.6  MUUon  Homes 

Thus  8400  houses  In  Montgomery  County 
could  be  comfortably  heated  using  the  energy 
represented  by  throwaways  In  Montgomery 
County  alone;  thU  is  about  5%  of  the  home 
heating  requirement  (annual)  in  the  county. 
ReOect  on  this  as  you  turn  down  your 
thermostat. 

HOT  WATXa   HKATXNQ 

Suppose  you  take  a  hot  bath  Ui  a  tub 
44  feet  long.  3  feet  wide  with  water  1  foot 
deep  Tiie  heat  required  to  warm  this  67  5 
gallons  of  water  from  65°  P  to  110°  P  is 
25.245  BTUs.  which  can  be  represented  by 
the  energy  waste  of  6  Average  Throwaway 
Containers  (ATC's). 

The  heat  stored  in  60  gallons  of  water  (an 
average  home  hot  water  tank)  heated  from 
60*  P  to  150°  P  Is  50.000  BTU,  represented 
by  12  ATC's. 

nXUMINATION 

A  100  watt  light  bulb  burning  for  over  13 
hotu's  consumes  the  same  energy  represented 
by  the  energy  waste  of  a  single  13  oz  ATC 
(4198  BTU). 

■QUIVAI.XMT    El^CTUCAI.    WASTX 

Dr  PrlscUla  Laws,  Professor  of  Physics  at 
Dickinson  CoUege,  calculated  that  the  USA 
annual  throwaway  energy  (t>everage  con- 
tainers only)  could  provide  all  residential 
electrical  power  for  an  affluent  olty  of  75 
Million  people  Scaled  down  to  Montgomery 
County  annual  container  waste,  this  would 
serve  35,800  people. 

Time  Magazine  (November  26.  1873)  re- 
ported the  following  energy  consumption 
costs  for  an  average  American  home:  (Note: 
1  kw-hr=3413  BTU  =  0.813  ATC's) 


Itsm 

Annsal 

eneriy 

(kilowatt- 

taiin) 

Equivalent 
ATCt 

AnerateUS  househoM 8,000 

Electric  toothbrush 'fl.S 

ElectiK  carving  knila 8 

Garfcage  tlrjpojal 30 

Retnjeritor  (iversn  14  fti) I,  I37 

Relnaetitor  (tron-ffee  17  It^ 2.008 

Color  TV  (3  6  hi  day) 440 

Black  and  white  TV 120 

Air  conditioner 1.440 

Automatic  dottles  waslier_ 103 

Hot  xatar  heater 4,219 


•6,500 

0.4 

6.5 

24 

>2S 

1.632 

358 

96 

1,170 

84 

3.430 


*  Throwaway  containera. 

aZCTCLXNG  COMPASXS  TO  kZUSX 

RecycUng.  defined  in  the  present  oont«xt 
as  return  of  a  glass  Ixrttle  for  sorting,  crush- 
ing, melting  and  reman ufaoture  into  another 
( Identical )  bottle,  tends  to  save  glass  but  not 
energy  In  the  reuse  process  the  tx>ttle  Is 
cleaned,  not  remade,  at  a  considerable  energy 
and  financial  saving  The  following  t*ble  fee 
16  oc  bottles  Illustrates  this  concept;  the 
"J***  are  from  the  Dr.  Hauinon  study,  con- 
sidered at  o«xly  eight  return  trips. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42759 


Type  use 


Eeerjy 

consumed 

pet  uje  (per 

bottle)  (Btu) 


Energy  wasted 

compared  to 

rvlurn«l)la 

t>ottle  (per 

bottle)  (Btu) 


Returnable 

Throwaway 

Recycle 

2.400 
7.260 
7,825 

0 
4.860 
5.425 

Two  results  emerge  from  the  above  table; 
recycling  bottles  does  not  save  energy,  and 
everytUne  a  16  oz.  throwaway  bottle  Is  con- 
sumed 4860  BTU's  of  energy  are  wasted.  The 
energy  penalty  against  recycle  compared  to 
throwaway  arises  because  It  actually  requires 
more  energy  to  sort  out  the  glass  from  mixed 
trash  in  many  locations  than  to  mine  virgin 
glass  from  a  single  location.  In  the  manu- 
facturing process  the  overwhelming  energy 
expenditure  occurs  with  the  melting  and 
forming  process,  common  to  every  throw- 
away and  recycle  usage.  With  reused  bottles 
this  melting  Is  not  repeated  prior  to  every 
usage,  hence  the  significantly  lower  energy 
consumption. 

OTHXB    OONSEQtrENCXS    OF    UNNECKSSABT 

COhfStriCPTtOK 

Only  energy  costs  relating  to  throwaway 
bottles  and  cans  have  been  considered  above. 
Other  factors  which  wotild  enter  Into  a  total 
Impact  analysis  concurrent  with  resource 
squander  would  include  Increased  atmos- 
pheric emission,  Increased  waterborne  wastes 
Including  thermal  pollution,  more  committed 
water  volume  for  processing,  increwed  post- 
consumer  solid  waste.  Increased  Indtistrlal 
solid  waste,  dangerous  and  unsightly  Utter, 
more  strip  mines  to  provide  more  virgin  raw 
materials,  increased  encroachment  and  stress 
on  wUdllfe  habitats.  spoUation  and  ruination 
of  lands.  Increased  ananclal  costs  to  the  con- 
sumer, and  of  course  less  avaUable  fuel  with 
which  to  energize  higher  priority  activities. 

■QUTVAI-rKT    WASTX    OF    NtJCLXAB    POWXBPLANT8 

The  USA  national  energy  waste  due  to  the 
throwaway  system  Is  251  TrUllon  BTU/year 
which  equals  8500  Mw  (Megawatts).  Each 
imlt  of  Calvert  Cliffs  Nuclear  Power  Plant  In 
Maryland  has  a  maximum  electricity  gen- 
erating c&paclty  of  880  Mw,  and  so  the  na- 
tional energy  waste  represented  by  throw- 
away leisure  beverage  containers  Is  equiva- 
lent to  about  ten  (10)  very  large  nuclear 
power  plants. 

Stop  SQtrAiTDCRrNo  Ekergt  on  Thsowawats 

Washington,  D.C,  November  29.  1973. — 
More  than  nine  million  people  could  be  sup- 
plied with  electricity  for  a  whole  year  by 
the  energy  wasted  during  1972  through  use 
of  throwaway  containers  rather  than  re- 
turnable bottles  for  soft  drinks  and  beer, 
according  to  the  Crusade  for  a  Cleaner  En- 
vironment. 

CCE  also  calculates  that  the  energy  wasted 
by  the  throwaway  bottles  and  cans  last  year 
was  the  equivalent  of  approximately  1.7 
bUllon  gallons  of  gasoline — enough  to  op- 
erate nearly  1,700,000  automobUes  averaging 
10  miles  per  g:allon  for  a  typical  driving 
year  of  10,000  miles. 

Finally,  based  on  the  needs  of  a  three-bed- 
room brick  home  in  the  Washington,  DC. 
area.  CCE's  figures  show  that  approximately 
two  mUlion  homes  in  the  Middle  Atlantic  re- 
gion could  be  hea'ed  wv.h  natural  gas  for 
an  sight-month  heatini;  seftson  by  the  energy 
wasted  on  throwawavs  1:.  ;972 

"Through  hlRhpr  pn^«5  paid  for  beverages 
In  throwaway  rental ners  and  Utter-removal 
costs,  the  American  c-o-.!i'imer  has  been  sub- 
sidizing the  beer  and  srif?  drink  industtles" 
concentration  in  »  -<~&:ied  'convenience' 
packaging  for  several  years  "  CCE  President 
V.  B.  Norton  said  In  r^leash'-ip  the  figures. 
•TIow  it  is  clear  that  this  subsidy  has  In- 
cluded the  sacriflce  of  precious  energy  sup- 
plies as  weU.  The  situation  will  grow  even 

CXIX 2693— Part  33 


more  critical  if  major  beverage  companies 
continue  with  plans  to  package  their  prod- 
ucts In  throwaway  plastic  bottles  made  from 
scarce  petroleum." 

Norton,  who  Is  also  president  of  Royal 
Crown-Dr.  Pepper  Bottling  Compsiny  of  Cor- 
pus Chrlstl,  Texas,  explained  that  whUe 
throwaway  containers  are  wasters  of  energy, 
"returnable  bottles  conserve  energy  by  func- 
tioning as  their  own  recycling  system.  Each 
returnable  travels  the  natural  closed  loop 
from  container  manufacturer  to  bottler,  to 
retailer,  to  consumer,  and  back  agalr  (or 
reuse  an  average  of  16  times. 

"With  fuel  shortages  brownouts  and  gaso- 
line rationing  rea!  posslbUltles.  American  in- 
dustry and  consumers  must  change  habfts 
of  energy  consumption  to  "waste  not,  want 
not.'  I  call  on  my  fellow  bottlers  to  set  an 
example  for  the  nation  by  returning  to  the 
returnable  system  of  dlstrlbuton  for  soft 
drinks  and  malt  beverages,"  Norton  con- 
cluded. 

The  Crusade  for  a  Cleaner  Environment  Is 
a  non-profit  educational  organization  work- 
ing to  Increase  public  awareness  of  the  role 
of  throwaway  beverage  containers  In  Amer- 
ica's Utter,  solid  waste  and  energy  problems. 

TmowAWAT  BrvntAGX  Containxiis  Wastx 
Entrgt 

TTie  packaging  of  beer  and  soft  drinks  In 
approximately  60  bUllon  throwaway  contain- 
ers rather  than  in  rettimable  bottles  wasted 
211.6  trillion  British  Thermal  Units  of  energy 
during  1972. 

That  energy  wastage  Is  the  equivalent  of: 

18  J  bUUon  kUowatt  hours  of  electricity — 
enough  to  supply  the  electrical  needs  of  9.1 
million  relatively  affluent  Americans  for  a 
whole  year: 

1.69  bUllon  gaUons  of  gasoline — enough 
to  operate  1.690.000  automobiles  averaging 
10  mUes  per  gallon  for  a  typical  driving  year 
of  10,000  mUes; 

Enough  energy  to  heat  approximately  2 
mUlion  three-bedroom  brick  homes  in  the 
Middle  Atlantic  region  with  nattiral  gas  for 
an  entire  eight-month  heating  season. 

WhUe  throwaway  containers  are  tremen- 
dous energy  wasters,  returnable  bottles  con- 
serve energy  by  functioning  as  their  own 
recycling  system.  Each  returnable  bottle 
travels  the  natural  closed  loop  from  contain- 
er manufacturer  to  bottler,  to  ret&Uer.  to 
consumer  and  back  again  for  reuse  an  aver- 
age of  15  times. 

With  fuel  shortages,  brownouts  and  gaso- 
line rationing  real  ponlbUltles.  American 
industry  and  consumers  mtist  change  their 
habits  of  energy  consumption  to  "waste  not. 
want  not."  The  perfect  place  to  begin  Is  by 
returning  to  the  returnable  bottle  system 
of  distribution  for  soft  drinks  and  malt 
beverages. 

SOTTRCZS 

System  Energy  and  RecycUng:  A  Study 
of  the  Beverage  Indtutry.  by  Professor  Bruce 
M.  Hannon,  Department  of  General  Enel- 
neerlng  and  Center  for  Advanc«d  Computa- 
tion. University  of  Illinois.  December  1971 

An  SeolOffical  Approach  to  Solid  Wartf 
Management,  by  Dr.  PrlscU'.a  Laws  Prrfesaor 
of  Physics.  Dickinson  CoHepe    Februarr  1973 

Beverage  Industry  :97T  197?  Annual 
Manual.  New   Tork.   September    1972 

Washington  Gas  Light  Company,  Consum- 
er Education  Services.  Washington,  DC, 
November  1973. 


ORDER  or  BUSINESS 


qONCLUSION  OF  MORNTNO 

BUSINESS 

Mr.  ROBERT  C  BYRD  Mr.  President. 
I  ask  unanimous  consent  that  morning 
business  be  closed. 

The  PRESIDrs'O  OFFICER  Without 
objection,  It  is  so  ordered. 


Mr.  ROBERT  C.  BYRD.  Mr.  President, 
I  ask  unanimous  consent  that  the  ma- 
jority leader  and  the  minority  leader 
each  be  allowed  to  speak  out  of  order 
for  not  to  exceed  15  minutes. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr.  HUGH  SCOTT.  Mr.  President, 
first  of  all  I  would  like  to  ex'i«nd  my 
thanks  to  the  dLstingviished  ma;  only 
leader  for  his  very  kind  expression.'^  of 
goodwill  and  approbation  and  for  what 
he  has  said  about  me  and  about  the 
distinguished  assistant  minority  leader. 
We  in  the  Senate  know  that  the  majority 
has  the  responsibility  and  obliKation  for 
legislation  and  it  could  involve  far  more 
stringent  application^  of  ;ts  aulhonty 
and  responsibility  than,  m  fact,  it  does 
Through  the  tolerance  of  the  majority 
leadership  we  in  the  minority  en.ioy  the 
benefit  of  bems  constantly  consulted  and 
we  gladly  extend  our  cooperation  m  re- 
turn in  order  that  the  work  of  the  legis- 
lature may  be  expedited  At  the  same 
time  we  are  well  aware  that  the  dis- 
tinguished majority  leader  ha.-;  the  kind 
of  personality  which  makes  cooperation 
with  him  a  pleasure  as  well  as  a  privilege 
and  we  do  appreciate  and  understand 
the  fact  that  he  extends  to  us  these 
opportunities  which  a  more  rigid  appli- 
cation of  the  realities  of  the  situation 
might  not  encompass 

I  am  sure  that  the  majority  leader 
would  like  to  have  some  reference  made 
to  the  fact  that  we  in  Congress  found 
a  way  to  apply  the  25th  amendment  to 
the  (fonslitution  effectively,  and  for  the 
first  time,  m  the  way  we  selected  a  new 
Vice  President,  Particularly  I  would  like 
to  praise  the  work  of  the  Committee  on 
Rules  and  Administration,  chaired  by 
the  Senator  from  Nevada  Mr,  Ca.vnon) 
and  the  ranking  member,  the  Senator 
from  Kentucky  'Mr.  Cook  ' .  a=  well  as 
those  members  of  the  committee  who 
worked  so  hard  and  conducted  the  most 
exhaustive  mvestigation  in  the  hislory 
of  this  country  into  the  quaiificj-iUons  of 
any  person  pror>osed  fcr  F«iersl  office 

Mr  MANSFIELD  Mr  President,  wlD 
the  Senator  vield  at  that  point? 

Mr    HUGH  SCOTT    I  yield, 

Mr  MANSFIELD  I  concur  whole- 
hea-'tedJy  with  the  distinguished  Repub- 
lican leader  I  am  delighted  «-ith  the 
work  done  by  the  Committee  on  Rules 
and  .administration,  of  whach  both  the 
Republic&n  leader  and  the  assistant  Re- 
publican leader,  as  weU  as  the  deputy 
Democratic  leader  are  members  I  think 
that  it  was  a  fair  investigation,  and  a.s 
the  Senator  said,  the  most  thoroui^  in- 
vestigation of  any  Vice  Pre*^ident  m  the 
annals  of  the  history  of  the  Republic 

Furthermore,  I  think  we  are  ex- 
tremely fortimate  to  have  a  m.an  of  the 
caliber  of  OERALr  Ford  a5  our  Vice  Presi- 
dent I  must  say  it  does  my  heart  good 
to  see  him.  sit  m  the  Presiding  OfScer's 
chair  as  the  President  of  the  Senate  Sc 
that  L<;  another  as*et  which  I  thir.k  ,fhould 
be  mentioned  as  indicating  the  scope  of 
the  work  of  the  Senate  and  Congress 
this  year 

Mr,  HUGH  SCOTT  I  thank  the  dis- 
tinguished   majority    leader.    It    is    cer- 


42760 


tainly  heart«iin«  to  see  the  Vice  Presl- 
dent  devoting  so  much  of  his  time  to  his 
primary  duty,  that  oT  presiding  over  the 
Senate  and  lending  his  aid  and  counsel 
to  us.  We  certainly  welcome  him  In  that 
capacity  With  regard  to  the  handling 
of  the  Foreign  Assistance  Act  recently  I 
am  obliged  to  express  my  appreclaUon 
lor  the  able  manner  In  which  that  bill 
was  handled  by  the  distinguished  Sena- 
tor from  Minnesota  (Mr  Hijmpkrit  He 
Is  a  friend  for  whom  I  have  the  great- 
est admiration  and  I  think  he  handled 
*  very  dlfflcult  bUl.  along  with  the  dis- 
tinguished Senator  from  Vermont  (Mr 
Ancxw •.  with  tact  and  abUlty  it  enabled 
us  to  work  out  a  matter  which  has  norm- 
ally ended  up  In  continuing  resolutions 

Sb^ti        "™^    ^  '^°  ^^^  ^  P*-^  "^* 

Mr.  MANSFIELD.  And  It  Is  well  de- 
served. 

I  am  delighted  that  the  President,  if  he 
ahjeady  has  not  done  so.  has  indicated 
wimngness  to  sign  the  HEW  appropria- 
tion bill,  which  liJcewise  has  been  Stttag 
T^fK?  t?"'*^"^'^  resolution  basis,  which 
itnink  Is  ver>-  poor  parliamentary-  pro- 
cedure for  Congress  to  continue 
H.S?"  T^?^  ^^'^  So  do  I  The  Presl- 
t^^J  ?^^J^  '^*  Record,  signed  yes- 
^I^^  ^I,J^^^  appropriation  bill,  i  am 
i^Ju  '^"*  ^"^^  "  ^  s^d.  he  indicated 
he  will   sign  the  HMO  blU.   the  man- 

^!^"  "i'^?;^'*  ^^*  °*«^^^  °f  Columbia 
home  rule  bill.  also.  ^  ^^^u"- 

rJ  ^^  °°'  ''*°*  ^  '^t  ^e  occasion 
P^  without  noting  that  It  Is  not  neces- 
sarily a  fact  that  I  would  agree  with 

^'rTT"'"^  i^  "^  '"^^^^^y  leldTr-,,  re^ 
port.  I  will  have  a  minority  report  before 

^ntt^M^™  £"*  certainly  we  are  not 
contentious  about  It.  We  do  have  differ- 
ing points  of  view  I  do  not  think  anyone 

S^  if  ''?!^^'^  ^'^'^P*  every  wise  and 
long-headed  Individuals,  particular  ex- 
perts, forwaw  the  extent  of  the  energy 

Oreat  Britain  where  the  situation  Is 
^ree  or  four  times  as  bad  as  it  Is  here. 
Praise  for  the  Senators  who  handled  the 
energy  leglslaUon  is  well  deserved 

I  am  glad  we  are  not  getting  into  a 
qiiarrel  with  the  President  as  to  whS 
foresaw  and  who  did  not  foresee  because 
I  think  neither  Congress  nor  the  Presi- 
dent could  possibly  have  realized  the  full 
tS^,   «^<5    ««ent   of   this   crisis.   The 

^T^  ^^^  '-"  "^**  ^^  fl°d  »  '^av  to 
end  it  add  free  ourselves  of  dependence 
on  outside  sources  of  eoersy 

Si^J^''  ^^  expenditure  of  public 
funds  because  while  Congress  has  made 
•ome  very  Important  cuts  in  recommen- 
oaaeos.  we  have  to  remember  that  every 
cent  spent  by  the  executive  branch  is  first 
appropriated  by  Congress  and  if  we  are 
confronted  with  budget  deficits  It  U  be- 
«u««  in  past  sessions,  as  well  as  the 
PTttent  session,  we  have  appropriated 
Hind*,  had  ongoing  authorlzatlflos  pin.- 
Itoe  expenditures,  and  so  on.  afl  of  whMi 
mean  Congress  and  the  President  share 
to  t^eapproprlatlng  procedure.  When 
toe  President  spends  money,  he  spends 
moo^Congress  told  him  to  spend,  and 
the  President,  in  spite  of  his  effort  to  Im- 
Poimd  oertato  funds-^^d  I  note  now 
Uiat  he  has  relewed  tiK»e  impoundmenu 


CONGRESSIONAL  RECORD-SENATE  December  20.  197S 


in  certain  ar«as_in  the  long  run  Is  com- 
pelled by  Congress  to  spend  the  money 
Congress  wants  him  to  spend 

.r,^  L*^.i°  °°  "^^  ^^^  contentious 
in  making  the  point,  and  I  do  again  con- 
gratuate  the  distinguished  majority 
leader  for  his  report,  for  his  evenness 
of  temper  and  disposition,  for  his  kind- 
ness to  us  and  the  privilege  he  extends 
to  us  which  enables  us  to  return  our  co- 
operation to  him.  I  do  thank  the  distin- 
guished majority  leader 

Mr^  MANSFIELD.  Mr.  President,  be- 
fore I  conclude  there  are  a  few  other 
things  I  could  add.  of  course.  I  could 
refer  to  the  hearings  on  the  part  of  the 
Committee  on  the  Judiciary  in  the  case 
Of  our  colleague.  Senator  Saxbe,  but  in 
the  Interest  of  time  I  wUl  add  some  of 
these  matters. 

I  conclude  with  the  observation  that 
whUe  the  Senate  Is  usually  referred  to 
as  an  uncontroUed  Senate,  we  should 
emphasize  the  fact  that  this  Is  a  Senate 
maae  up  of  both  Democrats  and  Republi- 
cans and  we  operate  on  the  basis  of 
equality,  mutual  understanding,  and  co- 
operation. 


PRENTISS  M    BROWN 


Mr  ORIFFIN.  Mr.  President,  a  num- 
ber of  my  colleagues  wUl  recaU  with  af- 
fection and  high  regard  one  of  Michi- 
gan's most  distinguished  sons.  Prentiss 
Marsh  Brown,  who  served  In  the  Senate 
In  the  years  from  1936  to  1943.  They  will 
be  saddened,  as  I  was.  to  learn  of  his 
death  yesterday  at  his  home  In  St 
Ignace.  Michigan,  at  the  age  of  84. 

In  a  public  service  career  which 
spanned  three  score  years.  Senator 
Brown  was  an  effective  and  articulate 
spokesman  for  the  people  of  Michigan 
and  the  Nation.  He  won  naUonal  rec- 
ognition in  connecUon  with  price  control 
legislation  and.  after  leaving  the  Senate 
he  served  as  the  second  administrator 
of  the  Office  of  Price  Administration  in 

His  career  began,  as  It  ended,  in  that 
part  of  Michigan  he  loved  so  weU  A  very 
able  and  respected  practicing  lawyer  he 
served  Mackinac  County  as  Its  pro8e<iut- 
ing  attorney  from  1914  to  1926— and  as 
city  attorney  of  St.  Ignace  from  1916  to 
19.8^  F>or  many  years  he  was  a  member 
of  the  State  Board  of  law  examiners 
Before  coming  to  the  Senate,  he  served 
two  terms  In  the  X3S.  House  of  Reo- 
resentaUves. 

When  he  returned  home  after  his  tours 
of  service  In  Washington,  he  turned  his 
attenUon  to  the  long  felt  need  for  a 
bridge  to  span  the  Straits  of  Mackinac 
and  Join  together  the  two  peninsulas  of 
Michigan.  Under  his  tireless  leadership 
the  dream  of  such  a  bridge.  5  miles  long 
and  costing  $96  million,  became  a  real- 
ity. It  stands  now  as  one  of  the  engineer- 
ing masterpieces  of  the  worid— and  as 
an  enduring  monument  to  the  vision  and 
persenrerance  of  Prentiss  Brown  who 
served  as  a  member  and  chairman  of  the 
Macitlnac  Bridge  Authority  from  the 
thne  the  structure  was  completed  until 
his  death 

He  believed  In  poliUcal  as  weU  as  pub- 
Uc  service  and  took  a  leading  role  in  the 


DemocraUc  Party  in  Michigan.  Six  times 
he  was  chairman  of  his  party's  SUte 
wnvenUon  and  often  was  his  party's 
standard  bearer  in  elections,  some  that 
were  won  and  some  that  were  lost 

But  In  victory  and  defeat  he  always 
Had  the  respect  of  Republicans  as  well 
as  Democrats  throughout  the  State  As 
an  IndlcaUon  of  the  esteem  In  which  he 
was  held.  Gov.  George  Romney.  a  Repub- 
lican, proclaimed  June  18.  1964  "Pren- 
tiss Brown  Day"  in  recognlUon  of  his 
life  of  service. 

Mra.  Griffin  and  I  Join  with  a  host  of 
friends  In  Michigan  and  throughout  the 
Nation  In  expressing  our  most  sincere 
sympathy  to  Mrs.  Brown  and  the  line 
famili-  of  PrenUss  M.  Brown 

Mr.  President.  I  ask  unanimous  con- 
sent the  two  newspaper  articles  be 
printed  at  this  point  In  the  Record 

There  being  no  objection,  the  articles 
were  ordered  to  be  printed  in  the  Record 
as  follows: 

(l^m  the  Detroit  New».  I^cember  20.  1973) 

Printim    Brown    ritm    SAXtnujAT;    Kx-U5 

Senator 

nf*'Ti.'^!/°' /"''"*'  **    ^'^^-  '«"»*' 

U.8.  Senator  from  Michigan  and  guldlna 
™,'^^'^'*  construction  of  the  Mackin^ 
Str«itfl  Bridge.  wUI  be  held  at  2  pjn  .  Satur- 
day in  the  United  Methodist  Church  of  St 
Ignace.  St    Ignace 

Mr.   Brown  died  yesterday  of  a  heart  at- 
tack In  hu  St.  Ignace  home.  He  wu  84 

Mr     Brown    served    as    chairman    of    the 

^nTuA-,  ^''t""  '^"^»'™-"y  "ntu  his  death 
In  194.3  he  headed  the  Office  of  Price  Ad- 
ministration   for    nine   months,   one   of    the 
toughest    administrative    war-time    Job.    In 
the  country.  •" 

Brown  proudly  bore  the  title  "country  Uw- 

from  cities  as  far  away  as  Milwaukee.  Chi- 
cago and  Cleveland  to  his  office  m  th;  tiny 

n^;';:^'^^'   ^*    ^'^*«    '^•-   birth   pliS,^ 
In  the  Mackinac  rtralU  f'»«.. 

rn^T"  "'"°'  '^-  '^'  *^«  followed  his  father's 

SmX,ri9^^"^'"    ^-^^    ''— '^^ 

Although    a   graduate   of   Albion   College 

«^^   k"^".  "*'"    """*'^    '*"   school     In 
stead   he  studied   In  his  father's  office   and 
was  admitted  to  the  bar 

t^nLJ^K?  ""•  Michigan  Democratic  party 
tapped  him  to  run  for  Congrwa  from  the 

xn  1936  Michigan  Gov.  Prank  D  Pltarer- 
ald  appointed  him  an  interim  US.  Se^or 
Out°rr  t^  '^*  ^'""^  °'  ^"  •'»'"«'  Cov^n^ 
was  elected  and  served  In  the  Senate  h« 
The'^H'^r  *^  "  °'^'  °'  '""^  a>oet'ahu"^n  on 

the  top  Democrat  In  1942  and  the  Waahlng- 
ton  Po«  de3crlb«l  him  a.  "th.  most  typi«^- 
ly  American  senator."  Jf^' 

t.n^"^"*  ^*  w^tlme  New  Deal  Admlnlstra- 
fnrVl!..  *^  '^  °'**°  •  *«"»''•  "hooter 
Mn.^  °'  Rooeevelt  and  helped  line  up 
bipartisan   support   for  his   legislation 

He  was  innuentlal  m  getting  the  Federal 
pepoBit  Insurance  legislation  passed  This 
aw  requued   federal  employes   to  pay  suie 

S^  ,'*'*•  *''''  •'•'*  «'^">y«»  to  pay 
federal  income  taxes 

He   U   aUo   credited   with   getUng   legUla- 

.^'^.^"T^  ""*'  ^"'^^  *»•"  °"'  depoiltor. 
^the  aftermath  of  the  Great  Depre^ion 
«*lch  forced  some  b*nks  to  cloee  their 
<loon  and  many  d.poaltor.  to  Iom  their  life 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


42761 


But  hU  oloee  relationship  with  the  Whlt« 
HouM  cooled  In  1B37  when  he  oppoeed  the 
prMldent'a  plan  to  "pack  the  Supreme 
Court  with  six  additional  Justices  who  pre- 
•umably  would  be  friendly"  to  Boosevslt'a 
programs. 

In  1042  Mr.  Brown  was  defeated  for  his 
Mnate  seat  and  returned  '^  private  law 
practice.  Besides  wrvlng  I'  v^a.-?  as  chair- 
man of  the  board  for  Detruii  Etli^jii  Co.,  he 
was  president  of  the  Arnold  Transit  Co.: 
chairman  of  the  Detroit  branch  Federal  Be- 
»rve  Syrtem  and  vloe-praaldent  of  the 
Paulding  Sugar  Co.  Alao.  be  was  director  of 
the  Oreat  Lakes  Sugar  Co.  and  a  member 
of  the  AdTlK>ry  Council  for  the  U.S.  Depart- 
ment of  Commerce. 

He  Is  survived  by  his  wife.  Marlon:  four 
daughters.  Mrs.  Marlanna  Rudolph.  Mrs. 
Ruth  BvaahevBkl.  Mrs.  Bart>ars  Lalng  and 
Mrs.  Patricia  Wataon:  three  sons,  James. 
Prentl«  M.  Jr.  and  Paul;  33  grandchUdren 
and  five  great-grandchildren. 

fProm  the  Detroit  Free  Press,  Dec.  20.  1078] 
PRkNTiss  Broww  Dim  at  84;    Bio  Mac 

Is  His  MoiriTitxNT 
Prentiss  Brown,  former  UJB.  Senator  from 
Michigan  who  wm  r  major  force  behind  con- 
struction of  the  Macktaac  Bridge,  died 
Wednesday  at  his  home  Ln  St  Igna' e  He 
wa.  84. 

Servioes  will  be  held  at  2  p.m.  Saturday  at 
the  Dodaon  Funeral  Home  In  St.  Ignace 

A  native  of  that  city,  Mr.  Brown  was  grad- 
uated In  1911  from  Albion  College  and  he 
later  attended  the  University  of  nUnola. 

He  began  the  practice  of  law  with  his 
father  In  1014  and  Mrved  for  12  years  as 
prooecutlng  attorney  of  Mackinac  County. 

Long  a  leading  figure  in  Michigan's  Demo- 
cratic Party,  he  was  the  first  Democrat  elected 
to  Congrea.  from  the  nth  District  that  In- 
cluded parts  of  his  native  Upper  Peninsula 
and  the  northern  tip  of  Michigan's  Lower 
Peninsula. 

He  served  in  the  House  from  1932  to  1936 
and  then  was  elected  to  the  Senate,  where 
he  served  from  1938  to  1942,  when  he  lost  the 
election  to  Homer  Ferguson. 

In  1943,  Mr.  Brown  was  named  director  of 
the  Office  of  Price  Administration. 

In  May  1044,  he  was  named  chairman  of 
the  board  of  the  Detroit  Edison  Co..  retiring 
from  that  position  In  1964. 

But  Mr.  Brown,  who  had  strong  family  tie. 
In  Michigan's  Upper  Peninsula,  conelderwd 
that  his  most  important  achievement  was  the 
opening  in  June  1067  of  the  Mackinac  Strait. 
Bridge  (Big  Mac) .  at  the  Strait,  of  Mackinac. 
It  link.  Michigan's  upper  and  lower  penin- 
sulas, previously  connected  by  a  fleet  of 
ferry  l)oats.  He  was  chairman  of  the  Macki- 
nac Bridge  Authority. 

The  climax  to  his  efforts  to  secure  fln&nc- 
Ing  for  the  structure  came  In  1954,  when 
Joseph  King,  president  of  Union  Securities 
Corp  ,  presented  Mr.  Brown  with  a  check  for 
•OflmlUlon 

Then  Gov  George  Romney  proclaimed 
June  18,  1964.  "Prentlas  Brown  Day"  in  rec- 
ognition of  his  life  of  service  to  his  native 
state. 

Not  only  did  Mr  Brown  secure  financing 
for  the  Mackinac  Bridge  but  he  later,  with 
former  Gov  Murray  Van  Wagoner,  fought  off 
attempts  by  the  State  Highway  Comml«lon 
to  take  over  the  bridge. 

The  bonds  that  financed  the  bridge  are  be- 
ing retired  out  of  the  revenue  from  its  tolls. 
So  successful  has  the  bridge  proved  that  Its 
toll  ha.  been  reduced 

Mr.  Brown  is  survived  by  hi.  wife,  Marlon; 
four  daughters,  Mrs.  Marlann  Rudolph.  Mrs. 
Ruth  Evaabevskl.  Mrs  Patricia  Wataon  and 
Mrs.  Bruce  Lalng;  thr««  son*.  James,  Pr«n- 
tUs  M.  Jr.  and  Paul.  33  grandchUdren  and 
five  great-grandchUdren 


Burla:  wli;  be  in  lakeside  Cemetery.  81 
Ignace  Tributes  m&y  be  made  ^o  the  United 
Methodist  Ch •.;.•-")■.    .f  .«t  Ignace 


MES8.^0ES    FROM    THE   PRESIDENT 

Messages  in  wntlng  from  Ihe  Presi- 
dent of  the  United  States  were  commu- 
nicated to  the  Senate  by  Mr  Heiting,  one 
of  his  secretane' 


REPORT  ON  OCCUPATION.>SlL 

skvt:ty  and  health— message 
from  the  president 

The  ACTING  PRESIDENT  pro  tem- 
pore (Mr.  Allkn)  laid  before  the  Senate 
a  message  from  the  President  of  the 
United  States,  which  with  the  accom- 
panying report,  was  referred  to  the  Com- 
mittee on  Labor  and  Public  Welfare.  The 
message  is  as  follows: 

To  the  Congress  of  the  United  States: 

It  was  just  three  years  ago  that  I  signed 
into  law  the  Occupational  Safety  and 
Health  Act  of  1970.  Since  that  time,  we 
have  made  significant  progress  toward 
our  goal  of  a  safe  and  healthy  workplace 
for  every  worker  in  America. 

Today,  I  am  submitting  the  second 
President's  Report  on  Occupetlonal 
Safety  and  Health,  outlining  the  activi- 
ties which  have  taken  place  under  that 
new  Act  In  calendar  year  1972.  The 
achievements  of  that  year  indicate  that 
the  goals  of  the  Act  are  becoming  reali- 
ties. 

For  example,  many  States  have  de- 
veloped or  are  now  In  the  process  of  de- 
veloping their  own  occupational  safety 
and  health  plans  In  accordance  with  the 
Act.  As  these  plans  are  approved  and 
carried  out,  enforcement  will  begin  to 
shift  from  the  Federal  Government  to 
the  States  with  no  loss  in  effectiveness. 
Because  public  cooperation  is  vital  to 
the  success  of  the  program.  I  am  gratified 
by  the  support  which  has  been  extended 
to  this  program  by  the  news  media,  by 
the  professions,  and  by  the  general  pub- 
lic. I  am  particularly  pleased  to  note  the 
cooperation  and  support  which  Industry 
and  labor  organizations  have  given  to 
these  efforts. 

The  breadth  and  complexity  of  the 
Occupational  Safety  and  Health  Act  have 
inevitably  made  It  the  focal  point  for 
controversy  and  criticism.  I  believe,  how- 
ever, that  such  criticism  can  be  helpful 
as  we  work  to  improve  our  programs 
and  as  we  modify  and  update  its  stand- 
ards and  regulations. 

This  year's  report  includes  preliminary 
data  from  the  first  occupational  Injury 
and  illness  survey  conducted  under  the 
new  record-keeping  procedures  required 
by  the  Act.  This  data  will  be  helpful  in 
providing  a  basis  upon  which  to  .ludge 
the  effectiveness  of  our  efforts  to  reduce 
fataliUes. 

This  report  also  reflects  the  added  em- 
phasis which  has  been  placed  on  occu- 
pationsd  health  during  the  past  year  Re- 
search In  this  area  has  Increased  in  re- 
sponse to  a  growing  awareness  c!  the 
tragic  toll  taken  by  eir.pioyee  exposure 
to  toxic  substances  and  unhealthful 
physk^al  environments. 


M-Ao  Included  Is  the  first  report  of  the 
Occupational  Safely  and  Health  Re- 
view Commission,  a  wholly  Independent 
agency  created  by  the  Act  t<;  adjudicate 
citations  and  proposed  penalties  Issued 
by  Li;e  Department  oi  Labor  when 
they  are  contested  by  employers  and 
employees. 

This  detailed  account  provides  a  use- 
ful overall  view  of  the  program  and  its 
accomplishments  to  1972  It  ofTers,  too,  a 
glimpse  of  what  lies  ahead  a5  we  v»ork  to 
assure  safe  and  health.''^:  w  .rKir.j;  ccr.d.- 
tions  for  all  of  our  cotm try's  worLmg 
men  and  women. 

Richard  Nixon. 

Thb  Wam  Hottse,  December  20. 1973. 


EXECUTIVE  MESSAGES  REFERRED 

As  in  executive  session,  the  Presiding 
Officer  (Mr.  Nunn)  laid  before  the  Sen- 
ate messages  from  the  President  of  the 
United  States  submitting  simdry  nomi- 
nations, which  were  referred  to  the  Com- 
mittee on  Armed  Services. 

(The  nominations  received  today  are 
printed  at  the  end  of  Senate  proceed- 
ings.) 


EMERGENCY  SECURITY  ASSIST- 
ANCE ACT  OP  1973 

Mr.  MANSFIELD  Mr  Presider.t  I  a.sk 
imanlmous  consent  that  the  Senate  ttim 
immediately-  to  the  consideration  of  Cal- 
endar No.  624,  H  R  11088 

The  PRESmiNQ  OFFICER.  The  bill 
win  be  stated  by  title. 

The  legislative  clerk  read  the  bill  by 
title,  as  follows : 

A  bill  (H.R  11088)  to  provide  emergency 
security  assistance  authorlzaUons  for  Israel 
and  Cambodia. 

The  PRESIDLVG  OFFICER.  Is  there 
objection  to  the  request  of  the  Senator 
from  Montana' 

There  beLng  no  objection,  the  Senate 
proceeded  to  consider  the  bill. 

Mr.  FULBRIOHT  Mr  President.  I 
have  some  amendments  to  offer,  but  I 
assume  the  manager  of  the  bill  'Mr. 
HcTjPKREY  will  wish  to  open  with  a 
statement    I  am  prepared  to  proceed! 

Mr.  HI'MPHREY  Mr  President.  I 
have  just  a  brief  stat.ement 

The  PRESIDLNG  OFFICER  The  Sen- 
ator from  Minnesota 

Mr  HUMPHREY'  Mr  President,  this 
country  has  one — and  only  one — abiding 
goal  in  the  Middle  Ea<;t  Tc  bring  about 
a  just  and  lasting  settlement  In  that 
anguished  region  of  the  world,  so  that 
.■^rabs  and  Jews  cAn  come  to  hve  to- 
gether peacefully,  in  a  spirit  of  mutual 
acceptance  and.  perhaps  eventually,  even 
■m  a  ."jpint  of  cooperation  and  mutual  a<^- 
.sistance  The  path  to  that  settlement 
lies  tn  negotiation — it  is  the  only  way — 
;vi.d  t^-imorro'*-,  for  the  first  time  in  the 
nistor>'  of  this  long  and  bitt«r  conSict 
the  two  sides  will  actually  sit  dow::  to  be- 
gin  t±ie   process   of   negotiation 

This  negotiation  will  not  be  easy,  for 
the  participants  will  represnu  al.  ■:  LJie 
emoUons.  the  deeply  heia  beiiels  ar.c  the 
animosities  that  have  fir«i  uhe  Middie 
East   conflict   lor   25   years     Mic.y    .^*re 


12762 


CONGRESSIONAL  RECORD  —  SENATE 


died,  and  there  Is  bitterness  and  hatred 
on  both  sides.  Our  Secretary  of  State. 
Dr.  Kissinger,  has  had  to  work  diligently 
to  avert  the  complete  breakdown  of 
these  negotiations  even  before  they  have 
begun:  and  when  the  negotiations  be- 
gin tomorrow,  it  will  be  a  testimonial,  at 
least  In  part,  to  his  efforts. 

Even  more,  however,  the  besrinning  of 
that  negotiation  tomorrow  will  be  testi- 
mony to  the  emergence  of  what  may  be 
a  new  willingness  on  the  part  of  the 
various  adversaries  themselves  to  seek 
the  path  of  concUlatlon  rather  than  of 
further  conflict. 

On  the  eve  of  this  negotiation,  it  falls 
upon  us  In  the  Senate  to  ask.  ''Vhat  can 
we  do  to  support^to  assist— to  further 
the  success  of  this  conference  of  nego- 
tiation, a  conference  from  which  we  hope 
will  ari.«e  the  beginning  of  a  new  era  in 
the  Middle  East?  The  answer  to  this 
question.  Mr.  President,  lies,  I  submit, 
in  the  bill  now  before  the  Senate. 

These  negotiations,  like  all  negotia- 
tions, can  only  succeed  if  both  sides  are 
able  to  bargain  from  a  position  of  rela- 
Uve  security.  If  there  Is  an  Imbalance  in 
the  strengths  of  the  opposing  partici- 
pants, then  those  who  feel  weak  will 
ineviubly  be  forced  to  act  from  fear  and 
apprehension.  whUe  those  who  feel 
stronger  will  be  encouraged  to  escalate 
their  demands  to  a  level  that  will  only 
exacerbate  the  fears  of  those  who  feel 
weak.  Military  imbalance  in  negotiations 
Is  a  formula  for  failure  in  negotiations 
Our  goal,  then.  If  we  seek  to  foster  the 
success  of  these  negotiations,  must  be  to 
support  the  maintenance  of  a  mllltarj- 
balance.  This  bUl  before  us  now,  Mr 
President,  provides  the  means  to  achieve 
that  objective 

Both  before  and  during  the  recent  war 
the  Arab  combatants  received  substan- 
tial military  and  economic  assl.stance 
from  the  wealthier  Arab  States  and  from 
the  Soviet  Dmon.  With  the  cessation 
of  hostilities,  that  assistance  continued— 
so  that  Arab  strength  is  even  now  in- 
creasing steadily.  On  the  Israeli  side,  a 
similar  process  of  military  and  economic 
restoration  is  underway.  Private  contri- 
butions from  all  over  the  world  are  flow- 
ing Into  Israel,  compensating  in  some 
measure  for  the  heavy  toll  which  the  war 
exacted  on  that  small  nation.  But  with- 
out additional  Government  assistance 
to  Israel,  ijiere  is  the  dangerous  possi- 
bility that  a  serious  imbalance  could 
soon  develop  in  the  comparative 
strengths  of  the  adversaries. 

It  is  important  to  emphasize  that  even 
before  this  recent  war  Israel  was  already 
carrying  a  tremendous  economic  burden 
as  she  sought  to  provide  for  her  own 
defen.^e  She  was  receiving  no  grant 
miliUr>-  asslsUnce  from  the  United 
States  or  any  other  nation,  and  her  tax- 
payers were  paying  the  highest  rates 
of  any  In  the  world 

I  ask  unanimous  consent  at  this  point 
to  have  a  statement  which  I  have  had 
prepared  relating  to  Israels  foreign  ex- 
change debt  and  taxation  be  printed  at 
this  point  in  the  Rxcowj 

There  being  no  objection,  the  sUte- 
ment  was  ordered  to  be  printed  in  the 
Rtco»i).  as  follows : 


I«rm«lU  had  to  go  dMply  into  dabt  to  n- 
n»nce  defeiue  and  refugee  reMtUement.  The 
following  ubie  ihows  Urmel'e  riaing  foreign 
exchange  debt  from  1971  to  1873  The  1974 
flgtires  repreeent  the  estimated  effect  If  the 
taa  bUJion  minury  aMtstanoe  U  extended 
on  a  loan  baela  or  on  a  grant  basis. 


December  20,  197S 


linel'i  fortim  Mditnn  d«bt  1971-74 


fin 


irtip  Mditnn  i 
mibeatofdata 


irt) 


1974   1J74 
1971   1J72  1973 1  fT^n   Iom" 


E<t«n«l  (M)|(end 

nl!*"    .       3.*30  4.M1  4.904  5. 4«7  7  M7 

JnnMj  **«  .,fy,t,.            S3J  M7  705  »0  « 940 

Tota^  importj.... 3,115  3,360  5.345  5  »0  5  KO 

T'«»«««<»rt» 1.912  2,a5  2.625  2  930  2930 


/ii,l^**'?"j?!)  »>-000.000.000  ».N  b*  du«  on  Military  S<l«i  Act 
(120-4iaY)  cr«dTts,  mosthr  in  Ftbrutry  1974 

.i^LS^^-^'^l^^'^  •i«ef«»ncy   mHiUry  Mustinc*  it 
tnefiOM  en  a  grant  bins. 

.JJ'J;'^  J2.200  0CO.000  enwrftiKY   mililaiy   auistanct  is 
•xtandad  on  a  loan  Imsis  /  »•»»">.•  ii 

nJil'S*  lUTl'  '^^!'  '"""  *r  "<"  "•'  ''"^'  »•  "lowjnc*  IS 

madt  for  additional  intertst  o/pnncipal  on  this  account 

U  Israel  must  uArow  for  the  additional 
weapon*  she  is  acflulrlng  this  year,  her  debt 
service  would  rlae^  ae  indicated,  to  SfriO  mlJ- 
Itou  (assuming  a^Moesslonary  lnt«r»st  rate 
of  two  percent)  or^lTW  blUlon  (If  the  in- 
terest rate  Is  six  percent  This  is  an  astro- 
nomical burden  beyond  the  capacity  of  an 
already  supertaxed  and  superlndebted  econ- 
omy. 

Mr.  HUMPHREY.  Mr.  President,  to 
that  already  severely  taxed  economy  the 
recent  war  dealt  a  heavy  blow,  and  even 
m  its  aftermath,  during  the  current  pe- 
riod of  tenuous  cease-flre.  about  23  per- 
cent of  Israel's  work  force  remains  mo- 
bilized and  normal  patterns  of  pioduc- 
tion  conunue  to  be  disrupted.  In  short 
Israel  has  been  weakened  and  conUnues" 
to  be  weakened,  at  least  as  regards  to  her 
ability  to  pay  for  the  means  of  her  own 
defense. 

That.  Mr.  President.  Is  where  this  bUl 
comes  In.  It  provides— at  the  key  mo- 
ment in  recent  Middle  East  history— that 
Israel,  as  a  main  participant  in  negoUa- 
Uons  which  hold  the  potential  to  pro- 
duce a  lasting  peace,  wiU  not  be  forced 
to  negoUate  from  a  position  of  weak- 
ness. This  biU  wUl  allow  Israel  to  nego- 
tiate as  an  equal  and  to  give  and  take  at 
the  bargaining  table  on  the  basis  of  con- 
cUlaUon  and  accommodation  rather 
than  because  she  U  without  strength  or 
support. 

Of  the  $2.2  billion  provided  in  this 
bUl.  approximately  $l  bUllon  will  be 
used  to  cover  the  costs  of  mUlUry  equip- 
ment sent  to  Israel  during  the  recent 
fighting.  The  remamlng  |l.2  bUllon  will 
be  available  to  the  President  to  use  as 
he  deems  necessary  to  see  that  Israel 
remains  in  a  situation  of  military  parity 
with  her  Arab  neighbors  during  the  pe- 
riod while  these  delicate  and  probably 
prolonged  ncgotiaUons  move  ahead 

It  is  not  inevitable  that  all  of  the  mon- 
ey wUI  be  spent.  But  it  is  important  that 
It  be  available^to  insure  continued 
parity  and  also  as  a  demonstration  that 
the  United  States  does  not  hitend  to 
waver  In  support  of  a  democraUc  aUy 
whose  existence  and  strength  are  directly 
cormected  to  our  own  national  interest. 
Mr.  President,  in  \iew  of  congression- 
al action  in  recent  years  to  reassert  the 


role  of  the  legLslative  branch  In  the  field 
of  foreign  affairs — an  effort  which  I  con- 
tinue to  support  wholeheartedly— it  may 
be  Important  to  explain  Just  why  the 
Senate  F\)relgn  Relations  Committee  felt 
it  necessary  and  proper  to  approve,  sd- 
most  unanimously,  a  bill  which  gives  such 
broad  discretionary  power  to  the  Pres- 
ident in  the  expenditure  of  a  large  sum 
of  money.  Let  me  sUte  it  clearly:  The 
broad  discretionary  power  which  this  bill 
allows  the  President  does  not  represent 
an  implicit  decision  by  the  committee  to 
reverse  the  recent  trend  of  stronger  con- 
gressional control  in  the  area  of  foreign 
policy.  What  it  does  represent  is  a  long- 
standing recognition  by  the  committee 
that  there  are  some  areas,  on  some  oc- 
casions, in  which  significant  Presidential 
flexibility  is  required.  The  committee  be- 
lieves that  the  period  ahead  is  such  an 
occasion. 

Since  the  recent  outbreak  of  hostili- 
ties, the  committee  has  held  a  number  of 
discussions  with  Secretary  Kissinger  in 
executive  session  concerning  the  fight- 
ing and  the  coming  negotiations;  and 
from  these  discussions,  the  committee 
has  developed  a  sense  of  confidence  that 
the  administration  and  the  committee 
share  the  same  basic  goals  for  US  pol- 
icy In  the  Middle  East.  With  this  agree- 
ment on  goals  clearly  defined,  the  com- 
mittee was  prepared  to  approve  a  bill 
which  allows  the  President  the  flexibility 
necessary  if  those  goals  are  to  be  pur- 
sued effectively. 

In  sum,   Mr.  President,  this  bill  ac- 
complishes  three  Important  objectives. 
Pir't,    it    buttresses   the   war-weakened 
Israeli  economy  and  provides  that  coun- 
try with  the  continued  means  to  defend 
itself  against  an  adversary  larger  and 
potentially  stronger    Second,  it  sends  a 
clear     signal— to     Arabs     and     Israelis 
alike— that  the  United  States  will  remain 
steadfast  in  support  of  the  continued  sur- 
vival of  that  smaU  nation.  Third,  this 
bUl  provides  the  President  of  the  United 
States  and  the  Secretary  of  State  with 
the   authority   and   the   flexlblhty   they 
need  in  order  to  maintain  a  steady  Mid- 
east military  balance  and  thus,  to  create 
conditions  conducive  to  success  In  the 
difficult   negotiations   which   lie   ahead. 
This  bill  1-  a  carte  blanche  neither  to  the 
Israelis  nor  to  the  President.  Rather  It 
is  the  granUng  of  a  tool,  .so  that  both 
the  nation  of  Israel  and  the  President 
can  move  confidently  and  effectively  to- 
ward a  goal  that  we  all  share— the  goal 
of  a  Just  and  lasting  peace  in  the  Mid- 
dle East — a  peace  that  will  serve  the  in- 
terests not  only  of  the  people  and  na- 
tions in  that  region,  but  of  people  and 
nations  everywhere. 

Mr.  President,  it  is  our  hope  that  we 
will  be  able  to  proceed  with  the  consid- 
eration of  this  bill.  We  have  a  very  dif- 
ficult choice  to  make.  This  first  session 
of  the  Congress  is  going  to  complete  its 
work  In  the  next  day  or  two.  And  if  we 
want  this  bill  to  become  law  at  the  time 
the  negotiations  open  on  the  Mideast 
problem,  tomorrow,  then  we  will  have  to 
pass  this  bill  as  it  is.  If  we  pass  it  with- 
out amendment,  it  will  go  promptly  to 
the  President.  That  means  that  Secre- 
tary Kissinger,   as  he  meets  with  Mr. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42763 


Qromyko  tomorrow  as  a  cohost  to  the 
Midesist  Peace  Conference,  will  know 
that  the  Congress  of  the  United  States 
has  backed  him  and  has  backed  our 
Mideast  policy  In  an  effort  to  attain 
what  Is  the  goal  of  every  person  In  the 
Congress  and.  I  hope,  in  this  land — peace 
In  the  troubled  Mideast. 

Mr.  President,  I  yield  the  floor. 

Several  Senators  addressed  the  Chair. 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  Arkansas  is  recognized. 

Mr.  FULBRIOHT.  Mr.  President.  I  will 
yield  to  the  Senator  from  South  Dakota. 

Mr.  ABOUREZK.  Mr.  President,  I 
thank  the  Senator  from  Arkansas  for 
yielding. 

Mr.  President,  is  there  a  time  limita- 
tion on  the  bill? 

The  PRESIDING  OFFICER.  There  Is 
no  time  limitation. 

Mr.  HUMPHREY.  Mr.  President,  might 
I  ask  my  associates  and  colleagues  if  we 
could  arrive  at  a  time  limitation,  since  It 
would  expedite  our  work. 

Mr.  ABOUREZK.  Mr.  President,  I  do 
not  Intend  to  speak  for  long.  I  do  not 
know  of  anyone  else  who  does.  However, 
at  this  time,  I  say  to  my  distinguished 
friend,  the  Senator  from  Minnesota,  I 
will  object  to  any  time  limitation.  How- 
ever, we  will  not  take  veo'  much  time. 

Mr.  HUMPHREY.  I  thank  the  Senator 
from  South  Dakota. 

Mr.  ABOUREZK.  Mr.  President,  in 
testimony  before  the  Hou.se  Foreign  Af- 
fairs Committee  on  November  30,  Deputy 
Secretary  of  State  Rush  made  the  as- 
sertion that  the  purpose  of  the  legislation 
which  the  committee  is  considering  to- 
day "is  to  make  it  clear  that  the  military 
options  both  in  the  Middle  East  and 
Southeast  Asia  are  no  longer  viable."  I 
find  this  statement  extremely  ironic.  The 
real  purpose  of  the  legislation,  as  all  who 
are  the  slightest  bit  familiar  with  it 
know,  is  to  provide  the  administration 
mtisslve  amounts  of  money  to  cover  Is- 
raeli and  Cambodian  military  losses. 

It  does  logically  follow  to  me,  as  It 
does  to  Deputy  Secretary  Rush,  that  by 
replacing  Israeli  military  losses,  we  will 
somehow  3ffect  a  "transition  from  sui 
era  of  confrontation  to  an  era  of  nego- 
tiation." To  the  contrary,  what  the  latest 
war  has  clearly  shown  Is  that  our  policy 
of  fueling  the  Middle  Eastern  arms  race 
has  the  effect  of  facilitating,  rather  than 
preventing  the  outbreak  of  war  in  that 
area.  We  have  given  Israel  $1,122.3  mil- 
lion military  assistance  alone  since  1959. 
W^ave  sold  Israel  $993.15  million  worth 
mlUtary  equipment  alone  since  1950. 
we  have  provided  approximately 
100  million  of  "security  supporting  as- 
sistance grants"  in  1972  and  1973  to 
supplement  that  military  assistance. 
This  aid  totals  slightly  more  than  $2.2 
billion.  It  has  not  brought  peace  to  the 
Middle  East.  I  see  no  resison  to  believe 
that  doubling  that  amount  by  pouring 
another  $2.2  billion  in  military  equip- 
ment in  will  bring  about  peace.  The  ad- 
ministration has  failed  to  indicate,  to 
me  at  least,  Just  how  more  weapons  will 
serve  the  cause  of  peace  In  the  Middle 
East.  History  has  shown  that  the  weap- 
ons certainly  do  not  come  In  handy  as 
guarantors   of  peEu:e,    but  as  tools  of 


ever  larger  and  more  costly  wars  And 
each  war  seriously  endangers  world  peace 
as  we  saw  during  October  of  this  year. 

If  we  are  to  devote  enormous  financial 
resources  to  the  Middle  East,  it  would  be 
much  more  appropriate  to  concentrate  on 
achieving  a  peace  through  political 
rather  than  military  means.  Such  a 
peace,  in  order  to  be  viable,  must  assure 
that  the  rights  of  the  Palestinian  people 
are  recognized,  and  that  Arab  territories 
conquered  In  the  1967  war  are  returned. 
Israel's  security  cannot  result  from  her 
continued  existence  eis  a  fortress  state. 
The  October  war  has  shown  this.  How- 
ever, If  the  prerequisites  of  withdrawal 
and  recognition  of  Palestinian  rights  are 
realized,  peace  in  the  Middle  East  and 
security  for  all  the  nations  of  the  area 
can  become  reality. 

At  my  request,  the  Congressional  Re- 
search Ser\ice  of  the  Library  of  Congress 
has  prepared  a  chronology  of  the  Arab 
oil  embargo  which  took  effect  2  months 
ago,  and  which  Is  a  major  contributor  to 
the  energy  crisis  facing  this  Nation  and 
other  Western  countries. 

Mr.  President,  I  ask  unanimous  con- 
sent that  a  copy  of  the  chronology  be 
printed  in  the  Record  at  the  conclusion 
of  my  remarks. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

•  See  exhibit  1.) 

Mr.  ABOUREZK.  Mr.  President,  let  me 
share  with  the  Senate  some  of  the  infor- 
mation Included  In  the  chronology,  which 
leads  to  the  conclusion  that  the  oil  em- 
bargo could  very  well  be  the  direct  result 
of  our  continued  supply  of  military  equip- 
ment to  Israel.  On  October  11 — 

It  was  reported  that  during  the  course  of 
the  Organization  of  Oil  Exporting  Countries 
(OPEC)  meetings  In  Vienna,  Saudi  Arabia 
had  warned  the  United  States  that  if  arms 
were  sent  to  Israel,  the  Arab  states  would 
cut  off  qU  supplies. 

On  October  15— 

Robert  McCloskey  of  the  State  E>epartment 
said  the  resupply  of  weapons  to  Israel  had 
begun  on  October  14. 

On  October  16  the  Organization  of 
Arab  Petroleum  Exporting  Countries  met 
in  Kuwait  to  discuss  the  use  of  oil  as  a 
weapon  in  the  war. 

On  the  same  day — 

It  was  reported  that  Saudi  Arabia  had 
warned  the  Unlt«d  States  that  the  Arab 
states  would  cut  oU  production  by  10  percent 
If  the  United  States  continued  to  send  arms 
to  Israel.  The  report  stated  that  the  warning 
came  before  the  October  16  announcement 
cf  U.S.  arms  shipments. 

On  October  19,  Libya  embargoed  aD 
shipments  of  oil  to  the  United  States. 
On  October  20,  Saudi  Arabia  followed 
suit.  On  October  21,  Kuwait,  Qatar.  Bah- 
rain, and  Dubai  joined  the  embargo. 

It  is  my  guess  that  when  Secretary 
Kissinger  met  with  four  Arab  foreign 
ministers  In  Washington  on  October  17, 
he  wtis  Informed  of  the  consequences  of 
continued  massive  mllitarj-  supply  of 
Israel.  It  Is  surprising  that  despite  the 
Secretary's  indication,  at  his  news  con- 
ference of  October  12,  that  the  Soviet  re- 
supply  of  the  Arab  military  was  "fairlj- 
substantial"  but  did  not  constitute  a 
threat,  he  did  not  give  more  serious  con- 


sideration to  stopping  or  reducing  mili- 
tary shipments  to  the  Middle  East  in  the 
hope  of  discouraging  further  war  there. 

The  Eidministratlon  witnesses  who  tes- 
tified earlier  in  support  of  8.  2692  have 
made  it  clear  to  me  that  the  bill  gives 
the  administration  license  to  continue  its 
bankrupt  policy  of  feeding  the  Middle 
Eastern  flames  with  tanks  and  Phantom 
jets.  They  have  completely  ignored  the 
fact  that  the  effects  of  the  bill  will  in  all 
probability  be:  The  continuation  of  the 
military  impediment  to  peace  In  the  area ; 
and  to  make  the  embargo  a  lasting  and 
debilitating  reality. 

In  testimony  before  the  House  Foreign 
Affairs  Committee  on  December  3.  As- 
sistant Secretary  of  State  Sisco  referred 
to  approximately  $1.2  billion  of  the  ad- 
ministration's aid  request  which  has  not 
yet  been  expended  as  "Imponderables." 
It  is  ludicrous  that  the  Congress  should 
be  asked  to  permit  the  administration  an 
additional  $1.2  billion,  over  and  above 
the  $1  billion  cost  of  the  Israeli  resupply 
effort,  to  be  used  for  these  undisclosed 
imponderables. 

The  point  has  been  made  before,  but 
I  think  that  it  is  more  than  appropriate 
to  make  it  again  here,  that  this  Nation 
is  operating  under  a  terribly  distorted 
system  of  budgetary  priorities,  we  have 
consistently  refused  to  provide  adequate 
funds  for  social  programs  which  attempt 
to  provide  for  the  basic  welfare  of  our 
own  citizens.  Congressman  Lxi  Hamil- 
ton, chairman  of  the  Near  East  Subcom- 
mittee of  the  House  Foreign  Affairs,  re- 
marked on  the  floor  of  the  Hou.se  during 
the  debate  that  the  administration  wit- 
nesses who  testified  in  support  of  H-R. 
11088  could  not  Justify  the  $1.2  billion 
aid  request  for  imponderables  on  military 
grounds  alone.  He  noted  that — 

The  administration  seemed  to  be  saying 
that  a  lesser  appropriation,  say  11.7  billion. 
Instead  of  »2  2  billion,  would  Indicate  to 
Israel  a  lessening  of  our  commitment  to  rt 
or  that  such  an  appropriation  might  cause 
havoc  If  the  United  States  had  to  request 
another  special  appropriation  during  peace 
talks  which  will  hopefully  start  December  21, 
In  Geneva. 

I  cannot  accept  this  as  a  justification 
for  a  request  of  $1.2  billion  for  defense 
assistance  impxinderables.  and  I  do  not 
see  how  anyone  can. 

If  we  are  to  spend  an  additional  $1.2 
billion,  why  must  we  spend  it  on  im- 
ponderables? There  are  very  beneficial 
and  tangible  purposes  which  the  money 
might  otherwise  achieve.  There  are,  for 
example,  approximately  631,000  Ameri- 
can Indians  who  are  served,  and  served 
very  Inadequately,  I  might  add,  by  the 
Indian  Health  Service.  Because  it  Is  short 
of  funds,  the  Indian  Health  Service  Is 
presently  unable  to  attend  to  the  surgi- 
cal needs  of  over  20.000  persons  This 
flgxire  includes  more  than  13.000  children 
who  are  in  need  of  surric-al  repair  of  per- 
forated eardrums  .And  this.  I  mlg.ht  add. 
Mr.  President,  retards  their  ieaming 
ability  in  the  schools  they  go  to.  This 
human  suffering  Is  measurable,  not  im- 
ponderable. The  underfunding  of  the 
IHS  has  also  resulted  In  a  severe  short- 
age of  physicians,  overcrowded  and 
nmdown  health  care  deUvery  :actaues. 
Inadequate  emergency  care  facilities,  and 


427H4 


CONGRESSIONAL  R fCOR D  —  SENATE 


numerous    other    abominable    circum- 
stances. To  provide  adequate  health  caxe 
an  addlUonal  $40  million  Is  needed.  This 
$40  million  Is  a  mere  drop  In  the  bucket 
when   compared   with   the   $1.2    billion 
which  the  D  S.  Congress  will  undoubt- 
edly approve  for  expenditure  on  the  Im- 
ponderables of  the  Middle  Eastern  war. 
In  conclusion.  I  strongly  urge  the  Sen- 
ate to  reject  this  request  for  money  to 
fuel  the  Middle  East  arms  race.  To  ap- 
prove the  request  would  be  contrary  to 
the    interests    of    Middle    Eastern    and 
world  peace.  It  would  assure  our  country 
and  others  continued  energy  dilemmas 
Equally  Important  is  the  fact  that  the 
legislaUon  represents  another  effort  to 
waste  the  national  Income  in  the  pur- 
Bxxit  of  military  policies  which  have  been 
repeatedly  proven  to  be  bankrupt,  and 
to  do  this  at  the  expense  of  much  needed 
and  inadequately  funded  programs  which 
would    directly    benefit    the    American 
people. 

EXHTBIT    1 

Chbonouxst  or  rvx  Aub  Oh.  Embabgo, 
OcTOBD  1973 
(By  Clyde  R.  Mark.  Analyst  in  Middle  East- 
ern  Affairs.   Foreign   Affairs  Division    De- 
cember 10.  1973) 

October  6:  The  Saudi  Arabian  Minister 
of  Defence.  Prince  Sultan  Abd  aJ-Azlz  stated 
that  the  United  States  had  a&ked  Saudi 
Arabia  to  Increase  Its  production  of  crude 
ou.  but  that  Saudi  Arabia  had  refused  be- 
cause the  oU  Income  accruing  to  the  state 
was  already  sufficient  to  meet  the  countrys 
needs.  Prince  Sultan  also  said  that  Saudi 
Arabia  had  asked  the  United  States  to  cur- 
tall  Its  support  of  Israel,  but  that  the  United 
States  had  refused.  The  Prince  said  that 
Saudi  Arabia  would  not  break  diplomatic 
relations  with  the  United  States.  (The  sUte- 
ment  was  made  prior  to  the  outbreak  of 
Hghtlng  ) 

October  a:  Kgypuan  and  Syrian  troops 
attacked  IsraeU  held  po«Uons  la  the  Slnal 
and  Golan  Heights. 

October  6:  The  United  States  placed  the 
«th  Fleet  In  the  Mediterranean  Sea  on  alert 

October  7  Iraq  nauonallzed  the  Kxxon 
and  MobU  interests  in  the  Basrah  Petroleum 
Company. 

October  9  The  Kuwaiti  Cabinet  requested 
that  the  Minister  of  Oil  caU  a  meeting  of 
the  OTKanizatlon  of  Arab  Petroleum  Export- 
ing Countries  (OAPBC)  to  dlscxjse  the  role 
of  oU  as  a  weapon  In  the  war 

October  10:  Several  member*  of  the  Ku- 
wait  National  Assembly  said  that  Kuwait 
ahould  stop  all  oil  shipments  to  the  United 
States  and  withdraw  Kuwaiti  deposits  from 
American  banks. 

October  10  A  US  Government  spokesman 
«W^the    USS^.    was   rearming   Egypt   and 

October  11:  It  was  reported  that  during 
the  coune  of  the  Organization  of  OU  Export- 
tag  Countries  (OPEC)  meetings  in  Vienna 
Saudi  ArahU  had  warned  the  United  States 
that  If  arms  were  sent  to  Israel,  the  Arab 
states  would  cut  off  oU  supplies 

October  1 1  A  U  3  Government  spokesman 
•*id  that  the  United  States  was  saipplylng 
ammuniuon  and  mlasUes  to  Israel      *^       * 

October  13  At  a  press  oonXerenoe.  Secre- 
^  of  State  Henry  Kissinger  aald  that  the 
Soviet  resupply  of  arms  to  Egypt  and  Syrta 
was  fairly  substantial"  but  did  not  consti- 
tute a  threat. 

October  13:  The  United  States  said  It 
would  send  fighter  planes  to  Israel  to  replace 
losses  Uicurred  in  the  war  ^^-^^ 

0«ohsr  13:  It  was  reported  frT«  Damascus 
^KlngPaisai  oT  Saudi  Aratou  had  sent  a 
i««»  to  President  Wlxon  in  which  he  warned 


^t  If  the  United  States  rearmed  Israel. 
Saudi  Arabia  would  have  three  choices-  (i) 
break  relaUons  with  the  United  States!  (2) 
break  economic  relaUons  and  cut  all  eco- 
nomic tie*,  or  (3)  embargo  oU  shipments  to 
the  United  States.  k       '«  w 

r,A*^i2?^  '*•  K""***  announced  that 
r^r^  would  meet  in  Kuwait  on  October  18 
t^cUscuss  the  use  of  on  as  a  weapon  In  the 

Ni^«M  '*■  .,'^'  Secretary  Oensfal  of 
NATO  »ld  an  oU  stoppage  by  the  Arab  states 
would  come  very  dose  to  a  ho«.lle  act  - 
It^'^.^H  ii:  "  "^  "P««ed  that  Spain, 
n?^^  ^**^'^  ^^  restricted  the  ex^ 
w.i^''?*  petroleum  products  because  ofthe 
Middle  East  war. 

October  15:  Robert  McCloekey  of  the  State 

S^^^'^l^''*  ""•  resuppiy  of  weapons  to 
iJuael  had  begun  on  October  14 

Ku^t^  '"'  ^*  ^^^  '"••"°«  ^«^  ^ 

October  16:  U.S.  Government  offlciala  said 

that  Israel  would  receive  25  P^  Phantoms 

ArS^^  16:  It  was  reported  that  Saudi 
Arabia  had  warned  the  United  States  that  the 
Arab  states  would  cut  oU  production  by  10 
percent  IX  the  United  States  continued  to 
aend  arms  to  Israel.  The  report  stated  that 
the  warning  came  before  the  October  15  an- 

^**i°'"'  of  US.  arms  shipments 
de^'^n'^  Secretary  Kissinger  and  Presl- 
V^l  ^    .     T^  ^"^   »  delegation  of  four 
Arab  Foreign  Ministers,  headed  by  Umar  al- 
Saqqaf  of   Saudi   Arabia,   to  hear   the   Aiab 

.^J^*  ^  ^^*  **"""•  B*«  oonlllct 

end  of  the  OAPEC  conference  in  Kuwait 
suted  that  the  Arab  oU-produclng^^ 
would  cut  their  crude  oU  producl^n^y^ 
Percent  per  month  (beginning  with  the  Sep- 
^mberproductlon  Hgure)  untu  Israel  w^- 
drew   from    the   territories   occupied    in    the 

t^JT^    restored.    The   conunualque   said 

that  OU  would  not  be  cut  to  "mendly"  sta^ 

Ootober  18:  Saudi  Arabia  announced^t 

It  would  reduce  lU  oU  production  by  10  n-r- 

the  OAPEC  communique 
^^^u^el^^oU^^r^ic^oT^'^pS^LIJ 

^teTTteT'  "^  ^  «»^'p-Vu°T!S: 

by?0^pS^^^;   ^'^  ™»  '^  «"  P'^luctlon 
De?ent'7n;i^^  M"^  "'^  °"  producuon  by  6 

end   fht;^      "**"  °'  ^**^'°   ^"^   decided   to 
^^J.   .  '«r!«'°««'  »>th  the  United  8Ut« 

October  20:  Saudi  Arabia  embargoed  oU 
shipments  to  the  United  States 

October  20:  Algerta  cut  production  by  10 
^  .^'o*"**  »toPP«>  all  oil  lihlpments  to  the 
United  States  and  the  Netherlands 

J^^l  V    5"'***  ^*  production  by  10 

me?.^'the'^Unl^^tar^°^    '^   '^^- 

October  21    Bahrlan  stopped  oU  shlpmenu 

to  the  United  SUtes.  ■^jprnents 

October  21:  Dubai  embargoed  oU  ship- 
menu  to  the  United  States 

.^'^^^'J^    ^"^*  •^^'PP**  °ll  "lilpment 
to  the  Netherlands  k"«ui. 

,^°l^^'^    '^^  "topped  ou  Shlpmenu  to 
the  Netherlands  f"""—  to 

October  25:  Oman  barred  oU  shlpmenu  to 
the  united  SUtes  and  the  Netherlands 

October  25-  The  United  SUtes  placed  Its 
armed  forces  on  alert  because  of  whst  VB 
offlclaU  described  In  various  Urms  as  a 
Soviet  threat  to  send  lU  troops  to  the  Middle 


December  20,  197S 


October  38:  Saudi  Arabia  embargoed  oU 
shipments  to   the  Netherlands. 

October  29 :  It  was  reported  that  the 
Netherlands  had  stopped  issuing  export 
Ucenses  for  refined  oil  producU  to  be  sent 
to  the  United  States.  Sweden,  and  Norway 

October  30:  Bahr  ji  embargoed  oU  shto- 
menu  to  the  Netherlands. 

October  30:  Saudi  Arabia  said  It  would  re- 
duM  production  by   15  percent  per  month 

November  5:  It  was  reported  that  Prance 
Italy,  and  the  United  Kingdom  had  ordered 
ou  companies  operating  in  those  countries 
to  provide  the  full  amount  of  crude  oil  for 
their  markeu  or  the  companies  would  have 
their  operaUons  curtailed.  To  comply  with 
the  order.  oU  companies  operaUng  in  Pnuice 
Italy,  and  Brltam  would  have  to  shift  the 
full  amount  of  their  shortfall  to  other  na- 
tions and  could  not  prorate  the  shortfall 
among   all   their  contractors. 


Mr.  ABOUREZK.  I  yield  to  the  Senator 
from  Arkansas,  and  thank  him  for  yield- 
ing to  me. 

Mr.    FULBRIGHT.    Mr.    President.   I 
think  the  statement  of  the  manager  of 
the  bill  is  most  eloquent,  but  I  want  to 
make  one  or  two  comments.  I  think  the 
idea  that  there  is  great  urgency  to  pass 
this  measure  before  tomorrow  is  open  to 
question.  The  truth  of  the  matter  is  that, 
within  the  next  few  months.  lirael  can 
get  as  many  arms  with  this  bill  as  with- 
out it.  If  a  war  should  break  out.  She  has 
already  received  a  bUlion  dollars,  and 
she  can,  under  existing  authority,  draw 
down  another  $1.5  billion,  with  an  agree- 
ment of  repajlng  us  within  120  days.  So 
there  is  no  real  urgency  from  the  point 
of  actual  arms  requirements.  I  do  not 
believe    the    Senator    from    Minnesota 
would  say  they  could  not  get  any  anna 
they  need. 
Mr.  HUMPHREY.  I  agree 
Mr.   FUUBRIOHT.   The   point   he   la 
making  is  psychological.  He  says  the  bill 
will  strengthen  the  hand  of  the  State  of 
Israel  at  the  conference.  That  is  a  key 
question,  of  course,  and  I  .shall  discuss  it 
a  little  later.  I  have  arrived  at  an  en- 
tirely   diCTerent    conclusion,    because    I 
think  the  great  difficulty  is  going  to  be 
to  persuade  Israel  to  give  up  any  land. 
There  is  a  very  interesting  asses-sment 
In  todays  New  York  Times,  making  It 
quite  clear  that  at  least  some  Americans 
who  support  the  poUcy  of  the  present 
Oovemment   are   against   any   kind   of 
compromise  I  think  it  might  be  useful  to 
put  Into  the  Rkcord.  Mr.  President,  since 
it  Illustrates  the  attitude  of  one  of  the 
leading    organi^aUons    supporting    the 
Israeli    Government    In    this    country 
There  are,  I  believe,  some  30  or  40.  so 
this  is  one  among  many. 

I  ask  unanimous  consent  that  the  arti- 
cle be  printed  In  the  Record 

There  being  no  objection,  the  article 
was  ordered  to  be  printed  in  the  Record 
as  follows :  ' 

(From  the  New  York  Times.  Dec.  20.   1973] 

No  RrniKAr  fob  Issaxl 

.    .   And   thou   shalt   speak    unto   him 

Mylng.  Thus  says  the  Lord    Have  you  killed 

and  also  want  to  Inherit?  . .  ."—Kings  I.  21 :  19 

PASTKXas    D«    PntlTDT 

On  the  Day  of  Atonement,  the  holiest  day 
of  the  Jewish  year,  Egypt  and  Syria,  with 
the  connivance  of  Soviet  Russia,  unleashed 
a  treacherous  attack  on  the  people  of  Israel 
,!r^''"  repulsed  at  a  heavy  oost  in  human' 
Ufe    ThU  lime  the  UN  truce  observers  posl- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42765 


tlvely  Identified  Egypt  and  Syria  as  the 
a«grt»jBi.r8  Nmw  the  aggressors  brazenly 
demand  Uiat  Israel  withdraw  to  positions 
she  held  wn  Jui^e  6.  1967,  which  were  the 
annlsilce  liens  of  1949!  Their  aim  Is  to 
weaken  Israel,  softening  her  up  for  new 
onslaughu  and  eveutual  destruction. 

Israel  ahould  not  retreat.  This  Is  not  taking 
a  hard  line  against  sincere  negotiations  for 
peace.  This  is  Utclng  a  hard  line  against 
hypocrisy. 

THX    1867    AKAB    ACCaESSION 

For  years,  and  Immedlatley  prior  to  June  6, 
1967,  Israel  was  threatened  with  annlhUa- 
tion.  The  Arabs  openly  proclaimed  their  In- 
tention of  destroying  the  State  of  Israel  and 
driving  lU  Inhabitants  Into  the  sea.  Murder, 
harra&imeDt,  and  economic  weo'fare  against 
Israel   was  the  ugly  routine. 

In  May  1967  Egypt  mobUlzed  for  an  assault 
against  Israel.  On  May  19.  the  United  Na- 
tions emergency  peace-keeping  torce  In  the 
Slnal  was  summarily  dismissed  by  Egypt. 
Ou  May  22,  the  Gulf  of  Aqaba  was  closed  to 
Israeli  shipping  by  an  E^gyptlau  armed  block- 
ade— In  Itself  an  act  of  war. 

Israel  confronted  her  enemies  and  defeated 
them.  In  the  process,  the  Israelis  took  posses- 
sion of  land  essential  to  their  security  Includ- 
ing areas  which,  at  an  earlier  time,  had  been 
Ulegally  seized  by  Egypt  and  Jordan  and  to 
which  they  never  had  right  or  title. 

AKAB  MISTHXATMENT  Or  ISRAEU  POWS 

Unforgettable  are  the  scenes  on  TV  screens 
In  American  homes  showing  the  return  by 
Israel  of  Arab  prisoners  clad  In  slippers  and 
robes.  In  striking  contrast  are  the  photos  and 
other  documentary  proofs  of  the  Inhuman 
and  barbarous  treatment  of  IsraeU  POWs  by 
Syria  and  Egypt, 

Contemptuous  of  the  Geneva  Convention 
on  the  treatment  of  POWs,  and  turning  a 
deaf  ear  to  the  plea  of  the  International 
Red  Cross,  Syria  pwrslsted  in  refusing  to  band 
over  even  a  list  of  the  Israeli  prisoners  In  her 
hands,  or  permit  Red  Cross  visits 

ARAB    LAND    CLAIMS    RiYALID 

Egypt  and  Jordan  have  no  rights  to  the 
areas  Israel  wrested  from  their  domination. 
These  territories  never  rightfully  belonged  to 
them. 

The  west  bank  of  the  Jordan,  Including 
Old  Jerusalem,  was  Illegally  occupied  by  the 
Jordanians  in  1948.  They  smnexed  it  without 
right  or  sanction. 

Neither  was  the  Gaza  Strip  Egypt's.  This 
strip  was  part  of  Palestine  and  Included  in 
the  Mandate  of  the  League  of  Nations  f<M- 
the  Jewish  National  Homeland.  It,  too,  was 
occupied  and  held  by  Egypt  under  the  armi- 
stice arrangement  of  1949.  It  was  never  Incor- 
porated Into  the  Egyptian  state.  It  was  ad- 
ministered by  Egypt  as  a  separate  territory. 

The  Slnal  Is  not  Africa  and  Is  not  Egyptian 
territory.  It  Is  an  unpopulated  no-man's  land. 
Some  60,000  bedotiln  nomads  roaming  the 
Slnal  were  never  granted  Egyptian  citizen- 
ship, or  allowed  to  enter  Egypt  proper  with- 
out special  permit.  The  Egyptian  claim  can 
at  best  apply  to  only  part  of  the  Slnal,  name- 
ly, the  Rafa-Port  Sues  line,  the  "recognized 
ftxintler  between  Egyptian  and  Ottoman  Tur- 
Itey,  prior  to  1906.-  (CX.  Sulzberger.  NY. 
Timet  March  14, 1971 ) . 

As  for  the  Golan  Heights,  this  was  for  dec- 
ades the  launching  pad  from  which  the 
Syrians  rained  death  and  destruction  on 
Israeli  men.  women  and  children  In  the  valley 
below.  The  Syrians  now  demand  return  of 
this  area  which  is  a  plea  for  a  new  license 
to  resume  their  murderous  assaulU. 

THX  rrtALIENABLK  RICHTS  OF  THX  JXWI8H  PKOPLI 

AfUr  World  War  I,  the  community  of  na- 
tions invited  and  encouraged  Jews  to  estab- 
lish the  Jewish  Natlnnal  Home  In  Palestine. 
Following  World  War  11  the  United  Nations 
■anr-Uoned  the  eetaMlahment  of  a  Jewish 
State    In    Paiastl.-ie     Tr;e    United   States   has 


played  a  major  role  In  the  recognition  of  the 
inalienable  right  of  the  Jewish  people  to  the 
Land  of  their  Fathers,  the  Land  of  the  Bible. 

Throughout  all  of  history  there  has  never 
been  an  Independent  Arab  state  In  Palestine. 

A  Christian  view  sums  up  today's  situation 
as  follows : 

"Christian  seriousness  requires  that  Chris- 
tians and  the  Churches  support  the  right  of 
Israel  to  live  in  the  Land  as  a  Jewish  sUte. 
Christian  seriousness  requires  the  Churches 
and  their  members  to  urge  the  United  States 
government  and  people  to  stand  with  the 
Jews  In  defense  of  the  Land."  (Engage/ 
Social  Action,  a  Methodist -United  Church 
publication,  Dec.  1973) . 

THE    ARAB    AIMS 

The  Arab  aim — as  before — Is  the  destruc- 
tion of  the  SUte  of  Israel. 

Editor  Mohammed  Hassaneln  Heykal, 
spokesman  for  Egyptian  President  Sadat, 
wrote  In  Cairo's  Al  Ahram  on  October  19 
1973: 

"The  matter  does  not  relate  to  the  libera- 
tion of  the  Arab  territories  which  were  oc- 
cupied since  June  5,  1967,  but  strikes  further 
and  deeper  against  the  future  of  Israel." 

The  clamor  calling  for  Israeli  withdrawal 
and  retreat,  noisUy  orchestrated  for  world 
approval  by  Arab-Soviet  propaganda,  is  a 
fraud  and  should  be  recognized  as  such. 

THE    RUSSIAN    AIMS 

The  aim  of  the  Soviets — which  has  not 
changed  since  Czarlst  days— Is  to  become  the 
dominant  power  in  the  Middle  East.  Arab 
hostility  toward  Israel  was  a  useful  wedge 
with  which  to  gain  entry.  A  truncated  and 
Impotent  Israel  would  serve  the  Kremlin's 
purposes  admirably.  The  Russians  would 
then  have  a  free  hand  to  consolidate  their 
positions  and  move  forward  to  absolute  con- 
trol of  the  Mediterranean,  the  Red  Sea,  the 
Persian  Gulf,  the  Indian  Ocean,  and  the  sur- 
rounding lands.  This  would  pave  the  way  for 
mastery  over  the  oU  of  Arabia,  Iran, 'and 
Africa,  and  dominion  over  the  natural  re- 
sources and  markets  of  a  large  part  of  the 
Asian  and  African  continents. 

AMXRICA'B    VTTAL    INTTRESTS    THREATENED 

The  B:remlln  strategy  pcses  an  intolerable 
threat — poUtlcally,  economlcailv.  ar.d  mili- 
tarily—to  the  United  State.s  n:  America  and 
the  rest  of  the  free  world  I:  would  place 
the  VS.  and  her  allies  in  the  untenable  posi- 
tion of  having  to  choose  between  submission 
to  the  will  of  Moscow  or  waging  war  to  pre- 
serve their  freedom  and  viability. 

Perceiving  this  danger,  the  United  States 
provided  Israel  with  the  aid  neresRarr  txj  repel 
the  Arabs  and  thwart  the  Soviet  design 

ARAB     on.     BLACK  MAC 

The  Arab  oil  embargo  is  hypocritical  It 
conceals  a  venal  profiteering  motive  behind 
a  facade  of  hlgh-soxmdlng  phrases  The  oil 
embargo.  Intended  to  coerce  sovere:gn  na- 
tions not  Involved  in  the  Middle  East  fight- 
ing. Is  dangerotis  to  the  peace  ar.d  securltT 
of  the  entire  world.  No  state  -■r  group  of 
states,  using  such  means.  ha«  the  rti^ht  to 
plunge  the  world  Into  economic  chaos  with 
attendant  suffering  of  millions  of  people. 

StTRRKITDER    IS     NOT     PEACE 

America  and  L-^rael  want  [seace.  but  sur- 
render to  the  Arab-Soviet  blackmail  to  force 
Israel  to  retreat  from  her  rightful  position 
wUl  not  bring  peace  to  the  MJddJe  Ea.«t  and 
the  world. 

Aggres-sors  cannot  be  appeased  Surrender 
only  wheus  their  appetites  for  more  aggres- 
sion and  submission. 

The  UJ3.  m  Its  national  Interest  and  m 
the  Interests  of  freedom,  Justice  and  world 
peace  must  reject  aU  attempts  to  force  Israel 
to  retreat 

We  call  upon  our  President,  the  State  De- 
partment, and  Congress,  a.".d  the  American 
people  to  stand  firm  in  Insisting  that  Israel  » 
strength  and  Independence  shall  not  be  oom- 


promlsed  Anything  lea^MMd  he  a  mockery 
of  Justice  and  a  betrayal '^  Amen oas  lead- 
ership as  champion  and  g-uardian  of  world 
freedom. — ^Herman  L.  Weisman.  President 
Zionist  Organisation  of  America. 
Zionist    Oboanization    or   Amxrica, 

New  York.  N.T. 

Mr.  FULBRIGHT.  Tills  statement  Is 
signed.  "The  Zionist  Organization  la 
America,"  145  East  32d  Street,  New  York, 
and  the  headline  is,  "No  Retreat  for 
Israel." 

The  body  of  the  argument  put  forth 
Is,  I  think,  subject  to  no  other  conclusion 
but  that  they  are  advising  the  represent- 
atives of  Israel  not  to  give  1  inch,  to  do 
nothing  in  the  way  of  retreating  from 
the  occupied  territory,  which  is  the  mam 
issue  to  be  discussed  at  the  conference. 

This  fortifies  my  feeling  that  it  is  a 
psychological  matter,  that  by  passing  this 
bill  today  we  simply  make  the  represent- 
atives of  the  Government  of  Isra«?l  more 
intransigent  than  they  might  otherwise 
be.  This  was  the  main  point,  I  think  the 
Senator  will  admit,  that  I  made  in  the 
committee. 

I  agree  that  this  is  a  question  of  Judg- 
ment, that  anj'one  can  disagree  with 
without  his  motives  In  any  way  being 
questioned.  It  is  a  question  of  judgment. 

I  think  there  Is  undue  haste  being  at- 
tached to  our  consideration  of  a  bill  In- 
volving not  onlj'  a  very  large  sum  of 
money,  $2.2  billion,  but  also  some  policy 
decisions  with  important  impUcatlons  for 
American  policy  in  the  Middle  East,  Are 
we  or  are  we  not  prepared  to  live  up  to 
what  we  profess  to  have :  an  evenhanded 
policy  designed  to  bring  about  peace  In 
that  area  under  the  guidelines  set  down 
In  resolution  242? 

I  think  that  passage  with  so  Utile  con- 
sideration by  Members  of  the  Senate, 
under  considerable  pressure  to  get  the 
matter  over  with,  wUl  agam  confirm  to 
all  of  the  ATa.h  participants  In  the  con- 
ference, and  some  who  do  not  partici- 
pate but  are  Interested,  their  concern 
that  the  United  States  L=  not  committed 
to  the  policy  we  profess  to  be  committed 
to. 

They  ■will  conclude,  if  they  have  not 
ah-eady,  that  we  have  no  intention  of  re- 
treating from  all-out,  unlimited  support 
of  the  military-  supremacy  of  the  State  of 
Israel,  and  that  we  are  not  about  to.  u.se 
any  Influence  to  bring  about  a  settlement. 

I  know  that  Secretary-  Kissinger  hopes 
to  foster  a  .settlement,  and  I  have  done 
ever>-thtng  I  know  of  tc  support  hLm  As 
a  matter  of  fact,  .my  opposition  to  this 
biU  is  deslsmed  primarily  to  support  and 
to  strengthen  the  Secretarys  hand  to 
bring  about  an  attitude  of  compromise 
on  the  part  of  the  Israeli  delegates  to 
the  conference 

It  L<;  useful,  I  believe,  to  have  at  ie&st 
one  voice,  or  two.  or  three  voices  in  the 
Senate  that  the  Arabs  can  feel  appre- 
i  iate  their  attitude,  appreciate  that  they 
have  legitimate  interests  In  this  area, 
too  Otherw-ise,  I  can  imagine  that  they 
'.vouid  give  up  complete  hope  Maybe 
they  will  anyway,  because  we  are  so  few. 
s^3  I  think  it  plays  some  useful  purpose 
for  some  few  of  us  to  raise  questions 
about  this  tragic  conflict,  m  order  to  as- 
sure that  the  other  side  of  the  argument 
is  at  least  heard — someone  who  appre- 


42766 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  1973 


dates  their  point  of  view  regardless  of 
the  overwhelming  majority  vote  which 
eventually  ensues. 

Some  of  the  arguments  the  Senator 
from  Minnesota  made  were  so  similar  to 
the  argxmients  made  at  the  time  of  the 
Gulf  of  Tonkin  resolution.  Very  unfor- 
tunately for  me.  I  was  the  one  who  made 
those  arguments,  so  they  are  impressed 
upon  me. 

I  made  them,  because  the  President 
at  that  time,  and  the  Secretary  of  State, 
urged  on  me  the  necessity  of  quick  pas- 
sage of  the  Gulf  of  Tonkin  resoluUon,  in 
order  to  show  to  the  North  Vietnamese 
our  unity  behind  the  President,  and  that 
the  strength  of  this  country  had  not  been 
weakened  by  dissenting  views  held  in 
Ccmgress. 

I  remember  that  the  Senator  from 
Wisconsin  iMr.  Nslson)  offered  a  sen- 
sible amendment,  that  I  was  in  accord 
with,  which  expressed  what  he  believed 
the  policy  of  the  President  was.  I  said 
that,  unfortunately,  the  President  Is  so 
concerned  about  rapid  passage  of  the 
resolution  that  no  amendment,  no  mat- 
ter how  useful,  should  be  put  on  the 
resolution  because  that  »x>uld  occasion 
a  conference  and  a  delay  of  maybe  a  day 
or  two.  I  repeated  the  President's  view 
that  it  was  very  Important  that  we  Im- 
press on  the  Vietnamese  the  dangers  of 
their  actions  and  that  if  we  showed  unity 
and  supported  the  action  of  the  Presi- 
dent, they  would  be  deterred  and  seek  a 
peace  conference 

It  seems  today  that  the  Senator  from 
Minnesota  is  making  the  same  argument. 
I  recognize  the  argimient  because  it  is 
the  one  I  was  led  to  make,  erroneously. 
In  1964.  I  was  much  less  experienced 
in  these  matters  at  that  time — that  was 
nearly  10  years  ago.  I  never  thought  that 
I  would  be  deceived  by  any  administra- 
tion spokesman  on  anything  of  that  con- 
sequence 

It  may  be  that  the  President  himself, 
in  his  own  mind,  believed  that  the  Ton- 
kin resolution  would  be  effective  in 
bringmg  a  qiiick  settlement.  But  what 
bothers  me  is,  later  on.  he  completely 
reversed  that  point  of  view  and  was  re- 
sponsible for  sending  over  500,000  Amer- 
ican boys  Into  the  fighting  in  Vietnam, 
a  tragic  undertaking  which  has  so  weak- 
ened this  country.  Nothing  we  have  ever 
done  has  weakened  us  so  much,  vls-a-vls 
the  Communist  coimtnes — or  strength- 
ened them,  to  put  It  the  other  way  rela- 
tlve  to  us. 

Now  we  are  again  presented  with  the 
same  argxmients.  This  is  an  extremely 
important  Issue.  It  could  result  in  an- 
other intervention  by  this  country.  We 
say  we  are  not  going  to  Intervene.  Just 
as  the  President  In  1964  said  he  would 
not.  But  the  passage  of  this  bill,  under 
these  circumstances,  creates  a  condition 
which  make  It  difficult  for  the  Secretary 
of  SUte  to  get  a  settlement  in  Geneva. 
It  strengthens  the  determination  of  the 
Israeli  representatives  not  to  com- 
promise at  all  dt  withdraw  from  any 
positions.  And  It  dismays  the  other  side, 
the  Arabs,  who  will  conclude  there  is  no 
hope  that  the  United  States  will  ever 
do  anything  to  persuade  the  Israelis 
to  make  a  settlement.  So  it  all  may  break 
down  axul  go  back  to  a  trial  at  arms. 


Assess  the  relative  potential  strength 
of  these  two  areas.  Here  is  3  million  cit- 
izens in  Israel  against  100  million  or  110 
million  Arabs,  with  growing  wealth,  with 
growing  training  and  knowledge  of  the 
use  of  modem  weapons.  Even  though 
Israel  at  present  has  military  superiority, 
as  she  has  had  during  her  whole  exist- 
ence, she  cannot  possibly  stand  up 
against  the  Arab  nations,  :f  they  are  let 
alone — that  Is,  if  we  and  the  other  major 
countries  of  the  world  do  not  Intervene. 
So  If  we  are  Interested  L.  tl.e  preserva- 
tion of  the  State  of  Israel,  under  Its  bor- 
ders of  1967,  I  cannot  see  how  one  can 
arrive  at  the  conclusion  that  this  bill 
promotes  that  objective.  That  is  why  I 
am  so  strongly  against  It.  One  may  say, 
uid  rightly  so.  ''Who  are  you  to  have  a 
judgment  different  from  that  of  the 
majority  of  the  committee  or  from  the 
President?" 

WeU,  here  I  am  strengthened  by  a 
recognition  that.  In  the  case  of  Viet- 
nam—after the  Gulf  of  Tonkin  resolu- 
tion— and  in  a  few  other  Instances,  my 
judgment  has  not  always  proved  to  be 
erroneous.  There  Is  enough  of  a  chance 
that  a  Member  of  the  Senate  might  have 
as  good  or  better  judgment  as  a  Presi- 
dent that  I  And  It  to  be  my  duty  as  a 
Member  of  this  bodj-  to  give  voice  to 
my  view,  even  if  it  is  the  only  one  Uke 
It  In  the  Senate.  So  It  is  my  duty  to  say 
It.  It  Is  not  a  matter  that  Involves  any 
great  or  unusual  conceit  on  my  part,  in 
the  light  of  the  experience  of  recent 
years.  I  know  that  administrations  are 
not  always  Infallible,  and  It  could  be  that 
my  views  are  correct,  as  I  presently  be- 
lieve them  to  be. 

So  It  Is  with  that  in  mind  that  I  simply 
ask  questions  of  the  Senate.  Eventually, 
perhaps,  some  of  the  people  of  this 
country— If  by  any  chance  what  we  say 
here  ever  gets  to  the  press— will  have 
something  to  think  about,  and  come  to 
see  that  there  Is  some  alternative  to 
this  policy  of  unqualified  support  for 
Israel— which  I  consider  can  be  a  dan- 
gerous one. 

So  I  do  not  think  there  Is  any  urgency 
whatever  in  passing  this  bill.  Where  there 
Is  urgency  Is  in  achieving  a  settlement.  If 
we  do  not  get  a  settlement.  I  antici- 
pate that  there  will  be  another  war  In 
a  year  o-  two. 

What  I  am  doing  Is  trying  to  direct 
every  possible  argument  and  Influence  I 
can  to  getting  a  settlement  at  Geneva. 
That  Is  the  whole  objective  of  my  amend- 
ments and  my  arguments — to  do  some- 
thing to  bring  about  an  attitude  of  com- 
promise on  the  part  of  the  parties  there. 
I  believe  the  Arabs  wish  to  abide  by 
their  declared  Intention  to  lift  their  em- 
bargo, to  have  normal  relations  in  every 
way.  to  be  friends  with  this  country,  if  we 
do  implement  242.  They  have  made  it 
very  plain.  Even  this  morning's  paper 
had  some  articles  Indicating  that,  they 
would  be  willing,  at  least  over  a  short 
period,  to  Increase  their  production  up  to 
20  million  barrels  a  day  to  accommodate 
us.  during  a  transitional  period,  while  we 
develop  our  own  resources  from  coal  and 
the  other  things. 

They  have  gone  that  far.  which  is  a 
very  recent  development.  I  see  no  reason 
to  believe  that  they  would  not  do  this. 


because  they  are  quite  conscious  of  their 
Interdependence  with  the  rest  of  the 
world.  They  want  to  use  their  wealth  to 
develop  their  own  countries,  to  diversify 
their  own  Industry. 

The  minister  from  Algeria,  who  was 
here  at  luncheon  a  Jlttle  more  than  a 
week  ago.  made  It  very  clear  what  their 
objective  Is.  All  they  are  trying  to  do  is  to 
imitate  the  Industrialized  Western  coun- 
tries by  using  their  wealth  to  dlversliy. 
It  Is  a  reasonable  objective.  Why  any- 
body would  question  It.  I  do  not  know. 
I  think  It  Is  a  reasonable  objective,  but  It 
hinges  on  the  success  of  this  conference. 
I  yield  to  the  Senator  from  Virginia 
Mr.  WILLIAM  L.  SCOTT.  I  appreciate 
the  Senator  yielding  and  share  many  of 
the  concerns  about  this  bUl  that  the  Sen- 
ator from  Arkansas  has  expressed. 

I  am  also  concerned  about  the  cost  of 
the  bill.  $2.2  bUllon.  We  say  that  we  are 
here  to  represent  the  best  interests  of  this 
country,  and  that  should  be  foremost  )n 
our  minds  at  all  times.  We  undoubtedlj' 
will  exceed  the  President's  $268  billion 
budget,  and  we  should  look  closely  at  any 
Item  that  costs  $2.2  billion.  Some  of  the 
amount  is  to  cover  the  cost  of  replace- 
ment of  arms  of  Israel,  but  some  are 
the  Imponderables,  the  word  that  was 
used  earlier  today. 

I  am  also  concerned  about  lajing  the 
foundation  for  another  Vietnam.  We 
know  that  Vietnam  just  grew  upon  us. 
There  was  no  intention  by  Congress  for 
us  to  go  Into  a  war  that  would  involve 
500.000  or  more  of  our  young  men. 

When  we  start  sending  arms  to  any 
nation  and  have  our  own  men  delivering 
those  arms,  flying  the  aircraft  that  are 
taking  the  arms;  when  we  do  not  have  a 
place  to  land  our  aircraft;  when  our  so- 
called  allies,  the  people  In  the  NATO 
pact,  win  not  let  us  land,  In  some  In- 
stances will  not  even  let  us  fly  over  their 
land;  when  we  have  to  go  to  the  Azores 
and  then  by  nonstop  to  Israel,  we  are 
sort  of  going  It  alone,  without  any  major 
nation  with  us. 

I  would  like  us  to  be  one  of  the  peace- 
loving  nations  of  the  world  that  would 
work  with  other  peace-loving  nations, 
so  that  we  can  maintain  peawre  through- 
out the  world.  But  when  we  are  going  It 
alone,  when  our  allies  think  we  are  taking 
the  wrong  course.  I  feel  we  had  better 
take  time  to  consider  carefully  a  matter 
such  as  this. 

Apparently,  the  majority  of  the  Sen- 
ate has  made  up  Its  mind.  We  have  had 
resolutions  that  have  been  cosponsored 
by  a  majority  of  the  membership  of  this 
body,  and  I  am  not  naive  enough  to  feel 
that  this  bUl  Is  not  going  to  pass. 

I  have  read  some  of  the  amendments 
that  the  Senator  from  Arkansas  plans  to 
propose.  I  am  going,  to  support  at  least 
one  and  possibly  all  of  the  amendments. 
But  I  hoF>e  we  do  have  a  rollcall  vote  on 
this  measure  I  feel  that  It  is  Important 
enough  that  the  people  of  the  country 
ought  to  see  who  Is  voting  for  and  who  Is 
voting  against  it.  I  am  not  sure  that 
enough  Members  are  on  the  floor  now, 
but  It  is  my  understanding  that  the  dls- 
tlngiiished  chairman  of  the  full  commit- 
tee intends  to  ask  for  a  rollcall  vote  at 
least  on  flnal  passage.  Is  that  correct? 
Mr.  FULBRIOHT.  The  Senator  Is  cor- 


Decemher  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


4276' 


rect.  On  a  bill  of  this  magnitude,  It  would 
be  Irresponsible  not  to  have  a  rollcall 
vote.  I  intend  to  ask  for  It. 

Mr.  HUMPHREY  Mr.  President,  will 
the  Senator  yield? 
Mr.  FULBRIGHT.  I  yield. 
Mr.  HUMPHREY.  I  surely  want  to  see 
that  there  Is  a  roUcall  vote  on  final  pas- 
sage. I  think  that  on  a  bill  with  this 
amount  of  money  and  of  this  signifi- 
cance, we  simply  must  have  It 

Mr.  FULBRIGHT.  U  we  can  get 
enough  Members  on  the  floor,  I  will  ask 
for  It. 

Mr.  HUMPHREY.  Mr.  President,  I  ask 
for  the  yeas  and  nays  on  final  passage. 
The  yeas  and  nays  were  ordered 
Mr.  FULBRIGHT.  Mr.  President,  I  ask 
for    the   yeas    and   nays   on    the    three 
amendments  I  Intend  to  offer 

The  PRESIDING  OFFICER.  Does  the 
Senator  ask  unanimous  consent  that  It 
t)e  In  order? 

Mr.  FULBRIGHT.  I  ask  unanimous 
consent,  to  save  the  trouble.  I  ask  unani- 
mous consent  that  we  may  authorize  the 
yeas  and  naj's. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  in  order  to  order  the  yeas 
and  nays  on  sOl  three  amendments,  with 
one  show  of  hands. 

The  yeas  and  nays  were  ordered. 
Mr.  CASE.  Mr.  President,  today  the 
Senate  acts  on  legislation  I  introduced 
authorizing  up  to  $2.2  billion  in  grants 
and  credits  for  the  resupply  of  Israel. 
The  bill  before  us  Is  Identical  to  legisla- 
tion that  alreadi'  has  passed  the  House 
of  Representatives.  Appropriations  leg- 
islation passed  the  Senate  a  few  days 
ago. 

The  Intent  of  this  measure  is  weU 
known.  It  was  proposed  by  the  adminis- 
tration to  resupply  Israel  and  maintain 
the  military  balance  in  the  Middle  East. 
Maintenance  of  that  balance  is  essen- 
tial if  anything  Is  to  come  of  the  peace 
conference  soon  to  open  In  Geneva.  This 
aid  to  Israel  will  serve  to  put  the  Arab 
States  on  notice  once  again/ that  the 
United  States  will  continue  In  the  quest 
for  a  lasting  peace  settlement.  Further, 
It  win  make  clear  to  the  Soviet  Union 
we  do  not  Intend  to  change  our  basic 
policy. 

With  the  passage  of  the  legislation 
before  us,  Israel  will  be  able  to  enter  into 
serious  negotiations,  knowing  it  does  not 
stand  alone. 

Mr.  HATFIELD.  Mr.  President,  as  a 
member  of  the  Appropriations  Subcom- 
mittee on  Foreign  Operations  I  have 
been  closely  involved  In  the  inquiry  con- 
cerning the  administration's  request  of 
$2.2  billion  in  emergency  assistance  to 
Israel.  After  careful  review  of  the  testi- 
mony of  State  and  Defense  Department 
witnesses  and  the  classified  Information 
pertinent  to  this  matter,  I  have  con- 
cluded that  the  administration  has  given 
Congress  no  sufficient  explanation  con- 
cerning the  necessity  of  granting  an  ad- 
ditional $1.2  billion  over  and  above  the 
$1  billion  of  military  supplies  that  have 
already  been  sent  to  Israel  since  the  out- 
break of  the  recent  hostUlties.  The  ad- 
ministration has  stated  that  the  initial 
$1  billion  has  fulfilled  the  major  task 
of  replacing  the  equipment  and  materiel 
lost  in  the  war. 


It  is  understandable  that  provt'Jion  ix' 
made  for  Israel  to  be  assisted  al  this  time 
In  the  amount  of  $1  billion,  but  what 
would  be  sent  to  Israel  by  an  additioi.ai 
$1.2  billion  has  not  even  been  ideniifled 
by  the  administration.  They  have  .-lated 
that  such  amounts  would  be  ixsed  lo  re- 
store "military  balance"  to  the  axea  and 
have  added.  "It  Is,  however,  extremely 
difficult  to  state  precisely  the  types  and 
quantities  of  equipment  that  will  be 
needed  for  this  purpose."  The  adminls- 
trations  reply  to  the  subcommittee 
chairman  further  stated : 

We  do  not  want  to  stimulate  additional 
procurement  by  the  Arab  combatants  and 
thereby  initiate  a  new  escalation  In  the  level 
of  armaments  In  the  area. 

The  administration  has  made  It  clear 
that  it  does  not  know  how  much  of  this 
total  request  will  be  made  on  the  basis 
of  loans,  and  how  much  on  the  basis  of 
grants.  Further,  they  have  said  that  if 
the  total  amoimt  is  not  needed,  it  will  be 
returned  to  the  Treasury. 

In  s\im,  the  Congress  is  being  asked  to 
authorize  and  appropriate  $1.2  billion 
of  this  $2.2  billion  for  equipment  and 
materiel  that  cannot  be  even  Identified 
at  this  time,  and  that  may  not  all  be 
needed. 

When  asked  why  Congress  should  now 
give  such  a  blank  check  for  up  to  $1.2 
billion  worth  of  additional  mihtary 
equipment  to  Israel,  over  and  above  the 
replacing  of  that  which  was  lost  in  the 
war,  the  administration  has  given  two 
generaJized  responses.  First,  they  have 
stated: 

If  the  Congress  were  to  act  only  on  an 
amount  sufficient  to  cover  equipment  already 
supplied  to  Israel,  it  could  l)e  Interpreted  as 
an  Indication  that  the  United  States  Govern- 
ment Is  not  prepared  to  provide  whatever  Is 
necessary  to  enable   Israel   to  defend   Itaelf. 

Second,  they  have  stated: 

Peace  negotiations  will  not  be  promoted  U 
in  the  middle  of  them,  we  have  to  return  to 
the  Congress  with  an  additional  request  for 
military  assistance  funds  for  Israel  with  the 
attendant  weeks  or  months  of  uncertainty 
(untU  the  bill  Is  passed)  as  to  whether  the 
USO  will  provide  the  wherewithal  for  Israel's 
defensive  needs 

In  response  to  the  first  point,  the  his- 
toric and  resolute  commitment  of  the 
United  States  to  provide  Israel  with  the 
means  of  her  defense  has  been  firmly 
demonstrated  to  the  world  time  and  time 
again.  Most  recently,  during  the  past 
war,  our  country  not  only  demonstrated 
that  commitment  by  the  intensive  airlift 
and  sealift  which  resupplied  Israel  with 
all  the  equipment  that  was  needed  for 
her  defense,  but  our  nation  was  also 
brought  to  the  brink  of  a  nuclear  con- 
frontation to  prevent  the  entry  of  Soviet 
troc^>s  Into  the  region.  We  do  not  need 
to  give  the  administration  authority  to 
supply  an  additional  $1.2  billion  of  mili- 
tarj-  equipment  that  is  not  even  identi- 
fied and  specifically  justified  in  order  to 
prove  the  credibility  of  this  naUon's  com- 
mitment to  Israel. 

Regarding  the  second  point.  Congress 
has  always  demonstrated  that  It  will  act 
and  act  swiftly  to  provide  the  where- 
withal for  Israel's  defensive  needs.  It  Is 
Inconceivable  that  Congress  would  ever 
deny  any  specific  request  for  equipment 


above  that  which  has  already  been  given 
to  Israel  that  Is  shown  to  be  essential  for 
her  security.  This  would  be  so  particu- 
larb'  durmg  a  time  of  negotiations. 

Thus,  I  find  the  administration's  justi- 
fication of  the  $1.2  billion  beyond  that 
which  we  have  already  suppUed  to  be 
wholly  unpersuasive. 

In  the  past,  many  of  my  colleagues 
have  argued  that  Congress  should  be  a 
full  participant  in  matters  relaUng  to 
our  mihtary  assistance  and  foreign  com- 
mitments, and  I  have  joined  in  making 
these  points.  We  have  said  that  Congress 
must  not  give  to  the  executive  branch 
blank  checks  and  broad  discretions  of  un- 
limited authority  in  such  matters.  We 
have  argued  that  Congress  must  t^e  more 
relevanUy  involved  m  this  decisionmak- 
ing process,  as  was  the  intent  of  the  Con- 
stitution. I  beheve  that  there  should  be 
no  exception  to  those  principles,  and  that 
they  should  be  applied  in  this  instance 
as  well. 

If,  in  fact,  the  administration  decides 
that  additional  equipment,  above  what 
has  been  lost  in  the  past  war  and  re- 
placed, is  needed  for  a  military  bal- 
ance, then  that  can  be  supplied  in  the 
same  fashion  as  our  aid  up  to  this  point 
has  been  given— under  the  Foreign  Mih- 
tary Sales  Act.  In  such  a  case.  Congress 
would  have  a  full  120  days  to  consider 
such  action,  and  to  provide  additional 
loans  or  grants  as  it  sees  fit.  Certainly 
that  is  the  proper  way  to  proceed,  and 
the  minimum  that  is  necessary  if  Con- 
gress is  to  be  an  equal  and  responsible 
participant  in  this  process. 

I  have  heard  it  frequently  contended 
that  if  Congress  does  not  give  to  the 
Executive  carte  blanche  for  all  that  It 
wants,  then  its  ability  to  reach  a  desired 
negotiated  solution  on  a  given  matter 
may  somehow  be  jeopardized.  Previously 
I  have  rejected  such  rationale  when  con- 
sidering congressional  acUon  on  such 
matters  as  the  ABM,  our  troops  in  Eu- 
rope, and  our  involvement  in  Southeast 
Asia.  I  do  not  accept  that  rationale  in 
this  instance  either.  F-jriher,  in  this  case 
it  is  not  being  suggested  that  funds  for 
an  ongoing  commitment  or  program  be 
denied,  but  that  additional  funds  vet  to 
be  required,  justified,  or  specified  not  be 
prematurely  given. 

The  administration  has  stated: 

We  recognize  that  what  we  are  asklne  la 
highly  unuisual. 

I  wholeheartedly  agree,  and  believe 
that  Congress  should  not  abdicate  its  own 
responsibilities  as  It  exercises  the  power 
of  the  purse.  In  effect,  the  Executive 
is  asking  the  Congress  to  renege  from 
exercising  any  meaningful  role  at  all  in 
the  prc\lsion  of  an  additional  $1.2  biUion 
of  militar>-  aid  to  Israel,  beyond  what 
has  been  supplied  to  replenish  the  losses 
from  the  recent  war.  Tsee  no  reason  why 
Congress  should  'accede  to  this  highly 
unusual  request. 

Finally,  it  is  my  belief  that  there  Is 
no  ultimate  military  solution  to  the  con- 
flict In  the  Middle  East.  The  only  sohi- 
tlon  Is  a  negotiated  settlement  of  the 
political  and  social  Issues  which  lie  at 
the  root  of  the  tensions  there.  I  earnestly 
hope  and  pray  that  the  negotiations 
about  to  begin  will  yield  such  a  settle- 


42768 


CONGRESSIONAL  R£CORD  —  SEN  ATE 


December  20,  1973 


ment.  For  this  reason,  it  ia  all  the  more 
Imperative  that  we  not  take  these  ac- 
tions which  would  encourage  a  reliance 
solely  on  military  might  as  the  means 
for  building  ultimate  security.  In  the 
past,  the  arms  we  have  given  to  the 
Middle  East  in  the  name  of  building  a 
balance  of  power  have  been  used  m  war. 
Another  war  in  the  future  would  be  even 
far  more  costly  in  human  terms  for  both 
Israel  and  the  Arabs,  and  nm  the  same 
risks  of  nuclear  confrontation  between 
the  world's  most  powerful  nations. 
Therefore,  now  more  than  ever  It  is  our 
responsibility  to  stress  by  our  actions 
and  words  to  all  parties  that  success- 
ful negotiations,  resolving  the  fimda- 
mental  issues  and  grievances,  rather 
than  blind  reliance  on  military  might, 
are  the  only  means  for  tichlevtng  true 
security. 

AJCZIfTIMXirr    NO.    930 

Mr.  FULBRIGHT.  Mr.  President.  In 
order  to  get  along  with  this  matter.  I 
call  up  my  aunendment  No.  930. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  amendment  was  read  as  follows: 

At  Ui«  end  of  the  bill,  add  the  following 
new  section: 

8k:.  7.  Not  more  than  $1,200,000,000  of 
the  funds  made  available  pursuant  to  sec- 
tion 3  shall  be  fumUhed  to  Israel  untU  the 
President  has  found  that  I^ael  Is  taking 
approprtat*  step*  to  comply  with  reeolu- 
Uonsa43  (19fl7)  and  338  (1973)  of  the  United 
Nations  Security  CouncU.  Any  such  finding 
ahali  be  reported  promptly  to  the  Commit- 
tee on  Foreign  Relations  of  the  Senate  and 
the  Speaker  of  the  House  of  Repreaentatlyes. 

Mr.  FULBRIGHT.  Mr.  President,  as  I 
already  have  said.  I  support  the  Presi- 
dent and  Secretary  of  State  Kissinger's 
basic  policy  in  the  Middle  East,  to  seek 
a  settlement  based  on  \32i.  Security 
Council  Resolution  242.  That  objective 
Is  m  the  interest  of  sill  mankind.  But 
this  bill,  as  written,  does  not  further  that 
pohcy :  It  undermmes  it. 

The  primary  importance  of  this  bill 
la  not  the  money,  but  the  policy  in- 
volved. And  that  policy  is  a  shortsighted 
and  Imprudent  one — promoting  the  mili- 
tary superiority  of  Israel — when  the  cir- 
cumstances require  a  policy  furthering  a 
peaceful  settlement.  Regardless  of  all 
the  rhetoric  about  "restoring  a  military 
balance."  passage  of  this  bill  will  be  seen 
by  the  world  as  a  major  policy  declara- 
tion on  the  most  difUcult  and  dangerous 
problem  confronting  our  country.  This 
bill  contemplates  a  military  solution  to 
a  problem  reqxiirlng  diplomacy  euid  ne- 
gotiations. 

This  bill  sends  a  signal  to  the  world 
that  the  United  States  does  not  intend 
to  pursue  an  evenhanded  policy.  As  the 
only  country  in  a  position  to  talk  to  all 
parties  involved,  maintenance  of  U.fl. 
credibility  Is  most  important.  Our  deeds 
must  match  our  words.  This  bill  speaks 
not  of  peace,  but  of  war. 

Passage  of  such  an  unbalanced  bill  at 
this  critical  juncture  may  have  serious 
consequences  for  the  peace  negotiations. 
There  is  too  much  at  stake  for  the 
United  States.  Israel,  and  the  world  to 
run  siich  a  risk. 

The  strong  political  tilt  of  this  bill 


could  be  corrected  to  some  extent  by 
making  additional  aid  to  Israel  condi- 
tional on  her  taking  appropriate  steps  to 
comply  with  Resolution  242  and  the 
cease-flre  resolution  of  October  22. 

Mr.  President,  this  bill  is  vastly  more 
important  than  the  giving  away  of  %22 
billion  of  the  taxpayers'  money.  Our  na- 
tional Interests  as  well  as  those  of  Israel, 
the  Arabs,  and  the  world  are  tied  to  a 
successful  conference  In  Geneva.  We 
must  not  do  anything  to  undermine 
that  conference.  It  is  an  opportumty 
which  we  cannot  afford  to  miss.  It  offers 
the  best  hope  for  real  peace  in  the  region 
since  the  founding  of  Lsrael.  A  stalemate 
will  assure  a  fifth  round  of  fighting, 
great  danger  to  Israel's  future  security, 
and  a  return  to  the  cold  war.  If  we  can 
avoid  Involvement  In  a  hot  one. 

Passage  of  this  amendment,  condi- 
tioning any  aid  to  Israel  beyond  $1.2 
billion  on  good-faith  steps  toward  com- 
pliance with  Security  Council  Resolu- 
tion 242.  which  all  parties  profess  to 
support,  may  help  to  soften  the  adverse 
Impact  of  this  bill  on  the  negotiating 
process. 

I  urge  the  adoption  of  the  amendment. 

I  ask  unanimous  consent  to  have 
printed  in  the  Record  at  this  point  my 
individual  views  from  the  Foreign  Rela- 
tions Commlttee\jsa2Qli  on  H.R.  11088. 

There  being  no  objection,  the  views 
were  ordered  to  be  printed  in  the  Rkcord, 
as  follows: 

Indivtduai.    Views    of    Senator    J.    W.    Prri,- 

BBICHT — BlLI.        EnDANOEBS        A        NEOOTIATXD 

Settlxmeut 

The  coming  tallu  in  Oeneva  must  suc- 
ceed If  we  are  to  prevent  a  worldwide  reces- 
sion, a  renewal  of  the  Arab-Israeli  war.  and 
a  breakdown  of  the  movement  toward  nor- 
malization of  our  relations  with  the  Soviet 
tTnlon.  ApproTal  of  tills  bill  to  give  %22  bil- 
lion In  military  aid  to  Israel  wUl  undermine 
the  tasks  before  they  begin. 

The  bUl  Is  Ul  Umed  and  Ul  advised.  It 
should  be  set  aside  for  further  consideration 
next  session  after  there  has  been  an  oppor- 
tunity to  weigh  the  progress  made  In  the 
negotiations.  The  primary  Importance  of  this 
bill  Is  not  the  money  but  the  policy  Involved. 
And  that  policy  Is  a  short-sighted  and  Im- 
prudent one — promoting  the  mUlt&ry  In- 
tereata  of  Israel — wb«n  the  circumstances 
require  a  policy  furthering  a  peaceful  settle- 
ment. Regardleas  of  all  the  rhetoric  about 
"resorting  a  military  balance."  passage  of 
this  bill  will  be  seen  by  the  world  as  a 
major  policy  declaration  on  the  most  dlf- 
flc\llt  and  dfingeroua  problem  confronting 
ovir  country  This  bill  contemplates  a  mUl- 
tary  solution  to  a  problem  requiring  diplo- 
macy and  negotiations. 

To  Israel  It  could  be  an  encouragement  to 
further  Intransigence.  And  to  the  Arabs  It 
wUl  be  seen  as  a  re-afllrmatlon  of  the  inabU- 
Ity  of  the  United  States  to  pursue  an  even- 
hanxled  policy.  I  offered  a  number  of  amend- 
ments In  Committee  to  lessen  the  political 
tilt  of  this  bill.  All  were  rejected.  The  text 
of  these  and  other  amendments  I  offered  are 
printed  In  the  appendix. 

Instead  of  advancing  our  national  Interests 
In  the  Middle  East,  this  bUl  threatens  to  set 
them  back.  The  United  States  has  three 
fundamental  Interests  in  the  Middle  Kast:  a 
■ecure  and  peaceful  Israel:  frleudabtp  with 
the  Arab  states  and  a  reliable  so\iroe  of  oU; 
and  the  avoidance  of  ooniUct  with  the  So- 
viet Union.  The  gr«*t  strtngtb  of  our  posi- 
tion ts  the  fundamental  compatibility  of 
these  three  basic  Interests. 


All  can  be  advanced  by  an  equitable  Arab- 
Israeli  settlement.  The  time  to  press  for  that 
settlement  ts  now,  before  hoetUltlee  flax« 
anew  tn  the  Middle  East,  as  almost  certainly 
they  will  M  there  Is  not  early,  substantial 
progress  toward  peacs.  The  precise  terms  and 
exact  boundarlee  of  a  settlement  must  await 
negotiations  in  the  peace  conference,  but  the 
basic  prlnclplee  of  an  equitable  peace  are 
clear  The  peace  must  be  based  upon  Security 
OouucU  Resolution  342  of  November  1667, 
which  requires  Israeli  withdrawal  from  oc- 
cupied territories  and  which  emphasizes  tha 
"InadmlssabUlty  of  the  acquisition  of  ter- 
ritories by  war."  In  accordance  with  that 
Resolution,  the  peace  must  also  make  ex- 
plicit and  detaUed  provisions  to  assiuv  the 
territorial  Integrity  and  political  Independ- 
ence of  Israel  and  all  other  Middle  East 
states. 

The  chances  for  achieving  a  stable  and 
equitable  peace  In  the  Middle  East  are 
greater  than  at  any  time  since  the  founding 
of  Israel  In  1948.  On  the  other  hand.  If  there 
is  not  a  settlement,  there  Is  every  likelihood 
of  stUl  another  war.  and  that  more  likely 
within  months  rather  th&n  years.  What  now 
seems  out  of  the  question  Is  a  return  to  the 
status  quo  which  prevailed  between  the  wars 
of  19«7  and  1973. 

Like  the  Balkans  before  1914.  the  Middle 
Rast  has  become  the  potential  flash  point  of 
world  conflict.  It  threatens  the  great  pow- 
ers— and  the  world — with  repeated  tripe  to 
the  brink  of  nuclear  confrontation.  Por  this 
rea«4ii  alone  the  United  States  and  the  So- 
viet Union  have  not  only  the  right  but  the 
responslbUlty  to  intercede  for  a  compromise 
peace.  If  the  two  great  powers  were  wUllng 
to  leave  the  Arabs  and  Israel  to  work  out. 
or  fight  out.  their  differences  regardless  of 
the  outcome,  the  Issue  might  then  be  re- 
garded as  regional  and  autonomous.  The 
Russians  are  not  going  to  abandon  the 
Arabs,  and  the  United  States  is  most  cer- 
tainly not  going  to  leave  Israel  to  her  fate. 
But  leaving  Israel  to  her  fate  and  encourag- 
ing her  to  show  a  spirit  of  compromise  are 
quite  different  matters. 

Our  moral  and  political  commitment  to 
Israel  ts  about  as  solid  and  unaltM^ble  as 
any  we  have  in  the  world.  We  are  not.  how- 
ever, committed  to  current  Israeli  policy. 
to  the  retention  by  Israel  of  occupied  l&nds, 
or  to  abetting  intransigence  In  the  coming 
peace  talks.  Insofar  as  the  retention  of  these 
lands  threatens  endless  war  from  which  we 
cannot  remain  aloof,  we  have  the  right  and 
the  responsibility  to  Intercede  for  a  com- 
promise peace  baaed  upon  the  principles  of 
the  Security  Council  Resolution  of  Novem- 
ber 1967.  And  we  have  a  duty  to  refrain 
from  actions  which  wUl  stiffen  Israeli  oppo- 
sition to  Implementation  of  that  resolution. 
I  offered  an  amendment  to  the  Committee 
to  make  the  provision  of  any  aid  to  Israel 
beyond  (12  bUllon  conditional  on  her  "tak- 
ing approprtata  steps  '  to  comply  with  Res- 
olution 343  and  the  Security  Council's  cease- 
fire resolution  of  October  23  of  this  year. 
The  amendment  was  rejected. 

A  peace  based  on  Resolution  342  la  to  the 
advantage  of  all  concerned,  not  the  least 
Israel  haraelf  This  fourth  Arab-Iaraalt  war 
has  confronted  Israel  with  the  grim  spactar 
of  endleas  conflicts,  not  easy  and  successful 
conflicts  like  the  war  of  19S7.  but  grinding 
attrition  In  which  the  Arabs  would  have 
a  steadily  Increasing  advantage  driving  from 
their  vastly  greater  numbers,  growing  mili- 
tary and  t*chnologlcal  capacity,  and  the 
enormous  financial  resources  of  the  oil-pro- 
ducing states  of  the  Arabian  world.  The 
Arab  states,  including  those  which  are  now 
conservative,  are  likely  to  be  radlcaJlr^d  as 
their  grievances  feater.  Israel,  already  a  gar- 
rison state,  faces  the  proapact  of  mounting 
terrorism  and  recurrent  war,  of  a  national 
exUtanoa  with  no  semblance  of  security. 
Rowavar  confident  they  may  be  of  thalr  own 


December  20,  1973 


miUtaxy    prowess,    the    Israelis    can    hardly 
relish  this  prospect. 

The  I&raells  must  give  up  the  chimera  of 
absolute  miUtary  security  through  the  oc- 
cupation of  territory,  recognizing  that  Ui 
abaoluta  mUltary  security  of  one  nation 
maans  absoluta  Inseciirtty  for  lu  neighbors. 
Israel  Is  going  to  have  to  reconcile  Itself 
to  compromise,  and  time  is  no  longer  on 
her  Bide.  Whatever  else  the  recent  war  has 
shown.  It  has  shown  that  Israel's  military 
supremacy  Is  a  diminishing  asset.  As  Israel's 
first  Prime  Minister,  the  late  David  Ben- 
Gurlon,  recognized  some  time  ago — 

Real    peace    with    our    Arab    neighbors 

mutual    trust    and    friendship — that   Is   the 
only  true  sectulty. 

Israel  has  won  Us  long  sought  poUtlcal 
goal;  recognition  by  the  Arab  world  of 
Israel  s  right  to  exist.  Guarantees  of  Its  secur- 
ity can  now  be  arrived  at  In  the  Oeneva  con- 
ference. Israel  has  bravely  accepted  the  risks 
of  war.  Now  she  must  be  willing  to  accept  the 
risks  of  peace.  Those  unknown  risks  are  cer- 
tainly far  less  dangerous  than  the  risks  of  a 
fifth  round  of  fighting.  Israel,  therefore,  has 
everything  to  gain  from  a  peace  based  on 
Resolution  242,  a  peace  which  would  allow 
Israel  to  become,  at  long  last,  an  Integral, 
accepted  part  of  the  Middle  East. 

In  this  critical  period  a  special  responsl- 
bUlty falls  on  those  Americans  whoee  efforts 
have  been  designed  so  long  and  so  assiduous- 
ly to  assure  the  survival  of  the  StAte  of 
Israel.  Israel  can  no  longer  hope  to  base  Its 
security  on  military  strength  alone.  If  Israel 
Is  to  be  secure,  a  guaranteed  peace  Is  re- 
quired, and  such  a  peace  will  require  great 
concessions  oy  Israel  as  well  as  bv  her  ad- 
versaries. Israel's  American  friends  can  do 
her  no  greater  service  than  to  commend  this 
necessity  to  her.  There  has  been  no  better 
opportunity  for  Israel  to  strike  a  bargain 
with  her  enemies.  This  la  the  time  for  com- 
promise and  magnanimity,  not  for  belliger- 
ence and  Intransigence. 

The  second  basis  for  the  outside  world's 
concern  for  a  stable  peace  In  the  Middle 
East — hardly  less  compelUng  than  the  danger 
of  a  nuclear  war  between  the  United  States 
and  the  Soviet  Union — la  the  burgeoning 
energy  crisis,  which  now  threatens  the  econ- 
omies of  much  of  the  industrial  world  If  it 
continues,  the  energy  crUls  wUl  grow  to 
frightening  dimensions.  The  world's  economv. 
especially  that  of  the  United  States,  is 
uniquely  dependent  on  one  commodity — oil. 
We  have  taken  oil  for  granted  so  long  we 
cannot  quite  Imagine  the  consequences  of 
being  without  It.  The  Industrial  world  la  now 
learning  the  hard  way. 

With  six  percent  of  the  world's  population, 
the  United  States  consumes  one-third  of  the 
world's  energy  Nearly  half  of  the  energy  we 
consume  comes  from  oil,  and  a  third  from 
natural  gas.  Less  than  two-thirds  of  the  oil 
we  consume  comes  from  domestic  production. 
Because  of  the  Arab  oil  cutoff,  our  supplies 
may  be  as  much  as  20  percent  short  of  meet- 
ing current  requirements. 

The  Impact  on  Western  Bumpe  and  Japan. 
which  (VTp  far  mor^  dependent  on  M!d(il«» 
East  on  will  be  nothing  short  of  catastrophic 
unless  a  solution  m  found  to  the  Arab- Israeli 
conflict  Their  economic  collapse  will  Inevit- 
ably bring  down  our  own  ec<jnomv.  Just  a."!  the 
depression  of  the  1930'8  had  Iti  orlfrlr.  be- 
yond our  shores  The  world's  cronomv  l.i 
more  Interdependent  than  ever  before  as  Is 
our  own  economy.  Although  the  domino 
theory  has  been  shown  to  be  of  dubious 
relevance  In  International  politl-s  it  has  un- 
usual validity  In  international  economies. 

The  Arab  Middle  Kast  poese.sson  at  \f&s\ 
300  bUllon  of  the  500  billion  ban-pio  .  f  pr  ven 
world  oil  re.-^erves  With  no  irparf  productive 
capacity  of  lu  own.  the  United  States— Uke 
other  Industrial  nations —  u  Increasingly  de- 


CONGRESSIONAL  RECORD  —  SENATE 


pendent  on  Middle  Eastern  oil.  and  conse- 
quenUy  In  need  of  g-ood  relations  with  the 
producing  countries  These  countries.  It  Is 
weU  to  remember,  have  no  direct  quarrel  with 
the  United  SUtes  and  have  never  done  any- 
thing to  harm  the  United  States.  Our  de- 
pendence on  their  oU  Is  a  matter  of  naUonal 
interest,  no  more  so  perhaps  than  our  emo- 
tional bond  to  Israel,  but  surely  no  leas  so 
either. 

In  the  long  run.  it  Is  true,  we  are  going 
to  have  to  develop  alternate  sourr-es  of  en- 
ergy. If  only  because  the  world's  supply  of 
fofisU  fuels  Is  limited.  Regardless  of  long- 
term  needs,  however,  and  regardless  of  any 
crash  progranas  we  may  now  undertake,  there 
Is  no  way— absolutely  no  way— to  avoid  re- 
Uance  on  Middle  East  oU  for  at  least  the 
next  several  years.  It  Is  generaUy  agrwd  by 
petroleum  experts  that  it  Is  going  to  take 
some  three  to  five  years  substantially  to  in- 
crease United  Stat«s  production  of  oil  fuels 
and  a  great  deal  longer  to  develop  solar, 
thermal,  nuclear  and  then  fusion  sources 
of  energy. 

The  energy  crisis  clearly  Is  going  to  be  with 
us  for  some  years  to  come,  but  whether  It 
wUl  bring  economic  collapse  or  be  manage- 
able wUl  depend  upon  restoring  good  rela- 
tions with  the  major  oil-producing  states  of 
the  Middle  East.  The  key  to  restoring  the 
good  relations  we  enjoyed  before  the  war  Is 
to  use  otir  Influence  to  bring  about  an  agree- 
ment at  Geneva.  Passage  of  this  bUl  will 
lessen  the  chances  of  reaching  a  settlement, 
thus  prolonging  the  oil  boycott,  Increasing 
the  dangers  of  a  serious  recession  and,  pos- 
sibly, bringing  on  a  worldwide  depression. 

Aside  from  the  danger  this  bill  poses  to 
the  negotiations,  there  are  other  serious  ob- 
lectlons.  Congress  should  not  act  In  unseemly 
haste  on  such  a  vast  grant  of  authority. 
No  Justification  has  been  made  for  $1.2  billion 
of  the  amotmt  requested,  and  ample  author- 
ity exists  to  provide  Israel  with  additional 
arms.  If  the  war  breaks  out  again  Israel  has 
already  been  provided  with  $i  bull,  n  in  arms, 
at  least  restoring  the  losses  she  suffered  dur- 
ing tha  fighting.  An  additional  $300  million 
In  credit  sales  has  been  authorized  in  the 
foreign  aid  bUl.  bringing  to  $2.6  bUllon  the 
total  military  assistance  which  will  be  avaU- 
able  for  Israel  In  FY  1974. 

The  Israeli  Defense  Minister,  Moshe  Dayan, 
was  quoted  In  the  preas  recently  as  saying: 
"We  In  Israel  were  never  as  strong  as  w© 
are  now.  Never."  Administration  witnesses. 
nevertheless,  have  tried  to  Justify  the  addi- 
tional $1.2  billion  on  the  basis  of  "Imponder- 
ables." The  total  military  aid  authorized  by 
this  blU  should  be  limited  to  the  $1  bUUon 
already  provided  If  the  war  resumes,  Israel 
could  bo  supplied  under  the  same  120-day 
authority  used  for  the  recent  resupply  effort. 
Congress  should  not  give  the  President  a  $1.2 
bUllon  contingency  fund,  certainly  not  with- 
out requiring  that  Israel  engage  In  good- 
faith  negotlaUons. 

This  bUl  constitutes  a  vast  grant  of  dis- 
cretionary power  to  the  President,  reversing 
a  healthy  trend  In  recent  years  for  Congress 
t.j  reassert  its  authority  in  foreign  policy. 
(-■onirres.s  l.s  prpparlne  to  give  the  President 
'Jkrt«  blanche  authority  Ui  dole  out  $2  2  bil- 
lion to  one  country  as  he  sees  St  and  without 
any  policy  gtildellnes  The  plea.  "Don't  Ue 
the  President's  hands."  ha.=  a  familiar  ring. 
LaxRe  irrants  of  ai:thorltv  and  money  to  the 
I'reK!de:.t  ■^h-.uld  be  as  ob'ectlonable  In  the 
case  of  Lsrael  as  with  Vietnam.  The  poten- 
tial dangers  are.  In  fact,  greater 

This  blU  must  also  be  viewed  In  the  light 
of  our  economic  situation,  past  and  present 
assistance  to  Israel,  and  the  flow  of  private 
resources  to  that  country. 

Over  the  years,  assistance  to  Israel  from 
both  tha  VA.  Government  and  private 
sources  has  been  substantial.  When  the  as- 


427G9 


sistance  to  be  authorised  In  this  bUl  is  added 
by  the  end  of  this  fiscal  year  the  Uiated 
States  taxpayers  will  have  provided  Israel 
with  $6.7  bUUon  in  loans  and  grants  slnoe 
It  became  a  state  shown  on  the  tables  In  the 
Appendix  Assistance  to  Israel  for  the  cur- 
rent fiscal  year  will  be  an  estlmatad  %2  6 
bllUon  Including  this  raquast,  $833  for  every 
man.  woman  and  child  of  that  country. 

And  the  flow  of  private  American  fln^Jiciat 
aid  to  Israel  has  always  been  substantial. 
The  American  Jeivish  Yearbook  for  1972 
states  that  between  1948  and  1971  the  United 
Jewish  Appeal,  contributions  to  which  are 
tax  deductible,  provided  $1.6  blUion  for  use 
in  Israel  and  that  $1.6  bUllon  In  Israel  bonds, 
exempt  from  the  Interest  equalization  tax.' 
were  sold  here  during  the  same  period.  Whan 
funds  raised  over  the  last  two  years  are  in- 
cluded, the  total  comes  to  soma  $4.2  blulon 
According  to  the  State  Department  Israel 
set  a  privat*  fund-raising  goaj  of  $1.8 'bUllon 
after  the  outbreak  of  the  recent  war  At 
least  two-thirds  of  that  is  likely  to  be  raised 
In  the  United  States,  more  than  the  $i  bil- 
lion In  mUltary  assistance  provided  to  Lsrael 
since  the  war  began.  Israel's  foreign  exchange 
reserves  were  $1.8  billion  at  the  end  ofOc- 
tober  and  the  Slate  Department  reports  that 
her  foreign  exchange  position  remams 
strong,"  hardly  an  apt  description  of  our 
own  situation. 

RecenUy  Congress  approved  a  bUl  to  raise 
the  federal  debt  limit  to  a  record  $475  bil- 
lion, an  Uicrease  of  $119  bUllon  over  the  last 
five  years.  This  request  for  Israel  wUl  bring 
the  total  United  States  foreign  aid  progr^ 
for  the  1974  fiscal  year  to  99:2  bUllon.  shown 
on  the  table  in  the  Appendix.  aU  to  be  paid 
for  by  more  deficit  spending.  Our  nauon 
faces  a  recession,  high  unemployment  con- 
tinued Inflation,  a  serious  reduction  In  reve- 
nues, and  a  cutback  Ui  domestic  programs  of 
great  Unportance  to  mUllons  of  Americans 
I  offered  an  amendment  to  require  the  re- 
lease of  funds  '.inp.3unded  for  certain  do- 
mestic water  and  sewer  projects  among  other 
in  order  to  stress  the  question  of  domastlo 
versus  foreign  priorities  involved  In  this  bUl 
That  amendment  was  tabled  by  a  vote  of  11 
to  3,  prevenung  a  vote  on  the  merits  of  a 
fundamental  issue. 

In  view  of  the  proven  record  of  generous 
private  support  from  the  Jewish  community 
for  Israel,  Israel  s  strong  foreign  reserve  posi- 
tion, the  state  of  our  government's  fiscal  con- 
dition, and  the  gloomy  prospects  for  our 
economy,  i  believe  that  any  mUltary  assist- 
ance authorized  for  Israel  sho'old  be  ca  a 
credit  basis    not  as  grants. 

This  bUl  Is  vastly  more  toportant  than  the 
giving  away  of  $2.2  builcn  of  the  •axpavers' 
money.  Our  national  tnterejts  a.c  we-  as 
those  of  Israel  the  Arabs  and  the  w,>r:d  are 
lied  to  a  s-accessful  oo.iference  m  Oeneva 
We  must  not  do  anything  to  undertr  -  e  ihA' 
conference  It  is  an  opponumtv  wbJch  w« 
cannot  afford  t.:  miss  It  offe.--^  the  best  '  ..pe 
for  real  pe&c*  in  the  region  ^in^e  t*e  '-  '-d 
Uig  of  L&rae!  A  stalemate  all:  a.<r'--e  a  "'-^ 
round  of  fighting,  great  d^njrer  t<-  u.-^"  « 
existence,  and  a  return  to  the  o.  id  war  if  we 
can  avoid  Involvement  in  a  hot  one 

A  faUure  at  Geneva  wi:i  also  assure  world- 
wide economic  rfcaos.  The  prospect  of  tha 
world's  industrial  machine  and  transporU- 
tlon  system  sltUng  kUa  for  lack  of  on  to  not 
pleasant.  But  unless  progrtsss  Is  made  In 
the  negotiations  within  the  next  sevanU 
months  we  are  In  for  economic  dlflJcultles  of 
a  magnitude  which,  at  this  point,  are  un- 
Imaginable 

I  support  the  Prealdent  and  Sacrotary  ot 
Sute  Kissinger's  basic  policy  In  tba  ICddla 
East,  to  seek  a  settlemant  baaad  on  Reaota- 
Uon  242.  That  objecUva  Is  In  Intanat  of  aU 
mankind.  I  want  to  strengthen  Secretary  Kis- 
singer's hand  In  exerting  Unltad  states  In- 


42779 


COM.Ki.rMoNAl.   Klc  OKD  — SENATE 


December  20,  1973 


fluence  to  bring  about  a  compromise  agre«- 
meat.  This  Is  why  I  oppose  passage  of  this 
bill.  The  domestic  political  pressiires  which 
have  resulted  In  such  hasty  action  In  Con- 
gress on  the  authorization  and  appropriation 
bills  wUl  now  shift  to  the  White  House  and 
the  Department  of  State.  Whether  those  pres- 
sures can  he  resisted  stad  the  additional  91.2 
withheld  Iri-m  Israel  remains  to  be  seen. 

But  the  real  damage  will  have  been  done: 
the  signal  will  have  gone  out  to  the  world 
that  the  United  States  does  not  Intend  to 
pursue  a  more  even-handed  policy.  As  the 
onl"  country  In  a  position  to  take  all  parties 
involved,  maintenance  of  United  States 
credibility  Is  most  important.  Our  deeds  must 
match  our  words.  This  bill  speaks  not  of 
peace  but  of  Aar. 

The  passage  of  this  bill  at  this  critical 
Juncture,  may  have  serious  consequences  for 
the  peace  negotiations.  There  is  too  much  at 
stake  fcr  the  United  States.  Israel,  and  the 
world  to  run  such  a  risk. 
APPENDIX     TO     INDIVIDUAL    VIEWS    OP 

SENATOR  J     W.   FULBRIOHT 
AMENDiirNTS     TO     H  R.     11088     Propostd     bt 

Senator  Fvlbricht  ajjo  Rejected   bt  the 

FoRzicN  Relations  Committee 

COMP-_L\NC«    WITH    SECVBITY    COUNCIL    RESOLtJ- 

TIONS 

I.  Sec.  7.  No  assistance  shall  be  furnished 
under  this  or  any  other  Act.  and  no  sales  shall 
be  made  under  the  Agriculture  Trade  Devel- 
opment and  Assistance  Act  of  1954,  to  any 
country  if  the  President  finds  that  such  coun- 
try U  not  taking  appropriate  steps  to  com- 
ply with  United  Nations  Security  Council 
resolution  242  (1967)  and  338  (1973)  con- 
cerning peace  In  the  Middle  East. 

I  E^splanatlon :  This  amendment  Ls  designed 
to  insure  that  United  States  assistance  to 
any  country  in  the  Middle  East  Is  conditioned 
on  compliance  by  that  country  with  Secu- 
rity Council  resolutions  242  of  1967  and  338 
of  this  year.  It  covers  all  foreign  aid  pro- 
grams and  all  countries,  affecting  Jordan,  foi 
example,  as  well  as  Israel. 

It  wUl  help  strengthen  the  President's 
hand  In  trying  to  arrange  a  settlement  based 
on  the  Security  Council  resolutions,  which 
the  Administration  supports.  And  It  will  em- 
phasize that  the  purpose  of  this  bill  la  to  help 
achieve  peace,  not  to  finance  a  resumption  of 
the  war.) 

ASStSTANCX    MOT   A    COMMITMENT 

n.  Sec.  7.  Military  and  economic  assistance 
provided  by  the  United  States  to  Israel  and 
authorized  or  appropriated  pursuant  to  this 
or  any  other  Act  shall  not  be  construed 
as  a  commitment  by  the  Uiilt«<l  States  to 
Israel   for    Its   defense. 

(Explanation:  This  amendment  simply 
states  that  the  act  of  giving  aid  to  Israel  does 
not  constitute  a  commitment  by  the  United 
States  to  defend  that  country.  It  is  Identical 
to  a  provision,  sponsored  by  Senator  Javtts. 
In  the  Special  Foreign  Assistance  Act  of  1971 
relating  to  Cambodia  ) 

RZQUTEEMXNT  TOM.   PmXSmENTTAL   FtXOmO 

m.  Sec.  7.  Not  more  than  » 1.200,000,000 
of  the  funds  made  available  pursuant  to  sec- 
tion 2  shall  be  fiimlshed  to  Israel  until  the 
President  has  found  that  Israel  is  taking  ap- 
propriate steps  to  comply  with  resolutions 
243  (1967)  and  338  (1973)  of  the  United  Na- 
tions Security  Council.  Any  such  finding 
•ball  be  reported  promptly  to  the  Committee 
on  Foreign  Relations  of  the  Senate  and  the 
Sp>eaker  of  the  House  of  Representatives. 

(Explanation:  Amendment  number  3  la 
similar  to  amendment  number  1.  Before  more 
than  %\2  billion  in  aid  could  be  provided  to 
Israel,  the  President  would  be  required  to 
make  a  finding  that  Israel  was  taking  ap- 
propriate steps  to  comply  with  UN  Security 
Council  resolutions  242  and  338  ) 


rai.i.reo  roa  limitation  on  asms  sritkxicts 

TO    THE    MIDDLE    EAST 

IV.  Sec.  7.  It  ts  the  sense  of  the  Congress 
that.  In  order  to  promote  peace  in  the  Middle 
East,  the  President  should  make  every  effort 
to  reach  an  International  agreement,  to  be 
supervised  by  the  United  Nations,  providing 
for  effective  limitations  on  the  quantity  sind 
type  of  arms  which  can  be  supplied  by  out- 
side sources  to  nations  In  the  Middle  East. 

(Explanation:  This  amendment  would  put 
Congress  on  record  In  favor  of  working  out 
an  International  agreement,  imder  United 
Nations  supervision,  to  limit  arms  shipments 
to  the  Middle  East.) 

REQtnaiNG    THAT    ASSISTANCE    FOB    ISRAEL    BX    IN 
THE    rORM    OF    CREDITS 

V.  A.  On  page  1,  beginning  on  line  9,  strUce 
out  ■mllltarj-  assistance  or  foreign  military 
sales  credits,  or  for  both,  as  the  President 
may  determine,  for  Israel"  and  Insert  in  lieu 
thereof  •foreign  military  sales  credits  for 
Israel". 

B.  In  section  3  on  page  2,  beginning  on 
line  18,  strike  out  the  first  sentence,  and 
on  line  23  strike  out  'such"  and  after  the 
word  "funds"  insert  "appropriated  under 
section  2  of  this  Act". 

(Explanation:  Amendment  number  five 
would  require  that  the  assistajice  authorized 
by  this  bill  be  in  the  form  of  credits.  The 
bill  now  allows  the  President  to  decide  how 
much  Is  to  be  given  In  credits  and  how  much 
In  grants. 

In  view  of  the  proven  record  of  generous 
private  supporc  for  Israel.  Israel's  stro\jig  for- 
eign reserve  position,  and  the  state  of  our 
government's  fiscal  condition,  and  the  gloomy 
prospects  for  our  own  economy,  aid  to  Israel 
should  be  on  a  credit — not  a  grant — basis. 
The  President  can  stUl  set  generous  credit 
terms — 10  years  and  3  percent  Interest,  or  be 
even  more  liberal.  If  he  chooses  to  do  so.) 

CHANGE    OF    TITLE 

VI.  A.  Change  the  title  of  the  Act  from 
"To  provide  emergency  security  assistance 
authorizations  for  Israel  and  Cambodia"  to 

To    authorize    appropriations    for    mUltary 
assistance  for  Israel". 

B.  Change  the  short  title  from  "Emergency 
Security  Assistance  Act  of  1973  "  to  "Military 
Assistance  for  Israel  Act  of  1973". 

(E.xplanatlon:  Amendment  six  would  mere- 
ly change  the  title  to  reflect  more  accurately 
the  purpose  of  the  bill.) 

RELEASE    op    IMPOUNDED    PtrNDS 

(Comparable  to  a  provision  of  the  Foreign 
Assistance  Act  of  1971  and  S.  837  approved 
by  the  Committee  earlier  this  year,  i 

VIII.  Sec.  7.  LlmlUUon  on  Use  of  Funds — 
(a)  Except  as  otherwise  provided  In  this 
section,  none  of  the  funds  appropriated  to 
carry  out  the  provisions  of  this  Act  shall 
be  obligated  or  expended  after  January  31, 
1974.  until  the  Comptroller  General  of  the 
United  States  certifies  to  Congress  that  all 
funds  previously  appropriated  (Including  any 
authorization  to  create  obligations  In  ad- 
vance of  appropriations),  and  thereafter 
Impounded  during  fiscal  years  1973  and  1974 
for  activities,  programs,  and  projects  under 
the  Departments  of  Agriculture,  Transporta- 
tion. Housing  and  Urban  Development,  and 
Health,  Education,  and  Welfare,  have  been 
released  for  obligation  and  expenditure. 

(b)  The  provisions  of  this  section  shall 
not  apply  with  reapect  to  funds  Impounded 
In  accordance  with  any  provision  of  law 
specifically  authorizing  the  Impoundment 
of  funds  of  any  such  department  If  (1 )  such 
provision  Is  contained  In  any  law  author- 
izing, or  making  appropriations  for,  any 
activity,  program,  or  project  of  such  depart- 
ment, and  (2)  the  impoundment  Is  made 
only  with  respect  to  and  in  accordance  with 
such  proTlalon  authorizing  the  Impound- 
ment. 


(c)  For  purposes  of  this  section,  impound- 
ing Includes — 

(1)  withholding  or  delaying  the  expendi- 
ture or  obligation  of  funds  (whether  by  es- 
tablJahlng  reserves  or  otherwise)  appro- 
priated or  otherwise  obligated  for  projects  or 
activities,  and  the  termination  of  authorized 
projects  or  activities  for  which  approprla- 
ticns  have  been  made; 

(2)  withholding  any  authorization  to  es- 
tablish obligations  In  advance  of  appro- 
priations; or 

(3)  any  type  of  executive  action  which 
effectively  precludes  the  obligation  or  ex- 
penditure of  the  appropriated  funds. 

(Explanation:  This  amendment  is  de- 
signed to  prohibit  the  use  of  these  funds 
after  January  31.  1874.  unless  the  President 
has  released  funds  Impounded  for  four 
departments— Agrlcultuie,  'Iransportatlon, 
HEW,  and  HUD. 

(It  Is  similar  to  an  amendment  that  be- 
came part  of  the  1971  foreign  aid  authoriza- 
tion Act.  A  similar  provision  was  also  added 
by  the  Committee  to  the  mUltary  aid  bUl 
earlier  this  year;  however,  since  a  continu- 
ing resolution  was  voted  for  the  remainder 
of  the  1973  fiscal  year,  that  provision  was 
not  enacted  into  law.) 

Estimated  assistance  to  Israel — Fiscal  year 
1974  and  cumulative  assistance — Fiscal 
years  1949-73 

Estimated   fiscal 

I.  MUltary  assistance:  year   1974 

1.  Elmergency  military  as- 

sistance--. W.  200.  000,  000 

2.  Military     credit     sales 

authorized  In  the 
Foreign  Assistance 
Act  .- 300.000,000 


Total,  mUltary 2.600.000,000 

^— ■ —  — 

n.  Economic  assistance:  > 

1.  Supporting  assistance.  50,000,000 

2.  Aid     for     Soviet     Im- 

migrants     36,500,000 

3.  Public    Law    480    food 

»ld ---  58.865.000 

4.  Aid    to    Israel    educa- 

tional   Institutions..  4,000.000 


Total,  economic...        149, 365, 000 


Total       assistance, 

fiscal  year  1974..     2.649,366,000 
Assistance,  fiscal  years  1949- 

73    3.112,100.000 


Total  assistance,  fis- 
cal   years    1949-74..     5.761.465.000 

'  Does    not    Include    bousing    Investment 
guarantees 

Estimated  private  flows  to  Israel  as  a  result 
of  the  tear ' 

Estmated   fiscal 
I.  Worldwide    fund    raising         Year  1974 
goal  set  after  outbreak 
of  the  war :^..  •1.900.000.000 

1.  United  Jewish  App«ia..    (1.260.000.000) 

2.  Oovemment    of    Israll 

bonds (660,000.000) 


n.  Funds  to  be  raised  In  the 
United  States : 

1.  United  Jewish  Appeal. 

2.  Government    of   Israel 


760.  000.  000 


487,  500.  000 


bonds'   

Total  to  be  ralaod 
In  United  States.     1.237.600.000 

>  Data  from  Department  of  State. 

'  Estimated    at    75    percent    of    worldwld* 

toUl. 


Deceviber  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 

TABi.E  1.-P8I0R  UNITED  STATES  ASSISTANCE  TO  ISRAEL,  FISCAL  YEARS  1949-73 

[MjUions  o<  doOarsI 


1j_  I    (  1 


Fijcal  ye»r- 


1964 


1965 


1966 


1967 


1968 


1969 


1970 


1971 


1972 


1973 


Total  Totil 

fiscal  years      fiscal  years 

1964-73         1949-73 


Grants: 

Supporlinj  assistance 

Immigrant  assistance 

American  schools  and  hospitals. 

PuWk  Law  iSa  title  II 

Other (1948-62) 

Loans: 

Public  Law  480  title  1.. 

EXIM  bank  long  term 


0.4 


0.5 


0.9 


'1.0 
.6 


&0 
.5 


0.6 


12.5 
.4 


2.5 

.3 


50.0 

2.0 

5.6 

.4 


50.0 

49.0 

4.4 

.3 


100.0 

51.0 

32.0 

4.9 


16.6           28.3           25.9 51.3           36  1           41  0           55  S  53  8 

tAllJ  Dank  long  term 3.4 9.5 /           £'6            1^;^           III  l{\ 

Aid  housing  guarantee 1  SO  0 

miTi^rZi'""^  *•'*'"*'" i^-n-        ij-t '^•° ^'0 2^0 8i-'0 30.0 54i6"  30010 

""•f"""* 20.0  20.0  10.0  5.5 


147.6 
21.3 


356.1 
135.0 


100.0 
51.0 
32.0 
61.4 

278.0 

561.5 
371.6 


300.0 


1.394.9 
55.5 


1.422.3 
234.3 


Total  assistance. 

Grants 

Loans 


37.0 


65.1 
(.5) 
(64.6) 


126.8 
(12^9^ 


23.7  8^8         160.3  93.9         634.3         432.9       J472.6         2.129.4       3.112.1 

(1.6)         (6.5)  (.6)        (12.9)         (2.8)        (58.0)      (103.7)  (187.9)        (522.4) 

(22.1)        (76.3)      (159.7)        (81.0)      (631.5)      (374.9)    >(368.9)      (1,941.5)    (2.589.7) 


■  Equivalent  in  local  currency. 
>  Preiiminsor. 


<  Not  included  in  tolals. 


ESTIMATED  FOREIGN  ASSISTANCE.  FISCAL  YEAR    1973-74 
[In  thousands] 


Hscal  year  1973     Fiscal  year  1974 


I.  Military  assistance: 

1.  Military  assistance  grants J589  100 

2.  Military  assistance  to  South  Vietnam  and  Laos..  2. 735,'  000 

3.  Military  assistance  to  Israel 

4.  Additional  assistance  to  Cambodia ll"'.'. 

5.  Excess  defense  articles I 185,066" 

6.  Ship  transfers ........  121,000 

7.  Real  property  transfers .„  721091 

8.  Public  Law  480  defense  grants 157'  900 

9.  Foreign  military  credit  sales 400  000 

10.  Supporting  assistance  (outside  Indodiina) 155,'  300 

Total,  military  assistance 5, 064, 391 

II.  Bilateral  economic  assistance: 

1.  I  ndochine  economic  aid 444,700 

2.  AID  development  assistance-general 974^300 

3.  South  Asian  relief 101,100  . 

4.  American  schools  and  hospitals  abroad 25^532 

5    International  organizations 127,472 

6.  Contingency  Fund . 23.998 

7.  Administrative  expenses 61  579 

8.  Narcotics  control  program 20^500 


$642,000 

1, 126, 000 

2, 200, 000 

200.000 

150,000 

6.500 

244,  553 

162. 080 

325,000 

125,000 


5,181,133 


504.000 
837,500 


19,000 
155.022 
30,000 
50,100 
42,500 


Fiscal  year  1973      Fiscal  year  1974 


9.  Peace  Corps 

10.  Public  Law  480  assistance 

Total,  bilateral  economic  assistance 

III.  U.S.  contributions  to  international  financial  institutions: 

1.  International  Development  Association 

2.  Inter-American  Development  Bank 

3.  Asian  Development  Bank 

Total.  U.S.  contributions  to  international  finan- 
cial institutions 

IV.  Miscellaneous: 

1.  Migration  and  refugee  programs 8. 500 

2.  Assistance  for  Soviet  refugees 50,000 

3.  Inter-American  Foundatwn.. 3,473 

4.  Latin  American  Highway 20,000 

Total,  miscellaneous 81, 973 

Total,  foreign  assistance 9. 004, 205 


UO,S60 

1  ao.ioo 

$77,100 
1  146,800 

3,119,841 

2.862.022 

320, 000 
418, 000 

320,000 
693,000 
100  000 

738.000 

1,113,^ 

8,800 
36,500 
13,285 
30.000 


88,585 


9.  244, 740 


SeCtTKITT  COtTNCn,  RESOLUTION  243 

(November  27,  1967) 
(Unanimously  Adopted) 

The  Security  CouncU, 

Expressing  its  continuing  concern  with  the 
grave  situation  In  the  Middle  East. 

Emphasizing  the  Inadmissibility  of  the  ac- 
quisition of  territory  by  war  and  the  need 
to  work  for  a  Just  and  lasting  peace  in  which 
every  State  in  the  area  can  live  in  security. 

Emphasizing  further  that  all  Member 
States  m  their  acceptance  of  the  Charter  of 
the  United  Nations  have  undertaken  a  com- 
mitment to  act  in  accordance  with  Article 
2  of  the  Charter. 

1.  Amrma  that  the  fulfillment  of  Charter 
principles  requires  the  establishment  of  a 
Just  and  lasting  peace  in  the  Middle  East 
which  should  include  the  application  of  both 
the  following  principles: 

(1)  Withdrawal  of  Israeli  armed  forces  from 
territories  occupied  in  the  recent  conflict;  . 

(U)  TermlnaUon  of  all  claims  or  states  of 
belligerency  and  respect  for  and  acknowl- 
edgement of  the  sovereignty,  territorial  in- 
tegrity and  political  Independence  of  every 
State  in  the  area  and  their  right  to  live  In 
peace  within  secure  and  recognized  bound- 
aries free  from  threats  or  acU  of  force; 

2.  Affirms  further  the  necessity 

(a)  For  guaranteeing  freedom  of  naviga- 
tion through  international  waterways  in  the 
area; 

(b)  Por  achieving  a  Just  settlement  of  the 
refugee  problem: 

(c)  Por  guaranteeing  the  terrltortal  invio- 
lability and  poUtlcal  independence  of  every 
State  in  the  area,  through  measures  Includ- 
ing the  esUblishment  of  demlUtarlEed  rones. 


3.  Requests  the  Secretary-General  to  des- 
ignate a  Special  Representative  to  proceed  to 
the  Middle  East  to  establish  and  maintain 
contacts  with  the  States  concerned  In  order 
to  promote  agreement  and  assist  eSorts  to 
achieve  a  peaceful  and  accepted  settlement 
In  accordance  with  the  provisions  and  prln  ■ 
clples  In  this  resolution: 

4.  Requests  the  Secretar;.  0«:.e.--a:  v-  re- 
port to  the  Security  Council  on  the  progress 
of  the  efforts  of  the  Special  Repiesentatlve  as 
soon  as  possible. 

REJiOLtnoN  33B — 1973 

(Adopted    by    the    Security    CouncU    at    its 

1747th  meeting,  on  21/22  October  1973) 

The  SecuHty  Council 

1.  Calls  upon  all  parties  to  the  present 
fighting  to  cease  all  firing  and  terminate  all 
military  activity  immediately,  no  later  than 
12  hours  after  the  moment  of  the  adoption 
of  this  decision.  In  the  positions  they  now 
occupy; 

2.  Calls  upon  the  parties  concerned  to  start 
immediately  after  the  cease-fire  the  Imple- 
menUtlon  of  Security  Council  resolution  242 
(1967)  in  all  of  its  parts; 

3.  Decides  that  !rr.rr,ed!ately  and  concu.'- 
rently  with  the  ♦a.'-f  f.re  v.egotlatlons  start 
betTppr  'he  parties  euuceriied  under  appro- 
priB'f  H  •^;  ices  aimed  at  establishing  a  Just 
and    I    'H'   •■  r^fRce  In  the  Middle  East 

Mr     HUMPHFIEY.    Mr.    President     I 

vhai:  .'r,ake  a  brief  comment  The  amend- 
.•ri>':.t  •*•».'.  h:-(njKht  up  In  committee  It 
u-R.^  tablpci  m  rommiUf-e  prlmanly  on  the 
ba.sls  of  t'ne  argument  I  made  al  that 
tl.me.  namely,  that  It  was  the  judgment 


of  the  majority  of  the  committee  that 
the  bill  before  us  should  be  pas&e-d  as  15 
and  should  go  to  the  Presider.:  The 
thought  in  mmd  tvas  not  to  seek  to  en- 
courage combat  or  war,  but  rather  to 
give  assurance  to  the  people  of  L'^r&el 
that  they  do  have  a  friend,  a5  we  ivsk 
them  to  make  concessions,  which  ti.ey 
will  have  to  make  under  Resolutions  242 
and  33S  of  the  United  Nations. 

Let  u5  remem.ber.  as  the  chairman  hun  - 
self  has  said,  that  Lsrael  has  supported 
both  rescjiutlons  and.  therefore  i.-^  com- 
■mitted  to  tliem  already,  ;ii5t  a.*-  il^e 
United  States  of  .America  ha.-  supported 
the  resOiUt;on5  and  ti'.e  Soviet  UrJon 
has  supported  the  re,sol.,uo;i5 

I  think  it  15  im;xirt,^nt  to  pnx-eed 
quickly  t^.  k>'1  the  bLi  Lhroui^h  both 
Houses  of  Congres.';  and  then  to  the  Pres- 
ident's desi:  for  his  signature.  As  Secre- 
ttuy  Kissinger  opens  the  conference  at 
G^net-a,  he  will  have  the  reafBnnatlon  of 
c^ngresi  in  support  of  his  policies.  It  wUl 
support  Secretary  Kts.singer's  presenta- 
tion of  our  view.s  on  the  Middle  ELast 
crisis  as  tiiey  come  before  the  confer- 
ence. 

Mr  Pre.'^ider.t  I  a.<:k  una'.;m~-x-  con- 
sent tJriat  tiie  text  of  the  Security  Coun- 
cil Re.solution  338  be  printed  at  t.hi5  point 
in  the  RtroRr  and  al.-^o  thKt  an  a.-tlcle 
entitled  " .\r.  Ir.ter;)ret.al;o::  of  P..e5o]u- 
ti.in  242.'  written  by  our  former  .Embas- 
sador to  the  United  Nations,  Axthur  J. 


42772 


Goldberg,  which  was  published  In  the 
Washington  Star-News  of  December  9 
1973.  be  printed  in  the  Ricord. 

There  being  no  objection,  the  items 
were  ordered  to  be  printed  In  the  Rec- 
OHD.  as  follows: 

SscrrMTT  Corrscu,  RzsoLtmoN  338  » 

The  Security  Council 

1.  Calla  upon  all  parties  to  the  present 
flghtiag  to  cease  aU  firing  and  terminate  all 
military  activity  Immediately,  no  later  than 
12  hours  after  the  moment  of  the  adoption 
of  this  decision,  in  the  positions  they  now 
occupy; 

2.  Calls  upon  the  parties  concerned  to  start 
Immediately  after  the  cease-flre  the  Imple- 
mentauon  of  Security  CouncU  resolution  242 
(1»67)  in  all  of  its  parts: 

3.  Decides  that.  Immediately  and  concur- 
rently with  the  cease-fire,  negotiaMons  <:Tart 
between  the  parties  concerned  under  appro- 
priate auspices  aimed  at  establishing  a  lust 
and  durable  peace  in  the  Middle  East. 

WrrHD8.Aw.u.    Nkb)    Not    b*   Total— Aw    Iw- 

TXRPBeTAnow   OF   RzsoLunoir   242 

(By  Arthur  J.   Goldberg) 

P'»*ce  in  the  Middle  East  is  not  at  hand 

but  it  may  be  achievable  if  a  common  will 

to  peace  Is  shared  by  the  parties  and  If  the 

superpowers,  acting  as  "honest  brokers  "  do 

not  over-play  their  hands. 

.v^'^'*  *  K°*^  '^y  ^  st*rt  Is  to  recall 
the  rationale  that  guided  the  United  States 
wid  many  other  government*  at  the  United 
Nations,  during  the  long  period  of  debate 
and  negotiations  following  the  8U-Day  War 
and  culminating  in  the  unanimous  adopUon 
^  the  cntlcaUy  important  ResoJuUon  243 
by  the  Security  Council  on  Nov  22  19fl7 
T^s  principle  was  often  stated  by  me  In 
these  words:  -To  return  in  the  sltuaOon  as 
It  was  on  June  5.  1967,  is  not  a  prescription 
lor  peace,  but  for  renewed  hostilities  " 

I  beUeve  that  this  principle  was  eouaH 
then    I  believe  it  Is  sound  now. 

I  think  It  Is  appropriate  to  recall  also 
What  the  Umted  States,  immediately  after 
the  June  war.  said,  at  the  highest  level 
about  the  nature  of  a  peace  setUement  In 
the   Middle  East: 

"But  who  will  make  this  peace  where  aU 
others  have  faUed  for  20  years  or  more? 
Clearly  the  parties  to  the  conflict  must  be 
the  parties  to  the  peace  ...  it  is  hard 
to  see  how  it  is  possible  for  nations  to  live 
together  in  peace  if  they  cannot  learn  to 
PMBon  together  .  The  naUons  of  the 
region  have  had  only  fragile  and  violated 
truce  Unes  for  20  years  What  they  now  need 
are  recognized  boundaries  and  other  ar- 
rangements that  wUl  give  them  security 
against  terror,  destruction  and  war  " 

Again.  I  believe  that  this  insight  was  right 
then,  r  beUeve  it  is  right  now.  though  others 
can  and  should  assist  In  the  efforts  to 
achieve  settlement 

United  Nations  resolutions,  particularly 
In  recent  times,  are  more  honored  In  the 
breach  than  in  the  observance  Notwith- 
standing, there  are  several  reasons  why  Ree- 
oluUon  342  may  prove  to  be  the  framework 
for  the  settlement  of  the  Middle  East  im- 
passe 

The  resolution  has  been  "accepted"  by  the 
principal  contending  parties,  although  their 
respective  Interpretations  of  the  Resolution 
wfctalf  differ  It  Is  the  only  substantive  reso- 
lution (excluding  calls  for  a  ceaseflre)  relat- 
ing to  the  Middle  East  accepted  both  by  the 
parties  and  the  Security  CouncU  since  the 
Six-Day  War  and  virtually  even  before  And, 
deaplte  recurring  threats  by  both  (Ides  to 
repudiate  Resolution  342.  their  acceptance* 
have  never  been  withdrawn.  Notwithstanding 

•  Adopted  on  Oct.  23  at  12  50  ajn  by  a  vote 
of  14  to  0  (China  did  not  participate  In  the 
voting). 


CONGRESSIONAL  RECORD  —  SENATE 


pejorative  expressions  and  resoluUon*  In 
recent  times  by  the  General  Assembly  and 
other  organ*  generally  critical  of  Israel,  and  a 
resolution  proposed  to  the  Security  Council 
but  vetoed  by  the  Unltwl  SUtes.  seeking  to 
re-Interpret  Resolution  342.  the  resolution 
continues  to  command  the  support  of  the 
great  powers,  the  Uiuted  SUtes  and  the 
Soviet  Union. 

If  I  am  correct  in  my  postulate  that  the 
forthcoming  peace  negotiations  will  be  baaed 
on  Resolution  343.  as  Secretary  of  State  Kis- 
singer said  last  week  and  as  this  faU's  UJ». 
Resolution  338  contemplates,  it  become*  Im- 
portant to  examine  both  the  test  and  the 
legislative  history  of  this  Resolution. 

Resolution  343  is  a  carefuUy— -some  would 
say  arUully— drafted  set  of  guideline*  de- 
signed to  promote  agreement  and  to  assist 
the  parties  to  achieve  a  peaceful  and  accepted 
settlement.  The  stated  goal  la  the  establish- 
ment of  a  Just  and  lasting  peace  In  which 
every  sUte  in  the  area  can  live  in  security. 

The  resolution  expressly  and  by  Implica- 
tion repudiates  the  concept  of  an  imposed 
peace  and  opts  for  "agreement"  and  "ac- 
cepted settlement  •  by  and  between  the  par- 
ties. Thiis.  the  experience  of  the  1967  Imposed 
settlement,  following  the  1956  war.  Is  not  to 
be  repeated. 

Resolution  343.  In  most  explicit  terms,  re- 
jects the  long-asserted  claim  of  the  Arab 
countries  of  the  existence  of  a  sUte  of  bel- 
Ugerency  against  Israel.  The  resolution  rec- 
ognizes that  beUlgerency  cannot  coexist  with 
peace. 

The  resolution  calls  foe  respect  and  ac- 
knowledgment of  the  sovereignty  of  every 
state  to  the  area.  Since  Israel  never  denied 
the  sovereignty  of  its  neighboring  countries, 
this  language  obviously  requires  these  coun- 
tries to  acknowledge  the  sovereignty  of  Israel 
The  legislative  history  of  243.  as  reflected  in 
the  debates  and  votes  In  the  Security  Coun- 
cU and  Special  Session  of  the  General  As- 
sembly held  in  1967.  shows  that  there  was 
little  support  in  the  U.N.  oonmiunlty  at  the 
time  for  the  view  that,  after  two  decades 
r-srael's  very  existence  co\ild  be  denied  by  Its 
Arab  neighbors 

In  dealing  with  the  withdrawal  of  Israel's 
forces,  the  resolution  does  not  expUcltly  re- 
quire that  Israel  withdraw  to  the  lines  oc- 
cupied by  It  on  June  6.  1967.  before  the  out- 
break of  the  war  The  Arab  States  urged  such 
language;  the  Soviet  Union  proposed  this  to 
the  Security  Council  In  June  of  1967.  and 
YugoeUvla  and  some  other  nations  to  the 
Special  Session  of  the  General  Assembly 
which  followed  the  adjournment  of  the 
Security  Council.  But  such  withdrawal  lan- 
guage did  not  receive  the  requisite  support 
either  In  the  Security  CouncU  or  in  the 
Assembly. 

Indeed.  Resolution  242  simply  endorses  the 
principle  of  "withdrawal  of  Israel's  armed 
forces  from  territories  occupied  In  the  recent 
conflict."  and  interrelates  this  with  the  prin- 
ciple that  every  state  in  the  area  U  entlUed 
to  live  in  peace  withm  "secure  and  recos- 
alzed  boundaries."  In  light  of  Arab  unwUl- 
Ingneas  to  acknowledge  Israel's  right  to  sov- 
erelgn  existence,  this  language,  though  speak- 
ing In  terms  of  all  states,  is  designed  primar- 
ily to  assure  Israel's  right  to  secure  bound- 
aries recognized  by  Its  Arab  neighbors. 

The  notable  omissions  in  regard  to  with- 
drawal are  the  words  the  and  ail  and  the 
June  5.  1967  lines  (according  to  the  English 
language  text,  the  version  actually  voted  on 
by  the  Security  CouncU).  In  other  words. 
there  Is  lacking  a  declaration  requiring  Is- 
rael to  withdraw  from  the  or  aU  the  terri- 
tories occupied  by  It  on  and  after  June  a, 
1967  Rather,  the  resolution  speaks  of  with- 
drawal from  occupied  terrttorie*,  without  de- 
fining the  extent  of  withdrawal.  And  the 
notable  presence  of  the  words  secure  and 
reco«m»d  boundaries."  by  implication  con- 
template* that  the  parUea  could  make  terri- 
torial adjustment*  in  their  peace  setUement 


December  20,  1973 


encompassing  leas  than  a  complete  with* 
drawal  of  Israeli  forces  from  occupied  terri- 
tories. 

The  Arab  Nations,  to  buttress  their  claim 
that  the  resolution  calls  for  a  complete  Is- 
raeU  withdrawal,  say  the  Israeli  Interpre- 
tation of  the  resolution's  withdrawal  lan- 
guage I*  overly  restrictive.  They  point  to  the 
language  of  the  resolution  emphasizing  "the 
Inadmissibility  of  th«  acquisition  of  terri- 
tory by  war."  This  language,  the  Arab  states 
argue.  In  effect,  calls  for  complete  withdrawal 
of  Israeli  forces  from  all  the  territories  oc- 
cupied by  them  m  the  Six  Day  War.  Fur- 
ther, the  Arab  states  contend  that  the  UJ*. 
charter  Itself,  in  spirit,  supports  their  con- 
tention that  military  conquest  of  territory 
Is  Inadmissible. 

It  Is  passing  strange  that  the  concept  of 
the  InadmlsslbUlty  of  acquisition  of  terri- 
tory by  war  is  Insisted  and  relied  upon  by  the 
Arab  states  and  the  Soviet  Union.  The  Arab 
states  acquired  territory  as  a  consequence  of 
the  1948  war,  contrary  to  the  U.N.  Partition 
Resolution.  The  I&raeUs  also  acquired  addi- 
tional territory  In  the  aftermath  of  this 
war.  which  they  Justify  on  the  basis  that  they 
were  wUUng  to  abide  by  the  partition  lines 
but  were  forced  to  war  and  acquired  terri- 
tory as  a  result  of  the  attack  upon  them  by 
the  Arab  states. 

More  surprising  Is  the  Soviet  support  of 
the  principle  of  the  InadmlsslbUlty  of  the 
acquisition  of  territory  by  war.  The  Soviet 
Union  holds  territory  m  Its  firm  grasp  ac- 
quired in  recent  times  by  war  from  Finland. 
Poland.  Romania.  Japan  and  other  states. 
Even  our  own  country,  some  Ume  ago,  ac- 
quired territory  by  war  from  Mexico  and 
Spain,  and  numerous  other  examples  Involv- 
ing many  nations  could  he  cited. 

The  resolution  speaks  of  "respect  and  ac- 
knowledgement of  ...  the  territorial  In- 
tegrity of  every  state  In  the  area."  This,  too. 
Is  much  relied  upon  In  support  of  the  de- 
mand for  complete  withdrawal  of  IsraeU 
forces  from  all  of  the  Arab  territories.  It  U 
rather  Ironic,  that,  for  many  years,  it  was 
the  Israelis  who  sought  respect  for  their  ter- 
ritorial Integrity  which  was  denied  them  by 
the  Arab  States. 

But  the  territorial  language  of  the  reso- 
lution Is  qualified  by  other  language  de- 
claring the  right  of  all  states  "to  live  with- 
in secure  and  recognized  boundaries  free 
from  threats  and  acts  of  force  "  The  se- 
cure and  recognized  boundaries  language, 
the  legislative  history  shows,  represenU  a 
major  concession  to  Israel  which,  as  I  have 
pointed  out.  found  the  armistice  lines  often 
violated  and  Insecure. 

The  logic  coupling  the  territorial  and  se- 
cure boundarte*  concept-  is  that  both  ter- 
ritorial integrity  and  sec.  ?e  and  recognized 
boundaries  are  to  be  reconciled  m  the  give 
and  take  of  negotiations  between  Israel  and 
the  Arab  States  culminating  in  peace  agree- 
ments. 

The  most  that  can  be  said  of  the  with- 
drawal and  related  language  of  Resolution 
242.  In  light  of  lU  legislative  hUtorv.  Is  that 
It  neither  commands  nor  prohibits  terri- 
torial adjustments  In  the  peace  agreements 
contemplated  by  the  resolution,  although  It 
"tUU"  In  favor  of  adjustments  to  ensure 
secure  boundaries  for  Israel  This  Is  not  to 
say  that  the  resolution  contemplates  a  com- 
plete redrawing  of  the  map  of  the  Middle 
East.  Further,  the  withdrawal  language  of 
the  resolution  would  seem  to  Indicate  that 
Its  patent  ambiguities,  and  the  differing  in- 
terpretations of  the  parties,  can  only  be 
resolved  by  an  accepted  and  agreed  upon 
settlement  concluded  after  negotiations  be- 
tween the  parties. 

On  certain  aspects,  the  resolution  is  less 
amblg\*ous  than  its  withdrawal  language 
Resolution  242  specifically  deals  with  free 
PMsage  through  International  waterways. 
In  precise  language  It  affirms  "the  necessity 
for     guaranteeing     freedom     of     navlgaUon 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


42773 


through  mternaUonal  waterways  in  Mm 
area."  This  language  demonstrates  the  lack 
of  sympathy  of  the  powers,  big  and  small, 
against  mterferenoe  with  free  passage  In 
international  waterways.  With  an  end  of 
beUlgwrency.  no  good  reason  should  exist  un- 
der International  law  for  denial  to  Israel 
of  access  to  the  Suez  Canal  and,  parllciUarly, 
to  the  Straits  of  'Hran— the  closing  of  which 
by  President  Nasser  of  Egypt  was  imlversal- 
ly  recognized  and  forewarned  by  Israel  to  l)e  a 
causus  beUum.  The  resolution  slmUarly 
would  preclude  a  blockage  of  Bab  el  Man- 
deb.  The  Israelis  have  made  It  crystal  clear 
that,  whatever  the  pressures,  they  wUl  con- 
tinue to  Insist  upon  direct  contractual  assur- 
ances on  these  polnU  from  Egypt. 

The  resolution  by  its  very  words,  the  ac- 
tion of  the  Security  Council  and  the  legisla- 
tive history  also  recognizes  that  Israel,  the 
Arab  States  and  the  world  community  Joint- 
ly share  responsibility  to  afford  better  Jus- 
tice to  the  refugees— the  casualties  of  the 
1948.  1956  and  1967  wars.  The  resolution 
does  not  reiterate  the  language  of  prior  UJ4. 
resolutions  calimg  for  total  repatriation  or 
optional  compensation  for  these  refugees,  a 
concept  long  resisted  by  Israel.  Rather,  it  Im- 
plicitly recognizes  that  aU  must  participate 
In  solving  this  problem — Israel  by  a  more 
generous  policy  of  repatrii.tlon  and  compen- 
sation, the  Arab  states  by  ceasing  to  utUlze 
refugees  as  political  pawns,  and  their  camps 
as  breeding  grounds  for  hate  and  despair, 
and  the  world  community  both  by  more 
generous  financial  assistance  and  liberal  Im- 
migration policies. 

The  resolution  refers  to  the  utUlty  of  the 
establishment  of  demUltarlzed  zones  In  as- 
suring peace  and  guaranteeing  territorial  In- 
vlolabUlty.  The  location  of  the  demUltarlzed 
■ones  U  left,  obviously,  to  the  parties  to 
negotiate. 

A  notable  and  purposeful  omission  In  the 
resolution  Is  any  specific  reference  to  the 
status  of  Jerusalem  and  Its  faUure  to  reaf- 
firm past  va.  resolutions  for  the  Interna- 
tionalization of  the  city.  Resolution  242  thus 
realistically  recognizes  the  desuetude  of  the 
Internationalization  resolutions.  It  further 
reflects  the  belief,  at  that  time,  on  the  part 
of  a  con.>iiderable  number  of  U.N.  members 
that  King  Hussein,  having  rejected  Israel's 
offer  not  to  engage  in  war  and  having  been 
ousted  from  East  Jerusalem  by  force  of  arms, 
cannot  now  hope  to  partition  Jerusalem 
again,  but,  at  best,  might  In  a  peace  agree- 
ment negotiate  with  the  Israelis  for  some 
special  status  for  Jordan  with  regard  to  Mos- 
lem holy  places— a  sUtus  compatible  with 
the  unity  of  Jerusalem  under  Israeli  sov- 
ereignty and  administration.  However,  r»60lu- 
tlon  of  status  of  Jerusalem  Is  complicated  bv 
the  strong  position  of  Saudi  Arabia  and  by 
the  oU  embargo 

There  is  further  light  on  the  ambiguities 
and  meamng  of  Resolution  242  In  its  legisla- 
tive history. 

The  cease-flre  resolutions  which  were 
adopted  during  and  foUowlng  the  Six-Day 
War  differed  dramatically  from  previous  res- 
olutions of  the  councU  in  the  Israeli-Arab 
wars  of  the  preceding  19  years.  In  the  earlier 
resolutions,  the  call  for  a  cease-fire  was 
usually  accompanied  by  a  demand  for  a  with- 
drawal of  troops  to  the  positions  held  be- 
fore the  oonfllot  erupted.  In  June  of  1967. 
however,  no  withdrawal  provisions  were  In- 
corporated as  part  of  the  cease-fire  resolu- 
tions. This  was  not  by  accident  but  rather 
as  a  result  of  the  reaction  by  a  majority  of 
the  Security  CouncU  to  what  had  occurred. 
As  the  debates  revealed,  the  requisite  ma- 
jority of  the  councU  was  unwlUlng  to  vote 
forthwith  withdrawal  of  Israeli  forces  be- 
cause of  their  conviction  that  to  return  to 
the  prior  armistice  regime  would  not  serve 
the  goal  of  a  Just  and  lasting  peace  between 
the  parties.  Proof  that  thU  wa*  ».  is  p.-o- 
vlded  by  the  action  of  the  Security  Council 


with  respect  to  a  resolution  pressed  at  the 
time  by  the  Soviet  Union.  The  Soviet  dele- 
gate offered  a  specific  resolution  not  otUy 
reaffirming  the  councU's  call  for  a  cease-fire, 
but.  additionally,  condemning  Israel  as  the 
aggressor  and  demanding  a  withdrawal  of 
Its  forces  to  the  positions  held  on  June  6. 
1967.  before  the  conflict  erupted.  But  this 
resolution  of  the  Soviet  Union,  although  put 
to  a  vote,  did  not  command  the  support  of 
the  requisite  nine  members  of  the  Security 
CouncU. 

Israel  was  not  condemned  as  an  aggressor 
because  of  the  conviction  of  a  majority  of 
the  Security  CouncU,  shared  by  world  opin- 
ion, that  President  Nasser's  actions,  par- 
ticularly the  eviction  of  the  U.N.  peacekeep- 
ing forces,  the  substantial  movement  of  his 
troops  into  the  smal.  and  the  blockade  of 
shopping  In  the  Straits  of  Tlran.  were  the 
causes  of  the  war,  regardless  of  who  fired 
the  flrst  shot. 

But  even  more  fundamentaUy,  the  debates 
In  the  councU  made  It  clear  that  a  majority 
of  members  felt  strongly  that  something 
more  was  needed  to  assure  peace  than  the 
fragUe  armistice  agreements  that  had  pre- 
vaUed  for  the  previous  19  years  and  had 
frequently  l)een  breached. 

In  short,  the  unwillingness  to  support  the 
Soviet  resolution  for  a  withdrawal  of  IsraeU 
forces  to  the  positions  they  held  before  June 
6,  1967,  was  based  upon  the  conviction  of 
this  substantial  number  of  the  Security 
CouncU  membera  that,  whatever  the  extent 
of  withdrawal  of  Israeli  troops.  It  should 
this  time  be  In  the  context  of  accepted  and 
agreed  upon  peace  settlements,  ensuring  se- 
cure and  recognized  boundaries  for  Israel. 

Why  did  the  Arab  States  accept  Resolu- 
tion 242,  and  why  do  they  stUl  profess  ac- 
ceptance of  it?  Why  did  Israel  accept,  and 
why  does  It  stUl  adhere  to  Its  acceptance? 

Having  been  rebuffed  both  in  the  Security 
CouncU  and  in  the  Assembly,  the  Arab  States 
belatedly  came  to  the  conclusion  that  the 
language  of  Resolution  242  was  the  best 
they  could  hope  for  from  the  UJf.  They  ob- 
viously counted  on  the  resolution's  ambigui- 
ties to  permit  them  to  assert  their  own  mter- 
pretatlon  of  the  resolution.  They  also  heavUy 
relied  upon  major  Soviet  support  both  dlplo- 
matlcaUy  and  mUltarUy.  Further,  they  con- 
ceived that  the  passage  of  time  would  erode 
the  support  of  the  United  States  and  lUte- 
mlnded  states  for  Israel. 

To  a  certain  extent,  Arab  calculations  have 
been  realized.  World  opinion  overwhelmingly 
supportive  of  Israel  as  the  "underdog"  at 
the  time  of  the  war  has,  in  some  degree, 
shifted  to  a  measure  of  sympathy  for  the 
defeated  and  now  "underdog"  Arab  States 
Some  countries  have  watered  down  their 
prior  support  of  the  resolution's  principles — 
witness  the  recent  resolution  proposed  to  the 
Security  CouncU  and  vetoed  by  the  United 
SUtes  which  sought  to  re-Interpret  Resolu- 
tion 242.  although  purportmg  to  adhere  to  It. 
Witness  also  the  abject  attitudes  of  many 
nations  to  the  Arab  oU  "blackmaU." 

But  I  trust  that  the  United  States  has  not 
departed  from  Its  support  of  242.  as  Inter- 
preted by  the  United  States  at  the  Ume  of 
Its  adoption.  It  should  still  remain  the  posi- 
tion of  the  United  States  that  the  way  to 
peace  In  the  Middle  East  Is  a  negotiated 
peace  agreement  by  and  betwe^-n  the  parties, 
based  on  the  real  meaninp  of  R^'soUition  242, 
rather  than  the  restoration  of  the  prior 
and  often  breached  Armtetlre  Agreements 
through  emt>odlment  in  a  peace  agreement. 
The  Israelis  accepted  Resolution  242.  in- 
terestUigly  enough,  for  some  of  the  same 
reasons  as  their  Arab  antagonists.  It  was  the 
best  Israel  could  hope  to  get  from  the  U.N 
under  the  given  circumstances  They  were 
rightly  fearful  that  their  diplomatic  support 
would  erode  ;f  Israel  proved  to  be  Ir.transl- 
gent.  Like  the  Arab  6t.aies.  the  Israelis  con- 
cluded that  the  resolution  s  ambiguities  per- 


mitted them  to  assert  their  own  Interpreu- 
tion  of  the  resolution.  The  Israelis  also  were 
unwilling  to  unduly  provoke  the  Soviets, 
feartog  greater  involvement  by  them  in  the 
area — a  fear  Justified  by  recent  events  Most 
Important.  Israel,  rightly  or  wrongly,  recog- 
nized the  danger  of  a.ienatlr.g  the  U:.;ted 
SUtes  goveriinnent  and  Americ&n  public 
opinion  by  an  cverly-l^nfleiible  position  In 
light  of  Israels  need  for  iL.i:itary  hardware 
and  economic  assistance  which  has  been 
forthcoming 

Despite  the  passsige  of  time  since  the  adop- 
tion of  Resolution  242  and  the  recent  war 
and,  perhaps,  because  of  these  events,  I  ad- 
here to  the  view  that  the  resolution  does 
provide  the  basis  to  achieve  a  peaceful  and 
accepted  settlement  between  the  parties 
provided  they  wUl  come  to  share  the  wlU  and 
courage  to  achieve  a  Just  and  lasting  peace, 
which  Is  the  goal  of  the  resolution.  Perhaps 
my  'optimism  "  Is  based  on  the  fact  that  the 
resolution  gives  somethmg  to  both  sides. 

I  do  not.  however,  wish  to  tnlnlmlze  the 
difficulties  In  achieving  a  peace  agreement. 
Only  strong  and  secure  leeMlers,  buttressed  by 
popular  support,  can  consummate  a  peace 
settlement;  for  peace,  if  It  Is  to  be  lasting. 
necessarily  Involves  compromise  and  pKiUtlcal 
risks.  It  Is  an  historical  truth  that  the  mak- 
ing of  peace  often  calls  for  greater  courage 
than  the  making  of  war. 

UKrrED  Ni'riOKS  SECtmrrr  CotrNcn. 
RBSOLtmoN  242 — 1967 

(Adopted  by  the  Security  CouncU  at  Its 
1382d  Meeting,  on  November  22,  1967) 

The  Security  CotmcU, 

Expressing  Its  continuing  concern  with  the 
grave  situation  in  the  Middle  East, 

Emphasizing  the  madmlsslbUlty  of  the 
acquisition  of  territory  by  war  and  the  need 
to  work  for  a  Just  and  lasting  pveace  In  which 
every  SUte  In  the  area  can  live  In  seciu-lty. 

Emphasizing  further  that  all  Member 
States  In  their  acceptance  of  the  Charter  of 
the  United  Nations  have  undertaken  a  com- 
mitment to  act  In  accordance  with  Article  3 
of  the  Charter. 

1.  Affirms  that  the  fulfillment  of  Charter 
principles  requires  the  esUbllshment  of  a 
just  and  lasting  peace  In  the  Middle  East 
which  should  Include  the  application  of  both 
the  foUowlng  prmclples : 

(1)  Withdrawal  of  Israeli  armed  forces 
from  territories  occupied  m  the  recent 
conflict; 

(U)  Termination  of  aU  claims  or  sUtes  of 
belligerency  and  respect  for  and  acknow^ 
edgement  of  the  sovereignty,  territorial  In- 
tegrity and  political  mdependence  of  every 
SUte  m  the  area  and  their  right  to  live  In 
peace  within  secure  and  recognised  bound- 
aries free  from  threats  or  acts  of  force; 

2.  Affirms  further  the  necessity 

(a)  For  guaranteeing  freedom  of  naviga- 
tion through  tatematlonal  waterways  In  the 
area; 

(b)  For  achieving  a  Just  setUement  of  the 
refugee  problem ;  -«. 

(c)  For  guaranteeing  the  territorial  in- 
violability and  political  Independence  of 
every  SUte  in  the  area,  through  measures 
including  the  establishment  of  demUltarlsed 
zones: 

3.  Requests  the  Secretary-General  to  des- 
ignate a  Specla;  Represenutlve  to  p.-ocoed 
to  the  Middle  Ea^t  to  esubll&h  and  maintain 
contacts  with  the  Sutes  concerned  in  order 
to  promote  agreement  and  a.-isL'-t  efforts  to 
achieve  a  jjeaoeful  and  ac/^epted  settlement 
In  accordance  with  the  provisions  and  prin- 
ciples In  this  resolution; 

4.  Requesu  the  Secretary -General  to  report 
to  the  Security  CouncU  on  the  progress  of  the 
efforts  of  the  Special  Representative  as  soon 
as  possible 

Mr.  HUMPHREY  Mr  President,  un- 
less there  is  further  debate,  it  is  my  in- 


-Li  7  74 


CONGRESSIONAL  RECORD  —  SENATE 


tentlon  to  move  to  table  the  amendment 
of  the  Senator  from  Arkansas. 

Mr.  FULBRIGHT.  Mr.  President.  I 
shall  make  only  an  observation  on  the 
article  written  by  former  Ambassador 
Goldberg.  I  have  great  admiration  for 
Ambassador  Goldberg  as  a  man,  as  a 
jurist,  and  as  an  Ambassador.  But  I 
think  his  interpretation  of  the  resolution 
demonstrates  his  extremel.v  great  talent 
for  semantics  and  Jugglmg  of  words. 

And  I  think  that  anj'one  reading  Reso- 
lution 242 — any  ordinary  layman  read- 
ing it — would  understand  it  better  than 
former  Justice  Goldberg,  a  distinguished 
lawyer,  who  seems  overly  concerned  with 
all  the  nuances  such  as  whether  the 
French  translation  or  the  English  trans- 
lation should  be  read. 

As  I  understand  it.  In  the  French 
translation  the  word  "the"  is  used  before 
the  word  "territories."  In  the  English 
translation  the  "the"  does  not  appear. 
A  great  argument  has  arisen  over  the 
use  of  "the"  before  the  word  "territory." 
I  submit  that  any  ordinary  laymaui 
with  commonsense.  reading  that  resolu- 
tion, would  understand  that  it  means  a 
substantial  withdrawal  from  the  oc- 
cupied territory,  which  is  what  was  in- 
tended. Justice  Goldberg's  interpretation 
makes  a  nullity  of  the  whole  resolution. 
I  cite  one  historical  Justification:  the 
ofiBcial  pronouncement  by  the  former 
Secretary  of  State,  speaking  as  the  Sec- 
retary of  State  in  the  Nixon  administra- 
tion, that  it  meant  a  "substantial"  with- 
drawal from  all  the  territory.  That  was 
a  pretty  good  description  of  what  I  think 
It  means.  It  certainly  was  Intended  to  be 
practically  all  the  temtorj'  that  was 
taken. 

I  make  no  criticism  whatever  of  Mr. 
Goldberg,  because  I  have  the  greatest  re- 
spect for  him  as  a  man,  as  a  jurist,  and 
as  an  Ambassador,  but  I  think  he  has 
been  led  far  afield  by  his  dealing  with 
the  semantics  of  the  two  translations. 

Mr.  HUMPHREY.  Mr,  President,  I 
move  to  table  the  amendment. 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  the  motion  to  table. 

Mr.  FULBRIGHT.  Mr.  President,  the 
yeas  and  nays  have  been  ordered. 

The  PRESIDINO  OFFICER.  They 
have  not  been  ordered  on  this  motion. 

Mr.  FULBRIGHT.  Mr.  President,  I  ask 
for  the  yeas  and  nays. 

The  veas  and  nays  were  ordered. 
The  PRESIDING  OFFICER.  The  ques- 
tion Is  on  agreeing  to  the  motion  to  lay 
on  the  table  the  amendment  of  the  Sen- 
ator from  Arkansas.  The  yeas  and  nays 
have  been  ordered,  and  the  clerk  will  caU 
the  roU. 

The  second  assistant  legislative  clerk 
called  the  roD. 

Mr  ROBERT  C  BYRD  I  announce 
that  the  Senator  from  Nevada  'Mr. 
Caitnow*.  the  Senator  from  Idaho  (Mr. 
Chttsch  » ,  the  Senator  from  Mississippi 
<Mr.  Eastlakd).  the  Senator  from  North 
Carolina  (Mr  Esvm).  the  Senator  from 
Alaska  <Mr  Gravtl>.  the  Senator  from 
South  Carolina  'Mr  Holukcs^  .  the  Sen- 
ator from  Wyoming  (Mr.  McGw) ,  the 
Senator  from  Utah  'Mr  Moss),  and  the 
Senator  from  Georgia  iMr,  Talmadci) 
are  necessarily  absent. 


December  20,  1973 


Mr.  GRIFFIN  I  announce  that  the 
Senator  from  New  Hampshire  (Mr.  Cot- 
ton) is  absent  t)ecause  of  Illness  in  his 
family. 

The  Senator  from  Vermont  (Mr. 
Aiken),  the  Senator  from  Oklahoma 
(Mr.  Bellmoni,  the  Senator  from  Utah 
(Mr.  Bennett  I,  the  Senator  from  Ten- 
nessee (Mr.  Brock >.  the  Senator  from 
Massachusetts  i  Mr.  Brooke),  the  Sena- 
tor from  New  York  <Mr.  Buckley),  the 
Senator  from  Hawaii  (Mr.  Fonc).  the 
Senator  from  Idaho  (Mr.  McClure),  the 
Senator  from  Kansas  (Mr.  Pearson)  ,  the 
Senator  from  UlinoLs  (Mr.  Percy),  the 
Senator  from  Delaware  (Mr.  Roth),  the 
Senators  from  Ohio  <Mr.  Saxbe  and  Mr. 
Taft),  the  Senator  from  Texas  (Mr. 
Tower),  and  the  Senator  from  Con- 
necticut (Mr.  Weicker)  are  necessarily 
absent. 

The  Senator  from  New  Mexico  (Mr. 
DoiCENici)  is  detained  on  official  busi- 
ness. 

If  present  and  voting,  the  Senator 
from  Hawaii  (Mr.  Fonc).  the  Senator 
from  Illinois  iMr.  Percy),  the  Senator 
from  Texas  (Mr.  Tower ) .  and  the  Sena- 
tor from  Connecticut  (Mr.  Weicker > 
would  each  vote  "yea." 

The  result  was  announced — yeas  62, 
nays  12.  as  follows: 

I  No.  607  Leg.] 
TEAS — 63 


Allen 

Baker 

BarUett 

Bayh 

B«all 

Bentsen 

Bible 

Blden 

Byrt. 

Harry  P  .  Jr. 
Byrd.  Bobert  C. 
Cue 
ChUea 

ClATt 

Oook 
Cranston 
Dole 
Domlnick 

Eagleton 
P&nnln 

Qrlffln 


Abourezk 

Burdlck 
Curtis 
Pulbrtght 
Oold  water 


Oumey 
Hart 
Hartke 
HaakeU 

Hruaka 

Huddleston 

Hughes 

Hmnphrey 

Inouye 

Jackaon 

Javtt< 

Johnston 

Kennedy 

Long 

McClellan 

McOoyem 

Mclntyre 

Magnuaon 

Mathtas 

Uondale 

Montoya 

NAYS— 12 

Hansen 

Hatfield 

EUthawmy 

Helms 

Uanafleld 


Muskle 

Nelaoa 

Nunn 

Pmckwood 

Pastore 

PeU 

Proxmlre 

Randolph 

RlblcoS 

ScbweJker 

Scott.  Hugh 

Spar  km  an 

Stafford 

Stennis 

Stevens 

Stevenson 

Symlnirton 

Thurmond 

Tunney 

Williams 

Yoxmg 


Uetcalf 
Scott, 
WUUamL. 


NOT  VOTINO— 36 

Domenlcl  Pearson 

Eastland  Percy 

Errln  Roth 

Pong  Saxbe 

Oravel  Taft 

HoUlnga  Talmadge 

McClure  Tower 

McO««  Weicker 


Aiken 

Bellmon 

Bennett 

Brock 

Brooke 

Buckley 

Cannon 

Church 

Cotton 

So  the  motion  to  table  was  agreed  to. 

Mr.  JAVITS  Mr.  President.  I  suggest 
the  absence  of  a  quonim. 

The  PRESIDING  OFFICER.  The  clerk 
will  call  the  roU. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll, 

Mr,  CASE,  Mr  President.  I  ask  unani- 
mous consent  that  the  order  for  the 
quorum  call  be  rescinded. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

Mr,  CASE.  Mr.  President,  I  ask  unani- 
mous consent  that  during  the  further 


consideration  of  this  measure,  amend- 
ments, and  votes  thereon,  my  assistant. 
Stephen  Bryen.  be  granted  the  privilege 
of  the  floor. 

The  PRESIDING  OFFICER.  Without 
objection,  it  Is  ordered. 

Mr.  JAVITS.  Mr.  President.  I  make 
the  same  request  in  behalf  of  Peter 
Lakeland,  my  assistant. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 

What  Is  the  pleasure  of  the  Senate? 

AMENDMENT    NO.    931 

Mr.  FULBRIGHT.  Mr.  President.  I 
call  up  my  amendment  No.  931.  and  ask 
for  its  immediate  consideration. 

The  PRESIDING  OFFIC:t:H.  The 
amendment  will  be  stated. 

The  legislative  clerk  read  as  follows: 

At  the  end  of  the  bill,  add  the  following 
new  section: 

Sic.  7,  Military  and  economic  assistance 
provided  by  the  United  States  to  Israel  and 
authorized  or  appropriated  pursuant  to  this 
or  any  other  law  shall  not  be  construed  as 
a  oommltiment  by  the  United  States  to  Israel 
for  Its  defense. 

Mr,  FULBRIGHT.  Mr.  President,  as 
my  colleagues  can  see,  this  timendment 
is  a  very  simple  one.  It  merely  says  that 
the  act  of  giving  aid  to  Israel  shall  not  be 
construed  as  a  commitment  by  the 
United  States  for  its  defense. 

In  the  early  period  of  the  Vietnam 
war,  the  then  Secretar>'  of  State,  Dean 
Rusk,  used  to  cite  the  fact  that  Congress 
had  each  year  approved  a  foreign  aid  biU 
containing  money  for  South  Vietnam  as 
one  of  the  elements  constituting  what 
was  called  a  "commitment"  to  defend 
that  country. 

The  view  that  we  somehow  became 
committed  to  go  to  war  to  defend  an- 
other country  by  giving  foreign  sdd 
startled  me.  The  Senate  repudiated  that 
thesis,  by  a  vote  of  70  to  16.  when  it 
adopted  the  National  Commitments  Res- 
olution, the  text  of  which  I  ask  unani- 
mous consent  to  have  printed  In  the 
Record  at  this  point. 

There  being  no  objection,  the  resolu- 
tion was  ordered  to  be  printed  in  the 
Record,  as  follows : 

10.  National  Commttment — Scnatx  Rxsoltt- 
TION  85.   Acanm  to   Jttnx   35,    1969 

RXSOLCmON 

Whereas  accurate  definition  of  the  term 
"natlonaJ  commitment"  in  recent  years  has 
become  obscured:  Now.  therefore,  be  It 

Resolved,  That  (1)  a  national  commitment 
for  the  purpose  of  this  resolution  means  the 
use  of  the  Armed  Forcee  of  the  United  State* 
on  foreign  territory,  or  a  promise  to  assist  a 
foreign  country,  government,  or  people  by 
the  use  of  the  Armed  Fircee  or  financial  re- 
sources of  the  United  States,  either  imme- 
diately or  upon  the  happening  of  certain 
events,  and  (2)  It  Is  the  sense  of  the  Senate 
that  a  national  commitment  hv  'he  United 
States  results  only  from  afll.'matlre  action 
taken  by  the  executive  a.id  ieg-isJatlve 
branches  of  the  United  States  Oovpmm<>nt 
by  means  of  a  treaty,  statute,  or  ronr  .i.'-reiit 
resolution  of  both  Houses  of  Conjn-e«8  spe- 
cifically providing  for  such  commitment 

Mr,  FULBRIGHT,  This  amendment 
only  makes  a  matter  of  law.  In  connec- 
tion with  this  particular  bill,  a  general 
principle  which  the  Senate  has  sup- 
ported overwhelmingly  in  t.he  paj^t  The 
t«xt  of  the  amendment  is  identical,  ei- 


Decemher  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42775 


cept,  for  countries,  to  the  one  now  on  the 
statute  book.s  relative  to  Cambodia. 

That  amendment  was  originated  by  the 
Sk'nator  Iroin  New  York.  I  see  no  reason 
wti>-  a  different  principle  should  apply 
to  Israel,  and  I  urge  the  Senate  to  adopt 
this  amendment. 

Mr,  HUMPHREY'.  Mr.  President,  let 
me  take  just  a  brief  moment  to  respond. 

The  chairman  has  lndirat.ed  that  we 
did  pius.s  in  the  Senate,  on  June  25,  1969. 
S.  Res.  85,  known  as  the  National  Com- 
mitment Resolution.  I  simply  point  out 
that  the  bill  before  us  makes  no  com- 
niitment;  it  does  not  define  any  com- 
mitment: it  does  not  state  any  commit- 
ment; and  the  resolution  that  we  have 
already  adopted  In  1969  makes  it  very 
clear.  Insofar  as  the  Senate  is  concerned, 
what  a  national  commitment  would  be. 
by  definition. 

Therefore,  as  I  move  to  table  this 
amendment.  It  is  not  an  objection  to  its 
text  or  its  purpose,  but  rather  because  It 
Is  superfluous  and  because  additional 
amendments  to  this  bill  would  result  in 
Its  delay.  I  think  It  is  Important  that  It 
be  passed  and  signed  by  the  President 
immediately. 

Mr.  JAVITS.  Mr.  Kresident,  will  the 
Senator  yield  without  losing  his  right  to 
the  floor? 

Mr.  HUMPHREY.  I  yield. 

Mr.  JAVITS.  Mr.  President,  I  wish  to 
emphasize  the  great  respect  which  we 
have  for  our  chairman's  thinking,  even 
though,  as  Is  well  known,  I  differ  with 
him  180  degrees  on  this  Lssue. 

I  deeply  believe,  Mr,  President,  that 
he  has  made  his  case,  and  a  ver>'  impor- 
tant case,  that  this  is  not  the  way  hi 
which  to  bring  about  the  best  expecta- 
tion of  a  successful  conclusion  at  Geneva. 
But  I  Interpret  the  vote  in  our  com- 
mittee, which  was  15  to  2  to  report  this 
bill  without  amendment,  as  a  determina- 
tion by  me  and  I  think  most  of  the  other 
Senators  whom  I  have  talked  with — they 
can  speak  for  themselves — that  it  is  a 
necessar>'  element  if  we  are  to  have  tmy 
real  hope  in  Geneva, 

Now,  none  of  us  is  God  We  may  be 
wrong,  and  Senator  Fulbright  may  be 
right.  But  In  carr>-lng  out  the  policy 
which  we  believe  Is  the  necessary  policy, 
without  in  any  way  casting  discredit  on 
any  amendment,  which  I  do  not  wish  to 
do,  either — as  the  Senator  says,  it  is  an 
amendment  which  I  myself  Interposed 
successfully  in  respect  of  the  Vietnam 
war — the  only  procedure  we  have  which 
will  get  this  matter  effected  is  the  ta- 
bUng  procedure,  and  I  think  It  is  very 
Important  that  Senators  understand  the 
basic  reason  why  we  have  really  no  other 
course,  having  derided  the  fundamer.tai 
question,  as  raised  by  Senator  PVlbright 
himself,  differently  f n.iin  the  way  he  does. 

One  la.'Jt  jxiint,  Mr  Pre.'^ident  ■  It  !.•:,  ver>- 
clear  that  Senator  PrLBRir.HT.  honoring 
his  own  .<;tatement  to  the  Senate,  seeking 
as  he  properly  must  a.«  the  chairman,  the 
proper  respect  for  hl.s  committee,  when 
an  appropriation  preceded  an  author- 
ization, with  everyone's  support  he  had 
written  into  the  appropriation  bii;  that  it 
was  subject  to  authorizing  ]egl.';!at!'.n 

That  is  fine,  and  we  all  agreed  But 
now.  the  dignity  having  been  preser; ed. 
we  had  all  better  recognize  that  if  our 


^decision  is  to  be  effective,  it  has  to  be 
effective  within  the  next  2  days. 

So  I  think  it  is  a  tribute  to  ail  Senators. 
as  well  as  Senator  Fulbright  and  Sen- 
ator Mansfield,  both  of  whom  are  on  the 
other  side  of  this  particular  Lssue,  that 
recognizing  that  fart.  Senator  Fulbright 
has  undertaken  to  present  the  case  with 
his  usual  eloquence,  and  then  to  allow  the 
Senate  to  express  its  will  rather  quicklj', 
as  the  situation  demands, 

I  think  that  ought  to  be  said.  Mr. 
President,  We  all  live  together  for  a  long 
time,  and  I,  for  one.  would  like  to  make 
it  clear  that  I  understand  it  fully,  and 
that  it  Is  deeply  gratifying  in  terms  of 
being  a  U.S.  Senator  that  men  can  pro- 
ceed with  differences,  and  yet  agree,  with 
a  high-minded  understanding,  that  there 
comes  a  time  when  they  really  should  be 
resolved. 

I  thank  my  colleague  for  yielding. 

Mr.  HUMPHREY.  Mr.  President,  I 
would  just  like  the  record  to  note  that 
H.R,  11088.  the  bill  before  us,  does  not 
make  a  commitment  of  the  United 
States  of  America  to  the  defense  of 
Israel, 

Second,  Israel  herself  has  not  asked 
the  United  States  for  a  commitment  In 
her  defense.  Israel  has  never  asked  for 
manpower  from  the  United  States. 
What  she  has  asked  for  In  the  past  was 
credits,  and  she  has  received  them. 

In  this  bill,  if  the  bill  is  passed,  she 
will  have  the  opportunity  for  both  cred- 
its and  grants.  But  in  the  light  of  the 
notice  adopted  by  the  Senate  known  as 
the  National  Commitment';  Resolution 
back  hi  1969,  and  in  the  light  of  what 
both  the  Senator  from  New  York  iMr. 
Javits)  and  myself  have  said,  I  think  It 
Is  very  clear  that  we  are  not  committing 
the  United  States  to  any  military  ac- 
tion. We  are  not  committing  the  United 
States  In  terms  of  a  treaty.  As  a  matter 
of  fact,  the  Senator  from  Arkansas  is 
the  one  who  has  suggested  the  possi- 
bility of  a  treaty. 

So  I  would  only  say  that  while  I  find 
great  merit  in  the  language  of  the 
amendment,  I  believe  It  would  be  un- 
timely. I  think  it  would  complicate  the 
consummation  of  this  legislation,  and 
therefore  I  oppose  it- 
Mr.  FULBRIGHT.  Mr.  President,  will 
the  Senator  yield  for  a  question? 

Mr.  HUMPHREY.  I  yield. 

Mr.  FULBRIGHT.  With  regard  to  the 
treaty,  the  Senator  knows  very  weD  that 
I  have  spoken  of  a  treaty  only  as  a 
measure  resulting  from,  and  subsequent 
to,  the  successful  negotiation  of  a  settle- 
ment, and  in  pursuance  of  such  a  settle- 
ment and  a  guarantee  by  the  Security 
Council  nf  the  United  Nations 

Mr,  HUMPHREY  Yes,  I  understand 
that,  and  I  am  plea'^ed  that  again  the 
Senator  has  noted  his  thinking  on  It. 

Mr.  FULBRIGHT  I  ask  the  Senator 
from  New  York,  who  was  the  sponsor  of 
the  one  on  Cam.bodla.  which  wa.<;  sub.se- 
quent  to  that  1969  law.  If  this  one  is 
superfluou";  now,  why  was  It  not  super- 
fluous at  that  time''  I  .supported  it  then, 
as  did  the  Senator  from  New  York,  and 
I  think  the  Senator  from  Minnesota  .'^up- 
ported  it  I  ask  them.  'Why  is  it  super- 
fiuous  now  and  not  then? 

Mr  HUMPHREY   For  the  very  simple 


reason  that  we  had  the  Southeast  Asia 
Treaty  Organization,  which  gives  us 
greater  commitments  in  that  area. 

Mr,  FULBRIGHT.  Not  to  Cambodia 

Mr.  HUMPHREY,  No.  but  In  that  area 
of  the  world.  Let  me  say  also  that  we  had 
military  operaticn.=  in  that  area.  We  had 
been  involved  militarily,  .And  let  me  say 
again  that  I  see  no  reason  to  complicate 
the  legislative  language,  Israel  had  asked 
for  no  commitment;  we  are  making  no 
commitment.  What  we  are  doing  is  au- 
thorizing an  appropriation  cf  $2.2  bllhon. 
which  has  already  been  act.ed  on  by  the 
.'^ppropnaticns  Committee, 

Mr  FULBRIGHT,  The  Senator  from 
New  York  said  that  in  order  for  this  to  be 
effective  this  has  to  be  passed  now.  This 
bill  does  not  die  with  our  recess  or  ad- 
journment of  this  session  of  Congress, 
win  it?  It  will  still  be  on  the  calendar 
and  still  subject  to  action  after  we  come 
b£Lck  next  year? 

Mr.  HUMPHREY.  The  Senator  from 
Arkansas  is  ahsolutely  right,  as  he  said 
so  fairly  earUer  today.  It  is  because  of  the 
interpretation,  ttie  question  of  whether 
we  think  it  will  be  helpful  or  not  helpful 
at  the  negotiations  in  Geneva.  I  happen 
to  beUeve  that  passage  wdll  be  helpfuL 

Mr.  President,  I  move  to  table  the 
amendment  of  the  Senator  from  Ar- 
kansas. 

Mr.  FULBRIGHT.  Mr.  President,  I  ask 
for  the  yeas  and  nays. 

The  yeas  and  nays  were  ordered. 

Mr.  HUMPHREY  Mr  President 

The  PRESIDING  OFFICER  (Mr. 
Nunn).  The  motion  Is  nut  debatable. 

Mr.  ROBERT  C.  BYRD.  Mr.  Presi- 
dent, the  Senator  wants  to  make  a 
imanimous-consent  request. 

Mr.  HUMPHREY.  Mr.  President,  I 
should  like  to  propose  a  unanimous- 
consent  request  that  the  Senator  from 
ArkEinsas  be  permitted  to  offer  his  other 
amendment  and  that  we  have  a  back- 
to-back  rollcall  vote  on  the  two  amend- 
ments. 

Mr.  FULBRIGHT.  I  wish  to  have  about 
5  minutes  to  make  a  short  statement. 

Mr.  HUMPHREY.  The  Senator  can 
make  his  full  statement,  and  that  will 
accommodate  Senators  so  that  when 
they  come  over  we  can  have  separate 
votes  on  the  two  amendments 

Mr.  CASE.  Mr.  President,  reserving 
the  right  to  object,  is  there  a  time  lim- 
itation on  the  amendment? 

Mr  HUMPHREY.  There  is  no  limita- 
tion of  time. 

Mr.  CASE.  So  that  20  minutes  each 
would  be  the  time  for  the  rollcall  votes? 

Mr    HUMPHREY    15  minutes 

Mr  C.\SE  15  minutes  I  want  to  be 
sure.  I  think  it  .should  stay  at  15  minutes. 

Mr  HUMPHREY  Mr  President,  I  ask 
unanimous  consent  that  the  Senator 
from.  .Arkansas  may  be  permitted  to  of- 
fer his  third  am.endment  and  at  the 
conclusion  of  hi,*^  presentation  I  will  then 
move  to  table  that  amendment  and  vre 
will  have  back -to-back  rollcall  votes  on 
the  two  amendments 

The  PRESIDING  OFFICER  With- 
out ob:ection  it  is  so  ordered 

The  clerk  will  call  the  roll 

Mr  FULBRIGHT  Mr  President.  It  ii 
m.y  understanding  the  Senator  wl^es 
me  to  offer  this  amendment  now  and 


42776 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  197S 


make,  my  statement  for  the  record  and 
then,  after  I  have  completed  this,  we 
will  have  two  rollcall  votes — separate 
votes — on  amendment  3  and  amendment 

2.  Is  that  correct?  

The  PRESIDING  OFFICER.  That  Is 
correct. 

AMXNSSCSMT    NO.    933 

Mr.  FULBRIGHT.  Mr.  President.  I  call 
up  my  amendment  No.  932  and  ask  that  it 
wa  stated 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  legislative  clerk  read  as  follows: 

At  tba  end  oT  tbe  blU  add  ibe  following 
new  section: 

Sec.  7.  (a)  Except  as  otherwise  provided 
In  tills  section,  none  of  tbe  funds  appro- 
priated to  carry  out  the  provisions  of  this 
Act  aball  be  o^llgsted  or  expanded  after 
January  31.  l974,.untH  the  Comptroller  Gen- 
eral of  the  United  States  certifies  to  Congress 
that  eJl  funds  previously  appropriated  (in- 
cluding any  authorization  to  create  obliga- 
tions In  advance  of  appropriations),  and 
thereafter  impounded  during  fiscal  years 
1973  and  1974  for  activities,  programs,  and 
pro>ects  under  the  Departments  of  Agricul- 
ture, Transportation.  Housing  and  CTrban 
Development,  and  Health,  Education,  and 
Welfare,  have  been  released  for  obligation 
and  expenditure 

(  b)  The  provisions  of  this  section  shall  not 
app.y  with  respect  to  funds  Impounded  In 
accordance  with  any  provision  of  law  specifl- 
caUy  authorizing  the  Impoundment  of  funds 
of  any  such  department  If  H)  such  provision 
Is  contained  in  any  law  authorizing,  or  mak- 
ing appropriations  for.  any  activity,  program. 
or  project  of  such  department,  and  (3)  the 
impoundcoent  is  made  only  with  respect  to 
and  in  accbsdance  with  such  provision  au- 
thorizing ttiNmpoundment. 

(c)  Por  purposes  of  this  section.  Impound- 
ing Includes — 

(1)  withholding  or  delaying  the  expendi- 
ture or  obligation  of  funds  (whether  l>y 
establishing  reserves  or  otherwise)  appro- 
priated or  otherwise  obligated  for  projects 
or  activities,  and  the  termination  of  author- 
ized projects  or  activities  for  which  appro- 
priations have  been  made: 

(2)  withholding  any  authorization  to  es- 
tablish obligations  In  advance  of  appropria- 
tions: or 

(3)  any  type,  of  Executive  ^action  which 
effectively  precludes  the  obligation  or  ex- 
penditure of  the  appropriated  funds. 

Mr.  FULBRIGHT  Mr.  President,  this 
amendment  is  designed  to  help  insure 
that  our  domestic  needs  are  given  pri- 
ority when  it  comes  to  spending  the  tax- 
payers' money.  It  would  require  the 
release  of  Impounded  funds  that  were 
appropriated  for  programs  of  four  De- 
partments— A^culture.  Health.  Educa- 
tion, and  Welfare,  Housing  and  Urt>an 
Development,  and  Transportation — be- 
fore any  additional  aid  can  be  provided 
to  Israel  under  this  bill  after  January  31, 
1974  According  to  Office  of  Management 
and  Budget  statljrtics.  $5  5  billion  in  ap- 
propriations for  these  four  departments 
were  impounded  as  of  September  30, 
1973. 

The  amendment  \a  substantially  the 
same  as  one  approved  by  Congress  and 
enacted  Into  law  In  the  1971  Foreign 
Assistance  Act.  A  similar,  but  broader 
provision  was  approved  by  the  Foreign 
Relations  Committee  in  8.  837  earlier 
this  session.  That  bill,  however,  never 
beemme  law  because  a  continuing  resolu- 
tion was  passed  to  fund  the  foreign  aid 


program  for  the  remainder  of  fiscal  year 
1973. 

The  point  I  wish  to  make  Is  that  Con- 
gress has  endorsed  this  principle  em- 
bodied in  this  amendment  in  the  past — 
and  probably  would  have  done  so  again 
this  year  had  the  normal  legislative  proc- 
ess been  completed  on  S.  837. 

I  ask  unanimous  consent  to  have 
printed  in  the  Record  following  my  re- 
marks excerpts  from  the  Foreign  Rela- 
tions Committee's  report  on  that  bill, 
several  current  articles  and  editorials 
concerning  the  impoundment  problem, 
and  pertinent  tables. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 
•  See  exhibit  1  ) 

Mr.  FULBRIGHT.  Mr.  President,  this 
bill  comes  before  the  Senate  shortly  after 
the  administration  has  impounded  $550 
million  appropriated  by  Congress  for 
grants  for  water  and  sewer  systans.  We 
are  being  asked  to  approve  $2.2  billion 
for  foreign  military  assistance,  yet  the 
administration  refuses  to  spend  a  much 
smaller  amount — less  than  one- fourth  as 
much — already  appropriated  by  Con- 
gress for  programs  vital  to  the  develop- 
ment of  our  towns  and  cities. 

Should  this  request  be  approved,  the 
Government  will  be  spending  more  than 
$9.2  billion  in  this  fiscal  year  for  various 
foreign  assistance  programs.  I  find  It  dif- 
ficult to  understand  how  the  Presidoit 
can  justify,  and  the  American  people  can 
tolerate,  continued  expenditures  of  this 
scope  for  foreign  aid,  while  funds  for 
important  domestic  programs  are  with- 
held and  cut  back. 

The  total  of  $9.2  billion  for  foreign  as- 
sistance Is.  for  example.  $3  bUlion  more 
than  the  $6.2  billion  appropriated  in  the 
recent  Labor- HETW  appropriations  bill 
for  all  our  federally  supported  and  as- 
sisted education  programs — and  the  ad- 
ministration opposed  allocating  even  that 
much  for  education. 

As  for  the  water  and  sewer  systems, 
the  amount  appropriated — and  then  im- 
pounded— is  miniscule  in  comparls<Mi 
with  our  foreign  expenditures.  Impound- 
ment of  fimds  for  water  and  sewer  sys- 
tems is.  of  course,  nothing  new  under 
this  administration,  which  has  consist- 
ently refused  to  allocate  funds  appro- 
priated for  this  purpose.  Impoundment 
is,  in  my  view,  clearly  contrary  to  the 
Intent  of  the  Constitution  and  in  this 
case  violates  a  specific  congressional 
directive. 

Previously  the  President,  in  Impound- 
ing water-sewer  funds,  has  claimed  that 
money  for  the  same  purposes  could  be 
obtained  elsewhere,  specifically  through 
the  Environmental  Protection  Agency. 
However,  the  administration  earlier  Im- 
pounded $6  billion  in  EPA  appropriations 
made  by  Congress  in  overriding  Presi- 
dent Nixon's  veto. 

The  Farmers  Home  Administration 
water  and  sewer  grants  and  loans  are 
essential  for  the  development  of  our 
small  communities  We  can  ea.se  the  bur- 
den on  our  lairger  cities  by  making  the 
.■onaller  communities  attractive  and  via- 
ble places  to  live.  Yet  these  communities 
are  unable  to  obtain  the  relatively  small 
amounts  needed  to  develop  the  basic  in- 
frastructure of  water  and  sewer  facilities 


In  nearly  every  case  these  communities 
have  raised  funds  locally  and  have  sought 
supplementary  Federal  loans  and  grants, 
only  to  find  them  unavailable. 

The  administration  has  not  only  im- 
pounded the  entire  $150  million  allocated 
for  the  FHA  water-sewer  program.  Re- 
ports Indicate  tha*  the  $400  million  ap- 
propriated for  the  urban  counterpart, 
administered  by  the  Department  of 
Housing  and  Urban  Development,  is  also 
being  impounded.  Altogether  there  are 
at  least  139  Arkansas  municipalities 
which  cannot  offer  basic  water  and  sewer 
community  services  at  the  current  time. 
All  these  communities  are  in  need  of 
grant  funds.  I  am  certain  that  sLmilar 
statistics  could  be  cited  from  other 
States. 

When  our  Government  is  falling  to 
meet  these  basic  needs  of  our  people,  I 
find  it  extremely  diJQcult  to  understand 
how  we  can  afford  to  undertake  foreign 
expenditures,  such  as  the  $9.2  billion 
for  various  foreign  assistance  categories. 
I  believe  our  true  interests  and  security 
are  best  served  by  attending  to  the  many 
critical  needs  which  we  face  in  this  coun- 
try. 

Passage  of  this  amendment  will  tell 
the  American  lieople  that  the  Senate  is 
as  concerned  about  our  domestic  needs 
as  it  Is  about  the  highly  questionable 
needs  for  enormous  military  assistance  to 
Israel.  Enactment  of  this  amendment  will 
show  that,  although  we  are  Involved  with 
the  problems  of  Israel,  we  put  the  promo- 
tion of  the  welfare  of  our  own  people  first. 

There  is  also  a  fundamental  constitu- 
tional issue  involved  here.  If  the  Con- 
gress' power  of  the  purse  is  infrinegd  by 
unrestricted  Presidential  Impoundment 
of  appropriated  funds.  Members  of  Con- 
gress power  of  the  purse  is  Infringed  by 
go  home.  This  is  the  only  real  power  that 
Congress  has  left  and  It  must  be  guarded 
and  protected.  This  amendment  is  de- 
signed to  help  in  that  effort. 

Although  the  morning  press  reported 
that  the  President  ha.s  agreed  to  release 
$1  billion  in  Impounded  funds  for  Health, 
Education  and  Welfare  programs.  11  was 
made  clear  by  administration  spokesmen 
that  this  does  not  mean  that  funds  ap- 
propriated for  programs  of  other  depart- 
ments will  be  released.  Approval  of  my 
amendment  will  insure  that  funds  for 
the  Departments  of  Agriculture.  HEW 
and  HUD  are  released  and  used  In  the 
way  Congress  intended. 
ExHisrr  1 

SXCnON     11.    LlMTTATlON    ON    US*    Of    POEXICN 

Am  FVNDe 

This  amendment,  sponsored  by  Senator 
I^ilbright.  requires  release  of  Impounded 
funds  totaUlng  H  9  billion  (according  to  t^e 
Office  of  Management  and  Budget)  appro- 
priated for  programs  under  the  authority  of 
the  Departments  of  Agriculture,  Transporta- 
tion. Health.  Education,  and  Welfare  and 
Housing  and  Urban  Development.  The 
amendment  la  a  revision  of  section  ftSS  of 
the  Foreign  Assistance  Act  of  1971 .  As  revised, 
this  section  includes  the  following  pro- 
vis  loos 

It  requires  a  cut-off  of  funds  appropriated 
pxirauant  to  the  Foreign  Assistance  Act  and 
the  l»orelgn  Military  Salee  Act  if  by  April  30, 
1973.  the  President  has  not  released  all  f\mds 
appropriated  during  fiscal  years  197^  and 
1973    for    the    Departments    oT    Agriculture. 


December  20,  1973 


Transportation,  Housing  and  Urban  Devel- 
opment, and  Health,  Education,  and  WeUare. 
It  requires  a  slmiur  cut-off  of  aid  and 
mUltary  credit  sales  funds  If  future  appro- 
priations for  these  dppartments  are  Im- 
pounded for  more  than  60  days 

It  defines  the  term  ■•impounded  funds"  to 
Include  any  action  which  effectively  prevents 
the  creation  of  obligations  or  expenditures  of 
appropriated  funds,  or  of  authorizations  to 
create  obligations  in  advance  of  appropria- 
tions, for  any  period  of  time  irrespective  of 
whether  such  action  Is  taken  by  the  Ofllre  of 
Management  and  Budpet  or  the  apency  head. 
It  require;  that  aid  and  military  credit 
sale  funds  be  spent  on  an  order! v  basis  so  as 
to  insure  that  the  prohibitions  in  the  amend- 
ment are  not  n\illifled  either  by  •reimpound- 
menf  or  by  a  speed  up  In  the  obligation  of 
aid  funds. 

It  provides  for  the  withholding  of  funds 
In  accordance  with  specific  legal  require- 
ments as  may  be  contained  In  the  authoriz- 
ing legislation  for  the  departments  affected 
or  as  is  provided  In  the  Anti -Deficiency  Act. 
The  Committee  recognizes  that  this  Act 
authorizes  reserves  in  the  apportionment 
process.  The  Committee  wants  to  empha- 
size, however,  that  such  reserves  are  author- 
ized under  the  Anti -Deficiency  Act  only  (1) 
for  contingencies:  and  (2i  to  effect  savings 
whenever  saving.?  are  made  possible  by  or 
through  (a)  changes  In  requirements,  (6) 
greater  efflclency  of  operations,  or  (ci  other 
developments  subsequent  to  the  date  on 
which  such  appropriation  was  made  avail- 
able. This  latter  provision  refers  to  unfore- 
seen developments  subsequent  to  the  enact- 
ment of  appropriations  which  reduces  funds 
required  to  carry  out  the  program  and  does 
not  Include  various  other  reserves  sometimes 
referred  to  as  being  for  -routine  financial 
administration."  The  Committee  will  look 
to  the  General  Accounting  Office  to  pursue 
this  interpretation  and  U,  ensure  compliance 
with  It.  *^ 

Finally,  this  provision  calls  upon  the 
Comptroller  General  to  review  the  accuracy 
of  the  certification  made  hy  the  heads  of 
the  departments  with  respect  to  the  im- 
poundment of  funds  of  their  departments 
and  to  issue  quarterly  reports  on  his  find- 
ings beginning  with  the  first  quarter  In 
fiscal  year  1974 

When  the  Committee  considered  Senator 
Pulbrlghfs  amendment,  he  reported  on  a  let- 
ter which  he  had  received  from  the  Comp- 
troller General  a.sklne  that  certain  modifica- 
tions be  made  In  the  original  text  The  Com- 
mittee accepted  these  modifications.  Tlie 
text  of  the  Comptroller  Generals  letter  with 
enclosure,  follows : 

COlCPTKOl-LEll  OeNTRAL 

or  THX  Unitid  States, 
Washington,  DC.  February  22  1973 
B-135564.  ' 

Hon   J    W   Fin-BHrcHT. 

Chairman.  Committee  on  Foreian  Relations 
VS  Senate. 

Dear  Mb  CnAniMAN  On  February  8.  1973 
you  offered  your  amendment  No.  7  to  the  ad- 
ministration's foreign  aid  authorization  bill 
which  would  amend  section  958  of  the  For- 
eign Assistance  Act  of  1971.  In  explaining 
the  amendment  you  said  that  it  will  bring 
an  end  to  the  expenditure  of  foreign  aid 
funds  If  the  President  In.slsts  upon  Impound- 
ing funds  for  high-priority  domestic  pro- 
grams Amendment  No  7  together  with  ex- 
planatory remarks  appears  on  pages  S2431- 
83433  uf  the  Congressional  Record  of  Febru- 
ary 8.  1978. 

We  are  prlmarUy  concerned  about  the  pro- 
P'jsed  BubsecUon  658 (ci  which  contains  no 
exceptions  for  reservatlorts  of  funds  made 
etricUy  within  the  authority  of  Subsection 
(cxa)  of  the  AnUdeflclency  Act.  31  U.8.C. 
W3  (c)(2)  and  subsection  668(ei  which 
would  provide  substantial  additional  duUe* 
for  the  Comptroller  General. 


CONGRESSIONAL  RECORD  —  SENATE 


42777 


In  my  testimony  of  January  30.  1973,  on 
Senator  Ervln's  Impoundment  Control   bill, 
S.  373,  93d  Congress,  I  stated  that  we  are  not 
aware  of  any  obJecUons  to  Impoundments 
faUlng  squarely  within  the  liter*!  language 
of  subsection   (c)(2)    of  the  Antldeflclency 
Act,  31  U.S.C.  655(c)(2),  or  specifically  au- 
thorized  In  other  law.  This  testimony  was 
given  at  a  Joint  Hearing  held  by  the  Sub- 
committee on  Separation  of  Powers  of  the 
Senate  Judiciary  Committee  and  an  ad  hoc 
subcommittee  of  the  Senate  Committee  on 
Government  OperaUons,  A  copy  of  my  pre- 
pared  statement   and   the   attachment*   ar« 
enclosed.  It  was  suggested  that  consideration 
be  given  to  amending  S.  373  to  provide  that 
Its  provisions  shall  not  apply  to  funds  being 
withheld  in  accordance  with  thU  and  other 
specific    requirements    of    law.    As    you    are 
aware,  section  658  of  the  Foreign  Assistance 
Act    of    1971    presently    exempts    Impound- 
ments made  in  accordance  with  specific  re- 
quirements of  law  and.  as  stated  In  my  testi- 
mony on  S.  373,  I  interpreted  that  provision 
as   applying  only   to  section    (c)  (2)    of  the 
Antldeflclency  Act.  We  suggest  a  revision  of 
subsection  658(c)    to  reinstate  that  exemp- 
tion to  avoid  the  btirden  of  reporting  Im- 
poundments which  involve  only  contingen- 
cies or  savings  in  carrying  out  legislative  pro- 
grams and  which  are  generally  conceded  to 
be  not  only  of  a  noncontroverslal  nature  but 
also   desirable    in    achieving    efflclency    and 
economy. 

As  now  written,  subsection  658(e)  would 
require  that  the  Comptroller  General  de- 
termine If  funds  of  the  Departments  of 
Agriculture,  Transportation,  Housing  and 
Urban  Development,  and  HeaJth,  Education, 
and  Welfare  have  been  impounded  more  than 
60  days.  The  imposition  of  such  a  require- 
ment on  our  Office  would  result  in  a  work- 
load that  would  severely  tax  our  resources 
and  even  then  we  could  never  be  assured  that 
all  of  the  Impoundments  had  been  found. 
The  Impoundments  can  be  made  by  the  head 
of  a  Department  as  well  as  by  the  Director 
of  the  Office  of  Management  and  Budget  and 
documentary  evidence  theretf,  U  anv,  may  be 
difficult  to  locate.  We  would  therefore  much 
prefer  language  which  would  require  the 
head  of  each  Department  named  to  send  us  a 
report  certlfyir.g  the  amounts  impounded 
during  each  60-day  period  which  we  would 
review  for  the  purpose  of  making  our  quar- 
terly reports  to  the  Congress. 

We  also  suggest  that  the  parenthetical 
language  "(including  any  authorization  to 
ore«t«  obligations  in  advance  of  appropria- 
tions)" which  effectively  Includes  contract- 
ing authority  In  the  definition  of  appropria- 
tion and  which  is  included  in  subsection  (a) 
be  Inserted  In  subsection  (bi  This  wlU 
avoid  any  implication  that  contract  author- 
ity is  included  with  respect  to  fi.scal  rear? 
1972  and  1973  but  not  to  fiscal  year  1974"  and 
subsequent  n&c&l  years. 

We  have  »>me  reservations  on  one  other 
aspect  of  subsections  (a)  and  (b).  Under 
those  Bubsectlons.  if  the  Impounded  funds 
are  not  timely  released  for  obligation  and  ex- 
penditure, no  further  expenditure  of  foreign 
assistance  and  mUItary  sales  funds  may  be 
made  notwithstanding  that  pavment.<:  mav  be 
due  in  liquidation  of  previously  incurred 
valid  obligat:or.fi  We  be:ieve  this  pmhlbltion 
against  further  obligations  would  accomplish 
your  purpose  ai.d  avoid  some  objections 
which  may  be  raised  against  prohibiting  ex- 
pondlfares  in  liquidauon  of  valid  obligations 
of  the  United  States, 

Language  to  carry  out  these  suggestions  is 
enclosed.  I  do  not  believe  these  suggestions 
wiu  alter  the  purpose  or  impact  of  vour 
amendment  At  the  same  time  I  feel  that 
they  wui.  (1)  clarify  the  meaning  of  appro- 
priation. (2)  avoid  some  needless  reporting 
and  (3)  afford  a  faculty  for  keeping  the  Con- 
gress informed  of  Impoundments  In  the  four 
named  departments.  If  we  can  be  of  further 
assistance   concerning   these   suggesOons  or 


anything  else  Involving  your  amendment  or 
the  Impoimdment  issue  we  would,  of  course, 
be  pleased  to  provide  such  assistance. 
Sincerely  yours. 

Elmzr  B.  Staats, 
Comptroller  General  of  the  Dnited  States. 
[Enclosures.] 

( 1 )  Delete  the  words  "or  expended"  from 
subsections  (a)  and  the  words  "or  expended" 
and  "and  expended"  from  subsection  (b). 

(2)  Insert  between  Unes  7  and  8  of  subsec- 
tion (b)  parenthetical  phrase  "(Including 
any  authorization  to  create  obUgatlons  In 
advance  of  appropriations)." 

(3)  Amend  subsection  (c)  to  read  as  fol- 
lows: 

"(c)  The  provisions  of  this  section  shaU 
not  apply  with  respect  to  ftmds  Impounded 
In  accordance  with  any  provision  or  law 
specifically  authorizing  the  impoimdment  of 
funds  of  any  such  department,  if  the  Im- 
poundment is  made  only  with  respect  to  and 
m  accordance  with  such  provision  authoriz- 
ing the  Impoundment  as  Interpreted  by  the 
Comptroller  General." 

(4)  Strike  the  first  sentence  of  subsection 
(e)  and  insert  in  lieu  thereof  the  following 
language: 

"The  bead  of  each  such  department  shall 
certify  to  the  Comptroller  General  within 
10  days  after  the  expiration  of  each  60-day 
period  In  the  fiscal  year  1974  and  any  fiscal 
year  thereafter  (1)  the  amount  of  funds 
appropriated  to  such  department  which  are 
Impounded.  i2i  whether  such  funds  have 
been  impounded  for  more  than  80  days,  and 
(3)  if,  and  when,  such  funds  have  been  re- 
leased m  accordance  with  this  section.  The 
Comptroiier  General  shall  review  these  certi- 
fications and  take  such  action  as  he  deems 
necessan.-  to  verify  their  accuracy." 

In  Its  report  on  the  Initial  impoundment 
provision  adopted  In  1971,  the  Committee 
offered  the  following  explanation  of  Itt 
action: 

The  objective  of  this  amendment  Is  to  glye 
the  American  public  some  indication  that 
the  Committee  is  just  as  aware  of  our 
domestic  needs  as  it  is  of  the  needs  of  ether 
countr.es.  The  provisions  of  the  section  say 
uy.  the  taxpayers  of  this  country.  "You  will  be 
a.'^ured  of  getting  the  funds  appropriated  by 
Congress  for  domestic  programs  and  projects 
before  additional  foreign  aid  funds  can  be 
obligated  for  similar  programs  and  projects 
In  Rio  de  Janeiro,  Nairobi  or  New  Delhi." 

In  addition  to  focusing  attention  on 
domestic  vs.  foreign  needs  in  the  context 
of  the  whole  national  priorities  debate,  this 
section  of  the  blU  alsc  addresses  the  separa- 
tion of  powers  issue  and  the  Constitutional 
responsibilities  of  the  Legislative  and  Ex- 
ecutive Branches  of  our  Government 

If  the  President  is  left  free  t.o  impound 
funds  appropriated  by  the  Congress,  this 
could  result  In  an  even  greater  Imbalance 
between  the  two  Branches  than  has  de- 
veloped In  the  field  of  foreign  affairs  If  the 
Congress's  power  of  the  purae  Is  Infringed 
or  restricted  in  any  way— such  as  through 
the  impoundment  of  appropriated  funds — 
Members  of  Congress  might  as  well  pack 
their  bags  and  go  heme  This  is  the  only  real 
power  the  Congress  has  left  and  It  must  be 
guarded  and  protected  and  kept  whole  end 
Intact,  The  Committee  believes  that  the  re- 
quirements of  this  section  are  consistent 
with  this  goal. 

A  majority  of  the  Members  of  the  Com- 
mittee believe  this  explanation  Is  as  valid 
t.oday  as  it  was  then, 

«*i 

[From  the  Washington  Post,  Dec.  17,  1973] 

Impoukdjcknt:  Onox  Moax  I>rro  WotroMtLLAtm 
Despite  a  lengthening  list  of  defeats  in  the 
lower  federal  courts,  the  Nixon  administra- 
tion seems  determined  to  continue  trying  to 
Impound,  at  will,  money  appropriated  by 
Congress  for  programs  the  executive  branch 
dislikes     The    latest    casualty    reportedly    Is 


12778 


CONGRESS  I  ON  A I    RECOR  D  —  S  EN  ATE 


December  20,  1973 


most  of  the  $550  million  appropriated  for 
rural  and  iirban  water  and  aewer  grants.  The 
administration,  considering  the  programs  re- 
dundant, first  tried  to  "terminate"  them  by 
Impounding  the  fiscal  1973  funds  a  year  ago. 
Congress  appropriated  money  for  this  year 
anyway,  and  now  those  funds  are  apparent- 
ly being  "non-spent."  Some  highway  monies 
have  also  been  held  up. 

The  issue  here  Is  not  whether  the  programs 
are  good  or  bad.  but  whether  the  executive 
branch  has  the  legal  and  constitutional  au- 
thority to  make  such  judgments  unilaterally 
after  Congress  has  provided  the  ftmds.  With 
a  remarkable  degree  of  accord,  federal  Judges 
across  the  country  have  now  ruled  In  at  least 
three  dozen  separate  cases  that  Impound- 
ment exceeds  the  bounds  of  the  administra- 
tion's legal  latitude.  Most  of  the  early  de- 
cisions turned  on  the  precise  langxiage  of  the 
lawa  Involved,  but  recently  Judges  have  been 
more  Inclined  to  rest  their  rulings  on  general 
constitutional  principles  PV>r  Instance.  Fed- 
eral District  Court  Judge  George  Hart  re- 
cently declared  that  if  Congress  Insists  funds 
should  be  spent,  the  executive  branch  haa 
no  choice  but  to  comply.  "It  la  the  preroga- 
tive of  Congress,"  Judge  Hart  said.  *to  spend 
money  foolishly  if  It  wants  to,  and  the  re- 
medy la,  I  suppose.  In  the  electorate." 

The  Nixon  administration  haa  magnified 
this  problem  of  constitutional  process  but 
Impounding  billions  in  the  most  autocratic 
way.  Last  year,  for  Instance,  the  administra- 
tion claimed  that  housing  subsidies  and 
other  urban  programs  had  been  "terminated" 
because  they  were  "ineqiiitable.  wasteful  and 
Ineffective."  But  documents  have  Just  become 
public  which  show  that  the  programs  were 
froaen  before  the  Department  of  Housing  and 
Urban  Development  had  undertaken  in -depth 
analysis  or  mde^  provided  any  written 
Justifications  for  the  freeze  at  all.  It  calls 
to  mind  the  Juridical  approach  of  the  Red 
Queen  in  "Alice  In  Wonderland":  "Sentence 
first — verdict  afterward." 

With  the  Impoundment  of  water  and  sewer 
grant  f\inds,  the  admlnistraUon  Is  back  In 
Wonderland.  The  Labor-HEW  appropriation* 
act  may  be  something  of  a  turning  point.  In 
order  to  produce  a  measure  which  Mr.  Nixon 
would  sign,  the  conferees  agreed  to  authorize 
the  President  to  Impound  up  to  $400  mllllou, 
but  specified  that  no  program  may  be  cut 
more  than  5  per  cent.  If  the  administration 
abides  by  this — In  other  words,  actually 
apends  the  rest  of  the  $32.9  billion  appropri- 
ated In  that  act — It  would  be  a  refreshing 
change,  since  the  executive  branch  impound- 
ed over  $1  billion  from  a  smaller  appropria- 
tion for  fiscal  1973 

Meanwhile,  Congress  remains  strangely  re- 
luctant to  assert  Its  own  authority.  Com- 
mittees have  not  gone  beyond  spirited  but 
non-blndlng  language  in  reports.  The  gen- 
eral remedy,  a  stem  antl-lmpoundment  law, 
has  been  approved  once  by  the  Senate  and. 
In-dlSerent  form,  twice  by  the  House,  but 
the  two  bodies  have  shown  little  sense  of 
urgency  about  reconciling  their  differences 
Meanwhile,  programs  In  many  fields  have 
been  disrupted,  and  state  and  local  govern- 
ments and  private  groups  are  being  forced 
to  go  to  court  at  considerable  expense  to  pry 
loose  public  funds  which  the  Congress  In- 
tended to  provide. 

irrom  the  New  York  TlmM,  Dec.  17.  1978) 

POWXa  OF   TBM   PCrRSB 

Congress  In  Its  coUectlve  wisdom  decided 
last  year  and  again  thU  year  to  appropriate 
funds  for  the  construction  of  needed  water 
and  sewer  systems  in  rural  areas.  The  execu- 
tive branch  decided  that  the  program  was 
unnecessary  and  impounded  the  money 

Far  from  being  "redundant" — to  use  the 
Admlniit ration's  word — the  program  In  dis- 
pute is  distinct  from  the  Oovernment's  ezlst- 
tng  program,  which  has  to  do  with  sewage 


treatment  systems,  not  aewers  themselves. 
But  even  If  the  Administration's  explanation 
were  sound,  It  would  be  no  answer  to  the 
real  question  Involved. 

The  question  Is  this:  Which  branch  of  gov- 
ernment Is  constitutionally  charged  with 
making  Utwa  and  appropriating  the  neces- 
sary money  and  which  branch  Is  charged  with 
executing  thoee  laws  and  spending  that 
money?  Even  m  this  Instance,  where  Con- 
gress has  expliciUy  directed  the  expendi- 
ture within  a  fixed  period,  the  Admlnlatra- 
tion  takes  the  view  that  its  Judgment  must 
prevail. 

Its  action  should  quicken  the  pace  of  Con- 
gressional efforts  to  curb  a  growing  usurpa- 
tion of  legislative  function  by  the  executive 
branch.  Both  houses  have  already  passed  bills 
giving  Congress  the  power  to  override  such 
Impoundments  and  force  the  release  of  ap- 
propriated funds.  Tacitly  acknowledging  that 
these  attempts  might  be  vetoed,  tlie  Hovise  oi 
Representatives  embodied  an  antl-impo\ind- 
ment  section  in  a  much -needed  bill  to  en- 
hance budgetary  responalbUlty  In  Congress. 

Combining  these  two  purposes  would  not 
only  make  It  harder  for  President  NUon  to 
veto  a  curb  on  his  own  AdmltOstratlon's  as- 
sumption of  the  power  of  the  purse;  it 
would  Increase  the  poaslbUity  of  overriding 
such  a  veto  If  it  did  come.  The  Senate  would 
do  well  to  follow  the  lead  of  the  House. 

[From  the   Arkansas  Gazette.   Monday. 

Dec.  10.  1973) 

Tta  MoKKT  Battlz 

The  United  States  has  spent  no  telling 
how  many  tens  of  millions  of  dollars  in  1973 
on  its  space  exploration  program,  while  the 
Nixon  administration  refuses  to  spend  $550 
million  Congress  has  appropriated  for  de- 
velopment of  water  and  sewer  systems. 

If  there  is  Jioitapositlon  here  it  is  that 
the  glamoroxia  too  often  wins  out  over  the 
mundane  In  the  political  decision  oiaking 
process,  despite  the  raUonale  of  higher 
stated  purposes,  in  this  case  requirements 
of  the  economy. 

What  is  really  behind  the  Impoundment  of 
the  water  and  sewer  money.  In  any  case,  la 
pure  stubbornness  at  the  White  House  and 
In  its  Office  of  Management  and  Budget, 
which  cUngs  to  the  fiction  that  the  American 
people  are  still  willing  to  take  the  president's 
side  over  that  of  the  Congress.  The  matter 
Is  rapidly  becoming  a  battle  of  wills  and  a 
suddenly  awakening  legislative  branch  could 
have  the  upper  hand  If  the  leadership  would 
snap  out  of  its  own  alumt>er. 

Of  the  $550  million  impounded.  $4O0  mil- 
lion was  to  have  gone  to  urban  programs 
and  $150  million  was  to  have  been  funneled 
into  a  rural  program  to  promote  home  and 
Industrial  development.  The  rural  part  of 
the  approprlaUon  Is  a  special  favorite  of  some 
senior  Southern  Democrats,  notably  Repre- 
sensatlve  Jamie  Whltten  of  Mississippi,  who's 
sore  as  can  be  about  the  Nixon  impound- 
ment. (It  takes  a  mighty  powerful  issue  to 
get  Jamie  off  the  old  Nixon  bandwagon.) 

Congress  his  already  dealt  with  the  water 
and  sewer  funds  issue  once  this  year  by  pass- 
ing a  second  appropriation  to  counter  presi- 
dential Impoundment  A  second  impound- 
ment ensued. 

The  effect  of  the  White  House  persistence 
is  likely  to  be  passage  In  the  Senate  of  a  new 
Budget  Control  Act  that  received  House  ap- 
proval last  week.  The  Act  gives  either  house 
the  power  to  force  release  of  impounded 
funds,  and  of  course  it  applies  not  Just  to 
the  $560  million  for  sewer  and  water  sys- 
tems but  funds  for  other  worthy  programs 
as  well.  The  Senate  should  not  hesitate  in 
approving  the  Bouse  measure  and  neither 
chamber  should  then  hesitate  to  apply  the 
Act's  provisions  whenever  Its  good  Judgment 
dlcUtM. 


AOMUnaTRATTON  IMPOUNDS  FtTNDS  FOE 

Watxk  aks  Sxwxa  Btstems 
(By  WUllam  Bobbins) 
Washincton.  December  6. — The  Nixon 
Administration  has  quietly  Impounded  $660- 
million  voted  this  year  for  development  ot 
water  and  aewer  systems  despite  a  directive 
from  Congress  to  spend  the  money. 

The  action,  which  mcluded  withholding 
of  funds  for  a  popular  rural  development 
program,  Is  considered  likely  to  Increase 
pressure  behind  a  bill  that  would  allow 
Congress  to  force  release  of  money  it  ap- 
propriates. 

The  rural  program  provided  $150-mllllon 
to  promote  home  and  Industrial  develop- 
ment, and  thus  aid  distressed  communities, 
through  grants  for  construction  of  water 
and  sewer  systems. 

The  program  had  been  "terminated"  early 
this  year  by  a  Presidential  impoundment 
action  but  revived  by  Congress,  which  also 
adopted  an  accompanying  conference  re- 
port directing  the  Administration  to  spend 
the  money. 

Representative  Jamie  Whltten,  Democrat 
of  Mississippi,  the  powerful  chairman  of 
the  House  appropriations  subcommittee,  re- 
acted today  with  a  thinly  veiled  warning, 
although  he  said: 

"I  don't  want  to  be  In  a  position  of 
threatening  the  Administration." 

Under  present  conditions.  Congress  lacks 
the  power  to  force  the  Administration  to 
spend  the  money.  Mr.  Whltten  noted,  but 
he  added.  "Next  year,  you  can  make  them 
wish  they  had  spent  the  money." 

He  observed  that  Congress  has  the  power 
of  the  purse,  enabling  it  to  control  fimds 
for  both  the  White  House  and  the  Office 
of  Management  and  Budget,  but  added 
quickly  that  "the  country  cannot  afford" 
a  stalemate  between  the  White  House  and 
Congress. 

The  Impoundment  issue  has  been  a  focal 
point  of  controversy  between  President  Nix- 
on and  Congress  since  the  current  session 
began.  A  total  of  about  $12-bUllon  in  ap- 
propriated funds  had  been  withheld  by  the 
Administration  at  one  point,  but  some  of 
that  has  since  been  released  and  court  suits 
have  compelled  the  spending  of  additional 
money  for  several  programs 

Both  houses  have  passed  bills  giving  Con- 
gress the  power  to  review  and  override  Presi- 
dential Impoundment  decisions,  but  they 
have  never  gone  to  conference. 

Those  bills  would  be  superseded  by  a  new 
budget  control  act.  passed  by  the  House 
yesterday,  which  contains  a  section  givmg 
either  chamt>er  the  power  to  force  release 
of  Impounded  funds.  The  Senate  Is  expected 
to  act  on  a  similar  bill  early  next  year. 

President  Nixon  Is  consldsred  likely  to  veto 
the  bUl  If  It  reaches  his  desk  with  the  anU- 
impovmdment  provision  mtact.  but  the  with- 
holding of  rural  funds  disclosed  today  Is  ex- 
pected to  reinforce  support  for  any  attempt 
to  override. 

The  $150.mllllon  was  the  rural  counterpart 
of  a  water  and  sewer  program  administered 
by  the  DepartnMnt  of  Housing  and  Urban 
Development,  for  which  $400-milllon  had 
been  voted  In  the  same  Congressional  appro- 
priations measure. 

The  withholding  of  funds  for  the  grants 
does  not  affect  a  loan  program  for  the  same 
purpose,  for  which  $470-mllllon  ha^  been  au- 
thorized and  $110  million  obligated  this 
fiscal  year,  which  ends  next  June  30 

Arthur  C.  Harmon.  Jr.,  the  depu'.v  admin- 
istrator of  the  Farmers  Home  Administration, 
which  supervises  the  rural  program,  said  to. 
day  that  his  agency  and  higher  ofllclals  in 
the  Administration  considered  the  water  and 
■ewer  grants  "redundant"  because  a  similar 
program  was  administered  by  the  Environ- 
mental Protection  Agency. 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42779 


Mr.  Whltten  had  argued  during  appropria- 
tion hearings,  however,  that  the  only  relevant 
KJA.  program  was  that  funded  under  the 
Water  Pollution  Control  Act.  That  act,  he 
aald,  provided  mainly  for  sewage  treatment 
systems  and,  under  allocation  systems  set  by 
the  states,  little  money  filtered  down  to  niral 
areas. 

A  staff  aide  at  the  House  agricultural  ap- 
propriations subcommittee  noted  today  that, 
although  it  was  possible  to  fund  sewage- 
oollectlon  systems  under  the  pollution  act, 
those  were  normally  given  a  low  priority  by 
the  states,  and  there  was  no  provision  for  de- 
velopment of  water  systems. 

An  ofCclal  at  the  Environmental  Protection 
Agency  said  rural  sewer  systems  were  not  con- 
sidered to  be  a  primary  objective  of  Its  pro- 
gram. He  said  that  It  was  Impkosslb'e  to  deter- 
mine how  much  money  might  have  gone  to 
rural  areas  thus  far. 

In  another  action  Involving  Impounded 
funds,  six  states  filed  suit  today  seeking 
release  of  $3.7-bllllon  In  highway  construc- 
tion funds  for  all  50  states. 

The  suit  was  filed  In  United  States  District 
Court  here  by  Louisiana,  Washington,  Nevada, 
Oklahoma.  Pennsylvania  and  Texaa.  It 
names  as  defendants  Secretary  of  Transporta- 
tion Claude  S.  Brlnegar,  the  Federal  Highway 
Administrator,  Norbert  T.  Tiemann  and  Roy 
L.  Aah,  director  of  the  Office  of  Management 
and  Budget. 

[From  the  Washington  Poet,  Dec.  7,   19731 

WATZB-SEWKB   P*UNDS  AaZ  iMPOtTKDED 

(By  Bernard  Brenner) 

Apparently  ignoring  a  blunt  directive  from 
Congress,  the  White  House  Office  of  Man- 
agement and  Budget  has  quietly  Impounded 
all  of  the  $150  million  voted  by  the  law- 
makers for  rural  water  and  sewer  grants. 

No  public  announcement  was  made.  But 
officials  at  the  Agriculture  Department,  In 
reply  to  a  query,  said  they  had  been  told 
the  OMB  would  not  release  the  appropria- 
tion. 

The  action  may  revive  an  administration- 
Congress  controversy  that  began  early  this 
year  when  the  White  House,  after  holding 
spending  on  the  water-sewer  grants  below 
appropriated  levels  In  past  years,  suspended 
the  program  altogether. 

In  reply,  congressional  leaders  Inserted 
the  $150  million  fund  In  the  Agriculture 
appropriation  bill  and  wrote  in  language 
directing  revival  of  the  grants  and  a  similar 
grant  program  operated  by  the  Department 
of  Housing  and  Urban  Development. 

Reports  accompanying  bills  do  not  have 
the  force  of  law.  But  since  they  are  con- 
sidered to  express  the  will  of  Congress,  they 
are   usually   heeded    by   administrative   offl- 


8UDGETARY    RESERVES   (IMPOUNDMENTS)   REPORTED   AS 
OF  JUNE  30,  1973,  AND  SEPT.  30,  1973  > 

(In  thousands) 


s. 


Mtior  agtnqr  ind  program 


(impeaittf-  0<"*eaiMl- 

ments)  ments) 

June  30,  Sept.  30, 

1973  1973 


Exacut'v*  OlUct  of  the  President $2, 077  . 

Funds  app>oorial*d  to  thi  President : 

ApptlKhian  regional  develop- 
ment programs 65.000 

Foreign  assuunca  prograflis...  60,6S2 
Department  of  Agriculture 

Rural  environmental  assistance.  ZIO.  500 

Rural  electiihcation  loans 456,103 

Rural  water  and  waste  disposal 

rants 120,000 

Rural  housing  insurance  fund. .  133, 000 

Forest  roads  and  Inits 27J.  398 

.      Other 118.174 

Department  of  Commerce 139,594 


$40,000 
55.652 

210,500 
456,103 

120.000 

133.000 

208,934 

44,700 

63,251 


Major  agency  and  program 


,  Budgetary 
reserves 
(impound- 
ments) 
June  30. 
197i 


Budgetary 
reserves 
(impound- 
ments) 
SepL  30, 
1973 


Department  of  Defense — military: 

Shipbuilding  and  conversion....  ?1,  336, 184  $556,593 

Military  construction 260,480  264,254 

Aircraft  and  missile  procure- 

„  ment. 317,329 

Other 21,084  4,504 

Department  of  Defense— civil 33,426  1,398 

Department  of  Health,  Education, 

and  Welfare 20,530  22,726 

Department  of  Housing  and  Urban 
Development: 

Open  space  land  program ..  27,730  27,730 

Grants   for    basic   water   and 

sewer  facilities 400.175  400,175 

Other 32,303  28.511 

Department  of  Interior: 

Land  and  water  conservation 

fund 269,590  61,422 

National    Park    Service— con- 
struction   90,448  49,110 

Bureau  of  Indian  Affairs:  road 

construction 20,000 

Other 117,687  31,287 

Department  of  Justice  (prisons)....  36,  Ul  13,594 

Department  of  State 5,511 

Department  of  Transportation: 
Federal   airport  and   aviation 

programs 223,359  269,707 

Federal  aid  highway  programs..  2, 580, 699  3, 500, 604 

Grants  to  Amtrak 48,100 

Other 81,095  19,747 

Department  of  Treasury 21,519  21,517 

Atomic  Energy  (^mmission 117,880  26,650 

General    Services     Administration 

(mainly  public  buildings) 261,629  258,751 

National    Aeronautics    and   Space 

Administration 2,200  2.200 

Veterans' Administration 44,195  43,358 

District  of  Columbia,  loans  for  cap- 
ital outlay 72,277 

National  Science  Foundation 62,400  3,500 

Small  Business  Administration 50,234  31.094 

Tennessee  Valley  Authority 22,318 

Other  independent  agencies 28,921  17,768 

Total  -  7,731,536  7,446,046 


>  Reported  by  Office  of  Management  and  Budget  pursuant  to 
Federal  Impoundment  and  Information  Act  Public  Law  92-599 
IS  amended. 

I  Exdudes  {6,000.000.000  in  water  pollution  contract  authority 
enacted  last  session  for  fiscal  1974,  available  in  1973,  withheld 
by  agency  action  and  deleted  from  budget  authority  totals  for 
1§73  and  1974, 


ESTIMATED    FOREIGN    ASSISTANCE,    FISCAL   YEARS    1973 
AND  1974 


(In  thousands] 


Tiscal  year— 


1973 


1974 


I.  Military  assistance: 

1.  Military       assistance 

grants $589,100         J642,000 

2.  Military  assistance  to 

South   Vietnam  and 

Laos 2.735,000       1,126,000 

3.  Military  assistance  to 

Israel 2,200,000 

4.  Additional    assistance 

to  Cambodia 200,000 

5.  Excess  defense  arbcles.        185,000  150,000 

6.  Ship  transfers 121,000  6  500 

7.  Real  property  transfers.        721,091  244,553 

8.  Public  Law  480  defense 

grants 157,900  162.080 

9.  Foreign  military  credit 

sales 400,000  325,000 

)0.  Supporting  assistance 

(outside  Indochina).        155.300  125,000 

Total 5, 064. 391        5. 181. 133 

II.  Bilateral  economic  assistance: 

1.  Indochina      economic 

.      lid 444.700  504,000 

2.  AID   development  is- 

sistance-generaL...       974.300  837.500 

3.  South  Asian  relief 101. 100 

4.  American  schoob  and 

hospitals  abroad 25,532  19.000 

5.  International  organiza- 

tions         127.472  155,022 

6.  Contin|ency  fund 23,99$  30.000 

7.  Administrative       ex- 

penses          61,579  50,100 


Rscal  year- 


1973 


1974 


8.  Narcotics  control  pro- 

gram.         $20,500  $42,500 

9.  PeaceCorps 80,560  77,100 

10.  Public   Law   480   as- 
sistance     1,260,100       1,146,800 

Total 3,119.841       2,862,022 

III.  U.S.  contributions  to  interna- 

iional  financial  institutions: 

1,  International    Develop- 

ment Association 320,000  320,000 

2,  Inter- American    Devel- 

ment  Bank 418,000  693,000 

3,  Asian         Development 

Bank 100.000 

Total 738,000        1,113.000 

IV.  Miscellaneous: 

1.  Migration   and   refugee 

programs 8,500  8,800 

2.  Assistance    tor    Soviet 

refugees 50,000  36,500 

3.  Inter-American  Founda- 

tion   3,473  13.285 

4.  Latin  American  highway.         20,000  30.000 

Total 81,973  88,585 

Total  foreign  assist- 
ance       9,004,205     9,2M,740 

Mr.  HUMPHREY,  Mr,  President,  I 
have  been  one  in  this  body  'crho  has  de- 
plored the  Presidential  impoundment  of 
appropriated  funds.  I  have  voted  repeat- 
edly for  resolutions  to  overcome  that 
exercise  of  executive  power,  which  I  con- 
sider to  be  imconstitutional. 

Congress  is  going  to  take  action  on 
this  matter.  We  have  on  our  Calendar 
No.  584,  House  Resolution  7130,  and  the 
Senate  bill,  S.  1541.  'W'e  vrlU  take  that  up 
on  January  21  of  the  coming  year.  Those 
bills  are  related  to  establishing  a  pro- 
cedure providing  congressional  control 
over  impoundment  of  funds  by  the  execu- 
tive branch,  and  for  other  purposes. 

This  Is  another  amendment  which  the 
Senator  from  Arkansas  offers  that  is  very 
good  in  its  substance  and  in  its  purpose. 
But  It  will  not  l:e!p  -as  at  this  time.  It 
will  not  expedite  the  passage  of  this 
measure.  Most  likely,  it  will  not  become 
effective  in  itp  own  right  as  a  part  n!  this 
bill. 

Therefore,  Mr.  President,  I  move  to 
table  the  amendment. 

The  PFLESIDING  OFFICER  The  ques- 
tion Is  on  the  motion  to  table  amendment 
No.  931, 

Mr.  JAVrrs.  Mr.  President.  I  asii  for 
the  yeas  and  nays. 

The  yeas  and  nays  were  ordered. 

Mr.  JA\TTS,  Mr.  President,  a  parlia- 
mentarj-  mqulr?- 

The  PRESIDING  OFFICER.  The  Sen- 
ator will  state  it 

Mr.  JA\TrS.  .*.';  I  understand  it  now, 
there  will  be  two  rt  ".>all  votes  on  amend- 
ments 2  and  3   on  the  motion  tc  labie. 

The      PRESIDING      OFFICER.      The 
amendments  are   No.   931    and  No    932 
There  will  be  two  back-to-back  rolicall 
votes  on  the  motions  tc  table  each  of 
those  amendments. 

Mr.  HUMPHREY'  Tie  f.rs'.  '.c:«  '^^  on 
amendment  No  2 

The  PRESIDING  OFFICER.  The  clei* 
will  call  the  roll. 

The  legislative  clerk  called  the  rolL 

Mr.  ROBERT  C,  BYRD.  I  announce 


42780 


CONGRESSION A  i    K 1  CORD  —  SENATE 


December  20,  197S 


that  the  Senator  from  Nevada  (Mr. 
Cannon),  the  Senator  from  Idaho  (Mr. 
Chitrch).  the  Senator  from  Mississippi 
(Mr.  Eastland > ,  the  Senator  from  North 
Carolina  (Mr.  Ervin),  the  Senator  from 
Alaska  (Mr.  Gravkd.  the  Senator  from 
South  Carolina  (Mr.  Hollings>.  the 
Senator  from  Utah  (Mr.  Moss),  the 
Senator  from  Wyoming  iMr.  McGsi), 
and  the  Senator  from  Georgia  i  Mr.  Tal- 
MADGK I  are  necessarily  absent. 

Mr.  GRIFFIN.  I  announce  that  the 
Senator  from  New  Hampshire  (Mr.  Cot- 
ton) is  absent  because  of  illness  in  his 
family. 

The  Senator  from  Vermont  (Mr. 
AiK£N>.  the  Senator  from  Oklahoma 
(Mr.  Bellmon'.  the  Senator  from  Utah 
(Mr.  Bennett),  the  Senator  from  Ten- 
nessee tMr.  Brock',  the  Senator  from 
Massachusetts  (Mr.  Brooke),  the  Sena- 
tor from  New  York  (Mr.  Bttckley).  the 
Senator  from  Hawaii  (Mr.  Fonc).  the 
Senator  from  Idaho  (Mr.  McClure),  the 
Senator  from  Kansas  (Mr.  Pearson)  ,  the 
Senator  from  Illinois  (Mr.  Percy),  the 
Senator  from  Delaware  *Mr.  Roth),  the 
Senators  from  Ohio  (Mr.  Saxbe  and  Mr. 
Taft).  the  Senator  from  Texas  (Mr. 
Tower),  and  the  Senator  from  Connec- 
ticut Mr.  Weickeh)  are  necessarily 
absent. 

The  Senator  from  New  Mexico  (Mr. 
DouKNici)  is  detained  on  official  busi- 
ness. 

If  present  and  voting,  the  Senator  from 
Illinois  I  Mr.  Percy),  the  Senator  from 
Texas  'Mr.  Tower),  and  the  Senator 
from  Connecticut  (Mr.  Weicker)  would 
each  vote  "yea." 

The  result  was  aimounced — yeas  49. 
nays  25.  as  follows: 

|No.  608  Leg  1 
YEAS — 49 


Baker 

Bayh 

BeaU 

Ben«*n 

Bible 

Blden 

Cue 

Chllea 

Cook 

Cranston 

Do)e 

rxjminlck 

Ea,<:eton 

Onflln 

Oumey 

Hanke 

HMkeU 


Abourezk 

Allen 

Bartlett 

Burdlck 
Byrd. 


Harry  P  .  Jr.     Hatfleld 
Byrd.  Robert  C.  Hathaway 
Clark  Helmj 

Curtu  Hruaka 


Huddleston  Pell 

Humphrey  Pro  xm  ire 

laouye  Randolph 

JackaoD  Ribicoff 

Javlta  Schwolker 

Johncton  Scott.  Hugh 

Kennedy  Stafford 

tCagnuaon  Stennla 

BCatblaa  SteTena 

McOovem  Stevenson 

Mclntyre  Symington 

Uondaie  Thurmond 

Mcntoya  Tunney 

Muskle  Williams 

Nelaon  Toxing 
Pack  wood 
Paatore 

NATS— 25 

Pannin  Hughea 

Pulbrlcht  Long 

Ooldwater  Mansfield 

Hansen  McCIeUan 

Hsirt  Metcalf 


Nunn 
Scott. 

WUllam  L 
Spcu-kman 


NOT  VOTINO— 2« 


Aiken 

Bellmon 

Bennett 

Brock 

Brooke 

Buckley 

Cannon 

Church 

Cotton 


Dcmenlcl 

Eastland 

Ervin 

Pong 

Ormvel 

HoIllngB 

McClure 

MeOee 

Mo* 


Pe&rvon 
Percy 
Roth 
Saxbe 

Taft 

Talmadge 
Tower 
Weicker 


So  Mr.  HuicpHRET's  motion  to  lay  on 
the  table  Mr  Pulbmght's  amendment 
No  931  wa«  ain^ed  to. 

The  PRESIDING  OFFICER.  Under  the 
previous  order,  the  vote  now  occiirs  on 


the  motion  to  table  amendment  No.  932. 
The  yeas  and  nays  have  been  ordered, 
and  the  clerk  will  caU  the  roll. 

The  legislative  clerk  called  the  roll. 

Mr.  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Nevada  (Mr.  Can- 
non), the  Senator  from  Idaho  (Mr. 
(Z^HURCH ) .  the  Senator  from  Mississippi 
(Mr.  Eastland)  .  the  Senator  from  North 
Carolina  (Mr.  Ervin).  the  Senator  from 
Alaska  (Mr.  Gravel),  the  Senator  from 
South  Carolina  (Mr.  Hollincs)  ,  the  Sen- 
ator from  Wyoming  (Mr.  McG«),  the 
Senator  from  Utah  (Mr.  Moss),  and  the 
Senator  from  Georgia  (Mr.  Talmadce). 
are  necessarily  absent. 

Mr.  GRIFFIN  I  armounce  that  the 
Senator  from  New  Hampshire  ( Mr.  Cot- 
ton) is  absent  because  of  illness  in  his 
family. 

The  Senator  from  Vermont  (Mr. 
Aiken),  the  Senator  from  Oklahoma 
(Mr.  Bellmon).  the  Senator  from  Utah 
(Mr.  Bennett),  the  Senator  from  Ten- 
nessee (Mr.  Brock),  the  Senator  from 
Massachusetts  (Mr.  Brooke),  the  Sena- 
tor from  New  York  (Mr  Buckley),  the 
Senator  from  Hawaii  (Mr.  Fong).  the 
Senator  from  Idaho  (Mr.  McClure), 
the  Senator  from  Kansas  (Mr.  Pearson)  . 
the  Senator  from  Illinois  (Mr.  Perot). 
the  Senator  from  Delaware  ( Mr.  Roth  ) , 
the  Senators  from  Ohio  (Mr.  Saxbe  and 
Mr.  Tatt)  ,  the  Senator  from  Texas  (Mr. 
Tower),  and  the  Senator  from  Con- 
necticut (Mr.  Weickxr),  are  necessarily 
absent. 

The  Senator  from  New  Mexico  (Mr. 
DoMXNici),  Is  detained  on  official  busi- 
ness. 

If  present  and  voting,  the  Senator 
from  Illinois  (Mr.  Percy),  the  Senator 
from  Texas  (Mr.  Tower)  ,  and  the  Sena- 
tor from  Connecticut  (Mr.  Weicker). 
would  each  vote  "yea." 

The  result  was  announced — yeas  62, 
nays  12.  as  follows: 

(No.  609  Leg.] 

TEAS — 62 

AUen  Hansen  Packwood 

Baker  Hart  Pastore 

Bartlett      '  Hartke  Pell 

Bayh  Hathaway  Proxmlre 

Be«U  Hruska  Randolph 

Bentsen  Huddleeton  Ribicoff 

Blden  Humphrey  Schweiker 

Burdlck  Inouye  Scott.  Hugh 

Byrd.  Jackson  Scott. 

Harry  P  .  Jr     Jartu  WUllam  L. 

Case  Johnston  Sparkman 

Chiles  Kennedy  Stafford 

Cook  Long  Stennia 

Cranston  Magnuson  Sterens 

Curtis  Mathlas  Stevenson 

Dole  McOovem  Symington 

Domlnlck  Mclntyre  Thurmond 

Eagleton  Mondale  Tunney 

Pannln  Montoya  Williams 

C}oldwater  Muskle  Young 

OrUBn  Nelson  ' 

Oumey  Nunn 

NAYS— 12 
Abourezk  Pulbrlnht 

Bible  Haskell 

Byrd.  Robert  C.  Hatfleld 
Clark  Helms 


Huehefl 
Mansfleld 
McCIeUan 
Metcalf 


NOT  VOTINO— 26 

Aiken  Oomenlcl  Pearson 

Bellmon  Eastlaod  Percy 

Bennett  Ervin  Roth 

Brock  Pong  Saxbe 

Brooke  Oravel  Taft 

Buckler  Holllnga  Talmadge 

Cannon  McClure  Tower 

Church  McOee  Weicker 
Cotton 


So  the  motion  to  lay  on  the  table  Mr. 
PuLBRiGHTS  amendment  No.  932  was 
agreed  to. 

Ui  DOLE.  Mr.  President.  I  send  an 
amendment  to  the  desk  and  ask  for  Its 
immediate  consideration. 

The  PRESIDmO  OFFICER.  The  clerk 
will  report  the  amendment. 

The  legislative  clerk  read  as  follows: 

At  the  end  of  the  bill  add  the  following 
new  section : 

"Sec.  The  Congress  hereby  finds  and 
determines  to  be  adverse  to  the  public  Inter- 
est any  contract  or  agreement,  within  the 
scope  of  TlUe  49  OS  Code.  Section  1382.  be- 
tween an  air  carrier,  and  any  citizen,  corpora- 
tion or  agent  of  any  country  which  1)  pro- 
hibit* or  Umlte  the  export  of  crude  oil  or 
refined  petroleum  products  from  such  coun- 
try to  the  nmted  States  or  2)  harbors,  gives 
refuge  to.  aids,  abets  or  augments  the  activi- 
ties of  any  individual  or  organization 
engaging  in  acta  of  violence  against  air 
commerce." 

Mr.  DOLE.  Mr.  President,  let  me  briefly 
explain  the  purpose  of  the  amendment. 
In  the  Washington  Post  of  this  morn- 
ing there  is  an  article  datelined  Kansas 
City.  Mo.  The  headline  is  "TWA  Trains 
Arab  Pilots  Despite  Embargo."  The  story 
details  how  this  airline  is  training  Saudi 
Arabian  pilots  in  Jets  that  use  about 
1,800  gallons  of  Jet  fuel  an  hour 

I  had  a  rather  irate  phone  call  last 
night  from  a  Kansan  who  does  not 
understand  how  we  can  permit  this  to 
go  on  at  the  very  time  that  we  are  asking 
Americans  to  limit  their  gasoline  pur- 
chases, curtail  air  traffic  and  make  other 
sacrifices. 

We  have  airline  pilots  and  others  who 
are  being  furloughed  because  of  the  fuel 
shortages,  as  are  stewardesses,  machin- 
ists, and  others  who  work  for  the  air- 
lines. Many  people  are  being  laid  off  be- 
cause of  the  shortage. 

Mr.  President.  I  do  not  fault  the  train- 
ing program,  for  it  is  imdoubtedly  based 
on  firm  and  binding  contract  arrange- 
ments. But  it  seems  that  the  Arabs 
should  at  leasi  have  brought  their  own 
fuels,  because  they  have  them  in  abun- 
dance, and  we  do  not. 

It  would  be  my  expectation  that  most 
Americans  think  the  airlines  of  nations 
which  place  an  oil  embargo  against 
America  or  which  harbor  air  terrorists 
should  not  receive  this  kind  of  benefit 
from  America's  airlines  and  their  well 
knowTi  capabilities  for  training  and  In- 
structing flight  crews. 

The  need  for  this  is  emphasized  by  the 
growing  squeeze  against  this  country  by 
the  oil  embargo,  and  It  is  hard  to  see 
any  need  for  our  planes  to  be  burning 
American  fuel  to  train  Arab  pilots  at  a 
time  when  American  citizens  are  being 
asked  to  buy  only  10  gallons  of  gas  a 
week. 

I  understand  that  TransWorld  Air- 
lines is  the  only  airline  that  conducts 
such  a  program  for  an  Arab  airline,  and 
It  would  be  my  assumption  that  they 
have  a  contractual  obligation  to  furnish 
these  services. 

My  amendment  would  establish  a 
basis  for  the  Civil  Aeronautics  Board  to 
disapprove  of  any  such  training  agree- 
ment with  airlines  of  oll-blocklng  coun- 
tries. It  would  further  ban  any  siwh 
agreement  with  the  airlines  of  nations 


December  20,  1973 


CONGRESSIONAL  RJECORD  —  SENATE 


42781 


which  refuse  to  deal  with  aircraft  hi- 
jackers and  terrorists  according  to  the 
requirements  of  international  law  and 
Justice. 

These  measures  are  dictated  by  com- 
monsense.  I  do  not  know  of  any  reason 
to  allow  oil  boycotting  nations  or  those 
which  condone  terrorism  to  enjoy  the 
benefits  of  our  airline  technology  and 
know-how  Eind  to  use  up  our  vital  fuel 
In  the  process. 

Mr.  President,  the  amendment  has 
been  discussed  with  the  distinguished 
Senator  from  Minnesota  (Mr  Hum- 
phrit)  and  with  the  distinguished  Sen- 
ator from  New  York  'Mr  Javits'.  I  un- 
derstand it  is  important  that  we  not  add 
amendments  to  this  bill  which  might 
force  a  conference.  I  agree  with  that 
thinking. 

We  are  in  the  final  stage  of  the  session, 
and  a  conference  at  this  time,  even  on  an 
amendment  which  I  believe  is  important 
and  which  has  wide  support,  would  take 
time.  BCnowing  what  happens  at  this 
stage  of  ttie  proceedings  of  a  sesslc«i  of 
the  Congress,  It  might  mean  that  some 
measure  might  have  to  go  over. 

I  have  discussed  this  with  both  of  my 
distinguished  colleagues  and  intend  to 
withdraw  my  amencjment.  However,  be- 
fore doing  so.  I  would  yield  to  the  dis- 
tinguished Senators  from  New  York  and 
Minnesota  for  their  views  on  some  ac- 
tion which  could  be  taken  that  would 
prevent  or  at  least  limit  what  Is  happen- 
ing at  this  time. 

Mr.  HUMPHREY.  Mr.  President,  if  the 
Senator  will  yield,  first  of  all,  I  am  in  fuU 
sympathy  with  the  Senator's  amend- 
ment, as  the  Senator  understands. 

The  amendment  says  what  I  think 
needs  to  be  said  and  the  public  policy 
it  expresses  is  a  sound  public  policy.  It 
Is  regrettable  that  this  amendment,  as  is 
the  case  with  other  similar  amendments, 
would,  if  added  to  this  biU,  force  a  con- 
ference. 

We  are  running  close  to  not  having  a 
quorum  in  the  other  body  as  well  as  in 
this  one.  I  sjoi  afraid  that  we  would  not 
get  any  legislation  on  what  I  consider  to 
be  very  important  legislaUon  in  light  of 
the  upcoming  Geneva  Conference  on  the 
possibilities  of  peace  in  the  Middle  East. 

I  appreciate  it  that  the  Senator  from 
Kansas  Is  willing  to  withdraw  his  amend- 
ment. However,  I  think  that  we  should 
take  this  matter  up  with  our  energy  di- 
rector, Mr.  Simon.  After  all,  the  alloca- 
tion of  fuel  oil  and  Jet  fuel  is  under  the 
control  of  the  Federal  Government.  This 
practice  does  not  relate  to  commercial  air 
traffic.  It  relates  to  the  training  of  pilots 
of  countries  that  have  imposed  an  oil 
embargo  on  us  or  countries  that  have 
harbored  those  who  have  engaged  in 
acts  of  violence  against  air  commerce. 

Mr.  President,  I  would  Join  the  Sen- 
ator from  Kansas  in  Insisting  that  Mr. 
Simon,  the  present  Director  of  the  en- 
ergy program  of  the  US.  Government, 
take  a  look  into  this  matter  at  once  and 
inform  the  TWA  that  Jet  fuel  Is  in  scarce 
supply  and  that,  contract  or  no  contract, 
we  do  not  have  the  fuel  to  engage  in  this 
kind  of  activity  to  which  the  Senator's 
amendment  is  directed. 

I  would  be  happy  to  cooperate  in  any 


way  that  I  can  to  effectuate  the  purpose 
of  the  amendment. 

Mr.  DOLE.  Mr.  President,  I  thank  the 
Senator  from  Minnesota.  The  coiu-^  the 
Senator  from  Minnesota  suggests  is  one 
which  bears  very  closely  on  the  purpose 
of  my  amendment,  and  I  would  agree 
with  his  suggestion. 

Mr.  JAVITS  Mr  President,  if  the  Sen- 
ator will  yield.  I  join  with  everything 
that  the  Senator  from  Minnesota  has 
said.  I  will  join  with  both  Senators,  the 
Senator  from  Kansas  and  the  Senator 
from  Minnesota,  in  the  effort  that  Is 
made  to  stop  this  practice  and  to  see  that 
appropriate  action  is  taken  by  the  ad- 
ministrator of  the  FEEA. 

Second,  as  a  member  of  the  Foreign 
Relations  Committee,  I  will  immediately 
communicate  with  the  Bute  Department 
and  really  do  everjthlng  that  I  humanly 
can  on  the  second  part  of  the  amend- 
ment, the  terrorist  part.  This  is  a  most 
shocking,  most  barbaric,  unreasoned 
force  which  Is  let  loose  on  mankind,  in- 
nocent people  who  become  involved  with 
not  the  remotest  connection  to  any  of 
this.  They  are  nevertheless  killed  or  are 
treated  as  hostages. 

I  attended  a  great  meeting  of  the  Or- 
ganization of  World  Peace,  for  World 
Law  and  Organization.  It  occurred  In 
August,  and  it  took  part  of  our  holiday 
to  do  that. 

I  advocated  there  an  international 
conference  on  terrorism.  Unhappily  for 
all  of  us,  the  so-called  developed  coun- 
tries think  that  these  activities  are 
healthy  revolutionary  activities  in  con- 
nection with  breaking  the  bonds  of  colon- 
ial policies. 

By  not  permitting  the  adoption  of  an 
international  conference  on  this  matter, 
this  practice  Is  condoned  and  we  have 
this  kind  of  terrorism  which  we  saw  in 
Rome  and  Athens. 

I  could  not  think  of  more  convoluted 
rea.soning,  and  I  agree  with  the  Senator 
that  we  shall  have  to  make  a  unilateral 
effort.  I  have  tried  before  on  other  bills, 
and  we  have  not  been  successful,  to  pro- 
mote multilateral  action.  But  the  Indig- 
nation of  mankind  has  to  be  expressed 
by  someone,  and  I  hope  we  will  do  It. 

So  I  thoroughly  agree  with  the  Sena- 
tor, and  shall  do  my  utmost,  through  for- 
eign relations,  to  do  that  which  he  seeks, 
which  is  attributable  to  the  State  De- 
partment. 

Mr.  DOLE.  I  thank  the  Senator  from 
New  York  and  the  Senator  from  Minne- 
sota, and  would  underscore  that  I  am 
particularly  concerned,  as  I  think  every- 
one in  this  body  is  with  the  problem  of 
terrorism  and  with  what  appears  to  be 
a  crisis  regarding  the  fuel  shortage. 

Turning  again  to  the  training  program, 
it  has  been  carried  on,  I  imderstand,  by 
TWA  for  some  20  years  or  more,  with 
pilots  from  a  number  of  foreign  coun- 
tries, and  I  do  not  really  find  fault  with 
the  program.  The  oil  embargo  certainly 
could  not  have  been  foreseen  at  the  tune 
It  was  initiated.  But  it  seems  to  me  that 
at  this  time,  when  we  are  asking  Amer- 
icans to  make  sacrifices,  we  ought  to  at 
least  take  a  close  look  at  those  foreign 
coimtrles  which  tell  us  the  oil  supply  will 
be  shut  off  to  America.  I  think  the  train- 


ing program,  where  they  use  up  our  pre- 
cious fuel,  should  be  shut  off  to  them. 

I  repeat,  Mr.  President,  the  need  for 
this  measure  is  emphasized  by  the  grow- 
ing squeeze  of  the  Arab  oU  embargo 
against  the  United  States  and  this  week's 
senseless  loss  of  life  in  the  Rome  airport. 
There  is  no  reason  for  American  planes 
to  be  burning  our  precious  fuels  for  Arab 
commercial  pilot  training  at  a  time  when 
the  average  motorist  is  being  told  to  hold 
gasoline  purchases  to  only  10  gallons. 

One  major  US  airline  is  continulrig 
to  train  Saudi  Arabian  pilots  in  the  face 
of  that  coimtry's  leadership  of  the  Arab 
oil  embargo.  I  assume  their  contractual 
arrangements  provide  no  release  from 
this  obligation.  But  my  amendment 
would  astablish  the  bsisis  for  the  Civil 
Aeronautics  Board  to  disapprove  any 
such  training  agreement. 

The  amendment  would  further  ban  any 
such  agreements  with  the  airlines  of  na- 
tions which  refuse  to  deal  with  air  ter- 
rorists according  to  the  requirements  of 
international  law  and  justice. 

These  measures  are  only  dictated  by 
commonsense.  There  is  no  reason  to  al- 
low oil  boycotting  nations  to  enjov  the 
benefits  of  our  airlines  great  technologi- 
cal know-how  and  our  vital  fuels.  And 
hkewise  any  nation  which  gives  any  com- 
fort or  encouragement  to  air  terrorists — 
regardless  of  nationality,  religion  or 
ideology — should  be  cut  off  from  all  bene- 
fits and  considerations  which  law-abid- 
ing nations  enjoy. 

I  ask  unanimous  consent  to  have 
printed  in  the  Record  the  article  entitled 
"TWA  Trains  Arab  Pilots  Despite  Em- 
bargo," published  in  this  morning's 
Washlngtcm  Post. 

The.re  being  no  objecticwi,  the  article 
was  ordered  to  be  printed  in  the  Record, 
as  follows: 
TWA   Trai.vs  A&ab  Phots  DesprrE  Embabgo 

Kansas  Crry,  Mo.,  December  19 — Trans 
World  Airlines  officials  acknowledged  today 
that  despite  the  Arab  oU  embargo,  the  com- 
pany IS  training  Arab  commercial  pilots  In 
Jetliners  that  bum  1,800  gallons  of  domestic 
Jet  fuel  an  hour. 

Disclosure  of  the  Arab  pUot  training  pro- 
gram came  as  TWA  resumed  service  after  a 
45-daT  strllce  by  stewards  and  stewardesses. 

A  spokesman  said  16  per  cent  of  domestic 
service  and  6  per  cent  of  TWA's  International 
s©nice  was  restored  the  first  day.  Complete 
resximption  of  senlce  was  expected  by  Satur- 
day. 

"It  Is  a  little  surprising  to  me  that  the 
government  of  Saudi  Arabia  would  have  the 
audacity  to  expect  the  American  people  to 
let  this  happen,"  Rep.  Jerry  Litton  (I>-Mo.) 
said.  "I  am  franlUy  shocked  and  amazed. 
There  Is  a  principle  Involved  here." 

TWA  said  It  has  trained  Arab  pilots  since 
1946  and  that  Saudi  Arabia  Is  only  one  of  a 
number  of  foreign  countries  sending  pilot 
trainees  to  TWA's  training  center  In  Kansas 
City. 

"TWA's  management  and  technical  assist- 
ance contract  with  Saudi  Arabian  Airline  has 
been  determined  to  be  in  the  public  Interest 
and  repeated  and  current  Indications  from 
CAB  (Civil  AeronaOtlcs  Board)  as  well  as  the 
Department  of  State  reflect  ttiat  the  pro- 
gram Is  desirable  and  In  the  interest  of  our 
International  relations,"  said  TWA  Vice 
President  Thomas  K.  Taylor. 

Litton  said  he  had  telegramed  the  CAB 
asking  for  a  "re-examlnatlon  and  If  neces- 
sary   a    revocation"    of    the    CAB-approved 


12782 


COXnRF^^inXAT    RFrORD  — SENATF 


December  20,  1978 


agreement  whereby  TWA  tnlnB  the  Arab 
pUota. 

"Consideration  should  Include  mandating 
that  Saudi  ArabU  supply  the  fuel  necessary 
to  provide  training  of  their  personnel  In  lieu 
of  using  domestic  fuel  so  crltlcaUy  short  In 
the  United  States."  Litton  added. 

TWA  trains  the  pilots  moetly  In  Boeing  707 
and  727  Jets,  taking  off  and  landing  at  Rose- 
crans  Memorial  Airport,  St.  Joseph,  Mo. 

A  Boeing  727  bxims  about  1.350  gallons 
per  hour,  a  707  about  1,800  gallons  per  hour. 

"I  am  not  condemning  TWA  because  as  I 
understand  It  this  has  been  a  management 
agreement  that  has  been  In  effect  since  1946," 
Litton  said. 

"I  am  concerned,  though,  that  the  Ameri- 
can people  have  been  asked  to  turn  down 
heat  In  their  homes  and  not  drive  on  Sun- 
day. .  .  while  in  excess  of  1.000  gaUons  of 
American  Jet  fuel  an  hovir  Is  being  burned 
for  the  benefit  of  pilots  from  a  country  partly 
responsible  for  our  shortage." 

Litton  also  said  he  had  taken  up  the  mat- 
ter with  the  State  Department  and  was  con- 
sidering Introducing  a  bill  In  Congress. 

Mr.  DOLE.  I  withdraw  the  amendment. 

The  PRESIDING  OFFICER.  The 
amendment  Is  withdrawn. 

Mr.  HELMS.  Mr.  President.  I  have  an 
imprinted  timendment  at  the  desk,  which 
I  call  up  aad  acfc  timt  it  be  reported. 

The/^reESIDING  OFFICER.  The 
amenoment  will  be  stated. 

The  legislative  clerk  proceeded  to  read 
the  amendment. 

Mr.  Helms'  amendment  Is  as  follows: 

On  page  3.  delete  lines  3  through  13,  and 
Insert  the  following : 

Src.  4.  At  any  time  prior  to  June  30,  1974. 
the  President  Is  hereby  authorized  within 
the  limits  of  funds  appropriated  under  Sec- 
tion 2  of  this  Act  for  Israel,  to  make  loan 
agreements  with  Israel  to  {jermlt  payments 
for  defense  articles  and  defense  services  pur- 
chased or  financed  under  the  Foreign  Military 
Sales  Act  or  under  this  Act  during  the  peri- 
od beglniUng  CJctober  6,  1973,  and  ending 
June  30,  1974,  to  the  extent  that  Interest  is 
charged  at  a  rate  which  will,  as  nearly  as 
practicable,  be  equivalent  to  the  average  cost 
of  funds  to  the  United  States  Treasury,  as 
determined  by  the  Secretary  of  the  Treasury, 
on  outstanding  marketable  obligations  of  the 
United  States  having  maturities  comparable 
to  maturities  of  credits  extended  under  this 
section. 

Mr.  HELMS.  Mr.  President,  my 
amendment  would  limit  the  funds  au- 
thorized under  this  bin  to  loans  made  at 
the  same  rate  of  interest  as  the  U^S. 
Treasury  is  Itself  forced  to  pay  when  It 
borrows  money — which  the  Treasury  is 
constantly  doing. 

As  I  understand  it,  the  funds  au- 
thorized in  this  bill  are  to  pay  for  ship- 
ments made  under  the  Foreign  Military 
Sales  Act,  which  requires  payment  with- 
in 120  days  after  delivery.  Credits  under 
that  act  are  usually  made  at  the  cost  of 
interest  to  the  U.S.  Treasury.  My  amend- 
ment would  insure  that  the  Department 
of  Defense  gets  paid  for  the  items  which 
were  shipped  to  Israel  at  the  height  of 
the  October  war  so  that  they  can  be  re- 
placed in  our  own  Inventory,  while  at 
the  same  time  it  prevents  us  from  sim- 
ply adding  $2.2  billion  to  our  own  na- 
tional debt,  a  2.2  billion  which  will 
otherwise  be  in  addition  to  the  present 
UJS.  budget. 


The  simplest  thing,  and  the  honest 
thing  for  this  bill  to  do  would  be  merely 
to  cancel  the  obligations  which  Israel 
owes  under  the  Foreign  Military  Sales 
Act.  But  bookkeeping  requires  that  the 
Department  of  Defense  be  reimbursed  so 
that  our  own  defenses  can  be  kept  up  to 
par.  Whichever  way  it  Is  done,  the  funds 
become  an  outright  grant,  and  a  grant 
that  adds  to  the  U.S.  debt.  The  arms 
were  sold  to  Israel,  and  we  have  to  as- 
sume that  the  purchase  was  made  In 
good  faith.  Now  we  are  being  asked  to 
cancel  the  sale  and  make  an  outright 
gift.  Indeed,  we  are  told  that  Israel  can- 
not afford  to  buy  the  arms  already 
shipped  and  used. 

Mr.  President,  the  Senate  is  being 
presented  with  an  accomplished  fact, 
and  we  are  asked  to  ratify  something 
done  without  authorization.  Technically, 
the  President  was  authorized  to  make  a 
sale,  but  he  was  not  authorized  to  make 
a  sale  which  was  intended  to  be  a  gift. 
The  initial  transaction  should  ^not  be 
treated  as  a  subterfuge. 

I  do  not  opiTose  the  sale  of  arms  to 
Israel;  and  I  see  merit  in  the  concept 
of  an  even-handed  balancing  of  arms 
shipments  to  both  sides  in  the  conflict. 
But  I  do  oppose  adding  up  to  $2.3  bUlion 
to  our  national  debt  at  the  stroke  of  a 
pen. 

I  do  not  think  that  it  is  asking  too 
much  to  ask  the  Israelis  to  pay  the  same 
rate  of  Interest  that  the  American  people 
must  pay  in  taxes  for  money  borrowed 
by  tl»€TT.S.  Government. 

It  has  been  said  that  Israel  Is  in  no 
financial  position  to  imdertake  more 
debt.  Well,  Mr.  President,  how  about  the 
United  States? 

That  aside  for  the  moment,  Mr.  Presi- 
dent, the  Department  of  State  has  pre- 
pared an  analysis  of  the  Israeli  fiscal 
situation  which  show  that  Israeli  for- 
eign exchange  reserves,  at  the  end  of 
October  1973,  totaled  $1.8  billion.  Capital 
Inflows  for  1973  are  expected  to  total 
$2.3  billion,  not  including  the  $2.2  bUlion 
to  be  authorized  under  this  £u:t.  The 
Israeli  economy  was  booming  until  the 
beginning  of  the  October  war.  It  will 
boom  again  if  a  stable  peace  agreement 
is  achieved  In  Geneva.  I  do  not  think 
we  should  encourage  Israel  to  plan  In 
terms  of  extravagant  arms  purchases  in 
the  future;  we  should  be  encouraging 
all  parties  In  this  dispute  to  come  to  a 
reasonable  settlement.  There  must  be  no 
removal  of  incentive — either  Israel's  or 
the  Arabs' — to  go  back  to  a  peacetime 
economy. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  State  Department  sum- 
mary be  printed  in  the  Record  at  the 
conclusion  of  my  remarks. 

There  being  no  objection,  the  sum- 
mary was  ordered  to  be  printed  in  the 
Rbcoro,  as  follows: 

IsxAZU  Ecoifoinc  Iii^DtCAToms 

The  Israeli  economy  was  disrupted  by  the 
war  but  there  was  virtually  no  war  damage 
to  the  economic  Infrastructure.  The  direct 
Impact  of  the  war  on  the  economy  has  been 
felt  In  three  ways:  QNP  not  produced 
(there  has  been  an  estimated  temporary  30 


I>er  cent  drop);  InterTia!  •  -ai:-: :i,<  'f  *^^ 
government's  wartime  eip<>:  '..■  re.-  ard  tl.B 
financing  of  wartime  ex; •«:.  ;;tu.-fs  partic;- 
larly  for  military  Imp^  .-> 

For  the  five  years  prior  to  the  outbreak  of 
hostilities  In  October  1973,  the  Israeli  econ- 
omy had  been  In  a  condition  of  continuous 
boom.  The  economy  was  experiencing  strong 
Inflationary  pressures  resulting  from  a  com- 
bination of  fuU  capacity,  booming  demand, 
and  rising  Import  prices.  There  was  virtually 
no  unemployment.  Growth  In  real  QNP  was 
projected  at  about  a  per  cent  for  1973.  For- 
eign exchange  reserves  at  the  end  of  October 
1973  totaled  $1.8  billion,  up  about  $600  mU- 
llon  from  the  level  at  the  end  of  1972  and 
quadruple  the  figure  for  early  1970.  Jiist  be- 
fore large  U.S.  financial  assistance  began. 
Because  of  capital  Inflows  now  exp>ected  to 
total  $2.3  billion  In  1973.  Israel's  foreign  ex- 
change reserve  position  remains  strong.  (The< 
$2.3  billion  figure  does  not  Include  tht*  fx 
traordinary  assistance  now  being  conslde-^'d 
by  Congress.) 

Although  Israel  has  been  chronically  in  a 
deficit  position  In  current  account  during: 
each  of  the  past  five  years,  this  deficit  has 
been  more  than  offset  by  loans  and  gifts  from 
abroad.  Foreign  gifts  and  loans  have  exceeded 
$1.5  billion  annually.  Following  the  outbreak 
of  hostilities  In  c5ctober,  the  Israelis  an- 
nounced a  goal  of  raising  $1.9  bUllon  In  gifts 
of  which  $750  million  is  expected  from  the 
United  Jewish  Appeal  In  the  US.  and  $500 
million  from  Europe,  South  Africa  and 
Australia.  TtM  balance,  $650  mlUlon.  Is  to  be 
In  the  sale  of  Israeli  bonds.  The  Israeli  Minis- 
try of  Finance  has  announced  that  from 
October  1  to  November  23  Israel  raised  $350 
million  abroad. 

Prior  to  the  October  war,  Israel's  total  for- 
eign debt  was  about  $4.2  billion  with  annual 
repayments  (le.,  debt  service  payments), 
amounting  to  about  $690  million  annually. 
However,  unilateral  tran.sfers  during  the  past 
decade  have  increased  at  a  faster  rate  than 
debt  burden  so  that  the  ratio  of  debt  pay- 
ments to  exports — called  the  debt  service 
ratio,  a  conventional  Indicator  of  ability  to 
service  debt — actually  decreased  during  the 
period.  Before  the  outbreak  of  hostilities,  ex- 
ports had  been  Increasing  and  were  expected 
to  continue  to  Increase  faster  than  imports 
and  the  current  account  deficit  was  expected 
to  decline  after  1973.  The  ratio  of  debt  serv- 
ice payments  to  Israel's  exports  was  esti- 
mated to  decline  from  20  per  cent  in  1972  to 
16  per  cent  In  1973  However,  even  these 
ratios  tend  to  be  overstated  because  a  sizable 
portion  of  Israel's  foreign  debt  is  In  Israeli 
bonds,  more  than  half  of  which  has  alwAya 
been  redeemed  in  Israeli  pounds  rather  than 
foreign  exchange.  If  the  XSB.  were  to  provide 
the  entire  $2.2  billion  In  30-year  FMS  credits 
for  Israeli  military  purchases,  It  could  In- 
crecMe  the  projected  1973  ratio  of  debt  repay- 
ments to  exporta  to  an  estimated  37  per  cent 
and  somewhat  less  in  future  years — assuming 
of  course  that  balance  of  payments  continued 
to  develop  as  previously  projected. 

While  the  I-sra/-::  er<  :,,  ri;v  apjx'Bj-S  to  bjtve 
come  through  ':.>•  *a..'  :.  a  -p^fuvMible  con- 
dition so  far,  It  Is  stUi  very  early  to  have  a 
complete  picture  of  how  the  situation  will 
develop.  We  do  not  knoiw  how  long  the  par- 
tial mobUlzatlon  wUl  be  needed,  or  how  ex- 
ports to  Western  Europe,  Israel's  principal 
market,  will  be  affected  by  Arab  oU  preesuree. 
With  the  Israeli  pound  linked  tn  thf  -lollar, 
Inflation  and  realignment  of  Wes''*.'-  Euro- 
pean currencies  have  already  u.^reaiitid  the 
price  of  Imports.  The  need  for  Increased  de- 
fense production  Instead  r>f  fiTTv-irt«  will  f\ir- 
ther  affect  the  trade  ba.i:.  i»  wr-p*  ,«•  Israel 
Is  able  to  purchase  its  ii....tary  .-equireinants 
on  credit  terms  or  must  rely  up>on  United 
States  grant  aid  Is  contingent  upon  bow 
these  critical  factors  develop. 


December  20,   197S 


CONGRESSIONAL  RECORD  —  SEN  ATE 

omCIAL  FLOWS  OF  U.S.  ASSISTANCE  TO  ISRAEL 
[Minions  of  dollars) 


42783 


FbcilyMr— 


1964 


1965 


1966 


1967 


1968 


1969 


1970 


1971 


1972 


1973 


Total.  Total 

fiscal  year         fiscal  y«ar, 

l96*-73  l9»-7i 


Grtnb: 

Supporting  assistant* 

Immigrant  issistancB at'n iJk'n 

m'S^'^S^'.'"'"'"*"''""* ::::::::::;;::::::::"""VLo vto-::::::::::::::::::::::^::::      2.0     49:0 

other  (194»-62) 12^5  25  55  ^^ 

«J>*« 20.0  20.0  10.0  5.5 


100.0 
51.0 
32.0 


100.0 
51. 0 
32.0 

278.0 


Public  Law  480.. 


17.0 


28.8 


26.8 


51.8 


36.7 


41.4 


55.8 


54.2        '47.9 


361.0 


622.9 


Ti«!Il%!;^K^ '^S           ^\           25-2 i-         "-3           36.1           41.0           55.5  53.8         •47.6 

Title  II  (grants) .*  .5              .9              .6                5                6                4                3  4                3 

Exim  Bank  long  term 3.4 9.5 33:6          jo'o          ^^^  jlil          a3 

AID  housing  guarantee 1  50  0 

Foreign  mUrtary  sales  credit. "ii'9 gO.'o 7.'6 2i'6 si'O '36."6"""545.'6'  3000  ""'sOO'd' 


356.1  561.5 

4.9  61.4 

135.0  371.6 


1,394.9 


1,422.3 


Total  assistance 
Grants 


37.0 


6S.I 


126.8 


23.7 


82.8 


160.3 


93.9 


634.3 


432.0      >4716 


2.129.4 


3. 112. 1 


K:::::::::::::::::::::::::::::::::::::    ,n    i^'^  02^^    ,n    iU  M    H^?^  ,^\'^  m^'^W    o^iSIJi    a^ItJi 


>  Equivalent  in  local  currency. 

>  Not  included  in  totals. 


I  Preliminary. 
TABLE  I.— SUMMARY  BALAf^CE  OF  PAYMENTS,  1971-72 


|ln  millions  of  dotlarsi 


1971 


1972 


Item 


Net 
credit 


Debit     Credit 


Net 
credit 


Debit      Credit 


Total  transactions 4,049 

Autonomous  movements +172  3,683 

Goods  and  services —1,227  3,101 

Goods  (f.o.b.) -665  1,559 

Services -562  1,442 

Unilateral  transfers 766  16 

Long-term  capital 703  369 


4,049 4,690       4,680 


3,855     +687     3,945       4,630 


1,874-1,074     3,281       2,207 


994      -594 
880      -480 


1,797 
1,484 


1.285 
i:004 


782 

1,072 


1,055 
716 


7 
483 


1,062 
1,199 


1971 


1972 


Item 


Net 
credit 


Debit     Credit 


Net 

credit 


Debit       Credit 


Private 226 

Government 477 

Private  short-term  capital —78 

Errors  and  omissions 8 

Balancing  items —172 

Government  short-term  capital 16 

Central  monetary  institutions —270 

Other  monetary  institutions 68 

Special  drawing  rights 14 


190        416  302         196          498 

179         656  414         287           701 

197         ui  ^19         172           IM 

8  9 9 

m         194  ^M7         737             50 

96         112  -37           73 

270 -582        582 

68-82  82 

14  14 


38 


Source :  Central  Bureau  of  Statistics,  press  release. 

TABLE  2.— FOREIGN  EXCHANGE  OBLIGATIONS  BY  CREDITORS  AS  OF  MAR,  31,  1970,  1971.  AND  1972 

[In  millions  of  dollars| 


Mar.  31, 1970  Mar.  31, 1971  Mar.  31, 1972 


ToW 2.255.9  2.944.3  3,502.5 

L  Direct  obligations 1.821.8  2,343.0  2,716.3 

2.  Long  term 1,800.6  2.272.4  2, 635. 4 

World  Bank iTo  isT?  36  2 

International  Monetary  Fund 45.0  65  0  32.5 

West  Germany "294.8  324.5  393.5 

Israel  bonds  (including  principaO...          916.8  1,066.9  1249  9 

U.S.  Government. 481.5  755.9  861.0 

E^mbank (41.6)  (41.6)  (36.2) 

DLF (8.1)  7.4))  (6.8, 

*0--;----.- \        n57  8^{  ('12.9)  (105.7 

AID— defense  loan }       U»/.8>{  ,,77  J  (XVi  i 

Public  Uw480 (83.7)  (135.0)  (177' 

MOD  J500.000J)00  loan (190.4)  (291.4)  (372.7' 

MOD  JZO.OOO.doO  loan (_>  (_}  ^09  g' 

MOD  »5,000,000  k)an )-)  )-{  Vj' 

Bank  and  other  hMRs 1  14.7  6  5  59  0 

Suppliers' credits 6.6  4.9  i.% 

Other  aedits 1.1  .1  j 

b.  Medium  term 43.4  490 

Bank  o(  America .  30  0  20  0 

Bank  end  other  loans j.'  3 

Suppliers' cfedlta ie"  8.3 

Other  credits 9.g  14.4 

c.  Short  term iH  zj^  31.8 

Bank  and  other  k>ans ...... 13.2  .2  314 

Bank  credit  lor  import».„..._....              |^0  JI.2 

Suppliers' credits ...„  I5i7  ""*         4* 

Other  credits . .2 

2  Guaranteed  oUigatnns 126.8  165.1  175.8 

a  Lorn  term 118.3  125.6  130.1 

"'ortd  Bank 44^6  JH  "^ 

U.S  GovernmeBL I6.0  113  314 

^„«*«'*- (U.2)  (16.4)  (29.5) 

*«> (1.8)  (1.8)  (1.8j 

I  T^e  toUl  ol  these  3  Items  was  »09.600.000;  the  breakdown  Is  estimated  from  other  sources, 

<yxrx 2694     Part  33 


Mar.  31, 1970  Mar.  31, 1971  Mar.  31, 1972 


Bank  of  America 6.0  4.8  3.6 

Bank  and  other  toans 12.7  22.3  14.7 

Suppliers' credits 38.6  30.9  20.6 

Other  credits .4  2.9  6.0 

b.  Medium  term 8.5  39.6  40.7 

Loans  from  foreign  deposits... 

Bank  and  other  loans 

Suppliers'  credits 

Other  credits , 

c  Short  term 

Bank  and  other  toans 

3.  Guarantee  of  convertibility 

a.  Long  term 

U.S.  Government:  Eximbank... 
Loans  from  foreign  deposits... 

Bank  and  other  lotos 

Siipplie'5'  c  edits....... 

Omerce-:'!   ........ .. 

b.  Medium  term ............... 

\j»ta  trom  foreign  deposits... 

Bank  and  other  wsbs 

Suppliers'  credits 

Other  credits 

c  Short  term -. 

Loans  from  foreign  deposits 14.6  26.9  22.8 

Bank  MMl  other  loans 24.7  12.9  5l9 

Bask  cndit  for  imports 33.5  39.6  44.4 

SappUers*  credits.. ...-S. 15.5  8.9  9.7 

Othercredfts .2  0  2.0 


3.0 
4.6 

8.3 

30.7 

.2 

.4 

21.0 

19  6 

.3 

0 

.6 

1 

5.0 

S.0 

304.8 

406.4 

538.5 

1714 

257.3 

376.7 

12.3 

3.3 

68,3 

15.5 
13 
912 
59.9 
8S.4 

20.9 

12 

107  4 

28.^^ 

115.7 

6?7 

129.7 

,     J^ 

/40  8 

60.8 

77  0 

X    *'•' 

1.2 
18,2 

11.1 

26.6 

16.9 

6.2 

16.9 
24.1 

8.4 

22.7 

13.0 

113 

88.6 

88.4 

84.8 

i-'T^l 


V  CO-Nc.KlSSIONAl    Ki(  OKI)  —  SE.NAIK 

TABLE  5  — fOUtlGN  OCBT  Sf RVICt.  U52-;3 
[In  miUkxa  o(  MUrsj 


December  20,  197S 


pairmtnts 


CJtandar  yMr 


ToM    PhiKipat      Intarvst 


Ei  ports 
of  G.  A  S. 


Uni- 

IftorH 

transfMi 


Dtbt  Mmca  rttn 
(pafwrt) 

Plos 
tiports      tnnsftn 


19SZ. 

1953. 
19M. 
19S5.. 


19SS. 

1957. 

i9sa. 

1959. 
1960. 


1961. 
1962. 


40.3 
37.0 
70.5 
19.5 

SO.  2 
lot.  6 
U1.5 
115.1 
134.3 

147.6 
1(12 


29  0 

21.0 

55.3 

5.0 

62.0 
86.5 
113.1 
<1.4 
92.0 

97.1 
115.3 


11.3 
16.0 
15.2 
14.5 

112 
22.1 
28.4 
33.7 
42.3 

50.5 
52.9 


85.7 
102.1 
140.9 
144.3 

17J.5 
223.1 
216.5 
2C6.8 

336.0 

397.9 
471.8 


191  7 
174.4 
266.7 
214.0 

244.3 
254.2 
263.5 
255.7 
3111 

347.8 
335.5 


47.0 
36.2 
50.0 
13.5 

U  9 

48.7 
65.4 
43.1 
40.0 

37.1 
35.7 


14.5 

13.4 

-tT.3 

5.4 

19.0 
22.8 
29.2 
22.0 
20.5 


CitoiHtarrMr 


0«i)<  Mrvk*  p*ym*nti 
ToM    Piindpal      Inttrtst 


Export] 
of  G.  Il  S. 


Uni- 

littrtl 

tramftra 


Dtbt  Mrvic*  rriio 
(portoflO 

Plus 
Ejqtorts      trsosfan 


19 
20. 


1963. 
1964. 
1965. 

1966. 

1967. 
196>. 
1969. 
1970. 


1971 

1972  (Bt.).„ 

1973  XnX.)... 


229  4 
206.2 
209.1 

303.3 
263.5 
326.4 
374.3 
445.0 

531.5 
690.0 
710.0 


176.3 
146.5 
141.0 

226.2 
169.0 
221.9 
251.6 
291.8 

335.1 
450.0 
420. 0 


53.1 
59.7 
611 

77.1 

94.5 

104.5 

122.7 

153  2 

196.4 
240  0 
290.0 


576.8 
6119 
710.6 

832.2 

9014 

1.146.8 

1.  288.  3 
1.397.3 

1.8414 

2.  275.  0 
2.615.0 


352.7 
337.6 
330.5 

295.0 
5316 
448.3 

473.9 
673.6 

8019 
945.0 
895.0 


39.8 
33.3 
29.4 

36.4 

29.0 
215 
29.1 
31.8 

218 
30.3 
27.2 


24.7 
21.6 
20.1 

219 
112 
20.5 
21.2 
21.5 

20.0 
21.4 
20.2 


Soo^s  l952^a-C8S.    ,sr.-  B-4«.  of  P.,m,„„.  ,952-70";  1970-71-CBS.  •M-m.l,  BulMin  of  SU.,sticSupp-.«.«.-  «.,  ,972;  1972-73-   Nfo™.  Bud^t  for  ,973."  I„,.„«  «„„«,.<,. 


1.  UniUtoral  transfers. 


895 


945 


800 


674 


Institutional  traftsfors 

Carman  porsonji  itstitirtMwI 

Pfivato  transftrs.. 

USG  grant. 


245 

250 
350 

50 


300 

280 

335 

30 


264 
231 
305 


290 
204 
180 


2.  Gross  foriign  inv«stm«nt 

3.  Lont-  and  medium-tarm  toons. 


lao 

1.030 


180 
980 


100 
1.003 


53 

851 


Israol  bonds. „ 

AfTitulturaf  JorjWus  loans  .'".V."." 

Eiport- Import  Bank  loans '..'.'.'.'.'.'.'. 

Alt)  housing  loans 

USG  loans  (military  crodits) ""Ill 

Loans  from  intornatwoal  lastrtiitUw  (IMF* 

and  IBRD) 

Thoraot    World  Bank '.'.'".'.'.'. 

Gorman  hians I." 

Othor  loans 


315 
60 
40 
50 

300 

45 

''^^ 

175 


310 

55 

40 

50  . 
255 

25 

(25) 
45 

200 


301 
59 
28 


231 
50 
18 


4.  Redemption  of  tong-  and  modium-tof m  loans. 

Israel  bonds 

USGkuns """ 

Export-Import  Bank  loins ."." 

Loons  from  initrnalioivil  institiilioiB  (IMF 
and  IBRD) 

Thereof   World  Bank. ...I." 

Otttor  toans 


420 


450 


336 


135 
60 
15 

10 


115 
59 
15 

43 

218 


117 
57 
12 

10 
(10) 
140 


292 

96 

34 

9 


iiS> 


258 

23 
(13) 

37 
297 


318 

4 

(4) 
38 

192 


5.  Investmonts  abroad  and  liquMation  of  invwl> 

monts 

6.  Increase  m  long-  and  medium-term  debt  <3-.^'4)' 

7.  Net  capital  importi  (l+2-t-5-(-6) 

I  De'Kit  on  cairenl  account  (including  terntorm) 
9.  Surplus  of  capital  imports  ovw  current  doActt' 

10.  Thereof  Net  clun,,  m  B^ik  oVlsr'aoi  rwirvii ' 

11.  Foreign  debt 

12.  Nat  Bank  of  Isrstj  resorvts  ai  end  oit  yoor 


45 

610 
1.640 
1.365 

-f275 

■fSTO" 


-15 

530 

1,670 
1.075 

+595 
-1-494 
3.960 
1.070 


53 

667 
1,514 
1.203 

-f-311 

-t-215 

3.430 

576 


43 

559 
1.243 
1.234 

4-9 

-(-23 

2.622 

361 


Note  (as  of  Ooc.  31,  1972):  Baswl  on  still  provisional  data  for  the  balance  on  current  account. 


UNCLASSIRED 

TABLf  6  — 8ALAKCE  Of  PAYMEMTS  FORECAST  FOR  1973 

IMtMwfls  o<  doMarsj 


19721 


National 

budget 

loraost 


19721 


budget 


A.  CUfMENT  ACCOUITT  (EXaUOING  OC(»PIEO 
TERRITORIES) 
Imports.  lB«il X222         3.780 


USG..  . 
(Exji 
(Pul 
(Mti 
(AlC 

Otfcor... 


mbonk) 

PuMk  Lio  480) 

MitarycrediO 

10  kousing  guaranty).. 


0*MredOfflptioii(-).. 


Goods 

(Staps  and  aiicnR} 

(DMOMarfs) 

*rr»» 

Detania   ..„ 

£j»orti.  leM .. 

Goedt 

(Agheumirtl) _ 

122-^ 

(Industrial) 

|otn«i 

S*Ti»Ma 

(Tow  am) 

0«*c«  on  goods  awl  Moncas 

Umlateril  transfers,  nil. , 


1. 895  2.  215 

(64)  (130) 

(3164  (37C) 

835  1,020 

m  545 


2.119 

1.0B2  ~ 

ii 

1.037 
(212) 

1.103 

1.055 


2.435 

1.215 
^170) 

160 

(1.045 

1455 

560 

1.220 

(210) 

1.345 


SIM*  tl  Israel  bonds 

«»urtd8«t* 

*«««  Gwwan, :; 

USG 

(Eiimboflli) 

<PuN.c  Law  480)        ....   """ 
CAIO,  OLE  and  military  cr«di()..l 

OtiMr 


CaprtH  imports,  iwt 

Balancing  monmunb.  or  accumulatioo  o( 


380 

450 

z\ 

(300) 

(W) 

175 

-4» 

-420 

-116 

-135 

-11 

-10 

-7 

-5 

•-125 

-75 

\-^] 
<-">/ 

(-15) 
(-60) 

-IM 


-US 


LIB        I.  MB 


665 


295 


'  N  B.  There  are  dilRcultws  in  comparing  1972  (Snal  figures 
»id>  ttio  1975  forecast,  due  to  definitional  problems  whicn  couM 
not  bo  fullT  resolved 

>  W  Itas  sum.  141.800.000  equivelOMt  was  repaid  in  local  cur- 
rency.  including.  SJO.OOO.OCO  equivalent  for  the  endowment  o« 
MM  UiMod  States- Israel  Bmational  Scmik*  Foundation 


I  transfers,  not.. 
I  (raastora. 
^raonal  rmtitulM«. . 
USSgrarMs 


B.  CAPtTAl  ACCOUNT 

F:reign  investment,  i 

Foreign  invostment,  groii. 
Israeli  : 

Long-  jnd 

Slate  of  ivael  bond* 


392 

310 
292 
66 


130 


350 

245 

250 

SO 


135 


Sourco     Bank 
Budget  fer  1)73 


of   Israel.    "Annual    Report: 
Amombatsy  Tel  A»iv 


1972.   National 


141 
II 


(+■)..         1.007 


180 
45 


1.030 


•est  Garmaoy la 


300 

U 


315 
45 
45 


Mr.  HELMS  Also.  Mr.  President,  I  ask 
unanimous  consent  that  the  text  of  Sen- 
ate Resolution  192,  submitted  earUer  by 
me  and  Senators  McCiuu,  Whliam  L. 
Scott,  and  Tinj»i«o.«n),  be  printed  In 
the  RxcoRD  at  this  point  to  emphasize 
my  conviction  that  there  must  \x  con- 
cessions on  both  sides  of  this  dispute. 

There  being  no  objection,  the  resolu- 
tion iS  Res.  192)  was  ordered  to  be 
printed  tn  the  Rxcoro.  as  foUowi: 


SDfATX    RCSOLtTTION     \9i 

WhervM.  the  negotiated  c«ase-flre  In  th© 
Middle  East  is  a  welcome  development  be- 
cauoe  mUltairy  connict  endan^rs  the  po- 
litical and  economic  structure  of  the  entire 
region:  and 

Whereaa.  any  permament  settlement  miiit 
fftiartmtee  the  political  •overelgnty.  territorial 
Integrity  and  eoonomlc  vlAbUlty  of  larael; 
and 

Whereas,  the  unreeoUed  problems  of  Pal- 
eetlnUm  refugMa  and  the  unselUed  terrl- 
torUl  oontroT«rml««  wUl  continue  to  increaa* 
rather  than  to  reduo*  tenalona  in  the  arva; 
and 

Whereaa.  arm*  shipments  by  the  auper- 
powers  to  both  sldea  can  lead  only  to  a  re- 
newal of  mUlt*ry  confrontation*  and  to  the 
potenual  of  aubaequent  InTolvement  by  the 
iuper-pow»rs:  and 

Wbereas.  the  economic  prosperity  and  fu- 
ture development  of  all  luktlons  of  this  re- 
gion and  of  all  nation*  which  are  dependent 
upon  8t»bUlty  in  the  dUtrlbutlon  of  world 
energy  reeourcea  can  be  jeopardized  by  the 
Increase  of  Soviet  influence*  In  the  area;  and 
Whereas,  the  recent  tragic  events  demon- 
strated the  necessity  for  a  permanent  bal- 
anced political  aolutloo  rather  than  the 
maintenance  of  balanced  mUltau7  forces; 
Now   therefore   be   It 

Resolved.  That  it  Is  the  sense  of  the  V£. 
Senate  that  the  President  should  continue 
bis  mediation  between  the  opposing  partlee 
of  the  area  to  bring  about  a  long-term, 
lasting  pe.ic«  setuement  Such  a  pe*oe 
ahould  consider  all  the  pollUcal  and  eoo- 
nomlc realities  of  the  region,  including  the 
territorial  integrity  at  aU  states  Involved, 
the  need  of  Israel  for  protective  buffer  tonee, 
the  Arab  aspiration  for  th*  return  of  their 
territories,  and  the  long-term  development 
of  a  sound  eoonomlc  base  for  the  elimination 


; 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42785 


of  social  and  political  problems.  In  this 
spirit,  the  settlement  should  Include 

(1)  Re-establLshment  of  the  civilian  ad- 
mlnlstraUon  of  the  Sloal  Desert  and  Golan 
Height  areas  and  the  weet  bank  of  the 
Jordan  River  under  Egypt.  Syria,  and  Jor- 
dan, respectively: 

(3)  Establishment  of  broad  demilitarized 
zones  on  the  borders  between  Israel  and  its 
neighbors; 

(3)  Achievement  of  a  Just  settlement  of 
the  Palestinian  refugee  problem; 

(4)  The  cooperation  of  major  free  market 
countries  and  the  Arab  world  In  a  long-range 
program  of  technical  and  Industrial  Invest- 
ment and  development,  with  special  empha- 
sis upon  the  creation  of  Job  opportunities 
for  Palestinian  refugees; 

(6)  The  negotiation  and  signing  of  a  per- 
manent peace  treaty  within  six  months  after 
the  cease-flre. 

Mr.  HELMS  Now,  Mr.  President,  it 
has  been  said  that  Israel  has  one  of  the 
highest  per  capita  national  debts  in  the 
world.  It  certainly  does  have  a  high 
debt,  but  it  does  not  have  the  highest 
debt. 

According  to  the  State  Department, 
the  Israeli  forei(?n  debt  is  about  $4.2 
billion,  with  annual  repayments  amount- 
ing to  about  $690  million  annually.  With 
an  estimated  1973  Israeli  population  of 
3.2  million,  that  works  out  to  a  debt  of 
$1,312.50  per  person. 

The  U.S.  national  debt  Is  presently 
$463  billion.  With  a  population  of  200 
million,  that  works  out  to  a  debt  of 
$2,315  per  person. 

In  other  words,  the  U.S.  per  capita 
debt  is  almost  twice  the  Israeli  per  capita 
debt.  We  are  being  asked  to  make  grants 
which  will  increase  our  own  debt  by  $2.2 
billion  on  the  groimds  that  Israel  cannot 
afford  any  more  debt  of  her  own.  Yet 
proportionally,  our  own  debt  is  twice  as 
heavy  a  burden. 

I  think  that  the  proponents  of  the 
$2.2  billion  as  a  gift  are  underestimating 
the  decision,  sacrifice,  and  patriotism 
of  the  Israeli  people.  It  was  their  siu-- 
vlval  that  was  at  stake;  and  I  am  sure 
that  they  will  not  object  to  whatever 
cost  was  neces-sary.  The  fact  that  we 
shipped  the  arms  at  the  critical  moment 
provided  the  difference  in  the  turn  of 
the  battle.  That  in  itself  demonstrates 
our  esteem  and  our  willingness  to  help 
when  necessary.  But  there  is  no  reason 
to  ask  that  the  United  States  bear  the 
long-term  burden  of  the  cost  when  our 
own  balance  of  payments  Is  so  precari- 
ous and  Inflation  continues  to  rob  the 
dollar  of  Its  value. 

Let  me  repeat.  Mr.  President,  a  little 
recitation  that  I  have  often  made  on  this 
floor. 

The  American  people  ask  about  Infla- 
tion; they  talk  about  It:  they  want  some- 
thing done  about  It.  And  yet  this  Congress 
sits  here  and  year  after  .vear  appropriates 
more  money  than  is  to  be  taken  in. 

The  Federal  debt  of  the  United  States 
of  America  is  In  the  nelghbortiood  of 
$463  billion,  which  is  a  rather  expensive 
neighborhood  when  one  considers  that 
It  costs  $52,000  a  minute  to  pay  the  in- 
terest alone  on  the  money  already  bor- 
rowed and  spent  by  this  Oovemment  in 
excess  of  receipts. 

If  you  want  to  break  that  down  farther, 
every  time  the  clock  ticks,  there  is  an- 
other nearly  $900  in  intereet  that  the 


American   taxpayers  must   pay   on   the 
debt  we  already  owe. 

So  that  is  the  purpose  of  this  amend- 
ment. I  think  we  must  look  at  it  in  per- 
spective, and  I  urge  the  Senate  to  approve 
this  amendment. 

Mr.  HUMPHREY.  Mr.  President,  a  very 
brief  comment.  First  of  all,  the  present 
MUitary  Sales  Act  does  not  impose  the 
same  kind  of  restrictions  or  requirements 
as  proposed  in  the  amendment  of  the 
Senator  from  North  Carolina.  The  pres- 
ent Military  Sales  Act  leaves  the  matter 
of  interest  up  for  negotiation  on  the  part 
of  the  Government  of  the  United  States. 

Second,  the  bill  before  us,  HR.  11088, 
is  not  a  grant  bill.  What  it  says  is, 

.  .  there  are  hereby  authorized  to  be 
appropriated  to  the  President  not  to  exceed 
Ba.2(X).0(X).0(X)  for  emergency  military  assist- 
ance or  foreign  military  sales  credits,  or  for 
both  as  the  President  may  determine,  for 
Israel,  of  which  sum  amounts  In  excess  of 
$l,5(X).(X)0,000  may  be  used  pursuant  to  this 
section  .  .  . 

I  hope  that  this  amendment  will  be 
rejected,  primarily  because  I  believe  this 
legislation  to  be  necessary  and  timely 
in  light  of  the  upcoming  CJeneva  Confer- 
ence on  the  Middle  East.  The  amend- 
ment would  delay  passage. 

Mr.  ABOUREZK.  Mr.  President,  will 
the  Senator  from  Minnesota  yield,  be- 
fore he  moves  to  table? 
Mr.  HUMPHREY.  I  yield. 
Mr.  ABOUREZK.  I  wonder  whether  I 
am  correct  in  assuming  that  the  appro- 
priations bill  already  passed  before  the 
authorization  bill  includes  a  maximum 
of  $1.5  billion  in  grants  rather  than  in 
credits? 

Mr.  HUMPHREY.  That  is  the  most 
that  could  be  utilized  for  grants  out  of 
the  total  of  $2.2  billion. 

Mr.  ABOUREZK.  Does  the  Senator 
know  whether  the  administration  has 
said  how  much  will  be  given  in  grants? 
Mr.  HUMPHREY.  No,  sir,  it  has  not 
been  stated.  May  I  say  to  the  Senator 
from  South  Dakota  that  when  we  pro- 
posed the  amendment  of  $1.5  billion,  we 
did  so  after  coUoquj-  with  the  distin- 
guished Senator  from  Hawaii  (Mr. 
INOUYE),  so  that  we  could  get  in  detail 
from  the  administration  as  to  what  It 
had  in  mind  in  terms  of  grants  or  loans. 
It  seems  to  me  that  we  should  get  as 
much  in  loans  as  possible,  that  the  grant 
program  should  be  used  as  sparingly  as 
possible.  But  we  should  face  the  fact  that 
there  is  a  limit  to  what  a  country  can 

carry 

Mr.  HELMS.  Including  our  own. 
Mr.  HUMPHREY.  Including  ourselves. 
I  am  not  unaware  of  that  If  I  did  not 
feel  that  our  assistance  to  the  State  of 
Israel  was  in  our  national  intereet,  I 
would  not  be  up  here  trjing  to  ask  for 
votes  for  this  bill. 
Mr.  HELMS  That  is  not  the  issue 
Mr.  HUMPHREY.  I  am  sure  we  would 
agree  on  that  Tha  question  here  is  on 
the  Interest  rate.  I  should  say  to  the 
Senator  once  again  that  his  amendment 
goes  further  than  the  present  Military 
Sales  Act.  Presently,  by  the  way,  we  give 
grants  and  military  assistance  to  the 
neighboring  country  of  Jordan. 

Mr,  (X)LDWATER.  If  the  Senator  will 
yield,  I  am  glad  v.he  Senator  brought 
that  out,  I  waiuta  to  rise  to  stale  that  a 


lot  of  this  interest  we  are  discussing  here 
has  come  from  the  American  people  who 
are  beginning  to  see  that  there  are  two 
sides  to  the  question.  I  wanted  to  add 
that  we  are  constructing  military  build- 
ings in  Saudi.  We  have  Instructed  Libyan 
pilots  at  Williams  Air  Force  Base  in  Ari- 
zona. In  any  case,  we  will  find  that  we 
have  sold  equipment  to  any  coui:Lrj", 
whether  Arab  or  any  other  country,  and 
that  their  ofiBcers  and  men  are  in  this 
country  studying  the  operation  of 
weapons. 

So,  for  those  people  who  say  we  are 
aiding  only  Israel.  I  have  to  say  that  we 
are  aiding  both  sides,  even  though  this 
has  never  been  revealed  m  the  press,  that 
I  know  of— not  that  I  am  especially  sur- 
prised, because  the  press  only  prints  w  hat 
it  wants  to  print — but  it  Is  an  interesting 
revelation  to  learn  that  our  Army  Engi- 
neers have  been  in  Saudi,  and  are  in 
Saudi,  and  we  have  been  helping  both 
sides  of  the  fence — which  is  not  unusual 
for  the  United  States. 

Mr.  JAVITS.  Mr.  President,  if  the  Sen- 
ator will  yield,  I  would  not  dream  of  In- 
terposing here  except  just  to  supply  a 
fact,  which  is  important.  I  think  the 
amendments  Important  which  have  been 
proposed.  This  particular  amendment 
which  has  been  propc^ed  :s  made  in  the 
utmost  good  faith,  to  bring  attention  to 
the  saferaa.-ds  which  our  country  re- 
quires. But  I  would  like  to  point  out  to 
my  colleagues  that  Israel  now  owes  the 
United  States  over  $2^^  billion.  Inciden- 
tally, Senators,  It  is  in  the  same  tables 

I  have  put  it  In  the  Record  before 

which  shows  that  loans  to  Israel  are  $2.5 
billion  already  and  the  grants  have  been 
$522  million.  I  do  not  use  that  word 
"only"  in  any  sense  of  saying  that  that 
is  little  money,  because  It  is  a  lot  of 
money. 

What  Is  breaking  the  back  of  Israel. 
apparenUy,  Is  the  carrying  charges, 
which  the  Senator  from  Minnesota  ( Mr. 
Humphrey)  says  has  come  to  about  $900 
million  a  year.  That  is  on  the  aggregate 
export,  which  is  not  more  than  3  or  4 
times  that,  if  that.  So  if  we  took  every- 
thing they  got.  Including  contributions, 
which  are  extensive,  the  whole  thing 
would  come  to  about  $4  billion.  So  that 
they  are  paying  one-quarter  in  carrying 
charges. 

The  only  thing  I  say  is,  we  have  vested 
the  administration  with  the  authority. 
The  fact  that  the  Senator  from  Minne- 
sota (Mr.  Humphrey)  got  the  appropri- 
ations bill  to  say  that  up  to  $1.5  billion 
could  be  in  credits  Is  no  assurance  that 
it  will  be,  or  should  be.  I  am  saying  that. 
I  am  saying  that,  without  waiting  for 
anyone  else  to  say  it.  I  am  very  serious 
about  that. 

Both  Senator  Hukphrey  and  I  pledge 
to  you  the  oversight  of  the  Committee  on 
Foreign  Relations  with  the  greatest  de- 
votion to  the  fact  that  the  maximum 
should  be  in  loans.  I  thoroughly  agree 
with  that  point. 

So  Israel  may  be  broke  now  In  terms 
of  a  balance  sheet,  but  they  are  a  pro- 
ductive people  and  tomorrow  they  may 
do  \-ery  well  indeed.  So,  short  of  abso- 
lutely destroying  them,  credit-wise,  in 
the  world,  so  that  no  one  will  trust  them 
with  even  a  bUl  for  freight,  it  is  right 


42786 


CO  N  t .  K  LSSIONAL  RECORD  —  SENATE 


December  20,  197S 


thaX  we  should  maice  the  most  hard- 
headed  arrangements  upon  this  side — 
upon  these  amounts  which  are  justified 
by  the  overall  financial  condition.  I  will 
lend  myself  to  that  myself. 

Mr.  HELMS.  Mr.  President.  I  ask  for 
the  yeas  and  nays. 
The  yeas  and  nays  were  ordered. 
Mr.  JAVITS.  I  think  we  are  going  to 
move  to  table  the  amendment. 

Mr.  HUMPHREY.  Yes,  It  Is  my  Inten- 
tion to  move  to  table  the  amendment.  I 
might  add.  I  do  not  want  to  cut  off  debate 
before  the  Senator  from  South  Dakota 

speaks 

Mr.  ABOUREZK.  I  have  a  couple  more 
questions  to  ask  the  Senator  from  Min- 
nesota. He  made  the  comment  that  the 
$2.2  billion  was  needed  in  order  to  assure 
some  kind  of  peaceful  settlement  at  the 
peace  conference  in  GenevtL  I  do  not 
think  there  is  any  question  that  the 
amoimt  of  arms  used  in  Israel  during  the 
October  war  was  about  $1  billion;  is  that 
not  correct? 

Mr.  HUMPHREY.  About  $1  billion. 
The  Senator  is  correct. 

Mr.  ABOUHEZK.  The  appropriations 
bill  provides  $2.2  billion'' 

Mr.  JAVTTS  May  I  make  a  correction 
there,  if  the  Senator  will  yield?  What 
happened  was  that  they  burned  up  what 
they  had.  Not  everything  go  used  up 
Mr.  ABOUREZK.  About  $1  billion? 
Mr.  JAVrrs.  No,  not^ulte  that.  They 
burned  up  what  they  had.  They  were  run- 
ning out  of  ammunition.  We  then  sup- 
plied $1  billion.  It  Is  not  that  they  used 
up  $1  billion.  We  had  to  supply  $1  billion 
to  keep  them  fighting.  They  burned  up.  a 
great  part  of  that.  Now  they  need,  say — 
they  asked  for  $3  billion  in  the  aggregate 
with  credits,  and  $1  billion  were  sent 
over  there  In  the  terrible  emergency.  We 
are  giving  them  $2.2  billion.  Our  au- 
thorities say  that  they  need  $15  billion 
In  addition  to  the  $1  billion  they  have 
already  received.  Congress  has  cut  that 
by  $300  million. 

Mr.  ABOUREZK.  Which  authorities 
said  they  needed  $15  billion  more?  I 
understood  the  sulmlnlstratlon  witnesses 
to  say  that  they  could  not  justify,  on 
any  specific  grounds,  the  additional  $1.5 
billion  over  and  above  the  $1  billion  that 
was  used. 

Mr  JAVTTS.  Clements  and  Rush  testi- 
fied before  the  Committee  on  Foreign 
Relations,  and  their  testimony  is  here. 
Mr.  HUMPHREY.  Yes.  it  is  here. 
Mr.  JAVITS.  It  Is  on  the  desk  of  each 
Senator  They  testified  that  that  was 
their  estimate.  They  had  looked  into  the 
matter  because  the  request  was  $3  bil- 
lion, and  we  are  providing  $2.2  billion. 

The  point  I  wish  to  make  is  to  be  sure 
that  we  understand  exactly  what  hap- 
pened. The  Senator  is  at  liberty  to  chal- 
lenge every  figure  and  every  conclusion. 
But  what  happened  was  that  they  were 
running  short  of  ammunition.  It  was  al- 
most like  Port  Sam  Houston.  They  were 
already  up  against  it.  because  they  ap- 
parent^ used  that  ammunition  the  day 
we  dellVeM4k4^;It  was  taken  from  the 
plane  to  the  figHTlBg  line 

The  point  Is  that,  having  burned  up 
practically  everything  they  had,  they  got 
|1  billion,  and  they  burned  a  lot  of  that 


up  because  they  threw  It  right  Into  the 
fight. 

Now  we  end  up  with  our  vote  of  15  to 
2  In  the  Foreign  Relations  Committee 
that  we  think  It  is  necessary  to  put  them 
In  a  position  in  which  they  are  not  vul- 
nerable to  hostilities  being  renewed 

So  that,  first,  it  is  a  talking  point, 
because  it  Is  a  little  nation;  and.  second, 
it  is  to  prevent  the  people  who  are 
against  them  from  feeling  that  they  are 
a  target,  that  tliey  are  suckers  for  an- 
other attack. 

We  all  respect  Senator  Putbricht's 
argiunent.  Senator  McClurs's  argument, 
and  the  argument  of  the  Senator  from 
South  Dakota  that  it  would  be  better 
if  we  did  not  give  it  to  them,  that  it 
would  be  more  conducive  to  peace.  We 
wrestled  with  that  and  fought  it  out  in 
the  Committee  on  Foreign  Relations. 

Mr.  ABOUREZK.  I  would  Uke  to  get 
Into  that.  I  ask  the  Senator  from  New- 
York  whether  it  is  not  true  that  General 
Dayan.  when  he  was  in  this  country*, 
said  that  Israel  Is  stronger  than  It  has 
ever  been  as  a  result  of  our  resupply 
effort. 

Mr  JAVTTS  General  Dayan  did  not 
say  that  In  reference  to  the  Arabs.  He 
was  making  a  rhetorical  speech  to  raise 
money  for  Israel.  Was  he  going  to  tell 
them  that  it  was  going  under? 

We  are  all  human  beings,  and  we  are 
relying  on  our  own  authorities,  who  give 
us  this  appraisal.  We  believe  that  If  they 
are  denied  this  figure,  they  will  be  put 
In  a  very  seriously  jeopardized  condi- 
tion In  this  negotiation.  It  is  the  old 
story:  We  are  stronger  than  ever.  Com- 
pared to  whom? 

As  to  the  Arab  armies,  we  only  think 
about  the  3d  Army,  sitting  on  the  east 
bank  of  the  Suez,  the  one  that  Is  sur- 
rounded. In  danger  of  being  surrounded. 
They  have  two  more  armies  north  of 
that,  which  are  not  surrounded,  and 
which  are  paxt  of  the  cease-fire;  and  the 
Israelis  have  armies  facing  those  and  an 
army  in  Egypt.  None  of  us  wants  that 
fire  to  start  all  over  again. 

Mr.  ABOUREZK   I  agree  with  that. 

I  also  wonder  why.  in  their  testlmonj-. 
the  administration  witnesses  who  ap- 
peared in  hearings  held  by  the  House 
Foreign  Affairs  Committee  and  the  Sen- 
ate Appropriations  Committee,  said  that 
the  additional  $12  billion  was  for  "im- 
ponderables." They  did  not  know  what 
it  was  to  be  used  for.  They  could  not 
Justify  It. 

Mr.  HUMPHREY.  One  of  the  Impon- 
derables is  that  we  Just  do  not  know  how 
much  the  Soviet  Union  has  poured  into 
the  Arab  coiintries  and  how  much  more 
it  continues  to  pour  In.  It  Is  Important 
that  the  Senator  note  that  In  the  testi- 
mony of  the  Deputy  Secretary  of  State. 
Mr.  Rush,  he  said: 

We  will  not  spend  fund*  that  are  n»>t 
needed,  and  we  will  not  spend  funds  to  tut 
the  balance  In  Israel's  favor  to  the  point 
where  you  have  an  lmbal&nc«  of  strength 

The  point  that  was  made  very  hon- 
estly—I  thought  the  administration  did 
not  try  to  give  us  a  lot  of  double  talk 
and  did  not  try  to  con  us — was  that 
there  was  $1  billion  for  now.  they  had 
to  have  it  right  away,  and  there  was  an- 


other $12  blUion  that  they  thought  was 
a  minimum  amoimt  In  light  of  what  had 
already  been  shipped  Into  the  Arab 
countries  by  the  Soviets,  plus  what  the 
Israelis  had  used  up  over  the  $1  billion 
In  the  wsu-. 

We  are  dealing  with  a  set  of  figures 
here  which  is  not  precise,  and  that  is 
why.  under  this  measure,  there  is  no 
requirement  that  the  President  spend 
it  all.  What  we  are  really  doing  is  giving 
to  the  Secretary  of  State,  in  the  Geneva 
Peace  Conference  on  the  Middle  Elast. 
some  chips,  to  say.  "You  are  not  going 
over  there  with  just  a  hope  and  a 
prayer.  You  tu-e  going  there  with  the  fact 
that  we  have  made  some  commitments, 
in  terms  of  military  assistance,  to  Israel, 
and  we  are  going  to  see  that  a  military 
balance  is  maintained  in  the  area."  The 
purpose  of  the  military  assistance  is 
peace  and  not  to  h-ive  another  war. 

Mr.  McGEE.  Mr.  President,  will  the 
Senator  yield? 

Mr.  HUMPHREY.  I  yield. 
Mr.  McGEE.  Very  relevant  to  the  point 
the  Senator  from  South  Dakota  has  just 
raised  is  that  because  there  are  many 
unknown  elements  here.  Congress  has  to 
watch  its  own  position.  I  sat  through 
ihose  hearings,  and  we  were  there  when 
all  the  dialog  wsis  going  on.  It  Is  no  more 
possible  to  assess  what  the  Russian  Input 
Is  with  the  Egyptians  than  it  is  possible 
to  assess  the  total  damage  suffered  by 
the  Israelis.  If  it  Is  discovered  later — I 
mean  next  month,  February — that  it  In- 
deed was  much  worse,  as  some  even  now 

suspect  it  is 

Mr.  ABOUREZK.  That  what  Is  worse? 

Mr.  McGEE.  The  military  losses— that 

Is,  the  materiel  losses.  In  that  case,  we 

would  be  right  back  here,  with  Congress 

preparing  to  add  some  money. 

Imagine  what  would  happen  In  the 
negotiating  tents  at  that  moment.  The 
Arabs  would  walk  out.  and  the  chances 
for  a  continuation  of  the  negotiations 
would  have  been  wrecked. 

From  the  very  first,  $2.2  billion  has 
been  the  "gruesstlmate."  It  is  no  secret. 
The  Arabs  know  it.  The  Israelis  know  It. 
The  whole  world  knows  it.  It  Is  simply  a 
matter  of  protecting  that  bargaining 
chip,  as  the  Senator  from  Minnesota  has 
said.  But  If  the  Senate  had  to  come 
through  6  weeks  from  now  with  still  more 
because  even  worse  was  discovered,  I 
would  think  then  that  even  if  the  negoti- 
ations had  been  proce€<llng  on  track.  It 
would  blow  them  out  of  the  tent.  That  is 
one  of  the  options. 

Nothing  is  being  risked  now.  in  this 
way,  tuid  we  still  keep  open  the  option 
of  cutting  It  back.  If  it  does  not  become 
necessary  to  commit  It. 

Mr.  ABOUREZK.  My  guess  Is  that 
there  will  not  be  any  outbreak  of  fighting 
while  these  peace  talks  are  going  on.  I  do 
not  know,  amd  the  Senator  from  Wyo- 
ming does  not  know.  That  is  my  best 
guess.  In  the  event  the  peace  talks  break 
down  and  If  a  resupply  effort  is  needed. 
Congress  can  consider  It  at  that  time. 
But.  In  my  opinion,  the  most  dangerous 
thing  for  Congress  to  do  at  this  point  Is 
to  upset  the  peace  talks  before  they  get 
underway,  by  giving  $2.2  billion  worth  of 
military  aid  to  Israel. 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


42787 


As  the  Senator  knows  the  attitude  of 
the  Arab  countries  is  that  wo  have  not 
been  even-handed  In  our  Middle  East 
foreign  policy  I  do  not  thir.k  the  Senauir 
can  dispute  tliat  That  fact  Infuriates  the 
Arabs.  K  we  arc  to  play  a  cotL'^trucilve 
rde  In  ending  ho.'^tl'ltles  and  bringing 
peace  to  the  Middle  Va^X.  It  sfems  to  me 
Inappropriate  lo  grant  the  request  for 
more  military  aid  for  Israel. 

Mr.  McGEE.  Mr.  President,  will  the 
Senator  yield? 

Mr.  HUMPHREY.  Let  me  yield  first  to 
the  majority  leader,  for  a  moment. 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  the  vote  on  final 
passage  occur  no  later  than  3  p.m.  and 
that,  of  the  time  period  in  between,  the 
distinguished  Senator  from  Virginia  (Mr. 
Habry  F.  Byrd,  Jr.)  be  recognized  for  not 
to  exceed  15  minutes. 

Mr.  ABOUREZK.  Mr.  President,  re- 
serving the  right  to  object,  I  ask  the  dis- 
tinguished majority  leader  why  he  wants 
to  cut  off  this  debate? 

Mr.  MANSFIELD.  I  do  not  want  to  cut 
off  the  debate.  The  manager  of  the  bill 
has  asked  me 

Mr.  HUMPHREY.  I  thought  that,  since 
we  had  repeated  the  arguments  about 
four  or  five  times,  perhaps  we  have  all 
learned  them  by  now. 

Mr.  MANSFIELD.  I  understood  that 
there  was  not  going  to  be  much  further 
debate  on  it. 

Mr.  ABOUREZK.  I  withdraw  my  ob- 
jection. 

Mr.  McGEE.  Mr.  President,  will  the 
Senator  yield  for  1  minute? 

Mr.  ABOUREZK.  I  have  another  ques- 
tion I  would  like  to  ask. 

The  PRESIDING  OFFICER.  The  Chair 
would  ask  the  distinguished  majority 
leader  If  he  Includes  In  his  request  that 
rule  Xn  be  waived  ? 

Mr.  MANSFIELD    Yes.  I  do. 

The  PRESIDING  OFFICER.  Is  there 
objection? 

Mr.  NELSON.  Mr.  President,  a  parlia- 
mentary Inquiry. 

The  PRESIDING  OFFICER.  The  Sen- 
ator will  state  It. 

Mr.  NELSON.  Is  the  manpower  con- 
ference report  coming  up  Immediately 
following  disposal  of  this  measure? 

Mr.  MANSFIELD.  Exactly. 

The  PRESIDING  OFFICER.  Is  there 
objection? 

Mr.  HELMS.  Mr.  President,  since  there 
Is  a  time  certain  on  tlie  passage,  this 
would  not  preclude  a  roUcall  vote,  would 
It? 

Mr.  HUMPHREY.  No.  that  has  been 
ordered. 

The  PRESIDING  OFFICER.  It  would 
not  preclude  a  vote. 

Mr.  JAVITS.  May  we  have  a  ruling? 

The  PRESIDING  OFFICER.  If  there 
Is  no  objection,  it  Is  so  ordered. 

Mr.  ABOUREZK.  That  is  aU  I  have  to 
say  at  this  time 

Mr.  HUMPHREY  Mr.  President,  I  ask 
unanimous  consent  to  have  printed  in  the 
Record  an  economic  fact  sheet  in  con- 
nection with  emergency  mllltanr-  assist- 
ance to  the  State  of  Israel. 

There  being  no  objection,  the  state- 
ment was  ordered  to  be  printed  in  the 
Record,  as  follows: 


EcoNomc  Pact  Shkct  fob  Ookwbbutioit  of 
Emxbgenct   MnnABT   Aasarruxc*  to   the 

Statb  of  Israxl 

The  Tom  Kippur  War  coet  Israel  approxi- 
mately »250  million  a  day.  Total  expenditure 
was  between  »5  and  $6  billion. 

Israe:,  a  country  of  three  million  people, 
spends  approximately  34  percent  of  Its  total 
budget  on  defense  or  20  percent  of  Its  total 
QNP. 

IsraeU  citizens  are  taxed  more  heftvlly  than 
citizens  of  any  other  nation.  Before  the  war, 
an  Israeli  earning  $5,000  a  year  paid  half  of 
this  sum  In  taxes.  A  $10,000  Income  was  taxed 
at  the  rate  of  63  percent.  Since  the  outbreak 
of  the  war  an  additional  forced  savings  tax 
has  been  Imposed  talcing  another  7  to  12  per- 
cent from  personal  income. 

The  pre-war  external  debt  of  I.-rrae:  was 
about  $4.5  billion — Israel  has  the  highest  per 
capita  external  debt  In  the  world. 

The  total  loss  in  ONP  for  Israel  from  Octo- 
ber to  December  of  this  year  wi;;  be  approxi- 
mately $476  million  The  loss  in  QN'P  for  1974 
Is  estimated  to  be  more  than  $900  million. 

Israeli  labor  force  is  still  mobilized  cutting 
this  fore©  by  one-third  TourLsm  ha*  been 
badly  damaged  by  'he  war  ar.d  Is  c?  7b'^c. 

Th©  Israeli  balance  of  payments  has  been 
injured  by  increased  expenditures  for  de- 
fense. The  deficit  will  be  about  $1.2  bUllon 
more  than  expected  because  of  defense  ex- 
penditures. 

Israel  repays  Its  external  debt  at  the  rate 
of  about  $800  million  per  year.  This  repre- 
sents roughly  half  of  the  nation's  foreign 
currency  reserves.  Servicing  this  debt  has 
meant  that  Israel  has  only  three  to  four 
months  of  foreign  currency  reserves  which 
are  badly  needed  for  purchasing  food,  oU  and 
other  ImpMDrted  commodities. 

In  1973  Israel  will  have  absorbed  65,000  to 
80.000  immigrants — the  majority  from  the 
USSR.  It  costs  Israel  about  $40,000  per  fam- 
ily for  immigrant  absorption.  Total  coet  for 
15  to  20,000  new  families  could  range  from 
$600  million  to  $800  million.  Sale  from  bonds 
net  is  only  about  $100  million  to  $120  mUUon. 
Israelis  have  sold  about  $2.5  billion  In  bonds 
and  have  repaid  .Tiore  than  $1  billion. 

Between  1946  and  1973  according  to  AID 
the  U.S.  provided  grant  military  assistance 
totaling  approximately  $55  bUllon.  None  of 
this  grant  military  assistance  went  to  Israel. 
In  fact,  during  this  same  period  we  provided 
Arab  statee  with  approximately  $321  million 
In  grant  assistance.  Grant  economic  assist- 
ance to  Arab  states  has  exceeded  slmUar  as- 
sistance to  IsraeL 

Mr.  HUMPHREY.  Mr.  President,  I 
move  to  table  the  amendment  of  the 
Senator  from  North  Carolina. 

Mr.  HELMS.  I  ask  for  the  yeas  and 
nays. 

The  yeas  and  nays  were  ordered. 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  motion  to  lay 
on  the  table  the  amendment  of  the 
Senator  from  North  Carolina.  The  yeas 
and  nays  have  been  ordered,  and  the 
clerk  win  call  the  roll. 

The  second  assistant  legislative  clerk 
called  the  roll. 

Mr.  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Nevada  (Mr. 
Cannon),  the  Senator  from  Idaho  (Mr. 
Church),  the  Senator  from  Mississippi 
(Mr.  Eastland^  .  the  Senator  from  North 
Carolina  (Mr.  Ervin).  the  Senator  from 
Alaska  (Mr.  Gravel),  the  Senator  from 
South  Carolina  (Mr.  Hollings),  the 
Senator  from  Utah  (Mr.  Moss),  and  the 
Senator  from  Georgia  (Mr.  Talmadce) 
are  necessarily  absent. 

Mr.  GRIFFIN.  I  annoimce  that  the 


Senator  from  New  Hampshire  (Mr. 
Cotton)  Is  absent  because  of  Illness  In 
his  family. 

The  Senator  from  Vermont  (Mr. 
Aiken)  ,  the  Senator  from  Oklahoma 
<Mr.  Bellmon).  the  Senator  from  Utah 
•  Mr.  Bennett),  the  Senator  from  Ten- 
nessee (Mr.  Brock),  the  Senator  from 
Massachusetts  (Mr.  Brooke),  the  Sen- 
ator from  New  York  (Mr.  Buckley)  ,  the 
Senator  from  Hawaii  'Mr.  Fong),  the 
Senator  from  Idaho  (Mr.  McClure),  the 
Senator  from  Kansas  (Mr.  Pearson)  ,  the 
Senator  from  Elinols  (Mr.  Percy),  the 
Senator  from  Delaware  iMr.  Roth)  the 
Senators  from  Ohio  (Mr.  Saxbe  and  Mr. 
Taft),  the  Senator  from  Texas  (Mr. 
Tower),  and  the  Senator  from  Connec- 
ticut (Mr.  Weicker)  are  necessarily 
absent. 

The  Senator  from  Alaska  (Mr.  Stev- 
ens)  Is  detained  on  oflQcial  business. 

If  present  and  voting,  the  Senator 
from  Illinois  (Mr.  Percy),  the  Senator 
from  Alaska  (Mr.  Stevens)  ,  the  Senator 
from  Texas  (Mr.  Towxr)  ,  and  the  Sen- 
ator from  Connecticut  (Mr.  Weicker) 
would  each  vote  "yea." 

The  result  was  announced — yeas  81. 
nays  14,  as  follows: 


(No.  610  Leg.] 

TEAS— 61 

Allen 

Gumey 

Muskle 

Baker 

Hart 

Nelson 

Bartlett 

Hartke 

Nunn 

Bayh 

Haskell 

Pack  wood 

Beall 

Hathaway 

Pastore 

Bentsen 

Huddleston 

Pell 

Bible 

Hughes 

Proxmlre 

Blden 

Humphrey 

Randolph 

Byrd, 

Inouye 

Rlbicoff 

Harry  P., 

Jr.    Jackson 

Scbweiker 

Byrd,  Robert  C.  JavlU 

Scott,  Hugh 

Case 

Johnston 

Sparkman 

Chiles 

Kennedy 

Stafford 

CTarK 

Long 

Stennls 

Ck>olc 

Ma^^uBon 

Stevenson 

Cranston 

Mathlas 

Symington 

Dole 

McGee 

Thurmond 

Domenlcl 

McOovem 

Tunney 

Domlnlck 

Mclntyre 

WUllams 

Eagleton 

Mondale 

Young 

Qrlffln 

Montoya 
NAYS— 14 

Abourezk 

Goldwater 

Mansfield 

Bvirdlclt 

Hansen 

McClellan 

Curtis 

Hatfield 

Metcalf 

Pannin 

nolmn 

Scott, 

Fulbrlght 

Hruska 

William  L 

NOT  VOTINO— 26 

Aiken 

Eastland 

Roth 

Bellmon 

Ervln 

S&xbe 

Bennett 

Pong 

Stevens 

Brock 

Gravel 

Taft 

Brooke 

Hollings 

Talmadge 

Buckley 

McCl\ire 

Tower 

Cannon 

Moss 

Weicker 

Church 

Pearson 

Cotton 

Percy 

So  Mr.  HrMPHREYs  motion  to  lay  on 
the  table  Mr.  Helms  amendment  was 
agreed  to. 

Mr.  BURDICK.  Mr.  President,  at  this 
time  I  cannot  support  this  authorization 
for  $2  2  bir.ion  in  aid  to  Israel.  It  is  my 
understanding  that  numerous  attempts 
have  been  made  to  find  out  what  the  $1 .2 
billion  for  '■L'r.ponderables"  wou^d  ac- 
tually be  'O-sed  for,  No  adequate  :ustifica- 
tions  have  been  forthcoming.  In  as  much 
as  these  funds  have  not  been  JustlQed.  I 
cannot  support  this  kind  of  "blank 
check"  authorization. 

The  administration  has  Itemiied  ex- 
penditures of  (1  billion  of  this  request 


CONGRESSIONAL  RECORD  —  SENATE 


to  restore  a  military  balance  of  power  In 
the  Mideast.  I  have  no  quarrel  with  that 
expendlttire.  If  additional  equipment  Is 
seen  to  be  required  later,  those  supplies 
can  be  provided  in  the  same  way  as  pre- 
vious aid.  through  the  Foreign  Military 
Sales  Act.  Congress  would  then  have  120 
days  to  consider  this  and  approve  addi- 
tional loans  and  grants. 

Mr.  HUMPHREY.  Mr.  President,  may 
we  have  third  reading? 

The  PRESIDING  OFFICER  (Mr. 
DoMnaci).  The  bill  is  open  to  fiurther 
amendment. 

If  there  be  no  further  amendment 
to  be  offered,  the  question  is  on  the  third 
reading  of  the  bill. 

The  bill  was  ordered  to  a  third  reading, 
and  was  read  the  third  time. 

Mr.  FUI3RIGHT  Mr.  President,  I 
merely  want  to  say  a  word  or  two  In 
conclusion. 

Paraphrasing  the  words  of  our  new 
Attorney  General,  the  Senator  from  Ohio 
(Mr,  Saxbe>.  I  do  believe  that  the  Sen- 
ate has  taken  leave  of  its  senses. 

The  threatening  recession  and  the 
serious  disruption  of  our  economy  are 
the  price  we  are  begirming  to  pay  for  15 
years  of  making  extreme  and  unwise  pol- 
icies both  foreign  and  domestic. 

Our  tragic  intervention  in  Vietnam. 
our  costly  intervention  in  the  Dominican 
Republic,  our  unwise  policy  of  enormous 
expenditure  of  funds  for  foreign  military 
bases,  our  unwise  expenditure  of  huge 
amounts  of  money  to  go  to  the  Moon, 
the  huge  outlay  for  the  now  abandoned 
ABM  and  the  extravagant  fantasv  of  the 
8ST— these  are  but  a  few  examples  of 
the  fact  that  we  have  become  strangers 
to  our  own  commonsense. 

In  the  light  of  all  of  our  problems,  now 
to  vote  $2  2  billion  for  weapons  of  war 
on  the  pretense  that  this  Is  the  way  to 
promote  peace  in  the  Middle  East  is  to 
me  the  ultimate  In  irrationality 

Mr.  HARRY  P  BYRD.  JR  Mr  Presi- 
dent, this  legislation  which  provides 
emergency  assistance  to  Lsrael  Is  one  to 
which  I  have  given  a  great  deal  of 
thought.  The  amount  Involved  Is  sub- 
stantial. 

I  have  concluded  that  I  shall  vote  for 
this  authorization  because  the  situation 
In  the  Middle  East  la  so  delicate  and  so 
dangerous  that  I  am  reluctant  to  deny 
the  President  and  the  Secretary  of  State 
a  tool  which  seems  necessary  to  bring- 
ing about  a  settlement 

As  deeply  concerned  as  I  am  about  our 
Nation's  financial  situation.  I  am  even 
more  concerned  over  a  possible  explosion 
in  the  Midd]e  East  The  Rus.<;lans  have 
heavily  armed  the  Arabs  A  balance  can 
be  maintained  only  if  the  United  States 
provides  some  assistance  to  Lsrael 

In  voting  for  this  authorization  today 
however.  I  want  to  make  It  clear  that 
such  a  vote  should  not  be  construed  as  a 
precedent  for  supporting  additional 
grants. 

I  believe  it  Is  imperative  that  the 
United  States  proceed  with  maximum 
caution  in  the  Middle  East. 

As  time  goes  by.  both  sides  in  the  Mid- 
dle East.  It  seems  to  me.  must  be  wUUng 
to  yield  on  some  points.  Continued  In- 
transigence can  only  mean  continued 
tension— and.  probably,  further  blood- 
fched 


With  the  situation  in  the  Middle  East 
being  as  delicate  as  it  U  at  the  moment. 
I  feel  that  the  best  interest  of  our  coun- 
try would  be  served  by  the  enactment  of 
this  authorizing  legislation. 

Mr.  HARRY  F.  BYRD,  JR.  Mr  Presi- 
dent. I  yield  the  floor. 

Mr.  HUMPHREY.  Mr.  President,  the 
order  is  that  the  Senate  vote  on  the 
bill  at  the  conclusion  of  the  Senator's 
speech. 

The  PRESIDING  OFFICER.  The  bUl 
having  been  read  the  third  time,  the 
question  Ls.  Shall  the  bill  pass? 

On  this  question  the  yeas  and  nays 
have  been  ordered,  and  the  clerk  will 
call  the  roll. 

The  second  assistant  legislative  clerk 
called  the  roll. 

Mr.  MANSFIELD.  On  this  vote  I  have 
a  pair  with  the  Senator  from  Nevada 
'Mr.  Cannon ).  If  he  were  present  and 
voting,  he  would  vote  "yea."  If  I  were 
at  liberty  to  vote.  I  would  vote  "nay  " 
Therefore.  I  withhold  my  vote. 

Mr.  ROBERT  C.  BYRD.  I  announce 
that  the  Senator  from  Nevada  (Mr.  Can- 
non), the  Senator  from  Idaho  (Mr. 
Chtrchi,  the  Senator  from  Mississippi 
(Mr.  Eastland)  .  the  Senator  from  North 
Carolina  iMr.  Ervin).  the  Senator  from 
Alaska  (Mr.  Gravel),  the  Senator  from 
South  Carolina  (Mr.  Hollincs)  .  the  Sen- 
ator from  Utah  (Mr.  Mossi  and  the 
Senator  from  Georgia  (Mr.  Talicadgi) 
are  necessarily  absent. 

Mr.  GRIFFIN  I  announce  that  the 
Senator  from  New  Hampshire  (Mr 
Cotton*  Is  absent  because  of  illness  In 
his  family. 

JTTie  Senator  from  Vermont  (Mr. 
AnatN).  the  Senator  from  Oklahoma 
(Mr.  Bkllmon)  .  the  Senator  from  Utah 
(Mr.  BKNNrrr).  the  Senator  from  Ten- 
nessee (Mr.  Brock),  the  Senator  from 
Massachusetts  (Mr.  Brooki),  the  Sen- 
ator from  New  York  (Mr  Bucklbt)  the 
Senator  from  HawaU  (Mr.  Fono).  the 
Senator  from  Idaho  (Mr.  McClurx)'  the 
Senator  from  Kansas  (Mr.  Pearson)"  the 
Senator  from  Illinois  (Mr.  Percy)  the 
Senator  from  Delaware  (Mr.  Roth)'  the 
Senators  from  Ohio  (Mr.  Saxbe  and  Mr. 
Tatt).  the  Senator  from  Texas  (Mr 
Tower)  .  and  the  Senator  from  Connecti- 
cut (Mr  Weicker)  are  necessarily 
absent. 

If  present  and  voting,  the  Senator  from 
HawaU  (Mr.  Pong),  the  Senator  from 
nilnols  (Mr  Percy),  the  Senator  from 
Ohio  (Mr  Tatt)  .  the  Senator  from  Texas 
(Mr.  Tower  ).  and  the  Senator  from 
Connecticut  (Mr.  Weicker)  would  each 
vote  "yea." 

The  result  was  announced — yeas  66 
nays  9.  as  follows: 


December  20,  1978 


Nuxm 
Packwood 
Pastore 
PeU 

Proxmlre 
Randolph 
Rlblcx>ff 


Abourezk 
Burdlck 
Curt  la 
Fannin 


SchweUcer 
Soott.  Hugh 
Sparknum 
Stafford 

Stennls 
Steveuj 
Stevenaon 

NAYS— 9 

P\il  bright 
Hansen 
Hatfield 
Helms 


Symington 

Thurmond 

Tunney 

WUlUms 

Young 


Scott, 

WUilam  L. 


PRESENT  AND  OIVINO  A  LIVE  PAIR    AS 
PREVIOUSLY  RECORDED— I       ' 
Man«fleld.  against. 


Aiken 

Bellmon 

Bennett 

Brock 

Brooke 

Buckley 

Cannon 

Church 


NOT  VOTING— 24 
Cotton  Pearson 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42789 


Eastland 

Ervln 

Pong 

Gravel 

HoUlngs 

McClure 

Moss 


Percy 

Rotb 

Saxbe 

Taft 

Talmadge 

Tower 

Weicker 


So  the  bUl  (H.R.  11088)  was  passed 

Mr.  HUMPHREY.  Mr.  President'  I 
move  to  reconsider  the  vote  by  which 
the  bill  was  passed. 

Mr.  JAVrrs.  I  move  to  lay  that  motion 
on  the  table. 

The  motion  to  lay  on  the  table  was 
agreed  to. 


MESSAGE  FROM  THE  HOUSE 


Allen 

Baker 

BarUett 

Bayh 

B>all 

Bentaen 

B'ble 

Blden 

Byrd. 

Harry  P.  Jr 
Byrd.  Robert  C 
Case 
Cbllea 
Clark 
Cook 
Cranston 


[No    611  Leg.) 

YEAS — 66 
Dole 

Dom^nlcl 
Dominlck 
Eagleton 
Ooldwater 
Orlffln 
Oumey 
Hart 
Hartke 
HaakeU 
Hathaway 
Hruaka 
Huddleston 
Hughe* 
Humphrey 
Inouye 


Jackson 

Ja?lts 

Johnston 

Kennedy 

Lon? 

Ma<nuaon 

Uathlas 

McClellan 

McOee 

McOovem 

Mclntyre 

MetcaJf 

Mondale 

Uontoya 

Muskle 

Nelson 


A  message  from  the  House  of  Repre- 
sentatives, by  Mr.  Hackney,  one  of  Its 
reading  clerks,  armounced  that  the  House 
had  passed,  without  amendment,  the  bill 
(S.  2794).  to  amend  chapter  36  of  title 
38.  United  States  Code,  to  authorize  the 
Administrator  of  Veterans'  Affairs  to  con- 
tinue making  educaUonal  assistance  and 
subsistence  allowance  payments  to  eligi- 
ble veterans  and  eligible  persons  dur- 
ing periods  that  the  educaUonal  institu- 
tions In  which  they  are  enrolled  are  tem- 
porarily closed  pursuant  to  a  policy  pro- 
claimed by  the  President  or  because  of 
emergency  conditions. 

The  message  also  announced  that  the 
House  had  agreed  to  the  report  of  the 
committee  of  conference  on  the  disagree- 
ing votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bill  (S. 
1559)  to  provide  financial  assistance  to 
enable  State  and  local  governments  to 
assume  responsibilities  for  Job  training 
and  community  services,  and  for  other 
purposes 

The  message  further  announced  that 
the  House  had  agreed  to  the  amendment 
of  the  Senate  to  the  biU  (H.R.  8449)  to 
expand  the  national  flood  Insurance  pro- 
gram by  substantially  increasing  limits 
of  coverage  and  total  amount  of  insur- 
ance authorized  to  be  outstanding  and 
by  requiring  known  flood-prone  com- 
munities to  participate  in  the  program, 
and  for  other  purposes,  with  an  amend- 
ment in  which  It  requested  the  concur- 
rence of  the  Senate 

The  message  also  announced  that  the 
House  had  agreed  to  the  report  of  the 
committee  of  conference  on  the  disagree- 
ing votes  of  the  two  Houses  on  the 
amendments  of  the  Senate  to  the  bill 
(HR.  115751  making  appropriations  for 
the  Department  of  Defense  for  the  fiscal 
year  ending  June  30.  1974,  and  for  other 
purposes :  that  the  House  receded  from  Its 
disagreement  to  the  amendments  of  the 
Senate  numbered  3.  26.  27.  62.  and  78 


to  the  bill  and  concurred  therein;  and 
that  the  House  receded  from  its  disagree- 
ment to  the  amendments  of  the  Senate 
numbered  9.  15.  23.  34,  35.  38,  39,  44.  45, 
49.  50.  61.  52.  55.  56,  58,  71.  75,  and  79  to 
the  bill,  and  concurred  therein,  severally 
with  an  amendment,  in  which  It  re- 
quested the  concurrence  of  the  Senate. 


ENROLLED  BILLS  SIGNED 

The  message  also  Einnounced  that  the 
Speaker  had  aflSxed  his  signature  to  the 
following  enrolled  bills  and  Joint  reso- 
lutions: 

8.  14.  An  act  to  amend  the  Public  Health 
Service  Act  to  provide  assistance  and  en- 
couragement for  the  establLshment  and  ex- 
pansion of  health  maintenance  organiza- 
tions, and  for  other  purpoeee; 

S.  2168.  An  act  to  authorize  the  disposal 
of  opium  from  the  national  stoclcpile; 

S.  2316.  An  act  to  authorize  the  dlspoRal 
of  copper  from  the  national  stockpile  and 
the  supplemental  stockpile. 

S.  2794.  An  act  to  amend  chapter  3fi  of 
title  38.  Crmt^d  states  Code.  t.o  authorize 
the  Administrator  of  Vetera.'';  s  A.Talrs  to  con- 
tinue making;  educational  a.ss;stance  and 
subsistence  allowance  payments  to  ellidble 
veterans  and  ellglb'.e  per»  ns  d'lrinff  periods 
that  tbe  educatioi^ai  insutuuons  m  which 
they  are  enrolled  are  temporarily  deed  pur- 
suant to  a  policy  proclaimed  by  the  Presi- 
dent or  because  of  emergency  conditions: 

HR  5874  An  tM:t  to  e.^tablLsh  t,  p><ieral 
PlnanclnK  Bank,  to  provide  for  coordinated 
and  more  effl<ient  flnanclnR  of  Pedera]  and 
federally  assisted  borriiwlngs  from  the  public, 
and  for  other  purposes; 

H.J.  Res.  736.  Joint  resolution  to  provide 
for  a  feasibility  study  and  to  accept  a  gift 
from  the  United  States  C^apltol  Historical 
Society;  and 

HJ.  Res.  865.  Joint  resolution  authoriz- 
ing the  President  to  proclaim  March  29.  1974. 
as  "Vietnam  Veterans  Day". 

The  enrolled  bills  and  joint  resolutions 
were  subsequently  signed  by  the  Vice 
President. 


CALL  OF  THE  CALENDAR 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
unanimous  consent  that  the  Senate  turn 
to  the  consideration  of  the  calendar  be- 
girming with  No.  626  and  following.  In 
sequence. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered 


AMENDMENT  OF  USURY  TJ^WS  IN 
THE  DISTRICT  OF  COLUMBIA 

The  bin  (H.R.  6758 1  to  amend  chapter 
33  of  title  38  of  the  District  of  Columbia 
Code  relating  to  usury,  and  for  other 
puiT)ose.s  was  considered,  ordered  to  a 
third  reading,  read  the  third  time,  and 
passed 


AMENDMENT  OF  DISTRICT  OF  CO- 
LUMBIA MINIMUM  W^AOE  ACT  FOR 
AIRIJNE    EMPLOYEES 

The  bill  'HR  10806'  to  amend  the 
District  of  Columbia  Minimum  Wage  .Act 
so  a."^  t/-i  enable  airline  employee.*;  to  ex- 
change days  at  regvilar  rates  of  compen- 
sation, and  for  other  purposes.  wa.s  con- 
sidered, ordered  to  a  third  reading,  read 
the  third  time,  and  passed 


ADOPTION  OF  CHILDREN  IN  THE 
DISITIICT  OF  COLUMBIA 

The  Senate  proceeded  to  consider  the 
bill  (HJl.  11238  i  to  amend  the  Act  of 
March  16.  1926  relating  to  the  Board  of 
Public  Welfare  in  the  District  of  Colum- 
bia, to  provide  for  an  impro\ed  system 
of  adoption  of  children  m  the  District  of 
Columbia,  and  for  other  purposes. 

Mr.  BAYH  Mr.  President.  I  was  ex- 
tremely pleaded  that  the  Senate  today 
passed  adoption  subsidj'  legislation  for 
the  District  of  Columbia. 

In  June  of  this  year,  I  introduced  S. 
1986,  a  bill  to  provide  for  an  improved 
system  of  adoption  for  children  m  the 
District  of  Columbia  The  bill  approved 
by  the  Senate  today  is  the  House-pa&.'^ed 
version  of  this  important  legislation,  ai'.d 
I  fully  support  the  slight  modificatlor^ 
which  were  made  during  consideration  of 
the  le^isJalion  m  the  Hou.se  of  Represen- 
talive.s.  This  legislation  will  facUitate  the 
procurement  of  permanent  homes  for 
neglected  and  dependent  cliUdren  who 
are  now  receivuig  foster  or  institutional 
are  in  the  District. 
Adoption  subsidy  plans,  similar  to  that 
;xi.ssed  by  ihe  Senate,  are  currently  in  ef- 
fect in  27  States.  Over  the  past  few  years, 
tut^l  adoption  placements  in  the  District 
of  Columbia  have  averaged  approximate- 
ly 100  children  a  year,  an  extremely  low 
number  con.sidering  the  fact  that  there 
are  currently  between  2.500  and  2,700 
children  who  are  wards  of  the  District  of 
Columbia,  These  children  receive  various 
typt's  of  foster  care,  some  living  In  tradi- 
tional home  settmgs  and  others  in  group 
arrangements.  District  of  Columbia  of- 
ficials estimate  that  between  200  to  300 
of  these  children  could  be  placed  m 
permanent  families  with  the  assistance 
of  an  adoption  subsidj-  program.  Ap- 
proximately 150  such  new  placements 
could  be  expected  within  the  first  year 
after  institution  of  a  subsldj-  program. 

Under  the  adoption  subsidy  bill  passed 
by  the  Senate,  any  child  who  h;\s  not 
been  adopted  witliin  6  months  after  he  is 
legally  available  for  adoption  would  be 
considered  a  'child  with  special  needs  " 
This  would  Include  children  who  are 
difficult  to  place  because  of  age,  racial 
or  ethnic  background,  physical  or  mental 
condition,  or  membership  in  a  sibling 
group  which  should  be  placed  together. 
This  legislation  will  enable  the  DLstrict 
of  Columbia  Department  of  Human  Re- 
.sources  to  provide  adoption  .subsidies  for 
these  children  with  special  needs.  The 
amount  that  could  be  spent  for  an  adop- 
tion subsidy  couid  not  exceed  the  amount 
that  the  Department  would  be  authorized 
to  .spend  if  the  child  were  to  continue 
in  foster  or  institutional  care.  Payments 
would  varv  according  to  the  speclaj  needs 
of  the  child,  and  would  taclude  such 
costs  as  medical,  dental,  and  surgical 
expen-ses:  expenses  for  psychiatric  and 
p^nvc  hoi  ogle  al  care;  and  other  costs  nec- 
essary for  the  well-being  of  the  child. 

Three  ty^jes  of  subsidy  agreements  are 
specified  m  this  legislation:  Loi\g-term 
subeidles.  to  help  families  whaie  Incomes 
are  limited  and  are  likely  to  remain  so; 
time-limited  subsidies,  to  help  families 
Integrate  into  their  budgets,  during  a 
specified  period  of  time,  the  expenses  for 


the  care  of  the  new  child;  and  special 
service  subsidies,  to  help  families  meet 
specific  expenses  of  the  adoption,  such 
as  medical  procedures  or  legal  costs. 

Subsidized  adoption  plans  have  re- 
sulted in  savings  to  the  taxpayers  In 
those  States  which  have  established  this 
program  Many  States  have  also  reported 
that  the  publicity  and  specialized  service 
made  available  tmder  this  plan  have  re- 
sulted in  the  adoption  of  children  by 
families  who  did  not  need  financial  as- 
sistance, or  who  required  such  assistance 
for  only  a  limited  time. 

The  benefits  of  a  permanent  family 
and  home  to  youngsters  who  are  other- 
wise forced  to  live  in  institutions,  hos- 
pit,als.  and  foster  care  faciUties  cannot 
be  measured  in  mere  monetary  terms. 
These  children  deserve  the  love  and  care 
that  only  a  family  can  provide.  This 
legislation  will  aid  those  children  in  the 
District  of  Columbia  for  whom  the  right 
to  a  family  is  not  a  reality. 

The  bill  was  ordered  to  a  third  reading, 
read  the  third  time,  and  passed. 

^L'■  MANSFIELD  Mr  President,  the 
next  measure  to  be  considered  is  Calen- 
dar No,  630 


MANDATORY   FRICE   SLTPORT   FOR 

TUNG  NLTS 

The  bill  I  H.R.  2303)  to  continue  man- 
datory- price  support  for  tung  nuts  only 
through  the  1976  crop  was  considered, 
ordered  to  a  third  reading,  read  the  third 
time,  and  passed. 


ENERGY  CONSERVATION  FOR  CER- 
T.AIN  FEDERALLY  FINANCED 
BUILDLNGS 

The  Senate  proceeded  to  consider  the 
bill  (H.R,  11565  1  to  insure  that  ce.'tain 
bmldmgs  financed  with  Federal  funds 
utihze  the  best  practicable  technology 
for  the  conservation  and  use  of  energy, 
which  had  been  reported  from  the  Com- 
mittee on  Public  Works  with  amend- 
ments on  page  1.  in  line  3,  after  "m", 
insert  'sections  2  tlirough  5  of". 

On  page  3,  t>egimiing  with  Line  14, 
insert ; 

Skc,  6    (a)  ( 1 1   The  (Dongroaa  hereby  finds — 

(A)  that  fedemlly  owned  and  federally 
assisted  facUltlee  have  a  significant  Impact 
on  the  Nation's  consumption  of  ener^. 

B)  that  energy  ccnserratlon  practices 
adopted  for  the  design,  construction,  and 
utUlzatlon  of  these  facCltlee  wUl  hare  a 
beneflcla!  effect  on  the  Nation's  orerail  supply 
of  energy: 

'Ci  that  the  cost  of  the  energy  consumed 
by  these  faculties  orer  the  life  of  the  facilities 
must  be  considered.  In  addition  to  the  inlttaj 
oost   of   constructing   such    facUltlee:    and 

iDi  that  the  cost  of  energy  is  slgruflcant 
and  faculty  designs  must  be  based  on  the 
lowest  total  life  cycle  cost.  Including  d)  the 
Initial  construction  cost,  and  (11)  the  cost, 
over  the  economic  life  of  the  faculty,  of  the 
energy  consumed,  and  of  operation  and 
maintenance  of  the  facility  as  It  affects  en- 
ergy consumptlcHi 

(3)  The  Congress  declares  that  It  Is  the 
policy  of  the  United  States  to  insure  that 
energy  conservation  practices  are  employed 
m  the  design  of  Federal  and  federally  a»- 
slsted  facilities.  To  this  end  the  OoEgiuss 
encourages  Federal  agencies  to  analyse  the 
cost  of  the  energy  coasuniptiac  ot  each  fa- 


;J790 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20^  197S 


zmtj  constructed  or  e«cb  Dujor  faclUty  ooa- 
•trueted  or  renovated,  over  lt»  economic  life, 
in  addition  to  the  imtUi  oonBtmetlon  far 
renovation  cort. 

(b)   For  purpoMS  of  this  section: 

(1)  The  term  "Fedaral  agency"  means  an 
ezecuttve  agency  (ae  defined  In  section  106 
of  title  5,  United  Statee  Code)  and  Includes 
the  United  Statee  Postal  Service. 

(2)  The  term  •facility  meana  any  build- 
ing on  which  conatrucuon  is  initiated  six 
months  or  more  after  the  date  of  enact- 
ment of  this  Act. 

(3)  The  term  "major  facility"  means  any 
building  of  fifty  thousand  or  more  square 
feet  of  usable  floor  space  on  which  construc- 
tion or  renovation  is  Initiated  six  months  or 
more  after  the  date  of  enactment  of  this 

Art, 

4)  The  term  "Federal  facility"  or  "major 
Federal  facility"  means  a  facility  con- 
■tructed,  or  a  major  facility  constucted  or 
renovation,  by  a  Federal  agency. 

(5)  The  term  federally  assisted  facility" 
or  "major  federally  assisted  facility"  means 
a  facility  constructed,  or  major  facility  con- 
structed or  renovated.  In  whole  or  la  part 
with  Federal  funds  or  with  funds  gruaran- 
teed  or  Insured  by  a  Federal  agency. 

(6)  The  term  "initial  coat"  means  the  re- 
quired cost  necessary  to  construct  a  facility 
or  construct  or  renovate  a  major  facility. 

(7)  The  term  "economic  life"  means  the 
projected  or  anticipated  useful  life  of  a 
faculty. 

(8)  The  term  "life-cycle  cost"  means  the 
cost  of  a  facility  Including  (1)  its  inlUal 
cost,  and  (U)  the  coet,  over  the  economic 
life  of  the  facility,  of  the  energy  consumed 
and  of  operation  and  maintenance  ct'  the  fa- 
cility as  It  affects  energy  consumption. 

(9)  The  term  "energy  consumption  analy- 
sis" means  the  evaluation  of  all  energy  con- 
suming systems  and  components  by  demand 
and  type  of  enenry.  including  the  Iniemal 
energy  load  Imposed  on  a  fadUty  by  Its  occu- 
pants, equipment  and  components,  and  the 
external  energy  load  Imposed  on  the  facility 
by  climatic  condltlotLs. 

(c)(1)  The  Congress  authorizes  and  di- 
rects that  ^deral  agencies  shall  carry  out 
the  construction  of  Federal  faculties  and 
the  construction  and  renovation  of  maj<v 
Federal  facilities  under  their  Jurisdiction  at 
programs  for  the  construction  of  federally 
assisted  faculties  and  the  construction  and 
renovation  of  major  federally  assisted  fa- 
cilities In  such  a  manner  as  to  further  the 
policy  declared  In  paragraph  (ai(2)  of  this 
section,  insuring  that  enersry  conservation 
practices  are  employed  In  new  Federal  and 
federally  assisted  facilities  and  in  new  or 
renovated  major  Federal  and  federally  as- 
usted  facUlUee. 

(3)  Each  Federal  agency  having  Jurisdic- 
tion over  any  Federal  or  federally  assisted 
facilities  construction  program  <ihall  require 
the  preparation  of  a  complete  life-cycle  cost 
analysu  for  each  ma)or  facility  (exceeding 
fifty  thousand  square  feet  of  usable  floor 
space),  for  the  expected  life  of  the  major 
facility 

<3)  This  Ufe-cycle  cost  analrsU  shall  In- 
olude  but  not  be  limited  to  (uch  elements 
as: 

(A)  the  coordination  and  posttlonlng  of 
the    major    facQity   on    lu    physical    site: 

(B)  the  amount  and  type  of  fenestration 
employed  in  the  major  facility 

(Ci  the  amount  of  insulation  Incorporated 
Into  the  facility  design; 

(D)  the  vanahls  occupancy  and  operating 
eondltlons  of  the  major  facility.  Including 
Ultsnlnattoo  Isreis-.  and 

<■>  an  etiergy  oonsnmpcion  analysis  of  the 
najor  facility's  heating,  ventilating,  and  alr- 
oondmoiung  system,  lighting  system,  and  all 
o*^«»  sa«rgy-coQS«Lmlng  systems  Ths  energy 
«oiisnjnptlo«i  analysis  of  the  operation  of 
SBSrgy-ooBsuiBteg  systems  to  the  major  fa- 
cility should  include  but  not  be  limited  to: 


(I)  the  comparison  of  two  or  more  system 
alternatives: 

(II)  the  simulation  of  each  system  over 
the  entire  range  of  operation  of  the  major 
facility  for  a  year's  operatmg  period;   and 

(Ul)  tb»  evaltiation  of  the  energy  con- 
sumption of  component  equipment  in  each 
system  considering  the  operation  of  such 
components  at  otbw  than  full  or  rated  out- 
puts. 

(4)  The  life-style  cost  analysis  performed 
tor  each  major  facility  ahaU  provide  but  not 
be  limited  to  the  following  information: 

(A)  the  Initial  cost  of  each  energy -con- 
suming system  being  compared  and  evalu- 
ated: 

(B)  the  annual  cost  of  all  utUltlee: 

(C)  the  annual  cost  of  maintaining  each 
energy-consuming  system;   and 

(D)  the  average  replacement  cost  for  each 
system  expressed  in  annual  terms  for  the 
economic  life  of  the  major  facility. 

(5)  Selection  of  the  optimum  system  or 
combination  of  systems  to  be  Incorporated 
into  the  design  of  the  major  facility  shall  be 
baaed  on  the  life-cycle  coet  analysis  of  the 
economic  life  of  the  major  facility. 

(8)  In  the  selection  of  locaOona  for  new 
Federal  and  federally  assisted  facilities  con- 
sideration shall  be  given  to  proximity  to  ex- 
isting or  planned  mas.s  transit  facilities. 

(d)  The  life-cycle  cost  analysis  and  con- 
slderatlon  of  energy  conservation  practices 
required  by  subsection  le)  of  this  section 
shall  be  Included  by  the  Administrator  of  the 
General  Services  Administration  In  any  pros- 
pectus submitted  to  the  Committees  on  Pub- 
lic Works  of  the  Senate  and  the  House  of 
Representatives  under  sectlou  7  of  the  Public 
BuUdlngs  Act  of  1959.  as  amended. 

(e)  The  Administrator  of  the  General  Serv- 
ices Administration  shall  prepare  and  submit 
biennial  reports  to  the  President  and  the 
Congress  on  the  results  of  its  program  estab- 
lished pursuant  to  subsections  (c)  and  (d)  of 
thU  section.  Such  report  shall  include  a  de- 
scription of  equipment,  methods  of  con- 
struction, and  operating  practices  used  to 
achieve  energy  conservation,  including  com- 
parisons of  energy  consumption  and  costs 
for  facilities  in  which  such  equipment, 
methods,  or  policies  are  and   are  not  used. 

(f)  The  Administrator  of  the  General  Serv- 
ices Administration  is  authorized  and  di- 
rected to  develop,  publish,  and  implement 
energy  conservation  guidelines  for  all  Federal 
procurement,  except  that  the  United  States 
Postal  Service  shall  have  the  responsibility  to 
develop,  publish,  and  implement  energy 
conservation  guidelines  for  all  posUl  pro- 
curement. These  guidelines  shall  be  de- 
signed to  assure  that  efflclent  energy  use 
becomes  a  major  consideration  in  all  Federal 
procurement  and  shall  be  followed  by  all 
Federal  agencies. 

ig)  The  provisions  of  subsection  (c1  and 
subeecuon  (f)  of  this  section  shall  apply  to 
all  the  construction  and  procurement  pcllcies 
of  the  Department  of  Defense,  except  where 
the  Secretary  of  Defer.se  finds  that  combat 
needs   require    otherwise 

The  amefidments  were  agreed  to. 

The  amendments  were  ordered  to  be 
engrosaed  and  the  bill  to  be  read  a  third 
time. 

The  bill  was  read  the  third  time,  and 
passed. 


CXDMMEMORATION  MEDAL  FOR 
lOOTH  ANNTVER.SARY  OP  STATE- 
HOOD OP   COLORADO 

The  blU  (HJl  4738 )  to  provide  for  the 
.striking  of  medals  In  commemoration  of 
the  100th  anniversary  of  the  Statehood 
of  Colorado  was  considered,  ordered  to  a 
third  reading,  read  the  third  Ume  and 
passed. 


COMMEMORATION  MED.\L  FOR  THE 
INTERNATIONAL  EXPOSITION  ON 
ENVIRONMENT  AT  SPOKANE, 
WASH.,  IN   1974 

The  bm  (HJi.  5760)  to  provide  for  the 
striking  of  medals  commemorating  the 
International  Exposition  on  Environ - 
raent  at  Spokane,  Wash..  In  1974  was 
considered,  ordered  to  a  third  reading, 
read  the  third  time,  and  passed. 


SPECIAL   PAY    STRUCTURE   RELAT- 
ING TO  MEDICAL  OFFICERS 

The  Senate  proceeded  to  consider  the 
bill  (S.  2770)  to  amend  chapter  5  of 
tiUe  37,  United  States  Code,  to  revise  the 
special  pay  structure  relating  to  medical 
officers  of  the  uniformed  services  which 
had  been  reported  from  the  Committee 
on  Armed  Services  with  amendmients  on 
pace  3.  after  line  19.  strike  out: 

(3)  Section  311  Is  amended  by  striking  out 
In  subsection  (ai  the  words  "In  the  Medical 
or  Dental  Corps,  an  officer  of  the  Air  Force 
who  is  designated  as  a  medical  officer  or 
dental  officer."  and  Inserting  in  place  thereof 
the  words  "In  the  Dental  Corps,  an  officer  of 
the  Air  Force  who  is  designated  as  a  dental 
ofllcer.". 

And.  in  lieu  thereof,  insert: 

(3)  That  portion  of  the  first  sentence  of 
section  311(a)  preceding  clause  (1)  Is 
amended  to  read  as  follows: 

"(a)  Under  regulations  to  be  prescribed  by 
the  Secretary  of  Defense  or  by  the  Secretary 
of  Health.  Educatton.  and  Welfare,  as  ap- 
propriate, an  officer  of  the  Army  or  Navy  in 
the  Medical  Corpis  above  the  pay  grade  of 
0-5.  an  officer  of  the  Air  Force  who  Is  desig- 
nated as  a  medical  officer  and  Is  above  the 
pay  grade  of  0-5.  an  officer  of  the  Army  or 
Navy  In  the  Dental  Corps,  an  officer  of  the 
Air  Force  who  Is  designated  as  a  dental  offi- 
cer, or  a  medical  or  dental  officer  of  Che 
Public  Health  Service  who — '. 

On  page  4,  at  the  beglrmlng  of  line  22, 
Insert  "(D  is  below  the  pay  grade  of 
0-6;"  at  the  beginning  of  line  23,  strike 
out  "(1)"  and  insert  "(2)";  at  the  begin- 
ning of  line  25.  strike  out  "(2)"  and  In- 
sert "(3) ";  on  page  5.  at  the  beginning  of 
line  5.  strike  out  "(3)"  and  insert  "(4)"; 
and  In  line  12.  after  the  word  "exceed", 
strike  out  "$lo,000'  and  Insert  "$10,000"; 
so  as  to  make  the  bill  read : 

Be  U  enacted  by  the  Senate  and  House 
of  Representativet  of  the  United  States  of 
America  in  Confess  assembled.  That  chapter 
6  of  title  37,  United  States  Code,  la  amended 
as  foUows: 

( i )  Section  302  is  amended  to  read  as 
follows  and  the  item  In  the  chapter  analysis 
is  amended  to  correspond  with  the  revised 
catchllne: 

'1303    Sficiai,  pat:   prtbiciams. 

An  officer  of  the  Army  or  Wavy  In  the 
Medical  Corps,  an  officer  of  the  Air  Force  who 
la  designated  as  a  medical  officer,  or  a  medical 
officer  of  the  Public  Health  Service,  who  is 
on  active  duty  for  a  period  of  at  least  one 
year  Is  entitled.  In  addition  to  any  other 
pay  or  allowances  to  which  he  is  enUUed.  to 
special  pay  at  the  following  rates — 

"( 1 )  $100  a  month  for  each  month  of  active 
duty  If  he  has  not  completed  two  years  of 
active  duty  in  a  category  named  In  thU  sec- 
tion;  or 

"(2)  SSAO  a  month  tcr  •*.!-,  mrinth  of  arttve 
duty  If  he  has  com;  e •*•<-;  »•  ««.■<?  •*  roars 
of  active  duty  in  a  **eg'  -y  •  a.r:.«3  ::.  this 
section. 

The  amounts  set  forth  in  thU  section  may 
not  be  included  In  computing  the  amount  of 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42791 


an  Increase  In  pay  authorized  by  any  other 
provision  of  this  title  or  in  computing  retired 
pay  or  severance  pay.". 

(21  The  following  new  section  Is  added 
after  section  302a  and  a  oorre8p>ondlng  item 
is  Inserted  In  the  chapter  analysis:  \ 

"I  302b.  Speciai.  pat:   dentists. 

"An  officer  of  the  Army  or  Navy  In  the 
Dental  Corps,  an  officer  of  the  Air  Force  who 
is  designated  as  a  dental  officer,  or  a  dental 
officer  of  the  Public  Health  Service,  who  Is 
on  active  duty  for  a  period  of  at  least  one 
year  Is  entitled,  in  addition  to  any  other 
pay  or  allowances  to  which  he  Is  entitled,  to 
speclal  pay  at  the  following  rates— 

"(1)  $100  a  month  for  each  month  of  ac- 
tive duty  if  he  has  not  completed  two  years 
of  active  duty  In  the  Dental  Corps  or  as  a 
dental  officer; 

"(2)  $1&0  a  month  for  each  month  of  ac- 
tive duty  If  he  has  completed  at  least  two 
years  of  active  duty  In  the  Dental  Corps  or 
as  a  dental  officer: 

"(3)  $250  a  month  for  each  month  of  ac- 
tive duty  if  he  has  completed  at  least  six 
years  of  active  duty  In  the  Dental  Corps  or 
as  a  dental  officer;  or 

"(4)  $350  a  month  for  each  month  of  ac- 
tive duty  If  he  has  completed  at  least  ten 
years  of  active  duty  In  the  Dental  Corps  or 
as  a  dental  officer. 

The  amounts  set  forth  In  this  section  may 
not  be  included  In  computing  the  amount 
of  an  Increase  In  pay  authorized  by  any 
other  prortsion  of  this  title  or  In  computing 
retired  pay  or  severance  pay.". 

(3)  That  portion  of  the  first  sentence  of 
section  311(a)  preceding  clause  (1)  Is 
amended  to  read  as  follows: 

"(a)  Under  regulations  to  be  prescribed 
by  the  Secretary  of  Defense  or  by  the  Secre- 
tary of  Health.  Education,  and  Welfare,  as 
appropriate,  an  officer  of  the  Army  or  Navy 
In  the  Medical  Corps  above  the  pay  grade  of 
0-6,  an  officer  of  the  Air  Force  who  Is  desig- 
nated as  a  medical  officer  and  Is  above  the 
pay  grade  of  0-5.  an  officer  of  the  Army  or 
Navy  In  the  Dental  Corps,  an  officer  of  the 
Air  Force  who  Is  designated  as  a  dental  of- 
ficer, or  a  medical  or  dental  officer  of  the 
Public  Health  Service  who — ". 

(4)  By  adding  the  following  new  section 
after  section  312a  and  by  Inserting  a  corre- 
sponding Item  In  the  chapter  analysis: 
"1313.  Special   pat:    medical   omcEHs   who 

KXECTTTE  ACTIVE  DUTT  AGKKEMKirrS. 

"(a)  Under  regulations  prescribed  by  the 
Secretary  of  Defense  and  approved  by  the 
President,  an  officer  of  the  Army  or  Navy  In 
the  Medical  Corp>s,  or  an  officer  of  the  Air 
Force  who  Is  designated  as  a  medical  officer, 
who— 

"(1)  le  below  the  pay  grade  of  0-6; 

"(2)  Is  designated  as  being  qualified  In  a 
critical  specialty  by  the  Secretary  concerned; 

"(3)  Is  determined  by  a  board  compxjsed  of 
officers  In  the  medical  profession  under  cri- 
teria prescribed  by  the  Secretary  of  Defense 
to  be  qualified  to  enter  Into  any  active  duty 
agreement  for  a  specified  number  of  years: 
and 

"(4)  executes  a  written  active  duty  agree- 
ment under  which  he  will  receive  Incentive 
pay  for  completing  a  specified  numl>er  of 
years  of  continuous  active  duty  subsequent  to 
executing  such  an  apreement: 
may,  upon  acceptance  of  the  w-n"pn  a^rree- 
ment  by  the  Serre'ary  !^i>ncpri.<»d  or  hi.-;  des- 
ignee, and  In  addition  %>  ar.y  other  pay  or 
allowances  to  which  he  Is  entitled,  be  paid 
an  amount  not  to  exceed  $10,000  for  each 
year  of  the  active  duty  agreement.  Upon  ac- 
ceptance of  the  agreement  by  the  Secretary 
concerned,  or  his  designee,  and  subject  to 
subsections  (b)  and  (c)  of  this  section,  the 
total  amount  pnvaMe  b^'«:>me8  fixed  and  may 
be  paid  In  annual.  sem!»nnuai  or  monthly 
Installments,  or  in  a  lump  sum  after  crivr.- 
pletlon  of  the  period  of  active  duty  specified 
CXDC 2895— Part  33 


In  the  agreement,  as  prescribed  by  the  Sec- 
retary concerned. 

"(b)  Under  regulations  prescribed  by  the 
Secretary  of  Defense,  the  Secretary  concerned, 
or  his  designee,  may  terminate,  at  any  time, 
an  officer's  entitlement  to  the  special  pay 
authorized  by  this  section.  In  that  event,  the 
officer  Is  entitled  to  be  paid  only  for  the  frac- 
tional part  of  tlie  period  of  active  duty  that 
he  served,  and  he  may  be  required  to  refund 
any  amount  he  received  In  excess  of  that 
entitlement. 

"(c)  Under  regulations  prescribed  by  the 
Secretary  of  Defense,  an  officer  who  has  re- 
ceived payment  under  thlp  section  and  who 
voluntarily,  or  because  of  his  misconduct, 
falls  to  complete  the  total  number  of  years 
of  active  duty  specified  In  the  written  agree- 
ment shall  be  required  to  refund  the  amount 
received  that  exceeds  his  entitlement  under 
those  regulations.  If  an  officer  has  received 
less  incentive  pay  than  he  Is  entitled  to  un- 
der those  regulations  at  the  time  of  his  sep- 
aration from  active  duty,  he  shall  be  entitled 
to  receive  the  swldltlonal  amount  due  him 

"(d)  This  section  does  not  alter  or  modify 
any  other  service  obligation  of  an  officer. 
Completion  of  the  agreed  period  of  active 
duty,  or  other  termination  of  an  agreement, 
under  this  section  does  not  entitle  an  officer 
to  be  separated  from  the  service,  if  he  has 
any  other  service  obligation. 

"(e)  The  Secretary  of  Defense  shall  sub- 
mit a  written  report  each  year  to  the  Com- 
mittees on  Armed  Services  of  the  Senate  and 
House  of  Representatives  regarding  the  oper- 
ation of  the  special  pay  program  authorized 
by  this  section.  The  report  shall  be  on  a  fis- 
cal year  basis  and  shaU  contain — 

"(1)  a  review  of  the  program  for  the  fis- 
cal year  In  which  the  report  is  submitted: 
and 

"(2)  the  plan  for  the  program  for  the 
succeeding  fiscal  year. 

This  report  shall  be  submitted  not  later  than 
April  30  of  each  year,  beginning  In   1975.". 

Sec.  2.  The  amendments  made  by  this  Act 
become  effective  on  January  1,  1974.  Except 
for  the  provisions  of  section  313  of  tiOe  37, 
United  States  Code,  as  added  by  section 
1(4)  of  this  Act.  which  will  expire  on  June 
30.  1976.  the  authority  for  the  speclal  pay 
provided  by  this  Act  shall,  unless  otherwise 
extended  by  Congress,  expire  on  June  30. 
1977. 

Mr.  STENNIS.  Mr.  President,  I  will 
address  myself  now  to  two  calendar 
Items,  bills  S.  2770,  which  would  provide 
increases  for  certain  medical  ofBcers  of 
the  armed  services  and  S.  2771.  which 
would  revise  the  enlLstment  and  reenllst- 
ment  bonus  structure  for  enli.'^t^  men 
In  the  armed  services  The  administra- 
tion has  indicated  that  these  are  high- 
priority  Items  which  are  critical  to  the 
success  of  the  all-volunteer  force. 

Mr.  President,  I  am  on  record  as  say- 
ing that  the  all-volunteer  fo.Te  concept 
mu.^t  be  given  every  opportunity  to  suc- 
ceed, and  I  Intend  to  see  Uiai  it  does 
get  even'  rea.<onabIe  opportunity  to  suc- 
ceed That  L'=  why  I  consider  it  very  Im- 
port-ant that  the  Senate  take  prompt 
ac'tlon  on  bilL'^  S   2770  and  S   2771. 

S.  J7 70— INCREASES  IN  PAT  r%jR  CESTAIN 
MtLITARy    PHTSJ    lA-NS 

The  p.'-inclpa!  feature.":  of  S  2770  are' 
First,  it  provides  an  Increase  in 
monthly  special  pay  for  phj-sicians — in- 
cluding Public  Health  Service  ofQcers — 
with  2  yea.'-s'  active  service  from  $150 
t-o  J350. 

Second.  It  terminates  present  continu- 
ation pay  for  physicians  m  grade^  below 
0-6,   colonel,    who   currentlj-    receive   4 


months'  basic  pay  for  each  year  that 
they  agree  to  continue  on  active  ser\ice. 
Third,  it  provides  a  new  bonus  au- 
thority for  up  to  $10,000  a  year  for 
physicians  in  pay  grades  below  0-6,  colo- 
nel, for  each  year  they  agree  to  continue 
active  duty. 

NET   INC&EASES   IN   PAT    TTNDEB  THE   tIO,000 
BONUS 

Mr.  President.  I  think  it  very  impor- 
tant to  point  out  at  this  time  that  the 
$10,000  maximum  bonus  authorized  by 
the  bill  for  those  medical  officers  below 
the  grade  of  0-6,  colonel,  does  not  result 
in  a  net  increase  In  pay  of  $10,000  for 
these  personnel.  Let  me  use  an  example. 
An  0-4,  major,  with  7  years  of  service 
would  receive  the  maximum  $10,000 
tx)nus  imder  the  bill,  but  would  realize  a 
net  increase  in  pay  resulting  from  the 
bonus  of  $4,954  because  his  current  con- 
tinuation pay  of  $5,046  would  t>e  termi- 
nated under  the  bill.  In  other  words,  the 
difference  between  the  $10,000  bonus  less 
the  continuation  pay  of  $5,046  results  In 
a  net  Increase  from  the  bonus  of  $4,954. 
In  addition,  this  0-4.  major,  would  re- 
ceive a  $1,200  increase  in  monthly  special 
pay  for  a  total  net  incresise  under  the 
bill  of  $6,154.  I  might  note  here,  Mr. 
President,  that  the  range  in  net  Increases 
imder  the  bUl  are  from  approximately 
$7,700  to  $2,300  for  those  below  the  grade 
of  0-6,  colonel,  primarily  0-4s.  major, 
and  O-5's,  lieutenant  colonel.  I  do  not 
think  the  fact  can  be  overemphasized 
tliat  the  $10,000  bonus  authorized  by  the 
bill  does  not  result  in  a  net  increase  in 
I>ay  of  that  amount. 

SPSCIAI.   nrCSNTIVES    POR    IdLITAaT    PBTStCIANS 
SINCE    1»4T 

Mr.  President,  special  Incentives  have 
been  authorized  for  physicians  in  the 
armed  services  since  1947.  primarily  to 
reduce  the  gap  between  ci\'ilian  and  mili- 
tary physician  incomes,  in  order  to  keep 
these  personnel  in  the  services.  Under 
current  law*a  speciEd  ptiy  of  up  to  $350 
per  month  and  a  continuation  pay  is  pro- 
vided military  phj'sicians  which  their 
line  counterparts  do  not  receive. 

CRITICAL   psobu:m    or    MrrAiN-rjfG    phtsicians 
wrrHotrr  tbce  dkatt 

When  the  military  services  were  op- 
erating imder  the  draft  they  had  no  diffi- 
culty in  obtaining  sufficient  numbers  of 
physicians.  Since  the  draft  authority  ex- 
pired there  have  been  increasingly  great- 
er shortfalls  of  physicians  entering  the 
services.  A  physician  shortage  of  815  is 
forecast  for  the  end  of  fi5cal  year  1975, 
mcreasmg  to  1.812  by  the  end  of  fiscal 
year  1976  ba^ed  on  authorizations  of  12,- 
147  for  fiscal  year  1975-76  Not  only  are 
there  increasing  overall  .shortages,  but 
there  are  increasing  shortages  in  cntical 
s;)ecial!ties  such  a<;  pathology,  aerospace 
medicine,   radiology,  and   the  liie 

Tlie  primary  reason  for  ti;ie  shortfallf 
In  Uie  all-voluntjper  enviror^ment  Is  the 
significant  salaries  that  phv"siciari5  car. 
earnm  the  civilian  economy  with  just  a 
few  short  years  of  practice  Ft)r  example 
a  young  physician  with  just  4  years  of 
practice  can  earn  a  n^edian  civilian  in- 
come of  $43,400  based  on  a  survey  maae 
by  the  magazine  Medical  Economics  The 
same  pli^-sician  m  the  nuiitan>-    with  4 


i-':y2 


years  or  practice,  currently  earns  $24  871 
which  includes  all  his  pay  and  allowances 
Pius  monthly  special  pay  and  continua- 
tion pay  This  example  of  a  comparable 
military  and  civilian  physician  shows  a 
net  difference  in  salaries  of  almost  $19  - 
000  per  year 

Dnleaa  something  is  done  to  clooe  the 
gap  in  these  earnings,  and  I  emphasize 
for  younger  physicians,  the  military 
services  will  soon  cease  to  have  viable 
medical  service  corjjs. 

THX      CmmCAlSTT      or      TBX      F«OBI.KM      AT     THK 


CONOR  FUSION  A I    Kl  (  ORD SENATE 


Mr.  President,  I  cannot  overemphasize 
the  crlUcallty  of  the  physician -manning 
problem  In  the  services  at  the  present 
time  In  the  summers  of  1974  and  1975 
approximately  7.000  young  physicians 
will  leave  military  ser\ice  unless  some 
acUon  Is  taken  to  Increase  their  com- 
pensation. 

Currently,  the  services  retain  less  than 
1  percent  of  physicians  who  enter  serv- 
ice for  2  years  resulting  from  the  draft 
The  services  have  testified  that  If  they 
can  retain  approximately  one-third  of 
the  7.000  physicians  who  would  other- 
wise leave,  they  can  maintain  a  viable 
Medical  Service  Corps  into  the  foresee- 
able future. 

Mr.  President.  It  Is.  therefore,  im- 
portant that  acUon  be  taken  on  this 
bonus  bill  now  because  many  of  the  3  500 
physicians  who  will  leave  next  summer 
are  making  their  decisions  at  this  point 
whether  to  stay  In  service  or  not. 

P4T  nvcmzAsxs  trwD«a  th«  ■no. 
Mr  President  I  would  emphasize  that 
the  Increases  under  the  bill  would  only 
be  for  those  physicians  below  the  grade 
of  0-6.  colonel,  where  the  retention 
problem  Is  felt  to  be  most  crlUcal  and 
where  the  difference  in  earnings  between 
civilian  and  military  counterparts  Is  the 
greatest. 

Again.  I  would  emphasize  that  the  net 
Increases  for  those  In  grades  below  that 
of  0-6.  colonel,  that  Is  O-5's.  lieutenant 
colonel,  and  0-4s.  major,  would  range 
from  about  $7,700  to  $2J00  per  year. 

COST    or    THE    LCCIBI^nOI* 

Enactment  of  8.  2770  would  resul:  In 
an  tncreaaedt)udget  cost  of  S37.2  million 
for  fiscal  year  1974.  assuming  a  January 
1.  1974.  tmplementaUon  date.  This  would 
tacrease  to  about  $55  million  per  year 
for  fiscal  years  197>-79 

Mr.   GOLDWATER.   Mr    President    I 
would  like  to  develop  a  bit  of  legislative 
history  a^  we  are  about  to  pass  S    2770 
relating  to  special  and   bonus  pay  for 
mlliury  phyaklana.  It  Is  ImporUnt  to 
note  that  while  the  legislation  deals  with 
physicians  only,  this  is  an  area  which  I 
believe  the  Armed  Services  Committees 
should  and  will  be  considering  relative  to 
optometrist*,  dentists,  and  other  health 
^e  professionals  In  the  next  session  of 
Congress    It  Is  my   undersUndlng   that 
P<|«age  of  thL'  much  needed  bill  today 
w^  not  in  any  way  be  used  as  a  reason 
for  falling  to  act  afterward  on  the  prws- 
ln«  Qwatton  of  special  pay  and  bonus 
jwthortty   tmprovements   for  'h-   oth-r 
health  care  personnel,  and  I  wanted  to 
make  this  fact  plainly  known  today  on 
•*!*  record. 


Mr.  iHUHMOND.  Mr.  President,  I  rlae 
In  support  of  S  2770,  a  special  p«^  bUl 
providing  salary  Increases  to  certain 
medical  oflJcers  In  the  military  serv- 
ice, and  8.  2771.  a  bill  revising  enlistment 
and  reenlistment  bonuses  for  enlisted 
personnel  In  the  mUltary  services 

The  medical  ofBcer  bill  is  limited  to 
physicians  as  the  Department  of  De- 
fense advised  the  committee  a  crlUcal 
shortage  of  physicians  was  approaching 
The  committee,  therefore,  agreed  to  go 
ahead  and  act  In  this  one  area  of  Spe- 
cial Pay  and  consider  other  proups.  such 
as  dentists,  optometrists,  and  podiatrists 
next  year. 

The  physicians'  bill  has  three  main 
features.  First,  it  terminates  continua- 
tion pay.  Second.  It  substitutes  in  place 
of  contlnuaUon  pay  a  $10,000  annual 
bonus  authority  which  will  result  in  pay 
hikes  for  captains  with  3  vears  pracUce 
and  all  majors  and  lieutenant  colonels' 
The  bill  does  not  affect  the  pay  of  cap- 
tains  with  2  years  or  less  pracUce,  nor 
does  It  affect  the  pay  of  physicians  who 
are  colonels  or  general  officers. 

It  should  be  noted  that  the  rates  ap- 
proved by  the  committee  are  scaled  below 
the  $10,000  maximum,  with  the  Increases 
varying  from  $3,000  for  a  captain  with  3 
years  practice  to  $7,674  for  majors  with 
4  or  5  years  practice. 

Mr  President,  the  Defense  Depart- 
ment recommended  a  maximum  bonus  of 
$15,000  but  the  committee  adopted  the 
more  modest  $10,000  schedule.  This  was 
done  as  the  membership  felt  that  risuig 
personnel  costs  must  be  brought  under 
control  and  the  schedule  adopted  did 
provide  Increases  to  those  military  doc- 
tors whose  pay  was  significanUy  below 
their  civilian  counterparts. 

It  should  be  pointed  out  that  with  the 
expiration  of  the  doctor  draft  and  con- 
version to  an  all-volunteer  military  force 
It  will  be  most  difficult  to  attract  or  re- 
tain physicians  In  uniform  without  bet- 
ter pay  scales.  This  bill  attempts  to  ad- 
dress that  problem,  although  military 
physicians  will  still  be  drawing  consider- 
ably less  money  than  their  clvlUan 
counterparts. 

For  Instance,  even  with  the  Increases 
provided  In  8.  J770.  senior  captains  all 
majors,  and  very  junior  lieutenant  colo- 

^n^^  ^^1  ^  P^'*  approximately 
$10,000  less  than  their  counterparts  In 
civilian  life. 

This  bill,  however,  wUi  Increase  costs 
for  military  physicians  by  approximately 
$55  million  per  year  in  the  time  frame 

!o7w^''^  ^^J^^  ^  effective,  fiscal  year 
i»75  through  fiscal  year  1979  With  ref- 
erence to  the  enlistment  and  reenlist- 
ment bonus  bill.  8.  2771.  it  wUl  accom- 
plish two  goals,  restructuring  of  the  re- 
enlistment  bonus  and  expansion  of  the 
enlistment  bonus  programs. 

Under  present  law  all  those  who  re- 
enllst  are  paid  a  $2,000  bonus.  This  bill 
would  allow  selective  payment  of  the  re- 
enlistment  bonus  and  eliminate  the  re- 
quirement to  pay  all  who  would  reenlist 
The  result  u  that  the  services  would 
have  more  flexibility  In  using  the  reen- 
listment bonus  and  could  thus  use  It 
more  effecUvely.  In  fact,  this  change 
will  result  In  considerable  annual  lav- 


December  20,  19  7S 


Ings.  It  Is  estimated  that  these  savings 
could  amount  to  as  much  as  $77  million 
annually  by  fiscal  year  1979. 

The  Millstment  bonus  allowed  by  pres- 
ent law  applies  only  to  men  enlisUng  In 
the  combat  arms  for  4  yettrs.  However 
due  to  shortages  In  other  critical  sklli 
areas  the  committee  has  approved  ex- 
pansion of  this  authority,  provided  the 
enlistee  agrees  to  serve  4  vears  in  the 
Army,  or  6  years  in  the  Air  Force  or 
Navy. 

This  bonus  will  result  In  additional 
costs,  ranging  from  $12.9  million  in  fiscal 
year  1974  to  $85.3  million  in  fiscal  year 
1976  However,  by  retaining  these  men 
for  longer  enlistments  the  Defense  De- 
partment feels  money  will  be  saved  be- 
cause of  reduced  turnover  resulting  from 
shorter  enlistments  and  hopefully  these 
men  will  make  the  mUitary  a  career 

Mr.  President,  I  urge  favorable  consid- 
eration of  both  these  bills 

The  amendments  were  agreed  to. 

The  bill  was  ordered  to  be  engrossed 
for  a  third  reading,  read  the  third  time 
and  passed. 

Mr  MANSFIELD  Mr.  President.  I 
ask  unanimous  consent  that  the  Senate 
proceed  to  the  consideraUon  of  Calen- 
dars Nos.  615  and  635, 

The  PRESIDING  OFFICER  <Mr 
ponxNici)  Without  objection  It  Is  so  or- 
dered. 


SUPPLEMENTAL  EXPENDITURES  BY 
THE  COMMITTEE  ON  GOVERN- 
MENT OPERATIONS 

The  resolution  (S.  Res.  215)  authoriz- 
ing supplemental  expenditures  by  the 
Committee  on  Government  Operations 
for  inquiries  and  investigations  by  the 
Permanent  Subcommittee  on  Investiga- 
tions was  considered  and  agreed  to  as 
follows ; 

Resolved.  That  8  R«e  4«.  Nlnety-Uilrd 
Congress  agreed  to  February  36  1»73  is 
amended  aa  roUows: 

(1 )  In  lectlon  3  strike  out  •••1,830,000"  and 
Ineert  in  lieu  thereof  •••1.866,000'". 

(2)  In  section  4(a)  strike  out  •■»98O0O0- 
and  insert  in  lieu  thereof  ••l.oofl  COO- 


ARMED  FORCEij  ENLISTED  PERSON- 
NEL    BONUS   REVISION   ACT 


KuT^Q  Senate  proceeded  to  consider  the 
blU  (8  2771 1  to  amend  chapter  5  of  title 
37.  United  States  Code,  to  revise  the  spe- 
cial pay  bonus  structure  relating  to  mem- 
bers of  the  Armed  Forces,  and  for  other 
purposes  which  had  been  reported  from 
the  Committee  on  Armed  Services  with 
amendments  on  page  2,  line  16,  after  the 
word  'or",  strike  out  "$15,000"  and  Insert 
'$12,000";  on  page  3.  line  22,  after  the 
word  "a"  where  it  appears  the  first  lime 
strike  out  "pelrod"  and  Insert  "period";' 
In  the  same  line,  after  the  word  "least"', 
strike  out  "three"  and  Insert  "four";  and 
In  line  24.  after  the  word  "least"  strike 
out  "three"  and  Insert  "four';  so  as  to 
make  the  bill  read : 

8  3T71 
e«  tt  enacted,  by  the  Senate  and  Hotue  of 
Btpresentativet    of    tKe     United    States    of 
Awiertca    tn    Congres*   (Utembltd     TTiat    thla 

n^*J^  '^  '^'^  **  ^^*  "Armed  Kofce.  Kn- 
luted  ^enonntX  Bonus  lUvUlon  Act  of  1874' 
* 


December  20,  1973 


CONGRESSIONAL  R.ECORD  —  SENATE 


42793 


Bmc.  3.  Chapter  5  of  tlUe  37,  United  Statee 
Code.  Is  amended  as  follows: 

(1)  Section  30e  Is  amended  to  r*>ad  &s 
follows: 

"I  808.  BrCCIAL  fat:    REENUSTMKNT  BON-  - 

"(a)  A  membw  of  a  uniformed  service 
who — 

"(1)  has  completed  at  leaiit  twenty -one 
months  of  continuous  active  duty  (other 
than  for  training)  but  not  more  than  ten 
years  of  active  duty: 

"(3)  is  designated  as  having  a  critical  mUl- 
tary skill  by  the  Secretary  of  Defease,  or  by 
the  Secretary  of  TransportaUon  with  re^>ect 
to  the  Coast  Quanl  when  It  is  not  operating 
as  a  service  In  the  Navy; 

"  (3 )  is  not  receiving  special  pay  under  sec- 
tion 3i2a  of  this  tlUe;  and 

"(4)  reenllflts  or  voluntarily  extends  his 
enUstment  In  a  regular  compyonent  of  the 
service  concerned  for  a  period  of  at  least 
three  years; 

may  be  paid  a  bonus,  not  to  exceed  six 
months  of  the  basic  pay  to  which  he  was 
entitled  at  the  time  of  his  discharge  or  r»- 
leaae,  multiplied  by  the  number  of  years,  or 
the  monthly  fractions  thereof,  of  additional 
obligated  service,  not  to  exceed  six  years,  or 
•12.000.  whichever  is  the  leaser  amount.  Ob- 
ligated service  in  excess  of  twelve  years  will 
not  be  used  for  bonus  computation. 

"(b)  Bonus  payments  authorized  under 
this  section  may  be  paid  in  either  a  lump 
sum  or  in  Installments. 

"(c)  For  the  pxirpoee  of  computing  the  re- 
enlistment  bonus  in  the  case  of  an  officer 
with  prior  enlisted  service  who  may  be  en- 
titled to  a  bonus  under  subsection  (a)  of  this 
section,  the  monthly  basic  pay  of  the  grade 
In  which  he  is  enlisted,  computed  in  ac- 
cordance with  his  years  of  service  computed 
under  section  205  of  this  Otle.  shall  be  used 
instead  of  the  monthly  basic  pay  to  which  he 
was  entitled  at  the  time  of  his  release  from 
active  duty  as  an  olflcer. 

"(d)  A  member  who  voluntarily,  or  be- 
cause of  his  misconduct,  does  not  complete 
the  term  of  enlistment  for  which  a  bonus 
was  paid  to  him  under  this  section  shall  re- 
fund that  percentage  of  the  bonus  that  the 
unexpired  part  of  his  enlistment  is  of  the 
total  enlistment  period  for  which  the  bonus 
was  paid. 

"(e)  Thla  section  shall  be  administered 
under  regulations  prescribed  by  the  Secre- 
tary of  Defense  for  the  armed  forces  under 
his  JurlBdlctlon.  and  by  the  Secretary  of 
Transportation  with  respect  to  the  Const 
Guard  when  It  Is  not  operating  as  a  service 
in  the  Navy". 

(2)  Section  308a  is  amended  to  read  as 
follows: 

"!  SOBa.  Special  pat:   Etn.isTMrNT  Borrrs 

"(a)  Notwithstanding  section  514(a)  of 
title  10  or  any  other  law,  under  regulations 
prescribed  "ly  the  Secretary  of  Defense,  or 
by  the  Secretary  of  Transportation  with 
respect  to  the  Coast  Guard  when  It  Is  not 
operating  as  a  service  In  the  Navy,  a  person 
who  enlists  tn  an  armed  force  for  a  prriod 
of  at  least  four  years  In  a  skill  de.8lgrated 
as  critical,  or  who  extends  his  Initial  period 
of  active  dutv  in  that  armed  force  to  a  total 
of  at  least  four  y«nn  in  a  skill  desltmated 
AS  critical,  mav  be  paid  a  bontis  In  an 
amount  prescribed  bv  the  appropriate  Secre- 
tarv.  btit  not  more  than  W.OOO  The  bonus 
mav  be  paid  In  n  lump  sum  or  In  eoual  pe- 
riodic Installments,  as  determined  by  the 
apnroprtate  Secretan.- 

"(b)  tinder  rejnilfttion.'<  pn««T!»^e(i  by  the 
Seoretarv  of  Def^n.w.  or  br  the  S<KTetarv  of 
Transportation  with  respect  to  the  Coast 
Guard  when  It  is  not  operating  as  a  service 
tn  the  Nary,  a  person  who  voltmtarllv.  or 
because  of  his  misconduct  does  not  complete 
the  term  of  enMntmi'nt  fr>r  which  a  bonus 
was  paid  to  him  »ii-c1cr  this  section  shall 
refund    that   pyeroenta^e   of   thf   bonvis    that 


the  unexpired  part  of  his  enlistment  is 
of  the  total  enlistment  period  fc«-  which  the 
bonus  was  paid. 

"(c)  No  bonus  shall  be  paid  under  this 
section  with  re^Mct  to  any  enUstment  or 
extension  of  an  Initial  period  of  active  duty 
in  the  armed  forces  made  after  June  30. 
1977.". 

Skc.  3.  Notwithstanding  section  308  of 
tiUe  37.  United  SUtes  Code,  as  amended  by 
this  Act.  a  member  of  a  uniformed  service 
on  the  day  before  the  efTectlve  date  of  this 
Act.  who  would  have  be*n  eligible,  at  the 
end  of  bis  current  or  sat>»equent  enUstment, 
for  the  reenlistment  bonus  prescribed  In  sec- 
tion 308  (a)  or  (d)  of  that  title,  as  It  existed 
on  the  day  before  the  effective  date  of  this 
Act,  shall  continue  to  be  eligible  for  the 
reenlistment  bonus  under  that  section  as  it 
existed  on  the  day  before  the  effective  date 
of  this  Act.  If  a  member  is  also  eligible  for 
the  reenlistment  bonus  prescribed  In  that 
section  as  amended  by  this  Act,  he  may  elect 
to  receive  either  one  oS  those  reenlistment 
bonuses.  However,  a  member's  eligibility  un- 
der section  308  (a)  or  (di  of  that  title,  as  it 
existed  on  the  day  before  the  effective  date 
of  this  Act,  terminates  when  he  has  received 
a  total  of  $2,000  in  reenlistment  bonus  pay- 
ments, received  under  either  section  308  fa) 
or  (d)  of  that  title  as  it  existed  on  the  dsv 
before  the  effective  date  of  this  Act.  or  un- 
der section  308  of  that  title,  as  amended  by 
this  Act,  or  from  a  combination  of  both. 

Sec.  4.  The  amendments  made  by  this  Act 
become  effective  on  January  1,  1974. 

Mr.  MANSFIELD.  Mr.  President.  I 
ask  unanimous  consent  that  the  amend- 
ments be  considered  en  bloc. 

The  PRESIDING  OFFICER.  Without 
objection,  the  amendments  are  consid- 
ered and  agreed  to  en  bloc. 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
unanimous  consent  that  the  distin- 
guished Senator  from  Maine  (Mr.  Hath- 
away) be  recognized  to  offer  em  amend- 
ment. 

The  PRESIDING  OFFICER.  The  Sen- 
ator from  Maine  is  recognized. 

Mr.  HATHAWAY.  Mr.  President.  I 
send  my  amendment  to  the  desk  and 
ask  that  it  be  stated. 

The  PRESIDING  OFFICER.  The 
amendment  will  be  stated. 

The  legislative  clerk  read  as  follows: 

In  10  use.  In  subsections  4342  (e)  (4) ,  6954 
(a)  (1).  8964  (a)  (B).  8954  (b)  (1),  6954  (c). 
9342  (e)  (4)  strike  "sons"  and  Insert  In  lieu 
thereof,  "children".  In  subsections  4342  (h), 
9342  (d),  and  9342  (b).  strike  "son"  and  In- 
sert In  Ueu  thereof.  "chUd."  In  subsections 
6956  (d)  (1)  and  8966  (d)  (2).  strike  "men" 
and  insert  In  lieu  thereof,  "memljers".  In  suh- 
sectlon  8964  (e)  strike  "men"  and  Insert  In 
lieu  thereof,  "persons".  Insert  the  following 
as  suljsectlons  4346  (e).  9346  (e),  and  6968 
(d): 

"A  female  candidate  for  admission  who  Is 
quauned  to  be  trained  in  a  sJtUl  or  profes- 
sion In  which  Individuals  of  her  sex  are 
permitted  to  serve  as  commissioned  officfn 
In  the  armed  forces  of  the  United  States  aLh»ll 
not  be  Ineligible  for  admission  on  account 
of  sex.  nor  shall  sex  be  grounds  for  the 
refusal   of   admission  to  the  Academy 

Mr  HATHAWAY  Mr  President,  the 
thrust  of  the  amendment  Is  to  allow 
female  candidates  for  admls-Mon  to  the 
military  academies  to  be  admitted  I 
think  the  amendment  is  com;)let<?ly  in 
accord  with  the  purpose  of  the  bill  itself. 

One  of  the  problems  we  have  had  w.th 
our  All-Volunteer  Armj-  Ls  the  fact  'J.ai 
not  enough  people  have  enlisted  Thl5  bill 
will  provide  a  bonus  for  reenlistment  It 


has  been  suggested  by  man.v  thai  we  also 
induce  women  to  enter  the  niiUtar>'  serv- 
ices. It  is  complet-ely  m  keeping  with  that 
idea  also  to  admit  them  to  the  military 
academies. 

After  all.  there  are  many  women  to- 
day already  serving  as  officers  In  the 
WAVES.  WAGS,  and  WAFS.  If  the  mili- 
tary leeLs  Vtia-t  women  are  qualified  lo 
receive  commi.sslons  and  to  serve  their 
counlr>-  as  members  of  a  particular 
branch  of  service,  then  ceriairJy  women 
are  entitled  to  the  same  exceiieni  officer 
training  as  m.en.  And,  of  course,  the  best 
training  available  takes  place  at  the  mili- 
tary academies. 

Mr.  MANSFIELD.  Mr.  President,  if  the 
Senator  from  Maine  will  yield.  I  should 
like  to  be  a  cosponsor  of  his  amendme'.t. 
I  am  a  little  bit  burned  up  about  tie 
admissions  policy  of  some  of  the  servlci 
academies.  I  nominated  two  women  thla 
year.  They  passed  the  examlnatitma. 
They  are  entitled  to  entrance,  otherwise 
they  should  be  barred  from  taking  the 
examinations  in  the  first  place. 

Mr.  HATHAWAY,  Mr.  President.  I  am 
happy  to  have  the  majority  leader  as  a 
cosponsor. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  names  of  the  following 
Senators  be  added  as  cosponsors  of  thla 
amendment :  Senators  Mansfield ,  Thtts- 
MOND,  and  JA\Trs. 

The  PRESIDING  OFFICER.  Without 
objection,  it  Is  so  ordered. 

Mr.  JAVaTS.  Mr.  President,  I  appointed 
the  first  girl  to  the  Naval  Academy.  The 
Naval  Academy  successfully  frustrated 
that  appointment  up  to  now.  which  has 
been  about  2  years  ago.  I  am  delighted 
that  the  Senator  from  Maine  has  acted. 
I  congratulate  him,  and  am  glad  to  be 
a  cosponsor  of  his  amendment. 

Mr.  STENNIS.  Mr.  President.  I  think 
the  amendment  is  relevant  to  the  bill 
and  the  problem  the  bill  seeks  to  remedy. 
I  would  like  to  see  the  matter  tried  out. 
So  far  as  being  the  manager  of  the  bOl  is 
concerned.  I  am  willing  to  take  It  to  con- 
ference and  we  will  see  what  we  can  do 
with  It.  If  necessar>'.  we  can  hold  some 
hearings  by  our  committee,  or  the  sub- 
committee, before  the  conference  Is  held. 

Mr.  THURMOND.  Mr.  President,  •»« 
have  removed  all  vestiges  of  discrimina- 
tion agsdnst  women  In  almost  every  field. 
I.  therefore,  see  no  reason  why  we  should 
not  do  it  In  the  military  field.  Ce.-talnly 
there  must  be  some  women,  somewhere 
In  this  land,  who  are  very  able  and  will 
make  splendid  military  personnel  I  am 
pleased  to  be  a  cosponsor  of  the  amend- 
ment. 

Mr.  MANSFIELD  Mr.  President.  I 
ha\-e  not  given  up  on  the  appointment 
which  I  have  made  This  appointment 
was  confirmed  on  the  basis  of  high 
enough  grades  In  takmp  the  examina- 
tion It  ly  about  time  this  matter  came 
to  a  head.  If  we  believe  in  the  equaiUy 
of  women,  we  should  art  that  wav  Wom- 
en are  entitled  to  entrance  to  the  mili- 
tary academies  if  they  desire  to  do  so 
and  if  they  quaiify 

Mr  JAVITS  Mr.  President.  I  am 
about  to  appoint — I  hare  already  inter- 
viewed her — another  girl  and  will  try  an- 
other test  of  stren«Ui  with  the  Naval 
.Academy. 


42794 


CXJNGRESSIONAI  RECORD  —  SEN  ATE 


December  20,  1973 


I  have  had  extensive  correspondence 
with  the  Naval  Academy  on  what  they 
claim  was  a  proper  legal  basis  for  re- 
jecting my  nominee,  a  conclusion  with 
which  I  thoroughly  disagree.  We  are  not 
trying  to  make  girls  line  officers,  but 
simply  to  give  them  the  right  to  be  ad- 
mitted for  duty  with  the  Navy  for  which 
they  are  completely  capable. 

Mr.  MANSFIELD.  It  is  just  not  the 
Navy,  but  all  the  service  academies. 

The  PRESIDING  OFFICER.  The 
question  Is  on  agreeing  to  the-amendr 
ment  of  the  Senator  from^Ttfaine. 

The  amendment  was  agreed  to. 

Mr.  STENNIS.  Mr.  President.  S.  2771 
provides  basically  for  a  revision  of  exist- 
ing reenlistment  bonus  authority,  at  con- 
siderable savings  in  future  years,  and  an 
expansion  of  current  enlistment  bonus 
authority,  currently  used  only  for  enlist- 
ments in  the  combat  arms.  Again,  the 
Administration  has  indicated  that  this 
Is  a  high-priority  bill  whose  passage 
would  help  considerably  In  promoting 
the  success  of  the  All -Volunteer  R>rce. 

PHINCtPAX,  FKATTTRKa    OF   8.    2771 

Mr.  President,  the  first  major  provision 
of  S.  2771  provides  for  a  restructuring  of 
the  services  current  reenlistment  bonus 
authority. 

Existing  law  provides  a  regiilar  reen- 
listment bonus  of  $2,000  for  all  reenllst- 
ments  regardless  of  skin  areas  and  a 
variable  reenlistment  bonus  of  up  to 
$8,000  for  reenlistment  In  critical  skill 
areas  only.  A  maximum  of  $10,000  Is  al- 
lowed In  reenlistment  bonuses  over  a 
career. 

The  bill  modifies  exlstlftg  law  bv  al- 
lowing up  to  $12,000  in  a  selective  reen- 
listment bonus  for  reenlistment  in  criti- 
cal skills  only  and  repeals  the  regiilar  re- 
enlistment bonus  of  $2,000  for  new  en- 
trants. 

CONSIDEKABLX      S.^VUJCS      rSOM      RXSTBUCrCUING 
THE  BETNLISTMCNT  BON-TS  AtTTHORITT 

There  are  significant  savings  resulting 
from  eliminating  the  use  of  the  regxilar 
reenlistment  bonus  of  $2,000.  Current  law 
requires  It  be  paid  to  an  individual  when 
he  reenlists  whether  he  Is  In  an  over-  or 
under-maimed  skill.  The  Department  of 
Defense  estimates  that  in  fiscal  year  1973 
they  paid  $43.5  million  in  regular  reen- 
listment bonuses  In  skill  areas  that  could 
have  been  filled  without  use  of  the  bonus. 

In  fact,  elimination  of  the  regular  re- 
enlistment bonus  will  result  In  an  annual 
8a\,in«s  In  fiscal  year  1979  of  $77.4  mil- 
lion. 

»rw  BCTKUSTICENT  BONCS  OF  SI 2.000 

The  committee  reduced  the  reenlist- 
ment bonus  authority  in  the  original  bill 
from  $15,000  down  to  $12,000.  The  cur- 
rent law  provide*  a  maximum  bonus  of 
$10,000  over  a  career.  The  committee  felt 
It  wise  to  Increase  the  bonus  authority 
to  $12,000  to  provide  flexibility  In  admin- 
istering the  reenlistment  bonas  and  also 
to  allow  for  increases  in  inflation  in  fu- 
ttire  years. 

In  nummary.  Mr.  President,  this  re- 
structuring of  the  reenlistment  bonus 
system  makes  much  more  efBdent  use 
of  reenlistment  dollars  with  considerable 
•avtngs  In  future  years 


THX  EXPANSION  OF  TKI  EKT.IST1IKNT  BOKT7S 
AtJTHOBTrr 

The  second  major  feature  of  S.  2771 
provides  for  an  expansion  of  the  current 
enlistment  bonus  authority.  Existing  law 
grants  authority  to  pay  up  to  $3,000  for 
an  enlistment  of  at  least  3  years  in  the 
combat  arms,  that  is.  Infantry,  armor, 
and  artillery  in  the  Army  and  Marine 
Corps. 

The  bill  would  expand  existing  law  to 
use  the  current  enlistment  boniis  au- 
thority of  up  to  $3,000  for  an  enlistment 
cf  4  years  in  any  critical  skill  In  any 
service. 

PSOJECl'KU  camcAL  sKnx  enlistmemt 

SHORT  AGK 

Currently  the  services  are  experienc- 
ing critical  skill  enlistment  shortages  in 
various  aresis  such  as  electronic  equip- 
ment repairman,  mechanical  rep»irman, 
communications,  and  intelligence  spe- 
cialists and  the  like.  The  services  have 
estimated  that  without  the  expanded  use 
of  the  enlisted  bonus  that,  they  will  fall 
critically  short  in  these  enlistment  areas. 

SCCCRSS  OF  THK  COMBAT  ARMS  ENUSTMENT 

BONUS 

The  Department  of  Defense  has  testi- 
fied that  the  combat  arms  enlistment 
bonus  has  been  an  unqualified  success. 
Currently  the  Department  Is  using  the 
combat  arms  enlistment  bonus  at  the 
$2,500  level  for  a  4-year  enlistment.  Mr. 
President.  I  request  unanimous  consent 
at  this  time  to  have  Inserted  in  the  Rec- 
ord a  table  which  shows  the  activity  of 
the  combat  arms  enlisted  bonus  for  com- 
parable bonus  and  nonbonus  periods. 

There  being  no  objection,  the  table 
was  ordered  to  be  printed  In  the  Record. 
as  follows : 

EXPANDED   ENUSTMENT   BONUS   TEST   RESULTS  VERSUS 
COMPARABLE  NONBONUS  PERIOD  (ARMY  ONLY) 


Enlisted  for  specialty 
(percent) 


Specialty 


May-Juna 
19721 


May-JuiM 
1973  > 


Radio  teletype  operator 

Perjhinj  missile  crewman \\\ 

Air  defense  artillery  op«fations/in- 
telligence  specialist 

Defense  Kquisition  rjdjr '' 

Pershini  electronics  material  spe- 
cialist  

PersAing  guidance  control  repair- 
nun 

Ha*k  missile  launcher  repairman..! 

Weapons  support  radar  repairman... 

Grouni  control  approach  radar  re- 
pairman  

Wire  fuidad  miisile  sytttm  repair- 
man  

Shillelacti  missile  system  repairman  ' 

Radio  relay  carrier  attendant 

Special  eiectromcs  device  repairman. 

Tank  turret  repairnun 

Artillery  repairman 

Nuclear  weapons  maintenarice  spe- 
cialist .  

Artillery  survey* ...." 


30 

60 

7 

56 

7 

107 

10 

59 

2S 

87 

0 

113 

3 

105 

0 

125 

29 

100 

3 

64 

0 

92 

45 

49 

15 

107 

4« 

101 

3 

75 

3 

106 

S 

73 

'  No  honus  luthoriiM  for  this  period 
'  A  bonvs  Of  J2.500  for  a  4  year  enlistment  was  authorized  for 
this  period. 

Mr.  STENNIS.  For  example,  during 
May  and  June  of  1972  the  Army  got  29 
percent  of  their  ground^control  approach 
radar  repairmen  and  100  percent  during 
May  and  June  1973  when  the  bonus  was 
-fei  effect. 


I  think  there  Is  little  question  that 
judicious  use  of  the  bonus  has  had  a 
significant  effect  on  enlistments  in  criti- 
cal skill  areas.  The  enlistment  bonus  au- 
thority under  the  bill  would  expand  the 
current  combat  arms  enlistment  bonus 
by  providing  a  bonus  of  up  to  $3,000  for 
a  4-year  enlistment  in  any  critical  skill 
area.  The  Department  states  that  the 
initial  bonus  amount  would  be  limited 
to  $2,000,  with  the  exception  of  $2,500 
for  the  combat  arms  bonus,  ior  terms  of 
enlistment  of  4  years  in  the  Army  and 
Marine  Corps,  at  least  4  years  in  the 
Navy,  and  6  years  in  the  Air  Force.  The 
bonus  will  also  be  limited  to  those  in 
mental  categories  I,  n,  and  ni — cate- 
gory rv  is  the  lowest — on  the  Armed 
Forces  qualification  test,  and  for  the 
most  part  to  high  school  graduates. 

COST  OF  THE  ENLISTMENT  BONUS 

The  committee  report  on  S.  2771  pro- 
vides examples  of  training  cost  savings 
resulting  from  use  of  the  bonus.  This 
comes  about  tiecause  the  bonus  requires 
longer  enlistments  than  otherwise  would 
be  the  case  by  spreading  training  costs 
over  longer  periods. 

The  additional  cost  of  the  enlistment 
bonus  for  fiscal  year  1974,  assuming  a 
January  1,  1974  implementation  date  is 
$12.9  million  increasing  to  $853  million 
in  fiscal  year  1976.  These  additional  costs 
do  not  refiect,  however,  any  training  sav- 
ings resulting  from  use  of  the  bonus. 

CLOSING 

In  summary,  Mr.  President,  I  urge 
prompt  action  on  bills  S.  2770  and  S. 
2771.  I  believe  enactment  of  this  leg- 
islation will  provide  significant  help  to 
the  Department  of  Defense  in  making 
the  all-volunteer  force  a  success. 

The  bill  was  ordered  to  be  engrossed 
for  a  third  reading,  was  read  the  third 
time,  and  passed,  as  follows: 
s.  2771    • 

An  act  to  amend  chapter  5  of  title  31, 
United  States  Code,  to  revise  the  special  pay 
bonus  structure  relating  to  members  of  the 
armed  forces,  and  for  other  purposes. 

Be  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  United  States  of 
America  in  Congress,  assembled.  That  this 
Act  may  be  cited  as  the  "Armed  Forces  En- 
listed Personnel  Bonus  Revision  Act  of 
1974'. 

Sec.  a.  Chapter  5  of  title  37,  United  States 
Code.  Is  amended  as  follows: 

(1)  Section  308  Is  amended  to  read  as 
follows : 

"1308.  Special  pay:   reenlistment  bonus 

"(a)  A  member  of  a  uniformed  service 
who— 

"(li  has  completed  at  least  twenty-one 
months  of  continuous  active  duty  (other 
than  for  training)  but  not  mqpB  than  ten 
years  of  active  duty: 

"(2)  is  designated  as  having  a  critical  mili- 
tary skin  by  the  Secretary  of  Defense,  or  by 
the  Secretary  of  Transportation  with  respect 
to  the  Coast  Ouard  when  it  Is  not  operating 
as  a  service  In  the  Navy; 

"(3)  Is  not  receiving  special  pay  under 
section  312a  of  this  title;  and 

"(4 1  reenlists  or  voluntarily  extends  his  en- 
listment Ip  a  regiilar  component  of  the  serv- 
Ice  concerned  for  a  period  of  at  least  three 
years; 

ooay   t>«   paid    a    bonus,    not    to   exceed    six 
months  of  the  basic  pay  to  which  ha  was  en- 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42795 


titled  at  the  time  of  bis  dlscbsLige  or  re- 
lease, multlpled  by  the  number  of  years,  or 
the  monthly  fractions  thereof,  of  additional 
obligated  service,  not  to  exceed  six  years,  or 
$12,000,  whichever  Is  the  lesser  amount.  Ob- 
Ugated  service  in  excess  of  twelve  years  will 
not  l>€  used  for  bonus  computation. 

"(b)  Bonus  payments  authorized  under 
this  section  may  be  paid  In  either  a  lump 
sum  or  In  InstaUments. 

"(c)  For  the  purpose  of  computing  the  re- 
enlistment bonus  In  the  case  of  an  officer 
with  prior  enlisted  service  who  may  be  en- 
titled to  a  bonus  under  subsection  (a)  of 
this  section,  the  monthly  basic  pay  of  the 
grade  In  which  he  Is  enlisted,  computed  In 
accordance  with  his  years  of  service  com- 
puted under  section  205  of  this  title,  shall 
be  used  Instead  of  the  monthly  basic  pay  to 
which  h3  was  entitled  at  the  time  of  his 
release  from  active  duty  as  an  officer. 

"(d)  A  member  who  voluntarily,  or  be- 
cause of  his  misconduct,  does  not  complete 
the  term  of  enlistment  for  which  a  bonus 
was  paid  to  him  under  this  section  shall  re- 
fund that  percentage  of  the  bonus  that  the 
unexpired  part  of  his  enlistment  Is  of  the 
total  enlistment  period  for  which  the  bonus 
was  paid. 

"(e)  This  section  shall  be  administered 
under  regulations  prescribed  by  the  Secre- 
tary of  Defense  for  the  armed  forces  under 
his  jurtrdlctlon.  and  by  the  Secretary  of 
Transportation  with  respect  to  the  Coast 
Ouard  when  It  Is  not  operating  as  a  service 
In  the  Navy.". 

(2)  Section  308a  Is  amended  to  read  as 
follows: 

"S  308a.  Special  pay:  enlistment  bonus 

"(a)  Notwithstanding  section  514(a)  of 
title  10  or  any  other  law,  under  regulations 
prescribed  by  the  Secretary  of  Defense,  or 
by  the  Secretary  of  Transportation  with  re- 
spect to  the  Coast  Guard  when  It  Is  not 
operating  as  a  service  in  the  Navy,  a  person 
who  enlists  In  an  armed  force  for  a  period 
of  at  least  four  years  in  a  skill  designated 
as  critical,  or  who  extends  his  Initial  period 
of  active  duty  In  that  armed  force  to  a  total 
of  at  least  four  years  In  a  skill  designated 
as  critical,  may  be  paid  a  bonus  In  an 
amount  prescribed  by  the  appropriate  Sec- 
retary, but  not  more  than  $3,000.  The  bonus 
may  be  paid  In  a  lump  sum  or  In  equal 
periodic  installments,  as  determined  by  the 
appropriate  Secretary. 

"(b)  Under  regulations  prescribed  by  the 
Secretary  of  Defense,  or  by  the  Secretary  of 
Transportation  with  respect  to  the  Coast 
Guard  when  it  Is  not  operating  as  a  sen-ice  in 
the  Nav-\'.  a  person  who  voluntarily,  or  be- 
cause of  his  misconduct,  does  not  complete 
the  term  of  enlistment  for  which  a  bonus 
was  paid  to  him  under  this  section  shall  re- 
fund that  percentage  of  the  bonus  that  the 
unexpired  part  of  his  enlistment  Is  of  the 
total  enlistment  period  for  which  the  bonus 
was  paid. 

"(c)  No  bonus  shall  be  paid  under  this  sec- 
tion with  respect  to  any  enlistment  or  ex- 
tension of  an  Initial  period  of  active  duty 
In  the  armed  forces  made  after  June  30, 
1977". 

Sec.  3.  Notwithstanding  section  308  of  title 
37,  United  States  Code,  as  amended  by  this 
Act,  a  meml)er  of  a  uniformed  service  on 
active  duty  on  the  effective  date  of  this  Act, 
who  would  have  been  eligible,  at  the  end  of 
his  current  or  subseq\ient  enlistment,  for  the 
reenlistment  bonus  prescribed  In  section  308 
(a)  or  (d)  of  that  title,  as  It  existed  on  the 
day  before  the  effective  date  of  this  Act.  shall 
continue  to  be  eligible  for  the  reenlistment 
bonus  under  that  section  as  It  existed  on 
the  day  before  the  effective  date  of  this  Act. 
If  a  member  Is  also  eligible  for  the  reenlist- 
ment bonus  prescribed  In  that  section  as 
amended  by  this  Act.  he  may  elect  to  receive 
either  one  of  those  reenlistment  bonuses. 
However,  a  member's  eligibility  under  section 


308  (a)  or  (d)  of  that  title,  as  it  existed 
on  the  day  before  the  effective  date  of  this 
Act,  terminates  when  he  has  received  a  total 
of  $2,000  In  reenlistment  bonus  payments, 
received  under  either  section  308  (a)  or  (d) 
of  that  title  as  it  existed  on  the  day  befcwe 
the  effective  date  of  this  Act,  or  under  sec- 
tion 308  of  that  title,  as  amended  by  this 
Act,  or  from  a  combination  of  both. 

Sek.  4.  The  amendments  made  by  this  Act 
become  effective  on  January  1,  1974. 

Sec.  5.  In  lb  US.C,  in  subsections  4342(e) 
(4),  6954(a)(1),  6954(a)(8).  6954(b)(1). 
6954(c),  9342(ei  (4)  strike  "sons"  and  Insert 
in  lieu  thereof,  "children".  In  subsections 
4342(h),  9342(d),  and  9342(h)  strike  "son" 
and  Insert  in  lieu  thereof,  "child".  In  sub- 
sections 6956(d)(1)  and  6956(d)(2)  strike 
"men"  and  Insert  In  lieu  thereof,  "members". 
In  subsection  6964(e)  strike  'men"  and  In- 
sert In  lieu  thereof  "persons".  Insert  the  fol- 
lowing as  subsections  4346(e).  9346(e).  and 
6958(d)  :  "A  female  candidate  for  admission 
who  is  qualified  to  be  trained  In  a  skill  or 
profession  in  which  Individuals  of  her  sex 
are  permitted  to  serve  as  commissioned  offi- 
cers in  the  armed  forces  of  the  United  States 
shall  not  be  ineligible  for  admission  on  ac- 
count of  sex.  nor  shall  sex  be  grounds  for  the 
refusal  of  admission  to  the  Academy". 


ORDER  OF  BUSINESS 

Mr.  MANSFIELD.  Mr.  President,  I  ask 
consent  that  the  Senate  proceed  to  the 
consideration  of  Calendar  Nos.  614  and 
620. 

The  PRESIDING  OFFICER.  Without 
objection,  it  is  so  ordered. 


SUPPLEMENTAL  EXPENDITURES  BY 
THE  COMMITTEE  ON  COMMERCE 

The  resolutlcai  (S.  Res.  216)  authoriz- 
ing supplemental  expenditures  by  the 
Committee  on  Commerce  for  inquiries 
and  investigations  was  considered  and 
agreed  to,  as  follows: 

Resolved,  That  section  2  of  S.  Res  45. 
Ninety-third  Congress,  agreed  to  March  15, 
1973,  as  amended.  Is  amended  by  striking 
out  "$1,300,000"  and  inserting  In  lieu  there- 
of   '$1,375,000". 


SUPPLEMENTAL  EXPENDITURES  BY 
THE  SPECIAL  COMMITTEE  ON 
AGING 

The  resolution  (S.  Res.  214  V  author- 
izing supplemental  expenditures  by  the 
Committee  on  Aging  for  inquiries  and 
Investigations  was  considered  and  agreed 
to  as  follows : 

Resolved,  That  section  4  of  Senate  Reso- 
lution 51.  Ninety-third  Congress,  agreed  to 
February  22,  1973.  Is  amended  by  striking 
out  "$375,000"  and  Inserting  In  Ueu  thereof 
"$411,000". 

The  tltl';  was  amended,  so  as  to  read : 
"Resolution  authorizing  supplemental 
expenditures  by  the  Special  Committee 
on  Aging  for  inquiries  «md  Investiga- 
tions". 


HOUSE  JOINT  RESOLUTION  8.58--TO 
PROVIDE  FOR  THE  ESTABLISH- 
MENT OF  THE  LYNDON  B.MNF^ 
JOHNSON  MEMORIAL  GROVE  ON 
THE  POTOMAC 

Mr.  BENTSEN.  Mr.  President,  the 
Committee  cwi  Rules  and  Administration 
has  reported  this  morning  Senate  Joint 
Resolution    178    which   provides    for    a 


Lyndon  B.  Johnson  Memorial  Grove  mi 
the  Potomac  and  which  I  introduced 
along  with  Senators  Aiken,  Humphrey 
and  Gold  WATER  on  December  6. 

The  members  of  the  Committee  on 
Rules  and  Administration  have  agreed 
to  report  this  measure  before  the  Con- 
gress adjourns  for  this  session  and  I 
know  the  proponents  of  the  L3.J.  Memo- 
rial Grove  are  deeply  grateful  for  the 
committee's  speedy  consideration  of  this 
measure. 

The  House  has  passed  a  companion 
measure  with  minor  differences  from  the 
Senate  bill  and  in  order  to  avoid  the  ne- 
cessity for  a  conference  on  the  different 
versions  I  now  ask  imanimous  consent 
that  the  Committee  on  Rules  and  Ad- 
ministration be  discharged  from  further 
consideration  of  House  Joint  Resolution 
858  and  that  the  Senate  proceed  to  its 
immediate  consideration. 

Mr.  President.  President  Johnson  had 
his  bedrock  in  Texas,  but  a  great  deal  of 
his  life  was  spent  here  on  the  banks  of 
the  Potomac. 

His  work  here  spanned  more  than  a 
generation,  and  he  left  his  mark  on  the 
institutions  of  our  Government,  particu- 
larly this  body  which  he  loved  so  well. 

The  joint  resolution  we  are  consider- 
ing today  win  not  cost  the  public  a  cent, 
but  it  will  give  to  the  people  a  Uvlng 
memorial  to  a  man  who  shared  so  much 
of  their  lives  through  his  public  work.  It 
would  be  another  addition  to  the  beautl- 
ficatlon  of  the  National  Caaital  which 
was  of  such  concern  to  his  wife  and 
which  had  his  fuU  support.  The  Johnson 
Memorial  Grove  would  be  located  in  the 
Lady  Bird  John.=«n  Park  which  borders 
the  Potomac  River  and  which  offers  a 
scenic  \iew  of  the  city  Plans  for  the 
grove  call  for  an  elevated  area  in  the 
center  of  the  grove,  perhaps  containing 
a  statue  or  other  memorial  to  the  Presi- 
dent and  encompassed  by  a  grove  of  trees 
which  will  provide  a  perfect  natural  set- 
ting for  this  simple  tribute  to  our  former 
President. 

This  project  has  been  approved  by 
Mrs.  Johnson  and  will,  no  doubt,  bear 
the  tasteful  Influence  of  her  personal 
Involvement.  The  friends  of  the  late 
President  are  all  in  accord  In  this  pro- 
posed tribute,  and  I  hope  that  the  Sen- 
ate wUl  act  with  dispatch  to  clear  the 
way  for  this  li\ing  memorial  to  a  man 
who  gave  us  aU  so  rr.ucii. 

In  closing,  let  me  thank  the  members 
of  the  Committee  on  Rules  and  Admin- 
istration once  again  for  th^  expeditious 
handling  of  this  proposal. 

Mr.  President.  I  ask  unanimous  con- 
sent that  the  Committee  on  Rules  and 
Administration  be  discharged  from  fur- 
ther consideration  of  House  Joint  Reso- 
lution 858  and  that  the  Senate  proceed 
to  Its  immediate  consideration 

The  PRESIDING  OFFICER.  The  reso- 
lution will  be  stated  by  title. 
The  legislative  clerk  read  as  follows: 

H  J.  Res.  858  A  l.v.nt  resolution  to  prortde 
for  the  estabUsIm-.ent  of  the  Lyndon  Balr.es 
Johnson  Memorial  Orove  on  the  Potom«a 

The  PRESIDING  OFFICER.  Is  there 
objection  to  the  requests  of  the  Senator 
from  Texas?  The  Chair  hears  none,  and 
it  is  so  ordered. 

Accordingly,  the  joint  resolution  iHJ. 


-LiTyo 


CONGR£SSIOi\AI.  KirORD  —  SFNATE 


Res.  858  >  was  considered,  ordered  to  a 
third  reading,  read  the  third  time,  and 
passed. 

Mr.  BENTSEN.  Mr.  President.  I  ask 
unanimous  consent  that  consideration 
of  Senate  Joint  Resolution  178  be  In- 
definitely postponed. 

The  PRESIDING  OFFICER.  Is  there 
objection?  The  Chair  hears  none,  and  it 
is  so  ordered. 


December  20,  197S 


RECESS  SCHEDULE 


Mr.  MANSFIELD.  Mr.  President,  the 
distinguished  Republican  leader  and  I 
have  been  working  on  a  recess  schedule 
for  next  year,  up  to  and  including  the 
Fourth  of  July  recess.  We  have  also  met 
with  the  assistant  leaders,  and  together 
the  joint  leadership — all  four  of  us —  are 
recommending  to  the  Senate  that  the 
recess  periods  for  next  year  be  els  follows : 
First,  when  the  Senate  adjourns  sine 
die  this  weekend,  hopefully,  we  will  not 
return  until  Monday.  January  21. 

In  February,  the  Senate  would  recess 
at  the  close  of  business  on  Friday.  Febru- 
ary 8.  to  and  Including  Sunday.  Febru- 
ary 17  The  Senate  would  return  at  noon 
on  Monday. 

In  March,  the  Senate  would  take  off 
the  15th.  16th,  17th.  and  18th.  which 
would  be  at  the  conclusion  of  business  on 
Thursday,  the  14th  of  March.  The  Senate 
would  return  at  noon  on  Tuesday,  the 
19th  of  March. 

In  April,  the  Senate  would  stand  In  re- 
cess from  the  conclusion  of  business  on 
Frldaj-.  April  12,  until  noon  on  Monday. 
April  22. 

In  May,  the  Senate  would  stand  In  re- 
cess at  the  conclusion  of  business  on 
Thursday.  May  23,  until  noon  on  Tues- 
day. May  28. 

In  June  and  Jul>-,  the  Senate  would 
stand  in  recess  from  the  conclusion  of 
business  on  Friday.  June  28.  up  to  and 
including  Sunday.  July  7.  The  Senate 
would  return  at  12  noon  on  Monday 
Julys. 

Mr.  HUGH  SCOTT.  Mr.  President.  If 
the  distinguished  majority  leader  will 
yield,  as  he  has  stated,  we  have  discussed 
this — the  four  of  us — and  we  have  re- 
ceived the  benefit  of  the  views  of  a  large 
number  of  Members  of  the  Senate  re- 
gEutllng  recess  schedules  generally  from 
time  to  time.  They  have  been  discussed 
In  our  conferences,  and  the  present  recess 
schedule  Involves  the  addition  of  about 
5  legislative  days  to  the  usual,  normal 
recess  schedule,  the  purpose  being  to  pro- 
vide a  long  weekend  In  certain  months  in 
which  there  are  no  recesses  for  holiday 
purposes,  and  In  order  that  Senators  may 
make  plans  to  return  to  their  districts 
and  make  speaking  engagements  with- 
out having  to  cancel  them,  since  the 
average  Senator  cancels  about  as  many 
engagements  as  he  keeps,  under  the  pres- 
ent situation. 

Therefore,  it  seems  to  me  a  very  wise 
expedient  to  provide  certain  specific 
days.  In  the  sincere  hope  that  Senators 
will  do  their  best  to  be  present  on  the 
days  on  which  work  Is  scheduled,  so  that 
we  may  more  expedltlomly  accomplish 
the  business. 

With  that  In  mind.  I  tWnk  the  distin- 
guished majority  leader  haa  a  further 


report  to  make,  as  a  result  of  his  con- 
ference with  his  party,  a  report  with 
which  I  am  in  accord. 

Mr.  MANSFIELD.  May  I  say.  before 
we  get  to  the  point  of  the  Senator's  quee- 
tlon,  that  It  would  be  the  position  of  the 
joint  leadership — all  four  of  us — to  get 
together  sometimes  in  April  or  May  to 
consider  recesses  for  the  remainder  of 
the  year.  But  until  that  time,  this  Is  the 
best  the  joint  leadership  can  do  in  mak- 
ing this  announcement  to  the  Senate, 
and  notices  to  this  effect  will  be  sent  to 
all  Members  by  the  Joint  leadership. 

When  this  question  was  raised  in  the 
Democratic  policy  committee  yesterday, 
this  proposal  of  the  Joint  leadership 
carried  by  a  very  narrow  majority — that 
is.  in  the  beginning.  In  the  end.  It  was 
agreed  to  unanimously  by  the  pollcv 
committee. 

However,  the  policy  committee  laid 
down  certain  stipulations:  and  In 
response  to  the  question  raised  by  the 
distinguished  RepubUcan  leader.  I  should 
like  to  call  upon  the  distinguished  assist- 
ant majority  leader  at  this  time  to  state 
what  those  proposals  were. 

Mr.  ROBERT  C  BYRD.  I  thank  the 
distlng\ilshed  majority  leader. 

Before  I  state  the  proposals  to  which 
the  distinguished  majority  leader  has 
alluded,  I  ask  unanimous  consent  to  have 
printed  at  this  point  in  the  Record  a 
table  of  the  recesses,  excluding  Saturdays 
and  Sundays  that  have  been  had  this 
year. 

There  being  no  objection,  the  table 
was  ordered  to  be  printed  In  the  Rkcord. 
as  follows : 

Rbcksseb.  BxcxrorNo  Satuiuatb  kira  SxTNDATa 
Adjourn  from — 

Thurs  .  Jan  4-S«t  .  Jan.  6 i 

S»t.,  Jan.  e-Tuea.  Jan.  9 _ 

Tuea..  Jan.  g-Thura.,  Jan.  11 

Frl..  Jan.   13-Tues.,  Jan.  16 

Tuea..  Jan.  Ift-Thura..  Jan.  18 

Thura..  Jan.    18-Sat..  Jan.  20 

Sat..  Jan.  aO-Tuea.,  Jan.  33 

Wed.  Jan.  34-Pr1..  Jan.  M 

Mon  .  Jan.  2»-We<l.,  Jan.  31 

Uncolne     Blrtli<lay:     Thura,    Feb.    8- 

Thura..  Feb.  18 3 

Thura..  Feb.  15-Mon.,  Feb.  10 V.       1 


ThankaglTlng:      Wed,     Not.     ai-Mon., 
N07.  3fl I       1 


{adJotuTi- 


TbCal    daya    in 
niwit)  • 73 

Total    for    holiday    receaaes    and 
aummer  rec«« 39 


Thura..  Feb.  2a-Mon..  Feb.  30 1 

Frt.,  Slar.  3-Tues  .  Mar.  6 1 

Tuea..  Mar,  a-Thura..  Mar.  8 "_.       1 

Thura,  Max.  8-Mon..  Mar.    13 i 

Thurs..  Mar.  15-Mon  ,  B4ar.  19.111111111       1 

Tues..  Mar  20-Thurs..  Mar.  23 i 

Thura.,  Mar.  23-Mon..  Feb.  36 I 

Thura..  Mar.  29-Mon..  Apr.  3 " 

Frl.,  Apr.  6-Tuea.,  Apr.  10 

Eaater:   Wed  .  Apr    18-Mon..  Apr.  30.." 

Thura.,  May  3-Mon.,  May  7 

Thura  .   May   10-Mon.,  May  14 I 

Thura.  May   17-Mon..  May  31 1 

Memorial    Day:     Wed..    May    28-Tues. 

May   39.. J       3 

Independence  Day:   Sat..  June  30-MonI 

July    9 4 

Summer     receaa;     Frl..     Aug.     3-W«d^ 

Sept.  5 

Thura..  Sept.  13-Bi<on.,  Sept.  VlVJiZJiZZl 

Thura.,  Oct.  4-Mon..  Oct.  8 

Sat  .  Oct.  13-Tuee..  Oct.  16 "" 

Tuea..  Oct.  16-Thura..  Oct.  18 '"." 

Veteran*'    Day:    Thura.,    Oct.    18-Tuea 

Oct.  33.. 

Tuea.,  Oct.  33-Frl.,  Oct.  36 l'.'.'.'..Z' 

Frl..  Oct.   26-Tue8..  Oct.  30 Z 

Tuea  .  Oct   30-Frl..  Nov.  3 '_ 

Mon.,  Nov.  6-Wed..  Nov.  7 '.SS. 

Wed.,  Nov.  7-Frt.,  Nov.  9 "I"!"       1 

FrL,  Nov.  9-Tuea.,  Nov.  13 ""III       1 


21 
1 
1 
1 
1 

1 
3 

1 
3 
1 


Total  mlacellaneoua  reoeaaea 84 

Saturdaya  worked   (8) :  January  6-   Janu- 
ary 20.  June  30:  July  14:  July  38:   Septem- 
ber 23:   October  13:   and  December  1 
Sunday  worked  ( 1 ) :   December  i 

•  Excluding  Saturdaya,  Sundaya.  and  na- 
tional hoUdaya. 

Mr.  ROBERT  C  BYRD.  This  table 
would  show.  I  believe,  that  the  Senate 
this  year  has  taken  a  recess  of  1  week  for 
the  Lincoln  birthday  holiday.  1  week  for 
the  Easter  recess,  1  week  for  the  Inde- 
pendence Day  recess,  and  1  month  for 
the  August  recess,  and  Uiat  there  have 
been  a  total  of  73  days  during  the  year 
In  which  the  Senate  has  been  In  recess, 
not  counting  the  Saturdays  and  Sundays. 
For  holiday  recesses  and  the  summer  re- 
cess, there  were  39  days.  Total  miscel- 
laneous recesses  numbered  34  days. 

As  to  the  proposals  that  were  unani- 
mously agreed  to  m  the  Senate  Demo- 
cratic policy  committee,  they  are  as  fol- 
lows: 

One.  Once  a  measure  or  nomination  \s 
Placed  on  the  Senate  calendars,  no 
"hold"  wUl  be  honored  for  more  than  3 
days  of  session,  unless  it  is  a  committee 
"hold."  In  other  words,  a  "hold"  placed 
by  an  Individual  or  a  group  of  individ- 
uals—not represenUng  a  committee  posi- 
tion—will not  be  obUgatory  on  the  lead- 
ership for  more  than  3  days,  once  a  meas- 
ure or  nomination  is  placed  on  the  leg- 
islative or  executive  calendars 

Mr.  HUGH  SCOTT.  Before  the  Sena- 
tor continues,  would  the  Senator  rather 
finish,  or  shall  I  interrupt? 

Mr.  ROBERT  C.  BYRD.  The  Senator 
may  interrupt. 

Mr.  HUGH  SCOTT.  I  thank  the  dis- 
tinguished Senator. 

In  this  matter  of  "holds."  committee 
"holds."  for  the  purpose  of  clarifying  it 
and  to  have  some  leglslaUve  historj-  It 
would  be  my  understanding  that  a  com- 
mittee "hold"  is  distinguished  from  the 
individual  member  of  the  committee.  In 
the  first  place. 

Mr.  ROBERT  C.  BYRD  ExacUy 
Mr.  HUGH  SCOTT.  Second,  the  com- 
mittee "hold"  should,  according  to  cus- 
tom, be  a  notice  from  either  the  chair- 
man or  the  ranking  minority  member,  so 
that  It  would  be  representative  of  the 
views  of  one  side  or  the  other  or  of  the 
whole  committee  Would  that  be  correct? 
Mr.  ROBERT  C.  BYRD.  In  order  to 
be  representaUve  of  the  views  of  the 
whole  committee. 

Mr.  HUGH  SCOTT.  And  not  neces- 
sarily unanimously. 

Mr.  ROBERT  C.  BYRD.  The  thing  I 
hope  we  could  avoid  is  the  bringing  of 
pressure  by  committee  members  on  the 
ranking  minority  member  or  committee 
chairman  to  place  the  "hold"  for  them, 
which  "hold  '  would  not  otherwise  lie.  If 
lodged  by  an  Individual  member  for  more 
than  3  days. 

Mr.  HUGH  SCOTT.  That  Is  why  1 
think  It  should  represent  the  will  of  the 
committee  or  the  substantial  will  of  the 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42797 


committee,  rather  than  the  Intervention 
of  a  single  Senator  for  the  purpose  of 
urging  individual  Senators  to  do  what 
they  might  not  prefer  to  do.  We  are  try- 
ing to  avoid  having  "holds"  beyond  3 
days.  Is  that  the  intent? 

Mr.  ROBERT  C.  BYRD.  That  it  rep- 
resents the  viewpoint  of  at  least  a 
majority  of  the  members  of  the  com- 
mittee. 

Mr.  HUGH  SCOTT.  The  majority. 

Mr.  ROBERT  C.  BYRD.  On  occasion 
I  have  gone  to  a  Senator  to  ask  about  a 
"hold"  on  a  bill  only  to  find  that  the 
Senator  knew  nothing  about  It;  that,  in- 
deed. It  was  a  staff  member  who  had 
placed  a  "hold"  on  the  bill  on  behalf  of 
the  Senator,  and  the  Senator  was  en- 
tirely unaware  of  it. 

Mr.  HUGH  SCOTT.  Mr.  President,  will 
the  Senator  yield  further? 

Mr.  ROBERT  C.  BYRD.  I  yield. 

Mr.  HUGH  SCOTT.  The  individual 
Senator  has  the  right  under  the  rules,  as 
I  understand  them,  to  request  a  "hold" 
for  not  more  than  3  days,  and  all  we  are 
doing  here  is  applying  the  rules  of  the 
Senate.  It  that  the  case? 

Mr.  ROBERT  C.  BYRD.  No.  there  Is 
no  riile  of  the  Senate  on  "holds,"  but 
there  has  been  a  practice  of  honoring 
them. 

Mr.  HUGH  SCOTT.  A  practice  In  the 
Senate  that  "holds"  wlU  be  honored  for 
3  days.  But  there  is  a  statute  that  a 
3-day  notice  on  bUls  can  only  be  waived 
by  the  majority  leader  and  the  minority 
leader.  Is  that  correct? 

Mr.  ROBERT  C.  BYRD.  That  Is  cor- 
rect, but  that  Is  entirely  different  from 
the  situation  involving  a  "hold."  The 
leadership  here  Is  trying  to  get  away 
from  having  to  honor  a  "hold"  on  a  bill. 
sometimes  the  "hold"  being  insisted 
upon  for  a  week.  2  weeks.  3  weeks,  a 
month,  or  6  weeks;  and  In  order  to  ex- 
pedite the  legislative  process,  it  was 
thought  by  the  policy  committee,  if  we 
could  have  an  understanding,  that  here- 
after a  "hold"  placed  by  any  individual 
or  any  group  of  Senators  would  not  be 
recognized  longer  than  3  days,  it  would 
be  helpful. 

Mr.  JAVITS.  Mr.  President,  will  the 
Senator  yield? 

Mr.  ROBERT  C.  BYRD.  I  yield. 

Mr.  JAVTTS.  There  is  still  one  prob- 
lem that  Is  not  dealt  with,  and  that  Is 
the  problem  of  the  minority  of  a  com- 
mittee. The  ranking  member  on  our  side 
has  to  think  about  that,  and  for  this 
reason.  If  a  minority  of  the  committee 
wishes  to  make  some  determined  opposi- 
tion to  action  of  the  majority,  It  needs  an 
opportunity  to  do  that,  and  It  cannot  be 
rushed.  This  does  not  mean  an  in- 
ordinate time  but  an  Intermediate  time. 
Therefore.  I  respectfully  suggest  to  the 
leadership  that  they  deal  with  that 
problem,  perhaps  not  this  minute  or 
today,  but  It  is  a  problem 

I  say  that  as  a  ranlur.R  nieir.ber  of  a 
number  of  committees  where  occasionally 
we  get  very  hot  issues.  I  would  like  to 
give  an  example  On  the  mlnimu.Ti  wape 
bill  a  minority  of  the  minority  had  its 
own  bill  and  this  presented  quite  a  prob- 
lem to  the  minority  Itself  So  I  would 
suggest  a  longer  period 
As  there  Is  no  specified  period  for  a 


committee,  suppose  a  majority  of  the 
committee  wants  to  hold  the  bill  for  4 
months,  6  months,  or  a  year  Obviousiy 
that  is  not  what  Is  contemplated.  Fi- 
nally, there  should  be  an  understand- 
ing of  a  minority  that  wants  to  be  or- 
ganized as  a  minority. 

Mr.  MANSFIELD.  Mr.  President,  if 
the  Senator  will  yield,  some  considera- 
tion should  be  given  to  the  Senate  and 
the  leadership.  If  we  are  going  to  op- 
erate on  the  basis  of  this  kind  of  recess 
schedule,  we  will  have  to  tighten  up 
the  proceduie  imder  which  we  operate. 
For  example,  the  first  bill  on  the 
calendar.  Calendar  No.  29,  S.  22.  was  re- 
ported on  February  15.  It  still  has  a  hold 
on  It.  This  is  outrageous  and  the  com- 
mittee should  not  report  a  bill  unless 
they  Intend  to  act  on  it.  In  other  words, 
they  should  not  report  it  out  of  com- 
mittee Just  to  help  out  a  Member  back 
home.  If  a  committee  reports  a  bill.  It 
should  be  considered  and  not  held  up 
and  delayed.  As  a  general  rule,  we  like 
this  sort  of  procedure. 

Mr.  JAVITS.  I  thoroughly  agree  with 
the  leader.  I  am  suggesting  that  If  we 
are  trying  to  codify  this  situation,  this 
is  an  added  matter  to  which  the  leader- 
ship should  fTive  consideration. 

Mr.  ROBERT  C.  BYRD.  The  problem 
arises  out  of  a  definition  of  minority, 
and  whether  It  is  a  minority  of  one,  two, 
or  three  or  more. 

Mr.  JAVITS.  It  means  the  minority  of 
the  committee.  I  gather  that  when  the 
Senator  says  "committee  hold."  he  means 
the  committee  that  reported  the  bill,  or 
another  committee  that  says  It  has  a 
direct  interest.  When  I  speak  of  minority 
I  mean  the  minority  on  a  legislative  com- 
mittee In  toto.  and  the  leadership  will 
have  to  think  through  what  that  means, 
however  the.v  want  to  do  it. 

Mr.  ROBERT  C.  BYRD.  I  am  sure  the 
leadership  Is  going  to  be  reasonable  at  all 
times  but  It  is  recognized  we  are  going 
to  have  to  have  .'^ome  standard  around 
which  we  can  rally  In  order  to  prevent 
a  small  minority — often  only  one  Sen- 
ator— from  holding  up  a  nomination  or 
bill,  tlius  fru.^tratlnp  the  leadership  and 
obstructing  the  letrislatlve  process. 
Mr  JAVITS  I  agree, 
Mr  ROBERT  C  B^TID.  Of  course,  the 
minority  alway.s  ha.<^  the  rules  of  the  Sen- 
ate for  protection  and  they  can  rely  on 
the  ru!e-s  which  provide  for  extended 
debate 

Mr  JAVTTS  When  the  Senator  speaics 
of  majority  I  am  eno'ogh  of  a  lawj-er  to 
know  that  many  people  who  holler  are 
those  whi:>se  ox  is  being  gored.  But  the 
Democrats  on  a  committee  can  also  take 
the  bit  in  their  teeth  I  only  suggest  that 
the  other  side  of  the  point  be  con.<;ldered, 
and  that  L'^  the  richts  of  the  total 
mlnonty  of  the  committee. 

Mr  M.A.NSFIELD  The  Senator  ha.':  a 
good  argument.  I  do  not  want  to  be  un- 
fair and  we  will  not  Impinge  In  any  way, 
shape,  or  form  on  the  rights  of  the 
minority  any  more  than  we  would  expect 
them  to  Impinge  on  our  rights  if  we  were 
the  minority. 

Mr  HUGH  SCOTT.  Mr  Pre.<:ident, 
will  the  Senator  yield  to  clarify  another 
point? 

Mr  ROBERT  C  BYRD  I  vleld. 


Mr  HUGH  SCOTT.  Under  our  prece- 
dents as  WTitten  m  the  books  we  have 
long  permitted  a  hold  by  a  Senator  or 
Senators  from  a  State  on  positions, 
duties,  or  nominations,  wherein  duties  of 
the  office  are  confined  entirely  within  the 
boundaries  of  the  State  Those  are  holds 
most  often  from  the  Committee  on  the 
Judiciar>-.  I  assume  that  precedent  will 
still  obtain,  which  is  knowx  as  congres- 
sional courtesy  or  something  of  the  sort. 
In  any  event,  we  have  sought  to  protect 
Senators  in  that  regard. 

Mr.  ROBERT  C  BVRD  The  distin- 
guished Republican  leader  is  correct  and 
that  would  be  the  intention  of  the  lead- 
ership on  this  side  oi  the  aisle,  speaking 
on  behalf  of  the  majority  leader  and  my- 
self—not to  impinge  on  that  rule  of  Sen- 
atorial courtesv. 

Mr,  M.^NSFIELD,  Correct. 

Mr.  ROBERT  C.  ^YBH.  No.  2.  Tb« 
leadership  Is  not  to  be  under  an  obliga- 
tion to  avoid  scheduling  matters  merely 
to  accommodate  a  Senator  or  Senators 
who  want  to  vote  thereon  or  wlio  have 
amendments  or  motions  In  relation 
thereto,  but  who  cannot  be  present  for 
the  offering  of  such.  Such  amendments 
and  motions  can  be  offered  by  other 
Senators  on  behalf  of  the  "  absent 
Member. 

Mr.  HUGH  SCOTT.  I  think  that  is  an 
excellent  provision.  We  all  know  what 
occasions  difficulties  in  scheduling  legis- 
lation, and  that  is  the  engagements  of 
Senators   away  from  Waslungton. 

I  do  not  want  to  be  partial  about  it. 
because  we  have  all  had  rx:casion  xa  be 
away  from  the  Senate  for  manifold  rea- 
sons, but,  for  example,  if  some  Senator 
has  taken  on  the  commitment  to  make 
a  speech  for  an  honorarium  2,000  raiies 
awav  or  500  miles  away  and  an  important 
measure  is  coming  up  in  which  he  is 
interested.  I  think  he  ha.'=  to  make  a 
choice  between  his  personal  desires  to 
fulfill  tiie  engagement  and  his  ob'.lga- 
tion  as  a  Senator  to  be  here  and  vote,  or 
take  the  risk  for  not  being  here 

I  ani  bringing  up  this  point  because.  If 
we  leave  it  too  general,  and  if  Senators 
do  not  read  the  Record,  it  may  escape 
their  attention  the  point  we  are  making. 
But  I  think  the  leaders  .^.hould  mxiintam 
their  position  that,  having  enabled  Sen- 
ators to  take  this  special  recess,  havmg 
enabled  Senators  to  be  solicited  to  make 
speeches,  a  Senator  knows  what  day?;  we 
are  not  going  to  be  here  and  what  days 
we  are  going  to  be  here,  and  if  he  makes 
an  engagement — indeed.  I  must  apply 
tiii.s  to  mj'self— he  will  have  received  the 
choice  of  being  impaled  on  tiie  horns 
of  a  dilemma — persona]  desire  or  per- 
sonal interest  on  one  hand  and  Senate 
obligation  on  the  other. 

I  think  we  ought  to  lay  it  on  the  line 
here  that  we  are  going  to  have  to  live  up 
to  what  we  undertake  to  do  If  Senators 
want  thas  recess  to  "hold,'"  then  Sen- 
at/ors  ought  to  be  here  '^r  take  the  burden 
that  co.mes  fro.m  not  being  here. 

-Mr  P.A,STORE  Mr.  President,  will  the 
Senator  yield'' 

Mr  HUGH  .SCOTT.  I  yield. 
Mr  P.^STGRE  I  would  hope  we  would 
not  send  the  word  abroad  that  this  recess 
period  is  being  used  for  the  purposes 
of  Senators  making  speeches  for 
honorariums. 


iJTys 


CONGRESSIONAL  RECORD  —  SEN  ATT 


December  20,  1973 


Mr.  HUGH  SCOTT.  I  think  that  Is  very 
rare  as  compared  to  other  engagements. 
Mr.  PASTORE.  The  point  I  want  to 
make  is  that  we  are  living  in  very  trou- 
bled times  and  we  need  to  know  what 
people  back  home  feel  and  what  their 
problems  are.  I  think  the  time  has  come, 
if  this  is  going  to  be  a  job  around  the 
calendar — and  surely  it  is — that  we 
ought  to  be  given  a  respite  once  in  a 
while,  not  a  vacation,  but  merely  an  op- 
portunity to  go  back  and  serve  our  con- 
stituents, to  learn  what  is  going  on 
back  home;  that  we  use  it  for  that  pur- 
pose and  to  make  speeches  in  our  State. 
That  was  the  discussion  in  the  policy 
committee. 

I  would  hope  that  this  would  not  be 
interpreted  as  being  a  vacation,  because 
some  of  us  when  we  go  home  work  much 
harder  than  when  we  are  here.  That  Is 
pert  of  our  job — to  respond  to  many  peo- 
ple. I  get  letters  every  day  asking,  "When 
are  you  going  to  be  home.  Mr.  Pastore? 
I  want  to  see  you.  I  want  to  talk  over  a 
problem  with  you."  This  will  be  useful 
for  that  purpose. 

Mr.  MANSFIELD.  Mr.  President.  If 
the  Senator  will  yield  briefly,  that  was 
gone  into  quite  extensively  in  the  policy 
committee.  The  main  purpose  of  these 
additional  days  was  to  give  Senators  a 
chance  to  go  home  and  meet  their  own 
people  Some  of  us  come  from  big  States. 
Some  of  us  And  It  hard  to  get  there.  I 
would  say  it  is  even  harder  for  the  Joint 
leadership.  This  would  give  us  a  chance 
to  00  home,  not  as  a  vacation,  because 
home  is  not  a  vacation  land  any  more. 
The  people  want  to  see  us.  They  want  to 
talk  to  us.  They  want  to  get  our  views. 
They  are  going  to  find  us  one  way  or  the 
other,  which  is  all  right.  We  want  to  give 
Senators  a  chance  to  schedule  ahead  so 
they  can  go  home  and  meet  their  people. 
Mr.  HUGH  SCOTT  It  Is  my  observa- 
tion, if  the  Senator  wUl  ylelc*.  that  Sen- 
ators work  much  harder  at  home  than 
they  do  here,  because  It  Is  a  day  and 
night  job.  People  will  embrace  you  on 
the  streets,  in  their  homes,  at  their 
meetings  where  one  goes,  and  one  Is  not 
only  operating  as  a  service  agency  but 
he  is  also  maintaining  a  sort  of  walking 
Gallup  poll. 

I  think  It  was  Anteas  who  found  every 
time  he  touched  the  Earth,  his  strength, 
increa.'^ed  tenfold.  When  we  touch  the 
native  soil,  we  find  added  strength. 

Mr.  MANSFIELD.  I  recall  one  time 
when  I  wa3  down  In  the  Big  Hole  Basin 
In  Montama.  I  was  about  50  miles  from  a 
phone,  but  some  Montanans  I  know  were 
looking  for  me  to  talk  to  me.  They  found 
me  then  on  another  occasion,  I  was  in 
Carter  County.  I  left  Ekalaka  to  go  across 
the  road — 75  miles — It  was  not  much  of  a 
road — to  Boyd,  and  there  was  a  cfir  be- 
hind me.  I  saw  the  dust  elU  the  way.  I 
wondered  why  the  car  was  going  so  fast 
and  staym6  so  close.  When  I  stopped  for 
gas — you  could  get  gas  In  those  days — 
this  car  stopped.  They  said : 

We  have  be«n  following  you  from  Alzad* 
to  Kkfclalta  and  down  to  Boyd.  We've  covered 
175  miles  trying  to  reach  you.  We  want  you 
to  get  some  niral  telephones  for  us. 

I  said: 

IT  you  have  come  this  far  and  chased  me 
that  distance,  IX  it's  the  last  thing  I  do  I  wUl 
ge:  the  telephones. 


They  did.  but  It  was  3  years  later. 
Mr.    HUGH    SCOTT.    The    Senator 
makes  an  Interesting  point. 

Mr.  ROBERT  C  BYRD.  May  I  say  to 
the  Republican  leader  that  his  interpre- 
tation of  the  Intent  of  this  proposal,  as 
he  explained  It  just  prior  to  the  Inter- 
jection by  the  Senator  from  Rhode  Is- 
land (Mr.  Pastore),  precisely  stated  the 
intent  of  the  proposal. 

So  often  the  leadership,  in  an  attempt 
to  get  a  unanimous-consent  agreement, 
has  been  told  that  a  Senator  wsis  away 
from  the  Senate  for  2  or  3  days  or  the 
rest  of  the  week  on  a  speaking  engage- 
ment, and  he  had  &i\  amendment  to  the 
bUl.  Consequently,  we  could  not  take  that 
measure  up.  It  Is  to  avoid  that  kind  of 
burden  on  the  leadership,  that  the  pro- 
posal Is  offered,  so  that  in  the  future,  if  a 
Senator  has  amendments  and  he  Is  away, 
he  can  get  someone  else  to  offer  the 
amendments,  and  the  leadership  on  both 
sides  of  the  aisle  cannot  be  thus  pre- 
vented from  expediting  the  legislative 
process,  and  will  not  be  asked  to  wait  for 
a  Senator,  who  wants  to  vote  on  the  bill 
or  offer  an  amendment,  to  get  back  Into 
town  before  the  Senate  can  take  up  the 
matter  and  dispose  of  it. 

Mr.  HUGH  SCOTT.  Mr.  President.  If 
the  Senator  will  yield  further— and  I  will 
not  detain  him  needlessly — we  have  often 
had  meetings  in  the  cloakroom  with  six 
or  eight  Senators  in  an  attempt  to  fix 
a  time  limitation  on  a  bill,  tind  we  may 
be  delayed  as  much  as  2  weeks  in  bring- 
ing the  bill  up  because  among  the  she  or 
eight  Senators,  one  will  say.  "I  cannot 
be  here  Monday."  One  will  say  "Tues- 
day." And  It  runs  the  gamut  until  there 
is  no  day  on  which  we  can  have  a 
limitation. 

Mr.  ROBERT  C.  BYRD.  Yes,  and  the 
third  one  is  in  Africa  or  Asia,  and  the 
fourth  one  has  present  a  staff  member 
who  says  the  Senator  Ls  away. 

Mr.  HUGH  SCOTT.  Or.  as  the  Senator 
from  Rhode  Island  says,  he  Is  more  apt 
to  be  home. 

Mr.  ROBERT  C.  BYRD.  Yes. 
Mr.  NELSON  subsequently  .said:  Mr. 
President,  may  I  ask  two  questions  re- 
specting the  rules  that  were  just  being 
discussed?  The  distingul-shed  Senator 
from  West  Virginia  stated  that  a  Mem- 
ber may  file  a  '  hold  '  for  not  to  exceed 
3  days.  Once  that  happens  by  any  Mem- 
ber, does  that  exhaust  the  right  of  all 
other  99  Members  to  file  "holds.  '  or  can 
successive  '"holds"  be  filed  for  3  days? 

Then  the  second  question 

Mr.  ROBERT  C.  BYRD  If  the  Senator 
will  withhold  that,  I  think  the  Intent  of 
the  rule  Is  that  the  initial  "hold"  ex- 
hausts, as  far  as  the  leadership  is  con- 
cerned, the  right  of  any  other  Member 
to  place  a  further  "hold  *  on  the  bill,  be- 
cause otherwise  the  intent  of  the  pro- 
posal could  be  gotten  around  by  a  suc- 
cessive number  of  Senators  placing  suc- 
cessive holds  on  a  measure. 

Mr.  NELSON  Mr.  President,  when  the 
distinguished  Senator  refers  to  the  right 
of  a  committee  to  file  a  hold,  which  I 
Interpret  to  be  indefinitely,  does  that  ap- 
ply only  to  legrislatlon  that  came  out  of 
that  respective  committee,  or  does  it  ap- 
ply to  legislation  that  may  come  from 
any  "ommittee'' 

Mr.  ROBERT  C  BYRD.  Mr.  President, 


if  I  may  have  the  attention  of  the  dis- 
tinguished majority  letider  on  this  mat- 
ter, because  I  want  to  know  if  he  Joins 
me  In  this  feeling,  I  imagine  that  this  is 
something  that  the  leadership  would 
have  to  determine  based  on  each  situ- 
ation as  it  arises. 

There  are  difficult  jurisdictional  prob- 
lems that  seem  to  be  increasing  around 
here.  It  may  very  well  be  that  the  leader- 
ship on  both  sides  of  the  aisle,  certainly 
if  the  committee  of  original  jurisdiction 
had  already  released  its  hold  on  the  bill, 
would  want,  depending  upon  the  circum- 
stances Involved,  to  at  least  consider  the 
request  of  another  committee  for  a  sec- 
ond "hold"  if  there  were  a  serious  juris- 
dictional question.  Otherwise,  it  should 
only  be  legitimate  if  filed  by  the  commit- 
tee that  reported  the  bill. 

Mr.  HUGH  SCOTT.  Mr.  President.  I 
would  think  that  the  intent  here  would 
be  that  the  hold  be  placed  by  the  com- 
mittee having  the  bill.  However,  in  the 
event  of  a  jurisdictional  dispute,  it  may 
come  from  a  committee  contesting  juris- 
diction or  asking  for  coordinate  or  col- 
lateral jurisdiction  for  the  purpose  of 
considering  the  same  bill. 

Mr.  MANSFIELD.  Mr.  President,  I 
will  agree  with  what  the  two  leaders 
have  just  said.  I  can  see  things  like  that 
happening.  Pour  committees  here  claim 
jurisdiction  over  environmental  affairs. 
If  a  bill  were  reported  out  by  a  commit- 
tee and  another  committee  said  that  it 
hsid  some  jurisdictional  authority  over 
it,  the  leadership  would  give  that  com- 
mittee's request  fair  consideration.  We 
think  that  is  the  only  way  in  which  to 
do  It. 

Mr.  NELSON.  It  would  concern  me  If 
a  committee  could  by  majority  action, 
or  whatever  the  rule  might  be,  put  a  hold 
on  any  kind  of  legislation  unrelated  to 
any  jurisdiction  it  has. 

Mr.  MANSFIELD  No.  There  would 
have  to  be  a  relationship 

Mr  HUGH  SCOTT.  Mr.  President,  it 
reminds  me  of  the  words  of  a  poem 
which  go  as  follows: 

Seven  cities  warred  for  Homer  being  dead: 
Who  living  had  no  naofe  to  shroud  his  head. 


MESSAGE  FROM  THE  HOUSE 

A  message  from  the  House  of  Repre- 
sentatives by  Mr.  Berry,  one  of  its  read- 
ing clerks,  announced  that  the  House  had 
passed,  without  amendment,  the  joint 
resolution  fS.J.  Res.  182)  extending  the 
dates  for  the  transmission  of  the  1974 
Economic  Report  and  the  report  of  the 
Joint  Economic  Committee. 

The  message  also  announced  that  the 
House  had  agreed  to  the  amendment  of 
the  Senate  to  the  bill  (H,R.  8529)  to  im- 
plement the  shrlmp-flshlng  agreement 
with  Brazil. 

The  message  further  announced  that 
the  House  had  agreed  to  the  report  of  the 
committee  of  conference  on  the  dLsagree- 
Ing  votes  of  the  two  Houses  on  the 
amendments  of  the  Senate  to  the  bill 
(H.R.  11771)  making  appropriations  for 
foreign  assistance  and  related  programs 
for  the  fiscal  year  ending  June  30.  1974, 
and  for  other  purposes;  that  the  House 
receded  from  Its  disagreement  to  the 
amendments  of  the  Senate  numbered  36. 
37,  44,  48,  and  51  to  the  bill  and  concurred 


December  20,  1973 


CONGRESSIONAL  RECORD— SENATE 


42799 


therein ;  and  that  the  House  receded  from 
Its  disagreement  to  the  amendments  of 
the  Senate  numbered  15,  38,  53,  and  54  to 
the  bill  and  concurred  therein,  severally 
with  an  amendment,  in  which  it  re- 
quested the  concurrence  of  the  Senate. 
The  message  also  announced  that  the 
House  had  agreed  to  the  report  of  the 
committee  of  conference  on  the  disagree- 
ing votes  of  the  two  Houses  on  the 
amendments  of  the  House  to  the  bill 
(S.  1983)  to  provide  for  the  conservation, 
protection,  restoration,  and  projjagatlon 
of  threatened  and  endangered  species  of 
flsh,  wildlife,  and  plants,  and  for  other 
purposes. 

NATIONAL   FLOOD   INSURANCE 
PROGRAM 

Mr.  MANSFIELD.  Mr.  President.  I  ask 
that  the  Chair  lay  before  the  Senate  the 
message  from  the  House  on  H  R.  8449. 

The  PRESIDING  OFFICER  laid  be- 
fore the  Senate  the  following  message 
from  the  House  of  Representatives; 

Resolved,  That  the  House  agree  to  the 
amendment  of  the  Senate  to  the  bUI  (HJl. 
8449)  entitled  "An  Act  to  expand  the  na- 
tional flood  Losurance  program  by  substanti- 
ally increasing  limits  of  coverage  and  total 
amount  of  insurance  authorized  to  be  out- 
standing and  by  requiring  known  flood-prone 
communities  to  participate  in  the  program, 
and  for  other  purposes",  with  the  following 
amendment : 

Strike  out  title  IIT  of  the  Senate  engrossed 
amendment  in  the  nature  of  a  substitute. 

Mr.  MANSFIELD.  Mr.  President,  I 
move  that  the  Senate  concur  in  the 
amendment  of  the  House  to  the  amend- 
ment of  the  Senate. 

The  motion  was  agreed  to. 


MANPOWER  DEVELOPMENT  AND 
TRAINING  ACT  OF  1973— CONFER- 
ENCE REPORT 

Mr.  MANSFIELD.  Mr.  President,  I 
submit  a  report  of  the  committee  of  con- 
ference on  S.  1559,  and  ask  for  Its  Im- 
mediate consideration. 

The  PRESIDING  OFFICER  (Mr. 
DoMENici).  The  report  will  be  stated  by 
title. 

The  legislative  clerk  read  as  follows: 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendment  of  the  Senate  to  the  bill  (S. 
1559)  to  provide  financial  assistance  to  en- 
able State  and  local  governments  to  assume 
responsibilities  for  job  training  and  com- 
munity services,  and  for  other  purposes, 
having  met.  after  fuU  and  free  conference. 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Houses  this  report, 
signed  by  a  majority  of  all  the  conferees. 

The  PRESIDING  OFFICER.  Is  there 
Objection  to  the  consideration  of  the  con- 
ference report? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  report. 

(The  conference  report  is  printed  in 
the  House  proceedings  of  the  Conches- 
sioNAL  Record  of  December  18,  1973,  at 
pp.  42206-42220.) 

Mr.  NELSON.  Mr.  President,  the  con- 
ference report  on  the  Comprehensive 
Employment  and  Training  Act  of  1973 
passed  the  House  of  Representatives  to- 
day by  a  vote  of  330  to  33. 


The  conferees  for  the  House  unani- 
mously signed  the  conference  report.  The 
conferees  for  the  Senate  imanimously 
signed  the  conference  report.  So  far  as  I 
know,  there  Is  no  significant  dispute  on 
the  adoption  of  this  conference  report. 

Mr.  President,  the  conference  report 
on  the  Comprehensive  Employment  and 
Training  Act  of  1973  now  before  the 
Senate  is  the  culmination  of  nearly  4'^ 
years  of  effort  on  the  part  of  both  Houses 
of  the  Congress  and  of  the  administra- 
tion to  reach  an  agreement  on  compre- 
hensive job  training  and  employment 
legislation. 

It  has  been  a  bipartisan  effort  to 
achieve  responsible  legislation  for  turn- 
ing the  basic  responsibility  for  operating 
Job  training  programs  over  to  State  and 
local  governments.  I  believe  that  this  Is 
legislation  of  which  we  can  be  justifiably 
proud. 

This  comprehensive  manpower  legisla- 
tion Is  a  major  step  forward  because  It 
takes  the  Nation's  job  training  programs 
out  of  the  redtape  of  the  Federal  bu- 
reaucracy and  turns  these  responsibili- 
ties over  to  State  and  local  governments, 
which  understand  best  how  to  meet  the 
needs  of  their  own  people.  With  State 
and  local  governments  that  know  their 
own  situations  best  now  in  charge,  man- 
power programs  around  the  country  are 
bound  to  improve. 

On  July  24,  the  Senate  passed  the  Job 
training  legislation  which  is  the  basis 
of  this  conference  agreement.  In  the 
Labor  and  Public  Welfare  Committee,  we 
developed  a  bill  which  received  broad 
support  all  over  the  Nation,  In  large  part 
because  it  provided  substantial  roles  for 
State  and  local  governments.  This  sup- 
port led  to  the  action  of  the  Senate  pass- 
ing the  bill  by  an  overwhelming  vote  of 
88-5  without  amendment. 

In  the  p€ist  few  months,  there  has  been 
substantial  consultation  between  the 
Congress  and  the  executive  branch  on 
an  acceptable  bill.  On  the  basis  of  those 
discussions,  the  House  of  Representatives 
passed  Its  version  of  the  manpower  bill 
on  November  28. 

PFBLIC    SERVICE    EMPLOTMENT 

One  of  the  principal  Issues  between 
Congress  and  the  executive  branch  was 
public  service  emplovment.  The  Senate 
passed  a  separate  piece  of  legislation  ex- 
tending the  Emergency  Employment  Act 
of  1971,  at  the  previous  authorization 
level  of  $1,250,000,000.  That  bill,  the 
Emergency  Employment  Amendments  of 
1971,  passed  the  Senate  on  July  31  by  a 
vote  of  74  to  21.  Under  the  nationwide 
program,  some  200.000  jobs  could  be  pro- 
vided so  long  as  the  nationwide  rate  of 
unemployment  remains  above  4*^  per- 
cent. 

The  House  did  not  proceed  to  act  on 
tlie  Emergency  Employment  Amend- 
ments of  1973.  because  the  administra- 
tion opposed  extending  the  nationwide 
public  service  employment  program. 

During  the  past  few  months,  the  House 
Education  and  Labor  Committee — both 
Democrats  and  Republicans — developed 
a  bipartisan  compromise,  merging  into 
the  comprehensive  manpower  bill — 
which  was  essentially  similar  to  the  man- 
power bill    (S.    1559)    the   Senate  had 


passed — ^that  part  of  the  public  service 
employment  program  making  jobs  avail- 
able for  areas  of  substantial  unemploy- 
ment. The  House  bill  and  the  pending 
conference  report  do  not,  however,  in- 
clude the  nationwide  public  service  em- 
ployment program  as  distinct  from  the 
program  for  areas  of  substantial  unem- 
ployment. 

When  the  Senate  agreed  to  go  to  con- 
femce  with  the  House,  we  did  send  to 
conference  that  part  of  the  public  service 
employment  legislation  dealing  with 
areas  of  substantial  unemployment. 

In  this  connection,  the  Senate  version 
authorized  such  sums  as  may  be  neces- 
sary- for  public  service  employment.  The 
House  bill  reserved  $250  million  in  this 
fiscal  year  and  $500  million  for  fiscal  year 
1975  for  public  service  employment  in 
areas  of  substantial  unemployment. 

Under  the  compromise,  there  would  be 
a  reservation  for  public  service  employ- 
ment in  areas  of  substantial  unemploy- 
ment of  not  less  than  $250  million  for 
this  fiscal  year  and  not  less  than  $350 
mUUon  for  fiscal  year  1975.  In  addition, 
the  bill  authorizes  the  appropriation  of 
such  sums  as  may  be  necessary  for  the 
public  service  employment  title  for  each 
of  fiscal  years  1974  through  1977. 

With  respect  to  the  definition  of  areas 
of  substantial  unemployment,  the  House 
bill  had  specified  local  areas  with  a  7- 
percent  rate  of  unemployment,  whereas 
the  Senate  bill  retains  the  existing  law's 
6-percent  rate  for  such  definition. 

The  conference  agreement  compro- 
mises that  difference  by  defining  areas 
of  substantial  imemployment  as  those 
having  a  6 '-a -percent  rate  as  eligible  for 
the  funds  under  the  public  emplojTnent 
program— title  II  of  the  conference 
agreement. 

I  should  note  that  prime  sponsors  of 
manpower  funds  under  title  I  of  the  bill— 
whether  or  not  they  serve  areas  of  sub- 
stantial unemployment — have  the  dis- 
cretion to  use  general  manpower  funds 
for  public  service  employment.  That  is 
specifically  authorized  by  paragraph  (11) 
of  section  101  of  the  bill. 

PSIMZ     SPONSORSHIF 

The  conference  agreement  provides 
that  prime  sponsors  of  manpower  pro- 
grams shall  Include  States,  cities,  and 
counties  of  100.000  population,  and  com- 
binations of  units  of  genersd  local  gov- 
ernment Including  a  city  or  county  of 
100.000  population.  In  exceptional  cir- 
cumstances, the  Secretarj-  may  designate 
as  prime  sponsors  governmental  units 
having  a  smaller  population,  as  well  as 
a  limited  number  of  concentrated  em- 
ployment program  sponsors. 

The  conference  agreement  Is  similar 
to  the  Senate  bill,  except  that  the  Sen- 
ate bill  had  specified  that  counties 
would  need  to  have  a  population  of 
150.000  to  qualify  for  prime  sponsorship. 
The  conference  committee  accepted  the 
House  provision  making  counties  of  100.- 
000  as  well  as  cities  of  100.000  eligible 
to  be  prime  sponsors. 

pum    spoKsoas'    vulXsxhg    cottkczls 

An  important  part  of  the  conference 
agreement  Is  the  provision  for  prime 
sponsors  to  msuntain  planning  councils. 


CONGRESSIONAL  RECORD  —  SEN  ATE 


The  Senate  bill,  unlike  the  House  bUl 
that  went  into  conference,  required  prime 
sponsors — both  State  and  local — to 
maintain  planning  councils.  The  purpose 
of  these  councils  is  to  assist  the  mayor  or 
the  Oovemor  In  his  role  as  manpower 
prime  sponsor  by  recommending  program 
plans  and  basic  goals  and  policies,  as  well 
as  undertaking  to  coordinate  the  effec- 
tiveness of  manpower  programs.  The 
conference  agreement  makes  clear  that 
the  councils  are  advisory,  that  final  deci- 
sions on  its  recommendations  remain 
with  the  prime  sponsor.  The  prime  spon- 
sor— that  Is.  the  Governor  or  mayor  or 
county  executive — appoints  the  mem- 
bership of  the  council,  designates  the 
chairman,  and  provides  the  staff  serving 
the  council. 

In  appointing  the  membership  of  the 
council,  the  prime  sponsor  shall,  to  the 
extent  practicable,  appoint  members  who 
are  representative  of  the  client  commu- 
nity and  of  community-based  organiza- 
tions, the  employment  service,  education 
and  training  agencies  and  Institutions, 
business,  labor,  and.  where  appropriate, 
agriculture.  The  Senate  bill  had  specif- 
ically mentioned  community  action 
agencies  for  representation  on  the  coun- 
ciL 

The  House  conferees,  however.  Insisted 
upon  avoiding  the  naming  of  specific  or- 
ganizations   for    membership    on    the 
councU.  However,  it  is  the  understand- 
ing of  the  conferees  that  the  descriptions 
"client   community"   and    "community- 
based  organizations"  would  cover  those 
community  action  agencies  which  clearly 
represent  the  client  community  and  are 
commumty  based — which  would  be  the 
case  in  many  communities  around  the 
Nation-  The  term  "community-based  or- 
ganizations"  is   defined   In   section   601 
(a)(1)   of  the  conference  agreement  as 
meaning:  "organizations  which  are  rep- 
resentative of  communities  or  significant 
segments  of  the  communities  and  which 
provide  manpower  services — for  example, 
opportunities   Industrialization   centers. 
Jobs  for  Progress.  Mainstream  and  com- 
munity action  agencies."  In  some  com- 
munities, there  will  be  an  opportunities 
Industrialization    center    which    would 
qualify  as  a  community-based  organiza- 
tion. In  other  communities,  a  Jobs  for 
Progress — Operation  SER — center  would 
be  representative  of  the  community  or  a 
significant  segment  thereof  Mainstream 
would  be  appropriately  represented  on 
the  prime  sponsor's  planning  councU  In 


December  20,  197S 


many  areas. 

STATB     PLANNING     ROUt 

I  am  pleased  that  the  legislation  com- 
ing out  of  conference  retains  the  sig- 
nificant role  the  Senate  bill  provided  for 
State  manpower  planning  efforts. 

Special  attention  should  be  called  to 
section  105(a>(3)(A)  of  the  conference 
agreement.  This  provision  Is  designed  to 
emphasize  that  It  is  expected  that  prime 
sponsors  will  provide,  wherever  appro- 
priate, for  utilizing  existing  agencies,  in- 
cluding the  employment  service,  suid  vo- 
cational education,  as  well  as  community 
action  agencies.  Our  hope  and  expecta- 
tion is  that,  after  giving  due  considera- 
tion to  the  effectiveness  of  existing  serv- 
ices and  facilities,  local  prime  sponsors 
will  use  the  expertise  of  tho«e  agenclea 


which  have  had  experience  In  providing 
employment  and  training  services. 

As  a  former  Oovemor.  I  have  seen 
firsthand  the  need  for  statewide  coordi- 
nation and  planning — particularly  with 
respect  to  Federal  funds  going  Into  a 
State. 

The  Senate  bill  passed  last  July  con- 
tained a  set-aside  of  15  percent  of  the 
manpower  funds  for  State  planning  and 
model  programs — including  the  services 
of  State  agencies,  such  as  the  State  em- 
ployment service  and  vocational  educa- 
tion agencies 

On  the  State  role,  the  conference 
agreement  Is  a  compromise  which  leans 
substantially  in  the  Senate  bill's  direc- 
tion. The  Senate  bill  had  provided  a 
total  of  15  percent  for  the  State  and  the 
House  bill  up  to  1  percent  for  staffing 
the  State  Manpower  Services  Council. 
The  conference  agreement  provides  5 
percent  to  the  Governor  for  vocational 
education.  4  percent  for  other  State 
planning  and  demonstration  functions, 
and  1  percent  for  administrative  ex- 
penses for  the  State  Manpower  Services 
Council — a  total  of  10  percent. 

The  conference  agreement,  at  the  In- 
sistence of  the  House  conferees,  gave  the 
Secretary  the  function  of  providing 
financial  assistance  to  encourage  units 
of  local  governments  to  get  together  to 
form  combinations  for  purposes  of  prime 
sponsorship.  This  function  had  been  one 
for  the  States  under  the  Senate  bill.  Ac- 
cordingly, the  5  percent  set-aside  for 
the  purpose  of  encouraging  such  com- 
binations was  transferred  to  the  Secre- 
tary's account. 

rTTKDINO    AJfD    AIXOCATIONS 

The  legislation's  overall  authorization 
of  funds  is  such  sums  as  may  be  neces- 
sary for  all  manpower  programs  under 
the  act.  As  I  have  pointed  out.  the  con- 
ference agreement  does  provide  that  for 
this  fiscal  year — fiscal  year  1974 — not 
less  than  $250  million  Is  reserved  for  the 
public  employment  title  and  for  next 
fiscal  year— fiscal  year  1975— not  less 
than  $350  million  is  reserved  for  public 
employment. 

Aside  from  public  service  employment. 
Sl.550.000.000  is  expected  to  be  appro- 
priated for  manpower  programs. 

Out  of  the  total  funds  appropriated 
to  carry  out  the  legislation.  20  percent— 
$360  million  at  expected  levels  of  fund- 
ing—Is set  aside  for  the  special  Federal 
responsibilities  of  the  Secretary  includ- 
ing Job  Corps  and  special  programs  for 
Indians — which  would  receive  4  percent 
of  the  aUocatlons  to  prime  sponsors — 
and  migrant* — which  would  receive  5 
percent  of  the  allocations  to  prime  spon- 
sors.   The    remaining    80    percent — ex- 
pected to  be  about  $1,190.000,000 — Is  to 
be  used  for  title  I — Comprehensive  Man- 
power Services.  Out  of  the  title  I  fund- 
ing, 5  percent  goes  to  the  Oovemor  for 
vocational  education.  4  percent  for  the 
State's   planning   and   special   services, 
and  1  percent  of  the  amoimt  of  the  allo- 
cations to  prime  sponsors  is  available 
for  the  State  Manpower  Services  Coun- 
cil.  Up   to   5   percent   of   the   amounts 
available  for  title  I   of   the  leglslaUon 
may  be  used  by  the  Secretary  of  Labor 
to  encourage  combinations  of  units  of 
general   local   government   to   Join    to- 


gether as  a  single  prime  sponsor.  Ap- 
proximately 6  percent  of  title  I  funds 
remain  for  the  Secretary's  discretion. 
The  total  available  for  allocations  to 
prime  sponsors  under  title  I— at  current 
levels — would  be  approximately  $952 
million.  One  of  the  most  difficult  items  In 
the  conference  was  the  formula  for  allo- 
cating those  funds. 

The  Senate  bill  would  have  allocated 
funds  50  percent  on  relative  numbers  of 
unemployed  persons  and  50  percent  on 
relative  numbers  of  persons  below  the 
family  lower  living  standard  budget  of 
the  Bureau  of  Labor  Statistics.  However, 
all  prime  sponsors  would  have  been  held 
harmless  at  100  percent  of  their  fiscal 
year  1973  allocations  through  fiscal  year 
1976.  The  hold  harmless  provision  would 
have  ceased  to  be  effective  beginning  in 
fiscal  year  1977. 

The  House  bill  had  a  formula  for  allo- 
cating funds  using  50  percent  unemploy- 
ment and  50  percent  the  hold  harmless 
funding  level  In  the  preceding  year. 

The  compromise  reached  by  the  con- 
ference provides  that  50  percent  of  the 
amounts  allocated  shall  be  based  on  the 
hold  harmless  funding  level  for  the  pre- 
ceding year,  37^  percent  on  the  basis 
of  the  relative  number  of  unemployed 
persons,  and  121-2  percent  on  the  lower 
income  budget  level  of  $7,000 — which 
may  be  adjusted  for  cost  of  living  in- 
creases. In  addition,  the  Secretary  of 
Labor  shall  utilize  his  discretionary 
funding  to  assure  that  no  prime  sponsor 
receives  less  than  a  hold  harmless  level 
at  90  percent  of  the  preceding  fiscal 
year's  manpower  funding. 

Let  me  point  out  that,  under  section  3 
of  the  conference  agreement,  the  Secre- 
tar>-  of  Labor  Is  expected  to  continue 
financial  assistance  with  no  lessening  of 
manpower  support  while  the  new  price 
sponsorship  system  is  being  set  up.  The 
legislation  contemplates  that  the  new 
price  sponsorship  system  wUI  be  fully 
effective  by  July  1,  1974.  Existing  pro- 
grams under  the  Manpower  Development 
and  Training  Act  and  tlUe  I  of  the  Eco- 
nomic Opportunity  Act  will  continue 
through  the  end  of  fiscal  year  1974,  al- 
though some  new  starts  may  be  expected 
to  begin  Immediately  where  State  and 
local  governments  are  ready  to  go  ahead 
under  the  new  price  sponsorship  system. 

BACXOBOUND 

It  was  In  August  of  1969,  that  the 
administration  asked  for  legislation  to 
decentralize  control  and  planning  of 
manpower  training  progrsims. 

Congress  agreed  In  principle,  but  in- 
sisted that  public  service  employment 
Jobs  must  be  part,  of  the  comprehensive 
program. 

In  December  of  1970  a  well-designed 
piece  of  compromise  legislation  was 
vetoed.  It  was  the  fruit  of  months  of 
hearings,  markup  and  conference  ses- 
sions, incorporating  many  difficult  com- 
promises concerning  the  complex  inter- 
locking of  responalbllltlea  for  the  great 
variety  of  training  programs  at  the  Fed- 
eral. State,  and  local  level.  The  veto  was 
largely  over  the  public  service  employ- 
ment Issue. 

But  then,  in  July  of  1971.  with  the  na- 
tionwide rate  of  unemployment  reaching 
the  hlRh  -.eve!  of  6  percent,  the  Emer- 


Decemher  20,  1973 


CONGRESSIONAL  RECORD  —  SEN  ATE 


42801 


gency  Employment  Act  was  signed  Into 
law.  The  excellent  administration  of  that 
public  service  employment  program  at 
the  State  and  local  level  has  convinced 
many,  who  were  honestly  skeptical,  of 
the  practicality  and  desirability  of  pub- 
lic service  Jobs  programs  as  a  significant 
component  of  the  Nation's  manpower 
policies. 

Last  January  the  administration  did 
not  include  in  Its  budget  request  an  ex- 
tension of  the  Emergency  Employment 
Act. 

IMPACT  OF  DTZRGT  CRISIS 

However,  with  the  predicted  rise  in 
imemployment  during  the  coming  year, 
the  administration  has  now  accepted  an 
extension  of  public  service  employment 
for  areas  of  substantial  unemployment. 

I  note  that  according  to  the  New  York 
Times  of  December  12,  1973— the  ad- 
ministration "is  now  supporting  such  a 
plan — public  service  employment — be- 
cause of  fear  that  the  energy  crisis  will 
create  a  sharp  rise  In  joblessness." 

The  number  of  public  service  employ- 
ment jobs  provided  specifically  in  the  bill 
agreed  to  by  the  conferees  is  modest. 

With  not  less  than  $250  million  re- 
served for  this  fiscal  year  and  $350  mil- 
lion for  fiscal  year  1975  we  are  talking 
about  40,000  to  50,000  Jobs  when  the 
energy  crisis  may  cost  the  Nation  mil- 
lions of  jobs. 

Let  me  again  point  out,  however,  that 
the  Senate  provision  for  open-ended  au- 
thorizations for  public  service  employ- 
ment was  accepted  in  the  conference. 
Therefore  It  is  verj-  much  up  to  the  dis- 
cretion of  Congress  acting  upon  appro- 
priations to  determine  how  larpe  a  public 
service  employment  program  Is  needed. 

Estimates  of  the  employment  impact  of 
the  energy  crisis  are  so  varied  at  this 
point  that  estimating  what  we  will  need 
In  the  way  of  federally  subsidized  jobs  Is 
hazardous  Indeed. 

Estimates  of  the  rate  of  unemploy- 
ment vary  anywhere  from  our  present  4.7 
percent  to  8  percent.  Professor  Henry 
Wallick  of  Yale  University,  usually  con- 
sidered a  fairly  conservative  figure  and  a 
"senior  consultant"  to  Treasurv-  Secre- 
tar>'  George  Shultz.  according  to  the 
Washington  Star  newspaper,  is  expecting 
a  1.9  percent  decline  in  the  Gross  Na- 
tional Product  in  the  first  quarter  of 
1974,  and  unemplo.vment  rates  next  year 
as  high  as  6.3  percent. 

Even  more  crucial  than  the  rate  of 
unemployment  is  understanding  its  im- 
pact on  different  industries,  on  different 
geographlral  areas,  and  on  different  eco- 
nomic groups  in  the  Nation 

It  ha.^  .'^wmed  io  me  over  the  past 
v.eek>  that  not  nearly  enough  attention 
has  been  paid  to  the  unemployment  im- 
pact of  the  energy  crL^l.s  and  the  human 
cost  which  Jobles.'ine.ss  entails. 

It  is  one  thing  to  ask  people  to  sacrifice 
their  pleasure  and  conveniences  like 
plesisure  driving  and  to  wear  heavier 
clothes  in  order  t«  turn  down  the  ther- 
mostat Such  sacriflres  all  Americans  can 
and  win  make  willingly. 

It  is  another  thing  entirely  to  ask  a 
man  to  give  up  his  job, 

America  must  not  ask  men  and  women 
to  sacrifice  their  economic  lives  to  ease 
the  energy  crisis. 


Bearing  a  fair  share  of  the  general  in- 
convenience is  a  citizens  duty,  which 
nearly  all  will  gladly  perform. 

Giving  up  jobs  and  economic  self- 
suffldency  Is  quite  another  matter. 

The  first  thing  we  need  is  adequate 
information.  We  need  to  know  Just  how 
serious  the  crisis  in  jobs  is  going  to  be. 

We  need  to  know  exactly  which  in- 
dustries will  be  affected  and  to  what 
extent. 

We  need  to  know  exactly  which  region 
of  the  Nation  will  be  hurt  and  to  what 
extent. 

We  need  to  know  how  seriously  the 
poor,  who  already  lack  job  opportunities 
and  decent  pay,  will  be  affected. 

We  need  to  know  what  impact  Gov- 
ernment allocation  decisions  will  have 
on  these  questions. 

We  need  to  know  what  public  job 

creation   can   do   to   meet   the   crisis 

job  creation  through  title  n  of  the  Com- 
prehensive Employment  and  Training 
Act  of  1973  and  job  creaUon  under  other 
legislation. 

In  order  to  seek  answers  to  these  and 
related  questions,  I  intend  to  begin  hear- 
ings in  the  near  future  before  the  Senate 
Subcommittee  on  Employment,  Poverty, 
and  Migratory  Labor. 

We  win  be  asking  well  in  advance 
for  carefully  prepared  and  documented 
testimony  from  Federal  agency  officials, 
State  and  local  leaders,  union  and  busi- 
ness representatives  and  experts  from 
the  academic  community. 

We  will  also  attempt  to  provide  a 
forum  through  which  the  voice  of  the 
ordinary  American  can  reach  those  in 
a  position  to  take  action. 

And  upon  the  finding  of  those  hearings 
we  will  make  recommendations  for 
congresslMial  action  to  combat  unem- 
ployment. 

The  Nation  must  not  stand  by  and 
allow  such  unequal  sacrifice  as  Involun- 
tary unemployment  exacts. 

Mr.  President,  the  Senator  from  Rhode 
Island  (Mr.  Pell),  who  sponsored  an 
important  provision,  which  was  included 
in  the  Job  Training  Act,  as  passed  by  the 
Senate,  wishes  to  have  some  clarifica- 
tion about  that  provision. 

Mr.  PELL.  Mr.  President,  the  man- 
power bill  as  passed  by  the  Senate  In- 
cluded an  amendment,  which  I  offered, 
requiring  that  special  consideration  be 
given  to  job  training  programs  for  per- 
sons unemployed  as  the  result  of  a  ciosmg 
of  a  Federal  Government  facility  result- 
ing in  substantial  increases  in  unemploy- 
ment in  that  area. 

Would  the  chairman  of  the  Senate 
conferees  tell  me  of  the  action  taken  on 
this  provision — section  205(c>i6>  of  the 
Senate  bill? 

Mr.  NELSON  Mr,  Pre.sldent,  the  Sen- 
ator from  Rhode  Lsland  (Mr  Peld  has 
asked  the  question  as  to  what  happened 
in  the  manpower  conference  on  a  para- 
graph he  had  sponsored  in  the  mark- 
up of  the  Senate  Labor  and  Public  Wei- 
fare  Committee  regarding  defense  facili- 
ties. 

Senator  Pell's  provision  provided  that, 
among  special  responsibilities  which  the 
Senate  bill  required  the  Secretarj-  to 
carry  out,  that  he  "give  special  consid- 
eration to  Job  training  programs  serving 


individuals  who  are  imemployed  as  a  re- 
sult of  a  closing  of  a  facility  or  the  sub- 
stantial reduction  of  activities  at  a  fa- 
ciUty  of  the  UJ3.  Government  located  In 
a  labor  market  area  in  which  the  rate 
of  unemployment  for  that  labor  market 
area  has  increased  substantially  due  to 
the  imemployment  of  such  individuals." 
(Section  205(c)  (6)  of  S.  1559,  as  passed 
by  the  Senate.) 

Let  me'  explain  to  the  Senator  from 
Rhode  Island  that,  in  the  conference  on 
the  m.anpower  bill— which  involved  6 
days  in  conference  sessions— the  House 
conferees  were  adamant  against  what 
they  perceived  to  be  categorical  programs 
in  the  Senate  bill. 

Section  205(c)  of  the  Senate  bill  was 
one  of  the  parts  of  the  Senate  bill  they 
most  objected  to.  They  insisted  that  the 
Senate  conferees  drop  it  because  they 
interpreted  it  as  requiring  the  Secretary 
to  continue  to  provide  financial  assist- 
ance for  categorical  programs. 

However,  the  conferees  did  agree  that 
other  provislon.<: — phrased  to  cover  situ- 
ations more  generally— wo'ald  cover  the 
provisions  they  deemed  to  be  categorical. 

The  provision  mentioned  by  Senator 
Pell  is  one  of  those.  Senator  Pills 
amendment  refers  to  the  "closing  of  a 
facility  or  the  substantial  reduction  of 
activities  at  a  facility  of  the  U,S,  (gov- 
ernment," A  more  general  provision  the 
Senate  conferees  were  able  to  retain  au- 
thorizes "special  services,  when  required. 
for  middle-aged  and  older  men  and  wo- 
men. Including  recruitment,  placement. 
and  counseling  for  such  persons  who  are 
unemployed  as  a  result  of  the  closirig  of 
a  plant  or  factory  or  a  pe.Tnanent  large- 
scale  reduction  in  the  work  force  of  a 
locality"  (see.  304(a)(6)  of  the  confer- 
ence agreement) . 

The  provision  I  have  just  quoted  clear- 
ly covers  special  services  for  a  closing  or 
large-scale  reduction  In  the  work  force 
due  to  a  Government  facUity  closir^.  but 
It  also  cove.'^  other  sjch  closmes  or  work 
force  reductions  in  private  industry. 

In  addition.  let  me  point  out  that  the 
Pubhc  Emplov-ment  Program  in  title  n 
of  the  bill  will  provide  additional  fund- 
ing for  areas  of  substantial  unemploy- 
ment— those  areas  having  a  6-2-percent 
rate  of  unemployment  or  greater. 

Tlius.  public  employment  funds  vrill  be 
going  to  areas  where  the  rate  of  unem- 
plov-ment  has  Increased  substantially  due 
to  the  unemployment  of  individuals  who 
had  previously  been  employed  m  Gov- 
ernment facilities  such  as  defen.se  plants. 

So,  I  think  I  can  unequivocally  assure 
the  distinguished  Senator  from  Rhode 
Ls,land  that  when  section  205  r  was 
removed— the  section  which  contained 
the  provision  authored  by  the  Senator 
from  Rhode  Island— we  intended  and 
did  fully  cover  authority  provided  for  in 
the  Senator's  amendment  within  the 
language  that  I  have  read  concerning 
special  .services  for  these  w.ho  are  une.T:- 
ployed  as  a  result  of  the  closirig  of  a  plant 
or  factory  or  a  permEinent  large-scale 
reduction  In  the  work  force  of  a  l(5cality," 

So  we  have,  m  my  judgiiient,  retained 
language  clearly  meeUng  the  Intent  of 
the  a.-nendment  of  U:e  Senator  from 
Rhode  Island  Our  action,  I  think,  satls- 
factoniy  meets  the  problem  which  the 


42802 


CONGRESSIONAL  RECORD  —  SENATE 


December  20,  1973 


Senator  from  Rhode  Island  sought  to 
meet. 

Mr.  PELL.  Mr.  President.  I  thank  the 
Senator  from  Wisconsin  for  his  articu- 
late explaiation  and  the  assurances  he 
gives  me  that  the  bill  covers  the  situation 
Involving  those  workers  who,  through  no 
fault  of  their  own,  through  the  closing 
of  a  military  base  by  the  Federal  Gov- 
ernment, have  been  thrown  out  of  work. 
While  obviously  I  wish  that  the  orig- 
inal language  had  been  retained.  I  un- 
derstand the  problems  that  the  chairman 
of  the  conferees  faced  In  conference.  I 
appreciate  very  much  his  assurance  that 
the  intent  of  my  amendment  has  been 
retained  in  the  bill. 

I  cannot  say  that  I  am  compbtely 
pleased  with  the  actions  of  the  confer- 
ence on  this  provision.  It  seems  as  plain 
and  clear  as  possible  that  the  Federal 
Government  does  have  a  special  responsi- 
bility for  manpower  programs  when  the 
Federal  Government  has  cau£ed  substan- 
tial unemployment  directly  by  closing  the 
major  source  of  jobs  in  a  community.  I 
wish  that  responsibility  had  been  spelled 
out  more  clearly  and  unnustakably  in  the 
conference  report.  At  this  point  in  this 
session  of  Congress,  however.  I  will  not 
press  the  matter  further,  beyond  ex- 
pressing my  expectation  that  the  assur- 
ances given  by  the  chairman  of  the  Sen- 
ate conferees  and  the  language  of  the 
Joint  Explinator>-  Statement  appearing 
on  page  62  of  the  conference  report  will 
guide  the  executive  branch  in  its  admin- 
istration of  the  act. 

My  State  has  not  yet  felt  the  full  im- 
pact, In  unemplo>-ment,  of  the  closing  of 
the-  major  milltarv*  Installations  In  the 
State.  I  would  hope  that  the  provisions  of 
this  bill  will  be  administered  so  as  to 
provide  adequate  adjustment  assistance 
to  workers  who  are  cut  off  and  left  job- 
less by  the  Federal  Goverrunent. 

It  may  be  in  the  future  that  circum- 
stances will  Indicate  additional  special 
legislation  Is  necessary,  and  if  that  should 
prove  to  be  the  case.  I  would  ask  the 
chairman  of  the  Subcommittee  on  Em- 
ployment, Manpower,  and  Poverty  if  he 
woiild  be  willing  to  give  such  legislation 
sympathetic  consideration,  and  perhaps 
hold  a  hearing  In  that  regard. 

Mr.  NELSON.  We  certainly  would  be 
willing  to  consider  any  need  for  further 
legislative  action:  and.  In  areas  where 
the  impact  is  most  serious,  the  commit- 
tee would  be  prepared  to  conduct  field 
hearings  in  the  State  or  States  where  the 
problems  are  most  acute. 

Mr.  PELL.  I  thank  the  Senator  from 
Wisconsin,  and  am  most  appreciative  for 
that  assurance. 

Mr.  JAVTTS  Mr.  President,  first  I 
strongly  urge  the  adoption  of  the  con- 
ference report. 

Mr.  President,  the  Senator  from  Wis- 
consin I  Mr  Nelson  I  has  not  mentioned 
the  legendary  job  which  he  did  In  chair- 
ing the  conference  insofar  as  the  Senate 
is  concerned.  He  did  it  with  great  skill, 
with  great  fidelity  to  the  Senate  bill,  and 
with  great  success  bi  preserving  very 
essential  aspects  of  the  Senate  bill,  and 
I  believe  the  Senate  and  the  country 
should  be  grateful  to  him. 

I  would  like  to  express  also  the  ap- 
preciation of  the  minority  for  the  work 


of  Dick  Johnson,  the  professional  staff 
assistant  for  the  majority,  William 
Spring,  until  recently  of  the  majority 
staff,  and  John  Scales,  our  own  profes- 
sional assistant  on  the  minority  side,  and 
Roger  King  of  Senator  Taft's  staff,  all  of 
whom  were  tremendously  helpful  in 
achieving  this  result. 

Mr.  President.  I  shall  not  detain  the 
Senate,  but  the  significance  of  this  par- 
ticular matter  is  that  it  is  the  first  of  the 
so-called  special  revenue-sharing  bills 
which  will  be  enacted  into  law.  It  is  my 
information  that  if  we  succeed  In  pass- 
ing the  conference  report  In  the  Senate 
as  It  has  already  passed  the  other  body, 
the  President  is  likely  to  sign  it  as  early 
as  tomorrow. 

When  we  remember,  as  Senator  Nil- 
son  has  said,  that  this  represents  over 
4  years'  work,  we  must  pay  tribute  to  the 
way  in  which  it  came  about. 

It  came  about.  Mr.  President.  l)ecause 
in  his  second  state  of  the  union  message 
on  September  10.  the  President  said  that 
he  would  "seel:  workable  compromises 
in  a  spirit  of  cooperation  with  the  Con- 
gress.' 

Mr.  President,  this  great  measure  will 
be  the  fruit  of  that  kind  of  offer  to  the 
Congress,  and  I  think  it  is  very  auspicious 
at  a  time  when.  In  many  ways,  there  Is 
a  very  real  confrontation  between  Presi- 
dential and  congressional  power,  that  our 
Government  can  function  to  produce 
creat  results  when  there  is  willingness 
to  sit  down  in  advance  and  endeavor  to 
agree  on  the  parameters  within  which 
the  President  and  Congress  may  proceed, 
which  will  leed  to  a  bill  instead  of  a  veto 
or  a  political  issue. 

\nother  point.  Mr  President,  that  I 
wish  to  emphasize  Ls  the  fact  that  It 
deals  very  Intelligently  with  the  issue 
of  public  service  employment  by  estab- 
lishing a  system  of  State  and  local  prime 
sponsors  at  a  moment  when  the  unem- 
ployment situation  is  in  grave  danger 
in  many  areas  of  the  country.  This  bill 
makes  local  administration  very  practi- 
cal and  intelligent.  Without  severing 
anyone  who  really  deserves  the  program, 
and  without  any  diminution  of  oppor- 
tunity, it  accomplishes  the  following: 

First.  It  sets  a  basic  minimum  of  res- 
ervations for  heavily  impacted  areas, 
that  is,  heavily  impacted  with  unemploy- 
ment, running  to  6  5  percent,  which  is 
our  definition,  and  provides  a  minimum 
of  40.000  Jobs  in  the  first  fiscal  year,  and 
about  50,000  in  the  next  fiscal  year 
Second,  It  enables  the  general  "such 
sums"  authorization  under  the  act, 
which  is  now  estimated  at  $1.55  billion, 
at  the  discretion  of  the  State  or  local 
sponsor,  to  be  reached  Into  also  for  pub- 
lic service  employment,  so  that,  although 
the  40.000  and  50,000  figures  I  have  men- 
tioned would  seem  on  the  surface  to 
compare  unfavorably  with  the  170,000 
public  service  Jobs  which  are  now  in 
effect  under  the  previous  law,  for  all 
practical  purposes  there  is  no  such  re- 
striction or  Inhibition.  Third,  it  provides 
a  separate  "such  sums"  appropriation  In 
each  year  for  areas  of  substantial  un- 
employment. 

We  mentioned,  as  it  were,  the  basic 
minimum  for  the  hard  core  unemployed 
areas,  and  we  left  the  rest  open  to  all 


concerned,  if  they  wished  to  use  their 
money  that  way  and  to  the  Congress 
in  terms  of  additional  appropriations. 

Two  other  points ;  first.  Neighborhood 
Youth  Corps  is  in  essence  preserved  by 
a  unified  authorization  in  the  bill.  I  am 
very  grateful  for  that  support  by  the 
conference. 

Second,  there  was  a  strong  feeling 
about  Opporturities  Industrialization 
Centers.  They  are  headed  by  the  Rev- 
erend Leon  Sullivan,  of  Philadelphia. 
We  expect  that  when  the  bill  becomes 
law  there  will  be  a  continuance  of  that 
activit".  That  will  leave  the  door  open 
for  ethers  to  try  the  same  thing:  but 
right  now  only  the  QIC  and  several  o'her 
orga  i'ations  are  referred  to  in  the  act. 

Finallv.  we  have  preserved  the  op- 
portunity for  comm'inlt-'  a?tion  agencies 
to  be  involved,  as  they  should  be. 

Mr.  President,  with  that  background. 
I  shall  comment  on  particular  elements. 

MANPOWTB  BXPORM 

The  major  purpose  of  the  conference 
report,  as  I  Indicated,  is  to  accomplish 
a  reform  of  our  manpower  training  and 
employment  programs — along  the  lines 
of  "special  revenue  sharing." 

The  major  elements  of  reform  lie  in 
decentralization,  decategorlzatlon  and 
consolidation  of  the  current  efforts.  As 
President  Nixon  emphasized  in  his  mes- 
sage to  the  Congress  on  March  4.  1971: 

But  one  of  the  great  lessons  of  the  dramat- 
ic Pederal  Government  growth  In  the  1960"8 
Is  that  even  a  good  idea  like  this  can  fall 
short  of  its  promise  if  the  way  by  which  It 
Is  carried  out.  runs  against  the  grain  of  the 
Federal  system.  By  converting  the  Nation's 
manpower  programs  from  categorical  grant* 
to  Special  Revenue  Sharing,  we  can  play  to 
the  strengths  of  the  Federal  partnership, 
teaming  Federal  dollars  with  State  and  local 
decision-making. 

Mr.  President,  the  actions  of  the  con- 
ference reflect  heavily  a  fidelity  to  those 
elements  which  the  administration 
sought,  and  thus  in  the  final  bill  that  re- 
sults therefrom. 

First,  with  respect  to  decentralization, 
under  the  conference  agreement,  any 
State  and  any  unit  of  general  local  gov- 
ernment with  a  population  of  100,000  or 
more  may  serve  as  a  prime  sponsor  for 
manpower  programs;  the  Senate  bill  had 
required  150.000  for  counties,  but  the 
Senate  receded  so  as  to  apply  a  uniform 
standard,  one  which  will  be  very  helpful 
to  areas  In  many  states  Including  my  own 
State  of  New  York  and  Delaware:  also 
to  take  Into  account  special  situations 
that  exist  in  New  York  and  elsewhere, 
the  House  adopted  the  Senate  provision! 
with  slight  modification,  sponsored  by 
Senator  Tatt  and  mjself.  under  which 
communities  below  the  population  re- 
quirement could  nevertheless  qualify  as 
prime  sponsors  under  certain  circum- 
stances where  they  can  demonstrate  they 
have  the  capacity  to  carry  out  a  program. 

Accordingly,  we  have  sought  to  de- 
centralize to  the  maximum  extent 
feasible  in  terms  of  managerial  eflQ- 
ciency. 

Mr.  President,  an  Important  differ- 
ence between  our  approach  and  the  ad- 
ministration's original  manpower  rev- 
enue sharing  proposal  Is  that  we  have 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42803 


included  here,  through  the  Secretary,  a 
very  strong  Federal  role. 

This  is  reflected  throughout  the  bill, 
but  particularly  in  section  108(d) — at 
page  11 — taken  from  a  provision  which 
I  Included  in  the  Senate  bill,  requiring 
the  Secretary  to  revoke  the  prime  spon- 
sor's plan  if  it  is  determined  that  the 
prime  sponsor  is  maintaining  a  pattern 
or  practice  of  discrimination,  incurring 
unreasonable  administrative  costs,  fall- 
ing to  give  due  consideration  to  con- 
tinued funding  of  programs  of  demon- 
strated effectiveness,  or  otherwise  ma- 
terially falling  to  carry  out  the  act. 

We  expect  the  Secretary  diligently  to 
exercise  his  responsibility  vmder  this 
section  suid  other  sections  of  the  act, 
and  thus  to  act  as  much  more  than  a 
"payroll  clerk"  with  respect  to  man- 
power efforts.  I  do  not  mean  to  suggest 
that  the  Secretary  should  Intrude  in  the 
day-to-day  decisionmaking;  the  pur- 
pose of  decentralization  Is  otherwise. 
But  the  basic  Federal  concern  as  to  the 
use  of  funds  in  terms  of  the  purposes  of 
this  act  must  not  be  abdicated. 

Second,  with  respect  to  decategoriza- 
tion,  in  almost  every  Instance  the  con- 
ferees opted  for  the  very  broadest  de- 
scription of  activities  to  be  conducted 
under  the  act,  having  in  mind  the  need 
for  flexibility  on  the  State  and  local,  as 
well  as  the  Federal,  level. 

But  again,  fidelity  to  essentially  Fed- 
eral concerns  dictated  particular  atten- 
tion to  certain  program  areas  or  "cate- 
gories" of  individuals  under  the  bill. 

This  concern  is  reflected  in  section 
301 — at  page  22 — which  requires  the 
Secretary  to  use  funds  to  provide  addi- 
tional manpower  services  for  particular 
segments  of  the  population  having  par- 
ticular disadvantages  in  the  labor  mar- 
ket; by  sections  302  and  303.  which  set 
aside  funds  for  Indian  and  migrant  pro- 
grams, respectively;  and  section  304, 
which  authorizes  the  Secretary  to  pro- 
vide assistance  to  youth  and  other  spe- 
cial programs. 

In  this  connection,  I  am  very  pleased 
that  the  conference  agreement  includes 
in  section  301(c)  the  elements  of  pro- 
grams for  offenders  and  a  similar  au- 
thority at  the  State  level  under  section 
(5)(c) — at  page  9 — along  the  lines  of 
those  I  had  added  to  the  Senate  bill. 

I  am  pleased  also  that  section  304(a) 
(7)— at  page  25 — permits  the  Secretary 
to  fund  directly  manpower  programs 
conducted  by  "community-based  orga- 
nizations," which  at  the  very  least  in- 
cludes, by  reason  of  the  definition  con- 
tained in  section  601(a) — at  page  42 — 
Opportunities  Industrialization  Centers. 
Jobs  for  Progress  (SER).  Operation 
Mainstream,  and  Community  Actlcm 
agencies. 

We  fought  very  hard  in  conference  to 
maintain  the  Senate  provisions  regard- 
ing OIC  and  other  programs:  the  House 
conferees  were  very  much  opposed  to 
specific  references,  not  because  they 
questioned  the  value  of  the  programs, 
but  because  they  were  opposed  to  any 
categorization  at  all, 

I  consider  the  provision  cited  above — 
together  with  a  number  of  other  pro- 
visions providing  for  the  participation 
of  "community-based  organizations  '  on 


the  various  councils  and  the  "due  con- 
sideration" provisions — to  represent  a 
reasonable  compromise  that  should  pro- 
tect such  organizations. 

I  am  particularly  gratified  by  the  ac- 
tion of  the  conferees  dealing  iu  a  num- 
ber of  ways  with  the  special  needs  of 
economically  disadvantaged  youth  for 
Jobs  during  the  summer  months  which 
has  been  a  longstanding  concern  of 
mine. 

This  is  reflected  in  a  number  of  pro- 
visions of  the  conference  agreement: 

Section  304(a)  (3) — at  page  24 — giving 
the  Secretary  authority  to  conduct  a  spe- 
cial summer  job  program  directly  from 
Federal  funds; 

Section  3(c) — at  page  2 — to  which  I 
contributed,  containing  a  special  transi- 
tional provision  authorizing  the  Secretary 
to  provide  such  opportunities  in  the  com- 
ing summer  from  appropriations  for  fis- 
cal year  1974,  notwithstanding  any  oth- 
er provision  of  the  act — except  for  the 
reservation  for  public  service  employ- 
ment— essentially  in  the  same  manner 
and  on  the  same  conditions  as  provided 
in  the  Neighborhood  Youth  Corps  pro- 
gram under  the  previous  authority.  This 
provision  will  enable  the  funds  to  be 
made  available  without  regard  to  the 
allocation,  apportionment  and  other  lim- 
iting provisions  generally  applicable  un- 
der this  act : 

Section  605(c)— at  page  47— from  the 
Senate  bill,  requiring  the  Secretary  to 
transmit  a  report  to  the  Congress  regard- 
ing summer  opportunities,  together  with 
his  reconimendations,  if  any,  for  supple- 
mental appropriations  for  the  program. 
This  report  is  to  be  due  at  the  earliest 
appropriate  date,  but  no  later  than 
March  1  of  each  year.  March  1  is  the  ap- 
proximate date  by  which  the  unemploy- 
ment situation  for  the  coming  summer 
should  be  fairly  clear,  and  stUl  in  time 
to  act  to  augment  programs,  if  necessary, 
to  fulfill  resulting  needs  in  an  adminis- 
tratively feasible  way. 

In  this  connection,  it  is  Important  that 
we  take  note  of  the  statements  appear- 
ing at  page  51  of  the  conference  report, 
the  first  t>age  of  the  joint  expltmatory 
statement  of  the  committee  of  confer- 
ence. 

I  hope  very  much  that  the  Secretary 
will  utilize  this  authority  to  provide  for 
a  program  at  at  least  last  year's  level, 
but  to  the  extent  that  he  does  not,  then 
those  of  us  who  feel  strongly  about  the 
summer  job  program  will  seek  the  neces- 
sary funds  under  these  provisions  which 
authorize  us  to  do  so  without  limitation. 

In  that  connection,  I  wish  to  note  that 
the  continuing  appropriations  bill,  now 
in  conference,  would  require  expenditures 
at  the  $1.55  billion  rate,  which  includes 
the  funds  for  the  summer  job  program 
which  I  noted. 

It  is  Important  to  note  that  the  Secre- 
tary's direct  funding  authority  is  not 
limited  to  these  or  other  specified  pro- 
grams, but  that  under  section  301  a)  he 
may  provide  additional  manpower  serv- 
ices as  authorized  under  titles  I  and  n 
to  segments  of  the  population  in  particu- 
lar need,  taking  Into  account  the  need 
for  continuing  funding  of  programs  of 
demonstrated  effectiveness. 
This  provision  grants  authority  to  con- 


tinue as  a  Federsd  program,  such  worth- 
while efforts  as  the  JOBS  program,  con- 
ducted by  the  National  Alliance  of  Busi- 
nessmen, which  I  understand  the  Presi- 
dent has  already  indicated  will  receive 
continued  funding. 

Third,  with  respect  to  consolidation, 
the  conference  agreement  refiects  an 
amalgam  of  the  strongest  provisions  of 
both  bills  governing  c(X)rdination  be- 
tween manpower  programs,  both  hori- 
zontally and  vertically,  at  the  State  and 
lcx;al  level.  Moreover,  to  try  as  I  have 
urged  for  some  time  to  narrow  the  gap 
between  manpower  programs  and  voca- 
tional education  programs,  the  confer- 
ence agreement  includes  a  5  percent  set- 
aside  for  that  purpose.  Furthermore, 
through  the  leadership  of  Congressman 
EscH,  we  will  have  a  new  National  Com- 
mission for  Manpower  Policy,  incorporat- 
ing provisions  that  I  added  from  the  Sen- 
ate bill  to  insure  an  integrated  policy. 

TRANSrriONAL    PXJBLIC    SERVIOS    EICPLOTMUTr 

Mr.  President,  Members  will  recall  that 
the  Senate  has  passed  not  only  S.  1559, 
which  included  a  discretionary  authority 
for  transitional  public  service  employ- 
ment, but  S.  1560.  also  sponsored  by  Sen- 
ator Nelson  and  myself  to  extend,  as  a 
separate  program,  the  Emergency  Em- 
ployment Act  of  1971,  which  expired  this 
June.  ' 

The  latter  authority  authorized  $1.25 
billion  for  this  fiscal  year  and  "such 
sums"  for  the  next  for  such  programs;  in 
the  case  of  this  year  $1  billion  was  au- 
thorized for  the  general  program  and 
$250  million  for  the  special  program 
going  to  areas  of  "substantial  unemploy- 
ment" defined  in  terms  of  6-percent  or 
above  employment. 

The  House  did  not  pass  a  separate  bill, 
but  included  in  H.R.  11010.  both  a  general 
authority  as  an  eligible  activity,  and  a 
separate  title  for  transitional  public  serv- 
ice employment  in  areas  of  substantial 
imemployment.  defined  at  7  percent  or 
greater:  for  this  the  House  bill  reserved 
$250  million  in  fiscal  year  1974  smd 
$500  million  in  fiscal  year  1975  "off  the 
top"  of  all  manpower  funds. 

To  Insure  that  the  basic  elements  of 
the  Senate  approach — particularly  in 
terms  of  the  6  percent  local  trigger  were 
before  the  conference,  we  moved,  prior 
to  appointing  conferees,  to  agree  to  the 
House  amendment  with  an  amendment; 
in  the  latter  we  included  these  provi- 
sions and  S.  1559. 

S.  1560  Itself,  remains  as  a  biU  passed 
by  the  Senate. 

The  conference  agreement  contains 
elements  of  both  the  House  smd  Senate 
approaches. 

The  conference  agreement,  like  both 
bills,  authorizes  transitional  public  serv- 
ice employment  programs  as  eligible  ac- 
tivities that  may  be  carried  out  by  State 
and  local  prime  sponsors  from  their  al- 
located funds. 

It  Includes,  like  the  House  bill,  a 
separate  title  for  public  service  employ- 
ment programs  in  areas  of  'substantial 
unemployment;"  to  qualify  for  such  as- 
sistance sm  area  must  have  64  percent 
or  more  unemployment  for  3  consecutive 
months — thus  midway  between  the  Sen- 
ate and  House  provisions. 


42804 


CONGRESSIONAL  RECORD  —  SEN  ATE 


For  that  Utle.  UUe  n.  the  conference 
agreement  reserves  "not  less  than"  $250.- 
OOO.OOO  In  flsca]  year  1974  and  $350.00o!- 
000  In  fiscal  year  1975  'off  the  top'  of 
manpower  funds  appropriated  under  the 
act,  essentially  the  House  approach  al- 
though at  a  revised  flgiire  for  fiscal  year 
1975. 

But  then  we  have  rolled  In  also  the 
Senate  'such  sums"  approach  by  provid- 
ing for  each  of  the  4  years  of  the  bUl  an 
additional  open-ended  appropriation  for 
programs  under  title  n. 

This  was  a  compromise  that  I  helped 
to  work  out  with  the  House  with  the  fu- 
ture negative  effects  of  the  energy  crisis 
on  unemployment  clearly  in  mind.  If  not, 
already  at  our  door. 

And  I  would  point  out,  beyond  that, 
that  the  bill  as  a  whole  contains  "such 
sums'  authorizations  for  each  year  which 
means  that  the  appropriations  process 
will  be  available,  without  limitation,  to 
channel  more  money  to  prime  sponsors 
under  title  I.  whether  or  not  they  have 
the  6'2  percent  criteria,  which  they  can 
use  for  public  servnce  employment. 

We  did  not  want  the  Congress  or  the 
executive  to  be  helpless  If  "the  bottom" 
falls  out  for  that  or  any  other  reason. 

Now  already,  this  action  is  being  mis- 
construed. An  editorial  in  the  New  York 
Times  of  yesterday,  citing  the  $250  mil- 
lion and  the  $350  million  reservations, 
calls  those  sums  "pitifully  inadequate" 

But,  as  I  Indicated,  the  reservations  are 
only  part  of  the  picture 

Some  may  feel  that  we  should  have 
established  very  high  ceilings  for  author- 
izations under  the  bill  or  under  the  sepa- 
rate title  for  public  service  employment. 

Of  course,  we  could  have  argued  with 
or  confronted  the  administration,  on  the 
basis  of  our  worse  fears  of  what  might 
come,  for  that  approach 

But  we  might  very  well  have  locked 
ourselves  In  should  the  situation  become 
even  worse  than  we  might  contemplate 
now.  and  in  the  process  e.xploded  the 
chances  for  agreement  with  the  admin- 
istration on  reform. 

One  of  the  key  elements  of  reform — 
establishment  of  a  system  of  State  and 
local  prime  sponsors  to  carry  out  pro- 
grams—is  also  the  key  prerequisite,  next 
to  funds,  for  meeting  any  future  crises. 

We  could  just  not  mount  an  effective 
large  scale  public  service  employment 
program  under  the  worn-out  and  paltry 
direct  funding  system  we  now  have. 

The  conference  report  provides  both  a 
new  delivery  system  and  authority  under 
which  Congress  can  provide  funds  to 
meet  any  need,  and  for  my  own  part.  I 
shall  take  the  earliest  possible  steps  to 
do  so. 

coacMUMirT  action  pvogkajcs 
Mr.  President,  when  Senator  Nklson 
and  I  Introduced  S.  1559,  on  April  12. 
1973.  we  Included  in  that  measure  a  sepa- 
rate title  under  which  prime  sponsors 
could,  at  their  discretion,  fund  a  wide 
range  of  community  action  efforts,  essen- 
tially as  under  the  "local  Initiative"  sec- 
tions of  the  Economic  Opportunity  Act 
and  thus  far  beyond  manpower  programs 
themselves. 

We  did  so  because,  as  we  prepared  this 
legislation,  the  administration  was  in  the 


December  20,  1973 


process  of  attempting  the  dismantlement 
of  those  agencies,  sa  it  was  of  OEO  It- 
self and.  although  the  US.  District  Court 
for  the  District  of  Columbia  had  just  the 
day  before  Introduction  enjoined  fur- 
ther dismantlement,  the  future  of  pro- 
grams beyond  this  past  June  was  un- 
clear Noting  the  court  decision.  I  said 
at  that  time: 

But  thla  \e%9ta  op«n  the  question  of  fund- 
ing after  July  1  and  if  the  Congreae  does  not 
provide  appropriations  for  these  program*. 
th«n  our  bUl  would  prortde  an  Interim  com- 
promiae  alternative  with  funda  to  make  con- 
tlnuaUon  ctf  local  initiative  and  community 
actton  agenclee  by  State  and  local  gOTem- 
meat  possible  In  fact  as  well  as  In  theory. 

Since  S.  1559.  Including  the  special  title, 
was  approved  by  the  Senate.  It  has  been 
patently  clear  that  appropriations  to 
continue  OEO  and  community  action 
agencies  through  this  fiscal  year — the 
term  of  the  statutory  authorization- 
would  be  made  available;  funds  have 
been  made  available  by  continuing  reso- 
lution and  pledges  were  made  to  continue 
through  the  entire  fiscal  year  Lf  neces- 
sary. Just  yesterday  the  President  signed 
H.R  8877,  the  HEW-Labor  appropria- 
tions bill,  which  confirms  coverage 
through  the  entire  fiscal  year. 

Thus  the  program  is  secure  through 
this  fiscal  year  through  appropriations, 
while  under  the  earlier  district  court  de- 
cision, must  be  made  available. 

The  future  of  the  antipoverty  program 
beyond  June  30  is  a  matter  of  extreme 
importance  and  one  whlf  h  I  understand 
has  already  been  the  subject  of.  consid- 
erable debate  at  the  national  convention 
of  the  Association  of  CAP  EHrectors.  held 
in  San  Francisco  In  November,  where 
many  different  views  were  expressed  as 
to  how  to  proceed,  ranging  from 
straight  extension  of  the  program  as 
it  Is  now  known  to  the  kind  of  special 
revenue  sharing  format  Senator  Nelson 
and  I  put  forward  in  the  special  title  to 
S.  1559. 

So  as  not  to  prejudice  that  consldera- 
tlon— as  the  views  of  the  community  ac- 
tion agencies  and  those  in  the  program 
must  be  heard  In  this  new  more  secure 
context — we  receded  on  the  special  title 
as  a  part  of  this  legislation  and  will  pur- 
sue It  or  other  measures  early  next  year 
In  terms  of  the  future  of  the  antipoverty 
program  as  a  whole. 

Of  course,  as  I  have  noted,  we  Intend 
community  action  agencies  to  be  among 
the  agencies  heavily  involved  in  conduct- 
ing manpower  training  and  related 
efforts  under  this  legislation  and  to  par- 
ticipate in  the  process  at  the  State  and 
local  scene  along  with  other  "com- 
munity-based organizations"  under  the 
provisions  I  referred  to  earlier. 

Mr.  President,  for  all  of  these  reasons, 
I  recommend  that  the  conference  agree- 
ment be  adopted  to  accomplish  what  we 
should  have  done  years  ago.  but  for  a 
stalemate  between  the  Congress  and  the 
Executive  which  has  now  been  broken. 

But  It  should  be  clear  that  this  bUl— 
as  crucial  as  it  is — does  not  itself  give 
us  a  "manpower  policy;"  It  merely  gives 
a  manpower  delivery  system  with  which 
to  Implement  a  policy. 

We  have  yet  to  formulate  a  "man- 
power policy."  and  beyond  that,  a  "full 


employment  policy;"  and.  perhaps  the 
energy  crisis  will  provide  new  Impetus 
for  that  effort. 

In  that  connection.  I  am  plea.>td,  as 
the  author  of  S.  1693,  the  Full  Employ- 
ment and  Job  Development  Act  of  1973. 
which  would  establish  a  "full  employ- 
ment board,"  to  note  the  following  state- 
ment at  page  65  In  the  joint  explanatory 
statement  of  the  Committee  of  Con- 
ference : 

The  Conferees  note  that  there  are  propoeals 
pending  ^•fore  the  Congress  to  establish  sep- 
arate .'^ull  employment"  boards  or  other 
mechanisms  specifically  designed  to  Imple- 
ment the  poUcy  of  the  Employment  Act  ot 
1946. 

The  conferees  anticipate  that  the  National 
Commission  for  Manpower  PoUcy.  although 
not  Itself  specifically  designed  for  that  pur- 
poae,  wUl  In  fulfilling  Its  own  charge  serve 
as  a  forum  for  discussion  of  such  proposals 
In  the  executive  branch. 

Mr.  President,  I  ask  unanimous  con- 
sent that  the  statement  of  Senator  Tatt, 
ranking  minority  member  of  the  sub- 
committee, who  contributed  so  much  to 
this  legislation,  be  printed  in  the  Record. 
as  he  was  unable  to  be  here  due  to 
business  in  Ohio. 

There  being  no  objection,  the  state- 
ment Is  ordered  to  be  printed  In  the 
Record .  as  follows; 

Stattkutt  bt  Sknato*  Tatt 

Mr.  Presldant.  I  urge  my  colleagues  to 
support  the  conference  report  on  the  Com- 
prehensive Elmployment  and  Training  Act  of 
1973.  S  1659  This  legislation  Is  a  culmina- 
tion of  excellent  Initiatives  from  the  admin. 
Istratlon  and  extensive  work  by  the  House 
Education  and  Labor  Committee,  and  the 
Senate  Labor  and  Public  Welfare  Commit- 
tee Special  praise  in  the  Senate  should  go 
to  the  chairman  of  the  Employment, 
Poverty  and  Migratory  Labor  Subcommit- 
tee. Senator  NiLaoN,  for  his  leadership  on 
this  legislation.  My  colleagues.  Senators 
Cbanston.  jAvrrs,  and  ScRwrxiuK  also  de- 
serve praise  for  their  continuing  Interest  and 
work  on  this  legislation. 

When  bearings  began  earlier  this  year 
In  the  Employment  Subcommittee  there 
was  a  great  deal  of  skepticism  in  the  minds 
of  many  regarding  a  special  revenue-sharing 
approach  for  manpower  training.  These  con- 
cerns I  believe  have  been  adequately  resolved 
without  destroying  the  merits  of  a  specialized 
revenue-sharing  approach,  as  the  legislation 
provides  State  and  local  govenunents  with 
flexlbUlty  and  financial  assistance  to  assume 
responsibilities  for  Job  training  and  public 
service  employment.  As  ranking  minority 
member  of  the  subcommittee.  I  had  an  op- 
portunity not  only  to  review  testimony  in 
Washington,  but  also  to  consider  firsthand  In 
my  own  State  of  Ohio  the  views  of  city  and 
county  officials,  program  administrators, 
business  community  leaders,  labor  organiza- 
tion officials  and  program  participants  with 
respect  to  the  merits  of  job  training.  I  firmly 
believe  from  my  experience  In  considering 
this  legislation  that  Job  training  Is  an  essen- 
tial key  to  alleviating  the  unemployment 
problems  which  periodically  surface  in  the 
economy.  This  legislation  is  especially  perti- 
nent today  as  our  economy  faces  the  poe- 
sibUIty  of  substantial  unemployment  re- 
sulting from  the  energy  shortage  in  that  It 
not  only  provides  Job  training  opportunities, 
but  also  authorteee  for  public  service  em- 
ployment of  6.5  percent  or  more. 

The  biU  would  conaoUdate  and  decen- 
tralize programs  to  create  Jobs  and  train  the 
unemployed.  Any  unit  of  local  government 
having  a  population  of  100,000  or  more  would 
be  eligible  to  receive  funding  as  prime  ^K>n- 


December  20,  19 78 


CONGRESSIONAL  RECORD  —  SENATE 


N 


sors  for  Job  training  programs.  Addition- 
ally, a  provision  is  provided  to  permit  units  of 
local  government  with  populaUons  between 
60,000  to  100.000  to  apply  as  program  agents 
for  ihe  Implementation  of  public  service  em- 
ployment programs. 

Vietnam  era  veterans  would  be  given  a 
preference  for  public  service  Jobs  and,  hope- 
fully, the  unemployment  rate  among  this 
most  deserving  group  of  Americans  can  be 
reduced. 

Protections  are  also  contained  In  the  legis- 
lation to  provide  strong  considerations  for 
the  continuation  of  existing  manpower  train- 
ing programs  of  demonstrated  effectiveness. 
Part  of  these  programs  could  Include  skUled 
training  centers,  which  I  might  add  can  re- 
ceive additional  assistance  through  SUte  al- 
located money  earmarked  for  vocational  edu- 
caUon.  SER.  operation,  mainstream,  and 
summer  neighborhood  youth  employment 
programs.  Opportunities  IndustrlalizaUon 
centers — OIC — also  are  Included  In  the  legis- 
lation as  a  community  based  manpower 
training  activity  that  should  be  considered 
for  future  funding,  I  am  especlaUy  pleased  to 
see  this  reference  to  OIC,  as  I  believe  this 
program  Is  one  of  the  best  ways  to  bring 
meantogful  Jobs  to  Individuals  In  the  Inner 
city. 

Providing  training  programs  to  individuals 
so  they  can  help  themselves  is  one  of  the 
most  Unportant  ways  by  which  government 
can  help  its  citizens.  The  legislation  before 
the  Senate  Is  consistent  with  thU  objective 
I  urge  my  colleagues  to  approve  it. 

Mr.  JAVrrS.  Mr.  President,  In  closing, 
one  of  the  main  men  In  respect  to  the 
broader  element  of  public  service  em- 
ployment was  Dr.  Russell  Nixon,  who 
was  an  associate  professor  of  social 
policy  at  Columbia  School  of  Social 
Work,  and  was  chairman  of  the  Com- 
mittee for  PubUc  Service  Employment 
He  was  a  man  in  an  active  role.  Shortly 
before  we  actuaUy  consummated  the  con- 
ference report,  he  passed  on  and  so  has 
been  unable  to  see  what  for  him  would 
be  a  very  happy  day  He  was  a  relative- 
ly young  man  and  it  Is  both  appropriate 
and  deserving  that  we  pay  tribute  to  him 
at  this  time. 

Mr.  President,  I  ask  unanimous  con- 
sent that  a  New  York  Times  obituary 
respecting  Dr.  Nixon  be  printed  in  the 
Record.  I  feel  that  he  would  wish  to  be 
remembered  in  cotJiectlon  with  the  work 

There  being  no  objection,  the  obituary 
was  ordered  to  be  printed  In  the  Record 
as  follows : 

D«.  RtJBsnx  A.  NixoK  Dns  at  60;  Colttmbia 
Manpowtis    Economiot 

Dr.  RusaeU  Arthur  Nixon,  a  leading  man- 
power economist,  died  yesterday  of  a  heart 
attack  in  St.  Vincent's  Hoapltal  He  was  60 
years  old  and  lived  in  Brooklyn  Heights 

Dr.  Ntxon  was  associate  professor  of  social 
poUcy  at  the  Columbia  University  School  of 
Social  Work  and  chairman  of  the  community 
^^'o^commlttee  of  the  university  Senate 

From  1966  to  1971  he  worked  with  Con- 
greesmen  and  ConRre.^ional  committees  on 
manpow,..'.  an tl -poverty.  deUnquency  and 
rehabiuiailu.-.  legislation,  Uicluding  the  com- 
prehensive manpower  and  famUy  assistance 
plan  proposals  in  1970. 

PROnSSOR    AT    WTU 

In  1968  fl9  Dr.  Nixon  was  associate  pro- 
fSMor  at  rhe  N>w  York  University  Oraduate 
Bchooi  of  Social  Work  and  assocla'e  director 
of  the  Osnter  for  the  Studv  of  the  Unem- 
ployed, where  he  directed  its  Instituiea  and 
ourrloulum  development 

In  1967-68  he  K»^e  manpower  f'lrses  at 
the    New    Sch<x>i    for    SocUU    Beeearoli.    and 


42805 


earlier  lectured  at  the  Lewis  M,  HerrmAn 
lAboi-  Education  Cen-^r  of  Kut^rers 
University. 

Fronj  11*63  Uj  1966  he  was  manager  of  The 
Nailona;  Guardian,  a  weekly  newspaper  tha: 
descrDixK;   liself  as   "progresElve," 

CONTEUPT     CriATION 

In  1964  Dr,  Nixon  was  called  to  tesiiiv 
befcwe  the  House  Un-American  Aciivraes 
Committee  a.'ter  he  and  two  members  of  the 
Women  Strike  for  Peace  Group.  Dagmar  WU- 
eon.  and  Donna  Allen,  ;;ad  urged  in  1963 
tha:  State  Department  admit  for  a  lecture 
tour  the  Japanese  law  school  dean  and 
pacin.'st  K.vru  Yasul. 

The  three  refused  to  appear  before  the 
committee,  protesting  that  the  closed  ses- 
sions would  violate  theU'  freedom  of  speech 
by  depriving  them  of  the  opportunity  to 
deny  pubUcly  any  impUcatlon  that  they  had 
been  Involved  In  subversive  activities 

Dr.  Nixon,  Mrs  Wilson  and  Mrs.  Allen 
were  cited  for  contempt  of  Congress,  but 
those  citations  were  thrown  out  m  1566  by 
the  Court  of  Appeals  for  the  District  of 
Columbia. 

Dr.  Nixon  was  Washington  representative 
of  the  United  Electrical,  Radio  and  Machine 
Workers  of  America  from  194:  to  1962  serv- 
ing as  liaison  with  many  Federal  agencies  on 
union  legislative  and  economic  matte.-s 

In  World  War  n  he  served  with  the  in- 
fantry In  Europe.  In  1945  he  transferred  to 
the  American  Military  Govenunent,  and  too^ 
an  Important  part  in  the  denazification  proc- 
ess in  Germany.  He  was  deputy  director  and 
acUng  head  of  the  division  af  Investigation 
of  carteU  and  external  asset*  for  the  Amer- 
ican Military  Government  In  Berlin. 

Dr.  Nixon  received  the  Bronr*  Star  for  par- 
ticipating In  the  Allied  tnteUlgence  group 
that  uncovered  Nazi  poison  gas  plans  and 
facilities. 

Before  the  war  he  was  legislative  repre- 
sentative of  labor's  Non-Partlsan  League,  a 
Congress  of  Industrial  Organizations  legis- 
lative and  political  unit  In  Washington,  and 
worked  with  John  L.  Lewis,  the  labor  leader. 
Dr.  Nixon  was  bom  July  27,  1913,  in  St, 
Paul,  graduated  from  the  University  of 
Southern  CalUomla  in  1934  and  received  a 
Ph.D.  degree  In  economics  from  Harvard  In 
1940. 

Prom  1937  to  1941  he  was  an  Instructor 
and  tutor  in  economics  at  Harvard,  where 
John  P.  Kennedy  was  among  his  students. 
In  TTieodore  C.  Sorensen's  biography.  "Ken- 
nedy." the  late  President  is  quoted  as  saying 
that  he  was  not  a  professional  economist 
"but  [one]  who  knows  a  hell  of  a  lot  about 
It  after  taking  Ec-A  under  Russ  Nixon  at 
Harvard." 

Dr.  NUon  also  taught  economics  at  Rad- 
clUTe  CoUege  from  1939  to  1941  and  ear- 
lier at  the  Massachusetts  Institute  of  Tech- 
nology. 

CONSITLTANT    TO    ACENCUS 

He  had  been  a  consultant  to  the  University 
Research  Corporation,  the  OfBce  of  Educa- 
tion of  the  United  States  Department  of 
Health.  Education  and  Weira.'e  the  Com- 
munity Action  Program  of  the  Office  of  Eco- 
nomic Opportunity,  and  the  Vocational  Re- 
habilitation Procram  of  the  New  York  City 
AJ».L.-C.I.O  Central  Labor  Council. 

In  1970-71  he  worked  with  the  Secretary 
of  Labor  of  Puerto  Rico  m  developing  a  pro- 
gram for  pubUc-semce  emplovment  of  un- 
employed youths. 

Dr  Nixon  was  a  member  of  the  board  of 
editors  of  Science  and  Sck  letv.  a  scholarly 
quarterly;  chairman  of  the  subcommittee  on 
construction  industry  of  the  Employment 
Opportunities  Committee.  New  York  and  a 
member  of  the  Manpower  Task  Force,  the 
New  York  Urban  Coalition  ar.d  of  many  pro- 
fessional  .societies 

Survlv-inK  are  his  widow,  the  former  Flor- 
ence GuUd,  hlA  mother.  Mrs  May  Nixon,  and 
a  sister,  Mrs.  Lou  Kratha. 


A   memorial   service  will  be  held   later   at 

ColumlDla  University. 

Mr  JAVITS.  Mr.  President,  I  ask  that 
a  copy  of  the  New  York  Times  editorial 
to  which  I  referred,  together  with  a  letter 
dated  Januar>-  31,  1973.  from  the  F*re5l- 
dent  to  the  chairman  of  the  National 
Alliance  of  Businessmen  also  be  printed 
in  the  Record. 

There  being  no  objection,  the  editorial 
and  letter  were  ordered  to  be  printed  in 
the  RECORr.,  as  follows: 

Thi  WHrrE   Hotrs«, 
Washington,  D.C.,  January  31,  1973. 
Mr.  Gordon  M.  Mttcau, 
Chairman, 

Mr.  Richard  C.  Gkrstenbkrg, 
Vice  Chairman,  National  Alliance  of  Busi- 
nessmen, Washington,  D.C. 
Dkah  Gordon  and  Dtck:  The  National  Al- 
liance of  Businessmen  has  performed  a  «u- 
perb  service  to  our  nation  by  encouraging 
American  buslnees  to  provide  Job  c^portunl- 
tles  for  Vietnam-era  veterans,  disadvantaged 
people,  and  needy  youth.  This  fiscal  year,  the 
JOBS  program  htis  already  placed  101.000 
toward  Its  goal  of  150.000  Vietnam -era  vet- 
erans, and  you  have  achieved  equallv  Impres- 
sive results  from  your  efforts  on  behalf  of 
the  disadvantaged  and  needy  youth.  This 
has  been  accomplished  at  a  low  cost  to  the 
government  because  of  the  contributions  and 

skills  of  the  American  business  community 

an  achievement  which  merits  the  gratitude 
of  all  our  fellow  citizens. 

In  view  of  its  remarkable  success  to  date, 
I  would  like  the  Alliance  to  consider  con- 
tinuing its  efforts  through  June  30.  1976  To 
complement  our  goal  of  IncreasUig  efficiency 
In  government,  the  business  acumen  repre- 
sented in  your  organization  should  be  di- 
rected toward  streamlining  the  Alliance  for 
a  more  concentrated  focus  on  large  and 
medium-sized  employers  in  areas  having  sub- 
stantial disadvantaged  populations.  In  ad- 
dition, I  hope  you  will  include  among  your 
priorities  the  following: 

1.  Developing  Jobs  and  training  in  the 
private  sector  for  disadvantaged  persons  and 
place  Vietnam-ear  veterans,  with  special  In- 
creased emphasis  on  handicapped  veterans 
disadvantaged  veterans,  and  thoee  who  are 
members  of  minority  groups  or  under  3S 
years  of  age. 

2  Locate  summer  and  part-time  year-round 
Jobs  for  needy  youth. 

3.  Carry  out  programs  designed  to  break 
the  poverty  cycle  by  encouraging  minority 
and  disadvantaged  youth  to  complete  their 
education  and  prepare  for  meaningful  ca- 
reers in  industry. 

4.  Find  Jobs  for  ex -offenders.  ^ 

5.  Promote  the  hiring  of  public  assistance 
recipients  In  the  private  sector  and  the  use 
of  the  WIN  tex  credit. 

6.  Advise  the  private  sector  of  the  avall- 
abUlty  of  government  funds  to  defray  the 
extraordinary  costs  of  employing  and  train- 
ing the  disadvantaged 

I  am  deeply  grateful  for  the  outstanding 
leadership    you    and    other    chaUrnen    have 
given   the   AUlance.   and   I   look    forward   to 
continued  success  In  vour  Important  work 
With  my  best  wishec. 
Sincerely. 

Richard  Ndcon. 

[From  the  New  York  Times,  Dec.  19.   197S) 
ToKM*   Job   Program 


The  energy  crisis  and  the  threat  of  reces- 
sion confront  national  economic  policy  with 
a  double-edged  problem.  On  one  side,  the 
fuel  shortage  is  causing  production  cutbacks 
and  manpower  layoffs  The  unemployment 
rate,  which  was  4.7  per  cent  last  month 
could  reach  6.5  per  cent  ot  higher  bv  next 
■ummer.  The  Jobless  rolU  would  then  gweU 
from  four  million   to  six  million. 


42806 


CONGRESSIONAL  RECORD  —  SEN  ATE 


December  20,  1973 


On  th*  other  side,  Uie  energy  crisis  Is  al- 
ready Intensifying  Inflationary  pressures.  Rls- 
ing  fuel  costs  are  hitting  both  consumers  and 
Industry  In  addition,  an  easier  monetary 
oollcy  designed  to  check  recessionary  forces 
Is  sure  to  keep  spending  high  next  year  at  a 
time  of  Intense  supply  dlfllcultles.  And  stag- 
nating Industrial  productivity  Is  likely  to 
boost  unit  labor  costs,  putting  extra  pres- 
sure on  the  price  structure. 

To  deal  with  this  double  danger  of  unem- 
ployment and  Inflation,  speclflc  manp>ower 
an  j  waf^e-prlce  policies  are  needed.  Bouse  and 
Senate  conferees  have  now  reached  a  com- 
promise with  the  Administration  on  man- 
power legislation:  the  compromise  Involves 
acceptance  bv  Congress  of  a  consolidation  of 
manpower  programs  with  stat*  and  local 
irovemments  in  exchange  for  acceptance  by 
the  Administration  of  an  emergency  public 
emoloyment  program 

But  the  public  service  }oba  program  calls 
for  outlays  of  only  1350  million  In  the  current 
fiscal  year  that  ends  June  30,  and  1350  million 
In  flseal  1975  That  program  would  permit 
creation  of  only  atxiut  40.000  Jobs.  limited  to 
areas  where  the  unemployment  rate  exceeded 
65  per  cent  But  If  the  Arab  oil  embargo 
should  last  through  most  or  all  of  next  year, 
unemployment  would  be  far  greater — and  the 
public  service  Job  outlays  contained  In  the 
present  manpower  bill  would  b«  pitifully 
Inadequate. 

The  Oovernment  should  be  planning  for 
far  larsrer  nubile  service  Jobs  In  areas  of 
genuine  need,  such  as  health,  saniutlon, 
conservation,  etc..  Instead  of  waiting  for  the 
emergency  to  worsen. 

Mr  NELSON  Mr  President,  T  wish 
to  Join  the  Senator  from  New  York  In 
commending  the  excellent  work  of  the 
members  cf  the  staff,  which  Included 
John  Scales,  of  the  minority  staff:  Rich- 
ard Johnson,  majority  counsel:  as  well 
as  BUI  Soring,  until  recently  a  member 
of  the  subcommittee  staff  who  agreed  to 
come  down  from  Boston  for  2  weeks  to 
be  present  to  a5sl"'t  the  conferees. 

Mr  President,  I  agree  with  the  Sena- 
tor from  New  York  that  the  conference 
accomplished  what  we  .<;et  out  to  do, 
which  was  to  design  a  program  that 
wou'd  place  the  admini'Jtnition  of  the 
program  at  the  State  and  local  level;  to 
take  the  management  of  the  program 
away  from  the  Federal  Government  and 
place  the  management  and  control  of 
programs  at  the  State  and  local  level 
where  the  problems  are  best  understood 
and  can  best  be  met 

Mr  JAVTTS.  Mr  President,  we  are 
ready  to  vote 

Mr.  WILLIAMS  Mr  President,  in  a 
few  moments,  the  Senate  will  have  an 
opportunity  to  ratify  the  conference  re- 
port on  S.  1559.  the  Comprehensive  Em- 
ployment and  TYalnlng  Act  of  1973. 

Earlier  today,  the  House  overwhelm- 
ingly expressed  Its  approval.  .\s  chair- 
man of  the  Labor  and  Public  Welfare 
Committee,  I  would  urge  my  colleagues 
to  do  likewise 

In  1962.  with  the  passage  of  the  Man- 
power Development  and  Training  Act, 
Congress  first  recognized  its  responsi- 
bilities to  those  of  our  citizens  who  were 
not  only  without  jobs,  but  were  without 
skill,  and  perhaps  worst  of  all,  were  with- 
out hope  Two  years  later.  Congress  fol- 
lowed with  the  Economic  Opportunity 
Act. 

To  me.  the  results  of  these  pioneering 
efforts  have  been  most  gratifying.  Un- 
der the  aegis  of  program*  like  that  at 


OIC.  the  Job  Corps,  Neighborhood  Youth 
Corps,  and  Community  Action  Agencies, 
to  name  but  a  few.  countless  thousands 
of  persons  have  been  transformed  from 
among  the  unmotivated  and  unskilled  to 
those  who  now  function  as  self-support- 
ing and  productive  citizens — both  in  an 
economic  and  social  sense  But  of  course, 
satisfaction  goes  well  beyond  tangibles 
such  as  productivity  and  Income.  In 
many  respects,  what  these  programs 
have  brought,  no  accountant's  ledger  will 
ever  be  able  to  measure  There  is  no  price 
tag  on  pride,  dignity,  and  self-respect. 

As  good  as  the  programs  were  In  the 
past,  we  In  Congress  would  have  been 
remiss  If  we  did  not  strive  to  Improve 
their  delivery  systems,  or  try  to  develop 
new  ways  to  maximize  the  resources  ap- 
propriated for  such  activities.  In  draft- 
ing the  original  version  of  S  1559  this 
summer,  and  In  recognition  of  this  very 
point,  the  Labor  and  Public  Welfare 
Committee  said  In  ita  report: 

Manpower  programs  can  best  be  planned 
and  administered  at  the  State  and  local  level, 
but  with  financial  support,  technical  assist- 
ance, and  oversight  of  the  Federal  Govern- 
ment to  ensure  that  programs  are  carried  oiit 
In  accordance  with  legislatively  established 
National  objectives  .  the  framework  for 
such  decentralization  must  be  worked  out 
through  the  legislative  process. 

I  believe  that  the  bill  before  us  today, 
as  it  has  emerged  from  conference,  em- 
bodies the  philosophy  as  enunciated  by 
the  committee. 

I  think  It  particularly  noteworthy  that 
the  agreed-upon  bill  includes  a  provision 
for  continuing  the  highly  successful  and 
much-needed  public  emplovment  pro- 
gram fPEP) .  Bv  including  this  element 
In  the  comprehensive  manpower  bill,  the 
conferees  have  recognized  the  merit  and 
objectives  of  S.  1560.  a  Senate- passed  bill 
which  is  designed  to.  among  other  things, 
extend  the  Emergency  Emi^oyment  Act 
through  flscaJ  year  1975. 

Without  question,  the  public  employ- 
ment program  has  proved  Its  worth  many 
times  over.  A  consulting  team  was  com- 
missioned by  the  Committee  on  L«lx>r 
and  Public  Welfare  to  evaluate  the  first 
18  months  of  the  program.  Their  report 
stated  unequivocally  that: 

PEP  his  demonstrated  Its  effectiveness  as 
a  countercyclical  strategy  K  permanent  pro- 
gram should  tM  creAted.  .  .  . 

During  the  past  2  years,  over  280.000 
persons  have  found  employment  with  the 
program.  In  my  own  State  of  Ne^  Jersey 
alone,  over  17.000  men  and  women  have 
been  olaced  In  Jobs  which  have  provided 
additional  government  services  to  citi- 
zens throughout  the  State. 

The  biggest  proponents  of  PEP — aside 
from  the  unemployed  who  have  derived 
Its  benefits  directly,  have  been  the  State's 
mayors  and  other  local  government  offi- 
cials. 

To  best  Illustrate  this  point.  I  would 
like  to  briefly  quote  excerpts  from  the 
testimony  of  two  distinguished  New  Jer- 
sey mayors: 

Mayor  .Arthur  J  Holland,  of  Trenton — The 
Public  Employment  Program  (PKP)  estab- 
lished by  the  Emergency  Employment  Act 
of  1971.  has  been  the  beat  program  to  come 
out  of  Washington  In  the  last  four  years  of 
those  that  were  Intended  to  me«t  the  needs 
of  the  cttlee. 


This  particular  program  Is  the  greatest 
thing  that  has  happened  to  our  city  In  the 
last  several  years.  It  has  enabled  us  to  main- 
tain essential  services  which  otherwise  would 
have  to  be  sustained  through  additional  tax- 
ation or  be  reduced.  It  has  enabled  the  City 
of  Trenton  to  m&lntaln  essential  services  for 
which  funds  were  not  available.  Moreover, 
PEP  proved  to  be  a  (nost  effective  manpower 
program,  providing  on-the-job  training,  as 
well  as  opportunity  for  educational  advance- 
ment. 

Mayor  Patricia  Sheehan.  of  New  Bruns- 
wick— Public  employment,  in  the  view  of 
many  economists,  Is  the  least  Inflationary  way 
to  expand  the  economy's  employment  op- 
portunities .  .  .  Public  employment  .  .  .  pro- 
duces nearly  one  dollar's  worth  of  employ- 
ment for  each  dollar  expended  .  .  .  [A|  sec- 
ond and  strongest  Justification,  from  our 
point  of  view,  is  the  desperate  shortage  of 
public  goods  and  services  which  our  cities 
face  .  .  .  |j|ob  needs  to  excess  of  five  times 
the  present  level  of  PEP  have  been  Identified. 

These  statements  truly  speak  for 
themselves. 

In  an  attempt  to  maintain  continuity 
with  existing  manpower  programs,  the 
bill  provides  that  each  prime  sponsor 
must,  as  a  condition  for  receiving  flnan- 
clad  assistance,  make  appropriate 
arrangements  with  community  based 
organizations  serving  the  poverty  com- 
mimlty.  It  Is  hoped  that  a  successful  and 
mutually  beneficial  partnership  can  be 
developed  between  these  existing  groups 
and  the  sponsoring  units  of  local  govern- 
ment. 

Although  the  bulk  of  the  authorized 
funds  will  go  directly  to  State  and  local 
sponsors,  a  significant  portion  will  be  re- 
tained by  the  Secretary  of  Labor  so  that 
supplemental  mtmpower  services  can  be 
provided  to  special  groups  which  have 
historically  demonstrated  an  extraordi- 
nary crlUcal  need  for  Job  training  and 
allied  services.  Among  the  groups  specif- 
ically enumerated  as  target  recipients 
will  be  persons  of  limited  English-speak- 
ing abUlty.  older  workers,  youth,  offend- 
ers, and  veterans. 

With  regard  to  directing  the  Secretary 
to  give  special  attention  to  youth  pro- 
grams, I  am  gratified  by  the  decision  of 
the  conferees  to  note  the  valuable  con- 
tribution made  by  summer  programs  for 
economically  disadvantaged  youth,  es- 
pecially In  the  area  of  recreation  and 
related  Job  opportunities. 

The  bill  will  mandate  that  speclflc 
sums  be  set  aside  for  Indian  and  Alaskan 
Natives,  as  well  as  for  seasonal  and 
migrant  farmworkers.  As  former  chair- 
man of  the  first  Migratory  Labor  Sub- 
committee. I  can  personally  attest  to  the 
needs  of  the  group  which  has  for  too  long 
been  shortchanged  In  so  many  aresa.  I 
would  hope  that  the  Secretar\-  takes  note 
of  the  specific  language  of  the  bill  which 
reserves  to  these  farmworkers  "not  less 
than  5  percent  of  the  amount  allocated 
pursuant  to  section  103fa^  OK"  ThLs  set 
aside  Is  Intended  to  be  a  floor,  not  a 
celling. 

As  one  of  the  earlv  supporters  and 
proponents  of  the  Job  Corps,  the  decision 
to  retain  Intact  this  program  Is  one 
which  I  find  most  pleasing,  I  would  hope-- 
that  the  Secretary  would  make  every 
effort  toward  rebuilding  the  program 
so  that  It  will  once  again  be  able  to 
achieve  Its  full  vitality  and  capability 

And  flnally,  I  would  like  to  draw  my 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42807 


coUeagues'  attention  to  a  provision 
creating  a  National  Commission  for 
Manpower  Policy.  I  believe  Its  need  Is 
long  overdue.  In  conjunction  with  the 
establishment  of  the  Commission,  the 
bill  directs  the  Secretarj-  to  make  an 
Immediate  .study  "of  the  Impact  of  energy 
shortages.  Including  fuel  rationing,  upon 
manpower  need.s  "  At  this  point.  I  might 
add  that  in  the  ven--  rn^ar  future,  the 
Labor  Committee  will  hold  a  series  of 
hearings  on  the  subject  of  "The  E^nergy 
Crisis  and   Emplovment  Dislocation  " 

Mr.  SCHWEIKER  Mr.  President.  I  am 
very  pleasfd  that  we  are  at  last  taking 
final  action  on  a  comprehensive  man- 
power training  bill.  This  has  been  a 
critical  national  priority,  and  as  a  mem- 
ber of  the  Labor  Subcommittee,  I  have 
had  the  opportunity  of  participating  In 
this  effort  from  start  to  flni.-^h  I  would 
like  to  commend  the  leadership  of  the 
Labor  Subcommittee,  and  of  the  fuU 
Senate  Labor  and  Public  Welfare  Com- 
mittee, for  their  determined  and  crea- 
tive leadership  on  this  bill.  S.  1559  Is  a 
strong  bipartisan  effort,  and  the  credit 
for  this  bill  belongs  on  both  sides  of  the 
Senate  aisle. 

In  addition.  I  am  particularly  pleased 
that  the  opportunities  industrialization 
centers  program,  which  started  In  Phila- 
delphia. Is  specifically  Included,  by  name, 
In  this  legislation.  This  is  the  first  time 
since  the  Civil  War  that  a  national  black 
program  has  been  so  honored  In  Federal 
legislation,  and  no  group  is  more  deserv- 
ing of  this  honor  than  OIC,  which  has 
been  so  successful  under  the  Inspired 
leadership  of  Rev.  Leon  Sullivan. 

Mr.  President,  Reverend  Sullivan  has 
sent  me  a  letter,  asking  that  I  convey  to 
all  of  my  colleague  in  the  Senate  his 
sincere  appreciation  for  the  special 
recognition  accorded  OIC.  Although 
Reverend  Sullivan  has  specifically 
thanked  the  Senate  leadership,  the  Labor 
Committee,  and  the  cosponsors  of  S.  136, 
the  OIC  bill.  I  know  he  is  grateful  to 
every  Member  of  this  bodj'  who  played 
a  part  for  the  prompt  action  which  has 
occurred  on  this  bill.  I  ask  that  the  full 
text  of  Reverend  Sullivan's  letter  be  In- 
serted in  the  Record  at  this  point.  Mr. 
President,  because  I  think  this  letter 
confirms  the  importance  of  the  step  we 
are  taking  in  approving  S.  1559  today. 

Their  being  no  objection,  the  letter 
was  ordered  to  be  printed  In  the  Record, 
as  follows. 

OIC's  or  America, 
Philadelphia.  Pa.,  December  19,  1973. 
Senator  Richakd  S  Bchwxikkx 
New  Senate  Office  Bldg  , 
Washington.   D  C 

DiAa  .SE.VATOR  ScHWEiKxs:  On  behalf  of 
hundreds  of  thoiisands  of  economically  dis- 
advantaged Americans  living  in  the  Black 
Inner  city  ghetto*,  the  Mexican -American 
barrloe.  the  Appalachian  hollows,  and  the 
Indian  reservations  where  OIC  1.=;  training 
men  and  wrmen  to  take  meanlnRful  Jobs  I 
want  to  thank  yoi-  for  vour  efTorts 

You  have  worked  dlHirently  tr>  make  pos- 
sible the  Inclusion  of  OIC  In  the  1973  legis- 
lation and  be.  ause  you  were  willing  to  take 
the  initiative  many  months  a^o  antl  liitro- 
duce  a  Bill.  S  136,  with  your  colieaKues 
Senator  Hugh  Scott.  Senator  Edward  Ken- 
nedy and  Senator  Jacob  Javl;*,  has  le<l  us  to 
this  day  when  we  arr  a  part  c.J  the  nation's 
manpower  delivery  system,  by  law  The  fact 
that   through   your  efforts  you   were  able   to 


enlist  the  oo-sponsors  of  S  136  by  28  addi- 
tional senators  Is  perhaps  one  of  the  most 
encouraging  demonstrations  of  why  poor 
p»eople  and  minorities  can  continue  tc  have 
faith  In  our  democratic  system  of  govern- 
ment. We  are  ^'rateful  from  210  cities  ai^d 
41  States  where  we  are  now  operating,  to 
all  32  senators  who  ro-sponsored  S  136  and 
made  it  possible  for  our  inclusion  In  S  1659 
as  a  section  of  the  BUI.  Thanks  therefore 
go  to: 

Senator  Case   iR)    New  Jersey. 

Senator  Williams   (D)    .s'ew  Jersey 

Senator  Brooke  iRi  Massachusef^. 

Senator  Kennedy   i  D  i    Ma-ssachusetts. 

Senator  Humphrey   (Di    Minnesota. 

Senator  Mondale  (D)  Minnesota. 

Senator  Bayh   (D)    Indiana 

Senator   Hartke    (D)    Indiana. 

Senator  1^11    iD)   Rhode  Island. 

Senator  Pastore  (D)  Rhode  Island, 

Senator  Stevenson  (D)   Illinois. 

Senator  Tunney   (D)   California. 

Senator  Taft  (R)   Ohio. 

Senator  BelUnon  (R)   Oklahoma. 

Senator  Bentsen  (D)  Texas. 

Senator  Eagleton   (D)   Missouri. 

Senator  Dole   (R)    Kansas. 

Senator  Hatfield    (R)    Oregon. 

Senator  Baker  (R)   Tennessee. 

Senator  Pulbrlght   (D)   Arkansas. 

Senator  McOovem   (D)   South  Dakota. 

Senator  Haskell   (D)   Colorado. 

Senator  Randolph   (D)    West  Virginia. 

Senator  Gravel   (D)    Alaska. 

Senator  Muskle  (D)  Maine. 

Senator  Hathaway   'D)    Maine. 

Senator  Oooke  (R)  Kentucky. 

Senator  Javlts   (R)   New  York. 

Senator  Scott  (R)   Pennsylvania. 

Beyond  this.  Senator  SchweUcer.  we  wish  to 
extend  our  special  appreciation  to  the  Major- 
ity Leader,  Senator  Mansfield,  and  the  Minor- 
ity Leader.  Senator  Hueh  Scott,  who  gave 
leadership  during  the  passape  of  S  1559  by 
a  memorable  B8  to  5  vote  which  doubtless  In- 
fluenced both  the  President  and  the  House  of 
Representatives  to  seriously  consider  the 
great  potentiality  for  the  passage  of  mean- 
ingful manpower  legislation  that  could  In- 
clude both  the  concepts  of  decentralization 
and  comprehensive  planning  and  still  retain 
much  of  the  expert  knowledge  that  we  have 
learned  over  the  past  ten  years  In  OIC  and 
other  training  programs  that  have  been 
effective. 

It  can  tnily  be  said,  as  in  the  words  of 
Winston  Churchill,  "never  have  eo  many 
owed  so  much  to  so  few".  Countless  millions 
who  have  been  unemployed  and  underem- 
ployed because  of  conditions  beyond  their 
control  In  terms  of  socio-economic  condi- 
tions and  racial  discrimination,  now  know 
that  their  government  cares  and  has  taken 
some  concrete  steps  to  do  something  about 
the  problems.  Additional  millions  who  have 
l>een  unemployed  most  recently  due  to  tech- 
nological change  though  thev  were  not  han- 
dicapped by  economic  dl.vidvantAge  or  mi- 
nority status  until  the  advent  of  an  aero- 
space crisis  or  an  energy  ctIbi-^ — thew  too, 
know  that  their  government  has  established 
machinery  to  do  something  about  creating 
Jobs  and  retraining  technologically  ur.em- 
py-vpd  .fmerlcan?;  so  that  thev  can  main- 
tain their  pride  and  solve  their  own  eoo- 
nomlCfproblems  bv  enttadnj:  in  useftil  work. 
OIC  has  already  worked  diligently  to  train 
almost  200  (X>0  person.^  Our  roel  Is  to  train 
100.000  per  year  for  the  next  10  years  and 
to  coordinate  our  efforts  with  those  of  the 
(rovemment  and  Industry  to  carry  oi;t  com- 
prehensive plans  that  wUl  help  the  nation 
reach  the  goal  of  economic  superlorltv  and 
equal  opportunity  for  all  our  ritlz^'n*  We 
thank  you.  Senator,  for  your  efforts  along 
with  those  of  your  colleagues  to  make  this 
possible. 

Sincerely, 

Rev.    L«0N    StTLLIVAN, 

Chatrman  of  the  Board. 


THE  COMPREaBMBlVE  EMPLOY- 
MENT A-NT)  TRMNING  ACT  OP 
:973— S.  1559 — CONFERENCE  RE- 
PORT 

Mr.  CRANSTON.  Mr.  President,  at  the 
outset,  I  want  to  thank  the  dlstlnguLshed 
Senate  floor  manager  cf  the  corJerence 
report  'Mr,  Nelscn)  and  Senators  Ja- 
viTs  and  Taj-t.  the  minority  leaders  on 
the  subcommittee  and  fuU  committee, 
.'-espectlvely,  for  their  many  courtesies 
lo  ine  and  for  their  most  s>Tnpathetlc 
consideration  of  amendment-s  which  I 
offered  durmg  Senate  consideration  as 
well  as  their  support  of  my  efforts  m 
conference.  I  wouid  also  like  to  take  this 
opportunity  to  express  my  special  appre- 
ciation to  Senator  Hathaway  for  his 
presentation  of  several  areas  of  concern 
of  mine  during  a  period  when  I  was  un- 
able to  be  present  at  the  conference  com- 
mittee deliberations. 

Mr,  President,  along  with  my  col- 
leagues on  the  Labor  Committee,  I  have 
studied  the  measure  before  us  In  great 
detail.  I  believe  it  to  be  a  most  reason- 
able bill,  and  I  urge  the  Senate  to  join 
with  us  in  support  of  the  conference 
report  on  S.  1559. 

BACILGROTTtlD 

Mr.  President,  because  I  think  the  de- 
velopment of  this  legislation  has  been 
so  Important.  I  would  like  to  discuss 
briefly  the  history  of  this  measure 

Earlier  this  session,  on  Julv  24,  the 
Senate  passed  S  1559,  then  titled  the 
"Job  Training  and  Community  Services 
Act  of  1973. '■  Subsequently,  on  Julv  31 
the  Senate  passed  S.  1560,  "the  Emer- 
gency Emploj-ment  Amendments  of 
1973."  On  November  28,  the  House  pa.ssed 
H.R.  11010,  the  "Comprehensive  Man- 
power Act  of  1973"— lt£  version  of  com- 
prehensive job  training  reform. 

We  were  then  faced  v,ith  a  sltuaUon 
where  the  Senate  had  passed  two  sep- 
arate bills,  S.  1559.  dealing  jith  lob 
training  programs,  and  S  1560*' extend- 
ing and  modifj-lng  the  Emer^encv  Act 
and  the  House  had  one  blD.  H.fk.  11010. 
which  dealt  with  both  manpower  reform 
and  public  ser\1ce  employment, 

I  might  add,  however,  that  the  House 
bill  did  not  actuaUy  extend  the  EEA, 
but  rather  incorporated  many  of  the 
provisions  of  the  EEA  with  respect  to 
section  6  of  that  act,  adding  a  7-percent 
area  imemployment  criterion  for  eligi- 
bility for  public  service  job  funds,  rather 
than  U:e  6-percent  cnt^rion  m  the  EEA. 
for  areas  of  high  unemployment. 

In  light  of  a  number  of  amendments 
to  the  EEA  In  the  Senate  bill  and  some 
Important  restriction  of  present  EEA 
provisions  carried  over  Into  title  n  of 
the  House  bill.  I  felt  tjjat  it  was  impera- 
tive that  the  Senate  amend  S.  1559  to 
add  those  provisions  of  S.  1560  which  had 
counterparts  in  the  House  bill.  This 
would  enable  us,  as  Senate  conferees,  to 
be  able  to  deal  effectively  with  public 
.service  employment  in  the  conference. 
Consequently  I  dLscu&sed  this  concern  of 
mine  with  the  distinguished  subcommit- 
*^ee  chairman,  and  the  ranking  minority 
members  of  the  full  committee  and  the 
subcommittee  Senators  Nelson.  T.irr, 
and  Javtts  agreed 

I  would  like  to  add.  Mr  President,  that 


/ 


42808 


CONGRESSIONAL  RECORD  —  SEN  ATE 


Senator  Hathaway— a  most  knowledge- 
able and  capable  member  of  the  sub- 
committee—was of  srreat  assistance  In 
resolving  this  matter 

Senator  Nelson.  Senator  Tatt,  Senator 
Javiis.  and  I.  then  met  with  Assistant 
Secretary  of  Labor  Kolberg  shortly  after 
the  House  passed  Its  bill  and  discussed 
this  issue  at  some  length.  The  adminis- 
tration raised  no  objection  to  our  pro- 
posed procedure  to  amend  S.  1559  to 
Include  the  relevant  provisions  of  S. 
1560  In  the  conference  on  S.  1559. 

Senator  Nelson  then  worked  out  the 
procedural  matters  surrounding  such  a 
motion,  and  successfully  offered  an 
amendment  to  S.  1553  which  was 
adopted,  and  enabled  us  to  take  the  Im- 
portant Senate  provisions  of  S.  1560  to 
conference. 

PtTBLIC    SKKVICE    JOBS 

Mr  President.  I  believe  that  our  gain- 
ing such  a  modification  of  the  Senate  bill 
has  resulted  In  a  significantly  improved 
title  n— that  title  of  S.  1559,  as  reported 
by  the  conferees,  dealing  with  public 
service  employment — In  the  measure  now 
under  consideration.  One  important 
benefit  from  our  amendment  putting  the 
provisions  of  S.  1560  Into  conference  is 
the  6.5  percent  unemplojTnent  criterion 
which  Is  now  contained  In  title  n  of  the 
conference  report  on  S.  1559.  Had  we 
been  unable  to  get  the  S.  1560  provi- 
sions— which  retained  the  6-percent  cri- 
terion for  section  6  of  the  EEA— into 
conference,  the  House  7-percent  figure 
wx>uld  ver>-  probably  not  have  been  able 
td  be  reduced  in  conference  under  the 
rules  of  the  House. 

Mr     President,    the    Department    of 
Labor  Is  as  yet  unable  to  provide  us  with 
a  definite  determination  as  to  the  areeis 
affected  by  the  compromise  6  5-percent 
unemployment  criterion — but  a  look  at 
this  time  last  year— the  time  of  the  ear- 
liest data  available  right  now— provides 
us  with  an  indication  of  the  effect  of  the 
five-tenths  of   1    percent   reduction   In 
the  unemployment  rate  elgiblity  criterion 
for  title  n  funds,  we  were  able  to  obtain 
in  conference.  In  my  own  State  of  Cali- 
fornia, Oarden  Orove,  Huntington  Beach, 
the  city  of  Orange,  Torrtmce,  Los  Angeles 
County,    Oakland.    Daly    City,    Solona 
County,  and  Yolo  County  all  had  unem- 
ployment rates  between  6  5  percent  and 
7  percent  in  November  of  1972  and  thus 
were  recipients  of  section  6  EEA  moneys. 
Those  commiValties  would  not  have  been 
eligible  for  title  n  pubUc  service  Jobs 
funds  under  the  House  biU  If  their  unem- 
ployment rate  had  not  risen  to  7  per- 
cent— which  seeems  very  unltkcly  In  view 
of  the  reduction  since  then  In  the  na- 
tional rate   I  am  not  yet  certain  of  the 
national  Impact  of  this  reduction,  but  I 
believe  it  will   probably  be  at  least  as 
significant  as  we  exoect  It  to  be  In  Cali- 
fornia. 

Perhaps  the  most  Important  result  of 
our  getting  the  relevant  provisions  of  8. 
1560  into  conference.  Mr.  President,  is 
seen  In  the  authorization  of  approprla- 
Uons  for  tiUe  n  In  the  conference  report. 
Tha  original  House  appropriations  au- 
thorization contained  an  earmarking  for 
UUe  n  funds  of  i250  million  of  amounts 
appropriated  under  the  single  "such 
lurr^v  authorlzaUon  for  appropriations 


December  20,  197S 


for  the  whole  bill  for  fiscal  year  1974  and 
$500  million  for  fiscal  year  1975.  Because 
we  were  able  to  get  the  pertinent  pro- 
visions of  S.   1560   into  the  conference 
with  an  open-ended  authorization  of  ap- 
propriations for  all  4  years  was  fully  ne- 
gotiable carrying  out  the  public  service 
title,  the  title  n  authorization  sunount. 
And  I  think  It  is  clear  that  we  have  made 
a  significant  Improvement,  plus  an  ex- 
press  authorization    for   appropriations 
tlirough  fiscal  year  1977.  Sections  4id) 
and  (e)   of  the  conference  report  com- 
bine to  reserve,  from  amounts  appropri- 
ated under  the  act.  not  less  than  $250 
million  for  fiscal  year  1974  and  not  less 
than  $350  million  for  fiscal  year  1975  for 
public  service  employment  programs  un- 
der title  n— plus   "such  additional  sums 
as  may  be  necessary"  in  those  2  fiscal 
years.  I  cannot  stress  too  strongly  to  my 
colleagues — and    to    the   Appropriations 
Committee — that   the  conferees  regard 
this  reservation  as  a  minimum  reserva- 
tion from  among  amounts  appropriated 
under  the  act.  That  is  why  the  words 
"not  less  than"  were  added  to  the  House 
reservation  language,  which  legal  counsel 
advised  could  well  have  been  construed 
as  a  limitation  on  amounts  expendable 
for  title  n. 

Rather.  Mr.  President,  we  would  hope, 
and  I  very  strongly  urge,  that  the  Appro- 
priations Committee  utilize  the  express 
authorization  of  "such  additional  sums" 
for  this  and  the  next  fiscal  year  to  con- 
tinue public  service  employment  pro- 
grams under  the  new  title  II  at  levels  at 
least  equal  to  the  funding  previously  au- 
thorized under  the  Emergency  Employ- 
ment Act — $1.25  billion  for  fiscal  year 
1974. 

I  cannot  predict  what  will  be  the  un- 
employment situation  in  1976  or  1977. 
Mr.  President,  but  I  believe  that  It  Is 
most  likely  that  we  will  continue  to  find 
millions  of  unemployed  and  underem- 
ployed Americans  looking  for  decent 
Jobs — and  that  we  will  still  find  masses 
of  unmet  public  service  needs.  One  of 
the  major  problems  during  this  entire 
year  with  regard  to  public  service  jobs 
has  been  the  confusion  which  surrounded 
the  whole  EEA  extension  issue.  It  Is  our 
hope  that  the  4-year  authorization  of 
appropriations  for  public  service  Jobs 
under  title  n  that  Is  contained  In  the 
conference  report— with  a  fully  open- 
ended  authorization  for  these  years — will 
enable  the  Appropriations  Committees 
and  the  Congress  to  provide  the  funds  to 
help  to  prevent  that  situaUon  from  re- 
occurring 

TK«    nCPnUTITV    NTKD   V<M    XlfKCTttXtrt   OF 

9     I85» 

BLXAK    JOB    SrrUATlOK 

Mr  President,  this  leglslaUon  will 
reach  the  President's  desk  at  a  particu- 
larly appropriate  time,  as  our  economy 
is  struggling  with  the  effects  of  the 
diminishing  Involvement  In  Indochina— 
and  attempting  to  convert  war  industries 
to  peaceful  and  construcUve  pursuits. 

At  a  time  when  the  working  people  of 
this  country  suffer  the  ever  increasing 
m-effects  of  this  admlnistraUon's  eco- 
nomic policy  failures. 

At  a  time  when  the  crushing  1971  em- 
ployment figures  of  well  over  6  percent 
are  agam  threatening  the  American  la- 


bor force  as  a  result  of  the  energy 
crisis."  Mr.  President,  even  without  the 
looming  menace  of  energy-crlsls-related 
layoffs,  over  4  million  Americans  are  out 
looking  for  work— nearly  400.000  of  them 
In  my  home  State  of  California.  And  the 
growing  ranks  of  the  poor  are  more  than 
ever  the  last  to  get  decent  Jobs  and  the 
first  to  lose  them. 

Tlie  fact  Is,  Mr.  President  that  the  cost 
of  living  In  this  country  rose  8  percent 
in  the  first  6  months  of  1973. 

Blacks,  browns,  Indians,  orientals, 
women,  teenagers  and  other  groups  tra- 
ditionally told  to  stand  at  the  end  of  the 
line  continue  to  search  for  results  after 
the  promising  beginnings  of  the  sixties. 
Yet  a  recently  released  US  Bureau  of 
the  Census  survey  shows  that  the  gap 
between  black  and  white  income  remains 
as  great  as  It  was  in  1967  The  median 
Income  of  black  families  Is  59  percent  of 
that  for  white  families — veritably  the 
same  disparity  that  existed  In  1967  This 
same  survey  reflects,  that  though  some 
real  progress  was  made  In  reducing  the 
number  of  black  Americans  with  Incomes 
below  the  poverty  line  before  1969— 
dropping  from  39  percent  In  1967  to  32 
percent  in  1969— the  32  percent  level  has 
remained  constant  since  1969. 

The  black  Jobless  rate  Ls  10  percent- 
compared  with  Just  under  5  percent  for 
the  rest  of  the  labor  force. 

The  chlcano  Jobless  rate  Is  8  2  percent 

The  Jobless  rate  Is  near  5.9  percent  for 
women. 

The  ghettos,  barrios,  and  Indian  res- 
ervations of  America  continue  to  reflect 
unemployment  rates  of  way  over  20 
percent. 

As  an  original  cosponsor  of  the  Emer- 
gency Employment  Act  during  the  last 
Congress,  I  was  dismayed  to  see  that  the 
President's  fiscal  year  1974  budget  rec- 
ommendations requested  no  exten.slon  of 
EEA  programs  after  the  July  1  explra- 
Uon  date  At  the  time  of  the  budget  mes- 
sage, the  President,  the  Department  of 
Labor,  and  the  Office  of  Management 
and  Budget,  were  all  saying  we  did  not 
need  EIEA  Jobs 

Indeed,  during  the  subcommittee  hear- 
ings on  S  1560,  Assistant  Secretary  of 
Labor  Kolberg  sUted  in  response  to  a 
question  I  raised  about  the  administra- 
tion's failure  to  seek  an  extension  of  the 
EEA: 

However,  despite  the  fact  that  the  EKA 
program  was  mounted  and  njn  etTectlvely 
wlthUi  the  conatralnU  of  time  and  statute, 
the  projected  economic  and  manpower  milieu 
for  Oacal  year  1974  do  not  support  the  exten- 
sion of  this  act  A  number  of  factors  ar^e 
for  nonextenslon  of  this  legislation.  Since 
the  program  began,  unemployment  has  de- 
clined, the  number  of  private  sector  Jobs  has 
increased  substantially,  and  the  financial 
abUlty  of  State  and  local  governmenU  to 
meet  the  demand  for  public  aervtcee  haa 
Improred. 

Apparently,  the  unemployment  diffl- 
culUes  of  4  million  Americans  did  not 
carry  much  weight  with  the  White  House. 

But  now,  Mr.  President,  we  hear  no 
less  an  -authority"  than  the  Chairman 
of  the  Presidents  Councl]  of  Economic 
Advisers,  Dr  Herbert  Stein,  telling  the 
Joint  Economic  Committee  last  week  that 
In  his  estimation  an  unemployment  rate 
increase  of  3  percent  Is     possible"  and 


December  20,  197S 


CONGRESSIONAL  RECORD  —  SENATE 


that  the  administration  Is  giving  con- 
sideration to  a  public  service  jobs  pro- 
gram as  one  "possibility"  for  dealing 
with  unemployment  that  results  from 
the  fuel  shortage. 

Well.  Mr.  President,  clearly,  as  we  have 
learned  all  too  sadly  over  the  last  many 
months,  anything  is  "possible"  in  the 
Nixon  administration.  Today's  "never" 
turns  to  tomorrow's  "maybe"  and  next 
week's  "always." 

Mr.  President,  while  I  believe  that  the 
administration  Ls  unconscionably  late  in 
Its  agreement  with  the  Congress  about 
the  absolutely  essential  extension  of  pub- 
lic service  Jobs  programs.  I  welcome  them 
to  our  view. 

I  believe  that  the  Impact  of  projected 
layoffs  In  energy-related  industries  can 
be  lessened  by  public  service  jobs.  Indeed. 
I  believe  it  is  quite  passible  that,  within 
the  funding  available  to  Individual  prime 
sfwnsors  under  the  new  act,  public  serv- 
ice Jobs  can  contribute  to  the  conserva- 
tion of  energy  In  many  ways.  Such  Jobs 
as  Increasing  the  public  awareness  of  the 
necessity  for  and  ways  of  accomplishing 
energy  conservation:  transportation 
planning:  traffic  control:  organization  of 
car  pools:  the  expected  need  for  local 
level  policing  of  fuel  allocation  programs 
control  of  black-market  activities  which 
have  already  begun  to  surface— at  the 
expense  of  those  least  able  to  pay:  and 
fire  protection  ser\ire.<;— especially  Im- 
portant in  my  home  State,  and  of  grow- 
ing importance  timber,  as  a  fuel  and  en- 
ergy source,  becomes  more  and  more 
scarce  and  fires  thereby  become  more  and 
more  of  an  energy  tlireat  These  would 
all  be  eligible  public  service  Job  actlvltle.^;. 
Council  of  Economic  Advisors  said  before 
the  JEC,  in  dlscu.^siHR  the  impact  of  the 
energy  shortage: 

We  simply  won't  be  able  to  protect  every- 
body against  pain,  or  to  achieve  everybody's 
Idea  of  equity  in  the  distribution  of  that 
pain. 

The  legislation  before  us  today  can,  I 
believe,  aid  in  making  Mr.  Stein's  omi- 
nous prediction  less  painful — not  only 
through  the  provision  of  Jobs,  but  of 
needed  public  services. 

At  Its  most  minimal  level— utilizing 
only  title  n  earmarked  funds,  S.  155.9  as 
reported  by  the  ronfcree.s.  provides  for 
40,000  public  service  jobs  for  fl.';cal  vear 
1974  and  for  55.000  for  fiscal  year  1975  In 
activities  I  mentioned,  as  well  a<;  In  the 
activities  specified  under  the  EEA 

Mr.  President,  I  could  go  on  and  on 
about  the  vital  need  for  enactment  of 
this  legislation- about  the  hundreds  of 
witnesses  who  testified  across  the  country 
on  the  need  for  manpower  program  re- 
form, about  continuation  of  EEA-type 
programs,  about  the  many,  many  ."services 
provided  under  the  EEA  that  will  be 
ended  If  we  do  not  succeed:  about  the 
many  Individuals  and  families  who  so 
depend  on  us  responsibly  to  continue  a 
commitment  made  to  them  years  ago. 
But  I  do  not  think  that  Ls  neces.sary  to- 
day. We  all  have  heard  over  and  over 
again  about  the  need  for  this  bill  The 
difference  Is  that  this  tune  I  have  no 
doubt  that  we  will  have  a  law — and  not 
Just  a  another  futile,  frustrating  con- 
frontation with  the  administration. 


42809 


IMPACT    or    CONnCKKNCE    DECISIONS 

Mr,  President,  during  the  development 
of  the  legislation  now  imder  considera- 
tion, I  offered  a  number  of  amendments 
in  subcommittee  to  both  S.  1559  and 
S.  1560.  as  well  as  several  floor  amend- 
ments to  S.  1560,  and  was  fortunate  to 
gain  their  inclusion  in  S.  1559  and  S.  1560 
as  passed  by  the  Senate.  I  would  like 
now  to  discuss  the  disposition  of  several 
of  these  provisions  by  the  conference 
committee. 

TlmANB    UNEMPLOTMKNT 

In  S.  1560,  we  attempted  to  focus  more 
directly  on  the  long-term  unemployed 
and  the  disadvantaged— particularly  the 
employment  problems  of  the  Vietnam  era 
veteran.  S.  1560  as  passed  required  that 
50  percent  of  the  EEA  Jobs  be  set  aside 
for  veterans  of  the  Vietnam  era.  It  also 
reserved  the  remaining  jobs  for  the  eco- 
nomically disadvantaged  and  those  who 
had  been  seeking  work  unsuccessfully  for 
15  weeks  or  more. 

I  worked  in  subcommittee  with  Sen- 
ator Nelson  to  develop  the  veterans'  pro- 
vision U)  provide  a  much  .sharper  focus 
for  the  activities  of  local  program  agents 
under  the  EEA.  Instead  of  "special  con- 
sideration" as  in  existing  law,  S.  1560, 
as  reported  to  the  Senate,  required  each 
program  sponsor  to  make  commitments 
that  by  the  end  of  f5.sciil  year  1974  not 
less  than  50  percent  of  the  Jobs  sup- 
ported with  EEA  funds  would  be  filled  by 
Vietnam  era  veterans  or  disabled  vet- 
erans Specific  steps  designed  to  meet 
that  commitment  were  to  be  set  forth  In 
plans  submitted  to  the  Secretary.  More- 
over, these  plan.s  were  to  describe  the 
types  of  Jobs  to  be  made  available  to 
veterans  which  should  utilize  the  .skills 
they  acquired  while  in  militarj-  .service- 
As  chairman  of  the  Health  and  Hospi- 
tals Subcommittee  of  the  Veteran.';'  .A.f- 
falrs  Committee,  and  the  past  chairman 
of  the  Subcommittee  on  Veterans'  Af- 
fairs of  the  Labor  and  Public  Welfare 
Committee  prior  to  the  Legislative  Reor- 
ganization Act  of  1970.  I  have  been  a 
major  participant  in  the  efforts  of  the 
Congres.s  over  the  Last  4  years  to  give 
veterans  employment  programs  a  higher 
prionty  in  the  pre.srnt  admini.stration 

I  t>elleve  the  compromLse  we  were  able 
to  reach  with  House  on  this  issue  is  ac- 
ceptable 

I  would  like  to  rail  to  the  attenUon  of 
the  Senate  the  relevant  section  of  the 
Joint  explanatory  statement  of  the  com- 
mittee of  conference  on  these  two  issues 
It  states: 

The  House  amendment  requires  that  a 
person  be  u:.emp:oyed  for  at  lea.-;!  30  days 
to  qualify  under  the  program.  The  Senate 
amendment  limits  elU?lbUlty  to  those  who 
have  been  unemployed  for  15  weeks  and  to 
those  who  are  unemployed  or  underemployed 
and  from  economically  disadvantaged  back- 
erounds  but  these  requirement*  mav  be 
waived  In  the  case  of  persons  unemployed  as 
ft  result  of  certain  .-lasingo  of  or  rutbacks.  In 
Defense  Department  facilities  TT.e  Senate 
recedes  with  the  understanding  that  a  per- 
son who  has  been  unemployed  for  =it  least 
30  days  means  a  F>erson  who  has  been  with- 
out work  for  30  days  or  longer  for  reascrjs 
other  than  strike  or  lockout  at  his  uFjal  place 
of  employment,  and  (1)  has  made  specific 
eiTorta  to  find  a  Job  within  the  past  i  weeks. 


(11)  U  not  waiting  to  be  caUed  back  to  a 
Job  from  which  he  has  been  laid  oft,  or  (111) 
la  not  expecting  to  report  to  a  new  Job  other 
than  a  Job  funded  under  the  Act,  within  the 
next  30  days. 

The  Senate  amendment  retains  the  provi- 
sions of  the  Emergency  Employment  Act  re- 
quiring that  programs  be,  to  the  extent  feasl- 
ble,  designed  with  a  view  to  upward  mobility 
and  continued  training    The  House  recedes. 

The  House  amendment  requires  that  per- 
sons hired  re-slde  in  the  area  of  substantial 
unemployme:,t  and  that  the  service  provided 
be  for  the  benefit  of  the  residents  of  such 
areas,  The  Senate  amendment  has  no  com- 
parable provision.  The  Senate  recedes. 

The  Senate  amendment  requires  a  plan 
which  Includes  a  commitment  that  by  the 
end  of  fiscal  year  1974,  50  percent  of  the  Jobs 
supported  under  the  act  be  filled  by  disabled 
or  Vietnam  era  veterans  The  House  amend- 
ment requires  that  special  consideration  In 
filing  public  service  employment  jobs  be 
given  to  unemployed  veterans  (discharged 
under  conditions  other  than  dishonorable) 
who  hare  served  In  Indochina  or  Korea.  The 
Senat*  re-ede'?  with  an  amendment.  Special 
consideration  Is  to  be  given  to  veterans  who 
have  .served  in  Indochina  or  Korea  on  or  aft«r 
Augu.st  5  1964  other  than  those  who  h.Bve 
been  dishonorably  discharged  and  the  appli- 
cant must  describe  the  specific  steps  he  wUl 
undertake  to  provide  such  special  considera- 
tion. 

Mr.  President,  the  description  of  the 
.specific  steps  the  program  agent  must 
take  with  regard  to  providing  the  re- 
quired special  consideration  for  veterans 
in  filling  public  service  jobs  is  very  simi- 
lar to  that  contained  in  S  1560  as  passed 
by  the  Senate,  and  I  would  expect  as  the 
author  of  both  the  Senate  provision  and 
the  compromise  language  in  the  confer- 
ence report,  that  the  Secretary  would 
.scrutinize  the  plans  of  program  agents 
to  carry  this  out  and  to  stress  utilizing 
the  militar\-  training  and  experience 
veterans  and  to  notify  veterans  of  these 
jobs  most  carefully  in  carrying  out  his 
duties  under  the  act.  i 

During  the  Senate  consideration  of  S.  '^ 
1560,  I  offered  several  amendments 
which  were  adopted  and  subsequently  in- 
cluded in  those  previsions  wJuch  were 
added  to  S.  1559  as  it  went  to  conference 
as  the  result  of  the  Nelson  floor  amend- 
ment Some  were  not  specifically  or  fully 
retained  in  the  conference  repori  Itself, 
which  I  would  like  to  discuss  now. 

I  offered  a  provision  which  altered  sec- 
tion 14  of  the  EEA— the  definition  section 
of  the  act— to  include  in  the  definition  of 
"pubilc  service  jobs."  work  in  '  veterans 
outreach'  program  as  well  as  a  definition 
of  "veterans  outreach." 

This  latter  definition  would  include  the 
veterans  outreach  .senices  program  car- 
ried out  under  the  provisions  of  sections 
240  and  241  of  title  38.  United  States 
Code,  and  provided  for  the  "full  utiliza- 
tion" in  these  VA  outreach  programs  of 
veterans  receiving  GI  bill  assistance  or 
participating  in  vocational  rehabilitation 
programs  under  chapter  31  of  title  38, 

Mr  President,  as  the  author  of  the 
veterans  outreach  services  program  es- 
tablished in  the  provisions  of  section  240 
and  section  241  In  .subchapter  IV  of  title 
38  of  the  United  States  Code,  I  sought 
through  this  amendment  to  enhance  the 
effectiveness  and  relevance  of  the  out- 
reach  services   which   can   be   provided 


42810 


CONGRESSIONAL  RECORD  —  SENATE 


through  the  EEA— especially  the  'split 
jobs"  concept.  Under  this  Utle  38  pro- 
gram, outreach  services  are  provided  de- 
signed to  assure  that  all  veterans  are 
aware  of.  and.  hopefully,  take  advantage 
of  the  readjustment  and  other  benefits  to 
to  which  they  are  entitled. 

SecUon  240  of  title  38  directs  the  VA 
actively  to  seek  out  ehjrtble  veterans  and 
their  dependents — and  personally  con- 
tact those  veterans  who  are  disadvan- 
taged—to  insiire  that  they  have  this  In- 
formation and  to  counsel  them  as  to  their 
various   eligibilities. 

Utilization  of  the  proven  split- Jobs 
concept  In  veterans'  outreach  programs 
through  the  Emergency  Employment  Act 
Is  one  step  we  can  take  to  provide  a  fair 
chance  to  these  rr.en  and  women — espe- 
cially GI  bill  tramees  needing  part-time 
Jobs  to  meet  their  expenses  In  our  over- 
Inflated  economy — to  become  employed 
in  productive  pubUc  service  work  and 
not  have  to  wage  the  misdirected  war  on 
Inflation  at  home  after  the  sacrifices  we 
have  already  called  upon  them  to  make 
In  Indochina. 

Under  the  S.  1560  pro\-lslon  as  Inserted 
In  S.  1559  for  conference.  Mr  President. 
we  sought  to  double  the  help  the  EEA 
provides  to  returning  and  recently  re- 
turned veterans  by  hiring  vets  In  public 
service  Jobs  to  help  other  veterans  learn 
about  and  make  use  of  their  GI  bill  as- 
sistance benefits  and  to  help  direct  them 
toward  productive  Job  opportunities  as 
weU 

The  1971  Labor  and  Public  Welfare 
Committee  report  on  S.  31.  the  Senate 
EEA  bill  (Senate  report  No.  92-48),  In- 
cluded language  I  proposed  discussing  the 
concept  of  "split-Jobs"  under  the  Emer- 
gency Employment  Act  for  veterans.  The 
report  states: 

.[Tlhe  Committee  believes  that  there 
to  s  great  opportunity  under  this  public 
service  smployment  program  to  assist  educa- 
tionally and  economlcaUjr  disadvantaged  vet- 
erans enrolled  In  college  under  the  OI  bUl 
and  who  are  struggling  to  make  ends  meet. 
Many  more  of  these  men.  who  often  are 
high  echool  dropouts,  coxild  pursue  college 
or  Junior  coUege  traming  \X  they  had  part- 
time  Jobs  to  supplement  their  OI  bUl  educa- 
ttonal  assistance  allowances. 

The  Committee  Is  hopeful  that  the  Secre- 
tary of  Labor  would  ?lve  serious  considera- 
tion to  the  great  potential  of  such  an  alloca- 
tion of  public  servtoe  jobs.  Along  the  same 
Unes  the  Committee  feels  that,  to  the  extent 
practicable,  he  should  also  give  special  pref- 
erences to  veterans  disabled  with  service - 
connected  conditions  who  are  nevertheleaa 
employable 

While  I  would  hav  preferred  retention 
of  the  definition  of  "outreach  sen-ices" 
In  the  conference  report  before  us  today 
It  was  decided  by  the  conference  that 
such  a  definition  was  not  abeolutely  nec- 
essary—«lnce  the  Secretary  has  uUllzed 
the  split-Jobs  concept  In  the  past,  since 
veterans  outreach  programs  are  stressed 
In  title  n  In  section  205'c»  '5)  of  the  bill. 
since  the  term  "veterans  outreach"  was 
retained  in  the  definition  of  "pubUc  serv- 
ice Jobs."  and  once  we  were  attempting 
to  maintain  as  much  secretarial  flexibil- 
ity as  poeslble  I  believe  that  the  confer- 
ence action  on  the  first  part  of  this 
■mendment,  coupled  with  the  other  pro- 
»1«lon«  In  8  1559.  as  reported  from  con- 
ference, stressing  special  re«pon«lbliltle8 


December  20,  197S 


of  the  Secretary  for  veterans  employ- 
ment, creates  a  Very  clear  indication  of 
the  Congress  understanding  of  what 
"veterans  outreach"  means  In  section 
601(a) <7). 

Additionally.  Mr.  President,  the  reten- 
tion In  the  conference  report  of  certain 
other  provisions  I  authored — particularly 
those  relating  to  chapters  41  and  42  of 
title  38.  relating  to  the  Job  counseling, 
training,  and  placement  service  for  vet- 
erans, and  the  role  of  the  Secretary  of 
Labor  with  regard  to  that  program,  and 
the  retention  of  special  consideration  for 
veterans  with  respect  to  title  II  Jobs  ex- 
presses the  very  strong  feelings  of  the 
conferees  to  maximize  public  service 
Job  opportunities  for  Vietnam  era  vet- 
erans. 

Mr.  President.  I  felt  very  gratified  by 
certain  provisions  retained  in  the  con- 
ference report  that  I  believe  have  a  very 
direct  bearing  on  the  Secretary's  respon- 
sibility to  returning  veterans  and  those 
with  servlce-cormected  disabilities  and 
congresslc^nal  expectations  in  that  re- 
gard, which  build  on  sections  2003  and 
2006  of  chapter  41  and  sections  2012  and 
2013  of  chapter  42  of  Utle  38. 

In  the  Senate  version  of  S  1559.  the 
members  of  the  committee  added  provi- 
sions, which  I  proposed,  to  build  upon 
sections  2012  and  2013  and  the  AVER'S 
section  2003  provisions. 

First.  The  Secretary  was  given  a  spe- 
cial Federal  responsibility  to  utilize  In 
the  nationwide  computerized  Job  bank 
and  matching  program  the  listing  of  all 
.suitable  employment  openings  in  local 
employment  service  offices  and  the  re- 
quirement that  special  emphasis  in  em- 
ploying certain  veterans  be  provided  by 
all  Federal  contractors,  and  subcontrac- 
tors— as  required  by  section  2012(a>  of 
title  38— this  is  retained  in  the  conference 
report; 

Second  The  provision  was  retained  In 
the  conference  report  directing  the  Sec- 
retary to  carry  out  fully  and  effectively 
his  responsibilities  for  assigning  the 
AVER'S  and.  for  providing  the  special 
emphasis  In  addition  to  Job  listing,  and 
for  his  other  duties  tmder  chapter  41  of 
title  38;  and 

Third.  Each  State  Is  required  under  the 
conference  report  to  set  forth  in  its  prime 
sponsorship  plan  submitted  to  the  Sec- 
retary arrangements  for  assisting  the 
Secretary  in  enforcing  these  Federal  con- 
tractor and  subcontractor  listings  as  weD 
as  special  emphasis  requirements  under 
section  2012(a)  of  title  38 

The  Joint  explanatory  statement 
states  that: 

The  Senate  amendment  Includes  as  a  spe- 
cial responsibility  of  the  Secretary  the  effec- 
tive Implementation  of  the  veterans  em- 
ployment represenutlves  and  certain  other 
special  employment  emphasis  provisions  of 
title  38.  vac.  and  giving  special  considera- 
tion to  Job  training  programs  for  persons  af- 
fected by  the  closing  of  a  Oovemment  facil- 
ity The  House  amendment  contains  no  com- 
parable provisions  The  House  reoedss.  but 
the  conferees  expect  the  Secretary  to  use 
funds  available  under  other  statutes  In  carry- 
ing out  bis  reepooslbUltles   under  title  M 

vac 

It  Is  contemplated  that  stich  "funds 
available  under  other  statutes"  as  to  the 
title  38  provisions,  would  Include  funds 


expressly  made  available  to  carry  out 
veterans'  employment  programs  under, 
for  example,  the  Wagner-Peyser  Act 
trust  fund,  and  that  funds  available 
under  S.  1559  as  reported  by  the  con- 
ferees would  be  used  only  where  at>- 
solutely  necessary  in  a  supplemental 
fashion.  This  provision  In  section  301 
(d) ,  as  with  both  the  Job  listing  and  spe- 
cial emphasis  provisions  In  the  State 
prime  sponsor  requirements  and  the  job 
bank-matching  provision,  should  make 
it  clear  to  the  Solicitor  and  the  Secretary 
of  Labor  that  the  Job  listing  and  special 
emphasis  requirements  are  clearly 
viewed  by  the  Congress  as  two  separate 
requirements — both  of  which  must  be 
canned  out  by  the  Secretary.  I  sincerely 
hope  that  after  so  long  a  struggle  to 
make  this  point  to  the  Department  of 
Labor— we  have  finally  done  so  in  to- 
day's bill.  And  that  the  Secretary  will 
proceed  to  require  Federal  contractors 
and  subcontractors  to  report  on  what 
they  are  doing  to  carry  out  their  respon- 
sibilities to  give  special  emphasis  to  the 
employment  of  Vietnam  era  and  service- 
connected  disabled  veterans. 

PUBUC    SSXVTCZ    JOBS 
MAINTKNAMCS  OF  EfTOaTS 

Additionally,  Mr.  President,  with  re- 
spect to  title  n  of  conference  report, 
the  conferees  were  able  to  work  out 
compromise  language  with  regard  to  the 
assurances  that  program  sponsors  would 
insure  that  EEA  funds  are  not  being 
used  to  fill  a  job  opening  created  by  the 
action  of  an  EEA  employer  in  laying  off 
a  regular  employee,  by  rehiring  that  per- 
son with  PSE  Federal  funds. 

This  Is  a  provision  I  authored  in  the 
Senate  bill,  and  I  believe  we  have  worked 
out  an  acceptable  compromise  between 
the  two  versions. 

The  Joint  explanatory  statement  lan- 
guage on  this  is  very  helpful  in  clarify- 
ing out  Intent.  It  says: 

The  House  amendment  requires  special 
consideration  for  those  who  have  been  un- 
employed the  longest  and  have  the  least 
prospect  of  finding  regular  employment,  but 
such  special  consideration  does  not  author- 
ize the  hiring  of  any  person  for  a  Job  from 
which  another  person  Is  on  lay-off.  The  Sen- 
ate amendment  prohibits  the  hiring  of  any 
person  to  All  a  Job  vacant  because  of  a  lay- 
off. The  conferees  adopted  both  provisions 
with  the  understanding  that  the  language 
In  the  Se.'iate  bill  is  not  Intended  to  preclude 
the  re-hlrlng  of  persons  who  have  been  laid 
off  for  bona  flde  reasons  nor  Is  It  Intended  to 
prevent  the  fllllng  of  Jobs  vacated  because 
of  bona  flde  layoffs.  The  Intention  of  this 
provision  Is  to  prevent  so-called  "paper 
layoffs". 

*«TinClAl.    BABRIXas    TO    CMFLOTKClrr 

Add  other  provisions  I  authored  in  the 
Senate  bill  regarding  the  removal  of 
artificial  barriers  to  public  employment 
of  disadvantaged  persons,  and  a  direc- 
tion that  the  Secretary  provide  technical 
assistance  in  the  development  of  pro- 
grams designed  to  accomplish  that  were 
substantially  retained  in  the  conference 
report — specifically  In  sections  204(b) 
(19)  and  (21)  of  title  n.  and  sections 
311  and  315  of  title  HI  which  provides 
for  technical  assi.'^tance  activities  for 
title  n  programs  as  well  as  the  entire 
act.  but  no  set -aside  therefor  as  in  my 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42811 


original  Senate  amendment,  under  the 
special  responsibilities  of  the  Secretary. 

WEL.FARI   EEl-IPlENTS 

Mr.  President.  I  was  pleased  that  we 
were  able  to  reach  agreement  with  the 
House  on  language  in  the  Joint  explana- 
tory- statement  with  regard  to  special 
consideration  for  welfare  recipients  in 
filling  EEA  Jobs.  I  had  authored  a  pro- 
vision on  the  Senate  floor  to  the  S.  1560, 
which  provided  for  due  consideration  for 
welfare  recipients  in  filling  EEA  Jobs, 
but  I  believe  the  Joint  statement  lan- 
guage adequately  addresses  my  concern. 
It  states: 

The  Senate  amendment  requires  that  due 
consideration  be  given  to  the  employment  of 
welfare  recipients.  The  House  amendment 
has  no  comparable  provision.  TTie  Senate 
recedes,  but  In  the  understanding  that  wel- 
fare recipients  are  eligible  for  consideration 
for  employment,  and  may  be  eligible  for  spe- 
cial consideration  under  paragraph  7  of  sec- 
tion 205. 

INTORMaTIOIT    FOB    BILINOUAL    PKBSON8 

WhUe  a  bilingual  Information  provi- 
sion I  authored  in  S.  1560  as  adc^ted  by 
the  Senate  mandating  the  provision  of 
information  in  appropriate  areas  regard- 
ing public  service  Job  availability  for  In- 
dividuals of  limited  English-speaking 
ability  in  their  primary  language  was 
not  specifically  retained  In  the  confer- 
ence report. 

I  believe  several  other  provisions  of  the 
conference  report  express  the  intention 
of  the  Congress  In  that  regard,  ptirtlcu- 
larly  sections  105(a)(1)(D),  105(a)(2), 
105(a)(3)(A).  107(a)(1)  (A)  (vi).  104, 
305(b)  (B),  and,  with  particular  direct 
impact  for  title  n  public  service  Jobs  pro- 
grams, section  209(2)  of  the  bill. 

imjt    I— COMPRSHXKSrVB     MANPOWn    SERVICSS 
PRIME    SPONSORS 

Mr.  President,  both  the  House  and 
Senate  bills  recognized  the  overwhelm- 
ing argument  for  decentralization  of 
manpower  programs.  Throughout  the 
last  several  years  that  I  have  worked  on 
this  legislation.  I  have  heard  muniera- 
ble  witnesses  urge  that  l(X'al  communi- 
ties be  free  to  de.slgn  and  operate  their 
own  manpower  pro^^rams  within  a  de- 
centralized manpower  system  There  are 
presently  over  lO.OOO  separate  contracts 
which  are  administ.ered  by  the  Depart- 
ment of  Labor  under  the  Economic  Op- 
portunity Act  of  1964  aiid  the  Manpower 
Development  and  Training  Art  of  1962 
Ixx-al  official.';  were  adamant  that  this 
new  ieKlslatlon  not  make  them  s'ib<:)rdi- 
nate  to  a  system  operated.  ba.-lrtUIv,  by 
the  50  Governors.  I  believe  the  confer- 
ence report  has  fully  and  successfully 
reconciled  all  these  concerns. 

In  the  Senate  version  of  S.  1559,  I 
authored  a  provision— identical  to  one 
I  authored  in  1970  and  which  was  re- 
tained In  the  vetoed  bill  sent  to  the 
President  that  year—which  provided, 
that,  when  twf)  units  of  genera!  purpose 
government  both  qualified  with  regard  to 
population  as  prime  sponsors  such  as  a 
city  within  a  county  In  which  both  the 
city  and  the  rounty  qualified  by  popula- 
tion, the  Secretary  was  directed  to 
designate  to  .serve  as  prime  •rpon.sor  for 
the  common  area,  the  unit  which  could 
.Tic^  effectively  carry  out  the  respon- 
slbilitiea  of  a  prime  sponsor  under  the 


act.  I  saw  thLs  as  a  mechanism  to  limit 
unnecessar>-  and  duplicative  program 
administrators — thereby  enabling  more 
Federal  dollars  to  go  into  jobs  and  job 
traimriii— and  a  way  of  maximizing  the 
use  of  expenenced  program  sponsors 

Unfortimately.  this  time  the  House 
conferees  were  unwUlinp  to  accept  any 
such  provision,  nor  would  they  accept  a 
modification  I  offered  to  provide  that 
in  limited  exceptional  clrcurn.'<tances, 
where  the  larger  unit  of  government 
containing  a  smaller  imit — both  with 
sm  eligible  population — manifested  a 
"clearly  superior"  capability  for  carr>'lng 
out  the  purposes  of  the  act,  the  Secre- 
tary could  designate  the  large  unit  as 
the  prime  sponsor. 

I  believe  that  this  modification  would 
have  resulted  in  more  effective  program 
administration.  However,  I  am  hopeful 
that  the  Secretary  will  fully  utilize  his 
authority  under  section  103(b)  —the  pro- 
vision which  reserves  not  more  than  5 
percent  of  the  appropriated  funds  to 
the  Secretary  to  encourage  voluntary 
combinations  of  units  of  government  as 
described  In  section  102'3)— to  urge  such 
combinations.  And  I  urge  Governors  to 
make  recommendations  for  such  com- 
binations to  the  Secretary  inappropriate 
situations  as  they  are  entitled  to  do  imder 
the  conference  provision. 

It  should  be  stressed,  Mr.  President, 
that  this  provision  is  applicable  not  only 
to  contiguous  cities  or  counties,  but  to 
cities  and  coimtles  in  situations  such  as 
I  Just  descnbed  I  would,  thus,  very 
strongly  urge  the  Secretary  to  urge  com- 
binations in  such  situations  before  des- 
ignating as  prime  sponsor  the  smaller 
unit  submitting  or  approvable  compre- 
hensive manpower  plan,  because  I  sin- 
cerely believe  that  such  combinations  can 
result.  In  man>'  instances,  in  more  effec- 
tive, economical,  and  efficient  programs. 

An  example  of  the  type  of  situation 
wh.ere  I  think  the  Secretary  could  effec- 
tively foster  such  a  combination  is  in 
Alameda  County.  Calif. 

In  .A.lameda  Oiunty.  there  are  several 
communities  wluch  will  qualify  as  prime 
sponsors  under  the  IOOOCmD  population 
requirements  of  the  conference  report — 
Berkeley,  Oakland,  and  Hayward.  for 
example.  The  county,  in  this  instance, 
has  had  a  long  history  of  program  re- 
sponsibihty  m  the  manpower  area,  and 
up  until  very  recently  administered  the 
manpower  programs  for  all  the  cities  in 
the  county  It  would  be  foolish,  I  thmk. 
to  now  turn  around  and  designate  four 
prime  sponsors  where  there  previously 
had  been  only  one-— necessitating  ex- 
penditures for  four  separate  program 
administrations  and  so  forth 

I  would  hope.  Mr.  l^Tesldent.  that  In 
areas  such  as  this,  the  Secretary  woiild 
use  his  103' b'  incentive  money  to  en- 
courage cities  and  counties  to  form  a 
combination  prime  .sponsorship — thereby 
eiimuiaung  unnecessary  duplication  and 
waste. 

LINKS   TO    KtXL    JOBS 

Mr  President,  the  biggest  single  fail- 
ing of  adult  manpower  training  programs 
in  the  past  has  been  the  failure,  with  the 
obvious  exception  of  Emergency  Employ- 
ment Act  programs— to  pro\nde  strong 
llnkyjes  to  real  Jobs.  For  too  often  man- 


power trainees  have  been  funneled  from 
one    'training"  program  to  another. 

Because  I  was  so  concerned  about  this., 
I  offered  two  amendment:,  to  the  Senate 
bill — adopted  m  committee  and  included 
in  the  Senate  version  of  S.  1559  that  went 
to  conference,  first,  providing  prtortty 
in  funding  for  traimr^  programs  In 
which  strong  job  commitments  had  been 
obtained  by  the  prime  sponsors,  and.  sec- 
ond, requiring  the  prime  sponsor  to  follow 
up  on  such  commitments  by  conditioning 
future  funding  on  the  ability  of  the  spon- 
sor to  demonstrate  that  it  had  done 
everythiing  possible  to  place  the  success- 
ful trainee  in  such  employment  or  itself 
to  employ  the  trainee. 

After  much  discussion,  Mr.  President,  I 
believe  we  were  able  to  work  out  a  min- 
imally acceptable  compromise  requiring 
that  trsiining  and  OJT  programs,  wher- 
ever possible,  lead  to  meaningful  jobs  at 
decent  wages.  I  hope  the  Secretary  wIU 
implement  this  provision  in  a  most  ag- 
gressive fashion.  The  joint  explanator 
statement  clearly  reflects  the  very  strong 
concern  of  the  conferees  in  this  regard. 
It  states: 

The  Senate  amendment  requires  the  estab- 
llsliment  of  program  goals,  a  description  of 
employment  and  training  needs  and  that  pri- 
ority be  given  to  programs  where  public  and 
private  employers  .Tia>:e  e.mplo>Tnent  com- 
mltmer.ts  to  prospective  participant*  The 
House  amendment  also  requires  that  pr^aie 
sponsors  receiving  funds  under  title  n.  as 
well  as  this  title,  Intetrate  t.helr  tlUe  n  pro- 
grams with  activities  flnai^ced  under  title 
I.  The  conference  compromise  adopts  the 
provisions  of  the  House  arr.er.dment,  as  well 
as  the  provisions  of  the  Seuate  ame.-jdmer.t 
on  establishing  goais  arxd  a  prov'.sion  re- 
quiring, wherever  possible  that  traming  learf 
to  employment  providlTig  economic  seiT- 
sxifflciency, 

LABOR    MARKET    INPORMATIOW    AND    COltPUTKl 
JOB    BANK 

Mr.  President.  I  was  very  pleased  that 
the  conference  report  retained  the  pro- 
visions in  the  Senate  bill  with  respect  to 
the  development  of  more  adequate  labor 
market  irJormatlon,  This  provision  de- 
rives from  a  provision  I  originally  au- 
thored in  S  3311  In  the  92d  Congress. 
which  I  have  reintroduced  again  this  year 
as  S  793.  the  proposed  "Public  Service 
Employment  .'^rt  of  1973. "'  In  order  to  as- 
sure implementation  of  this  Important 
provision,  I  had  added  in  committee  a 
pronsion  .mandating  a  set-aside  of  funds 
to  begin  the  difficult  and  detailed  \as\. 
outlined  in  the  Senate  provlsiorL  TMs  set- 
a^de  was  retained  in  section  312  of  the 
conference  report, 

-Also  contained  in  section  312  of  the 
conference  bill,  is  a  provision  directing 
the  Secretary  to  establish  a  computerized 
job  bank  and  matching  system — utilizing 
the  ,;ob  Listing  requirements  of  section 
2012(a>  of  tlUe  38  of  the  United  States 
Code,  which  I  descnbed  earlier  m  nvv 
remarks — and  the  title  38  linkup  pan 
which  I  had  authored  m  the  Senate  bill 

BIUNCDAI.    MAXPOWDl     PROGRAMS 

Mr.  President.  I  would  like  tc  express 
my  appreciaUon  for  the  able  as.-^isiance 
of  rongressma::  B.'.dii.lo  m  helpLnp  me 
effect  a  jrood  comprom.i.se  between  the 
two  bills  with  regard  to  the  required  com.- 
ponents  of  manpower  and  empiovment 
programs   for   limited    English -speaklTig 


4^612 


COXCRFSSIONAL  RFrORD— SENATE 


people  imder  the  new  act.  The  Congress- 
man had  authored  a  provision  In  the 
House  bill  similar  in  Intent  to  a  provision 
I  had  authored  In  the  Senate  bill,  specify- 
ing the  components  of  such  bilingual- 
type  programs. 

The  joint  explanatory  statement  dis- 
cusses this  provision  as  folrows; 

The  SenAte  amendment  requires  the  Secre- 
t*ry  to  establish  procedures  to  Insure  that 
programs  for  persons  of  1  United  EnglUh 
speaking  ability  provide  such  training  and 
supportive  services  as  wUl  increase  employ- 
ment and  training  opportunities  for  them. 
These  procedures  shall  also  provide  that  pro- 
grams for  such  people  emphasize  occupations 
that  do  not  require  proficiency  In  English, 
emphasize  technical  English  vocabulary  nec- 
eaaary  for  specific  occupations,  train  bi- 
lingual instructors  and  otherwise  establish. 
maintain  and  operate  programs  to  Increase 
employment  and  advancement  opportunities 
for  persons  of  limited  English  speaking  abil- 
ity. The  House  amendment  provides  that  In 
carrying  out  his  special  responslbuitlea  the 
Secretary  shall  establish  procedures  to  In- 
sure that  programs  for  such  persons  wUl  in- 
crease their  employment  and  training  op- 
portunities. The  Senate  receded  In  light  of 
the  agreement  In  section  301(b). 

Basically,  what  the  conference  provi- 
sion represents  in  301  ibi  are  the  crucial 
components  of  the  Senate  provision — 
incJuding,  provision  of  Job  training  serv- 
ices at  alternative  times,  so  that  pres- 
ently employed  Individual  would  have  an 
opportunity  to  learn  new  skills;  pro- 
grams designed  to  increase  the  promo- 
tional opportunities  of  limited  Engllsh- 
speaJclng  people,  programs  teaching 
skills  which  do  not  require  a  high  pro- 
flciency  In  English;  programs  teaching 
specific  English  technical  vocabulary 
necessary  to  the  performance  of  certain 
occupations;  and  the  conduct  In  the 
primary  language  of  participants  of  pro- 
grams themselves,  and  the  provision  of 
information  about  jobs  and  job  training 
programs,  including  conduct  of  outreach 
programs  to  enroll  those  needing  such 
programs,  using  the  participants'  pri- 
mary language. 

Mr  President.  I  think  we  have  a  good 
provision  here,  and  I  would  hope  that 
the  Secretary  will  carry  out  his  respon- 
sibilities under  it  very  vigorously,  and 
promote  new  and  innovative  bilingual 
manpower  and  employment  programs- 
both  as  national  emphasis  programs, 
and  to  be  carried  out  by  title  I  prime 
sponsors  and  title  n  eligible  applicants. 
coMMC.vrrr-BAsxD  caotrps  axd  local 

MANPOWZX    COWCZLa 

Mr  President,  in  our  haste  to  decen- 
tralize the  manpower  program  bureauc- 
racy. I  felt  it  was  Imperative  that  we 
ensure  a  continuing  role  for  programs 
and  groups  which  have  already  demon- 
strated their  eflfectlveness.  and  Insure 
that  the  poverty  community  had  a  real 
voice  in  program  declslorunaklng 

I  was,  consequently,  very  gratified  that 
we  retained  in  the  conference  bill  provi- 
sion to  require  that  the  SecreUry  termi- 
nate flnancial  assistance  to  prime  spon- 
sor*, after  full  opportunity  for  a  hearing, 
"failing  to  serve  equlUbly  the  slgnincant 
segments  of  the  population"  or  "failing 
to  give  due  consideration  to  funding  pro- 
grams of  demonstrated  effectiveness  " 

We  were  also  able  to  agree  on  a  defi- 
nition of  "community- based   organiza- 


tions' which  Includes  an  exemplification 
of  several  programs  which  I  believe  are 
"of  demonstrated  eflectiveness" — includ- 
ing Jobs  for  progress — SER — a  program 
which  I  believe  should  be  retained  in  the 
many  communities  it  has  so  effectively 
served,  and  opportunities  Industrializa- 
tion centers  and  community  action  ac- 
tions, also  of  long  experience  in  carry- 
ing out  manpower  and  training  pro- 
grams. 

Finally,  in  this  same  connection,  after 
long  debate  the  House  conferees  accepted 
a  compromise  between  versions  which  I 
and  Congressman  Stkigck  offered  to  con- 
tinue the  Senate  bill  requirement  of 
mandatory  local  manpower  advisory 
councils  appropriately  represenUtive  of 
local  poverty,  community-based,  labor 
and  business  groups,  and  other  appro- 
priate groups  and  Interests.  The  Senate 
bill  Included  provisions  I  authored  spe- 
clflcaily  including  representatives  of  vet- 
erans on  the  local  coimcils.  as  well  as  on 
the  State  councils  to  t>e  established  un- 
der section  107iaMl).  and  on  the  Na- 
tional Manpower  Policy  Commission,  es- 
tablished under  section  lOSia) » 1  > ,  of  the 
conference  report.  The  exclusion  of  this 
specification  was  in  no  way  intended  to 
discourage  such  veterans  representation 
on  these  councils,  which  would  obviously 
be  appropriate  given  the  great  stress 
placed  on  the  employment  and  training 
needs  of  veterans  throughout  the  con- 
ference report,  which  I  discussed  earlier. 

COMCXUSION 

Mr.  President,  we  have  a  bill  We  have 
a  good  bill.  It  is  one  which  has  been  care- 
fully scrutinized.  I  urge  my  colleagues  to 
support  the  conference  report — so  that 
we  may  get  on  with  this  so  desperately 
needed  manpower  program  reform. 

Mr.    HATHAWAY.    Mr.    President,    I 
want  to  commend  the  Senator  from  Wis- 
consin  (Mr    NtLsoif)    and  the  Senator 
from  New  York  <  Mr.  Javits  » ,  the  chair- 
man and  ranking  minority  members  of 
the    Manpower    Subcommittee    of    the 
Committee  on  Labor  and  Public  Welfare 
on  which  I  serve  for  the  excellent  job 
they  have  done  on  this  very  Important 
legislation.  I  have  had  the  privilege  of 
working  with  them  from  the  Inception 
of  the  bill  In  subcommittee  through  con- 
ference and  know  firsthand  of  the  tre- 
mendous effort  and  leadership  they  have 
shown   in  producing  a  bill   which  will 
go  a  long  way  toward  helpmg  the  unem- 
ployed and  underemployed  In  our  Nation 
Mr.  ROTH  Mr.  President.  I  previously 
wrote  the  distinguished  senior  Senator 
from  New  York,  asking  for  his  support 
and  assistance  in  resolving  the  language 
of  the  Comprehensive  Manpower  Act  of 
1973  In  conference  so  that  a  local  gen- 
eral  government  such   els   Wilmington, 
with  a  population  of  less  than  100,000. 
may  qualify  as  a  prime  sponsor  for  com- 
prehensive manpower  programs.  Senator 
Javits  has  been  most  gracious  and  help- 
ful in  this  regard.  I  thank  him  for  his 
efforts. 

Mr.  HARTBLE.  Mr.  President.  I  am 
particularly  concerned  with  section  3  of 
the  Comprehensive  Employment  and 
Training  Act  of  1973  as  reported  by  the 
conference  committee  This  section  deals 
with  the  transition  from  existing  man- 
power  programs   under   the   Manpower 


December  20,  1973 


Development  and  Training  Act  and  the 
Economic  Opportunity  Act  to  those 
under  the  proposed  Comprehensive  Em- 
ployment and  Training  Act. 

I  interpret  section  3  of  the  blD  as  re- 
ported by  the  conference  to  mean  that 
there  will  be  no  lessening  of  manpower 
training  efforts  as  we  phase  from  the  old 
program  authority  Into  the  new  com- 
prehensive program.  I  take  section  3  to 
mean  that  under  the  authority  existing 
prior  to  June  30.  1973.  programs  may 
continue  to  be  funded  up  to  midnight 
June  30.  1974.  and  that  they  may  there- 
after run  their  full  and  formal  course. 
I  also  assume  that  with  the  language  of 
section  3,  my  colleagues  on  the  confer- 
ence committee  mean  to  protect  the  Fed- 
eral Investment  made  in  programs  under 
the  old  manpower  authority  by  assuring 
that  there  will  be  adequate  staff  in 
appropriate  agencies — the  State  depart- 
ments   of    education,    for    example to 

assure   that   ongoing   programs   will   be 
adequately  monitored  and  that  there  will 
be  sufficient  program  staff  to  Insure  the 
efficient  phase-down  in  programs  under 
the  old  authority  into  that  of  the  new. 
Fortunately  through  the  past  10  years 
of  program  operations  under  the  MDTA, 
Indiana  has  developed  a  fine  manpower 
capabUlty.  This  resource  will.  I  am  .sure, 
be  Invaluable  as  we  phase  into  and  then 
get    the    new    comprehensive    program 
going.  At   the   present  time   the  State 
Board  of  Vocational  and  Technical  Edu- 
cation   is    responsible    for    institutional 
manpower  training.  The  board  Is  over- 
seeing some  $3.2   million   in  manpower 
training  programs  including  millions  of 
dollars  in  valuable  training  equipment. 

My  purpose  In  seeking  clarification  of 
secUon  3  Is  simply  this:  In  Indiana 
and  throughout  the  Nation  we  have  a 
sizable  investment  of  federally  funded 
resources  which  were  generated  under 
MDTA  and  EOA.  These  resources  are 
currently  being  used  to  provide  man- 
power training  services.  I  seek  reassur- 
rance  that  it  is  the  Intent  of  the  conferees 
that  these  resources  will  be  fully  used, 
with  no  fallback  from  fiscal  year  1974 
training  plans,  up  to  July  1,  1974.  I  fur- 
ther seek  reassurance  from  the  conferees 
that  there  will  be  no  decrease  in  the  man- 
power training  effort  during  the  time  re- 
quired for  phasing  Into  the  new  program 
under  the  Comprehensive  EinplosTnent 
and  Training  Act  of  1974. 

The  PRESIDING  OFFICER.  The  ques- 
tion is  on  agreeing  to  the  conference 
report. 
The  report  was  agreed  to. 


DEPARTMENT  OP  DEFENSE  APPRO- 
PRIATION BILI^-CONFERENCE 
REPORT 

M.-  M.\NSFIELD.  Mr.  President.  I 
submit  a  report  of  the  committee  of  con- 
ference on  HJl.  11575,  and  ask  for  Ita 
Immediate  consideration. 

The  PRESIDING  OFFICER.  The  re- 
port will  be  stated  by  title. 

The  legislative  clerk  read  as  follows: 

The  committee  of  conference  on  the  dis- 
agreeing votes  of  the  two  Houses  on  the 
amendmenu  of  the  Senate  to  the  bill  (HJR. 
U878)  making  appropriations  for  the  De- 
partment of  Defense  for  the  fiscal  year  end- 


Decemher  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


\ 


ing  June  30.  1974,  and  for  other  purpoew. 
having  met.  after  full  and  free  conference, 
have  agreed  to  recommend  and  do  recom- 
mend to  their  respective  Houses  this  report, 
signed  by  a  majority  of  the  conferees 

The  PRESIDING  OFFICER.  Is  there 
objection  to  the  consideration  of  the  con- 
ference report? 

There  being  no  objection,  the  Senate 
proceeded  to  consider  the  report. 

cnie  conference  report  Is  printed  in 
the  House  proceedings  of  the  Congres- 
sional Rbcord  of  December  19,  1973  at 
PP    42538-42540.) 

Mr  McCLELL-VN  Mr  President,  on 
Tuesday.  December  18.  the  conferees  on 
the  Department  of  Defense  appropriation 
blU  for  fiscal  year  1974.  alter  7  hours  of 
deliberation,  reached  agreement  on  the 
differences  between  the  two  Houses. 

The  total  amount  agreed  to  was  $73.- 
714,930.000.  This  Is  $3,535,793,000  under 
the  budget.  If  transfers  are  excluded, 
the  net  reduction  is  $3,032,493,000  under 
the  budget. 

This  is  the  goal  we  sought  earlier  this 
year  when  the  Defense  Subcommittee 
set  a  tentative  target  flgxire  for  defense 
at  $3  billion  under  the  budget.  I  believe 
that  we  have  achieved  this  celling  with- 
out harm  to  either  the  ongoing  opera- 
tions of  the  military  services  or  detri- 
ment to  future  preparedness. 

The  conference  agreement  figure  is 
$386,379,000  under  the  House  bill  and 
$450,303,000  over  the  Senate  bill.  It  is 
$1,669,643,000  under  the  appropriation 
for  fiscal  year  1973. 

The  conference  was  completely  free 
with  every  difference  carefully  consid- 
ered and  some  issues  vigorously  con- 
tested. Since  there  are  hundreds  of  In- 
dividual items  involved,  I  believe  the 
conferees  on  the  part  of  the  House  and 
of  the  Senate  acted  with  proper  expedi- 
tion and  good  judgment. 

The  following  are  some  of  the  major 
Items  which  were  agree«:  to  in  confer- 
ence: 

MnjTAKT    ASSISTANCE    SMVICE   rtJNDD)    BtTPPORT 
TO    LAOS    AND    SOUTH    VUTNAM 

The  House  bill  Included  $1,008,500,000 
while  the  Senate  bill  provided  $650,000,- 
000.  The  conferees  agreed  on  a  figure  of 
$900,000,000  for  military  support  to  the 
two  countries.  Under  the  provisions  of 
the  continuing  resolution  there  have 
been  obligations  of  $470  million  through 
December  14.  If  the  Senatt  figure  of  $650 
million  were  provided,  the  assistance 
would  have  terminated  prior  to  the  end 
of  February  1974.  assuming  obllgaUon  of 
funds  at  the  same  rate  as  has  occurred 
since  the  beginning  of  the  fiscal  year. 


42813 


The  conference  agreement  of  $900  mil- 
lion will  result  in  some  reduction  of  as- 
sistance to  Laos  and  Vietnam  during  the 
remainder  of  the  fiscal  year  yet  permit 
the  program  to  continue. 

AIECHArT    PROCt-EZMINT,    NAVT 

The  conferees  agreed  to  the  Senate 
reduction  of  $10.5  million  in  the  A-4M 
Skyhawk  aircraft  program  which  buys 
20  aircraft  ln.^tead  of  the  24  funded  In 
the  Hou>.e  bill  The  conference  agreed 
to  a  Senate  reduction  of  $11  railllon  in 
the  A-6E  Intruder  aircraft  program, 
which  reduces  the  ft.scal  year  1974  buy 
from  15  to  13  aircraft  The  conference 
agreed  to  the  Senat*  reduction  of  $22 
million  in  the  A-7E  Corsair  II  aircraft 
program,  reducing  the  number  of  air- 
craft to  be  procured  from  42  to  30.  The 
conferees  also  agreed  to  provide  the  full 
amount  of  the  budget  request.  $401,400.- 
000,  to  procure  45  S-3A  Viking  aircraft. 
This  is  an  increase  of  $66  miilion  over 
the  Senate  allowance,  which  provided 
fimds  to  purchase  36  aircraft. 

WXAPONS  mOCimZMENT,  NAVT 

The  Senate  had  restored  the  House 
reduction  of  $14.1  million  for  advance 
procurement  of  the  Harpoon  missile.  The 
conference  agreed  to  restore  the  funds 
to  the  "Research,  Development.  Test,  and 
Evaluation,  Navy"  appropriation  The 
conferees  agreed  lo  the  House  denial  of 
$12.4  million  for  the  AGM-SSA  Bulldog 
missile.  The  House  provided  $26  6  mll- 
hon  for  the  fleet  satellite  communica- 
tions system,  while  tiie  Senate  included 
$44.1  million  for  the  program  The  con- 
ference agreed  on  $3 6. 6  million  for  this 
communications  system. 

SEA    CONTROL    SHIP 

The  conference  agreed  to  provide  $29.3 
million  in  advance  procurement  funding 
for  the  sea  control  ship  as  proposed  by 
the  Senate.  The  House  had  provided  no 
funds.  The  conferees  further  agreed 
that  no  funds  are  to  be  obligated  for  the 
program  pending  completion  of  a  desig- 
nated study  and  until  specific  written 
approval  has  been  granted  by  each  Ap- 
propriations Committee. 

AIECRAIT    PROCUa«MINT.    AIR    rORCS 

The  conference  agreed  to  provide  $70.1 
million  for  the  procurement  of  24  A-7D 
Corsair  n  aircraft  as  proposed  by  the 
Senate  and  $151.6  million  for  12  F-lllF 
aircraft  as  proposed  by  the  House.  The 
House  provided  $764  million  for  68  F-15 
aircraft  while  the  Senate  Included  $714 
mlUlMi  for  60  aircraft.  The  conference 
agreed  to  provide  $736  million  to  procure 
62  F-15  aircraft.  The  conference  agreed 
to  provide  $7.6  million  for  the  E-3A  air- 


borne warning  and  control  system  air- 
craft program.  The  House  had  provided 
no  funds  while  the  Senate  had  included 
$11.7  million.  The  conference  agreed  to 
provide  $32.3  miUion  for  a  fourth  E-4A 
advanced  airborne  national  command 
post  aircraft  as  proposed  by  the  Senate. 
The  House  had  included  no  funds.  The 
conferees  agreed  that  no  further  747 
aircraft  are  to  be  included  in  budget  re- 
quests for  the  program  until  the  com- 
mand-control- communications  electron- 
ics package  has  been  completely  devel- 
oped and  thoroughly  tested. 

RESEARCH     DE\T:L0PMENT,  test,  and  EVATtJATION 

The  conferees  agreed  to  delete  the 
$26.2  mllhon  requested  for  the  submarine 
launched  ballistic  missile  phased  array 
radar  program. 

The  conference  also  agreed  to  provide 
$110  million  for  the  site  defense  pro- 
gram. The  House  had  provided  no  funds, 
while  the  Senate  figure  was  $135  mil- 
lion. 

The  conference  restored  $22.6  million, 
which  the  Senate  had  deleted,  for  the 
SAM-D  missile  program,  thus  providing 
the  full  amount  of  the  budget  request  of 
$193  8  million. 

The  House  provided  no  funds  for  Proj- 
ect Sanguine,  whereas,  the  Senate  bill 
included  the  full  budget  request  of  $16.6 
million.  The  conference  agreement  pro- 
vides $8.3  million  with  a  statutory  pro- 
vision that  one  of  the  funds  .shall  be 
used  for  full-scale  development. 

The  House  bill  did  not  include  funds 
for  the  advanced  medium  short  take  off 
and  laiiding  transport  aircraft  The  Sen- 
ate provided  the  fuU  budget  request  of 
$65.2  milLon.  The  conference  agreement 
provides  $25  million. 

The  Senate  deleted  $10  million  from 
the  A-10  close  air  support  aircraft  pro- 
gram. The  conference  agreement  re- 
stored the  $10  million  and  provides  the 
full  authorization  of  $107  4  million 

The  Senate  biU  included  a  general 
provision  limiting  the  supply  of  petro- 
leum products  to  Southeast  Asia.  The 
conference  amended  the  language  to 
read: 

None  of  the  funds  contained  in  this  Act 
shall  be  used  to  furnish  petroleum  fuels  pro- 
duced In  the  Ck)ntlnental  United  States  to 
Southeast  Asia  for  use  by  non-United  SUtee 
nationals. 

I  ask  unanimous  consent  that  a  tabula- 
tion summarizing  the  action  of  the 
House,  Senate,  and  conference  be  printed 
In  the  Record. 

There  being  no  objection,  the  table  was 
ordered  to  be  printed  In  the  Record,  as 
follows : 


DEPARTMENT  OF  DEFENSE  APPROPRIATION,  1974,  Bill  Ot.R.  11575) 


ReviMd  fiscti 

AppfoprUtlon,  (by  functlon.1  title) bJlg'^M  Hous.  .Itow.nc  Sen,t.  .IK«,.nc 

TITLE  I— MILITARY  PERSONNEL 

KmS'rJSSS'Nm' 7.2U,«)0.000  7.131,437,000  7,098.050,000 

tes=:r,fe";;:;E:';;""---"-"----  IBE  &^z  It^ 

S;=aK;3:i^^:;r:;r:£ErEE    ggH  llj  ||is 

Toul.  titie  l-Mililiry  psrtonnsl 22,706,500,000  22.432.641,000  22.363,096.000 


Confercnct  conptrwj  wfth — 


Confer*  nee 
agreement 


BiKiiet 
Ktimite  House  aRowtnce    Swiete  allow *ecc 


M??'2S'25S  -10i*50.0CC        -21,487,000         -Hl.900,000 

5,271,350,000  -84,250,000        -10  MS  OOO         T"-~",uw 

1.547.000,000         -8.800.000         -2.452  000 

6.863.350,000        -69,150,000       -23.06L0O0  

452,408,000        -11.292.100.         ■^"•'•"^ 

209.403.0CC  -2  697  000  

61.173.000         -6.327.000  .'."."i:: 

126,982.000       -12.338.000 

555,900.000       -31.200  000  

1 77, 500,  OOO  -4, 000. 000  V/"////"//.'.V.V.".V.""I"i;" 

22.374.996,000-331,504.000       -57.645.000       -(-11,900.000 


i2814 


CONGRESSIONAL  RECORD  —  SEN  A  TF 

OtPAirrKCNT  Of  OtFtNSE,  APWOMIIATION  1974.  BILL  (H.R.  11575)^Co«Mnu«d 


December  20,  197S 


Appfoptlttioiu  (bY  functional  till*) 


Rwitad  fticjl 

yt  1)7<  Coafvrtnc* 

budiat  rcqiMSI    HouM  dlowtnc*  S«n*t«  iMomnc*  ifrMmtat 


ContortMcf  compared  with— 


^/^ 


•stimati   Houm  dlowinca    Sanjte  allowinc* 


TITU  ll-RETIREO  MILITARY  PERSONNEL 


Retired  pay.  dafans* 

TITLE  lll-OPERATION  AND  MAINTENANCE 


«.705.9l».0OO     4.6«1.9IX).000     4.  tai.  900.  OOP     4. 681. 9M.  000       -24.000.000 


Opantion  ind  maintanance.  Army S,40I, 


Oparation  and  maintananca.  Navy. 

Oparattofl  and  maintananca,  Marina  Corps ..._ 

Oparation  and  maintananca.  Air  Foroa 

Oparation  ind  maintananca.  Dafansa  a(anci«s 

Oparation  jnd  maintananca.  Army  Rasarva 

Oparation  and  maintananca.  Navy  Rasarva 

Oparation  and  maintananca.  Manna  Corps  Raiarv* 

Oparation  and  maintananca.  Air  Forca  Rinama 

Oparation  and  mjintananca.  Army  National  Guard. 

Oparation  and  maintananca.  Air  Natranal  Guard 

National  Boa'd  (or  tfie  promotion  of  Rifla  PractiO* 

Claims.  Oalansa 

Continjeneiei.  Oafensa 

Court  of  Military  Appeals 


6. 156. 

417, 
«.  717. 
1. 471. 

KO. 

175. 
11. 

m. 

MO. 
U4 

49. 
S. 


700.000 
700.000 
OOO.OOO 
100. 000 
400.000 
400.000 
400.000 
400.000 
600.000 
000.000 
MO.  000 

tss.ooo 

100.000 
000,000 
8(4.000 


6.133, 
6,  023. 
411. 
6.&32. 
1,660. 

m. 

172. 
II. 
223. 
S24. 
S18. 

49. 


747.000 
200.000 
64S.0OO 
100.000 
408.000 
000.000 
OOO.OOO 
000.000 
000.000 
000.000 
000.000 
1S9.000 
100.000 


864.000 


6, 1S3.  747. 000 

6.  013, 683,  000 

410.645  OOO 

6. 4U.  241.000 

1. 456. 19«.  000 

253. 900.  OOO 

170. 750. 000 

11.000.000 

222.800.000 

523. 839.  000 

»10.  500. 000 

159.000 

49. 100. 000 

5.000.000 

864,000 


6,  214. 
6.004. 

410, 
6.504. 
1.454. 

2«. 

170, 
11. 

221. 

524, 

514. 

49. 
S, 


697,000 

950.000 

645.000 

294.000 

838.000 

900,000 

750,000 

000,000 

900,000 

400,000 

250.000 

159.000  . 

100.000. 

000,000  . 

864.000 


-U7, 003. 000 

-IBl.  750.000 

-6.  355,  OOO 

-212.806.000 

-23,502,000 

-6.500.000 

-4. 650, 000 

-400.000 

-5.700.000 

-15.600,000 

-10,250,000 


+80.950.000 
-18,250.000 

-1.000.000 

-27.806.000 

-195.510.000 

-I.  lOO.OOO  . 

-1.250.000  . 


+60.950.000 
-8. 733. 000 

'+46.6S3.'6o6' 
-1.300.000 


-1.100.000 

+400,000 

-3,750.000 


-900.000 

+561.000 

+3.750.000 


+S.  060,000 


Total.  Iitia  III— OparatiM  andmttntmane*. 
TITLE  IV-PROCUREMENT 


22.9ft323.000    22.504.223.000     22. 240. 426. 000  22. 340, 807. 8000    -624.516.000      -1(3.416,000  \+100.381.a00 


181. 000. 000 
569.' 500,  bob 


238. 000. 000 
1.138.900.000 


191. 900.  OOO 


Aircraft  procuramant.  Army 

Translei  from  ottiaf  accounts 

Missila  procurement.  Army 

Tranifar  from  other  Kcounts '. 

Procurement  at  weapons  ind  trxkad  combat  MhidM.  Army 

Prwuremant  of  ammunition.  Aimy 

Trjniter  from  other  accounts 

Otiiar  prwurament.  Army . 

Tranater  fioni  othat  accounts... 

Aircraft  procurement.  Navy .,    2.927.500.000 

Transfer  from  ottier  accounts .... „        . 

Waaponi  procurement.  Navy 933.400.000 

SJiipbuildini  ind  conversion.  Navy 3.  754.  100.000 

OtJiar  procutentant.  Nayy 1.393.800,000 

Transfer  from  ottMr  accounts 

Procurement.  Marine  Corps 180,000,000 

Trjnsler  from  otl»er  accounts... , 

Aircritt  procurement.  Air  Force 2.906,800,000 

Transfer  from  otHer  accounts 

Missiie  procurement.  Air  Force.. 1.519.600.000 

Transfer  from  otftar  accottnts 

Ottier  procurement.  Air  Force 2,004.900,000 

»      Transfer  from  other  accounts 

Procurement,  Oefcns*  afancMS  70,700,000 

Transfer  from  otfier  accounts 


139.400.000 
(21.400.000) 
514  600. 000 
<22.  OOO.  000) 
224.  300,  000 
931.  300. 000 
(46,100.000) 
502.290.000 
(27. 000. 000) 

2.  785.  200. 000 

(106.800.000) 

790.  700.  000 

3.4S3.800.000 

1,261.000.000 
(45. 000  OOO) 
173.932.000 
(5.000  000) 

2.693.800.000 
(54.000.000) 

1.371.500.000 
(30.000.000) 

1.605.600  000 
(30, 000.  OOO) 
66,000,000 


138.  4O0. 000 
(21.400.000) 
125. 100  000 

(22. 000. 000) 
224.  300.  000 
676  100.000 
(146.100.000) 
460.  590. 000 
(39  500,000) 

2.  646.  700  000 
(106.800.000) 
834.  700. 000 

3.468.  IW.  000 

1.202.300.000 
(45.000,000) 
173.932.000 
(5,000.000) 

2.470.900.000 
(54.000.000) 

1.395.800.000 
(30. 000. 000) 

1.589.  300  000 
(30.000.000) 
66.  280.  000 


138.400.000 
(21.400,000) 
525. 100.  000 
(22.  OOO.  000) 
224, 300, 000 
784.300.000 
(146.100.000) 
461.690.000 
(39. 500. 000) 

2.  722.  700. 000 
(106,800.000) 
800.700.000 

3.468. 100. 000 

1  204.200.000 
(45.000.000) 
173,932.000 
(5,000.000) 

2,  720.  400.  000 
(54,000.000. 

1.393.300.000 
(30. 000. 000) 

1  542.  700,000 
(30  000.000) 
66.000.000 


-42. 
(  +  21. 

-44. 
(+22. 

-13, 

-354, 

(+14*. 

-90. 
(  +  39. 
-204, 
(  +  106, 
-132. 
-286 
-189. 
(+45. 
-6, 

(+5. 
-186. 
(  +  54, 
-126, 
(+30, 
-4«2. 
(+30, 
-4. 


600. 
400. 
400. 

000. 
700. 

too. 

100. 
210 
500. 

80«. 
800. 
TOO. 
000 
600. 
OOO. 
068. 
OOO. 
400. 
000. 
300. 
000, 
200. 
OOO. 
700. 


000 

000). 

000 

000). 

000  . 

000 

800) 

000 

000) 

000 

OOO) 

000 

000 

000 

000). 


-1.000.000 

"+i»,566.666" 


-147.000.000  +108,200.000 
(+100.000.0CO) 

-40.600.000  +1.100.000 
(  +  12.508.000) 

-62.500.000        +76.000.000 


+  10.000,000 
+  14.300,000 
-56.800,000 


-34,000.000 

+i,  106.666" 


000 

000) ;: 

000        +26.600.000      +249.500,000 

000) 

000        +21.800,000         -2,500.000 

000) 

000        -62.900.000        -46.600,000 

OOO) 

000  -280,000 


Total,  title  IV— Procurement 18.370.100,000    16,513.422.000    15.872.502.000    16.225.822.000-2.144  278  000      -287  600  000      +353  320  000 

Transfer  frem  otlier  accoonti ■   (387.300.000)      (499.800.000)      (499.800.000)  (+499,800,000)  (  +  112". 500. 000). .1. ..'... .'..... 


TITLE  V-RESEARCH.  DEVELOPMENT,  TEST,  ANO  EVALUATION 


2,095.200.000      1.366.458.000 


Rasaarcti,  development,  test,  and  evaluatiofl.  A/my 

Transfer  from  ottier  accounts. ..     . . 

Research,  development,  test,  and  evaluation.  Navy „.    2.7179,100.000  2,616,065,000 

Dasaarch,  development,  test,  and  evaluation.  Air  Farca.„ 3. 192.000,000  2.398.000,000 

Research.  de^Mopment.  test,  and  evaluation.  Oafensa  a|*nci«s 479.  940.  000  461.  400. 000 

Director  of  Test  ind  Evaluation.  Defense 24.600.000  24.600,000 


1  915.908,000 

(3.  500.000) 

2. 647. 945.  000 

3,057.000  000 

457.900.000 

24. 600. 000 


1.912.100.000       -183.100.000  +45,542,000  -3  808  000 

(3,500.000)      (+3.500.000)  (+3.500,000) 

2.651.805.000        -57,295.000  +35.740,000        '+3.8666o6' 

3.042.000.000       -150.000.000  +44.000,000        -15  000  000 

457.900,000        -21.500.000  -3.506.000 

24.(00,000 


Total,  titia  V— Research,  development,  fast  and  avaluatian.. 
Transfer  from  other  accounts 


8,500.300.000      7.966.523,000      8.103.353,000      8.088,405.000      -411895.000      +121882  000        -14  948.000 

(3.500,000)         (3.500,000)      {+3.50C.0O0>    (+3, 500,(X)0) '.^..._ 


TITU  VI— SPECIAL  FOREIGN  CURRENCY  PROGRAM.. 
TITLE  VII— GENERAL  PROVISIONS 

Additional  transfer  authority,  sac  ^5 

TITU  VIII— RELATED  AGENCY 


2.(00.00B 


2.(00.000 


2.(00.000 


2.(00.000 


(l.aeo.000.000)     (500,000,000)      (750.OOO.OOO)     (62».  000,000)  (-375,000.000)  (+125,000.000)  (-125.000,000) 


Dafansa  Manpower  Commission. 


750. 000 


+400.000 


+400,000 


-350.000 


» oWigational  authority  77,250.723.000    74  101309.000    73.264.627  000    73.714,930.000-3  535  793  000      -386.379  000      +450  303.000 

Transfers  from  other  accounts viii--,ii-ii;.-       (»7.300.0OO)      (503.300,000)      (503,300.000)  (+503.  300.  OOC)  (+116  000  000)    ^'"•■~*'"~' 

TotH.  fundmi  aeailabt* 77.250.723.000    74.  488. 609  OOO    73.767.927.900    74.218.230,000-3,032  493.000      -27o'3)?'oOO      +456'363'6m 

Transfer  luthorrty 0  WO.  MO  MO)      (500.000.000)      (750.800,000)      (625.000.000)  (-375.  000  000)  (  +  125  MO  OM)  (-^OOOOM) 


Mr.  YOUNG.  Mr.  President,  thia  rep- 
re«ent3  tiie  best  possible  compromise  be- 
tween the  defense  appropriation  bill 
passed  by  the  Senate  and  that  of  the 
HoLise.  There  was  some  hard  bargaining 
and  maxiy  compromises,  but  I  believe 
that  even  when  a  cut  as  deep  as  $3.5 
billion  below  the  budget  Is  made  for  the 
E>efense  Department.  It  can  live  with  It. 
and  that  the  research,  development  and 
production  of  the  very  necessary  new. 
modem  weapons  can  go  forward.  I  sup- 
port the  position  taken  by  the  distin- 
guished Senator  fnxm  Arkansas  (Mr.  Mc- 
Clbxait). 
Mr.  JAVIT8    Mr.  President.  I  thank 


the  distinguished  Senators  McCiiLLAW 
and  Yotrwo  for  receding  In  the  confer- 
ence to  allow  the  full  amount  for  re- 
search and  development.  In  respect  to 
the  A-10  plane  which  Is  of  great  Im- 
portance both  In  a  defense  sense  and  to 
the  manufacturer.  Falrchlld.  In  my  State, 
6ts  It  relates  to  employment,  to  remain 
to  the  conference  report  as  the  House 
had  It. 

Although  the  amount  was  relatively 
small,  to  the  total  appropriation,  about 
1100  million,  that  roughly  10  percent 
made  a  great  difference  according  to  the 
analysis  and  the  submittal  of  the  con- 
tract which  I  submitted  to  the  conferees 


with  the  support  of  the  local  Congress- 
man from  that  particular  area. 

It  Is  most  gratifying  that  though  the 
amount  Is  small  they  were  willing  to  en- 
tertain consideration  of  the  matter  as  ar. 
element  In  the  negotiations  with  U\t 
House. 

Also  I  wish  to  thank  the  committee  for 
an  Item  which  was  not  In  conference  but 
very  Important  to  the  area  I  refer  to 
keeping  open  the  St.  Alban  .s  Hospital  In 
Queens  which  Involves  tens  of  thousand? 
of  veterans  beln«  served  there,  which 
was  In  danger  of  Immediate  closing  Now 
we  have  a  chance  to  sav«  It  by  getting 


December  20,  1973 


CONGRESSIONAL  RECORD  —  SENATE 


42815 


the  VA  to  take  It  over,  or  In  some  other 
proper  way. 

I  wish  again  to  express  my  apprecia- 
tion to  the  committee  with  respect  to 
FairchUd  and  the  A-10  program.  I  wish 
to  name  Representative  Roncallo  from 
that  area  who  worked  with  me  In  the 
effort  to  get  favorable  consideration  In 
the  conference. 

Mr.  McCLELLAN.  I  thank  the  distin- 
guished Senator  from  New  York  for  his 
comments. 

Mr.  President,  I  suggest  the  absence  of 
a  quorum. 

The  PRESIDING  OFFICER.  The  clerk 
will  call  the  roll. 

The  second  assistant  legislative  clerk 
proceeded  to  call  the  roll. 

Mr.    JAVITS     Mr     President.    I    ask 
imanimous  consent  that  the  order  for 
the  quorum  call  be  rescinded 
^   The  PRESIDING  OFFICER    Without 
objection,  it  is  so  ordered 

Mr.  STENNIS.  Mr  President,  1  direct 
the  attention  of  the  Senator  f  .-om  .Arkan- 
sas to  page  18  of  the  printed  conference 
report,  near  the  bottom,  the  paragraph 
which  reads : 

with  respect  to  the  n»cal  year  1973  pro- 
curement of  U-X  utUlty  aircraft  by  the 
Army  and  CX-X  utUlty  aircraft  by  the  Air 
Force,  the  confereea  agre«J  that  the  funds 
already  appropriated  be  held  In  abeyance 
until  this  program  la  rejustlfled  to  Con^esa 

My  que.stlon  is,  is  n  the  understanding 
of  the  Senator  from  .Arkansas,  regarding 
the  action  by  the  conferees,  that  It  does 
strike  out  the  money  and  calls  on  the 
Department  of  Defense,  if  It  sees  fit  to 
come  back  sind  prove  lU  request.  If  It 
has  one.  for  an  authorization  f^.r.<^.  by 
the  authorization  committee' 

Mr.  McCLELLAN  Well  Mr  President, 
the  money  for  that  was  appropriated  In 
1973.  They  were  prohibited  from  spend- 
ing It.  This  provides  that  until  the  pro- 
gram is  re  justified,  tlie  Congress — I 
would  assume  that  means  the  present  au- 
thorization— I  do  not  know  how  Congress 
can  demonstrate  its  "hstiflcatlon  except 
by  authorization  I  ki.ow  of  no  other  way 
to  do  it 

Mr.  STENNIS.  I  thank  the  Senator 
very  much  That  1.-,  tlie  ansuer  I  tiwught 
he  would  give  me.  even  though  we  have 
not  load  a  conference  ab*>ut  Uiis 

Mr  MrCLELI^N  I  do  not  know  of  any 
other  wav  Congress  can  authorize  spend- 
ing money  except  hv  legislation 

Mr  STENNIS  It  w  a.s  sUK»{ested  U:  me 
that  a  tx)ssjble  interpretation  was  It 
could  be  rejustified  by  us  merely  by  goln* 
before  a  committee  or  .something  of  that 
kind,  which  I  do  not  think  Is  !>osslble 

Mr.  McCI.FLL.AN  I  would  assume 
those  Interested  in  the  program,  when 
the  military  defense  bill  authorization  Is 
up  In  the  next  .session  of  Congress,  If 
they  were  interested  in  renewing  the  pro- 
gram, would  go  bt'fore  the  Defense  Au- 
thorization Comniittees  and  justify  it, 
that  it  be  included  in  a  further  authoriza- 
tion in  the  bill,  so  that  the  authorlzAtion 
would  be  restored 

Mr.  STFNNIS  Either  restored  or  re- 
jected 

Mr.  McCLELLAN  Yes.  If  Congress  felt 
It  justified,  they  would  restore  It. 

Mr.  STENNIS.  I  thank  the  Senator 
C:!XIX 3696— Part  33 


very  much  and  compliment  him  as  well 
as  the  Senator  from  North  Dakota  (Mr. 
YotTNG)  for  the  extraordinar>-  amount  of 
fine  work  they  have  done,  day  and  night, 
during  this  whole  year.  I  know  they 
started  working  on  this  bill  last  Decem- 
ber. I  have  observed  some  of  it  I  have 
iiot  been  making  my  contnbuuon  to  it. 
but  I  know  what  they  have  done  and  the 
amazing  amount  of  work  the>'  have  done 
We  are  all  mdebted  to  them — and  so  is 
the  country. 

Mr.  McCLELLAN.  I  may  say  to  the 
distinguished  Senator  from  MLssissippi 
that  the  very  thorough  and  efficient  work 
of  the  Armed  Services  Committee  was  a 
great  aid  to  those  of  us  on  the  Appropri- 
dtioiLs  Committee,  which  made  it  much 
easier  for  us  to  determine  many  of  these 
requests  on  their  merits.  We  also  have 
the  benefit  of  tiie  counsel  of  the  distin- 
guished Senator  from  Mississippi  iMr. 
Stennis'  as  we  considered  the  appropn- 
..tioris.  We  were  verj'  fortunate  in  that. 
While  he  did  not  get  to  contribute  as 
much  and  be  present  in  the  Appropri- 
ations Committee  deliberations  this  year 
as  much  as  he  normally  would,  he  was 
very  valuable  to  i;s  in  the  conference  just 
ended,  and  we  appreciate  his  contribu- 
tions there 

Mr.  YOUNG  .Mr  Pre.sident  I  alsc.  w.sh 
to  thank  the  distinguished  Senator  from 
Mississippi  for  his  competence  and  for 
his  real  contribution  in  helping  develop 
this  bill.  Although  he  was  not  able  ;o  be 
here  much  of  the  year.  v,e  did  consult 
with  nun  often  and  he  was  ver>-  helpful 
in  the  conference,  especially  on  the  more 
involved  subjects. 

Mr.  STENNIS.  It  is  a  privilege  to  work 
with  the  Senator  from  North  Dakota  and 
the  Senator  from  Arkansa.- 


ENROLLED  BILLS  PRESENTED 

The  Secretary  of  the  Senate  reported 
that  on  today.  December  20  1973,  he  pre- 
sented to  the  President  of  the  United 
States  the  foliow"ng  enrolled   bUls: 

S.  1435.  An  act  Uj  reorganize  the  govern- 
mental structure  of  the  District  of  Colum- 
bia, to  provide  a  charter  for  local  gover:.- 
raeiit  In  the  District  of  C.<jiumbla  .subject 
to  acceptance  by  a  major'.lv  of  the  regi^- 
•«red  qualified  electors  m  the  District  of 
'aiumbla,  to  delegate  certain  legislative 
^jowers  to  the  local  government.  Ui  Imple- 
Uient  certiiln  recommendalio:!*  of  the  Coin- 
mlfislon  on  the  Organization  of  the  Oovern- 
ment  of   the   District   of   Coiumbla.   and   for 

ther  purpose.s 

S  1529  .\n  act  to  authorize  the  Secretary 
of  the  Ii.ier.or  to  ent^r  Into  agreements 
with  non-Federal  agencies  for  the  replace- 
ment of  the  existing  American  Palls  Dam, 
Minidoka  project,  Idaho,  and  for  other 
purjKJees; 

S.  1945  An  act  to  amend  the  Agrlctilttu-al 
Adjustment  Act.  as  reenacted  and  amended 
by  the  Agricultural  Marketing  Agreenient 
-Krt  of  1937.  50  as  to  au!hor;.-'e  certain  grape- 
fr\iit  marKetlng  orders  which  provide  for  an 
n.s*e<wment  ag^!n.st  handlers  for  the  purpose 
'  f".:.a:.i  '.np  a  marketing  promotion  program 
to  also  provide  'i>r  a  credit  against  juch 
aKxessmer.t  In  the  case  of  hai.dle.-s  who  ex- 
pend directly  for  marketing  promotion    and 

S.  2493.  An  act  to  authorii-e  the  disposal 
of  silicon  carbide  from  the  nuiona!  stock- 
pile  and   the   supp.emer.tal   s'ockpile 


THE  REPTL'^LICAN  REPORT 


Mr    HUGH  SCOTT    Mr.  President,  It 

is  customa.-y  for  the  Republican  leader 
at  the  end  of  each  session  of  Congress  to 
submit  to  his  colleagues  a  report  on  what 
has  happened  dunng  the  year.  Today  I 
submit  such  a  report  and  ask  unammous 
consent  that  it  be  pruited  in  Uie  Record 
at  the  conclusion  of  mv  brief  remarks. 

The  PRESIDLNG  OFIFICEH,  Without 
objection,  it  is  so  ordered 

Mr  HUGH  SCOTT  Mr.  President,  I 
also  ask  unanimous  consent  that  this 
Republican  report,  entitled  "Congress 
I-6edisco\ers  Itself"  be  printed  as  a  Sen- 
ate document,  and  that  the  staff  of  the 
Minonty  Policy  Committee  be  author- 
ized to  make  revisions  in  the  tabulated 
midportion  as  of  the  time  the  Senate 
adjourns  sine  die. 

The  PRESIDLNG  OFFICER  Without 
objection,  it  is  so  ordered 

CONGiESS    RtDIiSCOVEES    ITSELT 
INT»ODCCnON 

Mr.  President  at  the  outset  of  thle  Report 
I  m'dBt  admit  that  my  Job  has  be«n  made  poe- 
slble  only  by  virtue  of  the  fine  relationship 
I  have  enjoyed  with  the  diftingulshed  Ma- 
jority I^eader.  the  Senator  from  Montana 
(Mr.  MA.Nsricj)).  Our  friendship  is  of  long 
standing,  and  our  close  working  relation- 
ship started  the  very  first  cL»y  I  was  elected 
Repubiloan  Leader.  I  owe  him  much,  the 
Senate  owes  him  much,  the  Nation  owes  hLn 
much. 

I  wish  also  to  commend  the  vigorous  tnA 
balanced  way  the  Majority  Whip,  my  good 
friend  from  West  Virginia  Mr  Rgbebt  C. 
BvRE;,  ha£  handled  the  difBcult  assignment 
cf  keepLng  the  Senate  moving  ahead  on  the 
Nation's  busUxeas. 

On  my  side  of  the  aisle  I  am,  of  course, 
deeply  indebted  to  the  untiring  efforts  of 
the  Assistant  Republican  Leader,  the  Sne 
and  dlstlng-olshed  Senator  from  Michigan 
(Mr.  GairriN  1  .  His  help  has  been  enormous, 
his  energy  boundless  and  his  sagacity  great 
The  reet  of  the  Republican  laadersiiip,  uhe 
eiiCrgetlc  and  thoughtful  (Conference  Secre- 
tary (Mr.  BENNrTT).  and  our  distinguished 
Conference  Chairman,  the  Senator  from  New 
Hampsh  Ire  i  Mr .  Cotton  ] .  have  1  Ike  wise  be«n 
-f  inestimable  assistance  At  this  point  I 
must  Interject  my  own  feeling  of  sorrow 
that  Senator  BrN.N-rrr  and  Senator  Cotton 
have  determined  not  to  seek  reelection  next 
year.  Their  strotxg  voices  of  reason  and  their 
remarks,  always  sense -maitng,  will  be  sorely 
miased  in  this  chamber.  Great  thank.*  mua't 
alao  be  given  to  the  Chau-man  of  the  Re- 
publican Policy  Comm.ittee  Mr.  Town  ,  for 
the  capable  and  vigorous  wa\  he  has  directed 
the  affairs  of  that  commi;:««  and  tiie  con- 
tributions he  has  mskde  to  the  orderly  proceas 
of  legislation. 

It  has  been  an  honor  to  serve  mv  Republi- 
can colleagues  as  their  floor  leader  Their 
fine  cooperation  and  their  wUllngneas  to  help 
on  ail  occasions  have  made  it  possible  'or  m* 
to  carry  on  my  Job. 

X 

Tlie  vear  1973  brings  to  an  end  ten  tumul- 
tuous years  In  American  history  At  least,  m 
can  hope  it  all  moderates  with  1973.  To  gt>  on 
as  w-e  .have  been  la  mare  tiian  even  our  strong 
\:.ui.iry  ought  To  be  asked  ur^  bear 

T>ie  1860s  and  the  1940s  mav  have  been 
.■jloodler — the  1890  s  mav  have  had  more  la- 
i>or- management  violence — 

But  nothing  quite  match«  the  wild  va- 
riety of  shocks  to  which  the  American  p)«opie 
have  b««n  subj»ct«d  during  the  decide  Jnsi 
;>asl  as.sas.'iinat.ont  uf  .ur  .e&ders  head-on 
~c>nfr_ntauons  and  ra<  la;  ■.  lu^e.nce  m  il.e  civU 
.'igh;.«  struggle     no-->..„-   uf.-urges  .jf  student 


42816 


CONGRESSIONAI    RFCORD  — SENATE 


rmaicaJlsm;  Ivory  towers  toppling  In  the 
grove«  of  academe,  increasing  coct  in  blood 
and  treasure  for  an  undeclared  war  10.000 
miles  away;  resort  to  violent  protest  against 
tbat  conOlct;  attempts  to  smash  the  orderly 
proceedings  ot  major  polUlcal  parties  nomi- 
nating prestdentlaJ  candidates;  vast  swings 
In  public  opinion,  from  overwhelming  Demo- 
cratic victory  In  19«4  to  the  second-closest 
election  In  history  In  1968  to  overwhelming 
Republican  victory  in  1973;  pell-mell  in- 
creases in  public  expenditures  for  social  wel- 
fare programs,  together  with  growing  dis- 
illusionment as  to  the  eScacy  of  such  pro- 
grams; sudden  and  far-reaching  changes  in 
moral  codee  for  families,  for  public  enter- 
tainment, for  personal  conduct;  luiurlant 
growth  In  personal  spending  habits  for 
■youth"  as  well  as  adults;  great  revolutions 
In  American  foreign  policy  with  respect  to 
China  and  Russia;  and  finally  the  drop  from 
the  1973  heights  of  political  popularity  o*  the 
Nixon  Admlnislratlon  as  a  result  of  revela- 
tions and  investigations  In  1973. 

How  win  history  treat  this  time?  Certainly 
there  will  be  a  more  vivid  record  of  it  than 
was  available  for  any  historians  of  earlier 
Umea. 

Perhaps  our  Instant,  ailnute-by-mlnute 
media  techniques  of  reporting  everything 
virtually  as  it  happens  have  helped  make  this 
decade  seem  so  wild,  undlsclpimed.  even 
mindless 

Every  crime,  every  act  of  violence,  every 
tragic  accident,  every  confrontation  of  any 
magnitude  throughout  the  United  States  (In 
Itself  more  like  an  entire  continent  than  a 
mere  country),  and  the  entire  world,  comes 
smashing  into  our  living  rooms  each  evening, 
arouses  us  in  the  morning,  accompanies  us  In 
our  work  all  day. 

With  It  comes  a  demand  for  instant  solu- 
tion, immediate  reparation,  or  at  the  very 
least,  total  public  mveatlgatlon 

This  ceaseless  dramatization  of  human 
travail  becomes  the  Inspiration  for  page  after 
page  of  proposed  legislation  in  the  Coxcaxs- 

StOHAL    RXCORC 

It  leads  to  the  feeling  that  everything  la 
collapsing  all  around  us  We  forget  that  solid 
foundations  of  clvihty.  human  kindness  and 
community  assistance  still  exist  We  Ignore 
the  thickets  of  laws  and  ordinances  so  long 
grown  to  protect  family  and  friend  from 
these  terrible  blasts  of  human  irrationality. 

The  one  place  this  should  not  be  forgot- 
ten— at  least  one  would  so  think — is  Wash- 
ington, DC  And  yet  I  sometimes  feel  the 
dramatisation  of  humanity's  predicaments 
has  become  so  concentrated  in  this  District 
of  Columbia  enclave  as  to  cause  Congreaa  to 
twitch  and  Jerk  in  never-ending  response.  We 
In  Congress  were  elected  not  Just  to  reflect 
and  represent  we  were  elected  to  dtstmgulsh 
between  fools  gold  and  the  real  thing,  to 
filter  the  best  thoughts,  the  most  honorable 
wishes,  the  finest  hopes  from  the  great  wash 
of  human  utterance  and  outcry  of  310  mil- 
lion people 

Instead,  the  reverse  seems  to  be  true.  Be- 
yond the  Potomac  there  is  not  the  same  pre- 
occupation with  politics  and  government 
That  is  perhaps  to  be  expected  For  beyond 
the  Potomac  there  is  also  a  calmer,  more  re- 
stramed.  more  objective  attitude  toward  the 
Washington  dramas  of  personality  and  power 
n 

Wa  live  in  an  age  that  is  hard  cheese  on 
tradition  and  precedent  Last  year  the  Sen- 
ate m  lU  majesty  cast  533  ncorxi  votes, 
thereby  breaking  a  184  year-old  mark 

Unfortunately  for  this  new  record,  the  Sen- 
ate this  year  has  voted  on  so  many  subjects, 
and  at  such  a  furious  pace  as  to  run  far  be- 
yond 1972  in  fact,  tt  could  well  come  cloee 
to  the  800  mark,  which  to  us,  may  be  consid- 
ered as  somerhlng  like  the  ma«te  1  000  Dow- 
Jone«  market  average  This  means  that  if  the 
Senate  should  lapee  into  somnolence  next 
f"*r — or  exert  a  btt  more  discipline — axul 
produce  a  mere  450  votes  (which  would  of  It- 


December  20,  1973 


self  been  a  record  only  a  few  years  ago)  It 
will  nevertheless  set  an  all-time  record  vote 
total  for  a  two-year  Congreas.  breaking  a 
mark  that  stood  m  solitary  splendor  '  for 
90  years 

What  then  did  the  Senate  vote  on.  and  why 
so  often? 

The  entanglement  of  education,  health  and 
welfare  programs,  of  foreign  policies  and  mil- 
itary preparedness,  of  environment,  energy, 
agriculture,  and  election  campaign  reform  all 
stimulated  the  legislative  glands.  To  this 
must  be  added  a  unique  relation  in  our  polit- 
ical history  the  Majority  Party  in  Congress 
nas  faced  a  President  of  the  opposite  Party 
since  1969 

Perhaps  we  should  start  with  this  political 
factor  When  the  1st  Session  of  the  93d  Con- 
gress began  In  Janu  uy.  1973.  Senate  Demo- 
crats bad  an  explanation  for  the  contradic- 
tions of  the  1973  election;  they  announced 
that  the  continuation  of  the  Democratii  as 
majority  party  in  House  and  Senate,  along- 
side the  overwhelming  victory  of  Republican 
President  Nixon,  proved  the  American  people 
did  not  want  "one-party    government 

Perhaps  they  are  right,  perhaps  not;  we 
may  never  return  to  thoee  bad  old  days 
between  1933  *nd  1963.  and  ag  In  between 
1961  ani  1969,  when  the  Nation  groaned 
under    one-party  Democrat  government 

In  any  event,  the  clash  between  Executl-  e 
and  the  Congressional  Majority  has  been  a 
great  constant  in  the  ist  session  of  the  93d 
Congress.  It  begin,  and  It  will  end,  with  the 
gut  Issue  of  Executive  Budget  versus  Legisla- 
tive Appropriations.  But  in  addition  to  the 
Presidents  effort*  to  curtail  Inflationary 
spending,  this  historic  conflict  has  flared  over 
such  matters  as  "executive  privilege"  versus 
the  'nveetlgatory  powers  of  Congress;  the 
power  to  appomt  versus  the  power  to  con- 
firm, the  war  powers  of  President  and 
Congress. 

ni 
Disagreement  between  President  and  Con- 
gress over  dimension  and  content  of  the 
budget  Is  an  annual  affair  Indeed,  tt  would 
be  cause  for  real  alarm  if  Congress  supinely 
accepted  the  budget  as  trxmdled  down  from 
the  Executive  Office 

The  debate  was  stoarper  and  more  dis- 
agreeable m  1973  because  of  Inflation  What 
President  Nixon  proposed  this  year  Is  closely 
related  to  what  Senate  and  House  failed  to 
do  last  year,  and  the  year  before:  set  limits 
on  Federal  spending  and  root  out  programs 
which  either  were  dupllcalory,  or  no  lonaer 
Justifiable. 

Some  of  the  proposed  program  termina- 
tions or  revisions  nad  been  advocated  earlier 
by  President  Nixon,  and  President  Johnson 
as  well  Oongrees  response  has  heretofore 
been  to  ref«M  to  impoee  an  overall  budget 
limit,  and  to  shy  away  from  hard  decisions 
on  terminating  programs  In  October  1973 
the  taak  of  curbing  spending  to  check  infla- 
tion was.  In  effect,  thrown  to  the  President 
by  House  and  SenaU  Bis  response  In  Janu- 
ary. 1973.  wa«  to  propow  that  the  ry  1974 
Budget  level  be  held  at  VM»  billion  To  make 
sure  thu  was  a  celling  and  not  a  take-off 
pad.  he  ordered  the  withholding  of  funds 
and/or  phasing  out  of  programs  sufficient 
to  cut  current  spending  by  about  (9  billion 
The  President  Justtfled  this  antl-spendlng. 
antl-inflatlonary  program  In  broad  terms  He 
argued  that  he  had  to  execute  aU  laws  faith- 
fully; that  he  was  bound  as  much  by  Uws 
aimed  at  flghtlng  inflation,  requiring  the 
public  debt  limit  not  be  exceeded  or  deter- 
mining the  environmental  Impact  of  pro- 
grams, as  he  might  be  by  specific  program 
au'.honaations  and  approprlaUons 

.Vnd   he   could   point  to     Lnapounding"  or 
reserving"   of    funds   appropriated   by   Oon- 
greea  by  Presldenu  from  Jefferson  to  Lyndon 
Jobnaon 

As  far  as  can  be  d#termlned.  moat  each 
actions  by  previous  Presidents  were  not  chal- 
lenged   in   court    Some   of  the   more   recent 


refusals  to  spend,  involved  considerable 
monays  for  specific  defense  progranu.  Per- 
haps It  would  oniy  be  fair  to  point  out  that 
ooa  would  hardly  expect  the  Department  of 
Defense  to  attempt  to  Ut^ate  the  matter 
as  against  the  Conxmander  in  Chief. 

This  Ume  the  situation  was  different  Not 
only  was  Congress'  authority  challenged,  but 
large  numbers  of  private  groups,  of  city, 
county  and  State  agencies,  were  cut  off  from 
funds  for  which  Acts  of  Congress  had  made 
them  eligible  Thus  when  the  legal  battles 
began,  the  cast  of  UUganU  and  the  law  in 
question  differed  in  each  ca^,*  Prealdent 
Nixon  was  not  the  defendant;  rather  it  was 
the  particular  Pedrral  official  obligated  to 
administer  the  particular  law  under  which 
funds  were  distributed  And  that  particular 
l»w — not  a  broad  constitutional  theory — was 
the  determinant  as  to  whether  funds  were 
properly  withheld  ur  not.  In  almost  all  such 
litigation,  the  courts  have  held  the  funds 
were  withheld  improperly,  thai,  Cou^re^  UuS 
made  clear  why  and  how  such  funds  were 
to  be  obligated  and  allocated,  and  had  left 
no  discretion  to  President  or  Federal  offi-lal 
charged  »uh  administering  the  lav 

It  might  then  be  argued  that  the  Bxecutlve 
has  lost  the  'Impoundment''  or  "reservation" 
of  funds  battle,  that  the  powers  of  Congreas 
have  been  refurbished  and  clarified 

On  the  other  hand,  early  this  year  Congress 
seemed  on  the  verge  of  placing  a  ceU!n«  on 
spending  for  FY  1974  First  the  Senate  and 
then  the  House  pa.^sed  legislation  to  that 
effect  However,  the  respective  versions  dU- 
fered  both  as  to  exatt  total,  and  provisions  on 
impoundment  controls  The  bill  died  out- 
side the  conference  doors  Even  more  im- 
portant, because  more  far-reachmg.  commit- 
tees In  House  and  Senate,  after  lengthy 
hearings  have  reported  out  separate  bUls  to 
Improve  procediu-es  by  which  Congress  first 
considers  the  entire  budget  and  only  there- 
after authoriaee  and  appropriates 

The  whole  question  of  re»er\lng  appro- 
priated funds  or  curtaUlng  programs  has 
proven  more  oomplloated  than  either  Execu- 
tive or  Congress  realized  when  battle  was 
Joined  last  January  One  measure  of  this  Is 
that  although  numerous  so-cailed  antl-im- 
poundment  bills  were  proposed,  and  differing 
versions  of  one  bill  were  passed  by  Senate 
and  House,  final  consideration  of  this  ques- 
tion has  been  postponed  until  next  year 
Thsse  reforms  are  long  past  due 

FlnaUy,  we  move  back  to  dquare-One  the 
fight  against  Inflation  fed  by  Federal  spend- 
ing For  thU  has  also  been  fhe  primary  jus- 
tification offered  by  Prealdent  NUon  In  meet 
of  his  vetoes  of  legislation  enacted  by  Con- 
grew  this  year  and  last  And  despite  the 
solid  Democratic  majorities  In  Congress  all 
but  'he  last  of  his  nine  vetoes — that  of  the 
War  Powers  Act — were  sustained  either  by 
House  or  Senau.  Insofar  as  the  taxpayer  Is 
concerned,  the  veto  u  the  lau  handle  avaU- 
able  to  turn  off  the  money  faucet,  whether 
It  be  a  reckless  flow  or  a  ceaseless  drip 

The  sustaining  of  Presidential  vetoes  on 
taoney  matters  is  a  tribute  to  the  coheelre- 
nt»*  of  Sanate  and  House  Republicans  and 
their  allies  in  the  all-important  battle  to 
save  the  taxpayers'  purse. 

TH«  powaaa  or  coNcaxss 
ContT*«.  becau.se  it  U  such  a  nvlng  re- 
ndition of  America  with  all  our  sUengths 
and  weaknesses,  seems  to  be  subject  to  con- 
tinuous disparagement.  Our  homs-grown 
critics  overtook  what  foreign  observers  con- 
sider most  remarkable  that  It  is  still  a  high- 
ly viable  lawmaking  body  There  are  few  leg- 
islatures or  parllamenu  in  the  free  wortd 
thst  can  stui  initiate  laws,  as  weU  as  amend 
or  refuse  laws  suggMtad  by  tbt  executive 

K  '-A  .H.-,  *^o — particularly  during  those 
lon<i  ;.t-*  '■i;-'nslve  nights  of  "one-party" 
government  when  Democrats  conrr-.'ied  •-■th 
Con«re«s  and  the  Proaldency— Con,{TB«  was 
continually  lectured  by  its  critics  to  give 
the    ExecuUve    the   power*   he   needed     The 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42817 


p>olnt    was   made   with    special   emphasis   In 
matters  of  foreign  policy. 

It  is  only  of  late  that  Democratic  court 
historians  have  spun  out  treatises  on  the 
Imperial  Presidency,"  stamping  the  bar  sin- 
ister on  their  own  progeny  with  stem  self- 
nghteousness.  This  Is  a  trait  of  those  who 
helped  to  make  the  history  they  later  inter- 
pret to  Justify  their  deeds  or  bury  their  er- 
rors. Nevertheless.  Congress  this  year,  par- 
ticularly the  Senate,  has  made  strong — in 
many  Instances  constructive — efforts  to  clar- 
ify Its  powers  The  War  Powers  Act — which 
I  supported  In  Its  final  form — reflects  dis- 
satisfaction with  the  practices  which  have 
developed  In  the  use  of  our  military  forces 
without  a  declaration  of  war.  Supporters,  of 
course,  used  the  'Vietnam  conflict  as  a  prime 
example.  President  Nlion  inherited  that 
one,  and  pursued  au  orderly  withdrawal  pol- 
icy with  admirable  tenacity  A  majority  in 
Congress  voted  for  the  War  Powers  Act,  and 
overrode  the  Nixon  veto,  out  of  concern 
for  the  powers  of  Congress,  rather  than  any 
personal  animus  against  the  President 

Another  Issue,  "executive  privilege"  versus 
the  Investigative  powers  of  Congress,  which 
has  been  long  festering,  came  to  a  head  this 
year.  The  need  of  any  Prealdent  for  oonfl- 
dentlallty  with  roepect  to  communications 
and  discussions  with  hi;:  advisers  has  gen- 
erally been  recognized  There  must  be.  as 
well,  a  ceaseless  ■iow  of  information  from 
executive  agencies  to  Congress  The  pinch 
comes  when  a  congressional  committee  needs 
Information  from  which  to  Judge  the  proprie- 
ty of  administrative  actions,  or  as  a  baels  for 
proposed  corrective  legislation. 

Congress  Is  right  In  Insisting  that  execu- 
tive privilege  be  InvtAed  by  the  President 
only  when  confidentiality  or  national  security 
or  foreign  negotiation  in  the  true  and  re- 
stricted sense  are  actually  Involved  Congress 
can  beat  make  Its  argument  here  when  lU 
demand  for  Information  from  the  Executive 
are  In  terms  of  Its  real  needs,  rather  than 
for  partisan  purpooes. 

The  Issue,  of  course,  came  to  its  sharpest 
focus  in  the  Investigations  of  Watergate  and 
lU  aftermath  Here  It  would  seem  proper  to 
point  out  that  Republican  Senators  and  Rep- 
reeentatlves  performed  admirably.  There  Is 
no  question  that  this  scandal  will  hurt  the 
Republican  Party,  even  though  It  was  large- 
ly the  work  of  political  Illiterates  operating 
outside  our  Party  channels  and  organiza- 
tion. Republicans  are  no  more  to  blame  than 
Democrats  for  neither  partv  was  a  part  of 
these  actions  Nor  did  Repiibllcans  in  Con- 
gress condone  or  attempt  to  cover  up  They 
Insisted  on,  and  participated  In,  the  full- 
est alrtng  of  the  affair  I  think  their  per- 
formance Is  In  great  contrast  to  the  rather 
pitiful  manner  In  which  the  Bobby  Baker 
scandal  was  Investigated  In  1903  and  1964, 
with  its  blatant  coverup  and  careful  limita- 
tion to  Baker  alone. 

Senate  Republicans  played  a  strong  and 
constructive  part  in  drafting  the  amend- 
ments passed  by  the  Senate  this  year  to  pre- 
vent slnUlar  abuses  in  soliciting  and  dis- 
bursing campaign  contributions  such  as  oc- 
curred In  1972. 

At  the  beginning  of  this  year,  the  Issues 
attracting  the  most  attention  centered 
around  the  separation  of  p>owerB  between 
Congress  and  the  Ebiecutlve  under  our  Con- 
stitutional arrangement  of  govemnMnt.  Al- 
most every  Committee  could  And  this  argu- 
ment affecting  lU  legislative  proposals  The 
Issue  etin  renoalns — in  fact,  it  will  always 
exercise  our  departments  of  government.  It 
was  so  Intended  by  the  Founding  Fathers 
But  by  December  1973  a  new  strand  was 
being  woven  into  almost  every  pieoe  of  legis- 
lation and  floor  speech :  The  "Energy  Crisis  " 
Given  the  gravity  and  complexity  of  this 
problem  tt  will  no  doubt  occupy  our  atten- 
tion for  a  long  time. 


Just  so  In  our  foreign  policy  At  the  begin- 
ning of  the  year  we  were  moving  away  from 
our  Intenso  preoccupation  with  Southeast 
Asia.  The  Cold  War  constants  had  been  modi- 
fied as  a  result  of  President  Nixon's  diplo- 
macy vl8-a-7la  China  and  the  Soviet  Union. 
A  tenuous  cease  fire  was  negotiated  between 
Saigon  and  Hanoi. 

Thus  thii  was  to  be  the  year  in  which  the 
United  States  and  our  NATO  allies  could 
reexamine  and  restructure  our  alliance.  But 
the  renewal  of  war  In  the  Near  East  and  the 
resulting  oil  embargo  on  the  part  iij  produc- 
ing Arab  States  has  caused  t'-airis  *rirt 
stresses  far  beyond  expectations  TTie  quest 
for  a  solution  of  the  Arab-Israeli  conflict 
now  assumes  over-rldit.p   importance 

Once  more  our  character  and  fortitude  are 
being  tested.  Perhaps  we  have  already  for- 
gotten the  shining  event  of  1973.  After 
long,  terrible  years  of  privation  and  torture. 
American  prisoners  of  war  came  back  to  the 
land  and  people  for  whom  they  had  sacri- 
ficed so  much.  The  press  of  events,  the 
preoccupation  with  self,  the  lust  for  recog- 
nition are  always  with  us.  I  would  hope  to 
God  that  If  ever  we  despair  of  our  country, 
we  remember  these  men.  In  their  darkest 
hours  they  never  gave  up. 

rv.  STATDS  or  MAJOR  USGISLATION 

In  many  instances,  bills  which  have  passed 
either  Senate  or  House  are  not  necessarily 
Identical  with  those  submitted  by  the  Ad- 
ministration but  cover,  generally,  the  same 
areas  of  Interest.  BUI  nimibers  appearing 
Immediately  after  the  title  or  program  are 
Administration  bills.  Where  numbers  have 
been  changed  during  committee  action,  the 
new  numbers  are  given  In  the  "Status" 
section. 

8t7MMAJtT 

Of  the  69  major  Presidential  programs:  The 
House  has  passed  30  The  Senate  has  passed 
33.  Sixteen  have  become  public  law.  Thus. 
27  percent  of  the  President's  program  has 
been  enacted  Into  law. 

Information  on  these  programs  Is  as  of 
midnight  December  19,  1973. 

StrMMAXT   or  LscisLATrvx   AcTTvrrT 

AOBtCTTLTOKX 

Farm  bill.  S   1888. 

SUtus:  House — passed  S.  1888  7-18  Sen- 
ate—passed 8  1888  6-18  President  signed 
the  bill  8   10;   PX    93^6 

COMMEBCE 

Export  Administration  Act.  S  3063  H  R 
8547 

SUtus       House — (H.     Res      484  ^      passed 
Hotise  9-6;   referred  to  Senate  Bar.kinp  9-7 
reported  out  of  Committee  13-7;  No   93-607; 
3«nate — referred    to    Banking;    8     2053    has 
been  tabled. 

International  Voluniarv  .'Standards  Coop- 
eration  Act,  8     1761.   HR    ~506 

Status  House — referred  to  Commerce:  no 
action  Senate — referred  to  Conunerce;  no 
action. 

Metric  Conversion,  H  R  5749. 

Status  House-  referred  to  Science  and 
Astronautics:  clea:.  bill  MR  10676  was  re- 
ported to  full  Committee  Oommittee  or- 
dered a  second  clean  hll!  reported  with  Its 
amendments;  HJR  11035  reported  out  of 
Committee  on  10-33  and  placed  on  Union 
Calendar  No  261  Senate — -6  100,  similar  to 
House  bill  was  ordered  reported  out  of  Covn- 
mlttee  on  10-8;  has  been  temp)orarlly  po.«t- 
poned  until  next  session 

Trade  Reform  Act  of  1973    HR    ^767. 

Status  House — referred  to  Ways  and 
Means;  clean  bill  H  R.  10710  reported  out 
10-10;  passed  House,  13-  II;  referred  t<j  Sen- 
ate Finance.  13-13. 

XNVIBONMXNTAl.     FROTSCTION     AOKNCT 

Safe  Drinking  Water  Act.  H£.  6368,  8. 
1788. 


Status-  House — referred  to  Commerce; 
clean  bill  HR  7926  approved  7-i8  by  Sub- 
committee, Committ-ee  ordered  that  a  sec- 
ond clean  bill  be  rep)ort*d  out  of  Subcom- 
mittee full  Comm:ttee  has  not  yet  begun 
consideration  of  second  clean  bill  HJl.  10956. 
Senate — ptassed  8    433.  6-22 

Toxic  Substances.  8  888  HR  5087 
Status  House — passed  clean  bUl  HR  6366 
7-23;  tabled:  passed  S  426  ;n  lieu.  Senate 
requested  a  conference  7-24:  House  agreed  to 
a  conference  8-1  Senate — passed  a  clean  bill 
S.  436,   7-18;    now  In   conference. 

CEKEEAl.     SEHVICES     ADMINISTRATION 

Stockpile  Disposal  Act.  5    1849,  HR    7153. 

Status:  Housfr- referred  to  Am.ed  Sen  ices; 
not  yet  assigned  to  Subcommittee  Senate—^ 
referred  to  Armed  Services;  not  yet  assigned 
to  Subcommittee 

However,  pieces  of  S  1849  have  been  ex- 
tracted and  passed  as  separate  bUls,  several 
of   which   have   since   passed   the   House 

HEALTH,    XDOCATION,    kUD    WKLFARX 

Better  Schools  Act,  S.  1319.  HR.  5823. 

Status:  House — Subcommittee  on  Educa- 
tion has  reported  HR.  69  as  an  extension 
of  the  present  law,  the  Elementary  Educa- 
tion Act;  full  Committee  markup  In  progress. 
Senate — S.  1319  referred  to  Labor  and  inibllc 
Welfare.  7-31;  clean  bill  S.  1539  reported  out 
of   Subcommittee   to   full    Committee    13-19. 

Health  Maintenance  Organization  Act  8 
972,  HJi,  4871. 

Status:  House — reported  H  R.  7974  from 
Commerce  8-10;  passed  House  9-13;  tabled; 
passed  S.  14  as  amended,  9-12;  Senate  re- 
quested a  conference  9-13;  House  agreed  to 
a  conference.  9-25;  report  filed  \n  House, 
12-13;  report  filed  in  Senate.  13-13;  House 
agreed  to  conference  report,  13-18;  Senate 
agreed  to  conference  report  12-19.  Senate — 
passed  S.  14,  5-6;  sent  to  House  Commerce 
5-17. 

Vocational  BehabUltatlon  Act  Amend- 
menu.  S.  1413.  HJl.  4814. 

Status:  House-^^sssed  clean  bUl  H_R  7423 
7-17;  tabled:  passed  S  1413.  7-17.  Senate — 
passed  S  1413.  6-15;  passed  Hovise  7-17.  Pres- 
ident signed  the  bill.  7-30;  Public  Law  93-76. 

RehabUltatlon  Act  of  1973  (second),  no  ad- 
ministration bill.  / 

Status  House — passed  HJl.  8070.  6-5;  sent 
to  Senate  Senate — passed  HJl.  8070,  S.  1876, 
7-18.  President  signed  the  bUl.  9-36;  Public 
Law  93-112. 

Social    Security    Amendments,    HJl.    7445. 

Status:  House— pas.sed  House.  5-9.  Sen- 
ate— passed  Senate.  6-30  President  signed 
the  bUl,  7-9:    Public  Law  93-66 

HOUSING    KtrO    URBAN    DrVILOPMENT 

Better  Communities  Act.  S    1743.  HR   7277. 

Status  House — referred  to  Banking  hear- 
ings completed  !1-1:  no  further  action  Sen- 
»t* — referred  to  Banking:  markup  has  begtm; 
likely  that  a  clean  bill  will  be  reported  out. 

Disaster  Preparedness  and  Assistance  Act 
S    1840    HR    7755 

Status  House — referred  to  Public  Works; 
no  action,  clean  bill  H  R  7890  hearings  have 
been  completed:  ordered  reported  to  ftill 
'"ommittee  Senate — referred  to  Bankmg:  no 
.'u.n-her  art  Ion 

Flood  Disaster  Protection  Act  of  1973  S 
1495    H  R    60*1 

Status  House — clean  bUl  HJl  8449  pa&vd 
House  9-6,  referred  to  Senate  Ba.".k;ng  9-6. 
Senate--*  1495  referred  to  .Senate  Bankmg; 
H  8449  passed  .Senate,  amendoc:  12  1;  pro- 
eedln^s  vacated  a:,d  ordered  placed  on  Cal- 
t-ridar     13-1:    passed   Senate   amended   13-18. 

FHA  Mortgage  Insurance  no  administra- 
tion bill 

Status     »3use— passed  HJ    Res.  719,  9-17. 
Senate — passed  H  J    Res   719.  10-1.  President 
signed  the  bill  10-3:   Public  Law  93-117. 
nrncxioB 

Alaska    Pipeline.    S.    1040,    HJl.    B442. 

Stattia:     House — passed     clean     bill     HJi. 


42818 


CONGRESSIONAL  RICORD  —  SENATE 


December  20,  1973 


9130,  8-3;  Ubied;  p*M«<l  S.  1061  In  ll«u  S-a. 
Sen»t« — paM«<l  clemn  blU  S.  1081.  7-17.  PtmI- 
deDt  Btgned  the  btU  11-18:  Public  Law  93- 
153 

Deep  W»t«r  Port*.  6    1751.  UA   7501. 

Status  HouB« — rafMTed  to  Houa*  Int«rlor, 
hearing  began  10-1;  now  read;  for  markup 
Sen«t« — bearings  haw  been  completed  \n 
Senate  Interior 

Land  Ose  S.  034   HJR.  4863 

Status:  HouM — clean  bill  B.R  10394  In- 
cluding provlstona  oX  HR.  4863  repwrted  out 
of  Subcommittee,  (ull  Cominlttee  markup  In 
progress  Senate — passed  clean  bUl  S.  368.  8- 
31  with  provisions  of  S.  934  Included:  sent  to 
House  Interior:  being  considered  along  with 
House  bUls. 

Natural  gas  supply.  S  3048.  HJl.  7507. 

Status ;  House — referred  to  Commerce; 
hearings  in  progress.  Senate — referred  to 
Commerce:  hearing*  have  been  held;  prob- 
ably wlU  be  taken  up  second  session 

Electric  PaclUtles  Siting  Act.  8.  935.  HJl. 
4874 

Status:  House — pending  In  Cooimarce:  no 
action.  Senate — pending  in  Interior;  no 
action. 

Santa  Barbara  Energy  Reserve.  S.  1S51. 
HJl.  7500. 

Status:  House — field  hearlnga  held  11-17 
on  HR.  7500  in  Interior  Senate — S  1961  re- 
ferred to  Interior:  hearings  have  begun  on 
clean  bUl  S.  3339;  Administration  bUI  has 
been  withdrawn  (S  1961 1 . 

Surface  Mining.  S  933.  H  R.  4083 

Status:  House — clean  bUl  HJt.  11500  re- 
ported out  of  Subcommittee  to  full  Interior 
Committee,  but  will  not  be  considered  until 
second  aeealon.  Senate — passed  S  43S  In  Lieu 
of  administration  bill  10-9:  referred  to  House 
Interior  10-11. 

Department  of  Energy  and  Natural  Re- 
sources. S  3135.  ns..  9000 

Status:  House — H.&.  9000  referred  to  Oov- 
ernment  Operations.  Subcommittee  on  Legis- 
lation and  Military  Operations;  hearlnga 
have  been  held  but  will  not  be  considered 
further  until  second  session.  Senate — S  3135 
hearings  have  been  held  in  Oovemment  Op- 
erations. 

Tnd  Ian  Boonomlc  Development  Financing. 
&    1S41.   UA.   8371. 

StatxiS  HooM — referred  to  Interior;  ap- 
proved for  full  Committee  action  13-13; 
S.  1341  -'"'TTr-t  -xi  House  Interior,  Senate — 
S.  1341  pad»e<:  Senate.  7-38;  referred  to  Hoose 
Interior 

Additional  Assistant  Secretary  of  the  In- 
terior, H3-  8373,  3    1348. 

Status:  House — referred  to  laterlor.  clean 
bUl  HJL  830.  passed  the  House.  10-1:  sent  to 
Senate  Interior.  10-1  Senate — referred  S 
1345  to  Interior;  pending  before  Subcommit- 
tee. HJl  S30  reported  out  of  Subcommittee 
13-13:  H^.  630  paaaad  Senate.  13-14  House 
disagreed  to  Senate  amendments.  Senata  re- 
quested a  conference.  13-19 

Reduction  of  Petroleum  Consumption,  no 
administration  bill. 

Status:  Hotise — H.R.  11450.  NaUonal  Emer- 
gency Act.  reported  from  House  Interstate. 
pasaed  House  13-14  Senate— 3  3589  reported 
out  of  Interior  ;  a.>«ed  --■  \- e  11-18;  peiis<in 
House  13-15  H.  jte  •*  -'sukI  a  coofareooe 
13-15  (Leg)slatt7e  Day  December  14);  Senate 
agreed  to  a  ooaferenoe  13-17.  Conference  re- 
port filed  in  Bouse  13-U. 

Elznergency  Petroleum  Allocation  Act.  no 
admin istratkm  bUl 

Scacus  House  passed  8.  1670,  10-17. 
amended  Senate — pa  seed  3.  1570.  S-A  Praal- 
dent  signed  the  bill  11-37:  PL  93-159 

R<^  rxanlistWn     'f  it*  FiKlrrai   .\drn:ni«tr« 

tioc    H    rrn    h  .h    ; ;  ~\3 

Status  Houje— H^  11T9»  ready  for  full 
Cofnmi;v«(  ic:ion  In  Oovemment  Opera- 
tions: H.a.  1:T98  irtlere.1  -«^Tted  out  of 
Oooomlttee  to  H<.  .m  :i  .i  5e"»te — reported 
8  3778  out  of  Oovemment  Operac'ona  13-14; 
passed  Senate.  13-19 


ivrmrt 

Capital  Punishment  (death  penalty). 
S    1401.  HJl.  8008. 

Status:      House — referred     to     Judiciary; 

Suboommlttee  on  Courts,  no  action.  Senate 

referred  to  Judiciary:  hearings  completed 
and  now  pending  before  full  Coounittee. 

^sderal  Criminal  Code  Refjrm  8  1400. 
HJl.  8048 

Status:  Hoiiee — referred  to  Suboom^nlttee 
on  Criminal  Justice  of  the  Judiciary  Com- 
mittee; no  action  Senate — referred  to  Sub- 
oommlttee on  Criminal  Laws  of  the  Judiciary 
Oonunlttee;  some  hearings  have  been  held. 

Fsderal  Election  Reform  Commission.  8-J. 
Res   110.  H  J  Res.  556 

Status:  House — 8 J.  Rea.  HO  and  HJ.  Rm. 
559  are  both  In  House  Administration;  they 
are  being  considered  together  with  8.  373  ;n 
general  hearings  Senate — pasaed  8J  Ree. 
110.  7-30;  sent  to  House  Administration,  also 
S.  373.  the  Federal  Election  Campaign  Act 
Amendments,  pasaed  7-30.  sent  to  House 
Administration 

Heroin  Trafficking  Act,  8    1300.  HJl.  5948 

Status:  House — referred  to  Suboommlttee 
on  Public  Health  and  the  Environment  of  the 
House  Commerce  Committee;  no  further  ac- 
uon.  Senate — S  1300  being  held  In  full  Judi- 
ciary Committee 

Busing:  Issue  of  Forced  no  administration 
bill. 

Status:  House — referred  HJ  Res  386  to 
Judiciary:  Subcommittee  on  Bankruptcy  and 
Civil  Rights;  no  action  scheduled:  lUely  that 
administration  position  will  be  included  In 
HJl.  89  Senate — 8  J  Res  181  placed  directly 
on  Senate  Calendar  10-10;  No.  430. 

LABOa 

Job  Security  Assistance  Act.  HJl.  8600 

SUttis:  House — referred  to  Ways  and 
Means;  nothing  scheduled  Senate — no  com- 
parable bill 

Manpower  Training  and  Development  Act 
S     1514,    HR.    7489 

Status:  House — clean  bUl  HJl.  7960.  simi- 
lar to  S  1569,  placed  on  Union  Calendar  8- 
18,  No  136;  two  new  blUs  Introduced  and 
sent  to  BducaUon  Committee  were  HJl.  11011 
and  HJl  IIOIO;  HJl.  11010  pasaed  the  House. 
11-38:  tabled;  S.  1659  passed  In  Ueu.  11-38; 
HJl.  11011  died  In  Committee;  House  re- 
quested a  conference  on  S.  1558,  11-38;  Sen- 
ate agreed  to  House  amendments  with  Sen- 
ate amendments,  13-8  Senate  requested  a 
conference,  13-8:  Hous»«  Ktrrr^^  to  a  confer- 
ence, 13-8.  Senate — passed  S  ;55e.  Job  Train- 
ing and  Community  Services  Act  7-34; 
P4kssed  3  1560.  Emergen'-v  Kmpi^vmer'* 
.^Jnendments  of  1973.  7—31  'v'.h  --fc— -,j  •, 
House  Education  and  Lal>- :  po^t;*  that 
S.  1560  will  go  to  conference  with  8  1589: 
conference   report   filed    In   House.    13-18. 

Pensions.  8    1557.  HJl.  8800 

Status  House — referred  to  House  Educa- 
tion, HJl.  a.  with  similar  content  to  Senate- 
passed  amendment  to  H.R.  4300.  placed  on 
Union  Calendar  10-3,  No  334  HJl  10470. 
Identical  to  Senate -passed  amendmenta  to 
HJl.  4300.  Is  In  markup  In  Ways  and  Me«.n'< 
Senate— referred  to  Labor  and  Public  Wel- 
fare: 8  4  reported  In  lieu  thereof  by  Labor 
and  Public  Welfare:  8  1179  also  reported  by 
Finance:  eomblned  <  i.  s^-  »*/»  "  .  r  and 
added  as  amendmenta  -..  H  r  4Ji^  %  Mouse- 
passed  bUl,  9-10  tee  "Retirement  Bene- 
fits Tax  Act) 

orrrc*  or  UAmaxMnrt  mro  vcrxnr: 

Bicentennial  Reorganlzattoo.  HJl.  3896 

Status  Hoxise — passed  H.B.  7448.  8-7  In 
lieu  of  administration  bill.  Senate — passed 
HJl  7448,  lO-lO  Prealdenl  signed  ttM  blU 
13-11;  PL  93-179 

Council  on  Ini^-"  a*.;  :■*;  Economic  Policy 
Authority.  8   1836.  H.a.  8S48 

Status      House — passed    HJl     aM8     ^  m 
tabled:  pasaed  S    1836  In  lieu  Senate — pasaed 
3    1838    8-33    President  signed  the  bill  10-4; 
Public  Law  93-121. 


Extension  of  Authority  to  Submit  Reor- 
ganisation Plans.  8    3003,  HJl   7883 

Status:  House — referred  to  Oovemment 
Operations;  no  acUon.  Senate — referred  to 
Oovemment  Operations;  no  action. 

Legal  Services  Corporation.  8  1816.  HJl. 
7834. 

Status  House — passed  H  R  7834.  8-31;  be- 
ing held  at  Desk  m  Senate  Senate— referred 
to  Labor  and  Public  Welfare:  ordered  re- 
ported out  of  Committee.  10-10;  clean  bill 
8.  3086  reported  out  of  Committee,  11-9;  floor 
oonslderatlon  scheduled  for  second  session. 

BT4TI 

Asian  Development  Bank.  8  3668  H.R 
11666,8  3193 

Status:  House — combined  provisions  simi- 
lar to  S  3193  (July  request)  with  provisions 
similar  to  8  3666  (November  request)  into 
HR  11866:  HJl  U666  ortlered  reported  out 
of  House  Banking  13-14  Senate-  s  afl/w  re- 
ferred to  Foreign  Relations;  hi'Hs-i.jr'  wt' 
begun    ::    \?   a.-^-l    -.>r-e«»rd   sihic.-*    •.       ^.i. 

Interna*:  r.%.  :>«■■.■»:.  .^.ni^r, '  A.-vi.  <':Htlon 
Bank.  8  i'W   H  R   ! :  .■i,S4 

Status  Hi. ':•»«-  HR  ]\i^^  ordered  re- 
ported to  House  13-14  Senate— hearings  be- 
gun m  Foreign  Relations  on  8  3665:  ad- 
journed subject  to  call 

U8IA  Authorisations,  no  administration 
bill. 

Status  House— pa.'fSi'd  HR  11434.  11-14; 
t4kbled;  S  3681  as  amended  passed  In  lieu. 
11-14  Senate — passed  8  3681,  11-13  Presi- 
dent signed  the  bill,  11-30  Publir  Iaw  93- 
188. 

Foreign   Aid.  S    1711    HR    7^SA 

Status:  H  '■'.■<ir-  r^fer-ed  '.^  Fr>re:,-T.  .^.Talrs: 
clean  bill,  H  R  -ir^r'  tv.th  murary  aj;d  eco- 
nomic) pasMKl  -.'if  House  7-3fl.  tabled: 
pasaed  8  :443  n;.;;tam  with  fun  text  of 
HJl  aiWT  :..-:.id»«d  -  3fl  s  x<;l.l  «Kx,r...m!ei 
al*i  pa«ae<l  tne  Ha'::'*^  with  f>;.;  teit  of  HR 
9380  Included.  10-3;  sent  U^  ronrpr^nre  '.a  lO 
Senate — S  1711  referred  tn  p.Teltfr.  R«;a- 
tlODs:  8.  1443  (mUltarvi  pa^ard  Senate  <>  3« 
sent  to  House  Foreiim  A.Tair^  S  23.3."i  eco- 
nomic) pasaed  the  Senate  IfV  a  \na  ^ent  t.^ 
House  ^arelgn  Affairs  oimrerenre  r^p<  rt.  filed 
as  8.  1443  (both  mll^tarv  and  iv-nnomlc); 
report  agreed  to  in  Houne  13  4  reprrrt  a«reed 
to  In  Senate.  13  ,5  Prwudci-,?  nir.  r^.  the  bill. 
13-17;  Public  Law  ^:i    ;8S 

T,*  VSP- UTATION 

Northea*:  fia:;r  «id  A:t.  S  1893,  HJl.  8538 
and  Railroad  Reorganieatlon  Act  no  admin- 
istration bin 

status  H  •;«*  H  p.  8536  and  HR.  9143 
<Rallr->ad  Hxor^a.-Uzjiti.in)  were  referred  to 
H'-)USe  C  •:•..::. err-  «.;  -.g  with  ,9  3n«0;  HJl. 
914J  p«u»e<i  ::  f  H  ..v  ;:  fl  '»'»Tred  to 
Senate  Commerce.  11-13  HR  fiS2f  ha-s  '>een 
dropped  by  the  Subcommif/^  -.  ■  'f^nc* 
report  filed  In  House  13  19  '-^r.a'«-  [i*.'«ed 
S.  3060  7-37  and  referred  to  H  .v  :r.-*Ts'af.e 
Senate  Commerce  received  H.K.  9:42  pussed 
Senate.  13-11,  amended  with  lar:ir;:a*{e  r,f 
S    3767.   HJl    9143  now  In  conference. 

Urban  Mass  Transportation  Act,  8.  1139, 
HR   5819 

Status  Ho>use — House  Banking  reported 
HR.  8463  in  lieu  of  administration  bill; 
passed  the  House.  10-3;  Ubled:  8.  386  pasaed 
In  lieu  Senate — 8.  1139  referred  to  Senate 
Banking;  S  386  pasaed  In  lieu  9-10;  Senate 
requested  a  conference.  10-16:  House  agreed 
to  a  conference.  10-35;  still  In  conference. 

TasasraT 

Par  Value  Modification  Act.  3.  939  HR 
8913 

Status:  House — Paaard  H  H  6613  5-38; 
passed  the  Senate.  5-30  Se:-a*-e -Pawed  S. 
929.  4-6,  passed  HJl.  8912  S-30  President 
signed  the  bUl,  9-31     Public  Law  93-110. 

POW  Tai  Relief    H  R    8214 

Status:  U'-.M-  I'ajuKvi  MR  8314.  8-3.  re- 
ferred to  SeiiAif  r  a:  e  Senate— HR,  8314, 
reported  out  rf   ^'    »  a   p    ,»nce   11-37. 

Tax   Reform.   u,j  a.i.';.::..»tration  bill. 


December  20,  1973 


CONGRESSIONAL  RECORD  — SENATE 


42819 


RstlTKnent  Benefits  Tax  Act,  HJl.  7157, 
8.  1881. 

Status-  House  -Provisions  of  H-R.  7157  are 
being  d.-^ried  mio  a  clean  pension  bill  Mx 
Ways  and  Uea:is  nc.  date  of  completion 
known.  Senate  -aiier  hearings  Ln  Finance, 
no  further  acUoi,  ^n  S  1631  However,  S. 
1179  refxrted.  conib.iied  with  b4  ai.d  added 
as  an  amendmenl  Uj  Uou&e-passed  H-R  4300, 
9-19:  HR  4300  now  In  conference  (see  •'Pen- 
sions  )  . 

M  IS<,'E1.1^  .N  EOUS 

Action,  S     1338.   HR    7636. 

Status  House  EducjitKin  and  Labor  re- 
ported HJt  7366  7  'it.  passed  8  1  14fl  In  lieu 
Of  HR  7365  M  17  SeiiSte  passed  .s  ;  148  In 
lieu  of  adinlniatratlou  bi;i  7-18  President 
Signed   the   bill     lO  I:    Public  Law   93    113 

DLstrlct  of  Columbia  H^me  Rule,  S.  1435. 
H  R    &682 

Stalii!!  House — passed  HJl  9683,  10-10; 
tabled,  passed  S  1435  amended  10-10.  Sen- 
ate^paased  8  14.^5  7  la.  Senate  requested 
a  conference,  lO  Ifi  H.-use  aKxeed  to  a  con- 
ference 10  17.  conference  report  filed  in 
House  13  6:  House  a^rrred  to  conference  re- 
port. 13  17:  Senate  agreed  to  coiiference  re- 
port, 12   19 

Truth  In  Lending,  8  2101. 

Status  Hous<-  -referred  t<^  Banking  6  24: 
oversight  heaj-lnK*  aj«  In  progress  on  Con- 
sumer I*ratectlon  Agei.cy  b.it  iii.>ihlng  sj>e- 
Clflc  on  S    2101    Senate      p(i.s.sed  ."    2101,  6  2J 

Consumer  {Protection  Agency,  no  admlnis- 
traUon  bill 

Status  House — hearing  In  progress  on 
H  R    14   HR   21  and  H  R   564 

VeteraiiR  Med:r-ai  Beneflt-s  n  adnilnlstra- 
Uon  bu: 

Status:  House — pajvsed  S  59  7-17.  Sen- 
ate— passed  8.  593  «  {Resid